Document:

Exhibit 10.1

 

AMENDMENT OF

EMPLOYMENT AGREEMENT

WHEREAS, Everest Global Services, Inc. (the "Company") and Everest Reinsurance Holdings, Inc. ("Holdings") and Dominic J. Addesso ("Addesso") are Parties to an employment agreement made as of July 1, 2012 (the "Employment Agreement"); and

WHEREAS, the Parties to the Employment Agreement desire to amend certain provisions of that Agreement;

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Employment Agreement is hereby amended, effective as of December 4, 2015, by substituting the following:

(I)            for Section 3 of the Employment Agreement:

		"3.	Term.

This Agreement shall commence as of July 1, 2012, and shall continue in effect up through and including December 31, 2018, unless sooner terminated in accordance with this Agreement or as may otherwise be agreed to by the parties."

(II)            for Section 4(d) of the Employment Agreement:

"4.            Compensation.

(d)  Executive Stock Based Incentive Plan.  The Executive shall be eligible to participate in and receive such equity incentive compensation as may be granted by the Compensation Committee from time to time pursuant to the Everest Re Group, Ltd. 2010 Stock Incentive Plan, as such plan may then be in effect and as it may be amended or superseded from time to time or any successor plan (the "Stock Plan"), with a target value of 300% of Executive's Base Salary as applicable to the fiscal year prior to the calendar year in which the Compensation Committee makes its determination to grant such a share award.  All awards to the Executive under the Stock Plan shall be determined by the Compensation Committee in its discretion.  Except as expressly set forth in this Agreement, all equity awards shall be subject to the terms of the Stock Plan.

With respect to all outstanding and unvested Performance Stock Unit Award Agreements granted to Executive, the following sections of each such agreement shall be deemed amended as follows:

'5.       Termination of Employment.  Except as otherwise provided in this Paragraph 5, if the Participant's Date of Termination occurs for any reason prior to the last day of the Restricted Period, all Covered Units shall be immediately forfeited.

Notwithstanding the foregoing:

(a)  If the Participant's Date of Termination occurs due to a Qualifying Termination prior to the last day of the Restricted Period, then the Participant shall remain eligible to receive shares for any Installments of Covered Units (to the extent not previously forfeited or 

 

 

settled) on or after such Qualifying Termination subject to the terms of this Agreement and subject to the Participant (for all Qualifying Terminations other than due to Retirement or death or Disability) signing and not revoking a general release and waiver of all claims against the Corporation.  If such release is not effective on or before the last day of the sixty-day period following the Date of Termination, the Participant shall immediately forfeit all of the Covered Units.

(b)  In the case of a Qualifying Termination that occurs to prior to a Change in Control (that is not a Vesting Change in Control) and that is not due to Retirement or death or Disability, the Participant shall immediately forfeit all Covered Units (to the extent not previously settled) in the event the Participant engages in any Competitive Activity or violates any non-compete or non-solicitation obligation contained in any other agreement to which Participant is a party.' "

(III)            for Section 6 of the Employment Agreement:

		"6.	Termination of Employment

		(d)	Termination without Cause or for Good Reason.

		(v)	except for outstanding and unvested Performance Stock Unit Awards addressed in Section 4(d), all of Executive's then unvested restricted stock or restricted stock units granted to Executive will continue to vest and restrictions lapse in accordance with their respective terms over the 24 month period immediately following such termination date, conditioned on the Company receiving from Executive the release of claims referred to in Section 6(h) below;"

(IV)            at the end of Section 12 of the Employment Agreement:

"12.            Non-Competition Agreement

Notwithstanding anything herein to the contrary, (i) if the Group Board fails to nominate and recommend Executive for election as a member of the Board at any annual shareholders meeting following the expiration of the term of this Agreement or if Executive is not re-elected to the Board by the Group's shareholders at such meeting, then following such meeting the Executive shall be permitted to serve as a non-executive director of any Competitive Business and (ii) if the Group Board fails to recognize or accept Executive's notice of retirement upon the expiration of the term of this Agreement (other than on account of a termination of Executive's employment hereunder by the Company for Cause), which recognition or acceptance shall not be unreasonably withheld, the provisions of this Section 12 shall not apply to Executive following the Executive's termination or cessation of employment upon the expiration of the term of this Agreement.

To the extent Executive accepts an appointment as a non-executive director of an entity engaged in Competitive Business pursuant to subsection (i) above, Executive shall notify the Group Board of such acceptance and position and identify the entity."

2

 

Except as specifically amended hereby, the Employment Agreement is hereby ratified and confirmed in all respects and remains in full force and effect.  Whenever the Employment Agreement is referred to in this amendment to the Employment Agreement (this "Amendment") or in any other agreement, document or instrument, such reference shall be deemed to be to the Employment Agreement, as amended by this Amendment, whether or not specific reference is made to this Amendment.

This Amendment may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.  The execution of this Amendment may be by actual signature or by signature delivered by facsimile or by e-mail as a portable document format (.pdf) file or image file attachment.

3

 

IN WITNESS WHEREOF, the parties have executed this amendment to the Employment Agreement as of December 4, 2015.

 

 

	
EVEREST GLOBAL SERVICES, INC.  

	
 

	 	
 

	
 

	
 EVEREST REINSURANCE HOLDINGS, INC.

	
 

	
 

	 	
 

	
 

	
 

	
/S/ SANJOY MUKHERJEE

	
 

	 	
 

	
 

	
 /S/ SANJOY MUKHERJEE

	
Sanjoy Mukherjee

	
 

	 	
 

	
 

	
Sanjoy Mukherjee

	
Executive Vice President 

	
 

	 	
 

	
 

	
Executive Vice President

	
 

	
 

	 	
 

	
 

	
 

	 	 	 	 	 	 
	
 

	
 

	 	
 

	
 

	
 

	
 

	
 

	 	
/S/ DOMINIC J. ADDESSO

	
 

	
 

	
 

	
 

	 	
Dominic J. Addesso

	
 

	
 

	
 

	
 

	 	
 

	
 

	
 

	
 

	
 

	 	
 

	
 

	
 

	
 

	
 

	 	
 

	
 

	
 

	
 

	
 

	 	
 

	
 

	
 

	
 

	
 

	 	
 

	
 

	
 

 

4Exhibit 4.3

 

A M E
N D E D A N D R E S T A T E D P R O S P E C T U S

ENERGY XXI SERVICES, LLC

2008 FAIR MARKET VALUE STOCK PURCHASE PLAN

 

_______________________

 

COMMON STOCK

Par Value $.005 Per Share

 

_______________________

 

This Prospectus,
as amended and restated, relates to shares of common stock, par value $.005 per share (the “Common
Stock”), of Energy XXI Ltd. (formerly known as Energy XXI (Bermuda) Limited), a Bermuda corporation
(the “Company”), that may be purchased by employees, directors and other service providers of Energy
XXI Services, LLC, a Delaware limited liability company and an indirect wholly-owned subsidiary of the Company
(the “Employer”), or any of its affiliates, pursuant to the Energy XXI Services, LLC 2008 Fair Market
Value Stock Purchase Plan (the “Plan”). For all purposes of the Plan, this Prospectus constitutes the
Plan document.

 

_______________________

 

THESE SECURITIES HAVE NOT BEEN APPROVED
OR DISAPPROVED BY THE SECURITIES

AND EXCHANGE COMMISSION OR ANY STATE
SECURITIES COMMISSION NOR HAS

THE SECURITIES AND EXCHANGE COMMISSION
OR ANY STATE SECURITIES

COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS

PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A

CRIMINAL OFFENSE.

 

 

THIS PROSPECTUS MAY NOT BE USED BY ANY
PERSON IN CONNECTION WITH ANY

RESALES OF THE COMMON STOCK ACQUIRED
UNDER THE PLAN.

 

 

_______________________

 

THIS DOCUMENT CONSTITUTES PART OF A PROSPECTUS
COVERING SECURITIES

THAT HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933.

 

 

_______________________

 

 

The date of this Prospectus is December
7, 2015.

  

    

     

    

 

TABLE OF CONTENTS

 

Page

 

	THE COMPANY	1
	 	 
	DESCRIPTION OF THE 2008 FAIR MARKET VALUE STOCK PURCHASE PLAN	1
	 	 
	General	1
	Administration of the Plan	1
	Persons Who May Participate in the Plan	1
	Securities to be Offered	1
	Other Provisions	2
	 	 
	APPLICATION OF SECTION 16(b) OF THE EXCHANGE ACT	2
	 	 
	OTHER RESTRICTIONS ON RESALE	3
	 	 
	FEDERAL TAX CONSEQUENCES	3
	 	 
	AVAILABLE INFORMATION	4
	 	 
	INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE	4

 

 

 

__________________

 

 

 

No person has been
authorized to give any information or to make any representations other than those contained in this Prospectus, and, if given
or made, such information or representations must not be relied upon as having been authorized. This Prospectus does not constitute
an offer to sell or the solicitation of an offer to buy in any jurisdiction in which or to any person to whom it is unlawful to
make such offer or solicitation. Neither the delivery of this Prospectus nor any sale made hereunder will under any circumstances
imply that information contained in this Prospectus is correct at any time subsequent to the date of this Prospectus.

 

    i

     

    

 

THE COMPANY

 

 

The
Company is an independent oil and natural gas exploration and production company. The Company’s executive offices and operating
headquarters are located at Canon’s Court, 22 Victoria Street, PO Box HM 1179, Hamilton HM EX, Bermuda, and its telephone
number at those offices is (441) 295-2244. 

 

DESCRIPTION OF THE 2008 FAIR MARKET
VALUE STOCK PURCHASE PLAN

 

 

General

 

The Plan is named the
“Energy XXI Services, LLC 2008 Fair Market Value Stock Purchase Plan” and was originally adopted by the board of directors
of the Employer and the Company effective as of July 1, 2008 (the “Effective Date”).

 

The purpose of
the Plan is to promote the interests of the Employer and the Company, as well as employees, directors and other service
providers by providing such individuals with the opportunity to conveniently purchase Common Stock. The Plan allows eligible
employees, directors, and other service providers to purchase from the Company shares of Common Stock that have been
purchased by the Company on the open market or that have been newly issued by the Company. In particular, individuals who
have been granted restricted stock units pursuant to the Company’s 2006 Amended and Restated Long-Term Incentive Plan
(as amended, the “LTIP”) that may be settled in cash may use their cash settlement to purchase shares
of Common Stock which will be issued under the Plan. See “— Securities To Be Offered.”

 

The Plan is not intended
to qualify under the provisions of Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”).
The Plan is also not subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

 

Administration of the Plan

 

The board of directors
of the Company (the “Board”) has appointed a Committee comprised of Board members (the “Committee”)
to administer the Plan pursuant to the Plan’s terms and all applicable state, federal, and other rules or laws, except in
the event the Board chooses to administer the Plan. Unless otherwise limited by the Plan or Rule 16b-3 of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), the Committee has broad discretion to administer the Plan, interpret
its provisions, and adopt policies for implementing the Plan. This discretion includes the power to determine the class of “Eligible
Persons” under the Plan, determine the terms under which Eligible Persons may purchase Common Stock under the Plan, prescribe
and interpret the terms and provisions of any individual agreement between the Company and Eligible Persons that govern the purchase
of Common Stock (the terms of which may vary), and to execute all other responsibilities permitted or required under the Plan.

 

Persons Who May Participate in the
Plan

 

An Eligible Person
shall be either: (a) a holder of a restricted stock unit granted pursuant to the LTIP that provides for settlement in cash, or
(b) any employee, director or consultant of the Employer or the Company or an affiliate thereof designated by the Committee as
an Eligible Person.

 

An Eligible Person
will be eligible to purchase Common Stock solely pursuant to the Plan terms, and will be subject to any limitations imposed by
an appropriate action of the Committee.

 

Securities to be Offered

 

Shares Subject to
the Plan. The maximum aggregate number of shares of Common Stock that may be purchased pursuant to the Plan will not exceed
2,090,000 shares. The Common Stock sold pursuant to the Plan may be newly issued shares, shares held by the Company in treasury,
shares which have been acquired by the Company in the open market, or any combination of the foregoing. There are no fees, commissions
or other charges applicable to a purchase of Common Stock under the Plan.

 

    	 	1	 

     

    

 

Purchase of Common Stock

 

With Respect to
Restricted Stock Units.  An Eligible Person who desires to purchase Common Stock with cash received upon the settlement of
restricted stock units granted pursuant to the LTIP may do so by notifying the Company on or prior to the date of vesting of the
restricted stock units pursuant to reasonable procedures established by the Company.

 

The Company shall use
all or a portion of the cash payable to the Eligible Person upon settlement of the restricted stock units (the “Purchase
Consideration”) to purchase Common Stock on behalf of the Eligible Person. The Purchase Consideration will equal the
fair market value of the Common Stock on the vesting date multiplied by the number of shares subject to the restricted stock units
the Eligible Person desires to use to purchase Common Stock, less any applicable statutory income tax withholding and employment
taxes relating to the vesting and settlement of such restricted stock units. The Company will use the Purchase Consideration to
acquire as many whole shares of Common Stock as the Purchase Consideration will purchase at the fair market value of the Common
Stock on the vesting date. No fraction of a share of Common Stock may be purchased pursuant to the Plan, and any portion of the
Purchase Consideration that remains after the whole shares of Common Stock have been acquired will be paid to the Eligible Person
in cash.

 

Other Cash Purchases.
The Committee may also allow an Eligible Person to purchase Common Stock upon the delivery of notice to the Company, pursuant to
reasonable procedures established by the Company, along with cash (including the cash proceeds of restricted stock units) or such
other consideration approved by the Committee. Any such purchase will be made at the fair market value of the Common Stock on the
date specified in such notice (which may be no earlier than the date such notice is received by the Company), provided the notice
was timely received by the Company. In the event the notice is not timely received, the purchase will occur on the first business
day following the Company’s receipt of the notice.

 

Other Provisions

 

Fair Market Value.
The fair market value of the Common Stock will be the value equal to the closing price of a share of Common Stock on any national
or foreign securities exchange or over-the-counter market, if applicable, for the date of determination, or, if no trade is reported
for that date, the closing sales price quoted on such exchange for the most recent trade prior to the determination date. In the
event that shares of Common Stock are not listed or admitted to trading on any exchange, over-the-counter market or any similar
organization as of the determination date, the fair market value shall be determined by the Committee in good faith using fair
application of a reasonable valuation methodology that takes into account all available information material to the value of the
Company.

 

Amendment and Termination.
The Board may at any time and from time to time amend, alter, suspend, discontinue or terminate the Plan or the Committee’s
authority under the Plan.

 

 

 

APPLICATION OF SECTION 16(b) OF THE
EXCHANGE ACT

 

 

Section 16(b) of the
Exchange Act imposes liability on officers and directors of the Company and beneficial owners of 10% or more of a class of equity
securities of the Company with respect to any profit realized on a purchase and sale, or sale and purchase, of any equity security
(including derivative securities such as Options and SARs) of the Company within a period of less than six months. The liability
is owed to the Company and may be enforced by the Company and any Company stockholder suing derivatively for the Company’s
benefit. The Plan is intended to comply with Rule 16b-3 under the Exchange Act, which, together with Rule 16b-6, exempts certain
transactions under the Plan from the short-swing liability provisions of Section 16(b) of the Exchange Act. You should consult
with the Company or legal counsel before determining for yourself whether a transaction you are considering is exempt from short-swing
liability or whether the Plan has in fact been administered in compliance with Rule 16b-3.

 

    	 	2	 

     

    

 

OTHER RESTRICTIONS ON RESALE

 

 

Subject to the limitations
of Section 16(b) of the Exchange Act, shares of Common Stock acquired by an officer or director of the Company pursuant to the
Plan may be sold by such officer or director only in accordance with the provisions of Rule 144 under the Securities Act of 1933,
as amended (the “Securities Act”), pursuant to an effective registration statement under the Securities Act,
or in transactions that are exempt from registration under the Securities Act. Under Rule 144, an officer or director may sell
Common Stock if the sale meets certain conditions. In general, under Rule 144 an officer or director may sell within any three-month
period a number of shares that does not exceed the greater of 1% of the total number of outstanding shares of Common Stock or the
average weekly trading volume of the Common Stock reported during the four calendar weeks immediately preceding the sale. In addition
to other conditions, the shares of Common Stock must also be sold in unsolicited “brokers’ transactions” within
the meaning of Rule 144 and Section 4(4) of the Securities Act, directly with a “market maker” within the meaning of
Rule 144 and Section 3(a)(38) of the Exchange Act, or in “riskless principal transactions” within the meaning of Rule
144, and in certain circumstances the seller must file a notice of sale with the Securities and Exchange Commission (the “SEC”).
You should consult with the Company or legal counsel before determining for yourself whether a transaction you are considering
complies with the conditions specified in Rule 144 or otherwise satisfies an exemption under the Securities Act.

 

FEDERAL TAX CONSEQUENCES

 

 

The following discussion
is for general information only and is intended to summarize briefly the U.S. federal tax consequences to Eligible Persons arising
from participation in the Plan. This description is based on current law, which is subject to change (possibly retroactively).
The tax treatment of an Eligible Person in the Plan may vary depending on his particular situation and may, therefore, be subject
to special rules not discussed below. No attempt has been made to discuss any potential foreign, state, or local tax consequences.
The description below concerning the taxation of restricted stock units and the Company’s corresponding deduction are provided
as additional information to Eligible Persons, although those tax implications are consequences of participation in the LTIP rather
than the Plan. You should consult with your tax advisor concerning the specific tax consequences of participating in the Plan.

 

Settlement of Restricted
Stock Units under the LTIP. In general, an Eligible Person will recognize ordinary compensation income as a result of the cash
settlement of a restricted stock unit in an amount equal to the cash received with respect to the restricted stock unit, including
amounts withheld by the Company to satisfy its tax withholding obligations. The Eligible Person may be subject to withholding for
federal, and generally for state and local, income taxes at the time he or she recognizes income pursuant to the settlement of
the restricted stock unit.

 

Subject to the discussion
below, the Company (or a subsidiary) will be entitled to a deduction for federal income tax purposes that corresponds as to timing
and amount with the compensation income recognized by an Eligible Person under the foregoing discussion.

 

Tax Code Limitations
on Deductibility. In order for the amounts described above to be deductible by the Company (or a subsidiary), such amounts
must constitute reasonable compensation for services rendered or to be rendered and must be ordinary and necessary business expenses.
The ability of the Company (or a subsidiary) to obtain a deduction for future payments under the LTIP could also be limited by
the golden parachute payment rules of Section 280G of the Code, which prevent the deductibility of certain excess parachute payments
made in connection with a change in control of an employer-corporation.

 

Finally, the ability
of the Company (or a subsidiary) to obtain a deduction for amounts paid under the LTIP could be limited by Section 162(m) of the
Code, which limits the deductibility, for federal income tax purposes, of compensation paid to certain executive officers of a
publicly traded corporation to $1 million with respect to any such officer during any taxable year of the corporation.

 

    	 	3	 

     

    

 

Purchase of Common
Stock. Because the Plan merely provides a convenient opportunity for Eligible Persons to purchase Common Stock at its fair
market value, the initial purchase of Common Stock should not create a taxable event for the Eligible Person. The Eligible Person
will be subject to either short-term or long-term capital gain/loss upon the later sale or disposition of the Common Stock, depending
upon the time period the Eligible Person was the holder of the Common Stock.

 

AVAILABLE INFORMATION

 

 

The Company is subject
to the information requirements of the Exchange Act and in accordance therewith files reports, proxy statements, and other information
with the SEC, which can be inspected and copied at prescribed rates at the public reference facilities maintained by the SEC at
Room 1580, 100 F Street, N.E., Washington, D.C. 20549. These reports, proxy statements and other information may also be obtained
without charge from the web site that the SEC maintains at http://www.sec.gov.

 

This Prospectus constitutes
a part of a Registration Statement on Form S-8 (together with all amendments thereto, the “Registration Statement”)
that the Company has filed with the SEC under the Securities Act. This Prospectus does not contain all the information set forth
in the Registration Statement, certain parts of which are omitted in accordance with the rules and regulations of the SEC. For
further information with respect to the Company and the Common Stock, reference is made to the Registration Statement and to the
exhibits thereto. Statements contained herein concerning the provisions of certain documents are not necessarily complete, and
in each instance, reference is made to the copy of the document filed as an exhibit to the Registration Statement or otherwise
filed with the SEC. Each such statement is qualified in its entirety by that reference.

 

INCORPORATION OF CERTAIN DOCUMENTS
BY REFERENCE

 

 

Except to the extent
that information is deemed furnished and not filed pursuant to securities laws and regulations, the following documents have been
filed by the Company with the SEC and are incorporated by reference into this Prospectus, and will be deemed to be a part hereof:

 

		(a)	The Company’s latest Annual Report on Form 10-K filed with the SEC on September 29, 2015.

 

		(b)	The Company’s Quarterly Report on Form 10-Q filed with the SEC on November 9, 2015.

 

		(c)	The Company’s Current Reports on Form 8-K filed with the SEC on October 15, 2015, October
21, 2015, November 19, 2015, November 20, 2015 and December 1, 2015.

 

		(d)	All other reports filed by the Company since September 29, 2015, with the SEC pursuant to Section
13(a) or 15(d) of the Exchange Act.

 

		(e)	The description of our common stock contained in our latest Registration Statement on Form S-3
filed with the SEC on October 5, 2015.

 

Except to the extent
that information is deemed furnished and not filed pursuant to securities laws and regulations, all documents filed by the Company
pursuant to Section 13(a) or 15(d) of the Exchange Act subsequent to the date of this Prospectus and prior to the termination of
the offering made hereby will be deemed to be incorporated by reference into this Prospectus and to be a part hereof from the date
of the filing of such documents. Any statement contained herein or any document incorporated or deemed to be incorporated by reference
herein will be deemed to be modified or superseded for purposes of this Prospectus to the extent that a statement contained herein
or in any subsequently filed document that also is or is deemed to be incorporated by reference herein or in any Prospectus Supplement
modifies or supersedes such statement. Any statement so modified or superseded will not be deemed to constitute a part of this
Prospectus, except as so modified or superseded.

 

The Company will provide
without charge to each person to whom a copy of this Prospectus has been delivered, on the written or oral request of any person,
a copy of any or all of the documents referred to above that have been or may be incorporated by reference into this Prospectus,
other than exhibits to the documents (unless the exhibits are specifically incorporated by reference into the documents). Written
or telephone request for the copies should be directed to Corporate Secretary, Energy XXI Ltd., Canon’s Court,
22 Victoria Street, PO Box HM 1179, Hamilton HM EX, Bermuda  (Telephone: (441) 295-2244).

 

    	 	4

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