Document:

PURCHASE AGREEMENT

 

September 23, 2013

 

Citigroup Global Markets Inc.

RBS Securities Inc.

 

As Representatives of the Initial Purchasers

 

c/o Citigroup Global Markets Inc.

388 Greenwich Street

New York, New York 10013

 

Ladies and Gentlemen:

 

Introductory. Energy XXI Gulf Coast,
Inc., a Delaware corporation (the “Company”), proposes to issue and sell to the several Initial Purchasers named
in Schedule A (the “Initial Purchasers”), acting severally and not jointly, the respective amounts
set forth in such Schedule A of $500,000,000 aggregate principal amount of the Company’s 7.50% Senior Notes due 2021
(the “Notes”). Citigroup Global Markets Inc. and RBS Securities Inc. have agreed to act as the representatives
of the several Initial Purchasers (the “Representatives”) in connection with the offering and sale of the Notes.

 

The Securities (as defined below) will be
issued pursuant to an indenture (the “Indenture”), to be dated as of the Closing Date (as defined in Section
2 hereof), among the Company, the Guarantors (as defined below) and Wells Fargo Bank, National Association, as trustee (the “Trustee”).
The Notes will be issued only in book-entry form in the name of Cede & Co., as nominee of The Depository Trust Company (the
“Depositary”).

 

The payment of principal of, premium on, if
any, and interest on the Notes will be unconditionally guaranteed on a senior unsecured basis, jointly and severally, by (i) Energy
XXI (Bermuda) Limited, a limited exempt company organized under the laws of Bermuda (the “Parent”), and (ii)
the Company’s subsidiaries listed on the signature page hereto (collectively, the “Subsidiaries”
and, together with the Parent, the “Initial Guarantors”) pursuant to their guarantees (the “Guarantees”).
Any subsidiary of the Company formed or acquired after the Closing Date that executes an additional guarantee in accordance
with the terms of the Indenture (together with the Initial Guarantors, the “Guarantors”) shall be deemed to
be a Guarantor. The Notes and the Guarantees attached thereto are herein collectively referred to as the “Securities.”

 

The Securities will be subject to a Registration
Rights Agreement to be dated as of the Closing Date (the “Registration Rights Agreement”) among the Company,
the Initial Guarantors and the Initial Purchasers, pursuant to which the Company and the Guarantors will agree to file with the
Commission (as defined below) (i) a registration statement under the Securities Act (as defined below) relating to another series
of debt securities of the Company and the guarantees of the Guarantors under the Indenture, each respectively with terms substantially
identical to the Notes (the “Exchange Notes”) and the Guarantees (the “Exchange Guarantees”)
to be offered in exchange for the Notes and the Guarantees (the “Exchange Offer”) and (ii) to the extent required
by the Registration Rights Agreement, a shelf registration statement pursuant to Rule 415 of the Securities Act relating to the
resale by certain holders of the Notes, and in each case, to use its reasonable best efforts to cause such registration statements
to be declared effective.

 

    	 

    	 

    

 

The Company understands that the Initial Purchasers
propose to make an offering of the Securities on the terms and in the manner set forth herein and in the Pricing Disclosure Package
and agrees that the Initial Purchasers may resell, subject to the conditions set forth herein, all or a portion of the Securities
to purchasers (the “Subsequent Purchasers”) on the terms set forth in the Pricing Disclosure Package. The Securities
are to be offered and sold to or through the Initial Purchasers without being registered with the Securities and Exchange Commission
(the “Commission”) under the Securities Act of 1933, as amended (the “Securities Act,” which
term, as used herein, includes the rules and regulations of the Commission promulgated thereunder), in reliance upon exemptions
therefrom. Pursuant to the terms of the Securities and the Indenture, investors who acquire Securities shall be deemed to have
agreed that the Securities may only be resold or otherwise transferred, after the date hereof, if such Securities are registered
for sale under the Securities Act or if an exemption from the registration requirements of the Securities Act is available (including
the exemptions afforded by Rule 144A under the Securities Act (“Rule 144A”) or Regulation S under the Securities
Act (“Regulation S”)).

 

As used herein, “Time of Sale”
means 5:13 p.m. Eastern time, on September 23, 2013.

 

The Company has prepared and delivered to
each Initial Purchaser copies of a preliminary offering memorandum, dated September 23, 2013 (the “Preliminary Offering
Memorandum”) and has prepared and delivered to each Initial Purchaser copies of a Pricing Supplement, dated September
23, 2013 (the “Pricing Supplement”), attached hereto as Annex II describing the terms of the Securities,
each for use by such Initial Purchaser in connection with its solicitation of offers to purchase the Securities. The Preliminary
Offering Memorandum and the Pricing Supplement are herein referred to collectively as the “Pricing Disclosure Package.”
The Company will prepare and deliver to each Initial Purchaser a final offering memorandum dated the date hereof (the “Final
Offering Memorandum”), in accordance with Section 3(a) hereof.

 

All references herein to the terms “Pricing
Disclosure Package” and “Final Offering Memorandum” shall be deemed to mean and include all information,
if any, filed prior to the Time of Sale under the Securities Exchange Act of 1934, as amended (the “Exchange Act,”
which term, as used herein, includes the rules and regulations of the Commission promulgated thereunder) and incorporated by reference
in the Pricing Disclosure Package (including the Preliminary Offering Memorandum) and the Final Offering Memorandum. All references
herein to the terms “amend,” “amendment” or “supplement” with respect
to the Final Offering Memorandum shall be deemed to mean and include all information, if any, filed after the Time of Sale and
in accordance with Section 3(a) hereof, under the Exchange Act and incorporated by reference in the Final Offering Memorandum.

 

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By this agreement (this “Agreement”),
the Company hereby confirms its agreements with the Initial Purchasers as follows:

 

SECTION 1.          
Representations and Warranties. Each of the Company and the Initial Guarantors, jointly and severally, hereby represents,
warrants and covenants to each Initial Purchaser that, as of the date hereof and as of the Closing Date (with references to the
Pricing Disclosure Package applying as of the Time of Sale and references to the Final Offering Memorandum applying as of the Closing
Date and if provided in any particular subsection below, as of its date):

 

(a)               
No Registration Required. Subject to compliance by the Initial Purchasers with the representations and warranties
set forth in Section 2 hereof and with the procedures set forth in Section 7 hereof, it is not necessary in connection with the
offer, sale and delivery of the Securities to the Initial Purchasers and to the Subsequent Purchasers in the manner contemplated
by this Agreement, the Pricing Disclosure Package and the Final Offering Memorandum to register the Securities under the Securities
Act or to qualify the Indenture under the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act,”
which term, as used herein, includes the rules and regulations of the Commission promulgated thereunder).

 

(b)              
No Integration, General Solicitation or Directed Selling Efforts. None of the Company, the Initial Guarantors, any
of their respective affiliates (as such term is defined in Rule 405 under the Securities Act) (each, an “Affiliate”)
or any person acting on its or any of their behalf (other than the Initial Purchasers and their Affiliates, as to whom the Company
and the Initial Guarantors make no representation or warranty) has, directly or indirectly, solicited any offer to buy or offered
to sell, or will, directly or indirectly, solicit any offer to buy or offer to sell, in the United States or to any United States
citizen or resident, any security which is or would be integrated with the sale of the Securities in a manner that would require
the Securities to be registered under the Securities Act. None of the Company, the Initial Guarantors, any of their respective
Affiliates or any person acting on its or any of their behalf (other than the Initial Purchasers and their Affiliates, as to whom
the Company and the Initial Guarantors make no representation or warranty) has engaged or will engage, in connection with the offering
of the Securities, in any form of general solicitation or general advertising within the meaning of Rule 502 under the Securities
Act. With respect to those Securities sold in reliance upon Regulation S, (i) none of the Company, the Initial Guarantors, any
of their respective Affiliates or any person acting on its or their behalf (other than the Initial Purchasers and their Affiliates,
as to whom the Company and the Initial Guarantors make no representation or warranty) has engaged or will engage in any directed
selling efforts within the meaning of Regulation S and (ii) each of the Company, the Initial Guarantors and their Affiliates and
any person acting on its or their behalf (other than the Initial Purchasers and their Affiliates, as to whom the Company and the
Initial Guarantors make no representation or warranty) has complied and will comply with the offering restrictions set forth in
Regulation S.

 

(c)               
Eligibility for Resale under Rule 144A. The Securities will not be, at the Closing Date, of the same class as securities
listed on a national securities exchange registered under Section 6 of the Exchange Act or quoted in a U.S. automated interdealer
quotation system within the meaning of Rule 144A.

 

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(d)              
The Pricing Disclosure Package and Final Offering Memorandum.

 

(A)            
Neither the Pricing Disclosure Package, as of the Time of Sale, nor the Final Offering Memorandum, as of its date or (as
amended or supplemented in accordance with Section 3(a), as applicable) as of the Closing Date, contains or will contain an untrue
statement of a material fact or omits or will omit to state a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading; provided that this representation, warranty
and agreement shall not apply to statements in or omissions from the Pricing Disclosure Package, the Final Offering Memorandum
or any amendment or supplement thereto made in reliance upon and in conformity with information furnished to the Company in writing
by the Representatives expressly for use in the Pricing Disclosure Package, the Final Offering Memorandum or any amendment or supplement
thereto, as the case may be.

 

(B)             
The Pricing Disclosure Package contains, and the Final Offering Memorandum will contain, all the information specified in,
and meeting the requirements of, Rule 144A.

 

(e)               
Company Additional Written Communications. The Company has not prepared, made, used, authorized, approved or distributed
and, without the prior written consent of the Representatives, will not prepare, make, use, authorize, approve or distribute any
written communication that constitutes an offer to sell or solicitation of an offer to buy the Securities other than (i) the Pricing
Disclosure Package, (ii) the Final Offering Memorandum and (iii) any electronic road show or other written communications listed
on Annex III attached hereto, in each case used in accordance with Section 3(a). Each such communication by the Company
or its agents and representatives pursuant to clause (iii) of the preceding sentence (each, a “Company Additional Written
Communication”), when taken together with the Pricing Disclosure Package, did not as of the Time of Sale, and at the
Closing Date will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not misleading; provided that this representation,
warranty and agreement shall not apply to statements in or omissions from each such Company Additional Written Communication made
in reliance upon and in conformity with information furnished to the Company or the Initial Guarantors in writing by the Representatives
expressly for use in the Pricing Disclosure Package or any Company Additional Written Communication.

 

(f)               
The Purchase Agreement. This Agreement has been duly authorized, executed and delivered by the Company and the Initial
Guarantors.

 

(g)              
Authorization, Execution and Enforceability of the Notes and the Guarantees. The Notes to be purchased by the Initial
Purchasers from the Company will on the Closing Date be substantially in the form contemplated by the Indenture, have been duly
authorized for issuance and sale pursuant to this Agreement and the Indenture and, at the Closing Date, will have been duly executed
by the Company and, when authenticated in the manner provided for in the Indenture and delivered against payment of the purchase
price therefor, will constitute valid and binding obligations of the Company, enforceable against it in accordance with their terms,
except as the enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating
to or affecting the rights and remedies of creditors or by general equitable principles (regardless of whether enforcement is considered
in a proceeding in equity or at law) and will be entitled to the benefits of the Indenture. The Guarantees have been duly authorized
for issuance pursuant to this Agreement and the Indenture, and at the Closing Date, will have been duly executed by each of the
Initial Guarantors and, when the Indenture has been duly authorized, executed and delivered by the Company and the Trustee and
when the Notes have been authenticated in the manner provided for in the Indenture and issued and delivered against payment of
the purchase price therefor, the Guarantees of the Notes will constitute valid and binding agreements of the Initial Guarantors,
enforceable against the respective Initial Guarantors in accordance with their terms, except as the enforcement thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the rights and remedies
of creditors or by general equitable principles (regardless of whether enforcement is considered in a proceeding in equity or at
law) and will be entitled to the benefits of the Indenture.

 

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(h)              
Authorization, Execution and Enforceability of the Exchange Notes and the Exchange Guarantees. The Exchange Notes
have been duly authorized for issuance and (A) when issued will be substantially in the form contemplated by the Indenture, (B)
when executed by the Company and issued and authenticated in the manner provided for in the Indenture in exchange for the Notes,
constitute valid and binding obligations of the Company, enforceable against it in accordance with their terms, except as the enforcement
thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the
rights and remedies of creditors or by general equitable principles (regardless of whether enforcement is considered in a proceeding
in equity or at law) and (C) will be entitled to the benefits of the Indenture. The Exchange Guarantees have been duly authorized
for issuance pursuant to the Indenture and when issued and executed by each of the Guarantors and when the Exchange Notes have
been issued and authenticated in the manner provided for in the Indenture in exchange for the Notes, will constitute valid and
binding agreements of the Guarantors, enforceable against the respective Guarantors in accordance with their terms, except as the
enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting
the rights and remedies of creditors or by general equitable principles (regardless of whether enforcement is considered in a proceeding
in equity or at law) and (C) be entitled to the benefits of the Indenture.

 

(i)                
Authorization, Execution and Enforceability of the Indenture and the Registration Rights Agreement. Each of the Indenture
and the Registration Rights Agreement has been duly authorized by the Company and the Initial Guarantors and, at the Closing Date,
will have been duly executed and delivered by the Company and the Initial Guarantors and, assuming the due authorization, execution
and delivery thereof by the other parties thereto, will constitute a valid and binding agreement of the Company and the Initial
Guarantors, enforceable against the Company and the Initial Guarantors in accordance with its terms, except as the enforcement
thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting the
rights and remedies of creditors or by general equitable principles (regardless of whether enforcement is considered in a proceeding
in equity or at law) and except as rights to indemnification may be limited by applicable law.

 

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(j)                
Descriptions of the Securities, the Exchange Securities, the Indenture, and the Registration Rights Agreement. The
Securities, the Exchange Securities, the Indenture and the Registration Rights Agreement will conform in all material respects
to the respective descriptions thereof contained in the Pricing Disclosure Package and the Final Offering Memorandum.

 

(k)              
Capitalization. As of June 30, 2013, the Company had an authorized and outstanding capitalization as set forth in
the Pricing Disclosure Package and the Final Offering Memorandum.

 

(l)                
Formation. The Company has been duly incorporated and is validly existing as a corporation in good standing under
the laws of the state of Delaware, with full corporate power and authority to (A) own, lease and operate its properties and conduct
its business as described in the Pricing Disclosure Package and the Final Offering Memorandum, (B) execute and deliver this Agreement,
the Indenture and the Registration Rights Agreement and (C) issue, sell and deliver the Notes as contemplated herein. Each of the
Initial Guarantors has been duly incorporated or formed and is currently existing as a corporation, limited liability company or
limited exempt company, as applicable, and is in good standing under the laws of the jurisdiction of its incorporation or organization,
with full corporate or limited liability company power and authority to own, lease and operate its properties and to conduct its
business as currently conducted or as it is proposed to be conducted as described in the Pricing Disclosure Package and the Final
Offering Memorandum.

 

(m)            
Foreign Qualification. The Company and each of the Initial Guarantors is duly qualified to do business as a corporation
or limited liability company and is in good standing in each jurisdiction where the ownership or leasing of its properties or the
conduct of its business requires such qualification, except where the failure to be so qualified and in good standing would not,
individually or in the aggregate, either (i) have a material adverse effect on the business, properties, financial condition, results
of operations or prospects of the Company and the Initial Guarantors, taken as a whole or (ii) prevent or materially interfere
with consummation of the transactions contemplated hereby (the occurrence of any such effect or any such prevention or interference
or any such result described in the foregoing clauses (i) and (ii) being herein referred to as a “Material Adverse Effect”).

 

(n)              
Subsidiaries. The Company has no subsidiaries (as defined under the Securities Act) other than the Subsidiaries;
the Company, directly or indirectly, owns all of the issued and outstanding capital stock or membership interests of each of the
Subsidiaries; other than the capital stock or membership interests of the Subsidiaries, the Company does not own, directly or indirectly,
any shares of stock or any other equity interests or long-term debt securities of any corporation, firm, partnership, joint venture,
association or other entity; complete and correct copies of the Memorandum of Association, Bye-Laws, Certificate of Incorporation
or Certificate of Designation or any of the organizational documents (collectively “Organizational Documents”)
of the Company, the Parent and each of the Subsidiaries and all amendments thereto have been delivered to you; all of the outstanding
shares of capital stock or membership interests of each of the Subsidiaries have been duly authorized and validly issued, are fully
paid and non-assessable, have been issued in compliance with all applicable securities laws, were not issued in violation of any
preemptive right, resale right, right of first refusal or similar right and, except for liens pursuant to the Second Amended and
Restated First Lien Credit Agreement, dated May 5, 2011, among the Company, various financial institutions, as lenders, The Royal
Bank of Scotland plc, as Administrative Agent, RBS Securities Inc., BNP Paribas Securities Corp. and UBS Securities LLC, as Joint
Lead Arrangers and Joint Bookrunners, BNP Paribas Securities Corp. and UBS Loan Finance LLC, as Co-Syndication Agents, and Capital
One, National Association and Regions Bank, as Co-Documentation Agents, as amended (the “First Lien Facility”),
are owned by the Company subject to no security interest, other encumbrance or adverse claims; and no options, warrants or other
rights to purchase, agreements or other obligations to issue or other rights to convert any obligation into shares of capital stock
or ownership interests in the Subsidiaries are outstanding.

 

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(o)              
No Existing Default. None of the Company, the Parent or any of the Subsidiaries is in breach or violation of or in
default under (nor has any event occurred which, with notice, lapse of time or both, would result in any breach or violation of,
constitute a default under or give the holder of any indebtedness (or a person acting on such holder’s behalf) the right
to require the repurchase, redemption or repayment of all or a part of such indebtedness under) (A) its Organizational Documents,
or (B) any indenture, mortgage, deed of trust, bank loan or credit agreement or other evidence of indebtedness, or any license,
lease, contract or other agreement or instrument to which it is a party or by which it or any of its properties may be bound or
affected, or (C) any federal, state, local or foreign law, regulation or rule, or (D) any rule or regulation of any self-regulatory
organization or other non-governmental regulatory authority, or (E) any decree, judgment or order applicable to it or any of its
properties, except for such breaches, violations or defaults pursuant to subsection (B), (C), (D) or (E) as would not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(p)              
No Conflicts. The execution, delivery and performance of this Agreement, the Indenture, and the Registration Rights
Agreement, the issuance and sale of the Securities, and the consummation of the transactions contemplated hereby and thereby will
not conflict with, result in any breach or violation of or constitute a default under (nor constitute any event which, with notice,
lapse of time or both, would result in any breach or violation of, constitute a default under or give the holder of any indebtedness
(or a person acting on such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a part
of such indebtedness under) (or result in the creation or imposition of a lien, charge or encumbrance on any property or assets
of the Company or any Subsidiary pursuant to) (A) the Organizational Documents of the Company, the Parent or any of the Subsidiaries,
or (B) any indenture, mortgage, deed of trust, bank loan or credit agreement or other evidence of indebtedness, or any license,
lease, contract or other agreement or instrument to which the Parent, the Company or any of the Subsidiaries is a party or by which
any of them or any of their respective properties may be bound or affected, or (C) any federal, state, local or foreign law, regulation
or rule, or (D) any rule or regulation of any self-regulatory organization or other non-governmental regulatory authority or (E)
any decree, judgment or order applicable to the Parent, the Company or any of the Subsidiaries or any of their respective properties,
except for such breaches, violations or defaults pursuant to subsection (B), (C), (D) or (E) as would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

 

(q)              
No Consents. Assuming the accuracy of the representations, warranties and covenants of the Initial Purchasers set
forth herein and except for (i) such consents, approvals, authorizations, registrations or qualifications as may be required under
the Securities Act or the securities law of the several states of the United States with respect to the Company’s and Initial
Guarantors’ obligations under the Registration Rights Agreement and the purchase and distribution of the Securities by the
Initial Purchasers, (ii) such consents that have been, or prior to the Closing Date and the Time of Sale will be, obtained and
(iii) such consents that, if not obtained, would not, individually or in the aggregate, have a Material Adverse Effect, no approval,
authorization, consent or order of or filing with any federal, state, local or foreign governmental or regulatory commission, board,
body, authority or agency, or of or with any self-regulatory organization or other non-governmental regulatory authority, or approval
of the stockholders of the Company, is required in connection with the issuance and sale of the Securities or the consummation
of the transactions contemplated hereby.

 

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(r)                
Authority to Conduct Business. Each of the Company and the Initial Guarantors has all necessary licenses, authorizations,
consents and approvals and has made all necessary filings required under any applicable law, regulation or rule, and has obtained
all necessary licenses, authorizations, consents and approvals from other persons, in order to conduct their respective businesses;
neither the Company nor any of the Initial Guarantors is in violation of, or in default under, or has received notice of any proceedings
relating to revocation or modification of, any such license, authorization, consent or approval or any federal, state, local or
foreign law, regulation or rule or any decree, order or judgment applicable to the Company or any of the Initial Guarantors, except
where such violation, default, revocation or modification would not, individually or in the aggregate, have a Material Adverse
Effect.

 

(s)               
No Legal Action. There are no actions, suits, claims, investigations or proceedings pending or, to the Company’s
knowledge, threatened to which the Company or any of the Initial Guarantors or any of their respective properties is or would be
subject at law or in equity, before or by any federal, state, local or foreign governmental or regulatory commission, board, body,
authority or agency, or before or by any self-regulatory organization or other non-governmental regulatory authority, except any
such action, suit, claim, investigation or proceeding which, if resolved adversely to the Company or any Initial Guarantor, would
not, individually or in the aggregate, have a Material Adverse Effect.

 

(t)                
Auditor. UHY LLP, whose reports on (i) the consolidated financial statements of the Parent and the Subsidiaries and
(ii) the consolidated financial statements of the Company, are included or incorporated by reference in the Pricing Disclosure
Package and the Final Offering Memorandum, are independent registered public accountants as required by the Securities Act and
by the rules of the Public Company Accounting Oversight Board.

 

(u)              
Financial Statements. The financial statements included or incorporated by reference in the Pricing Disclosure Package
and the Final Offering Memorandum, together with the related notes and schedules, present fairly the consolidated financial position
of the Parent and its consolidated subsidiaries or the Company and its consolidated subsidiaries, as the case may be, as of the
dates indicated and the consolidated results of operations, comprehensive income, stockholders’ equity and cash flows of
the Parent and its consolidated subsidiaries or the Company and its consolidated subsidiaries, as the
case may be, for the periods specified and have been prepared in compliance with the requirements of the Securities Act
and Exchange Act and in conformity with U.S. generally accepted accounting principles applied on a consistent basis during the
periods involved; all pro forma financial statements or data included or incorporated by reference in the Pricing Disclosure Package
and the Final Offering Memorandum comply in all material respects with the requirements of the Securities Act and the Exchange
Act, and the assumptions used in the preparation of such pro forma financial statements and data are reasonable, the pro forma
adjustments used therein are appropriate to give effect to the transactions or circumstances described therein and the pro forma
adjustments have been properly applied to the historical amounts in the compilation of those statements and data; the other financial
and statistical data contained or incorporated by reference in the Pricing Disclosure Package and the Final Offering Memorandum
are accurately and fairly presented and prepared on a basis consistent with the financial statements and books and records of the
Parent and the Company; there are no financial statements (historical or pro forma) that would be required to be included or incorporated
by reference in a prospectus filed with the Commission under the Securities Act that are not included or incorporated by reference
as required; the Parent, the Company and the Subsidiaries do not have any material liabilities
or obligations, direct or contingent (including any off-balance sheet obligations), not described in the Pricing Disclosure Package
and the Final Offering Memorandum.

 

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(v)              
No Material Changes. Subsequent to June 30, 2013, there has not been (i) any material adverse change, or any development
involving a prospective material adverse change, in the business, properties, management, financial condition or results of operations
of the Company and the Initial Guarantors taken as a whole, (ii) any transaction which is material to the Company and the Initial
Guarantors taken as a whole, (iii) any obligation or liability, direct or contingent (including any off-balance sheet obligations),
incurred by the Company or any Initial Guarantor, which is material to the Company and the Initial Guarantors taken as a whole,
(iv) any change in the capital stock or outstanding indebtedness of the Company or any Initial Guarantor or (v) any dividend or
distribution of any kind declared, paid or made on the capital stock of the Company or any Initial Guarantor, in each case other
than as described in the Pricing Disclosure Package and the Final Offering Memorandum.

 

(w)            
Investment Company. None of the Company, the Parent or any Subsidiary is, and at no time during the Distribution
Period (as defined herein) will any of them be, and, after giving effect to the offering and sale of the Securities and the application
of the proceeds thereof, none of them will be, an “investment company” or an entity “controlled” by an
“investment company,” as such terms are defined in the Investment Company Act of 1940, as amended (the “Investment
Company Act”).

 

(x)              
Title to Assets. The Company and each of the Initial Guarantors have generally satisfactory title to their respective
oil and gas properties, title investigations having been carried out by the Company or the Initial Guarantors in accordance with
common practice in the oil and gas industry in the areas in which the Company and the Initial Guarantors operate, and good and
marketable title to the other real and personal property reflected in the Pricing Disclosure Package and the Final Offering Memorandum
as being owned by any of them, free and clear of all liens, claims, security interests or other encumbrances, except as described
in the Pricing Disclosure Package and the Final Offering Memorandum, and the First Lien Facility, or as would not reasonably be
expected, individually or in the aggregate, to have a Material Adverse Effect; all the property described in the Pricing Disclosure
Package and the Final Offering Memorandum as being held under lease by the Company or an Initial Guarantor is held thereby under
valid, subsisting and enforceable leases, except (i) as described, and subject to limitations contained, in the Pricing Disclosure
Package and the Final Offering Memorandum or (ii) such as do not materially interfere with the use of such properties taken as
a whole as they have been used in the past and are proposed to be used in the future as described in the Pricing Disclosure Package
and the Final Offering Memorandum; the working interests derived from oil, gas and mineral leases or mineral interests which constitute
a portion of the real property held or leased by the Company and the Initial Guarantors reflect in all material respects the right
of the Company and the Initial Guarantors to explore, develop or produce hydrocarbons from such real property, and the care taken
by the Company and Initial Guarantors with respect to acquiring or otherwise procuring such leases or other property interests
was generally consistent with standard industry practices in the areas in which the Company and the Initial Guarantors operate
for acquiring or procuring leases and interests therein to explore, develop or produce hydrocarbons.

 

    	-9-

    	 

    

 

(y)              
Labor. None of the Parent, the Company or any of the Subsidiaries is engaged in any unfair labor practice; except
for matters which would not, individually or in the aggregate, have a Material Adverse Effect, (i) there is (A) no unfair labor
practice complaint pending or, to the Company’s knowledge, threatened against the Parent, the Company or any of the Subsidiaries
before the National Labor Relations Board, and no grievance or arbitration proceeding arising out of or under collective bargaining
agreements is pending or, to the Company’s knowledge, threatened, (B) no strike, labor dispute, slowdown or stoppage pending
or, to the Company’s knowledge, threatened against the Parent, the Company or any of the Subsidiaries and (C) no union representation
dispute currently existing concerning the employees of the Parent, the Company or any of the Subsidiaries, (ii) to the Company’s
knowledge, no union organizing activities are currently taking place concerning the employees of the Parent, the Company or any
of the Subsidiaries and (iii) there has been no violation of any federal, state, local or foreign law relating to discrimination
in the hiring, promotion or pay of employees, any applicable wage or hour laws or any provision of the Employee Retirement Income
Security Act of 1974, as amended, or the rules and regulations promulgated thereunder concerning the employees of the Parent, the
Company or any of the Subsidiaries.

 

(z)               
Environmental Matters. Except as would not, individually or in the aggregate, result in a Material Adverse Effect:
(i) the Parent, the Company and the Subsidiaries and their respective properties, assets and operations are in compliance with,
and the Parent, the Company and each of the Subsidiaries hold all permits, authorizations and approvals required under, Environmental
Laws (as defined below); (ii) there are no events, conditions or circumstances known to the Company that would reasonably be expected
to give rise to any costs or liabilities to the Parent, the Company or any Subsidiary under Environmental Laws; and (iii) none
of the Parent, the Company or any of the Subsidiaries has received any written notice of an action, suit, claim, investigation,
notice of violation, judgment, order or proceeding, in each case relating to any liability under any Environmental Law or any release
or, to the Company’s knowledge, threatened release of any Hazardous Materials (as defined below) by the Parent, the Company
or any of the Subsidiaries (as used herein, “Environmental Law” means any federal, state or local law, statute,
ordinance, rule (including, without limitation, rules of common law), regulation, order, decree, judgment, injunction, permit,
license, authorization or other legally enforceable binding requirement relating to health or safety (to the extent such health
or safety relates to exposure to Hazardous Materials) or the protection of the environment or natural resources, including those
relating to the distribution, generation, treatment, storage, disposal, transportation or release of Hazardous Materials, and “Hazardous
Materials” means any material (including, without limitation, pollutants, contaminants, hazardous or toxic substances
or wastes) that is regulated by or that gives rise to liability under any Environmental Law).

 

    	-10-

    	 

    

 

(aa)           
Tax Returns. All tax returns required to be filed by the Parent, the Company or any of the Subsidiaries have been
timely filed, and all taxes and other assessments of a similar nature (whether imposed directly or through withholding) including
any interest, additions to tax or penalties applicable thereto due or claimed to be due from such entities have been timely paid,
other than those being contested in good faith and for which adequate reserves have been provided.

 

(bb)          
Insurance Coverage. The Parent, the Company and each of the Subsidiaries maintain insurance covering their respective
properties, operations, personnel and businesses as the Company reasonably deems adequate; such insurance insures against such
losses and risks to an extent which the Company believes is adequate in accordance with customary industry practice to protect
the Parent, the Company and the Subsidiaries and their respective businesses; all such insurance is fully in force on the date
hereof and will be fully in force at the time of purchase and each additional time of purchase, if any, except as described in
the Pricing Disclosure Package and the Final Offering Memorandum; none of the Parent, the Company or any Subsidiary has reason
to believe that it will not be able to renew any such insurance as and when such insurance expires.

 

(cc)           
No Contract Termination. None of the Parent, the Company or any Subsidiary has sent or received any communication
regarding termination of, or intent not to renew, any of the contracts or agreements referred to or described in the Pricing Disclosure
Package or the Final Offering Memorandum, no such termination or non-renewal has been threatened by the Parent, the Company or
any Subsidiary or, to the Company’s knowledge, any other party to any such contract or agreement.

 

(dd)         
Maintenance of Internal Controls. The Parent, the Company and each of the Subsidiaries maintain a system of internal
accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s
general or specific authorization; (ii) transactions are recorded as necessary to permit preparation of financial statements in
conformity with generally accepted accounting principles and to maintain accountability for assets; (iii) access to assets is permitted
only in accordance with management’s general or specific authorization; (iv) the recorded accountability for assets is compared
with existing assets at reasonable intervals and appropriate action is taken with respect to any differences; and (v) the interactive
data in eXtensible Business Reporting Language included or incorporated by reference in the Final Offering Memorandum and the Pricing
Disclosure Package fairly presents the information called for in all material respects and has been prepared in accordance with
the Commission’s rules and guidelines applicable thereto.

 

(ee)           
Disclosure and Control Procedures. The Parent has established and maintains and evaluates “disclosure controls
and procedures” (as such term is defined in Rule 13a-15 and 15d-15 under the Exchange Act) and “internal control over
financial reporting” (as such term is defined in Rule 13a-15 and 15d-15 under the Exchange Act); such disclosure controls
and procedures are designed to ensure that material information relating to the Parent, including its consolidated subsidiaries,
is made known to the Parent’s Chief Executive Officer and its Chief Financial Officer by others within those entities, and
such disclosure controls and procedures are effective to perform the functions for which they were established; the Parent’s
independent registered public accountants and the Audit Committee of the Board of Directors of the Parent have been advised of:
(i) all significant deficiencies, if any, in the design or operation of internal controls which could adversely affect the Parent’s
ability to record, process, summarize and report financial data; and (ii) all fraud, if any, whether or not material, that involves
management or other employees who have a role in the Parent’s internal controls; all “significant deficiencies”
and “material weaknesses” (as such terms are defined in Rule 1-02(a)(4) of Regulation S-X under the Act) of the Parent,
if any, have been identified to the Parent’s independent registered public accountants and are disclosed in the Pricing Disclosure
Package and the Final Offering Memorandum the date of the most recent evaluation of such disclosure controls and procedures and
internal controls, there have been no significant changes in internal controls or in other factors that could significantly affect
internal controls, including any corrective actions with regard to significant deficiencies and material weaknesses; the principal
executive officers (or their equivalents) and principal financial officers (or their equivalents) of the Parent have made all certifications
required by the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) and any related rules and regulations
promulgated by the Commission, and the statements contained in each such certification are complete and correct; the Parent and
the Parent’s directors and officers are each in compliance in all material respects with all applicable effective provisions
of the Sarbanes-Oxley Act and the rules and regulations of the Commission promulgated thereunder.

 

    	-11-

    	 

    

 

(ff)            
XBRL. The interactive data in eXtensible Business Reporting Language incorporated by reference in the Pricing Disclosure
Package and the Final Offering Memorandum fairly presents the information called for in all material respects and has been prepared
in accordance with the Commission’s rules and guidelines applicable thereto.

 

(gg)          
Forward Looking Statements. Each “forward-looking statement” (within the meaning of Section 27A of the
Act or Section 21E of the Exchange Act) contained or incorporated by reference in the Pricing Disclosure Package and the Final
Offering Memorandum has been made or reaffirmed with a reasonable basis and in good faith.

 

(hh)          
Statistical or Market-Related Data. All statistical or market-related data included or incorporated by reference
in the Pricing Disclosure Package and the Final Offering Memorandum are based on or derived from sources that the Company reasonably
believes to be reliable and accurate.

 

(ii)              
Illegal Payments. None of the Parent, the Company or any of the Subsidiaries nor, to the Company’s knowledge,
any employee or agent of the Parent, the Company or any Subsidiary has made any payment of funds of the Company or any Subsidiary
or received or retained any funds in violation of any law, rule or regulation (including, without limitation, the Foreign Corrupt
Practices Act of 1977), which payment, receipt or retention of funds is of a character required to be disclosed in Pricing Disclosure
Package and the Final Offering Memorandum.

 

    	-12-

    	 

    

 

(jj)              
Money Laundering Laws. The operations of the Parent, the Company and the Subsidiaries are and have been conducted
at all times in compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions
Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the rules and regulations thereunder and
any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively,
the “Money Laundering Laws”); and no action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator or nongovernmental authority involving the Parent, the Company or any of the Subsidiaries with
respect to the Money Laundering Laws is pending or, to the Company’s knowledge, threatened.

 

(kk)          
OFAC Sanctions. None of the Parent, the Company or any of the Subsidiaries nor, to the knowledge of the Company,
any director, officer, agent, employee or Affiliate of the Parent, the Company or any of the Subsidiaries is currently subject
to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”);
and the Company will not directly or indirectly use the proceeds of the offering of the Securities contemplated hereby, or lend,
contribute or otherwise make available such proceeds to the Parent, any Subsidiary, joint venture partner or other person or entity
for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC.

 

(ll)              
Independent Petroleum Engineers. Netherland, Sewell & Associates, Inc. (“NSAI”), whose reports
regarding the oil and gas reserves of the Parent and the Subsidiaries (the “Reserve Report”) are referenced
in the Pricing Disclosure Package and the Final Offering Memorandum, and who has delivered the letter referenced in Section 5(h)
hereof, was, as of the date of such reports, and is, as of the date hereof, an independent engineering firm with respect to the
Parent.

 

(mm)      
Information Underlying Reserve Report. The factual information underlying the estimates of proved oil and gas reserves
of the Parent and the Subsidiaries, which was supplied by the Parent and the Subsidiaries to NSAI for the purposes of auditing
such proved oil and natural gas reserves included in the Reserve Report, including, without limitation, production volumes, costs
of operation and development, current prices for production, agreements relating to current and future operations and sales of
production, was true and correct in all material respects on the dates such estimates were made and such information was supplied
and was prepared in accordance with customary industry practices; other than normal production of the reserves and intervening
market commodity price fluctuations, the Parent and the Subsidiaries are not aware of any facts or circumstances that would result
in a material adverse change in the reserves, or the present value of future net cash flows therefrom, as described in the Pricing
Disclosure Package and the Final Offering Memorandum and as reflected in the Reserve Report; estimates of such reserves and present
values as described in the Pricing Disclosure Package and the Final Offering Memorandum and reflected in the Reserve Report comply
in all material respects with the applicable requirements of Regulation S-X and Subpart 1200 of Regulation S-K under the Securities
Act.

 

(nn)          
Gas Imbalances; Prepayments. On a net basis there are no gas imbalances, take-or-pay or other prepayments that would
require the Company or any of the Subsidiaries to deliver hydrocarbons produced from the oil and gas properties at some future
time without then or thereafter receiving full payment therefor exceeding one-half bcf of gas (on an mcf equivalent basis) in the
aggregate, other than as would not result in a Material Adverse Effect.

 

    	-13-

    	 

    

 

(oo)          
Subsidiary Distributions. No Subsidiary is currently prohibited, directly or indirectly, from paying any dividends
to the Company, from making any other distribution on such Subsidiary’s capital stock, from repaying the Company any loans
or advances to such Subsidiary from the Company or from transferring any of such Subsidiary’s property or assets to the Company
or any other Subsidiary of the Company, except as described in the Pricing Disclosure Package and the Final Offering Memorandum.

 

(pp)          
Finder’s or Broker’s or Agent’s Commissions. Except pursuant to this Agreement, neither the Company
nor any of the Initial Guarantors has incurred any liability for any finder’s or broker’s fee or agent’s commission
in connection with the execution, delivery and performance of this Agreement.

 

(qq)          
Price Stabilization or Manipulation. None of the Parent, the Company or any of the Subsidiaries or any of their respective
directors, officers, Affiliates or controlling persons has taken, directly or indirectly, any action designed, or which has constituted
or might reasonably be expected to cause or result in the stabilization or manipulation of the price of any security of the Company
to facilitate the sale or resale of the Securities.

 

(rr)             
Regulation S. The Company and the Initial Guarantors and their respective Affiliates and all persons acting on their
behalf (other than Initial Purchasers and their Affiliates, as to whom the Company and the Initial Guarantors make no representation)
have complied with and will comply with the offering restrictions requirements of Regulation S in connection with the offering
of the Securities outside the United States and, in connection therewith, the Preliminary Offering Memorandum contains, and the
Final Offering Memorandum will contain, the disclosure required by Rule 902. The Securities sold in reliance on Regulation S will
be represented upon issuance by a temporary global security that may not be exchanged for definitive securities until the expiration
of the 40-day restricted period referred to in Rule 903 of the Securities Act and only upon certification of beneficial ownership
of such Securities by non-U.S. persons or U.S. person who purchased such Securities in transactions that were exempt from the registration
requirements of the Securities Act.

 

Any certificate signed by an officer of the
Company or any Initial Guarantor and delivered to the Initial Purchasers or to counsel for the Initial Purchasers shall be deemed
to be a representation and warranty by the Company or such Initial Guarantor to each Initial Purchaser as to the matters set forth
therein.

 

SECTION 2.          
Purchase, Sale and Delivery of the Securities.

 

(a)               
The Securities. Each of the Company and the Initial Guarantors agrees to issue and sell to the Initial Purchasers
all of the Securities, and the Initial Purchasers agree, severally and not jointly, to purchase from the Company and the Initial
Guarantors the aggregate principal amount of Securities set forth opposite their names on Schedule A at a purchase price of 98.50%
of the principal amount thereof, payable on the Closing Date, on the basis of the representations, warranties and agreements herein
contained, and upon the terms and subject to the conditions thereto, herein set forth.

 

    	-14-

    	 

    

 

(b)              
The Closing Date. Delivery of certificates for the Securities to be purchased by the Initial Purchasers and payment
therefor shall be made at the offices of Baker Botts L.L.P., 910 Louisiana, Houston, Texas 77002 (or such other place as may be
agreed to by the Company and the Representatives at 9:00 a.m. Eastern time, on September 26, 2013, or such other time and date
as the Representatives shall designate by notice to the Company and the Company shall agree to (the time and date of such closing
are called the “Closing Date”).

 

(c)               
Delivery of the Securities. On the Closing Date, the Company shall deliver, or cause to be delivered, to the Representatives
for the accounts of the several Initial Purchasers certificates in global form representing the Notes against payment of the purchase
price by wire transfer of immediately available funds to the account specified by the Company. The global certificates for the
Notes shall be in such denominations and registered in the name of Cede & Co., as nominee of the Depositary.

 

(d)              
Initial Purchasers as Qualified Institutional Buyers. Each Initial Purchaser severally and not jointly represents
and warrants to, and agrees with, the Company that:

 

                                                            
(i)           
it will offer and sell Securities only (a) to persons who it reasonably believes are “qualified institutional buyers”
within the meaning of Rule 144A (“Qualified Institutional Buyers”) in transactions meeting the requirements
of Rule 144A or (b) upon the terms and conditions set forth in Annex I to this Agreement;

 

                                                            
(ii)           it is a Qualified Institutional Buyer within the meaning of Rule 144A; and

 

                                                            
(iii)          it will not offer or sell Securities by any form of general solicitation or general advertising, including but not limited
to the methods described in Rule 502(c) under the Securities Act.

 

(e)               
Exemption from Registration. Each Initial Purchaser acknowledges that it is purchasing the Securities pursuant to
a private sale exemption from registration under the Act, and that the Securities have not been registered under the Act and may
not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption
from the registration requirements of the Securities Act. Each Initial Purchaser, severally and not jointly, represents, warrants
and covenants to the Company that:

 

                                                            
(i)           
Neither it, nor any person acting on its behalf, has or will solicit offers for, or offer or sell, the Securities by any
form of general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) or in any
manner involving a public offering within the meaning of Section 4(2) of the Act, and it has and will solicit offers for the
Securities only from, and will offer and sell the Securities only to persons contemplated by Section 2(d)(i) above.

 

    	-15-

    	 

    

 

                                                            
(ii)           With respect to offers and sales outside the United States, the Initial Purchaser has offered the Securities and will offer
and sell the Securities only in accordance with Annex I hereto. Accordingly, neither the Initial Purchasers nor any
person acting on their behalf has engaged or will engage in any directed selling efforts (within the meaning of Regulation S) with
respect to the Securities, and any such persons have complied and will comply with the offering restrictions requirements of Regulation S.
Terms used in this Section 2(e)(ii) have the meanings given to them by Regulation S.

 

                                                            
(iii)          The Initial Purchasers agree that they and each of their Affiliates will not offer or sell the Securities in the United
States by means of any form of general solicitation or general advertising within the meaning of Rule 502(c), including, but not
limited to any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast
over television or radio. The Initial Purchasers agree, with respect to resales made in reliance on Rule 144A of the Securities
Act, to deliver either with the confirmation of such resale or otherwise prior to settlement of such resale a notice to the effect
that the resale of such Securities has been made in reliance upon the exemption from the registration requirements of the Securities
Act provided by Rule 144A.

 

Each Initial Purchaser understands that the
Company and, for purposes of the opinions to be delivered to them pursuant to Section 5 hereof, counsel to the Company and
counsel to the Initial Purchasers will rely upon the accuracy and truth of the foregoing representations, and the Initial Purchasers
hereby consent to such reliance.

 

SECTION 3.          
Additional Covenants. Each of the Company and the Initial Guarantors further covenants and agrees with each Initial
Purchaser as follows:

 

(a)               
Preparation of Final Offering Memorandum; Initial Purchasers' Review of Proposed Amendments and Supplements and Company
Additional Written Communications. As promptly as practicable following the Time of Sale and in any event not later than the
second business day following the date hereof, the Company will prepare and deliver to the Initial Purchasers the Final Offering
Memorandum, which shall consist of the Preliminary Offering Memorandum as modified only by the information contained in the Pricing
Supplement and such other changes to which the Representatives do not object. The Company will not amend or supplement the Preliminary
Offering Memorandum, or the Pricing Supplement. The Company will not amend or supplement the Final Offering Memorandum prior to
the Closing Date unless the Representatives shall previously have been furnished a copy of the proposed amendment or supplement
at least two business days prior to the proposed use or filing, and shall not have objected to such amendment or supplement. Before
making, preparing, using, authorizing, approving or distributing any Company Additional Written Communication, the Company will
furnish to the Representatives a copy of such written communication for review and will not make, prepare, use, authorize, approve
or distribute any such written communication to which the Representatives reasonably object.

  

(b)              
Amendments and Supplements to the Final Offering Memorandum and Other Securities Act Matters. If at any time prior
to the Closing Date (i) any event shall occur or condition shall exist as a result of which any of the Pricing Disclosure Package
or the Final Offering Memorandum as then amended or supplemented would include any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading or (ii) it is necessary to amend or supplement any of the Pricing Disclosure Package or the Final Offering
Memorandum to comply with law, the Company and the Initial Guarantors will promptly notify the Initial Purchasers thereof and prepare
and (subject to Section 3(a) hereof) furnish to the Initial Purchasers such amendments or supplements to any of the Pricing Disclosure
Package or the Final Offering Memorandum as may be necessary so that the statements in any of the Pricing Disclosure Package or
the Final Offering Memorandum as so amended or supplemented will not include any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading or so that any of the Pricing Disclosure Package or the Final Offering Memorandum will comply with all applicable
law. If, during the period prior to the later of (i) completion of the placement of the Securities by the Initial Purchasers with
the Subsequent Purchasers (it being agreed by the Representatives that they will notify the Company in writing if they have not
completed such placement as of the Closing Date and if they so notify the Company, they will promptly notify the Company after
they complete their distribution of the Securities) and (ii) 20 days after the Closing Date (such period the “Distribution
Period”), any event shall occur or condition exist as a result of which the Final Offering Memorandum, as then amended
or supplemented, would include any untrue statement of a material fact or omit to state any material fact necessary in order to
make the statements therein, in the light of the circumstances at such time, not misleading, or if in the judgment of any of the
Representatives or counsel for the Representatives it is otherwise necessary to amend or supplement the Final Offering Memorandum
to comply with law, the Company and the Initial Guarantors agree to promptly prepare (subject to Section 3 hereof) and furnish
at its own expense to the Initial Purchasers, amendments or supplements to the Final Offering Memorandum so that the statements
in the Final Offering Memorandum as so amended or supplemented will not include any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements therein, in the light of the circumstances at the time of
such amendment or supplement, not misleading or so that the Final Offering Memorandum, as amended or supplemented, will comply
with all applicable law.

 

    	-16-

    	 

    

 

The Company hereby expressly acknowledges
that the indemnification and contribution provisions of Sections 9 and 10 hereof are specifically applicable and relate to each
offering memorandum, amendment or supplement referred to in this Section 3.

 

(c)               
Copies of the Offering Memorandum. The Company agrees to furnish the Initial Purchasers, without charge, as many
copies of the Pricing Disclosure Package and the Final Offering Memorandum and any amendments and supplements thereto as they shall
reasonably request.

 

(d)              
Blue Sky Compliance. Each of the Company and the Initial Guarantors shall cooperate with the Representatives and
counsel for the Initial Purchasers to qualify or register (or to obtain exemptions from qualifying or registering) all or any part
of the Securities for offer and sale under the securities laws of the several states of the United States, the provinces of Canada
or any other jurisdictions designated by the Representatives, shall comply with such laws and shall continue such qualifications,
registrations and exemptions in effect during the Distribution Period. None of the Company or any of the Initial Guarantors shall
be required to qualify as a foreign corporation or to take any action that would subject it to general service of process in any
such jurisdiction where it is not presently qualified or where it would be subject to taxation as a foreign corporation. The Company
will advise the Representatives promptly of the suspension of the qualification or registration of (or any such exemption relating
to) the Securities for offering, sale or trading in any jurisdiction or any initiation or threat of any proceeding for any such
purpose, and in the event of the issuance of any order suspending such qualification, registration or exemption, each of the Company
and the Initial Guarantors shall use its commercially reasonable efforts to obtain the withdrawal thereof at the earliest possible
moment.

 

    	-17-

    	 

    

 

(e)               
Use of Proceeds. The Company shall apply the net proceeds from the sale of the Securities sold by it in the manner
described under the caption “Use of Proceeds” in the Pricing Disclosure Package.

 

(f)               
The Depositary. The Company will cooperate with the Initial Purchasers and use its commercially reasonable efforts
to permit the Securities to be eligible for clearance and settlement through the facilities of the Depositary.

 

(g)              
Additional Issuer Information. From and after the Closing Date, for so long as the Company is not subject to Section
13 or 15 of the Exchange Act and any of the Securities remain outstanding that are “restricted securities” within the
meaning of Rule 144(a)(3) under the Securities Act, for the benefit of holders and beneficial owners from time to time of the Securities,
the Company shall furnish, at its expense, upon request, to holders and beneficial owners of Securities and prospective purchasers
of Securities information (“Additional Issuer Information”) satisfying the requirements of Rule 144A(d).

 

(h)              
Agreement Not To Offer or Sell Additional Securities. During the period of 45 days following the date hereof, the
Company will not, without the prior written consent of Citigroup Global Markets Inc. (which consent may be withheld at the sole
discretion of Citigroup Global Markets Inc.), directly or indirectly, sell, offer, contract or grant any option to sell, pledge,
transfer or establish an open “put equivalent position” within the meaning of Rule 16a-1 under the Exchange Act, or
otherwise dispose of or transfer, or announce the offering of, or file any registration statement under the Securities Act in respect
of, any debt securities of the Company or securities exchangeable for or convertible into debt securities of the Company (other
than as contemplated by this Agreement or the Registration Rights Agreement).

 

(i)                
Future Reports to the Initial Purchasers. At any time when the Company is not subject to Section 13 or 15 of the
Exchange Act and any Securities or Exchange Securities remain outstanding, the Company will furnish or make available to the Representatives
and, upon request, to each of the other Initial Purchasers, as soon as available, copies of all reports or communications of the
Company provided to holders of the Securities, it being understood that the obligation under this paragraph (i) shall be deemed
to have been satisfied so long as such reports or communications are posted to an open or password-protected website as described
in the Pricing Disclosure Package and the Final Offering Memorandum under the caption “Description of the Notes” and
pursuant to the Indenture.

 

    	-18-

    	 

    

 

(j)                
No Integration. The Company agrees that it will not and will use reasonable efforts to cause its Affiliates not to
make any offer or sale of securities of the Company of any class which would be integrated with the sale of the Securities in a
manner that would require the Securities to be registered under the Securities Act.

 

(k)              
No General Solicitation or Directed Selling Efforts. The Company agrees that it will not and will not authorize any
of its Affiliates or any other person acting on its or their behalf (other than the Initial Purchasers and their Affiliates, as
to which no covenant is given) to (i) solicit offers for, or offer or sell, the Securities by means of any form of general solicitation
or general advertising within the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the
meaning of Section 4(2) of the Securities Act or (ii) engage in any directed selling efforts with respect to the Securities within
the meaning of Regulation S, and the Company will and will cause all such persons to comply with the offering restrictions requirement
of Regulation S with respect to the Securities.

 

(l)                
No Restricted Resales. During the period from the Closing until one year after the Closing Date, without the prior
written consent of the Representatives, the Company will not, and will not authorize any of its Affiliates to resell any of the
Securities that have been reacquired by any of them.

 

(m)            
Legended Securities. Each global certificate representing a Note will bear the legend contained in “Notice
to Investors” in the Preliminary Offering Memorandum for the time period and upon the other terms stated in the Preliminary
Offering Memorandum.

 

The Representatives, on behalf of the several
Initial Purchasers may, in their sole discretion, waive in writing the performance by the Company or any Initial Guarantor of any
one or more of the foregoing covenants or extend the time for their performance.

 

SECTION 4.          
Payment of Expenses. Each of the Company and the Initial Guarantors, jointly and severally, agrees to pay all costs,
fees and expenses incurred in connection with (i) the preparation and filing of the Preliminary Offering Memorandum, the Pricing
Supplement, the Final Offering Memorandum and any Company Additional Written Communications, and the printing and furnishing of
copies of each thereof to the Initial Purchasers (including costs of mailing and shipment), (ii) the issue, sale and delivery of
the Securities including any stock or transfer taxes and stamp or similar duties payable upon the sale, issuance or delivery of
the Securities to the Initial Purchasers, (iii) the producing, word processing and/or printing of this Agreement, the Registration
Rights Agreement, the Indenture, the Securities and the Exchange Securities, as well as any closing documents (including compilations
thereof) and the reproduction and/or printing and furnishing of copies of each thereof to the Initial Purchasers (including costs
of mailing and shipment), (iv) the qualification of the Securities for offering and sale under state or foreign laws and the determination
of their eligibility for investment under state or foreign law (including the legal fees and filing fees and other disbursements
of counsel for the Initial Purchasers) and the printing and furnishing of copies of any blue sky surveys or legal investment surveys
to the Initial Purchasers, (v) the performance of their obligations under the Registration Rights Agreement, (vi) the fees and
disbursements of the Trustee, (vii) the approval of the Securities by DTC for “book-entry” transfer, (viii) the rating
of the Securities or the Exchange Securities, (ix) the costs and expenses of the Company relating to presentations or meetings
undertaken in connection with the marketing of the offering and sale of the Securities to prospective investors and the Initial
Purchasers’ sales forces, including, without limitation, out of pocket expenses associated with the production of road show
slides and graphics, travel, lodging and other expenses incurred by the officers of the Company in connection with the road show
and (x) the performance of the Company’s other obligations hereunder.

 

    	-19-

    	 

    

 

SECTION 5.          
Conditions of the Obligations of the Initial Purchasers. The obligations of the several Initial Purchasers to purchase
and pay for the Securities as provided herein on the Closing Date shall be subject to the accuracy in accordance with Section 1
hereof of the representations and warranties on the part of the Company and the Initial Guarantors set forth in Section 1 hereof
and to the timely performance by the Company of its covenants and other obligations hereunder, and to each of the following additional
conditions:

 

(a)               
Accountants’ Comfort Letter. On the date hereof, the Initial Purchasers shall have received from UHY LLP, independent
registered public accounting firm for the Company, a “comfort letter” dated the date hereof addressed to the Initial
Purchasers, in form and substance satisfactory to the Representatives, covering the financial information in the Pricing Disclosure
Package and other customary matters. In addition, on the Closing Date, the Initial Purchasers shall have received from such accounting
firm, a “bring-down comfort letter” dated the Closing Date addressed to the Initial Purchasers, in form and substance
satisfactory to the Representatives, in the form of the “comfort letter” delivered on the date hereof, except that
(i) it shall cover the financial information in the Final Offering Memorandum and any amendment or supplement thereto and (ii)
procedures shall be brought down to a date no more than three days prior to the Closing Date.

 

(b)              
No Ratings Agency Change. For the period from and after the execution of this Agreement and prior to the Closing
Date there shall not have occurred any downgrading, nor shall any notice have been given of any intended or potential downgrading
or of any review for a possible change that does not indicate the direction of the possible change, in the rating accorded the
Company or any of the Subsidiaries or any of their securities or indebtedness by any “nationally recognized statistical rating
organization” as such term is defined for purposes of Rule 3(a)(62) under the Exchange Act.

 

(c)               
Opinions of Counsel for the Company. On the Closing Date the Initial Purchasers shall have received the favorable
opinions of (i) Vinson & Elkins L.L.P., counsel for the Company, and Bo Boyd, Vice President of Law of the Company, dated as
of the Closing Date, substantially in the form attached as Exhibits A-1 and A-2, respectively, and (ii) Appleby Hunter
Bailhache, counsel for the Company, dated as of the Closing Date, substantially in the form attached as Exhibit A-3.

 

(d)              
Opinions of Counsel for the Initial Purchasers. On the Closing Date the Initial Purchasers shall have received the
favorable opinions of Baker Botts L.L.P. and Conyers Dill & Pearman, counsel for the Initial Purchasers, dated as of the Closing
Date, with respect to such matters as may be reasonably requested by the Initial Purchasers.

 

    	-20-

    	 

    

 

(e)               
Officers’ Certificate. On the Closing Date the Initial Purchasers shall have received a written certificate
executed by the Chief Executive Officer, President or a Vice President of the Company, the Chief Financial Officer, Treasurer or
Chief Accounting Officer of the Company and the Chief Executive Officer, President, Chief Financial Officer, Treasurer, Chief Accounting
Officer or a Vice President of each Initial Guarantor, dated as of the Closing Date, to the effect set forth in Section 5(b) hereof,
and further to the effect that:

 

                                                                        
(i)              
the representations and warranties of the Company and the Initial Guarantors set forth in Section 1 hereof were true and
correct as of the date hereof and are true and correct as of the Closing Date in accordance with Section 1 hereof; and

 

                                                                        
(ii)              the Company and the Initial Guarantors have complied with all the agreements and satisfied all the conditions in all material
respects on their part to be performed or satisfied at or prior to the Closing Date.

 

(f)               
Indenture. The Company and the Initial Guarantors shall have executed and delivered the Indenture, in form and substance
reasonably satisfactory to the Initial Purchasers, and the Initial Purchasers shall have received executed copies thereof.

 

(g)              
Registration Rights Agreement. The Initial Purchasers shall have received the Registration Rights Agreement, executed
and delivered by Company and the Initial Guarantors.

 

(h)              
NSAI Letters. The Initial Purchasers shall have received from NSAI letters, dated respectively, the date of this
Agreement and the Closing Date, and addressed to the Initial Purchasers confirming that as of the date of the Reserve Reports,
it was an independent reserve engineer with respect to Initial Guarantors and no information has come to its attention that could
reasonably be expected to cause it to withdraw the Reserve Report and otherwise in form and substance acceptable to the Representatives.

 

(i)                
Additional Documents. On or before the Closing Date, the Initial Purchasers and counsel for the Initial Purchasers
shall have received such further information, documents and opinions as they may reasonably require for the purposes of enabling
them to pass upon the issuance and sale of the Securities as contemplated herein, or in order to evidence the accuracy of any of
the representations and warranties, or the satisfaction of any of the conditions or agreements, herein contained.

 

If any condition specified in this Section
5 is not satisfied when and as required to be satisfied, this Agreement may be terminated by the Representatives by notice to the
Company at any time on or prior to the Closing Date, which termination shall be without liability on the part of any party to any
other party, except that Sections 4, 6, 9 and 10 hereof shall at all times be effective and shall survive such termination.

 

SECTION 6.          
Reimbursement of Initial Purchasers’ Expenses. If this Agreement is terminated by the Representatives pursuant
to Section 5 or 11(ii) hereof, including if the sale to the Initial Purchasers of the Securities on the Closing Date is not consummated
because of any refusal, inability or failure on the part of the Company to perform any agreement herein or to comply with any provision
hereof, the Company agrees to reimburse the Initial Purchasers upon demand for all out-of-pocket expenses that shall have been
reasonably incurred by the Initial Purchaser in connection with the proposed purchase and the offering and sale of the Securities.

 

    	-21-

    	 

    

 

SECTION 7.          
Offer, Sale and Resale Procedures. Each of the Initial Purchasers, on the one hand, and the Company and each of the
Initial Guarantors, on the other hand, hereby agree to observe the following procedures in connection with the offer and sale of
the Securities:

 

(a)               
Offers and sales of the Securities will be made only by the Initial Purchasers or Affiliates thereof qualified to do so
in the jurisdictions in which such offers or sales are made. Each such offer or sale shall only be made to persons whom the offeror
or seller reasonably believes to be Qualified Institutional Buyers or non-U.S. persons outside the United States to whom the offeror
or seller reasonably believes offers and sales of the Securities may be made in reliance upon Regulation S upon the terms and conditions
set forth in Annex I hereto, which Annex I is hereby expressly made a part hereof.

 

(b)              
No general solicitation or general advertising (within the meaning of Rule 502 under the Securities Act) will be used by
the Initial Purchasers in the United States in connection with the offering of the Securities.

 

(c)               
The Initial Purchasers have not and, prior to the later to occur of (A) the Closing Date and (B) completion of the Distribution
Period, will not, use, authorize use of, refer to or distribute any material in connection with the offering and sale of the Notes
other than (i) the Preliminary Offering Memorandum, the Pricing Disclosure Package, the Final Offering Memorandum, as amended or
supplemented, (ii) any written communication that contains “issuer information” (as defined in Rule 433(h)(2) under
the Securities Act) that was not included (including through incorporation by reference) in the Preliminary Offering Memorandum
or any Company Additional Written Communication, (iii) the Company Additional Written Communication, (iv) any written communication
prepared by such Initial Purchaser and approved by the Company in writing, or (v) any written communication relating to or that
contains the preliminary or final terms of the Notes or their offering and/or other information that was included (including through
incorporation by reference) in the Preliminary Offering Memorandum, the Pricing Disclosure Package or the Final Offering Memorandum.

 

(d)              
Upon original issuance by the Company, and until such time as the same is no longer required under the applicable requirements
of the Securities Act, the Notes (and all securities issued in exchange therefor or in substitution thereof, other than the Exchange
Securities) shall bear the legend substantially in the form of that contained in “Notice to Investors” in the Offering
Memorandum, for the time period and upon the other terms stated in the Offering Memorandum.

 

Following the sale of the Securities by the
Initial Purchasers to Subsequent Purchasers pursuant to the terms hereof, the Initial Purchasers shall not be liable or responsible
to the Company for any losses, damages or liabilities suffered or incurred by the Company, including any losses, damages or liabilities
under the Securities Act, arising from or relating to any resale or transfer of any Security other than by or on behalf of the
Initial Purchasers.

 

    	-22-

    	 

    

 

SECTION 8.          
Reserved.

 

SECTION 9.          
Indemnification.

 

(a)               
Indemnification of the Initial Purchasers. Each of the Company and the Initial Guarantors, jointly and severally,
agrees to indemnify and hold harmless each Initial Purchaser, its directors, officers, employees and agents, each person, if any,
who controls any Initial Purchaser within the meaning of the Securities Act and the Exchange Act and each Affiliate of any Initial
Purchaser against any loss, claim, damage, liability or expense, as incurred, to which such Initial Purchaser, director, officer,
employee, agent, controlling person or Affiliate may become subject, under the Securities Act, the Exchange Act or other federal
or state statutory law or regulation, or at common law or otherwise, insofar as such loss, claim, damage, liability or expense
(or actions in respect thereof) arises out of or is based upon any untrue statement or alleged untrue statement of a material fact
contained in the Preliminary Offering Memorandum, the Pricing Supplement, any Company Additional Written Communication or the Final
Offering Memorandum (or any amendment or supplement thereto), or the omission or alleged omission therefrom of a material fact
necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading,
and to reimburse each Initial Purchaser and each such director, officer, employee, agent, controlling person or Affiliate for any
and all expenses (including the fees and disbursements of counsel) as such expenses are reasonably incurred by such Initial Purchaser
or such director, officer, employee, agent, controlling person or Affiliate in connection with investigating, defending, settling,
compromising or paying any such loss, claim, damage, liability, expense or action (whether or not such Initial Purchaser, director,
officer, employee, controlling person, or Affiliate is a party thereto and whether threatened or commenced; provided, however,
that the foregoing indemnity agreement shall not apply to any loss, claim, damage, liability or expense to the extent, but only
to the extent, arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged omission made
in reliance upon and in conformity with written information furnished to the Company by such Initial Purchaser through the Representatives
expressly for use in the Preliminary Offering Memorandum, the Pricing Supplement, any Company Additional Written Communication
or the Final Offering Memorandum (or any amendment or supplement thereto), it being understood and agreed that the only such information
consists of the information described in subsection (b) below. The indemnity agreement set forth in this Section 9(a) shall be
in addition to any liabilities that the Company may otherwise have.

 

(b)              
Indemnification of the Company and the Guarantors. Each Initial Purchaser agrees, severally and not jointly, to indemnify
and hold harmless the Company, each Guarantor, each of their respective employees, officers and directors and each person, if any,
who controls the Company or any Guarantor within the meaning of the Securities Act or the Exchange Act, against any loss, claim,
damage, liability or expense, as incurred, to which the Company, any Guarantor or any such director or controlling person may become
subject, under the Securities Act, the Exchange Act, or other federal or state statutory law or regulation, or at common law or
otherwise, insofar as such loss, claim, damage, liability or expense (or actions in respect thereof) arises out of or is based
upon any untrue statement or alleged untrue statement of a material fact contained in the Preliminary Offering Memorandum, the
Pricing Supplement, any Company Additional Written Communication or the Final Offering Memorandum (or any amendment or supplement
thereto), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent,
that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Preliminary Offering Memorandum,
the Pricing Supplement, any Company Additional Written Communication or the Final Offering Memorandum (or any amendment or supplement
thereto), in reliance upon and in conformity with written information furnished to the Company by such Initial Purchaser through
the Representatives expressly for use therein, and to reimburse the Company, any Guarantor and each such director or controlling
person for any and all expenses (including the fees and disbursements of counsel) as such expenses are reasonably incurred by the
Company, any Guarantor or such director or controlling person in connection with investigating, defending, settling, compromising
or paying any such loss, claim, damage, liability, expense or action. Each of the Company and the Initial Guarantors hereby acknowledges
that the only information that the Initial Purchasers through the Representatives have furnished to the Company expressly for use
in the Preliminary Offering Memorandum, the Pricing Supplement, any Company Additional Written Communication or the Final Offering
Memorandum (or any amendment or supplement thereto) are the statements set forth under the caption “Plan of Distribution—Commissions
and Discounts,” in the second paragraph under the caption “Plan of Distribution—New Issue of Notes” and
the first two sentences of the first paragraph under the caption “Plan of Distribution—Short Positions” and each
Initial Purchaser’s name as it appears on the front and back covers in the Preliminary Offering Memorandum and the Final
Offering Memorandum. The indemnity agreement set forth in this Section 9(b) shall be in addition to any liabilities that each Initial
Purchaser may otherwise have.

 

    	-23-

    	 

    

 

(c)               
Notifications and Other Indemnification Procedures. Promptly after receipt by an indemnified party under this Section
9 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against
an indemnifying party under this Section 9, notify the indemnifying party in writing of the commencement thereof, but the omission
so to notify the indemnifying party will not relieve it from any liability which it may have to any indemnified party otherwise
than under the indemnity agreement contained in Section 9(a) or (b) above and will not relieve it from any liability under Section
9(a) or (b) above except to the extent it is not materially prejudiced (through the forfeiture of substantive rights and defenses)
as a result of such failure. In case any such action is brought against any indemnified party and such indemnified party seeks
or intends to seek indemnity from an indemnifying party, the indemnifying party will be entitled to participate in and, to the
extent that it shall elect, jointly with all other indemnifying parties similarly notified, by written notice delivered to the
indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof with
counsel reasonably satisfactory to such indemnified party; provided, however, if the defendants in any such action
include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded on the
advice of counsel that a conflict may arise between the positions of the indemnifying party and the indemnified party in conducting
the defense of any such action or that there may be legal defenses available to it and/or other indemnified parties which are different
from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select
separate counsel to assume such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified
party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of such indemnifying party’s
election so to assume the defense of such action and approval by the indemnified party of counsel, the indemnifying party will
not be liable to such indemnified party under this Section 9 for any legal or other expenses subsequently incurred by such indemnified
party in connection with the defense thereof unless (i) the indemnified party shall have employed separate counsel in accordance
with the proviso to the immediately preceding sentence (it being understood, however, that the indemnifying party shall not be
liable for the expenses of more than one separate counsel (together with local counsel (in each jurisdiction)), approved by the
indemnifying party, representing the indemnified parties who are parties to such action) or (ii) the indemnifying party shall not
have employed counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice
of commencement of the action, in each of which cases the fees and expenses of counsel shall be at the expense of the indemnifying
party.

 

    	-24-

    	 

    

 

(d)              
Settlements. The indemnifying party under this Section 9 shall not be liable for any settlement of any proceeding
effected without its written consent, which will not be unreasonably withheld, but if settled with such consent or if there be
a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party against any loss, claim, damage,
liability or expense by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified
party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated
by this Section 9, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without
its written consent if (i) such settlement is entered into more than 120 days after receipt by such indemnifying party of the aforesaid
request, (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request or disputed
in good faith the indemnified party’s entitlement to such reimbursement prior to the date of such settlement and (iii) such
indemnified party shall have given the indemnifying party at least 30 days notice of its intention to settle. No indemnifying party
shall, without the prior written consent of the indemnified party, effect any settlement, compromise or consent to the entry of
judgment in any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been
a party and indemnity was or could have been sought hereunder by such indemnified party, unless such settlement, compromise or
consent (i) includes an unconditional release of such indemnified party from all liability on claims that are the subject matter
of such action, suit or proceeding and (ii) does not include any statements as to or any findings of fault, culpability or failure
to act by or on behalf of any indemnified party.

 

SECTION 10.      
Contribution. If the indemnification provided for in Section 9 hereof is for any reason held to be unavailable to
or otherwise insufficient to hold harmless an indemnified party in respect of any losses, claims, damages, liabilities or expenses
referred to therein, then each indemnifying party shall contribute to the aggregate amount paid or payable by such indemnified
party, as incurred, as a result of any losses, claims, damages, liabilities or expenses referred to therein (i) in such proportion
as is appropriate to reflect the relative benefits received by the Company and the Initial Guarantors, on the one hand, and the
Initial Purchasers, on the other hand, from the offering of the Securities pursuant to this Agreement or (ii) if the allocation
provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) above but also the relative fault of the Company and the Initial Guarantors, on the one hand,
and the Initial Purchasers, on the other hand, in connection with the statements or omissions or inaccuracies in the representations
and warranties herein which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable
considerations. The relative benefits received by the Company and the Initial Guarantors, on the one hand, and the Initial Purchasers,
on the other hand, in connection with the offering of the Securities pursuant to this Agreement shall be deemed to be in the same
respective proportions as (x) the total net proceeds from the offering of the Securities pursuant to this Agreement (net of discounts
and commissions but before deducting expenses) received by the Company, and (y) the total discount and commissions received by
the Initial Purchasers bear to the aggregate initial offering price of the Securities. The relative fault of the Company and the
Initial Guarantors, on the one hand, and the Initial Purchasers, on the other hand, shall be determined by reference to, among
other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a
material fact or any such inaccurate or alleged inaccurate representation or warranty relates to information supplied by the Company
and the Initial Guarantors, on the one hand, or the Initial Purchasers, on the other hand, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission or inaccuracy.

 

    	-25-

    	 

    

 

The amount paid or payable by a party as a
result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations
set forth in Section 9 hereof, any legal or other fees or expenses reasonably incurred by such party in connection with investigating
or defending any action or claim.

 

The Company, the Initial Guarantors and the
Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 10 were determined by
pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to in this Section 10.

 

Notwithstanding the provisions of this Section
10, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total discount and commissions
received by such Initial Purchaser in connection with the Securities distributed by it. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11 of the Securities Act) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation. The Initial Purchasers' obligations to contribute pursuant to this Section 10 are several, and
not joint, in proportion to their respective commitments as set forth opposite their names in Schedule A. For purposes of this
Section 10, each director, officer and employee of an Initial Purchaser and each person, if any, who controls an Initial Purchaser
within the meaning of the Securities Act and the Exchange Act shall have the same rights to contribution as such Initial Purchaser,
and each director, officer and employee of the Company or any Initial Guarantor, and each person, if any, who controls the Company
or any Initial Guarantor with the meaning of the Securities Act and the Exchange Act shall have the same rights to contribution
as the Company and the Initial Guarantors.

 

    	-26-

    	 

    

 

SECTION 11.      
Termination of this Agreement. This Agreement may be terminated by the Representatives by notice given to the Company
if at any time prior to Closing: (i) trading or settlement in securities generally on the Nasdaq Stock Market, the NYSE or any
over-the-counter market shall have been suspended or limited, or minimum or maximum prices shall have been generally established
on any of such quotation system or stock exchange; (ii) trading or settlement in any securities of the Parent on the Nasdaq Stock
Market shall have been suspended or limited, (iii) a general banking moratorium shall have been declared by any of federal or New
York authorities; (iv) there shall have occurred any outbreak or escalation of national or international hostilities or any crisis
or calamity, or any change in the United States or international financial markets, or any substantial change or development involving
a prospective substantial change in the United States’ or international political, financial or economic conditions, as in
the judgment of the Representatives is material and adverse and makes it impracticable or inadvisable to proceed with the offering,
sale or delivery of the Securities in the manner and on the terms described in the Pricing Disclosure Package or to enforce contracts
for the sale of securities; or (v) the Company or any of the Initial Guarantors shall have sustained a loss by strike, fire, flood,
earthquake, accident or other calamity of such character as in the judgment of the Representatives may (A) interfere materially
with the conduct of the business and operations of the Company and the Initial Guarantors, taken as a whole, regardless of whether
or not such loss shall have been insured and (B) make it inadvisable to proceed with the offering of the Securities in the manner
and on the terms described in the Pricing Disclosure Package. Any termination pursuant to this Section 11 shall be without liability
on the part of (i) the Company or any Initial Guarantor to the Initial Purchaser, except that the Company and the Initial Guarantors
shall be obligated to reimburse the expenses of the Initial Purchasers pursuant to Sections 4 and 6 hereof, (ii) any Initial Purchaser
to the Company, or (iii) any party hereto to any other party except that the provisions of Sections 4, 9 and 10 hereof shall at
all times be effective and shall survive such termination.

 

SECTION 12.      
Representations and Indemnities to Survive Delivery. The respective indemnities, agreements, representations, warranties
and other statements of the Company, the Initial Guarantors, their respective officers and the several Initial Purchasers set forth
in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or on behalf
of any Initial Purchaser, the Company, any Initial Guarantor or any of their partners, officers or directors or any controlling
person, as the case may be, and will survive delivery of and payment for the Securities sold hereunder and any termination of this
Agreement.

 

SECTION 13.      
Notices. All communications hereunder shall be in writing and shall be mailed, hand delivered, couriered or facsimiled
and confirmed to the parties hereto as follows:

 

If to the Initial Purchasers:

c/o Citigroup Global Markets Inc.

  388 Greenwich Street

New York, New York 10013

Facsimile: +1 212 816 7912

Attention:General Counsel

 

    	-27-

    	 

    

 

with
copies to:

Baker Botts L.L.P.

910 Louisiana

Houston, Texas 77002

Facsimile: (713) 229-1796

Attention: Kelly B. Rose

 

If to the Company or the Guarantors:

Energy XXI Gulf Coast, Inc.

1021 Main, Suite 2626

Houston, Texas 77002

Facsimile: (713) 351-3300

Attention: Bo Boyd, Vice President of Legal

 

Any party hereto may change the address or
facsimile number for receipt of communications by giving written notice to the others.

 

SECTION 14.      
Patriot Act. In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)), the Initial Purchasers are required to obtain, verify and record information that identifies their respective
clients, including the Company, which information may include the name and address of their respective clients, as well as other
information that will allow the Initial Purchasers to properly identify their respective clients.

 

SECTION 15.      
Successors. This Agreement will inure to the benefit of and be binding upon the parties hereto, and to the benefit
of the indemnified parties referred to in Sections 9 and 10 hereof, and in each case their respective successors, and no other
person will have any right or obligation hereunder. The term “successors” shall not include any Subsequent Purchaser
or other purchaser of the Securities as such from any of the Initial Purchasers merely by reason of such purchase.

 

SECTION 16.      
Authority of the Representatives. Any action by the Initial Purchasers hereunder may be taken by the Representatives
on behalf of the Initial Purchasers, and any such action taken by the Representatives shall be binding upon the Initial Purchasers.

 

SECTION 17.      
Partial Unenforceability. The invalidity or unenforceability of any section, paragraph or provision of this Agreement
shall not affect the validity or enforceability of any other section, paragraph or provision hereof. If any section, paragraph
or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such
minor changes (and only such minor changes) as are necessary to make it valid and enforceable.

 

    	-28-

    	 

    

 

SECTION 18.      
Governing Law Provisions; Consent to Jurisdiction.

 

(a)               
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE
TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THEREOF WHICH WOULD REQUIRE
THE APPLICATION OF THE LAW OF ANY OTHER JURISDICTION.

 

(b)              
Any legal suit, action or proceeding arising out of or based upon this Agreement (“Related Proceedings”)
may be instituted in the federal courts of the United States of America located in the City and County of New York or the courts
of the State of New York in each case located in the City and County of New York (collectively, the “Specified Courts”),
and each party irrevocably submits to the exclusive jurisdiction (except for suits, actions, or proceedings instituted in regard
to the enforcement of a judgment of any Specified Court in a Related Proceeding, a “Related Judgment,” as to
which such jurisdiction is non-exclusive) of the Specified Courts in any Related Proceeding. To the extent permitted by applicable
law, service of any process, summons, notice or document by mail to such party’s address set forth above shall be effective
service of process for any Related Proceeding brought in any Specified Court. The parties irrevocably and unconditionally waive
any objection to the laying of venue of any Specified Proceeding in the Specified Courts and irrevocably and unconditionally waive
and agree not to plead or claim in any Specified Court that any Related Proceeding brought in any Specified Court has been brought
in an inconvenient forum.

 

SECTION 19.      
Default of One or More of the Several Initial Purchasers. If any one or more of the several Initial Purchasers defaults
in its obligations to purchase Securities hereunder on the Closing Date, and the aggregate number of Securities which such defaulting
Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase does not exceed 10% of the aggregate number of
the Securities to be purchased on such date, the non-defaulting Initial Purchasers may in their discretion arrange for the purchase
of such Securities by other persons satisfactory to the Company on the terms contained in this Agreement. If, within 36 hours after
any such default by any Initial Purchaser, the non-defaulting Initial Purchasers do not arrange for the purchase of such Securities,
the non-defaulting Initial Purchasers shall be obligated, severally, in the proportions that the number of Securities set forth
opposite their respective names on Schedule A bears to the aggregate number of Securities set forth opposite the names of all such
non-defaulting Initial Purchasers, or in such other proportions as may be specified by the Initial Purchasers with the consent
of the non-defaulting Initial Purchasers, to purchase the Securities which such defaulting Initial Purchaser or Initial Purchasers
agreed but failed or refused to purchase on the Closing Date. If any one or more of the Initial Purchasers so defaults and the
aggregate number of Securities with respect to which such default occurs exceeds 10% of the aggregate number of Securities to be
purchased on the Closing Date, and arrangements satisfactory to the Initial Purchasers and the Company for the purchase of such
Securities are not made within 48 hours after such default, the remaining Initial Purchasers shall have the right to purchase all,
but shall not be under any obligation to purchase any, of the Securities, and if such non-defaulting Initial Purchasers do not
purchase all of the Securities, this Agreement shall terminate without liability to any non-defaulting Initial Purchaser or the
Company or any Guarantor, except that Sections 4, 6, 9 and 10 hereof shall at all times be effective and shall survive such termination,
but only with respect to the non-defaulting Initial Purchasers, and the Company shall have no obligation whatsoever to indemnify
any defaulting Initial Purchaser and no obligation to reimburse any expenses of any defaulting Initial Purchaser. In any such case
either the Initial Purchasers or the Company shall have the right to postpone the Closing Date, as the case may be, but in no event
for longer than seven days in order that the required changes, if any, to the Final Offering Memorandum or any other documents
or arrangements may be effected. As used in this Agreement, the term “Initial Purchaser” shall be deemed to
include any person substituted for a defaulting Initial Purchaser under this Section 18. Any action taken under this Section 19
shall not relieve any defaulting Initial Purchaser from liability in respect of any default of such Initial Purchaser under this
Agreement.

 

    	-29-

    	 

    

 

SECTION 20.      
No Advisory or Fiduciary Responsibility. Each of the Company and the Initial Guarantors acknowledges and agrees that:
(i) the purchase and sale of the Securities pursuant to this Agreement, including the determination of the offering price of the
Securities and any related discounts and commissions, is an arm’s-length commercial transaction between the Company and the
Initial Guarantors, on the one hand, and the several Initial Purchasers, on the other hand, and the Company and the Initial Guarantors
are capable of evaluating and understanding and understand and accept the terms, risks and conditions of the transactions contemplated
by this Agreement; (ii) in connection with each transaction contemplated hereby and the process leading to such transaction each
Initial Purchaser is and has been acting solely as a principal and is not the agent or fiduciary of the Company, Initial Guarantors
or their respective Affiliates, stockholders, creditors or employees or any other party; (iii) no Initial Purchaser has assumed
or will assume an advisory or fiduciary responsibility in favor of the Company and the Initial Guarantors with respect to any of
the transactions contemplated hereby or the process leading thereto (irrespective of whether such Initial Purchaser has advised
or is currently advising the Company and the Initial Guarantors on other matters) or any other obligation to the Company and the
Initial Guarantors except the obligations expressly set forth in this Agreement; (iv) several Initial Purchasers and their respective
Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Company and the
Initial Guarantors and that the several Initial Purchasers have no obligation to disclose any of such interests by virtue of any
fiduciary or advisory relationship; and (v) the Initial Purchasers have not provided any legal, accounting, regulatory or tax advice
with respect to the offering contemplated hereby and the Company and the Initial Guarantors have consulted their own legal, accounting,
regulatory and tax advisors to the extent they deemed appropriate.

 

This Agreement supersedes all prior agreements
and understandings (whether written or oral) between the Company, the Initial Guarantors and the several Initial Purchasers, or
any of them, with respect to the subject matter of this Section 20. The Company and the Initial Guarantors hereby waive and release,
to the fullest extent permitted by law, any claims that the Company and the Initial Guarantors may have against the several Initial
Purchasers with respect to any breach or alleged breach of fiduciary duty with respect to the transactions contemplated by this
Agreement.

 

SECTION 21.      
General Provisions. This Agreement constitutes the entire agreement of the parties to this Agreement and supersedes
all prior written or oral and all contemporaneous oral agreements, understandings and negotiations with respect to the subject
matter hereof. This Agreement may be executed in two or more counterparts, each one of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument. Delivery of an executed counterpart of a signature
page to this Agreement by telecopier, facsimile, email or other electronic transmission (i.e., a “pdf” or “tif”)
shall be effective as delivery of a manually executed counterpart thereof. This Agreement may not be amended or modified unless
in writing by all of the parties hereto, and no condition herein (express or implied) may be waived unless waived in writing by
each party whom the condition is meant to benefit. The section headings herein are for the convenience of the parties only and
shall not affect the construction or interpretation of this Agreement.

 

 

[signature pages follow]

 

    	-30-

    	 

    

 

If the foregoing is in accordance with your
understanding of our agreement, kindly sign and return to the Company the enclosed copies hereof, whereupon this instrument, along
with all counterparts hereof, shall become a binding agreement in accordance with its terms.

 

	 	Very truly yours,
	 	 	 	 
	 	ISSUER:
	 	 
	 	ENERGY XXI GULF COAST, INC.
	 	 
	 	 
	 	By:	/s/ Rick Fox
	 	 	Name:	Rick Fox
	 	 	Title:	Chief Financial Officer
	 	 	 	 
	 	 	 	 
	 	GUARANTORS:
	 	 
	 	ENERGY XXI (BERMUDA) LIMITED
	 	 
	 	 
	 	By:	/s/ David West Griffin
	 	 	Name:  	David West Griffin
	 	 	Title:	Chief Financial Officer
	 	 	 	 
	 	ENERGY XXI GOM, LLC
	 	MS Onshore, LLC
	 	ENERGY XXI TEXAS ONSHORE, LLC
	 	ENERGY XXI ONSHORE, LLC
	 	Energy XXI PIPELINE, LLC
	 	Energy XXI PIPELINE II, LLC
	 	Energy XXI LEASEHOLD, LLC
	 	 
	 	 
	 	By:  	/s/ Rick Fox
	 	 	Name:	Rick Fox
	 	 	Title:	Chief Financial Officer

 

[signature page to Purchase Agreement]

 

    	-31-

    	 

    

 

The foregoing Purchase Agreement is hereby
confirmed and accepted by the Initial Purchasers as of the date first above written on behalf of themselves and as Representatives
of the several Initial Purchasers.

 

 

	CITIGROUP GLOBAL MARKETS INC.	 
	 	 
	By:	/s/ Christopher Abbate	 
	 	Name: Christopher Abbate	 
	 	Title: Managing Director	 
	 	 	 
	RBS SECURITIES INC.	 
	 	 	 
	By:  	/s/ Stephen A. Brinkmann	 
	 	Name: Stephen A. Brinkmann	 
	 	Title: Vice President	 

 

[signature page to Purchase Agreement]

 

    	 

    	 

    

 

SCHEDULE A

 

	Initial Purchasers	 	Aggregate Principal Amount of Notes to be Purchased	 
	Citigroup Global Markets Inc..	 	$	90,000,000	 
	RBS Securities Inc	 	$	90,000,000	 
	Wells Fargo Securities, LLC	 	$	65,000,000	 
	Barclays Capital Inc.	 	$	50,000,000	 
	Credit Suisse Securities (USA) LLC	 	$	50,000,000	 
	UBS Securities LLC	 	$	20,000,000	 
	Capital One Securities, Inc	 	$	20,000,000	 
	Regions Securities LLC	 	$	20,000,000	 
	Scotia Capital (USA) Inc. 	 	$	20,000,000	 
	ING Financial Markets LLC	 	$	15,000,000	 
	Natixis Securities Americas LLC	 	$	15,000,000	 
	TD Securities (USA) LLC	 	$	15,000,000	 
	Comerica Securities, Inc. 	 	$	5,000,000	 
	Cowen and Company, LLC	 	$	5,000,000	 
	Deutsche Bank Securities Inc. 	 	$	5,000,000	 
	IBERIA Capital Partners L.L.C. 	 	$	5,000,000	 
	Johnson Rice & Company L.L.C. 	 	$	5,000,000	 
	KeyBanc Capital Markets Inc. 	 	$	5,000,000	 
	Total	 	$	500,000,000	 

 

    	Schedule A-1

    	 

    

 

EXHIBIT A-1

 

Form of Vinson & Elkins L.L.P. Opinion

 

		1)	Each of the Company and the Subsidiaries is validly existing as a limited liability company or corporation in good standing
under the laws of the State of Delaware, with full corporate or limited liability company power and authority to own, lease and
operate its properties and to conduct its business and enter into and perform its obligations under the Purchase Agreement, the
Indenture, the Registration Rights Agreement, the Notes and the Subsidiaries’ Guarantees (collectively, the “Transaction
Documents”), in each case as described in the Pricing Disclosure Package and the Final Offering Memorandum.

 

		2)	The Purchase Agreement has been duly and validly authorized, executed and delivered by each of the Company and the Subsidiaries.

 

		3)	The Notes have been duly authorized by the Company, and when executed, issued and delivered by the Company against payment
therefor in accordance with the terms of the Purchase Agreement and the Indenture and authenticated by the Trustee in the manner
required by the Indenture, and assuming the due authorization, execution and delivery of the Indenture by the Parent and the Trustee,
the Notes will constitute valid and binding obligations of the Company, entitled to the benefits of the Indenture and enforceable
against the Company in accordance with their terms, except as enforcement thereof may be limited by (i) applicable bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws relating to or affecting the rights and remedies of
creditors and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity
or at law) and (ii) public policy, applicable law relating to fiduciary duties and indemnification and contribution and an implied
covenant of good faith and fair dealing.

 

		4)	The Exchange Notes (as defined in the Registration Rights Agreement) have been duly authorized by
the Company and each of the Subsidiaries and, when executed, issued and delivered by the Company and the Subsidiaries in exchange
for the Securities in accordance with the terms of the Indenture, the Registration Rights Agreement and the Exchange Offer (as
defined in the Registration Rights Agreement) and authenticated by the Trustee in the manner required by the Indenture, and assuming
the due authorization, execution and delivery by the Trustee of the Indenture and by the Parent of the Indenture and its Guarantee,
the Exchange Notes will constitute valid and binding obligations of the Company and the Guarantors, as applicable, entitled to
the benefits of the Indenture and enforceable against the Company and each of the Guarantors in accordance with their terms, except
as enforcement thereof may be limited by (i) applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws relating to or affecting the rights and remedies of creditors and by general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at law) and (ii) public policy, applicable law relating
to fiduciary duties and indemnification and contribution and an implied covenant of good faith and fair dealing.

 

		5)	The Guarantees have been duly authorized, executed and delivered by each of the Subsidiaries, and,
when the Notes have been executed, issued and delivered by the Company against payment therefor in accordance with the terms of
the Purchase Agreement and the Indenture and authenticated in the manner required by the Indenture, and assuming the valid authorization,
execution and delivery by the Trustee of the Indenture and by the Parent of the Indenture and its Guarantee, each Guarantee will
constitute the valid and binding obligation of each of the Guarantors, enforceable against each of the Guarantors in accordance
with its terms, except as enforcement thereof may be limited by (i) applicable bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws relating to or affecting the rights and remedies of creditors and by general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at law) and (ii) public policy, applicable law relating
to fiduciary duties and indemnification and contribution and an implied covenant of good faith and fair dealing.

 

    	A-1-2

    	 

    

 

		6)	The Indenture has been duly authorized, executed and delivered by the Company and each of the Subsidiaries
and assuming the valid authorization, execution and delivery by the Trustee of the Indenture and by the Parent of the Indenture
and its Guarantee, constitutes a valid and binding agreement of the Company and each of the Guarantors, enforceable against the
Company and each of the Guarantors in accordance with its terms, except as enforcement thereof may be limited by (i) applicable
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws relating to or affecting the rights and
remedies of creditors and by general principles of equity (regardless of whether such enforceability is considered in a proceeding
in equity or at law) and (ii) public policy, applicable law relating to fiduciary duties and indemnification and contribution and
an implied covenant of good faith and fair dealing.

 

		7)	The Registration Rights Agreement has been duly authorized, executed and delivered by the Company
and each of the Subsidiaries and constitutes a valid and binding agreement of the Company and, assuming the valid authorization,
execution and delivery by the Parent of the Registration Rights Agreement, each of the Guarantors, enforceable against the Company
and each of the Guarantors in accordance with its terms, except as enforcement thereof may be limited by (i) applicable bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws relating to or affecting the rights and remedies of
creditors and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity
or at law) and (ii) public policy, applicable law relating to fiduciary duties and indemnification and contribution and an implied
covenant of good faith and fair dealing.

 

		8)	The statements in the Pricing Disclosure Package and the Final Offering Memorandum under the captions
“Description of Notes,” “Description of Other Indebtedness” and “Certain United States Federal
Income Tax Consequences,” insofar as such statements purport to summarize provisions of the documents referred to therein
or matters of law or regulation or legal conclusions, are accurate in all material respects.

 

		9)	The execution and delivery by the Company and each of the Subsidiaries of the Transaction Documents
to which it is a party and the consummation by the Company and each of the Subsidiaries of the transactions contemplated thereby,
will not (i) with respect to the Company and the Subsidiaries, constitute a violation of their respective Organizational Documents,
(ii) assuming application of the proceeds from the sale of the Notes in the manner set forth in the Pricing Disclosure Package,
constitute a violation of, or a breach or default under, the terms of any agreement or instrument filed or incorporated by reference
as an exhibit to the Parent’s annual report on Form 10-K for the year ended June 30, 2013 or any applicable current report
on Form 8-K filed with the Commission after July 30, 2013 (the “Applicable Contracts”), or (iii) violate,
or result in any contravention of, or require any consent, approval, authorization or filing or qualification under (A) the Delaware
Limited Liability Company Act (the “DLLCA”), (B) the Delaware General Corporation Law and (C) those laws,
rules and regulations of the State of New York and the federal laws, rules and regulations of the United States of America, in
each case that, in such counsel’s experience, are normally applicable to transactions of the type contemplated by the Transaction
Documents (other than the United States federal securities laws, state securities or blue sky laws, anti-fraud laws and the rules
and regulations of the Financial Industry Regulatory Authority, Inc.); provided that such counsel shall not be required to make
any special investigation as to the applicability of any specific law, rule or regulation (collectively, the “Applicable
Laws”).

 

    	A-1-3

    	 

    

 

		10)	Assuming (i) the accuracy of the representations and warranties of the Company and the Initial
Guarantors set forth in Section 1 of the Purchase Agreement and of the Initial Purchasers in Section 2(d) of the Purchase
Agreement, (ii) the due performance by the Company and the Guarantors of the covenants and agreements set forth in Section
3 of the Purchase Agreement and the due performance by the Initial Purchasers of the covenants and agreements set forth in Section
2(e) of the Purchase Agreement, (iii) the compliance by the Initial Purchasers with the offering and transfer procedures and
restrictions described in the Pricing Disclosure Package, (iv) the accuracy of the representations and warranties made in
accordance with the Purchase Agreement and the Pricing Disclosure Package by purchasers to whom the Initial Purchasers initially
resell the Notes, (v) that the Initial Purchasers are “accredited investors” as defined in Rule 501(a)(1) under the
Securities Act of 1933, as amended (the “Securities Act”), and (vi) that purchasers to whom the Initial Purchasers
initially resell the Notes receive a copy of the Pricing Disclosure Package prior to confirmation of such sale, the offer, sale
and delivery of the Securities to the Initial Purchasers in the manner contemplated by the Purchase Agreement and the Pricing Disclosure
Package do not require registration under the Securities Act, and the Indenture does not require qualification under the Trust
Indenture Act of 1939, other than any registration or qualification that may be required in connection with the Exchange Offer.
Such counsel expresses no opinion, however, as to any subsequent reoffer or resale of any of the Notes.

 

		11)	The Company is not, and after giving effect solely to the offering and sale of the Securities and
the application of the proceeds thereof as described in the Pricing Disclosure Package will not be, an “investment company,”
as such term is defined in the Investment Company Act of 1940, as amended.

 

In rendering such opinion, such counsel
may (i) rely in respect of matters of fact upon certificates of officers and employees of the Company and the Subsidiaries and
upon information obtained from public officials, (ii) assume that all documents submitted to such counsel as originals are authentic,
that all copies submitted to such counsel conform to the originals thereof and that the signatures on all documents examined by
such counsel are genuine, (iii) state that its opinion is limited to matters governed by New York law, federal law, the Delaware
General Corporation Law or the Delaware Limited Liability Company Act, and (iv) state that they express no opinion with respect
to (A) any permits to own or operate any real or personal property or (B) state or local taxes or tax statutes to which any shareholders
of the Company or any Subsidiary may be subject.

 

    	A-1-4

    	 

    

 

In addition, such counsel shall state that
they have participated in conferences with officers and other representatives of the Company, the independent public accountants
of the Company, and your representatives, at which the contents of the Pricing Disclosure Package and the Final Offering Memorandum
and related matters were discussed, and although such counsel has not independently verified, is not passing upon, and is not assuming
any responsibility for the accuracy, completeness or fairness of the statements contained in, the Pricing Disclosure Package and
the Final Offering Memorandum (except to the extent specified in the foregoing opinion), based on the foregoing, no facts have
come to such counsel’s attention that have caused such counsel to believe that:

 

(A)the Final Offering Memorandum, as
of its date and as of the Closing Date, contained or contains an untrue statement of a material fact or omitted or omits to state
a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;
or

 

(B) the Pricing Disclosure Package,
as of the Time of Sale, contained any untrue statement of a material fact or omitted to state any material fact necessary in order
to make the statements therein, in the light of the circumstances under which they were made, not misleading;

 

it being understood that such counsel expresses
no statement or belief with respect to the financial statements and related schedules, including the notes and schedules thereto
and the auditor’s reports thereon, or any other financial and accounting and reserve information, included in, or excluded
from, Pricing Disclosure Package or the Final Offering Memorandum.

 

Capitalized terms used herein without definition
shall have the respective meanings ascribed to them in the Purchase Agreement.

 

    	A-1-5

    	 

    

 

EXHIBIT A-2

 

Form of Bo Boyd, Vice President of Law
Opinion

 

		1)	The Company is not a party to any legal or governmental action or proceeding that challenges the validity or enforceability,
or seeks to enjoin the performance, of the Purchase Agreement and there are no actions, suits, claims, investigations or proceedings
pending, threatened or, to my knowledge, contemplated to which the Company or any of the Guarantors or any of their respective
directors or officers is or would be a party or to which any of their respective properties is or would be subject at law or in
equity, before or by any federal, state, local or foreign governmental or regulatory commission, board, body, authority or agency
which would be required to be described in the Pricing Disclosure Package and the Final Offering Memorandum if the offering and
sale of the Notes were registered under the Securities Act, but are not so described.

 

		2)	The Company and each of the Guarantors are in good standing or are duly qualified to do business as a foreign corporation or
limited liability company, as the case may be, in each jurisdiction set forth opposite its name on Annex A hereto.

 

		3)	The statements in the Pricing Disclosure Package and the Final Offering Memorandum under the headings “Risk Factors,”
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business,”
insofar as such statements constitute summaries of documents or legal proceedings or refer to matters of law or legal conclusions,
constitute accurate summaries of such documents, legal proceedings and laws in all material respects.

 

In rendering such opinion, such counsel
may (i) rely in respect of matters of fact upon certificates of officers and employees of the Parent, the Company and the Subsidiaries
and upon information obtained from public officials, (ii) assume that all documents submitted to such counsel as originals are
authentic, that all copies submitted to such counsel conform to the originals thereof and that the signatures on all documents
examined by such counsel are genuine, (iii) state that its opinion is limited to matters governed by federal law and the Delaware
General Corporation Law and the Delaware Limited Liability Company Act, and (iv) state that they express no opinion with respect
to (A) any permits to own or operate any real or personal property or (B) state or local taxes or tax statutes to which any shareholders
of the Company or any Subsidiary may be subject.

 

In addition, such counsel shall state that
they have participated in conferences with officers and other representatives of the Company, the independent public accountants
of the Company and your representatives, at which the contents of the Pricing Disclosure Package and the Final Offering Memorandum
and related matters were discussed, and although such counsel has not independently verified, is not passing upon, and is not assuming
any responsibility for the accuracy, completeness or fairness of the statements contained in, the Pricing Disclosure Package and
the Final Offering Memorandum (except to the extent specified in the foregoing opinion), based on the foregoing, no facts have
come to such counsel’s attention that have caused such counsel to believe that:

 

    	A-2-1

    	 

    

 

(A)the Final Offering Memorandum, as
of its date and as of the Closing Date, contained or contains an untrue statement of a material fact or omitted or omits to state
a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading,

 

(B) the Pricing Disclosure Package,
as of the Time of Sale, contained any untrue statement of a material fact or omitted to state any material fact necessary in order
to make the statements therein, in light of the circumstances under which they were made, not misleading, or

 

it being understood that such counsel expresses
no statement or belief with respect to the financial statements and related schedules, including the notes and schedules thereto
and the auditor’s reports thereon, or any other financial and accounting and reserve information, included in, or excluded
from, Pricing Disclosure Package or the Final Offering Memorandum.

 

Capitalized terms used herein without definition
shall have the respective meanings ascribed to them in the Purchase Agreement.

 

    	A-2-2

    	 

    

 

ANNEX A TO EXHIBIT A-2

 

Good Standing and Foreign Qualification

 

 

 

	Name:	 	Jurisdiction:	 	Foreign
 Qualification
	Energy XXI (Bermuda) Limited	 	Bermuda	 	None
	Energy XXI Gulf Coast, Inc.	 	Delaware	 	LA
	Energy XXI GOM, LLC	 	Delaware	 	LA, TX
	Energy XXI Texas Onshore, LLC	 	Delaware	 	LA, TX
	Energy XXI Onshore, LLC	 	Delaware	 	LA, TX
	Energy XXI Pipeline, LLC	 	Delaware	 	LA
	Energy XXI Leasehold, LLC	 	Delaware	 	LA
	Energy XXI Pipeline II, LLC	 	Delaware	 	LA
	MS Onshore, LLC	 	Delaware	 	MS

 

    	Annex A-A-2-1

    	 

    

 

EXHIBIT A-3

 

Form of Appleby Law Opinion

 

		1)	The Parent is an exempted company incorporated with limited liability and existing in good standing under the laws of Bermuda.
The Parent possesses the capacity to sue and be sued in its own name and to own the shares of Energy XXI (US Holdings) Limited
and participate in the Energy XXI (Bermuda) Limited Long-Term Incentive Plan, which we are informed are its sole business activities.

 

		2)	The Parent has all requisite corporate power and authority to enter into, execute, deliver, and perform its obligations under
the Purchase Agreement, the Indenture, the Registration Rights Agreement and its Guarantee (collectively, the “Subject Agreements”),
and to take all action as may be necessary to complete the transactions contemplated thereby.

 

		3)	The execution, delivery and performance by the Parent of the Subject Agreements to which it is a party and the transactions
contemplated thereby have been duly authorised by all necessary corporate action on the part of the Parent.

 

		4)	The Subject Agreements to which the Parent is a party have been duly executed by the Parent and each (with respect to the Guarantee,
when the Notes are issued and delivered against payment therefor in accordance with the terms of the Purchase Agreement and Indenture
and authenticated in the manner provided in the Indenture) constitutes legal, valid and binding obligations of the Parent, enforceable
against the Parent in accordance with its terms.

 

		5)	No consent, license or authorisation of, filing with, or other act by or in respect of, any governmental authority or court
of Bermuda is required to be obtained by the Parent in connection with the execution, delivery or performance by the Parent of
the Subject Agreements or to ensure the legality, validity, admissibility into evidence or enforceability as to the Parent, of
the Subject Agreements.

 

		6)	The execution, delivery and performance by the Parent of the Subject Agreements and the transactions contemplated thereby do
not and will not violate, conflict with or constitute a default under (i) any requirement of any law or any regulation of Bermuda
or (ii) the organizational documents of the Parent.

 

		7)	The transactions contemplated by the Subject Agreements are not subject to any currency deposit or reserve requirements in
Bermuda. The Parent has been designated as “non-resident” for the purposes of the Exchange Control Act 1972 and regulations
made thereunder, and there is no restriction or requirement of Bermuda binding on the Parent which limits the availability or transfer
of foreign exchange (i.e. monies denominated in currencies other than Bermuda dollars) for the purposes of the performance by the
Parent of its obligations under the Subject Agreements.

 

    	Exhibit A-3-1

    	 

    

 

		8)	The choice of the laws of New York as the proper law to govern the Subject Agreements is a valid choice of law under Bermuda
law and such choice of law would be recognised, upheld and applied by the courts of Bermuda as the proper law of the Subject Agreements
in proceedings brought before them in relation to the Subject Agreements, provided that (i) the point is specifically pleaded;
(ii) such choice of law is valid and binding under the laws of the New York; and (iii) recognition would not be contrary to public
policy as that term is understood under Bermuda law.

 

		9)	The submission by the Parent to the jurisdiction of the courts of New York pursuant to the Subject Agreements is not contrary
to Bermuda law and would be recognised by the courts of Bermuda as a legal, valid and binding submission to the jurisdiction of
the courts of New York, if such submission is accepted by such courts and is legal, valid and binding under the laws of New York.

 

		10)	A final and conclusive judgment of a competent foreign court against the Parent based upon the Subject Agreements (other than
a court of jurisdiction to which The Judgments (Reciprocal Enforcement) Act 1958 applies, and it does not apply to the courts of
New York) under which a sum of money is payable (not being a sum payable in respect of taxes or other charges of a like nature,
in respect of a fine or other penalty, or in respect of multiple damages as defined in The Protection of Trading Interests Act
1981) may be the subject of enforcement proceedings in the Supreme Court of Bermuda under the common law doctrine of obligation
by action on the debt evidenced by the judgment of such competent foreign court. A final opinion as to the availability of this
remedy should be sought when the facts surrounding the foreign court’s judgment are known, but, on general principles, we
would expect such proceedings to be successful provided that:

 

		a)	the court which gave the judgment was competent to hear the action in accordance with private international law principles
as applied in Bermuda; and

 

		b)	the judgment is not contrary to public policy in Bermuda, has not been obtained by fraud or in proceedings contrary to natural
justice and is not based on an error in Bermuda law.

 

Enforcement of such a judgment
against assets in Bermuda may involve the conversion of the judgment debt into Bermuda dollars, but the Bermuda Monetary Authority
has indicated that its present policy is to give the consents necessary to enable recovery in the currency of the obligation.

 

		11)	Based solely upon the Company Search and the Litigation Search:

 

		a)	no litigation, administrative or other proceeding of or before any governmental authority of Bermuda is pending against the
Parent; and

 

		b)	no notice to the Registrar of Companies of the passing of a resolution of members or creditors to wind up or the appointment
of a liquidator or receiver has been given. No petition to wind up the Parent or application to reorganise its affairs pursuant
to a Scheme of Arrangement or application for the appointment of a receiver has been filed with the Supreme Court.

 

    	 

    	 

    

 

		12)	The Parent has received an assurance from the Ministry of Finance granting an exemption, until 28 March 2016, from the imposition
of tax under any applicable Bermuda law computed on profits or income or computed on any capital asset, gain or appreciation, or
any tax in the nature of estate duty or inheritance tax, provided that such exemption shall not prevent the application of any
such tax or duty to such persons as are ordinarily resident in Bermuda and shall not prevent the application of any tax payable
in accordance with the provisions of the Land Tax Act 1967 or otherwise payable in relation to land in Bermuda leased to the Parent.
There are, subject as otherwise provided in this opinion, no Bermuda taxes, stamp or documentary taxes, duties or similar charges
now due, or which could in the future become due, in connection with the execution, delivery, performance or enforcement of the
Subject Agreements or the transactions contemplated thereby, or in connection with the admissibility in evidence thereof and the
Parent is not required by any Bermuda law or regulation to make any deductions or withholdings in Bermuda from any payment it may
make thereunder.

  

    	 

    	 

    

 

ANNEX I

 

Resale Pursuant to Regulation S or Rule
144A. Each Initial Purchaser understands that:

 

Such Initial Purchaser agrees
that it has not offered or sold and will not offer or sell the Securities in the United States or to, or for the benefit or account
of, a U.S. Person (other than a distributor), in each case, as defined in Rule 902 of Regulation S (i) as part of its distribution
at any time and (ii) otherwise until 40 days after the later of the commencement of the offering of the Securities pursuant hereto
and the Closing Date, other than in accordance with Regulation S or another exemption from the registration requirements of the
Securities Act. Such Initial Purchaser agrees that, during such 40-day restricted period, it will not cause any advertisement with
respect to the Securities (including any “tombstone” advertisement) to be published in any newspaper or periodical
or posted in any public place and will not issue any circular relating to the Securities, except such advertisements as are permitted
by and include the statements required by Regulation S.

 

Such Initial Purchaser agrees
that, at or prior to confirmation of a sale of Securities by it to any distributor, dealer or person receiving a selling concession,
fee or other remuneration during the 40-day restricted period referred to in Rule 903 of Regulation S, it will send to such distributor,
dealer or person receiving a selling concession, fee or other remuneration a confirmation or notice to substantially the following
effect:

 

“The Securities covered hereby have not been
registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered and sold
within the United States or to, or for the account or benefit of, U.S. persons (i) as part of your distribution at any time or
(ii) otherwise until 40 days after the later of the date the Securities were first offered to persons other than distributors in
reliance upon Regulation S and the Closing Date, except in either case in accordance with Regulation S under the Securities Act
(or in accordance with Rule 144A under the Securities Act or to accredited investors in transactions that are exempt from the registration
requirements of the Securities Act), and in connection with any subsequent sale by you of the Securities covered hereby in reliance
on Regulation S under the Securities Act during the period referred to above to any distributor, dealer or person receiving a selling
concession, fee or other remuneration, you must deliver a notice to substantially the foregoing effect. Terms used above have the
meanings assigned to them in Regulation S under the Securities Act.”

 

    	Annex I-1

    	 

    

 

ANNEX II

 

Pricing Supplement

 

[see attached]

 

    	Annex II-1

    	 

    

 

Energy
XXI Gulf Coast, Inc.

7.50% Senior Notes due 2021

September 23, 2013

 

	
        Pricing Supplement
        dated September 23, 2013 to the Preliminary Offering Memorandum dated September 23, 2013 of Energy XXI Gulf Coast, Inc. This Pricing
        Supplement is qualified in its entirety by reference to the Preliminary Offering Memorandum. The information in this Pricing Supplement
        supplements the Preliminary Offering Memorandum and supersedes the information in the Preliminary Offering Memorandum to the extent
        it is inconsistent with the information in the Preliminary Offering Memorandum. Capitalized terms used in this Pricing Supplement
        but not defined herein have the meanings given to them in the Preliminary Offering Memorandum.

         

	Issuer:	Energy XXI Gulf Coast, Inc., a Delaware corporation
	 	 
	Guarantee	Existing subsidiaries, Energy XXI (Bermuda) Limited (parent company) and certain future material domestic subsidiaries
	 	 
	Security Description:	7.50% Senior Notes due 2021
	 	 
	Aggregate Principal Amount Offered:	$500,000,000
	 	 
	Maturity:	December 15, 2021
	 	 
	Coupon:	7.50%
	 	 
	Offering Price:	100%
	 	 
	Yield to Maturity:	7.50%
	 	 
	Spread to Benchmark Treasury:	510 bps
	 	 
	Benchmark Treasury:	UST 2.397% due 11/15/2021
	 	 
	Gross Proceeds:	$500,000,000
	 	 
	Net Proceeds (before expenses):	$492,500,000
	 	 
	Interest Payment Dates:	June 15 and December 15, beginning December 15, 2013
	 	 
	Record Dates:	June 1 and December 1 of each year
	 	 
	Change of Control:	Put right at 101% plus accrued and unpaid interest
	 	 
	Make Whole Redemption:	Make whole redemption prior to December 15, 2016 at a make-whole redemption price plus accrued and unpaid interest
	 	 
	Equity Claw-Back:	Up to 35% at 107.50% plus accrued and unpaid interest prior to December 15, 2016
	 	 
	Optional Redemption:	On and after December 15, 2016, optional redemption at the redemption prices (expressed as percentage of principal amount) set forth below, plus accrued and unpaid interest, if redeemed during the twelve-month period beginning on December 15 of the year indicated below:

 

	 	 	Year	 	Percentage	 
	 	 	2016	 	 	105.625	%
	 	 	2017	 	 	103.750	%
	 	 	2018	 	 	101.875	%
	 	 	2019 and thereafter	 	 	100.000	%

 

    	 

    	 

    

 

	Trade Date:	September 23, 2013
	 	 
	Settlement Date:	September 26, 2013 (T+3)
	 	 
	Denominations:	Minimum denominations of $2,000 plus integral multiples of $1,000
	 	 
	Distribution:	Rule 144A and Regulation S with registration rights
	 	 
	CUSIP/ISIN Numbers:	
        Rule 144A: 29276K AR2/US29276KAR23

         

        Regulation S: U2927P AD9/USU2927PAD97

         

	 	 
	Joint Physical Book-Running Managers	Citigroup Global Markets Inc. and RBS Securities Inc. 
	 	 
	Book-Running Managers	Wells Fargo Securities, LLC, Barclays Capital Inc., Credit Suisse Securities (USA) LLC and UBS Securities LLC 
	 	 
	Senior Co-Managers	Capital One Securities, Inc., Regions Securities LLC and Scotia Capital (USA) Inc.
	 	 
	Co-Managers	ING Financial Markets LLC, Natixis Securities Americas LLC, TD Securities (USA) LLC, Comerica Securities, Inc., Cowen and Company, LLC, Deutsche Bank Securities Inc., IBERIA Capital Partners L.L.C., Johnson Rice & Company L.L.C., KeyBanc Capital Markets Inc.

 

Additional Information

 

 

The
following disclosure under “Offering Memorandum Summary—Recent Developments” on page 3 of the Preliminary Offering
Memorandum and each other location where it appears in the Preliminary Offering Memorandum is amended to read as follows:

 

Based
on our proposed offering amount of $500 million aggregate principal amount, our borrowing base would be reduced by $62.5 million
to $787.5 million as a result of this offering.

 

The
following disclosure under “Offering Memorandum Summary—The Offering” on page 5 of the Preliminary Offering
Memorandum, under “Use of Proceeds” on page 19 of the Preliminary Offering Memorandum and each other location where
it appears in the Preliminary Offering Memorandum is amended to read as follows:

 

We
intend to use all of the net proceeds of the offering to repay indebtedness outstanding under our revolving credit facility in
full and for general corporate purposes.

 

The
following entries in the “As Adjusted” column of the Capitalization table on page 20 of the Preliminary Offering Memorandum
are amended to read as follows: 

 

Cash
and cash equivalents: $153,200; Revolving credit facility “—“; Notes offered hereby: $500,000; Total long-term
debt: $1,505,843; and Total capitalization $3,037,797. 

 

    	 

    	 

    

 

All information (financial and otherwise)
presented in the Preliminary Offering Memorandum is deemed to have changed to the extent affected by the changes described herein.

 

This Pricing Supplement is strictly confidential
and has been prepared by the Issuer solely for use in connection with the proposed offering of the securities described in the
Preliminary Offering Memorandum. This Pricing Supplement is personal to each offeree and does not constitute an offer to any other
person or the public generally to subscribe for or otherwise acquire the securities. Please refer to the Preliminary Offering Memorandum,
as modified by this Pricing Supplement, for a complete description of the securities.

 

The securities have not been registered
under the Securities Act of 1933, as amended (the “Securities Act”), and are being offered only to (1) “qualified
institutional buyers” as defined in Rule 144A under the Securities Act and (2) outside the United States to non-U.S. persons
in compliance with Regulation S under the Securities Act, and this communication is only being distributed to such persons.

 

This communication is not an offer to
sell the securities and it is not a solicitation of an offer to buy the securities in any jurisdiction to any person to whom it
is unlawful to make such offer or solicitation in such jurisdiction.

 

Any disclaimer or other notice that
may appear below is not applicable to this communication and should be disregarded. Such disclaimer or notice was automatically
generated as a result of this communication being sent by Bloomberg or another email system.

 

    	 

    	 

    

 

ANNEX III

 

Company Additional Written Communications

 

none

 

 

    	Annex III-1SHARE PURCHASE AGREEMENT

 

This Share Purchase
Agreement (this “Agreement”) is dated as of September__, 2013, between SurePure, Inc., a Nevada corporation (the “Corporation”),
and Trinity Asset Management International Limited, a company formed under the laws of Mauritius (Company Number: C49926 C1/GBL)
(the “Purchaser”).

 

WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act of 1933, as amended
(the “Securities Act”), Rule 506 promulgated thereunder and Regulation S promulgated thereunder, the Corporation desires
to issue and sell to the Purchaser, and the Purchaser desires to purchase from the Corporation, securities of the Corporation as
more fully described in this Agreement.

 

NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Corporation and the Purchaser agree as follows:

 

ARTICLE I.

DEFINITIONS

 

1.1 Definitions. In addition to
the terms defined elsewhere in this Agreement, the following terms have the meanings set forth in this Section 1.1:

 

“Action” shall have the meaning
given to such term in Section 3.1(j).

 

“Affiliate” means any Person
that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a
Person, as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Board of Directors” means
the board of directors of the Corporation.

 

“Business Day” means any day
except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions
in the State of New York are authorized or required by law or other governmental action to close.

 

“Closing” means the First Closing
and each Other Closing.

 

“Closing Date” means the date
of the First Closing or a date of any Other Closing, as the case shall be.

 

“Commission” means the United
States Securities and Exchange Commission.

 

“Committed Shares” shall have
the meaning given to such term in Section 2.1(b).

 

“Commitment Amount” shall have
the meaning given to such term in Section 2.1.

 

“Common Stock” means the common
stock of the Corporation, par value $0.001 per share, and any other class of securities into which such securities may hereafter
be reclassified or changed.

 

“Common Stock Equivalents”
means any securities of the Corporation which would entitle the holder thereof to acquire at any time Common Stock, including,
without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into
or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

 

    	1

    	 

    

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“First Closing” shall have
the meaning given to such term in Section 2.1(a).

 

“GAAP” shall have the meaning
given to such term in Section 3.1(h).

 

“Lien” means a lien, charge, pledge, security interest, encumbrance, right
of first refusal, preemptive right or other restriction.

 

“Material Adverse Effect” shall
have the meaning assigned to such term in Section 3.1(b).

 

“Person” means an individual
or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint
stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Preferred Stock” means shares
of the Corporation’s Nonvoting Convertible Preferred Stock, par value $0.01 per share.

 

“Proceeding” means an action,
claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding, such
as a deposition), whether commenced or threatened.

 

“Prospectus” shall mean the
Corporation’s Supplemental Prospectus as filed with the Commission on May 17, 2013.

 

“Purchase Price” shall have
the meaning given it in Section 2.2.

 

“Purchaser Party” shall have
the meaning given to such term in Section 4.9.

 

“Registration Rights Agreement”
means the Registration Rights Agreement, dated the date hereof, between the Corporation and the Purchaser.

 

“Required Approvals” shall
have the meaning given to such term in Section 3.1(e).

 

“Regulation S” means Regulation
S promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or
any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

 

“Rule 144” means Rule 144 promulgated
by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

 

“SEC Reports” shall have the
meaning given to such term in Section 3.1(h).

 

“Shares” means shares of the
Corporation’s Common Stock.

 

“Securities Act” means the
Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Short Sales” means all “short
sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include the location and/or
reservation of borrowable shares of Common Stock).

 

“Subsidiary” means any subsidiary
of the Corporation as set forth in the Prospectus.

 

    	2

    	 

    

 

“Trading Day” means any day
on which the Trading Market is open for business.

 

“Trading Market” means the
OTC Bulletin Board.

 

“Transaction Documents” means
this Agreement, the Registration Rights Agreement and all exhibits and schedules hereto and any other documents or agreements executed
in connection with the transactions contemplated hereunder.

 

“Transfer Agent” means Vstock
Transfer, LLC, the current transfer agent of the Corporation, with a mailing address of 77 Spruce Street, Suite 201, Cedarhurst,
New York 11516, and any successor transfer agent of the Corporation.

 

“VWAP” means the volume weighted
average price for the Shares in the Trading Market for the designated period of time, as determined by the Corporation in good
faith from information provided by Bloomberg LP.

 

ARTICLE II.

PURCHASE AND SALE

 

2.1 Closings. Upon the terms and
subject to the conditions set forth herein, the Corporation will sell, and the Purchaser will purchase, Shares for the aggregate
Purchase Price of $900,000 for the Shares to be purchased and sold (the “Commitment Amount”). The Shares will be purchased
and sold, as follows:

 

		(a)	the Corporation will sell and the Purchaser will purchase 360,000 Shares on or before 3:00pm New
York City time on September 30, 2013 or such later date, not later than October 25, 2013, as the Corporation and the Purchaser
shall agree (the closing of the purchase and sale of such 360,000 Shares is referred to as the “First Closing”); and

 

		(b)	the Corporation will sell and the Purchaser will purchase Shares in addition to those that the
Purchaser has purchased at the First Closing (such additional shares are referred to in this Agreement as the “Committed
Shares”) until the Purchaser has paid the full Commitment Amount to the Corporation on dates and in installments as listed
below to be notified by the Purchaser on not less than five (5) Business Days’ notice to the Corporation; provided,
that the Purchaser shall purchase all of the Committed Shares by not later than 5:00pm New York City Time on March 24, 2014 (each
of the closings of the respective purchases and sales of the Committed Shares is referred to as an “Other Closing”).
The scheduled payment dates and installments are:

 

	Dates	Number of Shares
	October 25, 2013	90,000
	November 25, 2013	90,000
	December 13, 2013	90,000
	January 24, 2014	90,000
	February 25, 2014	90,000
	March 25, 2014	90,000

 

 

At each Closing, (a) the Purchaser shall
deliver the Purchase Price times the number of Shares being purchased to the Corporation in United States dollars and in immediately
available funds wired in accordance with wire transfer instructions that the Corporation shall provide to the Purchaser in writing
at least three (3) Business Days prior to the Closing Date and (b) within ten (10) Business Days following receipt of the Purchase
Price therefor, the Corporation shall send the Shares purchased on the Closing Date to the Purchaser at its address set forth on
the execution page to this Agreement. Upon satisfaction of the covenants and conditions set forth in Section 2.3, each Closing
shall occur at the Corporation’s office at 405 Lexington Avenue, 25th Floor, New York, NY 10104 or such other
location as the parties shall mutually agree. Time shall be of the essence in connection with the performance of all obligations
to be performed at each Closing.

 

    	3

    	 

    

 

2.2 Purchase Price. The purchase
price (the “Purchase Price”) for the Shares shall be as follows:

 

(a) for the Shares to be purchased and
sold at the First Closing, $1.00 per share; and

 

(b) for the Shares to be purchased and
sold at each Other Closing, $1.00 per share; provided that if the any Purchase Price is paid other than prior to or on the
dates set forth in Section 2.1(b), the Purchase Price per Share for such purchase and all remaining purchases of Shares shall be
the greater of (i) $1.00 per share and (ii) 92% of VWAP for the twenty (20) Trading Days ending on the third (3rd) Trading
Day prior to the Closing Date.

 

2.3 Closing Conditions.

 

(a) The obligations of the Corporation
under this Agreement in connection with each Closing are subject to the following conditions being met:

 

(i) the accuracy in all material
respects on the Closing Date of the representations and warranties of the Purchaser contained herein (unless as of a specific date
referred to therein, in which case they shall be accurate as of such date); and

 

(ii) all obligations, covenants
and agreements of the Purchaser required to be performed at or prior to the Closing Date shall have been performed.

 

(b) The obligations of the Purchaser under
this Agreement in connection with each Closing are subject to the following conditions being met:

 

(i) the accuracy in all material
respects when made and on the Closing Date of the representations and warranties of the Corporation contained herein (unless as
of a specific date referred to therein, in which case they shall be accurate as of such date); and

 

(ii) all obligations, covenants
and agreements of the Corporation required to be performed at or prior to the Closing Date shall have been performed.

 

In addition, the obligations of the Purchaser
under this Agreement in connection with the First Closing are subject to the conditions that the Corporation has executed and delivered
the Registration Rights Agreement.

 

2.4 Liquidated Damages. Unless excused
by the failure of the Corporation to satisfy any condition set forth in Section 2.3(b), if the Purchaser fails to purchase and
pay in full for the Committed Shares by 5:00pm New York City Time on March 25, 2014, the Purchaser shall pay the Corporation on
demand by the Corporation the excess of $900,000 over the aggregate amount paid to the Corporation by the Purchaser at the First
Closing or any Other Closings that have been completed. This amount is not a penalty but represents a reasonable approximation
and liquidation of the damages suffered by the Corporation in reliance on the unperformed obligations of the Purchaser and is not
paid as a subscription for Shares.

 

    	4

    	 

    

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1 Representations and Warranties of
the Corporation. The Corporation hereby makes the following representations and warranties to the Purchaser:

 

(a) Subsidiaries. All of the direct
and indirect Subsidiaries of the Corporation are set forth in the Prospectus. The Corporation owns, directly or indirectly, all
of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding
shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar
rights to subscribe for or purchase securities.

 

(b) Organization and Qualification.
The Corporation and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own
and use its properties and assets and to carry on its business as currently conducted. Neither the Corporation nor any Subsidiary
is in violation or default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other
organizational or charter documents. Each of the Corporation and the Subsidiaries is duly qualified to conduct business and is
in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or
property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the
case may be, could not have or reasonably be expected to result in: (i) a material adverse effect on the legality, validity
or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business,
prospects or condition (financial or otherwise) of the Corporation and the Subsidiaries, taken as a whole, or (iii) a material
adverse effect on the Corporation’s ability to perform in any material respect on a timely basis its obligations under any
Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”), and no Proceeding has been instituted
in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

(c) Authorization; Enforcement.
The Corporation has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by
this Agreement and each of the other Transaction Documents and otherwise to carry out its obligations hereunder and thereunder.
The execution and delivery of this Agreement and each of the other Transaction Documents by the Corporation and the consummation
by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the
Corporation and no further action is required by the Corporation, the Board of Directors or the Corporation’s shareholders
in connection herewith or therewith other than in connection with the Required Approvals. This Agreement and each other Transaction
Document to which it is a party has been (or upon delivery will have been) duly executed by the Corporation and, when delivered
in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Corporation enforceable
against the Corporation in accordance with its terms, except: (i) as limited by general equitable principles and applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’
rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other
equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(d) No Conflicts. The execution,
delivery and performance by the Corporation of this Agreement and the other Transaction Documents to which it is a party, the issuance
and sale of the Shares and the consummation by it of the transactions contemplated hereby and thereby do not and will not: (i) conflict
with or violate any provision of the Corporation’s or any Subsidiary’s certificate or articles of incorporation, bylaws
or other organizational or charter documents, (ii) conflict with, or constitute a default (or an event that with notice or
lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of
the Corporation or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or
without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Corporation or
Subsidiary debt or otherwise) or other understanding to which the Corporation or any Subsidiary is a party or by which any property
or asset of the Corporation or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with
or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or
governmental authority to which the Corporation or a Subsidiary is subject (including federal and state securities laws and regulations),
or by which any property or asset of the Corporation or a Subsidiary is bound or affected; except in the case of each of clauses
(ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

    	5

    	 

    

 

(e) Filings, Consents and Approvals.
The Corporation is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing
or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with
the execution, delivery and performance by the Corporation of the Transaction Documents, other than: (i) the filings required
pursuant to the Registration Rights Agreement and (ii)  the filing of Form D with the Commission and such filings as are required
to be made under applicable state securities laws (collectively, the “Required Approvals”).

 

(f) Issuance of the Shares. The
Shares are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly
and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Corporation other than restrictions
on transfer provided for in the Transaction Documents.

 

(g) Capitalization. The capitalization
of the Corporation is as set forth in the Prospectus. As of the date of this Agreement, there are issued and outstanding 21,465,447
shares of Preferred Stock and 36,695,485 shares of Common Stock. No Person has any right of first refusal, preemptive right, right
of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. There are
no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or
securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe
for or acquire any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Corporation or
any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. The issuance and
sale of the Shares will not obligate the Corporation to issue shares of Common Stock or other securities to any Person and will
not result in a right of any holder of Corporation securities to adjust the exercise, conversion, exchange or reset price under
any of such securities. All of the outstanding shares of capital stock of the Corporation are duly authorized, validly issued,
fully paid and nonassessable, have been issued in compliance with all applicable federal and state securities laws, and none of
such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities.
No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale
of the Shares under this Agreement. There are no stockholders agreements, voting agreements or other similar agreements with respect
to the Corporation’s capital stock to which the Corporation is a party or, to the knowledge of the Corporation, between or
among any of the Corporation’s stockholders.

 

(h) SEC Reports; Financial Statements.
The Corporation has filed all reports, schedules, forms, statements and other documents required to be filed by the Corporation
under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding
the date hereof (or such shorter period as the Corporation was required by law or regulation to file such material) (the foregoing
materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein
as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any
such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material
respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports that were
filed on or after December 12, 2012, when filed, contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading. The financial statements of the Corporation included in the SEC Reports comply in all material
respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect
at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting
principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified
in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes
required by GAAP, and fairly present in all material respects the financial position of the Corporation and its consolidated Subsidiaries
as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of
unaudited statements, to normal, immaterial, year-end audit adjustments.

 

    	6

    	 

    

 

(i) Material Changes; Undisclosed Events,
Liabilities or Developments. Since the date of the latest audited financial statements included within the SEC Reports, except
as specifically disclosed in a subsequent SEC Report filed prior to the date hereof: (i) there has been no event, occurrence
or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Corporation
has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in
the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Corporation’s
financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Corporation has not altered
its method of accounting, (iv) the Corporation has not declared or made any dividend or distribution of cash or other property
to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the
Corporation has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Corporation
stock option plans. The Corporation does not have pending before the Commission any request for confidential treatment of information.
Except for the issuance of the Shares contemplated by this Agreement, no event, liability, fact, circumstance, occurrence or development
has occurred or exists or is reasonably expected to occur or exist with respect to the Corporation or its Subsidiaries or their
respective businesses, properties, operations, assets or financial condition, that would be required to be disclosed by the Corporation
under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed.

 

(j) Litigation. There is no action,
suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Corporation, threatened against
or affecting the Corporation, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental
or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”)
which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or
the Shares or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse
Effect. Neither the Corporation nor any Subsidiary, nor any director or officer thereof, is or has been the subject of any Action
involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There
has not been, and to the knowledge of the Corporation, there is no investigation by the Commission, whether pending or contemplated,
involving the Corporation or any current director or officer of the Corporation. The Commission has not issued any stop order or
other order suspending the effectiveness of any registration statement filed by the Corporation or any Subsidiary under the Exchange
Act or the Securities Act.

 

(k) Certain Fees. No brokerage or
finder’s fees or commissions are or will be payable by the Corporation or any Subsidiary to any broker, financial advisor
or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by
the Transaction Documents. The Purchaser shall have no obligation with respect to any fees or with respect to any claims made by
or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions
contemplated by the Transaction Documents.

 

    	7

    	 

    

 

(l) Private Placement. Assuming
the accuracy of the Purchaser’s representations and warranties set forth in Section 3.2, no registration under the Securities
Act is required for the offer and sale of the Shares by the Corporation to the Purchaser as contemplated hereby.

 

(m) Listing and Maintenance Requirements.
The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Corporation has taken no action
designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under
the Exchange Act nor has the Corporation received any notification that the Commission is contemplating terminating such registration.
The Corporation has not, in the 12 months preceding the date hereof, received notice from the OTC Market to the effect that the
Corporation is not in compliance with the listing or maintenance requirements of such trading market. The Corporation is in compliance
with all such listing and maintenance requirements.

 

(n) Disclosure. Except with respect
to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Corporation confirms that
neither it nor any other Person acting on its behalf has provided the Purchaser or its agents or counsel with any information that
it believes constitutes or might constitute material, non-public information. The Corporation understands and confirms that the
Purchaser will rely on the foregoing representation in effecting transactions in securities of the Corporation. All of the disclosure
furnished by or on behalf of the Corporation to the Purchaser regarding the Corporation and its Subsidiaries, their respective
businesses and the transactions contemplated hereby, is true and correct and does not contain any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under
which they were made, not misleading. The Corporation acknowledges and agrees that the Purchaser is not making or has not made
any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth
in Section 3.2. .

 

3.2 Representations and Warranties of
the Purchaser. The Purchaser hereby represents and warrants as of the date hereof and as of each Closing Date to the Corporation
as follows (unless as of a specific date therein):

 

(a) Organization; Authority. The
Purchaser is an entity duly incorporated or formed, validly existing and in good standing under the laws of the jurisdiction of
its incorporation or formation with full right, corporate, partnership, limited liability company or similar power and authority
to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder. The execution and delivery of the Transaction Documents and performance by the Purchaser of the transactions
contemplated by the Transaction Documents have been duly authorized by all necessary corporate, partnership, limited liability
company or similar action, as applicable, on the part of the Purchaser. Each Transaction Document to which it is a party has been
duly executed by the Purchaser, and when delivered by the Purchaser in accordance with the terms hereof, will constitute the valid
and legally binding obligation of the Purchaser, enforceable against it in accordance with its terms, except: (i) as limited
by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions
may be limited by applicable law.

 

(b) Own Account. The Purchaser understands
that the Shares are “restricted securities” and have not been registered under the Securities Act or any applicable
state securities law and is acquiring the Shares as principal for its own account and not with a view to or for distributing or
reselling such Shares or any part thereof in violation of the Securities Act or any applicable state securities law, has no present
intention of distributing any of such Shares in violation of the Securities Act or any applicable state securities law and has
no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such
Shares in violation of the Securities Act or any applicable state securities law.

 

    	8

    	 

    

 

(c) Purchaser Status. At the time
the Purchaser was offered the Shares, it was, and as of the date hereof it is, it will be an “accredited investor”
as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act and a person other than a “U.S. Person”
as defined in Rule 901 under the Securities Act. The Purchaser is not acquiring the Acquired Shares for the benefit of any U.S.
Person. The Purchaser will be the sole beneficial owner of Stock and the Purchaser has not pre-arranged any sale with respect to
any of the foregoing to any persons in the United States. For purposes of this representation, a “U.S. person” shall
include, without limitation, any natural person resident in the United States, any partnership or corporation organized or non-U.S.
banks or insurance companies, any estate of which executor or person (with certain exceptions) and any agency or bank of a foreign
entity located in the United States, but does not include a natural person not resident in the United States; and the “United
States” means the United States of America, its territories and possessions, any state of the United States and the District
of Columbia. The Purchaser is outside the United States as of the date of the execution and delivery of this Agreement and will
be outside the United States at the time of the closing of the purchase and sale of any Shares; provided, that delivery
of the Shares may be effected within the United States through the Purchaser’s agent as long as the Purchaser is outside
the United States at the time of any such delivery. The purchase of the Shares under this Agreement is not part of a plan or scheme
to evade the registration provisions of the Securities Act.

 

(d) Experience of the Purchaser.
The Purchaser has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating
the merits and risks of the prospective investment in the Shares, and has so evaluated the merits and risks of such investment.
The Purchaser is able to bear the economic risk of an investment in the Shares and is able to afford a complete loss of such investment.
The Purchaser and its advisors, if any, have been furnished with all materials relating to the business, financial condition and
results of operations of the Corporation, and materials relating to the offer and sale of the Shares, that have been requested
by the Purchaser or its advisors, if any. The Purchaser acknowledges and understands that its investment in the Shares involves
a significant degree of risk.

 

(e) Certain Transactions and Confidentiality.
Other than consummating the transactions contemplated hereunder, the Purchaser has not directly or indirectly, nor has any Person
acting on behalf of or pursuant to any understanding with the Purchaser, executed any purchases or sales, including Short Sales, of
the securities of the Corporation during the period commencing as of the time that the Purchaser first received a term sheet (written
or oral) from the Corporation or any other Person representing the Corporation setting forth the material terms of the transactions
contemplated hereunder and ending immediately prior to the execution hereof. Other than to other Persons party to this Agreement,
the Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the
existence and terms of this transaction). Notwithstanding the foregoing, for avoidance of doubt, nothing contained herein shall
constitute a representation or warranty, or preclude any actions, with respect to the identification of the availability of, or
securing of, available shares to borrow in order to effect Short Sales or similar transactions in the future.

 

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ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1 Transfer Restrictions.

 

(a) The Shares may only be disposed of
in compliance with state and federal securities laws. In connection with any transfer of Shares other than pursuant to an effective
registration statement, Rule 144, Regulation S, to the Corporation or to an Affiliate of a Purchaser, the Corporation may require
the transferor thereof to provide to the Corporation an opinion of counsel selected by the transferor and reasonably acceptable
to the Corporation, the form and substance of which opinion shall be reasonably satisfactory to the Corporation, to the effect
that such transfer does not require registration of such transferred Shares under the Securities Act. As a condition of transfer,
any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights and obligations
of the Purchaser under this Agreement.

 

(b)As long as is required by the Securities
Act, certificates representing the Shares shall bear a legend in the following form:

 

THIS SECURITY HAS NOT BEEN REGISTERED WITH
THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE
TO THE COMPANY.

 

4.2 Furnishing of Information; Public
Information. Until the Purchaser owns no Shares, the Corporation covenants to maintain the registration of the Common Stock
under Section 12(b) or 12(g) of the Exchange Act and to timely file (or obtain extensions in respect thereof and file within
the applicable grace period) all reports required to be filed by the Corporation after the date hereof pursuant to the Exchange
Act even if the Corporation is not then subject to the reporting requirements of the Exchange Act.

 

4.3 Securities Laws Disclosure; Publicity.
The Corporation shall, by 9:00 a.m. (New York City time) on or prior to the fourth business day immediately following the date
hereof, file a Current Report on Form 8-K with the Commission disclosing the material terms of the transactions contemplated hereby
and attaching this Agreement as an exhibit to be filed with the Commission. From and after the filing of such Current Report, the
Corporation represents to the Purchaser that the Corporation shall have publicly disclosed all material, non-public information
delivered to the Purchaser by the Corporation or any of its Subsidiaries, or any of their respective officers, directors, employees
or agents in connection with the transactions contemplated by the Transaction Documents. The Corporation and the Purchaser shall
consult with each other in issuing any other press releases with respect to the transactions contemplated hereby, and neither the
Corporation nor the Purchaser shall issue any such press release nor otherwise make any such public statement without the prior
consent of the Corporation, with respect to any press release of the Purchaser, or without the prior consent of the Purchaser,
with respect to any press release of the Corporation, which consent shall not unreasonably be withheld or delayed, except if such
disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such
public statement or communication.

 

4.4 Non-Public Information. Neither
the Corporation, nor any other Person acting on its behalf, will provide the Purchaser or its agents or counsel with any information
that the Corporation believes constitutes material non-public information, unless prior thereto the Purchaser shall have entered
into a written agreement with the Corporation regarding the confidentiality and use of such information. The Corporation understands
and confirms that the Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Corporation.

 

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4.5 Use of Proceeds. The Corporation
shall use the net proceeds from the sale of the Shares hereunder for working capital purposes.

 

ARTICLE V.

MISCELLANEOUS

 

5.1 Termination. This Agreement
may be terminated by the Corporation upon notice to the Purchaser if the Purchaser does not perform any of its obligations under
Section 2.1, subject to the satisfaction of the conditions set forth in Section 2.3.

 

5.2 Fees and Expenses. Each party
shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred
by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Corporation
shall pay all Transfer Agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Shares
or Additional Shares to the Purchaser.

 

5.3 Entire Agreement. The Transaction
Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the
subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect to such
matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

5.4 Notices. Any and all notices
or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given
and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile
at the facsimile number set forth on the signature pages attached hereto at or prior to 5:30 p.m. (New York City time) on a business
day, (b) the business day after the date of transmission, if such notice or communication is delivered via facsimile at the
facsimile number set forth on the signature pages attached hereto on a day that is not a business day or later than 5:30 p.m. (New
York City time) on any business day, (c) the second (2nd) business day following the date of mailing, if sent by
U.S. nationally recognized overnight courier service with confirmed instructions for next-day delivery or (d) upon actual
receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set
forth on the signature pages attached hereto.

 

5.5 Amendments; Waivers. No provision
of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment,
by the Corporation and the Purchaser or, in the case of a waiver, by the party against whom enforcement of any such waived provision
is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to
be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement
hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such
right.

 

5.6 Headings. The headings herein
are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions
hereof.

 

5.7 Successors and Assigns. This
Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Purchaser
may assign any or all of its rights under this Agreement to any Person to whom the Purchaser assigns or transfers any Shares; provided,
that such transferee agrees in writing to be bound, with respect to the transferred Shares, by the provisions of the Transaction
Documents that apply to the “Purchaser.”

 

    	11

    	 

    

 

5.8 No Third-Party Beneficiaries.
This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not
for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

5.9 Governing Law. All questions
concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed by and construed
and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law
thereof. All legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this
Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors,
officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts
sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or
with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction
Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient
venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served
in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any other manner permitted by law. If either party shall commence an action, suit or proceeding to enforce
any provisions of the Transaction Documents, then the prevailing party in such action, suit or proceeding shall be reimbursed by
the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation
and prosecution of such action or proceeding.

 

5.10 Survival. The representations
and warranties contained herein shall survive each of the Closings and the deliveries of the Shares for a period of six months.

 

5.11 Execution. This Agreement may
be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall
become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the
parties need not sign the same counterpart. If any signature is delivered by facsimile transmission or by e-mail delivery of a
“.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were
an original thereof.

 

5.12 Severability. If any term,
provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void
or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force
and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable
efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such
term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would
have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared
invalid, illegal, void or unenforceable.

 

5.13 Replacement of Shares. If any
certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, the Corporation shall issue or cause to
be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution
therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Corporation of such
loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable
third-party costs (including customary indemnity) associated with the issuance of such replacement Shares.

 

    	12

    	 

    

 

5.14 Construction. Each of the parties
and/or their respective counsel have reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal
rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in
the interpretation of the Transaction Documents or any amendments thereto. In addition, each and every reference to share prices
and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits, stock
dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

 

5.15 WAIVER OF JURY TRIAL. IN ANY
ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY,
TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER
TRIAL BY JURY.

 

 

 

    	13

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Share Purchase Agreement to be duly executed by their respective authorized signatories as
of the date first indicated above.

 

	
        SUREPURE, INC.

         

         

        By:         /s/
        Stephen M. Robinson                              

        Name: Stephen M. Robinson

        Title:   Chief Financial Officer
	
        Address for Notice:

        405 Lexington Avenue, 25th Floor

        New York, NY 10174

        Attention: Stephen M. Robinson

        Chief Financial Officer

         

        Telecopy: +1 917 368 8005

         

	With a copy to (which shall not constitute notice):	
        Barton, LLP

        420 Lexington Avenue, 18th Floor

        New York, NY 10104

        Attention: William A. Newman

         

        Telecopy: +1 212 687 3667

         

	
        Trinity Asset Management International Limited

         

         

        By:         /s/
        Rajsing Gopaid                                         

        Name: Rajsing Gopaid

        Title:   Director

         
	
        Address for Notice: 

        c/o Dale International Trust Company Limited

        3rd Floor/ Tower A

        1 Cybercity

        Ebene

        MAURITIUS

        Attention:

         

        Telecopy: +230 467 0155

         

         

	With a copy to (which shall not constitute notice):	 

 

 

    	14

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