Document:

EX-10.13

 Exhibit 10.13 

 

			
	

	  	

 January 25, 2012 
 John Hoffman 
 Chief Executive Officer 
 Black Elk Energy Offshore Operations, LLC 
 11451 Katy Freeway, Suite 500 

Houston, TX 770079 
 Daniel Small 

Black Elk Energy Offshore Operations, LLC—Board of Directors Member 
 Platinum Management LLC 
 152 West 57th Street, 4th Floor 
 New
York, NY 10019 
 Dear Mr. Hoffman: 
 This letter confirms and sets forth the terms and conditions of the engagement between Alvarez & Marsal North America, LLC (“A&M”) and Black Elk Energy Offshore Operations,
LLC, and its assigns and successors (the “Company”), including the scope of the services to be performed and the basis of compensation for those services. Upon execution of this letter by each of the parties below and receipt of the
retainer described below, this letter will constitute an agreement between the Company and A&M (the “Agreement”). Upon execution of this letter by each of the parties below and receipt of the retainer described below, this
letter (a) will constitute an agreement between the Company and A&M (the “Agreement”) and (b) will supersede that certain prior engagement letter between A&M and the Company, dated December 31,
2012.
  

	1.	Description of Services 

  

	 	(a)	Officers. In connection with this engagement, A&M shall make available to the Company: 

 

	 	(i)	Gary Barton to serve as Chief Financial Officer (the “CFO”); and 

 

	 	(ii)	Upon the mutual agreement of A&M and the Company, A&M will provide additional employees of A&M and/or its affiliates and wholly-owned subsidiaries
(“Additional Personnel”) as required (collectively, with the CFO, the “Engagement Personnel”), to assist the CFO in the execution of the duties set forth more fully herein. 

 

	 	(b)	Duties. 

  

	 	(i)	The Engagement Personnel in cooperation with the Chief Executive Officer (the “CEO”) or other applicable officers of the Company, shall perform a
financial review of the Company, including but not limited to a review and assessment of financial information that has been, and that 

  

 

	 	
will be, provided by the Company to its creditors, including without limitation its short and long-term projected cash flows, operating performance and financial statement projections;

  

	 	(ii)	The Engagement Personnel shall Evaluate options to improve liquidity and development of liquidity management tools including a 13 or 26 week forecast of cash receipts
and disbursements including anticipated capital expenditures, and identifying opportunities for operational and/or working capital improvement; 

  

	 	(iii)	The Engagement Personnel shall evaluate and identify opportunities to improve Black Elk’s cost structure taking into account material operational, overhead and
corporate cost components; 

  

	 	(iv)	The Engagement Personnel shall evaluate and develop options to address Black Elk’s most pressing financial and operational needs and develop a 1 to 3 year forecast
for review with Black Elk’s management and Board of Directors. Assist management with a subsequent business plan presentation and possible discussions/negotiations with equity, creditors and other parties-in-interest; 

 

	 	(v)	The Engagement Personnel shall assist the CEO and other Company engaged professionals in developing for the Board’s review possible restructuring plans or
strategic alternatives for maximizing the enterprise value of the Company’s various business lines; 

  

	 	(vi)	The CFO shall serve as the principal contact with the Company’s creditors with respect to the Company’s financial and operational matters; and

  

	 	(vii)	The Engagement Personnel shall perform such other services as requested or directed by the board of the directors of the Company (the “Board”) or other
Company personnel as authorized by the Board, and agreed to by A&M that is not duplicative of work others are performing for the Company. 

  

	 	(c)	The Engagement Personnel shall report to the Board and the CEO or other applicable officers, as directed by the Board and, at the request of the Board, will make
recommendations to and consult with the Board. 

  

	 	(d)	The Engagement Personnel will continue to be employed, by A&M and, while rendering services to the Company, will continue to work with other personnel at A&M in
connection with unrelated matters that will not unduly interfere with the services rendered by the Engagement Personnel pursuant to this Agreement. With respect to the Company, however, the Engagement Personnel shall operate under the direction of
the Board and CEO and A&M shall have no liability to the Company for any acts or omissions of the Engagement Personnel related to the performance or non-performance of services at the direction of the Board and consistent with the requirements
of the Engagement and this Agreement. 

  
 

 

	 	(e)	In connection with the services to be provided hereunder, from time to time A&M may utilize the services of employees of its affiliates, subsidiaries and
independent contractors as Engagement Personnel. Such affiliates and subsidiaries are wholly owned by A&M’s parent company and employees. 

  

	2.	Information Provided by Company and Forward Looking Statements. The Company shall use all reasonable efforts to: (i) provide the Engagement Personnel with
access to management and other representatives of the Company; and (ii) to furnish all data, material, and other information concerning the business, assets, liabilities, operations, cash flows, properties, financial condition and prospects of
the Company that Engagement Personnel reasonably request in connection with the services to be provided to the Company. The Engagement Personnel shall rely, without further independent verification, on the accuracy and completeness of all publicly
available information and information that is furnished by or on behalf of the Company and otherwise reviewed by Engagement Personnel in connection with the services performed for the Company. The Company acknowledges and agrees that the Engagement
Personnel are not responsible for the accuracy or completeness of such information and shall not be responsible for any inaccuracies or omissions therein. A&M and Engagement Personnel are under no obligation to update data submitted to them or
to review any other areas unless specifically requested by the Board to do so. 

  

	 	You understand that the services to be rendered by the Engagement Personnel may include the preparation of projections and other forward-looking statements, and
numerous factors can affect the actual results of the Company’s operations, which may materially and adversely differ from those projections. In addition, Engagement Personnel will be relying on information provided by the Company in the
preparation of those projections and other forward-looking statements. 

  

	3.	Limitation of Duties. Neither A&M, nor the Engagement Personnel make any representations or guarantees that, inter alia, (i) an appropriate
restructuring proposal or strategic alternative can be formulated for the Company, (ii) any restructuring proposal or strategic alternative presented to the Company’s management or the Board will be more successful than all other possible
restructuring proposals or strategic alternatives, (iii) restructuring is the best course of action for the Company, or (iv) if formulated, that any proposed restructuring plan or strategic alternative will be accepted by any of the
Company’s creditors, shareholders and other constituents. Further, neither A&M, nor the Engagement Personnel, assume any responsibility for the Company’s decision to pursue, or not pursue any business strategy, or to effect, or not to
effect any transaction. The Engagement Personnel shall be responsible for implementation only of the restructuring proposal or alternative approved by the Board and only to the extent and in the manner authorized and directed by the Board.

	4.	Compensation. 

  

	 	(a)	A&M will receive fees for the services of the Engagement Personnel based on the following hourly rates: 

 

			
	 Managing Directors
	  	$650-850
		
	 Directors
	  	$450-650
		
	 Analysts/Associates
	  	$250-450
	
	 Such rates shall be subject to adjustment annually at such time as A&M adjusts its rates
generally.

 Mr. Barton will receive fees at a flat rate of $100,000 per month for services to be provided as CFO
of the Company. 
 In addition, A&M will be reimbursed for its reasonable out-of-pocket expenses incurred in connection with
this assignment, such as travel, lodging, duplicating, messenger and telephone charges. All fees and expenses will be billed and payable on a monthly basis or, at A&M’s discretion, more frequently. 

 

	 	(b)	The Company shall promptly remit to A&M a retainer in the amount of $150,000 ($75,000 of which was received under our prior December 31, 2012 engagement
letter), which shall be credited against any amounts due at the termination of this engagement and returned upon the satisfaction of all obligations hereunder. 

 

	5.	Termination. 

  

	 	(a)	This Agreement will apply from the commencement of the services referred to in Section 1 and may be terminated with immediate effect by either party without cause
by written notice to the other party. 

  

	 	(b)	A&M normally does not withdraw from an engagement unless the Company misrepresents or fails to disclose material facts, fails to pay fees or expenses, or makes it
unethical or unreasonably difficult for A&M to continue performance of the engagement, or other just cause exists.

  

	 	(c)	On termination of the Agreement, any fees and expenses due to A&M shall be remitted promptly (including fees and expenses that accrued prior to but are invoiced
subsequent to such termination).

  

	 	(d)	The provisions of this Agreement that give the parties rights or obligations beyond its termination shall survive and continue to bind the parties.

  

	6.	No Audit. Company acknowledges and agrees that A&M and Engagement Personnel are not being requested to perform an audit, review or compilation, or any other
type of financial statement reporting engagement that is subject to the rules of the AICPA, SEC or other state or national professional or regulatory body. 

	7.	No Third Party Beneficiary. The Company acknowledges that all advice (written or oral) provided by A&M and the Engagement Personnel to the Company in
connection with this engagement is intended solely for the benefit and use of the Company (limited to its Board and management) in considering the matters to which this engagement relates. The Company agrees that no such advice shall be used for any
other purpose or reproduced, disseminated, quoted or referred to at any time in any manner or for any purpose other than accomplishing the tasks referred to herein without A&M’s prior approval (which shall not be unreasonably withheld),
except as required by law. 

  

	8.	Conflicts. A&M is not currently aware of any relationship that would create a conflict of interest with the Company or those parties-in-interest of which you
have made us aware. Because A&M and its affiliates and subsidiaries comprise a consulting firm (the “Firm”) that serves clients on an international basis in numerous cases, both in and out of court, it is possible that the Firm
may have rendered or will render services to, or have business associations with, other entities or people which had or have or may have relationships with the Company, including creditors of the Company. The Firm will not be prevented or restricted
by virtue of providing the services under this Agreement from providing services to other entities or individuals, including entities or individuals whose interests may be in competition or conflict with the Company’s, provided the Firm makes
appropriate arrangements to ensure that the confidentiality of information is maintained. 

  

	9.	Confidentiality/Non-Solicitation. 

  

	 	A&M and Engagement Personnel shall keep as confidential all non-public information received from the Company in conjunction with this engagement, except:
(i) as requested by the Company or its legal counsel; (ii) as required by legal proceedings; or (iii) as reasonably required in the performance of this engagement. All obligations as to non-disclosure shall cease as to any part of
such information to the extent that such information is, or becomes, public other than as a result of a breach of this provision. The Company, on behalf of itself and its subsidiaries and affiliates and any person which may acquire all or
substantially all of its assets agrees that, until two (2) years subsequent to the termination of this engagement, it will not solicit, recruit, hire or otherwise engage any employee of A&M or any of its affiliates who worked on this
engagement while employed by A&M or its affiliates (“Solicited Person”). Should the Company or any of its subsidiaries or affiliates or any person who acquires all or substantially all of its assets extend an offer of employment
to or otherwise engage any Solicited Person and should such offer be accepted, A&M shall be entitled to a fee from the party extending such offer equal to the Solicited Person’s hourly client billing rate at the time of the offer multiplied
by 4,000 hours for a Managing Director, 3,000 hours for a Senior Director and 2,000 hours for any other A&M employee. The Company acknowledges and agrees that this fee fairly represents the loss that A&M will suffer if the Company breaches
this provision. The fee shall be payable at the time of the Solicited Person’s acceptance of employment or engagement. 

	10.	Indemnification/Limitations on Liability. The Company shall indemnify the Engagement Personnel acting as officers (the “Indemnified
Professionals”) to the same extent as the most favorable indemnification it extends to its officers or directors, whether under the Company’s bylaws, its certificate of incorporation, by contract or otherwise, and no reduction or
termination in any of the benefits provided under any such indemnities shall affect the benefits provided to the Indemnified Professionals. The Indemnified Professionals shall be covered as officers under the Company’s existing director and
officer liability insurance policy. As a condition of A&M accepting this engagement, a Certificate of Insurance evidencing such coverage shall be furnished to A&M prior to the effective date of this Agreement. The Company shall give thirty
(30) days’ prior written notice to A&M of cancellation, non-renewal, or material change in coverage, scope, or amount of such director and officer liability policy. The Company shall also maintain such insurance coverage for the
Indemnified Professionals for a period of not less than six years following the date of the termination of the Indemnified Professionals’ services hereunder. The provisions of this section are in the nature of contractual obligations and no
change in applicable law or the Company’s charter, bylaws or other organizational documents or policies shall affect the Indemnified Professionals’ rights hereunder. The attached indemnity and limitation on liability provisions are
incorporated herein and the termination of this agreement or the engagement shall not affect those provisions, which shall remain in full force and effect. 

 

	11.	Miscellaneous. This Agreement (together with the attached indemnity provisions), including, without limitation, the construction and interpretation of thereof
and all claims, controversies and disputes arising under or relating thereto, shall be governed and construed in accordance with the laws of the State of New York, without regard to principles of conflict of law that would defer to the laws of
another jurisdiction. The Company and A&M agree to waive trial by jury in any action, proceeding or counterclaim brought by or on behalf of the parties hereto with respect to any matter relating to or arising out of the engagement or the
performance or non-performance of A&M hereunder. The Company and A&M agree, to the extent permitted by applicable law, that any Federal Court sitting within the Southern District of New York shall have exclusive jurisdiction over any
litigation arising out of this Agreement; to submit to the personal jurisdiction of the Courts of the United States District Court for the Southern District of New York; and to waive any and all personal rights under the law of any jurisdiction to
object on any basis (including, without limitation, inconvenience of forum) to jurisdiction or venue within the State of New York for any litigation arising in connection with this Agreement. 

 

	 	 This Agreement shall be binding upon A&M and the Company, their respective heirs, successors, and assignees, and any heir, successor, or assignee
of a substantial portion of A&M’s or the Company’s respective businesses and/or assets, including any Chapter 11 Trustee. This Agreement incorporates the entire understanding of the parties with respect to the subject matter hereof and
may not be amended or modified 

	 	
except in writing executed by the Company and A&M. Notwithstanding anything herein to the contrary, A&M may reference or list the Company’s name and/or a general description of the
services in A&M’s marketing materials, including, without limitation, on A&M’s website. 

  

	 	If the foregoing is acceptable to you, kindly sign the enclosed copy to acknowledge your agreement with its terms. 

 

			
	 Very truly yours,

	
	Alvarez & Marsal North America, LLC
		
	By:	 	 /s/ Dean Swick

		 	Dean Swick
		 	Managing Director

  

			
	 Accepted and agreed:

	
	Black Elk Energy Offshore Operations, LLC
		
	By:	 	 /s/ John Hoffman

		 	John Hoffman
		 	Chief Executive Officer

 INDEMNIFICATION AND LIMITATION ON LIABILITY AGREEMENT 

This indemnification and limitation on liability agreement is made part of an agreement, dated January 25, 2012 (which together with any renewals,
modifications or extensions thereof, is herein referred to as the “Agreement”) by and between Alvarez & Marsal North America, LLC (“A&M”) and Black Elk Energy Offshore Operations, LLC (the “Company”), for
services to be rendered to the Company by A&M. 
 A.     The Company agrees to indemnify and hold harmless each of
A&M, its affiliates and their respective shareholders, members, managers, employees, agents, representatives and subcontractors (each, an “Indemnified Party” and collectively, the “Indemnified Parties”) against any and all
losses, claims, damages, liabilities, penalties, obligations and expenses, including the costs for counsel or others (including employees of A&M, based on their then current hourly billing rates) in investigating, preparing or defending any
action or claim, whether or not in connection with litigation in which any Indemnified Party is a party, or enforcing the Agreement (including these indemnity provisions), as and when incurred, caused by, relating to, based upon or arising out of
(directly or indirectly) the Indemnified Parties’ acceptance of or the performance or nonperformance of their obligations under the Agreement; provided, however, such indemnity shall not apply to any such loss, claim, damage, liability or
expense to the extent it is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from such Indemnified Party’s gross negligence or willful misconduct. The Company
also agrees that (a) no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company for or in connection with the engagement of A&M, except to the extent that any such liability
for losses, claims, damages, liabilities or expenses are found in a final judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from such Indemnified Party’s gross negligence or
willful misconduct and (b) in no event will any Indemnified Party have any liability to the Company for special, consequential, incidental or exemplary damages or loss (nor any lost profits, savings or business opportunity). The Company further
agrees that it will not, without the prior consent of an Indemnified Party, settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which such Indemnified Party seeks
indemnification hereunder (whether or not such Indemnified Party is an actual party to such claim, action, suit or proceedings) unless such settlement, compromise or consent includes an unconditional release of such Indemnified Party from all
liabilities arising out of such claim, action, suit or proceeding. 
 B.     These indemnification provisions shall be in
addition to any liability which the Company may otherwise have to the Indemnified Parties. In the event that, at any time whether before or after termination of the engagement or the Agreement, as a result of or in connection with the Agreement or
A&M’s and its personnel’s role under the Agreement, A&M or any Indemnified Party is required to produce any of its personnel (including former employees) for examination, deposition or other written, recorded or oral presentation,
or A&M or any of its personnel (including former employees) or any other Indemnified Party is required to produce or otherwise review, compile, submit, duplicate, search for, organize or report on any material within such Indemnified
Party’s possession or control pursuant to a subpoena or other legal (including 

  
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administrative) process, the Company will reimburse the Indemnified Party for its out of pocket expenses, including the reasonable fees and expenses of its counsel, and will compensate the
Indemnified Party for the time expended by its personnel based on such personnel’s then current hourly rate. 
 C.
    If any action, proceeding or investigation is commenced to which any Indemnified Party proposes to demand indemnification hereunder, such Indemnified Party will notify the Company with reasonable promptness; provided,
however, that any failure by such Indemnified Party to notify the Company will not relieve the Company from its obligations hereunder, except to the extent that such failure shall have actually prejudiced the defense of such action. The Company
shall promptly pay expenses reasonably incurred by any Indemnified Party in defending, participating in, or settling any action, proceeding or investigation in which such Indemnified Party is a party or is threatened to be made a party or otherwise
is participating in by reason of the engagement under the Agreement, upon submission of invoices therefor, whether in advance of the final disposition of such action, proceeding, or investigation or otherwise. Each Indemnified Party hereby
undertakes, and the Company hereby accepts its undertaking, to repay any and all such amounts so advanced if it shall ultimately be determined that such Indemnified Party is not entitled to be indemnified therefor. If any such action, proceeding or
investigation in which an Indemnified Party is a party is also against the Company, the Company may, in lieu of advancing the expenses of separate counsel for such Indemnified Party, provide such Indemnified Party with legal representation by the
same counsel who represents the Company, provided such counsel is reasonably satisfactory to such Indemnified Party, at no cost to such Indemnified Party; provided, however, that if such counsel or counsel to the Indemnified Party shall determine
that due to the existence of actual or potential conflicts of interest between such Indemnified Party and the Company such counsel is unable to represent both the Indemnified Party and the Company, then the Indemnified Party shall be entitled to use
separate counsel of its own choice, and the Company shall promptly advance its reasonable expenses of such separate counsel upon submission of invoices therefor. Nothing herein shall prevent an Indemnified Party from using separate counsel of its
own choice at its own expense. The Company will be liable for any settlement of any claim against an Indemnified Party made with the Company’s written consent, which consent shall not be unreasonably withheld. 

D.     In order to provide for just and equitable contribution if a claim for indemnification pursuant to these indemnification
provisions is made but it is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) that such indemnification may not be enforced in such case, even though the express provisions hereof provide for
indemnification, then the relative fault of the Company, on the one hand, and the Indemnified Parties, on the other hand, in connection with the statements, acts or omissions which resulted in the losses, claims, damages, liabilities and costs
giving rise to the indemnification claim and other relevant equitable considerations shall be considered; and further provided that in no event will the Indemnified Parties’ aggregate contribution for all losses, claims, damages, liabilities
and expenses with respect to which contribution is available hereunder exceed the amount of fees actually received by the Indemnified Parties pursuant to the Agreement. No person found liable for a fraudulent misrepresentation shall be entitled to
contribution hereunder from any person 

  
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who is not also found liable for such fraudulent misrepresentation. 
 E.
    In the event the Company and A&M seek judicial approval for the assumption of the Agreement or authorization to enter into a new engagement agreement pursuant to either of which A&M would continue to be engaged by the
Company, the Company shall promptly pay expenses reasonably incurred by the Indemnified Parties, including attorneys’ fees and expenses, in connection with any motion, action or claim made either in support of or in opposition to any such
retention or authorization, whether in advance of or following any judicial disposition of such motion, action or claim, promptly upon submission of invoices therefor and regardless of whether such retention or authorization is approved by any
court. The Company will also promptly pay the Indemnified Parties for any expenses reasonably incurred by them, including attorneys’ fees and expenses, in seeking payment of all amounts owed it under the Agreement (or any new engagement
agreement) whether through submission of a fee application or in any other manner, without offset, recoupment or counterclaim, whether as a secured claim, an administrative expense claim, an unsecured claim, a prepetition claim or a postpetition
claim. 
 F.     Neither termination of the Agreement nor termination of A&M’s engagement nor the filing of a
petition under Chapter 7 or 11 of the United States Bankruptcy Code (nor the conversion of an existing case to one under a different chapter) shall affect these indemnification provisions, which shall hereafter remain operative and in full force and
effect. 
 G.     The rights provided herein shall not be deemed exclusive of any other rights to which the Indemnified
Parties may be entitled under the certificate of incorporation or bylaws of the Company, any other agreements, any vote of stockholders or disinterested directors of the Company, any applicable law or otherwise. 

 

									
	Black Elk Energy Offshore Operations LLC	 		 	ALVAREZ & MARSAL NORTH AMERICA, LLC
					
	By:	 	/s/ John Hoffman	 		 	By:	 	/s/ Dean Swick
	John Hoffman	 		 	Dean Swick
	Chief Executive Officer	 		 	Managing Director

  
 -3-EX-10.18

 Exhibit 10.18 
 CONTRIBUTION AGREEMENT 
 THIS CONTRIBUTION AGREEMENT, (this
“Agreement”) dated as of January 25, 2013, by and between BLACK ELK ENERGY OFFSHORE OPERATIONS, LLC, a Texas limited liability company (the “Company”), and PPVA BLACK ELK (EQUITY) LLC, a Delaware limited
liability company (“PPVA (Equity)”). 
 BACKGROUND 

WHEREAS, PPVA (Equity) has agreed to contribute to the Company, upon the terms and subject to the conditions set forth in this Agreement,
$10,000,000 (the “Capital Contribution”); and 
 WHEREAS, as consideration for the Capital Contribution, the
Company shall issue to PPVA (Equity) Class E Preferred Units and Class B Units, as described in Section 2. 
 NOW,
THEREFORE, incorporating the foregoing herein, and in consideration of the mutual promises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound,
the parties hereto agree as follows: 
 1. Contribution. Subject to the terms and conditions of this Agreement, including
Section 3, PPVA (Equity) hereby agrees to make the Capital Contributions to the Company on the date hereof and the Company hereby agrees to accept from PPVA (Equity) the Capital Contribution. PPVA (Equity) shall make the Capital Contribution to
the Company by wire transfer of immediately available funds to such account as the Company shall notify PPVA (Equity). 
 2.
Issuance of Units. In consideration of the Capital Contribution, the Company shall issue and deliver to PPVA (Equity) (a) 10,000,000 Class E Preferred Units having such rights, preferences and privileges as set forth in the
Company’s Second Amendment and Restated Operating Agreement, dated as of July 13, 2009, as amended by the First Amendment thereto dated as of August 19, 2010, by the Second Amendment thereto dated as of May 31, 2011 and by the
Third Amendment thereto dated as of the date hereof (the “Third Amendment”) (as so amended, the “Operating Agreement”), and (b) such number of Class B Units (as defined in the Operating Agreement), that, if
outstanding on the date hereof, would equal 0.6192031% of the aggregate outstanding Units issued by the Company on the date hereof, having such rights, preferences and privileges as set forth in the Operating Agreement. Upon the issuance of such
Class E Preferred Units and such Class B Units, the Company shall deliver to PPVA (Equity) a cross receipt in substantially the form of Exhibit A attached hereto evidencing such issuance (the “Cross Receipt”). At PPVA
(Equity)’s direction the Class E Preferred Units and/or the Class B Units will be issued in the name of such other person or entity it may designate in writing to the Company. 

3. Conditions to the Obligation of PPVA (Equity). The obligation of PPVA (Equity) to make the Capital Contribution contemplated
hereby is subject to the satisfaction (or waiver by PPVA (Equity)) of the following conditions: 

 (a) the representations and warranties made by the Company hereunder shall be true and
correct in all material respects as of the date of the Capital Contribution; 
 (b) the Company shall have executed and
delivered to PPVA (Equity) this Agreement and the Third Amendment, and the Operating Agreement shall not have been further amended; and 
 (c) the Company shall have executed and delivered a Cross Receipt with respect to the Capital Contribution. 
 4. Representations and Warranties. 
 4.1 PPVA (Equity) represents and
warrants to the Company as follows: 
 (a) PPVA (Equity) is a limited liability company duly formed, validly existing and in
good standing under the laws of the State of Delaware with full power and authority to carry on its business and to own or lease and to operate its properties as such business is conducted and such properties are owned, leased or operated. PPVA
(Equity) has the power and authority to execute, deliver and perform this Agreement and all agreements and documents contemplated hereby (the “Ancillary Documents”) and to consummate the transactions contemplated hereby and thereby.

 (b) The execution and delivery by PPVA (Equity) of this Agreement and the Ancillary Documents, and the consummation of the
transactions contemplated hereby and thereby have been duly authorized by all requisite action of PPVA (Equity). PPVA (Equity) has duly executed and delivered this Agreement and the Ancillary Documents and this Agreement and the Ancillary Documents
constitute legal, valid and binding agreements of PPVA (Equity), enforceable against it in accordance with their terms, subject to applicable federal and state bankruptcy and insolvency laws affecting generally the rights of creditors. 

(c) The execution, delivery and performance by PPVA (Equity) of this Agreement and the Ancillary Documents, and the consummation of the
transactions contemplated hereby and thereby, do not and will not conflict with, result in a breach or violation of, or constitute a default under, (i) the certificate of formation, limited liability company agreement or other organizational
documents of PPVA (Equity), (ii) any law, regulation or court order applicable to PPVA (Equity) or (iii) any contract, license, lease commitment or other agreement to which PPVA (Equity) or is a party or by which PPVA (Equity) or any of
its assets may be bound or affected. 
 (d) PPVA (Equity) is not required under federal, state, foreign or local law, rule or
regulation to obtain any consent, authorization or order of, or make any filing or registration with, any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, in order for it to execute,
deliver or perform any of its obligations under this Agreement or the Ancillary Documents. 
 4.2 The Company represents and
warrants to PPVA (Equity) as follows: 

  
 2 

 (a) The Company is a limited liability company duly formed, validly existing and in good
standing under the laws of the State of Texas with full power and authority to carry on its business and to own or lease and to operate its properties as such business is conducted and such properties are owned, leased or operated. The Company has
the power and authority to execute, deliver and perform this Agreement and the Ancillary Documents and to consummate the transactions contemplated hereby and thereby. 
 (b) The execution and delivery by the Company of this Agreement and the Ancillary Documents, and the consummation of the transactions contemplated hereby and thereby, have been duly authorized by all
requisite action of the Company. The Company has duly executed and delivered this Agreement and the Ancillary Documents, and this Agreement and the Ancillary Documents constitute legal, valid and binding agreements of the Company, enforceable
against the Company in accordance with their terms, subject to applicable federal and state bankruptcy and insolvency laws affecting generally the rights of creditors. 
 (c) The execution, delivery and performance by the Company of this Agreement and the Ancillary Documents, and the consummation of the transactions contemplated hereby and thereby, do not and will not
conflict with, result in a breach or violation of, or constitute a default under, (i) the certificate or articles of formation or organization or other organizational documents of the Company, (ii) any law, regulation or court order
applicable to the Company or (iii) any contract, license, lease commitment or other agreement to which the Company is a party or by which the Company or its assets may be bound or affected. 

(d) The Company is not required under federal, state, foreign or local law, rule or regulation to obtain any consent, authorization or
order of, or make any filing or registration with, any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, in order for it to execute, deliver or perform any of its obligations under this
Agreement or the Ancillary Documents or issue the Class E Preferred Units or the Class B Units in accordance with the terms hereof. 
 (e) There are no outstanding or authorized options, warrants, purchase rights, subscription rights, conversion rights, exchange rights, or other contracts or commitments that could require the Company to
issue, sell, or otherwise cause to become outstanding any of its equity interests. 
 5. Further Assurances. Each of the
parties hereto shall, at its own expense, from time to time upon the request of the other, execute and deliver, or cause to be executed and delivered, at such times as may reasonably be requested by the other party, such other documents,
certificates and instruments and take such actions as the other party deems reasonably necessary to consummate more fully the transactions contemplated by this Agreement. 
 6. Miscellaneous. 
 6.1 Entire Agreement. This Agreement and the
Ancillary Documents delivered by the parties pursuant to this Agreement constitute the entire agreement among the parties with respect to the subject matter of this Agreement and supersede all prior agreements,

  
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understandings and negotiations, whether written or oral, with respect to the subject matter of this Agreement. 
 6.2 Notices. Unless otherwise provided for herein, notices and other communications required or permitted hereunder shall be in writing to the parties and addresses below and shall be delivered by
certified mail return receipt requested or express mail and also via facsimile. Such notice shall be deemed to have been received on the date delivered. 
 If to the Company: 
 Black Elk Energy Offshore Operations, LLC 

11451 Katy Freeway, Suite 500 
 Houston, Texas 77079 
 Telephone: (281) 598-8600 

Facsimile: (281) 598-8601 
 Attn: John Hoffman 
 With a copy to: 

Liskow & Lewis 
 1001 Fannin Street, Suite 1800 
 Houston, Texas 77002 

Telephone: (713) 651-2984 
 Facsimile: (713) 651-2908 
 Attn: John T. Bradford 

If to PPVA (Equity): 
 c/o Platinum Partners Value Arbitrage Fund, LP 
 Carnegie Hall Tower 

152 West 57th Street, 4th Floor 
 New York, New York 10019 
 Telephone: (212) 582-2222 

Facsimile: (212) 582-2424 
 Attn: David Levy 
 With a copy to: 

Blank Rome LLP 

The Chrysler Building 
 405 Lexington Avenue 
 New York, New York 10174-0208 

Telephone: (212) 885-5431 
 Facsimile: (917) 332-3065 
 Attn: Eliezer M. Helfgott 

  
 4 

 6.3 Counterparts. This Agreement may be executed in any number of counterparts, and
each such counterpart shall be deemed to be an original instrument, but all such counterparts together shall constitute one and the same instrument. 
 6.4 Governing Law. This Agreement and the documents, agreements and instruments contemplated hereunder (unless expressly stated therein to the contrary) shall be construed and interpreted in
accordance with the laws of the State of New York, without regard to conflicts of law or choice of law principles thereof. 

6.5 SUBMISSION TO JURISDICTION. 
 (a) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT SHALL BE BROUGHT EXCLUSIVELY IN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK CITY OR OF THE UNITED STATES OF AMERICA FOR THE
SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HEREBY ACCEPTS FOR ITSELF AND (TO THE EXTENT PERMITTED BY LAW) IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE
AFORESAID COURTS. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH
ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS. THIS SUBMISSION TO JURISDICTION IS EXCLUSIVE AND PRECLUDES A PARTY FROM OBTAINING JURISDICTION OVER ANOTHER PARTY IN ANY COURT OTHERWISE HAVING JURISDICTION. 

(b) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ANY SERVICE OF PROCESS IN ANY SUCH ACTION OR
PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH HEREIN OR AT SUCH OTHER ADDRESS OF WHICH THE OTHER PARTY HERETO SHALL HAVE
BEEN NOTIFIED IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THIS AGREEMENT. 
 6.6 WAIVER OF JURY. EACH
PARTY HEREBY (A) IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN; (B) IRREVOCABLY WAIVES, TO THE
MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY SUCH LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, OR DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES; (C) CERTIFIES THAT NO
PARTY HERETO NOR ANY REPRESENTATIVE OR AGENT OF COUNSEL FOR ANY PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, OR IMPLIED THAT SUCH PARTY 

  
 5 

 
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS, AND (D) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED
HEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS CONTAINED IN THIS SECTION 6.6. 
 [Signature Page
Follows] 

  
 6 

 IN WITNESS WHEREOF, intending to be legally bound hereby, each of the parties hereto has
caused this Agreement to be duly executed by an authorized officer as of the date first above written. 
  

			
	 BLACK ELK ENERGY OFFSHORE OPERATIONS, LLC

		
	By:	 	/s/ John Hoffman
		 	 Name: John Hoffman
 Title:
President/CEO

  

			
	 PPVA BLACK ELK (EQUITY) LLC

		
	By:	 	 PLATINUM PARTNERS VALUE
ARBITRAGE FUND, LP, sole Member

		
	By:	 	/s/ David Levy
		 	 Name: David Levy
 Title:
Portfolio Manager

  
 [Signature
Page to Contribution Agreement] 

 EXHIBIT A 
 Form of Cross Receipt 
 Reference is made to that certain Contribution Agreement,
dated as of January 25, 2013 (amended, amended and restated, supplemented or otherwise modified from time to time, the “Agreement”), between Black Elk Energy Offshore Operations, LLC (the “Company”) and PPVA
Black Elk (Equity) LLC (“PPVA (Equity)”). Capitalized terms used by not defined herein shall have the meaning set forth in the Agreement. 
 The Company hereby acknowledges to PPVA (Equity) that on January 25, 2013 (the “Issuance Date”) the Company received a Capital Contribution from PPVA (Equity) in the amount of
$10,000,000 and that on the Issuance Date the Company has issued to PPVA (Equity) or to such person designated by PPVA (Equity) 10,000,000 Class E Preferred Units and 76.47 Class B Units. 

 

							
	Dated: January 25, 2013	 		 	 BLACK ELK ENERGY OFFSHORE
OPERATIONS, LLC

				
		 		 	By:	 	 
		 		 		 	 Name:

Title:

 Acknowledgement 
 By this Acknowledgement, PPVA (Equity) hereby acknowledges to the Company that it is deemed to have received on the Issuance Date the Class E Preferred Units and the Class B Units described above in
exchange for the Capital Contribution described above. 
  

							
	Dated: January 25, 2013	 		 	PPVA BLACK ELK (EQUITY) LLC
				
		 		 	By:	 	 PLATINUM PARTNERS VALUE
ARBITRAGE FUND, LP, sole Member

				
		 		 	By:	 	 
		 		 		 	 Name:

Title:

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