Document:

Exhibit
      10.7

    ENERGY
      XXI SERVICES, LLC

    2006
      STOCK INCENTIVE PLAN

    FORM
      OF RESTRICTED STOCK
      UNIT AGREEMENT 

    This
      Restricted Stock Unit Agreement
      (the “Agreement”), made as of the ___ day of _____, 2006 (the “Grant Date”), by
      and between Energy XXI Services, LLC (the “Employer”), and _______________ (the
“Grantee”), evidences the grant by the Employer of restricted stock units
      (“Restricted Stock Units” or “Award”) to the Grantee on such date and the
      Grantee’s acceptance of the Award in accordance with the provisions of the
      Energy XXI Services, LLC 2006 Stock Incentive Plan, as amended or restated
      from
      time to time (the “Plan”). The Employer and the Grantee agree as follows:

    1.
Basis
      for
      Award. This Award is made in accordance with Section 4.2 of
      the Plan. The Grantee hereby receives as of the date hereof an Award of
      Restricted Stock Units pursuant to the terms of this Agreement (the “Grant”).

    2.
Stock
      Units
      Awarded. 

    (a)
      The Employer hereby awards to
      the Grantee, in the aggregate, _______________Restricted Stock Units.

    (b)
      The Employer shall in accordance
      with the Plan establish and maintain a Restricted Stock Unit Account for the
      Grantee, and such account shall be credited with the number of Restricted Stock
      Units granted to the Grantee. The Restricted Stock Unit Account shall be
      credited for the value of any securities or other property (including regular
      cash dividends) distributed to the Employer in respect of the Stock. Any such
      property shall be subject to the same vesting schedule as the Restricted Stock
      Units to which they relate. 

    (c)
      Until the Restricted Stock Units
      awarded to the Grantee shall have vested, the Restricted Stock Units and any
      related securities, cash dividends or other property nominally credited to
      a
      Restricted Stock Unit Account shall not be sold, transferred, or otherwise
      disposed of and shall not be pledged or otherwise hypothecated. 

    3.
Vesting.
      

    (a)
      The Restricted Stock Units
      covered by this Agreement shall vest with respect to 33.33% the Restricted
      Shares, on each of the first, second and third anniversaries of the Grant Date
      (the “Vesting Dates”) provided that, Grantee is still employed by the
      Employer (or any Parent or Subsidiary) on such vesting date. Except as provided
      in Section 3(b) below, if the Grantee ceases to be employed by the Employer
      (or any Parent or Subsidiary) for any other reason at any time prior to the
      lapse of restrictions, the unvested Restricted Stock Units shall automatically
      be forfeited upon such cessation of employment. 

    (b)
      [Insert special
      provisions for vesting on death, Disability, termination without Cause or Change
      of Control] 

     

     

    
      
         

      

      
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    4.
Payment.
      Except as provided below, payment shall be made in cash or Common Stock to
      the
      Grantee (at the sole discretion of the Committee) as soon as practicable after
      the Vesting Date. If and to the extent that payment is made in Common Stock,
      the
      Committee shall cause a stock certificate to be delivered to the Grantee with
      respect to such Common Stock free of all restrictions hereunder, except for
      applicable federal securities laws restrictions. Any securities, cash dividends
      or other property credited to the Restricted Stock Unit Account other than
      Restricted Stock Units shall be paid in kind, or, in the discretion of the
      Committee, in cash. 

    5.
Compliance
      with Laws
      and Regulations. The issuance of Shares upon vesting of the
      Restricted Stock Units shall be subject to compliance by the Employer and the
      Grantee with all applicable requirements of securities laws, other applicable
      laws and regulations of any stock exchange on which the Shares may be listed
      at
      the time of such issuance or transfer. The Grantee understands that the Employer
      is under no obligation to register or qualify the Shares with the Securities
      and
      Exchange Commission (“SEC”), any state securities commission or any stock
      exchange to effect such compliance. 

    6.
Tax
      Withholding. The Employer may deduct from any payment of any kind
      otherwise due to the Grantee (including payments due when the Restricted Stock
      Units vest) any federal, state or local taxes of any kind required by law to
      be
      withheld with respect to the shares of Restricted Stock Units. Alternatively,
      the Grantee may no later than the date as of which the Restricted Stock Units
      vest, pay to the Employer (in cash or to the extent permitted by the Committee,
      Stock held by the Grantee whose Fair Market Value on the day preceding the
      date
      the Restricted Stock Units vests is equal to the amount of the Grantee’s tax
      withholding liability) any federal, state or local taxes of any kind required
      by
      law to be withheld, if any, with respect to the Restricted Stock Units for
      which
      the restrictions shall lapse. 

    7.
      Nontransferability. This Award is not transferable.

    8.
No
      Right to Continued
      Employment. Nothing in this Agreement shall be deemed by
      implication or otherwise to impose any limitation on the right of the Employer
      or any of its affiliates to terminate the Grantee’s employment at any time, in
      absence of a specific written agreement to the contrary. 

    9.
      Severability. In the event that
      any provision of this Agreement shall be held illegal, invalid, or unenforceable
      for any reason, such provision shall be fully severable and shall not affect
      the
      remaining provisions of this Agreement, and the Agreement shall be construed
      and
      enforced as if the illegal, invalid, or unenforceable provision had never been
      included herein. 

    10.
Certain
      Restrictions. By executing this Agreement,
      Participant acknowledges that he will enter into such written representations,
      warranties and agreements and execute such documents as the Employer may
      reasonably request in order to comply with the terms of this Agreement or the
      Plan, or securities laws or any other applicable laws, rules or regulations.
      

    11.
Amendment
      and
      Termination. Except as otherwise provided in the Plan or this
      Agreement, no amendment or termination of this Agreement shall be made by the
      Employer without the written consent of the Participant. 

     

    
      
         

      

      
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    12.
No
      Guarantee of Tax
      Consequences. The Employer makes no
      commitment or guarantee to Participant that any federal or state tax treatment
      will apply or be available to any person eligible for benefits under this
      Agreement. 

    13.
Binding
      Effect. This Agreement shall be binding upon and inure to the
      benefit of any successors to the Employer and all persons lawfully claiming
      under Participant. 

    14.
Governing
      Law and
      Venue. This Agreement shall be governed by, and construed in
      accordance with, the laws of the State of Texas. The courts in Harris County,
      Texas shall be the exclusive venue for any dispute regarding the Plan or this
      Agreement. 

    [Signatures
      on following
      page] 

     

     

    
      
         

      

      
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    IN
      WITNESS WHEREOF, the parties
      hereto have signed this Agreement as of the date first above written.

     

    
      	
            	
            	
            
	ENERGY
              XXI SERVICES, LLC
	
            	
            
	By:	 	  
	Name:	 	
            
	Title:	 	
            

    

     

    
      	
            	
            	
            
	GRANTEE
	
            	
            
	By:	 	  

    

     

     

    
      
         

      

      
        Page
          4 of 4EXHIBIT
      10.8

    Energy
      XXI Acquisition
      Corporation (Bermuda) Limited 

    August 31,
      2005 

    Mr. Bill
      Colvin 

    1
      Patterdale, Coldharbour Road

    West
      Byfleet 

    Surrey,
      UK KT146JN 

    Dear
      Bill: 

    The
      board of Energy XXI Acquisition
      Corporation (Bermuda) Limited (the “Company”) has appointed you as a
      non-executive director. In addition, you are requested to Chair the Audit and
      Nomination Committees and serve as a member of the Remuneration Committee.
      I am
      writing to set out the terms of your appointment. It is agreed that this is
      a
      contract for services and is not a contract of employment. 

    Appointment
      

    Your
      appointment will be for an
      initial term of three years commencing on August 31, 2005, unless otherwise
      terminated earlier by and at the discretion of either party upon one month’s
      written notice. Continuation of your contract of appointment is contingent
      on
      satisfactory performance and re-election at forthcoming AGM’s. Non-executive
      directors are typically expected to serve two three-year terms, although the
      board may invite you to serve an additional period. 

    Time
      Commitment

    Overall
      we anticipate a time
      commitment of one to two days per month. This time commitment will include
      attendance at quarterly board meetings, the AGM, preparation for the meetings,
      the preparation for such meetings and incidental monthly board activities such
      as the approval of various resolutions. We plan to have quarterly board meetings
      (all board meetings will be held outside the U.S.) and concurrent with such
      meetings, a meeting of the Audit Committee to review the financial results
      of
      the Company. For the convenience and depending upon the agenda, we may arrange
      for certain of these board meetings to be telephonic. In addition, between
      board
      meetings, we will relay various board resolutions and other materials each
      month
      that require approval. 

    In
      addition to the above, we invite
      you to attend as many of the road show presentations as you wish. In particular,
      given that you live in the UK, we hope that you might be able to attend some
      of
      the road show presentations in London. We will ask Collins Stewart to coordinate
      this activity with you and your schedule. 

    By
      accepting this appointment, you
      have confirmed that you are able to allocate sufficient time to meet the
      expectations of your role. The agreement of the chairman should be sought before accepting
      additional
      commitments that might impact on the time you are able to devote to your role
      as
      a non-executive director of the company. 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Role

    Non-executive
      directors have the
      same general legal responsibilities to the Company as any other director. The
      board as a whole is collectively responsible for the success of the company.
      The
      board: 

     

    
      	 	•	 	Provides
              entrepreneurial leadership of the company within a
              framework of prudent and effective controls which enable risk to be
              assessed and managed; 

    

     

    
      	 	•	 	Sets
              the company’s strategic aims, ensures that the necessary
              financial and human resources are in place for the company to meet
              its
              objectives, and reviews the management performance; and
              

    

     

    
      	 	•	 	Sets
              the company’s values and standards and ensures that its
              obligations to its shareholders and others are understood and met.
              

    

    All
      directors must take decisions
      objectively in the interest of the company. 

    In
      addition to these requirements of
      all directors, the role of the non-executive director has the following key
      elements: 

     

    
      	 	•	 	Strategy.
Non-executive
              directors should
              constructively challenge and help develop proposals on strategy;
              

    

     

    
      	 	•	 	Performance.
Non-executive
              directors should
              scrutinize the performance of management in meeting agreed goals and
              objectives and monitor the reporting of performance;

    

     

    
      	 	•	 	Risk.
Non-executive
              directors should satisfy
              themselves on the integrity of financial information and that financial
              controls and systems of risk management are robust and defensible;
              and
              

    

     

    
      	 	•	 	People.
Non-executive
              directors are responsible
              for determining appropriate levels of remuneration of executive directors
              and have a prime role in appointing, and where necessary removing,
              executive directors and in succession planning.

    

    Fees

    We
      have arranged to transfer 25,000
      shares of the Company to your name. This shall be your compensation for the
      initial term. The Company will reimburse you for all reasonable and properly
      documented expenses you incur in performing the duties of your office.

    Outside
      Interests

    It
      is accepted and acknowledged that
      you have business interests other than those of the company and have declared
      any conflicts that are apparent at present. In the event that you become aware
      of any potential
      conflicts of interest, these should be disclosed to the chairman and company
      secretary as soon as apparent. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Confidentiality
      

    All
      information acquired during your
      appointment is confidential to the Company and should not be released, either
      during your appointment or following termination (by whatever means), to third
      parties without prior clearance from the chairman. 

    Your
      attention is also drawn to the
      requirements under both legislation and regulation as to the disclosure of
      price
      sensitive information. Consequently you should avoid making any statements
      that
      might risk a breach of these requirements without prior clearance from the
      chairman. 

    Induction
      

    Immediately
      after appointment, the
      Company will provide a comprehensive induction. This will include the
      information pack recommended by the Institute for Chartered Secretaries and
      Administrators (ICSA), available at www.icsa.org.uk. We will also arrange
      for meetings with senior management and the Company’s auditors. We will also
      offer to major shareholders the opportunity to meet you. 

    Review
      Process

    The
      performance of individual
      directors and the whole board and its committees is evaluated annually. If,
      in
      the interim, there are any matters which cause you concern about your role,
      you
      should discuss them with the chairman as soon as is appropriate. 

    Insurance
      

    The
      Company is arranging for
      directors’ and officers’ liability insurance and it is intended to maintain such
      cover for the full term of your appointment. As soon as this insurance is place,
      we shall provide a copy of the policy to you. 

    Independent
      Professional
      Advice 

    Occasions
      may arise when you
      consider that you need professional advice in the furtherance of your duties
      as
      a director. Circumstances may occur when it will be appropriate for you to
      seek
      advice from independent advisors at the Company’s expense. Under such
      circumstances, we request that you advise the chairman prior to engaging the
      advisor and the estimated costs thereof. The Company will reimburse the full
      cost of expenditure incurred. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
    

    Committees
      

    There
      are three committees of the
      board currently: the audit, remuneration and nomination committees. Currently,
      the Audit committee is the most active committee. Just prior to a business
      combination, the remuneration committee will increase its level of activity
      as
      we will then begin to have employees once a business combination is completed.
      

    Please
      sign this letter agreement,
      retain a copy for your files, and return a copy to me via PDF file.

     

    
      	
            
	Sincerely,
	
            
	/s/
              John D. Schiller,
              Jr.
	John
              D. Schiller, Jr.
	Chairman
              and Chief Executive Officer
	Energy
              XXI Acquisition Corporation (Bermuda)
              Limited

    

     

    
      	
            	
            	
            
	
            	
            
	Accepted: 	 	/s/
              Bill Colvin
	
            	 	Bill
              Colvin
	
            
	Date:
              1 September 2005

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