Document:

Exhibit 4.1

 

EXECUTION VERSION

 

 

 

_____________________________________________________

 

ENERGY XXI GULF COAST, INC.

 

and
each of the Guarantors PARTY HERETO

 

11.000% SENIOR SECURED SECOND LIEN NOTES
DUE 2020

 

 

 

INDENTURE

 

Dated as of March 12, 2015

 

 

 

U.S. Bank National Association,

 

as Trustee

 

 

 

 

 

    	 

    	 

    

  

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	 	ARTICLE 1	 
	 	DEFINITIONS AND INCORPORATION	 
	 	BY REFERENCE	 
	 	 	 
	Section 1.01	Definitions.	1
	Section 1.02	Other Definitions.	34
	Section 1.03	[Reserved].	35
	Section 1.04	Rules of Construction.	35
	 	 	 
	 	ARTICLE 2	 
	 	THE NOTES	 
	 	 	 
	Section 2.01	Form and Dating.	35
	Section 2.02	Execution and Authentication.	36
	Section 2.03	Registrar and Paying Agent.	37
	Section 2.04	Paying Agent to Hold Money in Trust.	37
	Section 2.05	Holder Lists.	37
	Section 2.06	Transfer and Exchange.	37
	Section 2.07	Replacement Notes.	44
	Section 2.08	Outstanding Notes.	44
	Section 2.09	Treasury Notes.	44
	Section 2.10	Temporary Notes.	45
	Section 2.11	Cancellation.	45
	Section 2.12	Defaulted Interest.	45
	 	 	 
	 	ARTICLE 3	 
	 	REDEMPTION AND PREPAYMENT	 
	 	 	 
	Section 3.01	Notices to Trustee.	45
	Section 3.02	Selection of Notes to Be Redeemed or Purchased.	46
	Section 3.03	Notice of Redemption.	46
	Section 3.04	Effect of Notice of Redemption.	47
	Section 3.05	Deposit of Redemption Price.	47
	Section 3.06	Notes Redeemed in Part.	48
	Section 3.07	Optional Redemption.	48
	Section 3.08	Mandatory Redemption.	48
	Section 3.09	Offer to Purchase by Application of Excess Proceeds.	49
	 	 	 
	 	ARTICLE 4	 
	 	COVENANTS	 
	 	 	 
	Section 4.01	Payment of Notes.	51
	Section 4.02	Maintenance of Office or Agency.	51
	Section 4.03	Reports.	51
	Section 4.04	Compliance Certificate.	52
	Section 4.05	Taxes.	52
	Section 4.06	Stay, Extension and Usury Laws.	53
	Section 4.07	Restricted Payments.	53
	Section 4.08	Dividend and Other Payment Restrictions Affecting Subsidiaries.	56
	Section 4.09	Incurrence of Indebtedness and Issuance of Preferred Stock.	57
	Section 4.10	Asset Sales.	60

 

    	i

    	 

    

 

	 	 	Page
	 	 	 
	Section 4.11	Transactions with Affiliates.	62
	Section 4.12	Liens.	63
	Section 4.13	Business Activities.	64
	Section 4.14	Corporate Existence.	64
	Section 4.15	Offer to Repurchase Upon Change of Control.	64
	Section 4.16	Payments for Consent.	66
	Section 4.17	Additional Guarantees.	66
	Section 4.18	Designation of Restricted and Unrestricted Subsidiaries.	67
	Section 4.19	Sale and Leaseback Transactions	67
	Section 4.20	Offer to Repurchase Upon Triggering Event.	68
	Section 4.21	Suspended Covenants.	69
	 	 	 
	 	ARTICLE 5	 
	 	SUCCESSORS	 
	 	 	 
	Section 5.01	Merger, Consolidation, or Sale of Assets.	70
	Section 5.02	Successor Corporation Substituted.	71
	 	 	 
	 	ARTICLE 6	 
	 	DEFAULTS AND REMEDIES	 
	 	 	 
	Section 6.01	Events of Default.	71
	Section 6.02	Acceleration.	73
	Section 6.03	Other Remedies.	74
	Section 6.04	Waiver of Past Defaults.	74
	Section 6.05	Control by Majority.	74
	Section 6.06	Limitation on Suits.	74
	Section 6.07	Rights of Holders of Notes to Receive Payment.	75
	Section 6.08	Collection Suit by Trustee.	75
	Section 6.09	Trustee May File Proofs of Claim.	75
	Section 6.10	Priorities.	76
	Section 6.11	Undertaking for Costs.	76
	 	 	 
	 	ARTICLE 7	 
	 	TRUSTEE	 
	 	 	 
	Section 7.01	Duties of Trustee.	76
	Section 7.02	Rights of Trustee.	77
	Section 7.03	Individual Rights of Trustee.	78
	Section 7.04	Trustee’s Disclaimer.	78
	Section 7.05	Notice of Defaults.	79
	Section 7.06	[Reserved].	79
	Section 7.07	Compensation and Indemnity.	79
	Section 7.08	Replacement of Trustee.	80
	Section 7.09	Successor Trustee by Merger, etc.	80
	Section 7.10	Eligibility; Disqualification.	81
	 	 	 
	 	ARTICLE 8	 
	 	LEGAL DEFEASANCE AND COVENANT DEFEASANCE	 
	 	 	 
	Section 8.01	Option to Effect Legal Defeasance or Covenant Defeasance.	81
	Section 8.02	Legal Defeasance and Discharge.	81
	Section 8.03	Covenant Defeasance.	82
	Section 8.04	Conditions to Legal or Covenant Defeasance.	82

 

    	ii

    	 

    

 

	 	 	Page
	 	 	 
	Section 8.05	Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions.	83
	Section 8.06	Repayment to Company.	84
	Section 8.07	Reinstatement.	84
	 	 	 
	 	ARTICLE 9	 
	 	AMENDMENT, SUPPLEMENT AND WAIVER	 
	 	 	 
	Section 9.01	Without Consent of Holders of Notes.	84
	Section 9.02	With Consent of Holders of Notes.	85
	Section 9.03	[Reserved].	86
	Section 9.04	Revocation and Effect of Consents.	86
	Section 9.05	Notation on or Exchange of Notes.	87
	Section 9.06	Trustee to Sign Amendments, etc.	87
	 	 	 
	 	ARTICLE 10	 
	 	satisfaction and discharge	 
	 	 	 
	Section 10.01	Satisfaction and Discharge.	87
	Section 10.02	Application of Trust Money.	88
	 	 	 
	 	ARTICLE 11	 
	 	MISCELLANEOUS	 
	 	 	 
	Section 11.01	[Reserved].	88
	Section 11.02	Notices.	88
	Section 11.03	Communication by Holders of Notes with Other Holders of Notes.	89
	Section 11.04	Certificate and Opinion as to Conditions Precedent.	90
	Section 11.05	Statements Required in Certificate or Opinion.	90
	Section 11.06	Rules by Trustee and Agents.	90
	Section 11.07	No Personal Liability of Directors, Officers, Employees and Stockholders.	90
	Section 11.08	Governing Law.	90
	Section 11.09	No Adverse Interpretation of Other Agreements.	91
	Section 11.10	Successors.	91
	Section 11.11	Severability.	91
	Section 11.12	Counterpart Originals.	91
	Section 11.13	Table of Contents, Headings, etc.	91
	Section 11.14	Patriot Act.	91
	 	 	 
	 	ARTICLE 12	 
	 	GUARANTEES	 
	 	 	 
	Section 12.01	Guarantee.	91
	Section 12.02	Limitation on Guarantor Liability.	93
	Section 12.03	Execution and Delivery of Guarantee.	94
	Section 12.04	Guarantors May Consolidate, etc., on Certain Terms.	94
	Section 12.05	Releases.	95
	 	 	 
	 	ARTICLE 13	 
	 	COLLATERAL AND SECURITY	 
	 	 	 
	Section 13.01	Security Interest.	96
	Section 13.02	Post-Issue Date Collateral Requirements.	97
	Section 13.03	Further Assurances; Liens on Additional Property.	97
	Section 13.04	Intercreditor Agreement.	99
	Section 13.05	Collateral Trust Agreement.	99
	Section 13.06	Release of Liens in Respect of Notes.	100
	Section 13.07	Collateral Trustee.	100
	Section 13.08	Insurance.	101

 

    	iii

    	 

    

  

EXHIBITS

 

	Exhibit A	FORM OF NOTE
	Exhibit B	FORM OF CERTIFICATE OF TRANSFER
	Exhibit C	FORM OF CERTIFICATE OF EXCHANGE
	Exhibit D	FORM OF NOTATION OF GUARANTEE
	Exhibit E	FORM OF SUPPLEMENTAL INDENTURE

 

    	iv

    	 

    

  

INDENTURE dated as
of March 12, 2015 among Energy XXI Gulf Coast, Inc., a Delaware corporation, the Guarantors (as defined herein) and U.S. Bank National
Association and any and all successors thereto, as trustee (the “Trustee”).

 

The Company, the Guarantors
and the Trustee agree as follows for the benefit of each other and for the equal and ratable benefit of the Holders (as defined)
of the 11.000% Senior Secured Second Lien Notes due 2020 (the “Notes”):

 

ARTICLE
1

DEFINITIONS AND INCORPORATION

BY REFERENCE

 

Section
1.01         Definitions.

 

“ACNTA”
(Adjusted Consolidated Net Tangible Assets) means (without duplication), as of the date of determination:

 

(1)           the
sum of:

 

(a)          discounted
future net revenue from proved crude oil and natural gas reserves of the Company and its Restricted Subsidiaries calculated in
accordance with SEC guidelines before any state or federal income taxes, as estimated in a reserve report prepared as of the end
of the Company’s most recently completed fiscal year, which reserve report is prepared or reviewed or audited by an independent
petroleum engineer as to reserves accounting for at least 80% of all such discounted future net revenue and by the Company’s
petroleum engineers with respect to any other such reserves covered by such report, as increased by, as of the date of determination,
the discounted future net revenue from:

 

(1)         estimated
proved crude oil and natural gas reserves of the Company and its Restricted Subsidiaries attributable to acquisitions consummated
since the date of such year-end reserve report, and

 

(2)         estimated
crude oil and natural gas reserves of the Company and its Restricted Subsidiaries attributable to extensions, discoveries and other
additions and upward determinations of estimates of proved crude oil and natural gas reserves (including previously estimated development
costs incurred during the period and the accretion of discount since the prior year end) due to exploration, development or exploitation,
production or other activities which reserves were not reflected in such year-end reserve report,

 

in each case calculated in accordance
with SEC guidelines (utilizing the prices utilized in such year-end reserve report), and decreased by, as of the date of determination,
the discounted future net revenue attributable to

 

(3)         estimated
proved crude oil and natural gas reserves of the Company and its Restricted Subsidiaries reflected in such year-end reserve report
produced or disposed of since the date of such year-end reserve report and

 

    	1

    	 

    

 

(4)         reductions
in the estimated proved crude oil and natural gas reserves of the Company and its Restricted Subsidiaries reflected in such year-end
reserve report since the date of such year-end reserve report attributable to downward determinations of estimates of proved crude
oil and natural gas reserves due to exploration, development or exploitation, production or other activities conducted or otherwise
occurring since the date of such year-end reserve report,

 

in each case calculated in accordance
with SEC guidelines (utilizing the prices utilized in such year-end reserve report); provided, however, that, in
the case of each of the determinations made pursuant to clauses (1) through (4), such increases and decreases shall be as estimated
by the Company’s petroleum engineers, except that if as a result of such acquisitions, dispositions, discoveries, extensions
or revisions, there is a Material Change, then such increases and decreases in the discounted future net revenue shall be confirmed
in writing by an independent petroleum engineer;

 

(b)    the
capitalized costs that are attributable to crude oil and natural gas properties of the Company and its Restricted Subsidiaries
to which no proved crude oil and natural gas reserves are attributed, based on the Company’s books and records as of a date
no earlier than the date of the Company’s latest annual or quarterly financial statements;

 

(c)    the
Net Working Capital on a date no earlier than the date of the Company’s latest annual or quarterly financial statements;
and

 

(d)    the
greater of (I) the net book value on a date no earlier than the date of the Company’s latest annual or quarterly financial
statements and (II) the appraised value, as estimated by independent appraisers, of other tangible assets of the Company and its
Restricted Subsidiaries as of a date no earlier than the date of the Company’s latest audited financial statements;

 

(2)           minus,
to the extent not otherwise taken into account in the immediately preceding clause (1), the sum of:

 

(a)    minority
interests;

 

(b)    any
net gas balancing liabilities of the Company and its Restricted Subsidiaries reflected in the Company’s latest audited financial
statements;

 

(c)    the
discounted future net revenue, calculated in accordance with SEC guidelines (utilizing the same prices utilized in the Company’s
year-end reserve report), attributable to reserves subject to participation interests, overriding royalty interests or other interests
of third parties, pursuant to participation, partnership, vendor financing or other agreements then in effect, or which otherwise
are required to be delivered to third parties;

 

(d)    the
discounted future net revenue, calculated in accordance with SEC guidelines (utilizing the same prices utilized in the Company’s
year-end reserve report), attributable to reserves that are required to be delivered to third parties to fully satisfy the obligations
of the Company and its Restricted Subsidiaries with respect to Volumetric Production Payments on the schedules specified with respect
thereto; and

 

(e)    the
discounted future net revenue, calculated in accordance with SEC guidelines, attributable to reserves subject to Dollar-Denominated
Production Payments that, based on the estimates of production included in determining the discounted future net revenue specified
in the immediately preceding clause (1)(a) (utilizing the same prices utilized in the Company’s year-end reserve report),
would be necessary to satisfy fully the obligations of the Company and its Restricted Subsidiaries with respect to Dollar-Denominated
Production Payments on the schedules specified with respect thereto.

    	2

    	 

    

  

If the Company changes
its method of accounting for its Oil and Gas Properties from the full cost method to the successful efforts method or a similar
method of accounting, ACNTA will continue to be calculated as if the Company were still using the full cost method of accounting.

 

For the avoidance
of doubt, for purposes of this definition, “the Company’s year-end reserve report” shall mean the Company’s
most recent reserve report or reports prepared by one or more of the Company’s independent petroleum engineers as of the
last date of the Company’s most recent fiscal year. 

 

“Acquired
Debt” means, with respect to any specified Person:

 

(1)         Indebtedness
of any other Person existing at the time such other Person is merged with or into or became a Subsidiary of such specified Person,
whether or not such Indebtedness is incurred in connection with, or in contemplation of, such other Person merging with or into,
or becoming a Subsidiary of, such specified Person; and

 

(2)         Indebtedness
secured by a Lien encumbering any asset acquired by such specified Person.

 

“Act of Parity
Lien Debtholders” means, as to any matter at any time, a direction in writing delivered to the Collateral Trustee by
or with the written consent of the holders of Parity Lien Debt representing the Required Parity Lien Debtholders.

 

“Additional
Assets” means:

 

(1)         any
assets used or useful in the Oil and Gas Business;

 

(2)         the
Capital Stock of a Person that becomes a Restricted Subsidiary as a result of the acquisition of such Capital Stock by the Company
or another Restricted Subsidiary; or

 

(3)         Capital
Stock constituting a minority in any Person that at such time is a Restricted Subsidiary;

 

provided,
however, that any such Restricted Subsidiary described in clause (2) or (3) is primarily engaged in the Oil and Gas
Business.

 

“Additional
Notes” means Notes (other than the Initial Notes and Notes issued pursuant to Sections 2.06, 2.07, 2.10, 3.06 or 9.05)
issued after the Issue Date under this Indenture in accordance with Sections 2.02, 4.09 and 4.12 hereof, as part of the same class
as the Initial Notes.

 

“Additional
Secured Debt Designation” means the written agreement of the holders of any Series of Parity Lien Debt or their Parity
Lien Representative, as set forth in the indenture, credit agreement or other agreement governing such Series of Parity Lien Debt,
for the benefit of all holders of each existing and future Series of Priority Lien Debt, the Priority Lien Collateral Agent and
each existing and future holder of Priority Liens:

 

    	3

    	 

    

 

(1)         that
all Parity Lien Obligations will be and are secured equally and ratably by all Parity Liens at any time granted by the Company
or any Guarantor to secure any Obligations in respect of such Series of Parity Lien Debt, whether or not upon property otherwise
constituting collateral for such Series of Parity Lien Debt, and that all such Parity Liens will be enforceable by the Collateral
Trustee for the benefit of all holders of Parity Lien Obligations equally and ratably;

 

(2)         that
the holders of Obligations in respect of such Series of Parity Lien Debt are bound by the provisions of the Collateral Trust Agreement,
including the provisions relating to the ranking of Parity Liens and the order of application of proceeds from the enforcement
of Parity Liens; and

 

(3)         consenting
to and directing the Collateral Trustee to perform its obligations under the Collateral Trust Agreement and the other Security
Documents establishing Parity Liens.

 

“Affiliate”
of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For purposes of this definition, “control,” as used with respect to any
Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies
of such Person, whether through the ownership of voting securities, by agreement or otherwise; provided that beneficial
ownership of 10% or more of the Voting Stock of a Person will be deemed to be control. For purposes of this definition, the terms
“controlling,” “controlled by” and “under common control with” have correlative meanings. For
the avoidance of doubt, the Parent and any of its existing or future Subsidiaries in addition to the Company and its Restricted
Subsidiaries will be considered Affiliates of the Company.

 

“Agent”
means any Registrar, co-registrar, Paying Agent or additional paying agent.

 

“Applicable
Premium” means, with respect to a Note at any redemption date, the greater of (x) 1.0% of the principal amount of such
Note and (y) the excess of (A) the present value at such time of (1) the redemption price of such Note set forth in Section 3.07(a)
as of September 15, 2017 (without regard to accrued and unpaid interest) plus (2) all required interest payments due on such Note
through September 15, 2017 (excluding accrued and unpaid interest), computed using a discount rate equal to the Treasury Rate plus
50 basis points, over (B) the principal amount of such Note.

 

“Applicable
Procedures” means, with respect to any transfer or exchange of or for beneficial interests in any Global Note, the rules
and procedures of the Depositary, Euroclear and Clearstream that apply to such transfer or exchange.

 

“Asset Sale”
means:

 

(1)         the
sale, lease, conveyance or other disposition of any properties or assets (including by way of a Production Payment, sale and leaseback
transaction, merger, consolidation or otherwise); provided that the disposition of all or substantially all of the properties
or assets of the Company and its Restricted Subsidiaries taken as a whole will be governed by Section
4.15 hereof, and/or Section 5.01 hereof, and not by Section 4.10 hereof; and

 

(2)         the
issuance of Equity Interests in any of the Company’s Restricted Subsidiaries or the sale of Equity Interests in any of its
Restricted Subsidiaries.

 

Notwithstanding the
preceding, the following items will not be deemed to be Asset Sales:

 

(1)         any
single transaction or series of related transactions that involves properties or assets having a Fair Market Value of less than
$25.0 million;

 

(2)         a
transfer of assets between or among any of the Company and its Restricted Subsidiaries,

 

    	4

    	 

    

  

(3)         an
issuance or sale of Equity Interests by a Restricted Subsidiary to the Company or to another Restricted Subsidiary;

 

(4)         the
sale, lease or other disposition of Hydrocarbons, equipment, inventory, accounts receivable or other properties or assets in the
ordinary course of business, including, without limitation, any abandonment, farm-in, farm-out, lease or sublease of any Oil and
Gas Properties or the forfeiture or other disposition of such properties pursuant to standard form operating agreements, in each
case in the ordinary course of business in a manner customary in the Oil and Gas Business;

 

(5)         the
sale or other disposition of cash or Cash Equivalents;

 

(6)         a
Restricted Payment that is permitted in accordance with Section 4.07 or a Permitted Investment;

 

(7)         any
trade or exchange by the Company or any Restricted Subsidiary of Oil and Gas Properties or other properties or assets for Oil and
Gas Properties or other properties or assets owned or held by another Person, provided that the Fair Market Value of the properties
or assets traded or exchanged by the Company or such Restricted Subsidiary (together with any cash) is reasonably equivalent to
the Fair Market Value of the properties or assets (together with any cash) to be received by the Company or such Restricted Subsidiary,
provided further that any net cash received must be applied in accordance with Section 4.10.

 

(8)         the
creation or perfection of a Lien and the exercise by any Person in whose favor a Permitted Lien is granted of any rights in respect
of that Permitted Lien (including the sale or other disposition of the properties or assets subject to such Permitted Lien) in
each case provided that such Lien is permitted by this Indenture; and

 

(9)         surrender
or waiver of contract rights or the settlement, release or surrender of contract, tort or other claims of any kind.

 

“Attributable
Debt” means, in respect of a sale and leaseback transaction, at the time of determination, the present value of
the obligation of the lessee for net rental payments during the remaining term of the lease included in such sale and leaseback
transaction including any period for which such lease has been extended or may, at the option of the lessor, be extended. Such
present value shall be calculated using a discount rate equal to the rate of interest implicit in such transaction, determined
in accordance with GAAP.

 

“Availability”
means with respect to the Credit Agreement or any other Credit Facility in each case that provides for revolving borrowings as
in effect from time to time (a “Revolving Credit Facility”), the lesser of (A) (i) with respect to the Credit
Agreement as in effect from time to time to the extent it determines a borrowing base, the Borrowing Base, and (ii) with respect
to any other Revolving Credit Facility to the extent such Revolving Credit Facility determines a borrowing base, the maximum amount
in United States dollars determined or redetermined by the lenders under such Revolving Credit Facility as the aggregate lending
value to be ascribed to the Oil and Gas Properties of the Company and the Restricted Subsidiaries against which such lenders are
prepared to provide loans or other Indebtedness to the Company under such Revolving Credit Facility, as determined on such occasions
as may be required by the Credit Agreement, and which is based upon, inter alia, the review by such lenders of the Hydrocarbon
reserves, royalty interests and other assets and liabilities of the Company and the Restricted Subsidiaries, provided that such
amount shall not exceed (x) prior to the date that the requisite EPL Entities become Subsidiary Guarantors in accordance with Section
4.17, 12.5% of Modified ACNTA as of the date of determination of such borrowing base, or (y) thereafter, 15.0% of Modified ACNTA
as of the date of determination of such borrowing base, and (B) the aggregate commitments of the lenders thereunder. 

    	5

    	 

    

 

“Banking Services”
means each and any of the following bank services provided to the Company, Intermediate Holdco or any Subsidiary Guarantor by any
holder of Priority Lien Debt or any Affiliate thereof: (a) credit cards, (b) credit card processing services, (c) debit cards,
(d) stored value cards, (e) purchase cards (including so-called “procurement cards” or “P-cards”) or (f)
cash management and treasury management services (including controlled disbursement, automated clearinghouse transactions, return
items, overdrafts and interstate depository network services).

 

“Banking Services
Obligations” means any and all obligations of the Company, Intermediate Holdco or any Subsidiary Guarantor, whether absolute
or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications
thereof and substitutions therefor) in connection with Banking Services.

 

“Bankruptcy
Law” means Title 11, U.S. Code or any similar federal or state law for the relief of debtors.

 

“Beneficial
Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating
the beneficial ownership of any particular “person” (as that term is used in Section 13(d)(3) of the Exchange Act),
such “person” will be deemed to have beneficial ownership of all securities that such “person” has the
right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only
upon the occurrence of a subsequent condition. The terms “Beneficially Owns” and “Beneficially Owned” have
correlative meanings.

 

“Board of
Directors” means:

 

(1)         with
respect to a corporation, the board of directors of the corporation;

 

(2)         with
respect to a partnership, the Board of Directors of the general partner of the partnership; and

 

(3)         with
respect to any other Person, the board or committee of such Person serving a similar function.

 

“Borrowing
Base” means, with respect to borrowings under the Credit Agreement, the maximum amount in United States dollars determined
or redetermined by the lenders under the Credit Agreement as the aggregate lending value to be ascribed to the Oil and Gas Properties
of the Company and the Restricted Subsidiaries against which such lenders are prepared to provide loans or other Indebtedness to
the Company and the Restricted Subsidiaries under the Credit Agreement, using their customary practices and standards for determining
borrowing base loans and which are generally applied to borrowers in the Oil and Gas Business, as determined semi-annually during
each year and/or on such other occasions as may be required by the Credit Agreement, and which is based upon, inter alia, the review
by such lenders of the Hydrocarbon reserves, royalty interests and assets and liabilities of the Company and the Restricted Subsidiaries
(which on the Issue Date is $500.0 million), provided that such amount shall not exceed (i) prior to the date that the requisite
EPL Entities become Subsidiary Guarantors in accordance with Section 4.17 12.5% of Modified ACNTA as of the date of its semi-annual
or other determination, or (ii) thereafter, 15.0% of Modified ACNTA as of the date of its semi-annual or other determination.

    	6

    	 

    

  

“Business
Day” means each day that is not a Saturday, Sunday or other day on which banking institutions in Houston, Texas or in
New York, New York are authorized or required by law to close.

 

“Capital Lease
Obligation” means, at the time any determination is to be made, the amount of the liability in respect of a capital lease
that would at that time be required to be capitalized on a balance sheet prepared in accordance with GAAP.

 

“Capital Stock”
means:

 

(1)         in
the case of a corporation, corporate stock;

 

(2)         in
the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however
designated) of corporate stock;

 

(3)         in
the case of a partnership or limited liability company, partnership interests (whether general or limited) or membership interests;
and

 

(4)         any
other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions
of assets of, the issuing Person.

 

“Cash Equivalents”
means:

 

(1)         United
States dollars;

 

(2)         securities
issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality of the United
States government (provided that the full faith and credit of the United States is pledged in support of those securities)
having maturities of not more than six months from the date of acquisition;

 

(3)         certificates
of deposit and eurodollar time deposits with maturities of six months or less from the date of acquisition, bankers’ acceptances
with maturities not exceeding six months and overnight bank deposits, in each case, with any lender party to the Credit Agreement
or with any domestic commercial bank having capital and surplus in excess of $250.0 million and a Thomson Bank Watch Rating of
“B” or better;

 

(4)         repurchase
obligations with a term of not more than seven days for underlying securities of the types described in clauses (2) and (3) above
entered into with any financial institution meeting the qualifications specified in clause (3) above;

 

(5)         commercial
paper having the highest rating obtainable from Moody’s Investors Service, Inc. or Standard & Poor’s Ratings Services
and, in each case, maturing within six months after the date of acquisition; and

 

(6)         money
market funds at least 95% of the assets of which constitute Cash Equivalents of the kinds described in clauses (1) through (5)
of this definition.

 

“Change of
Control” means the occurrence of any of the following:

 

(1)         the
direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one
or a series of related transactions, of all or substantially all of the properties or assets (including Capital Stock) of (a) the
Parent and its Subsidiaries taken as a whole, (b) the Company or (c) the Company’s Restricted Subsidiaries taken as a whole,
to any “person” (as that term is used in Section 13(d)(3) of the Exchange Act);

    	7

    	 

    

  

(2)         the
adoption of a plan relating to the liquidation or dissolution of the Parent or the Company;

 

(3)         the
consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person”
or “group” (as that term is used in Section 13(d)(3) of the Exchange Act) becomes the Beneficial Owner, directly or
indirectly, of more than 50% of the Voting Stock of the Parent or the Company, measured by voting power rather than number of shares,
other than beneficial ownership by the Parent or any Subsidiary thereof, directly or indirectly, of Voting Stock of the Company;
or

 

(4)         the
Parent or the Company (or any parent thereof) consolidates with, or merges with or into, any Person, or any Person consolidates
with, or merges with or into the Parent or the Company (or any parent thereof) in any such event pursuant to a transaction in which
any of the outstanding Voting Stock of the Parent or the Company (or any parent thereof), as the case may be, is converted into
or exchanged for cash, securities or other property, other than any such transaction where the Voting Stock of the Company (or
any parent thereof) outstanding immediately prior to such transaction is converted into or exchanged for Voting Stock (other than
Disqualified Stock) of the surviving or transferee Person (or any parent thereof) constituting a majority of the outstanding shares
of such Voting Stock of such surviving or transferee Person (or any parent thereof) immediately after giving effect to such issuance;
provided, however, that the consolidation or merger of any Subsidiary of the Parent (other than the Company and its Subsidiaries)
shall not constitute a Change of Control if the Voting Stock of the Company continues to be owned directly or indirectly (through
one or more Subsidiaries) by the Parent.

 

“Clearstream”
means Clearstream Banking, S.A. or any successor securities clearing agency.

 

“Collateral”
means all property wherever located and whether now owned or at any time acquired after the date of this Indenture by the Parent,
the Company, Intermediate Holdco or any Subsidiary Guarantor as to which a Lien is granted under the Security Documents to secure
the Notes or any Guarantee. 

 

“Collateral
Disposition” means any sale, transfer or other disposition (whether voluntary or involuntary) to the extent involving
assets or other rights or property that constitute Collateral. The sale or issuance of Equity Interests in a Subsidiary Guarantor
such that it thereafter is no longer a Subsidiary Guarantor shall be deemed to be a Collateral Disposition of the Collateral owned
by such Subsidiary Guarantor. 

 

“Collateral
Trust Agreement” means the Collateral Trust Agreement, dated as of the Issue Date, among the Company, Intermediate Holdco,
the Subsidiary Guarantors party thereto, the Collateral Trustee and the Trustee, as the same may be amended, supplemented or otherwise
modified from time to time.

 

“Collateral
Trustee” means the collateral trustee for all holders of Parity
Lien Obligations. U.S. Bank National Association will initially
serve as the Collateral Trustee.

 

“Commission”
means the Securities and Exchange Commission.

 

“Company”
means Energy XXI Gulf Coast, Inc., a Delaware corporation, and any and all successors thereto.

    	8

    	 

    

 

“Consolidated
Cash Flow” means, with respect to any specified Person for any period, the Consolidated Net Income of such Person for
such period plus:

 

(1)         provision
for taxes based on income or profits of such Person and its Restricted Subsidiaries for such period, to the extent that such provision
for taxes was deducted in computing such Consolidated Net Income; plus

 

(2)         Fixed
Charges of such Person and its Restricted Subsidiaries for such period; plus

 

(3)         depreciation,
depletion and amortization (including amortization of intangibles but excluding amortization of prepaid cash expenses that were
paid in a prior period), impairment, exploration expense, and other non-cash expenses (excluding any such non-cash expense to the
extent that it represents an accrual of or reserve for cash expenses in any future period or amortization of a prepaid cash expense
that was paid in a prior period) of such Person and its Restricted Subsidiaries for such period to the extent that such depreciation,
depletion and amortization, impairment and other non-cash expenses were deducted in computing such Consolidated Net Income; plus

 

(4)         accretion
of asset retirement obligations in accordance with SFAS No. 143, Accounting for Asset Retirement Obligations, and any similar accounting
in prior periods; plus

 

(5)         unrealized
non-cash losses resulting from foreign currency balance sheet adjustments required by GAAP to the extent such losses were deducted
in computing such Consolidated Net Income; minus

 

(6)         non-cash
items increasing such Consolidated Net Income for such period, other than items that were accrued in the ordinary course of business;
and minus 

 

(7)         to
the extent included in determining Consolidated Net Income, the sum of (x) the amount of deferred revenues that are amortized during
such period and are attributable to reserves that are subject to Volumetric Production Payments and (y) amounts recorded in accordance
with GAAP as repayments of principal and interest pursuant to Dollar-Denominated Production Payments,

 

in each case, on a
consolidated basis and determined in accordance with GAAP.

 

“Consolidated
Net Income” means, with respect to any specified Person for any period, the aggregate of the Net Income of such Person
and its Restricted Subsidiaries for such period, on a consolidated basis, determined in accordance with GAAP; provided that:

 

(1)         the
Net Income (but not loss) of any Person that is not a Restricted Subsidiary or that is accounted for by the equity method of accounting
will be excluded, except to the extent of the amount of dividends or distributions paid in cash to the specified Person or a Restricted
Subsidiary of the Person;

 

(2)         the
Net Income of any Restricted Subsidiary will be excluded to the extent that the declaration or payment of dividends or similar
distributions by that Restricted Subsidiary of that Net Income is not at the date of determination permitted without any prior
governmental approval (that has not been obtained) or, directly or indirectly, by operation of the terms of its charter or any
agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Restricted Subsidiary
or its stockholders, partners or members;

    	9

    	 

    

 

(3)         the
cumulative effect of a change in accounting principles will be excluded;

 

(4)         income
resulting from transfers of assets (other than cash) between the Company or any of its Restricted Subsidiaries, on the one hand,
and an Unrestricted Subsidiary, on the other hand, will be excluded;

 

(5)         any
write-downs of non-current assets will be excluded; provided that any ceiling limitation write-downs under Commission guidelines
shall be treated as capitalized costs, as if such write-downs had not occurred;

 

(6)         any
unrealized non-cash gains or losses or charges in respect of hedge or non-hedge derivatives (including those resulting from the
application of SFAS 133) will be excluded;

 

(7)         any
non-cash compensation charge arising from any grant of stock, stock options or other equity-based awards will be excluded;

 

(8)         any
item classified as an extraordinary, unusual or nonrecurring gain, loss or charge will be excluded;

 

(9)         all
deferred financing costs written off and premiums paid or other charges in connection with any early extinguishment of Indebtedness
will be excluded;

 

(10)        any
net after-tax income or loss from disposed, abandoned, transferred, closed or discontinued operations and any net after-tax gain
or loss on disposed, abandoned, transferred, closed or discontinued operations will be excluded; and

 

(11)        all
Permitted Payments to Parent will be excluded.

 

“Corporate
Trust Office of the Trustee” will be at the address of the Trustee specified in Section 11.02 hereof or such other address
as to which the Trustee may give notice to the Company.

 

“Credit Agreement”
means the Second Amended and Restated Credit Agreement entered into as of May 5, 2011, as amended, among the Company, as borrower,
the guarantors party thereto, the various lenders named therein and The Royal Bank of Scotland plc, as administrative agent, providing
for revolving credit borrowings, including any related notes, guarantees, collateral documents, instruments and agreements executed
in connection therewith, and in each case as amended, restated, modified, renewed, refunded, replaced or refinanced from time to
time with banks or other institutional lenders or investors.

 

“Credit Agreement
Agent” means, at any time, the Person serving at such time as the “Agent” or “Administrative Agent”
under the Credit Agreement or any other representative then most recently designated in accordance with the applicable provisions
of the Credit Agreement, together with its successors in such capacity. 

 

“Credit
Facilities” means one or more debt facilities (including, without limitation, the Credit Agreement), commercial paper
facilities or capital markets financings, in each case with banks or other institutional lenders or investors providing for revolving
credit loans, term loans, receivables financing (including through the sale of receivables to such lenders or to special purpose
entities formed to borrow from (or sell receivables to) such lenders against such receivables), letters of credit or capital markets
financings, in each case, as amended, restated, modified, renewed, refunded, replaced or refinanced (including refinancing with
any capital markets transaction) in whole or in part from time to time with banks or other institutional lenders or investors.

    	10

    	 

    

  

“Default”
means any event that is, or with the passage of time or the giving of notice or both would be, an Event of Default.

 

“Definitive
Note” means a certificated Note registered in the name of the Holder thereof and issued in accordance with Section 2.06
hereof, substantially in the form of Exhibit A hereto, except that such Note shall not bear the Global Note Legend and shall not
have the “Schedule of Exchanges of Interests in the Global Note” attached thereto.

 

“Depositary”
means, with respect to the Notes issuable or issued in whole or in part in global form, the Person specified in Section 2.03 hereof
as the Depositary with respect to the Notes, and any and all successors thereto appointed as depositary hereunder and having become
such pursuant to the applicable provision of this Indenture.

 

“Disqualified
Stock” means any Capital Stock that, by its terms (or by the terms of any security into which it is convertible, or for
which it is exchangeable, in each case, at the option of the holder of the Capital Stock), or upon the happening of any event,
matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the option of the holder
of the Capital Stock, in whole or in part, on or prior to the date that is 91 days after the date on which the Notes mature. Notwithstanding
the preceding sentence, any Capital Stock that would constitute Disqualified Stock solely because the holders of the Capital Stock
have the right to require the Company to repurchase or redeem such Capital Stock upon the occurrence of a change of control or
an asset sale will not constitute Disqualified Stock if the terms of such Capital Stock provide that the Company may not repurchase
or redeem any such Capital Stock pursuant to such provisions unless such repurchase or redemption complies with Section 4.07 hereof.

 

“Disqualifying
Condition Termination” means that either (a) the EPL Notes have been paid, defeased or satisfied and discharged in full,
or (b) the indenture governing the EPL Notes shall have been duly supplemented or amended to eliminate or modify the covenant restrictions
in such indenture or the EPL Notes in order to eliminate any restriction on the ability of the EPL Entities to provide guarantees
of all of the Company’s and the Subsidiary Guarantors’ outstanding Indebtedness and the granting of Liens on assets
of the EPL Entities to secure such guarantees. 

 

“Dollar-Denominated
Production Payments” means production payment obligations recorded as liabilities in accordance with GAAP, together with
all undertakings and obligations in connection therewith.

 

“Domestic
Subsidiary” means any Restricted Subsidiary of the Company other than a Foreign Subsidiary.

 

“EPL” means EPL Oil &
Gas, Inc.

 

“EPL Entities” means
EPL and any Subsidiary thereof.

 

“EPL Notes” means EPL’s
8.25% notes due 2018 outstanding on the Issue Date.

 

    	11

    	 

    

  

“Equity Interests”
means Capital Stock and all warrants, options or other rights to acquire Capital Stock (but excluding any debt security that
is convertible into, or exchangeable for, Capital Stock).

 

“Equity Offering”
means any public or private sale of Capital Stock (other than Disqualified Stock) made for cash on a primary basis by the Company
after the Issue Date.

 

“Euroclear”
means Euroclear Bank S.A./N.V., or any successor securities clearing agency.

 

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

 

“Excluded
Assets” means any of the following, except to the extent any such Property is subject to a Priority Lien generally in
favor of all holders of Priority Lien Obligations:

 

(1)         any
lease, license, contract, property right or agreement to which the Company or any Guarantor is a party or any of its rights or
interests thereunder if and only for so long as the grant of a Lien under the Security Documents is prohibited by any law, rule
or regulation or will constitute or result in a breach, termination or default, or requires any governmental consent not obtained,
under any such lease, license, contract, property right or agreement (other than to the extent that any such applicable law, rule,
regulation or term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial Code
of any relevant jurisdiction or any other applicable law or principles of equity); provided that such lease, license, contract,
property right or agreement will be an Excluded Asset only to the extent and for so long as the consequences specified above will
result and will cease to be an Excluded Asset and will become subject to the Lien granted under the Security Documents, immediately
and automatically, at such time as such consequences will no longer result;

 

(2)         any
Capital Stock issued by any first tier Foreign Subsidiaries directly owned by the Company or any Guarantor in excess of 65% of
the voting Capital Stock issued by such first tier Foreign Subsidiaries and any Capital Stock issued by any Foreign Subsidiaries
other than first tier Foreign Subsidiaries;

 

(3)         property
and assets owned by the Company or any Guarantor that are the subject of Permitted Liens described in clauses (14) of the definition
thereof for so long as such Permitted Liens are in effect if the contract or other agreement in which such Lien is granted (or
the documentation providing for such Permitted Liens) prohibits or requires the consent of any Person other than the Company and
its Affiliates);

 

(4)         any
Priority Lien Collateral that is or may be provided to certain Hedging Obligation counterparties, certain banking product and account
providers or issuers of letters of credit pursuant to the Priority Lien Documents rather than generally to the Priority Lien Secured
Parties or to Priority Lien Agent for the benefit of the Priority Lien Secured Parties as a whole;

 

(5)         the
intercompany note from EPL to the Company issued on or about the Issue Date in connection with the loan by the Company to EPL of
certain proceeds of the Initial Notes, or any guarantees thereof by other EPL Entities, as may be amended or refinanced; and

 

(6)         other
property or assets owned by the Company or any Guarantor that are not required to be subject to a Lien securing the Priority Lien
Obligations pursuant to the Priority Lien Documents;

 

    	12

    	 

    

 

provided, that
“Excluded Assets” will not include any proceeds, products, substitutions or replacements of any Excluded Assets (unless
such proceeds, products, substitutions or replacements would constitute Excluded Assets).

 

“Existing
Indebtedness” means the aggregate principal amount of Indebtedness of the Company and its Restricted Subsidiaries (other
than Indebtedness under the Credit Agreement which is considered incurred under Section 4.09(b)(1)) in existence on the Issue Date,
until such amounts are repaid, including, without limitation, the Existing Unsecured Notes.

 

“Existing
Unsecured Notes” means (i) the Company’s 9.25% Senior Notes due 2017, 7.75% Senior Notes due 2019, 7.50% Senior
Notes due 2021 and 6.875% Senior Notes due 2024 and (ii) the EPL Notes.

 

“Fair Market
Value” means the value that would be paid by a willing buyer to an unaffiliated willing seller in a transaction not involving
distress or necessity of either party, as such price is determined in good faith by the Company (unless otherwise provided in this
Indenture).

 

“Fixed Charge
Coverage Ratio“ means with respect to any specified Person for any four-quarter reference period, the ratio of the Consolidated
Cash Flow of such Person for such period to the Fixed Charges of such Person for such period. In the event that the specified Person
or any of its Restricted Subsidiaries incurs, assumes, guarantees, repays, repurchases or redeems any Indebtedness (other than
ordinary working capital borrowings) or issues, repurchases or redeems preferred stock subsequent to the commencement of the applicable
four-quarter reference period and on or prior to the date on which the event for which the calculation of the Fixed Charge Coverage
Ratio is made (the “Calculation Date”), then the Fixed Charge Coverage Ratio will be calculated giving pro forma effect
to such incurrence, assumption, guarantee, repayment, repurchase or redemption of Indebtedness, or such issuance, repurchase or
redemption of preferred stock, and the use of the proceeds therefrom as if the same had occurred at the beginning of such period.

 

In addition, for purposes
of calculating the Fixed Charge Coverage Ratio:

 

(1)         acquisitions
that have been made by the specified Person or any of its Restricted Subsidiaries, including through mergers or consolidations
and including any related financing transactions, subsequent to the commencement of the applicable four-quarter reference period
and on or prior to the Calculation Date will be given pro forma effect as if they had occurred on the first day of such period,
including any Consolidated Cash Flow, provided that any cost savings or operating improvements may be given such pro forma effect
only if they are permitted by Regulation S-X promulgated under the Securities Act or any other regulation or policy of the Commission
related thereto;

 

(2)         the
Consolidated Cash Flow attributable to discontinued operations, as determined in accordance with GAAP, and assets, operations or
businesses disposed of prior to the Calculation Date, will be excluded; and

 

(3)         the
Fixed Charges attributable to discontinued operations, as determined in accordance with GAAP, and assets, operations or businesses
disposed of prior to the Calculation Date, will be excluded, but only to the extent that the obligations giving rise to such Fixed
Charges will not be obligations of the specified Person or any of its Restricted Subsidiaries following the Calculation Date.

 

    	13

    	 

    

 

“Fixed Charges”
means, with respect to any specified Person for any period, the sum, without duplication, of:

 

(1)         the
consolidated interest expense of such Person and its Restricted Subsidiaries for such period, whether paid or accrued, including,
without limitation, amortization of debt issuance costs (excluding, however, prepayment penalties associated with repayment of
debt from the proceeds of the sale of the Initial Notes) and original issue discount, non-cash interest payments, the interest
component of any deferred payment obligations, the interest component of all payments associated with Capital Lease Obligations,
imputed interest with respect to Attributable Debt, commissions, discounts and other fees and charges incurred in respect of letter
of credit or bankers’ acceptance financings, and net of the effect of all payments made or received pursuant to Hedging Obligations
in respect of interest rates; plus

 

(2)         the
consolidated interest expense of such Person and its Restricted Subsidiaries that was capitalized during such period; plus

 

(3)         any
interest expense on Indebtedness of another Person that is guaranteed by such Person or one of its Restricted Subsidiaries or secured
by a Lien on assets of such Person or one of its Restricted Subsidiaries, whether or not such guarantee or Lien is called upon;
plus

 

(4)         the
product of (a) all dividends, whether paid or accrued and whether or not in cash, on any series of preferred stock of such Person
or any of its Restricted Subsidiaries, other than dividends on Equity Interests payable solely in Equity Interests of the Company
(other than Disqualified Stock) or to the Company or a Restricted Subsidiary of the Company, times (b) a fraction, the numerator
of which is one and the denominator of which is one minus the then current combined federal, state and local statutory tax rate
of such Person, expressed as a decimal,

 

in each
case, determined on a consolidated basis in accordance with GAAP.

 

“Foreign Subsidiary”
means any Restricted Subsidiary of the Company that was not formed under the laws of the United States or any state of the
United States or the District of Columbia and that conducts substantially all of its operations outside the United States.

 

“GAAP”
means generally accepted accounting principles in the United States, which are in effect from time to time.

 

“Global Note
Legend” means the legend set forth in Section 2.06(f)(2) hereof, which is required to be placed on all Global Notes issued
under this Indenture.

 

“Global Notes”
means and includes each Note deposited with or on behalf of and registered in the name of the Depository or its nominee, substantially
in the form of Exhibit A hereto and that bears the Global Note Legend and the OID Legend, if applicable, and that has the “Schedule
of Exchanges of Interests in the Global Note” attached thereto, issued in accordance with Sections 2.01 and 2.06 hereof.

 

“Government
Securities” means direct obligations of, or obligations guaranteed by, the United States of America, and the payment
for which the United States pledges its full faith and credit.

 

“guarantee”
means a guarantee other than by endorsement of negotiable instruments for collection in the ordinary course of business, direct
or indirect, in any manner including, without limitation, by way of a pledge of assets or through letters of credit or reimbursement
agreements in respect thereof, of all or any part of any Indebtedness. When used as a verb, “guarantee” has
a correlative meaning.

 

    	14

    	 

    

 

“Guarantee”
means the Guarantee by each Guarantor of the Company’s obligations under this Indenture and the Notes, executed pursuant
to the provisions of this Indenture.

 

“Guarantors”
means the Parent, Intermediate Holdco and each Subsidiary Guarantor, and their respective successors and assigns, in each case
until their respective Guarantee of the Notes is released in accordance with this Indenture.

 

“Hedging Obligations”
means, with respect to any specified Person, the obligations of such Person incurred in the normal course of business and consistent
with past practices and not for speculative purposes under:

 

(1)         interest
rate swap agreements, interest rate cap agreements and interest rate collar agreements entered into with one of more financial
institutions and designed to protect the Person or any of its Restricted Subsidiaries entering into the agreement against fluctuations
in interest rates with respect to Indebtedness incurred;

 

(2)         foreign
exchange contracts and currency protection agreements entered into with one of more financial institutions and designed to protect
the Person or any of its Restricted Subsidiaries entering into the agreement against fluctuations in currency exchanges rates with
respect to Indebtedness incurred;

 

(3)         any
commodity futures contract, commodity option or other similar agreement or arrangement designed to protect against fluctuations
in the price of oil, natural gas or other commodities used, produced, processed or sold by that Person or any of its Restricted
Subsidiaries at the time; and

 

(4)         other
agreements or arrangements designed to protect such Person or any of its Restricted Subsidiaries against fluctuations in interest
rates, commodity prices or currency exchange rates.

 

“Holder”
means a Person in whose name a Note is registered.

 

“Hydrocarbon Interests”
means all rights, titles, interests and estates now or hereafter acquired in and to oil and gas leases, oil, gas and mineral leases,
or other liquid or gaseous hydrocarbon leases, mineral fee interests, overriding royalty and royalty interests, net profit interests
and production payment interests, including any reserved or residual interests of whatever nature.

 

“Hydrocarbons”
means oil, gas, casinghead gas, drip gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons
and all products refined or separated therefrom

 

“Indebtedness“
means, with respect to any specified Person, without duplication,

 

(1)         all
obligations of such Person, whether or not contingent, in respect of:

 

(a)    the
principal of and premium, if any, in respect of outstanding (A) Indebtedness of such Person for money borrowed and (B) Indebtedness
evidenced by notes, debentures, bonds or other similar instruments for the payment of which such Person is responsible or liable;

 

    	15

    	 

    

 

(b)    all
Capital Lease Obligations of such Person and all Attributable Debt in respect of sale and leaseback transactions entered into by
such Person;

 

(c)    the
deferred purchase price of property, which purchase price is due more than six months after the date of taking delivery of title
to such property, including all obligations of such Person for the deferred purchase price of property under any title retention
agreement, but excluding accrued expenses and trade accounts payable arising in the ordinary course of business; and

 

(d)    the
reimbursement obligation of any obligor for the principal amount of any letter of credit, banker’s acceptance or similar
transaction (excluding obligations with respect to letters of credit securing obligations (other than obligations described in
clauses (a) through (c) above) entered into in the ordinary course of business of such Person to the extent such letters of credit
are not drawn upon or, if and to the extent drawn upon, such drawing is reimbursed no later than the tenth Business Day following
receipt by such Person of a demand for reimbursement following payment on the letter of credit);

 

(2)         all
net obligations in respect of Hedging Obligations except to the extent such net obligations are otherwise included in this definition;

 

(3)         all
liabilities of others of the kind described in the preceding clause (1) or (2) that such Person has guaranteed or that are otherwise
its legal liability;

 

(4)         with
respect to any Production Payment, any warranties or guaranties of production or payment by such Person with respect to such Production
Payment but excluding other contractual obligations of such Person with respect to such Production Payment;

 

(5)         Indebtedness
(as otherwise defined in this definition) of another Person secured by a Lien on any asset of such Person, whether or not such
Indebtedness is assumed by such Person, the amount of such obligations being deemed to be the lesser of

 

(a)    the
full amount of such obligations so secured, and

 

(b)    the
fair market value of such asset as determined in good faith by such specified Person;

 

(6)         Disqualified
Stock of such Person or a Restricted Subsidiary in an amount equal to the greater of the maximum mandatory redemption or repurchase
price (not including, in either case, any redemption or repurchase premium) or the liquidation preference thereof;

 

(7)         the
aggregate preference in respect of amounts payable on the issued and outstanding shares of preferred stock of any of the Company’s
Restricted Subsidiaries that are not Guarantors in the event of any voluntary or involuntary liquidation, dissolution or winding
up (excluding any such preference attributable to such shares of preferred stock that are owned by such Person or any of its Restricted
Subsidiaries; provided, that if such Person is the Company, such exclusion shall be for such preference attributable to
such shares of preferred stock that are owned by the Company or any of its Restricted Subsidiaries); and

 

(8)         any
and all deferrals, renewals, extensions, refinancings and refundings (whether direct or indirect) of, or amendments, modifications
or supplements to, any liability of the kind described in any of the preceding clauses (1), (2), (3), (4), (5), (6), (7) or this
clause (8), whether or not between or among the same parties.

 

    	16

    	 

    

 

Subject to clause (4) of the preceding
sentence, Production Payments shall not be deemed to be Indebtedness.

 

“Indenture”
means this Indenture, as amended or supplemented from time to time.

 

“Indirect
Participant” means a Person who holds a beneficial interest in a Global Note through a Participant.

 

“Initial Junior Lien Indebtedness”
means Indebtedness secured by a Junior Lien for which the requirements of Section 4.04(c) of the Intercreditor Agreement have been
satisfied that was permitted to be incurred and so secured under each applicable Secured Debt Document, as amended, restated, modified,
renewed, refunded, replaced or refinanced in whole or in part from time to time in accordance with the applicable Secured Debt
Documents.

 

“Initial Junior Lien Trustee”
means, at any time, the Person serving at such time as the “Collateral Trustee” or “Collateral Agent” under
the Initial Junior Lien Indebtedness or any other representative then most recently designated in accordance with the applicable
provisions of the Initial Junior Lien Indebtedness, together with its successors in such capacity.

 

“Initial Notes”
means the first $1,450,000,000 aggregate principal amount of Notes issued under this Indenture on the date hereof.

 

“Initial Reserve Report”
means the internal unaudited reserve report concerning Oil and Gas Properties of the Company as of December 31, 2014, prepared
by the Company’s petroleum engineers.

 

“Intercreditor Agreement”
means the Intercreditor Agreement among the Collateral Trustee, the Trustee, the Priority Lien Collateral Agent, the Company, Intermediate
Holdco, the Subsidiary Guarantors and the other parties from time to time party thereto, to be entered into on the date of this
Indenture, as it may be amended, restated, supplemented or otherwise modified from time to time in accordance with this Indenture.

 

“Intermediate Holdco”
means Energy XXI USA, Inc., a Delaware corporation.

 

“Intermediate
Holdco Pledge Agreement” means the Second Lien Pledge Agreement and Irrevocable Proxy, dated as of the Issue Date, among
Intermediate Holdco and the Collateral Trustee, as the same may be amended, supplemented or otherwise modified or replaced from
time to time.

 

“Intermediate
Holdco Security Agreement” means the Second Lien Security Agreement, dated as of the Issue Date, among Intermediate Holdco
and the Collateral Trustee, as the same may be amended, supplemented or otherwise modified or replaced from time to time. 

 

“Investment
Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent)
by S&P, or an equivalent rating by any other Rating Agency.

 

    	17

    	 

    

 

“Investments”
means, with respect to any Person, all direct or indirect investments by such Person in other Persons (including Affiliates) in
the forms of loans (including guarantees or other obligations), advances or capital contributions (excluding trade receivables
and commission, travel expenses and similar advances to officers and employees made in the ordinary course of business, purchases
or other acquisitions for consideration of Indebtedness, Equity Interests or other securities, together with all items that are
or would be classified as investments on a balance sheet prepared in accordance with GAAP. If the Company or any Restricted Subsidiary
of the Company sells or otherwise disposes of any Equity Interests of any direct or indirect Restricted Subsidiary of the Company
such that, after giving effect to any such sale or disposition, such Person is no longer a Restricted Subsidiary of the Company,
the Company will be deemed to have made an Investment on the date of any such sale or disposition equal to the Fair Market Value
of the Equity Interests of such Restricted Subsidiary that were not sold or disposed of in an amount determined as provided in
Section 4.07(c) hereof.

 

“Issue Date”
means the date on which Notes are first issued under this Indenture.

 

“Junior Lien” means a
Lien, junior to the Priority Liens and the Parity Liens as provided in the Intercreditor Agreement, granted by the Company, Intermediate
Holdco or any Guarantor in favor of holders of Junior Lien Debt (or any collateral trustee or representative in connection therewith),
at any time, upon any property of the Company, Intermediate Holdco or any Guarantor to secure Junior Lien Obligations.

 

“Junior Lien Collateral Agent”
means the Initial Junior Lien Trustee (or such Person designated by the Initial Junior Lien Trustee), or if the Initial Junior
Lien Indebtedness ceases to exist, the collateral trustee or other representative of lenders or holders of Junior Lien Obligations
designated pursuant to the terms of the Junior Lien Documents and the Intercreditor Agreement.

 

“Junior Lien Collateral”
shall mean all “Collateral”, as defined in any Junior Lien Document, and any other assets of any Grantor now or at
any time hereafter subject to Liens which secure, but only to the extent securing, any Junior Lien Obligations.

 

“Junior Lien Debt” means:

 

(1)         the
Initial Junior Lien Indebtedness, and

 

(2)         any
other Indebtedness (other than intercompany Indebtedness owing to Parent or its Subsidiaries) of the Company or any Subsidiary
Guarantor (and Indebtedness in the form of guarantees by Parent and Intermediate Holdco of Junior Lien Debt of the Company and
the Subsidiary Guarantors) that is secured by a Junior Lien that was permitted to be incurred and so secured under each applicable
Secured Debt Document; provided that, in the case of any Indebtedness referred to in this definition:

 

(a)          on
or before the date on which such Indebtedness is incurred by the Company or any Subsidiary Guarantor (or the date that Parent or
Intermediate Holdco guarantees Junior Lien Debt of the Company and the Subsidiary Guarantors), such Indebtedness is designated
by the Company, in an officers’ certificate delivered to the Junior Lien Collateral Agent and collateral trustee as (x) in
the case of Initial Junior Lien Indebtedness, as “Initial Junior Lien Indebtedness” and (y) in the case of all Junior
Lien Debt, as “Junior Lien Debt” for the purposes of the Secured Debt Documents; provided that if such Series
of Secured Debt is designated “Junior Lien Debt,” it cannot also be designated as Parity Lien Debt or Priority Lien
Debt (or any combination of the three);

 

(b)          the
collateral agent or other representative with respect to such Indebtedness, the Priority Lien Collateral Agent, the Junior Lien
Collateral Agent, the Collateral Trustee, the Company, each applicable Subsidiary Guarantor and, to the extent applicable, Parent
and Intermediate Holdco, have duly executed and delivered the Intercreditor Agreement (or a joinder to the Intercreditor Agreement
or a new Intercreditor Agreement substantially similar to the Intercreditor Agreement, as in effect on the date of this Indenture,
and in a form reasonably acceptable to each of the parties thereto); and

 

    	18

    	 

    

 

(c)          all
other requirements set forth in the Intercreditor Agreement as to the confirmation, grant or perfection of the Liens of the holders
of Junior Debt to secure such Indebtedness or Obligations in respect thereof are satisfied.

 

“Junior Lien
Documents” means, collectively, any indenture, credit agreement or other agreement or instrument pursuant to which Junior
Lien Debt is incurred and the documents pursuant to which Junior Lien Obligations are granted.

 

“Junior Lien
Obligations” means Junior Lien Debt and all other Obligations in respect thereof.

 

“Junior Lien
Representative” means (1) the Initial Junior Lien Trustee or (2) in the case of any other Series of Junior Lien Debt,
the trustee, agent or representative of the holders of such Series of Junior Lien Debt who maintains the transfer register for
such Series of Junior Lien Debt and is appointed as a representative of the Junior Lien Debt (for purposes related to the administration
of the Security Documents) pursuant to this Indenture, credit agreement or other agreement governing such Series of Junior Lien
Debt.

 

“Lien”
means, with respect to any asset, any mortgage, lien, pledge, charge, security interest, hypothecation or encumbrance of any kind
in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law, including any conditional
sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell or give a security
interest in and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or equivalent statutes)
of any jurisdiction other than a precautionary financing statement not intended as a security agreement.

 

“Material
Change” means an increase or decrease (excluding changes that result solely from changes in prices and changes resulting
from the incurrence of previously estimated future development costs) of more than 25% during a fiscal quarter in the discounted
future net revenues from proved crude oil and natural gas reserves of the Company and its Restricted Subsidiaries, calculated in
accordance with clause (1)(a) of the definition of ACNTA; provided, however, that the following will be excluded
from the calculation of Material Change:

 

(1)         any
acquisitions during the fiscal quarter of oil and gas reserves that have been estimated by a nationally recognized firm of independent
petroleum engineers and with respect to which a report or reports of such engineers exist; and

 

(2)         any
disposition of properties existing at the beginning of such fiscal quarter that have been disposed of in compliance with the Section
4.10 hereof.

 

“Material
Domestic Subsidiary” means any Domestic Subsidiary that is not a Guarantor, when taken together with all other Domestic
Subsidiaries that are not Guarantors, that at the time of determination has either assets or quarterly revenues in excess of 5.0%
of the consolidated assets or quarterly revenues of the Company and its Restricted Subsidiaries, in each case based upon the most
recent quarterly financial statements available to the Company.

 

“Modified
ACNTA” means, as of any date of determination, an amount equal to ACNTA calculated as of a date not more than 15 days
prior to the date of determination (the “calculation date”), on the following basis:

 

(a)          in
lieu of commodity pricing based on SEC guidelines, Modified ACNTA Prices shall be used after giving effect to hedging as determined
in good faith by the Company,

 

    	19

    	 

    

 

(b)          such
calculation shall be based on then current estimates of costs determined in good faith by the Company in light of prevailing market
conditions,

 

(c)          any
assets or liabilities relevant to such calculation of Restricted Subsidiaries that are not Subsidiary Guarantors (excluding any
intercompany receivable held by the Company from EPL) shall be disregarded in such calculation, and

 

(d)          Net
Working Capital will be calculated without including net cash proceeds of the Initial Notes;

 

provided, Modified
ACNTA shall be calculated without giving effect to the $325.0 million loan from the Company to EPL made with proceeds of the Initial
Notes.

 

“Modified
ACNTA Prices” means, as of any date of determination, the five-year (or nearest reasonably available period) strip price
for crude oil (WTI Cushing), for natural gas liquids (Mont Belvieu) and natural gas (Henry Hub), with such price held flat for
each subsequent year, quoted on the NYMEX (or its successor) as of the calculation date (as defined in the definition of Modified
ACNTA), provided, however, that with respect to the determinations prior to March 31, 2015, “Modified ACNTA Prices”
shall be the nine-year (or nearest reasonably available period) strip price for crude oil (WTI Cushing), for natural gas liquids
(Mont Belvieu) and natural gas (Henry Hub), with such price held flat for each subsequent year, quoted on the NYMEX (or its successor)
on February 9, 2015.

 

“Moody’s”
means Moody’s Investors Service, Inc. or any successor thereof.

 

“Mortgages”
means all mortgages, deeds of trust and similar documents, instruments and agreements (and all amendments, modifications and supplements
thereof) creating, evidencing, perfecting or otherwise establishing the Liens on Oil and Gas Properties and other related assets
to secure payment of the Notes and the Guarantees or any part thereof, in each case, substantially in the form of the corresponding
mortgages securing the Priority Liens Obligations with respect to the Oil and Gas Properties in question, or to the extent there
is no such corresponding mortgage, the mortgages securing the Priority Lien Obligations in place on the Issue Date, in each case,
with such changes are reasonably necessary to reflect the terms of the Intercreditor Agreement and with such deletions or modifications
of representations, warranties and covenants as are customary with respect to security documents establishing Liens securing publicly
traded debt securities, all as certified to the Collateral Trustee pursuant to an Officers’ Certificate of the Company.

 

“Net Income”
means, with respect to any specified Person, the net income (loss) of such Person, determined in accordance with GAAP and before
any reduction in respect of preferred stock dividends, excluding, however:

 

(1)         any
gain (but not loss), together with any related provision for taxes on such gain (but not loss), realized in connection with (a)
any Asset Sale or (b) the disposition of any securities by such Person or any of its Subsidiaries or the extinguishment of any
Indebtedness of such Person or any of its Subsidiaries; and

 

(2)         any
extraordinary gain (but not loss), together with any related provision for taxes on such extraordinary gain (but not loss).

 

“Net Proceeds”
means the aggregate cash proceeds received by the Company or any of its Restricted Subsidiaries in respect of any Asset Sale (including,
without limitation, any cash received upon the sale or other disposition of any non-cash consideration received in any Asset Sale),
net of, without duplication:

 

    	20

    	 

    

 

(1)         the
direct costs relating to such Asset Sale, including, without limitation, legal, accounting and investment banking fees, and sales
commissions, and any relocation expenses incurred as a result of the Asset Sale,

 

(2)         taxes
paid or payable as a result of the Asset Sale, in each case, after taking into account any available tax credits or deductions
and any tax sharing arrangements,

 

(3)         amounts
required to be applied to the repayment of Indebtedness, other than under the Credit Facilities, secured by a Lien on the properties
or assets that were the subject of such Asset Sale, and

 

(4)         any
reserve for adjustment in respect of the sale price of such properties or assets established in accordance with GAAP.

 

“Net Working
Capital” means:

 

(1)         all
current assets of the Company and its Restricted Subsidiaries, except current assets from commodity price risk management activities
arising in the ordinary course of business, minus

 

(2)         all
current liabilities of the Company and its Restricted Subsidiaries, except (i) current liabilities included in Indebtedness and
(ii) current liabilities from commodity price risk management activities arising in the ordinary course of business;

 

in each case, on a
consolidated basis and determined in accordance with GAAP.

 

“Non-Recourse
Debt” means Indebtedness:

 

(1)         as
to which neither the Company nor any of its Restricted Subsidiaries (a) provides credit support of any kind (including any undertaking,
agreement or instrument that would constitute Indebtedness), (b) is directly or indirectly liable as a guarantor or otherwise,
or (c) is the lender;

 

(2)         no
default with respect to which (including any rights that the holders of the Indebtedness may have to take enforcement action against
an Unrestricted Subsidiary) would permit upon notice, lapse of time or both any holder of any other Indebtedness (other than the
Notes) of the Company or any of its Restricted Subsidiaries to declare a default on such other Indebtedness or cause the payment
of the Indebtedness to be accelerated or payable prior to its Stated Maturity; and

 

(3)         the
explicit terms of which provide there is no recourse to the stock or assets of the Company or any of its Restricted Subsidiaries.

 

“Note Documents”
means this Indenture, the Notes, the Collateral Trust Agreement, the Security Documents and the Intercreditor Agreement. 

 

“Notes”
has the meaning assigned to it in the preamble to this Indenture. The Initial Notes and the Additional Notes shall be treated as
a single class for all purposes under this Indenture, and unless the context otherwise requires, all references to the “Notes”
shall include the Initial Notes and any Additional Notes.

 

    	21

    	 

    

 

“Notes Custodian”
means the custodian with respect to the Notes in global form, as appointed by the Depositary, or any successor entity thereto and
shall initially be the Trustee.

 

“Notes Obligations”
has the meaning set forth in Section 13.01.

 

“NYMEX”
means the New York Mercantile Exchange.

 

“Obligations”
means any principal, premium, if any, interest (including interest accruing on or after the filing of any petition in bankruptcy
or for reorganization, whether or not a claim for post-filing interest is allowed in such proceeding) penalties, fees, charges,
expenses, indemnifications, reimbursements, damages, guarantees and other liabilities or amounts payable under the documentation
governing any Indebtedness or in respect thereto.

 

“Offering
Memorandum” means the final offering memorandum of the Company dated March 5, 2015 relating to the offering of the Initial
Notes.

 

“Officer”
means, with respect to any Person, the Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating Officer,
the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary or any Vice-President of such
Person.

 

“Officers’
Certificate” means a certificate signed on behalf of the Company by two Officers of the Company, one of whom must be
the principal executive officer, the principal financial officer, the treasurer or the principal accounting officer of the Company,
that meets the requirements of Section 11.05 hereof.

 

“OID Legend”
means the legend set forth in Section 2.06(f)(3) hereof to be placed on all Notes issued under this Indenture that have more than
a de minimis amount of original issue discount for U.S. federal income tax purposes.

 

“Oil and Gas
Business” means:

 

(1)         the
acquisition, exploration, development, operation and disposition of interests in oil, natural gas and other Hydrocarbons;

 

(2)         the
gathering, marketing, treating, processing (but not refining), storage, selling and transporting of any production from those interests,
including any hedging activities related thereto; and

 

(3)         any
activity necessary, appropriate, incidental or reasonably related to the activities described above.

 

“Oil and Gas
Properties” means (a) Hydrocarbon Interests; (b) the Properties now or hereafter pooled or unitized with Hydrocarbon
Interests; (c) all presently existing or future unitization, pooling agreements and declarations of pooled units and the units
created thereby (including without limitation all units created under orders, regulations and rules of any governmental authority)
that may affect all or any portion of the Hydrocarbon Interests; (d) all operating agreements, contracts and other agreements,
including production sharing contracts and agreements, that relate to any of the Hydrocarbon Interests or the production, sale,
purchase, exchange or processing of Hydrocarbons from or attributable to such Hydrocarbon Interests; (e) all Hydrocarbons in and
under and that may be produced and saved or attributable to the Hydrocarbon Interests, including all oil in tanks, and all rents,
issues, profits, proceeds, products, revenues and other incomes from or attributable to the Hydrocarbon Interests; (f) all tenements,
hereditaments, appurtenances and Properties in any manner appertaining, belonging, affixed or incidental to the Hydrocarbon Interests
and (g) all Properties, rights, titles, interests and estates described or referred to above, including any and all Property, real
or personal, now owned or hereinafter acquired and situated upon, used, held for use or useful in connection with the operating,
working or development of any of such Hydrocarbon Interests or Property (excluding drilling rigs, automotive equipment, rental
equipment or other personal Property that may be on such premises for the purpose of drilling a well or for other similar temporary
uses) and including any and all oil wells, gas wells, injection wells or other wells, buildings, structures, fuel separators, liquid
extraction plants, plant compressors, pumps, pumping units, field gathering systems, tanks and tank batteries, fixtures, valves,
fittings, machinery and parts, engines, boilers, meters, apparatus, equipment, appliances, tools, implements, cables, wires, towers,
casing, tubing and rods, surface leases, rights-of-way, easements and servitudes, together with all additions, substitutions, replacements,
accessions and attachments to any and all of the foregoing.

  

    	22

    	 

    

 

“Opinion of
Counsel” means an opinion from legal counsel who is reasonably acceptable to the Trustee, that meets the requirements
of Section 11.05 hereof. The counsel may be an employee of or counsel to the Company, any Subsidiary of the Company or the Trustee.

 

“Parent”
means Energy XXI Ltd and its permitted successors and assigns.

 

“Parity Lien”
means a Lien granted by the Company, Intermediate Holdco or any Guarantor in favor of the Collateral Trustee pursuant to a Security
Document, at any time, upon any property of the Company, Intermediate Holdco or any Guarantor to secure Parity Lien Obligations.

 

“Parity Lien
Debt” means:

 

(1)         the
Initial Notes and Guarantees thereof; and

 

(2)         any
other Indebtedness (other than intercompany Indebtedness owing to Parent or its Subsidiaries) of the Company or any Subsidiary
Guarantor (including Additional Notes and Guarantees thereof) (and Indebtedness in the form of guarantees by Parent and Intermediate
Holdco of Parity Lien Debt of the Company and the Subsidiary Guarantors) that is secured equally and ratably with the Notes by
a Parity Lien that was permitted to be incurred and so secured under each applicable Secured Debt Document; provided that, in the
case of any Indebtedness referred to in clause (2) of this definition:

 

(a)          on
or before the date on which such Indebtedness is incurred by the Company or any Subsidiary Guarantor (or the date that Parent or
Intermediate Holdco guarantees Parity Lien Debt of the Company and the Subsidiary Guarantors), such Indebtedness is designated
by the Company, in an officers’ certificate delivered to each Parity Lien Representative and the Collateral Trustee, as “Parity
Lien Debt” for the purposes of this Indenture and the Collateral Trust Agreement; provided, further that no Series
of Secured Debt may be designated as both Parity Lien Debt and Priority Lien Debt or Junior Lien Debt;

 

(b)          other
than in the case of Additional Notes, such Indebtedness is governed by an indenture, credit agreement or other agreement that includes
an Additional Secured Debt Designation; and

 

(c)          all
requirements set forth in the Collateral Trust Agreement as to the confirmation, grant or perfection of the Collateral Trustee’s
Liens to secure such Indebtedness or Obligations in respect thereof are satisfied (and the satisfaction of such requirements and
the other provisions of this clause (c) will be conclusively established if the Company delivers to the Collateral Trustee an Officers’
Certificate stating that such requirements and other provisions have been satisfied and that such Indebtedness is “Parity
Lien Debt”).

 

    	23

    	 

    

 

“Parity Lien
Documents” means, collectively, the Note Documents and any additional indenture, credit agreement or other agreement
governing each other Series of Parity Lien Debt and the Security Documents (other than any Security Documents that do not secure
Parity Lien Obligations).

 

“Parity Lien
Obligations” means Parity Lien Debt and all other Obligations in respect thereof.

 

“Parity Lien
Purchaser Representative” means (a) initially, the Trustee or (b) such other Person that is unanimously appointed from
time to time by the Parity Lien Representatives to replace the Trustee (or subsequent Parity Lien Purchaser Representative) pursuant
to a written notice to the Priority Lien Collateral Agent.

 

“Parity Lien
Representative” means:

 

(1)         in
the case of the Notes, the Trustee; or

 

(2)         in
the case of any other Series of Parity Lien Debt, the trustee, agent or representative of the holders of such Series of Parity
Lien Debt who (a) is appointed as a Parity Lien Representative (for purposes related to the administration of the Security Documents)
pursuant to the indenture, credit agreement or other agreement governing such Series of Parity Lien Debt, together with its successors
in such capacity, and (b) has become a party to the Collateral Trust Agreement by executing a joinder in the form required under
the Collateral Trust Agreement.

 

“Participant”
means, with respect to the Depositary, Euroclear or Clearstream, a Person who has an account with the Depositary, Euroclear or
Clearstream, respectively (and, with respect to DTC, shall include Euroclear and Clearstream).

 

“Permitted
Business Investments” means Investments made in the ordinary course of, and of a nature that is or shall have become
customary in, the Oil and Gas Business, including through agreements, transactions, interests or arrangements that permit one to
share risk or costs, comply with regulatory requirements regarding local ownership or satisfy other objectives customarily achieved
through the conduct of the Oil and Gas Business jointly with third parties, including without limitation:

 

(1)         direct
or indirect ownership of crude oil, natural gas, other related Hydrocarbon and mineral properties or any interest therein or gathering,
transportation, processing, storage or related systems; and

 

(2)         the
entry into operating agreements, joint ventures, processing agreements, working interests, royalty interests, mineral leases, farm-in
agreements, farm-out agreements, development agreements, production sharing agreements, area of mutual interest agreements, contracts
for the sale, transportation or exchange of crude oil and natural gas and related Hydrocarbons and minerals, unitization agreements,
pooling arrangements, joint bidding agreements, service contracts, limited liability company agreements, partnership agreements
(whether general or limited), or other similar or customary agreements, transactions, properties, interests or arrangements and
Investments and expenditures in connection therewith or pursuant thereto, in each case made or entered into in the ordinary course
of the Oil and Gas Business.

 

“Permitted
Investments” means:

 

(1)         any
Investment in the Company or in a Restricted Subsidiary of the Company;

 

(2)         any
Investment in Cash Equivalents;

 

    	24

    	 

    

 

(3)           any
Investment by the Company or any Restricted Subsidiary of the Company in a Person, if as a result of such Investment:

 

(a)          such
Person becomes a Restricted Subsidiary of the Company; or

 

(b)          such
Person is merged, consolidated or amalgamated with or into, or transfers or conveys substantially all of its properties or assets
to, or is liquidated into, the Company or a Restricted Subsidiary of the Company;

 

(4)         any
Investment made as a result of the receipt of non-cash consideration from an Asset Sale that was made pursuant to and in compliance
with Section 4.10 hereof;

 

(5)         any
Investment in any Person, solely in exchange for the issuance of Equity Interests (other than Disqualified Stock) of the Company;

 

(6)         any
Investments received in compromise of obligations of trade creditors or customers that were incurred in the ordinary course of
business, including pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of any trade
creditor or customer;

 

(7)         Investments
represented by Hedging Obligations permitted pursuant to and in compliance with Section 4.09;

 

(8)         Permitted
Business Investments; and

 

(9)         other
Investments in any Person having an aggregate Fair Market Value (measured on the date each such Investment was made and without
giving effect to subsequent changes in value), when taken together with all other Investments under this clause (9), that are at
the time outstanding, not exceeding 2.0% of ACNTA.

 

“Permitted
Liens” means:

 

(1)         Liens
on any property or assets of the Company or any Restricted Subsidiary securing Priority Lien Debt or Parity Lien Debt under the
Credit Facilities incurred under clause (1) of the definition of “Permitted Debt”;

 

(2)         Liens
in favor of the Company or the Subsidiary Guarantors;

 

(3)         Liens
on any property or assets of the Company or any Guarantor securing the Initial Notes and the Guarantees thereof;

 

(4)         Liens
on any property or assets of a Person existing at the time such Person is merged with or into or consolidated with the Company
or any Restricted Subsidiary of the Company, provided that such Liens were in existence prior to the contemplation of such
merger or consolidation and do not extend to any property or assets other than those of the Person merged into or consolidated
with the Company or the Restricted Subsidiary;

 

(5)         Liens
on any property or assets existing at the time of acquisition thereof by the Company or any Restricted Subsidiary of the Company;
provided that such Liens were not incurred in connection with the contemplation of, such acquisition;

 

    	25

    	 

    

 

(6)         Liens
to secure the performance of statutory obligations, surety or appeal bonds, performance bonds or other obligations of a like nature
incurred in the ordinary course of business;

 

(7)         Liens
existing on the Issue Date (other than Liens described in another clause of this definition);

 

(8)         Liens
arising from Uniform Commercial Code financing statement filings regarding operating leases entered into by the Company and its
Restricted Subsidiaries in the ordinary course of business;

 

(9)         Liens
to secure any Permitted Refinancing Indebtedness incurred to renew, refinance, refund, replace, amend, defease or discharge, as
a whole or in part, Indebtedness that was previously so secured pursuant to clauses (3), (4), (5), (7), (9), (21) or (22) of this
definition; provided that the new Lien has no greater priority relative to the Notes and the Guarantees and the holders
of the Indebtedness secured by such Lien have no greater intercreditor rights relative to the Notes and the Guarantees and the
holders thereof than the original Liens and the related Indebtedness and the holders thereof and such new Liens are subject to
the terms of the Intercreditor Agreement, if applicable;

 

(10)        Liens
securing Hedging Obligations of the Company or any of its Restricted Subsidiaries;

 

(11)        [Reserved];

 

(12)        any
Lien incurred in the ordinary course of business incidental to the conduct of the business of the Company, the Restricted Subsidiaries,
Parent or Intermediate Holdco or the ownership of their property (including (a) easements, rights of way and similar encumbrances,
(b) rights or title of lessors under leases (other than Capital Lease Obligations), (c) rights of collecting banks having rights
of setoff, revocation, refund or chargeback with respect to money or instruments of the Company, the Restricted Subsidiaries, Parent
or Intermediate Holdco on deposit with or in the possession of such banks, (d) Liens imposed by law, including Liens under workers’
compensation or similar legislation and mechanics’, carriers’, warehousemen’s, materialmen’s, suppliers’
and vendors’ Liens, and (e) Liens incurred to secure performance of obligations with respect to statutory or regulatory requirements,
performance or return-of-money bonds, surety bonds or other obligations of a like nature and incurred in a manner consistent with
industry practice;

 

(13)        Liens
for taxes, assessments and governmental charges not yet due or the validity of which are being contested in good faith by appropriate
proceedings, promptly instituted and diligently conducted, and for which adequate reserves have been established to the extent
required by GAAP as in effect at such time;

 

(14)        Liens
to secure Indebtedness of the Company or any Restricted Subsidiary represented by Capital Lease Obligations or purchase money obligations,
in each case, permitted by Section 4.09(b)(4) of this Indenture;

 

(15)        Liens
securing Obligations with respect to Indebtedness (other than Priority Lien Obligations, Parity Lien Obligations or Junior Lien
Obligations) that does not exceed at any time outstanding $35.0 million in aggregate principal amount;

 

    	26

    	 

    

 

(16)        judgment
Liens not giving rise to an Event of Default so long as any appropriate legal proceedings that may have been duly initiated for
the review of such judgment shall not have been finally terminated or the period within which such legal proceedings may be initiated
shall not have expired;

 

(17)        Liens
on Capital Stock of an Unrestricted Subsidiary that secure Indebtedness or other obligations of such Unrestricted Subsidiary;

 

(18)        Liens
to secure a defeasance trust;

 

(19)        Liens
on monies deposited pursuant to the terms of an agreement to acquire assets used in or Persons engaged in the Oil and Gas Business;

 

(20)        Liens
securing insurance premium financing arrangements, provided that any such Lien is limited to the applicable insurance contracts

 

(21)        Liens
securing Indebtedness of the Company or any Subsidiary Guarantor (which may be guaranteed by Parent and Intermediate Holdco) to
the extent such Indebtedness constitutes Parity Lien Debt; provided that after giving effect to such incurrence, the aggregate
principal amount of Parity Lien Debt (together with any Permitted Refinancing Indebtedness incurred to extend, refinance, renew,
replace, defease or refund such Indebtedness) outstanding does not exceed the greater of (a) $1,450,000,000, or (b) an amount such
that at the time of such incurrence the ratio of (x) Modified ACNTA to (y) the aggregate principal amount of Indebtedness that
constitutes Priority Lien Debt and Parity Lien Debt (in each case, with the full amount of Availability under Credit Facilities
being deemed to have been incurred on the date of determination and with letters of credit being deemed to have a principal amount
equal to the maximum potential liability of the Company and its Subsidiaries thereunder) that is then outstanding, determined after
giving effect to such incurrence, is at least 1.75 to 1.0; and

 

(22)        Liens
securing Indebtedness of the Company or any Subsidiary Guarantor (which may be guaranteed by Parent and Intermediate Holdco) to
the extent such Indebtedness constitutes Junior Lien Debt; provided that after giving effect to such incurrence, the ratio
of (x) Modified ACNTA to (y) the aggregate principal amount of Secured Debt, together with any Permitted Refinancing Indebtedness
incurred to extend, refinance, renew, replace, defease or refund such Secured Debt, (with the full amount of Availability under
Credit Facilities being deemed to have been incurred on the date of determination and with letters of credit being deemed to have
a principal amount equal to the maximum potential liability of the Company and its Subsidiaries thereunder) that is then outstanding,
determined after giving effect to such incurrence, is at least 1.1 to 1.0.

 

“Permitted
Parent Business” means:

 

(1)         the
ownership of Capital Stock or Indebtedness of Parent’s existing Subsidiaries as of the Issue Date and any activities directly
related to such ownership, in each case as otherwise permitted by this Indenture;

 

(2)         the
performance of its obligations under and in connection with its Guarantee of the Notes and any existing and future Credit Facilities
and the performance of similar obligations with respect to any Credit Facilities or other items of Indebtedness of future direct
subsidiaries of Parent, in each case otherwise permitted to be incurred under Section 4.09 hereof;

 

    	27

    	 

    

 

(3)         the
undertaking of any actions required by law, regulation or order, including to maintain its existence; and

 

(4)         directly
engaging in the Oil and Gas Business or the ownership of the Capital Stock or Indebtedness of other Persons that are corporations
or limited liability companies or other Persons consisting of limited partnership interests in limited partnerships, in each case,
engaged in the Oil and Gas Business.

 

“Permitted
Payments to Parent Companies” means:

 

(1)         payments
to the Parent or any of its Subsidiaries to permit them to pay their reasonable accounting, legal and administrative expenses when
due, in an aggregate amount not to exceed $3.5 million per annum; and

 

(2)         for
so long as the Company is a member of a group filing a consolidated or combined tax return with Parent or any Subsidiary thereof,
payments to Parent or any Subsidiary thereof in respect of an allocable portion of the tax liabilities of such group that is attributable
to the Company and its Subsidiaries (“Tax Payments”); provided that the Tax Payments do not exceed the
amount of the relevant tax (including any penalties and interest) that the Company would owe if the Company were filing a separate
tax return (or a separate consolidated or combined return with its Subsidiaries that are members of the consolidated or combined
group), taking into account any carryovers and carrybacks of tax attributes (such as net operating losses) of the Company and such
Subsidiaries from other taxable years. Any Tax Payments received from the Company shall be paid over to the appropriate taxing
authority within 30 days of Parent’s receipt of such Tax Payments or refunded to the Company.

 

“Permitted
Refinancing Indebtedness” means any Indebtedness of the Company or any of its Restricted Subsidiaries issued in exchange
for, or the net proceeds of which are used to extend, renew, refund, refinance, replace, defease or discharge other Indebtedness
of the Company or any of its Restricted Subsidiaries (other than intercompany Indebtedness); provided that:

 

(1)         the
principal amount (or accreted value, if applicable) of such Permitted Refinancing Indebtedness does not exceed the principal amount
(or accreted value, if applicable) of the Indebtedness being extended, renewed, refunded, refinanced, replaced, defeased or discharged
(plus all accrued interest on the Indebtedness and the amount of all fees and expenses, including premiums, incurred in connection
therewith);

 

(2)         such
Permitted Refinancing Indebtedness either (a) has a final maturity date that is not earlier than the final maturity date of, and
has a Weighted Average Life to Maturity equal to or greater than the Weighted Average Life to Maturity of, the Indebtedness being
extended, refinanced, renewed, replaced, defeased or refunded, or (b) has a final maturity date that is at least 91 days after
the final maturity of the Notes, and has a Weighted Average Life to Maturity longer than the Weighted Average Life to Maturity
of the Notes;

 

(3)         if
the Indebtedness being extended, renewed, refunded, refinanced, replaced, defeased or discharged is subordinated in right of payment
to the Notes or the Guarantees, such Permitted Refinancing Indebtedness is subordinated in right of payment to, the Notes or the
Guarantees on terms at least as favorable to the Holders as those contained in the documentation governing the Indebtedness being
extended, renewed, refunded, refinanced, replaced, defeased or discharged; and

 

    	28

    	 

    

 

(4)         such
Indebtedness is not incurred by a Restricted Subsidiary of the Company if the Company is the obligor on the Indebtedness being
extended, refinanced, renewed, replaced, defeased or refunded; provided, however, that a Restricted Subsidiary that is also
a Guarantor may guarantee Permitted Refinancing Indebtedness incurred by the Company, whether or not such Restricted Subsidiary
was an obligor or guarantor of the Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded.

 

“Person”
means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization,
limited liability company or government or other entity.

 

“Priority
Lien” means a Lien granted by the Company, Intermediate Holdco or any Guarantor in favor of the Priority Lien Collateral
Agent, at any time, upon any Property of the Company, Intermediate Holdco or any Guarantor to secure Priority Lien Obligations.

 

“Priority
Lien Collateral Agent” means the Credit Agreement Agent (or other Person designated by the Credit Agreement Agent), or
if the Credit Agreement ceases to exist, the collateral agent or other representative of lenders or holders of Priority Lien Obligations
designated pursuant to the terms of the Priority Lien Documents and the Intercreditor Agreement.

 

“Priority
Lien Debt” means:

 

(1)         Indebtedness
of the Company and the Restricted Subsidiaries (and Indebtedness in the form of guarantees by Parent and Intermediate Holdco of
Priority Lien Debt of the Company and the Restricted Subsidiaries) under the Credit Agreement (including letters of credit (with
letters of credit being deemed to have a principal amount equal to the maximum potential liability of the Company and the Restricted
Subsidiaries thereunder) and reimbursement obligations with respect thereto) that was permitted to be incurred and secured under
each applicable Secured Debt Document; and

 

(2)         additional
Indebtedness of the Company and the Subsidiary Guarantors (and Indebtedness in the form of guarantees by Parent and Intermediate
Holdco of Priority Lien Debt of the Company and the Subsidiary Guarantors) under any other Credit Facility that is secured with
the Credit Agreement by a Priority Lien that was permitted to be incurred and so secured under each applicable Secured Debt Document;
provided that, in the case of any Indebtedness referred to in this clause (2), that:

 

(a)          on
or before the date on which such Indebtedness is incurred by the Company and the Subsidiary Guarantors (or the date that Parent
or Intermediate Holdco guarantees Priority Lien Debt of the Company and the Subsidiary Guarantors), such Indebtedness is designated
by the Company, in an Officers’ Certificate delivered to the Priority Lien Collateral Agent and the Collateral Trustee, as
“Priority Lien Debt” for the purposes of the Secured Debt Documents; provided
that if such Series of Secured Debt is designated as “Priority Lien Debt,” it cannot also be designated as Parity Lien
Debt or Junior Lien Debt (or any combination of the three);

 

(b)          the
collateral agent or other representative with respect to such Indebtedness, the Priority Lien Collateral Agent, the Collateral
Trustee, the Company, each applicable Subsidiary Guarantor and, to the extent applicable, Parent and Intermediate Holdco, have
duly executed and delivered the Intercreditor Agreement (or a joinder to the Intercreditor Agreement or a new Intercreditor Agreement
substantially similar to the Intercreditor Agreement, as in effect on the date of this Indenture, and in a form reasonably acceptable
to each of the parties thereto); and

 

(c)          all
other requirements set forth in the Intercreditor Agreement as to the confirmation, grant or perfection of the Priority Lien Collateral
Agent’s Liens to secure such Indebtedness or Obligations in respect thereof are satisfied;

 

    	29

    	 

    

 

provided that all such
Indebtedness (other than any DIP Financing (as defined in the Intercreditor Agreement) that is permitted by the Intercreditor Agreement)
is pari passu in right of payment, it being understood that there may be different tranches of Priority Lien Debt with different
maturities and amortization profiles, but the principal amount of Indebtedness under all such tranches must in all other respects
be pari passu in right of payment. Any such Indebtedness (other than any such DIP Financing) that is not consistent with
the foregoing requirement for pari passu treatment in right of payment with the revolving credit loans under the Priority
Lien Documents shall not constitute Priority Lien Debt.

 

“Priority
Lien Documents” means the Credit Agreement and any other Credit Facility pursuant to which any Priority Lien Debt is
incurred and the documents pursuant to which Priority Lien Obligations are granted.

 

“Priority
Lien Obligations” means the Priority Lien Debt and all other Obligations in respect of Priority Lien Debt, Hedging Obligations
and Banking Services Obligations, in each case, that are secured by the Priority Liens.

 

“Priority
Lien Representative” means (1) the Credit Agreement Agent or (2) in the case of any other Series of Priority Lien Debt,
the trustee, agent or representative of the holders of such Series of Priority Lien Debt who maintains the transfer register for
such Series of Priority Lien Debt and is appointed as a representative of the Priority Lien Debt (for purposes related to the administration
of the Security Documents) pursuant to the credit agreement or other agreement governing such Series of Priority Lien Debt.

 

“Production
Payments” means, collectively, Dollar-Denominated Production Payments and Volumetric Production Payments.

 

“Property”
means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including, without
limitation, cash, securities, accounts and contract rights.

 

“Proved Reserves”
means “Proved Reserves” as defined in the Definitions for Oil and Gas Reserves (the “Reserve Definitions”)
promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

 

“Private Placement
Legend” means the legend set forth in Section 2.06(f)(1) hereof to be placed on all Notes issued under this Indenture
except where otherwise permitted by the provisions of this Indenture.

 

“QIB”
means a “qualified institutional buyer” as defined in Rule 144A.

 

“QIB Global
Note” means a Global Note substantially in the form of Exhibit A hereto bearing the Global Note Legend, the Private Placement
Legend and the OID Legend, if applicable, and deposited with or on behalf of, and registered in the name of, the Depositary or
its nominee that will be issued in a denomination equal to the outstanding principal amount of the Notes sold to QIBs.

 

“Rating Agency”
means each of S&P and Moody’s, or if S&P or Moody’s or both shall not make a rating on the Notes publicly available,
a nationally recognized statistical rating agency or agencies, as the case may be, selected by the Company (as certified by a resolution
of the Board of Directors of the Company) which shall be substituted for S&P or Moody’s, or both, as the case may be.

 

“Required
Parity Lien Debtholders” means, at any time, the holders of a majority in aggregate principal amount of all Parity Lien
Debt then outstanding, calculated in accordance with the provisions of Section 7.2 of the Collateral Trust Agreement. For purposes
of this definition, Parity Lien Debt registered in the name of, or beneficially owned by, the Parent or any Subsidiary of the Parent
will be deemed not to be outstanding.

 

    	30

    	 

    

 

“Reserve Definitions”
has the meaning set forth for such term in the definition of “Proved Reserves” herein.

 

“Reserve Report”
means (a) from the Issue Date until the date upon which the initial reserve report described in clause (b)(i) is completed, the
Initial Reserve Report and (b) thereafter, (i) a reserve report estimating the discounted future net revenue from Proved Reserves
of the Company and the Subsidiary Guarantors, prepared as of the end of the Company’s most recently completed fiscal year,
which reserve report is prepared or reviewed or audited by an independent petroleum engineer as to Proved Reserves accounting for
at least 80% of all discounted future net revenue from all of the Company’s and the Subsidiary Guarantors’ Proved Reserves
and by the Company’s petroleum engineers with respect to any other such Proved Reserves covered by such report and (ii) a
reserve report estimating the discounted future net revenue from Proved Reserves of the Company and the Subsidiary Guarantors prepared
by the Company’s petroleum engineers as of the date that is six months after the end of the Company’s most recently
completed fiscal year, and in each case with such estimates calculated in accordance with SEC guidelines (but utilizing the five-year
(or nearest reasonably available period) strip price for crude oil (WTI Cushing), for natural gas liquids (Mont Belvieu) and natural
gas (Henry Hub), with such price held flat for each subsequent year, quoted on the NYMEX (or its successor) on the “as of”
date of such Reserve Report.

 

“Responsible
Officer,” when used with respect to the Trustee, means any officer within the Corporate Trust Administration of the Trustee
(or any successor group of the Trustee) or any other officer of the Trustee customarily performing functions similar to those performed
by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer
to whom such matter is referred because of his knowledge of and familiarity with the particular subject.

 

“Restricted
Definitive Note” means a Definitive Note bearing the Private Placement Legend.

 

“Restricted
Global Note” means a Global Note bearing the Private Placement Legend.

 

“Restricted
Investment” means an Investment other than a Permitted Investment.

 

“Restricted
Subsidiary” of a Person means any Subsidiary of the referent Person that is not an Unrestricted Subsidiary.

 

“Rule 144”
means Rule 144 promulgated under the Securities Act.

 

“Rule 144A”
means Rule 144A promulgated under the Securities Act.

 

“S&P”
means Standard & Poor’s Rating Services, a division of McGraw-Hill, Inc., or any successor thereof.

 

“SEC”
means the Securities and Exchange Commission.

 

“Secured Debt”
means Priority Lien Debt, Parity Lien Debt and Junior Lien Debt.

 

“Secured Debt
Documents” means the Priority Lien Documents, the Parity Lien Documents and the Junior Lien Documents.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

    	31

    	 

    

 

“Security
Agreement” means the Second Lien Pledge and Security Agreement and Irrevocable Proxy, dated as of the Issue Date, among
the Company, the Subsidiary Guarantors party thereto and the Collateral Trustee, as the same may be amended, supplemented or otherwise
modified or replaced from time to time.

 

“Security
Documents” means the Collateral Trust Agreement, each joinder agreement required by the Collateral Trust Agreement, the
Security Agreement, the Intermediate Holdco Pledge Agreement, the Intermediate Holdco Security Agreement, the Mortgages and all
other security agreements, pledge agreements, collateral assignments, mortgages, deeds of trust, collateral agency agreements,
control agreements or other grants or transfers for security executed and delivered by the Company or any Guarantor creating (or
purporting to create) a Parity Lien upon Collateral in favor of the Collateral Trustee, in each case, as amended, modified, supplemented,
renewed, restated or replaced, in whole or in part, from time to time, in accordance with its terms and Section 7.1 of the Collateral
Trust Agreement.

 

“Second Lien
Secured Party” has the meaning assigned to that term pursuant to the Intercreditor Agreement.

 

“Second Lien
Collateral Trustee” has the meaning assigned to that term pursuant to the Intercreditor Agreement.

 

“Series of
Junior Lien Debt” means, severally, each issue or series of Junior Lien Debt for which a single transfer register is
maintained.

 

“Series of
Parity Lien Debt” means, severally, the Notes and each other issue or series of Parity Lien Debt for which a single transfer
register is maintained.

 

“Series of
Priority Lien Debt” means, severally, the Indebtedness outstanding under the Credit Agreement and any other Credit Facility
that constitutes Priority Lien Debt.

 

“Series of
Secured Debt” means each Series of Priority Lien Debt, each Series of Parity Lien Debt and each Series of Junior Lien
Debt.

 

“Significant
Restricted Subsidiary” is any Restricted Subsidiary that is a Significant Subsidiary.

 

“Significant
Subsidiary” means any Subsidiary that would be a “significant subsidiary” as defined in Article 1, Rule 1-02
of Regulation S-X, promulgated pursuant to the Securities Act, as such Regulation is in effect on the Issue Date.

 

“Stated Maturity”
means, with respect to any installment of interest or principal on any series of Indebtedness, the date on which the payment of
interest or principal was scheduled to be paid in the original documentation governing such Indebtedness, and will not include
any contingent obligations to repay, redeem or repurchase any such interest or principal prior to the date originally scheduled
for the payment thereof.

 

“Subordinated
Indebtedness” means any Indebtedness that is subordinated in right of payment to the Notes or any Guarantee.

 

“Subsidiary”
means, with respect to any specified Person:

 

(1)         any
corporation, association or other business entity (other than a partnership) of which more than 50% of the total voting power of
Voting Stock is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries
of that Person (or a combination thereof); and

 

    	32

    	 

    

 

(2)         any
partnership (a) the sole general partner or the managing general partner of which is such Person or a Subsidiary of such Person
or (b) the only general partners of which are that Person or one or more Subsidiaries of that Person (or any combination thereof),
or (c) as to which such Person and its Subsidiaries are entitled to receive more than 50% of the assets of such partnership upon
its dissolution.

 

“Subsidiary
Guarantor” means each Restricted Subsidiary of the Company that executes this Indenture as an initial Guarantor or that
becomes a Guarantor in accordance with the provisions of this Indenture, and their respective successors and assigns, in each case
until its Guarantee of the Notes is released in accordance with this Indenture.

 

“TIA”
means the Trust Indenture Act of 1939, as amended (15 U.S.C. §§ 77aaa-77bbbb).

 

“Treasury
Rate” means, with respect to the Notes as of any redemption date, the yield to maturity at the time of computation of
United States Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical
Release H.15 (519) that has become publicly available at least two Business Days prior to the redemption date (or, if such Statistical
Release is no longer published, any publicly available source or similar market data)) most nearly equal to the period from the
redemption date to September 15, 2017; provided,  that if the period from the redemption date to September 15, 2017 is not
equal to the constant maturity of a United States Treasury security for which a weekly average yield is given, the Treasury Rate
shall be obtained by linear interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of United
States Treasury securities for which such yields are given, except that if the period from the redemption date to the final maturity
of the Notes is less than one year, the weekly average yield on actually traded United States Treasury securities adjusted to a
constant maturity of one year shall be used. The Company will (a) calculate the Treasury Rate on the second Business Day preceding
the applicable redemption date and (b) prior to such redemption date file with the Trustee an Officer’s Certificate setting
forth the Applicable Premium and the Treasury Rate and showing the calculation of each in reasonable detail.

 

“Trustee”
means U.S. Bank National Association until a successor replaces it in accordance with the applicable provisions of this Indenture
and thereafter means the successor serving hereunder.

 

“Unrestricted
Subsidiary” means any Subsidiary of the Company that is designated by the Board of Directors of the Company as an Unrestricted
Subsidiary pursuant to a resolution of the Board of Directors of the Company, but only to the extent that such Subsidiary:

 

(1)         has
no Indebtedness other than Non-Recourse Debt;

 

(2)         is
not party to any agreement, contract, arrangement or understanding with the Company or any Restricted Subsidiary of the Company
unless the terms of any such agreement, contract, arrangement or understanding are no less favorable to the Company or such Restricted
Subsidiary than those that might be obtained at the time from Persons who are not Affiliates of the Company;

 

(3)         is
a Person with respect to which neither the Company nor any of its Restricted Subsidiaries has any direct or indirect obligation
(a) to subscribe for additional Equity Interests or (b) to maintain or preserve such Person’s financial condition or to cause
such Person to achieve any specified levels of operating results; and

 

    	33

    	 

    

 

(4)         has
not guaranteed or otherwise directly or indirectly provided credit support for any Indebtedness of the Company or any of its Restricted
Subsidiaries.

 

“U.S. Person”
means a U.S. Person as defined in Rule 902(k) promulgated under the Securities Act.

 

“Volumetric
Production Payments” means production payment obligations recorded as deferred revenue in
accordance with GAAP, together with all related undertakings and obligations.

 

“Voting Stock”
of any specified Person as of any date means the Capital Stock of such Person that is at the time entitled (without regard to the
occurrence of any contingency) to vote in the election of the Board of Directors of such Person.

 

“Weighted
Average Life to Maturity” means, when applied to any Indebtedness at any date, the number of years obtained by dividing:

 

(1)         the
sum of the products obtained by multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or
other required payments of principal, including payment at final maturity, in respect of the Indebtedness, by (b) the number of
years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment; by

 

(2)         the
then outstanding principal amount of such Indebtedness.

 

Section
1.02         Other Definitions.

 

	
         
	 	Defined in 
	Term	 	Section
	“Affiliate Transaction”	 	4.11
	“Alternate Offer”	 	4.15
	“Asset Sale Offer”	 	3.09
	“Authentication Order”	 	2.02
	“Change of Control Offer”	 	4.15
	“Change of Control Payment”	 	4.15
	“Change of Control Purchase Date”	 	4.15
	“Covenant Defeasance”	 	8.03
	“Covenant Suspension Period”	 	4.21
	“DTC”	 	2.03
	“Event of Default”	 	6.01
	“Excess Proceeds”	 	4.10
	“incur”	 	4.09
	“Interest Payment Date” 	 	Exhibit A
	“Legal Defeasance”	 	8.02
	“Offer Amount”	 	3.09
	“Offer Period”	 	3.09
	“Paying Agent”	 	2.03
	“Payment Default” 	 	6.01
	“Permitted Debt”	 	4.09
	“Purchase Date”	 	3.09
	“Record Date”	 	Exhibit A
	“Registrar”	 	2.03

 

    	34

    	 

    

 

	
         
	 	Defined in 
	Term	 	Section
	“Reinstatement Date”	 	4.21
	“Restricted Payments”	 	4.07
	“Revolving Credit Facility”	 	1.01
	“Services”	 	4.11
	“Suspended Covenants”	 	4.21
	“Triggering Event”	 	4.20
	“Triggering Event Payment”	 	4.20
	“Triggering Event Purchase Date”	 	4.20
	“Triggering Event Repurchase Offer”	 	4.20
	“Trustee”	 	Preamble
	 	 	 

Section
1.03         [Reserved].

 

Section
1.04         Rules of Construction.

 

Unless the context
otherwise requires:

 

(1)         a
term has the meaning assigned to it;

 

(2)         an
accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP, and references to Statements of Financial
Accounting Standards of the Financial Accounting Standards Board (FASB) do not reflect nomenclature resulting from the FASB’s
codification of such Statements in its Accounting Standards Codification, but are deemed to include the codified Statements under
their current nomenclature;

 

(3)         “or”
is not exclusive;

 

(4)         “including”
means “including without limitation,” whether or not so indicated;

 

(5)         words
in the singular include the plural, and in the plural include the singular;

 

(6)         “will”
shall be interpreted to express a command;

 

(7)         provisions
apply to successive events and transactions; and

 

(8)         references
to sections of or rules under the Securities Act or the Exchange Act will be deemed to include substitute, replacement or successor
sections or rules adopted by the SEC from time to time.

 

ARTICLE
2

THE NOTES

 

Section
2.01         Form and Dating.

 

(a)          General.
The Notes and the Trustee’s certificate of authentication will be substantially in the form of Exhibit A hereto. The Notes
may have other notations, legends or endorsements required by law, stock exchange rule or usage. The OID legend set forth in Section 2.06(f)(3)
shall be placed on all Notes issued under this Indenture that have more than a de minimis amount of original issue discount
for U.S. federal income tax purposes. Each Note will be dated the date of its authentication. The Notes shall be in denominations
of $2,000 and integral multiples of $1,000 in excess thereof.

 

    	35

    	 

    

 

The terms and provisions
contained in the Notes will constitute, and are hereby expressly made, a part of this Indenture and the Company, the Guarantors
and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound
thereby. However, to the extent any provision of any Note conflicts with the express provisions of this Indenture, the provisions
of this Indenture shall govern and be controlling.

 

(b)          Global
Notes. Notes issued in global form will be substantially in the form of Exhibit A hereto (including the Global Note Legend
thereon and the “Schedule of Exchanges of Interests in the Global Note” attached thereto). Notes issued in definitive
form will be substantially in the form of Exhibit A hereto (but without the Global Note Legend thereon and without the “Schedule
of Exchanges of Interests in the Global Note” attached thereto). Each Global Note will represent such aggregate principal
amount of the outstanding Notes as will be specified therein and each shall provide that it represents the aggregate principal
amount of outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of outstanding Notes represented
thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges, repurchases, transfers of interests
and redemptions. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate principal
amount of outstanding Notes represented thereby will be made by the Trustee or the Notes Custodian, at the direction of the Trustee,
in accordance with instructions given by the Holder thereof as required by Section 2.06 hereof. Notes initially offered and sold
to QIBs in the United States in reliance on Rule 144A shall be issued in the form of one or more QIB Global Notes, duly executed
by the Company and the Guarantors and authenticated by the Trustee as hereinafter provided.

 

Section
2.02         Execution and Authentication.

 

At least one Officer
must sign the Notes for the Company by manual or facsimile signature.

 

If an Officer whose
signature is on a Note no longer holds that office at the time a Note is authenticated, the Note will nevertheless be valid.

 

A Note will not be
valid until authenticated by the manual signature of the Trustee. The signature will be conclusive evidence that the Note has been
authenticated under this Indenture.

 

The Trustee will authenticate
and deliver: (i) Initial Notes for original issue in an aggregate principal amount of $1,450,000,000 and (ii) if and when issued,
Additional Notes, in each case upon receipt of a written order of the Company signed by two Officers of the Company (an “Authentication
Order”) and, in the case of Additional Notes, upon receipt of an Officers’ Certificate stating such Additional
Notes are permitted to be incurred under Section 4.09 and are permitted to be secured as Parity Lien Debt under Section 4.12. Such
order shall specify the amount of the Notes to be authenticated and the date on which the original issue of Notes is to be authenticated.
The Company may issue Additional Notes under this Indenture subsequent to the Issue Date, subject to Sections 4.09 and 4.12 of
this Indenture. The aggregate principal amount of Notes outstanding at any time may not exceed the aggregate principal amount of
Notes authorized for issuance by the Company pursuant to one or more Authentication Orders, except as provided in Section 2.07
hereof.

 

The Trustee may appoint
an authenticating agent acceptable to the Company to authenticate Notes. An authenticating agent may authenticate Notes whenever
the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent.

 

    	36

    	 

    

 

Section
2.03         Registrar and Paying Agent.

 

The Company will maintain
an office or agency in the United States where Notes may be presented for registration of transfer or for exchange (the “Registrar”)
and an office or agency where Notes may be presented for payment (the “Paying Agent”) which, if any Definitive
Notes are outstanding, will be in the State of New York. The Registrar will keep a register of the Notes and of their transfer
and exchange. The Company may appoint one or more co-registrars and one or more additional paying agents. The term “Registrar”
includes any co-registrar and the term “Paying Agent” includes any additional paying agent. The Company may change
any Paying Agent or Registrar without notice to any Holder. The Company will notify the Trustee in writing of the name and address
of any Agent not a party to this Indenture. If the Company fails to appoint or maintain another entity as Registrar or Paying Agent,
the Trustee shall act as such. The Company or any of its Domestic Subsidiaries may act as Paying Agent.

 

The Company initially
appoints The Depository Trust Company (“DTC”) to act as Depositary with respect to the Global Notes.

 

The Company initially
appoints the Trustee to act as the Registrar and Paying Agent and to act as Notes Custodian with respect to the Global Notes.

 

Section
2.04         Paying Agent to Hold Money in Trust.

 

The Company will require
each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust for the benefit of Holders
or the Trustee all money held by the Paying Agent for the payment of principal, premium, if any, or interest on the Notes, and
will notify the Trustee of any default by the Company in making any such payment. While any such default continues, the Trustee
may require a Paying Agent to pay all money held by it to the Trustee. The Company at any time may require a Paying Agent to pay
all money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the Company or a Subsidiary)
will have no further liability for the money. If the Company or a Subsidiary acts as Paying Agent, it will segregate and hold in
a separate trust fund for the benefit of the Holders all money held by it as Paying Agent. Upon any bankruptcy or reorganization
proceedings relating to the Company, the Trustee will serve as Paying Agent for the Notes.

 

Section
2.05         Holder Lists.

 

The Trustee will preserve
in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of all Holders
and shall otherwise comply with TIA § 312(a). If the Trustee is not the Registrar, the Company will furnish to the Trustee
at least seven Business Days before each interest payment date and at such other times as the Trustee may request in writing, a
list in such form and as of such date as the Trustee may reasonably require of the names and addresses of the Holders, and the
Company shall otherwise comply with TIA § 312(a).

 

Section
2.06         Transfer and Exchange.

 

(a)          Transfer
and Exchange of Global Notes. A Global Note may not be transferred except as a whole by the Depositary to a nominee of the
Depositary, by a nominee of the Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or any
such nominee to a successor Depositary or a nominee of such successor Depositary. All Global Notes will be exchanged by the Company
for Definitive Notes if:

 

(1)         the
Company delivers to the Trustee notice from the Depositary that it is unwilling or unable to continue to act as Depositary or that
it is no longer a clearing agency registered under the Exchange Act and, in either case, a successor Depositary is not appointed
by the Company within 90 days after the date of such notice from the Depositary;

 

    	37

    	 

    

 

(2)         the
Company in its sole discretion determines that the Global Notes (in whole but not in part) should be exchanged for Definitive Notes
and delivers a written notice to such effect to the Trustee; or

 

(3)         there
has occurred and is continuing a Default or Event of Default with respect to the Notes.

 

Upon the occurrence of either of the preceding
events in (1) or (2) above, Definitive Notes shall be issued in such names as the Depositary shall instruct the Trustee. Global
Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 2.07 and 2.10 hereof. Every Note authenticated
and delivered in exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to this Section 2.06 or Section 2.07
or 2.10 hereof, shall be authenticated and delivered in the form of, and shall be, a Global Note. A Global Note may not be exchanged
for another Note other than as provided in this Section 2.06(a), however, beneficial interests in a Global Note may be transferred
and exchanged as provided in Section 2.06(b) or (c) hereof.

 

(b)          Transfer
and Exchange of Beneficial Interests in the Global Notes. The transfer and exchange of beneficial interests in the Global Notes
will be effected through the Depositary, in accordance with the provisions of this Indenture and the Applicable Procedures. Beneficial
interests in the Restricted Global Notes will be subject to restrictions on transfer comparable to those set forth herein to the
extent required by the Securities Act. Transfers of beneficial interests in the Global Notes also will require compliance with
either subparagraph (1) or (2) below, as applicable, as well as one or more of the other following subparagraphs, as applicable:

 

(1)         Transfer
of Beneficial Interests in the Same Global Note. Beneficial interests in any Restricted Global Note may be transferred to Persons
who take delivery thereof in the form of a beneficial interest in the same Restricted Global Note in accordance with the transfer
restrictions set forth in the Private Placement Legend. No written orders or instructions shall be required to be delivered to
the Registrar to effect the transfers described in this Section 2.06(b)(1).

 

(2)         All
Other Transfers and Exchanges of Beneficial Interests in Global Notes. In connection with all transfers and exchanges of beneficial
interests that are not subject to Section 2.06(b)(1) above, the transferor of such beneficial interest must deliver to the Registrar
either:

 

(A)          both:

 

(1)         a
written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures
directing the Depositary to credit or cause to be credited a beneficial interest in another Global Note in an amount equal to the
beneficial interest to be transferred or exchanged; and

 

(2)         instructions
given in accordance with the Applicable Procedures containing information regarding the Participant account to be credited with
such increase; or

 

(B)         both:

 

    	38

    	 

    

 

(1)         a
written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures
directing the Depositary to cause to be issued a Definitive Note in an amount equal to the beneficial interest to be transferred
or exchanged; and

 

(2)         instructions
given by the Depositary to the Registrar containing information regarding the Person in whose name such Definitive Note shall be
registered to effect the transfer or exchange referred to in (1) above.

 

Upon satisfaction of all of the requirements
for transfer or exchange of beneficial interests in Global Notes contained in this Indenture and the Notes or otherwise applicable
under the Securities Act, the Trustee shall adjust the principal amount of the relevant Global Note(s) pursuant to Section 2.06(h)
hereof.

 

(3)         Transfer
of Beneficial Interests to Another Restricted Global Note. A beneficial interest in any Restricted Global Note may be transferred
to a Person who takes delivery thereof in the form of a beneficial interest in another Restricted Global Note if the transfer complies
with the requirements of Section 2.06(b)(2) above and the Registrar receives a certificate in the form of Exhibit B hereto, including
the certifications in item (1) thereof.

 

(c)          Transfer
or Exchange of Beneficial Interests for Definitive Notes.

 

(1)         Beneficial
Interests in Restricted Global Notes to Restricted Definitive Notes. If in accordance with Section 2.06(a) a beneficial interest
in a Restricted Global Note is to be exchanged for a Restricted Definitive Note or transferred to a Person who takes delivery thereof
in the form of a Restricted Definitive Note, then, upon receipt by the Registrar of the following documentation:

 

(A)         if
the holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a Restricted
Definitive Note, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (1)(a) thereof;

 

(B)         if
such beneficial interest is being transferred to a QIB in accordance with Rule 144A, a certificate to the effect set forth in Exhibit
B hereto, including the certifications in item (1) thereof;

 

(C)         if
such beneficial interest is being transferred pursuant to an exemption from the registration requirements of the Securities Act
in accordance with Rule 144, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2)(a)
thereof;

 

(D)         if
such beneficial interest is being transferred pursuant to an exemption from the registration requirements of the Securities Act
other than Rule 144, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2)(c) thereof,
provided that the Company or the Trustee shall be entitled to require a legal opinion or other certification to confirm
that such transfer is being made pursuant to such an exemption;

 

    	39

    	 

    

 

(E)         if
such beneficial interest is being transferred to the Company or any of its Subsidiaries, a certificate to the effect set forth
in Exhibit B hereto, including the certifications in item (2)(b) thereof;

 

the Trustee shall cause the aggregate principal
amount of the applicable Global Note to be reduced accordingly pursuant to Section 2.06(h) hereof, and the Company shall execute
and the Trustee shall authenticate and deliver to the Person designated in the instructions a Definitive Note in the appropriate
principal amount. Any Definitive Note issued in exchange for a beneficial interest in a Restricted Global Note pursuant to this
Section 2.06(c) shall be registered in such name or names and in such authorized denomination or denominations as the holder of
such beneficial interest shall instruct the Registrar through instructions from the Depositary and the Participant or Indirect
Participant. The Trustee shall deliver such Definitive Notes to the Persons in whose names such Notes are so registered. Any Definitive
Note issued in exchange for a beneficial interest in a Restricted Global Note pursuant to this Section 2.06(c)(1) shall bear the
Private Placement Legend and shall be subject to all restrictions on transfer contained therein.

 

(d)           Transfer
and Exchange of Definitive Notes for Beneficial Interests.

 

(1)         Restricted
Definitive Notes to Beneficial Interests in Restricted Global Notes. If any Holder of a Restricted Definitive Note proposes
to exchange such Note for a beneficial interest in a Restricted Global Note or to transfer such Restricted Definitive Notes to
a Person who takes delivery thereof in the form of a beneficial interest in a Restricted Global Note, then, upon receipt by the
Registrar of the following documentation:

 

(A)         if
the Holder of such Restricted Definitive Note proposes to exchange such Note for a beneficial interest in a Restricted Global Note,
a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(b) thereof;

 

(B)         if
such Restricted Definitive Note is being transferred to a QIB a certificate to the effect set forth in Exhibit B hereto, including
the certifications in item (1) thereof;

 

(C)         if
such Restricted Definitive Note is being transferred pursuant to an exemption from the registration requirements of the Securities
Act in accordance with Rule 144, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item
(2)(a) thereof; or

 

(D)         if
such Restricted Definitive Note is being transferred to the Company or any of its Subsidiaries, a certificate to the effect set
forth in Exhibit B hereto, including the certifications in item (2)(b) thereof;

 

the Trustee will cancel the Restricted
Definitive Note, increase or cause to be increased the aggregate principal amount of, in the case of clause (A) above, the appropriate
Restricted Global Note and, in the case of clause (B) above, the QIB Global Note.

 

(e)          Transfer
and Exchange of Definitive Notes for Definitive Notes. Upon request by a Holder of Definitive Notes and such Holder’s
compliance with the provisions of this Section 2.06(e), the Registrar will register the transfer or exchange of Definitive Notes.
Prior to such registration of transfer or exchange, the requesting Holder must present or surrender to the Registrar the Definitive
Notes duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Registrar duly executed by
such Holder or by its attorney, duly authorized in writing. In addition, the requesting Holder must provide any additional certifications,
documents and information, as applicable, required pursuant to the following provisions of this Section 2.06(e).

 

    	40

    	 

    

 

(1)         Restricted
Definitive Notes to Restricted Definitive Notes. Any Restricted Definitive Note may be transferred to and registered in the
name of Persons who take delivery thereof in the form of a Restricted Definitive Note if the Registrar receives the following:

 

(A)         If
the transfer will be made pursuant to Rule 144A, then the transferor must deliver a certificate in the form of Exhibit B hereto,
including the certifications in item (1) thereof; and

 

(B)         if
the transfer will be made pursuant to any other exemption from the registration requirements of the Securities Act, then the transferor
must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (2)(c) thereof, provided
that the Company or the Trustee shall be entitled to require a legal opinion or other certification to confirm that such transfer
is being made pursuant to such an exemption.

 

(f)          Legends.
The following legends will appear on the face of all Global Notes and Definitive Notes issued under this Indenture unless specifically
stated otherwise in the applicable provisions of this Indenture.

 

(1)         Private
Placement Legend.

 

(A)         Except
as permitted by this Section 2.06, each Global Note and each Definitive Note (and all Notes issued in exchange therefor or substitution
thereof) shall bear the legend in substantially the following form:

 

“THIS NOTE (OR ITS PREDECESSOR)
WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION
OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION
FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF THIS NOTE HEREBY AGREES
ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HOLDS THIS NOTE, FOR THE BENEFIT OF THE ISSUER, THAT (A) THIS
NOTE MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (1)(a) TO A PERSON THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL
BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT, (b) PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF APPLICABLE) OR (c) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE ISSUER IF THE ISSUER SO REQUESTS), OR
(2) TO THE ISSUER AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS NOTE OF THE
RESALE RESTRICTIONS SET FORTH IN CLAUSE (A) ABOVE. NO REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED
BY RULE 144 FOR RESALE OF THIS NOTE.”

 

    	41

    	 

    

 

(2)         Global
Note Legend. Each Global Note will bear a legend in substantially the following form:

 

“THIS GLOBAL NOTE IS HELD
BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS
HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN
PART PURSUANT TO SECTION 2.06 OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT
TO SECTION 2.11 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT
OF ENERGY XXI GULF COAST, INC.

 

UNLESS AND UNTIL IT IS EXCHANGED
IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE
OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY
OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY
AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE
COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.”

 

(3)         OID
Legend. Each Note, including each Global Note and each Definitive Note (and all Notes issued in exchange therefor or substitution
thereof), issued hereunder that has more than a de minimis amount of original issue discount for U.S. federal income tax
purposes will bear a legend in substantially the following form:

 

“THIS NOTE IS ISSUED
WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTION 1271 ET SEQ. OF THE INTERNAL REVENUE CODE. A HOLDER MAY OBTAIN
THE ISSUE PRICE, AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE AND YIELD TO MATURITY FOR SUCH NOTES BY SUBMITTING A WRITTEN
REQUEST FOR SUCH INFORMATION TO THE ISSUERS AT THE FOLLOWING ADDRESS: ENERGY XXI GULF COAST, INC. 1021 MAIN ST., SUITE 2626,
HOUSTON, TEXAS 77002, ATTENTION: CHIEF FINANCIAL OFFICER.”

 

    	42

    	 

    

 

(g)          Cancellation
and/or Adjustment of Global Notes. At such time as all beneficial interests in a particular Global Note have been exchanged
for Definitive Notes or a particular Global Note has been redeemed, repurchased or canceled in whole and not in part, each such
Global Note will be returned to or retained and canceled by the Trustee in accordance with Section 2.11 hereof. At any time prior
to such cancellation, if any beneficial interest in a Global Note is exchanged for or transferred to a Person who will take delivery
thereof in the form of a beneficial interest in another Global Note or for Definitive Notes, the principal amount of Notes represented
by such Global Note will be reduced accordingly and an endorsement will be made on such Global Note by the Registrar or by the
Depositary at the direction of the Registrar to reflect such reduction; and if the beneficial interest is being exchanged for or
transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note, such other
Global Note will be increased accordingly and an endorsement will be made on such Global Note by the Registrar or by the Depositary
at the direction of the Trustee to reflect such increase.

 

(h)          General
Provisions Relating to Transfers and Exchanges.

 

(1)         To
permit registrations of transfers and exchanges, the Company will execute and the Trustee will authenticate Global Notes and Definitive
Notes upon receipt of an Authentication Order in accordance with Section 2.02 hereof or at the Registrar’s request.

 

(2)         No
service charge will be made to a Holder of a beneficial interest in a Global Note or to a Holder of a Definitive Note for any registration
of transfer or exchange, but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental
charge payable in connection therewith (other than any such transfer taxes or similar governmental charge payable upon exchange
or transfer pursuant to Sections 2.10, 3.06, 3.09, 4.10, 4.15, 4.20 and 9.05 hereof).

 

(3)         All
Global Notes and Definitive Notes issued upon any registration of transfer or exchange of Global Notes or Definitive Notes will
be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the
Global Notes or Definitive Notes surrendered upon such registration of transfer or exchange.

 

(4)         Neither
the Registrar nor the Company will be required:

 

(A)         to
issue, to register the transfer of or to exchange any Notes during a period beginning at the opening of business 15 days prior
to the mailing of a notice of redemption;

 

(B)         to
register the transfer of or to exchange any Note selected for redemption in whole or in part, except the unredeemed portion of
any Note being redeemed in part; or

 

(C)         to
register the transfer of or to exchange a Note between a record date and the next succeeding interest payment date.

 

(5)         Prior
to due presentment for the registration of a transfer of any Note, the Trustee, any Agent and the Company may deem and treat the
Person in whose name any Note is registered as the absolute owner of such Note for the purpose of receiving payment of principal
of and interest on such Notes and for all other purposes, and none of the Trustee, any Agent or the Company shall be affected by
notice to the contrary.

 

    	43

    	 

    

 

(6)         The
Trustee will authenticate Global Notes and Definitive Notes in accordance with the provisions of Section 2.02 hereof.

 

(7)         All
certifications, certificates and Opinions of Counsel required to be submitted to the Registrar pursuant to this Section 2.06 to
effect a registration of transfer or exchange may be submitted by facsimile.

 

Section
2.07         Replacement Notes.

 

If any mutilated Note
is surrendered to the Registrar or the Company and the Registrar receives evidence to its satisfaction of the destruction, loss
or theft of any Note, the Company will issue and the Trustee, upon receipt of an Authentication Order, will authenticate a replacement
Note (accompanied by a notation of any Guarantees duly endorsed) if the Registrar’s requirements are met. If required by
the Registrar or the Company, an indemnity bond must be supplied by the Holder that is sufficient in the judgment of the Registrar,
the Trustee and the Company to protect the Company, the Trustee, any Agent and any authenticating agent from any loss that any
of them may suffer if a Note is replaced. The Company may charge for its expenses in replacing a Note.

 

Every replacement Note
is an additional obligation of the Company and will be entitled to all of the benefits of this Indenture equally and proportionately
with all other Notes duly issued hereunder.

 

Section
2.08         Outstanding Notes.

 

The Notes outstanding
at any time are all the Notes authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation,
those reductions in the interest in a Global Note effected by the Trustee in accordance with the provisions hereof, and those described
in this Section 2.08 as not outstanding. Except as set forth in Section 2.09 hereof, a Note does not cease to be outstanding because
the Company or an Affiliate of the Company holds the Note; however, Notes held by the Company or a Subsidiary of the Company shall
not be deemed to be outstanding for purposes of Section 3.07(b) hereof.

 

If a Note is replaced
pursuant to Section 2.07 hereof, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced
Note is held by a protected purchaser.

 

If the principal amount
of any Note is considered paid under Section 4.01 hereof, it ceases to be outstanding and interest on it ceases to accrue.

 

If the Paying Agent
(other than the Company, a Subsidiary or an Affiliate of any thereof) holds, on a redemption date or maturity date, money sufficient
to pay Notes payable on that date, then on and after that date such Notes will be deemed to be no longer outstanding and will cease
to accrue interest.

 

Section
2.09         Treasury Notes.

 

In determining whether
the Holders of the required principal amount of Notes have concurred in any direction, waiver or consent, Notes owned by the Company
or any Guarantor, or by any Person directly or indirectly controlling or controlled by or under direct or indirect common control
with the Company or any Guarantor, will be considered as though not outstanding, except that for the purposes of determining whether
the Trustee will be protected in relying on any such direction, waiver or consent, only Notes that a Responsible Officer knows
are so owned will be so disregarded.

 

    	44

    	 

    

 

Section
2.10         Temporary Notes.

 

Until definitive Notes
are ready for delivery, the Company may prepare and the Trustee, upon receipt of an Authentication Order, will authenticate temporary
Notes. Temporary Notes will be substantially in the form of certificated Notes but may have variations that the Company considers
appropriate for temporary Notes and as may be reasonably acceptable to the Trustee. Without unreasonable delay, the Company will
prepare and the Trustee will authenticate definitive Notes in exchange for temporary Notes.

 

Holders of temporary
Notes will be entitled to all of the benefits of this Indenture.

 

Section
2.11         Cancellation.

 

The Company at any
time may deliver Notes to the Trustee for cancellation. The Registrar and Paying Agent will forward to the Trustee any Notes surrendered
to them for registration of transfer, exchange or payment. The Trustee and no one else will cancel all Notes surrendered for registration
of transfer, exchange, payment, replacement or cancellation and will dispose of the canceled Notes in accordance with its normal
procedures (subject to the record retention requirement of the Exchange Act). Certification of the disposition of all canceled
Notes will be delivered to the Company upon written request. The Company may not issue new Notes to replace Notes that it has paid
or that have been delivered to the Trustee for cancellation.

 

Section
2.12         Defaulted Interest.

 

The Company will pay
interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium at the
rate equal to the then applicable interest rate on the Notes to the extent lawful; it will pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace
period) at the same rate to the extent lawful, to the Persons who are Holders on a subsequent special record date. The Company
will notify the Trustee in writing of the amount of defaulted interest proposed to be paid on each Note and the date of the proposed
payment. The Company will fix or cause to be fixed (or upon the Company’s failure to do so, the Trustee shall fix pursuant
to a written instruction of Holders of at least a majority in principal amount of outstanding Notes) each such special record date
and payment date; provided that no such special record date may be less than 10 days prior to the related payment date for
such defaulted interest. At least 15 days before the special record date, the Company (or, upon the written request of the Company,
the Trustee in the name and at the expense of the Company) will mail or cause to be mailed to Holders a notice that states the
special record date, the related payment date and the amount of such interest to be paid.

 

ARTICLE
3

REDEMPTION AND PREPAYMENT

 

Section
3.01         Notices to Trustee.

 

If the Company elects
to redeem Notes pursuant to the optional redemption provisions of Section 3.07 hereof, it must furnish to the Trustee, at least
30 days but not more than 60 days before a redemption date, an Officers’ Certificate setting forth:

 

    	45

    	 

    

 

(1)         the
clause of this Indenture pursuant to which the redemption shall occur;

 

(2)         the
redemption date;

 

(3)         the
principal amount of Notes to be redeemed; and

 

(4)         the
redemption price.

 

Section
3.02         Selection of Notes to Be Redeemed or Purchased.

 

If less than all of
the Notes are to be redeemed or purchased in an offer to purchase at any time, the Trustee will select Notes for redemption or
purchase on a pro rata basis unless otherwise required by law or applicable stock exchange requirements (or in the case
of Global Notes, on as nearly a pro rata basis as is practicable, subject to the procedures of the Depositary).

 

In the event of partial
redemption or purchase by lot, the particular Notes to be redeemed or purchased will be selected, unless otherwise provided herein,
not less than 30 nor more than 60 days prior to the redemption or purchase date by the Trustee from the outstanding Notes not previously
called for redemption or purchase.

 

The Trustee will promptly
notify the Company in writing of the Notes selected for redemption or purchase and, in the case of any Note selected for partial
redemption or purchase, the principal amount thereof to be redeemed or purchased. Notes and portions of Notes selected will be
in amounts of $2,000 or whole multiples of $1,000 in excess of $2,000; except that if all of the Notes of a Holder are to be redeemed
or purchased, the entire outstanding amount of Notes held by such Holder, even if not a multiple of $1,000 in excess of $2,000,
shall be redeemed or purchased. Except as provided in the preceding sentence, provisions of this Indenture that apply to Notes
called for redemption or purchase also apply to portions of Notes called for redemption or purchase.

 

Section
3.03         Notice of Redemption.

 

Subject to the provisions
of Section 3.09 hereof, at least 30 days but not more than 60 days before a redemption date, the Company will mail or cause to
be mailed, by first class mail, a notice of redemption to each Holder whose Notes are to be redeemed at its registered address,
except that redemption notices may be mailed more than 60 days prior to a redemption date if the notice is issued in connection
with a defeasance of the Notes or a satisfaction and discharge of this Indenture pursuant to Articles 8 or 10 hereof. Notices of
redemption may be conditional.

 

The notice will identify
the Notes to be redeemed and will state:

 

(1)         the
redemption date;

 

(2)         the
redemption price;

 

(3)         if
any Note is being redeemed in part, the portion of the principal amount of such Note to be redeemed and that, after the redemption
date upon surrender of such Note, a new Note or Notes in principal amount equal to the unredeemed portion will be issued in the
name of the Holder upon cancellation of the original Note;

 

(4)         the
name and address of the Paying Agent;

 

    	46

    	 

    

 

(5)         that
Notes called for redemption must be surrendered to the Paying Agent to collect the redemption price;

 

(6)         that,
unless the Company defaults in making such redemption payment or any condition to the redemption set forth in the notice therefor
shall not have been satisfied, interest on Notes called for redemption ceases to accrue on and after the redemption date;

 

(7)         the
paragraph of the Notes and/or Section of this Indenture pursuant to which the Notes called for redemption are being redeemed;

 

(8)         that
no representation is made as to the correctness or accuracy of the CUSIP or ISIN number, if any, listed in such notice or printed
on the Notes; and

 

(9)         a
description of any conditions to the Company’s obligation to complete the redemption.

 

If any of the Notes
to be redeemed is in the form of a Global Note, then the Company shall modify such notice to the extent necessary to accord with
the procedures of the Depositary applicable to redemption.

 

At the Company’s
request, the Trustee will give the notice of redemption in the Company’s name and at its expense; provided, however,
that the Company has delivered to the Trustee, at least 45 days prior to the redemption date, an Officers’ Certificate requesting
that the Trustee give such notice and setting forth the information (or a shorter period as agreed to by the Trustee) to be stated
in such notice as provided in this Section 3.03 above.

 

Section
3.04         Effect of Notice of Redemption.

 

Once notice of redemption
is mailed in accordance with Section 3.03 hereof, Notes (or portions thereof) called for redemption become irrevocably due and
payable on the applicable redemption date at the applicable redemption price unless any condition to the redemption set forth in
the notice therefor shall not have been satisfied.

 

Section
3.05         Deposit of Redemption Price.

 

No later than 10:00
Eastern Time on the redemption date, the Company will deposit with the Paying Agent (or, if the Company or its Domestic Subsidiary
is the Paying Agent, will segregate and hold in trust) money sufficient to pay the redemption price of and accrued interest on
all Notes to be redeemed on that date. The Paying Agent will promptly return to the Company any money deposited with the Paying
Agent by the Company in excess of the amounts necessary to pay the redemption price of, and accrued interest on, all Notes to be
redeemed.

 

If the Company complies
with the provisions of the preceding paragraph, on and after the redemption date, interest will cease to accrue on the Notes or
the portions of Notes called for redemption. If a Note is redeemed on or after an interest record date but on or prior to the related
interest payment date, then any accrued and unpaid interest shall be paid to the Person in whose name such Note was registered
at the close of business on such record date. If any Note called for redemption is not so paid upon surrender for redemption because
of the failure of the Company to comply with the preceding paragraph, interest shall be paid on the unpaid principal, from the
redemption date until such principal is paid, and to the extent lawful on any interest not paid on such unpaid principal, in each
case at the rate provided in the Notes and in Section 2.12 hereof.

 

    	47

    	 

    

 

Section
3.06         Notes Redeemed in Part.

 

Upon surrender of a
Note that is redeemed in part, the Company will issue and, upon receipt of an Authentication Order, the Trustee will authenticate
for the Holder at the expense of the Company a new Note equal in principal amount to the unredeemed portion of the Note surrendered.

 

Section
3.07         Optional Redemption.

 

(a)          Beginning
on September 15, 2017, the Company may redeem all or a portion of the Notes, at once or over time, after giving the notice required
pursuant to Section 3.03 hereof, at the redemption prices (expressed as percentages of principal amount) set forth below, plus
accrued and unpaid interest on the Notes redeemed, to the applicable redemption date (subject to the right of Holders of record
on the relevant Record Date to receive interest due on an Interest Payment Date that is on or prior to the redemption date), if
redeemed during the periods set forth below:

 

	 
Period
	 	Percentage	 
	September 15, 2017 through March 14, 2018	 	 	108.250	%
	March 15, 2018 through November 14, 2018	 	 	105.500	%
	November 15, 2018 through July 14, 2019	 	 	102.750	 
	July 15, 2019 and thereafter.	 	 	100.000	%

 

(b)          At
any time and from time to time prior to September 15, 2017, the Company may on any one or more occasions redeem up to 35% of the
aggregate principal amount of the Notes issued under this Indenture at a redemption price (expressed as a percentage of principal
amount) equal to 111.000% of the principal amount thereof, plus accrued and unpaid interest,
if any, on the Notes to the redemption date (subject to the right of Holders of record on the relevant Record Date to receive interest
due on an Interest Payment Date that is on or prior to the redemption date) in the amount not greater than the net cash proceeds
of one or more Equity Offerings by the Company, provided, however, that (i) at least 65% of the aggregate principal
amount of the Notes (including Additional Notes issued under this Indenture) remains outstanding immediately after giving effect
to such redemption; and (ii) any such redemption shall be made within 180 days of the date of closing of such Equity Offering.

 

(c)          At
any time prior to September 15, 2017, the Company may at its option redeem the Notes in whole or in part, at once or over time,
after giving the notice required pursuant to Section 3.03 hereof, at a redemption price equal to 100% of the principal amount of
the Notes redeemed plus the Applicable Premium as of, and accrued and unpaid interest, if any, to the date of redemption (subject
to the right of Holders of record on the relevant Record Date to receive interest due on an Interest Payment Date that is on or
prior to the redemption date).

 

(d)          Any
redemption pursuant to this Section 3.07 or Section 4.15 shall be made pursuant to the provisions of Sections 3.01 through 3.06
hereof.

 

Section
3.08         Mandatory Redemption.

 

The Company is not
required to make mandatory redemption or sinking fund payments with respect to the Notes.

 

    	48

    	 

    

 

Section
3.09         Offer to Purchase by Application of Excess Proceeds.

 

In the event that,
pursuant to Section 4.10 hereof, the Company shall be required to commence an offer to all Holders to purchase Notes (an “Asset
Sale Offer”), it will follow the procedures specified below and in Sections 4.10(c), (d), (e) and (f):

 

(a)          The
Asset Sale Offer shall be made to all Holders, and (i) with respect to Excess Proceeds from any Asset Sale that is a Collateral
Disposition, all holders of other Parity Lien Obligations, or (ii) with respect to other Excess Proceeds, all holders of other
Indebtedness that is pari passu with the Notes, in each case containing provisions similar to those set forth in this Indenture
with respect to offers to purchase or redeem with the proceeds of sales of assets.

 

(b)          The
Asset Sale Offer will remain open for a period of at least 20 Business Days following its commencement and not more than 30 Business
Days, except to the extent that a longer period is required by applicable law (the “Offer Period”).

 

(c)          No
later than three Business Days after the termination of the Offer Period (the “Purchase Date”), the Company
will apply all Excess Proceeds (the “Offer Amount”) to the purchase of Notes and such other Parity Lien Obligations
or pari passu Indebtedness, as applicable (on a pro rata basis, if applicable) or, if less than the Offer Amount
has been tendered, all Notes and other applicable Indebtedness tendered in response to the Asset Sale Offer. Payment for any Notes
so purchased will be made in the same manner as interest payments are made.

 

(d)          If
the Purchase Date is on or after an interest Record Date and on or before the related Interest Payment Date, any accrued and unpaid
interest will be paid to the Person in whose name a Note is registered at the close of business on such Record Date.

 

(e)          Upon
the commencement of an Asset Sale Offer, the Company will send, by first class mail, a notice to each of the Holders, with a copy
to the Trustee. The notice will contain all instructions and materials necessary to enable such Holders to tender Notes pursuant
to the Asset Sale Offer. The notice, which will govern the terms of the Asset Sale Offer, will state:

 

(1)         that
the Asset Sale Offer is being made pursuant to this Section 3.09 and Section 4.10 hereof and the length of time the Asset Sale
Offer will remain open;

 

(2)         the
Offer Amount, the purchase price and the Purchase Date;

 

(3)         that
any Note not tendered or accepted for payment will continue to accrue interest;

 

(4)         that,
unless the Company defaults in making such payment, any Note accepted for payment pursuant to the Asset Sale Offer will cease to
accrue interest after the Purchase Date;

 

(5)         that
Holders electing to have a Note purchased pursuant to an Asset Sale Offer may elect to have Notes purchased in denominations of
$2,000 or integral multiples of $1,000 in excess thereof only;

 

(6)         that
Holders electing to have Notes purchased pursuant to any Asset Sale Offer will be required to surrender the Note, with the form
entitled “Option of Holder to Elect Purchase” attached to the Notes completed, or transfer by book-entry transfer,
to the Company, a Depositary, if appointed by the Company, or a Paying Agent at the address specified in the notice at least three
days before the Purchase Date;

 

    	49

    	 

    

 

(7)         that
Holders will be entitled to withdraw their election if the Company, the Depositary or the Paying Agent, as the case may be, receives,
not later than the expiration of the Offer Period, a telegram, telex, facsimile transmission or letter setting forth the name of
the Holder, the principal amount of the Note the Holder delivered for purchase and a statement that such Holder is withdrawing
his election to have such Note purchased;

 

(8)         that,
if the aggregate principal amount of Notes and other pari passu Indebtedness surrendered by holders thereof exceeds the
Offer Amount, the Company will select the Notes and other pari passu Indebtedness to be purchased on a pro rata basis
based on the principal amount of Notes and such other pari passu Indebtedness surrendered (with such adjustments as may
be deemed appropriate by the Company so that only Notes in denominations of $2,000, or integral multiples of $1,000 in excess thereof,
will be purchased); and

 

(9)         that
Holders whose Notes were purchased only in part will be issued new Notes equal in principal amount to the unpurchased portion of
the Notes surrendered (or transferred by book-entry transfer).

 

If any of the Notes
to be redeemed pursuant to an Asset Sale Offer is in the form of a Global Note, then the Company shall modify such notice to the
extent necessary to accord with the procedures of the Depositary applicable to redemption.

 

On or before the Purchase
Date, the Company will, to the extent lawful, accept for payment, on a pro rata basis to the extent necessary, the Offer
Amount of Notes or portions thereof tendered pursuant to the Asset Sale Offer, or if less than the Offer Amount has been tendered,
all Notes tendered, and will deliver or cause to be delivered to the Trustee the Notes properly accepted together with an Officers’
Certificate stating that such Notes or portions thereof were accepted for payment by the Company in accordance with the terms of
this Section 3.09 and Section 4.10. The Company, the Depositary or the Paying Agent, as the case may be, will promptly (but in
any case not later than five days after the Purchase Date) mail or deliver to each tendering Holder an amount equal to the purchase
price of the Notes tendered by such Holder and accepted by the Company for purchase, and the Company will promptly issue a new
Note, and the Trustee, upon written request from the Company, will authenticate and mail or deliver (or cause to be transferred
by book entry) such new Note to such Holder, in a principal amount equal to any unpurchased portion of the Note surrendered. Any
Note not so accepted shall be promptly mailed or delivered by the Company to the Holder thereof. The Company will publicly announce
the results of the Asset Sale Offer on the Purchase Date.

 

Other than as specifically
provided in this Section 3.09, any purchase pursuant to this Section 3.09 shall be made pursuant to the provisions of Sections
3.01 through 3.06 hereof.

 

The Company will comply
with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent
those laws and regulations are applicable in connection with each repurchase of Notes pursuant to an Asset Sale Offer. To the extent
that the provisions of any securities laws or regulations conflict with the Asset Sale provisions of this Indenture, the Company
will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under Section 4.10
of this Indenture by virtue of such conflict.

 

    	50

    	 

    

 

ARTICLE
4

COVENANTS

 

Section
4.01         Payment of Notes.

 

The Company will pay
or cause to be paid the principal of, premium, if any, and interest on, the Notes on the dates and in the manner provided in this
Indenture and the Notes. Principal, premium, if any, and interest will be considered paid on the date due if the Paying Agent,
if other than the Company or a Subsidiary thereof, holds as of 10:00 a.m. Eastern Time on the due date money deposited by the Company
in immediately available funds and designated for and sufficient to pay all principal, premium, if any, and interest then due.

 

Section
4.02         Maintenance of Office or Agency.

 

The Company will maintain
an office or agency (which may be an office of the Trustee or an affiliate of the Trustee, Registrar or co-registrar) where Notes
may be surrendered for registration of transfer or for exchange and where notices and demands to or upon the Company in respect
of the Notes and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and
any change in the location, of such office or agency. If at any time the Company fails to maintain any such required office or
agency or fails to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made
or served at the Corporate Trust Office of the Trustee.

 

The Company may also
from time to time designate one or more other offices or agencies where the Notes may be presented or surrendered for any or all
such purposes and may from time to time rescind such designations. The Company will give prompt written notice to the Trustee of
any such designation or rescission and of any change in the location of any such other office or agency.

 

The Company hereby
designates the Corporate Trust Office of the Trustee as one such office or agency of the Company in accordance with Section 2.03
hereof.

 

Section
4.03         Reports.

 

(a)          Whether
or not required by the Commission, so long as any Notes are outstanding, the Parent will file with the Commission for public availability
within the time periods specified in the Commission’s rules and regulations (unless the Commission will not accept such a
filing), and the Parent will furnish to the Trustee and, upon its request, to any of the Holders, within five Business Days of
filing, or attempting to file, the same with the Commission:

 

(1)         all
quarterly and annual financial and other information with respect to the Parent and its Subsidiaries that would be required to
be contained in a filing with the Commission on Forms 10-Q and 10-K if the Parent were required to file such Forms, including a
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and, with respect to
the annual information only, a report on the annual financial statements by the Parent’s certified independent accountants;

 

(2)         all
current reports that would be required to be filed with the Commission on Form 8-K if the Parent were required to file such reports;
and

 

(3)         unaudited
quarterly and audited annual financial statements of the Company and its Subsidiaries.

 

    	51

    	 

    

 

(b)          If
the Company has designated any of its Subsidiaries as Unrestricted Subsidiaries, then the quarterly and annual financial information
required by paragraph (a) of this Section 4.03 will include a reasonably detailed presentation, either on the face of the financial
statements or in the footnotes thereto, and in Management’s Discussion and Analysis of Financial Condition and Results of
Operations, of the financial condition and results of operations of the Company and its Restricted Subsidiaries separate from the
financial condition and results of operations of the Unrestricted Subsidiaries of the Company.

 

(c)          In
addition, the Parent, the Company and the Guarantors agree that, for so long as any Notes remain outstanding, they will furnish
to the Holders of Notes and to securities analysts and prospective investors in the Notes, upon their request, the information
required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act.

 

(d)          The
availability of the materials specified in items (a) through (c) above on the Commission’s website shall be deemed to satisfy
the foregoing delivery obligations.

 

(e)          Delivery
of reports, information and documents to the Trustee under this Section 4.03 is for informational purposes only, and the Trustee’s
receipt of the foregoing shall not constitute constructive notice of any information contained therein or determinable from information
contained therein.

 

Section
4.04         Compliance Certificate.

 

(a)          The
Company shall deliver to the Trustee, within 90 days after the end of each fiscal year, an Officers’ Certificate stating
that a review of the activities of the Company and its Subsidiaries during the preceding fiscal year has been made under the supervision
of the signing Officers with a view to determining whether the Company has kept, observed, performed and fulfilled its obligations
under this Indenture, and further stating, as to each such Officer signing such certificate, that to the best of his or her knowledge
the Company has kept, observed, performed and fulfilled each and every covenant contained in this Indenture and is not in default
in the performance or observance of any of the terms, provisions and conditions of this Indenture (or, if a Default or Event of
Default has occurred, describing all such Defaults or Events of Default of which he or she may have knowledge and what action the
Company is taking or proposes to take with respect thereto) and that to the best of his or her knowledge no event has occurred
and remains in existence by reason of which payments on account of the principal of or interest, if any, on the Notes is prohibited
or if such event has occurred, a description of the event and what action the Company is taking or proposes to take with respect
thereto.

 

(b)          So
long as any of the Notes are outstanding, the Company will deliver to the Trustee, forthwith upon any Officer becoming aware of
any Default or Event of Default, an Officers’ Certificate specifying such Default or Event of Default and what action the
Company is taking or proposes to take with respect thereto.

 

Section
4.05         Taxes.

 

The Company will pay,
and will cause each of its Subsidiaries to pay, prior to delinquency, all material taxes, assessments, and governmental levies
except such as are contested in good faith and by appropriate proceedings or where the failure to effect such payment is not adverse
in any material respect to the Holders of the Notes.

 

    	52

    	 

    

 

Section
4.06         Stay, Extension and Usury Laws.

 

The Company and each
of the Guarantors covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this Indenture; and the Company and each of the Guarantors
(to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that
it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but will
suffer and permit the execution of every such power as though no such law has been enacted.

 

Section
4.07         Restricted Payments.

 

(a)          The
Company shall not, and shall not permit any of its Restricted Subsidiaries to, directly or indirectly:

 

(1)         declare
or pay any dividend or make any other payment or distribution on account of the Company’s or any of its Restricted Subsidiaries’
Equity Interests (including, without limitation, any payment in connection with any merger or consolidation involving the Company
or any of its Restricted Subsidiaries) or to the direct or indirect holders of the Company’s or any of its Restricted Subsidiaries’
Equity Interests in their capacity as such (other than dividends or distributions payable in Equity Interests (other than Disqualified
Stock) of the Company or payable to the Company or a Restricted Subsidiary of the Company);

 

(2)         purchase,
redeem or otherwise acquire or retire for value (including, without limitation, in connection with any merger or consolidation
involving the Company) any Equity Interests of the Company or any direct or indirect parent of the Company;

 

(3)         make
any payment on or with respect to, or purchase, redeem, defease or otherwise acquire or retire for value (i) any Subordinated Indebtedness
of the Company or any Subsidiary Guarantor except a payment of interest or principal at the Stated Maturity thereof, or (ii) the
Existing Unsecured Notes, except a payment of interest or principal at the Stated Maturity thereof; or

 

(4)         make
any Restricted Investment (all such payments and other actions set forth in these clauses (1) through (4) above being collectively
referred to as “Restricted Payments”),

 

unless, at the time
of and after giving effect to such Restricted Payment:

 

(1)         no
Default or Event of Default has occurred and is continuing or would occur as a consequence of such Restricted Payment;

 

(2)         the
Company would, at the time of such Restricted Payment and after giving pro forma effect thereto as if such Restricted Payment had
been made at the beginning of the applicable four-quarter period, have been permitted to incur at least $1.00 of additional Indebtedness
pursuant to the Fixed Charge Coverage Ratio test set forth in Section 4.09(a) hereof; and

 

(3)         such
Restricted Payment, together with the aggregate amount of all other Restricted Payments made by the Company and its Restricted
Subsidiaries after the Issue Date (excluding Restricted Payments permitted by clauses (2), (3), (4), (6), (7), (8), (9), (10),
(12) and (13) of paragraph (b) of this Section 4.07), is less than the sum, without duplication, of:

 

    	53

    	 

    

 

(A)         50%
of the Consolidated Net Income of the Company for the period (taken as one accounting period) from January 1, 2015 to the end of
the Company’s most recently ended fiscal quarter for which internal financial statements are available at the time of such
Restricted Payment (or, if such Consolidated Net Income for such period is a deficit, less 100% of such deficit), plus

 

(B)         100%
of the aggregate net cash proceeds received by the Company (and the Fair Market Value of any Additional Assets to the extent acquired
in consideration of Equity Interests of the Company (other than Disqualified Stock)) after January 1, 2015 as a contribution to
its common equity capital or from the issue or sale of Equity Interests of the Company (other than Disqualified Stock) or from
the issue or sale of convertible or exchangeable Disqualified Stock or convertible or exchangeable debt securities of the Company
that have been converted into or exchanged for such Equity Interests (other than Equity Interests (or Disqualified Stock or debt
securities) sold to a Subsidiary of the Company), plus

 

(C)         to
the extent that any Restricted Investment that was made after January 1, 2015 is sold for cash or otherwise liquidated or repaid
for cash, the lesser of (i) the cash return of capital with respect to such Restricted Investment (less the cost of disposition,
if any) and (ii) the initial amount of such Restricted Investment, plus

 

(D)         to
the extent that any Unrestricted Subsidiary of the Company designated as such after January 1, 2015 is redesignated as a Restricted
Subsidiary after January 1, 2015, the lesser of (i) the Fair Market Value of the Company’s Investment in such Subsidiary
as of the date of such redesignation or (ii) such Fair Market Value as of the date on which such Subsidiary was originally designated
as an Unrestricted Subsidiary.

 

(b)          So
long as no Default or Event of Default has occurred and is continuing or would be caused thereby, the preceding provisions will
not prohibit:

 

(1)         the
payment of any dividend within 60 days after the date of declaration of the dividend, if at the date of declaration, the dividend
payment would have complied with the provisions of this Indenture;

 

(2)         the
redemption, repurchase, retirement, defeasance or other acquisition of any Subordinated Indebtedness of the Company or any Subsidiary
Guarantor or Existing Unsecured Notes or of any Equity Interests of the Company in exchange for, or out of the net cash proceeds
of the substantially concurrent sale (other than to a Subsidiary of the Company) of, Equity Interests of the Company (other than
Disqualified Stock); provided that the amount of any such net cash proceeds that are utilized for any such Restricted Payment
will be excluded from clause (3)(B) of the preceding paragraph;

 

(3)         the
defeasance, redemption, repurchase, retirement or other acquisition of Subordinated Indebtedness of the Company or any Subsidiary
Guarantor or Existing Unsecured Notes with the net cash proceeds from a substantially concurrent incurrence of, or in exchange
for, Permitted Refinancing Indebtedness;

 

    	54

    	 

    

 

(4)         the
payment of any dividend by a wholly-owned Restricted Subsidiary of the Company to the Company or a Restricted Subsidiary;

 

(5)         the
repurchase, redemption or other acquisition or retirement for value of any Equity Interests of the Company or any Restricted Subsidiary
of the Company held by any current or former director or employee of the Company or any of its Restricted Subsidiaries pursuant
to any director or employee equity subscription agreement or plan, stock option agreement or similar agreement or plan; provided
that the aggregate price paid for all such repurchased, redeemed, acquired or retired Equity Interests may not exceed $4.0 million
in any twelve-month period;

 

(6)         the
acquisition of Equity Interests by the Company in connection with the exercise of stock options or stock appreciation rights by
way of cashless exercise;

 

(7)         so
long as no Default has occurred and is continuing, upon the occurrence of a Change of Control or an Asset Sale and within 60 days
after the completion of the offer to repurchase the Notes pursuant to Section 4.15 or Section 4.10 (including the purchase of all
Notes tendered), any purchase, repurchase, redemption, defeasance, acquisition or other retirement for value of Subordinated Indebtedness
or Existing Unsecured Notes required under the terms thereof as a result of such Change of Control or Asset Sale at a purchase
or redemption price not to exceed 101% of the outstanding principal amount thereof, plus accrued and unpaid interest thereon, if
any, provided that, in the notice to Holders relating to a Change of Control or Asset Sale hereunder, the Company shall describe
this clause (7);

 

(8)         the
payment of cash in lieu of fractional shares of Capital Stock in connection with any transaction otherwise permitted under this
Indenture;

 

(9)         Permitted
Payments to Parent Companies;

 

(10)        other
Restricted Payments in an aggregate amount since the Issue Date not to exceed $50.0 million;

 

(11)        the
payment of dividends on the Company’s common equity (or the payment of dividends or distributions to a direct or indirect
parent company of the Company to fund the payment by such parent company of dividends or distributions on its common equity) of
up to 6.0% per calendar year of the net proceeds received by the Company from any public Equity Offering or contributed to the
Company by a direct or indirect parent company of the Company from any public Equity Offering; provided that the amount
of any such net cash proceeds that are utilized for any such Restricted Payment will be excluded from clause (3)(B) of Section
4.07(a);

 

(12)        the
declaration and payment of dividends to holders of any class or series of preferred stock or Disqualified Stock of the Company
or any of its Restricted Subsidiaries issued in accordance with Section 4.09 to the extent such dividends are included in the calculation
of Fixed Charges; and

 

(13)        
repurchases, redemptions or other payments with respect to Existing Unsecured Notes (a) in an aggregate amount paid under this
clause (a) since the Issue Date not to exceed $290.0 million, or (b) without regard to such limitation if (i) for 90 consecutive
days ending not more than 15 days prior to the payment in question, the average of the ICE Brent Closing Prices is at least $80.00
per barrel, and (ii) after giving effect to such payment, the Company and its Restricted Subsidiaries would have cash, Cash Equivalents
and undrawn Availability under Credit Facilities totaling at least $500.0 million.

 

    	55

    	 

    

 

(c)          The
amount of all Restricted Payments (other than cash) will be the Fair Market Value on the date of the Restricted Payment of the
asset(s) or securities proposed to be transferred or issued by the Company or such Restricted Subsidiary, as the case may be, pursuant
to the Restricted Payment. The Fair Market Value of any assets or securities that are required to be valued by this covenant will
be determined by the Board of Directors of the Company, whose determination shall be evidenced by a resolution of the Board of
Directors of the Company. Such Board of Directors’ determination must be based upon an opinion or appraisal issued by an
accounting, appraisal or investment banking firm of national standing if the Fair Market Value exceeds $20.0 million. For purposes
of determining compliance with this Section 4.07, in the event that a Restricted Payment meets the criteria of more than one of
the categories of Restricted Payments described in the preceding clauses (1) through (13), the Company will be permitted to classify
(or later classify or reclassify in whole or in part in its sole discretion) such Restricted Payment in any manner that complies
with this covenant.

 

Section
4.08         Dividend and Other Payment Restrictions Affecting Subsidiaries.

 

The Company will not,
and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create or permit to exist or become effective
any consensual encumbrance or restriction on the ability of any Restricted Subsidiary to:

 

(1)         pay
dividends or make any other distributions on its Capital Stock to the Company or any of its Restricted Subsidiaries, or pay any
Indebtedness or other obligations owed to the Company or any of its Restricted Subsidiaries;

 

(2)         make
loans or advances to the Company or any of its Restricted Subsidiaries; or

 

(3)         transfer
any of its properties or assets to the Company or any of its Restricted Subsidiaries.

 

However, the preceding
restrictions will not apply to encumbrances or restrictions existing under or by reason of:

 

(1)         agreements
governing Existing Indebtedness and Credit Facilities as in effect on the Issue Date and any amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacements or refinancings of those agreements, provided that the amendments, modifications,
restatements, renewals, increases, supplements, refundings, replacements or refinancings are not materially more restrictive, taken
as a whole, with respect to such dividend and other payment restrictions than those contained in those agreements on the Issue
Date;

 

(2)         the
Note Documents;

 

(3)         applicable
law;

 

(4)         any
instrument governing Indebtedness or Capital Stock of a Person acquired by the Company or any of its Restricted Subsidiaries as
in effect at the time of such acquisition (except to the extent such Indebtedness or Capital Stock was incurred in connection with
or in contemplation of such acquisition), which encumbrance or restriction is not applicable to any Person, or the properties or
assets of any Person, other than the Person, or the property or assets of the Person, so acquired, provided that, in the case of
Indebtedness, such Indebtedness was permitted by the terms of this Indenture to be incurred;

 

    	56

    	 

    

 

(5)         customary
non-assignment provisions in leases entered into in the ordinary course of business and consistent with past practices;

 

(6)         purchase
money obligations for property acquired in the ordinary course of business that impose restrictions on that property of the nature
described in clause (3) of the preceding paragraph;

 

(7)         any
agreement for the sale or other disposition of a Restricted Subsidiary of the Company that restricts distributions by that Restricted
Subsidiary pending its sale or other disposition;

 

(8)         Permitted
Refinancing Indebtedness, provided that the restrictions contained in the agreements governing such Permitted Refinancing Indebtedness
are not materially more restrictive, taken as a whole, than those contained in the agreements governing the Indebtedness being
refinanced;

 

(9)         agreements
governing other Indebtedness of the Company and one or more Restricted Subsidiaries permitted under this Indenture, provided that
the restrictions in the agreements governing such Indebtedness are not materially more restrictive, taken as a whole, than those
in this Indenture or Existing Indebtedness or Credit Facilities as in effect on the Issue Date;

 

(10)        Liens
securing Indebtedness otherwise permitted to be incurred under the provisions of Section 4.12 that limit the right of the debtor
to dispose of the assets subject to such Liens;

 

(11)        provisions
with respect to the disposition or distribution of assets or property in joint venture agreements, asset sale agreements, stock
sale agreements, agreements respecting Permitted Business Investments and other similar agreements entered into in the ordinary
course of business; and

 

(12)        restrictions
on cash or other deposits or net worth imposed by customers under contracts entered into in the ordinary course of business.

 

Section
4.09         Incurrence of Indebtedness and Issuance of Preferred Stock.

 

(a)          The
Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, issue, assume,
guarantee or otherwise become directly or indirectly liable, contingently or otherwise, with respect to (collectively, “incur”)
any Indebtedness (including Acquired Debt), neither the Company nor any Restricted Subsidiary will issue any Disqualified Stock
and the Company will not permit any of its Restricted Subsidiaries to issue any shares of preferred stock; provided, however,
that the Company and any Restricted Subsidiary may incur Indebtedness (including Acquired Debt) or issue Disqualified Stock, if
the Fixed Charge Coverage Ratio for the Company’s most recently ended four full fiscal quarters for which internal financial
statements are available immediately preceding the date on which such additional Indebtedness is incurred or such Disqualified
Stock is issued, would have been at least 2.25 to 1.0, determined on a pro forma basis (including a pro forma application of the
net proceeds therefrom), as if the additional Indebtedness had been incurred or the Disqualified Stock had been issued, as the
case may be, at the beginning of such four-quarter period.

 

    	57

    	 

    

 

(b)          The
provisions of Section 4.09(a) hereof will not prohibit the incurrence of any of the following items of Indebtedness (collectively,
“Permitted Debt”):

 

(1)         the
incurrence by the Company or any Restricted Subsidiary of additional Indebtedness (including letters of credit) under one or more
Credit Facilities, provided that, after giving effect to any such incurrence, the aggregate principal amount of all Indebtedness
incurred under this clause (1) (with letters of credit being deemed to have a principal amount equal to the maximum potential liability
of the Company and its Subsidiaries thereunder) and then outstanding does not exceed an amount equal to the greatest of (a) $500.0
million (provided, however, that no more than $150.0 million aggregate principal amount may be incurred and outstanding under this
clause by Restricted Subsidiaries that are not Subsidiary Guarantors), (b) the Borrowing Base in effect at the time of such incurrence
(provided, however, that no more than $150.0 million aggregate principal amount may be incurred and outstanding under this clause
by Restricted Subsidiaries that are not Subsidiary Guarantors), and (c)(i) prior to the date that the requisite EPL Entities become
Subsidiary Guarantors in accordance with Section 4.17, 12.5% of Modified ACNTA on the date of incurrence, or (ii) thereafter, 15.0%
of Modified ACNTA on the date of incurrence

 

(2)         the
incurrence by the Company or any of its Restricted Subsidiaries of the Existing Indebtedness;

 

(3)         the
incurrence by the Company and the Subsidiary Guarantors of Indebtedness represented by the Notes and the related Guarantees to
be issued on the Issue Date;

 

(4)         the
incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness represented by Capital Lease Obligations, mortgage
financings or purchase money obligations, in each case, incurred for the purpose of financing all or any part of the purchase price
or cost of design, construction, installation or improvement of property, plant or equipment used in the business of the Company
or such Restricted Subsidiary, in an aggregate principal amount, including all Permitted Refinancing Indebtedness incurred to renew,
refund, refinance, replace, defease or discharge any Indebtedness incurred pursuant to this clause (4), not to exceed $35.0 million
at any time outstanding;

 

(5)         the
incurrence by the Company or any of its Restricted Subsidiaries of Permitted Refinancing Indebtedness in exchange for, or the net
proceeds of which are used to renew, refund, refinance, replace, defease or discharge any Indebtedness (other than intercompany
Indebtedness) that was permitted by this Indenture to be incurred under Section 4.09(a) hereof or clauses (2), (3) or (12) of this
Section 4.09(b) or this clause (5);

 

(6)         the
incurrence by the Company or any of its Restricted Subsidiaries of intercompany Indebtedness, Disqualified Stock or preferred stock
between or among the Company and any of its Restricted Subsidiaries; provided, however, that:

 

(A)         if
the Company is the obligor on such Indebtedness and a Subsidiary Guarantor is not the obligee, such Indebtedness must be expressly
subordinated to the prior payment in full in cash of all Obligations with respect to the Notes, or if a Subsidiary Guarantor is
the obligor on such Indebtedness and neither the Company nor another Subsidiary Guarantor is the obligee, such Indebtedness must
be expressly subordinated to the prior payment in full in cash of all Obligations with respect to the Guarantee of such Subsidiary
Guarantor; and

 

    	58

    	 

    

 

(B)         any
(i) subsequent issuance or transfer of Equity Interests that results in any such Indebtedness, Disqualified Stock or preferred
stock being held by a Person other than the Company or a Restricted Subsidiary of the Company, and (ii) sale or other transfer
of any such Indebtedness, Disqualified Stock or preferred stock to a Person that is not either the Company or a Restricted Subsidiary
of the Company will be deemed, in each case, to constitute an incurrence of such Indebtedness, Disqualified Stock or preferred
stock by the Company or such Restricted Subsidiary, as the case may be, that was not permitted by this clause (6);

 

(7)         the
incurrence by the Company or any of its Restricted Subsidiaries of Hedging Obligations;

 

(8)         the
guarantee by the Company or any of the Subsidiary Guarantors of Indebtedness of the Company or any Subsidiary Guarantor that was
permitted to be incurred by another provision of this Section 4.09;

 

(9)         the
incurrence by the Company or any of its Restricted Subsidiaries of obligations relating to net gas balancing positions arising
in the ordinary course of business and consistent with past practice;

 

(10)        the
incurrence by the Company’s Unrestricted Subsidiaries of Non-Recourse Debt provided, however, that if any such Indebtedness
ceases to be Non-Recourse Debt of an Unrestricted Subsidiary, such event will be deemed to constitute an incurrence of Indebtedness
by a Restricted Subsidiary of the Company that is not permitted by this clause (10);

 

(11)        the
incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness in respect of bid, performance, surety and similar
bonds issued for the account of the Company and any of its Restricted Subsidiaries in the ordinary course of business, including
guarantees and obligations of the Company and any of its Restricted Subsidiaries with respect to letters of credit supporting such
obligations (in each case other than an obligation for money borrowed);

 

(12)        Indebtedness,
Disqualified Stock or preferred stock of a Restricted Subsidiary incurred and outstanding on the date on which such Restricted
Subsidiary was acquired by, or merged into, the Company or any Restricted Subsidiary (other than Indebtedness, Disqualified Stock
or preferred stock incurred (a) to provide all or any portion of the funds utilized to consummate the transaction or series of
related transactions pursuant to which such Restricted Subsidiary became a Restricted Subsidiary or was otherwise acquired by the
Company or (b) otherwise in connection with, or in contemplation of, such acquisition); provided, however, that at
the time such Restricted Subsidiary is acquired by the Company, the Company would have been able to incur $1.00 of additional Indebtedness
pursuant to Section 4.09(a) after giving effect to the incurrence of such Indebtedness, Disqualified Stock or preferred stock pursuant
to this clause (12);

 

(13)        the
incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness arising from agreements of the Company or any of
its Restricted Subsidiaries providing for indemnification, adjustment of purchase price or similar obligations, in each case, incurred
or assumed in connection with the disposition of any business, assets or Capital Stock of a Subsidiary, provided that the maximum
aggregate liability in respect of all such Indebtedness shall at no time exceed the gross proceeds actually received by the Company
and its Restricted Subsidiaries in connection with such disposition;

 

    	59

    	 

    

 

(14)        the
incurrence by the Company or any of its Restricted Subsidiaries of additional Indebtedness in an aggregate principal amount (or
accreted value, as applicable) at any time outstanding, not to exceed $50.0 million; and

 

(15)        Indebtedness
to the extent the proceeds thereof are used to finance insurance premiums.

 

Notwithstanding anything
to the contrary in this Section 4.09, the Company and its Restricted Subsidiaries will not incur any Indebtedness (other than any
DIP Financing (as defined in and as permitted by the Intercreditor Agreement)) secured by a Priority Lien unless the principal
amount of such Indebtedness (other than any DIP Financing) is pari passu in right of payment with the principal amount of
all other Indebtedness secured by a Priority Lien.

 

For purposes of determining
compliance with this Section 4.09, in the event that an item of Indebtedness (including Acquired Debt) meets the criteria of more
than one of the categories of Permitted Debt described in clauses (1) through (15) of this Section 4.09, or is entitled to be incurred
pursuant to Section 4.09(a), the Company will be permitted to classify (or later classify or reclassify in whole or in part in
its sole discretion) such item of Indebtedness in any manner that complies with this covenant; provided that any Indebtedness
under the Credit Agreement on the Issue Date after giving effect to the use of proceeds of the Notes shall be considered incurred
under clause (1) of the definition of “Permitted Debt” of this Section 4.09 and may not be later reclassifed.

 

The amount of Indebtedness
issued at a price that is less than the principal amount thereof will be equal to the amount of the liability in respect thereof
determined in accordance with GAAP. Indebtedness of any Person existing at the time such Person becomes a Restricted Subsidiary
shall be deemed to have been incurred by the Company and the Restricted Subsidiary at the time such Person becomes a Restricted
Subsidiary. The accrual of interest, the accretion or amortization of original issue discount, the payment of interest on any Indebtedness
in the form of additional Indebtedness with the same terms, and the payment of dividends on Disqualified Stock in the form of additional
shares of the same class of Disqualified Stock will not be deemed to be an incurrence of Indebtedness or an issuance of Disqualified
Stock for purposes of this covenant; provided, in each such case, that the amount thereof is included in Fixed Charges of
the Company as accrued.

 

Section
4.10         Asset Sales.

 

(a)          The
Company will not, and will not permit any of its Restricted Subsidiaries to, consummate an Asset Sale unless:

 

(1)         the
Company (or the Restricted Subsidiary, as the case may be) receives consideration at the time of the Asset Sale at least equal
to the Fair Market Value of the assets or Equity Interests issued or sold or otherwise disposed of;

 

(2)         the
Fair Market Value is determined by the Company’s Board of Directors and evidenced by a resolution of the Board of Directors
of the Company set forth in an Officers’ Certificate delivered to the Trustee; and

 

(3)         at
least 75% of the consideration received by the Company or such Restricted Subsidiary from all Asset Sales since the Issue Date,
in the aggregate, is in the form of cash.

 

For purposes of this
provision, each of the following will be deemed to be cash:

 

    	60

    	 

    

 

(A)         any
liabilities, as shown on the Company’s or such Restricted Subsidiary’s most recent balance sheet, of the Company or
any Restricted Subsidiary (other than contingent liabilities and liabilities that are by their terms subordinated to the Notes
or any Guarantee) that are assumed by the transferee of any such assets pursuant to a customary agreement that releases the Company
or such Restricted Subsidiary from further liability; and

 

(B)         any
securities, notes or other obligations received by the Company or any such Restricted Subsidiary from such transferee that are
converted within 90 days by the Company or such Restricted Subsidiary into cash, to the extent of the cash received in that conversion.

 

(b)          Within
360 days after the receipt of any Net Proceeds from an Asset Sale, the Company or any such Restricted Subsidiary may apply those
Net Proceeds at its option to any combination of the following:

 

(1)         (A)
if the Asset Sale is a Collateral Disposition, to repay, redeem or repurchase Priority Lien Debt and other outstanding Priority
Lien Obligations or Parity Lien Debt and other outstanding Parity Lien Obligations (provided that with respect to Parity
Lien Debt, such repayment, redemption, or repurchase must be made either by a pro rata redemption or repayment of outstanding Parity
Lien Debt or by an offer to purchase on a pro rata basis made to all holders of Parity Lien Debt) or (B) if the Asset Sale is not
a Collateral Disposition, to repay, redeem or repurchase Indebtedness of the Company or a Guarantor that is not Subordinated Indebtedness
(but excluding intercompany Indebtedness of the Company or any Guarantor to the Company or any of its Affiliates);

 

(2)         to
acquire all or substantially all of the properties or assets of one or more other Persons primarily engaged in the Oil and Gas
Business, and, for this purpose, a division or line of business of a Person shall be treated as a separate Person so long as such
properties and assets are acquired by the Company or a Restricted Subsidiary;

 

(3)         to
acquire a majority of the Voting Stock of one or more other Persons primarily engaged in the Oil and Gas Business, if after giving
effect to any such acquisition of Voting Stock, such Person is or becomes a Restricted Subsidiary;

 

(4)         to
make one or more capital expenditures; or

 

(5)         to
acquire other long-term assets that are used or useful in the Oil and Gas Business.

 

Pending the final application
of any Net Proceeds, the Company or any such Restricted Subsidiary may temporarily reduce revolving credit borrowings or otherwise
invest the Net Proceeds in any manner that is not prohibited by this Indenture.

 

(c)          Any
Net Proceeds from Asset Sales that are not applied or invested as provided in Section 4.10(b) hereof will constitute “Excess
Proceeds.” On the 361st day after an Asset Sale (or, at the Company’s option, any earlier date), if the aggregate amount
of Excess Proceeds then exceeds $25.0 million, the Company will make an Asset Sale Offer to all Holders of Notes pursuant to Section 3.09
hereof, and (i) with respect to Excess Proceeds from any Asset Sale that is a Collateral Disposition, all holders of other Parity
Lien Obligations, or (ii) with respect to other Excess Proceeds, all holders of other Indebtedness that is pari passu with
the Notes, in each case containing provisions similar to those in this Indenture with respect to offers to purchase or redeem with
the proceeds of sales of assets, to purchase the maximum principal amount of Notes and such other pari passu Indebtedness
that may be purchased out of the Excess Proceeds.

 

    	61

    	 

    

 

(d)          The
offer price in any Asset Sale Offer will be equal to 100% of principal amount plus accrued and unpaid interest, if any, to the
date of settlement, subject to the right of Holders on the relevant Record Date to receive interest due on an Interest Payment
Date that is on or prior to the date of settlement, and will be payable in cash.

 

(e)          If
any Excess Proceeds remain after consummation of an Asset Sale Offer to the Holders of Notes, the Company may use those Excess
Proceeds for any purpose not otherwise prohibited by this Indenture.

 

(f)          If
the aggregate principal amount of Notes and other Parity Lien Obligations or Indebtedness ranking pari passu with the Notes,
as applicable, tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds, the Trustee will select the Notes and
such other pari passu Indebtedness to be purchased on a pro rata basis. Upon completion of each Asset Sale Offer, the amount
of Excess Proceeds will be reset at zero.

 

Section
4.11         Transactions with Affiliates.

 

(a)          The
Company will not, and will not permit any of its Restricted Subsidiaries to, make any payment to, or sell, lease, transfer or otherwise
dispose of any of its properties or assets to, or purchase any property or assets from, or enter into or make or amend any transaction,
contract, agreement, understanding, loan, advance or guarantee with, or for the benefit of, any Affiliate (each, an “Affiliate
Transaction”), unless:

 

(1)         the
Affiliate Transaction is on terms that are no less favorable to the Company or the relevant Restricted Subsidiary than those that
would have been obtained in a comparable transaction by the Company or such Restricted Subsidiary with an unrelated Person; and

 

(2)         the
Company delivers to the Trustee:

 

(A)         with
respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of
$20.0 million, a resolution of the Board of Directors of the Company set forth in an Officers’ Certificate certifying that
such Affiliate Transaction complies with this covenant and that such Affiliate Transaction has been approved by a majority of the
disinterested members of the Board of Directors of the Company; and

 

(B)         with
respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of
$40.0 million, the Company delivers to the Trustee a written opinion that such Affiliate Transaction(s) is fair, from a financial
point of view, to the Company and its Restricted Subsidiaries, taken as a whole, or that such Affiliate Transaction(s) is not less
favorable to the Company and its Restricted Subsidiaries than could reasonably be expected to be obtained at the time in an arm’s-length
transaction with a person who is not an Affiliate, in either such case issued by an independent accounting, appraisal or investment
banking firm of national standing.

 

(b)          The
following items will not be deemed to be Affiliate Transactions and, therefore, will not be subject to the provisions of paragraph
(a) of this Section:

 

    	62

    	 

    

 

(1)         any
employment or severance agreement or other employee compensation agreement, arrangement or plan, or any amendment thereto, entered
into by the Company or any of its Restricted Subsidiaries in the ordinary course of business;

 

(2)         transactions
between or among any of the Parent, the Company and its Restricted Subsidiaries;

 

(3)         transactions
with a Person (other than an Unrestricted Subsidiary of the Company) that is an Affiliate of the Company solely because the Company
owns an Equity Interest in such Person;

 

(4)         the
payment of reasonable directors’ fees, payments, the payments of other reasonable benefits and the provision of officers’
and directors’ indemnification and insurance to the extent permitted by law to persons who are officers and directors of
the Parent or its Subsidiaries and the Company and its Restricted Subsidiaries and who are not otherwise Affiliates of the Company,
in each case in the ordinary course of business and approved by the Board of Directors of the Company;

 

(5)         sales
of Equity Interests (other than Disqualified Stock) to Affiliates of the Company;

 

(6)         transactions
among the Company, its Restricted Subsidiaries and Energy XXI Services, Inc. (“Services”), a wholly-owned subsidiary
of Parent and a sister company of the Company relating to the provision of employment, administrative and related services by Services
pursuant to the Cost Allocation Agreement in effect on the Issue Date among the Company, certain Subsidiaries and Services, as
such agreement may be amended, modified or supplemented from time to time provided that any such amendment, modification or supplement
will not be materially adverse to the Company or the Restricted Subsidiaries compared to the terms of such agreement in effect
on the Issue Date;

 

(7)         provision
of management or other services or supplies on commercially reasonable arms-length terms as determined in good faith by an Officer
of the Company;

 

(8)         transactions
pursuant to agreements in effect on the Issue Date as any such agreement may be amended, modified or supplemented from time to
time; provided that any such amendment, modification or supplement will not be materially adverse to the Company or the
Restricted Subsidiaries compared to the terms of such agreement in effect on the Issue Date; and

 

(9)         Restricted
Payments that are permitted pursuant to Section 4.07 hereof, including Permitted Payments to Parent Companies.

 

Section
4.12         Liens.

 

The Company will not
and will not permit any of its Restricted Subsidiaries to, create, incur, assume or otherwise cause or suffer to exist or become
effective any Lien of any kind (other than Permitted Liens) securing Indebtedness or Attributable Debt upon any of their property
or assets, now owned or hereafter acquired.

 

The Parent will not,
and will not permit Intermediate Holdco to, directly or indirectly, pledge any Equity Interests of the Company or any of the Restricted
Subsidiaries to secure Indebtedness or Attributable Debt of the Company or any Guarantor, other than Liens securing any Priority
Lien Debt, any Parity Lien Debt or any Junior Lien Debt, in each case as permitted by the Intercreditor Agreement.

 

    	63

    	 

    

 

Section
4.13         Business Activities.

 

The Company will not,
and will not permit any Restricted Subsidiary to, engage in any business other than the Oil and Gas Business, except to such extent
as would not be material to the Company and its Restricted Subsidiaries taken as a whole, and Parent will not engage in any business
other than the Permitted Parent Business, except to such extent as would not be material to Parent.

 

Section
4.14         Corporate Existence.

 

Subject to Article
5 hereof, the Company shall do or cause to be done all things necessary to preserve and keep in full force and effect:

 

(1)         its
corporate existence, and the corporate, partnership, limited liability company or other existence of each of its Subsidiaries,
in accordance with the respective organizational documents (as the same may be amended from time to time) of the Company or any
such Subsidiary; and

 

(2)         the
rights (charter and statutory), licenses and franchises of the Company and its Subsidiaries;

 

provided, however,
that the Company shall not be required to preserve any such right, license or franchise, or the corporate, partnership, limited
liability company or other existence of any of its Subsidiaries, if the Board of Directors of the Company shall determine that
the preservation thereof is no longer desirable in the conduct of the business of the Company and its Subsidiaries, taken as a
whole, and that the loss thereof would not have a material adverse effect on the Company and its Subsidiaries, taken as a whole.

 

Section
4.15         Offer to Repurchase Upon Change of Control.

 

(a)          Upon
the occurrence of a Change of Control, each Holder will have the right to require the Company to repurchase all or any part (equal
to $1,000 or an integral multiple of $1,000 in excess of $2,000) of that Holder’s Notes pursuant to an offer (a “Change
of Control Offer”) at a purchase price in cash (the “Change of Control Payment”) equal to 101% (or,
at the Company’s election, a higher percentage) of the aggregate principal amount of Notes repurchased plus accrued and unpaid
interest, if any, on the Notes repurchased to the date of settlement (the “Change of Control Purchase Date”),
subject to the rights of Holders on the relevant record date to receive interest due on an Interest Payment Date that is on or
before the Change of Control Purchase Date. Within 30 days following any Change of Control, the Company will mail a notice to each
Holder and the Trustee describing the transaction or transactions that constitute the Change of Control, offering to repurchase
the Notes as of the Change of Control Purchase Date and stating:

 

(1)         that
the Change of Control Offer is being made pursuant to this Section 4.15 and that all Notes tendered will be accepted for payment;

 

(2)         the
purchase price and the Change of Control Purchase Date, which shall be no earlier than 30 days and no later than 60 days from the
date such notice is mailed;

 

(3)         that
any Note not tendered will continue to accrue interest;

 

    	64

    	 

    

 

(4)         that,
unless the Company defaults in the payment of the Change of Control Payment, all Notes accepted for payment pursuant to the Change
of Control Offer will cease to accrue interest after the Change of Control Purchase Date;

 

(5)         that
Holders electing to have any Notes purchased pursuant to a Change of Control Offer will be required to surrender the Notes, with
the form entitled “Option of Holder to Elect Purchase” attached to the Notes completed, or transfer by book-entry transfer,
to the Paying Agent at the address specified in the notice prior to the close of business on the third Business Day preceding the
Change of Control Purchase Date;

 

(6)         that
Holders will be entitled to withdraw their election if the Paying Agent receives, not later than the close of business on the second
Business Day preceding the Change of Control Purchase Date, a telegram, telex, facsimile transmission or letter setting forth the
name of the Holder, the principal amount of Notes delivered for purchase, and a statement that such Holder is withdrawing his election
to have the Notes purchased; and

 

(7)         that
Holders whose Notes are being purchased only in part will be issued new Notes equal in principal amount to the unpurchased portion
of the Notes surrendered, which unpurchased portion must be equal to $2,000 in principal amount or an integral multiple of $1,000
in excess of $2,000.

 

The Company will comply
with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent
those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control. To
the extent that the provisions of any securities laws or regulations conflict with the provisions of this Indenture, the Company
will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this
Section 4.15 by virtue of such compliance.

 

(b)          On
the Change of Control Purchase Date, the Company will, to the extent lawful:

 

(1)         accept
for payment all Notes or portions of Notes properly tendered pursuant to the Change of Control Offer;

 

(2)         deposit
with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or portions of Notes properly tendered;
and

 

(3)         deliver
or cause to be delivered to the Trustee the Notes properly accepted together with an Officers’ Certificate stating the aggregate
principal amount of Notes or portions of Notes being purchased by the Company.

 

On the Change of Control
Purchase Date, the Paying Agent will promptly mail to each Holder of Notes properly tendered the Change of Control Payment for
such Notes (or, if all the Notes are then in global form, make such payment through the facilities of DTC), and the Trustee will
promptly authenticate and mail (or cause to be transferred by book entry) to each Holder a new Note equal in principal amount to
any unpurchased portion of the Notes surrendered, if any; provided, that each new Note will be in a principal amount of
$2,000 or an integral multiple of $1,000 in excess of $2,000. The Company will publicly announce the results of the Change of Control
Offer on or as soon as practicable after the Change of Control Purchase Date.

 

    	65

    	 

    

 

Notwithstanding anything
to the contrary in this Section 4.15, the Company will not be required to make a Change of Control Offer upon a Change of Control
if (1) a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements
set forth in this Section 4.15 and Section 3.09 hereof and purchases all Notes validly tendered and not withdrawn under such Change
of Control Offer, (2) notice of redemption for all outstanding Notes has been given pursuant to Section 3.07 hereof, unless and
until there is a default in payment of the applicable redemption price or (3) in connection with or in contemplation of any publicly
announced Change of Control, the Company or a third party has made an offer to purchase (an “Alternate Offer”)
any and all Notes validly tendered at a cash price equal to or higher than the Change of Control Payment and has purchased all
Notes properly tendered in accordance with the terms of the Alternate Offer.

 

In the event that Holders
of not less than 90% in aggregate principal amount of the outstanding Notes accept a Change of Control Offer or Alternate Offer
and the Company (or any third party making such Change of Control Offer or Alternate Offer in lieu of the Company as described
above) purchases all of the Notes held by such Holders, the Company will have the right, upon not less than 30 nor more than 60
days prior notice, given not more than 30 days following the purchase pursuant to the Change of Control Offer or Alternate Offer
described above, to redeem all of the Notes that remain outstanding following such purchase at a redemption price equal to the
Change of Control Payment plus, to the extent not included in the Change of Control Payment, accrued and unpaid interest, if any,
on the Notes that remain outstanding, to the date of redemption (subject to the rights of Holders of record on the relevant Record
Date to receive interest due on an Interest Payment Date that is on or prior to the redemption date).

 

Section
4.16         Payments for Consent.

 

Neither the Parent,
the Company nor any of the Company's Subsidiaries shall, directly or indirectly, pay or cause to be paid any consideration, whether
by way of interest, fee or otherwise, to any Beneficial Owner or Holder of any Notes for or as an inducement to any consent to
any waiver, supplement or amendment of any terms or provisions of the Note Documents, unless such consideration is offered to be
paid or agreed to be paid to all Beneficial Owners and Holders of the Notes which so consent in the time frame set forth in solicitation
documents relating to such consent.

 

Section
4.17         Additional Guarantees.

 

If, after the Issue
Date, any Material Domestic Subsidiary of the Company that is not then a Subsidiary Guarantor, guarantees any Indebtedness of the
Company or any Subsidiary Guarantor for borrowed money or under any Credit Facility, in each case in excess of $25.0 million, or
any Material Domestic Subsidiary of the Company that is not then a Subsidiary Guarantor incurs any Indebtedness in excess of $25.0
million under any Credit Facility or for borrowed money, then in either case, such Subsidiary will become a Subsidiary Guarantor
by executing a supplemental indenture substantially in the form of Exhibit E hereto and delivering it to the Trustee within 20
Business Days of the date on which it guaranteed or incurred such Indebtedness, as the case may be; provided that (i) the
foregoing requirements shall not apply to any of the EPL Entities prior to the Disqualifying Condition Termination unless such
EPL Entity guarantees any Indebtedness of the Company under any Existing Unsecured Notes of the Company, but thereafter shall apply
to the EPL Entities as if they had incurred any Indebtedness of such entities outstanding under a Credit Facility or for borrowed
money as of the date of the Disqualifying Condition Termination on such date, and (ii) the foregoing shall not apply to Subsidiaries
of the Company that have properly been designated as Unrestricted Subsidiaries in accordance with this Indenture for so long as
they continue to constitute Unrestricted Subsidiaries.

 

    	66

    	 

    

 

Section
4.18         Designation of Restricted and Unrestricted Subsidiaries.

 

(a)          The
Board of Directors of the Company may designate any Restricted Subsidiary of the Company to be an Unrestricted Subsidiary if that
designation would not cause a Default. If a Restricted Subsidiary of the Company is designated as an Unrestricted Subsidiary, the
aggregate Fair Market Value of all outstanding Investments owned by the Company and its Restricted Subsidiaries in the Subsidiary
properly designated will be deemed to be an Investment made as of the time of the designation and will reduce the amount available
for Restricted Payments under Section 4.07(a) hereof or represent Permitted Investments, as determined by the Company. That designation
will only be permitted if the Investment would be permitted at that time and if the Subsidiary so designated otherwise meets the
definition of an Unrestricted Subsidiary.

 

(b)          The
Board of Directors of the Company may at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary of the Company;
provided that such designation will be deemed to be an incurrence of Indebtedness by a Restricted Subsidiary of the Company
of any outstanding Indebtedness of such Unrestricted Subsidiary and the creation, incurrence, assumption or otherwise causing to
exist any Lien of such Unrestricted Subsidiary and such designation will only be permitted if (1) such Indebtedness is permitted
under Section 4.09 hereof calculated on a pro forma basis as if such designation had occurred at the beginning of the four-quarter
reference period, (2) such Lien is permitted under Section 4.12 and (3) no Default or Event of Default would be in existence following
such designation.

 

(c)          Any
designation of a Subsidiary of the Company as an Unrestricted Subsidiary will be evidenced to the Trustee by filing with the Trustee
a resolution of the Board of Directors of the Company giving effect to such designation and an Officers’ Certificate certifying
that such designation complied with the conditions set forth in the definition of “Unrestricted Subsidiary” and was
permitted by Section 4.07. If, at any time, any Unrestricted Subsidiary would fail to meet the preceding requirements as an
Unrestricted Subsidiary, (i) it will thereafter cease to be an Unrestricted Subsidiary for purposes of this Indenture, (ii) any
Indebtedness and any Lien of such Subsidiary will be deemed to have been incurred by a Restricted Subsidiary of the Company as
of such date and (iii) if such Indebtedness or Lien is not permitted to have been incurred as of such date under Section 4.09
or Section 4.12, as applicable, the Company will be in Default of such covenant, as applicable.

 

Section
4.19         Sale and Leaseback Transactions

 

The Company will not,
and will not permit any of its Restricted Subsidiaries to, enter into any sale and leaseback transaction; provided that
the Company or any Subsidiary Guarantor may enter into a sale and leaseback transaction if:

 

(a)          the
Company or that Subsidiary Guarantor, as applicable, could have (a) incurred Indebtedness in an amount equal to the Attributable
Debt relating to such sale and leaseback transaction under the Fixed Charge Coverage Ratio test in Section 4.09(a) and (b) incurred
a Lien to secure such Indebtedness without securing the Notes pursuant to Section 4.12 hereof;

 

(b)          the
gross cash proceeds of that sale and leaseback transaction are at least equal to the Fair Market Value, as determined in good faith
by the Board of Directors of the Company and set forth in an Officers’ Certificate delivered to the Trustee, of the property
that is the subject of that sale and leaseback transaction; and

 

(c)          the
transfer of assets in that sale and leaseback transaction is permitted by, and the Company applies the proceeds of such transaction
in compliance with Section 4.10 hereof.

 

    	67

    	 

    

 

Section
4.20         Offer to Repurchase Upon Triggering Event.

 

(a)          If
a Triggering Event (as defined below) occurs, each Holder will have the right to require the Company to repurchase all or any part
(equal to $2,000 or an integral multiple of $1,000 in excess of $2,000) of that Holder’s Notes pursuant to an offer (a “Triggering
Event Repurchase Offer”) at a purchase price in cash (the “Triggering Event Payment”) equal to 100%
of the aggregate principal amount of Notes repurchased plus accrued and unpaid interest, if any, on the Notes repurchased to the
date of settlement (the “Triggering Event Purchase Date”), subject to the rights of Holders on the relevant
record date to receive interest due on an Interest Payment Date that is on or before the Triggering Event Purchase Date. No later
than the Business Day following the occurrence of a Triggering Event, the Company will mail a notice to each Holder and the Trustee
describing the Triggering Event, offering to repurchase the Notes as of the Triggering Event Purchase Date and stating:

 

(1)         that
the Triggering Event Offer is being made pursuant to this Section 4.20 and that all Notes tendered will be accepted for payment;

 

(2)         the
purchase price and the Triggering Event Purchase Date, which shall be no earlier than 20 Business Days and no later than 30 Business
Days from the date such notice is mailed;

 

(3)         that
any Note not tendered will continue to accrue interest;

 

(4)         that,
unless the Company defaults in the payment of the Triggering Event Payment, all Notes accepted for payment pursuant to the Triggering
Event Offer will cease to accrue interest after the Triggering Event Purchase Date;

 

(5)         that
Holders electing to have any Notes purchased pursuant to a Triggering Event Offer will be required to surrender the Notes, with
the form entitled “Option of Holder to Elect Purchase” attached to the Notes completed, or transfer by book-entry transfer,
to the Paying Agent at the address specified in the notice prior to the close of business on the third Business Day preceding the
Triggering Event Purchase Date;

 

(6)         that
Holders will be entitled to withdraw their election if the Paying Agent receives, not later than the close of business on the second
Business Day preceding the Triggering Event Purchase Date, a telegram, telex, facsimile transmission or letter setting forth the
name of the Holder, the principal amount of Notes delivered for purchase, and a statement that such Holder is withdrawing his election
to have the Notes purchased; and

 

(7)         that
Holders whose Notes are being purchased only in part will be issued new Notes equal in principal amount to the unpurchased portion
of the Notes surrendered, which unpurchased portion must be equal to $2,000 in principal amount or an integral multiple of $1,000
in excess of $2,000.

 

A “Triggering
Event” will be deemed to occur (i) on the 30th day prior to the stated maturity date of the Company’s 9.25% Senior
Notes due 2017 outstanding on the Issue Date (the “2017 Notes”), if on such date the aggregate outstanding principal
amount of all 2017 Notes that shall not have been repurchased, redeemed, discharged, defeased or called for redemption (with funds
to effect such redemption deposited with the trustee for such 2017 Notes or otherwise set aside for purposes of such redemption),
exceeds $250.0 million, or (ii) on the 30th day prior to the stated maturity date of the EPL Notes, if on such date the aggregate
outstanding principal amount of the EPL Notes that shall not have been repurchased, redeemed, discharged, defeased or called for
redemption (with funds to effect such redemption deposited with the trustee for such EPL Notes or otherwise set aside for purposes
of such redemption), exceeds $250.0 million

 

    	68

    	 

    

 

The Company will comply
with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent
those laws and regulations are applicable in connection with the Triggering Event Repurchase Offer. To the extent that the provisions
of any securities laws or regulations conflict with the provisions of this Indenture, the Company will comply with the applicable
securities laws and regulations and will not be deemed to have breached its obligations under this Section 4.20 by virtue of such
compliance.

 

(b)          On
the Triggering Event Purchase Date, the Company will, to the extent lawful:

 

(1)         accept
for payment all Notes or portions of Notes properly tendered pursuant to the Triggering Event Repurchase Offer;

 

(2)         deposit
with the Paying Agent an amount equal to the Triggering Event Payment in respect of all Notes or portions of Notes properly tendered;
and

 

(3)         deliver
or cause to be delivered to the Trustee the Notes properly accepted together with an Officers’ Certificate stating the aggregate
principal amount of Notes or portions of Notes being purchased by the Company.

 

On the Triggering Event
Purchase Date, the Paying Agent will promptly mail to each Holder of Notes properly tendered the Triggering Event Payment for such
Notes (or, if all the Notes are then in global form, make such payment through the facilities of DTC), and the Trustee will promptly
authenticate and mail (or cause to be transferred by book entry) to each Holder a new Note equal in principal amount to any unpurchased
portion of the Notes surrendered, if any; provided, that each new Note will be in a principal amount of $2,000 or an integral
multiple of $1,000 in excess of $2,000. The Company will publicly announce the results of the Triggering Event Offer on or as soon
as practicable after the Triggering Event Purchase Date.

 

Section
4.21         Suspended Covenants.

 

During any period when
the Notes have an Investment Grade Rating from both Rating Agencies and no Default has occurred and is continuing under this Indenture
(the “Covenant Suspension Period”), the Company and its Restricted Subsidiaries will not be subject to the provisions
of Sections 4.07, 4.08, 4.09, 4.10, 4.11, 4.13 and clause (4) of Section 5.01 of this Indenture (collectively, the “Suspended
Covenants”); provided that if the Company and the Restricted Subsidiaries are not subject to the Suspended Covenants
for any period of time as a result of the preceding portion of this sentence and, subsequently, either of the Rating Agencies withdraws
its ratings or downgrades the ratings assigned to the Notes below the Investment Grade Ratings so that the Notes do not have an
Investment Grade Rating from both Rating Agencies, or a Default (other than with respect to the Suspended Covenants) occurs and
is continuing, the Company and the Restricted Subsidiaries will thereafter again be subject to the Suspended Covenants, subject
to the terms, conditions and obligations set forth in this Indenture (each such date of reinstatement being the “Reinstatement
Date”). Compliance with the Suspended Covenants with respect to Restricted Payments made after the Reinstatement Date
will be calculated in accordance with the terms of Section 4.07 as though such covenant had been in effect during the period since
the Issue Date, provided that all Restricted Payments made, Indebtedness incurred and other actions otherwise permitted by this
Indenture effected during any Covenant Suspension Period will not constitute a Default on any Reinstatement Date. The Company will
provide the Trustee with prompt written notice upon the commencement of a Covenant Suspension Period and of the occurrence of a
Reinstatement Date. In addition, during any Covenant Suspension Period, the Company will not be permitted to designate any of its
Subsidiaries as Unrestricted Subsidiaries.

 

    	69

    	 

    

 

ARTICLE
5

SUCCESSORS

 

Section
5.01         Merger, Consolidation, or Sale of Assets.

 

The Company will not,
directly or indirectly: (1) consolidate or merge with or into another Person (whether or not the Company is the surviving corporation);
or (2) sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of the properties or assets of the
Company and its Restricted Subsidiaries taken as a whole, in one or more related transactions, to another Person, unless:

 

(1)         either
(A) the Company is the surviving corporation; or (B) the Person formed by or surviving any such consolidation or merger (if other
than the Company) or to which such sale, assignment, transfer, lease, conveyance or other disposition has been made is a corporation
organized or existing under the laws of the United States, any state of the United States or the District of Columbia;

 

(2)         the
Person formed by or surviving any such consolidation or merger (if other than the Company) or the Person to which such sale, assignment,
transfer, lease, conveyance or other disposition has been made assumes all the obligations of the Company under the Notes and the
other Note Documents to which the Company is a party pursuant to agreements reasonably satisfactory to the Trustee and the Collateral
Trustee, as applicable;

 

(3)         immediately
after such transaction no Default or Event of Default exists;

 

(4)         except
with respect to a transaction solely between the Company and a Subsidiary Guarantor, (i) the Company or the Person formed by or
surviving any such consolidation or merger (if other than the Company), or to which such sale, assignment, transfer, lease, conveyance
or other disposition has been made will, on the date of such transaction after giving pro forma effect thereto and any related
financing transactions as if the same had occurred at the beginning of the applicable four-quarter period, be permitted to incur
at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 4.09(a) hereof
or (ii) such Fixed Charge Coverage Ratio would increase after giving such pro forma effect;

 

(5)         any
Collateral owned by or transferred to the Person formed by or surviving any such consolidation or merger (if other than the Company)
or the Person to which such sale, assignment, transfer, lease, conveyance or other disposition has been made continues to constitute
Collateral under the Note Documents, subject to the Parity Liens, except as permitted by this Indenture or the other Note Documents;
and

 

(6)         the
Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation,
merger or disposition and such Supplemental Indenture (if any) comply with this Indenture and that all conditions precedent herein
provided for relating to such transaction have been complied with.

 

    	70

    	 

    

 

Section
5.02         Successor Corporation Substituted.

 

Upon any consolidation
or merger, or any sale, assignment, transfer, lease, conveyance or other disposition of all or substantially all of the properties
or assets of the Company or its Restricted Subsidiaries in a transaction that is subject to, and that complies with the provisions
of, Section 5.01 hereof, the successor Person formed by such consolidation or into or with which the Company or Restricted Subsidiaries
is or are merged or to which such sale, assignment, transfer, lease, conveyance or other disposition is made shall succeed to,
and be substituted for (so that from and after the date of such consolidation, merger, sale, assignment, transfer, lease, conveyance
or other disposition, the provisions of this Indenture referring to the “Company” shall refer instead to the successor
Person and not to the Company or the applicable Restricted Subsidiaries), and may exercise every right and power of the Company
or Restricted Subsidiaries under this Indenture with the same effect as if such successor Person had been named as the Company
or Restricted Subsidiaries herein; provided, however, that the predecessor Company or Restricted Subsidiaries shall not
be relieved from the obligation to pay the principal of and interest on the Notes except in the case of a sale of all of the Company’s
or the applicable Restricted Subsidiaries’ assets in a transaction that is subject to, and that complies with the provisions
of, Section 5.01 hereof.

 

ARTICLE
6

DEFAULTS AND REMEDIES

 

Section
6.01         Events of Default.

 

Each of the following
is an “Event of Default”:

 

(1)         default
for 30 days in the payment when due of interest on the Notes;

 

(2)         default
in the payment when due (at maturity, upon redemption or otherwise) of the principal of, or premium, if any, on, the Notes;

 

(3)         failure
by the Company to comply with the provisions of Sections 3.09, 4.10, 4.15, 4.20 or Article 5 hereof;

 

(4)         failure
by the Parent, the Company or any of its Restricted Subsidiaries, as applicable, to comply for 30 days after receipt of written
notice from the Trustee or the Holders of at least 25% in aggregate principal amount of the Notes to comply with Sections 4.07,
4.08, 4.09, 4.11, 4.12, 4.13, 4.17 and 4.19 hereof;

 

(5)         failure
by the Company, the Parent or any Guarantor, as applicable, for 60 days after notice from the Trustee or the Holders of at least
25% of the principal amount of the Notes outstanding to comply with any of the other agreements in this Indenture or any other
Note Document (or 120 days with respect to Section 4.03 hereof provided, however, that beginning on the 61st
day the Company is not in compliance with Section 4.03 hereof, additional interest at a rate of 0.25% per annum shall
accrue and be payable (in the same manner and at the same time as regular interest payments) on the Notes until such covenant is
complied with);

 

(6)         default
under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness
for money borrowed by the Company or any of its Significant Restricted Subsidiaries (or the payment of which is guaranteed by the
Company or any of its Significant Restricted Subsidiaries), whether such Indebtedness or guarantee now exists, or is created after
the Issue Date, if that default:

 

    	71

    	 

    

 

(A)         is
caused by a failure to pay principal of, or interest or premium, if any, on, such Indebtedness prior to the expiration of the grace
period provided in the documents governing such Indebtedness on the date of such default (a “Payment Default”);
or

 

(B)         results
in the acceleration of such Indebtedness prior to its final Stated Maturity,

 

and, in each case, the principal
amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under which there has been a
Payment Default or the maturity of which has been so accelerated, aggregates $50.0 million or more and such default or acceleration
is not cured or rescinded or such Indebtedness is not repaid in each case within 30 days;

 

(7)         failure
by the Company or any of its Significant Restricted Subsidiaries to pay final judgments entered by a court or courts of competent
jurisdiction aggregating in excess of $50.0 million, which judgments are not paid, discharged or stayed (including a stay pending
appeal) for a period of 60 days after the date of such final judgment (or, if later, the date when payment is due pursuant to such
judgment);

 

(8)         except
as permitted by this Indenture, any Guarantee of the Parent, Intermediate Holdco or a Significant Subsidiary is held in any judicial
proceeding to be unenforceable or invalid or ceases for any reason to be in full force and effect, or any Guarantor that is the
Parent, Intermediate Holdco or a Significant Subsidiary, or any Person acting on behalf of any Guarantor that is the Parent, Intermediate
Holdco or a Significant Subsidiary, denies or disaffirms in writing its obligations under its Guarantee;

 

(9)         the
Company or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted Subsidiaries of the Company
that, taken together, would constitute a Significant Subsidiary, pursuant to or within the meaning of Bankruptcy Law:

 

(A)         commences
a voluntary case,

 

(B)         consents
to the entry of an order for relief against it in an involuntary case,

 

(C)         consents
to the appointment of a custodian of it or for all or substantially all of its property,

 

(D)         makes
a general assignment for the benefit of its creditors, or

 

(E)         generally
is not paying its debts as they become due;

 

(10)        a
court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

(A)         is
for relief against the Company or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted
Subsidiaries of the Company that, taken together, would constitute a Significant Subsidiary in an involuntary case;

 

    	72

    	 

    

 

(B)         appoints
a custodian of the Company or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted Subsidiaries
of the Company that, taken together, would constitute a Significant Subsidiary or for all or substantially all of the property
of the Company or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted Subsidiaries of
the Company that, taken together, would constitute a Significant Subsidiary; or

 

(C)         orders
the liquidation of the Company or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted
Subsidiaries of the Company that, taken together, would constitute a Significant Subsidiary;

 

and the order or decree remains
unstayed and in effect for 60 consecutive days;

 

(11)        the
occurrence of any of the following:

 

(A)         except
as permitted by the Note Documents, any Security Document establishing the Parity Liens ceases for any reason to be enforceable;
provided that it will not be an Event of Default under this clause (11)(A) if the sole result of the failure of one or more
Security Documents to be fully enforceable is that any Parity Lien purported to be granted under such Security Documents on Collateral,
individually or in the aggregate, having a Fair Market Value of not more than $15.0 million, ceases to be an enforceable; provided
further that if such failure is susceptible to cure, no Event of Default shall arise with respect thereto until 30 days after any
Officer of the Company or any Restricted Subsidiary becomes aware of such failure, which failure has not been cured during such
time period;

 

(B)         except
as permitted by the Note Documents, any Parity Lien purported to be granted under any Security Document on Collateral, individually
or in the aggregate, having a Fair Market Value in excess of $15.0 million, ceases to be an enforceable and perfected second-priority
Lien, subject only to Permitted Liens and the terms of the Intercreditor Agreement; provided that if such failure is susceptible
to cure, no Event of Default shall arise with respect thereto until 30 days after any Officer of the Company or any Restricted
Subsidiary becomes aware of such failure, which failure has not been cured during such time period; and

 

(C)         the
Company or any Guarantor, or any Person acting on behalf of any of them, denies or disaffirms, in writing, any obligation of the
Company or any Guarantor set forth in or arising under any Security Document establishing Parity Liens.

 

Section
6.02         Acceleration.

 

In the case of an Event
of Default specified in clause (9) or (10) of Section 6.01 hereof, all outstanding Notes will become due and payable immediately
without further action or notice and in such event the Holders of Notes will be entitled, to the extent permitted by law, to the
payment of all amounts that would have been due upon redemption of the Notes if the Company redeemed the Notes at its option at
such time pursuant to the provisions of Section 3.07 (including the Applicable Premium, if applicable). Any such amounts will constitute
liquidated damages reasonably agreed by the Company and the Holders in view of the impracticability of determining actual damages.
If any other Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount
of the then outstanding Notes may declare all the Notes to be due and payable immediately. Upon any such declaration, the Notes
shall become due and payable immediately.

 

    	73

    	 

    

 

In the case of any
Event of Default occurring by reason of any willful action or inaction taken or not taken by or on behalf of the Company with the
intention of avoiding payment of the premium that the Company would have had to pay if the Company then had elected to redeem the
Notes prior to Stated Maturity (other than with the net cash proceeds of an Equity Offering), an equivalent premium will also become
and be immediately due and payable to the extent permitted by law upon the acceleration of the Notes.

 

The Holders of a majority
in aggregate principal amount of the then outstanding Notes by written notice to the Trustee may, on behalf of all of the Holders,
rescind an acceleration and its consequences, if the rescission would not conflict with any judgment or decree and if all existing
Events of Default (except nonpayment of principal, interest or premium that has become due solely because of the acceleration)
have been cured or waived.

 

Section
6.03         Other Remedies.

 

If an Event of Default
occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of principal, premium, if any, and
interest on the Notes or to enforce the performance of any provision of the Notes or this Indenture.

 

The Trustee may maintain
a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding. A delay or omission
by the Trustee or any Holder of a Note in exercising any right or remedy accruing upon an Event of Default shall not impair the
right or remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are cumulative to the extent permitted
by law.

 

Section
6.04         Waiver of Past Defaults.

 

Holders of a majority
in aggregate principal amount of the then outstanding Notes by notice to the Trustee may on behalf of the Holders of all of the
Notes waive an existing Default or Event of Default and its consequences hereunder, except (i) a continuing Default or Event of
Default in the payment of the principal of, premium, if any, or interest on, the Notes (including in connection with an offer to
purchase) or (ii) a Default or Event of Default in respect of a provision that under Section 9.02 cannot be amended without the
consent of each Holder affected; provided, however, that the Holders of a majority in aggregate principal amount of the
then outstanding Notes may rescind an acceleration in accordance with Section 6.02 and its consequences, including any related
payment default that resulted from such acceleration. Upon any such waiver, such Default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but no such waiver shall extend
to any subsequent or other Default or impair any right consequent thereon.

 

Section
6.05         Control by Majority.

 

Holders of a majority
in aggregate principal amount of the then outstanding Notes may direct the time, method and place of conducting any proceeding
for exercising any remedy available to the Trustee or exercising any trust or power conferred on it. However, the Trustee may refuse
to follow any direction that conflicts with law or this Indenture that the Trustee determines may be unduly prejudicial to the
rights of other Holders of Notes or that may involve the Trustee in personal liability.

 

Section
6.06         Limitation on Suits.

 

Except to enforce the
right to receive payment of principal, interest or premium, if any, when due, no Holder of a Note may pursue any remedy with respect
to this Indenture or any Note Document unless:

 

    	74

    	 

    

 

(1)         such
Holder has previously given the Trustee notice that an Event of Default is continuing;

 

(2)         Holders
of at least 25% in aggregate principal amount of the then outstanding Notes have requested the Trustee to pursue the remedy;

 

(3)         such
Holder or Holders have furnished the Trustee reasonable security or indemnity against any loss, liability or expense;

 

(4)         the
Trustee has not complied with such request within 60 days after the receipt of the request and the furnishing of security
or indemnity; and

 

(5)         Holders
of a majority in aggregate principal amount of the then outstanding Notes have not given the Trustee a direction inconsistent with
such request within such 60-day period.

 

A Holder of a Note
may not use this Indenture to prejudice the rights of another Holder of a Note or to obtain a preference or priority over another
Holder of a Note.

 

Section
6.07         Rights of Holders of Notes to Receive Payment.

 

Notwithstanding any
other provision of this Indenture, the right of any Holder of a Note to receive payment of principal, premium, if any, and interest
on the Note, on or after the respective due dates expressed in the Note (including in connection with an offer to purchase), or
to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without
the consent of such Holder.

 

Section
6.08         Collection Suit by Trustee.

 

Subject to the Intercreditor
Agreement, if an Event of Default specified in Sections 6.01(1) or (2) hereof occurs and is continuing, the Trustee is authorized
to recover judgment in its own name and as Trustee of an express trust against the Company for the whole amount of principal of,
premium, if any, and interest remaining unpaid on, the Notes and interest on overdue principal and, to the extent lawful, interest
and such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

 

Section
6.09         Trustee May File Proofs of Claim.

 

The Trustee shall be
authorized to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims
of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel) and the Holders of the Notes allowed in any judicial proceedings relative to the Company (or any other obligor upon
the Notes), its creditors or its property and shall be entitled and empowered to collect, receive and distribute any money or other
property payable or deliverable on any such claims and any custodian in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee, and in the event that the Trustee shall consent to the making of such payments directly
to the Holders, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07 hereof. To the extent that the
payment of any such compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts
due the Trustee under Section 7.07 hereof out of the estate in any such proceeding, shall be denied for any reason, payment of
the same shall be secured by a Lien on, and shall be paid out of, any and all distributions, dividends, money, securities and other
properties that the Holders may be entitled to receive in such proceeding whether in liquidation or under any plan of reorganization
or arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept
or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the
rights of any Holder, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

 

    	75

    	 

    

 

Section
6.10         Priorities.

 

Subject to the Intercreditor
Agreement, if the Trustee collects any money pursuant to this Article 6, it shall pay out the money in the following order:

 

First:to
the Trustee, its agents and attorneys for amounts due under Section 7.07 hereof, including payment of all compensation, expenses
and liabilities incurred, and all advances made, by the Trustee and the costs and expenses of collection;

 

Second:to
Holders of Notes for amounts due and unpaid on the Notes for principal, premium, if any, and interest, ratably, without preference
or priority of any kind, according to the amounts due and payable on the Notes for principal, premium, if any, and interest, respectively;
and

 

Third:to
the Company or to such party as a court of competent jurisdiction shall direct.

 

The Trustee may fix
a record date and payment date for any payment to Holders of Notes pursuant to this Section 6.10.

 

Section
6.11         Undertaking for Costs.

 

In any suit for the
enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it
as a Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs
of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees, against any
party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant.
This Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder of a Note pursuant to Section 6.07 hereof, or a suit
by Holders of more than 10% in aggregate principal amount of the then outstanding Notes.

 

ARTICLE
7

TRUSTEE

 

Section
7.01         Duties of Trustee.

 

(a)          If
an Event of Default has occurred and is continuing, the Trustee will exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in its exercise, as a prudent person would exercise or use under the circumstances
in the conduct of such person’s own affairs.

 

(b)          Except
during the continuance of an Event of Default:

 

    	76

    	 

    

 

(1)         the
duties of the Trustee will be determined solely by the express provisions of this Indenture and the Trustee need perform only those
duties that are specifically set forth in this Indenture and no others, and no implied covenants or obligations shall be read into
this Indenture against the Trustee; and

 

(2)         in
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of
this Indenture. However, the Trustee will examine the certificates and opinions to determine whether or not they conform to the
requirements of this Indenture.

 

(c)          The
Trustee may not be relieved from liabilities for its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

 

(1)         this
paragraph does not limit the effect of paragraph (b) of this Section 7.01;

 

(2)         the
Trustee will not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that the
Trustee was negligent in ascertaining the pertinent facts; and

 

(3)         the
Trustee will not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received
by it pursuant to Section 6.05 hereof.

 

(d)          Whether
or not therein expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs
(a), (b), and (c) of this Section 7.01.

 

(e)          No
provision of this Indenture will require the Trustee to expend or risk its own funds or incur any liability. The Trustee will be
under no obligation to exercise any of its rights and powers under this Indenture at the request of any Holders, unless such Holder
has furnished to the Trustee security and indemnity satisfactory to it against any loss, liability or expense.

 

(f)          The
Trustee will not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company.
Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law.

 

Section
7.02         Rights of Trustee.

 

(a)          The
Trustee may conclusively rely upon any document believed by it to be genuine and to have been signed or presented by the proper
Person. The Trustee need not investigate any fact or matter stated in the document.

 

(b)          Before
the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel or both. The Trustee
will not be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate or Opinion
of Counsel. The Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel will be full
and complete authorization and protection from liability in respect of any action taken, suffered or omitted by it hereunder in
good faith and in reliance thereon.

 

(c)          The
Trustee may act through its attorneys and agents and will not be responsible for the misconduct or negligence of any agent appointed
with due care.

 

    	77

    	 

    

 

(d)          The
Trustee will not be liable for any action it takes or omits to take in good faith that it believes to be authorized or within the
rights or powers conferred upon it by this Indenture.

 

(e)          Unless
otherwise specifically provided in this Indenture, any demand, request, direction or notice from the Company will be sufficient
if signed by an Officer of the Company.

 

(f)          The
Trustee will be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction
of any of the Holders unless such Holders have furnished to the Trustee reasonable indemnity or security against the losses, liabilities
and expenses that might be incurred by it in compliance with such request or direction

 

(g)          The
Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness
or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled
to examine the books, records and premises of the Company, personally or by agent or attorney at the sole cost of the Company and
shall incur no liability or additional liability of any kind by reason of such inquiry or investigation.

 

(h)          Except
for any Event of Default occurring pursuant to Section 6.01(1) or 6.01(2), the Trustee shall not be deemed to have notice of any
Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of
any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice
references the Notes and this Indenture.

 

(i)          The
rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified,
are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder.

 

Section
7.03         Individual Rights of Trustee.

 

The Trustee in its
individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Company or any Affiliate
of the Company with the same rights it would have if it were not Trustee. However, in the event that the Trustee acquires any conflicting
interest within the meaning of the TIA it must eliminate such conflict within 90 days, apply to the SEC for permission to continue
as Trustee (if this Indenture has been qualified under the TIA) or resign. Any Agent may do the same with like rights and duties.
The Trustee is also subject to Section 7.10 hereof.

 

Section
7.04         Trustee’s Disclaimer.

 

The Trustee will not
be responsible for and makes no representation as to the validity or adequacy of this Indenture or the Notes, it shall not be accountable
for the Company’s use of the proceeds from the Notes or any money paid to the Company or upon the Company’s direction
under any provision of this Indenture, it will not be responsible for the use or application of any money received by any Paying
Agent other than the Trustee, and it will not be responsible for any statement or recital herein or any statement in the Notes
or any other document in connection with the sale of the Notes or pursuant to this Indenture other than its certificate of authentication.

 

    	78

    	 

    

 

Section
7.05         Notice of Defaults.

 

If a Default or Event
of Default occurs and is continuing and if it is known to a Responsible Officer, the Trustee will mail to Holders of Notes a notice
of the Default or Event of Default within 90 days after such Responsible Officer becomes aware of the Default or Event of Default.
Except in the case of a Default or Event of Default in payment of principal of, premium, if any, or interest on, any Note, the
Trustee may withhold the notice if and so long as a committee of its Responsible Officers in good faith determines that withholding
the notice is in the interests of the Holders of the Notes.

 

Section
7.06         [Reserved].

 

Section
7.07         Compensation and Indemnity.

 

(a)          The
Company will pay to the Trustee from time to time reasonable compensation for its acceptance of this Indenture and services hereunder.
The Trustee’s compensation will not be limited by any law on compensation of a Trustee of an express trust. The Company will
reimburse the Trustee promptly upon request for all reasonable disbursements, advances and expenses incurred or made by it in addition
to the compensation for its services. Such expenses will include the reasonable compensation, disbursements and expenses of the
Trustee’s agents and counsel.

 

(b)          The
Company and the Guarantors will indemnify the Trustee against any and all losses, liabilities or expenses incurred by it arising
out of or in connection with the acceptance or administration of its duties under this Indenture, including the costs and expenses
of enforcing this Indenture against the Company and the Guarantors (including this Section 7.07) and defending itself against any
claim (whether asserted by the Company, the Guarantors, any Holder or any other Person) or liability in connection with the exercise
or performance of any of its powers or duties hereunder, except to the extent any such loss, liability or expense may be attributable
to its negligence or bad faith. The Trustee will notify the Company promptly of any claim for which it may seek indemnity. Failure
by the Trustee to so notify the Company will not relieve the Company or any of the Guarantors of their obligations hereunder. The
Company or such Guarantor will defend the claim and the Trustee will cooperate in the defense. The Trustee may have separate counsel
and the Company will pay the reasonable fees and expenses of such counsel. Neither the Company nor any Guarantor need pay for any
settlement made without its consent, which consent will not be unreasonably withheld.

 

(c)          The
obligations of the Company and the Guarantors under this Section 7.07 will survive the satisfaction and discharge of this Indenture.

 

(d)          To
secure the Company’s and the Guarantors’ payment obligations in this Section 7.07, the Trustee will have a Lien prior
to the Notes on all money or property held or collected by the Trustee, except that held in trust to pay principal and interest
on particular Notes. Such Lien will survive the satisfaction and discharge of this Indenture.

 

(e)          When
the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(9) or (10) hereof occurs, the
expenses and the compensation for the services (including the fees and expenses of its agents and counsel) are intended to constitute
expenses of administration under any Bankruptcy Law.

 

    	79

    	 

    

 

Section
7.08         Replacement of Trustee.

 

(a)          A
resignation or removal of the Trustee and appointment of a successor Trustee will become effective only upon the successor Trustee’s
acceptance of appointment as provided in this Section 7.08.

 

(b)          The
Trustee may resign in writing upon thirty (30) days’ notice at any time and be discharged from the trust hereby created by
so notifying the Company. The Holders of a majority in aggregate principal amount of the then outstanding Notes may remove the
Trustee by so notifying the Trustee and the Company in writing. The Company may remove the Trustee if:

 

(1)         the
Trustee fails to comply with Section 7.10 hereof;

 

(2)         the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy
Law;

 

(3)         a
custodian or public officer takes charge of the Trustee or its property; or

 

(4)         the
Trustee becomes incapable of acting.

 

(c)          If
the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company will promptly appoint
a successor Trustee. Within one year after the successor Trustee takes office, the Holders of a majority in aggregate principal
amount of the then outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the Company.

 

(d)          If
a successor Trustee does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee,
the Company, or the Holders of at least 10% in aggregate principal amount of the then outstanding Notes may petition any court
of competent jurisdiction for the appointment of a successor Trustee.

 

(e)          If
the Trustee, after written request by any Holder who has been a Holder for at least six months, fails to comply with Section 7.10
hereof, such Holder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

 

(f)          A
successor Trustee will deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Thereupon, the
resignation or removal of the retiring Trustee will become effective, and the successor Trustee will have all the rights, powers
and duties of the Trustee under this Indenture. The successor Trustee will mail a notice of its succession to Holders. The retiring
Trustee will promptly transfer all property held by it as Trustee to the successor Trustee; provided all sums owing to the
Trustee hereunder have been paid and subject to the Lien provided for in Section 7.07 hereof. Notwithstanding replacement of the
Trustee pursuant to this Section 7.08, the Company’s obligations under Section 7.07 hereof will continue for the benefit
of the retiring Trustee.

 

Section
7.09         Successor Trustee by Merger, etc.

 

If the Trustee consolidates,
merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation, the successor
corporation without any further act will be the successor Trustee.

 

    	80

    	 

    

 

Section
7.10         Eligibility; Disqualification.

 

There will at all times
be a Trustee hereunder that is a corporation organized and doing business under the laws of the United States of America or of
any state thereof that is authorized under such laws to exercise corporate trustee power, that is subject to supervision or examination
by federal or state authorities and that has a combined capital and surplus of at least $100.0 million as set forth in its most
recent published annual report of condition. No obligor upon the Notes may serve as Trustee.

 

ARTICLE
8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

Section
8.01         Option to Effect Legal Defeasance or Covenant Defeasance.

 

The Company may at
any time, at the option of its Board of Directors evidenced by a resolution set forth in an Officers’ Certificate, elect
to have either Section 8.02 or 8.03 hereof be applied to all outstanding Notes upon compliance with the conditions set forth below
in this Article 8.

 

Section
8.02         Legal Defeasance and Discharge.

 

Upon the Company’s
exercise under Section 8.01 hereof of the option applicable to this Section 8.02, the Company and each of the Guarantors will,
subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be deemed to have been discharged from their obligations
with respect to all outstanding Notes (including the Guarantees) on the date the conditions set forth below are satisfied (hereinafter,
“Legal Defeasance”). For this purpose, Legal Defeasance means that the Company and the Guarantors will be deemed
to have paid and discharged the entire Indebtedness represented by the outstanding Notes (including the Guarantees), which will
thereafter be deemed to be “outstanding” only for the purposes of Section 8.05 hereof and the other Sections of this
Indenture referred to in clauses (1) and (2) below, and to have satisfied all their other obligations under such Notes, the Guarantees
and this Indenture (and the Trustee, on demand of and at the expense of the Company, shall execute proper instruments acknowledging
the same), except for the following provisions which will survive until otherwise terminated or discharged hereunder:

 

(1)         the
rights of Holders of outstanding Notes to receive payments in respect of the principal of, or interest or premium, if any, on,
such Notes when such payments are due from the trust referred to in Section 8.05 hereof;

 

(2)         the
Company’s obligations with respect to such Notes under Article 2 and Section 4.02 hereof;

 

(3)         the
rights, powers, trusts, duties and immunities of the Trustee hereunder and the Company’s and the Guarantors’ obligations
in connection therewith; and

 

(4)         this
Article 8.

 

Subject to compliance
with this Article 8, the Company may exercise its option under this Section 8.02 notwithstanding the prior exercise of its option
under Section 8.03 hereof.

 

    	81

    	 

    

 

Section
8.03         Covenant Defeasance.

 

Upon the Company’s
exercise under Section 8.01 hereof of the option applicable to this Section 8.03, the Company and each of the Guarantors will,
subject to the satisfaction of the conditions set forth in Section 8.04 hereof, be released from each of their obligations under
the covenants contained in Sections 4.03, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.15, 4.16, 4.17, 4.18, 4.19 and 4.20 hereof
and clause (4) of Section 5.01 hereof and the other Note Documents with respect to the outstanding Notes on and after the date
the conditions set forth in Section 8.04 hereof are satisfied (hereinafter, “Covenant Defeasance”), and the
Notes will thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration
or act of Holders (and the consequences of any thereof) in connection with such covenants, but will continue to be deemed “outstanding”
for all other purposes hereunder. For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes and Guarantees,
the Company and the Guarantors may omit to comply with and will have no liability in respect of any term, condition or limitation
set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant
or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to
comply will not constitute a Default or an Event of Default under Section 6.01 hereof, but, except as specified above, the remainder
of this Indenture and such Notes and Guarantees will be unaffected thereby. In addition, upon the Company’s exercise under
Section 8.01 hereof of the option applicable to this Section 8.03, subject to the satisfaction of the conditions set forth in Section
8.04 hereof, Sections 6.01(3) through 6.01(8) and Section 6.01(11) hereof will not constitute Events of Default.

 

Section
8.04         Conditions to Legal or Covenant Defeasance.

 

In order to exercise
either Legal Defeasance or Covenant Defeasance under either Section 8.02 or 8.03 hereof:

 

(1)         the
Company must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders, cash in U.S. dollars, non-callable
Government Securities, or a combination thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized
investment bank, appraisal firm, or firm of independent public accountants, to pay the principal of, and interest and premium,
if any, on the outstanding Notes on the stated date for payment thereof or on the applicable redemption date, as the case may be,
and the Company must specify whether the Notes are being defeased to such stated date for payment or to a particular redemption
date;

 

(2)         in
the case of an election under Section 8.02 hereof, the Company must deliver to the Trustee an Opinion of Counsel confirming that
(a) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (b) since the Issue
Date, there has been a change in the applicable federal income tax law, in either case to the effect that, and based thereon such
Opinion of Counsel will confirm that, the Holders of the outstanding Notes will not recognize income, gain or loss for federal
income tax purposes as a result of such Legal Defeasance and will be subject to federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if such Legal Defeasance had not occurred;

 

(3)         in
the case of an election under Section 8.03 hereof, the Company must deliver to the Trustee an Opinion of Counsel confirming that
the Holders of the outstanding Notes will not recognize income, gain or loss for federal income tax purposes as a result of such
Covenant Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as
would have been the case if such Covenant Defeasance had not occurred;

 

(4)         no
Default or Event of Default shall have occurred and be continuing on the date of such deposit (other than a Default or Event of
Default resulting from the borrowing of funds to be applied to such deposit);

 

    	82

    	 

    

 

(5)         such
Legal Defeasance or Covenant Defeasance will not result in a breach or violation of, or constitute a default under, any material
agreement or instrument (other than this Indenture) to which the Company or any of its Guarantors is a party or by which the Company
or any of its Guarantors is bound;

 

(6)         the
Company must deliver to the Trustee an Officers’ Certificate stating that the deposit was not made by the Company with the
intent of preferring the Holders of Notes over the other creditors of the Company with the intent of defeating, hindering, delaying
or defrauding any creditors of the Company or others; and

 

(7)         the
Company must deliver to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions
precedent relating to the Legal Defeasance or the Covenant Defeasance have been complied with.

 

The Collateral will
be released from the Lien securing the Notes and the Guarantees, as provided in Section 13.06 upon Legal Defeasance or Covenant
Defeasance in accordance with the provisions of this Section 8.04.

 

Section
8.05         Deposited Money and Government Securities to be Held in Trust;
Other Miscellaneous Provisions.

 

Subject to Section
8.06 hereof, all money and non-callable Government Securities (including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively for purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04
hereof in respect of the outstanding Notes will be held in trust and applied by the Trustee, in accordance with the provisions
of such Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as
Paying Agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of
principal, premium, if any, and interest, but such money need not be segregated from other funds except to the extent required
by law.

 

The Company will pay
and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or non-callable Government
Securities deposited pursuant to Section 8.04 hereof or the principal and interest received in respect thereof other than any such
tax, fee or other charge which by law is for the account of the Holders of the outstanding Notes.

 

Notwithstanding anything
in this Article 8 to the contrary, the Trustee will deliver or pay to the Company from time to time upon the request of the Company
any money or non-callable Government Securities held by it as provided in Section 8.04 hereof which, in the opinion of a nationally
recognized investment bank, appraisal firm or firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee (which may be the opinion delivered under Section 8.04(1) hereof), are in excess of the amount thereof
that would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

 

    	83

    	 

    

 

Section
8.06         Repayment to Company.

 

Any money deposited
with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of, premium, if any,
or interest on, any Note and remaining unclaimed for two years after such principal, premium, if any, or interest has become due
and payable shall be paid to the Company on its request or (if then held by the Company) will be discharged from such trust; and
the Holder of such Note will thereafter be permitted to look only to the Company for payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, will thereupon
cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at
the expense of the Company cause to be published once, in the New York Times or The Wall Street Journal, notice that such money
remains unclaimed and that, after a date specified therein, which will not be less than 30 days from the date of such notification
or publication, any unclaimed balance of such money then remaining will be repaid to the Company.

 

Section
8.07         Reinstatement.

 

If the Trustee or Paying
Agent is unable to apply any U.S. dollars or non-callable Government Securities in accordance with Section 8.02 or 8.03 hereof,
as the case may be, by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then the Company’s and the Guarantors’ obligations under this Indenture and the Notes
and the Guarantees and the other Note Documents will be revived and reinstated as though no deposit had occurred pursuant to Section
8.02 or 8.03 hereof until such time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section
8.02 or 8.03 hereof, as the case may be; provided, however, that, if the Company makes any payment of principal of, premium,
if any, or interest on, any Note following the reinstatement of its obligations, the Company will be subrogated to the rights of
the Holders of such Notes to receive such payment from the money held by the Trustee or Paying Agent.

 

ARTICLE
9

AMENDMENT, SUPPLEMENT AND WAIVER

 

Section
9.01         Without Consent of Holders of Notes.

 

Notwithstanding Section
9.02 of this Indenture, the Company, the Guarantors, the Trustee and the Collateral Trustee, as applicable, may amend or supplement
this Indenture or the other Note Documents without the consent of any Holder of a Note:

 

(1)         to
cure any ambiguity, defect or inconsistency;

 

(2)         to
provide for uncertificated Notes in addition to or in place of certificated Notes;

 

(3)         to
provide for the assumption of the Company’s or a Guarantor’s obligations to the Holders of the Notes and Guarantees
by a successor to the Company or such Guarantor pursuant to Article 5 hereof;

 

(4)         to
make any change that would provide any additional rights or benefits to the Holders of the Notes or that does not adversely affect
the legal rights of any Holder hereunder or under the other Note Documents provided that any change to conform the text
of this Indenture or any other Note Document to any provision of the “Description of Notes” section of the Offering
Memorandum will not be deemed to adversely affect the legal rights of any Holder under this Indenture or other Note Documents;

 

(5)         with
respect to the Security Documents establishing Parity Liens, as provided in the Intercreditor Agreement.

 

(6)         to
provide for the issuance of Additional Notes in accordance with the limitations set forth in this Indenture as of the date hereof;

 

    	84

    	 

    

 

(7)         to
add any additional Guarantor or Collateral or to evidence the release of any Guarantor from its Guarantee or release of any Liens,
in each case in accordance with the terms of this Indenture or the Note Documents, as applicable;

 

(8)         to
make, complete or confirm any grant of Collateral permitted or required by this Indenture or any of the Security Documents establishing
Parity Liens;

 

(9)         to
comply with requirements of the SEC to effect or maintain qualifications of this Indenture under the TIA; or

 

(10)        to
evidence or provide for acceptance of appointment of a successor Trustee.

 

In addition, the Intercreditor
Agreement and the Collateral Trust Agreement may be amended in accordance with their terms and without the consent of any Holder
or the Trustee with the consent of the parties thereto or otherwise in accordance with their terms, including to add additional
Indebtedness as Priority Lien Debt, Parity Lien Debt or Junior Lien Debt and add other parties (or any authorized agent thereof
or trustee therefor) holding such Indebtedness thereto and to establish that the Liens on any Collateral securing such Indebtedness
shall rank equally with the Liens on such Collateral securing the other Priority Lien Debt, Parity Lien Debt or Junior Lien Debt,
as applicable, then outstanding. The Intercreditor Agreement also provides that in certain circumstances the Security Documents
may be amended automatically without the consent of Holders of Notes, the Trustee or the Collateral Trustee in connection with
any amendments to corresponding security documents creating Priority Liens.

 

Upon the request of
the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amended or supplemental
indenture, and upon receipt by the Trustee of the documents described in Section 9.06 hereof, the Trustee will join with the Company
and the Guarantors in the execution of any amended or supplemental indenture authorized or permitted by the terms of this Indenture
and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee will not be obligated
to enter into such amended or supplemental indenture that affects its own rights, duties or immunities under this Indenture or
otherwise.

 

Section
9.02         With Consent of Holders of Notes.

 

Except as provided
above in Section 9.01 and below in this Section 9.02, the Company, the Guarantors, the Trustee and Collateral Trustee, as applicable,
may amend or supplement this Indenture or the other Note Documents with the consent of the Holders of at least a majority in aggregate
principal amount of the then outstanding Notes voting as a single class (including, without limitation, consents obtained in connection
with a tender offer or exchange offer for, or purchase of, the Notes), and, subject to Sections 6.04 and 6.07 hereof, any existing
Default or Event of Default or compliance with any provision of this Indenture or the other Note Documents may be waived with the
consent of the Holders of a majority in aggregate principal amount of the then outstanding Notes voting as a single class (including,
without limitation, consents obtained in connection with a tender offer or exchange offer for, or purchase of, the Notes).
Section 2.08 hereof shall determine which Notes are considered to be “outstanding” for purposes of this Section
9.02. However, without the consent of each Holder affected, an amendment, supplement or waiver may not (with respect to any Notes
held by a non-consenting Holder):

 

(1)         reduce
the principal amount of Notes whose Holders must consent to an amendment, supplement or waiver;

 

    	85

    	 

    

 

(2)         reduce
the principal of or change the fixed maturity of any Note or alter or waive any of the provisions with respect to the redemption
or repurchase of the Notes (other than notice provisions or the provisions of Sections 3.09, 4.10, 4.15 and 4.20 hereof);

 

(3)         reduce
the rate of or change the time for payment of interest, including default interest, on any Note;

 

(4)         waive
a Default or Event of Default in the payment of principal of, or premium, if any, or interest on, the Notes (except a rescission
of acceleration of the Notes by the Holders of at least a majority in aggregate principal amount of the then outstanding Notes
and a waiver of the payment default that resulted from such acceleration);

 

(5)         make
any Note payable in currency other than that stated in the Notes;

 

(6)         make
any change in the provisions of this Indenture relating to waivers of past Defaults or the rights of Holders of Notes to receive
payments of principal of, or interest or premium, if any, on, the Notes (other than as permitted in clause (7) below);

 

(7)         waive
a redemption or repurchase payment with respect to any Note (other than a payment required by Sections 3.09, 4.10, 4.15 or 4.20
hereof);

 

(8)         release
any Guarantor from any of its obligations under its Guarantee or this Indenture, except in accordance with the terms of this Indenture;
or

 

(9)         make
any change in the preceding amendment, supplement and waiver provisions.

 

In addition, any amendment
or supplement to, or waiver of, the provisions of this Indenture or any Security Document establishing Parity Liens that has the
effect of releasing all or substantially all of the Collateral from the Liens securing the Notes will require the consent of Holders
of at least 662⁄3% in aggregate principal amount of the Notes then outstanding.

 

Section
9.03         [Reserved].

 

Section
9.04         Revocation and Effect of Consents.

 

Until an amendment,
supplement or waiver becomes effective, a consent to it by a Holder of a Note is a continuing consent by the Holder of a Note and
every subsequent Holder of a Note or portion of a Note that evidences the same debt as the consenting Holder’s Note, even
if notation of the consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of a Note may revoke
the consent as to its Note if the Trustee receives written notice of revocation before the date the amendment, supplement or waiver
becomes effective. An amendment, supplement or waiver becomes effective in accordance with its terms and thereafter binds every
Holder.

 

The Company may, but
shall not be obligated to, fix a record date for the purpose of determining the Holders entitled to consent to any amendment, supplement
or waiver. If a record date is fixed, then notwithstanding the provisions of the immediately preceding paragraph, those Persons
who were Holders at such record date (or their duly designated proxies), and only those Persons, shall be entitled to consent to
such amendment or waiver or to revoke any consent previously given, whether or not such Persons continue to be Holders after such
record date.

 

    	86

    	 

    

 

Section
9.05         Notation on or Exchange of Notes.

 

The Trustee may place
an appropriate notation about an amendment, supplement or waiver on any Note thereafter authenticated. The Company in exchange
for all Notes may issue and the Trustee shall, upon receipt of an Authentication Order, authenticate new Notes that reflect the
amendment, supplement or waiver.

 

Failure to make the
appropriate notation or issue a new Note will not affect the validity and effect of such amendment, supplement or waiver.

 

Section
9.06         Trustee to Sign Amendments, etc.

 

The Trustee will sign
any amended or supplemental indenture authorized pursuant to this Article 9 if the amendment or supplement does not adversely affect
the rights, duties, liabilities or immunities of the Trustee. The Company may not sign an amended or supplemental indenture until
the Board of Directors of the Company approves it. In executing any amended or supplemental indenture, the Trustee will be entitled
to receive and will be fully protected in relying in good faith upon, in addition to the documents required by Section 11.04 hereof,
an Officers’ Certificate and an Opinion of Counsel stating that the execution of such amended or supplemental indenture is
authorized or permitted by this Indenture.

 

ARTICLE
10

satisfaction and discharge

 

Section
10.01         Satisfaction and Discharge.

 

This Indenture and
the other Note Documents will be discharged and will cease to be of further effect as to all Notes issued hereunder, when:

 

(1)         either:

 

(a)          all
Notes that have been authenticated, except lost, stolen or destroyed Notes that have been replaced or paid and Notes for whose
payment money has been deposited in trust and thereafter repaid to the Company, have been delivered to the Trustee for cancellation;
or

 

(b)          all
Notes that have not been delivered to the Trustee for cancellation have become due and payable or will become due and payable within
one year by reason of the mailing of a notice of redemption or otherwise and the Company or any Guarantor has irrevocably deposited
or caused to be deposited with the Trustee as trust funds in trust solely for the benefit of the Holders, (i) cash in U.S. dollars,
(ii) non-callable Government Securities, or (iii) a combination thereof, in such amounts as will be sufficient (in the opinion
of a nationally recognized investment bank, appraisal firm or firm of independent public accountants, but solely with respect to
clauses (ii) and (iii)), without consideration of any reinvestment of interest, to pay and discharge the entire Indebtedness on
the Notes not delivered to the Trustee for cancellation for principal, interest and premium, if any, to the date of maturity or
redemption;

 

(2)         the
Company or any Guarantor has paid or caused to be paid all other sums payable by it under this Indenture;

 

    	87

    	 

    

 

(3)         the
deposit will not result in a breach or violation of, or constitute a default under, any material agreement or instrument (other
than this Indenture or the other Note Documents) of the Company or any Guarantor; and

 

(4)         the
Company has delivered irrevocable instructions to the Trustee under this Indenture to apply the deposited money toward the payment
of the Notes at fixed maturity or on the redemption date, as the case may be.

 

In addition, the Company must deliver an
Officers’ Certificate and an Opinion of Counsel to the Trustee stating that all conditions precedent to satisfaction and
discharge have been satisfied.

 

Notwithstanding the
satisfaction and discharge of this Indenture, if money has been deposited with the Trustee pursuant to subclause (b) of clause
(1) of this Section 10.01, the provisions of Sections 10.02 and 8.06 hereof will survive. In addition, nothing in this Section
10.01 will be deemed to discharge those provisions of Section 7.07 hereof, that, by their terms, survive the satisfaction and discharge
of this Indenture.

 

Section
10.02         Application of Trust Money.

 

Subject to the provisions
of Section 8.06 hereof, all money deposited with the Trustee pursuant to Section 10.01 hereof shall be held in trust and applied
by it, in accordance with the provisions of the Notes and this Indenture, to the payment, either directly or through any Paying
Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of
the principal (and premium, if any) and interest for whose payment such money has been deposited with the Trustee; but such money
need not be segregated from other funds except to the extent required by law.

 

If the Trustee or Paying
Agent is unable to apply any money or Government Securities in accordance with Section 10.01 hereof by reason of any legal proceeding
or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such
application, the Company’s and any Guarantor’s obligations under this Indenture and the Notes shall be revived and
reinstated as though no deposit had occurred pursuant to Section 10.01 hereof; provided that if the Company has made any
payment of principal of, premium, if any, or interest on, any Notes because of the reinstatement of its obligations, the Company
shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money or Government Securities
held by the Trustee or Paying Agent.

 

ARTICLE
11

MISCELLANEOUS

 

Section
11.01         [Reserved].

 

Section
11.02         Notices.

 

Any notice or communication
by the Company, any Guarantor or the Trustee to the others is duly given if in writing and delivered in Person or by first class
mail (registered or certified, return receipt requested), facsimile transmission or overnight air courier guaranteeing next day
delivery, to the others’ address:

 

    	88

    	 

    

 

If to the Company and/or any Guarantor:

ENERGY XXI GULF COAST, INC.

1021 Main

Suite 2626

Houston, Texas 77002

Attention: Chief Financial Officer

 

If to the Trustee:

 

U.S. Bank National Association

5555 San Felipe Street, 11th Floor

Houston, TX 77056

Facsimile No.: (713) 235-9213

Attention: Corporate Trust Services

 

The Company, any Guarantor
or the Trustee, by notice to the others, may designate additional or different addresses for subsequent notices or communications.

 

All notices and communications
(other than those sent to Holders) will be deemed to have been duly given: at the time delivered by hand, if personally delivered;
five Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if transmitted by
facsimile; and the next Business Day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day
delivery.

 

If the Notes are in
definitive certificated form, any notice or communication to a Holder will be mailed by first class mail, certified or registered,
return receipt requested, or by overnight air courier guaranteeing next day delivery to its address shown on the register kept
by the Registrar. While the Notes are in book-entry, any notice or communication to a Holder will be sent pursuant to the customary
procedures of the Depository. Failure to send notice or communication to a Holder or any defect in it will not affect its sufficiency
with respect to other Holders.

 

If a notice or communication
is sent in the manner provided above within the time prescribed, it is duly given, whether or not the addressee receives it.

 

If the Company mails
a notice or communication to Holders, it will mail a copy to the Trustee and each Agent at the same time.

 

Notwithstanding any
other provision of this Indenture or any Note, where this Indenture or any Note provides for notice of any event (including any
notice of redemption) to a Holder of a Global Note (whether by mail or otherwise), such notice shall be sufficiently given if given
to the Depositary for such Note (or its designee), pursuant to the customary procedures of such Depositary.

 

Section
11.03         Communication by Holders of Notes with Other Holders of Notes.

 

Holders may communicate
with other Holders with respect to their rights under this Indenture or the Notes.

 

    	89

    	 

    

 

Section
11.04         Certificate and Opinion as to Conditions Precedent.

 

Upon any request or
application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee:

 

(1)         an
Officers’ Certificate in form and substance reasonably satisfactory to the Trustee (which must include the statements set
forth in Section 11.05 hereof) stating that, in the opinion of the signers, all conditions precedent and covenants, if any, provided
for in this Indenture relating to the proposed action have been satisfied; and

 

(2)         an
Opinion of Counsel in form and substance reasonably satisfactory to the Trustee (which must include the statements set forth in
Section 11.05 hereof) stating that, in the opinion of such counsel, all such conditions precedent and covenants have been satisfied.

 

Section
11.05         Statements Required in Certificate or Opinion.

 

Each certificate or
opinion with respect to compliance with a condition or covenant provided for in this Indenture and must include:

 

(1)         a
statement that the Person making such certificate or opinion has read such covenant or condition;

 

(2)         a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained
in such certificate or opinion are based;

 

(3)         a
statement that, in the opinion of such Person, he or she has made such examination or investigation as is necessary to enable him
or her to express an informed opinion as to whether or not such covenant or condition has been satisfied; and

 

(4)         a
statement as to whether or not, in the opinion of such Person, such condition or covenant has been satisfied.

 

Section
11.06         Rules by Trustee and Agents.

 

The Trustee may make
reasonable rules for action by or at a meeting of Holders. The Registrar or Paying Agent may make reasonable rules and set reasonable
requirements for its functions.

 

Section
11.07         No Personal Liability of Directors, Officers, Employees and Stockholders.

 

No director, officer,
employee, incorporator or stockholder or other owner of Capital Stock of the Company or any Guarantor, as such, will have any liability
for any obligations of the Company or the Guarantors under the Notes, this Indenture, any other Note Document or the Guarantees
or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes by accepting
a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes.

 

Section
11.08         Governing Law.

 

THE INTERNAL LAW OF
THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES AND THE GUARANTEES.

 

    	90

    	 

    

 

Section
11.09         No Adverse Interpretation of Other Agreements.

 

This Indenture may
not be used to interpret any other indenture, loan or debt agreement of the Company or its Subsidiaries or of any other Person.
Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

 

Section
11.10         Successors.

 

All agreements of the
Company in this Indenture and the Notes will bind its successors. All agreements of the Trustee in this Indenture will bind its
successors. All agreements of each Guarantor in this Indenture will bind its successors, except as otherwise provided in Section
12.05 hereof.

 

Section
11.11         Severability.

 

In case any provision
in this Indenture or in the Notes is invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions will not in any way be affected or impaired thereby.

 

Section
11.12         Counterpart Originals.

 

The parties may sign
any number of copies of this Indenture. Each signed copy will be an original, but all of them together represent the same agreement.
The exchange of copies of this Indenture and of signature pages by facsimile or portable document format (PDF) transmission shall
constitute effective execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the original
Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original
signatures for all purposes.

 

Section
11.13         Table of Contents, Headings, etc.

 

The Table of Contents,
Cross-Reference Table and Headings of the Articles and Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part of this Indenture and will in no way modify or restrict any of the terms or provisions hereof.

 

Section
11.14         Patriot Act.

 

The parties hereto
acknowledge that in accordance with Section 326 of the U.S.A. Patriot Act, the Trustee, like all financial institutions, and in
order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies
each person or legal entity that establishes a relationship or opens an account with the Trustee. The parties to this Indenture
agree that they will provide the Trustee with such information within their possession or control as it may reasonably request
in order for the Trustee to satisfy the requirements of the U.S.A. Patriot Act.

 

ARTICLE
12

GUARANTEES

 

Section
12.01         Guarantee.

 

(a)          Subject
to this Article 12, each of the Guarantors hereby, jointly and severally guarantees to each Holder of a Note authenticated and
delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of
this Indenture, the Notes or the obligations of the Company hereunder or thereunder, that:

 

    	91

    	 

    

 

(1)         the
principal of, premium, if any, and interest on, the Notes will be promptly paid in full when due, whether at maturity, by acceleration,
upon repurchase or redemption or otherwise, and interest on the overdue principal of, premium and (to the extent permitted by law)
interest, if any, on the Notes and all other obligations of the Company to the Holders or the Trustee under this Indenture or the
Notes will be promptly paid in full or performed, all in accordance with the terms of this Indenture and the Notes; and

 

(2)         in
case of any extension of time of payment or renewal of any Notes or any of such other obligations, the same will be promptly paid
in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration,
upon repurchase or redemption or otherwise.

 

Failing payment when
so due of any amount so guaranteed or any performance so guaranteed for whatever reason, the Guarantors will be jointly and severally
obligated to pay the same immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of collection.

 

(b)          The
Guarantors hereby agree that their obligations hereunder are unconditional, irrespective of the validity, regularity or enforceability
of the Notes or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes
with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same
or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a Guarantor. Each Guarantor
hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy
of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever and covenants
that this Guarantee will not be discharged except by complete performance of the obligations contained in the Notes and this Indenture.

 

(c)          If
any Holder or the Trustee is required by any court or otherwise to return to the Company, the Guarantors or any custodian, trustee,
liquidator or other similar official acting in relation to any of the Company or the Guarantors, any amount paid by the Company
or any Guarantor to the Trustee or such Holder, this Guarantee, to the extent theretofore discharged, will be reinstated in full
force and effect.

 

(d)          Each
Guarantor agrees that it will not be entitled to any right of subrogation in relation to the Holders in respect of any obligations
guaranteed hereby until payment in full of all obligations guaranteed hereby. Each Guarantor further agrees that, as between the
Guarantors, on the one hand, and the Holders and the Trustee, on the other hand, (1) the maturity of the obligations guaranteed
hereby may be accelerated as provided in Article 6 hereof for the purposes of this Guarantee, notwithstanding any stay, injunction
or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (2) in the event of any
declaration of acceleration of such obligations as provided in Article 6 hereof, such obligations (whether or not due and payable)
will forthwith become due and payable by the Guarantor for the purpose of this Guarantee. The Guarantors will have the right to
seek contribution from any non-paying Guarantor so long as the exercise of such right does not impair the rights of the Holders
under the Guarantee.

 

    	92

    	 

    

 

Section
12.02         Limitation on Guarantor Liability.

 

(a)          Each
Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the intention of all such parties that the Guarantee
of such Guarantor not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance
Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to any Guarantee. To effectuate
the foregoing intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree that the obligations of such Guarantor
will be limited to the maximum amount that will, after giving effect to all other contingent and fixed liabilities of such Guarantor
that are relevant under such laws, and after giving effect to any collections from, rights to receive contribution from or payments
made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under this Article 12, result
in the obligations of such Guarantor under its Guarantee not constituting a fraudulent transfer or fraudulent conveyance under
federal or state law and not otherwise be void or voidable under any similar laws affecting the rights of creditors generally.

 

(b)          Notwithstanding
anything herein contained to the contrary, no Property of Intermediate Holdco, other than the Collateral of Intermediate Holdco
pledged as collateral pursuant to the Intermediate Holdco Pledge Agreement and the Intermediate Holdco Security Agreement (collectively,
the “Intermediate Holdco Collateral”), shall be sold, levied upon or otherwise used to satisfy any judgment
rendered in connection with any action brought against Intermediate Holdco with respect to its Guarantee. To the extent that the
Intermediate Holdco Collateral is not sufficient to fully discharge and satisfy the Obligations of Intermediate Holdco hereunder,
the Intermediate Holdco will not be personally liable for any such deficiency and the Trustee shall not seek a deficiency or personal
judgment against Intermediate Holdco for payment of the Obligations of Intermediate Holdco evidenced by this Guarantee. The Trustee’s
recourse under this Guarantee shall be limited solely to its rights as a creditor secured by liens in the Intermediate Holdco Collateral.
Notwithstanding the provisions of this Section 12.02(b) to the contrary, nothing contained in herein or any other Note Document
shall be construed to (i) impair or limit the rights of the Collateral Trustee arising under the Intermediate Holdco Pledge Agreement
and the Intermediate Holdco Security Agreement or any other Security Document to which Intermediate Holdco is a party; (ii) impair
or limit any of the obligations of Intermediate Holdco under the Intermediate Holdco Pledge Agreement and the Intermediate Holdco
Security Agreement or any other Note Document to which it is a party; (iii) impair or limit the validity of the indebtedness evidenced
by the other Note Documents or prevent the taking of any action permitted by law against the Company or any other Guarantor pursuant
to the terms of the Note Documents to which the Company or such Guarantor is a party; (iv) prevent the commencement of any action,
suit or proceeding against any Person (or prevent the service of papers under any Person) for the purpose of obtaining jurisdiction
over Intermediate Holdco, (v) prevent the Collateral Trustee or any other holder of Parity Lien Obligations from exercising and
enforcing, consistent with the provisions of this Section 12.02(b), any other remedy allowed at law or in equity or by statute
or by the terms of this Article 12, the Intermediate Holdco Pledge Agreement or the Intermediate Holdco Security Agreement, or
(vi) prevent the Collateral Trustee or any other holder of Parity Lien Obligations from recovering from Intermediate Holdco (or
the Company or any other Guarantor), or limit the Collateral Trustee’s or such other Parity Lien Obligations holder’s
recourse against Intermediate Holdco (or the Company or any other Guarantor) for any and all funds, damages, losses, expenses,
costs or other similar amounts (including, without limitation, reasonable attorneys’ fees and expenses) incurred by the Collateral
Trustee or such other holder of Parity Lien Obligations as a result of any act or omission constituting willful misconduct or gross
negligence, any fraudulent act or omission, or any intentional breach of this Article 12, the Intermediate Holdco Pledge Agreement
or the Intermediate Holdco Security Agreement, in each case as determined by a court of competent jurisdiction in a final, non-appealable
judgment.

 

    	93

    	 

    

 

Section
12.03         Execution and Delivery of Guarantee.

 

To evidence its Guarantee
set forth in Section 12.01 hereof, each Guarantor hereby agrees that a notation of such Guarantee substantially in the form attached
as Exhibit D hereto will be signed by an Officer of such Guarantor (by manual or facsimile signature) on each Note authenticated
and delivered by the Trustee and that this Indenture will be executed on behalf of such Guarantor by one of its Officers.

 

Each Guarantor hereby
agrees that its Guarantee set forth in Section 12.01 hereof will remain in full force and effect notwithstanding any failure to
endorse on each Note a notation of such Guarantee.

 

If an Officer whose
signature is on this Indenture or on the Guarantee no longer holds that office at the time the Trustee authenticates the Note on
which a Guarantee is endorsed, the Guarantee will be valid nevertheless.

 

The delivery of any
Note by the Trustee, after the authentication thereof hereunder, will constitute due delivery of the Guarantee set forth in this
Indenture on behalf of the Guarantors.

 

If required by Section
4.17 hereof, the Company will certain such Material Domestic Subsidiaries to become Subsidiary Guarantors subject to this Article
12.

 

Section
12.04         Guarantors May Consolidate, etc., on Certain Terms.

 

Except as otherwise
provided in Section 12.05 hereof, no Subsidiary Guarantor may sell or otherwise dispose of all or substantially all of its properties
or assets to, or consolidate with or merge with or into (whether or not such Subsidiary Guarantor is the surviving Person) another
Person, other than the Company or another Subsidiary Guarantor, unless:

 

(1)         immediately
after giving effect to such transaction (and treating any Indebtedness which becomes an obligation of the surviving Person or any
Restricted Subsidiary as a result of such transaction as having been incurred by the surviving Person or such Restricted Subsidiary
at the time of such transaction), no Default or Event of Default exists; and

 

(2)         either:

 

(a)          (i)
the Person acquiring the properties or assets in any such sale or other disposition or the Person formed by or surviving any such
consolidation or merger (if other than a Subsidiary Guarantor) unconditionally assumes all the obligations of that Subsidiary Guarantor,
pursuant to a supplemental indenture substantially in the form of Exhibit E hereto and such other agreements as are reasonably
satisfactory to the Trustee and the Collateral Trustee, as applicable, under the Notes, this Indenture and the other Note Documents
on terms set forth therein and (ii) any Collateral owned by or transferred to the Person acquiring the properties or assets in
any such sale or other disposition or the Person formed by or surviving any such consolidation or merger (if other than the Subsidiary
Guarantor) shall continue to constitute Collateral under the Note Documents, subject to the Parity Liens; or

 

(b)          such
sale or other disposition does not violate Section 4.10 hereof.

 

    	94

    	 

    

 

In the case of any such
consolidation, merger, sale or conveyance and upon the assumption by the successor Person, by supplemental indenture, executed
and delivered to the Trustee and satisfactory in form to the Trustee, of the Guarantee endorsed upon the Notes and the due and
punctual performance of all of the covenants and conditions of this Indenture to be performed by the Subsidiary Guarantor, such
successor Person will succeed to and be substituted for such Subsidiary Guarantor with the same effect as if it had been named
herein as a Subsidiary Guarantor. Such successor Person thereupon may cause to be signed any or all of the Guarantees to be endorsed
upon all of the Notes issuable hereunder which theretofore shall not have been signed by the Company and delivered to the Trustee.
All the Guarantees so issued will in all respects have the same legal rank and benefit under this Indenture as the Guarantees theretofore
and thereafter issued in accordance with the terms of this Indenture as though all of such Guarantees had been issued at the date
of the execution hereof.

 

Except as set forth in
Articles 4 and 5 hereof, and notwithstanding clauses 2(a) and (b) above, nothing contained in this Indenture or in any of the Notes
will prevent any consolidation or merger of a Subsidiary Guarantor with or into the Company or another Subsidiary Guarantor, or
will prevent any sale or conveyance of the property of a Subsidiary Guarantor as an entirety or substantially as an entirety to
the Company or another Subsidiary Guarantor.

 

Section
12.05       Releases.

 

(a)          The
Guarantee of a Subsidiary Guarantor will be released:

 

(1)         in
connection with any sale or other disposition of all or substantially all of the properties or assets of such Subsidiary Guarantor
(including by way of merger or consolidation) to a Person that is not (either before or after giving effect to such transaction)
the Company or a Subsidiary of the Company, if the sale or other disposition does not violate Section 4.10 hereof;

 

(2)         in
connection with any sale or other disposition of all of the Capital Stock of such Subsidiary Guarantor to a Person that is not
(either before or after giving effect to such transaction) the Company or a Subsidiary of the Company, if the sale or other disposition
does not violate Section 4.10 hereof;

 

(3)         if
the Company designates such Subsidiary Guarantor to be an Unrestricted Subsidiary in accordance with Section 4.18 hereof;

 

(4)         if
such Subsidiary Guarantor ceases to Guarantee any other Indebtedness of the Company or another Subsidiary Guarantor for borrowed
money or under a Credit Facility and is no longer an obligor in respect of such Indebtedness; or

 

(5)         upon
Legal Defeasance or Covenant Defeasance in accordance with Article 8 hereof or satisfaction and discharge of this Indenture in
accordance with Article 10 hereof.

 

Upon delivery by the Company
to the Trustee of an Officers’ Certificate to the effect that any of the conditions described in the foregoing clauses (a)(1)
- (a)(5) has occurred, the Trustee shall execute any documents reasonably requested by the Company in order to evidence the release
of any Subsidiary Guarantor from its obligations under its Guarantee. Any Subsidiary Guarantor not released from its obligations
under its Guarantee as provided in this Section 12.05 will remain liable for the full amount of principal of and interest and premium,
if any, on the Notes and for the other obligations of any such Subsidiary Guarantor under this Indenture as provided in this Article
12.

 

(b)          The
Guarantee of Intermediate Holdco will be released:

 

(1)         if
Intermediate Holdco ceases to guarantee any other Indebtedness of the Company or a Subsidiary Guarantor for borrowed money or under
a Credit Facility; or

 

    	95

    	 

    

  

(2)         upon
Legal Defeasance or Covenant Defeasance in accordance with Article 8 hereof or satisfaction and discharge of this Indenture in
accordance with Article 10 hereof.

 

Upon delivery by the Company
to the Trustee of an Officers’ Certificate to the effect that any of the conditions described in the foregoing clauses (b)(1)
- (b)(2) has occurred, the Trustee shall execute any documents reasonably requested by the Company in order to evidence the release
of Intermediate Holdco from its obligations under its Guarantee.

 

(c)          The
Guarantee of Parent will be released:

 

(1)         if
the Company ceases to be a Subsidiary of Parent pursuant to a transaction that complies with Section 4.15; or

 

(2)         upon
Legal Defeasance or Covenant Defeasance in accordance with Article 8 hereof or satisfaction and discharge of this Indenture in
accordance with Article 10 hereof.

 

Upon delivery by the Company
to the Trustee of an Officers’ Certificate to the effect that any of the conditions described in the foregoing clauses (c)(1)
- (c)(2) has occurred, the Trustee shall execute any documents reasonably requested by the Company in order to evidence the release
of Parent from its obligations under its Guarantee.

 

ARTICLE
13

COLLATERAL
AND SECURITY

 

Section
13.01       Security Interest.

 

(a)          The
due and punctual payment of the principal of, premium on, if any, and interest if any, on the Notes and the Obligations of Intermediate
Holdco and the Subsidiary Guarantors under the Guarantees, when and as the same shall be due and payable, whether on an interest
payment date, at maturity, by acceleration, repurchase, redemption or otherwise, and interest on the overdue principal of, premium
on, if any, and interest, if any (to the extent permitted by law), on the Notes and the Obligations of Intermediate Holdco and
the Subsidiary Guarantors under the Guarantees and performance of all other obligations of the Company, Intermediate Holdco and
the Subsidiary Guarantors to the Holders of Notes or the Trustee under the Note Documents, according to the terms hereunder or
thereunder (collectively, the “Notes Obligations”), are secured, as provided in the Security Documents. The
Company, Intermediate Holdco and each of the Subsidiary Guarantors consent and agree to be bound by the terms of the Security Documents
to which they are parties, as the same may be in effect from time to time, and agree to perform their obligations thereunder in
accordance therewith. The Company, Intermediate Holdco and the Subsidiary Guarantors hereby agree that the Collateral Trustee shall
hold the Collateral on behalf of and for the benefit of all of the Holders of Notes and the other holders of Parity Lien Obligations.

 

(b)          Each
Holder of Notes, by its acceptance thereof and of the Guarantees, consents and agrees to the terms of the Intercreditor Agreement
and the Security Documents (including, without limitation, the provisions providing for foreclosure and release of Collateral and
amendments to the Security Documents) as the same may be in effect or may be amended from time to time in accordance with their
terms and authorizes and appoints U.S. Bank National Association as the Trustee and as the Collateral Trustee. The Trustee hereby
authorizes and appoints U.S. Bank National Association as Collateral Trustee and each Holder of Notes and the Trustee direct the
Collateral Trustee to enter into the Security Documents (including any amendments thereto contemplated by Section 7.1 of the Collateral
Trust Agreement and any security documents to secure additional Parity Lien Debt in accordance with Section 5.3 of the Collateral
Trust Agreement) and to perform its obligations and exercise its rights thereunder in accordance therewith, subject to the terms
and conditions thereof, including, without limitation, the limitations on duties of the Collateral Trustee provided in Section
5.12 of the Collateral Trust Agreement. The Trustee, the Collateral Trustee and each Holder of Notes, by accepting the Notes and
the Guarantees of Intermediate Holdco and the Subsidiary Guarantors, acknowledges that, as more fully set forth in the Security
Documents, the Collateral as now or hereafter constituted shall be held for the benefit of all the holders of Parity Lien Obligations,
subject to the Intercreditor Agreement, the Collateral Trustee and the Trustee, and the Lien of this Indenture and the Security
Documents is subject to and qualified and limited in all respects by the Intercreditor Agreement, the Security Documents and actions
that may be taken thereunder.

 

    	96

    	 

    

 

 

Section
13.02       Post-Issue Date Collateral Requirements.

 

(a)          Within
60 days of the Issue Date, the Company shall, or shall cause the applicable Subsidiary Guarantor to, (i) execute and deliver to
the Collateral Trustee, as mortgagee or beneficiary, as applicable, such Mortgages, together with satisfactory evidence of the
completion (or satisfactory arrangements for the completion) of all recordings and filings of such Mortgages in the proper recorders’
offices or appropriate public records (and payment of any taxes or fees in connection therewith) as may be necessary to create
a valid, perfected Lien with the priority required by the Parity Lien Documents, against the Oil and Gas Properties of the Company
and the Subsidiary Guarantors that are subject to Liens securing the Priority Lien Obligations on the Issue Date and (ii) on the
date that each such Mortgage is so filed or recorded, cause its counsel for the jurisdiction in which the relevant Oil and Gas
Properties are located to execute and deliver to the Collateral Trustee a favorable legal opinion with respect thereto in form
and substance reasonably satisfactory to the Collateral Trustee.

 

(b)          Within
60 days of the Issue Date the Company and the Subsidiary Guarantors shall execute and deliver to the Collateral Trustee the control
agreements, in each case as required by the Security Agreement, and shall otherwise comply with the requirements of the Security
Agreement and the Intercreditor Agreement with respect to control agreements.

 

(c)          Any
Security Documents entered into after the Issue Date shall be substantially in the form of the corresponding security document
securing the Priority Liens Obligations, or to the extent there is no such corresponding security document, the corresponding security
documents securing the Priority Lien Obligations in place on the Issue Date, in each case, with such changes are reasonably necessary
to reflect the terms of the Intercreditor Agreement and with such deletions or modifications of representations, warranties and
covenants as are customary with respect to security documents establishing Liens securing publicly traded debt securities, all
as certified to the Collateral Trustee pursuant to an Officers’ Certificate of the Company.

 

Section
13.03       Further Assurances; Liens on Additional Property.

 

(a)          The
Company and each of the Guarantors shall do or cause to be done all acts and things that may be required, or that the Collateral
Trustee from time to time may reasonably request, to assure and confirm that the Collateral Trustee holds, for the benefit of the
holders of Parity Lien Obligations, duly created and enforceable and perfected Liens upon the Collateral (including any acquired
Property or other Property required by any Parity Lien Document to become, Collateral after the Issue Date), in each case, as contemplated
by, and with the Lien priority required under, the Parity Lien Documents, and in connection with any merger, consolidation or sale
of assets of the Company or any Subsidiary Guarantor, the property and assets of the Person which is consolidated or merged with
or into the Company or any Subsidiary Guarantor, to the extent that they are property or assets of the types which would constitute
Collateral under the Security Documents, shall be treated as after-acquired property and the Company or such Subsidiary Guarantor
shall take such action as may be reasonably necessary to cause such property and assets to be made subject to the Parity Liens,
in the manner and to the extent required under the Parity Lien Documents.

 

    	97

    	 

    

 

 

(b)          Upon
the reasonable request of the Collateral Trustee or any Parity Lien Representative at any time and from time to time, the Company
and each of the Guarantors shall promptly execute, acknowledge and deliver such Security Documents, instruments, certificates,
financing statements, notices and other documents, and take such other actions as shall be reasonably required, or that the Collateral
Trustee may reasonably request, to create, perfect, protect, assure or enforce the Liens and benefits intended to be conferred,
in each case as contemplated by the Parity Lien Documents for the benefit of the holders of Parity Lien Obligations; provided,
that no such Security Document, instrument or other document shall be materially more burdensome upon the Company and the Guarantors
than the Parity Lien Documents executed and delivered (or required to be executed and delivered promptly after the date of this
Indenture, including pursuant to Section 13.02) by the Company and the Guarantors in connection with the issuance of the Notes
on or about the Issue Date.

 

(c)          In
addition to the Collateral, from and after the Issue Date, if the Company or any Guarantor acquires any Property that constitutes
collateral for the Priority Lien Debt or Junior Lien Debt, if and to the extent that any Priority Lien Document or Junior Lien
Document, as applicable, requires any supplemental security document for such collateral or other actions to achieve a perfected
Lien on such collateral, the Company shall, or shall cause the applicable Guarantor to, promptly (but not in any event no later
than the date that is 20 Business Days after which such supplemental security documents are executed and delivered (or other action
taken) under such Priority Lien Documents or Junior Lien Documents, as applicable), to the extent permitted by applicable law,
execute and deliver to the Collateral Trustee appropriate Security Documents (or amendments thereto) in such form as shall be necessary
to grant the Collateral Trustee a valid and enforceable perfected Lien on such Collateral or take such other actions in favor of
the Collateral Trustee as shall be reasonably necessary to grant a valid and enforceable perfected Lien on such Collateral to the
Collateral Trustee, for the benefit of the Holders of the Notes and holders of any other Parity Lien Obligations, subject to the
terms of this Indenture, the Intercreditor Agreement and the other Note Documents. Additionally, subject to this Indenture, the
Intercreditor Agreement and the other Note Documents, if the Company or any Guarantor creates any additional Lien upon any Property
that would constitute Collateral, or takes any additional actions to perfect any existing Lien on Collateral, in each case for
the benefit of the holders of the Priority Lien Debt or the holders of Junior Lien Debt, after the Issue Date, the Company or such
Guarantor, as applicable, must, to the extent permitted by applicable law, within 20 Business Days after such Lien is granted or
other action taken, grant a valid and enforceable perfected Lien upon such property or asset, or take such additional perfection
actions, as applicable, for the benefit of the Holders and obtain all related deliverables as those delivered to the Priority Lien
Representative or Junior Lien Agent, as applicable, in each case as security for the Notes Obligations. Notwithstanding the foregoing,
to the extent that any Lien on any Collateral is perfected by the possession or control of such Collateral or of any account in
which such Collateral is held, and if such Collateral or any such account is in fact in the possession or under the control of
the Priority Lien Representative, or of agents or bailees of the Priority Lien Representative, the perfection actions and related
deliverables described in this Section 13.03(c) shall not be required.

 

(d)          Notwithstanding
anything herein or in the Note Documents to the contrary, neither the Company nor any Guarantor will be required to grant a security
interest in, and the Collateral shall not include, any Excluded Asset.

 

    	98

    	 

    

  

(e)          The
Company will, deliver to the Trustee semi-annually on or before March 31 and September 30 in each calendar year, beginning September
30, 2015, an Officers’ Certificate certifying that, as of the date of such certificate, the Collateral includes Oil and Gas
Properties that include not less than 80% of the total discounted future net revenue of the Company’s and the Subsidiary
Guarantors’ Oil and Gas Properties located in the United States and adjacent Federal waters constituting Proved Reserves
as estimated in the Company’s most recent Reserve Report (the “minimum mortgage requirement”), together
with (i) such executed Mortgages or amendments or supplements to prior Mortgages naming the Collateral Trustee, as mortgagee or
beneficiary, as may be necessary to cause the minimum mortgage requirement to be satisfied, (ii) satisfactory evidence of the completion
of all recordings and filings of such Mortgages, amendments or supplements in the proper recorders’ offices or appropriate
public records (and payment of any taxes or fees in connection therewith) and (iii) local counsel opinion or opinions (each, subject
to customary assumptions and qualifications) to the effect that the Collateral Trustee has a valid and perfected Lien with respect
to the real property that is subject to the applicable Mortgage; provided that, (x) to the extent corresponding mortgages
securing the Priority Lien Obligations are being delivered and (y) Mortgages have previously been recorded in the public records
of the county or counties applicable to such additional Mortgages or amendments or supplements to prior Mortgages, no such opinion
shall be required unless a corresponding opinion will be delivered to the Priority Lien Collateral Agent.

 

(f)          The
Company will deliver to the Trustee copies of all documents delivered to the Collateral Trustee pursuant to the Security Documents.

 

Section
13.04       Intercreditor Agreement.

 

This Article 13 and the
provisions of each other Security Document are subject to the terms, conditions and benefits set forth in the Intercreditor Agreement.
The Company, Intermediate Holdco and each Subsidiary Guarantor consents to, and agrees to be bound by, the terms of the Intercreditor
Agreement, as the same may be in effect from time to time, and to perform its obligations thereunder in accordance with the terms
thereof. Each Holder of Notes, by its acceptance of the Notes (a) consents to the subordination of Liens provided for in the Intercreditor
Agreement, (b) agrees that it will be bound by, and will take no actions contrary to, the provisions of the Intercreditor Agreement
and (c) authorizes and instructs the Collateral Trustee on behalf of each Second Lien Secured Party to enter into the Intercreditor
Agreement as Second Lien Collateral Trustee on behalf of such Second Lien Secured Parties. In addition, each Holder of Notes authorizes
and instructs the Collateral Trustee to enter into any amendments or joinders to the Intercreditor Agreement, without the consent
of any Holder or the Trustee, to add additional Indebtedness as Priority Lien Debt, Parity Lien Debt or Junior Lien Debt and add
other parties (or any authorized agent or trustee therefor) holding such Indebtedness thereto and to establish that the Lien on
any Collateral securing such Indebtedness ranks equally with the Liens on such Collateral securing the other Priority Lien Debt,
Parity Lien Debt or Junior Lien Debt, as applicable, then outstanding. The foregoing provisions are intended as an inducement to
the lenders under the Credit Agreement to extend credit to the Company and certain of its Subsidiaries, and such lenders are intended
third party beneficiaries of such provisions and the provisions of the Intercreditor Agreement.

 

Section
13.05         Collateral Trust Agreement.

 

This Article 13 and the
provisions of each other Security Document are subject to the terms, conditions and benefits set forth in the Collateral Trust
Agreement. The Company, Intermediate Holdco and each Subsidiary Guarantor consents to, and agrees to be bound by, the terms of
the Collateral Trust Agreement, as the same may be in effect from time to time, and to perform its obligations thereunder in accordance
with the terms therewith. Each Holder of Notes, by its acceptance of the Notes (a) agrees that it will be bound by, and will take
no actions contrary to, the provisions of the Collateral Trust Agreement and (b) authorizes and instructs the Collateral Trustee
on behalf of each Second Lien Secured Party to enter into the Collateral Trust Agreement as Collateral Trustee on behalf of such
Second Lien Secured Parties.

 

    	99

    	 

    

  

Section
13.06       Release of Liens in Respect of Notes.

 

The Collateral Trustee’s
other Liens upon the Collateral will no longer secure the Notes outstanding under this Indenture or any other Notes Obligations,
and the right of the Holders of the Notes to the benefits and proceeds of the Collateral Trustee’s Liens on the Collateral
will terminate and be discharged:

 

(1)         upon
satisfaction and discharge of this Indenture in accordance with Article 10 hereof;

 

(2)         upon
a Legal Defeasance or Covenant Defeasance of the Notes in accordance with Article 8 hereof;

 

(3)         upon
payment in full and discharge of all Notes outstanding under this Indenture and all other Notes Obligations that are outstanding,
due and payable under this Indenture and the other Note Documents at the time the Notes are paid in full and discharged;

 

(4)         as
to any Collateral of the Company or a Subsidiary Guarantor that is sold, transferred or otherwise disposed of by the Company or
any Subsidiary Guarantor to a Person that is not (either before or after such sale, transfer or disposition) the Company or a Restricted
Subsidiary of the Company in a transaction or other circumstance that complies with Sections 4.10 and 4.15 (other than the obligation
to apply proceeds of such Asset Sale as provided in such provision) and is permitted by all of the other Notes Documents, at the
time of such sale, transfer or other disposition or to the extent of the interest sold, transferred or otherwise disposed of; provided
that the Collateral Trustee’s Liens upon the Collateral will not be released if the sale or disposition is subject to Section
5.01;

 

(5)         in
whole or in part, with the consent of the Holders of the requisite percentage of Notes in accordance with Article 9 hereof;

 

(6)         with
respect to the assets of any Guarantor, at the time that such Guarantor is released from its Guarantee in accordance with Section
12.05; or

 

(7)         if
and to the extent required by Section 4.01 of the Intercreditor Agreement.

 

In addition, the Collateral
Trustee’s Liens on the Collateral will be released upon the terms and subject to the conditions set forth in Section 4.1
of the Collateral Trust Agreement.

 

Section
13.07       Collateral Trustee.

 

(a)          The
Collateral Trustee will hold (directly or through co-trustees or agents) and, subject to the terms of the Intercreditor Agreement,
will be entitled to enforce all Liens on the Collateral created by the Security Documents.

 

(b)          Except
as provided in the Collateral Trust Agreement or as directed by an Act of Parity Lien Debtholders in accordance with the Collateral
Trust Agreement, the Collateral Trustee will not be obligated:

 

(1)         to
act upon directions purported to be delivered to it by any Person;

 

(2)         to
foreclose upon or otherwise enforce any Lien; or

 

    	100

    	 

    

  

(3)         to
take any other action whatsoever with regard to any or all of the Security Documents, the Liens created thereby or the Collateral.

 

Section
13.08       Insurance.

 

(a)          The
Company and the Guarantors shall:

 

(1)         keep
their properties insured at all times by financially sound and reputable insurers;

 

(2)         maintain
such other insurance, to such extent and against such risks (and with such deductibles, retentions and exclusions), including fire
and other risks insured against by extended coverage and coverage for acts of terrorism, as is customary with companies in the
same or similar businesses operating in the same or similar locations, including public liability insurance against claims for
personal injury or death or property damage occurring upon, in, about or in connection with the use of any properties owned, occupied
or controlled by them; and

 

(3)         maintain
such other insurance as may be required by law.

 

(b)          Upon
the request of the Collateral Trustee, the Company and the Guarantors will furnish to the Collateral Trustee information as to
their property and liability insurance carriers. Within 60 days of the Issue Date, the Company will use its reasonable efforts
to cause the Holders of Parity Lien Obligations, as a class, to be named as additional insureds on all liability insurance policies
of the Company and the Subsidiary Guarantors that insure the Collateral, and the Collateral Trustee to be named as loss payee on
all property and casualty insurance policies of the Company and the Subsidiary Guarantors that insure the Collateral.

 

[Signatures on following page]

 

    	101

    	 

    

  

IN WITNESS WHEREOF, the
parties have executed this Agreement as of the date first written above.

 

	 	ENERGY XXI GULF COAST, INC.
	 	 
	 	By:	 /s/ Antonio de Pinho
	 	 	Name:   Antonio de Pinho
	 	 	Title:     President
	 	 
	 	ENERGY XXI LTD
	 	 
	 	By: 	 /s/ Bruce W. Busmire
	 	 	Name:   Bruce W. Busmire
	 	 	Title:     Chief Financial Officer
	 	 
	 	ENERGY XXI USA, INC.
	 	 
	 	By: 	 /s/ Antonio de Pinho
	 	 	Name:   Antonio de Pinho
	 	 	Title:     President

  

	 	
        ENERGY XXI TEXAS ONSHORE, LLC

        ENERGY XXI ONSHORE, LLC

        ENERGY XXI GOM, LLC

        ENERGY XXI PIPELINE, LLC

        ENERGY XXI PIPELINE II, LLC

        ENERGY XXI LEASEHOLD, LLC

        MS ONSHORE, LLC

	 	 	 
	 	By: 	  /s/ Antonio de Pinho
	 	 	Name:   Antonio de Pinho
	 	 	Title:     President

 

Signature Page- Indenture

 

    	 

    	 

    

  

	 	U.S. BANK NATIONAL ASSOCIATION
	 	 
	 	By: 	  /s/ Steven A. Finklea
	 	 	Name:   Steven A. Finklea
	 	 	Title:     Vice President

 

Signature Page- Indenture

 

    	 

    	 

    

 

EXHIBIT A

 

	[Face of QIB Note]

 

[Insert the Global Note Legend, if applicable
pursuant to the provisions of this Indenture]

 

[Insert the OID Legend, if applicable pursuant
to the provisions of this Indenture]

 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY
ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF
SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF THIS NOTE HEREBY AGREES ON ITS OWN BEHALF AND ON
BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HOLDS THIS NOTE, FOR THE BENEFIT OF THE ISSUER, THAT (A) THIS NOTE MAY BE RESOLD, PLEDGED
OR OTHERWISE TRANSFERRED, ONLY (1)(a) TO A PERSON THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED
IN RULE 144A UNDER THE SECURITIES ACT) PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN
A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE SECURITIES ACT, (b) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF APPLICABLE) OR (c) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE ISSUER IF THE ISSUER SO REQUESTS), OR
(2) TO THE ISSUER AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS NOTE OF THE
RESALE RESTRICTIONS SET FORTH IN CLAUSE (A) ABOVE. NO REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED
BY RULE 144 FOR RESALE OF THIS NOTE.

 

    	A-1

    	 

    

  

CUSIP/CINS ____________

 

11.000% Senior Secured Second Lien Notes due
2020

 

	No. ___	$____________

 

ENERGY XXI GULF COAST, INC.

 

promises to pay to [              ]
or registered assigns, the principal sum of __________________________________________________________ DOLLARS [or such other amount
as is reflected on the attached Schedule of Exchanges of Interests in the Global Note]1
on March 15, 2020.

 

Interest Payment Dates: March 15 and September
15[, beginning September 15, 2015]

 

Record Dates: March 1 and September 1

 

	 	ENERGY XXI GULF COAST, INC.
	 	 
	 	By:	 
	 	 	Name:  
	 	 	Title:

 

 

1
Include for Notes in global form.

 

    	A-2

    	 

    

 

This is one of the Notes referred to

in the within-mentioned Indenture:

 

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 

	By:  	 	 
	Authorized Signatory	 

 

	Dated:  	 	 

 

    	A-3

    	 

    

  

[Back of Note]

11.000% Senior Secured Second Lien Notes due
2020

 

Capitalized terms used
herein have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.

 

(1)         Interest.
Energy XXI Gulf Coast, Inc., a Delaware corporation (the “Company”), promises to pay interest on the unpaid
principal amount of this Note at a rate of 11.000% per annum. The Company will pay interest semi-annually in arrears on March 15
and September 15 of each year beginning September 15, 2015, or if any such day is not a Business Day, on the next succeeding Business
Day (each, an “Interest Payment Date”). Interest on the Notes will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from [____] [March 12, 2015 for Initial Notes]; provided that if
there is no existing Default in the payment of interest, and if this Note is authenticated between a record date referred to on
the face hereof (each, a “Record Date”) and the next succeeding Interest Payment Date, interest shall accrue
from such next succeeding Interest Payment Date. The Company will pay interest (including post-petition interest in any proceeding
under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at the interest rate then in effect
to the extent lawful; it will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest (without regard to any applicable grace periods) from time to time on demand at the same rate to the extent
lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months.

 

(2)         Method
of Payment. The Company will pay interest on the Notes (except defaulted interest) to the Persons who are registered
Holders of Notes at the close of business on March 1 or September 1 next preceding the Interest Payment Date, even if such Notes
are canceled after such record date and on or before such Interest Payment Date, except as provided in Section 2.12 of the Indenture
with respect to defaulted interest. The Notes will be payable as to principal, premium, if any, and interest at the office or agency
of the Company maintained for such purpose, or, at the option of the Company, payment of interest may be made by check mailed to
the Holders at their addresses set forth in the register of Holders; provided that payment by wire transfer of immediately
available funds will be required with respect to principal of and interest, and premium, if any, on all Global Notes and all other
Notes the Holders of which will have provided wire transfer instructions to the Company or the Paying Agent. Such payment will
be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and
private debts.

 

(3)         Paying
Agent and Registrar. Initially, U.S. Bank National Association, the Trustee under the Indenture, will act as Paying
Agent and Registrar. The Company may change any Paying Agent or Registrar without notice to any Holder. The Company or any of its
Domestic Subsidiaries may act as Paying Agent.

 

(4)         Indenture.
The Company issued the Notes under an Indenture dated as of March 12, 2015 (the “Indenture”) among the Company,
the Guarantors and the Trustee. The terms of the Notes include those stated in the Indenture. The Notes are subject to all such
terms, and Holders are referred to the Indenture for a statement of such terms. To the extent any provision of this Note conflicts
with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. The Company initially
issued $1,450,000,000 principal amount of Notes under the Indenture. The Company may issue Additional Notes under the Indenture,
subject to Sections 4.09 and 4.12 thereof. The Notes are entitled to the benefits of the Security Documents, subject to the terms
of the Intercreditor Agreement, all as more fully set forth in the Indenture.

 

    	A-4

    	 

    

  

(5)         Optional
Redemption.

 

The Notes are subject to
redemption as provided in Article 3 and Section 4.15 of the Indenture.

 

(6)         Mandatory
Redemption.

 

The Company is not required
to make mandatory redemption or sinking fund payments with respect to the Notes.

 

(7)         Repurchase
at the Option of Holder.

 

(a)          If
there is a Change of Control, the Company will be required to make an offer (a “Change of Control Offer”) to
each Holder to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess of $2,000) of each Holder’s
Notes at a purchase price in cash (the “Change of Control Payment”) equal to 101% (or at the Company’s
election, a higher percentage) of the aggregate principal amount thereof plus accrued and unpaid interest thereon to the date of
settlement (the “Change of Control Purchase Date”), subject to the rights of Holders on the relevant record
date to receive interest due on an Interest Payment Date that is on or before the Change of Control Purchase Date. Within 30 days
following any Change of Control, the Company will mail a notice to each Holder and the Trustee setting forth the procedures governing
the Change of Control Offer as required by the Indenture.

 

(b)          If
the Company or a Restricted Subsidiary of the Company consummates an Asset Sale, the Company in circumstances specified in the
Indenture may be required to commence an offer to all Holders of Notes and (i) with respect to Asset Sales that are Collateral
Dispositions, all holders of other Parity Lien Obligations, or (ii) with respect to other Asset Sales, all holders of other Indebtedness
that is pari passu with the Notes, in each case containing provisions similar to those set forth in the Indenture with respect
to offers to purchase or redeem with the proceeds of sales of assets (an “Asset Sale Offer”) pursuant to Section
3.09 of the Indenture to purchase the maximum principal amount of Notes and such other pari passu Indebtedness that may
be purchased out of the Excess Proceeds at an offer price in cash in an amount equal to 100% of the principal amount thereof plus
accrued and unpaid interest thereon to the date of purchase, in accordance with the procedures set forth in the Indenture. Holders
of Notes that are the subject of an offer to purchase will receive an Asset Sale Offer from the Company prior to any related purchase
date as required by the Indenture.

 

(c)          If
there is a Triggering Event, the Company will be required to make an offer (a “Triggering Event Repurchase Offer”)
to each Holder to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess of $2,000) of each Holder’s
Notes at a purchase price in cash equal to 100% of the aggregate principal amount thereof plus accrued and unpaid interest thereon
to the date of settlement (the “Triggering Event Purchase Date”), subject to the rights of Holders on the relevant
record date to receive interest due on an Interest Payment Date that is on or before the Triggering Event Purchase Date (the “Triggering
Event Payment”). No later than the Business Day following the occurrence of a Triggering Event, the Company will mail
a notice to each Holder and the Trustee setting forth the procedures governing the Triggering Event Repurchase Offer as required
by the Indenture.

 

    	A-5

    	 

    

  

(8)         Notice
of Redemption. Notice of redemption will be mailed at least 30 days but not more than 60 days before the redemption
date to each Holder whose Notes are to be redeemed at its registered address, except that redemption notices may be mailed more
than 60 days prior to a redemption date if the notice is issued in connection with a defeasance of the Notes or a satisfaction
or discharge of the Indenture. Notes in denominations larger than $2,000 may be redeemed in part but only in whole multiples of
$1,000 in excess of $2,000, unless all of the Notes held by a Holder are to be redeemed.

 

(9)         Denominations,
Transfer, Exchange. The Notes are in registered form without coupons in denominations of $2,000 and integral multiples
of $1,000 in excess of $2,000. The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture.
The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents,
and the Company may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Company need
not exchange or register the transfer of any Note or portion of a Note selected for redemption, except for the unredeemed portion
of any Note being redeemed in part. Also, the Company need not exchange or register the transfer of any Notes for a period of 15
days before the mailing of a notice of redemption or during the period between a record date and the next succeeding Interest Payment
Date.

 

(10)        Persons
Deemed Owners. The registered Holder of a Note may be treated as its owner for all purposes.

 

(11)        Amendment,
Supplement and Waiver. Subject to certain exceptions, the Note Documents may be amended or supplemented with the consent
of the Holders of at least a majority in aggregate principal amount of the then outstanding Notes, voting as a single class, and
any existing Default or Event or Default or compliance with any provision of the Note Documents may be waived with the consent
of the Holders of a majority in aggregate principal amount of the then outstanding Notes, voting as a single class. Without the
consent of any Holder of a Note, any of the Note Documents may be amended or supplemented to cure any ambiguity, defect or inconsistency
and to effect certain other changes as set forth in the Indenture. In addition, any amendment or supplement to, or waiver of, the
provisions of the Indenture or any Security Document that has the effect of releasing all or substantially all of the Collateral
from the Liens securing the Notes will require the consent of Holders of at least 66 2/3% in aggregate principal amount of the
Notes then outstanding.

 

(12)        Defaults
and Remedies. If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate
principal amount of the then outstanding Notes may declare all the Notes to be due and payable immediately. Notwithstanding the
foregoing, in the case of an Event of Default arising from certain events of bankruptcy or insolvency, all outstanding Notes will
become due and payable immediately without further action or notice and in such event the Holders of Notes will be entitled, to
the extent permitted by law, to the payment of all amounts that would been due upon redemption of the Notes if the Company redeemed
the Notes at its option at such time pursuant to the provisions in Section 3.07. Any such amount will constitute liquidated damages
reasonably agreed by the Company and the Holders in view of the impracticability of determining actual damages. Holders may not
enforce the Indenture, the Notes or any other Note Document except as provided in the Indenture. Subject to certain limitations,
Holders of a majority in aggregate principal amount of the then outstanding Notes may direct the Trustee in its exercise of any
trust or power. The Trustee may withhold from Holders of the Notes notice of any continuing Default or Event of Default (except
a Default or Event of Default relating to the payment of principal or interest or premium, if any,) if it determines in good faith
that withholding notice is in their interest. The Holders of a majority in aggregate principal amount of the then outstanding Notes
by notice to the Trustee may, on behalf of the Holders of all of the Notes, rescind an acceleration or waive any existing Default
or Event of Default and its consequences under the Indenture except a continuing Default or Event of Default in the payment of
interest or premium, if any, on, or the principal of, the Notes or a Default or Event of Default in respect of a provision in the
Indenture that cannot be amended without the consent of each Holder affected. The Company is required to deliver to the Trustee
annually a statement regarding compliance with the Indenture, and the Company is required, upon becoming aware of any Default or
Event of Default, to deliver to the Trustee a statement specifying such Default or Event of Default.

 

    	A-6

    	 

    

  

(13)        Trustee
Dealings with Company. The Trustee, in its individual or any other capacity, may make loans to, accept deposits from,
and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were
not the Trustee.

 

(14)        No
Recourse Against Others. No director, officer, employee, incorporator or stockholder of the Company or any Guarantor,
as such, will have any liability for any obligations of the Company or the Guarantors under the Notes, the Indenture, any other
Note Document or the Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their creation.
Each Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration
for issuance of the Notes.

 

(15)        Authentication.
This Note will not be valid until authenticated by the manual signature of the Trustee or an authenticating agent.

 

(16)        Abbreviations.
Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian),
and U/G/M/A (= Uniform Gifts to Minors Act).

 

(17)        CUSIP
Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the
Company has caused CUSIP numbers to be printed on the Notes, and the Trustee may use CUSIP numbers in notices of redemption as
a convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained
in any notice of redemption, and reliance may be placed only on the other identification numbers placed thereon.

 

(18)        GOVERNING
LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THIS NOTE AND THE
GUARANTEES.

 

The Company will furnish
to any Holder upon written request and without charge a copy of the Indenture. Requests may be made to:

 

ENERGY XXI GULF COAST, INC.

1021 Main

Suite 2626

Houston, Texas 77002

Attention: Chief Financial Officer

 

    	A-7

    	 

    

  

Assignment
Form

 

To assign this Note, fill
in the form below:

 

	(I) or (we) assign and transfer this Note to:   	 
	 	(Insert assignee’s legal name)

	 
	(Insert assignee’s soc. sec. or tax I.D. no.)
	 
	 
	 
	 
	 
	 
	 
	 
	(Print or type assignee’s name, address and zip code)

 

and irrevocably appoint _____________________________________________________________________________

to transfer this Note on the books of the Company.
The agent may substitute another to act for him.

 

Date: _______________

 

	 	Your Signature:  	 
	 	(Sign exactly as your name appears on the face of this Note)

 

Signature Guarantee*: _________________________

 

*          Participant in a recognized Signature
Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

 

    	A-8

    	 

    

  

Option
of Holder to Elect Purchase

 

If you want to elect to
have this Note purchased by the Company pursuant to Section 4.10, 4.15 or 4.20 of the Indenture, check the appropriate box below:

 

 ̈
Section 4.10                                  ̈
Section 4.15                                  ̈ Section 4.20

 

If you want to elect to
have only part of the Note purchased by the Company pursuant to Section 4.10, Section 4.15 or Section 4.20 of the Indenture, state
the amount you elect to have purchased:

 

$______________

 

Date: _____________

 

	 	Your Signature:  	 
	 	(Sign exactly as your name appears on the face of this Note)

 

	 	Tax Identification No.:  	 

 

Signature Guarantee*: _________________________

 

*         Participant
in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

 

    	A-9

    	 

    

  

Schedule
of Exchanges of Interests in the Global Note *

 

The following exchanges
of a part of this Global Note for an interest in another Global Note or for a Definitive Note, or exchanges of a part of another
Global Note or Definitive Note for an interest in this Global Note, have been made:

 

	Date of Exchange	 	Amount of decrease in

    Principal Amount 

    of 

    this Global Note	 	Amount of increase in

    Principal Amount 

    of 

    this Global Note	 	Principal Amount 

    of this Global Note

    following such

    decrease 

    (or increase)	 	Signature of authorized

    officer of Trustee or

    Notes Custodian
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

		*	This schedule should be included only if the Note is issued in global form. 

  

    	A-10

    	 

    

 

EXHIBIT B

 

FORM OF CERTIFICATE OF TRANSFER

 

ENERGY XXI GULF COAST, INC.

1021 Main, Suite 2626

Houston, TX 77002

Attention: Chief Financial Officer

 

U.S. Bank National Association

5555 San Felipe Street, 11th Floor

MAC EX-TX-WSFH

Houston, TX 77056

Facsimile No.: (713) 235-9213

Attention: Corporate Trust Services

 

Re: 11.000% Senior Secured
Second Lien Notes due 2020

 

Reference is hereby made
to the Indenture, dated as of March 12, 2015 (the “Indenture”), among Energy XXI Gulf Coast, Inc., as issuer
(the “Company”), the Guarantors party thereto and U.S. Bank National Association, as trustee. Capitalized terms
used but not defined herein shall have the meanings given to them in the Indenture.

 

___________________, (the
“Transferor”) owns and proposes to transfer the Note[s] or interest in such Note[s] specified in Annex A hereto,
in the principal amount of $___________ in such Note[s] or interests (the “Transfer”), to ___________________________
(the “Transferee”), as further specified in Annex A hereto. In connection with the Transfer, the Transferor
hereby certifies that:

 

[CHECK ALL THAT APPLY]

 

1.  ̈
Check if Transferee will take delivery of a beneficial interest in the QIB Global Note or a Restricted Definitive Note pursuant
to Rule 144A. The Transfer is being effected pursuant to an in accordance with Rule 144A under the Securities Act of 1933,
as amended (the “Securities Act”), and, accordingly, the Transferor hereby further certifies that the beneficial
interest or Definitive Note is being transferred to a Person that the Transferor reasonably believes is purchasing the beneficial
interest or Definitive Note for its own account, or for one or more accounts with respect to which such Person exercises sole investment
discretion, and such Personal and each such account is a “qualified institutional buyer” within the meaning of Rule
144A in a transaction meeting the requirements of Rule 144A, and such Transfer is in compliance with any applicable blue sky securities
laws of any state of the United States. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture,
the transfer enumerated in the Private Placement Legend printed on the QIB Global Note and/or the Restricted Definitive Note and
in the Indenture and the Securities Act.

 

2.  ̈
Check and complete if Transferee will take delivery of a beneficial interest in a Restricted Definitive Note pursuant to
any provision of the Securities Act other than Rule 144A. The Transfer is being effected in compliance with the transfer
restrictions applicable to beneficial interests in Restricted Global Notes and Restricted Definitive Notes and pursuant to and
in accordance with the Securities Act and any applicable blue sky securities laws of any state of the United States, and accordingly
the Transferor hereby further certifies that (check one):

 

(a)           ̈
such Transfer is being effected pursuant to and in accordance with Rule 144 under the Securities Act;

 

 

    	B-1

    	 

    

  

or

 

(b)           ̈
such Transfer is being effected to the Company or a subsidiary thereof;

 

or

 

(c)           ̈
such Transfer is being effected pursuant to and in accordance with another exemption from registration under the Securities Act
and complies with all transfer restrictions applicable thereto in the Indenture.

 

This certificate and the
statements contained herein are made for your benefit and the benefit of the Company.

 

	 	 
	 	[Insert Name of Transferor]

 

	 	By:	 
	 		Name:
	 		Title:

 

Dated: _______________________

 

    	B-2

    	 

    

  

ANNEX A TO CERTIFICATE OF TRANSFER

 

1.                    The
Transferor owns and proposes to transfer a beneficial interest in the QIB Global Note (CUSIP __________).

 

2.                    After
the Transfer the Transferee will hold a beneficial interest in the QIB Global Note (CUSIP __________) in accordance with the terms
of the Indenture.

 

    	B-3

    	 

    

  

EXHIBIT C

 

FORM OF CERTIFICATE OF EXCHANGE

 

ENERGY XXI GULF COAST, INC.

1021 Main, Suite 2626

Houston, TX 77002

Attention: Chief Financial Officer

 

U.S. Bank National Association

5555 San Felipe Street, 11th Floor

MAC EX-TX-WSFH

Houston, TX 77056

Facsimile No.: (713) 235-9213

Attention: Corporate Trust Services

 

Re: 11.000% Senior Secured
Second Lien Notes due 2020

 

(CUSIP ____________)

 

Reference is hereby made
to the Indenture, dated as of March 12, 2015 (the “Indenture”), among Energy XXI Gulf Coast, Inc., as issuer
(the “Company”), the Guarantors party thereto and U.S. Bank National Association, as trustee. Capitalized terms
used but not defined herein shall have the meanings given to them in the Indenture.

 

__________________________,
(the “Owner”) owns and proposes to exchange the Note[s] or interest in such Note[s] specified herein, in the
principal amount of $____________ in such Note[s] or interests (the “Exchange”). In connection with the Exchange,
the Owner hereby certifies that:

 

1.          Exchange
of Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes for Restricted Definitive Notes or Beneficial
Interests in Restricted Global Notes

 

(a)  ̈
Check if Exchange is from beneficial interest in a Restricted Global Note to Restricted Definitive Note. In connection with
the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a Restricted Definitive Note with an equal
principal amount, the Owner hereby certifies that the Restricted Definitive Note is being acquired for the Owner’s own account
without transfer. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the Restricted Definitive
Note issued will continue to be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the
Restricted Definitive Note and in the Indenture and the Securities Act.

 

(b)  ̈
Check if Exchange is from Restricted Definitive Note to beneficial interest in a Restricted Global Note. In connection with
the Exchange of the Owner’s Restricted Definitive Note for a beneficial interest in the QIB Global Note, the Owner hereby
certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer and (ii) such Exchange
has been effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and pursuant to and in
accordance with the Securities Act, and in compliance with any applicable blue sky securities laws of any state of the United States.
Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the beneficial interest issued will be
subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the relevant Restricted Global Note
and in the Indenture and the Securities Act.

 

    	C-1

    	 

    

  

This certificate and the
statements contained herein are made for your benefit and the benefit of the Company.

 

	 	 
	 	[Insert Name of Transferor]

 

	 	By:	 
	 	 	Name:
	 	 	Title:

 

Dated: ______________________

 

    	C-2

    	 

    

 

EXHIBIT
D

 

FORM OF NOTATION OF GUARANTEE

 

For value received, each
Guarantor (which term includes any successor Person under the Indenture) has, jointly and severally, fully and unconditionally
guaranteed, to the extent set forth in the Indenture and subject to the provisions in the Indenture dated as of March 12, 2015
(the “Indenture”) among Energy XXI Gulf Coast, Inc. (the “Company”), the Guarantors party
thereto and U.S. Bank National Association, as trustee (the “Trustee”), (a) that the principal of, premium,
if any, and interest on, the Notes will be promptly paid in full when due, whether at maturity, by acceleration, upon repurchase
or redemption or otherwise, and interest on overdue principal of, premium and (to the extent permitted by law) interest, if any,
on the Notes and all other obligations of the Company to the Holders or the Trustee will be promptly paid in full or performed,
all in accordance with the terms of the Indenture and the Notes and (b) in case of any extension of time of payment or renewal
of any Notes or any of such other obligations, that the same will be promptly paid in full when due or performed in accordance
with the terms of the extension or renewal, whether at stated maturity, by acceleration, upon repurchase or redemption or otherwise.
The obligations of the Guarantors to the Holders of Notes and to the Trustee pursuant to the Guarantee and the Indenture, and the
limitations thereon, are expressly set forth in Article 12 of the Indenture and reference is hereby made to the Indenture for the
precise terms of the Guarantee.

 

Capitalized terms used
but not defined herein have the meanings given to them in the Indenture.

 

	 	Energy XXI Ltd
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	[Name of Guarantor(s)]
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	[Name of Guarantor(s)]
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	D-1

    	 

    

  

EXHIBIT
E

 

FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS

 

Supplemental
Indenture (this “Supplemental Indenture”), dated as of ________________, 20__, among __________________
(the “Guaranteeing Subsidiary”), a subsidiary of Energy XXI Gulf Coast, Inc. (or its permitted successor), a
Delaware corporation (the “Company”), the Company, the other Guarantors (as defined in the Indenture referred
to herein) and U.S. Bank National Association, as trustee under the Indenture referred to below (the “Trustee”).

 

WITNESSETH

 

WHEREAS, the Company has
heretofore executed and delivered to the Trustee an indenture (the “Indenture”), dated as of March 12, 2015
providing for the issuance of 11.000% Senior Secured Second Lien Notes due 2020 (the “Notes”);

 

WHEREAS, the Indenture
provides that under certain circumstances the Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture
pursuant to which the Guaranteeing Subsidiary shall unconditionally guarantee all of the Company’s Obligations under the
Notes and the Indenture on the terms and conditions set forth herein (the “Guarantee”); and

 

WHEREAS, pursuant to Section
9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture.

 

NOW, THEREFORE, in consideration
of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary
and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

 

1.          Capitalized
Terms. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

 

2.          Agreement
to Guarantee. The Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and subject to
the conditions set forth in the Guarantee and in the Indenture including but not limited to Article 12 thereof, and subject to
the limitations therein.

 

3.          No
Recourse Against Others. No director, officer, employee, incorporator or stockholder of the Company or any Guarantor, as
such, will have any liability for any obligations of the Company or the Guarantors under the Notes, the Indenture, any other Note
Document or the Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each
Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration
for issuance of the Notes. The waiver may not be effective to waive liabilities under the federal securities laws.

 

4.          NEW
YORK LAW TO GOVERN. THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE.

 

5.          Counterparts.
The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement. The exchange of copies of this Supplemental Indenture and of signature pages by facsimile
or portable document format (PDF) transmission shall constitute effective execution and delivery of this Supplemental Indenture
as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes. Signature of the parties
hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

 

    	E-1

    	 

    

  

6.          Effect
of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof.

 

7.          The
Trustee. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency
of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by
the Guaranteeing Subsidiary and the Company.

 

    	E-2

    	 

    

  

IN WITNESS WHEREOF, the
parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first above written.

 

Dated: _______________,
20__

 

	 	[Guaranteeing Subsidiary]
	 	 
	 	By:  	 
	 	 	Name:
	 	 	Title:
	 	 
	 	Energy XXI Gulf Coast, Inc.
	 	 
	 	By:  	 
	 	 	Name:
	 	 	Title:
	 	 
	 	[Existing Guarantors]
	 	 
	 	By:  	 
	 	 	Name:
	 	 	Title:
	 	 
	 	U.S. Bank National Association,
	 	as Trustee
	 	 
	 	By:  	 
	 	 	Authorized Signatory

 

    	E-3Exhibit 10.1

 

Execution Version

 

 

 

INTERCREDITOR AGREEMENT

 

dated as of March 12, 2015 between

 

The ROYAL BANK OF SCOTLAND plc,

as Priority Lien Agent,

 

and

 

U.S. Bank National Association,

as Second Lien Collateral Trustee

 

 

 

THIS IS THE INTERCREDITOR AGREEMENT REFERRED
TO IN (A) THE INDENTURE DATED AS OF MARCH 12, 2015, AMONG ENERGY XXI GULF COAST, INC., CERTAIN OF ITS SUBSIDIARIES FROM TIME TO
TIME PARTY THERETO AND U.S. BANK NATIONAL ASSOCIATION, AS TRUSTEE, (B) THE SECOND AMENDED AND RESTATED FIRST LIEN CREDIT AGREEMENT
DATED AS OF MAY 5, 2011, AS AMENDED, SUPPLEMENTED, RESTATED OR OTHERWISE MODIFIED FROM TIME TO TIME, AMONG ENERGY XXI GULF COAST,
INC., EPL OIL & GAS, INC., THE LENDERS PARTY THERETO FROM TIME TO TIME AND THE ROYAL BANK OF SCOTLAND plc, AS ADMINISTRATIVE
AGENT AND COLLATERAL AGENT, (C) THE OTHER NOTE DOCUMENTS REFERRED TO IN SUCH INDENTURE AND (D) THE OTHER LOAN DOCUMENTS REFERRED
TO IN SUCH CREDIT AGREEMENT.

 

    	 

    	 

    

 

INTERCREDITOR AGREEMENT,
dated as of March 12, 2015 (as amended, supplemented or otherwise modified from time to time in accordance with the terms hereof,
this “Agreement”), between THE ROYAL BANK OF SCOTLAND plc, as administrative agent for the Priority Lien
Secured Parties referred to herein (in such capacity, and together with its successors and assigns in such capacity, the “Original
Priority Lien Agent”) and U.S. Bank National Association, as collateral trustee for the Second Lien Secured Parties
referred to herein (in such capacity, and together with its successors in such capacity, the “Original Second Lien
Collateral Trustee”).

 

Reference is made to (a)
the Priority Credit Agreement (defined below) and (b) the Second Lien Indenture (defined below) governing the Second Lien Indenture
Notes (defined below).

 

From time to time following
the date hereof, ENERGY XXI GULF COAST, INC., a Delaware corporation (together with its successors and assigns, “EXXI”)
may (i) incur Additional Notes and Additional Second Lien Obligations (each defined below) to the extent permitted by the Secured
Debt Documents (as defined below); in connection with the Second Lien Indenture and any Additional Notes or Additional Second Lien
Obligations, EXXI and certain Grantors (defined below), the Second Lien Trustee (defined below) and the Second Lien Collateral
Trustee (defined below) have entered into the Second Lien Collateral Trust Agreement (defined below) and (ii) incur Initial Third
Lien Obligations and Additional Third Lien Obligations (each as defined below) to the extent permitted by the Secured Debt Documents
(as defined below); in connection with the Initial Third Lien Obligations, EXXI and certain of its subsidiaries and the Third Lien
Collateral Trustee (defined below) shall, concurrently with the incurrence of such Additional Third Lien Obligations, enter into
a Third Lien Collateral Trust Agreement (defined below).

 

In consideration of the
mutual agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the Priority Lien Agent (for itself and on behalf of the Priority Lien Secured Parties) and the Second Lien Collateral Trustee
(for itself and on behalf of the Second Lien Secured Parties) agree as follows:

 

Article
I

DEFINITIONS

 

SECTION
1.01.         Construction; Certain Defined Terms. (a) The definitions
of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any
pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,” “includes”
and “including” shall be deemed to be followed by the phrase “without limitation.” The word “will”
shall be construed to have the same meaning and effect as the word “shall.” Unless the context requires otherwise,
(i) any reference herein to any agreement, instrument, other document, statute or regulation shall be construed as referring to
such agreement, instrument, other document, statute or regulation as from time to time amended, supplemented or otherwise modified,
(ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns, but shall not
be deemed to include the subsidiaries of such Person unless express reference is made to such subsidiaries, (iii) the words “herein,”
“hereof and “hereunder,” and words of similar import, shall be construed to refer to this Agreement in its entirety
and not to any particular provision hereof, (iv) all references herein to Articles, Sections and Annexes shall be construed to
refer to Articles, Sections and Annexes of this Agreement, (v) unless otherwise expressly qualified herein, the words “asset”
and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract rights and (vi) the term “or” is not exclusive.

 

    	1

    	 

    

 

(b)          All
terms used in this Agreement that are defined in Article 1, 8 or 9 of the New York UCC (whether capitalized herein or not) and
not otherwise defined herein have the meanings assigned to them in Article 1, 8 or 9 of the New York UCC. If a term is defined
in Article 9 of the New York UCC and another Article of the UCC, such term shall have the meaning assigned to it in Article 9 of
the New York UCC.

 

(c)          Unless
otherwise set forth herein, all references herein to (i) the Second Lien Collateral Trustee shall be deemed to refer to the Second
Lien Collateral Trustee in its capacity as collateral trustee under the Second Lien Collateral Trust Agreement and (ii) the Third
Lien Collateral Trustee shall be deemed to refer to the Third Lien Collateral Trustee in its capacity as collateral trustee under
the Third Lien Collateral Trust Agreement.

 

(d)          As
used in this Agreement, the following terms have the meanings specified below:

 

“Accounts”
has the meaning assigned to such term in Section 3.01(a).

 

“Additional
Notes” has the meaning given to such term in the Second Lien Indenture as in effect on the date hereof.

 

“Additional
Second Lien Debt Facility” means any Indebtedness for which the requirements of Section 4.04(b) of this Agreement
have been satisfied, as amended, restated, modified, renewed, refunded, restated, restructured, increased, supplemented, replaced
or refinanced in whole or in part from time to time in accordance with each applicable Secured Debt Document; provided that
neither the Second Lien Indenture nor any Second Lien Substitute Facility shall constitute an Additional Second Lien Debt Facility
at any time.

 

“Additional
Second Lien Documents” means the Additional Second Lien Debt Facility and the Additional Second Lien Security Documents.

 

“Additional
Second Lien Obligations” means, with respect to any Grantor, any obligations of such Grantor owed to any Additional
Second Lien Secured Party (or any of its Affiliates) in respect of the Additional Second Lien Documents.

 

“Additional
Second Lien Secured Parties” means, at any time, the Second Lien Collateral Trustee, the trustee, agent or other
representative of the holders of any Series of Second Lien Debt who maintains the transfer register for such Series of Second Lien
Debt, the beneficiaries of each indemnification obligation undertaken by any Grantor under any Additional Second Lien Document
and each other holder of, or obligee in respect of, any holder or lender pursuant to any Series of Second Lien Debt outstanding
at such time; provided that the Indenture Second Lien Secured Parties shall not be deemed Additional Second Lien Secured
Parties.

 

    	2

    	 

    

 

“Additional
Second Lien Security Documents” means the Additional Second Lien Debt Facility (insofar as the same grants a Lien
on the Collateral) and any other security agreements, pledge agreements, collateral assignments, mortgages, deeds of trust, collateral
agency agreements, control agreements, or grants or transfers for security, now existing or entered into after the date hereof,
executed and delivered by EXXI or any other Grantor creating (or purporting to create) a Lien upon the Second Lien Collateral in
favor of the Additional Second Lien Secured Parties.

 

“Additional
Third Lien Debt Facility” means any Indebtedness for which the requirements of Section 4.04(b) of this Agreement
have been satisfied, as amended, restated, modified, renewed, refunded, restated, restructured, increased, supplemented, replaced
or refinanced in whole or in part from time to time in accordance with each applicable Secured Debt Document; provided that
no Third Lien Substitute Facility shall constitute an Additional Third Lien Debt Facility at any time.

 

“Additional
Third Lien Documents” means the Additional Third Lien Debt Facility and the Additional Third Lien Security Documents.

 

“Additional
Third Lien Obligations” means, with respect to any Grantor, any obligations of such Grantor owed to any Additional
Third Lien Secured Party (or any of its Affiliates) in respect of the Additional Third Lien Documents.

 

“Additional
Third Lien Secured Parties” means, at any time, the Third Lien Collateral Trustee, the trustee, agent or other representative
of the holders of any Series of Third Lien Debt who maintains the transfer register for such Series of Third Lien Debt, the beneficiaries
of each indemnification obligation undertaken by any Grantor under any Additional Third Lien Document and each other holder of,
or obligee in respect of, any holder or lender pursuant to any Series of Third Lien Debt outstanding at such time.

 

“Additional
Third Lien Security Documents” means the Additional Third Lien Debt Facility (insofar as the same grants a Lien on
the Collateral) and any other security agreements, pledge agreements, collateral assignments, mortgages, deeds of trust, collateral
agency agreements, control agreements, or grants or transfers for security, now existing or entered into after the date hereof,
executed and delivered by EXXI or any other Grantor creating (or purporting to create) a Lien upon the Third Lien Collateral in
favor of the Additional Third Lien Secured Parties (including any such agreements, assignments, mortgages, deeds of trust and other
documents or instruments associated with any Third Lien Substitute Facility).

 

“Affiliate”
of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For purposes of this definition, “control,” as used with respect to any
Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies
of such Person, whether through the ownership of voting securities, by agreement or otherwise; provided that beneficial ownership
of 10% or more of the Voting Stock of a Person will be deemed to be control. For purposes of this definition, the terms “controlling,”
“controlled by” and “under common control with” have correlative meanings.

 

    	3

    	 

    

 

“Bank Product”
means each and any of the following bank services and products provided to any Borrower or any other Grantor by any lender under
the Priority Credit Agreement or any Affiliate of any such lender: (a) commercial credit cards, (b) stored value cards and (c)
Treasury Management Arrangement (including controlled disbursement, automated clearinghouse transactions, return items, overdrafts
and interstate depository network services).

 

“Bank Product
Obligations” means any and all obligations of any Borrower or any other Grantor, whether absolute or contingent and
howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof
and substitutions therefor) in connection with any Bank Product.

 

“Bankruptcy
Code” means Title 11 of the United States Code.

 

“Bankruptcy
Law” means the Bankruptcy Code and any similar federal, state or foreign law for the relief of debtors.

 

“Board of Directors”
means: (1) with respect to a corporation, the board of directors of the corporation; (2) with respect to a partnership, the Board
of Directors of the general partner of the partnership; and (3) with respect to any other Person, the board or committee of such
Person serving a similar function.

 

“Borrowers”
means EXXI and EPL.

 

“Business Day”
means each day that is not a Saturday, Sunday or other day on which banking institutions in Houston, Texas or in New York, New
York are authorized or required by law to close.

 

“Capital Stock”
means (a) in the case of a corporation, corporate stock; (b) in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) of corporate stock; (c) in the case of a partnership
or limited liability company, partnership interests (whether general or limited) or membership interests; and (d) any other interest
or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets
of, the issuing Person.

 

“Class”
means (a) in the case of Priority Lien Debt, the Priority Lien Debt, taken together, (b) in the case of Second Lien Debt, every
Series of Second Lien Debt, taken together and (c) in the case of Third Lien Debt, every Series of Third Lien Debt, taken together.

 

“Collateral”
means all of the assets and property of any Grantor, whether real, personal or mixed, constituting the Priority Lien Collateral,
the Second Lien Collateral and/or the Third Lien Collateral.

 

“Credit Facilities”
means, one or more debt facilities (including, without limitation, the Priority Credit Agreement), commercial paper facilities
or capital markets financings, in each case, with banks or other institutional lenders or investors providing for revolving credit
loans, term loans, receivables financing (including through the sale of receivables to such lenders or to special purpose entities
formed to borrow from (or sell receivables to) such lenders against such receivables), letters of credit or capital market financings,
in each case, as amended, restated, modified, renewed, refunded, replaced or refinanced (including refinancing with any capital
markets transaction) in whole or in part from time to time with banks or other institutional lenders or investors.

 

    	4

    	 

    

 

“DIP Financing”
has the meaning assigned to such term in Section 4.02(b).

 

“DIP Financing
Liens” has the meaning assigned to such term in Section 4.02(b).

 

“DIP Lenders”
has the meaning assigned to such term in Section 4.02(b).

 

“Discharge
of Priority Lien Obligations” means the occurrence of all of the following:

 

(a)          termination
or expiration of all commitments to extend credit that would constitute Priority Lien Debt;

 

(b)          payment
in full in cash of the principal of and interest and premium (if any) on all Priority Lien Debt (other than any undrawn letters
of credit);

 

(c)          discharge
or cash collateralization (at the lower of (i) 105% of the aggregate undrawn amount and (ii) the percentage of the aggregate undrawn
amount required for release of Liens under the terms of the applicable Priority Lien Document) of all outstanding letters of credit
constituting Priority Lien Obligations;

 

(d)          payment
of Hedging Obligations constituting Priority Lien Obligations (and, with respect to any particular Hedge Agreement, termination
of such agreement and payment in full in cash of all obligations thereunder or such other arrangements as have been made by the
counterparty thereto (and communicated to the Priority Lien Agent) pursuant to the terms of the Priority Credit Agreement); and

 

(e)          payment
in full in cash of all other Priority Lien Obligations, including without limitation, Bank Product Obligations, that are outstanding
and unpaid at the time the Priority Lien Debt is paid in full in cash (other than any obligations for taxes, costs, indemnifications,
reimbursements, damages and other liabilities in respect of which no claim or demand for payment has been made at or prior to such
time);

 

provided that, if, at any time after
the Discharge of Priority Lien Obligations has occurred, any Borrower enters into any Priority Lien Document evidencing a Priority
Lien Obligation which incurrence is not prohibited by the applicable Secured Debt Documents, then such Discharge of Priority Lien
Obligations shall automatically be deemed not to have occurred for all purposes of this Agreement with respect to such new Priority
Lien Obligations (other than with respect to any actions taken as a result of the occurrence of such first Discharge of Priority
Lien Obligations), and, from and after the date on which EXXI designates such Indebtedness as Priority Lien Debt in accordance
with this Agreement, the obligations under such Priority Lien Document shall automatically and without any further action be treated
as Priority Lien Obligations for all purposes of this Agreement, including for purposes of the Lien priorities and rights in respect
of Collateral set forth in this Agreement, any Second Lien Obligations shall be deemed to have been at all times Second Lien Obligations
and at no time Priority Lien Obligations and any Third Lien Obligations shall be deemed to have been at all times Third Lien Obligations
and at no time Priority Lien Obligations or Second Lien Obligations. For the avoidance of doubt, a Replacement as contemplated
by Section 4.04(a) shall not be deemed to cause a Discharge of Priority Lien Obligations.

 

    	5

    	 

    

 

“Discharge
of Second Lien Obligations” means the occurrence of all of the following:

 

(a)          payment
in full in cash of the principal of and interest and premium (if any) on all Second Lien Debt;

 

(b)          payment
in full in cash of all other Second Lien Obligations that are outstanding and unpaid at the time the Second Lien Debt is paid in
full in cash (other than any obligations for taxes, costs, indemnifications, reimbursements, damages and other liabilities in respect
of which no claim or demand for payment has been made at or prior to such time);

 

provided that, if
at any time after the Discharge of Second Lien Obligations has occurred, any Borrower enters into any Second Lien Document evidencing
a Second Lien Obligation which incurrence is not prohibited by the applicable Secured Debt Documents, then such Discharge of Second
Lien Obligations shall automatically be deemed not to have occurred for all purposes of this Agreement with respect to such new
Second Lien Obligations (other than with respect to any actions taken as a result of the occurrence of such first Discharge of
Second Lien Obligations), and, from and after the date on which EXXI designates such Indebtedness as Second Lien Debt in accordance
with this Agreement, the obligations under such Second Lien Document shall automatically and without any further action be treated
as Second Lien Obligations for all purposes of this Agreement, including for purposes of the Lien priorities and rights in respect
of Collateral set forth in this Agreement, any Third Lien Obligations shall be deemed to have been at all times Third Lien Obligations
and at no time Second Lien Obligations. For the avoidance of doubt, a Replacement as contemplated by Section 4.04(a) shall not
be deemed to cause a Discharge of Second Lien Obligations.

 

“Disposition”
shall mean any sale, lease, exchange, assignment, license, contribution, transfer or other disposition. “Dispose” shall
have a correlative meaning.

 

“Disqualifying
Termination Condition” has the meaning assigned to such term in the Second Lien Indenture.

 

“EPL”
means EPL Oil & Gas, Inc., a Delaware corporation and a wholly owned subsidiary of EXXI, together with its successors and assigns.

 

“EPL Entities”
means EPL and any subsidiary thereof.

 

“Excess Priority
Lien Obligations” means Obligations constituting Priority Lien Obligations for the principal amount of indebtedness
(including letters of credit and reimbursement obligations) under the Priority Credit Agreement and/or any other Credit Facility
pursuant to which Priority Lien Debt has been issued to the extent that such Obligations for principal, letters of credit and reimbursement
obligations are in excess of the amount in clause (a) of the definition of “Priority Lien Cap.”

 

“EXXI”
has the meaning assigned to such term in the preamble hereto.

 

    	6

    	 

    

 

“Governmental
Authority” means the government of the United States or any other nation, or any political subdivision thereof, whether
state, provincial or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other Person exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.

 

“Grand Isle
Gathering System” means Energy XXI Pipeline LLC’s and Energy XXI Pipeline II LLC’s Grand Isle flow line
networks and process facilities, including all pumps, pipelines, gathering systems, headers, separators, tanks, regulators, compressors,
pumps, valves and associated equipment.

 

“Grantor”
means EXXI, each other Borrower, each other subsidiary of EXXI that shall have granted any Lien in favor of any of the Priority
Lien Agent, the Second Lien Collateral Trustee or the Third Lien Collateral Trustee on any of its assets or properties to secure
any of the Secured Obligations, Energy XXI USA, Inc., a Delaware corporation, and Energy XXI Ltd. (f/k/a Energy XXI (Bermuda) Limited),
a corporation organized under the laws of Bermuda.

 

“Hedging Obligations”
means, with respect to any Grantor, the obligations of such Grantor incurred in the normal course of business and consistent with
past practices and not for speculative purposes under:

 

(a)          interest
rate swap agreements, interest rate cap agreements and interest rate collar agreements entered into with one of more financial
institutions and designed to protect such Grantor or any subsidiary thereof entering into the agreement against fluctuations in
interest rates with respect to indebtedness incurred;

 

(b)          foreign
exchange contracts and currency protection agreements entered into with one of more financial institutions and designed to protect
such Grantor or any subsidiary thereof entering into the agreement against fluctuations in currency exchanges rates with respect
to indebtedness incurred;

 

(c)          any
commodity futures contract, commodity option or other similar agreement or arrangement designed to protect against fluctuations
in the price of oil, natural gas or other commodities used, produced, processed or sold by that Grantor or any subsidiary thereof
at the time; and

 

(d)          other
agreements or arrangements designed to protect such Grantor or any subsidiary thereof against fluctuations in interest rates, commodity
prices or currency exchange rates.

 

“Hydrocarbons”
means oil, gas, casinghead gas, drip gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons
and all products refined or separated therefrom.

 

“Hydrocarbon
Interests” means all rights, titles, interests and estates now or hereafter acquired in and to oil and gas leases,
oil, gas and mineral leases, or other liquid or gaseous hydrocarbon leases, mineral fee interests, overriding royalty and royalty
interests, net profit interests and production payment interests, including any reserved or residual interests of whatever nature.

 

    	7

    	 

    

 

“Indenture
Second Lien Documents” means the Second Lien Indenture, the Second Lien Indenture Notes, the Indenture Second Lien
Security Documents and all other loan documents, notes, guarantees, instruments and agreements governing or evidencing the Indenture
Second Lien Obligations or any Second Lien Substitute Facility.

 

“Indenture
Second Lien Obligations” means, with respect to any Grantor, any obligations of such Grantor owed to any Indenture
Second Lien Secured Party (or any of its Affiliates) in respect of the Indenture Second Lien Documents.

 

“Indenture
Second Lien Secured Parties” means, at any time, the Second Lien Trustee, the Second Lien Collateral Trustee, the
trustees, agents and other representatives of the holders of the Second Lien Indenture Notes (including any holders of notes pursuant
to supplements executed in connection with the issuance of any Series of Second Lien Debt under the Second Lien Indenture) who
maintains the transfer register for such Second Lien Indenture Notes or such Series of Second Lien Debt, the beneficiaries of each
indemnification obligation undertaken by any Grantor under any Indenture Second Lien Document and each other holder of, or obligee
in respect of, any Second Lien Indenture Notes, any holder or lender pursuant to any Indenture Second Lien Document outstanding
at such time; provided that the Additional Second Lien Secured Parties shall not be deemed Indenture Second Lien Secured
Parties.

 

“Indenture
Second Lien Security Documents” means the Second Lien Indenture (insofar as the same grants a Lien on the Collateral),
the Second Lien Collateral Trust Agreement, each agreement listed in Part B of Exhibit B hereto and any other security agreements,
pledge agreements, collateral assignments, mortgages, deeds of trust, collateral agency agreements, control agreements, or grants
or transfers for security, now existing or entered into after the date hereof, executed and delivered by EXXI or any other Grantor
creating (or purporting to create) a Lien upon Collateral in favor of the Second Lien Collateral Trustee (including any such agreements,
assignments, mortgages, deeds of trust and other documents or instruments associated with any Second Lien Substitute Facility).

 

“Initial Third
Lien Debt Facility” means Indebtedness secured by a Third Lien for which the requirements of Section 4.04(c) of this
Agreement have been satisfied, as amended, restated, modified, renewed, refunded, restated, restructured, increased, supplemented,
replaced or refinanced in whole or in part from time to time in accordance with each applicable Secured Debt Document.

 

“Initial Third
Lien Documents” means the Initial Third Lien Debt Facility and the Initial Third Lien Security Documents.

 

“Initial Third
Lien Obligations” means, with respect to any Grantor, any obligations of such Grantor owed to any Initial Third Lien
Secured Party (or any of its Affiliates) in respect of the Initial Third Lien Documents.

 

    	8

    	 

    

 

“Initial Third
Lien Secured Parties” means, at any time, the Third Lien Trustee, the Third Lien Collateral Trustee, the trustees,
agents and other representatives of the holders of the Initial Third Lien Debt Facility (including any holders of notes pursuant
to supplements executed in connection with the issuance of Series of Third Lien Debt under the Initial Third Lien Debt Facility)
who maintains the transfer register for such Third Lien Debt, the beneficiaries of each indemnification obligation undertaken by
any Grantor under any Initial Third Lien Document and each other holder of, or obligee in respect of, any Initial Third Lien Obligations,
any holder or lender pursuant to any Initial Third Lien Document outstanding at such time; provided that the Additional Third Lien
Secured Parties shall not be deemed Initial Third Lien Secured Parties.

 

“Initial Third
Lien Security Documents” means the Initial Third Lien Debt Facility (insofar as the same grants a Lien on the Collateral)
and any other security agreements, pledge agreements, collateral assignments, mortgages, deeds of trust, collateral agency agreements,
control agreements, or grants or transfers for security, now existing or entered into after the date hereof, executed and delivered
by EXXI or any other Grantor creating (or purporting to create) a Lien upon the Third Lien Collateral in favor of the Initial Third
Lien Secured Parties (including any such agreements, assignments, mortgages, deeds of trust and other documents or instruments
associated with any Third Lien Substitute Facility).

 

“Insolvency
or Liquidation Proceeding” means:

 

(a)          any
case commenced by or against EXXI, EPL or any other Grantor under the Bankruptcy Code or any other Bankruptcy Law, any other proceeding
for the reorganization, recapitalization or adjustment or marshalling of the assets or liabilities of EXXI, EPL or any other Grantor,
any receivership or assignment for the benefit of creditors relating to EXXI, EPL or any other Grantor or any similar case or proceeding
relative to EXXI, EPL or any other Grantor or its creditors, as such, in each case whether or not voluntary;

 

(b)          any
liquidation, dissolution, marshalling of assets or liabilities or other winding up of or relating to EXXI, EPL or any other Grantor,
in each case whether or not voluntary and whether or not involving bankruptcy or insolvency; or

 

(c)          any
other proceeding of any type or nature in which substantially all claims of creditors of EXXI, EPL or any other Grantor are determined
and any payment or distribution is or may be made on account of such claims.

 

“Lien”
means, with respect to any asset, any mortgage, lien, pledge, charge, security interest, hypothecation, or encumbrance of any kind
in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law, including any conditional
sale or other title retention agreement, any lease in the nature thereof, any agreement to give a security interest therein and
any filing of or agreement to give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction.

 

“Modified ACNTA”
has the meaning set forth in the Second Lien Indenture as in effect on the date hereof, and any component definition used therein
has the meaning set forth in the Second Lien Indenture as in effect on the date hereof.

 

“New York UCC”
means the Uniform Commercial Code as from time to time in effect in the State of New York.

 

    	9

    	 

    

 

“Obligations”
means any principal (including reimbursement obligations and obligations to provide cash collateral with respect to letters of
credit whether or not drawn), interest (including, to the extent legally permitted, all interest accrued thereon after the commencement
of any Insolvency or Liquidation Proceeding at the rate, including any applicable post-default rate even if such interest is not
enforceable, allowable or allowed as a claim in such proceeding), premium (if any), fees, indemnifications, reimbursements, expenses
and other liabilities payable under the documentation governing any Indebtedness.

 

“Officer”
means, with respect to any Person, the Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating Officer,
the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary, any Senior Vice President,
any Vice President or any Assistant Vice President of such Person.

 

“Officers’
Certificate” means a certificate signed on behalf of EXXI by any Officers of EXXI.

 

“Oil and Gas
Properties” means (a) Hydrocarbon Interests; (b) the Properties now or hereafter pooled or unitized with Hydrocarbon
Interests; (c) all presently existing or future unitization, pooling agreements and declarations of pooled units and the units
created thereby (including without limitation all units created under orders, regulations and rules of any governmental authority)
that may affect all or any portion of the Hydrocarbon Interests; (d) all operating agreements, contracts and other agreements,
including production sharing contracts and agreements, that relate to any of the Hydrocarbon Interests or the production, sale,
purchase, exchange or processing of Hydrocarbons from or attributable to such Hydrocarbon Interests; (e) all Hydrocarbons in and
under and that may be produced and saved or attributable to the Hydrocarbon Interests, including all oil in tanks, and all rents,
issues, profits, proceeds, products, revenues and other incomes from or attributable to the Hydrocarbon Interests; (f) all tenements,
hereditaments, appurtenances and Properties in any manner appertaining, belonging, affixed or incidental to the Hydrocarbon Interests
and (g) all Properties, rights, titles, interests and estates described or referred to above, including any and all Property, real
or personal, now owned or hereinafter acquired and situated upon, used, held for use or useful in connection with the operating,
working or development of any of such Hydrocarbon Interests or Property (excluding drilling rigs, automotive equipment, rental
equipment or other personal Property that may be on such premises for the purpose of drilling a well or for other similar temporary
uses) and including any and all oil wells, gas wells, injection wells or other wells, buildings, structures, fuel separators, liquid
extraction plants, plant compressors, pumps, pumping units, field gathering systems, tanks and tank batteries, fixtures, valves,
fittings, machinery and parts, engines, boilers, meters, apparatus, equipment, appliances, tools, implements, cables, wires, towers,
casing, tubing and rods, surface leases, rights-of-way, easements and servitudes, together with all additions, substitutions, replacements,
accessions and attachments to any and all of the foregoing.

 

“Original Priority
Lien Agent” has the meaning assigned to such term in the preamble hereto.

 

“Original Second
Lien Collateral Trustee” has the meaning assigned to such term in the preamble hereto.

 

    	10

    	 

    

 

“Original Second
Lien Trustee” means U.S. Bank National Association, in its capacity as trustee under the Second Lien Indenture, and
together with its successors in such capacity.

 

“Person”
means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization,
limited liability company or government or other entity.

 

“Priority Confirmation
Joinder” means an agreement substantially in the form of Exhibit A.

 

“Priority Credit
Agreement” means the Second Amended and Restated First Lien Credit Agreement, dated as of May 5, 2011, among EXXI
and EPL as borrowers, the Original Priority Lien Agent, the lenders party thereto from time to time and the other agents named
therein, as amended, restated, adjusted, waived, renewed, extended, supplemented or otherwise modified from time to time with the
same and/or different lenders and/or agents and any credit agreement, loan agreement, note agreement, promissory note, indenture
or any other agreement or instrument evidencing or governing the terms of any Priority Substitute Facility.

 

“Priority Lien”
means a Lien granted by any Borrower or Grantor in favor of the Priority Lien Collateral Agent, at any time, upon any Property
of such Borrower or Grantor to secure Priority Lien Obligations (including Liens on such Collateral under the security documents
associated with any Priority Substitute Credit Facility).

 

“Priority Lien
Agent” means the Original Priority Lien Agent, and, from and after the date of execution and delivery of a Priority
Substitute Facility, the agent, collateral agent, trustee or other representative of the lenders or holders of the indebtedness
and other Obligations evidenced thereunder or governed thereby, in each case, together with its successors in such capacity.

 

“Priority Lien
Cap” means, as of any date, without duplication, (a) the principal amount of indebtedness under the Priority Credit
Agreement and/or any other Credit Facility (including letters of credit and reimbursement obligations) pursuant to which Priority
Lien Debt has been issued in an aggregate principal amount not in excess of the greatest of (i) $500,000,000, (ii) the Borrowing
Base (including any component definition used therein, each as defined in the Second Lien Indenture as in effect on the date hereof)
in effect at the time of such incurrence and (iii) prior to the date that the EPL Entities become guarantors in accordance with
the terms of the Second Lien Indenture as in effect on the date hereof, (x) 12.5% of Modified ACNTA on the date of incurrence and
(y) thereafter, 15.0% of Modified ACNTA on the date of incurrence, plus (b) the amount of all Hedging Obligations, to the
extent such Hedging Obligations are secured by the Priority Liens, plus (c) the amount of all Bank Product Obligations,
plus (d) the amount of accrued and unpaid interest (excluding any interest paid-in-kind) and outstanding fees, to the extent
such Obligations are secured by the Priority Liens. For purposes of this definition, all letters of credit will be valued at the
face amount thereof, whether or not drawn.

 

“Priority Lien
Collateral” shall mean all “Collateral”, as defined in the Priority Credit Agreement or any other Priority
Lien Document, and any other assets of any Grantor now or at any time hereafter subject to Liens which secure, but only to the
extent securing, any Priority Lien Obligation.

 

    	11

    	 

    

 

“Priority Lien
Debt” means the indebtedness under the Priority Credit Agreement (including letters of credit and reimbursement obligations
with respect thereto) that was permitted to be incurred and secured under the Priority Credit Agreement, the Second Lien Indenture,
any Additional Second Lien Debt Facility, any Second Lien Substitute Facility, any Initial Third Lien Debt Facility, any Additional
Third Lien Debt Facility and any Third Lien Substitute Facility (or as to which the lenders under the Priority Credit Agreement
obtained an Officers’ Certificate at the time of incurrence to the effect that such indebtedness was permitted to be incurred
and secured by all applicable Secured Debt Documents) and additional indebtedness under any Priority Substitute Credit Facility.
For purposes of this Agreement, indebtedness under the Priority Credit Agreement is permitted to be incurred under each of the
Second Lien Indenture and any Third Lien Indenture.

 

“Priority Lien
Documents” means the Priority Credit Agreement, the Priority Lien Security Documents, the other “Loan Documents”
(as defined in the Priority Credit Agreement) and all other loan documents, notes, guarantees, instruments and agreements governing
or evidencing, or executed or delivered in connection with, any Priority Substitute Credit Facility.

 

“Priority Lien
Obligations” means the Priority Lien Debt and all other Obligations in respect of or in connection with Priority
Lien Debt together with Hedging Obligations and the Bank Product Obligations. Notwithstanding any other provision hereof, the term
“Priority Lien Obligations” will include accrued interest, fees, costs, and other charges incurred under the Priority
Credit Agreement and the other Priority Lien Documents, whether incurred before or after commencement of an Insolvency or Liquidation
Proceeding, and whether or not allowable in an Insolvency or Liquidation Proceeding. To the extent that any payment with respect
to the Priority Lien Obligations (whether by or on behalf of the Borrowers, as proceeds of security, enforcement of any right of
set-off, or otherwise) is declared to be fraudulent or preferential in any respect, set aside, or required to be paid to a debtor
in possession, trustee, receiver, or similar Person, then the obligation or part thereof originally intended to be satisfied will
be deemed to be reinstated and outstanding as if such payment had not occurred.

 

“Priority Lien
Secured Parties” means, at any time, the Priority Lien Agent, each lender or issuing bank under the Priority Credit
Agreement, each holder, provider or obligee of any Hedging Obligations and Bank Product Obligations that is a lender under the
Priority Credit Agreement or an Affiliate (as defined herein or in the Priority Credit Agreement) thereof and is a secured party
(or a party entitled to the benefits of the security) under any Priority Lien Document, the beneficiaries of each indemnification
obligation undertaken by any Grantor under any Priority Lien Document, each other Person that provides letters of credit, guarantees
or other credit support related thereto under any Priority Lien Document and each other holder of, or obligee in respect of, any
Priority Lien Obligations (including pursuant to a Priority Substitute Credit Facility), in each case to the extent designated
as a secured party (or a party entitled to the benefits of the security) under any Priority Lien Document outstanding at such time.

 

    	12

    	 

    

 

“Priority Lien
Security Documents” means the Priority Credit Agreement (insofar as the same grants a Lien on the Collateral), each
agreement listed in Part A of Exhibit B hereto, and any other security agreements, pledge agreements, collateral assignments, mortgages,
deeds of trust, control agreements, or grants or transfers for security, now existing or entered into after the date hereof, executed
and delivered by EXXI or any other Grantor creating (or purporting to create) a Lien upon Collateral in favor of the Priority Lien
Agent (including any such agreements, assignments, mortgages, deeds of trust and other documents or instruments associated with
any Priority Substitute Credit Facility).

 

“Priority Substitute
Credit Facility” means any Credit Facility with respect to which the requirements contained in Section 4.04(a) of
this Agreement have been satisfied and that Replaces the Priority Credit Agreement then in existence. For the avoidance of doubt,
no Priority Substitute Credit Facility shall be required to be a revolving or asset-based loan facility and may be a facility evidenced
or governed by a credit agreement, loan agreement, note agreement, promissory note, indenture or any other agreement or instrument;
provided that any Priority Lien securing such Priority Substitute Credit Facility shall be subject to the terms of this
Agreement for all purposes (including the lien priorities as set forth herein as of the date hereof).

 

“Property”
means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including,
without limitation, cash, securities, accounts and contract rights.

 

“Proved Reserves”
means “Proved Reserves” as defined in the Definitions for Oil and Gas Reserves (the “Reserve Definitions”)
promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.

 

“Replaces”
means, (a) in respect of any agreement with reference to the Priority Credit Agreement or the Priority Lien Obligations or any
Priority Substitute Credit Facility, that such agreement refunds, refinances or replaces the Priority Credit Agreement, the Priority
Lien Obligations or such Priority Substitute Credit Facility in whole (in a transaction that is in compliance with Section 4.04(a))
and that all commitments thereunder are terminated, or, to the extent permitted by the terms of the Priority Credit Agreement,
Priority Lien Obligations or such Priority Substitute Credit Facility, in part, (b) in respect of any agreement with reference
to the Second Lien Documents, the Second Lien Obligations or any Second Lien Substitute Facility, that such indebtedness refunds,
refinances or replaces the Second Lien Documents, the Second Lien Obligations or such Second Lien Substitute Facility in whole
(in a transaction that is in compliance with Section 4.04(a)) and that all commitments thereunder are terminated, or, to the extent
permitted by the terms of the Second Lien Documents, the Second Lien Obligations or such Second Lien Substitute Facility, in part
and (c) in respect of any agreement with reference to the Third Lien Documents, the Third Lien Obligations or any Third Lien Substitute
Facility, that such indebtedness refunds, refinances or replaces the Third Lien Documents, the Third Lien Obligations or such Third
Lien Substitute Facility in whole (in a transaction that is in compliance with Section 4.04(a)) and that all commitments thereunder
are terminated, or, to the extent permitted by the terms of the Third Lien Documents, the Third Lien Obligations, or such Third
Lien Substitute Facility, in part. “Replace,” “Replaced” and “Replacement”
shall have correlative meanings.

 

    	13

    	 

    

 

“Reserve Report”
means (a) from the date hereof until the date upon which the initial reserve report described in clause (b)(i) is completed, the
internal reserve report concerning Oil and Gas Properties of EXXI as of December 31, 2014, prepared by EXXI’s petroleum engineers
and (b) thereafter, (i) a reserve report estimating the discounted future net revenue from Proved Reserves of the Grantors, prepared
as of the end of EXXI’s most recently completed fiscal year, which reserve report is prepared or reviewed or audited by an
independent petroleum engineer as to Proved Reserves accounting for at least 80% of all discounted future net revenue from all
of the Grantors’ Proved Reserves and by EXXI’s petroleum engineers with respect to any other such Proved Reserves covered
by such report and (ii) a reserve report estimating the discounted future net revenue from Proved Reserves of the Grantors prepared
by EXXI’s petroleum engineers as of the date that is six months after the end of EXXI’s most recently completed fiscal
year, and in each case with such estimates calculated in accordance with SEC guidelines (but utilizing the five-year strip price
for crude oil (WTI Cushing), for natural gas liquids (Mont Belvieu) and natural gas (Henry Hub), with such price held flat for
each subsequent year, quoted on the New York Mercantile Exchange (or its successor) on the “as of” date of such Reserve
Report.

 

“Second Lien”
means a Lien granted by a Second Lien Document to the Second Lien Collateral Trustee, at any time, upon any Collateral by any Grantor
to secure Second Lien Obligations (including Liens on such Collateral under the security documents associated with any Second Lien
Substitute Facility).

 

“Second Lien
Collateral” shall mean all “Collateral”, as defined in any Second Lien Document, and any other assets
of any Grantor now or at any time hereafter subject to Liens which secure, but only to the extent securing, any Second Lien Obligations.

 

“Second Lien
Collateral Trust Agreement” means the Collateral Trust Agreement, dated as of March 12, 2015, among EXXI, the other
Grantors from time to time party thereto, the Second Lien Trustee, the other Second Lien Representatives from time to time party
thereto and the Second Lien Collateral Trustee, as amended, restated, adjusted, waived, renewed, extended, supplemented or otherwise
modified from time to time, in accordance with each applicable Second Lien Document.

 

“Second Lien
Collateral Trustee” means the Original Second Lien Collateral Trustee, and, from and after the date of execution
and delivery of a Second Lien Substitute Facility, the agent, collateral agent, trustee or other representative of the lenders
or other holders of the indebtedness and other obligations evidence thereunder or governed thereby, in each case, together with
its successors in such capacity.

 

“Second Lien
Debt” means the indebtedness under the Second Lien Indenture Notes issued on the date hereof and guarantees thereof
and all additional indebtedness incurred under any Additional Second Lien Documents and all additional indebtedness in respect
of Additional Notes and guarantees thereof, in each case, that was permitted to be incurred and secured in accordance with the
Secured Debt Documents and with respect to which the requirements of Section 4.04(b) have been (or are deemed) satisfied, and all
Indebtedness incurred under any Second Lien Substitute Facility.

 

“Second Lien
Documents” means the Indenture Second Lien Documents and the Additional Second Lien Documents.

 

    	14

    	 

    

 

“Second Lien
Indenture” means the Indenture, dated as of March 12, 2015, among EXXI, the Grantors party thereto from time to time,
the Second Lien Collateral Trustee and the Second Lien Trustee, as amended, restated, adjusted, waived, renewed, extended, supplemented
or otherwise modified from time to time in accordance with the terms hereof (including any supplements executed in connection with
the issuance of any Series of Second Lien Debt under the Second Lien Indenture) unless restricted by the terms of this Agreement,
and any credit agreement, loan agreement, note agreement, promissory note, indenture or any other agreement or instrument evidencing
or governing the terms of any Second Lien Substitute Facility.

 

“Second Lien
Indenture Notes” means (i) the 11.000% Senior Secured Second Lien Notes due 2020 issued under the Second Lien Indenture
on the date hereof, and (ii) any Additional Notes for which the requirements of Section 3.8 of the Second Lien Collateral Trust
Agreement have been satisfied.

 

“Second Lien
Obligations” means Second Lien Debt and all other Obligations in respect thereof. Notwithstanding any other provision
hereof, the term “Second Lien Obligations” will include accrued interest, fees, costs, and other charges incurred under
the Second Lien Indenture and the other Second Lien Documents, whether incurred before or after commencement of an Insolvency or
Liquidation Proceeding and whether or not allowable in an Insolvency or Liquidation Proceeding.

 

“Second Lien
Purchasers” has the meaning assigned to such term in Section 3.06.

 

“Second Lien
Representative” means (a) in the case of the Second Lien Indenture Notes, the Second Lien Trustee, and (b) in the
case of any other Series of Second Lien Debt, the trustee, agent or representative of the holders of such Series of Second Lien
Debt who (a) is appointed as a Second Lien Representative (for purposes related to the administration of the security documents)
pursuant to the indenture, credit agreement or other agreement governing such Series of Second Lien Debt, together with its successors
in such capacity, and (b) has become party to the Second Lien Collateral Trust Agreement by executing a joinder in the form required
under the Second Lien Collateral Trust Agreement.

 

“Second Lien
Secured Parties” means the Indenture Second Lien Secured Parties and the Additional Second Lien Secured Parties.

 

“Second Lien
Security Documents” means the Indenture Second Lien Security Documents and the Additional Second Lien Security Documents.

 

“Second Lien
Standstill Period” has the meaning assigned to such term in Section 3.02(a)(i).

 

“Second Lien
Substitute Facility” means any facility with respect to which the requirements contained in Section 4.04(a) of this
Agreement have been satisfied and that is permitted to be incurred pursuant to the Priority Lien Documents, the proceeds of which
are used to, among other things, Replace the Second Lien Indenture and/or any Additional Second Lien Debt Facility then in existence.
For the avoidance of doubt, no Second Lien Substitute Facility shall be required to be evidenced by notes or other instruments
and may be a facility evidenced or governed by a credit agreement, loan agreement, note agreement, promissory note, indenture or
any other agreement or instrument; provided that any such Second Lien Substitute Facility shall be subject to the terms
of this Agreement for all purposes (including the lien priority as set forth herein as of the date hereof) as the other Liens securing
the Second Lien Obligations are subject to under this Agreement.

 

    	15

    	 

    

 

“Second Lien
Trustee” means the Original Second Lien Trustee, and, from and after the date of execution and delivery of the Second
Lien Substitute Facility, the agent, collateral agent, trustee or other representative of the lenders or other holders of the indebtedness
and other obligations evidenced thereunder or governed thereby, together with its successors in such capacity.

 

“Secured Debt
Documents” means the Priority Lien Documents, the Second Lien Documents and the Third Lien Documents.

 

“Secured Debt
Representative” means the Priority Lien Agent, the Second Lien Collateral Trustee and the Third Lien Collateral Trustee.

 

“Secured Obligations”
means the Priority Lien Obligations, the Second Lien Obligations and the Third Lien Obligations.

 

“Secured Parties”
means the Priority Lien Secured Parties, the Second Lien Secured Parties and the Third Lien Secured Parties.

 

“Security Documents”
means the Priority Lien Security Documents, the Second Lien Security Documents and the Third Lien Security Documents.

 

“Series of
Second Lien Debt” means, severally, the Second Lien Indenture Notes and each other issue or series of Second Lien
Debt (including any Additional Second Lien Debt Facility) for which a single transfer register is maintained.

 

“Series of
Secured Debt” means the Priority Lien Debt, each Series of Second Lien Debt and each Series of Third Lien Debt.

 

“Series of
Third Lien Debt” means, severally, the Initial Third Lien Debt Facility and each other issue or series of Third Lien
Debt (including any Additional Third Lien Debt Facility) for which a single transfer register is maintained.

 

“subsidiary”
means, with respect to any specified Person: (1) any corporation, association, limited liability company or other business entity
(other than a partnership) of which more than 50% of the total voting power of Voting Stock is at the time owned or controlled,
directly or through another subsidiary, by that Person or one or more of the other subsidiaries of that Person (or a combination
thereof); and (2) any partnership (a) the sole general partner or the managing general partner of which is such Person or a subsidiary
of such Person or (b) the only general partners of which are that Person or one or more subsidiaries of that Person (or any combination
thereof), or (c) as to which such Person and its subsidiaries are entitled to receive more than 50% of the assets of such partnership
upon its dissolution.

 

    	16

    	 

    

 

“Standstill
Period” means the Second Lien Standstill Period, the Third Lien First Standstill Period and the Third Lien Second
Standstill Period, as applicable.

 

“Third Lien”
means a Lien granted by a Third Lien Document to the Third Lien Collateral Trustee, at any time, upon any Collateral by any Grantor
to secure Third Lien Obligations (including Liens on such Collateral under the security documents associated with any Third Lien
Substitute Facility).

 

“Third Lien
Collateral” shall mean all “Collateral”, as defined in any Third Lien Document, and any other assets
of any Grantor now or at any time hereafter subject to Liens which secure, but only to the extent securing, any Third Lien Obligations.

 

“Third Lien
Collateral Trust Agreement” means from and after the date of execution and delivery of the Initial Third Lien Debt
Facility, a collateral trust agreement entered into among EXXI, the other Grantors, the Third Lien Trustee, the other Third Lien
Representatives and the Third Lien Collateral Trustee, as amended, restated, adjusted, waived, renewed, extended, supplemented
or otherwise modified from time to time, in accordance with each applicable Third Lien Document.

 

“Third Lien
Collateral Trustee” means from and after the date of execution and delivery of the Initial Third Lien Debt Facility,
the agent, collateral agent, trustee or other representative of the lenders or other holders of the indebtedness and other obligations
evidence thereunder or governed thereby, in each case, together with its successors in such capacity.

 

“Third Lien
Debt” means indebtedness under the Initial Third Lien Debt Facility and indebtedness incurred under any Additional
Third Lien Documents and with respect to which the requirements of Section 4.04(c) have been satisfied, and all indebtedness incurred
under any Third Lien Substitute Facility.

 

“Third Lien
Documents” means the Initial Third Lien Documents, the Additional Third Lien Documents and all other loan documents,
notes, guarantees, instruments and agreements governing or evidencing any Third Lien Substitute Facility.

 

“Third Lien
First Standstill Period” has the meaning assigned to such term in Section 3.02(a)(ii).

 

“Third Lien
Obligations” means Third Lien Debt and all other Obligations in respect thereof. Notwithstanding any other provision
hereof, the term “Third Lien Obligations” will include accrued interest, fees, costs, and other charges incurred under
the Third Lien Documents, whether incurred before or after commencement of an Insolvency or Liquidation Proceeding.

 

“Third Lien
Representative” means (a) in the case of the Initial Third Lien Debt Facility, the Third Lien Trustee and (b) in
the case of any Series of Third Lien Debt, the trustee, agent or representative of the holders of such Series of Third Lien Debt
who (a) is appointed as a Third Lien Representative (for purposes related to the administration of the security documents) pursuant
to the indenture, credit agreement or other agreement governing such Series of Third Lien Debt, together with its successors in
such capacity, and (b) has become party to the Third Lien Collateral Trust Agreement by executing a joinder in the form required
under the Third Lien Collateral Trust Agreement.

 

    	17

    	 

    

 

“Third Lien
Second Standstill Period” has the meaning assigned to such term in Section 3.02(b).

 

“Third Lien
Secured Parties” means the Initial Third Lien Secured Parties and the Additional Third Lien Secured Parties.

 

“Third Lien
Security Documents” means the Initial Third Lien Secured Documents and the Additional Third Lien Security Documents.

 

“Third Lien
Substitute Facility” means any facility with respect to which the requirements contained in Section 4.04(a) of this
Agreement have been satisfied and that is permitted to be incurred pursuant to the Priority Lien Documents and the Second Lien
Documents, the proceeds of which are used to, among other things, Replace any Initial Third Lien Debt Facility and/or Additional
Third Lien Debt Facility then in existence. For the avoidance of doubt, no Third Lien Substitute Facility shall be required to
be evidenced by notes or other instruments and may be a facility evidenced or governed by a credit agreement, loan agreement, note
agreement, promissory note, indenture or any other agreement or instrument; provided that any such Third Lien Substitute
Facility shall be subject to the terms of this Agreement for all purposes (including the lien priority as set forth herein as of
the date hereof) as the other Liens securing the Third Lien Obligations are subject to under this Agreement.

 

“Third Lien
Trustee” means, from and after the date of execution and delivery of the Initial Third Lien Debt Facility or Third
Lien Substitute Facility, the agent, collateral agent, trustee or other representative of the lenders or other holders of the indebtedness
and other obligations evidenced thereunder or governed thereby, together with its successors in such capacity.

 

“TIA”
means the Trust Indenture Act of 1939 (15 U.S.C. Section 77aaa-77bbbb) as in effect on the date hereof.

 

“Treasury Management
Arrangement” means any agreement or other arrangement governing the provision of treasury or cash management services,
including deposit accounts, overdraft, credit or debit card, funds transfer, automated clearinghouse, zero balance accounts, returned
check concentration, controlled disbursement, lockbox, account reconciliation and reporting and trade finance services and other
cash management services.

 

“Voting Stock”
of any Person as of any date means the Capital Stock of such Person that is at the time entitled (without regard to the occurrence
of any contingency) to vote in the election of the Board of Directors of such Person.

 

Article
II

LIEN PRIORITIES

 

SECTION
2.01.         Relative Priorities. (a) The grant of the Priority Liens
pursuant to the Priority Lien Documents, the grant of the Second Liens pursuant to the Second Lien Documents and the grant of the
Third Liens pursuant to the Third Lien Documents create three separate and distinct Liens on the Collateral.

 

    	18

    	 

    

 

(b)          Notwithstanding
anything contained in this Agreement, the Priority Lien Documents, the Second Lien Documents, the Third Lien Documents or any other
agreement or instrument or operation of law to the contrary, or any other circumstance whatsoever and irrespective of (i) how a
Lien was acquired (whether by grant, possession, statute, operation of law, subrogation, or otherwise), (ii) the time, manner,
or order of the grant, attachment or perfection of a Lien, (iii) any conflicting provision of the New York UCC or other applicable
law, (iv) any defect in, or non-perfection, setting aside, or avoidance of, a Lien or a Priority Lien Document, a Second Lien Document
or a Third Lien Document, (v) the modification of a Priority Lien Obligation, a Second Lien Obligation or a Third Lien Obligation,
or (vi) the subordination of a Lien on Collateral securing a Priority Lien Obligation to a Lien securing another obligation of
the Borrower or other Person that is permitted under the Priority Lien Documents as in effect on the date hereof or securing a
DIP Financing, each of the Second Lien Collateral Trustee, on behalf of itself and the other Second Lien Secured Parties, and the
Third Lien Collateral Trustee, on behalf of itself and the other Third Lien Secured Parties, hereby agrees that (i) any Priority
Lien on any Collateral now or hereafter held by or for the benefit of any Priority Lien Secured Party shall be senior in right,
priority, operation, effect and all other respects to (x) any and all Second Liens on any Collateral and (y) any and all Third
Liens on any Collateral, (ii) any Second Lien on any Collateral now or hereafter held by or for the benefit of any Second Lien
Secured Party shall be (x) junior and subordinate in right, priority, operation, effect and all other respects to any and all Priority
Liens on any Collateral, in any case, subject to the Priority Lien Cap as provided herein and (y) senior in right, priority, operation,
effect and all other respects to any and all Third Liens on any Collateral and (iii) any Third Lien on any Collateral now or hereafter
held by or for the benefit of any Third Lien Secured Party shall be junior and subordinate in right, priority, operation, effect
and all other respects to (x) any and all Priority Liens on any Collateral, in any case, subject to the Priority Lien Cap as provided
herein and (y) any and all Second Liens on any Collateral.

 

(c)          It
is acknowledged that, subject to the Priority Lien Cap (as provided herein), (i) the aggregate amount of the Priority Lien Obligations
may be increased from time to time pursuant to the terms of the Priority Lien Documents, (ii) a portion of the Priority Lien Obligations
consists or may consist of indebtedness that is revolving in nature, and the amount thereof that may be outstanding at any time
or from time to time may be increased or reduced and subsequently reborrowed, and (iii) (1) the Priority Lien Documents may be
replaced, restated, supplemented, restructured or otherwise amended or modified from time to time and (2) the Priority Lien Obligations
may be increased, extended, renewed, replaced, restated, supplemented, restructured, repaid, refunded, refinanced or otherwise
amended or modified from time to time, in the case of the foregoing (1) and (2) all without affecting the subordination of the
Second Liens or Third Liens hereunder or the provisions of this Agreement defining the relative rights of the Priority Lien Secured
Parties, the Second Lien Secured Parties and the Third Lien Secured Parties. The lien priorities provided for herein shall not
be altered or otherwise affected by any amendment, modification, supplement, extension, increase, renewal, restatement or Replacement
of either the Priority Lien Obligations (or any part thereof), the Second Lien Obligations (or any part thereof) or the Third Lien
Obligations (or any part thereof), by the release of any Collateral or of any guarantees for any Priority Lien Obligations or by
any action that any Secured Debt Representative or Secured Party may take or fail to take in respect of any Collateral.

 

    	19

    	 

    

 

SECTION
2.02.         Prohibition on Marshalling, Etc. (a)  Until
the Discharge of Priority Lien Obligations, the Second Lien Collateral Trustee will not assert any marshalling, appraisal, valuation,
or other similar right that may otherwise be available to a junior secured creditor.

 

(b)          Until
the Discharge of Priority Lien Obligations and the Discharge of Second Lien Obligations, the Third Lien Collateral Trustee will
not assert any marshalling, appraisal, valuation, or other similar right that may otherwise be available to a junior secured creditor.

 

SECTION
2.03.         No New Liens. The parties hereto agree that, (i) so long
as the Discharge of Priority Lien Obligations has not occurred, none of the Grantors shall, nor shall any Grantor permit any of
its subsidiaries to, (a) grant or permit any additional Liens on any asset of a Grantor to secure any Third Lien Obligation, or
take any action to perfect any additional Liens, unless it has granted, or substantially concurrently therewith grants (or offers
to grant), a Lien on such asset of such Grantor to secure (x) the Priority Lien Obligations and has taken all actions required
to perfect such Liens and (y) the Second Lien Obligations and has taken all actions required to perfect such Liens; provided,
however, the refusal or inability of the Priority Lien Agent or the Second Lien Collateral Trustee to accept such Lien will
not prevent the Third Lien Collateral Trustee from taking the Lien, (b) grant or permit any additional Liens on any asset of a
Grantor to secure any Second Lien Obligation, or take any action to perfect any additional Liens, unless it has granted, or substantially
concurrently therewith grants (or offers to grant), a Lien on such asset of such Grantor to secure (x) the Priority Lien Obligations
and has taken all actions required to perfect such Liens and (y) the Third Lien Obligations and has taken all actions required
to perfect such Liens; provided, however, the refusal or inability of the Priority Lien Agent or the Third Lien Collateral
Trustee to accept such Lien will not prevent the Second Lien Collateral Trustee from taking the Lien or (c) grant or permit any
additional Liens on any asset of a Grantor to secure any Priority Lien Obligation, or take any action to perfect any additional
Liens, unless it has granted, or substantially concurrently therewith grants (or offers to grant), a Lien on such asset of such
Grantor to secure (x) the Second Lien Obligations and has taken all actions required to perfect such Liens and (y) the Third Lien
Obligations and has taken all actions required to perfect such Liens; provided, however, (1)
no Grantor shall be required to grant a Lien on any assets of EPL and its Subsidiaries to secure the Second Lien Obligations or
the Third Lien Obligations prior to the occurrence of the Disqualifying Condition Termination (as defined in the Second Lien Indenture)
or on Excluded Assets (as defined in the Indenture Second Lien Security Documents) and (2) the refusal or inability of the
Second Lien Collateral Trustee or the Third Lien Collateral Trustee to accept such Lien will not prevent the Priority Lien Agent
from taking the Lien and (ii) after the Discharge of Priority Lien Obligations but prior to the Discharge of Second Lien Obligations,
none of the Grantors shall, nor shall any Grantor permit any of its subsidiaries to, (a) grant or permit any additional Liens on
any asset of a Grantor to secure any Second Lien Obligation, or take any action to perfect any additional Liens, unless it has
granted, or substantially concurrently therewith grants (or offers to grant), a Lien on such asset of such Grantor to secure the
Third Lien Obligations; provided, however, the refusal or inability of the Third Lien Collateral Trustee to accept
such Lien will not prevent the Second Lien Collateral Trustee from taking the Lien or (b) grant or permit any additional Liens
on any asset of a Grantor to secure any Third Lien Obligations unless it has granted, or substantially concurrently therewith grants
(or offers to grant), a Lien on such asset of a Grantor to secure the Second Lien Obligations and has taken all actions required
to perfect such Liens; provided, however, the refusal or inability of the Second Lien Collateral Trustee to accept
such Lien will not prevent the Third Lien Collateral Trustee from taking the Lien, with each such Lien as described in clauses
(i) and (ii) of this Section 2.03 to be subject to the provisions of this Agreement. To the extent that the provisions of the immediately
preceding sentence are not complied with for any reason, without limiting any other right or remedy available to the Priority Lien
Agent, the other Priority Lien Secured Parties, the Second Lien Collateral Trustee or the other Second Lien Secured Parties, each
of the Second Lien Collateral Trustee, for itself and on behalf of the other Second Lien Secured Parties and the Third Lien Collateral
Trustee, for itself and on behalf of the other Third Lien Secured Parties, agrees that any amounts received by or distributed to
any Second Lien Secured Party or Third Lien Secured Party, as applicable, pursuant to or as a result of any Lien granted in contravention
of this Section 2.03 shall be subject to Section 3.05(b).

 

    	20

    	 

    

 

SECTION
2.04.         Similar Collateral and Agreements. The parties hereto
acknowledge and agree that it is their intention that the Priority Lien Collateral, the Second Lien Collateral and the Third Lien
Collateral be identical (it being understood the Second Lien Collateral and Third Lien Collateral shall not include a grant of
a Lien on the assets of EPL and its Subsidiaries prior to the occurrence of the Disqualifying Termination Condition). In furtherance
of the foregoing, the parties hereto agree (a) to cooperate in good faith in order to determine, upon any reasonable request by
the Priority Lien Agent, the Second Lien Collateral Trustee or the Third Lien Collateral Trustee, the specific assets included
in the Priority Lien Collateral, the Second Lien Collateral and the Third Lien Collateral, the steps taken to perfect the Priority
Liens, the Second Liens and the Third Liens thereon and the identity of the respective parties obligated under the Priority Lien
Documents, the Second Lien Documents and the Third Lien Documents in respect of the Priority Lien Obligations, the Second Lien
Obligations and the Third Lien Obligations, respectively, (b) that the Second Lien Security Documents creating Liens on the Collateral
shall be in all material respects the same forms of documents as the respective Priority Lien Security Documents creating Liens
on the Collateral other than (i) with respect to the priority nature of the Liens created thereunder in such Collateral, (ii) such
other modifications to such Second Lien Security Documents which are less restrictive than the corresponding Priority Lien Security
Documents, (iii) provisions in the Second Lien Security Documents which are solely applicable to the rights and duties of the Second
Lien Collateral Trustee and/or the Second Lien Trustee, and (iv) with such deletions or modifications of representations, warranties
and covenants as are customary with respect to security documents establishing Liens securing publicly traded debt securities,
(c) that the Third Lien Security Documents creating Liens on the Collateral shall be in all material respects the same forms of
documents as the respective Priority Lien Security Documents and Second Lien Security Documents creating Liens on the Collateral
other than (i) with respect to the priority nature of the Liens created thereunder in such Collateral, (ii) such other modifications
to such Third Lien Security Documents which are less restrictive than the corresponding Priority Lien Security Documents and Second
Lien Security Documents, (iii) provisions in the Third Lien Security Documents which are solely applicable to the rights and duties
of the Third Lien Collateral Trustee, and (iv) with such deletions or modifications of representations, warranties and covenants
as are customary with respect to security documents establishing Liens securing publicly traded debt securities, (d) that at no
time shall there be any Grantor that is an obligor in respect of the Second Lien Obligations that is not also an obligor in respect
of the Priority Lien Obligations and (e) that at no time shall there be any Grantor that is an obligor in respect of the Third
Lien Obligations that is not also an obligor in respect of the Priority Lien Obligations and the Second Lien Obligations.

 

    	21

    	 

    

 

SECTION
2.05.         No Duties of Priority Lien Agent. Each of the Second Lien
Collateral Trustee, for itself and on behalf of each Second Lien Secured Party, and the Third Lien Collateral Trustee, for itself
and on behalf of each Third Lien Secured Party, acknowledges and agrees that neither the Priority Lien Agent nor any other Priority
Lien Secured Party shall have any duties or other obligations to any such Second Lien Secured Party or Third Lien Secured Party
with respect to any Collateral, other than to transfer to the Second Lien Collateral Trustee any remaining Collateral and any proceeds
of the sale or other Disposition of any such Collateral remaining in its possession following the associated Discharge of Priority
Lien Obligations, in each case without representation or warranty on the part of the Priority Lien Agent or any Priority Lien Secured
Party. In furtherance of the foregoing, each Second Lien Secured Party and Third Lien Secured Party acknowledges and agrees that
until the Discharge of Priority Lien Obligations (subject to the terms of Section 3.02, including the rights of the Second Lien
Secured Parties and the Third Lien Secured Parties following the expiration of any applicable Standstill Period), the Priority
Lien Agent shall be entitled, for the benefit of the Priority Lien Secured Parties, to sell, transfer or otherwise Dispose of or
deal with such Collateral, as provided herein and in the Priority Lien Documents, without regard to (i) any Second Lien or any
rights to which the Second Lien Collateral Trustee or any Second Lien Secured Party would otherwise be entitled as a result of
such Second Lien or (ii) any Third Lien or any rights to which the Third Lien Collateral Trustee or any Third Lien Secured Party
would otherwise be entitled as a result of such Third Lien. Without limiting the foregoing, each Second Lien Secured Party and
Third Lien Secured Party agrees that neither the Priority Lien Agent nor any other Priority Lien Secured Party shall have any duty
or obligation first to marshal or realize upon any type of Collateral, or to sell, Dispose of or otherwise liquidate all or any
portion of such Collateral, in any manner that would maximize the return to the Second Lien Secured Parties or the Third Lien Secured
Parties, notwithstanding that the order and timing of any such realization, sale, Disposition or liquidation may affect the amount
of proceeds actually received by the Second Lien Secured Parties or the Third Lien Secured Parties, as applicable, from such realization,
sale, Disposition or liquidation. Each of the Second Lien Secured Parties and Third Lien Secured Parties waives any claim such
Second Lien Secured Party or Third Lien Secured Party may now or hereafter have against the Priority Lien Agent or any other Priority
Lien Secured Party arising out of any actions which the Priority Lien Agent or the Priority Lien Secured Parties take or omit to
take (including actions with respect to the creation, perfection or continuation of Liens on any Collateral, actions with respect
to the foreclosure upon, sale, release or depreciation of, or failure to realize upon, any of the Collateral, and actions with
respect to the collection of any claim for all or any part of the Priority Lien Obligations from any account debtor, guarantor
or any other party) in accordance with this Agreement and the Priority Lien Documents or the valuation, use, protection or release
of any security for the Priority Lien Obligations.

 

    	22

    	 

    

 

SECTION
2.06.         No Duties of Second Lien Collateral Trustee. The Third
Lien Collateral Trustee, for itself and on behalf of each Third Lien Secured Party, acknowledges and agrees that neither the Second
Lien Collateral Trustee nor any other Second Lien Secured Party shall have any duties or other obligations to such Third Lien Secured
Party with respect to any Collateral, other than to transfer to the Third Lien Collateral Trustee any remaining Collateral and
any proceeds of the sale or other Disposition of any such Collateral remaining in its possession following the associated Discharge
of Second Lien Obligations (provided such discharge of Second Lien Obligations occurs after the Discharge of Priority Lien Obligations),
in each case without representation or warranty on the part of the Second Lien Collateral Trustee or any Second Lien Secured Party.
In furtherance of the foregoing, each Third Lien Secured Party acknowledges and agrees that after the Discharge of Priority Lien
Obligations and until the Discharge of Second Lien Obligations (subject to the terms of Section 3.02, including the rights of the
Third Lien Secured Parties following expiration of the Third Lien Second Standstill Period), the Second Lien Collateral Trustee
shall be entitled, for the benefit of the Second Lien Secured Parties, to sell, transfer or otherwise Dispose of or deal with such
Collateral, as provided herein and in the Second Lien Documents, without regard to any Third Lien or any rights to which the Third
Lien Collateral Trustee or any Third Lien Secured Party would otherwise be entitled as a result of such Third Lien. Without limiting
the foregoing, each Third Lien Secured Party agrees that neither the Second Lien Collateral Trustee nor any other Second Lien Secured
Party shall have any duty or obligation first to marshal or realize upon any type of Collateral, or to sell, Dispose of or otherwise
liquidate all or any portion of such Collateral, in any manner that would maximize the return to the Third Lien Secured Parties,
notwithstanding that the order and timing of any such realization, sale, Disposition or liquidation may affect the amount of proceeds
actually received by the Third Lien Secured Parties from such realization, sale, Disposition or liquidation. Following the Discharge
of Second Lien Obligations, the Third Lien Collateral Trustee and the other Third Lien Secured Parties may, subject to any other
agreements binding on the Third Lien Collateral Trustee or such other Third Lien Secured Parties, assert their rights under the
New York UCC or otherwise to any proceeds remaining following a sale, Disposition or other liquidation of Collateral by, or on
behalf of the Third Lien Secured Parties. Each of the Third Lien Secured Parties waives any claim such Third Lien Secured Party
may now or hereafter have against the Second Lien Collateral Trustee or any other Second Lien Secured Party arising out of any
actions which the Second Lien Collateral Trustee or the Second Lien Secured Parties take or omit to take (including actions with
respect to the creation, perfection or continuation of Liens on any Collateral, actions with respect to the foreclosure upon, sale,
release or depreciation of, or failure to realize upon, any of the Collateral, and actions with respect to the collection of any
claim for all or any part of the Second Lien Obligations from any account debtor, guarantor or any other party) in accordance with
this Agreement and the Second Lien Documents or the valuation, use, protection or release of any security for the Second Lien Obligations.

 

    	23

    	 

    

 

Article
III

ENFORCEMENT RIGHTS; PURCHASE OPTION

 

SECTION
3.01.         Limitation on Enforcement Action. (a) Prior to the Discharge
of Priority Lien Obligations, each of the Second Lien Collateral Trustee, for itself and on behalf of each Second Lien Secured
Party, and the Third Lien Collateral Trustee, for itself and on behalf of each Third Lien Secured Party, hereby agrees that, subject
to Section 3.05(b) and 4.07, none of the Second Lien Collateral Trustee, any other Second Lien Secured Party, the Third Lien Collateral
Trustee or any other Third Lien Secured Party shall commence any judicial or nonjudicial foreclosure proceedings with respect to,
seek to have a trustee, receiver, liquidator or similar official appointed for or over, attempt any action to take possession of,
exercise any right, remedy or power with respect to, or otherwise take any action to enforce its interest in or realize upon, or
take any other action available to it in respect of, any Collateral under any Second Lien Security Document or Third Lien Security
Document, as applicable, applicable law or otherwise (including but not limited to any right of setoff), it being agreed that only
the Priority Lien Agent, acting in accordance with the applicable Priority Lien Documents, shall have the exclusive right (and
whether or not any Insolvency or Liquidation Proceeding has been commenced), to take any such actions or exercise any such remedies,
in each case, without any consultation with or the consent of the Second Lien Collateral Trustee, any other Second Lien Secured
Party, the Third Lien Collateral Trustee or any other Third Lien Secured Party. In exercising rights and remedies with respect
to the Collateral, the Priority Lien Agent and the other Priority Lien Secured Parties may enforce the provisions of the Priority
Lien Documents and exercise remedies thereunder, all in such order and in such manner as they may determine in their sole discretion
and regardless of whether such exercise and enforcement is adverse to the interest of any Second Lien Secured Party or Third Lien
Secured Party. Such exercise and enforcement shall include the rights of an agent appointed by them to Dispose of Collateral upon
foreclosure, to incur expenses in connection with any such Disposition and to exercise all the rights and remedies of a secured
creditor under the Uniform Commercial Code, the Bankruptcy Code or any other Bankruptcy Law. Without limiting the generality of
the foregoing, the Priority Lien Agent will have the exclusive right to deal with that portion of the Collateral consisting of
deposit accounts and securities accounts (collectively “Accounts”), including exercising rights under
control agreements with respect to such Accounts. Each of the Second Lien Collateral Trustee, for itself and on behalf of the other
Second Lien Secured Parties and the Third Lien Collateral Trustee, for itself and on behalf of the other Third Lien Secured Parties,
hereby acknowledges and agrees that no covenant, agreement or restriction contained in any Second Lien Security Document, any other
Second Lien Document, any Third Lien Security Document or any other Third Lien Document, as applicable, shall be deemed to restrict
in any way the rights and remedies of the Priority Lien Agent or the other Priority Lien Secured Parties with respect to the Collateral
as set forth in this Agreement. Notwithstanding the foregoing, subject to Section 3.05, each of the Second Lien Collateral Trustee,
on behalf of the Second Lien Secured Parties, and the Third Lien Collateral Trustee, on behalf of the Third Lien Secured Parties,
may, but will have no obligation to, take all such actions (not adverse to the Priority Liens or the rights of the Priority Lien
Agent and the Priority Lien Secured Parties) it deems necessary to perfect or continue the perfection of the Second Liens in the
Collateral or to create, preserve or protect (but not enforce) the Second Liens in the Collateral or to perfect or continue the
perfection of the Third Liens in the Collateral or to create, preserve or protect (but not enforce) the Third Liens in the Collateral,
as applicable. Nothing herein shall limit the right or ability of the Second Lien Secured Parties or any Third Lien Secured Parties
to (i) purchase (by credit bid or otherwise) all or any portion of the Collateral in connection with any enforcement of remedies
by the Priority Lien Agent to the extent that, and so long as, the Priority Lien Secured Parties receive payment in full in cash
of all Priority Lien Obligations after giving effect thereto or (ii) file a proof of claim with respect to the Second Lien Obligations
or the Third Lien Obligations, as applicable.

 

    	24

    	 

    

 

(b)          Following
the Discharge of Priority Lien Obligations but prior to the Discharge of Second Lien Obligations, the Third Lien Collateral Trustee,
for itself and on behalf of each Third Lien Secured Party, hereby agrees that, subject to Section 3.05(b) and 4.07, neither the
Third Lien Collateral Trustee nor any other Third Lien Secured Party shall commence any judicial or nonjudicial foreclosure proceedings
with respect to, seek to have a trustee, receiver, liquidator or similar official appointed for or over, attempt any action to
take possession of, exercise any right, remedy or power with respect to, or otherwise take any action to enforce its interest in
or realize upon, or take any other action available to it in respect of, any Collateral under any Third Lien Security Document,
applicable law or otherwise (including but not limited to any right of setoff), it being agreed that only the Second Lien Collateral
Trustee, acting in accordance with the applicable Second Lien Documents, shall have the exclusive right (and whether or not any
Insolvency or Liquidation Proceeding has been commenced), to take any such actions or exercise any such remedies, in each case,
without any consultation with or the consent of the Third Lien Collateral Trustee or any other Third Lien Secured Party. In exercising
rights and remedies with respect to the Collateral, the Second Lien Collateral Trustee and the other Second Lien Secured Parties
may enforce the provisions of the Second Lien Documents and exercise remedies thereunder, all in such order and in such manner
as they may determine in their sole discretion and regardless of whether such exercise and enforcement is adverse to the interest
of any Third Lien Secured Party. Such exercise and enforcement shall include the rights of an agent appointed by them to Dispose
of Collateral upon foreclosure, to incur expenses in connection with any such Disposition and to exercise all the rights and remedies
of a secured creditor under the Uniform Commercial Code, the Bankruptcy Code or any other Bankruptcy Law. Without limiting the
generality of the foregoing, the Second Lien Collateral Trustee will have the exclusive right to deal with the Accounts, including
exercising rights under control agreements with respect to such Accounts. The Third Lien Collateral Trustee, for itself and on
behalf of the other Third Lien Secured Parties, hereby acknowledges and agrees that no covenant, agreement or restriction contained
in any Third Lien Security Document or any other Third Lien Document shall be deemed to restrict in any way the rights and remedies
of the Second Lien Collateral Trustee or the other Second Lien Secured Parties with respect to the Collateral as set forth in this
Agreement. Notwithstanding the foregoing, subject to Section 3.05, the Third Lien Collateral Trustee may, but will have no obligation
to, on behalf of the Third Lien Secured Parties, take all such actions (not adverse to the Second Liens or the rights of the Second
Lien Collateral Trustee and the Second Lien Secured Parties) it deems necessary to perfect or continue the perfection of the Third
Liens in the Collateral or to create, preserve or protect (but not enforce) the Third Liens in the Collateral.

 

SECTION
3.02.         Standstill Periods; Permitted Enforcement Action. (a)
Prior to the Discharge of Priority Lien Obligations and notwithstanding the foregoing Section 3.01, both before and during an Insolvency
or Liquidation Proceeding:

 

    	25

    	 

    

 

(i)          after
a period of 180 days has elapsed (which period will be tolled during any period in which the Priority Lien Agent is not entitled,
on behalf of the Priority Lien Secured Parties, to enforce or exercise any rights or remedies with respect to any Collateral as
a result of (x) any injunction issued by a court of competent jurisdiction or (y) the automatic stay or any other stay in any Insolvency
or Liquidation Proceeding) since the date on which the Second Lien Collateral Trustee has delivered to the Priority Lien Agent
written notice of the acceleration of any Second Lien Debt (the “Second Lien Standstill Period”), the
Second Lien Collateral Trustee and the other Second Lien Secured Parties may enforce or exercise any rights or remedies with respect
to any Collateral; provided, however that notwithstanding the expiration of the Second Lien Standstill Period or anything
in the Second Lien Collateral Trust Agreement to the contrary, in no event may the Second Lien Collateral Trustee or any other
Second Lien Secured Party enforce or exercise any rights or remedies with respect to any Collateral, or commence, join with any
Person at any time in commencing, or petition for or vote in favor of any resolution for, any such action or proceeding, if the
Priority Lien Agent on behalf of the Priority Lien Secured Parties or any other Priority Lien Secured Party shall have commenced,
and shall be diligently pursuing (or shall have sought or requested relief from, or modification of, the automatic stay or any
other stay or other prohibition in any Insolvency or Liquidation Proceeding to enable the commencement and pursuit thereof), the
enforcement or exercise of any rights or remedies with respect to the Collateral or any such action or proceeding (prompt written
notice thereof to be given to the Second Lien Representatives by the Priority Lien Agent); provided, further, that, at any
time after the expiration of the Second Lien Standstill Period, if neither the Priority Lien Agent nor any other Priority Lien
Secured Party shall have commenced and be diligently pursuing (or shall have sought or requested relief from, or modification of,
the automatic stay or any other stay or other prohibition in any Insolvency or Liquidation Proceeding to enable the commencement
and pursuit thereof) the enforcement or exercise of any rights or remedies with respect to any material portion of the Collateral
or any such action or proceeding, and the Second Lien Collateral Trustee shall have commenced the enforcement or exercise of any
rights or remedies with respect to any material portion of the Collateral or any such action or proceeding, then for so long as
the Second Lien Collateral Trustee is diligently pursuing such rights or remedies, none of any Priority Lien Secured Party, the
Priority Lien Agent, any Third Lien Secured Party or the Third Lien Collateral Trustee shall take any action of a similar nature
with respect to such Collateral, or commence, join with any Person at any time in commencing, or petition for or vote in favor
of any resolution for, any such action or proceeding; and

 

    	26

    	 

    

 

(ii)         after
a period of 270 days has elapsed (which period will be tolled during any period in which the Priority Lien Agent is not entitled,
on behalf of the Priority Lien Secured Parties, to enforce or exercise any rights or remedies with respect to any Collateral as
a result of (x) any injunction issued by a court of competent jurisdiction or (y) the automatic stay or any other stay in any Insolvency
or Liquidation Proceeding) since the date on which the Third Lien Collateral Trustee has delivered to the Priority Lien Agent written
notice of the acceleration of any Third Lien Debt (the “Third Lien First Standstill Period”), the Third
Lien Collateral Trustee and the other Third Lien Secured Parties may enforce or exercise any rights or remedies with respect to
any Collateral; provided, however that notwithstanding the expiration of the Third Lien First Standstill Period or anything
in the Third Lien Collateral Trust Agreement to the contrary, in no event may the Third Lien Collateral Trustee or any other Third
Lien Secured Party enforce or exercise any rights or remedies with respect to any Collateral, or commence, join with any Person
at any time in commencing, or petition for or vote in favor of any resolution for, any such action or proceeding, if (A) the Priority
Lien Agent on behalf of the Priority Lien Secured Parties or any other Priority Lien Secured Party or (B) the Second Lien Collateral
Trustee on behalf of the Second Lien Secured Parties or any other Second Lien Secured Party shall have commenced, and shall be
diligently pursuing (or shall have sought or requested relief from, or modification of, the automatic stay or any other stay in
any Insolvency or Liquidation Proceeding to enable the commencement and pursuit thereof), the enforcement or exercise of any rights
or remedies with respect to the Collateral or any such action or proceeding (prompt written notice thereof to be given to the Third
Lien Representatives by the Second Lien Collateral Trustee); provided, further, that, at any time after the expiration of
the Third Lien First Standstill Period, if none of any Priority Lien Secured Party, the Priority Lien Agent, any Second Lien Secured
Party or the Second Lien Collateral Trustee shall have commenced and be diligently pursuing the enforcement or exercise of any
rights or remedies with respect to any material portion of the Collateral or any such action or proceeding, and the Third Lien
Collateral Trustee shall have commenced the enforcement or exercise of any rights or remedies with respect to any material portion
of the Collateral or any such action or proceeding, then for so long as the Third Lien Collateral Trustee is diligently pursuing
such rights or remedies, none of any Priority Lien Secured Party, the Priority Lien Agent, any Second Lien Secured Party or the
Second Lien Collateral Trustee shall take any action of a similar nature with respect to such Collateral, or commence, join with
any Person at any time in commencing, or petition for or vote in favor of any resolution for, any such action or proceeding.

 

(b)          Following
the Discharge of Priority Lien Obligations but prior to the Discharge of Second Lien Obligations and notwithstanding the foregoing
Section 3.01, both before and during an Insolvency or Liquidation Proceeding, after a period of 180 days has elapsed (which period
will be tolled during any period in which the Second Lien Collateral Trustee is not entitled, on behalf of the Second Lien Secured
Parties, to enforce or exercise any rights or remedies with respect to any Collateral as a result of (x) any injunction issued
by a court of competent jurisdiction or (y) the automatic stay or any other stay in any Insolvency or Liquidation Proceeding) since
the date on which the Third Lien Collateral Trustee has delivered to the Second Lien Collateral Trustee written notice of the acceleration
of any Third Lien Debt (the “Third Lien Second Standstill Period”), the Third Lien Collateral Trustee
and the other Third Lien Secured Parties may enforce or exercise any rights or remedies with respect to any Collateral; provided,
however that notwithstanding the expiration of the Third Lien Second Standstill Period or anything in the Third Lien Collateral
Trust Agreement to the contrary, in no event may the Third Lien Collateral Trustee or any other Third Lien Secured Party enforce
or exercise any rights or remedies with respect to any Collateral, or commence, join with any Person at any time in commencing,
or petition for or vote in favor of any resolution for, any such action or proceeding, if the Second Lien Collateral Trustee on
behalf of the Second Lien Secured Parties or any other Second Lien Secured Party shall have commenced, and shall be diligently
pursuing (or shall have sought or requested relief from, or modification of, the automatic stay or any other stay in any Insolvency
or Liquidation Proceeding to enable the commencement and pursuit thereof), the enforcement or exercise of any rights or remedies
with respect to the Collateral or any such action or proceeding (prompt written notice thereof to be given to the Third Lien Representatives
by the Second Lien Collateral Trustee); provided, further, that, at any time after the expiration of the Third Lien Second
Standstill Period, if neither the Second Lien Collateral Trustee nor any other Second Lien Secured Party shall have commenced and
be diligently pursuing the enforcement or exercise of any rights or remedies with respect to any material portion of the Collateral
or any such action or proceeding, and the Third Lien Collateral Trustee shall have commenced the enforcement or exercise of any
rights or remedies with respect to any material portion of the Collateral or any such action or proceeding, then for so long as
the Third Lien Collateral Trustee is diligently pursuing such rights or remedies, neither any Second Lien Secured Party nor the
Second Lien Collateral Trustee shall take any action of a similar nature with respect to such Collateral, or commence, join with
any Person at any time in commencing, or petition for or vote in favor of any resolution for, any such action or proceeding.         

 

    	27

    	 

    

 

SECTION
3.03.         Insurance. (a) Unless and until the Discharge of Priority
Lien Obligations has occurred (subject to the terms of Section 3.02, including the rights of the Second Lien Secured Parties and
the Third Lien Secured Parties following expiration of any applicable Standstill Period), the Priority Lien Agent shall have the
sole and exclusive right, subject to the rights of the Grantors under the Priority Lien Documents, to adjust and settle claims
in respect of Collateral under any insurance policy in the event of any loss thereunder and to approve any award granted in any
condemnation or similar proceeding (or any deed in lieu of condemnation) affecting the Collateral. Unless and until the Discharge
of Priority Lien Obligations has occurred, and subject to the rights of the Grantors under the Priority Lien Documents, all proceeds
of any such policy and any such award (or any payments with respect to a deed in lieu of condemnation) in respect to the Collateral
shall be paid to the Priority Lien Agent pursuant to the terms of the Priority Lien Documents (including for purposes of cash collateralization
of commitments, letters of credit and Hedging Obligations). If the Second Lien Collateral Trustee, any Second Lien Secured
Party, the Third Lien Collateral Trustee or any Third Lien Secured Party shall, at any time, receive any proceeds of any such insurance
policy or any such award or payment in contravention of the foregoing, it shall pay such proceeds over to the Priority Lien Agent.
In addition, if by virtue of being named as an additional insured or loss payee of any insurance policy of any Grantor covering
any of the Collateral, the Second Lien Collateral Trustee, any other Second Lien Secured Party, the Third Lien Collateral Trustee
or any other Third Lien Secured Party shall have the right to adjust or settle any claim under any such insurance policy, then
unless and until the Discharge of Priority Lien Obligations has occurred, the Second Lien Collateral Trustee, any such Second Lien
Secured Party, the Third Lien Collateral Trustee and any such Third Lien Secured Party shall follow the instructions of the Priority
Lien Agent, or of the Grantors under the Priority Lien Documents to the extent the Priority Lien Documents grant such Grantors
the right to adjust or settle such claims, with respect to such adjustment or settlement (subject to the terms of Section 3.02,
including the rights of the Second Lien Secured Parties and the Third Lien Secured Parties following expiration of any applicable
Standstill Period).

 

    	28

    	 

    

 

(b)          Following
the Discharge of Priority Lien Obligations but prior to the Discharge of Second Lien Obligations (subject to the terms of Section
3.02, including the rights of the Third Lien Secured Parties following expiration of the Third Lien Second Standstill Period),
the Second Lien Collateral Trustee shall have the sole and exclusive right, subject to the rights of the Grantors under the Second
Lien Documents, to adjust and settle claims in respect of Collateral under any insurance policy in the event of any loss thereunder
and to approve any award granted in any condemnation or similar proceeding (or any deed in lieu of condemnation) affecting the
Collateral. Unless and until the Discharge of Second Lien Obligations has occurred, and subject to the rights of the Grantors under
the Second Lien Documents, all proceeds of any such policy and any such award (or any payments with respect to a deed in lieu of
condemnation) in respect to the Collateral shall be paid to the Second Lien Collateral Trustee pursuant to the terms of the Second
Lien Documents and, after the Discharge of Second Lien Obligations has occurred, to the Third Lien Collateral Trustee to the extent
required under the Third Lien Documents and then, to the extent no Third Lien Obligations are outstanding, to the owner of the
subject property, to such other Person as may be entitled thereto or as a court of competent jurisdiction may otherwise direct.
If the Third Lien Collateral Trustee or any Third Lien Secured Party shall, at any time following the Discharge of Priority
Lien Obligations but prior to the Discharge of Second Lien Obligations, receive any proceeds of any such insurance policy or any
such award or payment in contravention of the foregoing, it shall pay such proceeds over to the Second Lien Collateral Trustee.
In addition, if by virtue of being named as an additional insured or loss payee of any insurance policy of any Grantor covering
any of the Collateral, the Third Lien Collateral Trustee or any other Third Lien Secured Party shall have the right to adjust or
settle any claim under any such insurance policy, then unless and until the Discharge of Second Lien Obligations has occurred,
the Third Lien Collateral Trustee and any such Third Lien Secured Party shall follow the instructions of the Second Lien Collateral
Trustee, or of the Grantors under the Second Lien Documents to the extent the Second Lien Documents grant such Grantors the right
to adjust or settle such claims, with respect to such adjustment or settlement (subject to the terms of Section 3.02, including
the rights of the Third Lien Secured Parties following expiration of the Third Lien Second Standstill Period).

 

SECTION
3.04.         Notification of Release of Collateral. Each of the Priority
Lien Agent, the Second Lien Collateral Trustee and the Third Lien Collateral Trustee shall give the other Secured Debt Representatives
prompt written notice of the Disposition by it of, and Release by it of the Lien on, any Collateral. Such notice shall describe
in reasonable detail the subject Collateral, the parties involved in such Disposition or Release, the place, time manner and method
thereof, and the consideration, if any, received therefor; provided, however, that the failure to give any such notice shall
not in and of itself in any way impair the effectiveness of any such Disposition or Release.

 

    	29

    	 

    

 

SECTION
3.05.         No Interference; Payment Over.

 

(a)          No
Interference. (i) The Second Lien Collateral Trustee, for itself and on behalf of each Second Lien Secured Party, agrees that
each Second Lien Secured Party (i) will not take or cause to be taken any action the purpose or effect of which is, or could be,
to make any Second Lien pari passu with, or to give such Second Lien Secured Party any preference or priority relative to,
any Priority Lien with respect to the Collateral or any part thereof, (ii) will not challenge or question in any proceeding the
validity or enforceability of any Priority Lien Obligations or Priority Lien Document, or the validity, attachment, perfection
or priority of any Priority Lien, or the validity or enforceability of the priorities, rights or duties established by the provisions
of this Agreement, (iii) will not take or cause to be taken any action the purpose or effect of which is, or could be, to interfere,
hinder or delay, in any manner, whether by judicial proceedings or otherwise, any sale, transfer or other Disposition of the Collateral
by any Priority Lien Secured Party or the Priority Lien Agent acting on their behalf, (iv) shall have no right to (A) direct the
Priority Lien Agent or any other Priority Lien Secured Party to exercise any right, remedy or power with respect to any Collateral
or (B) consent to the exercise by the Priority Lien Agent or any other Priority Lien Secured Party of any right, remedy or power
with respect to any Collateral, (v) will not institute any suit or assert in any suit or Insolvency or Liquidation Proceeding any
claim against the Priority Lien Agent or other Priority Lien Secured Party seeking damages from or other relief by way of specific
performance, instructions or otherwise with respect to, and neither the Priority Lien Agent nor any other Priority Lien Secured
Party shall be liable for, any action taken or omitted to be taken by the Priority Lien Agent or other Priority Lien Secured Party
with respect to any Priority Lien Collateral, (vi) will not seek, and hereby waives any right, to have any Collateral or any part
thereof marshaled upon any foreclosure or other Disposition of such Collateral, (vii) will not attempt, directly or indirectly,
whether by judicial proceedings or otherwise, to challenge the enforceability of any provision of this Agreement, (viii) will not
object to forbearance by the Priority Lien Agent or any Priority Lien Secured Party, and (ix) will not assert, and hereby waives,
to the fullest extent permitted by law, any right to demand, request, plead or otherwise assert or claim the benefit of any marshalling,
appraisal, valuation or other similar right that may be available under applicable law with respect to the Collateral or any similar
rights a junior secured creditor may have under applicable law; and

 

(ii)         The
Third Lien Collateral Trustee, for itself and on behalf of each Third Lien Secured Party, agrees that each Third Lien Secured Party
(i) will not take or cause to be taken any action the purpose or effect of which is, or could be, to make any Third Lien pari
passu with, or to give such Third Lien Secured Party any preference or priority relative to, any Priority Lien or Second Lien
with respect to the Collateral or any part thereof, (ii) will not challenge or question in any proceeding the validity or enforceability
of any Priority Lien Obligations, Priority Lien Document, Second Lien Obligations or Second Lien Document, or the validity, attachment,
perfection or priority of any Priority Lien or Second Lien, or the validity or enforceability of the priorities, rights or duties
established by the provisions of this Agreement, (iii) will not take or cause to be taken any action the purpose or effect of which
is, or could be, to interfere, hinder or delay, in any manner, whether by judicial proceedings or otherwise, any sale, transfer
or other Disposition of the Collateral by any Priority Lien Secured Party or the Priority Lien Agent acting on their behalf or
by any Second Lien Secured Party or the Second Lien Collateral Trustee acting on their behalf, (iv) shall have no right to (A)
direct the Priority Lien Agent, any other Priority Lien Secured Party, the Second Lien Collateral Trustee or any other Second Lien
Secured Party to exercise any right, remedy or power with respect to any Collateral or (B) consent to the exercise by the Priority
Lien Agent, any other Priority Lien Secured Party, the Second Lien Collateral Trustee or any other Second Lien Secured Party of
any right, remedy or power with respect to any Collateral, (v) will not institute any suit or assert in any suit or Insolvency
or Liquidation Proceeding any claim against the Priority Lien Agent, any other Priority Lien Secured Party, the Second Lien Collateral
Trustee or any other Second Lien Secured Party seeking damages from or other relief by way of specific performance, instructions
or otherwise with respect to, and none of the Priority Lien Agent, any other Priority Lien Secured Party, the Second Lien Collateral
Trustee or any other Second Lien Secured Party shall be liable for, any action taken or omitted to be taken by the Priority Lien
Agent, any other Priority Lien Secured Party, the Second Lien Collateral Trustee or any other Second Lien Secured Party with respect
to any Priority Lien Collateral or Second Lien Collateral, as applicable, (vi) will not seek, and hereby waives any right, to have
any Collateral or any part thereof marshaled upon any foreclosure or other Disposition of such Collateral, (vii) will not attempt,
directly or indirectly, whether by judicial proceedings or otherwise, to challenge the enforceability of any provision of this
Agreement, (viii) will not object to forbearance by the Priority Lien Agent, any Priority Lien Secured Party, the Second Lien Collateral
Trustee or any Second Lien Secured Party and (ix) will not assert, and hereby waives, to the fullest extent permitted by law, any
right to demand, request, plead or otherwise assert or claim the benefit of any marshalling, appraisal, valuation or other similar
right that may be available under applicable law with respect to the Collateral or any similar rights a junior secured creditor
may have under applicable law.

 

    	30

    	 

    

 

(b)          Payment
Over. (i) Each of the Second Lien Collateral Trustee, for itself and on behalf of each other Second Lien Secured Party, and
the Third Lien Collateral Trustee, for itself and on behalf of each other Third Lien Secured Party, hereby agrees that if it shall
obtain possession of any Collateral or shall realize any proceeds or payment in respect of any Collateral, pursuant to the exercise
of any rights or remedies with respect to the Collateral under any Second Lien Security Document or Third Lien Security Document,
as applicable, or by the exercise of any rights available to it under applicable law or in any Insolvency or Liquidation Proceeding,
to the extent permitted hereunder, at any time prior to the Discharge of Priority Lien Obligations secured, or intended to be secured,
by such Collateral, then it shall hold such Collateral, proceeds or payment in trust for the Priority Lien Agent and the other
Priority Lien Secured Parties and transfer such Collateral, proceeds or payment, as the case may be, to the Priority Lien Agent
as promptly as practicable. Furthermore, the Second Lien Collateral Trustee or the Third Lien Collateral Trustee, as applicable,
shall, at the Grantors’ expense, promptly send written notice to the Priority Lien Agent upon receipt of such Collateral,
proceeds or payment and if directed by the Priority Lien Agent within five (5) days after receipt by the Priority Lien Agent of
such written notice, shall deliver such Collateral, proceeds or payment to the Priority Lien Agent in the same form as received,
with any necessary endorsements, or as court of competent jurisdiction may otherwise direct. The Priority Lien Agent is hereby
authorized to make any such endorsements as agent for the Second Lien Collateral Trustee, any other Second Lien Secured Party,
the Third Lien Collateral Trustee or any other Third Lien Secured Party, as applicable. Each of the Second Lien Collateral Trustee,
for itself and on behalf of each other Second Lien Secured Party, and the Third Lien Collateral Trustee, for itself and on behalf
of each other Third Lien Secured Party, agrees that if, at any time, it obtains written notice that all or part of any payment
with respect to any Priority Lien Obligations previously made shall be rescinded for any reason whatsoever, it will promptly pay
over to the Priority Lien Agent any payment received by it and then in its possession or under its direct control in respect of
any such Priority Lien Collateral and shall promptly turn any such Collateral then held by it over to the Priority Lien Agent,
and the provisions set forth in this Agreement will be reinstated as if such payment bad not been made, until the Discharge of
Priority Lien Obligations. All Second Liens and Third Liens will remain attached to and enforceable against all proceeds so held
or remitted, subject to the priorities set forth in this Agreement. Anything contained herein to the contrary notwithstanding,
this Section 3.05(b) shall not apply to any proceeds of Collateral realized in a transaction not prohibited by the Priority Lien
Documents and as to which the possession or receipt thereof by the Second Lien Collateral Trustee, any other Second Lien Secured
Party, the Third Lien Collateral Trustee or any other Third Lien Secured Party, as applicable, is otherwise permitted by the Priority
Lien Documents.

 

    	31

    	 

    

 

(ii)          The Third Lien Collateral
Trustee, for itself and on behalf of each other Third Lien Secured Party, hereby agrees that if it shall obtain possession of any
Collateral or shall realize any proceeds or payment in respect of any Collateral, pursuant to the exercise of any rights or remedies
with respect to the Collateral under any Third Lien Security Document or by the exercise of any rights available to it under applicable
law or in any Insolvency or Liquidation Proceeding, to the extent permitted hereunder, at any time following the Discharge of Priority
Lien Obligations but prior to the Discharge of Second Lien Obligations secured, or intended to be secured, by such Collateral,
then it shall hold such Collateral, proceeds or payment in trust for the Second Lien Collateral Trustee and the other Second Lien
Secured Parties and transfer such Collateral, proceeds or payment, as the case may be, to the Second Lien Collateral Trustee reasonably
promptly after obtaining written notice from the Second Lien Secured Parties that it has possession of such Collateral or proceeds
or payments in respect thereof. Furthermore, the Third Lien Collateral Trustee shall, at the Grantors’ expense, promptly
send written notice to the Second Lien Collateral Trustee upon receipt of such Collateral, proceeds or payment and if directed
by the Second Lien Collateral Trustee within five (5) days after receipt by the Second Lien Collateral Trustee of such written
notice, shall deliver such Collateral, proceeds or payment to the Second Lien Collateral Trustee in the same form as received,
with any necessary endorsements, or as court of competent jurisdiction may otherwise direct. The Second Lien Collateral Trustee
is hereby authorized to make any such endorsements as agent for the Third Lien Collateral Trustee or any other Third Lien Secured
Party. The Third Lien Collateral Trustee, for itself and on behalf of each other Third Lien Secured Party, agrees that if, at any
time, it obtains written notice that all or part of any payment with respect to any Second Lien Obligations previously made shall
be rescinded for any reason whatsoever, it will promptly pay over to the Second Lien Collateral Trustee any payment received by
it and then in its possession or under its direct control in respect of any such Second Lien Collateral and shall promptly turn
any such Collateral then held by it over to the Second Lien Collateral Trustee, and the provisions set forth in this Agreement
will be reinstated as if such payment bad not been made, until the Discharge of Second Lien Obligations. All Third Liens will remain
attached to and enforceable against all proceeds so held or remitted, subject to the priorities set forth in this Agreement. Anything
contained herein to the contrary notwithstanding, this Section 3.05(b) shall not apply to any proceeds of Collateral realized in
a transaction not prohibited by the Second Lien Documents and as to which the possession or receipt thereof by the Third Lien Collateral
Trustee or any other Third Lien Secured Party is otherwise permitted by the Second Lien Documents.

 

SECTION
3.06.         Purchase Option.

 

(a)          Notwithstanding
anything in this Agreement to the contrary, on or at any time after (i) the commencement of an Insolvency or Liquidation Proceeding
or (ii) the acceleration of the Priority Lien Obligations, holders of the Second Lien Debt and each of their respective designated
Affiliates (the “Second Lien Purchasers”) will have the right, at their sole option and election (but
will not be obligated), at any time upon prior written notice to the Priority Lien Agent, to purchase from the Priority Lien Secured
Parties all (but not less than all) Priority Lien Obligations (including unfunded commitments) and any loans provided by any of
the Priority Lien Secured Parties in connection with a DIP Financing that are outstanding on the date of such purchase. Promptly
following the receipt of such notice, the Priority Lien Agent will deliver to the Second Lien Trustee a statement of the amount
of Priority Lien Debt, other Priority Lien Obligations and DIP Financing provided by any of the Priority Lien Secured Parties,
if any, then outstanding and the amount of the cash collateral requested by the Priority Lien Agent to be delivered pursuant to
Section 3.06(b)(ii) below. The right to purchase provided for in this Section 3.06 will expire unless, within 10 Business Days
after the receipt by the Second Lien Trustee of such notice from the Priority Lien Agent, the Second Lien Trustee delivers to the
Priority Lien Agent an irrevocable commitment of the Second Lien Purchasers to purchase all (but not less than all) of the Priority
Lien Obligations (including unfunded commitments) and any loans provided by any of the Priority Lien Secured Parties in connection
with a DIP Financing and to otherwise complete such purchase on the terms set forth under this Section 3.06.

 

    	32

    	 

    

 

(b)          On
the date specified by the Second Lien Trustee (on behalf of the Second Lien Purchasers) in such irrevocable commitment (which shall
not be less than five Business Days nor more than 20 Business Days, after the receipt by the Priority Lien Agent of such irrevocable
commitment), the Priority Lien Secured Parties shall sell to the Second Lien Purchasers all (but not less than all) Priority Lien
Obligations (including unfunded commitments) and any loans provided by any of the Priority Lien Secured Parties in connection with
a DIP Financing that are outstanding on the date of such sale, subject to any required approval of any Governmental Authority then
in effect, if any, and only if on the date of such sale, the Priority Lien Agent receives the following:

 

(i)          payment,
as the purchase price for all Priority Lien Obligations sold in such sale, of an amount equal to the full amount of all Priority
Lien Obligations (other than outstanding letters of credit as referred to in clause (ii) below) and loans provided by any of the
Priority Lien Secured Parties in connection with a DIP Financing then outstanding (including principal, interest, fees, reasonable
attorneys’ fees and legal expenses, but excluding contingent indemnification obligations for which no claim or demand for
payment has been made at or prior to such time); provided that in the case of Hedging Obligations that constitute Priority Lien
Obligations the Second Lien Purchasers shall cause the applicable agreements governing such Hedging Obligations to be assigned
and novated or, if such agreements have been terminated, such purchase price shall include an amount equal to the sum of any unpaid
amounts then due in respect of such Hedging Obligations, calculated using the market quotation method and after giving effect to
any netting arrangements;

 

(ii)         a
cash collateral deposit in such amount as the Priority Lien Agent determines is reasonably necessary to secure the payment of any
outstanding letters of credit constituting Priority Lien Obligations that may become due and payable after such sale (but not in
any event in an amount greater than one hundred five percent (105%) of the amount then reasonably estimated by the Priority Lien
Agent to be the aggregate outstanding amount of such letters of credit at such time), which cash collateral shall be (A) held by
the Priority Lien Agent as security solely to reimburse the issuers of such letters of credit that become due and payable after
such sale and any fees and expenses incurred in connection with such letters of credit and (B) returned to the Second Lien Trustee
(except as may otherwise be required by applicable law or any order of any court or other Governmental Authority) promptly after
the expiration or termination from time to time of all payment contingencies affecting such letters of credit; and

 

    	33

    	 

    

 

(iii)        any
agreements, documents or instruments which the Priority Lien Agent may reasonably request pursuant to which the Second Lien Trustee
and the Second Lien Purchasers in such sale expressly assume and adopt all of the obligations of the Priority Lien Agent and the
Priority Lien Secured Parties under the Priority Lien Documents and in connection with loans provided by any of the Priority Lien
Secured Parties in connection with a DIP Financing on and after the date of the purchase and sale and the Second Lien Trustee (or
any other representative appointed by the holders of a majority in aggregate principal amount of the Second Lien Indenture Notes
then outstanding) becomes a successor agent thereunder.

 

(c)          Such
purchase of the Priority Lien Obligations (including unfunded commitments) and any loans provided by any of the Priority Lien Secured
Parties in connection with a DIP Financing shall be made on a pro rata basis among the Second Lien Purchasers giving notice to
the Priority Lien Agent of their interest to exercise the purchase option hereunder according to each such Second Lien Purchaser’s
portion of the Second Lien Debt outstanding on the date of purchase or such portion as such Second Lien Purchasers may otherwise
agree among themselves. Such purchase price and cash collateral shall be remitted by wire transfer in federal funds to such bank
account of the Priority Lien Agent as the Priority Lien Agent may designate in writing to the Second Lien Collateral Trustee for
such purpose. Interest shall be calculated to but excluding the Business Day on which such sale occurs if the amounts so paid by
the Second Lien Purchasers to the bank account designated by the Priority Lien Agent are received in such bank account prior to
12:00 noon, New York City time, and interest shall be calculated to and including such Business Day if the amounts so paid by the
Second Lien Purchasers to the bank account designated by the Priority Lien Agent are received in such bank account later than 12:00
noon, New York City time.

 

(d)          Such
sale shall be expressly made without representation or warranty of any kind by the Priority Lien Secured Parties as to the Priority
Lien Obligations, the Collateral or otherwise and without recourse to any Priority Lien Secured Party, except that the Priority
Lien Secured Parties shall represent and warrant severally as to the Priority Lien Obligations (including unfunded commitments)
and any loans provided by any of the Priority Lien Secured Parties in connection with a DIP Financing then owing to it: (i) that
such applicable Priority Lien Secured Party own such Priority Lien Obligations (including unfunded commitments) and any loans provided
by any of the Priority Lien Secured Parties in connection with a DIP Financing; and (ii) that such applicable Priority Lien Secured
Party has the necessary corporate or other governing authority to assign such interests.

 

(e)          After
such sale becomes effective, the outstanding letters of credit will remain enforceable against the issuers thereof and will remain
secured by the Priority Liens upon the Collateral in accordance with the applicable provisions of the Priority Lien Documents as
in effect at the time of such sale, and the issuers of letters of credit will remain entitled to the benefit of the Priority Liens
upon the Collateral and sharing rights in the proceeds thereof in accordance with the provisions of the Priority Lien Documents
as in effect at the time of such sale, as fully as if the sale of the Priority Lien Debt had not been made, but only the Person
or successor agent to whom the Priority Liens are transferred in such sale will have the right to foreclose upon or otherwise enforce
the Priority Liens and only the Second Lien Purchasers in the sale will have the right to direct such Person or successor as to
matters relating to the foreclosure or other enforcement of the Priority Liens.

 

    	34

    	 

    

 

Article
IV

OTHER AGREEMENTS

 

SECTION
4.01.         Release of Liens; Automatic Release of Second Liens and Third
Liens. (a) Prior to the Discharge of Priority Lien Obligations, each of the Second Lien Collateral Trustee, for itself and
on behalf of each other Second Lien Secured Party, and the Third Lien Collateral Trustee, for itself and on behalf of each other
Third Lien Secured Party, agrees that, in the event the Priority Lien Secured Parties release their Lien on any Collateral, each
of the Second Lien and Third Lien on such Collateral shall terminate and be released automatically and without further action if
(i) such release is in connection with the Priority Lien Agent’s release of its Lien on the assets related to the Grand Isle
Gathering System, (ii) such release is effected in connection with the Priority Lien Agent’s foreclosure upon, or other exercise
of rights or remedies with respect to, such Collateral, (iii)(x) after giving effect to such release and the filing of any additional
Second Lien Security Documents or supplements or amendments to existing Second Lien Security Documents on or prior to the consummation
of such release, the Collateral shall include Oil and Gas Properties subject to such Second Lien Security Documents that include
not less than 80% of the total discounted future net revenue of the Grantors’ Oil and Gas Properties located in the United
States and adjacent Federal waters constituting Proved Reserves as estimated by the Company in its most recent Reserve Report (provided
that any release in connection with a sale, transfer or other disposition of Collateral in a transaction or circumstance that complies
with Section 4.10 of the Second Lien Indenture (or any similar provision of any other Second Lien Documents) and Section 4.1 of
the Second Lien Collateral Trust Agreement shall not be subject to the condition in this clause (iii)(x)) and (y) after giving
effect to such release and the filing of any additional Third Lien Security Documents or supplements or amendments to existing
Third Lien Security Documents on or prior to the consummation of such release, the Collateral securing the Third Lien Obligations
shall satisfy any minimum Collateral requirements in the Third Lien Documents (provided that any release in connection with a sale,
transfer or other disposition of Collateral in a transaction or circumstance that complies with the applicable provisions of the
Third Lien Indenture (or any similar provision of any other Third Lien Documents) and the Third Lien Collateral Trust Agreement
shall not be subject to the condition in this clause (iii)(y)) or (iv) such release is effected in connection with a sale or other
Disposition of any Collateral (or any portion thereof) under Section 363 of the Bankruptcy Code or any other provision of the Bankruptcy
Code if the Priority Lien Secured Parties shall have consented to such sale or Disposition of such Collateral; provided that, in
the case of each of clauses (i), (ii), (iii) and (iv), the Second Liens and Third Liens on such Collateral shall remain in place
(and shall remain subject and subordinate to all Priority Liens securing Priority Lien Obligations, subject to the Priority Lien
Cap and, in the case of the Third Liens, shall remain subject and subordinate to (x) all Priority Liens securing Priority Lien
Obligations, subject to the Priority Lien Cap and (y) all Second Liens securing Second Lien Obligations) with respect to any proceeds
of a sale, transfer or other Disposition of Collateral not paid to the Priority Lien Secured Parties or that remain after the Discharge
of Priority Lien Obligations.

 

    	35

    	 

    

 

(b)          Following
the Discharge of Priority Lien Obligations but prior to the Discharge of Second Lien Obligations, the Third Lien Collateral Trustee,
for itself and on behalf of each other Third Lien Secured Party, agrees that, in the event the Second Lien Secured Parties release
their Lien on any Collateral, the Third Lien on such Collateral shall terminate and be released automatically and without further
action if (i) such release is in connection with the Second Lien Collateral Trustee’s release of its Lien on the assets related
to the Grand Isle Gather System, (ii) such release is effected in connection with the Second Lien Collateral Trustee’s foreclosure
upon, or other exercise of rights or remedies with respect to, such Collateral or (iii) after giving effect to such release and
the filing of any additional Third Lien Security Documents or supplements or amendments to existing Third Lien Security Documents
on or prior to the consummation of such release, the Collateral securing the Third Lien Obligations shall satisfy any minimum Collateral
requirements in the Third Lien Documents (provided that any release in connection with a sale, transfer or other disposition of
Collateral in a transaction or circumstance that complies with the applicable provisions of the Third Lien Indenture (or any similar
provision of any other Third Lien Documents) and the Third Lien Collateral Trust Agreement shall not be subject to the condition
in this clause (ii)) or (iii) such release is effected in connection with a sale or other Disposition of any Collateral (or any
portion thereof) under Section 363 of the Bankruptcy Code or any other provision of the Bankruptcy Code if the Second Lien Secured
Parties shall have consented to such sale or Disposition of such Collateral; provided that, in the case of each of clauses (i),
(ii) and (iii), the Third Liens on such Collateral shall remain in place (and shall remain subject and subordinate to all Second
Liens securing Second Lien Obligations) with respect to any proceeds of a sale, transfer or other Disposition of Collateral not
paid to the Second Lien Secured Parties or that remain after the Discharge of Second Lien Obligations.

 

(c)          Each
of the Second Lien Collateral Trustee and the Third Lien Collateral Trustee agrees to execute and deliver (at the sole cost and
expense of the Grantors) all such releases and other instruments as shall reasonably be requested by the Priority Lien Agent or
the Second Lien Collateral Trustee, as applicable, to evidence and confirm any release of Collateral provided for in this Section
4.01.

 

SECTION
4.02.         Certain Agreements With Respect to Insolvency or Liquidation
Proceedings. (a) The parties hereto acknowledge that this Agreement is a “subordination agreement” under Section
510(a) of the Bankruptcy Code and shall continue in full force and effect, notwithstanding the commencement of any Insolvency or
Liquidation Proceeding by or against any Borrower or any subsidiary of EXXI. All references in this Agreement to EXXI or any subsidiary
of EXXI or any other Grantor will include such Person or Persons as a debtor-in-possession and any receiver or trustee for such
Person or Persons in an Insolvency or Liquidation Proceeding. For the purposes of this Section 4.02, unless otherwise provided
herein, clauses (b) through and including (o) shall be in full force and effect prior to the Discharge of Priority Lien Obligations
and clauses (p) through and including (cc) shall be in full force and effect following the Discharge of Priority Lien Obligations
but prior to the Discharge of Second Lien Obligations.

 

    	36

    	 

    

 

(b)          If
EXXI or any of its subsidiaries shall become subject to any Insolvency or Liquidation Proceeding and shall, as debtor(s)-in-possession,
or if any receiver or trustee for such Person or Persons shall, move for approval of financing (“DIP Financing”)
to be provided by one or more lenders (the “DIP Lenders”) under Section 364 of the Bankruptcy Code or
the use of cash collateral under Section 363 of the Bankruptcy Code, (x) the Second Lien Collateral Trustee, for itself and on
behalf of each Second Lien Secured Party, agrees that neither it nor any other Second Lien Secured Party and (y) the Third Lien
Collateral Trustee, for itself and on behalf of each Third Lien Secured Party, agrees that neither it nor any other Third Lien
Secured Party, will raise any objection, contest or oppose, and each Second Lien Secured Party and Third Lien Secured Party will
waive any claim such Person may now or hereafter have, to any such financing or to the Liens on the Collateral securing the same
(“DIP Financing Liens”), or to any use, sale or lease of cash collateral that constitutes Collateral
or to any grant of administrative expense priority under Section 364 of the Bankruptcy Code, unless (i) the Priority Lien Agent
or the Priority Lien Secured Parties oppose or object to such DIP Financing or such DIP Financing Liens or such use of cash collateral
or (ii) the maximum principal amount of indebtedness permitted under such DIP Financing exceeds the sum of (x) the amount of Priority
Lien Obligations refinanced with the proceeds thereof and (y) $150,000,000. To the extent such DIP Financing Liens are senior to,
or rank pari passu with, the Priority Liens, (x) the Second Lien Collateral Trustee will, for itself and on behalf of the
other Second Lien Secured Parties, subordinate the Second Liens on the Collateral to the Priority Liens and to such DIP Financing
Liens, so long as the Second Lien Collateral Trustee, on behalf of the Second Lien Secured Parties, retains Liens on all the Collateral,
including proceeds thereof arising after the commencement of any Insolvency or Liquidation Proceeding, with the same priority relative
to the Priority Liens and the Third Liens as existed prior to the commencement of the case under the Bankruptcy Code and (y) the
Third Lien Collateral Trustee will, for itself and on behalf of the other Third Lien Secured Parties, subordinate the Third Liens
on the Collateral to the Priority Liens, the Second Liens and to such DIP Financing Liens, so long as the Third Lien Collateral
Trustee, on behalf of the Third Lien Secured Parties, retains Liens on all the Collateral, including proceeds thereof arising after
the commencement of any Insolvency or Liquidation Proceeding, with the same priority relative to the Priority Liens and the Second
Liens as existed prior to the commencement of the case under the Bankruptcy Code.

 

(c)          Without
the consent of the Priority Lien Agent, in its sole discretion, each of the Second Lien Collateral Trustee, for itself and on behalf
of each Second Lien Secured Party and the Third Lien Collateral Trustee, for itself and on behalf of each Third Lien Secured Party,
agrees not to propose, support or enter into any DIP Financing.

 

(d)          Each
of the Second Lien Collateral Trustee, for itself and on behalf of each Second Lien Secured Party and the Third Lien Collateral
Trustee, for itself and on behalf of each Third Lien Secured Party, agrees that it will not object to, oppose or contest (or join
with or support any third party objecting to, opposing or contesting) a sale or other Disposition, a motion to sell or Dispose
or the bidding procedure for such sale or Disposition of any Collateral (or any portion thereof) under Section 363 of the Bankruptcy
Code or any other provision of the Bankruptcy Code if the Priority Lien Secured Parties shall have consented to such sale or Disposition,
such motion to sell or Dispose or such bidding procedure for such sale or Disposition of such Collateral and all Priority Liens,
Second Liens and Third Liens will attach to the proceeds of the sale in the same respective priorities as set forth in this Agreement.

 

(e)          Each
of the Second Lien Collateral Trustee, for itself and on behalf of each other Second Lien Secured Party and the Third Lien Collateral
Trustee, for itself and on behalf of each other Third Lien Secured Party, waives any claim that may be had against the Priority
Lien Agent or any other Priority Lien Secured Party arising out of any DIP Financing Liens (that is granted in a manner that is
consistent with this Agreement) or administrative expense priority under Section 364 of the Bankruptcy Code.

 

    	37

    	 

    

 

(f)          (x)
The Second Lien Collateral Trustee, for itself and on behalf of each other Second Lien Secured Party, agrees that neither the Second
Lien Collateral Trustee nor any other Second Lien Secured Party and (y) the Third Lien Collateral Trustee, for itself and on behalf
of each other Third Lien Secured Party, agrees that neither the Third Lien Collateral Trustee nor any other Third Lien Secured
Party, will file or prosecute in any Insolvency or Liquidation Proceeding any motion for adequate protection (or any comparable
request for relief) based upon their interest in the Collateral, nor object to, oppose or contest (or join with or support any
third party objecting to, opposing or contesting) (i) any request by the Priority Lien Agent or any other Priority Lien Secured
Party for adequate protection or (ii) any objection by the Priority Lien Agent or any other Priority Lien Secured Party to any
motion, relief, action or proceeding based on the Priority Lien Agent or Priority Lien Secured Parties claiming a lack of adequate
protection, except that the Second Lien Secured Parties may:

 

(i)          freely
seek and obtain relief granting adequate protection in the form of a replacement lien co-extensive in all respects with, but subordinated
(as set forth in Section 2.01) to, and with the same relative priority to the Priority Liens and the Third Liens as existed prior
to the commencement of the Insolvency or Liquidation Proceeding, all Liens granted in the Insolvency or Liquidation Proceeding
to, or for the benefit of, the Priority Lien Secured Parties; and

 

(ii)         freely
seek and obtain any relief upon a motion for adequate protection (or any comparable relief), without any condition or restriction
whatsoever, at any time after the Discharge of Priority Lien Obligations; and

 

the Third Lien Secured Parties may:

 

(i)          freely
seek and obtain relief granting adequate protection in the form of a replacement lien co-extensive in all respects with, but subordinated
(as set forth in Section 2.01) to, and with the same relative priority to the Priority Liens and the Second Liens as existed prior
to the commencement of the Insolvency or Liquidation Proceeding, all Liens granted in the Insolvency or Liquidation Proceeding
to, or for the benefit of, the Priority Lien Secured Parties and the Second Lien Secured Parties; and

 

(ii)         freely
seek and obtain any relief upon a motion for adequate protection (or any comparable relief), without any condition or restriction
whatsoever, at any time after the Discharge of Priority Lien Obligations and the Discharge of Second Lien Obligations.

 

(g)          Each
of the Second Lien Collateral Trustee, for itself and on behalf of each of the other of the Second Lien Secured Parties and the
Third Lien Collateral Trustee, for itself and on behalf of each of the other Third Lien Secured Parties, waives any claim it or
any such other Second Lien Secured Party or Third Lien Secured Party, as applicable, may now or hereafter have against the Priority
Lien Agent or any other Priority Lien Secured Party (or their representatives) arising out of any election by the Priority Lien
Agent or any Priority Lien Secured Parties, in any proceeding instituted under the Bankruptcy Code, of the application of Section
1111(b) of the Bankruptcy Code.

 

    	38

    	 

    

 

(h)          (x)
The Second Lien Collateral Trustee, for itself and on behalf of each other Second Lien Secured Party, agrees that in any Insolvency
or Liquidation Proceeding, neither the Second Lien Collateral Trustee nor any other Second Lien Secured Party and (y) the Third
Lien Collateral Trustee, for itself and on behalf of each other Third Lien Secured Party, agrees that in any Insolvency or Liquidation
Proceeding, neither the Third Lien Collateral Trustee nor any other Third Lien Secured Party, shall support or vote to accept any
plan of reorganization or disclosure statement of EXXI or any other Grantor unless (i) such plan is accepted by the Class of Priority
Lien Secured Parties in accordance with Section 1126(c) of the Bankruptcy Code or otherwise provides for the payment in full in
cash of all Priority Lien Obligations (including all post-petition interest approved by the bankruptcy court, fees and expenses
and cash collateralization of all letters of credit) on the effective date of such plan of reorganization, or (ii) such plan provides
on account of the Priority Lien Secured Parties for the retention by the Priority Lien Agent, for the benefit of the Priority Lien
Secured Parties, of the Liens on the Collateral securing the Priority Lien Obligations, and on all proceeds thereof whenever received,
and such plan also provides that any Liens retained by, or granted to, the Second Lien Collateral Trustee and the Third Lien Collateral
Trustee are only on property securing the Priority Lien Obligations and shall have the same relative priority with respect to the
Collateral or other property, respectively, as provided in this Agreement with respect to the Collateral. Except as provided herein,
each of the Second Lien Secured Parties and the Third Lien Secured Parties shall remain entitled to vote their claims in any such
Insolvency or Liquidation Proceeding.

 

(i)          (x)
The Second Lien Collateral Trustee, for itself and on behalf of each other Second Lien Secured Party, agrees that neither the Second
Lien Collateral Trustee nor any other Second Lien Secured Party and (y) the Third Lien Collateral Trustee, for itself and on behalf
of each other Third Lien Secured Party, agrees that neither the Third Lien Collateral Trustee nor any other Third Lien Secured
Party, shall seek relief, pursuant to Section 362(d) of the Bankruptcy Code or otherwise, from the automatic stay of Section 362(a)
of the Bankruptcy Code or from any other stay in any Insolvency or Liquidation Proceeding in respect of the Collateral without
the prior written consent of the Priority Lien Agent.

 

(j)          (x)
The Second Lien Collateral Trustee, for itself and on behalf of each other Second Lien Secured Party, agrees that neither the Second
Lien Collateral Trustee nor any other Second Lien Secured Party and (y) the Third Lien Collateral Trustee, for itself and on behalf
of each other Third Lien Secured Party, agrees that neither the Third Lien Collateral Trustee nor any other Third Lien Secured
Party, shall oppose or seek to challenge any claim by the Priority Lien Agent or any other Priority Lien Secured Party for allowance
or payment in any Insolvency or Liquidation Proceeding of Priority Lien Obligations consisting of post-petition interest, fees
or expenses or cash collateralization of all letters of credit to the extent of the value of the Priority Liens (it being understood
that such value will be determined without regard to the existence of the Second Liens or the Third Liens on the Collateral) subject
to the Priority Lien Cap. Neither Priority Lien Agent nor any other Priority Lien Secured Party shall oppose or seek to challenge
any claim by the Second Lien Collateral Trustee, any other Second Lien Secured Party, the Third Lien Collateral Trustee or any
other Third Lien Secured Party for allowance or payment in any Insolvency or Liquidation Proceeding of Second Lien Obligations
or Third Lien Obligations, as applicable, consisting of post-petition interest, fees or expenses to the extent of the value of
the Second Liens or the Third Liens, as applicable, on the Collateral; provided that if the Priority Lien Agent or any other Priority
Lien Secured Party shall have made any such claim, such claim (i) shall have been approved or (ii) will be approved contemporaneously
with the approval of any such claim by the Second Lien Collateral Trustee or any Second Lien Secured Party or the Third Lien Collateral
Trustee or any Third Lien Secured Party, as applicable.

 

    	39

    	 

    

 

(k)          Without
the express written consent of the Priority Lien Agent, none of the Second Lien Collateral Trustee, any other Second Lien Secured
Party, the Third Lien Collateral Trustee or any other Third Lien Secured Party shall (or shall join with or support any third party
in opposing, objecting to or contesting, as the case may be), in any Insolvency or Liquidation Proceeding involving any Grantor,
(i) oppose, object to or contest the determination of the extent of any Liens held by any of Priority Lien Secured Party or the
value of any claims of any such holder under Section 506(a) of the Bankruptcy Code or (ii) oppose, object to or contest the payment
to the Priority Lien Secured Party of interest, fees or expenses under Section 506(b) of the Bankruptcy Code subject to the Priority
Lien Cap.

 

(l)          Notwithstanding
anything to the contrary contained herein, if in any Insolvency or Liquidation Proceeding a determination is made that any Lien
encumbering any Collateral is not enforceable for any reason, then each of the Second Lien Collateral Trustee for itself and on
behalf of each other Second Lien Secured Party and the Third Lien Collateral Trustee, for itself and on behalf of each other Third
Lien Secured Party, agrees that, any distribution or recovery they may receive shall be segregated and held in trust and forthwith
paid over to the Priority Lien Agent for the benefit of the Priority Lien Secured Parties in the same form as received without
recourse, representation or warranty (other than a representation of the Second Lien Collateral Trustee or the Third Lien Collateral
Trustee, as applicable, that it has not otherwise sold, assigned, transferred or pledged any right, title or interest in and to
such distribution or recovery) but with any necessary endorsements or as a court of competent jurisdiction may otherwise direct.
Each of the Second Lien Collateral Trustee, for itself and on behalf of each other Second Lien Secured Party and the Third Lien
Collateral Trustee, for itself and on behalf of each other Third Lien Secured Party, hereby appoints the Priority Lien Agent, and
any officer or agent of the Priority Lien Agent, with full power of substitution, the attorney-in-fact of each Second Lien Secured
Party and Third Lien Secured Party for the limited purpose of carrying out the provisions of this Section 4.02(1) and taking any
action and executing any instrument that the Priority Lien Agent may deem necessary or advisable to accomplish the purposes of
this Section 4.02(1), which appointment is irrevocable and coupled with an interest.

 

(m)          Each
of the Second Lien Collateral Trustee, for itself and on behalf of each other Second Lien Secured Party and the Third Lien Collateral
Trustee, for itself and on behalf of each other Third Lien Secured Party, hereby agrees that the Priority Lien Agent shall have
the exclusive right to credit bid the Priority Lien Obligations and further that none of the Second Lien Collateral Trustee, any
other Second Lien Secured Party, the Third Lien Collateral Trustee or any other Third Lien Secured Party shall (or shall join with
or support any third party in opposing, objecting to or contesting, as the case may be) oppose, object to or contest such credit
bid by the Priority Lien Agent.

 

(n)          Without
the consent of the Priority Lien Agent in its sole discretion, each of the Second Lien Collateral Trustee, for itself and on behalf
of each other Second Lien Secured Party and the Third Lien Collateral Trustee, for itself and on behalf of each other Third Lien
Secured Party, agrees it will not file an involuntary bankruptcy claim or seek the appointment of an examiner or a trustee for
EXXI or any of its subsidiaries.

 

    	40

    	 

    

 

(o)          Each
of the Second Lien Collateral Trustee, for itself and on behalf of each other Second Lien Secured Party and the Third Lien Collateral
Trustee, for itself and on behalf of each other Third Lien Secured Party, waives any right to assert or enforce any claim under
Section 506(c) or 552 of the Bankruptcy Code as against any Priority Lien Secured Party or any of the Collateral.

 

(p)          If
EXXI or any of its subsidiaries shall become subject to any Insolvency or Liquidation Proceeding and shall, as debtor(s)-in-possession,
move for approval of DIP Financing to be provided by one or more DIP Lenders under Section 364 of the Bankruptcy Code or the use
of cash collateral under Section 363 of the Bankruptcy Code, the Third Lien Collateral Trustee, for itself and on behalf of each
Third Lien Secured Party, agrees that neither it nor any other Third Lien Secured Party will raise any objection, contest or oppose,
and each Third Lien Secured Party will waive any claim such Person may now or hereafter have, to any such financing or to the DIP
Financing Liens on the Collateral securing the same, or to any use, sale or lease of cash collateral that constitutes Collateral
or to any grant of administrative expense priority under Section 364 of the Bankruptcy Code, unless (i) the Second Lien Collateral
Trustee or the Second Lien Secured Parties oppose or object to such DIP Financing or such DIP Financing Liens or such use of cash
collateral or (ii) the maximum principal amount of indebtedness permitted under such DIP Financing exceeds the sum of (x) the amount
of Second Lien Obligations refinanced with the proceeds thereof and (y) $150,000,000. To the extent such DIP Financing Liens are
senior to, or rank pari passu with, the Second Liens, the Third Lien Collateral Trustee will, for itself and on behalf of
the other Third Lien Secured Parties, subordinate the Third Liens on the Collateral to the Second Liens and to such DIP Financing
Liens, so long as the Third Lien Collateral Trustee, on behalf of the Third Lien Secured Parties, retains Liens on all the Collateral,
including proceeds thereof arising after the commencement of any Insolvency or Liquidation Proceeding, with the same priority relative
to the Priority Liens and the Second Liens as existed prior to the commencement of the case under the Bankruptcy Code.

 

(q)          Without
the consent of the Second Lien Collateral Trustee in its sole discretion, the Third Lien Collateral Trustee, for itself and on
behalf of each Third Lien Secured Party, agrees not to propose, support or enter into any DIP Financing.

 

(r)          The
Third Lien Collateral Trustee, for itself and on behalf of each Third Lien Secured Party, agrees that it will not object to, oppose
or contest (or join with or support any third party objecting to, opposing or contesting) a sale or other Disposition, a motion
to sell or Dispose or the bidding procedure for such sale or Disposition of any Collateral (or any portion thereof) under Section
363 of the Bankruptcy Code or any other provision of the Bankruptcy Code if the Second Lien Secured Parties shall have consented
to such sale or Disposition, such motion to sell or Dispose or such bidding procedure for such sale or Disposition of such Collateral
and all Second Liens and Third Liens will attach to the proceeds of the sale in the same respective priorities as set forth in
this Agreement.

 

    	41

    	 

    

 

(s)          The
Third Lien Collateral Trustee, for itself and on behalf of each other Third Lien Secured Party, waives any claim that may be had
against the Second Lien Collateral Trustee or any other Second Lien Secured Party arising out of any DIP Financing Liens (granted
in a manner that is consistent with this Agreement) or administrative expense priority under Section 364 of the Bankruptcy Code.

 

(t)          The
Third Lien Collateral Trustee, for itself and on behalf of each other Third Lien Secured Party, agrees that neither the Third Lien
Collateral Trustee nor any other Third Lien Secured Party will file or prosecute in any Insolvency or Liquidation Proceeding any
motion for adequate protection (or any comparable request for relief) based upon their interest in the Collateral, nor object to,
oppose or contest (or join with or support any third party objecting to, opposing or contesting) (i) any request by the Second
Lien Collateral Trustee or any other Second Lien Secured Party for adequate protection or (ii) any objection by the Second Lien
Collateral Trustee or any other Second Lien Secured Party to any motion, relief, action or proceeding based on the Second Lien
Collateral Trustee or Second Lien Secured Parties claiming a lack of adequate protection, except that the Third Lien Secured Parties
may:

 

(i)          freely
seek and obtain relief granting a replacement lien co-extensive in all respects with, but subordinated (as set forth in Section
2.01) to, with the same relative priority to the Second Liens as existed prior to the commencement of the Insolvency or Liquidation
Proceeding, all Liens granted in the Insolvency or Liquidation Proceeding to, or for the benefit of, the Second Lien Secured Parties;
and

 

(ii)         freely
seek and obtain any relief upon a motion for adequate protection (or any comparable relief), without any condition or restriction
whatsoever, at any time after the Discharge of Second Lien Obligations.

 

(u)          The
Third Lien Collateral Trustee, for itself and on behalf of each of the other of the Third Lien Secured Parties, waives any claim
the Third Lien Collateral Trustee or any such other Third Lien Secured Party may now or hereafter have against the Second Lien
Collateral Trustee or any other Second Lien Secured Party (or their representatives) arising out of any election by the Second
Lien Collateral Trustee or any Second Lien Secured Parties, in any proceeding instituted under the Bankruptcy Code, of the application
of Section 1111(b) of the Bankruptcy Code.

 

(v)         The
Third Lien Collateral Trustee, for itself and on behalf of each other Third Lien Secured Party, agrees that in any Insolvency or
Liquidation Proceeding, neither the Third Lien Collateral Trustee nor any other Third Lien Secured Party shall support or vote
for any plan of reorganization or disclosure statement of EXXI or any other Grantor unless (i) such plan is accepted by the Class
of Second Lien Secured Parties in accordance with Section 1126(c) of the Bankruptcy Code or otherwise provides for the payment
in full in cash of all Second Lien Obligations (including all post-petition interest, fees and expenses) on the effective date
of such plan of reorganization, or (ii) such plan provides on account of the Second Lien Secured Parties for the retention by the
Second Lien Collateral Trustee, for the benefit of the Second Lien Secured Parties, of the Liens on the Collateral securing the
Second Lien Obligations, and on all proceeds thereof whenever received, and such plan also provides that any Liens retained by,
or granted to, the Third Lien Collateral Trustee are only on property securing the Second Lien Obligations and shall have the same
relative priority with respect to the Collateral or other property, respectively, as provided in this Agreement with respect to
the Collateral. Except as provided herein, the Third Lien Secured Parties shall remain entitled to vote their claims in any such
Insolvency or Liquidation Proceeding.

 

    	42

    	 

    

 

(w)          The
Third Lien Collateral Trustee, for itself and on behalf of each other Third Lien Secured Party, hereby agrees that until the Discharge
of Second Lien Obligations has occurred, neither Third Lien Collateral Trustee nor any Third Lien Secured Party shall seek relief,
pursuant to Section 362(d) of the Bankruptcy Code or otherwise, from the automatic stay of Section 362(a) of the Bankruptcy Code
or from any other stay in any Insolvency or Liquidation Proceeding in respect of the Collateral, without the prior written consent
of the Second Lien Collateral Trustee.

 

(x)          The
Third Lien Collateral Trustee, for itself and on behalf of each other Third Lien Secured Party, agrees that neither Third Lien
Collateral Trustee nor any other Third Lien Secured Party shall oppose or seek to challenge any claim by the Second Lien Collateral
Trustee or any other Second Lien Secured Party for allowance or payment in any Insolvency or Liquidation Proceeding of Second Lien
Obligations consisting of post-petition interest, fees or expenses to the extent of the value of the Second Liens (it being understood
that such value will be determined without regard to the existence of the Third Liens on the Collateral). Neither Second Lien Collateral
Trustee nor any other Second Lien Secured Party shall oppose or seek to challenge any claim by the Third Lien Collateral Trustee
or any other Third Lien Secured Party for allowance or payment in any Insolvency or Liquidation Proceeding of Third Lien Obligations
consisting of post-petition interest, fees or expenses to the extent of the value of the Third Liens on the Collateral; provided
that if the Second Lien Collateral Trustee or any other Second Lien Secured Party shall have made any such claim, such claim (i)
shall have been approved or (ii) will be approved contemporaneously with the approval of any such claim by the Third Lien Collateral
Trustee or any Third Lien Secured Party.

 

(y)          Without
the express written consent of the Second Lien Collateral Trustee, neither Third Lien Collateral Trustee nor any other Third Lien
Secured Party shall (or shall join with or support any third party in opposing, objecting to or contesting, as the case may be),
in any Insolvency or Liquidation Proceeding involving any Grantor, (i) oppose, object to or contest the determination of the extent
of any Liens held by any of Second Lien Secured Party or the value of any claims of any such holder under Section 506(a) of the
Bankruptcy Code or (ii) oppose, object to or contest the payment to the Second Lien Secured Party of interest, fees or expenses
under Section 506(b) of the Bankruptcy Code.

 

(z)          Notwithstanding
anything to the contrary contained herein, if in any Insolvency or Liquidation Proceeding a determination is made that any Lien
encumbering any Collateral is not enforceable for any reason, then the Third Lien Collateral Trustee for itself and on behalf of
each other Third Lien Secured Party, agrees that, any distribution or recovery they may receive shall be segregated and held in
trust and forthwith paid over to the Second Lien Collateral Trustee for the benefit of the Second Lien Secured Parties in the same
form as received without recourse, representation or warranty (other than a representation of the Third Lien Collateral Trustee
that it has not otherwise sold, assigned, transferred or pledged any right, title or interest in and to such distribution or recovery)
but with any necessary endorsements or as a court of competent jurisdiction may otherwise direct. The Third Lien Collateral Trustee,
for itself and on behalf of each other Third Lien Secured Party, hereby appoints the Second Lien Collateral Trustee, and any officer
or agent of the Second Lien Collateral Trustee, with full power of substitution, the attorney-in-fact of each Third Lien Secured
Party for the limited purpose of carrying out the provisions of this Section 4.02(z) and taking any action and executing any instrument
that the Second Lien Collateral Trustee may deem necessary or advisable to accomplish the purposes of this Section 4.02(z), which
appointment is irrevocable and coupled with an interest.

 

    	43

    	 

    

 

(aa)         The
Third Lien Collateral Trustee, for itself and on behalf of each other Third Lien Secured Party, hereby agrees that the Second Lien
Collateral Trustee shall have the exclusive right to credit bid the Second Lien Obligations and further that neither the Third
Lien Collateral Trustee nor any other Third Lien Secured Party shall (or shall join with or support any third party in opposing,
objecting to or contesting, as the case may be) oppose, object to or contest such credit bid by the Second Lien Collateral Trustee.

 

(bb)         Without
the consent of the Second Lien Collateral Trustee in its sole discretion, the Third Lien Trustee, for itself and on behalf of each
other Third Lien Secured Party, agrees it will not file an involuntary bankruptcy claim or seek the appointment of an examiner
or a trustee for EXXI or any of its subsidiaries.

 

(cc)         The
Third Lien Collateral Trustee, for itself and on behalf of each other Third Lien Secured Party, waives any right to assert or enforce
any claim under Section 506(c) or 552 of the Bankruptcy Code as against any Second Lien Secured Party or any of the Collateral.

 

SECTION
4.03.         Reinstatement. If any Priority Lien Secured Party is required
in any Insolvency or Liquidation Proceeding or otherwise to turn over or otherwise pay to the estate of any Grantor any amount
(a “Recovery”) for any reason whatsoever, then the Priority Lien Obligations shall be reinstated to the
extent of such Recovery and the Priority Lien Secured Parties shall be entitled to a reinstatement of Priority Lien Obligations
with respect to all such recovered amounts. Each of the Second Lien Collateral Trustee, for itself and on behalf of each other
Second Lien Secured Party, and the Third Lien Collateral Trustee, for itself and on behalf of each other Third Lien Secured Party,
agrees that if, at any time, it receives notice of any Recovery, the Second Lien Collateral Trustee, any other Second Lien Secured
Party, the Third Lien Collateral Trustee or any other Third Lien Secured Party, as applicable, shall promptly pay over to the Priority
Lien Agent any payment received by it and then in its possession or under its control in respect of any Collateral subject to any
Priority Lien securing such Priority Lien Obligations and shall promptly turn any Collateral subject to any such Priority Lien
then held by it over to the Priority Lien Agent, and the provisions set forth in this Agreement shall be reinstated as if such
payment had not been made. If this Agreement shall have been terminated prior to any such Recovery, this Agreement shall be reinstated
in full force and effect, and such prior termination shall not diminish, release, discharge, impair or otherwise affect the obligations
of the parties hereto from such date of reinstatement. Any amounts received by the Second Lien Collateral Trustee, any other Second
Lien Secured Party, the Third Lien Collateral Trustee or any other Third Lien Secured Party and then in its possession or under
its control on account of the Second Lien Obligations or Third Lien Obligations, as applicable, after the termination of this Agreement
shall, in the event of a reinstatement of this Agreement pursuant to this Section 4.03, be held in trust for and paid over to the
Priority Lien Agent for the benefit of the Priority Lien Secured Parties for application to the reinstated Priority Lien Obligations
until the discharge thereof. This Section 4.03 shall survive termination of this Agreement.

 

    	44

    	 

    

 

SECTION
4.04.         Refinancings; Additional Second Lien Debt; Initial Third Lien
Indebtedness; Additional Third Lien Debt.

 

(a)          The
Priority Lien Obligations, the Second Lien Obligations and the Third Lien Obligations may be Replaced, by any Priority Substitute
Credit Facility, Second Lien Substitute Facility or Third Lien Substitute Facility, as the case may be, in each case, without notice
to, or the consent of any Secured Party, all without affecting the Lien priorities provided for herein or the other provisions
hereof; provided, that (i) the Priority Lien Agent, the Second Lien Collateral Trustee and the Third Lien Collateral Trustee
shall receive on or prior to incurrence of a Priority Substitute Credit Facility, Second Lien Substitute Facility or Third Lien
Substitute Credit Facility (y) an Officers’ Certificate from EXXI stating that (A) the incurrence thereof is permitted by
each applicable Secured Debt Document to be incurred and (B) the requirements of Section 4.06 have been satisfied, and (z) a Priority
Confirmation Joinder from the holders or lenders of any indebtedness that Replaces the Priority Lien Obligations, the Second Lien
Obligations or the Third Lien Obligations (or an authorized agent, trustee or other representative on their behalf), (ii) the aggregate
outstanding principal amount of the Priority Lien Obligations, after giving effect to such Priority Substitute Credit Facility,
shall not exceed the Priority Lien Cap and (iii) on or before the date of such incurrence, such Priority Substitute Credit Facility,
Second Lien Substitute Facility or Third Lien Substitute Facility is designated by EXXI, in an Officers’ Certificate delivered
to the Priority Lien Agent, the Second Lien Collateral Trustee and the Third Lien Collateral Trustee, as “Priority Lien Debt”,
“Second Lien Debt” or “Third Lien Debt”, as applicable, for the purposes of the Secured Debt Documents
and this Agreement; provided that no Series of Secured Debt may be designated as more than one of Priority Lien Debt, Second Lien
Debt or Third Lien Debt.

 

(b)          EXXI
will be permitted to designate as an additional holder of Second Lien Obligations or Third Lien Obligations hereunder each Person
who is, or who becomes, the registered holder of Second Lien Debt or Third Lien Debt, as applicable, incurred by EXXI after the
date of this Agreement in accordance with the terms of all applicable Secured Debt Documents. EXXI may effect such designation
by delivering to the Priority Lien Agent, the Second Lien Collateral Trustee and the Third Lien Collateral Trustee, each of the
following:

 

(i)          an
Officers’ Certificate stating that EXXI intends to incur (A) Additional Second Lien Obligations which will be Second Lien
Debt, (B) Initial Third Lien Obligations which will be Third Lien Debt or (C) or Additional Third Lien Obligations which will be
Third Lien Debt, which in each case, will be permitted by each applicable Secured Debt Document to be incurred and secured by a
Second Lien or Third Lien, as applicable, equally and ratably with all previously existing and future Second Lien Debt or Third
Lien Debt, as applicable;

 

    	45

    	 

    

 

(ii)         an
authorized agent, trustee or other representative on behalf of the holders or lenders of any Additional Second Lien Obligations,
Initial Third Lien Obligations or Additional Third Lien Obligations, as applicable, must be designated as an additional holder
of Secured Obligations hereunder and must, prior to such designation, sign and deliver on behalf of the holders or lenders of such
Additional Second Lien Obligations, Initial Third Lien Obligations or Additional Third Lien Obligations, as applicable, a Priority
Confirmation Joinder, and, to the extent necessary or appropriate to facilitate such transaction, a new intercreditor agreement
substantially similar to this Agreement, as in effect on the date hereof; and

 

(iii)        evidence
that EXXI has duly authorized, executed (if applicable) and recorded (or caused to be recorded) in each appropriate governmental
office all relevant filings and recordations deemed necessary by EXXI and the holder of such Additional Second Lien Obligations,
Initial Third Lien Obligations or Additional Third Lien Obligations, as applicable, or its Secured Debt Representative, to ensure
that the Additional Second Lien Obligations, Initial Third Lien Obligations or Additional Third Lien Obligations are secured by
the Collateral in accordance with the Second Lien Security Documents or the Third Lien Security Documents, as applicable (provided
that such filings and recordings may be authorized, executed and recorded following any incurrence on a post-closing basis if permitted
by the Second Lien Representative or Third Lien Representative for such Additional Second Lien Obligations or Additional Third
Lien Obligations, as applicable).

 

For the avoidance of doubt, the deliveries
set forth in clauses (i) through (iii) of Section 4.04(b) shall not be required (and shall be deemed satisfied) in connection with
an issuance of Additional Notes constituting Second Lien Indenture Notes.

 

(c)          EXXI
will be permitted to enter into an Initial Third Lien Debt Facility to the extent such Initial Third Lien Debt Facility is permitted
by the Priority Credit Agreement, the other Priority Lien Documents, the Second Lien Indenture and the other Second Lien Documents.
Any Third Lien Debt incurred pursuant to such Initial Third Lien Debt Facility may be secured by a Third Lien under and pursuant
to the Initial Third Lien Security Documents provided the Third Lien Collateral Trustee, acting for itself and on behalf of the
Initial Third Lien Secured Parties, becomes a party to this Agreement by satisfying the conditions set forth in clauses (i) and
(ii) of the immediately succeeding paragraph.

 

In order for the Third
Lien Collateral Trustee to become a party to this Agreement,

 

(i)          the
Priority Lien Agent, the Second Lien Collateral Trustee and the Third Lien Collateral Trustee shall have executed and delivered
a Priority Confirmation Joinder pursuant to which (a) such Third Lien Collateral Trustee becomes a Secured Debt Representative
hereunder and (b) the Third Lien Debt and the related Initial Third Lien Secured Parties become subject hereto and bound hereby;

 

(ii)         EXXI
shall have delivered to the Priority Lien Agent and the Second Lien Collateral Trustee (a) true and complete copies of each Initial
Third Lien Document and (b) an Officer’s Certificate certifying such copies as being true and correct and identifying the
obligations to be designated as Initial Third Lien Obligations and the initial aggregate principal amount thereof;

 

    	46

    	 

    

 

(iii)        without
limiting Section 4.06, the Initial Third Lien Documents relating to such Third Lien Debt shall provide, in a manner satisfactory
to the Priority Lien Agent, that each Initial Third Lien Secured Party shall be subject to and bound by the provisions of this
Agreement in its capacity as a holder of such Third Lien Debt.

 

Notwithstanding the foregoing,
nothing in this Agreement will be construed to allow any Borrower or any other Grantor to incur additional indebtedness unless
otherwise permitted by the terms of each applicable Secured Debt Document.

 

Each of the then-exiting
Priority Lien Agent, the Second Lien Collateral Trustee and the Third Lien Collateral Trustee shall be authorized to execute and
deliver such documents and agreements (including amendments or supplements to this Agreement) as such holders, lenders, agent,
trustee or other representative may reasonably request to give effect to any such Replacement or any incurrence of Additional Notes,
Additional Second Lien Obligations, Initial Third Lien Obligations or Additional Third Lien Obligations, it being understood that
the Priority Lien Agent, the Second Lien Collateral Trustee and the Third Lien Collateral Trustee or (if permitted by the terms
of the applicable Secured Debt Documents) the Grantors, without the consent of any other Secured Party or (in the case of the Grantors)
one or more Secured Debt Representatives, may amend, supplement, modify or restate this Agreement to the extent necessary or appropriate
to facilitate such amendments or supplements to effect such Replacement or incurrence all at the expense of the Grantors. Upon
the consummation of such Replacement or incurrence and the execution and delivery of the documents and agreements contemplated
in the preceding sentence, the holders or lenders of such indebtedness and any authorized agent, trustee or other representative
thereof shall be entitled to the benefits of this Agreement.

 

SECTION
4.05.         Amendments to Second Lien Documents and Third Lien Documents.
Prior to the Discharge of Priority Lien Obligations, without the prior written consent of the Priority Lien Agent, no Second Lien
Document or Third Lien Document may be amended, supplemented, restated or otherwise modified and/or refinanced or entered into
to the extent such amendment, supplement, restatement or modification and/or refinancing, or the terms of any new Second Lien Document
or Third Lien Document, as applicable, would (i) adversely affect payment or priority rights of the Priority Lien Secured Parties
including but not limited to changing the interest rates, fees, tenor, or excess cash flow formula, if any, advancing any date
upon which a scheduled payment of principal or interest is due, or otherwise decreasing the weighted average life to maturity,
changing a prepayment, redemption or defeasance provision so as to require a new payment or accelerate an existing payment obligation
or changing a term that would result in a default under the Priority Credit Agreement, (ii) amend, supplement or otherwise modify
the term “default” or “event of default” (or words of similar import) contained in any Second Lien Document
or Third Lien Document, (iii) except as otherwise provided for in this Agreement, add any Liens securing the Collateral granted
under the Second Lien Security Documents or the Third Lien Security Documents, (iv) confer any additional rights on the Second
Lien Collateral Trustee, any other Second Lien Secured Party, the Third Lien Collateral Trustee or any other Third Lien Secured
Party in a manner adverse to the Priority Lien Secured Parties, (v) modify any financial covenant, negative covenant, default or
event of default to make it more restrictive than the Priority Credit Agreement or (vi) contravene the provisions of this Agreement
or the Priority Lien Documents.

 

    	47

    	 

    

 

SECTION
4.06.         Legends. The Priority Lien Agent acknowledges with respect
to the Priority Credit Agreement and the Priority Lien Security Documents, the Second Lien Collateral Trustee acknowledges with
respect to (a) the Second Lien Indenture and the Indenture Second Lien Security Documents, and (b) the Additional Second Lien Debt
Facility and the Additional Second Lien Security Documents, if any, and the Third Lien Collateral Trustee acknowledges with respect
to (a) the Initial Third Lien Debt Facility and the Initial Third Lien Security Documents, if any, and (b) the Additional Third
Lien Debt Facility and the Additional Third Lien Security Documents, if any, that the Second Lien Indenture, the Initial Third
Lien Debt Facility (if any), the Additional Second Lien Debt Facility (if any), the Additional Third Lien Debt Facility (if any),
the Second Lien Documents (other than control agreements to which both the Priority Lien Agent and the Second Lien Collateral Trustee
are parties), the Third Lien Documents (other than control agreements to which the Priority Lien Agent or the Second Lien Collateral
Trustee, as applicable, and the Third Lien Collateral Trustee are parties) and each associated Security Document (other than control
agreements to which both the Priority Lien Agent and the Second Lien Collateral Trustee are parties or, in the case of Third Lien
Security Documents, other than control agreements to which the Priority Lien Agent or the Second Lien Collateral Trustee, as applicable,
and the Third Lien Collateral Trustee are parties) granting any security interest in the Collateral will contain the appropriate
legend set forth on Annex I.

 

SECTION
4.07.         Second Lien Secured Parties and Third Lien Secured Parties
Rights as Unsecured Creditors; Judgment Lien Creditor. Both before and during an Insolvency or Liquidation Proceeding, any
of the Second Lien Secured Parties and the Third Lien Secured Parties may take any actions and exercise any and all rights that
would be available to a holder of unsecured claims; provided, however, that the Second Lien Secured Parties and the
Third Lien Secured Parties may not take any of the actions prohibited by Section 3.05(a) or Section 4.02 or any other provisions
in this Agreement; provided, further, that in the event that any of the Second Lien Secured Parties or Third Lien Secured
Parties becomes a judgment lien creditor in respect of any Collateral as a result of its enforcement of its rights as an unsecured
creditor with respect to the Second Lien Obligations or the Third Lien Obligations, as applicable, such judgment lien shall be
subject to the terms of this Agreement for all purposes (including in relation to the Priority Lien Obligations and the Second
Lien Obligations, as applicable) as the Second Liens and Third Liens, as applicable, are subject to this Agreement.

 

SECTION
4.08.         Postponement of Subrogation. (a)          Each
of the Second Lien Collateral Trustee, for itself and on behalf of each other Second Lien Secured Party, and the Third Lien Collateral
Trustee, for itself and on behalf of each other Third Lien Secured Party, hereby agrees that no payment or distribution to any
Priority Lien Secured Party pursuant to the provisions of this Agreement shall entitle any Second Lien Secured Party or Third Lien
Secured Party to exercise any rights of subrogation in respect thereof until, in the case of the Second Lien Secured Parties, the
Discharge of Priority Lien Obligations, and in the case of the Third Lien Secured Parties, the Discharge of Second Lien Obligations
shall have occurred. Following the Discharge of Priority Lien Obligations, but subject to the reinstatement as provided in Section
4.03, each Priority Lien Secured Party will execute such documents, agreements, and instruments as any Second Lien Secured Party
may reasonably request to evidence the transfer by subrogation to any such Person of an interest in the Priority Lien Obligations
resulting from payments or distributions to such Priority Lien Secured Party by such Person, so long as all costs and expenses
(including all reasonable legal fees and disbursements) incurred in connection therewith by such Priority Lien Secured Party are
paid by such Person upon request for payment thereof.

 

    	48

    	 

    

 

(b)          Following
the Discharge of Priority Lien Obligations but prior to the Discharge of Second Lien Obligations, the Third Lien Collateral Trustee,
for itself and on behalf of each other Third Lien Secured Party, agrees that no payment or distribution to any Second Lien Secured
Party pursuant to the provisions of this Agreement shall entitle any Third Lien Secured Party to exercise any rights of subrogation
in respect thereof. Following the Discharge of Second Lien Obligations, but subject to the reinstatement as provided in Section
4.03, each Second Lien Secured Party will execute such documents, agreements, and instruments as any Third Lien Secured Party may
reasonably request to evidence the transfer by subrogation to any such Person of an interest in the Second Lien Obligations resulting
from payments or distributions to such Second Lien Secured Party by such Person, so long as all costs and expenses (including all
reasonable legal fees and disbursements) incurred in connection therewith by such Second Lien Secured Party are paid by such Person
upon request for payment thereof.

 

SECTION
4.09.         Acknowledgment by the Secured Debt Representatives. Each
of the Priority Lien Agent, for itself and on behalf of the other Priority Lien Secured Parties, the Second Lien Collateral Trustee,
for itself and on behalf of the other Second Lien Secured Parties, and the Third Lien Collateral Trustee, for itself and on behalf
of the other Third Lien Secured Parties, hereby acknowledges that this Agreement is a material inducement to enter into a business
relationship, that each has relied on this Agreement to enter into the Priority Credit Agreement, the Second Lien Indenture and
the Third Lien Indenture, as applicable, and all documentation related thereto, and that each will continue to rely on this Agreement
in their related future dealings.

 

    	49

    	 

    

 

Article
V

Gratuitous Bailment for Perfection of Certain Security Interests

 

SECTION
5.01.         General. (a) Prior to the Discharge of Priority Lien Obligations,
the Priority Lien Agent agrees that if it shall at any time hold a Priority Lien on any Collateral that can be perfected by the
possession or control of such Collateral or of any Account in which such Collateral is held, and if such Collateral or any such
Account is in fact in the possession or under the control of the Priority Lien Agent, the Priority Lien Agent will serve as gratuitous
bailee for (i) the Second Lien Collateral Trustee for the sole purpose of perfecting the Second Lien of the Second Lien Collateral
Trustee on such Collateral and (ii) the Third Lien Collateral Trustee for the sole purpose of perfecting the Third Lien of the
Third Lien Collateral Trustee on such Collateral. It is agreed that the obligations of the Priority Lien Agent and the rights of
the Second Lien Collateral Trustee, the other Second Lien Secured Parties, the Third Lien Collateral Trustee and the other Third
Lien Secured Parties in connection with any such bailment arrangement will be in all respects subject to the provisions of Article
II. Notwithstanding anything to the contrary herein, the Priority Lien Agent will be deemed to make no representation as to the
adequacy of the steps taken by it to perfect the Second Lien or Third Lien on any such Collateral and shall have no responsibility,
duty, obligation or liability to the Second Lien Collateral Trustee, any other Second Lien Secured Party, the Third Lien Collateral
Trustee or any other Third Lien Secured Party or any other Person for such perfection or failure to perfect, it being understood
that the sole purpose of this Article is to enable the Second Lien Secured Parties to obtain a perfected Second Lien and the Third
Lien Secured Parties to obtain a perfected Third Lien in such Collateral to the extent, if any, that such perfection results from
the possession or control of such Collateral or any such Account by the Priority Lien Agent. The Priority Lien Agent acting pursuant
to this Section 5.01 shall not have by reason of the Priority Lien Security Documents, the Second Lien Security Documents, the
Third Lien Security Documents, this Agreement or any other document or theory, a fiduciary relationship in respect of any Priority
Lien Secured Party, the Second Lien Collateral Trustee, any Second Lien Secured Party, the Third Lien Collateral Trustee or any
Third Lien Secured Party. Subject to Section 4.03, from and after the Discharge of Priority Lien Obligations, the Priority Lien
Agent shall take all such actions in its power as shall reasonably be requested by the Second Lien Collateral Trustee (at the sole
cost and expense of the Grantors) to transfer possession or control of such Collateral or any such Account (in each case to the
extent the Second Lien Collateral Trustee has a Lien on such Collateral or Account after giving effect to any prior or concurrent
releases of Liens) to the Second Lien Collateral Trustee for the benefit of all Second Lien Secured Parties.

 

(b)          Following
the Discharge of Priority Lien Obligations but prior to the Discharge of Second Lien Obligations, the Second Lien Collateral Trustee
agrees that if it shall at any time hold a Second Lien on any Collateral that can be perfected by the possession or control of
such Collateral or of any Account in which such Collateral is held, and if such Collateral or any such Account is in fact in the
possession or under the control of the Second Lien Collateral Trustee, the Second Lien Collateral Trustee will serve as gratuitous
bailee for the Third Lien Collateral Trustee for the sole purpose of perfecting the Third Lien of the Third Lien Collateral Trustee
on such Collateral. It is agreed that the obligations of the Second Lien Collateral Trustee and the rights of the Third Lien Collateral
Trustee and the other Third Lien Secured Parties in connection with any such bailment arrangement will be in all respects subject
to the provisions of Article II. Notwithstanding anything to the contrary herein, the Second Lien Collateral Trustee will be deemed
to make no representation as to the adequacy of the steps taken by it to perfect the Third Lien on any such Collateral and shall
have no responsibility, duty, obligation or liability to the Third Lien Collateral Trustee or any other Third Lien Secured Party
or any other Person for such perfection or failure to perfect, it being understood that the sole purpose of this Article is to
enable the Third Lien Secured Parties to obtain a perfected Third Lien in such Collateral to the extent, if any, that such perfection
results from the possession or control of such Collateral or any such Account by the Second Lien Collateral Trustee. The Second
Lien Collateral Trustee acting pursuant to this Section 5.01 shall not have by reason of the Second Lien Security Documents, the
Third Lien Security Documents, this Agreement or any other document or theory, a fiduciary relationship in respect of any Second
Lien Secured Party, the Third Lien Collateral Trustee or any Third Lien Secured Party. Subject to Section 4.03, from and after
the Discharge of Second Lien Obligations, the Second Lien Collateral Trustee shall take all such actions in its power as shall
reasonably be requested by the Third Lien Collateral Trustee (at the sole cost and expense of the Grantors) to transfer possession
or control of such Collateral or any such Account (in each case to the extent the Third Lien Collateral Trustee has a Lien on such
Collateral or Account after giving effect to any prior or concurrent releases of Liens) to the Third Lien Collateral Trustee for
the benefit of all Third Lien Secured Parties.

 

    	50

    	 

    

 

SECTION
5.02.         Deposit Accounts. (a) Prior to the Discharge of Priority
Lien Obligations, to the extent that any Account is under the control of the Priority Lien Agent at any time, the Priority Lien
Agent will act as gratuitous bailee for (i) the Second Lien Collateral Trustee for the purpose of perfecting the Liens of the Second
Lien Secured Parties and (ii) the Third Lien Collateral Trustee for the purpose of perfecting the Liens of the Third Lien Secured
Parties in such Accounts and the cash and other assets therein as provided in Section 3.01 (but will have no duty, responsibility
or obligation to the Second Lien Secured Parties or the Third Lien Secured Parties (including, without limitation, any duty, responsibility
or obligation as to the maintenance of such control, the effect of such arrangement or the establishment of such perfection) except
as set forth in the last sentence of this Section 5.02(a)). Unless the Second Liens on such Collateral shall have been or concurrently
are released, after the occurrence of Discharge of Priority Lien Obligations, the Priority Lien Agent shall, at the request of
the Second Lien Collateral Trustee, cooperate with the Grantors and the Second Lien Collateral Trustee (at the expense of the Grantors)
in permitting control of any other Accounts to be transferred to the Second Lien Collateral Trustee (or for other arrangements
with respect to each such Accounts satisfactory to the Second Lien Collateral Trustee to be made).

 

(b)          Following
the Discharge of Priority Lien Obligations but prior to the Discharge of Second Lien Obligations, to the extent that any Account
is under the control of the Second Lien Collateral Trustee at any time, the Second Lien Collateral Trustee will act as gratuitous
bailee for the Third Lien Collateral Trustee for the purpose of perfecting the Liens of the Third Lien Secured Parties in such
Accounts and the cash and other assets therein as provided in Section 3.01 (but will have no duty, responsibility or obligation
to the Third Lien Secured Parties (including, without limitation, any duty, responsibility or obligation as to the maintenance
of such control, the effect of such arrangement or the establishment of such perfection) except as set forth in the last sentence
of this Section 5.02(b)). Unless the Third Liens on such Collateral shall have been or concurrently are released, after the occurrence
of Discharge of Second Lien Obligations, the Second Lien Collateral Trustee shall, at the request of the Third Lien Collateral
Trustee, cooperate with the Grantors and the Third Lien Collateral Trustee (at the expense of the Grantors) in permitting control
of any other Accounts to be transferred to the Third Lien Collateral Trustee (or for other arrangements with respect to each such
Accounts satisfactory to the Third Lien Collateral Trustee to be made).

 

Article
VI

Application of Proceeds; Determination of Amounts

 

SECTION
6.01.         Application of Proceeds. (a) Prior to the Discharge of
Priority Obligations, and regardless of whether an Insolvency or Liquidation Proceeding has been commenced, Collateral or Proceeds
received in connection with the enforcement or exercise of any rights or remedies with respect to any portion of the Collateral
will be applied:

 

(i)         first,
to the payment in full in cash of all Priority Lien Obligations that are not Excess Priority Lien Obligations,

 

    	51

    	 

    

 

(ii)         second,
to the payment in full in cash of all Second Lien Obligations,

 

(iii)        third,
to the payment in full in cash of all Third Lien Obligations,

 

(iv)        fourth,
to the payment in full in cash of all Excess Priority Lien Obligations, and

 

(v)         fifth,
to the Borrowers or as otherwise required by applicable law.

 

(b)          Following
the Discharge of Priority Obligations but prior to the Discharge of Second Lien Obligations, and regardless of whether an Insolvency
or Liquidation Proceeding has been commenced, Collateral or Proceeds received in connection with the enforcement or exercise of
any rights or remedies with respect to any portion of the Collateral will be applied:

 

(i)          first,
to the payment in full of all Second Lien Obligations,

 

(ii)         second,
to the payment in full of all Third Lien Obligations, and

 

(iii)        third,
to the Borrowers or as otherwise required by applicable law.

 

SECTION
6.02.         Determination of Amounts. Whenever a Secured Debt Representative
shall be required, in connection with the exercise of its rights or the performance of its obligations hereunder, to determine
the existence or amount of any Priority Lien Obligations (or the existence of any commitment to extend credit that would constitute
Priority Lien Obligations), Second Lien Obligations or Third Lien Obligations, or the existence of any Lien securing any such obligations,
or the Collateral subject to any such Lien, it may request that such information be furnished to it in writing by the other Secured
Debt Representatives and shall be entitled to make such determination on the basis of the information so furnished; provided,
however, that if a Secured Debt Representative shall fail or refuse reasonably promptly to provide the requested information,
the requesting Secured Debt Representative shall be entitled to make any such determination by such method as it may, in the exercise
of its good faith judgment, determine, including by reliance upon a certificate of the Borrowers. Each Secured Debt Representative
may rely conclusively, and shall be fully protected in so relying, on any determination made by it in accordance with the provisions
of the preceding sentence (or as otherwise directed by a court of competent jurisdiction) and shall have no liability to the Borrowers
or any of their subsidiaries, any Secured Party or any other Person as a result of such determination.

 

Article
VII

No Reliance; No Liability; Obligations Absolute; Consent of Grantors; Etc.

 

SECTION
7.01.         No Reliance; Information. The Priority Lien Secured Parties,
the Second Lien Secured Parties and the Third Lien Secured Parties shall have no duty to disclose to any Third Lien Secured Party,
Second Lien Secured Party or to any Priority Lien Secured Party, as the case may be, any information relating to EXXI, any other
Borrower or any of the other Grantors, or any other circumstance bearing upon the risk of non-payment of any of the Priority Lien
Obligations, the Second Lien Obligations or the Third Lien Obligations, as the case may be, that is known or becomes known to any
of them or any of their Affiliates. In the event any Priority Lien Secured Party, any Second Lien Secured Party or any Third Lien
Secured Party, in its sole discretion, undertakes at any time or from time to time to provide any such information to, any Third
Lien Secured Party, any Second Lien Secured Party or any Priority Lien Secured Party, as the case may be, it shall be under no
obligation (i) to make, and shall not make or be deemed to have made, any express or implied representation or warranty, including
with respect to the accuracy, completeness, truthfulness or validity of the information so provided, (ii) to provide any additional
information or to provide any such information on any subsequent occasion or (iii) to undertake any investigation.

 

    	52

    	 

    

 

SECTION
7.02.         No Warranties or Liability. (a) The Priority Lien Agent,
for itself and on behalf of the other Priority Lien Secured Parties, acknowledges and agrees that, except for the representations
and warranties set forth in Article VIII, (i) neither the Second Lien Collateral Trustee nor any other Second Lien Secured Party
has made any express or implied representation or warranty, including with respect to the execution, validity, legality, completeness,
collectability or enforceability of any of the Second Lien Documents, the ownership of any Collateral or the perfection or priority
of any Liens thereon and (ii) neither the Third Lien Collateral Trustee nor any other Third Lien Secured Party has made any express
or implied representation or warranty, including with respect to the execution, validity, legality, completeness, collectability
or enforceability of any of the Third Lien Documents, the ownership of any Collateral or the perfection or priority of any Liens
thereon. The Second Lien Collateral Trustee, for itself and on behalf of the other Second Lien Secured Parties, acknowledges and
agrees that, except for the representations and warranties set forth in Article VIII, (i) neither the Priority Lien Agent nor any
other Priority Lien Secured Party has made any express or implied representation or warranty, including with respect to the execution,
validity, legality, completeness, collectability or enforceability of any of the Priority Lien Documents, the ownership of any
Collateral or the perfection or priority of any Liens thereon and (ii) neither the Third Lien Collateral Trustee nor any other
Third Lien Secured Party has made any express or implied representation or warranty, including with respect to the execution, validity,
legality, completeness, collectability or enforceability of any of the Third Lien Documents, the ownership of any Collateral or
the perfection or priority of any Liens thereon. The Third Lien Collateral Trustee, for itself and on behalf of the other Third
Lien Secured Parties, acknowledges and agrees that, except for the representations and warranties set forth in Article VIII, (i)
neither the Priority Lien Agent nor any other Priority Lien Secured Party has made any express or implied representation or warranty,
including with respect to the execution, validity, legality, completeness, collectability or enforceability of any of the Priority
Lien Documents, the ownership of any Collateral or the perfection or priority of any Liens thereon and (ii) neither the Second
Lien Collateral Trustee nor any other Second Lien Secured Party has made any express or implied representation or warranty, including
with respect to the execution, validity, legality, completeness, collectability or enforceability of any of the Second Lien Documents,
the ownership of any Collateral or the perfection or priority of any Liens thereon.

 

(b)          The
Priority Lien Agent and the other Priority Lien Secured Parties shall have no express or implied duty to the Second Lien Collateral
Trustee, any other Second Lien Secured Party, the Third Lien Collateral Trustee or any other Third Lien Secured Party, the Second
Lien Collateral Trustee and the other Second Lien Secured Parties shall have no express or implied duty to the Priority Lien Agent,
any other Priority Lien Secured Party, the Third Lien Collateral Trustee or any other Third Lien Secured Party, and the Third Lien
Collateral Trustee shall have no express or implied duty to the Priority Lien Agent, any other Priority Lien Secured Party, the
Second Lien Collateral Trustee or any other Second Lien Secured Party, to act or refrain from acting in a manner which allows,
or results in, the occurrence or continuance of a default or an event of default under any Priority Lien Document, any Second Lien
Document and any Third Lien Document (other than, in each case, this Agreement), regardless of any knowledge thereof which they
may have or be charged with.

 

    	53

    	 

    

 

(c)          Each
of the Second Lien Collateral Trustee, for itself and on behalf of each other Second Lien Secured Party and the Third Lien Collateral
Trustee, for itself and on behalf of each other Third Lien Secured Party, hereby waives any claim that may be had against the Priority
Lien Agent or any other Priority Lien Secured Party arising out of any actions which the Priority Lien Agent or such Priority Lien
Secured Party takes or omits to take (including actions with respect to the creation, perfection or continuation of Liens on any
Collateral, actions with respect to the foreclosure upon, sale, release or depreciation of, or failure to realize upon, any Collateral,
and actions with respect to the collection of any claim for all or only part of the Priority Lien Obligations from any account
debtor, guarantor or any other party) in accordance with this Agreement and the Priority Lien Documents or the valuation, use,
protection or release of any security for such Priority Lien Obligations. The Third Lien Collateral Trustee, for itself and on
behalf each other Third Lien Secured Party, hereby waives any claim that may be had against the Second Lien Collateral Trustee
or any other Second Lien Secured Party arising out of any actions which the Second Lien Collateral Trustee or such Second Lien
Secured Party takes or omits to take following the Discharge of Priority Lien Obligations but prior to the Discharge of Second
Lien Obligations (including actions with respect to the creation, perfection or continuation of Liens on any Collateral, actions
with respect to the foreclosure upon, sale, release or depreciation of, or failure to realize upon, any Collateral, and actions
with respect to the collection of any claim for all or only part of the Second Lien Obligations from any account debtor, guarantor
or any other party) in accordance with this Agreement and the Second Lien Documents or the valuation, use, protection or release
of any security for such Second Lien Obligations.

 

SECTION
7.03.         Obligations Absolute. The Lien priorities provided for
herein and the respective rights, interests, agreements and obligations hereunder of the Priority Lien Agent and the other Priority
Lien Secured Parties, the Second Lien Collateral Trustee and the other Second Lien Secured Parties, and the Third Lien Collateral
Trustee and the other Third Lien Secured Parties shall remain in full force and effect irrespective of:

 

(a)          any
lack of validity or enforceability of any Secured Debt Document;

 

(b)          any
change in the time, place or manner of payment of, or in any other term of (including the Replacing of), all or any portion of
the Priority Lien Obligations, it being specifically acknowledged that a portion of the Priority Lien Obligations consists or may
consist of Indebtedness that is revolving in nature, and the amount thereof that may be outstanding at any time or from time to
time may be increased or reduced and subsequently reborrowed;

 

(c)          any
amendment, waiver or other modification, whether by course of conduct or otherwise, of any Secured Debt Document;

 

    	54

    	 

    

 

(d)          the
securing of any Priority Lien Obligations, Second Lien Obligations or Third Lien Obligations with any additional collateral or
guarantees, or any exchange, release, voiding, avoidance or non perfection of any security interest in any Collateral or any other
collateral or any release of any guarantee securing any Priority Lien Obligations, Second Lien Obligations or Third Lien Obligations;

 

(e)          the
commencement of any Insolvency or Liquidation Proceeding in respect of EXXI or any other Grantor; or

 

(f)          any
other circumstances that otherwise might constitute a defense available to, or a discharge of, EXXI or any other Grantor in respect
of the Priority Lien Obligations, the Second Lien Obligations or the Third Lien Obligations.

 

SECTION
7.04.         Grantors Consent. Each Grantor hereby consents to the
provisions of this Agreement and the intercreditor arrangements provided for herein and agrees that the obligations of the Grantors
under the Secured Debt Documents will in no way be diminished or otherwise affected by such provisions or arrangements (except
as expressly provided herein).

 

Article
VIII

Representations and Warranties

 

SECTION
8.01.         Representations and Warranties of Each Party. Each party
hereto represents and warrants to the other parties hereto as follows:

 

(a)          Such
party is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has all
requisite power and authority to enter into and perform its obligations under this Agreement.

 

(b)          This
Agreement has been duly executed and delivered by such party.

 

(c)          The
execution, delivery and performance by such party of this Agreement (i) do not require any consent or approval of, registration
or filing with or any other action by any Governmental Authority of which the failure to obtain could reasonably be expected to
have a Material Adverse Effect (as defined in the Priority Credit Agreement), (ii) will not violate any applicable law or regulation
or any order of any Governmental Authority or any indenture, agreement or other instrument binding upon such party which could
reasonably be expected to have a Material Adverse Effect and (iii) will not violate the charter, by-laws or other organizational
documents of such party.

 

SECTION
8.02.         Representations and Warranties of Each Representative.
Each of the Priority Lien Agent, the Second Lien Collateral Trustee and the Third Lien Collateral Trustee represents and warrants
to the other parties hereto that it is authorized under the Priority Credit Agreement, the Second Lien Collateral Trust Agreement
and the Third Lien Collateral Trust Agreement, as the case may be, to enter into this Agreement.

 

    	55

    	 

    

 

Article
IX

Miscellaneous

 

SECTION
9.01.         Notices. All notices and other communications provided
for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail
or sent by telecopy, as follows:

 

		(a)	if to the Original Priority Lien Agent, to it at:

 

	 	600 Washington Boulevard
	 	Stanford, Connecticut 06901
	 	Fax: (203) 873-3569
	 	Attention: Soulaf Kassisse
	 	 
	 	with a copy to:
	 	 
	 	600 Travis Street
	 	Suite 6500
	 	Houston, Texas 77002
	 	Fax: (203) 873-3056
	 	Attention: Meredith Mann

 

		(b)	if to the Original Second Lien Collateral Trustee, to it
at:

 

U.S. Bank National Association

5555 San Felipe Street, 11th Floor

Houston, Texas 77056

Fax: (713) 235-9213

 

with a copy to:

 

Charles J. McGuire

McGuire, Craddock & Strother, P.C.

2501 N. Harwood Street, Suite 1800

Dallas, Texas 75201

Fax: (214) 954-6868; and

 

(c)          if
to any other Secured Debt Representative, to such address as specified in the Priority Confirmation Joinder.

 

Any party hereto may change its address or
facsimile number for notices and other communications hereunder by notice to the other parties hereto. All notices and other communications
given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on the date of
receipt (if a business day) and on the next business day thereafter (in all other cases) if delivered by hand or overnight courier
service or sent by telecopy or on the date five business days after dispatch by certified or registered mail if mailed, in each
case delivered, sent or mailed (properly addressed) to such party as provided in this Section 9.01 or in accordance with the latest
unrevoked direction from such party given in accordance with this Section 9.01. As agreed to in writing among EXXI, the Priority
Lien Agent, the Second Lien Collateral Trustee and the Third Lien Collateral Trustee from time to time, notices and other communications
may also be delivered by e-mail to the e-mail address of a representative of the applicable person provided from time to time by
such person.

 

    	56

    	 

    

 

SECTION
9.02.         Waivers; Amendment. (a) No failure or delay on the part
of any party hereto in exercising any right or power hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any
other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the parties hereto are
cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement
or consent to any departure by any party therefrom shall in any event be effective unless the same shall be permitted by paragraph
(b) of this Section 9.02, and then such waiver or consent shall be effective only in the specific instance and for the purpose
for which given. No notice or demand on any party hereto in any case shall entitle such party to any other or further notice or
demand in similar or other circumstances.

 

(b)          Neither
this Agreement nor any provision hereof may be terminated, waived, amended or modified except pursuant to an agreement or agreements
in writing entered into by each Secured Debt Representative; provided, however, that this Agreement may be amended from
time to time as provided in Section 4.04. Any amendment of this Agreement that is proposed to be effected without the consent of
a Secured Debt Representative as permitted by the proviso to the preceding sentence shall be submitted to such Secured Debt Representative
for its review at least 5 business days prior to the proposed effectiveness of such amendment.

 

SECTION
9.03.         Actions Upon Breach; Specific Performance. (a) (i) Prior
to the Discharge of Priority Lien Obligations, if any Second Lien Secured Party or Third Lien Secured Party, contrary to this Agreement,
commences or participates in any action or proceeding against any Grantor or the Collateral, such Grantor, with the prior written
consent of the Priority Lien Agent, may interpose as a defense or dilatory plea the making of this Agreement, and any Priority
Lien Secured Party may intervene and interpose such defense or plea in its or their name or in the name of such Grantor and (ii)
following the Discharge of Priority Lien Obligations but prior to the Discharge of Second Lien Obligations, if any Third Lien Secured
Party, contrary to this Agreement, commences or participates in any action or proceeding against any Grantor or the Collateral,
such Grantor, with the prior written consent of the Second Lien Collateral Trustee, may interpose as a defense or dilatory plea
the making of this Agreement, and any Second Lien Secured Party may intervene and interpose such defense or plea in its or their
name or in the name of such Grantor.

 

    	57

    	 

    

 

(b)          (i)
Prior to the Discharge of Priority Lien Obligations, should any Second Lien Secured Party or Third Lien Secured Party, contrary
to this Agreement, in any way take, attempt to or threaten to take any action with respect to the Collateral (including any attempt
to realize upon or enforce any remedy with respect to this Agreement), or take any other action in violation of this Agreement
or fail to take any action required by this Agreement, the Priority Lien Agent or any other Priority Lien Secured Party (in its
own name or in the name of the relevant Grantor) or the relevant Grantor, with the prior written consent of the Priority Lien Agent,
(A) may obtain relief against such Second Lien Secured Party or Third Lien Secured Party, as applicable, by injunction, specific
performance and/or other appropriate equitable relief, it being understood and agreed by each of the Second Lien Collateral Trustee
on behalf of each Second Lien Secured Party and the Third Lien Collateral Trustee on behalf of each Third Lien Secured Party that
(x) the Priority Lien Secured Parties’ damages from its actions may at that time be difficult to ascertain and may be irreparable,
and (y) each Second Lien Secured Party and Third Lien Secured Party waives any defense that the Grantors and/or the Priority Lien
Secured Parties cannot demonstrate damage and/or be made whole by the awarding of damages, and (B) shall be entitled to damages,
as well as reimbursement for all reasonable and documented costs and expenses incurred in connection with any action to enforce
the provisions of this Agreement and (ii) following the Discharge of Priority Lien Obligations but prior to the Discharge of Second
Lien Obligations, should any Third Lien Secured Party, contrary to this Agreement, in any way take, attempt to or threaten to take
any action with respect to the Collateral (including any attempt to realize upon or enforce any remedy with respect to this Agreement),
or take any other action in violation of this Agreement or fail to take any action required by this Agreement, the Second Lien
Collateral Trustee or any other Second Lien Secured Party (in its own name or in the name of the relevant Grantor) or the relevant
Grantor, with the prior written consent of the Second Lien Collateral Trustee, (A) may obtain relief against such Third Lien Secured
Party by injunction, specific performance and/or other appropriate equitable relief, it being understood and agreed by the Third
Lien Collateral Trustee on behalf of each Third Lien Secured Party that (x) the Second Lien Secured Parties damages from its actions
may at that time be difficult to ascertain and may be irreparable, and (y) each Third Lien Secured Party waives any defense that
the Grantors and/or the Second Lien Secured Parties cannot demonstrate damage and/or be made whole by the awarding of damages,
and (B) shall be entitled to damages, as well as reimbursement for all reasonable and documented costs and expenses incurred in
connection with any action to enforce the provisions of this Agreement.

 

SECTION
9.04.         Parties in Interest. This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and assigns, as well as the other Secured Parties,
all of whom are intended to be bound by, and to be third party beneficiaries of, this Agreement.

 

SECTION
9.05.         Survival of Agreement. All covenants, agreements, representations
and warranties made by any party in this Agreement shall be considered to have been relied upon by the other parties hereto and
shall survive the execution and delivery of this Agreement.

 

SECTION
9.06.         Counterparts. This Agreement may be executed in counterparts,
each of which shall constitute an original but all of which when taken together shall constitute a single contract. Delivery of
an executed signature page to this Agreement by facsimile transmission shall be as effective as delivery of a manually signed counterpart
of this Agreement.

 

SECTION
9.07.         Severability. Any provision of this Agreement held to
be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity,
illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof;
and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.
The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions
the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 

    	58

    	 

    

 

SECTION
9.08.         Governing Law; Jurisdiction; Consent to Service of Process.
(a) THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAW PRINCIPLES
(BUT GIVING EFFECT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATION LAW).

 

(b)          Each
party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the
Supreme Court of the State of New York sitting in New York County and of the United States District Court .of the Southern District
of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement,
or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees
that all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the
extent permitted by law, in such federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement shall affect any right that any party hereto may otherwise have to bring any action or proceeding relating
to this Agreement in the courts of any jurisdiction.

 

(c)          Each
party hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection
which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this
Agreement in any court referred to in paragraph (b) of this Section 9.08. Each of the parties hereto hereby irrevocably waives,
to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in
any such court.

 

(d)          Each
party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 9.01. Nothing
in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.

 

SECTION
9.09.         WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY
OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

    	59

    	 

    

 

SECTION
9.10.         Headings. Article, Section and Annex headings used herein
are for convenience of reference only, are not part of this Agreement and are not to affect the construction of, or to be taken
into consideration in interpreting, this Agreement.

 

SECTION
9.11.         Conflicts. In the event of any conflict or inconsistency
between the provisions of this Agreement and the provisions of any Secured Debt Documents, the provisions of this Agreement shall
control; provided, however, that if any of the provisions of the Second Lien Security Documents or Third Lien Security Documents
limit, qualify or conflict with the duties imposed by the provisions of the TIA, in each case, the TIA shall control.

 

SECTION
9.12.         Provisions Solely to Define Relative Rights. The provisions
of this Agreement are and are intended solely for the purpose of defining the distinct and separate relative rights of the Priority
Lien Secured Parties, the Second Lien Secured Parties and the Third Lien Secured Parties. None of the Borrowers, any other Grantor
or any other creditor thereof shall have any rights or obligations hereunder, except as expressly provided in this Agreement (provided
that nothing in this Agreement (other than Sections 4.01, 4.02, 4.04, or 4.05) is intended to or will amend, waive or otherwise
modify the provisions of the Priority Credit Agreement, the Second Lien Indenture or the Third Lien Indenture, as applicable),
and except as expressly provided in this Agreement neither the Borrowers nor any other Grantor may rely on the terms hereof (other
than Sections 4.01, 4.02, 4.04, 4.05, Article VII and Article IX). Nothing in this Agreement is intended to or shall impair the
obligations of the Borrowers or any other Grantor, which are absolute and unconditional, to pay the Obligations under the Secured
Debt Documents as and when the same shall become due and payable in accordance with their terms. Notwithstanding anything to the
contrary herein or in any Secured Debt Document, the Grantors shall not be required to act or refrain from acting pursuant to this
Agreement, any Priority Lien Document, any Second Lien Document or any Third Lien Document with respect to any Collateral in any
manner that would cause a default under any Priority Lien Document.

 

SECTION
9.13.         Certain Terms Concerning the Second Lien Collateral Trustee
and the Third Lien Collateral Trustee. (a) The Second Lien Collateral Trustee is executing and delivering this Agreement solely
in its capacity as such and pursuant to direction set forth in the Second Lien Collateral Trust Agreement; and in so doing, the
Second Lien Collateral Trustee shall not be responsible for the terms or sufficiency of this Agreement for any purpose. The Second
Lien Collateral Trustee shall have no duties or obligations under or pursuant to this Agreement other than such duties and obligations
as may be expressly set forth in this Agreement as duties and obligations on its part to be performed or observed. In entering
into this Agreement, or in taking (or forbearing from) any action under or pursuant to the Agreement, the Second Lien Collateral
Trustee shall have and be protected by all of the rights, immunities, indemnities and other protections granted to it under the
Second Lien Indenture and the other Second Lien Documents (including without limitation Article 5 and Section 7.8 of the Second
Lien Collateral Trust Agreement).

 

(b)          The
Third Lien Collateral Trustee is executing and delivering this Agreement solely in its capacity as such and pursuant to direction
set forth in the Third Lien Collateral Trust Agreement; and in so doing, the Third Lien Collateral Trustee shall not be responsible
for the terms or sufficiency of this Agreement for any purpose. The Third Lien Collateral Trustee shall have no duties or obligations
under or pursuant to this Agreement other than such duties and obligations as may be expressly set forth in this Agreement as duties
and obligations on its part to be performed or observed. In entering into this Agreement, or in taking (or forbearing from) any
action under or pursuant to the Agreement, the Third Lien Collateral Trustee shall have and be protected by all of the rights,
immunities, indemnities and other protections granted to it under any Third Lien Indenture and the Third Lien Documents.

 

    	60

    	 

    

 

SECTION
9.14.         Certain Terms Concerning the Priority Lien Agent, the Second
Lien Collateral Trustee and the Third Lien Collateral Trustee. None of the Priority Lien Agent, the Second Lien Collateral
Trustee or the Third Lien Collateral Trustee shall have any liability or responsibility for the actions or omissions of any other
Secured Party, or for any other Secured Party’s compliance with (or failure to comply with) the terms of this Agreement.
None of the Priority Lien Agent, the Second Lien Collateral Trustee or the Third Lien Collateral Trustee shall have individual
liability to any Person if it shall mistakenly pay over or distribute to any Secured Party (or the Borrowers) any amounts in violation
of the terms of this Agreement, so long as the Priority Lien Agent, the Second Lien Collateral Trustee or the Third Lien Collateral
Trustee, as the case may be, is acting in good faith. Each party hereto hereby acknowledges and agrees that each of the Priority
Lien Agent, the Second Lien Collateral Trustee and the Third Lien Collateral Trustee is entering into this Agreement solely in
its capacity under the Priority Lien Documents, the Second Lien Documents and the Third Lien Documents, respectively, and not in
its individual capacity. The Priority Lien Agent shall not be deemed to owe any fiduciary duty to (i) the Second Lien Collateral
Trustee or any other Second Lien Representative or any other Second Lien Secured Party or (ii) the Third Lien Collateral Trustee
or any other Third Lien Representative or any other Third Lien Secured Party; the Second Lien Collateral Trustee shall not be deemed
to owe any fiduciary duty to (i) the Priority Lien Agent or any other Priority Lien Secured Party or (ii) the Third Lien Collateral
Trustee or any other Third Lien Representative or any other Third Lien Secured Party; and the Third Lien Collateral Trustee shall
not be deemed to owe any fiduciary duty to (i) the Priority Lien Agent or any other Priority Lien Secured Party or (ii) the Second
Lien Collateral Trustee or any other Second Lien Representative or any other Second Lien Secured Party.

 

SECTION
9.15.         Authorization of Secured Agents. By accepting the benefits
of this Agreement and the other Priority Lien Security Documents, each Priority Lien Secured Party authorizes the Priority Lien
Agent to enter into this Agreement and to act on its behalf as collateral agent hereunder and in connection herewith. By accepting
the benefits of this Agreement and the other Second Lien Security Documents, each Second Lien Secured Party authorizes the Second
Lien Collateral Trustee to enter into this Agreement and to act on its behalf as collateral agent hereunder and in connection herewith.
By accepting the benefits of this Agreement and the other Third Lien Security Documents, each Third Lien Secured Party authorizes
the Third Lien Collateral Trustee to enter into this Agreement and to act on its behalf as collateral agent hereunder and in connection
herewith.

 

SECTION
9.16.         Further Assurances. Each of the Priority Lien Agent, for
itself and on behalf of the other Priority Lien Secured Party, the Second Lien Collateral Trustee, for itself and on behalf of
the other Second Lien Secured Parties, the Third Lien Collateral Trustee, for itself and on behalf of the other Third Lien Secured
Parties, and each Grantor party hereto, for itself and on behalf of its subsidiaries, agrees that it will execute, or will cause
to be executed, any and all further documents, agreements and instruments, and take all such further actions, as may be required
under any applicable law, or which the Priority Lien Agent, the Second Lien Collateral Trustee or the Third Lien Collateral Trustee
may reasonably request, to effectuate the terms of this Agreement, including the relative Lien priorities provided for herein.

 

    	61

    	 

    

 

SECTION
9.17.         Relationship of Secured Parties. Nothing set forth herein
shall create or evidence a joint venture, partnership or an agency or fiduciary relationship among the Secured Parties. None of
the Secured Parties nor any of their respective directors, officers, agents or employees shall be responsible to any other Secured
Party or to any other Person for any Grantor’s solvency, financial condition or ability to repay the Priority Lien Obligations,
the Second Lien Obligations or the Third Lien Obligations, or for statements of any Grantor, oral or written, or for the validity,
sufficiency or enforceability of the Priority Lien Documents, the Second Lien Documents or the Third Lien Documents, or any security
interests granted by any Grantor to any Secured Party in connection therewith. Each Secured Party has entered into its respective
financing agreements with the Grantors based upon its own independent investigation, and none of the Priority Lien Agent, the Second
Lien Collateral Trustee or the Third Lien Collateral Trustee makes any warranty or representation to the other Secured Debt Representatives
or the Secured Parties for which it acts as agent nor does it rely upon any representation of the other agents or the Secured Parties
for which it acts as agent with respect to matters identified or referred to in this Agreement.

 

SECTION
9.18.         Third Lien Provisions. Notwithstanding any of the foregoing
provisions, until such time as the Third Lien Collateral Trustee has, pursuant to the terms hereof (including but not limited Section
4.04(c)), entered into, and, for itself and on behalf of the Third Lien Secured Parties, agreed to be bound by the terms of, this
Agreement and executed a Priority Joinder Confirmation, the provisions of this Agreement relating to the Third Lien Obligations
(including, but not limited to, the definitions of “Additional Third Lien Debt Facility”, “Additional
Third Lien Documents”, “Additional Third Lien Obligations”, “Additional Third Lien Secured
Parties”, “Additional Third Lien Security Documents”, “Third Lien”, “Third
Lien Cap”, “Third Lien Collateral”, “Third Lien Collateral Trust Agreement”, “Third
Lien Collateral Trustee”, “Third Lien Debt”, “Third Lien Documents”, “Third
Lien First Standstill Period”, “Third Lien Indenture”, “Third Lien Indenture Notes”,
“Third Lien Obligations”, “Third Lien Representative”, “Third Lien Second Standstill
Period”, “Third Lien Secured Parties”, “Third Lien Security Documents” and “Third
Lien Substitute Facility” and provisions regarding priority, enforcement actions, Standstill Periods, release of Liens,
Insolvency or Liquidation Proceedings, reinstatement, amendments to Third Lien Documents and application of proceeds) shall not
be operative.

 

[Remainder of this page intentionally left blank]

 

    	62

    	 

    

 

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

 

	 	THE ROYAL BANK OF SCOTLAND plc,	 
	 	as Priority Lien Agent	 
	 	 	 	 
	 	By	/s/ James L. Moyes 	 
	 	 	James L. Moyes	 
	 	 	Authorised Signatory 	 

 

Signature page to Intercreditor Agreement

 

    	 

    	 

    

 

 

	 	U.S. BANK NATIONAL ASSOCIATION,	 
	 	as Second Lien Collateral Trustee	 
	 	 	 	 
	 	By:	/s/ Steven A. Finklea	 
	 	 	Steven A. Finklea	 
	 	 	Vice President 	 

 

Signature page to Intercreditor Agreement

 

    	 

    	 

    

 

	 	ACKNOWLEDGED AND AGREED AS OF THE DATE FIRST ABOVE WRITTEN:
	 	 
	 	ENERGY XXI GULF COAST, INC.
	 	 	 
	 	By:	/s/ Antonio de Pinho
	 	 	Name: Antonio de Pinho
	 	 	Title: President
	 	 	 
	 	ENERGY XXI GOM, LLC
	 	 	 
	 	By:	/s/ Antonio de Pinho
	 	 	Name: Antonio de Pinho
	 	 	Title: President
	 	 	 
	 	ENERGY XXI TEXAS ONSHORE, LLC
	 	 	 
	 	By:	/s/ Antonio de Pinho
	 	 	Name: Antonio de Pinho
	 	 	Title: President
	 	 	 
	 	ENERGY XXI ONSHORE, LLC
	 	 	 
	 	By:	/s/ Antonio de Pinho
	 	 	Name: Antonio de Pinho
	 	 	Title: President
	 	 	 
	 	ENERGY XXI PIPELINE, LLC
	 	 	 
	 	By:	/s/ Antonio de Pinho
	 	 	Name: Antonio de Pinho
	 	 	Title: President

 

Signature page to Intercreditor Agreement

 

    	 

    	 

    

 

	 	ENERGY XXI LEASEHOLD, LLC
	 	 	 
	 	By:	/s/ Antonio de Pinho
	 	 	Name: Antonio de Pinho
	 	 	Title: President
	 	 	 
	 	ENERGY XXI PIPELINE II, LLC
	 	 	 
	 	By:	/s/ Antonio de Pinho
	 	 	Name: Antonio de Pinho
	 	 	Title: President
	 	 	 
	 	MS ONSHORE, LLC
	 	 	 
	 	By:	/s/ Antonio de Pinho
	 	 	Name: Antonio de Pinho
	 	 	Title: President
	 	 	 
	 	EPL OIL & GAS, INC.
	 	 	 
	 	By:	/s/ Antonio de Pinho
	 	 	Name: Antonio de Pinho
	 	 	Title: President
	 	 	 
	 	EPL PIPELINE, L.L.C.
	 	 	 
	 	By:	/s/ Antonio de Pinho
	 	 	Name: Antonio de Pinho
	 	 	Title: President

 

Signature page to Intercreditor Agreement

 

    	 

    	 

    

 

	 	NIGHTHAWK, L.L.C.
	 	 	 
	 	By:  	/s/ Antonio de Pinho
	 	 	Name: Antonio de Pinho
	 	 	Title: President
	 	 	 
	 	EPL OF LOUISIANA, L.L.C.
	 	 	 
	 	By:  	/s/ Antonio de Pinho
	 	 	Name: Antonio de Pinho
	 	 	Title: President
	 	 	 
	 	DELAWARE EPL OF TEXAS, LLC
	 	 	 
	 	By:  	/s/ Antonio de Pinho
	 	 	Name: Antonio de Pinho
	 	 	Title: President
	 	 	 
	 	ANGLO-SUISSE OFFSHORE PIPELINE
	 	PARTNERS, LLC
	 	 	 
	 	By:  	/s/ Antonio de Pinho
	 	 	Name: Antonio de Pinho
	 	 	Title: President
	 	 	 
	 	EPL PIONEER HOUSTON, INC.
	 	 	 
	 	By:  	/s/ Antonio de Pinho
	 	 	Name: Antonio de Pinho
	 	 	Title: President

 

Signature page to Intercreditor Agreement

 

    	 

    	 

    

 

	 	ENERGY PARTNERS, LTD., LLC
	 	 	 
	 	By:  	/s/ Antonio de Pinho
	 	 	Name: Antonio de Pinho
	 	 	Title: President
	 	 	 
	 	ACKNOWLEDGED AND AGREED AS OF THE DATE FIRST ABOVE WRITTEN IN ITS CAPACITY AS GUARANTOR UNDER ITS LIMITED RECOURSE GUARANTY AND GRANTOR UNDER ITS PLEDGE AGREEMENT AND IRREVOCABLE PROXY:
	 	 	 
	 	ENERGY XXI USA, INC.
	 	 	 
	 	By:  	/s/ Antonio de Pinho
	 	 	Name: Antonio de Pinho
	 	 	Title: President

 

Signature page to Intercreditor Agreement

 

    	 

    	 

    

 

 

ANNEX I

Provision for the Second Lien Indenture,
any Additional Second Lien Debt Facility, the Second Lien Documents, the Initial Third Lien Debt Facility, any Additional Third
Lien Debt Facility and the Third Lien Documents 

 

Reference is made to the Intercreditor Agreement,
dated as of March 12, 2015, between THE ROYAL BANK OF SCOTLAND plc, as Priority Lien Agent (as defined therein), and U.S. BANK
NATIONAL ASSOCIATION, as Second Lien Collateral Trustee (as defined therein) (the “Intercreditor Agreement”).
Each holder of [any Additional Second Lien Obligations][Initial Third Lien Obligations][Additional Third Lien Obligations], by
its acceptance of such [Additional Second Lien Obligations][Initial Third Lien Obligations][Additional Third Lien Obligations]
(a) consents to the subordination of Liens provided for in the Intercreditor Agreement, (b) agrees that it will be bound by, and
will take no actions contrary to, the provisions of the Intercreditor Agreement and (c) authorizes and instructs the [Second/Third]
Lien Collateral Trustee on behalf of each [Second/Third] Lien Secured Party (as defined therein) to enter into the Intercreditor
Agreement as [Second/Third] Lien Collateral Trustee on behalf of such [Second/Third] Lien Secured Parties. The foregoing provisions
are intended as an inducement to the lenders under the Priority Credit Agreement to extend credit to the Borrowers and such lenders
are intended third party beneficiaries of such provisions and the provisions of the Intercreditor Agreement.

 

Provision for all Priority Lien Security
Documents, Indenture Second Lien Security Documents, any Additional Second Lien Security Documents, the Initial Third Lien Security
Documents and the Additional Third Lien Security Documents that Grant a Security Interest in Collateral

 

Reference is made to the Intercreditor Agreement,
dated as of March 12, 2015, between THE ROYAL BANK OF SCOTLAND plc, as Priority Lien Agent (as defined therein), and U.S. BANK
NATIONAL ASSOCIATION, as Second Lien Collateral Trustee (as defined therein) (the “Intercreditor Agreement”).
Each Person that is secured hereunder, by accepting the benefits of the security provided hereby, [(i) consents (or is deemed to
consent), to the subordination of Liens provided for in the Intercreditor Agreement,]1[(i)][(ii)] agrees (or is deemed
to agree) that it will be bound by, and will take no actions contrary to, the provisions of the Intercreditor Agreement, [(ii)][(iii)]
authorizes (or is deemed to authorize) the [Priority Lien Agent] [Second Lien Collateral Trustee] [Third Lien Collateral Trustee]
on behalf of such Person to enter into, and perform under, the Intercreditor Agreement and [(iii)][(iv)] acknowledges (or is deemed
to acknowledge) that a copy of the Intercreditor Agreement was delivered, or made available, to such Person.

 

Notwithstanding any other provision contained
herein, this Agreement, the Liens created hereby and the rights, remedies, duties and obligations provided for herein are subject
in all respects to the provisions of the Intercreditor Agreement and, to the extent provided therein, the applicable Security Documents
(as defined in the Intercreditor Agreement). In the event of any conflict or inconsistency between the provisions of this
Agreement and the Intercreditor Agreement, the provisions of the Intercreditor Agreement shall control.

 

 

1 This bracketed language would not apply to the Priority
Lien Security Documents.

 

    	Annex I

    	 

    

 

EXHIBIT A

to Intercreditor Agreement

 

[FORM OF]

PRIORITY CONFIRMATION JOINDER

 

Reference is made to the Intercreditor Agreement,
dated as of March 12, 2015 (as amended, supplemented, amended and restated or otherwise modified and in effect from time to time,
the “Intercreditor Agreement”) between THE ROYAL BANK OF SCOTLAND plc, as Priority Lien Agent for the
Priority Lien Secured Parties (as defined therein), and U.S. BANK NATIONAL ASSOCIATION, as Second Lien Collateral Trustee for the
Second Lien Secured Parties (as defined therein).

 

Capitalized terms used but not otherwise defined
herein shall have the meaning set forth in the Intercreditor Agreement. This Priority Confirmation Joinder is being executed and
delivered pursuant to Section 4.04 [a][b][c] of the Intercreditor Agreement as a condition precedent to the debt for which the
undersigned is acting as representative being entitled to the rights and obligations of being [Additional [Second/Third] Lien Obligations][Initial
third Lien Obligations] under the Intercreditor Agreement.

 

1.          Joinder.
The undersigned, [_______________], a [_______________], (the “New Representative”) as [trustee] [collateral
trustee] [administrative agent] [collateral agent] under that certain [describe applicable indenture, credit agreement or other
document governing the Additional Second or [Initial/Additional] Third Lien Obligations] hereby:

 

(a)          represents
that the New Representative has been authorized to become a party to the Intercreditor Agreement on behalf of the [Priority Lien
Secured Parties under a Priority Substitute Facility] [Indenture Second Lien Secured Parties under the Second Lien Substitute Facility]
[Additional Second Lien Secured Parties under the Additional Second Lien Debt Facility] [Initial Third Lien Secured Parties under
the Initial Third Lien Debt Facility] [Additional Third Lien Secured Parties under the Additional Third Lien Debt Facility] as
[a Priority Lien Agent under a Priority Substitute Facility] [a Second Lien Collateral Trustee under a Second Lien Substitute Facility]
[a Third Lien Collateral Trustee under a Third Lien Substitute Facility] [Secured Debt Representative] [Second Lien Representative]
[Third Lien Representative] under the Intercreditor Agreement for all purposes thereof on the terms set forth therein, and to be
bound by the terms of the Intercreditor Agreement as fully as if the undersigned had executed and delivered the Intercreditor Agreement
as of the date thereof; and

 

(b)          agrees
that its address for receiving notices pursuant to the Intercreditor Agreement shall be as follows:

 

[Address];

 

2.          Priority
Confirmation.

 

[Option A: to be used
if additional debt constitutes Priority Debt] The undersigned New Representative, on behalf of itself and each Priority
Lien Secured Party for which the undersigned is acting as [Administrative Agent] hereby agrees, for the benefit of all Secured
Parties and each future Secured Debt Representative, and as a condition to being treated as Priority Lien Obligations under the
Intercreditor Agreement, that the New Representative is bound by the provisions of the Intercreditor Agreement, including the provisions
relating to the ranking of Priority Liens. [or]

 

    	Exhibit A

    	 

    

 

[Option B: to be used
if additional debt constitutes a Series of Second Lien Debt] The undersigned New Representative, on behalf of itself
and each holder of Obligations in respect of the Series of Second Lien Debt [that constitutes Second Lien Substitute Facility]
for which the undersigned is acting as [Second Lien Representative][Second Lien Collateral Trustee] hereby agrees, for the benefit
of all Secured Parties and each future Secured Debt Representative, and as a condition to being treated as Secured Debt under the
Intercreditor Agreement, that:

 

(a)          all
Second Lien Obligations will be and are secured equally and ratably by all Second Liens at any time granted by the Borrowers or
any other Grantor to secure any Obligations in respect of such Series of Second Lien Debt, whether or not upon property otherwise
constituting Collateral for such Series of Second Lien Debt, and that all such Second Liens will be enforceable by the Second Lien
Collateral Trustee with respect to such Series of Second Lien Debt for the benefit of all Second Lien Secured Parties equally and
ratably;

 

(b)          the New Representative
and each holder of Obligations in respect of the Series of Second Lien Debt for which the undersigned is acting as [Second Lien
Representative] are bound by the provisions of the Intercreditor Agreement, including the provisions relating to the ranking
of Priority Liens, Second Liens and Third Liens and the order of application of proceeds from enforcement of Priority Liens, Second
Liens and Third Liens; and

 

(c)          the
New Representative and each holder of Obligations in respect of the Series of Second Lien Debt for which the undersigned is acting
as [Second Lien Representative] appoints the Second Lien Collateral Trustee and consents to the terms of the Intercreditor
Agreement and the performance by the Second Lien Collateral Trustee of, and directs the Second Lien Collateral Trustee to perform,
its obligations under the Intercreditor Agreement and the Second Lien Collateral Trust Agreement, together with all such powers
as are reasonably incidental thereto. [or]

 

[Option C: to be used
if additional debt constitutes a Series of Third Lien Debt] The undersigned New Representative, on behalf of itself
and each holder of Obligations in respect of the Series of Third Lien Debt [that constitutes Third Lien Substitute Facility] for
which the undersigned is acting as [Third Lien Representative][Third Lien Collateral Trustee] hereby agrees, for the benefit of
all Secured Parties and each future Secured Debt Representative, and as a condition to being treated as Secured Debt under the
Intercreditor Agreement, that:

 

(a)          all
Third Lien Obligations will be and are secured equally and ratably by all Third Liens at any time granted by the Borrowers or any
other Grantor to secure any Obligations in respect of such Series of Third Lien Debt, whether or not upon property otherwise constituting
Collateral for such Series of Third Lien Debt, and that all such Third Liens will be enforceable by the Third Lien Collateral Trustee
with respect to such Series of Third Lien Debt for the benefit of all Third Lien Secured Parties equally and ratably;

 

    	Exhibit A

    	 

    

 

(b)          the New Representative
and each holder of Obligations in respect of the Series of Third Lien Debt for which the undersigned is acting as [Third Lien
Representative][Third Lien Collateral Trustee] are bound by the provisions of the Intercreditor Agreement, including
the provisions relating to the ranking of Priority Liens, Second Liens and Third Liens and the order of application of proceeds
from enforcement of Priority Liens, Second Liens and Third Liens; and

 

[(c)          the
New Representative and each holder of Obligations in respect of the Series of Third Lien Debt for which the undersigned is acting
as [Third Lien Representative] appoints the Third Lien Collateral Trustee and consents to the terms of the Intercreditor
Agreement and the performance by the Third Lien Collateral Trustee of, and directs the Third Lien Collateral Trustee to perform,
its obligations under the Intercreditor Agreement and the Third Lien Collateral Trust Agreement, together with all such powers
as are reasonably incidental thereto.]2

 

3.          Full
Force and Effect of Intercreditor Agreement.  Except as expressly supplemented
hereby, the Intercreditor Agreement shall remain in full force and effect.

 

4.          Governing
Law and Miscellaneous Provisions. The provisions of Article 9 of the Intercreditor Agreement will apply with like effect to
this Priority Confirmation Joinder.

 

5.          Expenses.
The Borrowers agree to reimburse each Secured Debt Representative for its reasonable out of pocket expenses in connection with
this Priority Confirmation Joinder, including the reasonable fees, other charges and disbursements of counsel.

 

 

2 Necessary only in the case of an incurrence of Additional
Third Lien Obligations.

 

    	Exhibit A

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Priority Confirmation Joinder to be executed by their respective officers or representatives as of [______________,
20____].

 

	 	[insert name of New Representative]
	 	 
	 	By:  _____________________________
	 	Name:
	 	Title:

 

The Priority Lien Agent hereby acknowledges
receipt of this Priority Confirmation Joinder [and agrees to act as Priority Lien Agent for the New Representative and the holders
of the Obligations represented thereby]:

 

	 	__________________________________,
	 	as Priority Lien Agent
	 	 
	 	By:  _____________________________
	 	Name:
	 	Title:

 

The Second Lien Collateral Trustee hereby acknowledges
receipt of this Priority Confirmation Joinder [and agrees to act as Second Lien Collateral Trustee for the New Representative and
the holders of the Obligations represented thereby]:

 

	 	__________________________________,
	 	as Second Lien Collateral Trustee
	 	 
	 	By:  _____________________________
	 	Name:
	 	Title:

 

[The Third Lien Collateral Trustee hereby acknowledges
receipt of this Priority Confirmation Joinder [and agrees to act as Third Lien Collateral Trustee for the New Representative and
the holders of the Obligations represented thereby]:

 

	 	__________________________________,
	 	as Third Lien Collateral Trustee
	 	 
	 	By:  _____________________________
	 	Name:
	 	Title:]

 

    	Exhibit A

    	 

    

 

	 	Acknowledged and Agreed to by: 	 
	 	 	 
	 	ENERGY XXI GULF COAST, INC.,	 
	 	as Borrower	 
	 	 	 
	 	By	 	 
	 	 	[Name]	 
	 	 	[Title]	 
	 	 	 
	 	EPL OIL & GAS, INC.,	 
	 	as Borrower	 
	 	 	 
	 	By	 	 
	 	 	[Name]	 
	 	 	[Title]	 

 

    	Exhibit A

    	 

    

 

EXHIBIT B

to Intercreditor Agreement

 

SECURITY DOCUMENTS

 

PART A.

 

List of Priority Lien Security Documents

 

		1.	First Lien Mortgage, Deed of Trust, Assignment, Security
Agreement, Financing Statement and Fixture Filing, dated as of April 4, 2006 (as amended, supplemented, amended and restated or
otherwise modified from time to time, the “GOM Deed of Trust”), from Energy XXI GOM, LLC (“GOM”),
as Mortgagor and Debtor (as defined in the GOM Deed of Trust) to the Trustee (as defined in the GOM Deed of Trust) and the Priority
Lien Agent, as Administrative Agent, Mortgagee and Secured Party (as defined in the Deed of Trust).

 

		2.	First Lien Mortgage, Assignment, Security Agreement, Financing
Statement and Fixture Filing, dated as of April 4, 2006 (as amended, supplemented, amended and restated or otherwise modified
from time to time, the “GOM Mortgage”), from GOM, as Mortgagor and Debtor (as defined in the GOM Mortgage)
to the Priority Lien Agent, as Administrative Agent, Mortgagee and Secured Party (as defined in the GOM Mortgage).

 

		3.	First Lien Mortgage, Assignment, Security Agreement, Financing
Statement and Fixture Filing, dated as of July 28, 2006 (as amended, supplemented, amended and restated or otherwise modified
from time to time, the “EXXI Mortgage”), from EXXI, as Mortgagor and Debtor (as defined in the EXXI
Mortgage) to the Priority Lien Agent, as Administrative Agent, Mortgagee and Secured Party (as defined in the EXXI Mortgage).

 

		4.	Second Amended and Restated First Lien Pledge and Security
Agreement and Irrevocable Proxy, dated as of May 5, 2011 (as amended, supplemented, amended and restated or otherwise modified
from time to time, the “EXXI Security Agreement”), made by EXXI in favor of the Priority Lien Agent
for each of the Secured Parties (as defined in the EXXI Security Agreement).

 

		5.	Second Amended and Restated First Lien Pledge and Security
Agreement and Irrevocable Proxy, dated as of May 5, 2011 (as amended, supplemented, amended and restated or otherwise modified
from time to time, the “GOM Security Agreement”), made by GOM in favor of the Priority Lien Agent for
each of the Secured Parties (as defined in the GOM Security Agreement).

 

		6.	Second Amended and Restated First Lien Pledge and Security
Agreement and Irrevocable Proxy, dated as of May 5, 2011 (as amended, supplemented, amended and restated or otherwise modified
from time to time, the “Onshore Security Agreement”), made by Energy XXI Onshore, LLC in favor of the
Priority Lien Agent for each of the Secured Parties (as defined in the Onshore Security Agreement).

 

    	Exhibit B

    	 

    

 

		7.	Amended and Restated First Lien Pledge and Security Agreement
and Irrevocable Proxy, dated as of May 5, 2011 (as amended, supplemented, amended and restated or otherwise modified from time
to time, the “Pipeline Security Agreement”), made by Energy XXI Pipeline, LLC in favor of the Priority
Lien Agent for each of the Secured Parties (as defined in the Pipeline Security Agreement).

 

		8.	Second Amended and Restated First Lien Pledge and Security
Agreement and Irrevocable Proxy, dated as of May 5, 2011 (as amended, supplemented, amended and restated or otherwise modified
from time to time, the “Texas Onshore Security Agreement”), made by Energy XXI Texas Onshore, LLC in
favor of the Priority Lien Agent for each of the Secured Parties (as defined in the Texas Onshore Security Agreement).

 

		9.	Second Amended and Restated First Lien Pledge Agreement
and Irrevocable Proxy dated as of May 5, 2011 (as amended, supplemented, amended and restated or otherwise modified from time
to time, the “Intermediate Holdco Pledge Agreement”), made by Energy XXI USA, Inc. (“Intermediate
Holdco”) in favor of the Priority Lien Agent for each of the Secured Parties (as defined in the Intermediate Holdco
Pledge Agreement).

 

		10.	First Lien Pledge and Security Agreement and Irrevocable
Proxy, dated as of December 7, 2011 (as amended, supplemented, amended and restated or otherwise modified from time to time, the
“Leasehold Security Agreement”), made by Energy XXI Leasehold, LLC in favor of the Priority Lien Agent
for each of the Secured Parties (as defined in the Leasehold Security Agreement).

 

		11.	First Lien Pledge and Security Agreement and Irrevocable
Proxy, dated as of December 7, 2011 (as amended, supplemented, amended and restated or otherwise modified from time to time, the
“Pipeline II Security Agreement”), made by Energy XXI Pipeline II, LLC in favor of the Priority Lien
Agent for each of the Secured Parties (as defined in the Pipeline II Security Agreement).

 

		12.	First Lien Pledge and Security Agreement and Irrevocable
Proxy, dated as of November 29, 2012 (as amended, supplemented, amended and restated or otherwise modified from time to time,
the “MS Onshore Security Agreement”), made by MS Onshore, LLC in favor of the Priority Lien Agent for
each of the Secured Parties (as defined in the MS Onshore Security Agreement).

 

		13.	First Lien Pledge and Security Agreement and Irrevocable
Proxy, dated as of June 3, 2014 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “Anglo-Suisse
Security Agreement”), made by Anglo-Suisse Offshore Pipeline Partners, LLC in favor of the Priority Lien Agent for
each of the Secured Parties (as defined in the Anglo-Suisse Security Agreement).

 

		14.	First Lien Pledge and Security Agreement and Irrevocable
Proxy, dated as of June 3, 2014 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “Delaware
EPL of Texas Security Agreement”), made by Delaware EPL of Texas, LLC in favor of the Priority Lien Agent for each
of the Secured Parties (as defined in the Delaware EPL of Texas Security Agreement).

 

    	Exhibit B

    	 

    

 

		15.	First Lien Pledge and Security Agreement and Irrevocable
Proxy, dated as of June 3, 2014 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “Energy
Partners Security Agreement”), made by Energy Partners Ltd., LLC in favor of the Priority Lien Agent for each of
the Secured Parties (as defined in the Energy Partners Security Agreement).

 

		16.	First Lien Pledge and Security Agreement and Irrevocable
Proxy, dated as of June 3, 2014 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “EPL
of LA Security Agreement”), made by EPL of Louisiana, L.L.C. (“EPL OF LA”) in favor of
the Priority Lien Agent for each of the Secured Parties (as defined in the EPL of LA Security Agreement).

 

		17.	First Lien Pledge and Security Agreement and Irrevocable
Proxy, dated as of June 3, 2014 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “EPL
Security Agreement”), made by EPL in favor of the Priority Lien Agent for each of the Secured Parties (as defined
in the EPL Security Agreement).

 

		18.	First Lien Pledge and Security Agreement and Irrevocable
Proxy, dated as of June 3, 2014 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “EPL
Pioneer Security Agreement”), made by EPL Pioneer Houston, Inc. in favor of the Priority Lien Agent for each of
the Secured Parties (as defined in the EPL Pioneer Security Agreement).

 

		19.	First Lien Pledge and Security Agreement and Irrevocable
Proxy, dated as of June 3, 2014 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “EPL
Pipeline Security Agreement”), made by EPL Pipeline, L.L.C. in favor of the Priority Lien Agent for each of the
Secured Parties (as defined in the EPL Pipeline Security Agreement).

 

		20.	First Lien Pledge and Security Agreement and Irrevocable
Proxy, dated as of June 3, 2014 (as amended, supplemented, amended and restated or otherwise modified from time to time, the “Nighthawk
Security Agreement”), made by Nighthawk, L.L.C. in favor of the Priority Lien Agent for each of the Secured Parties
(as defined in the Nighthawk Security Agreement).

 

		21.	First Lien Mortgage, Assignment, Security Agreement, Financing
Statement and Fixture Filing, dated as of June 3, 2014 (as amended, supplemented, amended and restated or otherwise modified from
time to time, the “EPL Mortgage”), from EPL, as Mortgagor (as defined in the EPL Mortgage) and EPL OF
LA, as Mortgagor (as defined in the EPL Mortgage) to the Priority Lien Agent, as Administrative Agent and Mortgagee (as defined
in the EPL Mortgage).

 

		22.	First Lien Security Agreement, dated as of the date hereof
(as amended, supplemented, amended and restated or otherwise modified from time to time, the “Intermediate Holdco
Security Agreement”) made by Intermediate Holdco in favor of the Priority Lien Agent for each of the Secured Parties
(as defined in the Intermediate Holdco Security Agreement).

 

    	Exhibit B

    	 

    

 

PART B.

 

List of Indenture Second Lien Security Documents

 

		1.	Second Lien Pledge and Security Agreement and Irrevocable
Proxy, dated as of the date hereof (as amended, supplemented, amended and restated or otherwise modified from time to time, the
“Security Agreement”), among EXXI and each Subsidiary Guarantor (as defined in the Second Lien Indenture)
party thereto in favor of the Second Lien Collateral Trustee for the ratable benefit of the Secured Parties (as defined in the
Security Agreement).

 

		2.	Second Lien Pledge Agreement and Irrevocable Proxy, dated
as of the date hereof (as amended, supplemented, amended and restated or otherwise modified from time to time, the “Intermediate
Holdco Pledge Agreement”), by Energy XXI USA, Inc., a Delaware corporation (“Intermediate Holdco”),
in favor of the Second Lien Collateral Trustee for the ratable benefit of the Secured Parties (as defined in the Intermediate
Holdco Pledge Agreement).

 

		3.	Second Lien Security Agreement, dated as of the date hereof
(as amended, supplemented, amended and restated or otherwise modified from time to time, the “Intermediate Holdco
Security Agreement”), by Intermediate Holdco, in favor of the Second Lien Collateral Trustee for the ratable benefit
of the Secured Parties (as defined in the Intermediate Holdco Security Agreement).

 

PART C.

 

List of Initial Third Lien Security Documents

 

		1.	None as of the date hereof.

 

    	Exhibit B

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00242-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00242-of-00352.parquet"}]]