Document:

Senior Management Settle Agreement

 Exhibit 10.42 
 SENIOR MANAGEMENT SETTLEMENT AGREEMENT 
 This Senior Management Settlement Agreement (the
“Settlement Agreement”) is entered into on this 30th day of June, 2009 (the “Signing Date”), between Energy Partners, Ltd. (the “Company”) and Thomas DeBrock
(“Individual”) (collectively, the “Parties”). 
 RECITALS 
 WHEREAS, the Company and Individual have entered into various arrangements that provide the Individual with certain potential claims to receive
cash payments and/or the settlement of equity compensation awards in exchange for Individual’s continuous employment with the Company; 
 WHEREAS, the Company is undergoing a significant restructuring that requires the Company to address its ability to fully perform its potential obligations under these arrangements; 
 WHEREAS, the Company’s promise to pay the settlement payment provided for within this Settlement Agreement is sufficient consideration for
the exchange of Individual’s potential claims under the arrangements noted below; 
 WHEREAS, subject to the approval of the
United States Bankruptcy Court for the Southern District of Texas, Houston Division (the “Court”) in that certain case styled In re Energy Partners, Ltd., et al., case no. 09-32957 (jointly administered), the Company
and Individual now desire to amend the Parties’ rights and obligations with regard to the compensation arrangements in exchange for new rights and obligations that will be governed solely by this Settlement Agreement; and 
 WHEREAS, each arrangement by and between the Company and Individual that shall be affected by this Settlement Agreement is specified below.

 NOW, THEREFORE, in consideration of the mutual promises and benefits contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 
 SETTLEMENT AGREEMENT

 1. Effectiveness of Agreement. This Settlement Agreement shall become effective only upon the occurrence of the
following two events: (a) Individual executes this Settlement Agreement within the specified time period noted below, and (b) the Court approves this Settlement Agreement (the “Approval Date”) (the date on which the
later of the two individual events occur shall be referred to herein as the “Effective Date”). For Individual’s execution to become effective under this Section 1, Individual must execute and return this Settlement
Agreement to the Company by the later of the following dates: (i) June 30, 2009, and (ii) the next business day immediately following the Approval Date. 
 2. Arrangements. As of the Effective Date, Individual is a party to, a participant in, and/or has an interest in connection with the following arrangements with or sponsored by the Company: 

	 	•	 	 Deferred compensation arrangement, evidenced by a letter to Individual dated November 29, 2007 

  

	 	•	 	 Energy Partners, Ltd. 2006 Long Term Stock Incentive Plan Cash-Settled Restricted Share Unit Agreement 

  

	 	•	 	 Bonus for the 2008 calendar year 

 For
purposes of this Settlement Agreement, the arrangements noted above in this Section 2 shall be collectively referred to as the “Arrangements.” 
 3. Exchange. Individual will waive, release, discharge, return, surrender or abandon, as appropriate, any and all potential claims to
receive cash and/or other property arising in respect of, and will surrender to the Company all outstanding equity compensation awards granted pursuant to, the Arrangements (collectively, the “Obligations”), in exchange for
an allowed general unsecured claim against the Company in the amount of $60,000 (the “Settlement Payment”). The Settlement Payment shall be paid to Individual in accordance with the terms of a chapter 11 plan of
reorganization confirmed by the Court (the date on which such Settlement Payment is made, the “Settlement Payment Date”), provided that Individual is still employed by the Company on the Settlement Payment Date or, if
Individual is not employed by the Company on the Settlement Payment Date, Individual’s termination of employment was due solely to a termination by the Company without Cause. For purposes of this Agreement, “Cause” shall
mean that Individual: (i) has engaged in gross negligence, gross incompetence or willful misconduct in the performance of Individual’s duties with respect to the Company or any of its affiliates, (ii) has refused without proper legal
reason to perform Individual’s duties and responsibilities to the Company or any of its affiliates faithfully and to the best of Individual’s abilities, (iii) has materially breached any material provision of a written agreement or
corporate policy or code of conduct established by the Company or any of its affiliates, (iv) has willfully engaged in conduct that is materially injurious to the Company or any of its affiliates, (v) has failed to devote substantially all
of Individual’s business time to the Company’s business affairs (excluding failures due to illness, incapacity, vacations, incidental civic activities, and incidental personal time), (vi) has disclosed without proper authorization
confidential information of the Company or any of its affiliates that is injurious to any such entity, (vii) has failed to meet the performance objectives or standards established for Individual’s job position by Individual’s
employer, (viii) has committed an act of theft, fraud, embezzlement, misappropriation or willful breach of a fiduciary duty to the Company or any of its affiliates, or (ix) has been convicted of (or pleaded no contest to) a crime involving
fraud, dishonesty or moral turpitude or any felony (or a crime of similar import in a foreign jurisdiction). 
 4. Waiver, Release
and Compromise. The Settlement Payment shall be conditioned upon the execution by Individual of a release agreement in favor of the Company in the form attached hereto as Appendix A (the “Release Agreement”)
with such modifications as the Company may reasonably request. The Release Agreement must be executed and returned to the Company alongside this Settlement Agreement in accordance with the time limitations described in Section 1 of this
Settlement Agreement. 
 5. Agreement. The Parties understand and agree that (a) the consideration for this Settlement
Agreement is contractual and not a mere recital, (b) the Company’s promise to pay the Settlement Payment is sufficient consideration for the exchange of the Individual’s potential claims under the Arrangements, (c) each Party has
had the opportunity to engage counsel to 

  

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review this Settlement Agreement and advise such Party with respect hereto, (d) this Settlement Agreement and the agreements contained herein are
binding upon, and inure to the benefit of, the Parties, their respective successors and assigns, and all persons claiming by or through such Parties, and (e) Individual’s sole right hereunder is to receive the Settlement Payment in
exchange for the Release Agreement and, if Individual does not execute the Release Agreement, Individual shall have no right to receive the Settlement Payment. This Settlement Agreement shall be construed as if jointly drafted by the Parties and no
presumption or burden of proof shall arise favoring or disfavoring either Party by virtue of the authorship of any provision of this Settlement Agreement. 
 6. Complete Agreement. This Settlement Agreement and the Release Agreement contain the complete agreement of the Parties with respect to the subject matter hereof, and supersede all prior and
contemporaneous agreements, understandings, representations and negotiations relating thereto. This Settlement Agreement may be modified only by written amendment executed by both Parties. 
 7. Severability. If any provision contained in this Settlement Agreement is determined to be void, illegal or unenforceable, in whole or in
part, then the other provisions contained herein shall remain in full force and effect as if the provision that was determined to be void, illegal or unenforceable had not been contained herein. 
 8. No Admission of Liability. This Settlement Agreement is not an admission of any liability but is a compromise and neither this
Settlement Agreement nor the payment or provision of the Settlement Payment shall be treated as an admission of liability. All communications (whether oral or in writing) between and/or among the Parties, their counsel and/or their respective
representatives relating to, concerning or in connection with this Settlement Agreement, the negotiation thereof, and information exchanged between the Parties shall be governed and protected in accordance with Federal Rule of Evidence 408 to the
fullest extent permitted by law. 
 9. Governing Law. This Settlement Agreement shall be interpreted under and governed by,
construed and enforced in accordance with, and subject to, the laws of the State of Delaware, without giving effect to any principles of conflict of laws. 
  

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 IN WITNESS WHEREOF, the Parties have executed this Settlement Agreement as of the day and year
first above written. 
  

			
	ENERGY PARTNERS, LTD.
		
	By:	 	/s/ Alan Bell
		
	Name:	 	Alan Bell
		
	Title:	 	Chief Restructuring Officer
	
	INDIVIDUAL
	
	/s/ Thomas DeBrock
	Thomas DeBrock

  

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 Appendix A 
 RELEASE AGREEMENT 
 This Release Agreement (this “Release”) is executed by
Thomas DeBrock (the “Individual”) this 30th day of June, 2009 (the “Effective Date”). In consideration of the benefits to be derived from this Release, the covenants and agreements set forth herein,
and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the execution and delivery hereof, the Individual hereby agrees as follows: 
 1. Senior Management Settlement Agreement. This Release is executed by the Individual pursuant to the requirements of the Senior Management
Settlement Agreement between the Individual and Energy Partners, Ltd. (the “Company”) executed as of the date hereof (the “Settlement Agreement”), as a condition to the receipt of any payments
thereunder by Individual. Terms not otherwise defined in this Release shall have the respective meanings given to such terms within the Settlement Agreement. 
 2. Release and Waiver by Individual. For and in consideration of the covenants and promises contained herein and in the Settlement Agreement, the receipt and sufficiency of which are hereby acknowledged,
Individual, on behalf of himself and his family, assigns, representatives, agents, heirs and/or attorneys, if any, hereby covenants not to sue and fully, finally and forever completely waives, releases and discharges the Company, along with each of
its present and former parents, subsidiaries and/or affiliates, predecessors, successors and/or assigns, if any (collectively, the “Company Parties”), as well as each of the Company Parties’ respective past, present and
future officers, directors, managers, members, shareholders, employees, agents, attorneys and representatives, if any, jointly and severally (collectively, with the Company Parties, the “Company Released Parties”), of and
from any and all claims, actions, obligations, liabilities, demands and/or causes of action, of whatever kind or character, whether now known or unknown, which Individual has or might claim to have against any of the Company Released Parties:

 (a) for the Obligations; 
 (b)
for any and all injuries, harms, damages (whether actual or punitive), costs, losses, expenses, attorneys’ fees and/or liabilities or other detriments, other than those relating to fraud, arising out of the Settlement Agreement, including, but
not limited to, the return, surrender, or abandonment of Individual’s potential claims to receive cash, other property or the Individual’s equity compensation awards pursuant to such Settlement Agreement; and 
 (c) for any and all injuries, harms, damages (whether actual or punitive), costs, losses, expenses, attorneys’ fees and/or liabilities or other
detriments, if any, whenever incurred or suffered by Individual arising from, relating to, or in any way connected with, any fact, event, transaction, action or omission that occurred or failed to occur prior to the Effective Date (but excluding
claims arising out of fraud), including, without limitation: 
 (i) any claim under state or Federal law that provides civil
remedies for the enforcement of rights arising out of the employment relationship, including, without limitation, discrimination claims such as claims or causes of action under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C.
§ 2000 et seq.; Civil Rights 

  

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Act of 1866, 42 U.S.C. § 1981; Civil Rights Act of 1991, 42 U.S.C. § 1981a; Americans with Disabilities Act, 42 U.S.C. § 12101 et
seq.; Fair Labor Standards Act, 29 U.S.C. § 201, et seq.; Employee Retirement Income Security Act, 29 U.S.C. § 1000 et seq.; Family and Medical Leave Act, 29 U.S.C. § 2601, et seq.; Worker Adjustment
Retraining and Notification Act, 29 U.S.C. § 2101, et seq.; Age Discrimination in Employment Act, 29 U.S.C. § 621, et seq., as amended by the Older Workers Benefit Protection Act of 1990, or any other Federal or state statute
prohibiting discrimination in employment or granting rights to an individual arising out of an employment relationship; and 
 (ii) any claims for unpaid or withheld wages, bonuses, benefits, stock, stock options, or profit-sharing, wrongful discharge or termination, breach of contract, promissory estoppel, breach of any implied covenants (including any duty of
good faith and fair dealing), negligence, negligent hiring, negligent supervision, negligent retention, defamation, invasion of privacy, slander, and intentional infliction of emotional distress. 
 3. Additional Covenants and Agreements. 
 (a) Individual hereby waives, releases and forever discharges each of the Company Released Parties from any claims that this Release was procured by fraud or signed under duress or coercion so as to make this Release
not binding. 
 (b) Notwithstanding anything contained herein to the contrary, this Release shall not release or waive, or in any manner
affect or void: 
 (i) Individual’s or the Company’s rights and obligations under the Settlement Agreement;

 (ii) Individual’s (and if applicable, Individual’s dependents’) right, for so long as Individual is employed
by any Company Released Party, to remain covered under any insurance policy sponsored, maintained or purchased by any Company Released Party (if and to the extent that Company Released Party is able to remain subscribed to such policy on and
following the Effective Date of this Release) in which Individual (and if applicable, Individual’s dependents) participated as of the Effective Date of this Release; 
 (iii) Individual’s right to be indemnified by the Company for actions or claims against Individual resulting from his or her daily
and ordinary employment duties, including, but not limited to, any claim with respect to which Individual would be entitled to indemnification by the Company under applicable corporate law, the certificate of incorporation or bylaws of the Company
or, if applicable, those certain indemnity agreements by and between certain of the Company’s officers or directors and the Company in place as of March 1, 2009; or 
 (iv) Individual’s rights pursuant to the Energy Partners, Ltd. Change of Control Severance Plan originally effective March 24,
2005, as amended or the Energy Partners, Ltd. Employee Change of Control Severance Plan originally effective September 13, 2006, as amended. 
 4. Modification. This Release cannot be modified orally and can only be modified through a written document signed by both parties. 
  

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 5. Severability. If any provision contained in this Release is determined to be void,
illegal or unenforceable, in whole or in part, then the other provisions contained herein shall remain in full force and effect as if the provision that was determined to be void, illegal or unenforceable had not been contained herein. 

6. Choice of Law. This Release shall be interpreted under and governed by, construed and enforced in accordance with, and subject to,
the laws of the State of Delaware, without giving effect to any principles of conflicts of law. 
 7. Entire Agreement. This
Release and the Settlement Agreement constitute the entire understanding and agreement of the Company and Individual and supersede prior understandings and agreements, if any, among or between the Company and Individual, with respect to the subject
matter of this Release, other than as specifically referenced herein. Other than the terms set forth in this Release and the Settlement Agreement, there are no representations, agreements, arrangements or understandings, oral or written, concerning
the subject matter hereof between the Company and Individual that are not fully expressed or incorporated by reference in this Release. This Release does not, however, operate to supersede or extinguish any confidentiality, non-solicitation,
non-disclosure or non-competition obligations owed by Individual to the Company under any prior agreement. 
 8. Fully
Understood. By executing this Release, Individual acknowledges and affirms that he or she has read and understood the foregoing, agreed to the terms, and acknowledges receipt of a copy of the same. Individual further acknowledges and agrees that
after receiving a copy of this Release, (a) Individual has been advised and had an opportunity to consult an attorney before signing it, and (b) Individual enters into this Release knowingly, voluntarily and after any consultations with
any attorney or other advisor as Individual deemed appropriate. Individual understands and agrees that by signing this Release he or she is giving up the right to pursue any legal claims that he or she may have against any Company Released Party.

 IN WITNESS WHEREOF, Individual has executed this Release as of the day and year first above written. 
  

	
	INDIVIDUAL
	
	/s/ Thomas DeBrock
	Thomas DeBrock

  

 A-3Amendment to Nonqualified Stock Options

 Exhibit 10.43 
 AMENDMENT TO 
 NONQUALIFIED STOCK OPTIONS 
 GRANTED TO PHILLIP A. GOBE 
 The
Nonqualified Stock Options granted to Phillip A. Gobe under the Energy Partners, Ltd. 2006 Long Term Stock Incentive Plan on December 6, 2004, March 17, 2005, July 22, 2005, March 16, 2006, March 23,
2006, August 3, 2006 and May 30, 2007 are hereby amended in the following respects: 
  

	 	1.	Subparagraph (b) of Paragraph 7 is amended to read in its entirety as follows: 

  

	 	“(b)	Death, Disability or Retirement 

 “If you die or become disabled (as defined below) while employed by the Company, the period during which this Option may vest will be extended through December 31st of the year in which you die or become disabled. All shares that will not have vested under this Option on or before
December 31st of the year in which you die or become disabled shall be
forfeited as of the date you die or become disabled. With respect to all shares vested under this Option on or before December 31st of the year in which you die or become disabled, this Option may be exercised for a period of three (3) years from the date
that you die or become disabled (but in no event beyond the Expiration Date). Any shares vested under this Option but not exercised on or before the earlier of the Expiration Date or the date that is three (3) years from the date of your death
or disability are forfeited and this Option shall be null and void and without further effect. 
 “In the event of your death, your
beneficiary(s) (as defined below) may exercise this Option. 
 “If you become disabled, this Option may be exercised by your legal
representative. 
 “Except as hereafter provided in this subparagraph (b), if your employment with the Company terminates as a result
of your retirement (as defined below), this Option shall continue to vest and become exercisable in accordance with the schedule set forth in Paragraph 3 of this Agreement and may be exercised (to the extent vested and exercisable at the applicable
time) for a period of three (3) years beginning on the date of your retirement (but in no event beyond the Expiration Date). Any shares under this Option as to which this Option is not exercised on or before the earlier of the Expiration Date
or the last day of the three (3)-year period beginning on the date of your retirement shall be forfeited and this Option shall be null and void and without further effect. 

 “If your employment with the Company terminates as a result of your retirement and you thereafter
‘change your retirement status’ (as defined below) prior to the Expiration Date, any shares under this Option as to which this Option has not been exercised shall be forfeited and this Option shall be null and void and without further
effect. You will be considered to ‘change your retirement status’ for purposes of this Agreement if you commence full-time employment as an executive with a business enterprise engaged directly or through one or more subsidiaries in the
oil and gas exploration and production business or commence service on the board of directors of such a business enterprise.” 
  

	 	2.	The last sentence of subparagraph (c) of Paragraph 7 is amended to read in its entirety as follows: 

 “For purposes of this Option, ‘retirement’ means a termination of your employment that is described as a retirement by the Company in any
press release issued by it or in any document filed by it with the Securities and Exchange Commission.” 
  

									
	ENERGY PARTNERS, LTD.	 		 		 	
					
	By:	 	/s/ Richard A. Bachmann	 		 	Date:	 	8-21-07
	Attest:	 	/s/ John H. Peper	 		 		 	
	
	I HEREBY AGREE TO THIS AMENDMENT TO MY NONQUALIFIED STOCK OPTIONS
		 		 	
				
	/s/ Phillip A. Gobe	 		 	Date:	 	8/21/07
	Phillip A. Gobe

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