Document:

Exhibit 10.1

    Exhibit
      10.1

    

    April
      16,
      2007

    

    Mr.
      Hill
      Feinberg

    

    

    

    

    

    Dear
      Hill:

    

    The
      board
      of Energy XXI (Bermuda) Limited (the “Company”) has appointed you as a
      non-executive director. In addition, you are requested to Chair the Nomination
      Committee and serve as a member of the Audit & Compensation 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

    

    You
      will
      fill a casual vacancy on the board and stand for re-election at our shareholder
      meeting this fall. The term of the appointment from that election will be for
      an
      initial term of two years. Your appointment shall begin commencing on May 1,
      2007, 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
      approximately six years, 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 have
      quarterly board meetings (all board meetings will be held outside the U.S.
      or
      via conference call) and concurrent with such meetings, a meeting of the Audit
      Committee to review the financial results of the Company. In addition, between
      board meetings, we will relay various board resolutions and other materials
      each
      month that require approval.

    

    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
                review 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

    

    $30,000
      annual retainer, payable quarterly to each non-executive director;

    6,000
      shares of (restricted stock) awarded annually and vesting on the one-year
      anniversary of the award;

    $15,000
      annual retainer, payable quarterly to the chairman of the audit
      committee;

    $10,000
      annual retainer, payable quarterly to the chairman of any committee other than
      the audit committee;

    $2,500
      per outside director for each board meeting attended; and

    $1,500
      per outside director for each committee meeting attended,

    It
      being
      understood that if the directors in question defer compensation into shares
      of
      the Company, the Company would match 50% of such deferred
      compensation

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    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. In
      addition to the typical U.S. board guidance that you are familiar with, 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 maintains directors and officers’ liability insurance. If you wish, we
      will supply a copy of the insurance under separate cover for your
      review.

    

    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.

    

    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/
      HILL FEINBERG

    Hill
      Feinberg

    

    Date:  April
      30, 2007Exhibit 10.2

    Exhibit
      10.2

    

    April
      24,
      2007

    

    Mr.
      Paul
      Davison

    

    

    

    

    

    Dear
      Paul:

    

    The
      board
      of Energy XXI (Bermuda) Limited (the “Company”) intends to appoint you as a
      non-executive director. In addition, you are requested to serve as a member
      of
      the Audit, Compensation and Nomination Committees. 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

    

    You
      will
      fill a casual vacancy on the board and stand for re-election at our shareholder
      meeting this fall. The term of the appointment from that election will be for
      an
      initial term of three years. Your appointment shall begin commencing on May
      1,
      2007, 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
      approximately six years, 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 have
      quarterly board meetings (all board meetings will be held outside the U.S.
      or
      via conference call) and concurrent with such meetings, a meeting of the Audit
      Committee to review the financial results of the Company. In addition, between
      board meetings, we will relay various board resolutions and other materials
      each
      month that require approval.

    

    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
              review 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

    

    $30,000
      annual retainer, payable quarterly to each non-executive director;

    6,000
      shares of (restricted stock) awarded annually and vesting on the one-year
      anniversary of the award;

    $15,000
      annual retainer, payable quarterly to the chairman of the audit
      committee;

    $10,000
      annual retainer, payable quarterly to the chairman of any committee other than
      the audit committee;

    $2,500
      per outside director for each board meeting attended; and

    $1,500
      per outside director for each committee meeting attended,

    It
      being
      understood that if the directors in question defer compensation into shares
      of
      the Company, the Company would match 50% of such deferred
      compensation.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    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. In
      addition to the typical U.S. board guidance that you are familiar with, 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 maintains directors and officers’ liability insurance. If you wish, we
      will supply a copy of the insurance under separate cover for your
      review.

    

    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.

    

    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/
      PAUL DAVISON

    Paul
      Davison

    

    Date:  26
      April 2007

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