Document:

Exhibit
      10.3

    EMPLOYMENT
      AGREEMENT

    THIS
      EMPLOYMENT AGREEMENT
(“Agreement”) is made by and between Energy XXI (Bermuda) Limited, a
      Bermuda corporation (“Company”), and Steve Weyel (“Executive”). 

    WITNESSETH:
      

    WHEREAS,
Company
      is
      desirous of employing Executive in an executive capacity on the terms and
      conditions, and for the consideration, hereinafter set forth and Executive
      is
      desirous being employed by Company on such terms and conditions and for such
      consideration; 

    NOW,
      THEREFORE, for
      and in consideration of the mutual promises, covenants and obligations contained
      herein, Company and Executive agree as follows: 

    ARTICLE
      1: DEFINITIONS
      AND INTERPRETATIONS

    1.1
      Definitions.

    (a)
“Annual
      Base
      Salary” shall mean, as of a specified date, Executive’s annual base
      salary as of such date determined pursuant to Section 4.1. 

    (b)
“Annual
      Bonus”
shall mean the annual bonus paid by Company to Executive pursuant
      to
      Company’s annual incentive plan, as provided in Section 4.2(a); provided,
      however, that if Executive was employed by Company for only a portion of the
      year with respect to which any such annual bonus was paid, then the “Annual
      Bonus” for such year shall equal an amount determined by annualizing the bonus
      received by Executive based on the ratio of the number of days Executive was
      employed by Company during such year to 365 days. In the event that any Annual
      Bonus included in the computation of Executive’s Severance Amount was paid to
      Executive in a form other than cash, the amount of Executive’s Annual Bonus for
      purposes of determining his Severance Amount shall be determined in the
      discretion of the Board; provided, however, that if such Annual Bonus was paid
      to Executive in shares of Company’s common stock, then the value of such Annual
      Bonus used to calculate Executive’s Severance Amount shall be the fair market
      value of such Annual Bonus on the date of payment, determined in accordance
      with
      the terms of the Company’s stock incentive plan approved by the Board.

    (c)
“Board”
shall
      mean the Board of Directors of Company. 

    (d)
“Cause”
shall
      mean Executive (i) has engaged in gross negligence, gross incompetence or
      willful misconduct in the performance of his duties, (ii) has refused,
      without proper reason, to perform his duties, (iii) has willfully engaged
      in conduct which is materially injurious to Company or its subsidiaries
      (monetarily or otherwise), (iv) has committed an act of fraud, embezzlement
      or willful breach of a fiduciary duty to Company or an affiliate of the Company
      (including the unauthorized disclosure of confidential or proprietary material
      information of Company or an affiliate), or (v) has been convicted
      of (or pleaded no
      contest to) a crime involving fraud, dishonesty or moral turpitude or any
      felony. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (e)
“Change
      in Duties”
shall mean: 

    (i)
      The occurrence, prior to the
      date that a Change of Control Period begins or after the expiration of a Change
      of Control Period, of any one or more of the following without the consent
      of
      Executive: 

    (1)
      a material reduction in the
      nature or scope of Executive’s authorities or duties from those previously
      applicable to him; 

    (2)
      a reduction in Executive’s
      Annual Base Salary not in accordance with Section 4.1; or 

    (3)
      a material diminution in
      employee benefits (including but not limited to medical, dental, life insurance
      and long-term disability plans) and perquisites applicable to Executive from
      those substantially similar to the employee benefits and perquisites provided
      by
      Company (including its subsidiaries) to executives with comparable duties;
      or

    (ii)
      The occurrence, within a Change
      of Control Period, of any one or more of the following without the consent
      of
      Executive: 

    (1)
      a material reduction in the
      nature or scope of Executive’s authorities or duties from those applicable to
      him immediately prior to the date on which a Change of Control Period begins;
      

    (2)
      a reduction in Executive’s
      Annual Base Salary, not in accordance with Section 4.1, from that provided
      to him immediately prior to the date on which a Change of Control Period begins;
      

    (3)
      a diminution in Executive’s
      eligibility to participate in bonus, stock option, incentive award and other
      compensation plans which provide opportunities to receive compensation which
      are
      the greater of (A) the opportunities provided by Company (including its
      subsidiaries) for executives with comparable duties or (B) the
      opportunities under any such plans under which he was participating immediately
      prior to the date on which a Change of Control Period begins; or 

    (4)
      a material diminution in
      employee benefits (including but not limited to medical, dental, life insurance
      and long-term disability plans) and perquisites applicable to Executive from
      the
      greater of (A) the employee benefits and perquisites provided by Company
      (including its subsidiaries) to executives with comparable duties or
      (B) the employee benefits and perquisites to which he was entitled
      immediately prior to the date on which a Change of Control Period begins.

     

     

    
      
         

      

      
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    (f)“Change
      of Control”
shall mean: 

    (i)
      a merger of Company with another
      entity, a consolidation involving Company, or the sale of all or substantially
      all of the assets of Company to another entity if, in any such case,
      (1) the holders of equity securities of Company immediately prior to such
      transaction or event do not beneficially own immediately after such transaction
      or event equity securities of the resulting entity entitled to 50% or more
      of
      the votes then eligible to be cast in the election of directors generally (or
      comparable governing body) of the resulting entity in substantially the same
      proportions that they owned the equity securities of Company immediately prior
      to such transaction or event or (2) the persons who were members of the
      Board immediately prior to such transaction or event shall not constitute at
      least a majority of the board of directors of the resulting entity immediately
      after such transaction or event; 

    (ii)
      the dissolution or liquidation
      of Company; 

    (iii)
      when any person or entity,
      including a “group” as contemplated by Section 13(d)(3) of the Securities
      Exchange Act of 1934, acquires or gains ownership or control (including, without
      limitation, power to vote) of more than 50% of the combined voting power of
      the
      outstanding securities of Company; or 

    (iv)
      as a result of or in connection
      with a contested election of directors, the persons who were members of the
      Board immediately before such election shall cease to constitute a majority
      of
      the Board. 

    For
      purposes of the preceding
      sentence, (1) “resulting entity” in the context of a transaction or event
      that is a merger, consolidation or sale of all or substantially all assets
      shall
      mean the surviving entity (or acquiring entity in the case of an asset sale)
      unless the surviving entity (or acquiring entity in the case of an asset sale)
      is a subsidiary of another entity and the holders of common stock of Company
      receive capital stock of such other entity in such transaction or event, in
      which event the resulting entity shall be such other entity, and
      (2) subsequent to the consummation of a merger or consolidation that does
      not constitute a Change of Control, the term “Company” shall refer to the
      resulting entity and the term “Board” shall refer to the board of directors (or
      comparable governing body) of the resulting entity. 

    (g)
“Change
      of Control
      Period” shall mean, with respect to a Change of Control, the period
      beginning 90 days prior to the date that a definitive agreement concerning
      such
      Change of Control is executed and ending on the date that is one year following
      the date upon which such Change of Control occurs. 

    (h)
“Code”
shall
      mean the Internal Revenue Code of 1986, as amended. 

    (i)
“Disability”
      shall mean that, as a result of Executive’s incapacity due to physical
      or mental illness, he shall have been absent from the full-time performance
      of
his duties for
      six
      consecutive months and he shall not have returned to full-time performance
      of
      his duties within 30 days after written notice of termination is given to
      Executive by Company (provided, however, that such notice may not be given
      prior
      to 30 days before the expiration of such six-month period). 

     

    
      
         

      

      
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    (j)
“Effective
      Date”
shall mean the date of the closing of the transactions contemplated
      in
      that certain Purchase and Sale Agreement dated February 21, 2006, by and
      between Energy XXI Gulf Coast, Inc. and Marlin Energy, L.L.C., as amended.
      

    (k)
“Involuntary
      Termination” shall mean any termination of Executive’s employment with
      Company which: 

    (i)
      does not result from a
      resignation by Executive (other than a resignation pursuant to clause
      (ii) of this Section 1.1(k)); or 

    (ii)
      results from a resignation by
      Executive on or before the date which is 60 days after the date upon which
      Executive receives notice of a Change in Duties; 

    provided,
      however, the term
“Involuntary Termination” shall not include a termination for Cause or any
      termination as a result of death or Disability. 

    (l)
“Remuneration
      Committee”
shall mean the Remuneration Committee of the Board. 

    (m)
“Severance
      Amount”
shall mean A multiplied by B,
where: 

     

    
      	 	A	equals
              the sum of (i) Executive’s Annual Base Salary at the
              annual rate in effect at the date of Executive’s Involuntary Termination
              and (ii) the average of the Annual Bonuses, if any, earned by
              Executive with respect to the two most recent fiscal years ending on
              or
              before the date of such Involuntary Termination; provided, however,
              that
              for purposes of determining the amount described in clause (ii) of
              this sentence, (x) if Executive was not employed by Company at any
              time during the earlier of such two fiscal years, then the amount
              described in such clause shall be equal to the Annual Bonus, if any,
              earned by Executive with respect to the most recent fiscal year ending
              on
              or before the date of such Involuntary Termination, and (y) if
              Executive was not employed by Company at any time during either of
              such
              two fiscal years, then the amount described in such clause shall be
              equal
              to Executive’s target annual bonus under Section 4.2(a) for the
              fiscal year in which such Involuntary Termination occurs; and
              

    

     

    
      	 	B	
              equals
                a
                fraction, the numerator of which is the number of full and partial
                months
                in the period beginning on the date of Executive’s Involuntary Termination
                and ending on the last day of the remaining term of Executive’s employment
                under this Agreement under Section 3.1 as of the date of such
                termination (but in no event shall the numerator be less than 12),
                and the
                denominator of which is 12. 

            

    

     

    
      
         

      

      
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    1.2
      Interpretations.
In this Agreement, unless a clear contrary intention appears,
      (a) the words “herein,” “hereof” and “hereunder” and other words of similar
      import refer to this Agreement as a whole and not to any particular Article,
      Section or other subdivision, (b) reference to any Article or Section,
      means such Article or Section hereof, (c) the words “including” (and with
      correlative meaning “include”) means including, without limiting the generality
      of any description preceding such term, and (d) where any provision of this
      Agreement refers to action to be taken by either party, or which such party
      is
      prohibited from taking, such provision shall be applicable whether such action
      is taken directly or indirectly by such party. 

    ARTICLE
      2: EMPLOYMENT AND
      DUTIES

    2.1
      Employment.
Effective as of the Effective Date and continuing for the period of
      time set forth in Section 3.1 of this Agreement, Executive’s employment by
      Company shall be subject to the terms and conditions of this
      Agreement.

    2.2
      Positions. From
      and after the Effective Date, Company shall employ Executive in the positions
      of
      President and Chief Operating Officer of Company, or in such other positions
      as
      the parties mutually may agree.

    2.3
      Duties and Services.
Executive agrees to serve in the positions referred to in
      Section 2.2 and to perform diligently and to the best of his abilities the
      duties and services appertaining to such offices, as well as such additional
      duties and services appropriate to such offices which the parties mutually
      may
      agree upon from time to time. Executive’s employment shall also be subject to
      the policies maintained and established by Company that are of general
      applicability to Company’s executive employees, as such policies may be amended
      from time to time.

    2.4
      Other Interests.
Executive agrees, during the period of his employment by Company,
      to
      devote substantially all of his business time, energy and best efforts to the
      business and affairs of Company and its affiliates and not to engage, directly
      or indirectly, in any other business or businesses, whether or not similar
      to
      that of Company, except with the consent of the Board. The foregoing
      notwithstanding, the parties recognize and agree that Executive may engage
      in
      passive personal investment and charitable activities that do not conflict
      with
      the business and affairs of Company or interfere with Executive’s performance of
      his duties hereunder, which shall be at the sole determination of the
      Board.

    2.5
      Duty of Loyalty.
Executive acknowledges and agrees that Executive owes a fiduciary
      duty
      of loyalty to act at all times in the best interests of Company. In keeping
      with
      such duty, Executive shall make full disclosure to Company of all business
      opportunities pertaining to Company’s business and shall not appropriate for
      Executive’s own benefit business opportunities concerning Company’s
      business.

     

     

    
      
         

      

      
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    ARTICLE
      3: TERM AND
      TERMINATION OF EMPLOYMENT

    3.1
      Term. Unless
      sooner terminated pursuant to other provisions hereof, Company agrees to employ
      Executive for the period beginning on the Effective Date and ending on
      October 20, 2008 (the “Initial Expiration Date”);
      provided, however, that beginning on the Initial Expiration Date, and on each
      anniversary of the Initial Expiration Date thereafter, if Executive’s employment
      under this Agreement has not been terminated pursuant to Section 3.2 or
      3.3, then said term of employment shall automatically be extended for an
      additional one-year period unless on or before the date that is 90 days prior
      to
      the first day of any such extension period either party shall give written
      notice to the other that no such automatic extension shall occur.

    3.2
      Company’s Right to
      Terminate. Notwithstanding the provisions of Section 3.1, Company
      shall have the right to terminate Executive’s employment under this Agreement at
      any time for any of the following reasons:

    (a)
      upon Executive’s death;

    (b)
      upon Executive’s Disability;

    (c)
      for Cause; or 

    (d)
      at any time, for any other
      reason whatsoever, in the sole discretion of the Board; provided, however,
      that
      Company may not terminate Executive’s employment pursuant to this
      Section 3.2(d) prior to the date that is four months after the Effective
      Date. 

    3.3
      Executive’s Right to
      Terminate. Notwithstanding the provisions of Section 3.1 Executive
      shall have the right to terminate his employment under this Agreement for any
      of
      the following reasons: 

    (a)
      as a result of a Change in
      Duties; provided, however, that prior to Executive’s termination as a result of
      a Change of Duties, Executive must give written notice to Company of the
      specific occurrence that resulted in the Change in Duties and such occurrence
      must remain uncorrected for 10 days following delivery of such written notice;
      or 

    (b)
      at any time for any other reason
      whatsoever, in the sole discretion of Executive. 

    3.4
      Notice of Termination.
If Company desires to terminate Executive’s employment hereunder at any
      time prior to expiration of the term of employment as provided in
      Section 3.1, it shall do so by giving written notice to Executive that it
      has elected to terminate Executive’s employment hereunder and stating the
      effective date and reason for such termination, provided that no such action
      shall alter or amend any other provisions hereof or rights arising hereunder.
      If
      Executive desires to terminate his employment hereunder at any time prior to
      expiration of the term of employment as provided in Section 3.1, he shall
      do so by giving a 30-day written notice to Company that he has elected to
      terminate his employment hereunder and stating the
      effective date and
      reason for such termination, provided that no such action shall alter or amend
      any other provisions hereof or rights arising hereunder.

     

    
      
         

      

      
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    3.5
      Deemed Resignations.
Any termination of Executive’s employment shall constitute an automatic
      resignation of Executive as an officer of Company and each affiliate of Company,
      and an automatic resignation of Executive from the Board (if applicable) and
      from the board of directors or similar governing body of any affiliate of
      Company and from the board of directors or similar governing body of any
      corporation, limited liability company or other entity in which Company or
      any
      affiliate holds an equity interest and with respect to which board or similar
      governing body Executive serves as Company’s or such affiliate’s designee or
      other representative. 

    ARTICLE
      4: COMPENSATION
      AND BENEFITS

    4.1
      Base Salary.
During the period of this Agreement, Executive shall receive a minimum
      Annual Base Salary of $395,000.00. Executive’s Annual Base Salary shall be
      reviewed by the Remuneration Committee on an annual basis, and, in the sole
      discretion of the Remuneration Committee, such Annual Base Salary may be
      increased, but not decreased (except with the prior written consent of
      Executive), effective as of any date determined by the Remuneration Committee.
      Executive’s Annual Base Salary shall be paid in equal installments in accordance
      with Company’s standard policy regarding payment of compensation to executives
      but no less frequently than monthly.

    4.2
      Bonuses and Long-Term
      Incentive. 

    (a)
Annual
      Bonus–
Executive shall have the opportunity to receive an annual target incentive
      bonus, based upon criteria established by the Board or the Remuneration
      Committee, of 75 percent of Executive’s annual base salary, pursuant to the
      terms of an incentive compensation plan approved by the Board or the
      Remuneration Committee and implemented by Company, or such other amount as
      the
      parties mutually may agree upon from time to time. 

    (b)
Long-Term
      Incentive Plan
– Subject to the sole discretion of the Board or the Remuneration
      Committee, Executive shall be eligible for participation in any long-term
      incentive arrangement of Company as may from time to time be made available
      to
      other executive officers (and such other executives as may be selected for
      participation by the Board or Remuneration Committee) of Company. 

    4.3
      Other Perquisites.
During his employment hereunder, Executive shall be afforded the
      following benefits as incidences of his employment: 

    (a)
Business
      and
      Entertainment Expenses - Subject to Company’s standard policies and
      procedures with respect to expense reimbursement as applied to its executive
      employees generally, Company shall reimburse Executive for, or pay on behalf
      of
      Executive, reasonable and appropriate expenses incurred by Executive for
      business related purposes, including dues and fees to industry and professional
      organizations and costs of entertainment and business development. 

     

    
      
         

      

      
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    (b)
Club
      Memberships
– Company shall obtain memberships providing Executive access to a
      country club and a health club, each as approved by the Remuneration Committee
      or the Board, and Company shall pay the initiation fees and monthly dues
      associated with such memberships. Executive’s membership in such country club
      and health club shall cease upon Executive’s termination of employment
      hereunder, and, to the extent applicable, such membership shall be transferred
      to Company (or its designee) upon such termination. 

    (c)
Automobile
–
      Company shall provide Executive with an automobile (or an automobile allowance)
      that is determined by the Remuneration Committee or the Board to be appropriate
      for the needs and requirements of Executive’s employment, and Company shall
      reimburse Executive for, or pay on behalf of Executive, reasonable and
      appropriate expenses incurred by Executive for maintaining and operating such
      automobile. Such automobile shall be available to Executive and his spouse
      for
      personal use. 

    (d)
Vacation–
      During his employment hereunder, Executive shall be entitled to six weeks of
      paid vacation each calendar year (or a pro rata portion of such six-week
      vacation period for any partial year) and to all holidays provided to executives
      of Company generally. 

    (e)
Life
      Insurance–
During Executive’s employment hereunder, Company shall maintain one or more
      policies of life insurance on the life of Executive providing an aggregate
      death
      benefit in an amount not less than $2 million (the “Minimum Death Benefit”).
      Executive shall have the right to designate the beneficiary or beneficiaries
      of
      the death benefit payable pursuant to such policy or policies up to an aggregate
      death benefit in an amount equal to the Minimum Death Benefit. The provisions
      of
      this Section 4.3(e) can be satisfied in whole or in part by any group life
      insurance policy provided by Company in accordance with Section 4.3(f)
      hereof. Executive shall (i) furnish any and all information reasonably
      requested by Company or the insurer to facilitate the issuance of the life
      insurance policy or policies described in this Section 4.3(e) or any
      adjustment to any such policy, and (ii) take such physical examinations as
      Company or the insurer deems necessary. If Executive refuses to cooperate or
      makes any material misstatement of information or nondisclosure of medical
      history, then Company shall have no further obligation to provide the benefit
      described in this Section 4.3(e). 

    (f)
Other
      Company
      Benefits– Executive and, to the extent applicable, Executive’s spouse,
      dependents and beneficiaries, shall be allowed to participate in all benefits,
      plans and programs, including improvements or modifications of the same, which
      are now, or may hereafter be, available to other executive employees of Company.
      Such benefits, plans and programs shall include, without limitation, any profit
      sharing plan, thrift plan, health insurance or health care plan, life insurance,
      disability insurance, pension plan, supplemental retirement plan, vacation
      and
      sick leave plan, and the like which may be maintained by Company. Company shall
      not, however, by reason of this paragraph be obligated to institute, maintain,
      or refrain from changing, amending, or discontinuing, any such benefit plan
      or
      program, so long as such changes are similarly applicable to executive employees
      generally. 

     

    
      
         

      

      
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    ARTICLE
      5: EFFECT OF
      TERMINATION ON COMPENSATION; ADDITIONAL PAYMENTS

    5.1
      Termination Other Than
      an Involuntary Termination. If Executive’s employment hereunder shall
      terminate upon expiration of the term provided in Section 3.1 hereof
      because either party has provided the notice contemplated in such paragraph,
      or
      if Executive’s employment hereunder shall terminate for any other reason except
      those described in Section 5.2, then all compensation and all benefits to
      Executive hereunder shall continue to be provided until the date of such
      termination of employment, and such compensation and benefits shall terminate
      contemporaneously with such termination of employment.

    5.2
      Involuntary Termination.
Subject to the provisions of Sections 5.5 and 5.6 hereof, if
      Executive’s employment by Company or any subsidiary thereof or successor thereto
      shall be subject to an Involuntary Termination, then Company shall, as
      additional compensation for services rendered to Company (including its
      subsidiaries), pay to Executive the following amounts and take the following
      actions after the last day of Executive’s employment with Company:

    (a)
      Pay Executive a lump sum cash
      payment in an amount equal to the Severance Amount on or before the 30th day
      after the last day of Executive’s employment with Company. 

    (b)
      Cause Executive and those of
      Executive’s dependents (including Executive’s spouse) who were covered under
      Company’s medical, dental and life insurance benefit plans on the day prior to
      Executive’s Involuntary Termination to continue to be covered under such plans
      (or to receive equivalent benefits, including the life insurance benefits
      described in Section 4.3(e)) throughout the three-year period beginning on
      the date of such Involuntary Termination at no greater cost to Executive than
      that applicable to Executive immediately prior to such Involuntary Termination;
      provided, however, that (i) such coverage shall terminate if and to the
      extent Executive becomes eligible to receive medical, dental and/or life
      insurance coverage from a subsequent employer (and any such eligibility shall
      be
      promptly reported to Company by Executive), and (ii) such coverage to
      Executive (or the receipt of equivalent benefits) shall be provided under one
      or
      more insurance policies so that reimbursement or payment of benefits to
      Executive thereunder shall not result in taxable income to Executive (or, if
      any
      such reimbursement or payment of benefits is taxable (including subject to
      any
      additional tax under Section 409A of the Code), then Company shall pay to
      Executive an amount as shall be required to hold Executive harmless from any
      additional tax liability resulting from the failure by Company to so provide
      insurance policies so that reimbursement or payment of benefits to Executive
      thereunder shall not result in taxable income to Executive). 

    (c)
      If Executive’s employment with
      Company is subject to an Involuntary Termination during a Change of Control
      Period or to a termination due to Executive’s death or Disability, cause any and
      all outstanding options to purchase common stock of Company held by Executive
      to
      become immediately exercisable in full, cause any and all restricted shares
      of
      the Company’s common stock held by Executive to become immediately nonforfeitable,
      and
      cause Executive’s accrued benefits under any and all nonqualified deferred
      compensation plans sponsored by Company to become immediately nonforfeitable.
      

     

    
      
         

      

      
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    5.3
      Interest on Late
      Payments. If any payment provided for in Section 5.2 hereof is not
      made when due (applying the deferred payment date provided for in
      Section 5.6 as the due date, if applicable), then Company shall pay to
      Executive interest on the amount payable from the date that such payment should
      have been made under such Section until such payment is made, which interest
      shall be calculated at the prime or base rate of interest announced by JPMorgan
      Chase Bank (or any successor thereto) at its principal office in New York,
      and
      shall change when and as any such change in such prime or base rate shall be
      announced by such bank.

    5.4
      Parachute Payments.
Notwithstanding anything to the contrary in this Agreement, in the
      event that any payment or distribution by Company to or for the benefit of
      Executive, whether paid or payable or distributed or distributable pursuant
      to
      the terms of this Agreement or otherwise (a “Payment”), would be subject to the
      excise tax imposed by Section 4999 of the Code or any interest or penalties
      with respect to such excise tax (such excise tax, together with any such
      interest or penalties, are hereinafter collectively referred to as the “Excise
      Tax”), Company shall pay to Executive an additional payment (a “Gross-up
      Payment”) in an amount such that after payment by Executive of all taxes
      (including any interest or penalties imposed with respect to such taxes),
      including any Excise Tax imposed on any Gross-up Payment, Executive retains
      an
      amount of the Gross-up Payment equal to the Excise Tax imposed upon the
      Payments. Company and Executive shall make an initial determination as to
      whether a Gross-up Payment is required and the amount of any such Gross-up
      Payment. Executive shall notify Company in writing of any claim by the Internal
      Revenue Service which, if successful, would require Company to make a Gross-up
      Payment (or a Gross-up Payment in excess of that, if any, initially determined
      by Company and Executive) within ten days of the receipt of such claim. Company
      shall notify Executive in writing at least ten days prior to the due date of
      any
      response required with respect to such claim if it plans to contest the claim.
      If Company decides to contest such claim, Executive shall cooperate fully with
      Company in such action; provided, however, Company shall bear and pay directly
      or indirectly all costs and expenses (including additional interest and
      penalties) incurred in connection with such action and shall indemnify and
      hold
      Executive harmless, on an after-tax basis, for any Excise Tax or income tax,
      including interest and penalties with respect thereto, imposed as a result
      of
      Company’s action. If, as a result of Company’s action with respect to a claim,
      Executive receives a refund of any amount paid by Company with respect to such
      claim, Executive shall promptly pay such refund to Company. If Company fails
      to
      timely notify Executive whether it will contest such claim or Company determines
      not to contest such claim, then Company shall immediately pay to Executive
      the
      portion of such claim, if any, which it has not previously paid to
      Executive.

    5.5
      Release and Full
      Settlement. As a condition to the receipt of any severance compensation
      and benefits under this Agreement, Executive must first execute a release and
      agreement, in a form reasonably satisfactory to Company, which shall release
      and
      discharge Company and its affiliates, and their officers, directors, employees
      and agents, from any and all claims or causes of action of any kind or
      character, including all claims or causes of action arising out of Executive’s
      employment with Company or its affiliates or the termination of such
employment. If
      Executive is entitled to and receives the benefits provided hereunder,
      performance of the obligations of Company hereunder will constitute full
      settlement of all claims that Executive might otherwise assert against Company
      on account of his termination of employment. 

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    5.6
      Payments Subject to
      Section 409A of the Code. Notwithstanding the foregoing provisions
      of this Article 5, if the payment of any severance compensation or severance
      benefits under this Agreement would be subject to additional taxes and interest
      under Section 409A of the Code because the timing of such payment is not
      delayed as provided in Section 409A(a)(2)(B) of the Code, then any such
      payments that Executive would otherwise be entitled to during the first six
      months following the date of Executive’s termination of employment shall be
      accumulated and paid on the date that is six months after the date of
      Executive’s termination of employment (or if such payment date does not fall on
      a business day of the Company, the next following business day of the Company),
      or such earlier date upon which such amount can be paid under Section 409A
      of the Code without being subject to such additional taxes and
      interest.

    5.7
      Liquidated Damages.
In light of the difficulties in estimating the damages for an early
      termination of Executive’s employment under this Agreement, Company and
      Executive hereby agree that the payments, if any, to be received by Executive
      pursuant to this Article 5 shall be received by Executive as liquidated
      damages.

    5.8
      Other Benefits.
This Agreement governs the rights and obligations of Executive and
      Company with respect to Executive’s base salary and certain perquisites of
      employment. Except as expressly provided herein, Executive’s rights and
      obligations both during the term of his employment and thereafter with respect
      to stock options, restricted stock, incentive and deferred compensation, life
      insurance policies insuring the life of Executive, and other benefits under
      the
      plans and programs maintained by Company shall be governed by the separate
      agreements, plans and other documents and instruments governing such
      matters.

    ARTICLE
      6: PROTECTION OF
      CONFIDENTIAL INFORMATION

    6.1
      Disclosure to and
      Property of Company. All information, designs, ideas, concepts,
      improvements, product developments, discoveries and inventions, whether
      patentable or not, that are conceived, made, developed or acquired by Executive,
      individually or in conjunction with others, during the period of Executive’s
      employment by Company (whether during business hours or otherwise and whether
      on
      Company’s premises or otherwise) that relate to Company’s (or any of its
      affiliates’) business, trade secrets, products or services (including, without
      limitation, all such information relating to corporate opportunities, product
      specification, compositions, manufacturing and distribution methods and
      processes, research, financial and sales data, pricing terms, evaluations,
      opinions, interpretations, acquisitions prospects, the identity of customers
      or
      their requirements, the identity of key contacts within the customer’s
      organizations or within the organization of acquisition prospects, marketing
      and
      merchandising techniques, business plans, computer software or programs,
      computer software and database technologies, prospective names and marks)
      (collectively, “Confidential Information”) shall be disclosed to Company and are
      and shall be the sole and exclusive property of Company (or its affiliates).
      Moreover, all documents, videotapes, written presentations, brochures, drawings,
      memoranda, notes, records, files, correspondence, manuals, models,
      specifications, computer programs, E-mail,
      voice mail, electronic databases, maps, drawings,
      architectural renditions, models and all other writings or materials of any
      type
      embodying any of such information, ideas, concepts, improvements, discoveries,
      inventions and other similar forms of expression (collectively, “Work Product”)
      are and shall be the sole and exclusive property of Company (or its affiliates).
      Upon Executive’s termination of employment with Company, for any reason,
      Executive promptly shall deliver such Confidential Information and Work Product,
      and all copies thereof, to Company. 

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    6.2
      Disclosure to Executive.
Company will disclose to Executive, or place Executive in a position
      to
      have access to or develop, Confidential Information and Work Product of Company
      (or its affiliates); and/or will entrust Executive with business opportunities
      of Company (or its affiliates); and/or will place Executive in a position to
      develop business good will on behalf of Company (or its affiliates). Executive
      agrees to preserve and protect the confidentiality of all Confidential
      Information or Work Product of Company (or its affiliates).

    6.3
      No Unauthorized Use or
      Disclosure. Executive agrees that he will not, at any time during or
      after Executive’s employment by Company, make any unauthorized disclosure of,
      and will prevent the removal from Company premises of, Confidential Information
      or Work Product of Company (or its affiliates), or make any use thereof, except
      in the carrying out of Executive’s responsibilities during the course of
      Executive’s employment with Company. Executive shall use commercially reasonable
      efforts to cause all persons or entities to whom any Confidential Information
      shall be disclosed by him hereunder to observe the terms and conditions set
      forth herein as though each such person or entity was bound hereby. Executive
      shall have no obligation hereunder to keep confidential any Confidential
      Information if and to the extent disclosure thereof is specifically required
      by
      law; provided, however, that in the event disclosure is required by applicable
      law, Executive shall provide Company with prompt notice of such requirement
      prior to making any such disclosure, so that Company may seek an appropriate
      protective order. At the request of Company at any time, Executive agrees to
      deliver to Company all Confidential Information that he may possess or control.
      Executive agrees that all Confidential Information of Company (whether now
      or
      hereafter existing) conceived, discovered or made by him during the period
      of
      Executive’s employment by Company exclusively belongs to Company (and not to
      Executive), and Executive will promptly disclose such Confidential Information
      to Company and perform all actions reasonably requested by Company to establish
      and confirm such exclusive ownership. Affiliates of Company shall be third
      party
      beneficiaries of Executive’s obligations under this Article 6. As a result of
      Executive’s employment by Company, Executive may also from time to time have
      access to, or knowledge of, Confidential Information or Work Product of third
      parties, such as customers, suppliers, partners, joint venturers, and the like,
      of Company and its affiliates. Executive also agrees to preserve and protect
      the
      confidentiality of such third party Confidential Information and Work Product
      to
      the same extent, and on the same basis, as Company’s Confidential Information
      and Work Product. 

    6.4
      Ownership by Company.
If, during Executive’s employment by Company, Executive creates any
      work of authorship fixed in any tangible medium of expression that is the
      subject matter of copyright (such as videotapes, written presentations, or
      acquisitions, computer programs, E-mail, voice mail, electronic databases,
      drawings, maps, architectural renditions, models, manuals, brochures, or the
      like) relating to Company’s business, products, or services, whether such work
      is created solely by Executive or jointly with others (whether during business
      hours or otherwise
      and
      whether on Company’s premises or otherwise), including any Work Product, Company
      shall be deemed the author of such work if the work is prepared by Executive
      in
      the scope of Executive’s employment; or, if the work is not prepared by
      Executive within the scope of Executive’s employment but is specially ordered by
      Company as a contribution to a collective work, as a part of a motion picture
      or
      other audiovisual work, as a translation, as a supplementary work, as a
      compilation, or as an instructional text, then the work shall be considered
      to
      be work made for hire and Company shall be the author of the work. If such
      work
      is neither prepared by Executive within the scope of Executive’s employment nor
      a work specially ordered that is deemed to be a work made for hire, then
      Executive hereby agrees to assign, and by these presents does assign, to Company
      all of Executive’s worldwide right, title, and interest in and to such work and
      all rights of copyright therein. 

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    6.5
      Assistance by Executive.
During the period of Executive’s employment by Company and thereafter,
      Executive shall assist Company and its nominee, at any time, in the protection
      of Company’s (or its affiliates’) worldwide right, title and interest in and to
      Work Product and the execution of all formal assignment documents requested
      by
      Company or its nominee and the execution of all lawful oaths and applications
      for patents and registration of copyright in the United States and foreign
      countries.

    6.6
      Remedies.
Executive acknowledges that money damages would not be sufficient
      remedy for any breach of this Article 6 by Executive, and Company or its
      affiliates shall be entitled to enforce the provisions of this Article 6 by
      terminating payments then owing to Executive under this Agreement or otherwise
      and to specific performance and injunctive relief as remedies for such breach
      or
      any threatened breach. Such remedies shall not be deemed the exclusive remedies
      for a breach of this Article 6 but shall be in addition to all remedies
      available at law or in equity, including the recovery of damages from Executive
      and his agents.

    ARTICLE
      7:
NON-DISPARAGEMENT

    7.1
      Non-Disparagement.
During Executive’s employment with Company and following any
      termination of employment with Company, Executive agrees not to disparage,
      either orally or in writing, Company, any of its business, products, services
      or
      practices, or any of their directors, officers, agents, representatives,
      stockholders, employees or affiliates. 

    ARTICLE
      8:
MISCELLANEOUS

    8.1
      Indemnification.
Company agrees that, in the event Executive’s employment by Company or
      any subsidiary thereof or successor thereto shall be subject to an Involuntary
      Termination, Company shall continue to indemnify Executive following such
      Involuntary Termination to the fullest extent permitted by applicable law
      consistent with the Articles of Incorporation and By-Laws of Company in effect
      as of the date of the Involuntary Termination with respect to Executive’s sole,
      joint or concurrent negligence and any acts of or omissions he may have
      committed during the period during which he was an officer, director and/or
      employee of (a) Company, (b) any subsidiary thereof for which he
      served as an officer, director or employee at the request of Company, or
      (c) any successor thereto. 

     

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    
    

    8.2
      Payment Obligations
      Absolute. Except as specifically provided in Section 6.6,
      Company’s obligation to pay (or cause one of its subsidiaries to pay) Executive
      the amounts and to make the arrangements provided herein shall be absolute
      and
      unconditional and shall not be affected by any circumstances, including, without
      limitation, any set-off, counterclaim, recoupment, defense or other right which
      Company (including its subsidiaries) may have against him or anyone else. All
      amounts payable by Company (including its subsidiaries hereunder) shall be
      paid
      without notice or demand. Executive shall not be obligated to seek other
      employment in mitigation of the amounts payable or arrangements made under
      any
      provision of this Agreement, and, except as provided in Section 5.2(b)
      hereof, the obtaining of any such other employment shall in no event effect
      any
      reduction of Company’s obligations to make (or cause to be made) the payments
      and arrangements required to be made under this Agreement.

    8.3
      Notices. For
      purposes of this Agreement, notices and all other communications provided for
      herein shall be in writing and shall be deemed to have been duly given when
      personally delivered or when mailed by United States registered or certified
      mail, return receipt requested, postage prepaid, addressed as follows:

     

    
      	
            	
            	
            
	If
              to Company to:	  	
              Energy
                XXI (Bermuda)
                Limited

              Canon’s
                Court

              22
                Victoria
                Street

              Hamilton
                HMEX

              Bermuda

              Attention:
                Chairman of the
                Board of Directors

            
	
            	
            
	
            	  	with
              a
              copy to:
	
            	
            
	
            	  	
              Energy
                XXI (Bermuda)
                Limited

              c/o
                Energy XXI U.S.A.,
                Inc.

              1021
                Main Street, Suite
                2626

              Houston,
                Texas
                77002

              United
                States of
                America

              Attention:
                Chairman of the
                Board of Directors

            
	
            	
            
	If
              to Executive to:	  	
              Steve
                Weyel

              2006
                Singleton

              Houston,
                Texas
                77008

            

    

    or
      to such other address as either
      party may furnish to the other in writing in accordance herewith, except that
      notices or changes of address shall be effective only upon receipt.

    8.4
      Applicable Law.
      This Agreement is entered into under, and shall be governed for all purposes
      by,
      the laws of the State of Texas.

    8.5
      No Waiver. No
      failure by either party hereto at any time to give notice of any breach by
      the
      other party of, or to require compliance with, any condition or provision of
      this Agreement shall be deemed a waiver of similar or dissimilar provisions
      or
      conditions at the same or at any prior or subsequent time.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
    

    8.6
      Severability.
Any provision in this Agreement which is prohibited or unenforceable
      in
      any jurisdiction by reason of applicable law shall, as to such jurisdiction,
      be
      ineffective only to the extent of such prohibition or unenforceability without
      invalidating or affecting the remaining provisions hereof, and any such
      prohibition or unenforceability in any jurisdiction shall not invalidate or
      render unenforceable such provision in any other jurisdiction.

    8.7
      Counterparts.
This Agreement may be executed in one or more counterparts, each of
      which shall be deemed to be an original, but all of which together will
      constitute one and the same Agreement.

    8.8
      Withholding of Taxes and
      Other Employee Deductions. Company may withhold from any benefits and
      payments made pursuant to this Agreement all federal, state, city and other
      taxes as may be required pursuant to any law or governmental regulation or
      ruling and all other normal employee deductions made with respect to Company’s
      employees generally.

    8.9
      Headings. The
      paragraph headings have been inserted for purposes of convenience and shall
      not
      be used for interpretive purposes.

    8.10
      Gender and Plurals.
Wherever the context so requires, the masculine gender includes the
      feminine or neuter, and the singular number includes the plural and
      conversely.

    8.11
      Assignment.
This Agreement shall be binding upon and inure to the benefit of
      Company and any successor of Company, by merger or otherwise. This Agreement
      shall also be binding upon and inure to the benefit of Executive and his estate.
      If Executive shall die prior to full payment of amounts due pursuant to this
      Agreement, such amounts shall be payable pursuant to the terms of this Agreement
      to his estate (other than amounts payable pursuant to Section 4.3(e), which
      shall be paid to Executive’s designated beneficiary or beneficiaries). Executive
      shall not have any right to pledge, hypothecate, anticipate or assign this
      Agreement or the rights hereunder, except by will or the laws of descent and
      distribution.

    8.12
      Term. This
      Agreement has a term co-extensive with the term of employment provided in
      Section 3.1. Termination shall not affect any right or obligation of any
      party which is accrued or vested prior to such termination. The provisions
      of
      Section 3.5 and Articles 6 and 7 shall survive the termination of this
      Agreement.

    8.13
      Entire Agreement.
This Agreement constitutes the entire agreement of the parties with
      regard to the subject matter hereof, and contains all the covenants, promises,
      representations, warranties and agreements between the parties with respect
      to
      such subject matter. Without limiting the scope of the preceding sentence,
      all
      understandings and agreements preceding the date of execution of this Agreement
      and relating to the subject matter hereof are hereby null and void and of no
      further force and effect, including, without limitation, all prior employment
      and severance agreements, if any, by and between Company and Executive. Any
      modification of this Agreement will be effective only if it is in writing and
      signed by the party to be charged.

    [Signatures
      begin on next page.]

     

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    
    

    IN
      WITNESS WHEREOF,
the parties hereto have executed this Agreement on the 4th
      day of April, 2006, to be effective as of the Effective
      Date. 

     

    
      	
            	
            	
            	
            	
            
	Energy
              XXI (Bermuda) Limited
	
            	
            
	By:	 	/s/
              John D. Schiller
              Jr
	
            	 	Name:	 	John
              D. Schiller Jr
	
            	 	Title:	 	Chairman
&
CEO

    

     

    
      	
            
	COMPANY
	
            
	Steve
              Weyel
	
            
	
              /s/
                Steve
                Weyel

            
	EXECUTIVE

    

     

     

    
      
         

      

      
        16Exhibit
      10.4

    EMPLOYMENT
      AGREEMENT

    THIS
      EMPLOYMENT AGREEMENT
(“Agreement”) is made by and between Energy XXI (Bermuda) Limited, a
      Bermuda corporation (“Company”), and David West Griffin (“Executive”).

    W
      I T N E S S E T H:

    WHEREAS,
Company
      is
      desirous of employing Executive in an executive capacity on the terms and
      conditions, and for the consideration, hereinafter set forth and Executive
      is
      desirous of being employed by Company on such terms and conditions and for
      such
      consideration; 

    NOW,
      THEREFORE, for
      and in consideration of the mutual promises, covenants and obligations contained
      herein, Company and Executive agree as follows: 

    ARTICLE
      1: DEFINITIONS
      AND INTERPRETATIONS 

    1.1
      Definitions.

    (a)
“Annual
      Base
      Salary” shall mean, as of a specified date, Executive’s annual base
      salary as of such date determined pursuant to Section 4.1. 

    (b)
“Annual
      Bonus”
shall mean the annual bonus paid by Company to Executive pursuant
      to
      Company’s annual incentive plan, as provided in Section 4.2(a); provided,
      however, that if Executive was employed by Company for only a portion of the
      year with respect to which any such annual bonus was paid, then the “Annual
      Bonus” for such year shall equal an amount determined by annualizing the bonus
      received by Executive based on the ratio of the number of days Executive was
      employed by Company during such year to 365 days. In the event that any Annual
      Bonus included in the computation of Executive’s Severance Amount was paid to
      Executive in a form other than cash, the amount of Executive’s Annual Bonus for
      purposes of determining his Severance Amount shall be determined in the
      discretion of the Board; provided, however, that if such Annual Bonus was paid
      to Executive in shares of Company’s common stock, then the value of such Annual
      Bonus used to calculate Executive’s Severance Amount shall be the fair market
      value of such Annual Bonus on the date of payment, determined in accordance
      with
      the terms of the Company’s stock incentive plan approved by the Board.

    (c)
“Board”
shall
      mean the Board of Directors of Company. 

    (d)
“Cause”
shall
      mean Executive (i) has engaged in gross negligence, gross incompetence or
      willful misconduct in the performance of his duties, (ii) has refused,
      without proper reason, to perform his duties, (iii) has willfully engaged
      in conduct which is materially injurious to Company or its subsidiaries
      (monetarily or otherwise), (iv) has committed an act of fraud, embezzlement
      or willful breach of a fiduciary duty to Company or an affiliate of the Company
      (including the unauthorized disclosure of confidential or
      proprietary material
      information of Company or an affiliate), or (v) has been convicted of (or
      pleaded no contest to) a crime involving fraud, dishonesty or moral turpitude
      or
      any felony. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (e)
“Change
      in Duties”
shall mean: 

    (i)
      The occurrence, prior to the
      date that a Change of Control Period begins or after the expiration of a Change
      of Control Period, of any one or more of the following without the consent
      of
      Executive: 

    (1)
      a material reduction in the
      nature or scope of Executive’s authorities or duties from those previously
      applicable to him; 

    (2)
      a reduction in Executive’s
      Annual Base Salary not in accordance with Section 4.1; or 

    (3)
      a material diminution in
      employee benefits (including but not limited to medical, dental, life insurance
      and long-term disability plans) and perquisites applicable to Executive from
      those substantially similar to the employee benefits and perquisites provided
      by
      Company (including its subsidiaries) to executives with comparable duties;
      or

    (ii)
      The occurrence, within a Change
      of Control Period, of any one or more of the following without the consent
      of
      Executive: 

    (1)
      a material reduction in the
      nature or scope of Executive’s authorities or duties from those applicable to
      him immediately prior to the date on which a Change of Control Period begins;
      

    (2)
      a reduction in Executive’s
      Annual Base Salary, not in accordance with Section 4.1, from that provided
      to him immediately prior to the date on which a Change of Control Period begins;
      

    (3)
      a diminution in Executive’s
      eligibility to participate in bonus, stock option, incentive award and other
      compensation plans which provide opportunities to receive compensation which
      are
      the greater of (A) the opportunities provided by Company (including its
      subsidiaries) for executives with comparable duties or (B) the
      opportunities under any such plans under which he was participating immediately
      prior to the date on which a Change of Control Period begins; or 

    (4)
      a material diminution in
      employee benefits (including but not limited to medical, dental, life insurance
      and long-term disability plans) and perquisites applicable to Executive from
      the
      greater of (A) the employee benefits and perquisites provided by Company
      (including its subsidiaries) to executives with comparable duties or
      (B) the employee benefits and perquisites to which he was entitled
      immediately prior to the date on which a Change of Control Period begins.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    
    

    (f)“Change
      of Control”
shall mean: 

    (i)
      a merger of Company with another
      entity, a consolidation involving Company, or the sale of all or substantially
      all of the assets of Company to another entity if, in any such case,
      (1) the holders of equity securities of Company immediately prior to such
      transaction or event do not beneficially own immediately after such transaction
      or event equity securities of the resulting entity entitled to 50% or more
      of
      the votes then eligible to be cast in the election of directors generally (or
      comparable governing body) of the resulting entity in substantially the same
      proportions that they owned the equity securities of Company immediately prior
      to such transaction or event or (2) the persons who were members of the
      Board immediately prior to such transaction or event shall not constitute at
      least a majority of the board of directors of the resulting entity immediately
      after such transaction or event; 

    (ii)
      the dissolution or liquidation
      of Company; 

    (iii)
      when any person or entity,
      including a “group” as contemplated by Section 13(d)(3) of the Securities
      Exchange Act of 1934, acquires or gains ownership or control (including, without
      limitation, power to vote) of more than 50% of the combined voting power of
      the
      outstanding securities of Company; or 

    (iv)
      as a result of or in connection
      with a contested election of directors, the persons who were members of the
      Board immediately before such election shall cease to constitute a majority
      of
      the Board. 

    For
      purposes of the preceding
      sentence, (1) “resulting entity” in the context of a transaction or event
      that is a merger, consolidation or sale of all or substantially all assets
      shall
      mean the surviving entity (or acquiring entity in the case of an asset sale)
      unless the surviving entity (or acquiring entity in the case of an asset sale)
      is a subsidiary of another entity and the holders of common stock of Company
      receive capital stock of such other entity in such transaction or event, in
      which event the resulting entity shall be such other entity, and
      (2) subsequent to the consummation of a merger or consolidation that does
      not constitute a Change of Control, the term “Company” shall refer to the
      resulting entity and the term “Board” shall refer to the board of directors (or
      comparable governing body) of the resulting entity. 

    (g)
“Change
      of Control
      Period” shall mean, with respect to a Change of Control, the period
      beginning 90 days prior to the date that a definitive agreement concerning
      such
      Change of Control is executed and ending on the date that is one year following
      the date upon which such Change of Control occurs. 

    (h)
“Code”
shall
      mean the Internal Revenue Code of 1986, as amended. 

    (i)
“Disability”
      shall mean that, as a result of Executive’s incapacity due to physical
      or mental illness, he shall have been absent from the full-time performance
      of
his duties for
      six
      consecutive months and he shall not have returned to full-time performance
      of
      his duties within 30 days after written notice of termination is given to
      Executive by Company (provided, however, that such notice may not be given
      prior
      to 30 days before the expiration of such six-month period). 

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (j)
“Effective
      Date”
shall mean the date of the closing of the transactions contemplated
      in
      that certain Purchase and Sale Agreement dated February 21, 2006, by and
      between Energy XXI Gulf Coast, Inc. and Marlin Energy, L.L.C., as amended.
      

    (k)
“Involuntary
      Termination” shall mean any termination of Executive’s employment with
      Company which: 

    (i)
      does not result from a
      resignation by Executive (other than a resignation pursuant to clause
      (ii) of this Section 1.1 (k)); or 

    (ii)
      results from a resignation by
      Executive on or before the date which is 60 days after the date upon which
      Executive receives notice of a Change in Duties; 

    provided,
      however, the term
“Involuntary Termination” shall not include a termination for Cause or any
      termination as a result of death or Disability. 

    (l)
“Remuneration
      Committee”
shall mean the Remuneration Committee of the Board. 

    (m)
“Severance
      Amount”
shall mean A multiplied by B,
where: 

     

    
      	 	A	equals
              the sum of (i) Executive’s Annual Base Salary at the
              annual rate in effect at the date of Executive’s Involuntary Termination
              and (ii) the average of the Annual Bonuses, if any, earned by
              Executive with respect to the two most recent fiscal years ending on
              or
              before the date of such Involuntary Termination; provided, however,
              that
              for purposes of determining the amount described in clause (ii) of
              this sentence, (x) if Executive was not employed by Company at any
              time during the earlier of such two fiscal years, then the amount
              described in such clause shall be equal to the Annual Bonus, if any,
              earned by Executive with respect to the most recent fiscal year ending
              on
              or before the date of such Involuntary Termination, and (y) if
              Executive was not employed by Company at any time during either of
              such
              two fiscal years, then the amount described in such clause shall be
              equal
              to Executive’s target annual bonus under Section 4.2(a) for the
              fiscal year in which such Involuntary Termination occurs; and
              

    

     

    
      	 	B	
              equals
                a
                fraction, the numerator of which is the number of full and partial
                months
                in the period beginning on the date of Executive’s Involuntary Termination
                and ending on the last day of the remaining term of Executive’s employment
                under this Agreement under Section 3.1 as of the date of such
                termination (but
                in no event shall the numerator be less than 12), and the denominator
                of
                which is 12. 

            

    

     

    
      
         

      

      
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    1.2
      Interpretations.
In this Agreement, unless a clear contrary intention appears,
      (a) the words “herein,” “hereof and “hereunder” and other words of similar
      import refer to this Agreement as a whole and not to any particular Article,
      Section or other subdivision, (b) reference to any Article or Section,
      means such Article or Section hereof, (c) the words “including” (and with
      correlative meaning “include”) means including, without limiting the generality
      of any description preceding such term, and (d) where any provision of this
      Agreement refers to action to be taken by either party, or which such party
      is
      prohibited from taking, such provision shall be applicable whether such action
      is taken directly or indirectly by such party. 

    ARTICLE
      2: EMPLOYMENT AND
      DUTIES

    2.1
      Employment.
Effective as of the Effective Date and continuing for the period of
      time set forth in Section 3.1 of this Agreement, Executive’s employment by
      Company shall be subject to the terms and conditions of this
      Agreement.

    2.2
      Positions. From
      and after the Effective Date, Company shall employ Executive in the position
      of
      Chief Financial Officer of Company, or in such other positions as the parties
      mutually may agree.

    2.3
      Duties and Services.
Executive agrees to serve in the positions referred to in
      Section 2.2 and to perform diligently and to the best of his abilities the
      duties and services appertaining to such offices, as well as such additional
      duties and services appropriate to such offices which the parties mutually
      may
      agree upon from time to time. Executive’s employment shall also be subject to
      the policies maintained and established by Company that are of general
      applicability to Company’s executive employees, as such policies may be amended
      from time to time.

    2.4
      Other Interests.
Executive agrees, during the period of his employment by Company,
      to
      devote substantially all of his business time, energy and best efforts to the
      business and affairs of Company and its affiliates and not to engage, directly
      or indirectly, in any other business or businesses, whether or not similar
      to
      that of Company, except with the consent of the Board. The foregoing
      notwithstanding, the parties recognize and agree that Executive may engage
      in
      passive personal investment and charitable activities that do not conflict
      with
      the business and affairs of Company or interfere with Executive’s performance of
      his duties hereunder, which shall be at the sole determination of the
      Board.

    2.5
      Duty of Loyalty.
Executive acknowledges and agrees that Executive owes a fiduciary
      duty
      of loyalty to act at all times in the best interests of Company. In keeping
      with
      such duty, Executive shall make full disclosure to Company of all business
      opportunities pertaining to Company’s business and shall not appropriate for
      Executive’s own benefit business opportunities concerning Company’s
      business.

     

    
      
         

      

      
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    ARTICLE
      3: TERM AND
      TERMINATION OF EMPLOYMENT

    3.1
      Term. Unless
      sooner terminated pursuant to other provisions hereof, Company agrees to employ
      Executive for the period beginning on the Effective Date and ending on
      October 20, 2008 (the “Initial Expiration Date”);
provided, however, that beginning on the Initial Expiration
      Date, and
      on each anniversary of the Initial Expiration Date thereafter, if Executive’s
      employment under this Agreement has not been terminated pursuant to
      Section 3.2 or 3.3, then said term of employment shall automatically be
      extended for an additional one-year period unless on or before the date that
      is
      90 days prior to the first day of any such extension period either party shall
      give written notice to the other that no such automatic extension shall occur.
      

    3.2
      Company’s Right to
      Terminate. Notwithstanding the provisions of Section 3.1, Company
      shall have the right to terminate Executive’s employment under this Agreement at
      any time for any of the following reasons: 

    (a)
      upon Executive’s death;

    (b)
      upon Executive’s Disability;

    (c)
      for Cause; or 

    (d)
      at any time, for any other
      reason whatsoever, in the sole discretion of the Board; provided, however,
      that
      Company may not terminate Executive’s employment pursuant to this
      Section 3.2(d) prior to the date that is four months after the Effective
      Date. 

    3.3
      Executive’s Right to
      Terminate. Notwithstanding the provisions of Section 3.1 Executive
      shall have the right to terminate his employment under this Agreement for any
      of
      the following reasons: 

    (a)
      as a result of a Change in
      Duties; provided, however, that prior to Executive’s termination as a result of
      a Change of Duties, Executive must give written notice to Company of the
      specific occurrence that resulted in the Change in Duties and such occurrence
      must remain uncorrected for 10 days following delivery of such written notice;
      or 

    (b)
      at any time for any other reason
      whatsoever, in the sole discretion of Executive. 

    3.4
      Notice of Termination.
If Company desires to terminate Executive’s employment hereunder at any
      time prior to expiration of the term of employment as provided in
      Section 3.1, it shall do so by giving written notice to Executive that it
      has elected to terminate Executive’s employment hereunder and stating the
      effective date and reason for such termination, provided that no such action
      shall alter or amend any other provisions hereof or rights arising hereunder.
      If
      Executive desires to terminate his employment hereunder at any time prior to
      expiration of the term of employment as provided in Section 3.1, he shall
      do so by giving a 30-day written notice to Company that he has elected to
      terminate his employment hereunder and stating the
      effective date and
      reason for such termination, provided that no such action shall alter or amend
      any other provisions hereof or rights arising hereunder.

     

    
      
         

      

      
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    3.5
      Deemed Resignations.
Any termination of Executive’s employment shall constitute an automatic
      resignation of Executive as an officer of Company and each affiliate of Company,
      and an automatic resignation of Executive from the Board (if applicable) and
      from the board of directors or similar governing body of any affiliate of
      Company and from the board of directors or similar governing body of any
      corporation, limited liability company or other entity in which Company or
      any
      affiliate holds an equity interest and with respect to which board or similar
      governing body Executive serves as Company’s or such affiliate’s designee or
      other representative. 

    ARTICLE
      4: COMPENSATION
      AND BENEFITS

    4.1
      Base Salary.
During the period of this Agreement, Executive shall receive a minimum
      Annual Base Salary of $260,000.00. Executive’s Annual Base Salary shall be
      reviewed by the Remuneration Committee on an annual basis, and, in the sole
      discretion of the Remuneration Committee, such Annual Base Salary may be
      increased, but not decreased (except with the prior written consent of
      Executive), effective as of any date determined by the Remuneration Committee.
      Executive’s Annual Base Salary shall be paid in equal installments in accordance
      with Company’s standard policy regarding payment of compensation to executives
      but no less frequently than monthly.

    4.2
      Bonuses and Long-Term
      Incentive. 

    (a)
Annual
      Bonus–
Executive shall have the opportunity to receive an annual target incentive
      bonus, based upon criteria established by the Board or the Remuneration
      Committee, of 55 percent of Executive’s annual base salary, pursuant to the
      terms of an incentive compensation plan approved by the Board or the
      Remuneration Committee and implemented by Company, or such other amount as
      the
      parties mutually may agree upon from time to time. 

    (b)
Long-Term
      Incentive
      Plan– Subject to the sole discretion of the Board or the Remuneration
      Committee, Executive shall be eligible for participation in any long-term
      incentive arrangement of Company as may from time to time be made available
      to
      other executive officers (and such other executives as may be selected for
      participation by the Board or Remuneration Committee) of Company. 

    4.3
      Other Perquisites.
During his employment hereunder, Executive shall be afforded the
      following benefits as incidences of his employment: 

    (a)
Business
      and
      Entertainment Expenses– Subject to Company’s standard policies and
      procedures with respect to expense reimbursement as applied to its executive
      employees generally, Company shall reimburse Executive for, or pay on behalf
      of
      Executive, reasonable and appropriate expenses incurred by Executive for
      business related purposes, including dues and fees to industry and professional
      organizations and costs of entertainment and business development. 

     

    
      
         

      

      
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    (b)
Club
      Memberships– Company shall obtain memberships providing Executive
      access to a country club and a health club, each as approved by the Remuneration
      Committee or the Board, and Company shall pay the initiation fees and monthly
      dues associated with such memberships. Executive’s membership in such country
      club and health club shall cease upon Executive’s termination of employment
      hereunder, and, to the extent applicable, such membership shall be transferred
      to Company (or its designee) upon such termination. 

    (c)
Automobile
–
      Company shall provide Executive with an automobile (or an automobile allowance)
      that is determined by the Remuneration Committee or the Board to be appropriate
      for the needs and requirements of Executive’s employment, and Company shall
      reimburse Executive for, or pay on behalf of Executive, reasonable and
      appropriate expenses incurred by Executive for maintaining and operating such
      automobile. Such automobile shall be available to Executive and his spouse
      for
      personal use. 

    (d)
Vacation–
      During his employment hereunder, Executive shall be entitled to six weeks of
      paid vacation each calendar year (or a pro rata portion of such six-week
      vacation period for any partial year) and to all holidays provided to executives
      of Company generally. 

    (e)
Life
      Insurance–
During Executive’s employment hereunder, Company shall maintain one or more
      policies of life insurance on the life of Executive providing an aggregate
      death
      benefit in an amount not less than $2 million (the “Minimum Death Benefit”).
      Executive shall have the right to designate the beneficiary or beneficiaries
      of
      the death benefit payable pursuant to such policy or policies up to an aggregate
      death benefit in an amount equal to the Minimum Death Benefit. The provisions
      of
      this Section 4.3(e) can be satisfied in whole or in part by any group life
      insurance policy provided by Company in accordance with Section 4.3(f)
      hereof. Executive shall (i) furnish any and all information reasonably
      requested by Company or the insurer to facilitate the issuance of the life
      insurance policy or policies described in this Section 4.3(e) or any
      adjustment to any such policy, and (ii) take such physical examinations as
      Company or the insurer deems necessary. If Executive refuses to cooperate or
      makes any material misstatement of information or nondisclosure of medical
      history, then Company shall have no further obligation to provide the benefit
      described in this Section 4.3(e). 

    (f)
Other
      Company
      Benefits– Executive and, to the extent applicable, Executive’s spouse,
      dependents and beneficiaries, shall be allowed to participate in all benefits,
      plans and programs, including improvements or modifications of the same, which
      are now, or may hereafter be, available to other executive employees of Company.
      Such benefits, plans and programs shall include, without limitation, any profit
      sharing plan, thrift plan, health insurance or health care plan, life insurance,
      disability insurance, pension plan, supplemental retirement plan, vacation
      and
      sick leave plan, and the like which may be maintained by Company. Company shall
      not, however, by reason of this paragraph be obligated to institute, maintain,
      or refrain from changing, amending, or discontinuing, any such benefit plan
      or
      program, so long as such changes are similarly applicable to executive employees
      generally. 

     

    
      
         

      

      
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    ARTICLE
      5: EFFECT OF
      TERMINATION ON COMPENSATION; ADDITIONAL PAYMENTS

    5.1
      Termination Other Than
      an Involuntary Termination. If Executive’s employment hereunder shall
      terminate upon expiration of the term provided in Section 3.1 hereof
      because either party has provided the notice contemplated in such paragraph,
      or
      if Executive’s employment hereunder shall terminate for any other reason except
      those described in Section 5.2, then all compensation and all benefits to
      Executive hereunder shall continue to be provided until the date of such
      termination of employment, and such compensation and benefits shall terminate
      contemporaneously with such termination of employment.

    5.2
      Involuntary Termination.
Subject to the provisions of Sections 5.5 and 5.6 hereof, if
      Executive’s employment by Company or any subsidiary thereof or successor thereto
      shall be subject to an Involuntary Termination, then Company shall, as
      additional compensation for services rendered to Company (including its
      subsidiaries), pay to Executive the following amounts and take the following
      actions after the last day of Executive’s employment with Company:

    (a)
      Pay Executive a lump sum cash
      payment in an amount equal to the Severance Amount on or before the 30th day
      after the last day of Executive’s employment with Company. 

    (b)
      Cause Executive and those of
      Executive’s dependents (including Executive’s spouse) who were covered under
      Company’s medical, dental and life insurance benefit plans on the day prior to
      Executive’s Involuntary Termination to continue to be covered under such plans
      (or to receive equivalent benefits, including the life insurance benefits
      described in Section 4.3(e)) throughout the three-year period beginning on
      the date of such Involuntary Termination at no greater cost to Executive than
      that applicable to Executive immediately prior to such Involuntary Termination;
      provided, however, that (i) such coverage shall terminate if and to the
      extent Executive becomes eligible to receive medical, dental and/or life
      insurance coverage from a subsequent employer (and any such eligibility shall
      be
      promptly reported to Company by Executive), and (ii) such coverage to
      Executive (or the receipt of equivalent benefits) shall be provided under one
      or
      more insurance policies so that reimbursement or payment of benefits to
      Executive thereunder shall not result in taxable income to Executive (or, if
      any
      such reimbursement or payment of benefits is taxable (including subject to
      any
      additional tax under Section 409A of the Code), then Company shall pay to
      Executive an amount as shall be required to hold Executive harmless from any
      additional tax liability resulting from the failure by Company to so provide
      insurance policies so that reimbursement or payment of benefits to Executive
      thereunder shall not result in taxable income to Executive). 

    (c)
      If Executive’s employment with
      Company is subject to an Involuntary Termination during a Change of Control
      Period or to a termination due to Executive’s death or Disability, cause any and
      all outstanding options to purchase common stock of Company held by Executive
      to
      become immediately exercisable in full, cause any and all restricted shares
      of
      the Company’s common stock held by Executive to become immediately nonforfeitable,
      and
      cause Executive’s accrued benefits under any and all nonqualified deferred
      compensation plans sponsored by Company to become immediately nonforfeitable.
      

     

    
      
         

      

      
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    5.3
      Interest on Late
      Payments. If any payment provided for in Section 5.2 hereof is not
      made when due (applying the deferred payment date provided for in
      Section 5.6 as the due date, if applicable), then Company shall pay to
      Executive interest on the amount payable from the date that such payment should
      have been made under such Section until such payment is made, which interest
      shall be calculated at the prime or base rate of interest announced by JPMorgan
      Chase Bank (or any successor thereto) at its principal office in New York,
      and
      shall change when and as any such change in such prime or base rate shall be
      announced by such bank. 

    5.4
      Parachute
      Payments. Notwithstanding anything to the contrary in this Agreement,
      in the event that any payment or distribution by Company to or for the benefit
      of Executive, whether paid or payable or distributed or distributable pursuant
      to the terms of this Agreement or otherwise (a “Payment”), would be subject to
      the excise tax imposed by Section 4999 of the Code or any interest or
      penalties with respect to such excise tax (such excise tax, together with any
      such interest or penalties, are hereinafter collectively referred to as the
      “Excise Tax”), Company shall pay to Executive an additional payment (a “Gross-up
      Payment”) in an amount such that after payment by Executive of all taxes
      (including any interest or penalties imposed with respect to such taxes),
      including any Excise Tax imposed on any Gross-up Payment, Executive retains
      an
      amount of the Gross-up Payment equal to the Excise Tax imposed upon the
      Payments. Company and Executive shall make an initial determination as to
      whether a Gross-up Payment is required and the amount of any such Gross-up
      Payment. Executive shall notify Company in writing of any claim by the Internal
      Revenue Service which, if successful, would require Company to make a Gross-up
      Payment (or a Gross-up Payment in excess of that, if any, initially determined
      by Company and Executive) within ten days of the receipt of such claim. Company
      shall notify Executive in writing at least ten days prior to the due date of
      any
      response required with respect to such claim if it plans to contest the claim.
      If Company decides to contest such claim, Executive shall cooperate fully with
      Company in such action; provided, however, Company shall bear and pay directly
      or indirectly all costs and expenses (including additional interest and
      penalties) incurred in connection with such action and shall indemnify and
      hold
      Executive harmless, on an after-tax basis, for any Excise Tax or income tax,
      including interest and penalties with respect thereto, imposed as a result
      of
      Company’s action. If, as a result of Company’s action with respect to a claim,
      Executive receives a refund of any amount paid by Company with respect to such
      claim, Executive shall promptly pay such refund to Company. If Company fails
      to
      timely notify Executive whether it will contest such claim or Company determines
      not to contest such claim, then Company shall immediately pay to Executive
      the
      portion of such claim, if any, which it has not previously paid to Executive.
      

    5.5
      Release and Full
      Settlement. As a condition to the receipt of any severance compensation
      and benefits under this Agreement, Executive must first execute a release and
      agreement, in a form reasonably satisfactory to Company, which shall release
      and
      discharge Company and its affiliates, and their officers, directors, employees
      and agents, from any and all claims or causes of action of any kind or
      character, including all claims or causes of action arising out of Executive’s
      employment with Company or its affiliates or the termination of such
employment. If
      Executive is entitled to and receives the benefits provided hereunder,
      performance of the obligations of Company hereunder will constitute full
      settlement of all claims that Executive might otherwise assert against Company
      on account of his termination of employment. 

     

    
      
         

      

      
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    5.6
      Payments Subject to
      Section 409A of the Code. Notwithstanding the foregoing provisions
      of this Article 5, if the payment of any severance compensation or severance
      benefits under this Agreement would be subject to additional taxes and interest
      under Section 409A of the Code because the timing of such payment is not
      delayed as provided in Section 409A(a)(2)(B) of the Code, then any such
      payments that Executive would otherwise be entitled to during the first six
      months following the date of Executive’s termination of employment shall be
      accumulated and paid on the date that is six months after the date of
      Executive’s termination of employment (or if such payment date does not fall on
      a business day of the Company, the next following business day of the Company),
      or such earlier date upon which such amount can be paid under Section 409A
      of the Code without being subject to such additional taxes and interest.

    5.7
      Liquidated Damages.
In light of the difficulties in estimating the damages for an early
      termination of Executive’s employment under this Agreement, Company and
      Executive hereby agree that the payments, if any, to be received by Executive
      pursuant to this Article 5 shall be received by Executive as liquidated damages.
      

    5.8
      Other Benefits.
      This Agreement governs the rights and obligations of Executive and Company
      with
      respect to Executive’s base salary and certain perquisites of employment. Except
      as expressly provided herein, Executive’s rights and obligations both during the
      term of his employment and thereafter with respect to stock options, restricted
      stock, incentive and deferred compensation, life insurance policies insuring
      the
      life of Executive, and other benefits under the plans and programs maintained
      by
      Company shall be governed by the separate agreements, plans and other documents
      and instruments governing such matters. 

    ARTICLE
      6: PROTECTION OF
      CONFIDENTIAL INFORMATION

    6.1
      Disclosure to and
      Property of Company. All information, designs, ideas, concepts,
      improvements, product developments, discoveries and inventions, whether
      patentable or not, that are conceived, made, developed or acquired by Executive,
      individually or in conjunction with others, during the period of Executive’s
      employment by Company (whether during business hours or otherwise and whether
      on
      Company’s premises or otherwise) that relate to Company’s (or any of its
      affiliates’) business, trade secrets, products or services (including, without
      limitation, all such information relating to corporate opportunities, product
      specification, compositions, manufacturing and distribution methods and
      processes, research, financial and sales data, pricing terms, evaluations,
      opinions, interpretations, acquisitions prospects, the identity of customers
      or
      their requirements, the identity of key contacts within the customer’s
      organizations or within the organization of acquisition prospects, marketing
      and
      merchandising techniques, business plans, computer software or programs,
      computer software and database technologies, prospective names and marks)
      (collectively, “Confidential Information”) shall be disclosed to Company and are
      and shall be the sole and exclusive property of Company (or its affiliates).
      Moreover, all documents, videotapes, written presentations, brochures, drawings,
      memoranda, notes, records, files, correspondence, manuals, models,
      specifications, computer programs, E-mail,
      voice mail, electronic databases, maps, drawings,
      architectural renditions, models and all other writings or materials of any
      type
      embodying any of such information, ideas, concepts, improvements, discoveries,
      inventions and other similar forms of expression (collectively, “Work Product”)
      are and shall be the sole and exclusive property of Company (or its affiliates).
      Upon Executive’s termination of employment with Company, for any reason,
      Executive promptly shall deliver such Confidential Information and Work Product,
      and all copies thereof, to Company. 

     

    
      
         

      

      
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    6.2
      Disclosure to
      Executive. Company will disclose to Executive, or place Executive in a
      position to have access to or develop, Confidential Information and Work Product
      of Company (or its affiliates); and/or will entrust Executive with business
      opportunities of Company (or its affiliates); and/or will place Executive in
      a
      position to develop business good will on behalf of Company (or its affiliates).
      Executive agrees to preserve and protect the confidentiality of all Confidential
      Information or Work Product of Company (or its affiliates). 

    6.3
      No Unauthorized Use or
      Disclosure. Executive agrees that he will not, at any time during or
      after Executive’s employment by Company, make any unauthorized disclosure of,
      and will prevent the removal from Company premises of, Confidential Information
      or Work Product of Company (or its affiliates), or make any use thereof, except
      in the carrying out of Executive’s responsibilities during the course of
      Executive’s employment with Company. Executive shall use commercially reasonable
      efforts to cause all persons or entities to whom any Confidential Information
      shall be disclosed by him hereunder to observe the terms and conditions set
      forth herein as though each such person or entity was bound hereby. Executive
      shall have no obligation hereunder to keep confidential any Confidential
      Information if and to the extent disclosure thereof is specifically required
      by
      law; provided, however, that in the event disclosure is required by applicable
      law, Executive shall provide Company with prompt notice of such requirement
      prior to making any such disclosure, so that Company may seek an appropriate
      protective order. At the request of Company at any time, Executive agrees to
      deliver to Company all Confidential Information that he may possess or control.
      Executive agrees that all Confidential Information of Company (whether now
      or
      hereafter existing) conceived, discovered or made by him during the period
      of
      Executive’s employment by Company exclusively belongs to Company (and not to
      Executive), and Executive will promptly disclose such Confidential Information
      to Company and perform all actions reasonably requested by Company to establish
      and confirm such exclusive ownership. Affiliates of Company shall be third
      party
      beneficiaries of Executive’s obligations under this Article 6. As a result of
      Executive’s employment by Company, Executive may also from time to time have
      access to, or knowledge of, Confidential Information or Work Product of third
      parties, such as customers, suppliers, partners, joint venturers, and the like,
      of Company and its affiliates. Executive also agrees to preserve and protect
      the
      confidentiality of such third party Confidential Information and Work Product
      to
      the same extent, and on the same basis, as Company’s Confidential Information
      and Work Product. 

    6.4
      Ownership by Company.
If, during Executive’s employment by Company, Executive creates any
      work of authorship fixed in any tangible medium of expression that is the
      subject matter of copyright (such as videotapes, written presentations, or
      acquisitions, computer programs, E-mail, voice mail, electronic databases,
      drawings, maps, architectural renditions, models, manuals, brochures, or the
      like) relating to Company’s business, products, or services, whether such work
      is created solely by Executive or jointly with others (whether during business
      hours or otherwise
      and
      whether on Company’s premises or otherwise), including any Work Product, Company
      shall be deemed the author of such work if the work is prepared by Executive
      in
      the scope of Executive’s employment; or, if the work is not prepared by
      Executive within the scope of Executive’s employment but is specially ordered by
      Company as a contribution to a collective work, as a part of a motion picture
      or
      other audiovisual work, as a translation, as a supplementary work, as a
      compilation, or as an instructional text, then the work shall be considered
      to
      be work made for hire and Company shall be the author of the work. If such
      work
      is neither prepared by Executive within the scope of Executive’s employment nor
      a work specially ordered that is deemed to be a work made for hire, then
      Executive hereby agrees to assign, and by these presents does assign, to Company
      all of Executive’s worldwide right, title, and interest in and to such work and
      all rights of copyright therein.

     

    
      
         

      

      
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    6.5
      Assistance by
      Executive. During the period of Executive’s employment by Company and
      thereafter, Executive shall assist Company and its nominee, at any time, in
      the
      protection of Company’s (or its affiliates’) worldwide right, title and interest
      in and to Work Product and the execution of all formal assignment documents
      requested by Company or its nominee and the execution of all lawful oaths and
      applications for patents and registration of copyright in the United States
      and
      foreign countries. 

    6.6
      Remedies.
      Executive acknowledges that money damages would not be sufficient remedy for
      any
      breach of this Article 6 by Executive, and Company or its affiliates shall
      be
      entitled to enforce the provisions of this Article 6 by terminating payments
      then owing to Executive under this Agreement or otherwise and to specific
      performance and injunctive relief as remedies for such breach or any threatened
      breach. Such remedies shall not be deemed the exclusive remedies for a breach
      of
      this Article 6 but shall be in addition to all remedies available at law or
      in
      equity, including the recovery of damages from Executive and his agents.

    ARTICLE
      7:
NON-DISPARAGEMENT

    7.1
      Non-Disparagement.
During Executive’s employment with Company and following any
      termination of employment with Company, Executive agrees not to disparage,
      either orally or in writing, Company, any of its business, products, services
      or
      practices, or any of their directors, officers, agents, representatives,
      stockholders, employees or affiliates. 

    ARTICLE
      8:
MISCELLANEOUS

    8.1
      Indemnification.
Company agrees that, in the event Executive’s employment by Company or
      any subsidiary thereof or successor thereto shall be subject to an Involuntary
      Termination, Company shall continue to indemnify Executive following such
      Involuntary Termination to the fullest extent permitted by applicable law
      consistent with the Articles of Incorporation and By-Laws of Company in effect
      as of the date of the Involuntary Termination with respect to Executive’s sole,
      joint or concurrent negligence and any acts of or omissions he may have
      committed during the period during which he was an officer, director and/or
      employee of (a) Company, (b) any subsidiary thereof for which he
      served as an officer, director or employee at the request of Company, or
      (c) any successor thereto. 

     

    
      
         

      

      
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    8.2
      Payment Obligations
      Absolute. Except as specifically provided in Section 6.6,
      Company’s obligation to pay (or cause one of its subsidiaries to pay) Executive
      the amounts and to make the arrangements provided herein shall be absolute
      and
      unconditional and shall not be affected by any circumstances, including, without
      limitation, any set-off, counterclaim, recoupment, defense or other right which
      Company (including its subsidiaries) may have against him or anyone else. All
      amounts payable by Company (including its subsidiaries hereunder) shall be
      paid
      without notice or demand. Executive shall not be obligated to seek other
      employment in mitigation of the amounts payable or arrangements made under
      any
      provision of this Agreement, and, except as provided in Section 5.2(b)
      hereof, the obtaining of any such other employment shall in no event effect
      any
      reduction of Company’s obligations to make (or cause to be made) the payments
      and arrangements required to be made under this Agreement. 

    8.3
      Notices. For
      purposes of this Agreement, notices and all other communications provided for
      herein shall be in writing and shall be deemed to have been duly given when
      personally delivered or when mailed by United States registered or certified
      mail, return receipt requested, postage prepaid, addressed as follows:

     

    
      	
            	
            	
            
	If
              to Company to:	  	
              Energy
                XXI (Bermuda)
                Limited

              Canon’s
                Court

              22
                Victoria
                Street

              Hamilton
                HMEX

              Bermuda

              Attention:
                Chairman of the
                Board of Directors

            
	
            	
            
	
            	  	with
              a
              copy to:
	
            	
            
	
            	  	
              Energy
                XXI (Bermuda)
                Limited

              c/o
                Energy XXI U.S.A.,
                Inc.

              1021
                Main Street, Suite
                2626

              Houston,
                Texas
                77002

              United
                States of
                America

              Attention:
                Chairman of the
                Board of Directors

            
	
            	
            
	If
              to Executive to:	  	
              David
                West
                Griffin

              One
                Voss Park

              Houston,
                Texas
                77024

            

    

    or
      to such other address as either
      party may furnish to the other in writing in accordance herewith, except that
      notices or changes of address shall be effective only upon receipt.

    8.4
      Applicable Law.
This Agreement is entered into under, and shall be governed for all
      purposes by, the laws of the State of Texas. 

    8.5
      No Waiver. No
      failure by either party hereto at any time to give notice of any breach by
      the
      other party of, or to require compliance with, any condition or provision of
      this Agreement shall be deemed a waiver of similar or dissimilar provisions
      or
      conditions at the same or at any prior or subsequent time. 

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
    

    8.6
      Severability.
Any provision in this Agreement which is prohibited or unenforceable
      in
      any jurisdiction by reason of applicable law shall, as to such jurisdiction,
      be
      ineffective only to the extent of such prohibition or unenforceability without
      invalidating or affecting the remaining provisions hereof, and any such
      prohibition or unenforceability in any jurisdiction shall not invalidate or
      render unenforceable such provision in any other jurisdiction. 

    8.7
      Counterparts.
      This Agreement may be executed in one or more counterparts, each of which shall
      be deemed to be an original, but all of which together will constitute one
      and
      the same Agreement. 

    8.8
      Withholding of Taxes and
      Other Employee Deductions. Company may withhold from any benefits and
      payments made pursuant to this Agreement all federal, state, city and other
      taxes as may be required pursuant to any law or governmental regulation or
      ruling and all other normal employee deductions made with respect to Company’s
      employees generally. 

    8.9
      Headings. The
      paragraph headings have been inserted for purposes of convenience and shall
      not
      be used for interpretive purposes. 

    8.10
      Gender and
      Plurals. Wherever the context so requires, the masculine gender
      includes the feminine or neuter, and the singular number includes the plural
      and
      conversely. 

    8.11
      Assignment.
This Agreement shall be binding upon and inure to the benefit of
      Company and any successor of Company, by merger or otherwise. This Agreement
      shall also be binding upon and inure to the benefit of Executive and his estate.
      If Executive shall die prior to full payment of amounts due pursuant to this
      Agreement, such amounts shall be payable pursuant to the terms of this Agreement
      to his estate (other than amounts payable pursuant to Section 4.3(e), which
      shall be paid to Executive’s designated beneficiary or beneficiaries). Executive
      shall not have any right to pledge, hypothecate, anticipate or assign this
      Agreement or the rights hereunder, except by will or the laws of descent and
      distribution. 

    8.12
      Term. This
      Agreement has a term co-extensive with the term of employment provided in
      Section 3.1. Termination shall not affect any right or obligation of any
      party which is accrued or vested prior to such termination. The provisions
      of
      Section 3.5 and Articles 6 and 7 shall survive the termination of this
      Agreement. 

    8.13
      Entire Agreement.
This Agreement constitutes the entire agreement of the parties with
      regard to the subject matter hereof, and contains all the covenants, promises,
      representations, warranties and agreements between the parties with respect
      to
      such subject matter. Without limiting the scope of the preceding sentence,
      all
      understandings and agreements preceding the date of execution of this Agreement
      and relating to the subject matter hereof are hereby null and void and of no
      further force and effect, including, without limitation, all prior employment
      and severance agreements, if any, by and between Company and Executive. Any
      modification of this Agreement will be effective only if it is in writing and
      signed by the party to be charged. 

    [Signatures
      begin on next page.]

     

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    
    

    IN
      WITNESS WHEREOF,
the parties hereto have executed this Agreement on the 4th
      day of April, 2006, to be effective as of the Effective
      Date. 

     

    
      	
            	
            	
            	
            	
            
	Energy
              XXI (Bermuda) Limited
	
            	
            
	By:	 	/s/
              John D. Schiller
              Jr
	
            	 	Name: 	 	John
              D. Schiller Jr
	
            	 	Title:	 	Chairman
&
CEO
	
            
	COMPANY
	
            
	David
              West Griffin
	
            
	/s/
              David West
              Griffin
	
            
	EXECUTIVE

    

     

     

    
      
         

      

      
        16

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