Document:

Exhibit 10.1

 

EXECUTION VERSION

 

 

SIXTH AMENDMENT TO SECOND AMENDED AND
RESTATED

FIRST LIEN CREDIT AGREEMENT

 

This SIXTH AMENDMENT
TO SECOND AMENDED AND RESTATED FIRST LIEN CREDIT AGREEMENT (“Amendment”), dated as of September 27, 2013
(the “Sixth Amendment Effective Date”), is by and among Energy XXI Gulf Coast, Inc., a Delaware corporation
(the “Borrower”), the lenders party to the Credit Agreement described below (the “Lenders”),
and The Royal Bank of Scotland plc, as administrative agent for the Lenders (in such capacity, the “Administrative Agent”),
and the other parties in the capacities herein identified.

 

 

RECITALS

 

WHEREAS, the Borrower,
the Lenders, the Administrative Agent and certain other Persons are parties to the Second Amended and Restated First Lien Credit
Agreement, dated as of May 5, 2011, as amended by the First Amendment to Second Amended and Restated First Lien Credit Agreement
dated as of October 4, 2011, by the Second Amendment to Second Amended and Restated First Lien Credit Agreement dated as of
May 24, 2012, by the Third Amendment to Second Amended and Restated First Lien Credit dated as of October 19, 2012, by
the Fourth Amendment to Amended and Restated First Lien Credit Agreement dated as of April 9, 2013 and by the Fifth Amendment
to Second Amended and Restated First Lien Credit Agreement dated as of May 1, 2013 (as amended, supplemented, amended and
restated or otherwise modified from time to time, the “Credit Agreement”); and

 

WHEREAS, the Borrower
has requested that the Administrative Agent, the Swing Line Lender, each Issuer, and the Lenders amend the Credit Agreement in
certain respects as set forth herein.

 

NOW, THEREFORE, in consideration
of the premises and the mutual covenants, representations and warranties contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

 

AGREEMENT

 

Section 1. Definitions.
Capitalized terms used herein but not defined herein shall have the meanings as given them in the Credit Agreement, unless
the context otherwise requires.

 

Section 2. Amendment
to Section 1.1 of the Credit Agreement.

 

    	 

    	 

    

 

a)The
definition of “Interest Period” in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety
to the following:

 

“Interest
Period” means, relative to any LIBO Rate Loan, the period beginning on (and including) the date on which such LIBO Rate Loan
is made or continued as, or converted into, a LIBO Rate Loan pursuant to Section 2.3 or 2.4 and shall end on (but exclude) (i) the
day that numerically corresponds to such date one, three or six months thereafter (or, if such month has no numerically corresponding
day, on the last Business Day of such month) or (ii) a day that is specified by the Borrower which day shall be (A) on
or after the day that is one week after such LIBO Rate Loan was made, continued or converted and (B) on or before the day
that is one month after such LIBO Rate Loan was made, continued or converted, in each of the foregoing cases specified in clauses
(i) or (ii) of this definition, as the Borrower may select in its relevant notice pursuant to Section 2.3 or Section 2.4; provided,
that, (y) the Borrower shall not be permitted to select Interest Periods to be in effect at any one time that have expiration
dates occurring on more than six different dates; and (z) no Interest Period for any Loan may end later than the Stated Maturity
Date.

 

b)The
definition of “LIBO Rate” in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to
the following:

 

“LIBO
Rate” means, relative to any Interest Period for LIBO Rate Loans, the rate per annum determined by the Administrative Agent
at approximately 11:00 a.m. (London time) on the date that is two Business Days prior to the beginning of the relevant Interest
Period by reference to the British Bankers’ Association Interest Settlement Rates (or any other Person which takes over the
administration of that rate) for deposits in Dollars (as set forth by the Bloomberg Information Service or any successor thereto
or any other service selected by the Administrative Agent that has been nominated by the British Bankers’ Association (or
any other successor thereto) as an authorized information vendor for the purpose of displaying such rates (a “Screen Rate”)
for a period most closely approximating such Interest Period (and in an amount approximately equal to the amount of the relevant
LIBO Rate Loans). In the absence of a period comparable to the Interest Period being available as a Screen Rate, (a “Discontinued
Interest Period”), then (provided there are Screen Rates for other Interest Periods for Dollars) the LIBO Rate shall
mean the Interpolated Screen Rate as of approximately 11:00 a.m., London time, two Business Days prior to the commencement of such
Interest Period. “Interpolated Screen Rate” means the rate per annum determined by the Administrative Agent (which
determination shall be conclusive and binding absent manifest error) to be equal to the rate which results from interpolating on
a linear basis between: (a) the Screen Rate for the longest period (for which that Screen Rate is available for Dollars) which
is less than the relevant Discontinued Interest Period and (b) the Screen Rate for the shortest period (for which that Screen Rate
is available for Dollars) which exceeds the relevant Discontinued Interest Period, each as of approximately 11:00 a.m. (London
time) two Business Days prior to the commencement of the Discontinued Interest Period.

 

c)Section
1.1 of the Credit Agreement is hereby amended by adding the following definition thereto in alphabetical order:

 

“Sixth
Amendment Effective Date” means September 27, 2013.

 

    	-2-

    	 

    

 

d)Section
2.9 of the Credit Agreement is hereby amended by deleting the cross-reference to “Section 4.3” appearing therein and
inserting in place thereof a cross-reference to “Section 4.4”.

 

Section 3. Amendment
to Schedule III to Credit Agreement. Schedule III to the Credit
Agreement is hereby amended and restated in its entirety to be in the form attached to this Amendment as Annex I.

 

Section 4. New
Borrowing Base and Revolving Loan Commitments. Pursuant to Section
2.8.2 of the Credit Agreement, the Borrower and the Lenders hereby agree that the Borrowing Base is set at $1,087,500,000
for the period from the date hereof to the date of the next determination of the Borrowing Base pursuant to the provisions of Section
2.8 of the Credit Agreement or, if earlier, the date of any other adjustment to the Borrowing Base pursuant to the
provisions of the Credit Agreement, as the case may be. Each Lender hereby agrees that effective as of the Sixth Amendment
Effective Date that its Revolving Loan Commitment is set forth in Schedule III attached as Annex I to this Amendment.

 

Section
5.Assignments. Effective on the Effective Date, each Lender hereby irrevocably
sells and assigns to the each other Lender hereunder and each Lender hereunder hereby irrevocably purchases and accepts subject
to and in accordance with the Standard Terms and Conditions set forth in Annex I to Exhibit D of the Credit Agreement so much of
the Aggregate Commitment such that after giving effect to such sales and assignments, the Lenders have the respective Revolving
Loan Commitments and Percentages set forth in the Commitment Schedule attached hereto as Annex I to this Amendment and to the extent
permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Lenders (in their
respective capacities as Lenders) against any Person, whether known or unknown, arising under or in connection with the Credit
Agreement, the other Loan Documents or in any way based on or related to any of the foregoing, including, but not limited to, contract
claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations
sold and assigned hereby. Such sale and assignment is without recourse to the selling Lenders and without representations or warranty
by the selling Lenders except as expressly provided in paragraph 1.1 of the Standard Terms and Conditions. The Administrative Agent,
the Issuing Bank, the Swing Line Lender and the Borrower hereby consent to the foregoing sale and assignment.

 

Section 6. Conditions
to Effectiveness. This Amendment shall become effective as of the Sixth
Amendment Effective Date when all of the conditions set forth in this Section 3 have been satisfied.

 

(a)The Administrative
Agent shall have received counterparts (in such number as may be requested by the Administrative Agent) of this Amendment signed
on behalf of the Borrower, the Administrative Agent, the Swing Line Lender, the Issuers and all of the Lenders.

  

(b)The Administrative
Agent shall have received a certificate from the Borrower certifying as to the matters set forth in Section 5.2.1 of the Credit
Agreement, provided that each reference to a “Credit Extension” shall be deemed to be a reference to entering
into this Amendment and the transactions contemplated hereby.

 

    	-3-

    	 

    

 

(c)The Administrative
Agent shall have received such other documents and amendments to the Loan Documents as it may reasonably request.

 

(d)The representations
and warranties in Section 4 below shall be true and correct.

 

(e)No Default, Event
of Default or Borrowing Base Deficiency shall have occurred and be continuing.

 

(f)The Administrative
Agent shall have received for its own account, or for the account of each Lender, as the case may be, all fees, costs and expenses
due and payable pursuant to Section 3.3 of the Credit Agreement and, if then invoiced, pursuant to Section 10.3 of the
Credit Agreement.

 

Upon the effectiveness
of this Amendment pursuant to the foregoing, the Administrative Agent is authorized by the Lenders to release from the Lien of
the Security Documents the properties described in the Borrower’s letter dated September 3, 2013, to The Royal Bank of Scotland
plc, Wells Fargo Bank, NA and UBS, AG.

 

Section 7. Representations
and Warranties. The Borrower hereby represents and warrants that after
giving effect hereto:

 

(a)the representations
and warranties of the Obligors contained in the Loan Documents are true and correct in all material respects, other than those
representations and warranties that expressly relate solely to a specific earlier date, which shall remain correct in all material
respects as of such earlier date;

 

(b)the execution,
delivery and performance by the Borrower and each other Obligor of this Amendment and the other Loan Documents have been duly authorized
by all necessary corporate or other action required on their part and this Amendment, along with the Credit Agreement as amended
hereby and the other Loan Documents, constitutes the legal, valid and binding obligation of each Obligor a party thereto enforceable
against them in accordance with its terms, except as its enforceability may be affected by the effect of bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect relating to or affecting the rights or remedies of
creditors generally;

 

(c)neither the execution,
delivery and performance of this Amendment by the Borrower and each other Obligor, the performance by them of the Credit Agreement
as amended hereby nor the consummation of the transactions contemplated hereby does or shall contravene, result in a breach of,
or violate (i) any provision of any Obligor’s certificate or articles of incorporation or bylaws or other similar documents,
or agreements, (ii) any law or regulation, or any order or decree of any court or government instrumentality, or (iii) any
indenture, mortgage, deed of trust, lease, agreement or other instrument to which any Obligor or any of its Subsidiaries is a party
or by which any Obligor or any of its Subsidiaries or any of their property is bound, except in any such case to the extent such
conflict or breach has been waived by a written waiver document, a copy of which has been delivered to Administrative Agent on
or before the date hereof; and

 

    	-4-

    	 

    

 

(d)no Default or
Event of Default or Borrowing Base Deficiency has occurred and is continuing.

 

Section
8.Loan Document; Ratification.

 

(a)This Amendment
is a Loan Document. Each reference to the Credit Agreement in any Loan Document will deemed to be a reference to the Credit Agreement
as amended by this Amendment.

 

(b)The Borrower and
each other Obligor hereby ratifies, approves and confirms in every respect all the terms, provisions, conditions and obligations
of the Credit Agreement as amended hereby and each of the other Loan Documents including without limitation all Mortgages, Security
Agreements, Guaranties, Control Agreements and other Security Documents, to which it is a party.

 

Section 9. Costs
and Expenses. As provided in Section 10.3 of the Credit Agreement,
the Borrower agrees to reimburse Administrative Agent for all fees, costs, and expenses, including the reasonable fees,
costs, and expenses of counsel or other advisors for advice, assistance, or other representation, in connection with this
Amendment and any other agreements, documents, instruments, releases, terminations or other collateral instruments delivered
by the Administrative Agent in connection with this Amendment.

 

Section 10. GOVERNING
LAW. THIS AMENDMENT SHALL BE DEEMED A CONTRACT AND INSTRUMENT MADE UNDER
THE LAWS OF THE STATE OF NEW YORK AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK AND THE LAWS OF THE UNITED STATES OF AMERICA, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

 

Section 11. Severability.
Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such provision and such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions of this Amendment or affecting the validity or enforceability of such provision in any other jurisdiction.

 

Section 12. Counterparts.
This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the same
instrument, and any party hereto may execute this Amendment by signing one or more counterparts. Any signature hereto
delivered by a party by facsimile or electronic transmission shall be deemed to be an original signature hereto.

 

Section 13. No
Waiver. Except as expressly set forth in this Amendment, the execution,
delivery and effectiveness of this Amendment shall not operate as a waiver of any default of the Borrower or any other
Obligor or any right, power or remedy of the Administrative Agent or the other Secured Parties under any of the Loan
Documents, nor constitute a waiver of (or consent to departure from) any terms, provisions, covenants, warranties or
agreements of any of the Loan Documents. The parties hereto reserve the right to exercise any rights and remedies available
to them in connection with any present or future defaults with respect to the Credit Agreement or any other provision of any
Loan Document.

 

    	-5-

    	 

    

 

Section 14. Successors
and Assigns. This Amendment shall be binding upon the Borrower and each
other Obligor party hereto and their successors and permitted assigns and shall inure, together with all rights and remedies
of each Secured Party hereunder, to the benefit of each Secured Party and their respective successors, transferees and
assigns.

 

Section 15. Entire
Agreement. THIS AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN
DOCUMENTS REPRESENT THE FINAL AGREEMENT OF THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED
BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

 

THERE ARE NO UNWRITTEN
ORAL AGREEMENTS BETWEEN THE PARTIES.

 

(Signature Pages Follow)

 

    	-6-

    	 

    

 

In Witness Whereof, the
parties hereto have caused this Amendment to be duly executed and delivered by their respective duly authorized officers as of
the date first written above.

 

	 	BORROWER:	 
	 	 	 
	 	ENERGY XXI GULF COAST, INC.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Ben Marchive	 
	 	 	Name:Ben Marchive	 
	 	 	Title:President	 

 

    	S-1

    	 

    

  

	 	ADMINISTRATIVE AGENT, ISSUERS AND LENDERS:	 
	 	 	 
	 	THE ROYAL BANK OF SCOTLAND plc, as Administrative Agent, Issuer and Lender	 
	 	 	 
	 	 	 
	 	By:	/s/ Sanjay Remond	 
	 		Name:  Sanjay Remond	 
	 		Title:   Authorised Signatory	 

  

    	S-2

    	 

    

 

	 	UBS AG, STAMFORD BRANCH, as Lender and Issuer	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Joselin Fernandes	 
	 	 	Name:  Joselin Fernandes	 
	 	 	Title:  Associate Director  	 
	 	 	 	 
	 	 		 
	 	By:	/s/ Kenneth Chin	 
	 	 	Name: Kenneth Chin	 
	 	 	Title: Director	 

  

    	S-3

    	 

    

 

	 	WELLS FARGO BANK, N.A., as Issuer and Lender	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Betsy Jocher	 
	 	 	Name:  Betsy Jocher	 
	 	 	Title:  Director	 

  

    	S-4

    	 

    

 

	 	CAPITAL ONE, NATIONAL ASSOCIATION, as Lender	 
	 	 	 
	 	 	 
	 	By:	/s/ Matthew L. Molero	 
	 	 	Name:  Matthew L. Molero	 
	 	 	Title:  Vice President	 

 

    	S-5

    	 

    

 

	 	REGIONS BANK, as Lender and as Swing Line Lender	 
	 	 	 	 
		 	 	 
	 	By:	/s/ Kelly L. Elmore III	 
	 	 	Name:  Kelly L. Elmore III	 
	 	 	Title:  Senior Vice President	 

  

    	S-6

    	 

    

  

	 	THE BANK OF NOVA SCOTIA, as Lender	 
	 	 	 
	 	 	 
	 	By:	/s/ Terry Donovan	 
	 	 	Name:  Terry Donovan	 
	 	 	Title:  Managing Director	 

  

    	S-7

    	 

    

 

	 	ING CAPITAL LLC, as Lender	 
	 	 	 
	 	 	 
	 	By:	/s/ Juli Bieser	 
	 	 	Name:  Juli Bieser	 
	 	 	Title:  Director	 

 

    	S-8

    	 

    

 

	 	NATIXIS, as Lender	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Timothy L. Polvado	 
	 	 	Name:  Timothy L. Polvado	 
	 	 	Title:  Senior Managing Director	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Stuart Murray	 
	 	 	Name:  Stuart Murray	 
	 	 	Title:  Managing Director	 

  

    	S-9

    	 

    

 

	 	TORONTO DOMINION (TEXAS) LLC, as Lender	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Marie Fernandes	 
	 	 	Name:  Marie Fernandes	 
	 	 	Title:  Authorized Signatory	 

  

    	S-10

    	 

    

 

	 	BARCLAYS BANK PLC, as Lender	 
	 	 	 
	 	 	 
	 	By:	/s/ Vanessa A. Kurbatskiy	 
	 	 	Name:  Vanessa A. Kurbatski	 
	 	 	Title:  Vice President	 

 

    	S-11

    	 

    

  

	 	CITIBANK, N.A., as Lender	 
	 	 	 
	 	 	 
	 	By:	/s/ Peter Kardos	 
	 	 	Name:  Peter Kardo	 
	 	 	Title:  Vice President	 

  

    	S-12

    	 

    

  

	 	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as Lender	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Vipul Dhadda	 
	 	 	Name:  Vipul Dhadda	 
	 	 	Title:  Authorized Signatory	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Michael Spaight	 
	 	 	Name:  Michael Spaight	 
	 	 	Title:  Authorized Signatory	 

 

    	S-13

    	 

    

 

	 	COMERICA BANK, as Lender	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Jeff Treadway	 
	 	 	Name:  Jeff Treadway	 
	 	 	Title:  Vice President	 

 

    	S-14

    	 

    

 

	 	COMMONWEALTH BANK OF AUSTRALIA, as Lender	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Damien Podagiel	 
	 	 	Name:  Damien Podagiel	 
	 	 	Title:  Senior Associate	 

 

    	S-15

    	 

    

  

	 	DEUTSCHE BANK AG, NEW YORK BRANCH, as Lender	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Michael Getz	 
	 	 	Name: Michael Getz	
	 	 	Title:  Vice President	
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Lisa Wong	 
	 	 	Name: Lisa Wong	
	 	 	Title: Vice President	

 

 

    	S-16

    	 

    

 

	 	WHITNEY BANK, as Lender	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Liana Tchernysheva	 
	 	 	Name: Liana Tchernysheva	 
	 	 	Title:  Senior Vice President	 

  

    	S-17

    	 

    

 

	 	ABN AMRO CAPITAL USA LLC, as Lender	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Darrell Holley	 
	 	 	Name: Darrell Holley	
	 	 	Title:  Managing Director	
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Casey Lowary	 
	 	 	Name: Casey Lowary	
	 	 	Title: Executive Director	

  

    	S-18

    	 

    

  

	 	AMEGY BANK NATIONAL ASSOCIATION, as Lender	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/  Kevin A. James	 
	 	 	Name:  Kevin A. James	 
	 	 	Title:  Vice President	 

   

    	S-19

    	 

    

  

	 	FIFTH THIRD BANK, as Lender	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Justin B. Crawford	 
	 	 	Name: Justin B. Crawford	 
	 	 	Title:  Director	 

   

    	S-20

    	 

    

 

	 	IBERIABANK,, as Lender	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ W. Bryan Chapman	 
	 	 	Name: W. Bryan Chapman	 
	 	 	Title:  Executive Vice President	 

   

    	S-21

    	 

    

   

	 	KEYBANK NATIONAL ASSOCIATION, as Lender	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Paul J. Pace	 
	 	 	Name:  Paul J. Pace	 
	 	 	Title:  Senior Vice President	 

 

    	S-22

    	 

    

 

	 	SOVEREIGN BANK, N.A., as Lender	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Puiki Lok	 
	 	 	Name:  Puiki Lok	 
	 	 	Title:  Vice President	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Vaughn Buck	 
	 	 	Name:  Vaughn Buck	 
	 	 	Title:  Executive Vice	 

 

    	S-23

    	 

    

 

	 	SUMITOMO MITSUI BANKING CORPORATION, as Lender	 
	 	 	 
	 	 	 
	 	By:	/s/ James D. Weinstein	 
	 	 	Name:  James D. Weinstein	 
	 	 	Title:  Managing Director	 

  

    	S-24

    	 

    

 

	 	ACKNOWLEDGED AND AGREED AS OF THE DATE FIRST ABOVE WRITTEN:	 
	 	 	 
	 	ENERGY XXI GOM, LLC	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Ben Marchive	 
	 	 	Name: Ben Marchive	 
	 	 	Title:   President	 

  

 

	 	ENERGY XXI TEXAS ONSHORE, LLC	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Ben Marchive	 
	 	 	Name: Ben Marchive	 
	 	 	Title:   President	 

  

 

	 	ENERGY XXI ONSHORE, LLC	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Ben Marchive	 
	 	 	Name: Ben Marchive	 
	 	 	Title:   President	 

  

 

	 	ENERGY XXI PIPELINE, LLC	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Ben Marchive	 
	 	 	Name: Ben Marchive	 
	 	 	Title:   President	 

  

 

	 	ENERGY XXI LEASEHOLD, LLC	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Ben Marchive	 
	 	 	Name: Ben Marchive	 
	 	 	Title:   President	 

  

    	S-25

    	 

    

  

	 	ENERGY XXI PIPELINE II, LLC	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Ben Marchive	 
	 	 	Name: Ben Marchive	 
	 	 	Title:   President	 

  

 

	 	MS ONSHORE, LLC

	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Ben Marchive	 
	 	 	Name: Ben Marchive	 
	 	 	Title:   President	 

 

 

	 	ACKNOWLEDGED AND AGREED AS OF
THE DATE FIRST ABOVE WRITTEN IN ITS CAPACITY AS GUARANTOR UNDER ITS LIMITED RECOURSE GUARANTY AND GRANTOR UNDER ITS PLEDGE AGREEMENT
AND IRREVOCABLE PROXY DELIVERED IN CONNECTION WITH THE CREDIT AGREEMENT:	 
	 	 	 
	 	ENERGY XXI U.S.A., INC	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Ben Marchive	 
	 	 	Name: Ben Marchive	 
	 	 	Title:   President	 

  

    	S-26From the Desk of

David R. Wells

 

CONSULTING AGREEMENT

 

THIS CONSULTING AGREEMENT (the "Agreement")
is entered into as of April 22, 2013, by and between Petrosonic Energy, Inc., a Nevada corporation (the “Company"),
and StoryCorp Consulting, Inc., a Nevada corporation (“StoryCorp").

 

RECITALS

 

WHEREAS,
the Company desires to engage StoryCorp to provide certain finance, accounting and management services with respect to the Company's
business; and

 

WHEREAS,
StoryCorp represents that they have considerable knowledge and experience in finance, accounting and management services, and desires
to provide those services to the Company, all as more specifically set forth below.

 

NOW, THEREFORE,
in consideration of the promises and the respective covenants and agreements of the parties herein contained, the parties hereby
agree as follows.

 

1.Consulting
Engagement: Term. The Company hereby engages StoryCorp and StoryCorp hereby accepts such engagement by the Company as a consultant
and advisor with respect to the matters specifically set forth herein and/or Schedule "A" attached hereto. The term of
this Agreement shall commence on the date of execution of this Agreement and continue on a monthly basis unless terminated earlier
as herein provided.

 

2.Consulting
Services. During the term of the Agreement, StoryCorp shall devote the time necessary from the StoryCorp offices, completing
tasks as outlined in Schedule A. StoryCorp represents and warrants to the Company that they are able to provide such services in
a professional manner consistent with this type of engagement. The parties understand and further agree that, during the Term of
the Agreement, StoryCorp is not restricted from providing similar consulting services to other companies, provided that any such
other activities shall not materially interfere with the services required to be provided hereunder.

 

The Company agrees
to respond timely by email to activity reports submitted by StoryCorp. In the absence of comments from the Company, StoryCorp assumes
that activities are accepted by the Company.

 

3.Compensation.
In consideration of the consulting services to be rendered as set forth herein, the Company shall compensate StoryCorp as follows:

 

		(a)	$10,000 payable upon execution of this Agreement. The fee will be payable
in $7,500 cash and $2,500 in restricted common stock of the Company. The number of shares issued will be based on a share price
equal to 80% of the VWAP of the prior month, but in any event not less than $0.01;

 

    	 

    	 

    

 

 

		(b)	$7,500 payable at the beginning of each calendar month for services rendered
beginning June 1, 2013. The fee will be payable in full in cash, or $5,000 cash and $2,500 in restricted common stock of the Company,
at the discretion of the Company. The number of shares issued will be based on a share price equal to 80% of the VWAP of the prior
month, but in any event not less than $0.01;

 

		(c)	Quarterly bonuses payable in cash or restricted common stock at the sole
discretion of the Company, and

 

		(d)	For services outside of those described in Exhibit A, StoryCorp will issue
monthly invoices at a bill rate of $250 per hour, payable $125 in cash and $125 in restricted common stock (priced and preference
as noted in 3(b)).

 

4.Termination.
This Agreement may be terminated in any one of the following ways:

 

(a)By Company
With or Without Cause. At any time after the commencement of this Agreement, the Company may, with or without cause, terminate
this Agreement, effective thirty (30) days after written notice is provided to StoryCorp.

 

(b)By StoryCorp
With or Without Cause. At any time after the commencement of this Agreement, StoryCorp may, with or without cause, terminate
this Agreement, effective thirty (30) days after written notice is provided to Company.

 

(c)By StoryCorp,
10 Day Notice. At any time after the commencement of this Agreement, StoryCorp may terminate this Agreement with a 10-day written
notice for reasons of non-payment of fees.

 

5.Expenses.
During the term of the Agreement, the Company shall pay or promptly reimburse StoryCorp for reasonable and necessary travel, lodging,
meals, telephone, copying, delivery, and other expenses paid or incurred by StoryCorp in connection with the direct performance
of its services, activities and responsibilities under this Agreement, upon presentation of documented expenses, statements, or
other evidences of expenses provided. Amounts incurred in excess of $250 require pre-approval by email.

 

6.Representations
and Warranties of the Company.

 

(a)The Company hereby
represents and warrants that it has full power and legal right and authority to execute, deliver, and perform under this Agreement,
and that the officers executing this Agreement on behalf of the Company have full power of authority to do so.

 

    	StoryCorp Agreement 2012	Page 2

    	 

    

 

 

(b)The Company hereby
represents and warrants that this Agreement has been duly authorized by all necessary corporate action, has been duly executed
and delivered by the Company and is enforceable against the Company in accordance with its terms, subject only to the applicable
bankruptcy, insolvency, reorganization or other similar laws relating to or affecting the rights of creditors generally and to
principles of equity.

 

(c)The Company hereby
covenants and agrees to indemnify and hold harmless StoryCorp from and against and in respect of (i) any and all losses and damages
resulting from any misrepresentations or breaches of any warranty, covenant or agreement by the Company made or contained in this
Agreement and (ii) any and all actions, suit, proceedings, claims, demands, judgments, costs and expenses, including attorney's
fees, incident to the foregoing.

 

7.Representations,
Warranties and Covenants of StoryCorp.

 

(a)StoryCorp hereby
represents and warrants that he has full power and legal right and authority to execute, deliver, and perform under this Agreement.

 

(b)StoryCorp hereby
covenants and agrees to indemnify and hold harmless the Company from and against and in respect of (i) any and all losses and damages
resulting from any misrepresentation or breach of any warranty, covenant or agreement by StoryCorp made or contained in this Agreement
and (ii) any and all actions, suit, proceedings, claims, demands, judgments, costs and expenses, including attorney’s fees,
incident to the foregoing.

 

(c)StoryCorp acknowledges
that it has not has signed a Non-Disclosure agreement.

 

8.Independent
Contractor Status.

 

It is expressly understood
and agreed that this is a consulting services agreement only and does not constitute an employer/employee relationship. Accordingly,
StoryCorp agrees that StoryCorp shall be solely responsible for the payment of its own taxes or sums due to the federal, state
or local governments, office overhead, workers compensation, fringe benefits, pension contributions and other expenses. StoryCorp
is an independent contractor and the Company shall have no right to control the activities of StoryCorp other than to require StoryCorp
to provide its consulting services in a professional manner pursuant to the terms and conditions of this Agreement. StoryCorp shall
have no authority to bind the Company except as provided for by the Company in writing.

 

    	StoryCorp Agreement 2012	Page 3

    	 

    

 

9.Miscellaneous
Provisions.

 

(a)Notices.
Any notice, request, demand or other communications required or permitted pursuant to this Agreement shall be in writing and shall
be deemed to have been properly given if delivered in person or by courier or other overnight carrier, by facsimile transmission
or by certified or registered mail, postage prepaid and return receipt requested, to each party hereto at the address indicated
below or at any other address as may be designated from time to time by written notice to each party. Such notice shall be deemed
given upon delivery.

 

	If to StoryCorp:	StoryCorp Consulting
	 	3435 Ocean Park Blvd. #107, Box 478
	 	Santa Monica, CA  90405
	 	 
	If to Company:	Petrosonic Energy, Inc.
	 	Suite 204, 205 – 9th Avenue SE
	 	Calgary, AB, Canada, T2G 0R3

 

10.Entire Agreement.
This Agreement constitutes the entire agreement between the parties hereto relating to the subject matter hereof, and supersedes
all prior written or oral agreements, commitments or understandings with respect to the matters provided for herein, and no modification
shall be binding unless set forth in writing and duly executed by each party hereto.

 

11.Binding Effects.
This Agreement shall be binding upon and inure to the benefit of the parties hereto their respective heirs, executors, administrators
and successors, including any corporation with which or into which the Company may be merged or which may succeed to its assets
or business.

 

12.Headings.
The headings or captions of this Agreement are inserted only as a matter of convenience and for reference and in no way define,
limit, extend or scope of this Agreement or the intent of any provisions hereof.

 

13.Identification.
Whenever required by the context of this Agreement, the singular number shall include the plural, and the word “person”
or “party" shall include a corporation, limited liability company, firm, partnership, or other form of association.

 

14.Waiver.
The waiver by any party to this Agreement of a breach of any provision of this Agreement shall not be deemed a continuing waiver
or a waiver of any subsequent breach of that or any other provision of this Agreement.

 

15.Arbitration.
In the event of any dispute between the parties which arises under this Agreement, such dispute shall be settled by arbitration
in accordance with the rules for commercial arbitration of the American Arbitration Association (or a similar organization) in
effect at the time such arbitration is initiated. A list of arbitrators shall be presented to the Claimant and Respondent from
which one will be chosen using the applicable rules. The hearing shall be conducted in the City of Los Angeles, California, unless
both parties consent to a different location. The decision of the arbitrator shall be final and binding upon all Parties.

 

    	StoryCorp Agreement 2012	Page 4

    	 

    

 

The prevailing party
shall be awarded all of the filing fees and related administrative costs. Administrative and other costs of enforcing an arbitration
award, including the costs of subpoenas, depositions, transcripts and the like, witness fees, payment of reasonable attorney's
fees, and similar costs related to collecting an arbitrator's award, will be added to, and become a part of, the amount due pursuant
to this Agreement. Any questions involving contract interpretation shall use the laws of state of the venue as described above.
An arbitrator's decision may be entered in any jurisdiction in which the party has assets in order to collect any amounts due hereunder.

 

16.Counterparts.
For the convenience of the parties hereto, this Agreement may be executed in one or more counterparts, which shall each be considered
an original.

 

17.Severability.
If any provision of this Agreement shall be declared invalid or unenforceable, the remainder of this Agreement will continue in
full force and effect so far as the intent of the parties hereto can be carried out.

 

18.Construction.
Should any provision of this Agreement require judicial interpretation, it is agreed that the court interpreting or construing
the same shall not be apply a presumption that the terms hereof shall be more strictly construed or strictly against the party
who itself or through its agent prepared the same, it being agreed that the agents of all parties have participated in the preparation
hereof.

 

19.Recitals.
The recitals set forth at the beginning of this Agreement are incorporated by reference in, and made a part of this Agreement.

 

20.Governing
Law. This Agreement shall be governed by and construed under the laws of the State of California (irrespective of its choice
of law principles). Each party hereby consents to the exclusive jurisdiction of the state and federal courts sitting in Los Angeles
County, California, in any action on a claim arising out of, under or in connection with this Agreement or the transactions contemplated
by this Agreement. Each party further agrees that personal jurisdiction over such party may be effected by service of process by
registered or certified mail addressed as provided in Section 9(a) of this Agreement, and that when so made shall be as if
served upon such party personally within the State of California.

 

    	StoryCorp Agreement 2012	Page 5

    	 

    

 

 

 

	COMPANY	 	StoryCorp Consulting
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/ Art Agolli	 	By:	/s/ David R. Wells
	Name:	Art Agolli	 	Name:	David R. Wells
	Title:	CEO	 	Title:	President
	 	 	 	 	 
	Date:	24 April, 2012	 	Date:	4/26/12

 

 

    	StoryCorp Agreement 2012	Page 6

    	 

    

 

 

Schedule
A

 

 

Description of Services:

 

		1.	Financial and SEC Filings

 

		a)	Responsible for the closing of the financial books quarterly.

 

		a)	StoryCorp will process of all invoices, receivables and other bookkeeping functions.

 

		b)	StoryCorp will handle cash functions at the discretion of management.

 

		b)	Responsible for the preparation of quarterly financial statements and variance analysis for management.

 

		c)	Responsible for the preparation of quarterly and annual Form 10 filings, and their timely filing, with the SEC.

 

		d)	Responsible for proper formatting and filing with SEDAR, as long as is applicable.

 

 

The Company acknowledges
that StoryCorp and/or its affiliates are not registered Broker/ Dealers and therefore are unable to accept payment for fund raising
as a percentage of the amount raised. As well, the Company receiving funding is not a criterion for continued engagement and StoryCorp
makes no promises as to its ability to arrange funding in any form for the Company.

 

 

Company and StoryCorp agree to periodically review and amend,
if necessary, the Schedule A items.

 

 

	/s/
    Art Agolli	 	/s/
    David R. Wells
	Company (Initial)	 	StoryCorp (Initial)

 

    	StoryCorp Agreement 2012	Page 7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00221-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00221-of-00352.parquet"}]]