Document:

Exhibit 10.1

 

EXECUTION VERSION

 

EIGHTH AMENDMENT TO SECOND AMENDED AND
RESTATED

FIRST LIEN CREDIT AGREEMENT

 

This EIGHTH AMENDMENT
TO SECOND AMENDED AND RESTATED FIRST LIEN CREDIT AGREEMENT (“Amendment”), dated as of May 23, 2014 (the
“Effective Date”), is by and among Energy XXI Gulf Coast, Inc., a Delaware corporation (the “Borrower”),
the lenders party to the Credit Agreement described below (the “Lenders”), The Royal Bank of Scotland plc, as
administrative agent for the Lenders (in such capacity, the “Administrative Agent”), and the other parties in
the capacities herein identified.

 

RECITALS

 

WHEREAS, the Borrower,
the Lenders, the Administrative Agent and certain other Persons are parties to the Second Amended and Restated First Lien Credit
Agreement, dated as of May 5, 2011, as amended by the First Amendment to Second Amended and Restated First Lien Credit Agreement
dated as of October 4, 2011, by the Second Amendment to Second Amended and Restated First Lien Credit Agreement dated as of
May 24, 2012, by the Third Amendment to Second Amended and Restated First Lien Credit dated as of October 19, 2012, by
the Fourth Amendment to Amended and Restated First Lien Credit Agreement dated as of April 9, 2013, by the Fifth Amendment
to Second Amended and Restated First Lien Credit Agreement dated as of May 1, 2013, by the Sixth Amendment to Second Amended
and Restated First Lien Credit Agreement dated as of September 27, 2013 and by the Seventh Amendment to Second Amended and
Restated First Lien Credit Agreement dated as of April 7, 2014 (as amended, supplemented, amended and restated or otherwise modified
from time to time, the “Credit Agreement”); and

 

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

 

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

 

AGREEMENT

 

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

 

    	 

    	 

    

 

Section 2.          Amendment
to the Credit Agreement.

 

Effective as of the Eighth
Amendment Effective Date (hereinafter defined):

 

(a)          Throughout
the Credit Agreement, each occurrence of the defined term “NGP” and each occurrence of the defined term “Energy
XXI Natural Gas Partners” are deleted and replaced with the defined term “M21K”.

 

(b)          Section 1.1
of the Credit Agreement is hereby amended by deleting the following definitions: “2010 Noteholders”; “2011 Noteholders”;
“2013 Noteholders”; “Indenture”; ““NGP” or “Energy XXI Natural Gas Partners LLC””;
and “Sixth Amendment Effective Date”.

 

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

 

“2011
EPL Debt” means the Indebtedness under the 2011 EPL Notes Indenture, the 2011 EPL Notes and the other 2011 EPL Debt Documents,
and any Refinancing of such Indebtedness to the extent permitted in accordance with the terms hereof.

 

“2011
EPL Debt Documents” means the 2011 EPL Notes Indenture, the 2011 EPL Notes, and the other agreements, certificates,
documents and instruments delivered in connection with any of the foregoing, and such corresponding agreements, certificates, documents
and instruments for any Refinancing of the 2011 EPL Debt.

 

“2011
EPL Notes” means EPL’s 8.25% notes due 2018 and shall have the meaning given the term “Notes” as defined
in the 2012 EPL Notes Indenture.

 

“2011
EPL Notes Indenture” means that certain Indenture dated as of February 14, 2011, pursuant to which the 2011 EPL
Notes were issued, as amended, supplemented, amended and restated or otherwise modified from time to time in accordance with Section 7.2.11.

 

“2012
EPL Debt” means the Indebtedness under the 2012 EPL Notes Indenture, 2012 EPL Notes and the other 2012 EPL Debt Documents,
and any Refinancing of such Indebtedness to the extent permitted in accordance with the terms hereof.

 

“2012
EPL Debt Documents” means the 2012 EPL Notes Indenture, the 2012 EPL Notes, and the other agreements, certificates, documents
and instruments delivered in connection with any of the foregoing, and such corresponding agreements, certificates, documents and
instruments for any Refinancing of the 2012 EPL Debt.

 

“2012
EPL Notes” means EPL’s 8.25% notes due 2018 and shall have the meaning given the term “Notes” as defined
in the 2012 EPL Notes Indenture.

 

    	 	-2-	-EXXI Eighth Amendment-

    	 

    

 

“2012
EPL Notes Indenture” means that certain Indenture, dated as of October 25, 2012, pursuant to which the 2012 EPL Notes
were issued, as amended, supplemented, amended and restated, Refinanced or otherwise modified from time to time in accordance with
Section 7.2.11.

 

“2014
Debt” means the Indebtedness under the 2014 Notes Indenture, the 2014 Notes and the other 2014 Debt Documents, and any
Refinancing of such Indebtedness to the extent permitted in accordance with the terms hereof.

 

“2014
Debt Documents” means the 2014 Notes Indenture, the 2014 Notes, and the other agreements, certificates, documents and
instruments delivered in connection with any of the foregoing, and such corresponding agreements, certificates, documents and instruments
for any Refinancing of the 2014 Debt.

 

“2014
Notes” means the Borrower’s 6.875% senior unsecured notes due 2024 and shall have the meaning given the term “Notes”
as defined in the 2014 Notes Indenture; for the avoidance of doubt, the “2014 Notes” shall include any Notes (as defined
in the 2014 Notes Indenture) issued under the 2014 Notes Indenture in capitalization of Borrower’s interest payment obligations
on then outstanding 2014 Notes.

 

“2014
Notes Indenture” means that certain Indenture, dated on or about May 27, 2014, pursuant to which the 2014 Notes were
issued, as amended, supplemented, amended and restated, Refinanced or otherwise modified from time to time in accordance with Section
7.2.11.

 

“Aggregate
Available Commitment” means at any time the positive difference, if any, of (i) the Aggregate Commitment at such time
minus (ii) the EPL Loan Availability at such time; and for clarification, at Disqualifying Condition Termination, “Aggregate
Available Commitment” shall be equal to the Aggregate Commitment.

 

“Aggregate
EPL Commitment” means, unless decreased pursuant to Section 2.2(b), an amount equal to the EPL Borrowing Base, and
if reduced pursuant to Section 2.2(b), the amount to which it is so reduced; provided that notwithstanding the foregoing or
the definition of Available Borrower Borrowing Base, unless the Administrative Agent shall agree in its reasonable discretion no
such reduction pursuant to Section 2.2(b) shall have the effect of increasing the Available Borrower Borrowing Base.

 

“ASC”
means the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC).

 

“Available
Borrower Borrowing Base” means the positive difference, if any, of (i) the Borrowing Base minus (ii) the EPL Borrowing
Base at such applicable time of calculation; and for clarification, after Disqualifying Condition Termination, “Available
Borrower Borrowing Base” shall be equal to the Borrowing Base.

 

    	 	-3-	-EXXI Eighth Amendment-

    	 

    

 

“Disqualifying
Condition Termination” means that (i) either (a) the 2011 EPL Notes have been paid in full, (b) Covenant Defeasance (as
such term is defined in the 2011 EPL Notes Indenture) has occurred or (c) Legal Defeasance (as such term is defined in the 2011
EPL Notes Indenture) has occurred and (ii) either (a) the 2012 EPL Notes have been paid in full, (b) Covenant Defeasance (as such
term is defined in the 2012 EPL Notes Indenture) has occurred or (c) Legal Defeasance (as such term is defined in the 2012 EPL
Notes Indenture has occurred.

 

“Eighth
Amendment” means the Eighth Amendment to Second Amended and Restated First Lien Credit Agreement dated as of May 23,
2014 among the Borrower, EPL, the Lenders, the Administrative Agent and the other Persons party thereto.

 

“Eighth
Amendment Effective Date” means the date when the conditions set forth in Section 6(b) of the Eighth Amendment have
been satisfied.

 

“EPL”
means EPL Oil & Gas, Inc.

 

“EPL
Acquisition” means the acquisition of EPL by the Borrower pursuant to the terms of that certain Agreement and Plan of
Merger dated as of March 12, 2014 among Parent, the Borrower, Clyde Merger Sub, Inc. and EPL.

 

“EPL
Borrowing Base” means at any time an amount equal to the amount determined in accordance with Section 2.8, as the same
may be adjusted from time to time in accordance with the terms hereof; and for clarification, at Disqualifying Condition Termination,
“EPL Borrowing Base” shall be zero.

 

“EPL
Borrowing Base Deficiency” is defined in Section 3.1.1(c).

 

“EPL
Collateral” means any Collateral pledged or encumbered by any EPL Obligor pursuant to the Loan Documents.

 

“EPL
Credit Exposure” means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender’s
EPL Loans.

 

“EPL
Lender” is defined in clause (ii) of Section 2.1.1(a).

 

“EPL
Loan Availability” means, (i) on any date when the Aggregate EPL Commitment exceeds the EPL Borrowing Base, an amount
equal to the EPL Borrowing Base in effect on such date and (ii) on any date when the EPL Borrowing Base equals or exceeds the Aggregate
EPL Commitment, an amount equal to the Aggregate EPL Commitment in effect on such date; and for clarification, at Disqualifying
Condition Termination, “EPL Loan Availability” shall be zero.

 

    	 	-4-	-EXXI Eighth Amendment-

    	 

    

 

“EPL
Loan Commitment” means, as to any Lender, the obligations of such Lender, if any, to make EPL Loans in an aggregate principal
amount not to exceed such Lender’s Percentage of the Aggregate EPL Commitment.

 

“EPL
Loan Commitment Termination Date” means the earliest of

 

(a)          the
Stated Maturity Date;

 

(b)          the
date on which the Aggregate EPL Commitment is terminated in full or reduced to zero pursuant to the terms of this Agreement;

 

(c)          the
date on which any Commitment Termination Event occurs; and

 

(d)          the
Loan Commitment Termination Date.

 

Upon the
occurrence of any event described above, the EPL Loan Commitments shall terminate automatically and without any further action.

 

“EPL
Loans” is defined in clause (ii) of Section 2.1.1(a).

 

“EPL
Mortgage” means any Mortgage with any EPL Obligor as grantor or mortgagor.

 

“EPL
Mortgaged Properties” is defined in Section 7.1.1(m).

 

“EPL
Note” means a promissory note of EPL payable to any EPL Lender, in the form of Exhibit A-3 to the Eighth Amendment (as
such promissory note may be amended, endorsed or otherwise modified from time to time), evidencing the aggregate Indebtedness of
EPL to such EPL Lender resulting from outstanding EPL Loans, and also means all other promissory notes accepted from time to time
in substitution therefor or renewal thereof.

 

“EPL
Obligations” means all obligations (monetary or otherwise, whether absolute or contingent, matured or unmatured) of EPL
and its Subsidiaries arising under or in connection with any Loan Document, including the principal of and premium, if any, and
interest (including interest accruing (or which would have accrued) during the pendency of any proceeding of the type described
in Section 8.1.9, whether or not allowed in such proceeding) on the EPL Loans. For sake of clarity, the EPL Obligations shall include
all Hedging Obligations of any EPL Obligor that is a Guarantor in respect of transactions under Hedging Agreements entered into
with any Lender or Affiliate of any Lender at the time such Lender is a Lender hereunder or in effect between such EPL Obligor
and such Lender or Affiliate of such Lender on the Eighth Amendment Effective Date, as applicable. Notwithstanding the foregoing,
with respect to any EPL Obligor (other than EPL), the term “EPL Obligations” shall not include Excluded Swap Obligations.

 

    	 	-5-	-EXXI Eighth Amendment-

    	 

    

 

“EPL
Obligors” means EPL and any Subsidiary thereof that is obligated under any Loan Document.

 

“EPL
Pledge and Security Agreement” means the Pledge and Security Agreement and Irrevocable Proxy executed and delivered by
an Authorized Officer of EPL, substantially in the form of the Borrower Pledge and Security Agreement (with such modifications
thereto as are reasonably acceptable to the Administrative Agent) as amended, supplemented, amended and restated or otherwise modified
from time to time.

 

“EPL
Senior Unsecured Debt Documents” means, collectively, the 2011 EPL Debt Documents and the 2012 EPL Debt Documents.

 

“EXXI
Guaranty” means the Borrower’s Guaranty in a form reasonably acceptable to the Administrative Agent, as amended,
supplemented, amended and restated or otherwise modified from time to time.

 

“Joinder
Agreement” has the meaning provided in the Eighth Amendment.

 

“M21K”
means M21K, LLC f/k/a Energy XXI Natural Gas Partners, LLC, a Delaware limited liability company and Affiliate of Parent, engaged
in the business of acquiring and operating certain types of natural gas and other hydrocarbon-related assets and other assets incidental
or ancillary thereto.

 

“Prepayment
Conditions” means that with respect to any payment or prepayment under Section 7.2.15 or 7.2.21 (i) no Default, Borrowing
Base Deficiency or EPL Borrowing Base Deficiency exists or will be caused thereby, (ii) at the time of such payment or prepayment
the sum of (x) an amount equal to the difference of (A) the lesser of the Aggregate Available Commitment and the Available Borrower
Borrowing Base less (B) the aggregate of all Credit Exposure of the Lenders plus (y) the aggregate amount of all unencumbered (other
than an encumbrance granted under the Loan Documents) cash and Cash Equivalent Investments of the Borrower and its Subsidiaries
(other than, prior to Disqualifying Condition Termination, the EPL Obligors) after giving effect to such payment or prepayment
shall equal or exceed $150,000,000 and (iii) the aggregate amount of all such payments and prepayments from and after the Eighth
Amendment Effective Date shall not exceed the aggregate of (x) the amount of Permitted Unsecured Indebtedness incurred after April
1, 2014 plus (y) the aggregate amounts of the Senior Unsecured Debt Refinanced on and after April 1, 2014 plus (z) the aggregate
amount of 2014 Debt issued by the Borrower.

 

“Proposed
EPL Borrowing Base” is defined in Section 2.8.11.

 

    	 	-6-	-EXXI Eighth Amendment-

    	 

    

 

“Refinance,
Refinancing or Refinanced” shall mean, with respect to any Indebtedness (the “Refinanced Indebtedness”),
any Indebtedness issued or incurred in exchange for, or the net proceeds of which are used to modify, extend, refinance, renew,
replace or refund, such Refinanced Indebtedness; provided that such Indebtedness is on No Less Favorable Terms and Conditions than
the Refinanced Indebtedness; provided, however, that any Indebtedness issued or incurred in exchange for, or the net proceeds of
which are used to modify, extend, refinance, renew, replace or refund, any or all of the 2011 EPL Debt and/or the 2012 EPL Debt
may be issued or incurred by the Borrower, guaranteed by the Subsidiaries of the Borrower (in addition to EPL and its Subsidiaries)
and have terms and conditions generally applicable in respect of the Borrower and its Subsidiaries (in addition to EPL and its
Subsidiaries) and shall not be considered to not be on No Less Favorable Terms and Conditions as such 2011 EPL Debt and/or 2012
EPL Debt in respect thereof (including, without limitation, on the basis of clauses (c) and (e) under the definition of No Less
Favorable Terms and Conditions).

 

“Required
EPL Percentages” is defined in Section 7.1.11.

 

“Senior
Unsecured Debt” means, collectively, the Indebtedness arising pursuant to the Senior Unsecured Debt Documents.

 

(d)          Section 1.1
of the Credit Agreement is hereby further amended by amending and restating the following definitions in their entirety to read
as follows:

 

“2010
Debt Documents” means the 2010 Notes Indenture, the 2010 Notes and the other agreements, certificates, documents and
instruments delivered in connection with any of the foregoing, and such corresponding agreements, certificates, documents and instruments
for any Refinancing of the 2010 Debt.

 

“2011
Debt Documents” means the 2011 Notes Indenture, the 2011 Notes and the other agreements, certificates, documents and
instruments delivered in connection with any of the foregoing, and such corresponding agreements, certificates, documents and instruments
for any Refinancing of the 2011 Debt.

 

“2013
Debt Documents” means the 2013 Notes Indenture, the 2013 Notes, and the other agreements, certificates, documents and
instruments delivered in connection with any of the foregoing, and such corresponding agreements, certificates, documents and instruments
for any Refinancing of the 2013 Debt.

 

    	 	-7-	-EXXI Eighth Amendment-

    	 

    

 

“Defaulting
Lender” means any Lender, as reasonably determined by the Administrative Agent, that has (a) failed to (i) fund any portion
of its Loans within two Business Days, unless such Lender notifies the Administrative Agent in writing that such failure is the
result of such Lender’s good faith determination that a condition precedent to funding (specifically identified and with
supporting facts) has not been satisfied, or (ii) participations in Letters of Credit or any portion of the Swing Line Loans within
two (2) Business Days of the date required to be funded by it hereunder, (b) notified the Borrower, the Administrative Agent, any
Issuer or the Swing Line Lender in writing that it does not intend to comply with any of its funding obligations under this Agreement
or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement
(unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such
position is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together
with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) failed,
within three (3) Business Days after written request by the Administrative Agent, to confirm in writing that it will comply with
the terms of this Agreement relating to its obligations to fund prospective Loans, participations in then outstanding Letters of
Credit or Swing Line Loans (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt
of such written confirmation by the Administrative Agent and the Borrower), (d) otherwise failed to pay over to the Administrative
Agent or any other Lender any other amount required to be paid by it hereunder within three (3) Business Days of the date when
due, unless the subject of a good faith dispute, or (e) (i) become or is insolvent or has a parent company that has become or is
insolvent or (ii) become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian
appointed for it, or has a parent company that has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver,
conservator, trustee or custodian appointed for it or has taken any corporate or board or other action seeking or agreeing to the
appointment of any such Person; provided, that a Lender shall not become a Defaulting Lender solely as the result of the acquisition
or maintenance of an ownership interest in such Lender or Person controlling such Lender or the exercise of control over a Lender
or Person controlling such Lender by a Governmental Authority or an instrumentality thereof. Any determination by the Administrative
Agent that a Lender is a Defaulting Lender hereunder shall be conclusive and binding absent manifest error, and such Lender shall
be deemed to be a Defaulting Lender upon delivery of written notice of such determination to the Borrower, each Issuing Bank, each
Swing Line Lender and each Lender.

 

“EBITDA”
means, for any applicable period and with the respect to the Borrower and its consolidated Subsidiaries, the sum of (a) Net Income,
plus (b) to the extent deducted in determining Net Income, the sum of (i) amounts attributable to amortization, depletion and depreciation
of assets, (ii) income tax expense, (iii) interest expense (whether in cash or non-cash form) for such period, (iv) reasonable
transaction fees and expenses incurred in connection with negotiation, execution and delivery of this Agreement, the other Loan
Documents and the negotiation, execution and delivery and consummation of the EPL Acquisition, any Senior Unsecured Debt Documents,
any Permitted Unsecured Indebtedness and any Refinancing of any thereof and (v) expenses associated with the exploration of Properties
of any of the EPL Obligors; provided, however, that (A) for the Fiscal Quarter ending March 31, 2014, EBITDA for such Fiscal Quarter
shall be deemed to be equal to $260,625,000, (B) for the Fiscal Quarter ending December 31, 2013, EBITDA for such Fiscal Quarter
shall be deemed to be equal to $245,284,002, (C) for the Fiscal Quarter ending September 30, 2013, EBITDA for such Fiscal Quarter
shall be deemed to be equal to $295,318,193, and (D) for the Fiscal Quarter ending June 30, 2013, EBITDA for such Fiscal Quarter
shall be deemed to be equal to $351,673,494; provided, further, that any calculation of EBITDA hereunder for any applicable period
shall be made using an EBITDA for such applicable period calculated on a pro forma basis (inclusive of any acquisitions and/or
divestitures, if any, of assets or equity interests made during such applicable period as if such acquisitions or divestitures
had been made at the beginning of such applicable period).

 

    	 	-8-	-EXXI Eighth Amendment-

    	 

    

 

“FATCA”
means Section 1471 through 1474 of the Code as of the date hereof (or any amended or successor version that is substantively comparable
and not materially more onerous to comply with) and any applicable Treasury regulations or published administrative guidance promulgated
thereunder and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

 

“Letter
of Credit Commitment Termination Date” means the date that is five Business Days prior to the Loan Commitment Termination
Date; provided that notwithstanding the foregoing, the Letter of Credit Commitment Termination Date shall be June 8, 2017, unless
prior to such date, the 2010 Notes have been prepaid, redeemed or Refinanced as permitted hereunder (including as provided in Section
7.2.2(b) or Section 7.2.15), and provided, further that the Letter of Credit Commitment Termination Date shall be August 10, 2017,
unless prior to such date, the 2011 EPL Notes and the 2012 EPL Notes have been prepaid, redeemed or Refinanced as permitted hereunder
(including as provided in Section 7.2.2(b) or Section 7.2.23).

 

“Loan
Commitment” means, relative to any Lender, such Lender’s obligation (if any) to make and/or hold Revolving Loans
pursuant to Section 2.1.1(a)(i) and, prior to Disqualifying Condition Termination, such Lender’s obligation (if any)
to make and/or hold EPL Loans pursuant to Section 2.1.1(a)(ii).

 

“Loan
Documents” means, collectively, this Agreement, the Notes, the Joinder Agreement, the Letters of Credit, each Hedging
Agreement between the Borrower or EPL (or any of their Subsidiaries) and any Approved Counterparty that is or was a Lender or an
Affiliate thereof at the time such Approved Counterparty entered into such Hedging Agreement or in effect between such Lender or
Affiliate of such Lender on the Eighth Amendment Effective Date, as applicable, the Fee Letter, each Security Document, each Guaranty,
each Borrowing Request, each Issuance Request, and each other agreement, certificate, document or instrument delivered in connection
with any Loan Document, whether or not specifically mentioned herein or therein.

 

    	 	-9-	-EXXI Eighth Amendment-

    	 

    

 

“Revolving
Loan Availability” means, (i) at any time prior to Disqualifying Condition Termination (A) on any date when the Aggregate
Available Commitment exceeds the Available Borrower Borrowing Base, an amount equal to the Available Borrower Borrowing Base in
effect on such date less the Swing Line Loan Commitment Amount in effect on such date and (B) on any date when the Available Borrower
Borrowing Base equals or exceeds the Aggregate Available Commitment, an amount equal to the Aggregate Available Commitment in effect
on such date less the Swing Line Loan Commitment Amount in effect on such date and (ii) at any time after Disqualifying Condition
Termination (A) on any date when the Aggregate Commitment exceeds the Borrowing Base, an amount equal to the Borrowing Base in
effect on such date less the Swing Line Loan Commitment Amount in effect on such date and (B) on any date when the Borrowing Base
equals or exceeds the Aggregate Commitment, an amount equal to the Aggregate Commitment in effect on such date less the Swing Line
Loan Commitment Amount in effect on such date. In the event that the Swing Line Lender gives notice of a Mandatory Borrowing pursuant
to Section 2.3.2, the Swing Line Loan Commitment Amount will be reduced to zero automatically upon the giving of such notice.

 

“Secured
Parties” means, collectively, (a) the Lenders, (b) the Issuers, (c) the Administrative Agent and the other Agents,
and (d) each Approved Counterparty to a Hedging Agreement with the Borrower or EPL (or any of their Subsidiaries that is a Guarantor)
that is or was a Lender or an Affiliate thereof at the time such Approved Counterparty entered into such Hedging Agreement or that
was in effect between such Obligor and such Lender or such Affiliate of such Lender on the Eighth Amendment Effective Date (provided
that such Approved Counterparty is a Secured Party only for purposes of each such Hedging Agreement so entered or such Hedging
Agreement as was in effect and not for any Hedging Agreements entered into after such Approved Counterparty ceases to be a Lender
or Affiliate thereof), and in each case each of their respective successors, transferees and assigns.

 

“Senior
Unsecured Debt Documents” means, collectively, the 2010 Debt Documents, the 2011 Debt Documents, the 2013 Debt Documents,
the 2014 Debt Documents, the 2011 EPL Debt Documents and the 2012 EPL Debt Documents.

 

“Stated
Maturity Date” means April 9, 2018; provided that in the event that the 2010 Notes are not prepaid, redeemed or Refinanced
as permitted hereunder (including as provided in Section 7.2.2(b) or Section 7.2.15) on or prior to June 15, 2017, then the Stated
Maturity Date shall automatically without further action or notice be June 15, 2017; provided, further, that in the event that
the 2011 EPL Notes and the 2012 EPL Notes are not prepaid, redeemed or Refinanced as permitted hereunder (including as provided
in Section 7.2.2(b) or Section 7.2.23) on or prior to August 15, 2017, then the Stated Maturity Date shall automatically without
further action or notice be August 15, 2017.

 

“Total
Exposure Amount” means, on any date of determination (and without duplication), the sum of the outstanding principal
amount of all Revolving Loans, EPL Loans, the aggregate amount of all Letter of Credit Outstandings and unpaid Reimbursement Obligations
and the unfunded amount of the Revolving Loan Commitments, the EPL Loan Commitments, the Swing Line Loan Commitment and the Letter
of Credit Commitments.

 

    	 	-10-	-EXXI Eighth Amendment-

    	 

    

 

“Utilization
Percentage” means, as of any day, the fraction expressed as a percentage, the numerator of which is the sum of the Credit
Exposures and EPL Credit Exposures (if any) of the Lenders on such day, and the denominator of which is the lesser of (i) the Borrowing
Base or (ii) the Aggregate Commitment in effect on such day.

 

(e)          Section 1.1
of the Credit Agreement is hereby further amended by deleting the word “refinancing” and inserting in place thereof
the defined term “Refinancing” in the following definitions: “2010 Debt”; “2010 Notes Indenture”;
2011 Debt”; “2011 Notes Indenture”; “2013
Debt” and “2013 Notes Indenture”.

 

(f)          Section 1.1
of the Credit Agreement is hereby further amended by deleting each instance of the phrase “Statement of Financial Accounting
Standards 133 and 143” and inserting in place thereof “ASC 410 and 815”.

 

(g)          Section 1.1
of the Credit Agreement is hereby further amended by amending each of the following defined terms as specified below:

 

(i)          “Aggregate
Commitment” is hereby amended by inserting “and the EPL Loan Commitments” immediately following “means
the aggregate of the Revolving Loan Commitments”.

 

(ii)         “Applicable
Margin” is hereby amended by deleting the sentence “If at any time the Borrower fails to deliver a Reserve Report
pursuant to Section 2.8.2 or 2.8.3, then the “Applicable Margin” means the rate per annum set forth on the grid when
the Borrowing Base Utilization Percentage is at its highest level until such time as such Reserve Report has been delivered.”
and inserting in place thereof the following sentence “If (i) at any time, the Borrower or (ii) prior to the Disqualifying
Condition Termination, EPL fails to deliver a Reserve Report pursuant to Section 2.8.2 or 2.8.3, then the “Applicable Margin”
means the rate per annum set forth on the grid when the applicable Borrowing Base Utilization Percentage is at its highest level
until such time as such Reserve Report has been delivered.”

 

(iii)        “Approved
Counterparties” is hereby amended by deleting “the Borrower” and inserting in place thereof “any of
the Borrower and its Subsidiaries (including any EPL Obligor)”.

 

(iv)        “Borrowing
Request” is hereby amended by inserting “or EPL” immediately following “the Borrower”.

 

(v)         “Change
of Control” is hereby amended by inserting “and EPL” immediately following “EXXI GOM”.

 

(vi)        “Commitment”
is hereby amended by inserting “, EPL Loan Commitment” immediately following “Letter of Credit Commitment”.

 

    	 	-11-	-EXXI Eighth Amendment-

    	 

    

 

(vii)       “Commitment
Amount” is hereby amended by inserting “, the Aggregate Available Commitment, the Aggregate EPL Commitment”
immediately following “the Swing Line Loan Commitment Amount”.

 

(viii)      “Commitment
Schedule” is hereby amended by (x) deleting “attached to this Agreement” and inserting in place thereof “attached
to the Eighth Amendment”, (y) inserting “, EPL” immediately following “the Borrower” and (z) inserting
“or EPL Loan Commitment” immediately following “a Lender’s Revolving Loan Commitment”.

 

(ix)         “Commitment
Termination Date” is hereby amended by inserting “the EPL Loan Commitment Termination Date” immediately following
“the Letter of Credit Commitment Termination Date”.

 

(x)          “Commitment
Termination Event” is hereby amended by inserting “or, prior to Disqualifying Condition Termination, EPL,”
immediately following “the occurrence of any Event of Default with respect to the Borrower”.

 

(xi)         “Consolidated
Net Income” is hereby amended by deleting “SFAS 133” and inserting in place thereof “ASC 815”.

 

(xii)        “Continuation/Conversion
Notice” is hereby amended by deleting “the Borrower” and inserting in place thereof “, as applicable,
the Borrower or, prior to Disqualifying Condition Termination, EPL,”.

 

(xiii)       “Credit
Exposure” is hereby amended by deleting “Lender’s Loans” and inserting in place thereof “Lender’s
Revolving Loans”.

 

(xiv)       “Excluded
Swap Obligations” is hereby amended by inserting “and EPL” after “Borrower” in the following
parenthetical “(other than Borrower)”.

 

(xv)        “Guarantor”
is hereby amended by inserting “the Borrower (with respect to the EPL Obligations),” immediately following “Intermediate
Holdco”.

 

(xvi)       “Guaranty”
is hereby amended by (y) inserting “the EXXI Guaranty,” immediately prior to “the Subsidiary Guaranties”
and (z) inserting “and the EPL Obligations (in accordance with the terms of this Agreement)” immediately prior to “as
a guarantor”.

 

(xvii)      “Impermissible
Qualification” is hereby amended by inserting “or EPL, as the case may be,” immediately following “the
effect of which would be to cause the Borrower”, appearing in clause (c) of such definition.

 

(xviii)     “Interest
Expense” is hereby amended by deleting the phrase beginning with the word “with” and ending at the termination
of such definition and inserting in place of such phrase the following phrase: “with (i) this Agreement and the other Loan
Documents, (ii) the Existing Credit Agreement and the “Loan Documents” thereunder, (iii) the Senior Unsecured Debt
Documents and (iv) the Permitted Unsecured Debt Documents.

 

    	 	-12-	-EXXI Eighth Amendment-

    	 

    

 

(xix)       “Interest
Period” is hereby amended by inserting “(and prior to Disqualifying Condition Termination, EPL) immediately following
“(y) the Borrower”.

 

(xx)        “Lenders”
is hereby amended by deleting “and (iii)” and inserting in place thereof the phrase “(iii) the EPL Lenders and
(iv)”.

 

(xxi)       “LIBO
Rate” is hereby amended by (x) deleting “British Bankers’ Association Interest Settlement Rates” and
inserting in place thereof “London interbank offered rate administered by ICE Benchmark Administration Limited”, (y) deleting
“the British Bankers’ Association” and inserting in place thereof “ICE Benchmark Administration Limited”
and (z) inserting “, provided, if any such rate is below zero, the LIBO Rate will be deemed to be zero.” immediately
following the phrase “the commencement of the Discontinued Interest
Period”.

 

(xxii)      “LIBO
Rate (Reserve Adjusted)” is hereby amended by deleting the phrase “rounded upwards, if necessary,” and inserting
in place thereof the phrase “rounded (if not equal to any 1/16 of 1%) upwards”.

 

(xxiii)     “Loan”
is hereby amended by inserting “, an EPL Loan” immediately following “a Revolving Loan”.

 

(xxiv)     “No
Less Favorable Terms and Conditions” is hereby amended by (i) deleting the word “refinancing” as it appears
throughout such definition and inserting in place thereof the defined term “Refinancing” and (ii) inserting the phrase
“or add any security” immediately following “change the security, if any,” in clause (d) of such definition.

 

(xxv)      “Note”
is hereby amended by inserting “, an EPL Note” immediately following “a Revolving Note”.

 

(xxvi)     “Obligations”
is hereby amended by deleting the sentence that begins with “For sake of clarity” and replacing it with the following
sentence “For sake of clarity, the Obligations shall include all Hedging Obligations of any Obligor in respect of transactions
under Hedging Agreements entered into with any Lender or Affiliate of any Lender at the time such Lender is a Lender hereunder
or in effect between such Obligor and such Lender or such Affiliate of any Lender on the Eighth Amendment Effective Date, as applicable.”

 

(xxvii)    “Operating
Agreement” is hereby amended by deleting the phrase “to be entered into” and inserting in place thereof the
phrase “dated July 19, 2012”.

 

    	 	-13-	-EXXI Eighth Amendment-

    	 

    

 

(xxviii)    “Percentage”
is hereby amended by inserting “, EPL Loan Commitment” immediately after “any Loan Commitment”.

 

(xxix)      “Permitted
Acquisition” is hereby amended by (x) deleting “means an acquisition” and inserting in place thereof the
phrase “means the EPL Acquisition and any other acquisition” and (y) deleting from clause (c) of such definition the
phrase “and no Default or Borrowing Base Deficiency” and inserting in place thereof the phrase “and no Default,
Borrowing Base Deficiency or EPL Borrowing Base Deficiency”.

 

(xxx)        “Reference
LIBO Rate” is hereby amended by (x) deleting “British Bankers’ Association Interest Settlement Rates”
and inserting in place thereof “London interbank offered rate administered by ICE Benchmark Administration Limited (or any
other Person which takes over the administration of that rate)” and (y) deleting the phrase that begins with “the British
Bankers’ Association” and ends with the period concluding such definition and inserting in place thereof the phrase
“the ICE Benchmark Administration Limited as an authorized information vendor for the purpose of displaying such rates.”.

 

(xxxi)      “Reserve
Report” is hereby amended by (x) deleting the phrase “the oil and gas reserves attributable to the Oil and Gas
Properties of the Borrower and its Subsidiaries that the Borrower wishes to include in the Borrowing Base,” and inserting
in place thereof the phrase “the oil and gas reserves attributable to the Oil and Gas Properties of the Borrower and its
Subsidiaries (including EPL and its Subsidiaries) that the Borrower or, of EPL and its Subsidiaries, that EPL, wishes to include
in the Borrowing Base or the EPL Borrowing Base, as applicable,” (y) inserting the phrase “(including EPL and its Subsidiaries)
and, prior to Disqualifying Condition Termination, of EPL and its Subsidiaries, as applicable,” immediately following the
phrase “Borrower and its Subsidiaries” appearing in clause (a) of such definition and (z) inserting “and EPL’s”
immediately following “Borrower’s” appearing in clause (b) of such definition.

 

(xxxii)     “Revolving
Loan Commitment” is hereby amended by deleting “hereof.” at the conclusion of such definition and inserting
in place thereof the following phrase “hereof; and for clarification, at Disqualifying Condition Termination, the Revolving
Loan Commitment of any Lender shall be equal to the sum of such Lender’s Revolving Loan Commitment and EPL Loan Commitment
immediately prior thereto.”

 

(xxxiii)    “Security
Agreement” is hereby amended by inserting the phrase “and the EPL Pledge and Security Agreement, substantially
in a form reasonably satisfactory to the Administrative Agent” immediately following the phrase “Exhibit G-1 or G-2
hereto (as the case may be)”.

 

    	 	-14-	-EXXI Eighth Amendment-

    	 

    

 

(xxxiv)     “Six-Month
Forecast Production Low” is hereby amended by inserting “relevant” immediately prior to the defined terms
“Obligor’s” and “Obligors,’” appearing in such definition.

 

(xxxv)      “Swing
Line Loan Commitment Amount” is amended by deleting the defined term “Borrowing Base” and inserting in place
thereof the defined term “Available Borrower Borrowing Base”.

 

(xxxvi)     “Termination
Date” is hereby amended by (x) inserting “and EPL Obligations” immediately following “all Obligations”
and (y) inserting “secured or purported to be secured by the Security Documents” immediately after “all
Hedging Agreements”.

 

(xxxvii)    “Total
Debt” is hereby amended by (x) deleting “the 2010 Debt, the 2011 Debt, the 2013 Debt” and inserting in place
thereof “the Senior Unsecured Debt” and (y) deleting both instances of the phrase “the 2010 Notes, the 2011 Notes,
the 2013 Notes” and inserting in place thereof “the Senior Unsecured Debt”.

 

(h)          Article
1 of the Credit Agreement is hereby further amended by adding the following new Section 1.6 as the last Section of such Article:

 

Section 1.6           EPL
Obligor Special Provisions. Each of the Lenders, each Issuer, the Administrative Agent and each other Secured Party acknowledges
and agrees that, notwithstanding any of the terms and provisions hereof or in any of the other Loan Documents, including, without
limitation any Security Documents, that may purport to provide for (or indicate the provision of, whether by express wording, cross-referencing
of defined terms or otherwise) security or a guaranty of the Obligations of the Obligors (other than the EPL Obligors) by an EPL
Obligor, shall not be construed to provide such security or guaranty (and shall be deemed by effect of this provision not to provide
such security or guaranty) by such EPL Obligor until Disqualifying Condition Termination, but, immediately and automatically without
any further action required upon Disqualifying Condition Termination, such terms and provisions shall be construed and be deemed
to provide for security and guaranty of the Obligations of all of the Obligors generally. Pursuant to the foregoing, prior to Disqualifying
Condition Termination, none of the Lenders, Issuers, the Administrative Agent or other Secured Party shall apply any payment from
any EPL Obligors or recovery or other amounts realized in regards to the EPL Collateral against any Obligations of the Borrower
and its Subsidiaries (other than the EPL Obligors). However, nothing herein shall limit or otherwise restrict the obligation of
the Obligors (other than the EPL Obligors) to secure and guarantee the EPL Obligations.

 

    	 	-15-	-EXXI Eighth Amendment-

    	 

    

 

(i)          Section 2.1.1
of the Credit Agreement is hereby amended and restated in its entirety to read as follows: “

 

Section 2.1.1  Loan
Commitment. (a) (i) From time to time on any Business Day occurring on or after the Effective Date but prior to the Loan Commitment
Termination Date, (x) each Lender that has a Revolving Loan Commitment (referred to as a “Revolving Lender”)
severally agrees that it will make loans (relative to such Lender, its “Revolving Loans”) to the Borrower in
an aggregate amount equal to such Lender’s Percentage of the aggregate amount of each Borrowing of the Revolving Loans requested
by the Borrower to be made on such day, and (y) the Swing Line Lender agrees that it will make loans (the “Swing Line
Loans”) to the Borrower equal to the amounts as provided under Section 2.3.2(a) hereof, and (ii) from time to time on
any Business Day occurring on or after the Eighth Amendment Effective Date but prior to Disqualifying Condition Termination, each
Lender that has an EPL Loan Commitment (referred to as a “EPL Lender”) severally agrees that it will make loans
(relative to such Lender, its “EPL Loans”) to EPL in an aggregate amount equal to such EPL Lender’s Percentage
of the aggregate amount of each Borrowing of the EPL Loans requested by EPL to be made on such day.

 

(b)          On
the terms and subject to the conditions hereof, the Borrower may from time to time borrow, prepay and reborrow Revolving Loans
and Swing Line Loans. No Revolving Lender shall be permitted or required to make any Revolving Loan if, after giving effect thereto,
(i) such Lender’s Credit Exposure would exceed the lesser of (A) such Lender’s Revolving Loan Commitment and (B) such
Lender’s Percentage of the Available Borrower Borrowing Base then in effect or (ii) the aggregate Credit Exposures of all
Lenders would exceed the lesser of (1) prior to Disqualifying Condition Termination (A) the Aggregate Available Commitment and
(B) the Revolving Loan Availability then in effect and (2) after Disqualifying Condition Termination (A) the Aggregate Commitment
and (B) the Revolving Loan Availability then in effect. Furthermore, the Swing Line Lender shall not be permitted or required to
make Swing Line Loans if, after giving effect thereto, (i) the aggregate outstanding principal amount of all Swing Line Loans would
exceed the then existing Swing Line Loan Commitment Amount or (ii) the aggregate principal amount of Swing Line Loans at any time
outstanding, when combined with (x) the aggregate principal amount of all Revolving Loans then outstanding and (y) all Letter of
Credit Outstandings at such time, would exceed the lesser of (i) (1) prior to Disqualifying Condition Termination, the Aggregate
Available Commitment then in effect and (2) after Disqualifying Condition Termination, the Aggregate Commitment then in effect
and (ii) the Revolving Loan Availability then in effect. On the terms and subject to the conditions hereof, EPL may from time to
time borrow, prepay and reborrow EPL Loans. No EPL Lender shall be permitted or required to make any EPL Loan if, after giving
effect thereto, (i) such Lender’s EPL Credit Exposure would exceed the lesser of (A) such Lender’s EPL Loan Commitment
and (B) such Lender’s Percentage of the EPL Borrowing Base then in effect or (ii) the aggregate EPL Credit Exposures of all
EPL Lenders would exceed the EPL Loan Availability then in effect.

 

    	 	-16-	-EXXI Eighth Amendment-

    	 

    

 

(j)          Section 2.1.2
of the Credit Agreement is hereby amended by deleting the phrase “(A) the Aggregate Commitment” and inserting in place
thereof the phrase “(A) (1) prior to Disqualifying Condition Termination, the Aggregate Available Commitment and
(2) after Disqualifying Condition Termination, the Aggregate Commitment”.

 

(k)          Section
2.2 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

Section 2.2           Termination
of Commitments and Reduction of the Commitment Amounts. (a) Unless previously terminated, the Aggregate Commitment and the
Swing Line Loan Commitment shall terminate on the Loan Commitment Termination Date and on such date the Aggregate Commitment shall
be zero, the Swing Line Loan Commitment Amount shall be zero and the Letter of Credit Commitment shall terminate on the Letter
of Credit Commitment Termination Date and on such date the Letter of Credit Commitment Amount shall be zero. The Borrower may,
from time to time on any Business Day occurring after the Effective Date, voluntarily reduce the amount of any Commitment (provided
that no reduction of the Aggregate EPL Commitment shall be made pursuant to this Section 2.2(a)) on the Business Day so specified
by the Borrower; provided that, (a) all such reductions shall require at least one Business Day’s prior notice to the Administrative
Agent and be permanent, (b) any reduction of any Commitment Amount shall be in a minimum amount of $1,000,000 and in an integral
multiple of $1,000,000 unless such reduction is in the full amount of the remaining available Commitment Amount, and (c) the Borrower
shall not terminate or reduce (i) the Aggregate Commitment if, after giving effect thereto and to any concurrent prepayments hereunder,
the aggregate Credit Exposures of all Revolving Lenders would exceed (1) prior to Disqualifying Condition Termination, the Aggregate
Available Commitment and (2) after Disqualifying Condition Termination, the Aggregate Commitment, (ii) the Letter of Credit
Commitment if, after giving effect thereto, the aggregate amount of all Letter of Credit Outstandings would exceed the Letter of
Credit Commitment or (iii) the Swing Line Loan Commitment Amount, if after giving effect thereto and to any concurrent prepayments
hereunder, the aggregate Swing Line Loans would exceed the Swing Line Loan Commitment Amount. Any optional or mandatory reduction
of the Aggregate Commitment pursuant to the terms of this Agreement that (x) prior to Disqualifying Condition Termination, reduces
the Aggregate Available Commitment below the Letter of Credit Commitment Amount or (y) after Disqualifying Condition Termination
reduces the Aggregate Commitment below the Letter of Credit Commitment Amount, shall result in an automatic and corresponding reduction
of the Letter of Credit Commitment Amount (as directed by the Borrower in a notice to the Administrative Agent delivered together
with the notice of such voluntary reduction in the Aggregate Commitment) to an aggregate amount not in excess of the Aggregate
Available Commitment or the Aggregate Commitment, as so reduced (as the case may be).

 

    	 	-17-	-EXXI Eighth Amendment-

    	 

    

 

(b)          Unless
previously terminated, the Aggregate EPL Commitment shall terminate on the EPL Loan Commitment Termination Date and on such date
the Aggregate EPL Commitment shall be zero. EPL may, from time to time on any Business Day occurring after the Eighth Amendment
Effective Date, voluntarily reduce the amount of the Aggregate EPL Commitment, on the Business Day so specified by EPL; provided
that, (a) all such reductions shall require at least one Business Day’s prior notice to the Administrative Agent and be permanent,
(b) any such reduction of the Aggregate EPL Commitment shall be in a minimum amount of $1,000,000 and in an integral multiple of
$1,000,000 unless such reduction is in the full amount of the remaining available Aggregate EPL Commitment, and (c) EPL shall not
terminate or reduce the Aggregate EPL Commitment if, after giving effect thereto and to any concurrent prepayments hereunder, the
aggregate EPL Credit Exposures of all EPL Lenders would exceed the Aggregate EPL Commitment.

 

(c)          Notwithstanding
anything herein or in any other Loan Document, unless previously terminated, the Aggregate EPL Commitment shall immediately and
automatically and without further action by the Borrower, EPL, the Administrative Agent, any Lender or any other Person terminate
upon Disqualifying Condition Termination. At such time, and without any further action by the Borrower, EPL, the Administrative
Agent, any Lender or any other Person (i) the Borrower shall assume and be deemed to have assumed all EPL Obligations in respect
of the EPL Loans, the EPL Notes and all accrued interest thereon, (ii) the EPL Loans automatically shall become and be deemed to
be Revolving Loans hereunder, (iii) the EPL Notes will be deemed replaced by Revolving Notes in amount corresponding thereto, (iv)
the outstanding principal amount of the Notes shall automatically be increased by the amount of the EPL Loans so assumed by the
Borrower, (v) the Aggregate EPL Commitment shall be zero, (vi) the EPL Loan Availability shall be zero, (vii) the EPL Borrowing
Base shall be zero and (viii) the Revolving Loan Commitments and the corresponding Revolving Loan Availability shall commensurately
increase by the amount of the EPL Loan Commitments and the EPL Loan Availability. In the event that the EPL Loans shall become
Revolving Loans pursuant to the preceding sentence at a time when an EPL Borrowing Base Deficiency shall be in existence, then
such EPL Borrowing Bases Deficiency shall immediately and automatically without any further action by the Borrower, EPL, the Administrative
Agent, any Lender or any other Person become or automatically increase, as applicable, the Borrowing Base Deficiency for purposes
of this Agreement.

 

(l)          Section
2.3 of the Credit Agreement is hereby amended by deleting from the lead-in paragraph of such Section the phrase “Revolving
Loans shall be made by the Revolving Lenders” and inserting in place thereof the phrase “Revolving Loans shall be made
by the Revolving Lenders and EPL Loans shall be made by the EPL Lenders”.

 

    	 	-18-	-EXXI Eighth Amendment-

    	 

    

 

(m)         Section
2.3.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

Section 2.3.1           Borrowing
Procedure. In the case of Revolving Loans and EPL Loans, by delivering a Borrowing Request to the Administrative Agent on or
before noon, New York time, on a Business Day, the Borrower, in the case of Revolving Loans, or EPL, in the case of EPL Loans,
may from time to time irrevocably request, on the same Business Day’s notice in the case of Base Rate Loans, or three Business
Days’ notice in the case of LIBO Rate Loans, and in either case not more than five Business Days’ notice, that a Borrowing
be made, (a) in the case of LIBO Rate Loans, in an aggregate minimum amount of $1,000,000 and an integral multiple of $1,000,000,
(b) in the case of Base Rate Loans, in an aggregate minimum amount of $1,000,000 and an integral multiple of $1,000,000 or, in
either case, in the unused amount of the Revolving Loan Availability or the EPL Loan Availability, as applicable; provided, that
no LIBO Rate Loans may be advanced when any Default, Borrowing Base Deficiency or EPL Borrowing Base Deficiency has occurred and
is continuing. Each such irrevocable request may be made by telephone confirmed promptly by hand delivery, electronic mail or facsimile
to the Administrative Agent of the applicable Borrowing Request. On the terms and subject to the conditions of this Agreement,
each Borrowing shall be comprised of the Type of Loans, and shall be made on the Business Day, specified in such Borrowing Request.
In the case of Revolving Loans or EPL Loans, on or before 11:00 a.m., New York time, on such Business Day (or 3:00 p.m., New York
time, in the case of a Base Rate Loan requested on the same Business Day), each Lender that has a Revolving Loan Commitment or
EPL Loan Commitment, as applicable, to make the Loans being requested shall deposit with the Administrative Agent same day funds
in an amount equal to such Revolving Lender’s Percentage of the requested Borrowing or such EPL Lender’s Percentage
of the requested Borrowing, as applicable. Such deposit will be made to an account which the Administrative Agent shall specify
from time to time by notice to the Revolving Lenders or EPL Lenders, as applicable. To the extent funds are received from the Revolving
Lenders or EPL Lenders, as applicable, the Administrative Agent shall make such funds available to the Borrower or EPL, as applicable,
by wire transfer to the accounts the Borrower or EPL, as applicable, shall have specified in its Borrowing Request. No Lender’s
obligation to make any Loan shall be affected by any other Lender’s failure to make any Loan.

 

(n)          Section 2.3.2(b)
of the Credit Agreement is hereby amended by (x) deleting the first occurrence of the defined term “Aggregate Commitment”
and inserting in place thereof the phrase “Aggregate Commitment or the Aggregate Available Commitment” and (y) deleting
the second occurrence of the defined term “Aggregate Commitment” and inserting in place thereof the phrase “Aggregate
Available Commitment”.

 

    	 	-19-	-EXXI Eighth Amendment-

    	 

    

 

(o)          Section 2.4
of the Credit Agreement is hereby amended by (x) inserting “or EPL, as applicable,” immediately following “the
Borrower” and (y) deleting the words “or Borrowing Base Deficiency” and inserting in place thereof “, Borrowing
Base Deficiency or EPL Borrowing Base Deficiency”.

 

(p)          Section
2.5 of the Credit Agreement is hereby amended by (x) inserting “or EPL, as applicable,” immediately following the first
occurrence of the defined term “Borrower” and (y) inserting “and EPL each” immediately following the second
occurrence of the defined term “Borrower”.

 

(q)          Section
2.6.1 of the Credit Agreement is hereby amended by inserting the parenthetical “(of the aggregate Revolving Loan Commitment
of all Revolving Lenders)” immediately following each occurrence of the defined term Percentage in such Section 2.6.1
of the Credit Agreement.

 

(r)          Section
2.6.4 of the Credit Agreement is hereby amended by deleting the defined term “Issuer” and inserting in place thereof
“Issuers”.

 

(s)          Section
2.7 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

Section 2.7           Register;
Notes. The Register shall be maintained on the following terms.

 

(a)          The
Borrower and EPL each hereby designates the Administrative Agent to serve as its agent, solely for the purpose of this clause,
to maintain a register (the “Register”) on which the Administrative Agent will record each Lender’s Commitments,
the Loans made by each Lender (other than the Swing Line Lender) and each repayment in respect of the principal amount of the Loans
(other than the Swing Line Loans), annexed to which the Administrative Agent shall retain a copy of each Lender Assignment Agreement
delivered to the Administrative Agent pursuant to Section 10.11. Failure to make any recordation, or any error in such recordation,
shall not affect any Obligor’s Obligations. The entries in the Register shall be conclusive, in the absence of manifest error,
and the Borrower, EPL, the Administrative Agent and the Lenders shall treat each Person in whose name a Loan is registered as the
owner thereof for the purposes of all Loan Documents, notwithstanding notice or any provision herein to the contrary. Any assignment
or transfer of a Commitment or the Loans made pursuant hereto (other than an assignment made pursuant to Section 2.9 hereof) shall
be registered in the Register only upon delivery to the Administrative Agent of a Lender Assignment Agreement that has been executed
by the requisite parties pursuant to Section 10.11. Each assignment of Revolving Loans or EPL Loans made pursuant to Section 2.9
shall be registered in the Register promptly after the Purchasing Lender shall have paid for such assignment in accordance with
Section 2.9. No assignment or transfer of a Lender’s Commitment or Loans shall be effective unless such assignment or transfer
shall have been recorded in the Register by the Administrative Agent as provided in this Section.

 

    	 	-20-	-EXXI Eighth Amendment-

    	 

    

 

(b)          The
Borrower and EPL each agree that, upon the request of any Lender, the Borrower or EPL, as applicable, will execute and deliver
to such Lender a Note evidencing the Loans made by, and payable to the order of, such Lender in a maximum principal amount equal
to such Lender’s Percentage (assuming for purposes of this sentence only that the Swing Line Loan Commitment Amount is zero)
of the applicable Commitment Amount. The Borrower and EPL each hereby irrevocably authorizes each Lender to make (or cause to be
made) appropriate notations on the grid attached to such Lender’s Note (or on any continuation of such grid), which notations,
if made, shall evidence, inter alia, the date of, the outstanding principal amount of, and the interest rate and Interest Period
applicable to the Loans evidenced thereby. Such notations shall, to the extent not inconsistent with notations made by the Administrative
Agent in the Register, be conclusive and binding on each Obligor absent manifest error; provided that, the failure of any Lender
to make any such notations shall not limit or otherwise affect any Obligations of any Obligor.

 

(t)          Section 2.8
of the Credit Agreement is hereby amended by deleting the heading of such Section 2.8, which reads “Borrowing Base”,
and inserting in place thereof the following heading “Borrowing Bases”.

 

(u)         Section
2.8.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

Section 2.8.1           Initial
Borrowing Bases. As of the Eighth Amendment Effective Date, the parties hereto agree that the Borrowing Base shall be equal
to $1,500,000,000 until such time as the Borrowing Base is redetermined in accordance with this Agreement and the EPL Borrowing
Base shall be equal to $475,000,000 until such time as the EPL Borrowing Base is redetermined in accordance with this Agreement.

 

(v)         Section
2.8.2 of the Credit Agreement is hereby amended by (x) deleting the phrase “aggregate Loan Commitments” and inserting
in place thereof the phrase “aggregate of the Loan Commitments” and (y) deleting the phrase “any Lender that
has not communicated” and inserting in place thereof the phrase “any Lender has not communicated”.

 

(w)         Section
2.8.6 of the Credit Agreement is hereby amended by (x) deleting the cross-reference to “Section 7.2.2(j)” and inserting
in place thereof a cross-reference to “Section 7.2.10” and (y) inserting the phrase “, including any discretionary
redetermination of the Borrowing Base,” immediately following the phrase “determination or redetermination of the Borrowing
Base”.

 

    	 	-21-	-EXXI Eighth Amendment-

    	 

    

 

(x)          Section
2.8.7 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

Section 2.8.7           Mandatory
Action When Revolving Loans and Letter of Credit Outstandings Exceed the Available Borrower Borrowing Base. In the event the
sum of the aggregate unpaid principal amount of the Revolving Loans plus the aggregate amount of the Letter of Credit Outstandings
of all Lenders shall, upon any determination or redetermination of the Borrowing Base or the EPL Borrowing Base, be in excess of
the Available Borrower Borrowing Base at such time, upon notice thereof by the Administrative Agent to the Borrower, the Borrower
shall immediately make mandatory prepayments of principal on account of the Notes together with accrued interest thereon, deposit
Cash Collateral to secure the Obligations, or both, in the amounts and on the dates set forth in Section 3.1.

 

(y)          Section
2.8 of the Credit Agreement is hereby further amended by inserting the following new subparts (Sections 2.8.10 through Section
2.8.16) immediately following Section 2.8.9:

 

Section 2.8.10         Annual
Scheduled Determinations of the EPL Borrowing Base. Any Reserve Report delivered pursuant to Section 2.8.2 prior to Disqualifying
Condition Termination shall indicate which of the oil and gas reserves attributable to the Oil and Gas Properties owned directly
by the EPL Obligors and which of such reserves EPL wishes to include in the EPL Borrowing Base. Within fifteen (15) days after
receipt of all such Reserve Reports and information, the Administrative Agent shall make an initial determination of the new EPL
Borrowing Base (a “Proposed EPL Borrowing Base”), and upon such initial determination shall promptly notify
the Lenders in writing of its initial determination of such Proposed EPL Borrowing Base. Such initial determination made by the
Administrative Agent shall be so made by the Administrative Agent in the exercise of its sole discretion in accordance with the
Administrative Agent’s customary practices and standards for oil and gas lending as they exist at the particular time. After
having received notice of such proposal by the Administrative Agent, each Lender shall have fifteen (15) days to agree or disagree
with such proposal. If, at the end of such fifteen (15) days, any EPL Lender has not communicated to the Administrative Agent its
approval or disapproval, such failure to respond shall be deemed to be an approval of the new or reaffirmed EPL Borrowing Base
proposed by the Administrative Agent. If the Required Lenders fail to approve any such determination of the Proposed EPL Borrowing
Base made by the Administrative Agent hereunder in such fifteen (15) day period, as the case may be, then the Administrative Agent
shall poll the Lenders to ascertain the highest EPL Proposed Borrowing Base then acceptable to the Required Lenders for purposes
of this Section 2.8.10 (it being understood that each Lender is deemed to have agreed to any and all EPL Borrowing Base amounts
that are lower than the amount actually agreed to by such Lender) and, subject to the last sentence of this Section 2.8.10, such
amount shall become the new EPL Borrowing Base effective on the date specified in this Section 2.8. Upon agreement by the Administrative
Agent and the Required Lenders of the new EPL Borrowing Base, the Administrative Agent shall, by written notice to the Borrower
and the Lenders, designate the new EPL Borrowing Base available to EPL. Such designation shall be effective as of the Business
Day specified in such written notice (or, if no effective date is specified in such written notice, the next Business Day following
delivery of such written notice) and such new EPL Borrowing Base shall remain in effect until the next determination or redetermination
of the EPL Borrowing Base in accordance with this Agreement. Anything herein contained to the contrary notwithstanding, any determination
or redetermination of the EPL Borrowing Base resulting in any increase of the EPL Borrowing Base in effect immediately prior to
such determination or redetermination shall require the approval of all the EPL Lenders in their sole discretion in accordance
with their respective customary practices and standards for oil and gas lending as they exist at the particular time.

 

    	 	-22-	-EXXI Eighth Amendment-

    	 

    

 

Section 2.8.11         Semi-Annual
Scheduled Determination of the EPL Borrowing Base. Any Reserve Report delivered pursuant to Section 2.8.3 prior to Disqualifying
Condition Termination shall indicate which of the oil and gas reserves attributable to the Oil and Gas Properties owned directly
by the EPL Obligors and which of such reserves EPL wishes to include in the EPL Borrowing Base. Within fifteen (15) days after
receipt of all such Reserve Reports and information (commencing with receipt of the Reserve Report dated December 31, 2014), the
Administrative Agent shall make an initial determination of a Proposed EPL Borrowing Base, and upon such initial determination
shall promptly notify the Lenders in writing of initial determination of such Proposed EPL Borrowing Base. Such initial determination
shall be made in the same manner and be subject to the same approvals as prescribed above with respect to the annual review, and
likewise the Administrative Agent shall communicate the results of such initial determination to the Lenders. After having received
notice of such proposal by the Administrative Agent, each Lender shall have fifteen (15) days to agree or disagree with such proposal.
If, at the end of such fifteen (15) days, any Lender has not communicated to the Administrative Agent its approval or disapproval,
such failure to respond shall be deemed to be an approval of the new or reaffirmed EPL Borrowing Base proposed by the Administrative
Agent. If the Required Lenders fail to approve any such determination of the Proposed EPL Borrowing Base made by the Administrative
Agent hereunder in such fifteen (15) day period, then the Administrative Agent shall poll the Lenders to ascertain the highest
Proposed EPL Borrowing Base then acceptable to the Required Lenders for purposes of this Section 2.8.11 (it being understood that
each Lender is deemed to have agreed to any and all EPL Borrowing Base amounts that are lower than the amount actually agreed to
by such Lender) and, subject to the last sentence of this Section 2.8.11, such amount shall become the new EPL Borrowing Base,
effective on the date specified in this Section 2.8.11. Upon agreement by the Administrative Agent and the Required Lenders of
the amount of credit to be made available to EPL hereunder, the Administrative Agent shall, by written notice to EPL and the Lenders,
designate the new EPL Borrowing Base available to EPL. Such designation shall be effective as of the Business Day specified in
such written notice (or, if no effective date is specified in such written notice, the next Business Day following delivery of
such written notice) and such new EPL Borrowing Base shall remain in effect until the next determination or redetermination of
the EPL Borrowing Base in accordance with this Agreement. Anything herein contained to the contrary notwithstanding, any determination
or redetermination of the EPL Borrowing Base resulting in any increase of the EPL Borrowing Base in effect immediately prior to
such determination or redetermination shall require the approval of all the Lenders in their sole discretion in accordance with
their respective customary practices and standards for oil and gas lending as they exist at the particular time.

 

    	 	-23-	-EXXI Eighth Amendment-

    	 

    

 

Section 2.8.12         Discretionary
Determination of the EPL Borrowing Base by the Lenders. In addition to the foregoing scheduled annual and semi-annual determinations
of the EPL Borrowing Base, the Required Lenders shall have the right to redetermine the EPL Borrowing Base at their sole discretion
at any time and from time to time but not more often than two (2) times every calendar year. If the Required Lenders shall elect
to make a discretionary redetermination of the EPL Borrowing Base pursuant to the provisions of this Section 2.8.12, EPL shall
within thirty (30) days of receipt of a request therefor from the Administrative Agent, deliver to the Administrative Agent a Reserve
Report in form and substance satisfactory to the Administrative Agent, prepared by the Borrower’s or EPL’s petroleum
engineers containing information similar to the Reserve Reports delivered pursuant to Section 2.8.10, together with such updated
engineering, production, operating and other data as the Administrative Agent, any Issuer or any Lender may reasonably request.
The Administrative Agent shall have fifteen (15) days following receipt of such requested information to make an initial redetermination
of the EPL Borrowing Base, and the Administrative Agent and the Required Lenders shall approve and designate the new EPL Borrowing
Base in accordance with the procedures and standards described in Section 2.8.10.

 

Section 2.8.13         Discretionary
Determination of the EPL Borrowing Base by EPL. In addition to the foregoing determinations of the EPL Borrowing Base, EPL
may request a redetermination of the EPL Borrowing Base at any time and from time to time but not more often than two (2) times
every calendar year, by delivering a written request to the Administrative Agent, together with (a) an engineering fee in the aggregate
amount of $2,500 for the account of the Administrative Agent in immediately available funds, and (b) a Reserve Report in form and
substance satisfactory to the Administrative Agent, prepared by EPL’s petroleum engineers containing information similar
to the Reserve Reports delivered pursuant to Section 2.8.10, together with such other updated engineering, production, operating
and other data as the Administrative Agent, any Issuer or any Lender may reasonably request. Each such discretionary redetermination
of the EPL Borrowing Base shall be made in the same manner and in accordance with the procedures and standards set forth above
by adjusting the Borrowing Base then in effect. The Administrative Agent shall have fifteen (15) days following receipt of such
requested information to make an initial redetermination of the EPL Borrowing Base, and the Administrative Agent and the Required
Lenders shall approve and designate the new EPL Borrowing Base in accordance with the procedures and standards described in Section
2.8.10.

 

    	 	-24-	-EXXI Eighth Amendment-

    	 

    

 

Section 2.8.14         Other
Redeterminations of EPL Borrowing Base. Notwithstanding anything to the contrary contained herein, the EPL Borrowing Base will
also be redetermined or adjusted in accordance with the provisions of Sections 7.1.13 and 7.2.10. Anything herein contained to
the contrary notwithstanding, any determination or redetermination of the EPL Borrowing Base resulting in any increase of the EPL
Borrowing Base in effect immediately prior to such determination or redetermination shall require the approval of all the Lenders
in their sole discretion in accordance with their respective customary practices and standards for oil and gas lending as they
exist at the particular time.

 

Section 2.8.15         Mandatory
Action When EPL Loans Exceed the EPL Borrowing Base. In the event the sum of the aggregate unpaid principal amount of the EPL
Loans of all Lenders shall, upon any determination or redetermination of the EPL Borrowing Base, be in excess of the EPL Borrowing
Base at such time, upon notice thereof by the Administrative Agent to EPL, EPL shall immediately make mandatory prepayments of
principal on account of the EPL Notes together with accrued interest thereon, in the amounts and on the dates set forth in Section
3.1.

 

Section 2.8.16         General
Provisions with Respect to the EPL Borrowing Base. Notwithstanding anything herein the contrary, in the event that the Borrower
or EPL does not furnish all required Reserve Reports or other information in a timely manner, the Agent and the Required Lenders
may nonetheless designate the EPL Borrowing Base from time to time thereafter until the Administrative Agent and the Lenders receive
all such Reserve Reports and information, whereupon the Administrative Agent and the Required Lenders or all Lenders, as applicable,
shall designate a new EPL Borrowing Base in accordance with the general procedures outlined in Section 2.8.10.

 

(z)          Section 2.9
of the Credit Agreement is hereby amended and restated in its entirety to the following:

 

    	 	-25-	-EXXI Eighth Amendment-

    	 

    

 

Section 2.9    Assignments
as a Result of Change in Percentages. In the event that any Lender’s Percentage of any applicable Commitment Amount shall
change (as required by this Agreement) at a time when there are outstanding Revolving Loans or EPL Loans, including as a result
of (i) a change in the Revolving Loan Commitment or the EPL Loan Commitment of any Lender or in the Aggregate Commitment or the
Aggregate EPL Commitment pursuant Section 2.2 or Section 2.11, (ii) a change in the Swing Line Loan Commitment Amount pursuant
to Section 2.2 or Section 2.8.9, (iii) the Swing Line Lender’s giving a notice of Mandatory Borrowing pursuant to Section
2.3.2 or (iv) an assignment of Commitments pursuant to Section 10.11, (x) the Administrative Agent shall promptly notify each Lender
of the change of its Percentage, and the amount by which the outstanding Revolving Loans and EPL Loans, as applicable, held by
such Lender are greater than or less than, as the case may be, its then changed Percentage of all Revolving Loans and EPL Loans,
as applicable, and (y) such Lender shall promptly, and in any event within one Business Day of receipt of such notice from
the Administrative Agent, purchase or sell, as the case may be, a portion of the outstanding Revolving Loans and EPL Loans, as
applicable, held by it such that after giving effect to such purchases and sales, each Lender shall hold an amount of the outstanding
Revolving Loans and EPL Loans equal to its updated Percentage of all Revolving Loans and EPL Loans. Each Lender so purchasing outstanding
Revolving Loans and EPL Loans (each such Lender herein a “Purchasing Lender”) shall promptly and in any event
within one (1) Business Day of the receipt of such notice from the Administrative Agent pay to the Administrative Agent an amount
equal to the amount by which the outstanding Revolving Loans and EPL Loans held by such Purchasing Lender is less than its then
Percentage of all then outstanding Revolving Loans and EPL Loans and the Administrative Agent shall promptly pay to each Lender
so selling outstanding Revolving Loans and EPL Loans (each such Lender herein a “Selling Lender”) an amount
equal to the amount by which the outstanding Revolving Loans and EPL Loans held by such Selling Lender is greater than its then
Percentage of all then outstanding Revolving Loans and EPL Loans; provided, however, that the Administrative Agent
shall not be required to pay any Selling Lender until such time as it has received all payments from each Purchasing Lender. Each
Selling Lender upon written notice to the Borrower or EPL, as applicable (with a copy to the Administrative Agent), shall be entitled
to reimbursement for any loss or expense as a result of selling such Revolving Loans and EPL Loans as provided in Section 4.4 hereof.
The purchases, sales and assignments pursuant to this Section 2.9 shall occur automatically effective upon payment by the Purchasing
Lender to the Administrative Agent of the amount provided in this Section 2.9 and shall not (i) require the consent or approval
of the Borrower, EPL, the Administrative Agent, any Lender or any Issuer, (ii) require any Lender to execute and deliver a Lender
Assignment Agreement, (iii) require the payment of any fee to the Administrative Agent and (iv) be required to be in any minimum
amount. Any Granting Lender that shall have granted to any SPC all or any part of any outstanding Revolving Loan shall be obligated
to purchase an interest in outstanding Revolving Loans and EPL Loans from Selling Lenders pursuant to this Section 2.9 to the extent
such SPC does not purchase such interest in outstanding Revolving Loans and EPL Loans as required by this Section 2.9.

 

(aa)         Section 2.10(a)
of the Credit Agreement is hereby amended by deleting the defined term “Commitment” and inserting in place thereof
the defined term “Commitments”.

 

(bb)         Section 2.10(c)(i)
of the Credit Agreement is hereby amended by deleting both occurrences of the defined term “Aggregate Commitment” and
inserting in place thereof the defined term “Aggregate Available Commitment”.

 

(cc)         Section 2.10(d)
of the Credit Agreement is hereby amended by deleting the defined term “Commitments” and inserting in place thereof
the defined term “Revolving Loan Commitments”.

 

    	 	-26-	-EXXI Eighth Amendment-

    	 

    

 

(dd)         The
final paragraph of Section 2.10 of the Credit Agreement (which is immediately following but not a part of clause (e) of such
Section 2.10) is hereby amended by (x) inserting “and EPL Credit Exposure” immediately following “Credit Exposure”
and (y) deleting the defined term “Lender’s Commitment” and inserting in place thereof the phrase “Lender’s
Revolving Loan Commitment and EPL Loan Commitment”.

 

(ee)         Section
2.11.2 of the Credit Agreement is hereby amended by inserting “, each EPL Lender’s EPL Loan Commitment” immediately
following “each Lender’s Revolving Loan Commitment”.

 

(ff)         Section
2.11.3 of the Credit Agreement is hereby amended by deleting the phrase “shall deliver a duly executed Note” and inserting
in place thereof the phrase “shall deliver duly executed Notes”.

 

(gg)         Section
2.11.4 of the Credit Agreement is hereby amended by (x) inserting “and the Aggregate EPL Commitment” immediately following
“Aggregate Commitment”, (y) inserting “, EPL Loan Commitments” immediately following “Revolving Loan
Commitments” and (z) deleting “Issuing Bank” and inserting in place thereof “Issuers”.

 

(hh)         Section
3.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

Section 3.1         Repayments
and Prepayments; Application. The Borrower and EPL, as applicable, each agrees that the Loans shall be repaid and prepaid pursuant
to the following terms.

 

Section 3.1.1     Repayments
and Prepayments. The Borrower and EPL each shall repay in full the unpaid principal amount of each Loan upon the applicable
Stated Maturity Date therefor. Prior thereto, payments and prepayments of the Loans shall or may be made as set forth below.

 

(a)          (i)
From time to time on any Business Day, the Borrower may make a voluntary prepayment, in whole or in part, of the outstanding principal
amount of any:

 

    	 	-27-	-EXXI Eighth Amendment-

    	 

    

 

(x)          Revolving
Loans; provided that, (1) all such voluntary prepayments shall require, in the case of Base Rate Loans at least the same Business
Day’s prior notice (such notice to be delivered before noon on such day), and in the case of LIBO Rate Loans at least three
Business Days’ prior notice (such notice to be delivered before noon on such day), and in either case not more than five
Business Days’ prior irrevocable notice to the Administrative Agent (which notice may be telephonic so long as such notice
is confirmed in writing within 24 hours thereafter and such notice to be delivered before noon on such day); and (2) all such voluntary
partial prepayments shall be, in the case of LIBO Rate Loans, in an aggregate minimum amount of $1,000,000 and an integral multiple
of $1,000,000 and, in the case of Base Rate Loans, in an aggregate minimum amount of $1,000,000 and an integral multiple of $1,000,000
(unless such prepayment is for the entire amount of all outstanding LIBO Rate Loans or Base Rate Loans, as the case may be). Each
notice of prepayment sent pursuant to this clause shall specify the prepayment date, the principal amount of each Borrowing (or
portion thereof) to be prepaid and the scheduled installment or installments of principal to which such prepayment is to be applied.
Each such notice shall be irrevocable and shall commit the Borrower to prepay such Borrowing by the amount stated therein on the
date stated therein; provided that a notice of prepayment may state that such notice is conditioned upon the effectiveness of other
credit facilities and funding thereunder, in which case such notice may be revoked by the Borrower (by notice to the Administrative
Agent on or prior to the specified effective date) if such condition is not satisfied. All prepayments under this clause (other
than prepayments of Loans that are Base Rate Loans that are not made in connection with the termination or permanent reduction
of the Loan Commitment) shall be accompanied by accrued and unpaid interest on the principal amount to be prepaid to but excluding
the date of payment; and

 

(y)          Swing
Line Loans; and at any time the Master Funding Account has excess balances, the Swing Line Lender’s automated treasury management
system will automatically pay down the Swing Line Loans.

 

    	 	-28-	-EXXI Eighth Amendment-

    	 

    

 

(ii)         From
time to time on any Business Day, EPL may make a voluntary prepayment, in whole or in part, of the outstanding principal amount
of any EPL Loans; provided that, (x) all such voluntary prepayments shall require, in the case of Base Rate Loans at least the
same Business Day’s prior notice (such notice to be delivered before noon on such day), and in the case of LIBO Rate Loans
at least three Business Days’ prior notice (such notice to be delivered before noon on such day), and in either case not
more than five Business Days’ prior irrevocable notice to the Administrative Agent (which notice may be telephonic so long
as such notice is confirmed in writing within 24 hours thereafter and such notice to be delivered before noon on such day); and
(y) all such voluntary partial prepayments shall be, in the case of LIBO Rate Loans, in an aggregate minimum amount of $1,000,000
and an integral multiple of $1,000,000 and, in the case of Base Rate Loans, in an aggregate minimum amount of $1,000,000 and an
integral multiple of $1,000,000 (unless such prepayment is for the entire amount of all outstanding LIBO Rate Loans or Base Rate
Loans, as the case may be). Each notice of prepayment sent pursuant to this clause shall specify the prepayment date, the principal
amount of each Borrowing (or portion thereof) to be prepaid and the scheduled installment or installments of principal to which
such prepayment is to be applied. Each such notice shall be irrevocable and shall commit EPL to prepay such Borrowing by the amount
stated therein on the date stated therein; provided that a notice of prepayment may state that such notice is conditioned upon
the effectiveness of other credit facilities and funding thereunder, in which case such notice may be revoked by EPL (by notice
to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. All prepayments under
this clause (other than prepayments of Loans that are Base Rate Loans that are not made in connection with the termination or permanent
reduction of the EPL Loan Commitment) shall be accompanied by accrued and unpaid interest on the principal amount to be prepaid
to but excluding the date of payment.

 

(b)          (i)
On each date when, after giving effect to any termination or reduction of applicable Commitments pursuant to Section 2.2, the aggregate
of the Lenders’ Credit Exposure exceeds (A) prior to Disqualifying Condition Termination, the Aggregate Available Commitment
then in effect or (B) after the Disqualifying Condition Termination, the Aggregate Commitment then in effect, the Borrower shall
make a mandatory prepayment of Revolving Loans or Swing Line Loans (or both) and, if necessary, Cash Collateralize the Letter of
Credit Outstandings, in an aggregate amount equal to such excess.

 

(ii)         On
each date when, after giving effect to any termination or reduction of the Aggregate EPL Commitment pursuant to Section 2.2, the
aggregate of the Lenders’ EPL Credit Exposure exceeds the Aggregate EPL Commitment then in effect, the Borrower shall make
a mandatory prepayment of EPL Loans in an aggregate amount equal to such excess.

 

(c)          If
at any time the sum of (i) the aggregate outstanding principal amount of all Revolving Loans and (ii) the aggregate amount of all
Letter of Credit Outstandings exceeds the redetermined or adjusted Available Borrower Borrowing Base (a “Borrowing Base
Deficiency”), then the Borrower shall (A) prepay the Revolving Loan Borrowings in an aggregate principal amount
equal to such excess, and (B) if any excess remains after prepaying all of the Revolving Loan Borrowings as a result of a Letter
of Credit Outstanding, Cash Collateralize such Letter of Credit Outstanding, in an aggregate amount equal to such excess. The Borrower
shall be obligated to make such prepayment and/or deposit of cash collateral within forty-five (45) days following its receipt
of the written designation of the Borrowing Base in accordance with Section 2.8 or the date the adjustment occurs; provided that
all payments required to be made pursuant to this clause (c) must be made on or prior to the Termination Date. If at any time the
sum of (i) the aggregate outstanding principal amount of all EPL Loans exceeds the redetermined or adjusted EPL Borrowing Base
(an “EPL Borrowing Base Deficiency”), then the Borrower and EPL shall prepay the EPL Loans in an aggregate principal
amount equal to such excess. The Borrower and EPL shall be obligated to make such prepayment within forty-five (45) days following
its receipt of the written designation of the EPL Borrowing Base in accordance with Section 2.8 or the date the adjustment occurs;
provided that all payments required to be made pursuant to this clause (c) must be made on or prior to Disqualifying Condition
Termination.

 

    	 	-29-	-EXXI Eighth Amendment-

    	 

    

 

(d)          Upon
any adjustments to the Borrowing Base pursuant to Sections 7.1.13 and 7.2.10, if the sum of (A) the aggregate outstanding
principal amount of all Revolving Loans and (B) the aggregate amount of all Letter of Credit Outstandings exceeds the redetermined
or adjusted Available Borrower Borrowing Base, then the Borrower shall (i) prepay the Revolving Loan Borrowings in an aggregate
principal amount equal to such excess, and (ii) if any excess remains after prepaying all of the Revolving Loan Borrowings as a
result of a Letter of Credit Outstanding, Cash Collateralize such Letter of Credit Outstandings, in an aggregate amount equal to
such excess. The Borrower shall be obligated to make such prepayment and/or deposit of cash collateral on the date it or any Subsidiary
receives cash proceeds as a result of any sale or Disposition under Section 7.2.10 or 45 days following its receipt of the written
designation of the Borrowing Base in accordance with Section 7.1.13, as applicable; provided that all payments required to be made
pursuant to this sentence must be made on or prior to the Termination Date. Upon any adjustments to the EPL Borrowing Base pursuant
to Sections 7.1.13 and 7.2.10, if the aggregate outstanding principal amount of all EPL Loans exceeds the redetermined or adjusted
EPL Borrowing Base, then the Borrower and EPL shall prepay the EPL Loan Borrowings in an aggregate principal amount equal to such
excess. The Borrower and EPL shall be obligated to make such prepayment on the date it or any Subsidiary receives cash proceeds
as a result of any sale or Disposition under Section 7.2.10 or 45 days following its receipt of the written designation of the
Borrowing Base in accordance with Section 7.1.13, as applicable; provided that all payments required to be made pursuant to this
sentence must be made on or prior to Disqualifying Condition Termination.

 

(e)          Immediately
upon any acceleration of the Stated Maturity Date of any Loans pursuant to Section 8.2 or Section 8.3, the Borrower shall repay
all the Loans, unless, pursuant to Section 8.3, only a portion of all the Loans is so accelerated (in which case the portion so
accelerated shall be so repaid). Immediately upon any acceleration of the Stated Maturity Date of any EPL Loans pursuant to Section
8.2 or Section 8.3, EPL shall repay all the EPL Loans, unless, pursuant to Section 8.3, only a portion of all the EPL Loans is
so accelerated (in which case the portion so accelerated shall be so repaid).

 

    	 	-30-	-EXXI Eighth Amendment-

    	 

    

 

Each prepayment
of any Loans made pursuant to this Section shall be without premium or penalty, except as may be required by Section 4.4, and shall
be accompanied by all interest then accrued and unpaid on the principal so prepaid.

 

Section 3.1.2    Application.
Each prepayment or repayment of the principal of the Loans shall be applied, to the extent of such prepayment or repayment, first,
to the principal amount thereof being maintained as Base Rate Loans and, if applicable, the Swing Line Loans, and second, subject
to the terms of Section 4.4, to the principal amount thereof being maintained as LIBO Rate Loans, in each case in a manner that
minimizes the amount of any payments required to be made by the Borrower pursuant to Section 4.4.

 

(ii)         Section
3.2 of the Credit Agreement is hereby amended by deleting both occurrences of the phrase “the Borrower” and inserting
in place thereof the phrase “the Borrower or EPL, as applicable,”.

 

(jj)         Section
3.3 of the Credit Agreement is hereby amended by deleting the phrase “The Borrower agrees to pay” from the lead-in
paragraph to such Section 3.1 and inserting in place thereof the phrase “The Borrower and EPL agree to pay”.

 

(kk)         Section
3.3.1 of the Credit Agreement is hereby amended by (x) deleting the phrase “the Borrowing Base” and inserting in place
thereof the phrase “an amount equal to the Available Borrower Borrowing Base” and (y) deleting the final sentence
of such Section 3.3.1 and inserting in place thereof the following two sentences:

 

The Borrower
and EPL agree to pay to the Administrative Agent for the account of each Lender, for the period (including any portion thereof
when any of its Commitments are suspended by reason of EPL’s inability to satisfy any condition of Article V) commencing
on the Eighth Amendment Effective Date and continuing through the EPL Loan Commitment Termination Date, a commitment fee in an
amount equal to the Applicable Commitment Fee Margin, in each case on such Lender’s Percentage of the average daily unused
portion of the EPL Borrowing Base. All commitment fees payable pursuant to this Section shall be calculated on a year comprised
of 360 days and payable by the Borrower (or the Borrower and EPL, as applicable) in arrears on the Effective Date and thereafter
on each Quarterly Payment Date, commencing with the first Quarterly Payment Date following the Effective Date, and on the Loan
Commitment Termination Date or the EPL Loan Commitment Termination Date, as applicable.

 

(ll)         Section
3.3.3 of the Credit Agreement is hereby amended by (x) deleting the phrase “the amount of the Borrowing Base for the Closing
Date specified in Section 2.8.1” and inserting in place thereof the phrase “the amount of the Borrowing Base on
the Eighth Amendment Effective Date specified in Section 2.8.1” and (y) inserting between the word “hereunder”
and the final period of such Section 3.3.3 the following parenthetical “(and the Borrower shall not have any obligation to
pay any fee pursuant to this Section 3.3.3 in respect of any amount of increase in the Borrowing Base that is not in excess of
such Base Amount as previously so increased)”.

 

    	 	-31-	-EXXI Eighth Amendment-

    	 

    

 

(mm)         Section
4.1 of the Credit Agreement is hereby amended by deleting the phrase “binding on the Borrower)” and inserting in place
thereof the phrase “binding on the Borrower and EPL)”.

 

(nn)         Section
4.3 of the Credit Agreement is hereby amended by (x) deleting the phrase “The Borrower agrees to reimburse” and inserting
in place thereof the phrase “The Borrower, and if applicable, EPL each agrees to reimburse” and (y) deleting the phrase
“conclusive and binding on the Borrower” and inserting in place thereof the phrase “conclusive and binding on
the Obligors”.

 

(oo)         Section
4.4(a) of the Credit Agreement is hereby amended by deleting the cross-reference “Article III” and inserting in place
thereof the cross-reference “Article 3”.

 

(pp)         Section
4.4(e) of the Credit Agreement is hereby amended by inserting “or EPL Loans” immediately following “Revolving
Loans”.

 

(qq)         Section
4.4 of the Credit Agreement is hereby further amended by (x) inserting “and, if applicable, EPL” immediately following
the first two occurrences of the defined term “Borrower” and (y) deleting the third occurrence of the defined term
“Borrower” and inserting in place thereof the defined term “Obligors”.

 

(rr)         Section
4.5 of the Credit Agreement is hereby amended by (x) inserting “or, if applicable, EPL” immediately following
the first two occurrences of the defined term “Borrower” and (y) deleting the third occurrence of the defined term
“Borrower” and inserting in place thereof the defined term “Obligors”.

 

(ss)         Clauses
(i) and (ii) of Section 4.6(a) of the Credit Agreement are hereby amended by inserting “, EPL” immediately following
both occurrences of the defined term “Borrower” in such clauses.

 

(tt)         Section
4.6(b) of the Credit Agreement is hereby amended by inserting “and, if applicable, EPL,” immediately following “In
addition, the Borrower”.

 

(uu)         Section
4.6(c) of the Credit Agreement is hereby amended by (x) inserting “or EPL” immediately following the first occurrence
of the term “Borrower” and (y) inserting “or EPL, as applicable,” immediately following the second
occurrence of the term “Borrower”.

 

(vv)         Section
4.6(d) of the Credit Agreement is hereby amended by (x) inserting “and EPL” immediately following the first two occurrences
of the term “Borrower”, (y) inserting “or EPL, as applicable,” immediately following the third occurrence
of the defined term “Borrower” and (z) inserting “, EPL” immediately following the fourth and fifth occurrences
of the term “Borrower”.

 

    	 	-32-	-EXXI Eighth Amendment-

    	 

    

 

(ww)       Section
4.6(e) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(e)          Each
Non-U.S. Lender making Loans to the Borrower or EPL, on or prior to the date on which such Non-U.S. Lender becomes a Lender hereunder
(and from time to time thereafter upon the request of the Borrower or the Administrative Agent, but only for so long as such non-U.S.
Lender is legally entitled to do so), shall deliver to the Borrower and, if applicable, EPL and the Administrative Agent either
(i) two duly completed copies of either (x) Internal Revenue Service Form W-8BEN or W-8IMY claiming eligibility of the Non-U.S.
Lender for benefits of an income tax treaty to which the United States is a party or (y) Internal Revenue Service Form W 8ECI,
or in either case an applicable successor form; (ii) in the case of a Non-U.S. Lender that is not legally entitled to deliver either
form listed in clause (e)(i), (x) a certificate to the effect that such Non-U.S. Lender is not (A) a “bank” within
the meaning of Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrower or EPL within the meaning
of Section 881(c)(3)(B) of the Code, or (C) a controlled foreign corporation receiving interest from a related person within the
meaning of Section 881(c)(3)(C) of the Code (referred to as an “Exemption Certificate”) and (y) two duly completed
copies of Internal Revenue Service Form W-8BEN, W-8EXP, W-8ECI or W-8IMY, as appropriate, or applicable successor form, or (iii)
in the case of a Lender that is not a Non-U.S. Lender, two duly completed copies of Internal Revenue Service form W-9 or applicable
successor form. Each Lender, Eligible Assignee or Participant, as the case may be, agrees to promptly notify the Borrower (and
EPL, in regards to any change prior to the Disqualifying Condition Termination) and the Administrative Agent of any change in circumstances
that would modify or render invalid any claimed exemption or reduction. In addition, each Lender, Eligible Assignee or Participant,
as the case may be, shall timely deliver to the Borrower (and EPL, in regards to any delivery prior to the Disqualifying Condition
Termination) and the Administrative Agent two further copies of such Form W-8BEN, W-8EXP, W-8IMY, W-8ECI or W-9 or successor forms
on or before the date that any previously executed form expires or becomes obsolete, or after the occurrence of any event requiring
a change in the most recent form delivered by such Person to the Borrower (and EPL, as applicable). In addition to the foregoing,
each Non-U.S. Lender shall deliver to the Administrative Agent and the Borrower (and EPL, in regards to any delivery prior to the
Disqualifying Condition Termination) any documents as shall be prescribed by Applicable Law or otherwise reasonably requested to
demonstrate that payments to such Lender under this Agreement and the other Loan Documents are exempt from any United States federal
withholding tax imposed pursuant to FATCA, to the extent applicable. Notwithstanding anything to the contrary, none of the Borrower,
EPL or the Administrative Agent shall be required to pay additional amounts or indemnify any Lender with respect to any withholding
taxes imposed by reason of FATCA.

 

    	 	-33-	-EXXI Eighth Amendment-

    	 

    

 

(xx)        Section
4.6(f) of the Credit Agreement is hereby amended by (w) deleting the phrase “The Borrower shall not be obligated to pay”
and inserting in place thereof the phrase “Neither the Borrower nor EPL shall be obligated to pay”, (x) inserting
“or EPL, as applicable,” immediately following the second occurrence of the defined term “Borrower” (which
for the avoidance of doubt appears in the phrase “deliver to the Borrower”), (y) inserting “and EPL” immediately
following the third occurrence of the defined term “Borrower” (which for the avoidance of doubt appears in the phrase
“; provided that, the Borrower”) and (z) inserting “or EPL” immediately following the final
two occurrences of the defined term “Borrower” (which for the avoidance of doubt appear in subclauses (ii) and (iii)
of such Section 4.6(f)).

 

(yy)         Section 4.6(g)
of the Credit Agreement is hereby amended by inserting “or EPL, as applicable,” immediately following “If any
Lender makes a demand upon the Borrower”.

 

(zz)         Section 4.7(a)
of the Credit Agreement is hereby amended by (x) inserting “or EPL” immediately following the first occurrence of the
defined term “Borrower”, (y) inserting “or EPL, as applicable,” after the second and third occurrences
of the defined term “Borrower” and (z) deleting “the Federal Funds Rate)” and inserting in place thereof
the phrase “the Federal Funds Rate or the Reference LIBO Rate)”.

 

(aaa)        Section 4.7(b)
of the Credit Agreement is hereby amended by (x) deleting the phrase “under Letter of Credit Outstandings and the net
credit exposure owing to Secured Parties under Hedging Agreements” appearing in subclause (iii) and inserting in place thereof
in such subclause (iii) the phrase “under Letter of Credit Outstandings and amounts owing to Secured Parties in respect of
early termination of Hedging Agreements”, (y) deleting the phrase “such surplus.” from subclause (v) and
inserting in place thereof in such subclause (v) the phrase “such surplus; provided that notwithstanding the foregoing,
until Disqualifying Condition Termination, no proceeds of EPL Collateral shall be applied pursuant to this clause (b).” and
(z) deleting the final sentence of Section 4.7(b) (which for the avoidance of doubt began with the phrase “For purposes of
clause (b)(iii), the “net credit exposure”...”).

 

(bbb)        Section 4.7
of the Credit Agreement is hereby further amended by inserting, immediately following Section 4.7(b), the following new Section
4.7(c):

 

    	 	-34-	-EXXI Eighth Amendment-

    	 

    

 

(c)          Notwithstanding
the foregoing clause (b), until Disqualifying Condition Termination, after the occurrence and during the continuance of an Event
of Default, the Administrative Agent may, and upon direction from the Required Lenders, shall, apply all amounts received under
the Loan Documents (including from the proceeds of collateral securing the EPL Obligations) or under Applicable Law in respect
of the EPL Collateral upon receipt thereof to the EPL Obligations as follows: (i) first, to the payment of all EPL Obligations
in respect of fees, expense reimbursements, indemnities and other amounts owing to the Administrative Agent, in its capacity as
the Administrative Agent (including the fees and expenses of counsel to the Administrative Agent), (ii) second, after payment in
full in cash of the amounts specified in clause (c)(i), to the ratable payment of all interest (including interest accruing (or
which would accrue) after the commencement of a proceeding in bankruptcy, insolvency or similar law, whether or not permitted as
a claim under such law) and fees owing by EPL under the Loan Documents, and all costs and expenses owing by EPL to the Secured
Parties pursuant to the terms of the Loan Documents, until paid in full in cash, (iii) third, after payment in full in cash of
the amounts specified in clauses (c)(i) and (c)(ii), to the ratable payment of the principal amount of the EPL Loans then outstanding,
and amounts owing to Secured Parties in respect of early termination of Hedging Agreements with EPL and its Subsidiaries, (iv)
fourth, after payment in full in cash of the amounts specified in clauses (c)(i) through (c)(iii), to the ratable payment of all
other Obligations owing by EPL to the Secured Parties, and (v) fifth, after payment in full in cash of the amounts specified
in clauses (c)(i) through (c)(iv), and following the Termination Date, to each applicable Obligor or any other Person lawfully
entitled to receive such surplus.

 

(ccc)        Section 4.8
of the Credit Agreement is hereby amended by (x) deleting the phrase “The Borrower agrees” and inserting in place
thereof the phrase “The Borrower and, if applicable, EPL, each agrees”, (y) deleting the phrase “direct creditor
of the Borrower in the amount of such participation” and inserting in place thereof the phrase “direct creditor of
the Borrower or, if applicable, EPL, in the amount of such participation” and (z) inserting the following sentence as the
final sentence of such Section 4.8: “Notwithstanding anything in the foregoing to the contrary, prior to Disqualifying Condition
Termination, no Secured Party shall apply any payment or recovery from any EPL Obligors against any Obligations of the Borrower
and its Subsidiaries (other than the EPL Obligors) or be entitled to a sharing of such payments or recoveries from any EPL Obligors
in respect of any Obligations (other than the EPL Obligations) pursuant to the terms hereof.”.

 

(ddd)        Section 4.9
of the Credit Agreement is hereby amended by (x) deleting the phrase “the Borrower hereby grants” and inserting
in place thereof the phrase “the Borrower and EPL each hereby grants”, (y) deleting the phrase “moneys of the
Borrower then or thereafter maintained” and inserting in place thereof the phrase “moneys of the Borrower and EPL then
or thereafter maintained” and (z) inserting the following sentence as the final sentence of such Section 4.9: “Notwithstanding
anything in the foregoing to the contrary, prior to Disqualifying Condition Termination, no Secured Party shall apply any balances,
credits, deposits, accounts or moneys of any EPL Obligors against any Obligations of the Borrower and its Subsidiaries (other than
the EPL Obligors) or be entitled to application of such balances, credits, deposits, accounts or moneys of any EPL Obligors in
respect of any Obligations (other than the EPL Obligations) pursuant to the terms hereof.”

 

(eee)        Section
5.2.1(a) of the Credit Agreement is hereby amended by inserting “(except for representations and warranties which are qualified
by a materiality qualifier, which shall be true and correct in all respects)” immediately following the phrase “shall
be true and correct in all material respects”, which appears in the parenthetical in such Section 5.2.1(a).

 

    	 	-35-	-EXXI Eighth Amendment-

    	 

    

 

(fff)        Section 5.2.1(d)
of the Credit Agreement is hereby amended by inserting “and, if such Credit Extension is of an EPL Loan, EPL is permitted
under the EPL Senior Unsecured Debt Documents to incur such Credit Extension” immediately following the phrase “the
Permitted Unsecured Debt Documents to incur such Credit Extension”.

 

(ggg)        Section 5.2.2
of the Credit Agreement is hereby amended by (x) inserting “or EPL Loans” immediately following “Revolving Loans”,
(y) inserting “or EPL, as the case may be,” immediately following the first occurrence of the defined term “Borrower”
and (z) inserting “and, if the Credit Extension is an EPL Loan, by EPL” immediately following the second occurrence
of the defined term “Borrower”.

 

(hhh)        Section 6.6
of the Credit Agreement is hereby amended by deleting the phrase “since June 30, 2010.” and inserting in place thereof
the phrase “June 30, 2010, or such more recent date for which the financial information required under Section 7.1.1(b)
shall have been provided by the Borrower.”.

 

(iii)        Section
6.9(d) of the Credit Agreement is hereby amended by deleting the phrase “which Borrower is diligently pursuing” and
inserting in place thereof the phrase “which Borrower or an applicable Subsidiary is diligently pursuing”.

 

(jjj)        Section
6.24 of the Credit Agreement is hereby amended by inserting “or, if applicable, EPL,” immediately following “certificate
of the Borrower”.

 

(kkk)        Section
6.26 of the Credit Agreement is hereby amended by inserting “and the EPL Obligations” immediately following “The
Obligations”.

 

(lll)        Section
7.1.1(i) of the Credit Agreement is hereby amended by deleting the phrase “the 2010 Notes Indenture, the 2011 Notes Indenture,
the 2013 Notes Indenture” and inserting in place thereof “any Senior Unsecured Debt”.

 

(mmm)        Section
7.1.1(m) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(m)          concurrently
with the delivery of any Reserve Report, the Borrower shall provide to the Administrative Agent and each Lender a certificate,
signed by an Authorized Officer of the Borrower, certifying that, to the best of his knowledge and in all material respects: (i)
the information contained in such Reserve Report and any other information delivered in connection therewith is true and correct,
(ii) the Borrower and its Subsidiaries, as applicable, own Good Title to the Oil and Gas Properties evaluated in such Reserve Report
(in this Section called the “Covered Properties”) and are free of all Liens except for Liens permitted by Section
7.2.3, (iii) except as set forth on an exhibit to the certificate, on a net basis there are no gas imbalances, take or pay or other
prepayments with respect to its Oil and Gas Properties evaluated in such Engineering Report (other than those permitted by the
Security Documents) that would require Borrower, EPL or any Subsidiary, as applicable, to deliver hydrocarbons produced from such
Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor, (iv) none of the Covered
Properties has been Disposed since the date of the last Borrowing Base or, as applicable, EPL Borrowing Base determination, except
as set forth on an exhibit to the certificate, which certificate shall list all of such properties Disposed and in such detail
as reasonably required by the Administrative Agent, (v) set forth on a schedule attached to the certificate is the present discounted
value of all Covered Properties that are part of the Oil and Gas Properties that are encumbered by the Mortgages (the “Mortgaged
Properties”) and, prior to Disqualifying Condition Termination, designating which of the Covered Properties are encumbered
by the EPL Mortgages (the “EPL Mortgaged Properties”), (vi) Oil and Gas Properties that comprise at least eighty-five
percent (85%) of the total value of the Proved Reserves that are included within the Covered Properties are part of the Mortgaged
Properties and, prior to Disqualifying Condition Termination, the EPL Mortgaged Properties, as applicable, and (vii) Oil and Gas
Properties that comprise at least eighty-five percent (85%) of the total value of the Proved Developed Producing Reserves that
are included within the Covered Properties are part of the Mortgaged Properties and, prior to Disqualifying Condition Termination,
the EPL Mortgaged Properties;

 

    	 	-36-	-EXXI Eighth Amendment-

    	 

    

 

(nnn)        Section
7.1.1(p) of the Credit Agreement is hereby amended by inserting “, EPL” immediately following each occurrence of the
defined term “Borrower”.

 

(ooo)        Section
7.1.1(q) of the Credit Agreement is hereby amended by (x) inserting “(including EPL and its Subsidiaries)” immediately
following the phrase “Borrower or its Subsidiaries” and (y) deleting the phrase “(ii) a report, in form
and substance reasonably acceptable to the Administrative Agent and regarding the ongoing drilling programs of the Borrower and
it Subsidiaries, which report will specify (A) the wells drilled by the Borrower and its Subsidiaries on their Oil and Gas Properties
during such recently ended fiscal quarter,” and inserting in place thereof the phrase “(ii) a report, in form and substance
reasonably acceptable to the Administrative Agent, regarding the ongoing drilling programs of the Borrower and its Subsidiaries
(including EPL and its Subsidiaries), which report will specify (A) the wells drilled by the Borrower and its Subsidiaries (including,
prior to the Disqualifying Condition Termination, EPL and its Subsidiaries separately) on their Oil and Gas Properties during such
recently ended fiscal quarter,”.

 

(ppp)        Section
7.1.1(s) of the Credit Agreement is hereby amended by (x) deleting the phrase “the Borrower and each Subsidiary,”
and inserting in place thereof the phrase “the Borrower and each Subsidiary (including EPL and its Subsidiaries)” and
(y) deleting the “and” at the end of such Section 7.1.1(s).

 

(qqq)        Section
7.1.1(t) of the Credit Agreement is hereby amended by deleting the phrase “reasonably detailed calculations confirming that
the Borrower is in compliance with Section 4.09 of each of the 2010 Notes Indenture and the 2011 Notes Indenture, and the 2013
Notes Indenture or with the corresponding provision of any Permitted Unsecured Debt Document);” and inserting in place thereof
the phrase “reasonably detailed calculations confirming that the Borrower is in compliance with Section 4.09 of each of the
2010 Notes Indenture, the 2011 Notes Indenture, the 2013 Notes Indenture, the 2014 Notes Indenture, the 2011 EPL Notes Indenture,
the 2012 EPL Notes Indenture and with the corresponding provision of any Permitted Unsecured Debt Document);”.

 

    	 	-37-	-EXXI Eighth Amendment-

    	 

    

 

(rrr)        Section 7.1.1
of the Credit Agreement is hereby further amended by inserting, immediately following Section 7.1.1(t), the following new Section
7.1.1(u) and Section 7.1.1(v):

 

(u)          in
the event that Disqualifying Condition Termination shall not have occurred prior to June 30, 2015, as soon as available and in
any event within 60 days after the end of each of the first three Fiscal Quarters of each Fiscal Year, commencing with the Fiscal
Quarter ending June 30, 2015, an unaudited consolidated balance sheet of EPL and its Subsidiaries as of the end of such Fiscal
Quarter and consolidated statements of income and cash flow of EPL and its Subsidiaries for such Fiscal Quarter and for the period
commencing at the end of the previous Fiscal Year and ending with the end of such Fiscal Quarter, and including (in each case),
in comparative form the figures for the corresponding Fiscal Quarter in, and year to date portion of, the immediately preceding
Fiscal Year, in each case, certified as complete and correct by the chief financial or accounting Authorized Officer of EPL (subject
to normal year-end audit adjustments); and

 

(v)         in
the event that Disqualifying Condition Termination shall not have occurred prior to December 31, 2015, as soon as available and
in any event within 120 days after the end of each Fiscal Year, commencing with the Fiscal Year ending December 31, 2015, a copy
of the consolidated balance sheet of EPL and its Subsidiaries, and the related consolidated statements of income and cash flow
of EPL and its Subsidiaries for such Fiscal Year, setting forth in comparative form the figures for the immediately preceding Fiscal
Year, audited (without any Impermissible Qualification) by independent public accountants reasonably acceptable to the Administrative
Agent, stating that, in performing the examination necessary to deliver the audited financial statements of EPL, no knowledge was
obtained of any Event of Default.

 

(sss)        Section 7.1.4
of the Credit Agreement is hereby amended by amending and restating the final paragraph of such Section 7.1.4 (which, for the avoidance
of doubt begins with the phrase “If no Borrowing Base Deficiency exists”):

 

    	 	-38-	-EXXI Eighth Amendment-

    	 

    

 

If no Borrowing
Base Deficiency or EPL Borrowing Base Deficiency exists and no Event of Default has occurred and is continuing, (a) the Borrower
and the Administrative Agent will cause all proceeds of insurance in connection with a Casualty Event to be deposited into a Deposit
Account or Securities Account maintained at the Administrative Agent or as to which a Control Agreement has been executed in favor
of the Administrative Agent granting “control” to the Administrative Agent under the UCC and (b) the Borrower may use
such insurance proceeds to, at its option, repair or rebuild the affected property or pay or prepay any outstanding Loans or other
Obligations or for any other lawful purpose not otherwise restricted by the Loan Documents. If a Borrowing Base Deficiency exists,
such insurance proceeds deriving from Collateral (other than EPL Collateral, at all times prior to Disqualifying Condition Termination)
shall be used to cure such Borrowing Base Deficiency by prepaying the Loans and/or Cash Collateralizing the Letters of Credit to
the extent of the deficiency. If an EPL Borrowing Base Deficiency exists, such insurance proceeds deriving from EPL Collateral
shall be used to cure such EPL Borrowing Base Deficiency by prepaying the EPL Loans to the extent of the deficiency. After the
occurrence and during the continuance of an Event of Default, the Administrative Agent may, and upon direction from the Required
Lenders, shall, apply all insurance proceeds upon receipt thereof to the Obligations in accordance with Section 4.7. Notwithstanding
the foregoing, any such proceeds received prior to Disqualifying Condition Termination in respect of EPL Collateral shall only
be used to cure an EPL Borrowing Base Deficiency or to pay the EPL Obligations in accordance with Section 4.7.

 

(ttt)        Section 7.1.7
of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

Section 7.1.7   Use
of Proceeds. The Borrower has and will and EPL has and will apply the proceeds of the Credit Extensions as follows:

 

(a)          in
the case of Revolving Loans, for working capital and general corporate purposes of the Borrower and the Subsidiary Guarantors,
including acquisitions and making Investments as permitted by Section 7.2.5 and Restricted Payments as permitted by Section 7.2.6
and in the case of EPL Loans, for working capital and general corporate purposes of EPL and its Subsidiaries that are Guarantors,
to repay Indebtedness of EPL and its Subsidiaries and other obligations arising in connection with the EPL Acquisition and to pay
consideration for the purchase by EPL and/or its Subsidiaries of certain Oil and Gas Properties from EXXI GOM to be made contemporaneously
with the consummation of the EPL Acquisition;

 

(b)          for
issuing Letters of Credit for the account of the Borrower and its Subsidiaries; and

 

(c)          to
pay transaction costs in connection with this Agreement and the other Loan Documents and the EPL Acquisition.

 

(uuu)        Section 7.1.8
of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

    	 	-39-	-EXXI Eighth Amendment-

    	 

    

 

Section 7.1.8   Future
Guarantors, Security, etc. The Borrower will, and will cause each of its Subsidiaries to, execute any documents, Filing Statements,
agreements and instruments, and take all further action (including filing Mortgages and Mortgage Supplements) that may be required
under Applicable Law, or that the Administrative Agent may reasonably request, in order to effectuate the transactions contemplated
by the Loan Documents and in order to grant, preserve, protect and perfect the validity and first priority (subject to Liens permitted
by Section 7.2.3) of the Liens created or intended to be created by the Loan Documents. The Borrower will cause any subsequently
acquired or organized Subsidiary to execute, within 10 Business Days of its acquisition or organization, a supplement (in form
and substance satisfactory to the Administrative Agent) to the Subsidiary Guaranty and each other applicable Loan Document in favor
of the Secured Parties. In addition, from time to time, the Borrower will, at its cost and expense, promptly secure the Obligations
and the EPL Obligations by pledging or creating, or causing to be pledged or created, perfected Liens with respect to such of its
assets and properties as the Administrative Agent or the Required Lenders shall designate, it being agreed that it is the intent
of the parties that (a) the Obligations shall be secured by, among other things, substantially all the assets of the Borrower and
its U.S. Subsidiaries (including real and personal property acquired subsequent to the Effective Date), except that prior to Disqualifying
Condition Termination the assets of the EPL Obligors shall not secure the Obligations of the Borrower and its Subsidiaries (other
than the EPL Obligations) and (b) the EPL Obligations shall be secured by, among other things, substantially all of the assets
of the Borrower and its U.S. Subsidiaries (including real and personal property acquired subsequent to the Eighth Amendment Effective
Date), including the EPL Obligors. Such Liens will be created under the Loan Documents in form and substance satisfactory to the
Administrative Agent, and the Borrower and, if applicable, EPL shall deliver or cause to be delivered to the Administrative Agent
all such instruments and documents (including legal opinions, title insurance policies and lien searches) as the Administrative
Agent shall reasonably request to evidence compliance with this Section. Without limiting the foregoing, the Borrower for itself
and on behalf of its Subsidiaries agrees that the Administrative Agent is hereby authorized to file, at such times as the Administrative
Agent deems necessary or desirable, Filing Statements naming the Borrower or any of its Subsidiaries as debtor and describing the
collateral as “all personal property” or “all assets” of such debtor whether now or hereafter acquired,
or words of like import. Notwithstanding the foregoing provisions of this Section 7.1.8 or the provisions of any other Loan Document,
the Borrower shall not be obligated to pledge or grant a security interest or other Lien in favor of the Administrative Agent or
the other Secured Parties on the Borrower’s Investments made as permitted under Section 7.2.5(m) hereof. Notwithstanding
the foregoing, until Disqualifying Condition Termination, EPL and its Subsidiaries shall only be obligated to guaranty and secure
the EPL Obligations pursuant to the provisions of this Section 7.1.8. For the avoidance of doubt, upon Disqualifying Condition
Termination EPL and its Subsidiaries immediately shall be deemed automatically to guaranty and secure all Obligations as provided
in this Section 7.1.8 (and, without limitation of the foregoing terms of this Section 7.1.8, from and after such time, the Borrower
will, and will cause each of the EPL Obligors to, execute any documents, Filing Statements, agreements and instruments, and take
all further action that the Administrative Agent may reasonably request, in order to effectuate such guaranty and security arrangements
for the Obligations.

 

    	 	-40-	-EXXI Eighth Amendment-

    	 

    

 

(vvv)        Section 7.1.10
of the Credit Agreement is hereby amended by (x) deleting the phrase “the Borrower maintained with the Administrative Agent
(the “Proceeds Account”).” and inserting in place thereof the phrase “the Borrower or, if prior
to Disqualifying Condition Termination and such Production Proceeds are in respect of EPL Collateral, an account of EPL maintained
with the Administrative Agent (as applicable, a “Proceeds Account”)”, (y) deleting the phrase “the
Proceeds Account” and inserting in place thereof the phrase “each Proceeds Account” and (z) inserting the following
new sentence as the final sentence of such Section 7.1.10 “EPL hereby grants to the Administrative Agent for the benefit
of the Secured Parties, subject to the prior assignment in favor of the Administrative Agent of such Production and Production
Proceeds, a security interest in each Proceeds Account and all proceeds thereof to secure the EPL Obligations and, after Disqualifying
Condition Termination, the Obligations.”

 

(www)        Section 7.1.11
of the Credit Agreement is hereby amended by (x) inserting the parenthetical “(excluding, prior to Disqualifying Condition
Termination, Subsidiaries that are EPL Obligors)” immediately after both occurrences of the defined term “Subsidiaries”
and (y) inserting the following three sentences as the final three sentences of such Section 7.1.11: “Until Disqualifying
Condition Termination, EPL shall cause the EPL Mortgaged Properties to constitute at least eighty-five percent (85%) of the total
value of the Proved Reserves of EPL and its Subsidiaries and at least eighty-five percent (85%) of the total value of the Proved
Developed Producing Reserves of EPL and its Subsidiaries (in this Section called the “Required EPL Percentages”). Within
thirty (30) days following each determination or redetermination of the EPL Borrowing Base, EPL will execute and deliver documentation
in form and substance satisfactory to the Administrative Agent, granting to the Administrative Agent first perfected Liens on Oil
and Gas properties that are not then part of the EPL Mortgaged Properties, sufficient to cause the EPL Mortgaged Properties to
include the Required EPL Percentages. In addition, EPL will furnish to the Administrative Agent title due diligence in form and
substance satisfactory to the Administrative Agent and will furnish all other documents and information relating to such properties
as the Administrative Agent may reasonably request.”

 

(xxx)        Section 7.1.12
of the Credit Agreement is hereby amended by (w) inserting “and shall not permit any of its Subsidiaries to,”
immediately after “The Borrower shall not”, (x) inserting “or set forth on Schedule IV to the Eighth Amendment”
immediately after the cross-reference “Section 7.1.1(s)(i)”, (y) deleting the phrase “set forth in Section
7.2.20.” and inserting in place thereof the phrase “set forth in Section 7.2.20 and, if applicable, Section 7.2.22.”
and (z) deleting the final sentence of such Section 7.1.12 and inserting in place thereof the following two sentences: “As
of the date of any determination or redetermination of the Borrowing Base, the Borrower and its Subsidiaries shall maintain hedging
positions that are acceptable to the Administrative Agent, acting reasonably. Until Disqualifying Condition Termination, as of
the date of any determination or redetermination of the EPL Borrowing Base, EPL and its Subsidiaries shall maintain hedging positions
that are acceptable to the Administrative Agent, acting reasonably.”

 

    	 	-41-	-EXXI Eighth Amendment-

    	 

    

 

(yyy)        Section 7.1.13
of the Credit Agreement is hereby amended by (x) inserting “or EPL, as applicable,” immediately after the first
five occurrences of the defined term “Borrower”, (y) inserting “or, if applicable, EPL Mortgaged Properties”
immediately after the phrase “substitute acceptable Mortgaged properties” and (z) deleting the final sentence of such
Section 7.1.13 and inserting in place thereof the following two sentences: “To the extent that the Administrative Agent or
the Required Lenders are not satisfied with title to any EPL Mortgaged Property after the 90-day period has elapsed, the Administrative
Agent may send a notice to the Borrower, EPL and the Lenders that the then outstanding Borrowing Base and the EPL Borrowing Base
shall be reduced by amounts as determined by the Required Lenders to cause EPL to be in compliance with the requirement to provide
acceptable title information to the Oil and Gas Properties. This new Borrowing Base or EPL Borrowing Base, as the case may be,
shall become effective immediately after receipt of such notice.”

 

(zzz)        Section 7.1.15
of the Credit Agreement is hereby amended by deleting the final three sentences of such Section 7.1.15 (which set of three sentences,
for the avoidance of doubt, begins with the phrase “The Borrower hereby authorizes”) and inserting in place thereof
the following three sentences: “The Borrower and EPL each hereby authorizes the Administrative Agent to file one or more
financing or continuation statements, and amendments thereto, relative to all or any part of any Mortgaged Property or any EPL
Mortgaged Property, as applicable, or any part thereof or any other collateral without the signature of the Borrower, EPL or any
other Guarantor where permitted by law. A carbon, photographic or other reproduction of the Security Documents or any financing
statement covering the Mortgaged Property or the EPL Mortgaged Property, as applicable, or any part thereof or any other collateral
shall be sufficient as a financing statement where permitted by law. The Borrower shall notify the Administrative Agent of any
name change of any of the Borrower’s Subsidiaries (including EPL and its Subsidiaries) in accordance with the Borrower Pledge
and Security Agreement.”

 

(aaaa)      Section 7.1.16
of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

Section 7.1.16   Minimum
Availability Under Borrowing Base.

 

(a)          During
each period from July 1st to October 31st of each calendar year, the Borrower will not permit the aggregate Credit Exposures of
all Lenders to exceed an amount equal to (i) the lesser of the Aggregate Available Commitment or an amount equal to the Available
Borrower Borrowing Base, minus (ii) $50,000,000; provided, however, that in the event that during such calendar year the Borrower’s
or any of its Subsidiary’s Oil and Gas Properties shall suffer hurricane damage, the Administrative Agent, upon the request
of the Borrower, is authorized to reduce such $50,000,000 for such calendar year to an amount (not less than zero) acceptable to
the Administrative Agent in its sole discretion.

 

    	 	-42-	-EXXI Eighth Amendment-

    	 

    

 

(b)          In
addition to the availability required to be maintained under clause (a), if the Borrower has at any time Permitted Unsecured Indebtedness
issued after April 1, 2014 and outstanding pursuant to Section 7.2.2(j), the Borrower will be required to further maintain availability
hereunder in an amount equal to 25% of the amount of such Permitted Unsecured Indebtedness (and thus will not permit the aggregate
Credit Exposures of all Lenders to exceed an amount equal to (i) the lesser of (x) the Aggregate Available Commitment or the (y)
the Available Borrower Borrowing Base then in effect, minus (ii) the amount of availability then required to be maintained in accordance
with clause (a) of this Section 7.1.16, minus (iii) an amount equal to 25% of such Permitted Unsecured Indebtedness then issued
and outstanding pursuant to Section 7.2.2(j)); provided, however, that notwithstanding any other provisions of this Agreement,
the availability requirement and borrowing limitation set forth in this clause (b) may not be waived, amended or modified without
the consent of all of the Lenders.

 

(bbbb)      Section 7.2.1
of the Credit Agreement is hereby amended by (x) deleting the phrase “except those business activities engaged in on the
date of this Agreement” and inserting in place thereof the phrase “except those business activities in which it has
historically engaged” and (y) deleting the phrase “and to which the laws of the State of Texas or Louisiana are applicable”.

 

(cccc)      Section 7.2.2
of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

Section 7.2.2    Indebtedness.
The Borrower will not, and will not permit any of its Subsidiaries to, create, incur, assume or permit to exist any Indebtedness,
except:

 

(a)          (i)
the Obligations and (ii) Hedging Obligations incurred pursuant to this Agreement;

 

(b)          the
2010 Debt, the 2011 Debt, the 2013 Debt, the 2014 Debt, the 2011 EPL Debt, the 2012 EPL Debt and the Refinancing of all or any
portion of such Indebtedness (including amounts relating to fees and premiums incurred in connection with such Refinancing); provided,
however, that such Refinancing Indebtedness does not have a maturity date that is prior to the date that is six (6) months after
the Stated Maturity Date;

 

(c)          Indebtedness
existing as of the Effective Date that is identified in Item 7.2.2(c) of the Disclosure Schedule, and Refinancing of such Indebtedness
(as such amount has been reduced following the Effective Date);

 

(d)          unsecured
Indebtedness (i) incurred in the ordinary course of business of the Borrower and its Subsidiaries (including open accounts extended
by suppliers on normal trade terms in connection with purchases of goods and services (including insurance premium payables in
the ordinary course) that are not overdue for a period of more than 90 days or, if overdue for more than 90 days, as to which a
dispute exists and adequate reserves in conformity with GAAP have been established on the books of the Borrower or such Subsidiary)
and (ii) in respect of performance, surety or appeal bonds or similar assurance undertakings provided in the ordinary course of
business, but excluding (in each case), funded Indebtedness incurred through the borrowing of money or Contingent Liabilities in
respect thereof;

 

    	 	-43-	-EXXI Eighth Amendment-

    	 

    

 

(e)          Indebtedness
(i) evidencing the deferred purchase price of newly acquired property or incurred to finance the acquisition of equipment of the
Borrower and its Subsidiaries (pursuant to purchase money mortgages or otherwise, whether owed to the seller or a third party)
used in the ordinary course of business of the Borrower and its Subsidiaries (provided that, such Indebtedness is incurred within
60 days of the acquisition of such property) and (ii) in respect of Capitalized Lease Liabilities; provided that, the aggregate
amount of all Indebtedness outstanding pursuant to this clause shall not at any time exceed $10,000,000;

 

(f)          Indebtedness
of any Subsidiary owing to the Borrower or any other Subsidiary;

 

(g)          [Intentionally
Blank];

 

(h)          Indebtedness
incurred by the Borrower and its Subsidiaries associated with bonds, surety or similar assurance obligations or undertakings required
by Applicable Law in connection with the operation of the Oil and Gas Properties;

 

(i)          Indebtedness
of a Person existing at the time such Person became a Subsidiary of the Borrower, but only if such Indebtedness was not created
or incurred in contemplation of such Person becoming a Subsidiary;

 

(j)          Indebtedness
(including, but without duplication, Contingent Liabilities of the Subsidiary Guarantors in respect thereof) of the Borrower, in
an amount not to exceed an aggregate outstanding principal amount of up to $1,000,000,000 (the “Permitted Unsecured Indebtedness”)
so long as (i) such Indebtedness remains at all times unsecured Indebtedness, (ii) such Indebtedness does not have a maturity date
that is prior to the date that is six (6) months after the Stated Maturity Date, (iii) after giving effect to the incurrence of
such Indebtedness no Default or Event of Default shall have occurred and be continuing, and (iv) after giving effect to the incurrence
of such Indebtedness the Borrower is in pro forma compliance with Section 7.2.4, and the Refinancing of all or any applicable portion
of such Indebtedness (including amounts relating to fees and premiums incurred in connection with such Refinancing); provided that,
notwithstanding the foregoing, to the extent that all or any portion of the proceeds of any such Indebtedness incurred pursuant
to this Section 7.2.2(j) is subsequently used to Refinance all or any portion of the Senior Unsecured Debt, such Indebtedness so
incurred pursuant to this Section 7.2.2(j), the proceeds of which are so used, will be deemed to constitute a Refinancing of such
applicable Senior Unsecured Debt, and to the extent so used shall no longer be Permitted Unsecured Indebtedness, including for
purposes of Section 7.1.16(b) hereof; for the avoidance of doubt, however, any Permitted Unsecured Indebtedness so Refinanced shall
remain Permitted Unsecured Indebtedness for purposes hereof, and any Indebtedness incurred pursuant to this Section 7.2.2(j) from
which the proceeds are not or have not yet been used to Refinance Senior Unsecured Debt shall remain Permitted Unsecured Indebtedness
unless or until so used;

 

    	 	-44-	-EXXI Eighth Amendment-

    	 

    

 

(k)          other
unsecured Indebtedness of the Borrower and its Subsidiaries in an aggregate amount at any time outstanding not to exceed $2,500,000;

 

provided,
that no Indebtedness otherwise permitted by clauses (c), (e), (g), (j) or (k) shall be incurred, assumed, created, Refinanced or
otherwise incurred if a Default, a Borrowing Base Deficiency or an EPL Borrowing Base Deficiency has occurred and is then continuing
or would result therefrom.

 

(dddd)      Section 7.2.3(a)
of the Credit Agreement is hereby amended by inserting “or the EPL Obligations” immediately after the defined term
“Obligations”.

 

(eeee)      Section 7.2.3(c)
of the Credit Agreement is hereby amended and restated in its entirety as follows: “Liens existing as of the Effective Date
and disclosed in Item 7.2.3(c) of the Disclosure Schedule securing Indebtedness described in clause (c) of Section 7.2.2,
and Refinancings of such Indebtedness (as such Indebtedness may have been reduced subsequent to the Effective Date);”.

 

(ffff)      Section 7.2.3(o)
of the Credit Agreement is hereby amended by deleting the phrase “or the Mortgage” and inserting in place thereof the
phrase “or the applicable Mortgage”.

 

(gggg)      Section
7.2.5(g) of the Credit Agreement is hereby amended by deleting the phrase “Investments by way of” and inserting in
place thereof the phrase “the EPL Acquisition and Investments made as part of”.

 

(hhhh)      Section
7.2.5(o) of the Credit Agreement is hereby amended by deleting the phrase “Default or Borrowing Base Deficiency” each
time such phrase occurs and inserting in place thereof the phrase “Default, Borrowing Base Deficiency or EPL Borrowing Base
Deficiency”.

 

(iiii)      Section
7.2.6(b) and Section 7.2.6(c) of the Credit Agreement are hereby amended by deleting the phrase “Default or Borrowing Base
Deficiency” each time such phrase occurs and inserting in place thereof the phrase “Default, Borrowing Base Deficiency
or EPL Borrowing Base Deficiency”.

 

    	 	-45-	-EXXI Eighth Amendment-

    	 

    

 

(jjjj)      Section
7.2.6(d) of the Credit Agreement is hereby amended by amending and restating clauses (i) and (ii) (which, for the avoidance of
doubt appear in the proviso that begins with the phrase “provided, further, however”) to read as follows: “(i)
no Default, Borrowing Base Deficiency or EPL Borrowing Base Deficiency has occurred and is continuing, or shall be caused thereby,
(ii) the sum of (A) an amount equal to (I) the lesser of the Aggregate Available Commitment and an amount equal to the Available
Borrower Borrowing Base less (II) the aggregate amount of the Credit Exposure of all Lenders plus (B) the aggregate amount of all
cash and Cash Equivalent Investments of the Borrower and its Subsidiaries (other than, prior to Disqualifying Condition Termination,
the EPL Obligors) after giving effect to such proposed Restricted Payment, shall equal or exceed the greater of $150,000,000 and
an amount equal to 15% of the lesser of the Aggregate Available Commitment and an amount equal to the Available Borrower Borrowing
Base, and”

 

(kkkk)      Section
7.2.8 of the Credit Agreement is hereby amended by deleting the phrase “for Loans”.

 

(llll)      Section
7.2.9(a) and Section 7.2.9(b) of the Credit Agreement are hereby amended by inserting the phrase “; and provided further
that, until Disqualifying Condition Termination, no Subsidiary Guarantor that is an EPL Obligor may merge with a Subsidiary Guarantor
that is not an EPL Obligor” immediately prior to the parenthesis and semicolon that conclude such Section 7.2.9(a) and immediately
prior to the semicolon that concludes such Section 7.2.9(b).

 

(mmmm)      Section
7.2.9(c) of the Credit Agreement is hereby amended by deleting the “and” at the end of such Section 7.2.9(c).

 

(nnnn)      Section
7.2.9(d) of the Credit Agreement is hereby amended by (x) deleting the phrase “Default or Borrowing Base Deficiency”
and inserting in place thereof the phrase “Default, Borrowing Base Deficiency or EPL Borrowing Base Deficiency” and
(y) inserting “; and” at the end of subclause (iii).

 

(oooo)      Section
7.2.9 of the Credit Agreement is hereby further amended by inserting the following new clause (e) immediately following Section
7.2.9(d): “(e) the Borrower and its Subsidiaries may consummate the EPL Acquisition.”

 

(pppp)      Section
7.2.10(e) of the Credit Agreement is hereby amended by amending and restating it in its entirety to read as follows: “(e)
the sale of SP 49 by EXXI GOM to EPL on terms acceptable to the Administrative Agent;”

 

(qqqq)      Section
7.2.10(f) of the Credit Agreement is hereby amended by amending and restating it in its entirety to read as follows:

 

    	 	-46-	-EXXI Eighth Amendment-

    	 

    

 

(f)          
the sale or other Disposition (including Casualty Events) of any Oil and Gas Property or any interest therein or any Subsidiary
(other than EXXI GOM) of the Borrower owning Oil and Gas Properties; provided that (i) 100% of the consideration received in respect
of such sale or other Disposition shall be cash, (ii) the consideration received in respect of such sale or other Disposition shall
be equal to or greater than the fair market value of the interests that are the subject of such sale or other Disposition (as reasonably
determined by the board of directors of the Borrower and, if requested by the Administrative Agent, the Borrower shall deliver
a certificate of an Authorized Officer of the Borrower certifying to that effect), (iii) upon a sale or other Disposition of Oil
and Gas Property or any such Subsidiary owning Oil and Gas Properties that involves Oil and Gas Properties included in the most
recently delivered Reserve Report (the “Subject Disposition”), if the consideration received for the Subject
Disposition together with the consideration for all other sales and Dispositions of Oil and Gas Properties or any such Subsidiary
owning Oil and Gas Properties that are included in the most recently delivered Reserve Report during any period between two successive
determinations or redeterminations of the Borrowing Base or, in the case of a Disposition of EPL Collateral prior to Disqualifying
Condition Termination, the EPL Borrowing Base, exceeds $5,000,000 individually or in the aggregate, then, the Borrowing Base and
the EPL Borrowing Base, if applicable, shall be reduced, effective immediately upon such Subject Disposition, by an amount equal
to the value, if any, assigned to the relevant Oil and Gas Properties in the most recently delivered Reserve Report that were sold
or otherwise Disposed in connection with such Subject Disposition, (iv) if any such sale or other Disposition is of any such Subsidiary
owning Oil and Gas Properties, such sale or other Disposition shall include all the Capital Securities of such Subsidiary, and
(v) notwithstanding Section 3.1.1(c), if a Borrowing Base Deficiency or EPL Borrowing Base Deficiency exists at the time of such
sale or Disposition or would result from the reduction of the Borrowing Base or the EPL Borrowing Base as a result of such sale
or other Disposition otherwise permitted pursuant to this clause (f), then the proceeds of such sale or other Disposition shall
be applied immediately to cure such Borrowing Base Deficiency or EPL Borrowing Base Deficiency, as the case may be, first by prepaying
the Revolving Loans or EPL Loans, as the case may be, and second by Cash Collateralizing all outstanding Letters of Credit to the
extent of such Borrowing Base Deficiency; provided that notwithstanding the foregoing, no proceeds of a Disposition of EPL Collateral
shall be applied to cure a Borrowing Base Deficiency prior to Disqualifying Condition Termination; and

 

(rrrr)      Section
7.2.11(c) of the Credit Agreement is hereby amended by deleting the phrase “the 2010 Debt Documents, the 2011 Debt Documents,
the 2013 Debt Documents,” and inserting in place thereof the phrase “Senior Unsecured Debt Documents”.

 

(ssss)      Section
7.2.12(a) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(a)          transactions
among the Obligors otherwise permitted hereunder (provided that, prior to Disqualifying Condition Termination, the Borrower and
its Subsidiaries (other than any of the EPL Obligors), on the one hand, may not enter into or cause or permit to exist any arrangement,
transaction or contract with any of the EPL Obligors, on the other hand, that would contravene, breach or result in a default under
any of the terms or provisions of the EPL Senior Unsecured Debt Documents (and, in respect of any “Affiliate Transaction”
(as defined under the EPL Senior Unsecured Debt Documents) that requires the delivery of documentation or certification to the
trustee thereunder, the Borrower shall, or shall cause EPL, to deliver to the Administrative Agent a copy of any and all such documentation
or certification));

 

    	 	-47-	-EXXI Eighth Amendment-

    	 

    

 

(tttt)      Section
7.2.12(c) of the Credit Agreement is hereby amended by deleting “G&E Expenses” and inserting in place thereof “G&A
Expenses”

 

(uuuu)      Section
7.2.12(d) of the Credit Agreement is hereby amended by deleting the “and” at the end of such Section 7.2.12(d).

 

(vvvv)      Section
7.2.12(e) of the Credit Agreement is hereby amended by inserting “; and” at the end of such Section 7.2.12(e).

 

(wwww)      Section
7.2.12 of the Credit Agreement is hereby further amended by inserting the following new clause (f) immediately following Section
7.2.12(e) (which, for the avoidance of doubt, is inserted prior to the concluding paragraph of Section 7.2.12 that is not
lettered and begins with the phrase “Notwithstanding the foregoing”):

 

(f)          prior
to Disqualifying Condition Termination, allocation by Borrower and its Subsidiaries (other than the EPL Obligors), on the one hand,
and the EPL Obligors, on the other hand, of G&A Expenses, lease operating and capital costs incurred by the EPL Obligors and
the Borrower and its Subsidiaries (other than the EPL Obligors), respectively, on behalf of or attributable to the Borrower and
it Subsidiaries (other than the EPL Obligors) or to the EPL Obligors, as the case may be, as long as such expenses and costs are
allocated and billed among such Obligors in accordance with management’s reasonable estimation of the expenses and costs
to provide the applicable good and services to such Affiliate.

 

(xxxx)      Section
7.2.13 of the Credit Agreement is hereby amended by amending and restating the final sentence thereof (which, for the avoidance
of doubt begins with the phrase “The foregoing prohibitions”) in its entirety to read as follows:

 

The foregoing
prohibitions shall not apply to restrictions contained (i) in any Loan Document, (ii) in the case of clause (a), any agreement
governing any Indebtedness permitted by clause (e) of Section 7.2.2 as to the assets financed with the proceeds of such Indebtedness,
(iii) in the case of clauses (a) and (b), the Senior Unsecured Debt Documents and/or the Permitted Unsecured Debt Documents, as
the case may be, and (iv) in the case of clause (c), the EPL Senior Unsecured Debt Documents.

 

(yyyy)      Section
7.2.15 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

Section 7.2.15    No
Prepayment of 2010 Notes, 2011 Notes, 2013 Notes or 2014 Notes. Unless (including after giving effect to such payment or prepayment)
the Borrower and its Subsidiaries are in compliance with the Prepayment Conditions, the Borrower will not, and will not permit
any of its Subsidiaries to, prior to the date that is one hundred eighty (180) days after the Stated Maturity Date:

 

    	 	-48-	-EXXI Eighth Amendment-

    	 

    

 

(a)          make
any payment or prepayment of principal of, or premium or interest on, the 2010 Debt, the 2011 Debt, the 2013 Debt or the 2014 Debt
other than: (i) with respect to interest, (A) on the stated, scheduled dates for payment of interest set forth in the applicable
Senior Unsecured Debt Documents, as the case may be, or (B) upon any Refinancing of the 2010 Debt, the 2011 Debt, the 2013 Debt
or the 2014 Debt, respectively, permitted in accordance with the terms of this Agreement, or (ii) with respect to principal, (A)
on the date of the stated maturity indicated in the 2010 Debt Documents, the 2011 Debt Documents, the 2013 Debt Documents or the
2014 Debt Documents with respect to the payment of principal on the 2010 Debt, the 2011 Debt, the 2013 Debt or the 2014 Debt, respectively,
(B) on each scheduled date for payment of principal or as required in connection with a mandatory prepayment, redemption or defeasance
of the 2010 Debt, the 2011 Debt, the 2013 Debt or the 2014 Debt under the respective Senior Unsecured Debt Documents, so long as
on the date of such payment (1) no Default, Event of Default, Borrowing Base Deficiency or EPL Borrowing Base Deficiency has occurred
and is continuing or would result therefrom and (2) the Borrower has paid any Obligations required to be paid hereunder pursuant
to the terms of this Agreement, or (C) upon any Refinancing of the 2010 Debt, the 2011 Debt, the 2013 Debt or the 2014 Debt permitted
in accordance with the terms of this Agreement;

 

(b)          redeem,
retire, purchase, defease or otherwise acquire either the 2010 Debt or the 2011 Debt, the 2013 Debt or the 2014 Debt (except as
set forth in clause (a)); or

 

(c)          make
any deposit (including the payment of amounts into a sinking fund or other similar fund) for any of the foregoing purposes other
than, in each case, in connection with a Refinancing of the 2010 Debt, the 2011 Debt, the 2013 Debt or the 2014 Debt (to the extent
of such Indebtedness being Refinanced) permitted in accordance with the terms of this Agreement.

 

(zzzz)      Section
7.2.20(a) and Section 7.2.20(b) of the Credit Agreement are hereby amended and restated in their entirety to read as follows:

 

(a) No Obligor
will enter into or maintain any Hedging Agreements with any Person other than (i) commodity Hedging Agreements with one or more
Approved Counterparties (in the case of Hedging Agreements that are puts or calls that are not executed in conjunction with any
other Hedging Agreements) or Lenders or Affiliates thereof (in the case of any other Hedging Agreements); (ii) Hedging Agreements
in respect of interest rates with an Approved Counterparty; and (iii) Hedging Agreements required under Section 7.1.12; provided
that all Hedging Agreements permitted hereunder are in accordance with this Section 7.2.20 or prior to Disqualifying Condition
Termination Section 7.2.22, and have a fixed price or floor prices acceptable to the Administrative Agent and aggregate notional
volumes acceptable to the Administrative Agent.

 

    	 	-49-	-EXXI Eighth Amendment-

    	 

    

 

(b)          With
respect to any commodity Hedging Agreements permitted hereunder, as at any date, volumes corresponding to swaps or collars (for
the absence of doubt, volumes related to puts that are not executed in conjunction with any other Hedging Agreements are excluded)
covering Oil and Gas Properties of the Obligors shall not exceed (A) during the first six calendar months period following such
date, 90% for crude oil or for natural gas, as the case may be, of the reasonably estimated projected crude oil and natural gas
production, respectively, from the Obligors’ Proved Developed Producing Reserves in respect of such Oil and Gas Properties,
and (B) for any period after such six month period described in clause (A), the lower of (x) 90% for crude oil or for natural gas,
as the case may be, of the Six-Month Forecast Production Low for crude oil and natural gas, respectively, in respect of such Oil
and Gas Properties; and (y) the sum of 100% of the reasonably estimated projected crude oil and natural gas production, as the
case may be, from the Obligors’ Proved Developed Producing Reserves plus 50% of the reasonably estimated projected crude
oil and natural gas production, as the case may be, from the Obligors’ Proved Developed Nonproducing Reserves, in each case
as determined by reference to the then current Reserve Reports delivered pursuant to the terms of this Agreement and such other
supplemental reserve information as has been provided to the Administrative Agent in form and substance reasonably acceptable to
the Administrative Agent; provided that all calculations of reasonably estimated projected crude oil and natural gas production
made by the Borrower shall be made in a manner consistent with oil and gas production and reserve estimating techniques of, and
reserve category definitions provided by, the Society of Petroleum Engineers.

 

(aaaaa)     Section
7.2.20(g) of the Credit Agreement is hereby amended by (x) deleting the phrase “the Borrower’s maintenance”
and inserting in place thereof the phrase “an Obligor’s maintenance”, (y) deleting the phrase “the Borrower
was” and inserting in place thereof the phrase “such Obligor was” and (z) deleting the phrase “causes the
Borrower” and inserting in place thereof the phrase “causes such Obligor”.

 

(bbbbb)     Section
7.2.21 of the Credit Agreement is hereby amended by (x) deleting each occurrence of the words “refinancing” and
“refinanced” and inserting in place thereof the defined term “Refinancing” or “Refinanced”,
as applicable, (y) deleting the phrase “no Default or Event of Default or Borrowing Base Deficiency” and inserting
in place thereof the phrase “no Default or Event of Default, Borrowing Base Deficiency or EPL Borrowing Base Deficiency”
and (z) deleting the phrase “The Borrower will not” and inserting in place thereof the phrase “Unless after
giving effect to such payment or prepayment the Borrower and its Subsidiaries are in compliance with the Prepayment Conditions,
the Borrower will not,”.

 

(ccccc)     Section
7.2 of the Credit Agreement is further amended by inserting, immediately after Section 7.2.21, the following new Section 7.2.22
and Section 7.2.23, which read as follows:

 

    	 	-50-	-EXXI Eighth Amendment-

    	 

    

 

Section 7.2.22   Restrictions
on EPL Hedging Agreements. (a) Prior to Disqualifying Condition Termination, no EPL Obligor will enter into or maintain any
Hedging Agreements with any Person other than (i) commodity Hedging Agreements with one or more Approved Counterparties (in the
case of Hedging Agreements that are puts or calls that are not executed in conjunction with any other Hedging Agreements) or Lenders
or Affiliates thereof (in the case of any other Hedging Agreements); (ii) Hedging Agreements in respect of interest rates with
an Approved Counterparty; and (iii) Hedging Agreements required under Section 7.1.12; provided that all Hedging Agreements permitted
hereunder are in accordance with this Section 7.2.22 or after Disqualifying Condition Termination Section 7.2.20, and have a fixed
price or floor prices acceptable to the Administrative Agent and aggregate notional volumes acceptable to the Administrative Agent.

 

(b)          With
respect to any commodity Hedging Agreements permitted under this Section 7.2.22, as at any date, volumes corresponding to swaps
or collars (for the absence of doubt, volumes related to puts that are not executed in conjunction with any other Hedging Agreements
are excluded) covering Oil and Gas Properties of the EPL Obligors shall not exceed (A) during the first six calendar months period
following such date, 90% for crude oil or for natural gas, as the case may be, of the reasonably estimated projected crude oil
and natural gas production, respectively, from the EPL Obligors’ Proved Developed Producing Reserves in respect of such Oil
and Gas Properties, and (B) for any period after such six month period described in clause (A), the lower of (x) 90% for crude
oil or for natural gas, as the case may be, of the Six-Month Forecast Production Low for crude oil and natural gas, respectively,
in respect of such Oil and Gas Properties; and (y) the sum of 100% of the reasonably estimated projected crude oil and natural
gas production, as the case may be, from the EPL Obligors’ Proved Developed Producing Reserves plus 50% of the reasonably
estimated projected crude oil and natural gas production, as the case may be, from the EPL Obligors’ Proved Developed Nonproducing
Reserves; in each case as determined by reference to the then current Reserve Reports delivered pursuant to the terms of this Agreement
and such other supplemental reserve information as has been provided to the Administrative Agent in form and substance reasonably
acceptable to the Administrative Agent and provided that all calculations of reasonably estimated projected crude oil and natural
gas production made by EPL shall be made in a manner consistent with oil and gas production and reserve estimating techniques of,
and reserve category definitions provided by, the Society of Petroleum Engineers.

 

    	 	-51-	-EXXI Eighth Amendment-

    	 

    

 

(c)          As
at any date, volumes corresponding to basis swaps covering Oil and Gas Properties of the EPL Obligors shall not exceed (i) during
the first six calendar months period following such date, 90% for crude oil or for natural gas, as the case may be, of the reasonably
estimated projected crude oil and natural gas production, respectively, from the EPL Obligors’ Proved Developed Producing
Reserves in respect of such Oil and Gas Properties, and (ii) thereafter, the lower of (A) 90% for crude oil or for natural gas,
as the case may be, of the Six-Month Production Low for crude oil and natural gas, respectively, in respect of such Oil and Gas
Properties; and (B) the sum of 100% of the reasonably estimated projected crude oil and natural gas production, as the case may
be, from the EPL Obligors’ Proved Developed Producing Reserves plus 50% of the reasonably estimated projected crude oil and
natural gas production, as the case may be, from the EPL Obligors’ Proved Developed Nonproducing Reserves, in each case as
determined by reference to the then current Reserve Reports delivered pursuant to the terms of this Agreement and such other supplemental
reserve information as has been provided to the Administrative Agent in form and substance reasonably acceptable to the Administrative
Agent; provided that all calculations of reasonably estimated projected crude oil and natural gas production made by EPL shall
be made in a manner consistent with oil and gas production and reserve estimating techniques of, and reserve category definitions
provided by, the Society of Petroleum Engineers.

 

(d)          Notwithstanding
anything in this Section to the contrary, by no later than July 1st of each calendar year, swaps and collars covering Oil and Gas
Properties of the EPL Obligors shall not exceed (i) 70% of the reasonably estimated projected crude oil production from the EPL
Obligors’ Proved Developed Producing Reserves for the delivery period from July 1 of such calendar year through October 31
of such calendar year, or (ii) 40% of the reasonably estimated projected natural gas production from the EPL Obligors’ Proved
Developed Producing Reserves for the delivery period from July 1 of such calendar year through October 31 of such calendar year,
in each case as determined by reference to the then current Reserve Reports delivered pursuant to the terms of this Agreement and
such other supplemental reserve information as has been provided to the Administrative Agent in form and substance reasonably acceptable
to the Administrative Agent; provided that all calculations of reasonably estimated projected crude oil and natural gas production
made by EPL shall be made in a manner consistent with oil and gas production and reserve estimating techniques of, and reserve
category definitions provided by, the Society of Petroleum Engineers.

 

(e)          No
EPL Obligor will purchase any calls other than (i) calls corresponding to an existing permitted collar already executed or being
executed in conjunction with such purchased call or (ii) with the consent of the Administrative Agent, calls for the purpose of
mitigating physical delivery risk.

 

(f)          Notwithstanding
anything herein to the contrary, no EPL Obligor will enter into any Hedging Agreements other than in the ordinary course of business
for the purpose of protecting against fluctuations in interest rates, commodity prices and/or basis risk and not for the purpose
of speculation; provided that, for the avoidance of doubt, a Hedging Agreement shall be deemed not to be entered into for the purpose
of speculation, for purposes of the foregoing, if the applicable call strike price thereunder does not vary by more than two percent
(2%) from the call strike price of a corresponding prior Hedging Agreement transaction.

 

    	 	-52-	-EXXI Eighth Amendment-

    	 

    

 

(g)          Notwithstanding
anything in this Section to the contrary, EPL’s maintenance of Hedging Agreements or hedging positions in violation of clauses
(b) through (d) above is not a Default or an Event of Default under this Section 7.2.22 if: (i) EPL was in compliance with the
requirements of this Section 7.2.22 at the time of the entering into of any such Hedging Agreements or hedging positions; and (ii)
after the time of the entering into of any such Hedging Agreements or hedging positions, a decrease in the reasonably estimated
projected crude oil and natural gas production, respectively, from the EPL Obligors’ Proved Developed Producing Reserves
causes EPL to no longer be in compliance with Section 7.2.22 and such non-compliance lasts for a period of not longer than five
(5) Business Days; provided that all calculations of reasonably estimated projected crude oil and natural gas production made by
EPL shall be made in a manner consistent with oil and gas production and reserve estimating techniques of, and reserve category
definitions provided by, the Society of Petroleum Engineers.

 

Section 7.2.23    Prepayment
of the 2011 EPL Notes and 2013 EPL Notes. EPL will not prepay or redeem the 2011 EPL Notes or the 2012 EPL Notes unless the
Borrower shall have determined that such prepayment or redemption is commercially reasonable and at the time thereof no Default,
Borrowing Base Deficiency or EPL Borrowing Base Deficiency exists.

 

(ddddd)  Section
8.1.1 of the Credit Agreement is amended by inserting “or EPL” immediately following “The Borrower”.

 

(eeeee)   Section
8.1.3 of the Credit Agreement is amended by inserting “, or the Borrower and, prior to Disqualifying Condition Termination,
EPL shall fail to preserve and maintain its or their respective legal existence” immediately following “any Guarantor
shall default under any payment or guarantee obligation under a Guaranty”.

 

(fffff)     Section
8.1.5(b) of the Credit Agreement is amended and restated in its entirety to read as follows: “(b) an “Event of Default”
shall have occurred and be continuing under the 2010 Debt Documents, the 2011 Debt Documents, the 2013 Debt Documents, the 2014
Debt Documents, the Permitted Unsecured Debt Documents, the 2011 EPL Debt Documents or the 2012 EPL Debt Documents.”

 

(ggggg)  Section
8.1.10 of the Credit Agreement is amended by deleting “any portion of the Collateral.” and inserting in place thereof
“any portion of the Collateral (subject, however, to the terms of Section 1.6 of this Agreement).”

 

(hhhhh)  Section
8.2 and Section 8.3 of the Credit Agreement are hereby amended and restated in their entirety to read as follows:

 

    	 	-53-	-EXXI Eighth Amendment-

    	 

    

 

Section 8.2         Action
if Bankruptcy. If any Event of Default described in clauses (a) through (d) of Section 8.1.9 with respect to the Borrower or,
prior to Disqualifying Condition Termination, with respect to EPL shall occur, the Commitments (if not theretofore terminated)
shall automatically terminate and the outstanding principal amount of all outstanding Loans and all other Obligations (including
Reimbursement Obligations and the EPL Obligations) shall automatically be and become immediately due and payable, without notice
or demand to any Person and each Obligor (other than, prior to Disqualifying Condition Termination, the EPL Obligors) shall automatically
and immediately be obligated to Cash Collateralize all Letter of Credit Outstandings.

 

Section 8.3         Action
if Other Event of Default. If any Event of Default (other than any Event of Default described in clauses (a) through (d) of
Section 8.1.9 with respect to the Borrower) or, prior to Disqualifying Condition Termination, with respect to EPL) shall occur
for any reason, whether voluntary or involuntary, and be continuing, the Administrative Agent, upon the direction of the Required
Lenders, shall by notice to the Borrower or EPL, as applicable, declare all or any portion of the outstanding principal amount
of the Loans and other Obligations (including Reimbursement Obligations) to be due and payable and/or the Commitments (if not theretofore
terminated) to be terminated, whereupon the full unpaid amount of such Loans and other Obligations that shall be so declared due
and payable shall be and become immediately due and payable, without further notice, demand or presentment, and/or, as the case
may be, the Commitments shall terminate and the Borrower and each other Obligor (other than, prior to the Disqualifying Condition
Termination, the EPL Obligors) shall automatically and immediately be obligated to Cash Collateralize all Letter of Credit Outstandings.

 

(iiiii)     Section
9.2 of the Credit Agreement is hereby amended and restated in their entirety to read as follows:

 

Section 9.2         Funding
Reliance, etc. Unless the Administrative Agent shall have been notified in writing by any Lender by 3:00 p.m. on the Business
Day prior to a Borrowing of Loans that such Lender will not make available the amount that would constitute its Percentage of such
Borrowing of Revolving Loans or EPL Loans, as applicable, on the date specified therefor, the Administrative Agent may assume that
such Lender has made such amount available to the Administrative Agent and, in reliance upon such assumption, make available to
the Borrower or EPL, as applicable, a corresponding amount. If and to the extent that such Lender shall not have made such amount
available to the Administrative Agent, such Lender and the Borrower and, if applicable, EPL, severally agree to repay the Administrative
Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date the Administrative
Agent made such amount available to the Borrower or EPL, as applicable, to the date such amount is repaid to the Administrative
Agent, at the interest rate applicable at the time to Revolving Loans comprising such Borrowing of Revolving Loans (in the case
of the Borrower) or EPL Loans (in the case of EPL) and (in the case of a Lender), at the Federal Funds Rate (for the first two
Business Days after which such amount has not been repaid), and thereafter at the interest rate applicable to Revolving Loans or
EPL Loans, as applicable, comprising such Borrowing.

 

    	 	-54-	-EXXI Eighth Amendment-

    	 

    

 

(jjjjj)           Section
9.3 of the Credit Agreement is hereby amended by deleting the phrase “Neither the Administrative Agent nor any other Agent
nor any of their respective directors, officers, employees or agents” and inserting in place thereof the phrase “None
of the Administrative Agent, any other Agent or any of their respective Affiliates or any of their respective directors, officers,
employees or agents”.

 

(kkkkk)      Section
9.6 of the Credit Agreement is hereby amended by inserting “and EPL” immediately after “the Borrower”.

 

(lllll)           Section
9.9 of the Credit Agreement is hereby amended by deleting both occurrences of the phrase “Default or Borrowing Base Deficiency”
and inserting in place thereof the phrase “Default, Borrowing Base Deficiency or EPL Borrowing Base Deficiency”.

 

(mmmmm)  Section
9.12 of the Credit Agreement is hereby amended by (x) deleting, from clause (a) of such Section 9.12, the phrase “In the
event” and inserting in place thereof the phrase “Subject to the terms of Section 1.6 hereof, in the event” and
(y) deleting, from clause (c) of such Section 9.12, the phrase “if permitted by Section 7.2.20”.

 

(nnnnn)    Section
10.1 of the Credit Agreement is hereby amended by (x) amending and restating clause (a) of such Section 10.1 to read as follows:
“(a) modify clause (b) or (c) of Section 4.7, Section 4.8 (as it relates to sharing of payments) or this Section 10.1, in
each case, without the consent of all Lenders;” and (y) inserting into clause (f) of such Section 10.1 the phrase “or,
prior to Disqualifying Condition Termination, EPL” immediately after the defined term “Borrower”.

 

(ooooo)    Section
10.2 of the Credit Agreement is hereby amended by (x) inserting “EPL,” immediately after the defined term “Borrower”
and (y) inserting the following new sentence as the final sentence of such Section 10.2 “Any notice received by a recipient
after its normal business hours shall be deemed received upon the opening of such recipient’s next Business Day.”

 

(ppppp)    Section
10.4 of the Credit Agreement is hereby amended (x) inserting “, the Affiliates of each Secured Party” immediately
after the phrase “indemnifies, exonerates and holds each Secured Party”, which appears in the lead-in paragraph of
such Section 10.4, (y) by inserting “or EPL” immediately after the defined term “Borrower” appearing
in clause (b) of such Section 10.4 and (z) inserting the following sentence as the final sentence of such Section 10.4 “No
Indemnified Party referred to above shall be liable for any damages arising from the use by unintended recipients of any information
or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection
with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.”

 

(qqqqq)    Section
10.5 of the Credit Agreement is hereby amended by inserting “and EPL” immediately after the defined term “Borrower”.

 

    	 	-55-	-EXXI Eighth Amendment-

    	 

    

 

(rrrrr)        Section
10.10 of the Credit Agreement is hereby amended by deleting the phrase “the Borrower may not assign” and inserting
in place thereof the phrase “neither the Borrower nor EPL may assign”.

 

(sssss)      Section
10.11(a)(ii) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(ii)         each
assignment (whether a partial or complete assignment) shall be made as an assignment of a proportionate part of all the assigning
Lender’s rights and obligations under this Agreement with respect to the Loans (including the Revolving Loans and, prior
to Disqualifying Condition Termination, the EPL Loans), and the Commitments (including, prior to Disqualifying Condition Termination,
its EPL Loan Commitment) assigned and any assignment prior to Disqualifying Condition Termination that does not include the same
Percentage of the Revolving Loans, the EPL Loans, the Revolving Loan Commitment and the EPL Commitment shall be null and void and
of no effect; and

 

(ttttt)        Section
10.11(c) of the Credit Agreement is hereby amended by inserting the phrase “as to its Commitments only,” immediately
following the phrase “and any Lender,”.

 

(uuuuu)    Section
10.11(d) of the Credit Agreement is hereby amended by (x) deleting the phrase “the Borrower, the Administrative Agent,”
and inserting in place thereof the phrase “the Borrower, EPL, the Administrative Agent,”, (y) deleting the phrase “the
Borrower agrees” and inserting in place thereof the phrase “the Borrower and EPL each agree” and (z) inserting
“and EPL, as applicable,” immediately after the phrase “Each Lender shall, as agent of the Borrower”.

 

(vvvvv)   Section
10.11(e) and Section 10.11(g) of the Credit Agreement are hereby amended and restated in their entirety to read as follows:

 

(e)          A
Participant shall not be entitled to receive any greater payment under Sections 4.3, 4.4, 4.5, 4.6, 10.3 and 10.4, as of the time
of the sale of such participation, than the applicable Lender would have been entitled to receive with respect to the participation
sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written
consent (and the consent of EPL with respect to any participation in any EPL Loan). A Participant that would be a Non-U.S. Credit
Party if it were a Lender shall not be entitled to the benefits of Section 4.6 unless the Borrower is notified of the participation
sold to such Participant and such Participant agrees, for the benefit of the Borrower and EPL, to comply with the requirements
set forth in Section 4.6 as though it were a Lender. In addition, if at the time of the sale of such participation, any greater
Taxes subject to payment under Section 4.6 would apply to the Participant than applied to the applicable Lender, then such Participant
shall not be entitled to any payment under Section 4.6 with respect to the portion of such Taxes as exceeds the Taxes applicable
to the Lender at the time of the sale of the participation unless the Participant’s request for the Borrower’s or EPL’s
prior written consent for the Participation described in the first sentence of this clause states that such greater Taxes would
be applicable to such Participant, it being understood that the Participant shall be entitled to additional payments under Section
4.6 to the extent such Lender selling the participation would be entitled to any payment resulting from a Change in Law occurring
after the time the participation was sold. Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary
agent of the Borrower or EPL, as applicable, maintain a register on which it enters the name and address of each Participant and
the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under the Loan
Documents (the “Participant Register”). The entries in the Participant Register shall be conclusive absent manifest
error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation
for all purposes of this Agreement notwithstanding any notice to the contrary.

 

    	 	-56-	-EXXI Eighth Amendment-

    	 

    

 

(g)          Notwithstanding
anything to the contrary contained herein, any Lender (“Granting Lender”) may grant to a special purpose funding
vehicle (a “SPC”), identified as such in writing from time to time by the Granting Lender to the Administrative
Agent, the Swing Line Lender and the Borrower, the option to provide to the Borrower or EPL, as applicable, all or any part of
any Loan that such Granting Lender would otherwise be obligated to make to the Borrower or EPL, as applicable, pursuant to this
Agreement; provided that (x) nothing herein shall constitute a commitment by any SPC to make any Loans and (y) if an SPC
elects not to exercise such option or otherwise fails to provide all or any part of such Loan, the Granting Lender shall be obligated
to make such Loan pursuant to the terms hereof. The making of a Loan by an SPC hereunder shall utilize the corresponding Commitment
of the Granting Lender to the same extent, and as if, such Loan were made by such Granting Lender. Each party hereto hereby agrees
that no SPC shall be liable for any indemnity or similar payment obligation under this Agreement (all liability for which shall
remain with the Granting Lender). In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive
the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding
commercial paper or other senior indebtedness of any SPC, it will not institute against, or join any other person in instituting
against, such SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of the United
States or any State thereof. In addition, notwithstanding anything to the contrary contained in this clause, any SPC may (i) with
notice to, but without the prior written consent of, the Borrower or the Administrative Agent and without paying any processing
fee therefor, assign all or a portion of its interests in any Loans to the Granting Lender or to any financial institutions (consented
to by the Borrower, and the Administrative Agent) providing liquidity and/or credit support to or for the account of such SPC to
support the funding or maintenance of Loans and (ii) disclose on a confidential basis any non-public information relating to its
Loans to any rating agency, commercial paper dealer or provider of any surety, guarantee or credit or liquidity enhancement to
such SPC. This Section may not be amended without the written consent of the SPC. The Borrower and EPL each acknowledges and agrees,
subject to the next sentence, that, to the fullest extent permitted under Applicable Law, each SPC, for purposes of Sections 4.3,
4.4, 4.5, 4.6, 4.8, 4.9, 10.3 and 10.4, shall be considered a Lender. The Borrower and EPL shall not be required to pay any amount
under Sections 4.3, 4.4, 4.5, 4.6, 10.3 and 10.4 that is greater than the amount that it would have been required to pay had no
grant been made by a Granting Lender to a SPC.

 

    	 	-57-	-EXXI Eighth Amendment-

    	 

    

 

(wwwww)  Section
10.13 and Section 10.14 of the Credit Agreement are hereby amended and restated in their entirety to read as follows:

 

Section 10.13    Forum
Selection and Consent to Jurisdiction. ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, ANY LOAN DOCUMENT,
OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE ADMINISTRATIVE AGENT, THE LENDERS,
ANY ISSUER THE BORROWER OR EPL IN CONNECTION HEREWITH OR THEREWITH MAY BE BROUGHT AND MAINTAINED IN THE COURTS OF THE STATE OF
NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED THAT, ANY SUIT SEEKING ENFORCEMENT
AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE ADMINISTRATIVE AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION
WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. THE BORROWER AND EPL EACH IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS
BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK AT THE ADDRESS FOR
NOTICES SPECIFIED IN SECTION 10.2. THE BORROWER AND EPL EACH HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH
COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT THE
BORROWER OR EPL HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH
SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY,
THE BORROWER AND EPL EACH HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS
UNDER THE LOAN DOCUMENTS.

 

    	 	-58-	-EXXI Eighth Amendment-

    	 

    

 

Section 10.14     Waiver
of Jury Trial. THE ADMINISTRATIVE AGENT, EACH LENDER, EACH ISSUER, THE BORROWER AND EPL HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON,
OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, EACH LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
ORAL OR WRITTEN) OR ACTIONS OF THE ADMINISTRATIVE AGENT, SUCH LENDER, SUCH ISSUER, THE BORROWER OR EPL IN CONNECTION THEREWITH.
THE BORROWER AND EPL EACH ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND
EACH OTHER PROVISION OF EACH OTHER LOAN DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE
ADMINISTRATIVE AGENT, EACH LENDER AND EACH ISSUER ENTERING INTO THE LOAN DOCUMENTS.

 

(xxxxx)    Section
10.15 of the Credit Agreement is hereby amended (x) by inserting the parenthetical “(including any self-regulatory body)”
immediately after the phrase “regulatory body having or claiming to have jurisdiction over such Lender” appearing in
subclause (ii) of Section 10.15(a) and (y) by deleting “The Borrower hereby acknowledges” from clause (b) of such Section 10.15
and inserting in place thereof the phrase “The Borrower and EPL each hereby acknowledges”.

 

(yyyyy)   Section
10.16 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

Section 10.16     Counsel
Representation. THE BORROWER AND EPL EACH ACKNOWLEDGES AND AGREES THAT IT HAS BEEN REPRESENTED BY COMPETENT COUNSEL IN THE NEGOTIATION
OF THIS AGREEMENT, AND THAT ANY RULE OR CONSTRUCTION OF LAW ENABLING THE BORROWER OR EPL, AS APPLICABLE, TO ASSERT THAT ANY AMBIGUITIES
OR INCONSISTENCIES IN THE DRAFTING OR PREPARATION OF THE TERMS OF THIS AGREEMENT SHOULD DIMINISH ANY RIGHTS OR REMEDIES OF THE
ADMINISTRATIVE AGENT OR THE OTHER SECURED PARTIES ARE HEREBY WAIVED BY THE BORROWER AND EPL.

 

(zzzzz)    Section
10.18 of the Credit Agreement is hereby amended by (x) deleting the phrase “Obligations of the Borrower to each Lender
under this Agreement shall be subject” and inserting in place thereof the phrase “Obligations of the Borrower and EPL
to each Lender under this Agreement and the other Loan Documents shall be subject”, (y) deleting the phrase “and any
excess shall be credited to the Borrower by such Lender (or, if such consideration shall have been paid in full, such excess promptly
refunded to the Borrower);” and inserting in place thereof the phrase “and any excess shall be credited to the Borrower
or EPL, as applicable, by such Lender (or, if such consideration shall have been paid in full, such excess promptly refunded to
the Borrower or EPL, as applicable);” and (z) inserting the phrase “or EPL, as applicable,” immediately
following the phrase “detention of the indebtedness of the Borrower”.

 

    	 	-59-	-EXXI Eighth Amendment-

    	 

    

 

(aaaaaa)   Section
10.19 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

Section 10.19     Collateral
Matters; Hedging Agreements. The benefit of the Security Documents and of the provisions of this Agreement relating to the Collateral
shall also extend to and be available to each Approved Counterparty to a Hedging Agreement with the Borrower or EPL (or any of
their Subsidiaries) that is or was a Lender or an Affiliate thereof at the time such Approved Counterparty entered into such Hedging
Agreement or if such Hedging Agreement was in effect on the Eighth Amendment Effective Date (but only for purposes of each such
Hedging Agreement so entered or in effect and not for Hedging Agreements entered into after such Approved Counterparty ceased to
be a Lender or Affiliate thereof); provided that it is the intention of the parties hereto that repayment of the Hedging Obligations
of the Borrower or EPL (or any of their Subsidiaries) under any qualifying Hedging Agreement with any such Approved Counterparty
from realization of any Collateral shall be subject to the terms of the Security Documents.

 

(bbbbbb)   Section
10.21 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

Section 10.21
PATRIOT Act; OFAC; FCPA.

 

(a) Patriot
Act. Each Lender hereby notifies the Borrower and EPL that pursuant to the requirements of the Patriot Act, it is required
to obtain, verify and record information that identifies the Borrower or EPL, as applicable, which information includes the name
and address of the Borrower or EPL, as applicable, and other information that will allow such Lender to identify the Borrower or
EPL, as applicable, in accordance with the Patriot Act.

 

(b) OFAC.
None of the Borrower or any of its Subsidiaries (including EPL and the other EPL Obligors) nor, to the knowledge of Borrower, any
director, officer, agent, employee or Affiliate of Parent, the Borrower or any of its Subsidiaries (including EPL and the other
EPL Obligors) is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury
Department (“OFAC”); and neither the Borrower nor EPL will directly or indirectly use the proceeds of the Loans
or the Letters of Credit or otherwise make available such proceeds to any person, for the purpose of financing the activities of
any person currently subject to any U.S. sanctions administered by OFAC.

 

    	 	-60-	-EXXI Eighth Amendment-

    	 

    

 

(c) FCPA.
None of the Borrower or any of its Subsidiaries (including EPL and the other EPL Obligors) nor, to the knowledge of Borrower, any
director, officer, agent, employee or Affiliate of Parent, the Borrower or any of its Subsidiaries (including EPL and the other
EPL Obligors) has (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating
to political activity, (ii) made any direct or indirect unlawful payment to any government official or employee from corporate
funds, (iii) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977 or the Bribery Act
2010 of the United Kingdom or similar law of the European Union or any European Union Member State or similar law of a jurisdiction
in which the applicable Obligor conducts its business and to which it is lawfully subject or (iv) made any unlawful bribe, rebate,
payoff, influence payment, kickback or other unlawful payment.

 

Section 3.          Amendment
to Schedules and Exhibits to Credit Agreement. Effective as of the Eighth Amendment Effective Date, Schedule II
and Schedule III to the Credit Agreement and Exhibits B-1, C, D, E, and K to the Credit Agreement are hereby amended
and restated in their entirety to be in the forms attached to this Amendment as Schedule II, Schedule III and Exhibits B-1,
C, D, E and K attached to this Amendment. The Credit Agreement is further amended effective as of the Eighth Amendment Effective
Date by (i) deleting Schedule I thereto and replacing it with a new Schedule I which is in form and substance satisfactory
to the Administrative Agent, a copy of which shall be delivered to the Lenders on the Eighth Amendment Effective Date and when
so delivered shall constitute the Schedule I attached hereto, (ii) by adding a new Exhibit A-3 in the form of Exhibit A-3
to this Amendment immediately after Exhibit A-2 to the Credit Agreement and (iii) by adding a new Schedule IV in the
form of Schedule IV to this Amendment immediately after Schedule III to the Credit Agreement; provided that such Schedule IV may
be delivered for the first time on the Eighth Amendment Effective Date and when so delivered shall constitute the Schedule IV
attached hereto.

 

Section 4.          (a)
New Borrowing Base and Revolving Loan Commitments; Waiver. The Borrower and the Lenders hereby agree that effective
as of the Eighth Amendment Effective Date (i) the Borrowing Base is set at $1,500,000,000 for the period from the Eighth
Amendment Date to the date of the next determination of the Borrowing Base pursuant to the provisions of Section 2.8
of the Credit Agreement or, if earlier, the date of any other adjustment to the Borrowing Base pursuant to the provisions of the
Credit Agreement, as the case may be and (ii) the EPL Borrowing Base is set at $475,000,000 for the period from the Eighth
Amendment Effective Date to the date of the next determination of the EPL Borrowing Base pursuant to the provisions of Section 2.10
of the Credit Agreement or, if earlier, the date of any other adjustment to the EPL Borrowing Base pursuant to the provisions
of the Credit Agreement, as the case may be. Each Lender hereby agrees that effective as of the Eighth Amendment Effective Date,
its Revolving Loan Commitment and Percentage are as set forth in Schedule III attached to this Amendment.

 

(b)          The
Administrative Agent and the Required Lenders hereby waive, effective retroactively as of and from March 10, 2014, the requirements
of Sections 7.1.8 and 7.2.18 of the Credit Agreement and any related Event of Default under Sections
8.1.3 and 8.1.4 of the Credit Agreement solely with respect to the formation and existence of Clyde Merger Sub, Inc.
as a Subsidiary of the Borrower. For the avoidance of doubt, as a result of such waiver, Clyde Merger Sub, Inc. shall not be obligated
to execute a Subsidiary Guaranty or deliver any Security Documents. For the further avoidance of doubt, upon consummation of the
merger of Clyde Merger Sub, Inc. with and into EPL pursuant to the Agreement and Plan of Merger dated as of March 12, 2014 among
Parent, the Borrower, Clyde Merger Sub, Inc. and EPL (the “EPL Acquisition Agreement”), EPL shall be obligated
to execute and deliver Loan Documents as described in Section 6(b) of this Amendment. This Section 4(b) is not and shall not be
construed to be a waiver of (i) any other Section of the Credit Agreement other than Sections 7.1.8, 7.2.18,
8.1.3 and 8.1.4, or (ii) any provision of Sections 7.1.8, 7.2.18, 8.1.3 or 8.1.4
of the Credit Agreement, except with respect to the formation and existence of Clyde Merger Sub, Inc.

 

    	 	-61-	-EXXI Eighth Amendment-

    	 

    

 

Section 5.          Assignments. Effective
on the Eighth Amendment Effective Date, each Lender hereby irrevocably sells and assigns to each other Lender hereunder and each
Lender hereunder hereby irrevocably purchases and accepts subject to and in accordance with the Standard Terms and Conditions
set forth in Annex 1 to Exhibit D of this Amendment so much of the Aggregate Commitment such that after giving effect
to such sales and assignments, the Lenders have the respective Revolving Loan Commitments and Percentages set forth in the Commitment
Schedule attached as Schedule III to this Amendment and to the extent permitted to be assigned under applicable law, all
claims, suits, causes of action and any other right of the Lenders (in their respective capacities as Lenders) against any Person,
whether known or unknown, arising under or in connection with the Credit Agreement, the other Loan Documents or in any way based
on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory
claims and all other claims at law or in equity related to the rights and obligations sold and assigned hereby. Such sale and
assignment is without recourse to the selling Lenders and without representations or warranty by the selling Lenders except as
expressly provided in paragraph 1.1 of the Standard Terms and Conditions. The Administrative Agent, the Issuers, the Swing
Line Lender and the Borrower hereby consent to the foregoing sales and assignments.

 

Section 6.          Conditions.  (a) Amendment
Effectiveness. This Amendment shall become effective as of the Effective Date (subject to the last paragraph of Section 6.2(b))
when all of the conditions set forth in this Section 6(a) have been satisfied.

 

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

 

(ii)         Projections.
The Lenders shall have received projections of the Borrower (giving effect to the EPL Acquisition) through December 31, 2016 in
form and substance reasonably satisfactory to the Administrative Agent.

 

(iii)        Representations
and Warranties. After giving effect to the waiver set forth in Section 4(b) of this Amendment, the representations and warranties
in Section 7 below shall be true and correct on the Effective Date after giving effect to this Amendment.

 

(iv)        No
Default. After giving effect to the waiver set forth in Section 4(b) of this Amendment, no Default or Event of Default shall
have occurred or be continuing.

 

    	 	-62-	-EXXI Eighth Amendment-

    	 

    

 

    (b)          Eighth
Amendment Effective Date. The Eighth Amendment Effective Date (the “Eighth Amendment Effective Date”) shall
occur on the first Business Day when each of the conditions set forth in this Section 6(b) shall have been satisfied:

 

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

 

(ii)         Notes.
The Administrative Agent shall have received, for the account of each Lender that has requested a Note or an EPL Note, a Note or
an EPL Note, as applicable, payable to the order of such Lender duly executed and delivered by an Authorized Officer of the Borrower
or of EPL, as applicable.

 

(iii)        Solvency.
The Administrative Agent shall have received, with counterparts for each Lender, a solvency certificate duly executed and delivered
by the chief financial or accounting Authorized Officer of each Obligor (including the EPL Obligors), dated as of the Eighth Amendment
Effective Date, substantially in the form of Exhibit J to the Credit Agreement or otherwise in form and substance satisfactory
to the Administrative Agent, with such certification giving effect to the EPL Acquisition and the Credit Extensions on the Eighth
Amendment Effective Date.

 

(iv)        Guaranties.
The Administrative Agent shall have received, with counterparts for each Lender, a Guaranty (or amendments or supplements thereto
in the case of any existing Guaranty) in form and substance satisfactory to the Administrative Agent, dated as of the Eighth Amendment
Effective Date, duly executed and delivered by the applicable Obligors.

 

(v)         Security
Agreements. The Administrative Agent shall have received, with counterparts for each Lender, a Security Agreement (or amendments
or supplements thereto in the case of any existing Security Agreements) in form and substance satisfactory to the Administrative
Agent, each dated as of the Eighth Amendment Effective Date, duly executed and delivered by the applicable Obligors.

 

(vi)        UCC
Searches. The Administrative Agent shall have received certified copies of UCC Requests for Information or Copies (Form UCC-11)
or a similar search report, dated a date reasonably near to the Eighth Amendment Effective Date, listing all effective financing
statements that name any Obligor (under its present name and any previous names) as the debtor, together with copies of such financing
statements (with evidence of Liens only as permitted by Section 7.2.3 of the Credit Agreement, as amended hereby, or otherwise
reasonably satisfactory to the Administrative Agent).

 

    	 	-63-	-EXXI Eighth Amendment-

    	 

    

 

(vii)       Insurance.
The Administrative Agent shall have received (A) a certificate, in form and substance reasonably satisfactory to the Administrative
Agent, from the Borrower’s and its Subsidiaries’ insurance broker(s), dated as of (or a date reasonably near) the Eighth
Amendment Effective Date relating to each insurance policy required to be maintained pursuant to Section 7.1.4 of the Credit Agreement,
identifying types of insurance and the insurance limits of each such insurance policy and naming the Administrative Agent as loss
payee, and each of the Secured Parties as an additional insured, as appropriate, to the extent required under Section 7.1.4 of
the Credit Agreement and (B) to the extent not provided in the foregoing clause (A), a summary of casualty, property and other
insurance policies currently in effect and maintained by or on behalf of the Borrower and its Subsidiaries provided by an insurance
broker and stating that such insurance is in full force and effect and that all premiums due have been paid, in form and substance
satisfactory to the Administrative Agent.

 

(viii)      Mortgages.
The Administrative Agent shall have received counterparts of Mortgages in form and substance reasonably satisfactory to the Administrative
Agent, duly executed and delivered by the applicable EPL Obligors in a sufficient number of counterparts for the due recording
in each applicable recording office, granting to the Administrative Agent (or a trustee appointed by the Administrative Agent)
for the benefit of the Secured Parties first and prior Liens on Oil and Gas Properties such that (A) as of the Eighth Amendment
Effective Date, the Mortgaged Properties constitute at least eighty-five percent (85%) of the total value of the Proved Reserves
of the Borrower and its Subsidiaries (including the EPL Obligors) and at least eighty-five percent (85%) of the total value of
the Proved Developed Producing Reserves of the Borrower and its Subsidiaries (including the EPL Obligors), and (B) the EPL
Mortgaged Properties constitute at least eighty-five percent (85%) of the total value of the Proved Reserves of EPL and its Subsidiaries
and at least eighty-five percent (85%) of the total value of the Proved Developed Producing Reserves of EPL and its Subsidiaries,
as well as such other agreements, documents and other writings as may be reasonably requested by the Administrative Agent, including,
without limitation, UCC-1 financing statements, together with:

 

(1)         evidence
of the completion (or satisfactory arrangements for the completion) of all recordings and filings of such Mortgages as may be necessary
or, in the reasonable opinion of the Administrative Agent, desirable to create a valid, perfected first priority Lien against the
properties purported to be covered thereby;

 

(2)         a
certificate from an Authorized Officer of the Borrower certifying that, the Mortgaged Properties constitute at least eighty-five
percent (85%) of the total value of the Proved Reserves of the Borrower and its Subsidiaries (including the EPL Obligors) and at
least eighty-five percent (85%) of the total value of the Proved Developed Producing Reserves of the Borrower and its Subsidiaries
(including the EPL Obligors), and that the EPL Mortgaged Properties constitute at least eighty-five percent (85%) of the total
value of the Proved Reserves of EPL and its Subsidiaries and at least eighty-five percent (85%) of the total value of the Proved
Developed Producing Reserves of EPL and its Subsidiaries; and

 

(3)         such
other approvals, opinions, or documents as the Administrative Agent may reasonably request in form and substance reasonably satisfactory
to the Administrative Agent.

 

    	 	-64-	-EXXI Eighth Amendment-

    	 

    

 

(ix)     Opinions.
The Administrative Agent shall have received opinions, dated the Eighth Amendment Effective Date and addressed to the Administrative
Agent and all Lenders, from:

 

(A)         Gray,
Reed & McGraw, P.C., special New York and Texas counsel to the Obligors in form and substance, satisfactory to the Administrative
Agent; and

 

(B)         Phelps
Dunbar LLP, local Louisiana and Mississippi counsel to the Obligors in form and substance, satisfactory to the Administrative Agent.

 

(x)      PATRIOT
Act Disclosures. The Administrative Agent and each Lender shall have received all PATRIOT Act disclosures requested by them
prior to the Eighth Amendment Effective Date.

 

(xi)     EPL
Acquisition, etc. The following shall have occurred on or before the Eighth Amendment Effective Date:

 

(A)         The
Administrative Agent shall have received reasonably satisfactory evidence that Clyde Merger Sub, Inc. shall be merged with and
into EPL with EPL surviving such merge in accordance with the EPL Acquisition Agreement, and no provision of the EPL Acquisition
Agreement shall have been waived, amended, supplemented or otherwise modified in a manner material and adverse to the Lenders without
the written consent of the Administrative Agent (which consent shall not be unreasonably withheld or delayed);

 

(B)         The
Administrative Agent shall have received reasonably satisfactory evidence that (1) substantially all of the Indebtedness (including
commitments in respect thereof) of EPL (excluding the 2011 EPL Debt and the 2012 EPL Debt) existing on or prior to the Eighth Amendment
Effective Date (other than Indebtedness under the Credit Agreement) and (2) all obligations under the Amended and Restated
Credit Agreement, dated as of October 31, 2012 (and as amended, supplemented, restated or otherwise modified from time to time)
by and among EPL, the financial institutions from time to time party thereto, and Bank of Montreal, as Administrative Agent), shall
be repaid (or cancelled) on terms satisfactory to the Administrative Agent and all related Liens, mortgages and security interests
shall have been released or arrangements shall have been made which are reasonably satisfactory to the Administrative Agent for
the repayment thereof and release of all such related Liens, mortgages and security interests.

 

(xii)        Approvals.
All governmental and third party approvals required under the EPL Acquisition Agreement shall have been obtained and be in full
force and effect on terms reasonably satisfactory to the Administrative Agent. No Governmental Authority (as defined in the Acquisition
Agreement) shall have issued, promulgated, enforced or entered any order, temporary restraining order, preliminary or permanent
injunction, or other legal restraint or prohibition that is continuing and which prevents the consummation of the EPL Acquisition.
There shall not be any pending suit, action or proceeding asserted by any Governmental Authority challenging or seeking to restrain
or prohibit the consummation of the EPL Acquisition or the transactions contemplated under the EPL Acquisition Agreement.

 

    	 	-65-	-EXXI Eighth Amendment-

    	 

    

 

(xiii)       Closing
Certificate; Certified Articles of Incorporation; Good Standing Certificates, etc. The Administrative Agent shall have received
a certificate of each Obligor, dated the Eighth Amendment Effective Date, in form and substance satisfactory to the Administrative
Agent, with appropriate attachments, including (A) copies of the Organic Documents of each Obligor certified by the relevant
authority of the jurisdiction of organization of such Obligor or stating with respect to Obligors for whom Organic Documents have
previously been delivered to the Administrative Agent that such Organic Documents remain in full force and effect and have not
been amended or modified (or to the extent of any amendment or modification, attaching copies of such amendments or modification),
(B) a long form good standing certificate, certificate of status or certificate of limited partnership or limited liability
company, as applicable (in each case, if available in such jurisdiction), for each Obligor from its jurisdiction of organization,
(C) resolutions of its board of directors or other appropriate governing body with respect to the authorization of the Borrower
or such Obligor to execute and deliver the Loan Documents to which it is a party and to enter into the transactions contemplated
in this Amendment and the other Loan Documents, (D) a list of the officers of the Borrower or such Obligor (y) who are
authorized to sign the Loan Documents to which the Borrower or such Obligor is a party and (z) who will, until replaced by
another officer or officers duly authorized for that purpose, act as its representative for the purposes of signing documents and
giving notices and other communications in connection with the Credit Agreement and the transactions contemplated thereby, together
with specimen signatures of such Authorized Officers, and (E) in the case of the certificate of the Borrower, a true and complete
copy of the EPL Acquisition Agreement. The Administrative Agent and the Lenders may conclusively rely on such certificates until
the Administrative Agent receives notice in writing from the Borrower to the contrary.

 

(xiv)      Pledged
Stock; Stock Powers; Pledged Notes. The Administrative Agent shall have received (A) the certificates representing the
shares or units of Capital Securities (to the extent certificated) of the EPL Obligors pledged pursuant to the Security Agreements,
together with an undated stock power or transfer form for each such certificate executed in blank by a duly authorized officer
of the pledgor thereof and (B) each promissory note (if any) of the EPL Obligors pledged to the Administrative Agent pursuant
to the Security Agreements endorsed (without recourse) in blank (or accompanied by an executed transfer form in blank) by the pledgor
thereof.

 

(xv)       Representations
and Warranties. The representations and warranties in Section 7 below shall be true and correct on the Eighth Amendment
Effective Date after giving effect to (1) the EPL Acquisition, (2) this Amendment, including the execution and delivery
of the agreements and instruments and satisfaction of the matters provided in this Section 6(b), and (3) the Credit
Extensions to be made on such date.

 

    	 	-66-	-EXXI Eighth Amendment-

    	 

    

 

(xvi)      No
Default, etc. After giving effect to the EPL Acquisition and the Credit Extensions to be made on the Eighth Amendment Effective
Date, and Section 4(b) of this Amendment, no Default, Event of Default, Borrowing Base Deficiency, or EPL Borrowing Base Deficiency
shall have occurred and be continuing.

 

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

 

(xviii)    Joinder
Agreement. EPL shall have executed and delivered to the Administrative Agent in sufficient numbers of signed counterparts to
provide an original to each Lender, a Joinder Agreement substantially in the form of Annex I to this Amendment (as amended,
modified or supplemented from time to time the “Joinder Agreement”).

 

(xix)       Title
Information. The Administrative Agent shall have received such title information with respect to EPL’s Oil and Gas Properties
as the Administrative Agent shall have requested.

 

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

 

Notwithstanding the foregoing,
in the event that the conditions set forth in this Section 6(b) shall not have been satisfied in full on or before
June 10, 2014, then this Amendment shall terminate automatically and shall be of no force or effect.

 

Section 7.          Representations
and Warranties. The Borrower hereby represents and warrants that (after giving effect to the waiver set forth in Section
4(b) hereto):

 

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

 

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

 

    	 	-67-	-EXXI Eighth Amendment-

    	 

    

 

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

 

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

 

Section 8.          Loan
Document; Ratification.

 

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

 

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

 

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

 

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

 

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

 

    	 	-68-	-EXXI Eighth Amendment-

    	 

    

 

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

 

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

 

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

 

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

 

THERE ARE NO UNWRITTEN
ORAL AGREEMENTS BETWEEN THE PARTIES.

 

(Signature Pages Follow)

 

    	 	-69-	-EXXI Eighth Amendment-

    	 

    

 

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

 

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

 

    	 

    	 

    

 

	 	THE ROYAL BANK OF SCOTLAND plc, as 

the Administrative Agent, an Issuer and a 

Lender
	 	 	 
	 	By:	/s/ Sanjay Remond
	 	 	Name:  Sanjay Remond
	 	 	Title:    Director

 

    	 

    	 

    

 

	 	WELLS FARGO BANK, N.A., as an Issuer and 

Lender
	 	 	 
	 	By:	/s/ Betsy Jocher
	 	 	Name: Betsy Jocher
	 	 	Title: Director

 

    	 

    	 

    

 

	 	AMEGY BANK NATIONAL ASSOCIATION, 

as Lender
	 	 	 
	 	By:	/s/ Kevin A. James
	 	 	Name: Kevin A. James
	 	 	Title: Vice President

 

    	 

    	 

    

 

	 	THE BANK OF NOVA SCOTIA, as Lender
	 	 	 
	 	By:	/s/ Alan Dawson
	 	 	Name: Alan Dawson
	 	 	Title: Director

 

    	 

    	 

    

 

	 	TORONTO DOMINION (TEXAS) LLC, as 

Lender
	 	 	 
	 	By:	/s/ Masood Fikree
	 	 	Name: Masood Fikree
	 	 	Title: Authorized Signatory

 

    	 

    	 

    

 

 

 

 

	 	CAPITAL ONE, NATIONAL ASSOCIATION, as Lender
	 	 
	 	By:	/s/ Mack Lambert
	 	 	Name: Mack Lambert
	 	 	Title: Vice President

 

    	 

    	 

    

 

	 	NATIXIS, New York Branch, as Lender
	 	 	 
	 	By:	/s/ Justin Bellamy
	 	 	Name: Justin Bellamy
	 	 	Title: Director
	 	 	 
	 	By:	/s/ Stuart Murray
	 	 	Name: Stuart Murray
	 	 	Title: Managing Director

 

    	 

    	 

    

 

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

 

    	 

    	 

    

 

	 	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as Lender
	 	 	 
	 	By:	/s/ Nupur Kumar
	 	 	Name: Nupur Kumar
	 	 	Title: Authorized Signatory
	 	 	 
	 	By:	/s/ Samuel Miller
	 	 	Name: Samuel Miller
	 	 	Title: Authorized Signatory

 

    	 

    	 

    

 

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

 

    	 

    	 

    

 

	 	REGIONS BANK, as Lender and as Swing Line Lender
	 	 	 
	 	By:	/s/ Daniel G. Steele
	 	 	Name: Daniel G. Steele
	 	 	Title: Senior Vice President

 

    	 

    	 

    

 

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

 

    	 

    	 

    

 

	 	UBS AG, STAMFORD BRANCH, as Issuer and Lender
	 	 	 
	 	By:	/s/ Lana Gifas
	 	 	Name: Lana Gifas
	 	 	Title: Director - Banking Products Services, US
	 	 	 
	 	By:	/s/ Jennifer Anderson
	 	 	Name: Jennifer Anderson
	 	 	Title: Associate Director - Banking Product Services, US

 

    	 

    	 

    

 

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

 

    	 

    	 

    

 

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

 

    	 

    	 

    

 

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

 

    	 

    	 

    

 

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

 

    	 

    	 

    

 

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

 

    	 

    	 

    

 

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

 

    	 

    	 

    

 

	 	KEYBANK NATIONAL ASSOCIATION, as Lender
	 	 	 
	 	By:	/s/ George E. McKean
	 	 	Name: George E. McKean
	 	 	Title: Senior Vice President

 

    	 

    	 

    

 

	 	SANTANDER BANK, N.A., as Lender
	 	 	 
	 	By:	/s/ Aidan Lanigan
	 	 	Name: Aidan Lanigan
	 	 	Title: Senior Vice President
	 	 	 
	 	By:	/s/ Puiki Lok
	 	 	Name: Puiki Lok
	 	 	Title: Vice President

 

    	 

    	 

    

 

	 	WHITNEY BANK, as Lender
	 	 	 
	 	By:	/s/ David E. Sisler
	 	 	Name: David E. Sisler
	 	 	Title: Senior Vice President

 

    	 

    	 

    

 

	 	CANADIAN IMPERIAL BANK OF COMMERCE, NEW YORK BRANCH, as Lender
	 	 	 
	 	By:	/s/ Daria Mahoney
	 	 	Name: Daria Mahoney
	 	 	Title: Authorized Signatory
	 	 	 
	 	By:	/s/ Trudy Nelson
	 	 	Name: Trudy Nelson
	 	 	Title: Authorized Signatory

 

    	 

    	 

    

 

	 	CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, as Lender
	 	 	 
	 	By:	/s/ Dennis E. Petito
	 	 	Name: Dennis E. Petito
	 	 	Title: Managing Director
	 	 	 
	 	By:	/s/ Michael D. Willis
	 	 	Name: Michael D. Willis
	 	 	Title: Managing Director

 

    	 

    	 

    

 

	 	IBERIABANK, as Lender
	 	 	 
	 	By:	/s/ W. Bryan Chapman
	 	 	Name: W. Bryan Chapman
	 	 	Title: EVP & Energy Lending Manager

 

    	 

    	 

    

 

	 	PNC BANK, NATIONAL ASSOCIATION, as Lender
	 	 	 
	 	By:	/s/ Sandra Aultman
	 	 	Name: Sandra Aultman
	 	 	Title: Managing Director

 

    	 

    	 

    

 

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

 

    	 

    	 

    

 

 

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

 

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

 

This Securities Purchase
Agreement (this “Agreement”) is dated as of June 3, 2014, between Vuzix Corporation, a Delaware corporation
(the “Company”), and each purchaser identified on the signature pages hereto (each, including its successors
and permitted assigns, a “Purchaser” and collectively, the “Purchasers”).

 

WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act of 1933, as amended (the
“Securities Act”), and Rule 506 promulgated thereunder, the Company desires to issue and sell to each Purchaser,
and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described
in this Agreement (the “Offering”).

 

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

 

ARTICLE I. 

DEFINITIONS

 

1.1           Definitions.
In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise defined herein have
the meanings given to such terms in the Notes (as defined herein), and (b) the following terms have the meanings set forth in this
Section 1.1:

 

“Acquiring
Person” shall have the meaning ascribed to such term in Section 4.7.

 

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

 

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

 

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

 

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

 

“Closing”
means the Closing Date of the purchase and sale of the Securities pursuant to Section 2.1.

 

“Closing
Date” means the Closing Date and is the Trading Day on which all of the Transaction Documents have been executed and
delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchasers’ obligations to pay the Subscription
Amount at such Closing and (ii) the Company’s obligations to deliver the Securities to be issued and sold at such Closing,
in each case, have been satisfied or waived, but in no event later than the third Trading Day following the date hereof in the
case of the Closing.

 

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

 

    	 

    	 

    

 

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

 

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

 

“Company
Counsel” means Sichenzia Ross Friedman Ference LLP, 61 Broadway, 32nd Floor, New York, NY 10006, Attn: Greg
Sichenzia, Esq., facsimile: (212) 930-9725.

 

“Conversion
Price” shall have the meaning ascribed to such term in the Notes.

 

“Disclosure
Schedules” means the Disclosure Schedules of the Company delivered concurrently herewith.

 

“Effective
Date” means the earliest of the date that (a) the initial Registration Statement has been declared effective by the Commission
including therein all of the Underlying Shares for public unrestricted resale, or (b) all of the Underlying Shares have been sold
pursuant to Rule 144 or may be sold pursuant to Rule 144 without the requirement for the Company to be in compliance with the current
public information requirement under Rule 144 and without volume or manner-of-sale restrictions; and Company counsel has delivered
to such holders a standing written unqualified opinion that resales may then be made by such holders of the Underlying Shares pursuant
to such registration statement or exemption which opinion shall be in form and substance reasonably acceptable to such holders.

 

“Equity
Line of Credit” shall have the meaning ascribed to such term in Section 4.13.

 

“Escrow
Agreement” means the escrow agreement to be employed in connection with the sale of the Securities, a copy of which is
annexed hereto as Exhibit B.

 

“Evaluation
Date” shall have the meaning ascribed to such term in Section 3.1(r).

 

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

 

“Exempt
Issuance” means the issuance of (a) shares of Common Stock and options to officers, directors or employees of the Company,
prior to and after the Closing Date up to the amounts and on the terms set forth on Schedule 4.13, (b) securities issued
or issuable pursuant to this Agreement, the Notes, including without limitation, Section 4.18, or upon conversion of such securities
and Notes including shares paid as interest on the Notes pursuant to Section 2.a) of the Notes (subject to adjustment for forward
and reverse stock splits and similar events that occur after the date hereof) and/or other securities exercisable or exchangeable
for or convertible into shares of Common Stock issued and outstanding on the date of this Agreement, provided that such securities
and any term thereof have not been amended since the date of this Agreement to increase the number of such securities or to decrease
the issue price, exercise price, exchange price or conversion price of such securities and which securities and the principal terms
thereof are set forth on Schedule 3.1(g), and described in the SEC Reports filed not later than ten (10) days before the
Closing Date, (c) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested
directors of the Company, provided that any such issuance shall only be to a Person (or to the equityholders of a Person) which
is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic with the business
of the Company and shall be intended to provide to the Company substantial additional benefits in addition to the investment of
funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital
or to an entity whose primary business is investing in securities, (d) an amendment to decrease the issue price, exercise price,
exchange price or conversion price of the securities issued in connection with an aggregate offering by the Company of 3,500,000
shares of Common Stock and Warrants set forth on Schedule 3.1(g).

 

    	2

    	 

    

 

“Exercise
Notice” shall have the meaning ascribed to such term in Section 2.4.

 

“FCPA”
means the Foreign Corrupt Practices Act of 1977, as amended.

 

“Form
8-K” shall have the meaning ascribed to such term in Section 4.6.

 

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

 

“G&M”
shall mean Grushko & Mittman, P.C., with offices located at 515 Rockaway Avenue, Valley Stream, New York 11581, Fax: 212-697-3575.

 

“Indebtedness”
shall have the meaning ascribed to such term in Section 3.1(z).

 

“Intellectual
Property Rights” shall have the meaning ascribed to such term in Section 3.1(o).

 

“Intercreditor
Agreement” shall have the meaning ascribed to such term in Section 2.2.

 

“Legend
Removal Date” shall have the meaning ascribed to such term in Section 4.1(c).

 

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

 

“Listing
Default” shall have the meaning ascribed to such term in Section 4.11.

 

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

 

“Material
Permits” shall have the meaning ascribed to such term in Section 3.1(m).

 

“Maximum
Rate” shall have the meaning ascribed to such term in Section 5.17.

 

“Money
Laundering Laws” shall have the meaning ascribed to such term in Section 3.1(gg).

 

“Notes”
means the secured convertible notes due thirty-six (36) months after their respective issue dates, in the form of Exhibit A
hereto.

 

“OFAC”
shall have the meaning ascribed to such term in Section 3.1(ii).

 

“Participation
Maximum” shall have the meaning ascribed to such term in Section 4.18(a).

 

    	3

    	 

    

 

“Permitted
Indebtedness” means: (w) standard operating loans or accounts receivable factoring from a bank or financial institution
licensed in the United States regularly engaged in the business of extending such loans, secured with a lien on the Company’s
accounts receivable and/or inventory in connection with which such credit facility was provided which shall be senior to the lien
on the Notes on the accounts receivable and the inventory and junior on all other assets, (x) any liabilities for borrowed money
or amounts owed not in excess of $300,000 in the aggregate (other than trade accounts payable incurred in the ordinary course of
business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or not
the same are or should be reflected in the Company’s consolidated balance sheet (or the notes thereto) not affecting more
than $300,000 in the aggregate, except guaranties by endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business; and (z) the present value of any lease payments not in excess of $300,000 due
under leases required to be capitalized in accordance with GAAP.

 

“Permitted
Lien” means the individual and collective reference to the following: (a) Liens for taxes, assessments and other governmental
charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being contested in good
faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the Company)
have been established in accordance with GAAP, (b) Liens imposed by law which were incurred in the ordinary course of the business
of the Company or any of its Subsidiaries, such as suppliers’, vendors’, carriers’, warehousemen’s and
mechanics’ Liens, statutory workmen’s, repairmen’s and landlords’ Liens, and other similar Liens arising
in the ordinary course of the business of the Company or any of its Subsidiaries, and which (x) do not individually or in the aggregate
materially detract from the value of such property or assets or materially impair the use thereof in the operation of the business
of the Company and its consolidated Subsidiaries or (y) are being contested in good faith by appropriate proceedings, which proceedings
have the effect of preventing for the foreseeable future the forfeiture or sale of the property or asset subject to such Lien,
(c) Liens incurred prior to the Closing Date in connection with Permitted Indebtedness as described on Schedule 3.1(n),
(d) Liens incurred in connection with Permitted Indebtedness, provided that such Liens are not secured by assets of the Company
or its Subsidiaries other than the assets so acquired or leased, (e) non-exclusive licenses granted by the Company in respect of
its intellectual property, (f) Liens disclosed on Schedule 3.1(n) to this Agreement and (g) the Lien on accounts receivable
and inventory in favor a bank or financial institution listed in clause (w) of the definition of Permitted Indebtedness.

 

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

 

“Pre-Notice”
shall have the meaning ascribed to such term in Section 4.18.

 

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

 

“Pro-Rata
Portion” shall have the meaning ascribed to such term in Section 4.18.

 

“Protection
Period” shall have the meaning ascribed to such term in Section 4.15.

 

“Public
Information Failure” shall have the meaning ascribed to such term in Section 4.3(b).

 

“Public
Information Failure Payments” shall have the meaning ascribed to such term in Section 4.3(b).

 

“Purchaser
Party” shall have the meaning ascribed to such term in Section 4.10.

 

    	4

    	 

    

 

“Recognized
Stock Exchange” means New York Stock Exchange, American Stock Exchange (“AMEX”), National Association of
Securities Dealers Automated Quotation System (“NASDAQ”), the NYSE MKT, the NASDAQ Global Select Market, the NASDAQ
Global Market, the NASDAQ Capital Market or OTC Bulletin Board.

 

“Registration
Rights Agreement” means the Registration Rights Agreement, dated the date hereof, among the Company and the Purchasers,
in the form of Exhibit C attached hereto.

 

“Registration
Statement” means a registration statement meeting the requirements set forth in the Registration Rights Agreement and
covering the resale of the Underlying Shares by each Purchaser as provided for in the Registration Rights Agreement.

 

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

 

“Required
Minimum” means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable
in the future pursuant to the Transaction Documents, including any Underlying Shares issuable upon conversion in full of all Notes,
ignoring any conversion or exercise limits set forth therein, and assuming that any previously unconverted Notes will be held until
the third anniversary of the Closing Date.

 

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

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

 

“Securities”
means the Notes and the Underlying Shares.

 

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

 

“Selling
Expenses” shall have the meaning ascribed to such term in Section 4.23.

 

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

 

“Subscription
Amount” means, as to each Purchaser, the aggregate amount to be paid for the Notes purchased hereunder as specified below
such Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription Amount,”
in United States dollars and in immediately available funds. The foregoing notwithstanding, Purchaser may surrender its short term
promissory note as payment for all or a portion of such Purchaser’s Subscription Agreement.

 

“Subsequent
Financing” shall have the meaning ascribed to such term in Section 4.18.

 

“Subsequent
Financing Notice” shall have the meaning ascribed to such term in Section 4.18.

 

    	5

    	 

    

 

“Subsidiary”
means with respect to any entity at any date, any direct or indirect corporation, limited or general partnership, limited liability
company, trust, estate, association, joint venture or other business entity of which (A) more than 30% of (i) the outstanding
capital stock having (in the absence of contingencies) ordinary voting power to elect a majority of the board of directors or other
managing body of such entity, (ii) in the case of a partnership or limited liability company, the interest in the capital
or profits of such partnership or limited liability company or (iii) in the case of a trust, estate, association, joint venture
or other entity, the beneficial interest in such trust, estate, association or other entity business is, at the time of determination,
owned or controlled directly or indirectly through one or more intermediaries, by such entity, or (B) is under the actual control
of the Company.

 

“Termination
Date” shall have the meaning ascribed to such term in Section 2.1.

 

“Trading
Day” means a day on which the principal Trading Market is open for trading.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New
York Stock Exchange, the OTC Bulletin Board, the OTCQB, or the OTCQX (or any successors to any of the foregoing).

 

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

 

“Transfer
Agent” means Computershare Trust Company, N.A., and any successor transfer agent of the Company.

 

“Underlying
Shares” means the shares of Common Stock issued and issuable upon conversion of the Notes in lieu of the cash payment
of interest on the Notes in accordance with the terms of the Notes and any other shares of Common Stock issued or issuable to a
Purchaser in connection with or pursuant to the Securities or Transaction Documents.

 

“Variable
Priced Equity Linked Instruments” shall have the meaning ascribed to such term in Section 4.13.

 

“Variable
Rate Transaction” shall have the meaning ascribed to such term in Section 4.13.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed
or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding
date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading
Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if the OTC Bulletin Board is not a Trading
Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin
Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common
Stock are then reported on the OTCQX, OTCQB or OTC Pink Marketplace maintained by the OTC Markets Group, Inc. (or a similar organization
or agency succeeding to its functions of reporting prices), the volume weighted average price of the Common Stock on the first
such facility (or a similar organization or agency succeeding to its functions of reporting prices), or (d) in all other cases,
the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers
of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of
which shall be paid by the Company.

 

    	6

    	 

    

 

ARTICLE II. 

PURCHASE AND SALE

 

2.1           Closing.
On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution
and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchasers, severally and not jointly,
agree to purchase, an aggregate of not less than $2,000,000 and up to $3,000,000 principal amount of Notes representing such Purchaser’s
Subscription Amount as set forth on the signature page hereto executed by such Purchaser as determined pursuant to Section 2.2(a)
(such purchase and sale being the “Closing”). Each Purchaser shall deliver to the Company such Purchaser’s
Subscription Amount, and the Company shall deliver to each Purchaser its respective Note as determined pursuant to Section 2.2(a),
and the Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing. Upon satisfaction
of the covenants and conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of G&M or such other
location as the parties shall mutually agree. Notwithstanding anything herein to the contrary, the Closing Date shall occur on
or before June 16, 2014 (“Termination Date”). If the Closing is not held on or before the Termination Date,
the Company shall cause all subscription documents and funds to be returned, without interest or deduction to each prospective
Purchaser.

 

2.2           Deliveries.

 

(a)          On
or prior to the Closing Date, the Company shall deliver or cause to be delivered to the Escrow Agent the following:

 

(i)          this
Agreement duly executed by the Company;

 

(ii)         a
legal opinion of Company Counsel, substantially in the form of Exhibit E attached hereto;

 

(iii)        the
Registration Rights Agreement duly executed by the Company;

 

(iv)        a
Note with a principal amount equal to the Purchaser’s Subscription Amount registered in the name of such Purchaser;

 

(v)         the
Escrow Agreement duly executed by the Company;

 

(vi)        the
Security Agreement duly executed by the Company;

 

(vii)       the
Intercreditor Agreement duly executed by the Company.

 

(b)          On
or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following:

 

(i)          this
Agreement duly executed by such Purchaser;

 

(ii)         the
Registration Rights Agreement duly executed by such Purchaser;

 

(iii)        such
Purchaser’s Subscription Amount by wire transfer or as otherwise permitted under the Escrow Agreement, to the Escrow Agent;

 

(iv)        the
Escrow Agreement duly executed by such Purchaser;

 

    	7

    	 

    

 

(v)         the
Security Agreement duly executed by such Purchaser; and

 

(vi)        the
Intercreditor Agreement duly executed by such Purchaser.

 

2.3           Closing
Conditions.

 

(a)          The
obligations of the Company hereunder to effect the Closing are subject to the following conditions being met:

 

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

 

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

 

(iii)        the
delivery by each Purchaser of the items set forth in Section 2.2(b) of this Agreement; and

 

(iv)        the
Escrow Agent shall have received executed signature pages to this Agreement from Purchasers and the Escrow Agent shall have received
corresponding Subscription Amounts from such Purchasers in cash.

 

(b)          The
respective obligations of a Purchaser hereunder to effect the Closing, unless waived by such Purchaser, are subject to the following
conditions being met:

 

(i)          the
accuracy in all material respects (determined without regard to any materiality, Material Adverse Effect or other similar qualifiers
therein) on the Closing Date of the representations and warranties of the Company contained herein (unless as of a specific date
therein in which case they shall be accurate as of such date);

 

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

 

(iii)        the
Company shall have received executed signature pages to this Agreement with an aggregate Subscription Amount of at least $2,000,000
prior to the Closing;

 

(iv)        the
delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

(v)         there
shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

 

(vi)        from
the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Company’s
principal Trading Market, and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg
L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are
reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States
or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national
or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in
each case, in the reasonable judgment of such Purchaser, makes it impracticable or inadvisable to purchase the Securities at the
Closing.

 

    	8

    	 

    

 

ARTICLE III.

 

REPRESENTATIONS AND WARRANTIES

 

3.1           Representations
and Warranties of the Company. Except as set forth in the SEC Reports or the Disclosure Schedules, which Disclosure Schedules
shall be deemed a part hereof and shall qualify any representation made herein only to the extent of the disclosure contained in
the corresponding section of the Disclosure Schedules, the Company hereby makes the following representations and warranties to
each Purchaser:

 

(a)          Subsidiaries.
All of the direct and indirect subsidiaries of the Company and the Company’s ownership interests therein are set forth on
Schedule 3.1(a). The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary
free and clear of any Liens, other than Permitted Liens, and all of the issued and outstanding shares of capital stock of each
Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or
purchase securities.

 

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

 

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

 

    	9

    	 

    

 

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

 

(e)          Filings,
Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice
to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i)
the filings required pursuant to Section 4.5 of this Agreement, (ii) the notice and/or application(s) to each applicable Trading
Market for the issuance and sale of the Notes and the listing of the Underlying Shares for trading thereon in the time and manner
required thereby, and (iii) the filing of Form D with the Commission and such filings as are required to be made under applicable
state securities laws (collectively, the “Required Approvals”).

 

(f)          Issuance
of the Securities. The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction
Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The
Company has reserved from its duly authorized capital stock a number of shares of Common Stock for issuance of the Underlying Shares
at least equal to the Required Minimum on the date hereof.

 

    	10

    	 

    

 

(g)          Capitalization.
The capitalization of the Company is as set forth in Schedule 3.1(g). The Company has not issued any capital stock since its
most recently filed periodic report under the Exchange Act. No Person has any right of first refusal, preemptive right, right of
participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as disclosed
on Schedule 3.1(g), there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or
giving any Person any right to subscribe for or acquire any shares of Common Stock, or any material contracts, commitments, understandings
or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common
Stock Equivalents. Except as set forth on Schedule 3.1(g), the issuance and sale of the Securities will not obligate the
Company to issue shares of Common Stock or other securities to any Person (other than the Purchasers) and will not result in a
right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities.
All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable,
have been issued in material compliance with all federal and state securities laws, and none of such outstanding shares was issued
in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization
of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities. There are no stockholders
agreements, voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company
is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.

 

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

 

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(i)          Material
Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included
within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof: (i) there has
been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect,
(ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables and accrued
expenses incurred in the ordinary course of business consistent with past practice, (B) liabilities not required to be reflected
in the Company’s financial statements pursuant to GAAP or disclosed in filings made with the Commission and (C) transaction
expenses incurred in connection with the Transaction Documents, (iii) the Company has not altered its method of accounting, (iv)
the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed
or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities
to any officer, director or Affiliate except as set forth on Schedule 3.1(g) pursuant to existing Company stock option plans
which issuances prior to the date of this Agreement are described on Schedule 3.1(g). The Company does not have pending
before the Commission any request for confidential treatment of information. Except for the issuance of the Securities contemplated
by this Agreement or as set forth on Schedule 3.1(i), no event, liability, fact, circumstance, occurrence or development
has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their respective
businesses, properties, operations, assets or financial condition, that would be required to be disclosed by the Company under
applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least
two Trading Days prior to the date that this representation is made.

 

(j)          Litigation.
Except as set forth on Schedule 3.1(j), there is no action, suit, inquiry, notice of violation, proceeding or investigation
pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective
properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county,
local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity
or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision, have
or reasonably be expected to result in a Material Adverse Effect. Except as set forth in Schedule 3.1(j), since December
31, 2013, neither the Company nor any Subsidiary, nor, to the Company’s knowledge, any director or officer thereof, is or
has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim
of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any
investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission
has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or
any Subsidiary under the Exchange Act or the Securities Act.

 

(k)          Labor
Relations. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of
the Company, which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’
employees is a member of a union that relates to such employee’s relationship with the Company or such Subsidiary, and neither
the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe
that their relationships with their employees are good. To the knowledge of the Company, no executive officer of the Company or
any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure
or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant
in favor of any third party, which could reasonably be expected to result in a Material Adverse Effect and the continued employment
of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of
the foregoing matters. The Company and its Subsidiaries are in compliance with all applicable U.S. federal, state, local and foreign
laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except
where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect.

 

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(l)          Compliance.
Neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been
waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the
Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture,
loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is
bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any
court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation
of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental
protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as
could not have or reasonably be expected to result in a Material Adverse Effect.

 

(m)          Regulatory
Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal,
state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports,
except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect (“Material
Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation
or modification of any Material Permit.

 

(n)          Title
to Assets. The Company and the Subsidiaries have good and marketable title in fee simple to all real property (if any) owned
by them and good and marketable title in all personal property owned by them that is material to the business of the Company and
the Subsidiaries, in each case free and clear of all Liens, except for (i) Liens, except for Permitted Liens, as do not materially
affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by
the Company and the Subsidiaries, (ii) Liens for the payment of federal, state or other taxes, for which appropriate reserves have
been made in accordance with GAAP and, the payment of which is neither delinquent nor subject to penalties and (iii) Permitted
Liens. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting
and enforceable leases with which the Company and the Subsidiaries are in compliance, except where the non-compliance would not
reasonably be expected to result in a Material Adverse Effect.

 

(o)          Intellectual
Property.

 

(i)          The
term “Intellectual Property Rights” includes:

 

		1.	the name of the Company and each Subsidiary, all fictional
business names, trading names, registered and unregistered trademarks, service marks, and applications of the Company and each
Subsidiary (collectively, “Marks'');

 

		2.	all patents, patent applications, and inventions and
discoveries that may be patentable of the Company and each Subsidiary (collectively, “Patents'');

 

		3.	all copyrights in both published works and published
works of the Company and each Subsidiary (collectively, “Copyrights”);

 

		4.	all rights in mask works of the Company and each Subsidiary
(collectively, “Rights in Mask Works''); and

 

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		5.	all know-how, trade secrets, confidential information,
customer lists, software, technical information, data, process technology, plans, drawings, and blue prints (collectively, “Trade
Secrets''); owned, used, or licensed by the Company and each Subsidiary as licensee or licensor.

 

(ii)         Agreements.
There are no outstanding and, to Company’s knowledge, no threatened disputes or disagreements with respect to any agreements
relating to any Intellectual Property Rights to which the Company is a party or by which the Company is bound.

 

(iii)        Know-How
Necessary for the Business. To the Company’s knowledge, the Intellectual Property Rights are all those necessary for
the operation of the Company’s businesses as it is currently conducted or as represented, in writing, to the Purchaser to
be conducted. The Company is the owner of all right, title, and interest in and to each of the Intellectual Property Rights, free
and clear of all liens, other than Permitted Liens, security interests, charges, encumbrances, equities, and other adverse claims,
and has the right to use all of the Intellectual Property Rights. To the Company’s knowledge, no employee of the Company
has entered into any contract that restricts or limits in any way the scope or type of work in which the employee may be engaged
or requires the employee to transfer, assign, or disclose information concerning his work to anyone other than of the Company.

 

(iv)        Patents.
The Company is the owner of all right, title and interest in and to each of the Patents, free and clear of all Liens, other than
Permitted Liens, and other adverse claims. All of the issued Patents are currently in compliance with formal legal requirements
(including payment of filing, examination, and maintenance fees and proofs of working or use), are valid and enforceable, and are
not subject to any maintenance fees or taxes or actions falling due within ninety days after the Closing Date. No Patent has been
or is now involved in any interference, reissue, reexamination, or opposition proceeding. To the Company’s knowledge: (1)
there is no potentially interfering patent or patent application of any third party, and (2) no Patent is infringed or has been
challenged or threatened in any way. To the Company’s knowledge, none of the products manufactured and sold, nor any process
or know-how used, by the Company infringes or is alleged to infringe any patent or other proprietary right of any other Person.

 

(v)         Trademarks.
The Company is the owner of all right, title, and interest in and to each of the Marks, free and clear of all Liens, other than
Permitted Liens, and other adverse claims. All Marks that have been registered with the United States Patent and Trademark Office
are currently in compliance with all formal legal requirements (including the timely post-registration filing of affidavits of
use and incontestability and renewal applications), are valid and enforceable, and are not subject to any maintenance fees or taxes
or actions falling due within ninety days after the Closing Date. No Mark has been or is now involved in any opposition, invalidation,
or cancellation and, to the Company’s knowledge, no such action is threatened with respect to any of the Marks. To the Company’s
knowledge: (1) there is no potentially interfering trademark or trademark application of any third party, and (2) no Mark is infringed
or has been challenged or threatened in any way. To the Company’s knowledge, none of the Marks used by the Company infringes
or is alleged to infringe any trade name, trademark, or service mark of any third party.

 

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(vi)        Copyrights.
The Company is the owner of all right, title, and interest in and to each of the Copyrights, free and clear of all Liens, other
than Permitted Liens, and other adverse claims. All the Copyrights have been registered and are currently in compliance with formal
requirements, are valid and enforceable, and are not subject to any maintenance fees or taxes or actions falling due within ninety
days after the date of the Closing. No Copyright is infringed or, to the Company’s knowledge, has been challenged or threatened
in any way. To the Company’s knowledge, none of the subject matter of any of the Copyrights infringes or is alleged to infringe
any copyright of any third party or is a derivative work based on the work of a third party. All works encompassed by the Copyrights
have been marked with the proper copyright notice.

 

(vii)       Trade
Secrets. With respect to each Trade Secret, the documentation relating to such Trade Secret is current, accurate, and sufficient
in detail and content to identify and explain it and to allow its full and proper use without reliance on the knowledge or memory
of any individual. The Company has taken all reasonable precautions to protect the secrecy, confidentiality, and value of its Trade
Secrets, subject to Permitted Liens. The Company has good title and an absolute (but not necessarily exclusive) right to use the
Trade Secrets. The Trade Secrets are not part of the public knowledge or literature, and, to the Company’s knowledge, have
not been used, divulged, or appropriated either for the benefit of any Person (other the Company) or to the detriment of the Company.
No Trade Secret is subject to any adverse claim or has been challenged or threatened in any way.

 

(p)          Insurance.
The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and
in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including,
but not limited to, directors and officers insurance coverage at least equal to the aggregate Subscription Amount. Neither the
Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when
such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without
a significant increase in cost.

 

(q)          Transactions
With Affiliates and Employees. Except as set forth in the SEC Reports, none of the officers or directors of the Company or
any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party
to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments
to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director,
or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case
in excess of $100,000 other than for: (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses
incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option plan
of the Company except as disclosed on Schedule 3.1(g).

 

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(r)          Sarbanes-Oxley;
Internal Accounting Controls. The Company and the Subsidiaries are in material compliance with any and all applicable requirements
of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated
by the Commission thereunder that are effective as of the date hereof and as of the Closing Date except as disclosed in the Company’s
SEC Reports. The Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable
assurance that: (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability,
(iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences. The Company and the Subsidiaries have established disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and the Subsidiaries and designed such disclosure controls and procedures
to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is
recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. The
Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures of the Company and
the Subsidiaries as of the end of the period covered by the most recently filed periodic report under the Exchange Act (such date,
the “Evaluation Date”). The Company presented in its most recently filed periodic report under the Exchange
Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their
evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the internal control over financial
reporting (as such term is defined in the Exchange Act) of the Company and its Subsidiaries that have materially affected, or is
reasonably likely to materially affect, the internal control over financial reporting of the Company and its Subsidiaries.

 

(s)          Certain
Fees. Except as set forth on Schedule 3.1(s), no brokerage, finder’s fees, commissions or due diligence fees are
or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment
banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The Purchasers shall have
no obligation with respect to any such fees or with respect to any claims made by or on behalf of other Persons for fees of a type
contemplated in this Section 3.1(s) that may be due in connection with the transactions contemplated by the Transaction Documents.

 

(t)          Investment
Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will
not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as
amended. The Company shall conduct its business in a manner so that it will not become an “investment company” subject
to registration under the Investment Company Act of 1940, as amended.

 

(u)          Registration
Rights. No Person, other than the Purchasers and the Persons listed on Schedule 3.1(u), has any right to cause the Company
or any Subsidiary to effect the registration under the Securities Act of any securities of the Company or any Subsidiary.

 

(v)         Reporting
Company/Shell Company. The Company is a publicly-held company subject to reporting obligations pursuant to Sections 12(g) and
13 of the Exchange Act. Pursuant to the provisions of the Exchange Act, except as set forth on Schedule 3.1(v), the Company
has timely filed all reports and other materials required to be filed by the Company thereunder with the SEC during the preceding
twelve months. As of the Closing Date, the Company is not a “shell company”, nor a former “shell company”
as those terms are employed in Rule 144 under the Securities Act. The Company is, and has no reason to believe that it will not
in the foreseeable future continue to be in compliance with all such listing and maintenance requirements.

 

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(w)          Application
of Takeover Protections. The Company and the Board of Directors will have taken as of the Closing Date all necessary action,
if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution
under a rights agreement) or other similar anti-takeover provision under the Company’s certificate of incorporation (or similar
charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchasers as a result of
the Purchasers and the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including
without limitation as a result of the Company’s issuance of the Securities and the Purchasers’ ownership of the Securities.

 

(x)          Disclosure.
Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company
confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel
with any information that it believes constitutes or might constitute material, non-public information. The Company understands
and confirms that the Purchasers will rely on the foregoing representation in effecting transactions in securities of the Company.
All of the disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company and its Subsidiaries, their
respective businesses and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, when taken
together as a whole, is true and correct and does not contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading.
The press releases disseminated by the Company during the twelve months preceding the date of this Agreement taken as a whole do
not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary
in order to make the statements therein, in light of the circumstances under which they were made and when made, not misleading.
The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions
contemplated hereby other than those specifically set forth in Section 3.2 hereof.

 

(y)          No
Integrated Offering. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2,
neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made
any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering
of the Securities to be integrated with prior offerings by the Company for purposes of: (i) the Securities Act which would require
the registration of any such securities under the Securities Act, or (ii) any applicable shareholder approval provisions of any
Trading Market on which any of the securities of the Company are listed or designated. 

 

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(z)          Solvency.
Based on the consolidated financial condition of the Company as of the Closing Date, and the Company’s good faith estimate
of the fair market value of its assets, after giving effect to the receipt by the Company of the proceeds from the sale of the
Securities hereunder: (i) the fair saleable value of the Company’s assets exceeds the amount that will be required to be
paid on or in respect of the Company’s existing debts and other liabilities (including known contingent liabilities) as they
mature, (ii) the Company’s assets do not constitute unreasonably small capital to carry on its business as now conducted
and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business
conducted by the Company, consolidated and projected capital requirements and capital availability thereof, and (iii) the current
cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking
into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when
such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature
(taking into account the timing and amounts of cash to be payable on or in respect of its debt). The Company has no knowledge of
any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or
reorganization laws of any jurisdiction within one year from the Closing Date. Schedule 3.1(z) sets forth as of the date
hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary
has commitments. For the purposes of this Agreement, “Indebtedness” means (x) any liabilities for borrowed money
or amounts owed in excess of $250,000 in the aggregate (other than trade accounts payable incurred in the ordinary course of business),
(y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or not the same
are or should be reflected in the Company’s consolidated balance sheet (or the notes thereto), except guaranties by endorsement
of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (z) the present
value of any lease payments in excess of $250,000 due under leases required to be capitalized in accordance with GAAP. Neither
the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

(aa)         Tax
Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a
Material Adverse Effect and those listed in Schedule 3.1(b), the Company and its Subsidiaries each (i) has made or filed
all United States federal, state and local income and all foreign income and franchise tax returns, reports and declarations required
by any jurisdiction to which it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material
in amount, shown or determined to be due on such returns, reports and declarations and (iii) has set aside on its books provision
reasonably adequate for the payment of all material taxes for periods subsequent to the periods to which such returns, reports
or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction,
and the officers of the Company or of any Subsidiary know of no basis for any such claim.

 

(bb)         Foreign
Corrupt Practices. Neither the Company nor any Subsidiary, nor to the knowledge of the Company or any Subsidiary, any agent
or other person acting on behalf of the Company or any Subsidiary, has: (i) directly or indirectly, used any funds for unlawful
contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any
unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns
from corporate funds, (iii) failed to disclose fully any contribution made by the Company or any Subsidiary (or made by any person
acting on its behalf of which the Company is aware) which is in violation of law or (iv) violated in any material respect any provision
of FCPA.

 

(cc)         Accountants.
The Company’s accounting firm is set forth on Schedule 3.1(cc) of the Disclosure Schedules. To the knowledge and belief
of the Company, such accounting firm: (i) is a registered public accounting firm as required by the Exchange Act and (ii) shall
express its opinion with respect to the financial statements to be included in the Company’s Annual Report for the fiscal
year ending December 31, 2013.

 

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(dd)         Acknowledgment
Regarding Purchasers’ Purchase of Securities. The Company acknowledges and agrees that each of the Purchasers is acting
solely in the capacity of an arm’s length purchaser with respect to the Transaction Documents and the transactions contemplated
thereby. The Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given
by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions
contemplated thereby is merely incidental to the Purchasers’ purchase of the Securities. The Company further represents to
each Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents has been based
solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

 

(ee)         Acknowledgment
Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the contrary notwithstanding
(except for Sections 3.2(e) and 4.16 hereof), it is understood and acknowledged by the Company that: (i) none of the Purchasers
has been asked by the Company to agree, nor has any Purchaser agreed, to desist from purchasing or selling, long and/or short,
securities of the Company, or “derivative” securities based on securities issued by the Company or to hold the Securities
for any specified term, (ii) past or future open market or other transactions by any Purchaser, specifically including, without
limitation, Short Sales or “derivative” transactions, before or after the closing of this or future private placement
transactions, may negatively impact the market price of the Company’s publicly-traded securities, (iii) any Purchaser, and
counter-parties in “derivative” transactions to which any such Purchaser is a party, directly or indirectly, may presently
have a “short” position in the Common Stock and (iv) each Purchaser shall not be deemed to have any affiliation with
or control over any arm’s length counter-party in any “derivative” transaction.
The Company further understands and acknowledges that (y) one or more Purchasers may engage in hedging activities
at various times during the period that the Securities are outstanding, including, without limitation, during the periods that
the value of the Underlying Shares deliverable with respect to Securities are being determined, and (z) such hedging activities
(if any) could reduce the value of the existing stockholders' equity interests in the Company at and after the time that the hedging
activities are being conducted.  The Company acknowledges that such aforementioned hedging activities do not constitute a
breach of any of the Transaction Documents, provided that such activities do not breach the Purchasers’ representations
made in Section 3.2 of this Agreement. There are no disagreements of any kind presently existing, or reasonably anticipated by
the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company and the
Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company’s ability
to perform any of its obligations under any of the Transaction Documents.

 

(ff)         Regulation
M Compliance.  The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly,
any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate
the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of,
any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other
securities of the Company.

 

(gg)         Money
Laundering. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with
applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the “Money
Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body
or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge
of the Company or any Subsidiary, threatened.

 

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(hh)         Stock
Option Plans. Each stock option granted by the Company under the stock option plan was granted (i) in accordance with the terms
of such stock option plan and (ii) with an exercise price at least equal to the fair market value of the Common Stock on the date
such stock option would be considered granted under GAAP and applicable law. No stock option granted under any stock option plan
has been backdated. The Company has not knowingly granted, and there is no and has been no Company policy or practice to knowingly
grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the release or other public announcement
of material information regarding the Company or its Subsidiaries or their financial results or prospects. 

 

(ii)         Office
of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the Company's knowledge, any director, officer, agent,
employee or affiliate of the Company is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control
of the U.S. Treasury Department (“OFAC”).

 

(jj)         Private
Placement. Assuming the accuracy of the Purchasers’ representations and warranties set forth in Section 3.2, no registration
under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated
hereby. The issuance and sale of the Securities hereunder does not contravene the rules and regulations of the Trading Market.

 

(kk)         No
General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Securities
by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to the Purchasers
and certain other “accredited investors” within the meaning of Rule 501 under the Securities Act.

 

(ll)         Indebtedness
and Seniority. As of the date hereof, all Indebtedness and Liens are as set forth on Schedule 3.1(ll). Except as set
forth on Schedule 3.1(ll), as of the Closing Date, no Indebtedness or other equity of the Company is senior to the Notes
in right of payment, whether with respect to interest or upon liquidation or dissolution, or otherwise, other than indebtedness
secured by purchase money security interests (which is senior only as to underlying assets covered thereby) and capital lease obligations
(which is senior only as to the property covered thereby).

 

(mm)         Listing
and Maintenance Requirements.  The Common Stock is quoted on the OTCBB under the symbol VUZI. The Company has not, in
the twenty-four (24) months preceding the date hereof, received notice from any Trading Market on which the Common Stock is or
has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such
Trading Market.

 

(nn)         Survival.
The foregoing representations and warranties shall survive the Closing Date.

 

3.2           Representations
and Warranties of the Purchasers. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as
of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein):

 

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

 

(b)          Understandings
or Arrangements. Such Purchaser understands that the Securities are “restricted securities” and have not been registered
under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account
and not with a view to or for distributing or reselling such Securities or any part thereof in violation of the Securities Act
or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities
Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to
distribute or regarding the distribution of such Securities in violation of the Securities Act or any applicable state securities
law (this representation and warranty not limiting such Purchaser’s right to sell the Securities pursuant to a registration
statement or otherwise in compliance with applicable federal and state securities laws). Such Purchaser is acquiring the Securities
hereunder in the ordinary course of its business.

 

(c)          Purchaser
Status. At the time such Purchaser was offered the Securities, it was, and as of the date hereof it is, and on each date on
which it converts any Notes it will be either: (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3),
(a)(7) or (a)(8) under the Securities Act or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under
the Securities Act. Such Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act. Such
Purchaser has the authority and is duly and legally qualified to purchase and own the Securities. Such Purchaser is able to bear
the risk of such investment for an indefinite period and to afford a complete loss thereof. Such Purchaser has provided the information
in the Accredited Investor Questionnaire attached hereto as Exhibit D (the “Investor Questionnaire”).
The information set forth on the signature pages hereto and the Investor Questionnaire regarding such Purchaser is true and complete
in all respects. Except as disclosed in the Investor Questionnaire, such Purchaser has had no position, office or other material
relationship within the past three years with the Company or Persons (as defined below) known to such Purchaser to be affiliates
of the Company, and is not a member of the Financial Industry Regulatory Authority or an “associated person” (as such
term is defined under the FINRA Membership and Registration Rules Section 1011).

 

(d)          Experience
of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment
in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk
of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

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(e)          Information
on Company. Such Purchaser has been furnished with or has had access to the EDGAR Website of the Commission to the Company’s
filings made with the Commission during the period from the date that is two years preceding the date hereof through the tenth
business day preceding the Closing Date in which such Purchaser purchases Securities hereunder, including the Company’s Annual
Report on Form 10-K filed with the Commission on April 9, 2014 together with the Closing Form 8-K (hereinafter referred to collectively
as the “Reports”).  Purchasers are not deemed to have any knowledge of any information not
included in the Reports unless such information is delivered in the manner described in the next sentence.  In addition,
such Purchaser may have received in writing from the Company such other information concerning its operations, financial condition
and other matters as such Purchaser has requested, identified thereon as OTHER WRITTEN INFORMATION (such other information is collectively,
the “Other Written Information”), and considered all factors such Purchaser deems material in deciding on the
advisability of investing in the Securities.  Such Purchaser was afforded (i) the opportunity to ask such questions as
such Purchaser deemed necessary of, and to receive answers from, representatives of the Company concerning the merits and risks
of acquiring the Securities; (ii) the right of access to information about the Company and its financial condition, results of
operations, business, properties, management and prospects sufficient to enable such Purchaser to evaluate the Securities; and
(iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort
or expense that is necessary to make an informed investment decision with respect to acquiring the Securities.

 

(f)          Compliance
with Securities Act; Reliance on Exemptions. Such Purchaser understands and agrees that the Securities have not been registered
under the 1933 Act or any applicable state securities laws, by reason of their issuance in a transaction that does not require
registration under the 1933 Act, and that such Securities must be held indefinitely unless a subsequent disposition is registered
under the 1933 Act or any applicable state securities laws or is exempt from such registration. Such Purchaser understands and
agrees that the Securities are being offered and sold to such Purchaser in reliance on specific exemptions from the registration
requirements of United States federal and state securities laws and regulations and that the Company is relying in part upon the
truth and accuracy of, and such Purchaser’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility
of such Purchaser to acquire the Securities.

 

(g)          Communication
of Offer. Such Purchaser is not purchasing the Securities as a result of any “general solicitation” or “general
advertising,” as such terms are defined in Regulation D, which includes, but is not limited to, any advertisement, article,
notice or other communication regarding the Securities published in any newspaper, magazine or similar media or on the internet
or broadcast over television, radio or the internet or presented at any seminar or any other general solicitation or general advertisement.

 

(h)          No
Governmental Review. Such Purchaser understands that no United States federal or state agency or any other governmental or
state agency has passed on or made recommendations or endorsement of the Securities or the suitability of the investment in the
Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

 

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(i)          No
Conflicts. The execution, delivery and performance of this Agreement and performance under the other Transaction Documents
and the consummation by such Purchaser of the transactions contemplated hereby and thereby or relating hereto or thereto do not
and will not (i) result in a violation of such Purchaser’s charter documents, bylaws or other organizational documents, if
applicable, (ii) conflict with nor constitute a default (or an event which with notice or lapse of time or both would become a
default) under any agreement to which such Purchaser is a party, nor (iii) result in a violation of any law, rule, or regulation,
or any order, judgment or decree of any court or governmental agency applicable to such Purchaser or its properties (except for
such conflicts, defaults and violations as would not, individually or in the aggregate, have a material adverse effect on such
Purchaser). Such Purchaser is not required to obtain any consent, authorization or order of, or make any filing or registration
with, any court or governmental agency in order for it to execute, deliver or perform any of its obligations under this Agreement
or perform under the other Transaction Documents nor to purchase the Securities in accordance with the terms hereof, provided that
for purposes of the representation made in this sentence, such Purchaser is assuming and relying upon the accuracy of the relevant
representations and agreements of the Company herein.

 

(j) Certain
Transactions and Confidentiality. Other than consummating the transactions contemplated hereunder, such Purchaser has not directly
or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, executed any purchases
or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that such Purchaser
first received a written term sheet from the Company or any other Person representing the Company setting forth the material terms
of the transactions contemplated hereunder and ending immediately prior to the execution hereof. Notwithstanding the foregoing,
in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions
of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio
managers managing other portions of such Purchaser’s assets, the representation set forth above shall only apply with respect
to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered
by this Agreement.

 

(k)          Survival.
The foregoing representations and warranties shall survive the Closing Date.

 

The Company acknowledges and agrees that
the representations contained in Section 3.2 shall not modify, amend or affect such Purchaser’s right to rely on the Company’s
representations and warranties contained in this Agreement or any representations and warranties contained in any other Transaction
Document or any other document or instrument executed and/or delivered in connection with this Agreement or the consummation of
the transaction contemplated hereby.

 

ARTICLE IV.

 

OTHER AGREEMENTS OF THE PARTIES

 

4.1           Transfer
Restrictions.

 

(a)          The
Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities
other than pursuant to an effective registration statement or Rule 144, to the Company or to an Affiliate of a Purchaser or in
connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company,
at the Company’s expense, an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the
form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not
require registration of such transferred Securities under the Securities Act. As a condition of transfer, any such transferee shall
agree in writing to be bound by the terms of this Agreement, and the Registration Rights Agreement and shall have the rights and
obligations of a Purchaser under this Agreement and the Registration Rights Agreement.

 

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(b)          The
Purchasers agree to the imprinting, so long as is required by this Section 4.1, of a legend on any of the Securities in the following
form:

 

“NEITHER THIS SECURITY
NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL
TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. TO THE EXTENT PERMITTED
BY APPLICABLE SECURITIES LAWS, THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED
INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.”

 

The Company
acknowledges and agrees that a Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a registered
broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an “accredited
investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions of this Agreement
and the Registration Rights Agreement and, if required under the terms of such arrangement, such Purchaser may transfer pledge
or secure Securities to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval of the Company
and no legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith. Further,
no notice shall be required of such pledge. At the appropriate Purchaser’s expense, the Company will execute and deliver
such reasonable documentation as a pledgee or secured party of Securities may reasonably request in connection with a pledge or
transfer of the Securities, including, if the Securities are subject to registration pursuant to the Registration Rights Agreement,
the preparation and filing of any required prospectus supplement under Rule 424(b)(3) under the Securities Act or other applicable
provision of the Securities Act to appropriately amend the list of selling stockholders thereunder.

 

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(c)          Certificates
evidencing the Underlying Shares shall not contain any legend (including the legend set forth in Section 4.1(b) hereof): (i) following
any sale of such Underlying Shares pursuant to Rule 144, (ii) if such Underlying Shares are eligible for sale under Rule 144, without
the requirement for the Company to be in compliance with the current public information required under Rule 144 as to such Underlying
Shares and without volume or manner-of-sale restrictions or (iii) if such legend is not required under applicable requirements
of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission). The Company
shall cause its counsel to issue a legal opinion to the Transfer Agent promptly after the Legend Removal Date if required by the
Transfer Agent to effect the removal of the legend hereunder upon the occurrence of the sale of the Shares. If all or any Notes
are converted at a time when there is an effective registration statement to cover the resale of the Underlying Shares, or if such
Underlying Shares may be sold under Rule 144 without the requirement for the Company to be in compliance with the current public
information and any other limitations or requirements set forth in Rule 144,including, without limitation, volume or manner of
sale restrictions, or if such legend is not otherwise required under applicable requirements of the Securities Act (including judicial
interpretations and pronouncements issued by the staff of the Commission) then such Underlying Shares shall be reissued without
the legends. The Company agrees that following the Legend Removal Date or such time as such legend is no longer required under
this Section 4.1(c), it will, no later than seven Trading Days following the delivery by a Purchaser to the Company or the Transfer
Agent of a certificate representing Underlying Shares, as applicable, issued with a restrictive legend, together with any reasonable
certifications requested by the Company, the Company’s counsel or the Transfer Agent (such seventh Trading Day, the “Legend
Removal Date”), deliver or cause to be delivered to such Purchaser a certificate representing such shares that is free
from all restrictive and other legends. The Company may not make any notation on its records or give instructions to the Transfer
Agent that enlarge the restrictions on transfer set forth in this Section 4. Certificates for Underlying Shares subject to legend
removal hereunder shall be transmitted by the Transfer Agent to the Purchaser by crediting the account of the Purchaser’s
prime broker with the Depository Trust Company System as directed by such Purchaser.

 

(d)          In
addition to such Purchaser’s other available remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated
damages and not as a penalty, for each $1,000 of Underlying Shares (based on the higher of the actual purchase price or VWAP of
the Common Stock on the date such Securities are submitted to the Transfer Agent) delivered for removal of the restrictive legend
and subject to Section 4.1(c), $10 per Trading Day for each Trading Day after the Legend Removal Date until such certificate is
delivered without a legend. Nothing herein shall limit such Purchaser’s right to pursue actual damages for the Company’s
failure to deliver certificates representing any Securities as required by the Transaction Documents, and such Purchaser shall
have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief.         

 

(e)          DWAC.
In lieu of delivering physical certificates representing the Unlegended Shares, upon request of a Purchaser, so long as the certificates
therefor do not bear a legend and the Purchaser is not obligated to return such certificate for the placement of a legend thereon,
the Company shall cause its transfer agent to electronically transmit the Unlegended Shares by crediting the account of Purchaser’s
prime broker with the Depository Trust Company through its Deposit Withdrawal At Custodian system, provided that the Company’s
Common Stock is DTC eligible and the Company’s transfer agent participates in the Deposit Withdrawal at Custodian system.
Such delivery must be made on or before the Legend Removal Date.

 

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(f)          Injunction.
In the event a Purchaser shall request delivery of Unlegended Shares as described in this Section 4.1 and the Company is required
to deliver such Unlegended Shares, the Company may not refuse to deliver Unlegended Shares based on any claim that such Purchaser
or anyone associated or affiliated with such Purchaser has not complied with Purchaser’s obligations under the Transaction
Documents, or for any other reason, unless, an injunction or temporary restraining order from a court, on notice, restraining and
or enjoining delivery of such Unlegended Shares shall have been sought and obtained by the Company and the Company has posted a
surety bond for the benefit of such Purchaser in the amount of the greater of (i) 120% of the amount of the aggregate purchase
price of the Underlying Shares to be subject to the injunction or temporary restraining order, or (ii) the VWAP of the Common Stock
on the trading day before the issue date of the injunction multiplied by the number of Unlegended Shares to be subject to the injunction,
which bond shall remain in effect until the completion of arbitration/litigation of the dispute and the proceeds of which shall
be payable to such Purchaser to the extent Purchaser obtains judgment in Purchaser’s favor.

 

(g)          Buy-In.
In addition to any other rights available to Purchaser, if the Company fails to deliver to a Purchaser Unlegended Shares as required
pursuant to this Agreement and after the Legend Removal Date the Purchaser, or a broker on the Purchaser’s behalf, purchases
(in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by such Purchaser of the
shares of Common Stock which the Purchaser was entitled to receive in unlegended form from the Company (a “Buy-In”),
then the Company shall promptly pay in cash to the Purchaser (in addition to any remedies available to or elected by the Purchaser)
the amount, if any, by which (A) the Purchaser’s total purchase price (including brokerage commissions, if any) for the shares
of Common Stock so purchased exceeds (B) the aggregate purchase price of the shares of Common Stock delivered to the Company for
reissuance as Unlegended Shares together with interest thereon at a rate of 15% per annum accruing until such amount and any accrued
interest thereon is paid in full (which amount shall be paid as liquidated damages and not as a penalty). For example, if a Purchaser
purchases shares of Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to $10,000 of purchase
price of Shares delivered to the Company for reissuance as Unlegended Shares, the Company shall be required to pay the Purchaser
$1,000, plus interest, if any. The Purchaser shall provide the Company written notice indicating the amounts payable to the Purchaser
in respect of the Buy-In.

 

(i)          Each
Purchaser, severally and not jointly with the other Purchasers, agrees with the Company that such Purchaser will sell any Securities
pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements,
or an exemption therefrom, and that if Securities are sold pursuant to a Registration Statement, they will be sold in compliance
with the plan of distribution set forth therein, and acknowledges that the removal of the restrictive legend from certificates
representing Securities as set forth in this Section 4.1 is predicated upon the Company’s reliance upon this understanding.

 

4.2           Acknowledgment
of Dilution. The Company acknowledges that the issuance of the Securities may result in dilution of the outstanding shares
of Common Stock, which dilution may be substantial under certain market conditions. The Company further acknowledges that its obligations
under the Transaction Documents, including, without limitation, its obligation to issue the Underlying Shares pursuant to the Transaction
Documents, are unconditional and absolute and not subject to any right of set off, counterclaim, delay or reduction, regardless
of the effect of any such dilution or any claim the Company may have against any Purchaser and regardless of the dilutive effect
that such issuance may have on the ownership of the other stockholders of the Company.

 

4.3           Furnishing
of Information; Public Information.

 

(a)          For
the shorter of (i) three years after the Closing Date or (ii) until the time that Purchaser no longer owns Securities, the Company
covenants to file all periodic reports with the Commission pursuant to Section 15(d) of the Exchange Act or alternatively, if registered
under Section 12(b) or 12(g) of the 1934 Act, maintain the registration of the Common Stock under Section 12(b) or 12(g) of the
Exchange Act and to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports
required to be filed by the Company after the date hereof pursuant to the Exchange Act even if the Company is not then subject
to the reporting requirements of the Exchange Act.

 

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(b)          At
any time commencing on the Closing Date and ending at such time that all of the Securities may be sold without the requirement
for the Company to be in compliance with Rule 144(c)(1) and otherwise without restriction or limitation pursuant to Rule 144, if
the Company shall fail for any reason to satisfy the current public information requirement under Rule 144(c) (a “Public
Information Failure”) then, in addition to such Purchaser’s other available remedies, the Company shall pay to a Purchaser,
in cash, as partial liquidated damages and not as a penalty, by reason of any such delay in or reduction of its ability to sell
the Securities, an amount in cash equal to one percent (1.0%) of the aggregate principal amount of Notes and accrued interest held
by such Purchaser on the day of a Public Information Failure and on every thirtieth (30th) day (pro-rated for periods totaling
less than thirty days) thereafter until the earlier of (a) the date such Public Information Failure is cured and (b) such time
that such public information is no longer required for the Purchasers to transfer the Underlying Shares pursuant to Rule 144. The
payments to which a Purchaser shall be entitled pursuant to this Section 4.3(b) are referred to herein as “Public Information
Failure Payments.” Public Information Failure Payments shall be paid on the earlier of (i) the last day of the calendar
month during which such Public Information Failure Payments are incurred and (ii) the third (3rd) Business Day after the event
or failure giving rise to the Public Information Failure Payments is cured. In the event the Company fails to make Public Information
Failure Payments in a timely manner, such Public Information Failure Payments shall bear interest at the rate of 1.5% per month
(prorated for partial months) until paid in full. Nothing herein shall limit such Purchaser’s right to pursue actual damages
for the Public Information Failure, and such Purchaser shall have the right to pursue all remedies available to it at law or in
equity including, without limitation, a decree of specific performance and/or injunctive relief.

 

4.4           Integration.
The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined
in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require
the registration under the Securities Act of the sale of the Securities or that would be integrated with the offer or sale of the
Securities for purposes of the rules and regulations of any Trading Market such that it would require shareholder approval prior
to the closing of such other transaction unless shareholder approval is obtained before the closing of such subsequent transaction.

 

4.5           Conversion
and Exercise Procedures. The form of Notice of Conversion included in the Notes set forth the totality of the procedures required
of the Purchasers in order to convert the Notes. No additional legal opinion, other information or instructions shall be required
of the Purchasers to convert their Notes other than reasonable information requested by the Transfer Agent or required by applicable
law. The Company shall honor conversions of the Notes and shall deliver Underlying Shares in accordance with the terms, conditions
and time periods set forth in the Transaction Documents.

 

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4.6           Securities
Laws Disclosure; Publicity. The Company shall, by 9:00 a.m. (New York City time) on the fourth (4th) Trading Day
immediately following each Closing Date, issue a press release disclosing the material terms of the transactions contemplated hereby,
and shall file a Current Report on Form 8-K including the Transaction Documents as exhibits thereto within [[one Business Day]]
of the date hereof (“Form 8-K”). A form of the Form 8-K is annexed hereto as Exhibit F. Such Exhibit
F will be identical to the Form 8-K which will be filed with the Commission except for the omission of signatures thereto by
the Company and auditors providing the financial statements. From and after the issuance of such press release and filing of the
Form 8-K, the Company represents to the Purchasers that it shall have publicly disclosed all material, non-public information delivered
to any of the Purchasers by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or
agents in connection with the transactions contemplated by the Transaction Documents. The Company and each Purchaser shall consult
with each other in issuing any other press releases with respect to the transactions contemplated hereby, and neither the Company
nor any Purchaser shall issue any such press release nor otherwise make any such public statement without the prior consent of
the Company, with respect to any press release of any Purchaser, or without the prior consent of each Purchaser, with respect to
any press release of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required
by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or
communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the
name of any Purchaser in any filing with the Commission or any regulatory agency or Trading Market unless the name of such Purchaser
is already included in the body of the Transaction Documents, without the prior written consent of such Purchaser, except: (a)
as required by federal securities law in connection with the filing of final Transaction Documents with the Commission and (b)
as required by the Registration Statement and (c) to the extent such disclosure is required by law or Trading Market regulations,
in which case the Company shall provide the Purchasers with prior notice of such disclosure permitted under this clause (c).

 

4.7           Shareholder
Rights Plan. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that any
Purchaser is an “Acquiring Person” under any control share acquisition, business combination, poison pill (including
any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company,
or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities
under the Transaction Documents or under any other agreement between the Company and the Purchasers.

 

4.8           Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents,
the Company covenants and agrees that neither it, nor any other Person acting on its behalf, will provide any Purchaser or its
agents or counsel with any information that the Company believes constitutes material non-public information, unless prior thereto
such Purchaser shall have entered into a written agreement with the Company regarding the confidentiality and use of such information.
The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in
securities of the Company.

 

4.9           Use
of Proceeds. The Company shall use the net proceeds from the sale of the Securities hereunder for working capital purposes
and shall not use such proceeds: (a) for the satisfaction of any portion of the Company’s debt (other than payment of trade
payables in the ordinary course of the Company’s business and prior practices), (b) for the redemption of any Common Stock
or Common Stock Equivalents, (c) for the settlement of any outstanding litigation or (d) in violation of FCPA or OFAC regulations.
The proceeds of the offering will be employed by the Company substantially for the purposes set forth on Schedule 4.9.

 

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4.10         Indemnification
of Purchasers. Subject to the provisions of this Section 4.10, the Company will indemnify and hold each Purchaser and its directors,
officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a
Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within
the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser
Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or
agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any action instituted against Purchaser
Parties in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate
of such Purchaser Party, with respect to any of the transactions contemplated by the Transaction Documents (unless such action
is based upon a breach of such Purchaser Party’s representations, warranties or covenants under the Transaction Documents
or any agreements or understandings such Purchaser Party may have with any such stockholder or any violations by such Purchaser
Party of state or federal securities laws or any conduct by such Purchaser Party which constitutes fraud, gross negligence, willful
misconduct or malfeasance). If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought
pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right
to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party
shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof has been specifically
authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and
to employ counsel or (iii) in such action there is, in the reasonable opinion of counsel, a material conflict on any material issue
between the position of the Company and the position of such Purchaser Party, in which case the Company shall be responsible for
the reasonable fees and expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser Party
under this Agreement (y) for any settlement by a Purchaser Party effected without the Company’s prior written consent, which
shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent that a loss, claim, damage or liability
is attributable to any Purchaser Party’s breach of its representations, warranties or covenants under the Transaction Documents.
The indemnification required by this Section 4.10 shall be made by periodic payments of the amount thereof during the course of
the investigation or defense, as and when bills are received or are incurred. The indemnity agreements contained herein shall be
in addition to any cause of action or similar right of any Purchaser Party against the Company or others and any liabilities the
Company may be subject to pursuant to law.

 

4.11         Reservation
and Listing of Securities.

 

(a)          The
Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction Documents
in such amount as may then be required to fulfill its obligations in full under the Transaction Documents, but not less than the
Required Minimum.

 

(b)          If,
on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than the Required
Minimum on such date, then the Board of Directors shall amend the Company’s certificate or articles of incorporation to increase
the number of authorized but unissued shares of Common Stock to at least the Required Minimum at such time, as soon as possible
and in any event not later than the 60th day after such date.

 

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(c)          The
Company shall, if applicable: (i) in the time and manner required by the principal Trading Market, prepare and file with such Trading
Market an additional shares listing application covering a number of shares of Common Stock at least equal to the Required Minimum
on the date of such application, (ii) take all steps necessary to cause such shares of Common Stock to be approved for listing
or quotation on such Trading Market as soon as possible thereafter, (iii) provide to the Purchasers evidence of such listing or
quotation and (iv) maintain the listing or quotation of such Common Stock on any date at least equal to the Required Minimum on
such date on such Trading Market or another Trading Market. The Company will then take all action necessary to continue the listing
or quotation and trading of its Common Stock on a Trading Market until at least three years after the Closing Date, and will comply
in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Trading Market
at least until three years after the Closing Date. In the event the aforedescribed listing is not continuously maintained for three
years after the Closing Date (a “Listing Default”), then in addition to any other rights the Purchasers may
have hereunder or under applicable law, on the first day of a Listing Default and on each monthly anniversary of each such Listing
Default date (if the applicable Listing Default shall not have been cured by such date) until the applicable Listing Default is
cured, the Company shall pay to each Purchaser an amount in cash, as partial liquidated damages and not as a penalty, equal to
2% of the aggregate Subscription Amount held by such Purchaser on the day of a Listing Default and on every thirtieth day (pro-rated
for periods less than thirty days) thereafter until the date such Listing Default is cured. If the Company fails to pay any liquidated
damages pursuant to this Section in a timely manner, the Company will pay interest thereon at a rate of 1.5% per month (pro-rated
for partial months) to the Purchaser.

 

4.12         Form
D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation
D and to provide a copy thereof, promptly upon request of any Purchaser. The Company shall take such action as the Company shall
reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchasers
at the Closing under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide
evidence of such actions promptly upon request of any Purchaser.

 

4.13         Subsequent
Equity Sales. From the date hereof until such time as the Notes are no longer outstanding, the Company will not, without the
consent of the Purchasers, enter into any Equity Line of Credit or similar agreement, nor issue nor agree to issue any common stock,
Common Stock Equivalents, floating or Variable Priced Equity Linked Instruments nor any of the foregoing or equity with price reset
rights (subject to adjustment for stock splits, distributions, dividends, recapitalizations and the like) (collectively, the “Variable
Rate Transaction”).   For purposes hereof, “Equity Line of Credit” shall include any
transaction involving a written agreement between the Company and an investor or underwriter whereby the Company has the right
to “put” its securities to the investor or underwriter over an agreed period of time and at an agreed price or price
formula, and “Variable Priced Equity Linked Instruments” shall include: (A) any debt or equity securities which
are convertible into, exercisable or exchangeable for, or carry the right to receive additional shares of Common Stock either (1)
at any conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations
for Common Stock at any time after the initial issuance of such debt or equity security, or (2) with a fixed conversion, exercise
or exchange price that is subject to being reset at some future date at any time after the initial issuance of such debt or equity
security due to a change in the market price of the Company’s Common Stock since date of initial issuance, and (B) any amortizing
convertible security which amortizes prior to its maturity date, where the Company is required or has the option to (or any investor
in such transaction has the option to require the Company to) make such amortization payments in shares of Common Stock which are
valued at a price that is based upon and/or varies with the trading prices of or quotations for Common Stock at any time after
the initial issuance of such debt or equity security (whether or not such payments in stock are subject to certain equity conditions).
 For purposes of determining the total consideration for a convertible instrument (including a right to purchase equity of
the Company) issued, subject to an original issue or similar discount or which principal amount is directly or indirectly increased
after issuance, the consideration will be deemed to be the actual cash amount received by the Company in consideration of the original
issuance of such convertible instrument.

 

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4.14         Equal
Treatment of Purchasers. No consideration (including any modification of any Transaction Document) shall be offered or paid
to any Person to amend or consent to a waiver or modification of any provision of any of this Agreement unless the same consideration
is also offered on a ratable basis to all of the parties to this Agreement. For clarification purposes, this provision constitutes
a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the
Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group
with respect to the purchase, disposition or voting of Securities or otherwise. 

 

4.15         Derivative
Liabilities. Provided the Company has successfully uplisted to a Recognized Stock Exchange (“Uplisting”)
and eliminated from its balance sheet all derivative liabilities, then, for a period of six months following the Uplisting, except
in connection with an Exempt Issuance, the Company undertakes that it will not enter into any transaction which could result in
the Company recognizing a derivative liability.

 

4.16         Capital
Changes. Until the one year anniversary of the Closing Date, the Company shall not undertake a reverse or forward stock split
or reclassification of the Common Stock without 10 days prior written notice to the Purchasers, unless such reverse split is made
in conjunction with the listing of the Common Stock on a national securities exchange.

 

4.17         Certain
Transactions and Confidentiality. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither
it, nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any purchases or sales, including
Short Sales, of any of the Company’s securities during the period commencing with the execution of this Agreement and ending
at such time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release
or Form 8-K as described in Section 4.6.  Each Purchaser, severally and not jointly with the other Purchasers, covenants that
until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company pursuant to the initial
press release or Form 8-K as described in Section 4.6, such Purchaser will maintain the confidentiality of the existence and terms
of this transaction and the information included in the Transaction Documents and the Disclosure Schedules. Notwithstanding the
foregoing, and notwithstanding anything contained in this Agreement to the contrary, the Company expressly acknowledges and agrees
that (i) no Purchaser makes any representation, warranty or covenant hereby that it will not engage in effecting transactions in
any securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced
pursuant to the initial press release or Form 8-K as described in Section 4.6, (ii) no Purchaser shall be restricted or prohibited
from effecting any transactions in any securities of the Company in accordance with applicable securities laws from and after the
time that the transactions contemplated by this Agreement are first publicly announced pursuant to the initial press release or
Form 8-K, and (iii) no Purchaser shall have any duty of confidentiality to the Company or its Subsidiaries after the filing of
the Form 8-K.  Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby
separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct
knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets,
the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made
the investment decision to purchase the Securities covered by this Agreement.

 

4.18         Participation
in Future Financing.

 

(a)          From
the date hereof until the date that is the twelve (12) month anniversary of the Closing Date, upon any proposed issuance by the
Company or any of its Subsidiaries of Common Stock, Common Stock Equivalents for cash consideration, Indebtedness or a combination
thereof, other than (i) a rights offering to all holders of Common Stock (which may include extending such rights offering to holders
of Notes) or (ii) an Exempt Issuance, (a “Subsequent Financing”), the Purchasers shall have the right to participate
in up to an amount of the Subsequent Financing equal to 50% of the Subsequent Financing up to a maximum of an aggregate of $3,000,000
(the “Participation Maximum”) pro rata to each other in proportion to their Subscription Amounts on the same
terms, conditions and price provided for in the Subsequent Financing, unless the Subsequent Financing is an underwritten public
offering, in which case the Company shall offer each Purchaser the right to participate in such public offering when it is lawful
for the Company to do so, but no Purchaser shall be entitled to purchase any particular amount of such public offering.

 

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(b)          At
least five Trading Days prior to the closing of the Subsequent Financing, the Company shall deliver to each Purchaser a written
notice of its intention to effect a Subsequent Financing (“Pre-Notice”), which Pre-Notice shall ask such Purchaser
if it wants to review the details of such financing (such additional notice, a “Subsequent Financing Notice”).
Upon the request of a Purchaser, and only upon a request by such Purchaser, for a Subsequent Financing Notice, the Company shall
promptly, but no later than one (1) Trading Day after such request, deliver a Subsequent Financing Notice to such Purchaser. The
requesting Purchaser shall be deemed to have acknowledged that the Subsequent Financing Notice may contain material non-public
information. The Subsequent Financing Notice shall describe in reasonable detail the proposed terms of such Subsequent Financing,
the amount of proceeds intended to be raised thereunder and the Person or Persons through or with whom such Subsequent Financing
is proposed to be effected and shall include a term sheet or similar document relating thereto as an attachment.

 

(c)          Any
Purchaser desiring to participate in such Subsequent Financing must provide written notice to the Company by not later than 5:30
p.m. (New York City time) on the fifth (5th) Trading Day after all of the Purchasers have received the Pre-Notice that
the Purchaser is willing to participate in the Subsequent Financing, the amount of such Purchaser’s participation, and representing
and warranting that such Purchaser has such funds ready, willing, and available for investment on the terms set forth in the Subsequent
Financing Notice. If the Company receives no such notice from a Purchaser as of such fifth (5th) Trading Day, such Purchaser
shall be deemed to have notified the Company that it does not elect to participate.

 

(d)          If
by 5:30 p.m. (New York City time) on the fifth (5th ) Trading Day after all of the Purchasers have received the Pre-Notice,
notifications by the Purchasers of their willingness to participate in the Subsequent Financing (or to cause their designees to
participate) is, in the aggregate, less than the total amount of the Subsequent Financing, then the Company may affect the remaining
portion of such Subsequent Financing on the terms and with the Persons set forth in the Subsequent Financing Notice.

 

(e)          If
by 5:30 p.m. (New York City time) on the fifth (5th) Trading Day after all of the Purchasers have received the Pre-Notice,
the Company receives responses to a Subsequent Financing Notice from Purchasers seeking to purchase more than the aggregate amount
of the Participation Maximum, each such Purchaser shall have the right to purchase its Pro Rata Portion (as defined below) of the
Participation Maximum.  “Pro Rata Portion” means the ratio of (x) the principal amount of Notes purchased
hereunder by a Purchaser participating under this Section 4.18 and (y) the sum of the aggregate principal amounts of Notes purchased
hereunder by all Purchasers participating under this Section 4.18.

 

(f)          The
Company must provide the Purchasers with a second Subsequent Financing Notice, and the Purchasers will again have the right of
participation set forth above in this Section 4.18, if the Subsequent Financing subject to the initial Subsequent Financing Notice
is not consummated for any reason on the terms set forth in such Subsequent Financing Notice within thirty (30) Trading Days after
the date of the initial Subsequent Financing Notice.

 

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(g)          Notwithstanding
anything to the contrary in this Section 4.18 and unless otherwise agreed to by such Purchaser, the Company shall either confirm
in writing to such Purchaser that the transaction with respect to the Subsequent Financing has been abandoned or shall publicly
disclose its intention to issue the securities in the Subsequent Financing, in either case in such a manner such that such Purchaser
will not be in possession of any material, non-public information, by the tenth (10th) Business Day following delivery of the Subsequent
Financing Notice. If by such tenth (10th) Business Day, no public disclosure regarding a transaction with respect to the Subsequent
Financing has been made, and no notice regarding the abandonment of such transaction has been received by such Purchaser, such
transaction shall be deemed to have been abandoned and such Purchaser shall not be deemed to be in possession of any material,
non-public information with respect to the Company or any of its Subsidiaries.

 

4.19         Maintenance
of Property. The Company shall keep all of its property, which is necessary or useful to the conduct of its business, in good
working order and condition, ordinary wear and tear excepted.

 

4.20         Preservation
of Corporate Existence. The Company shall preserve and maintain its corporate existence, rights, privileges and franchises
in the jurisdiction of its incorporation, and qualify and remain qualified, as a foreign corporation in each jurisdiction in which
such qualification is necessary in view of its business or operations and where the failure to qualify or remain qualified might
reasonably have a Material Adverse Effect upon the financial condition, business or operations of the Company taken as a whole.

 

4.21         Further
Registration Statements. The Company will not, without the consent of a Majority in Interest, file with the Commission or with
state regulatory authorities any registration statements, or amend any already filed registration statement to increase the amount
of Common Stock registered therein, or reduce the price of which such company securities are registered therein, until the expiration
of the “Exclusion Period,” which shall be defined as the 30-day period from the effectiveness of Registration
Statement. The Exclusion Period will be tolled or reinstated, as the case may be, during the pendency of an Event of Default as
defined in the Note.

 

4.22         Reimbursement.
If any Purchaser becomes involved in any capacity in any Proceeding by or against any Person who is a stockholder of the Company
(except as a result of sales, pledges, margin sales and similar transactions by such Purchaser to or with any current stockholder),
solely as a result of such Purchaser’s acquisition of the Securities under this Agreement, the Company will reimburse such
Purchaser for its reasonable legal and other expenses (including the cost of any investigation preparation and travel in connection
therewith) incurred in connection therewith, as such expenses are incurred. The reimbursement obligations of the Company under
this paragraph shall be in addition to any liability which the Company may otherwise have, shall extend upon the same terms and
conditions to any Affiliates of the Purchasers who are actually named in such action, proceeding or investigation, and partners,
directors, agents, employees and controlling persons (if any), as the case may be, of the Purchasers and any such Affiliate, and
shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Company, the
Purchasers and any such Affiliate and any such Person. The Company also agrees that neither the Purchasers nor any such Affiliates,
partners, directors, agents, employees or controlling persons shall have any liability to the Company or any Person asserting claims
on behalf of or in right of the Company solely as a result of acquiring the Securities under this Agreement.

 

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4.23         Purchaser’s
Exercise Limitations. The Company shall not effect any exercise of the rights granted in Sections 4.18 and 4.21 of this Agreement,
and a Purchaser shall not have the right to exercise any portion of such rights granted in Sections 4.18 and 4.21 to the extent
that after giving effect to such exercise, the Purchaser (together with the Purchaser’s Affiliates, and any other Persons
acting as a group together with the Purchaser or any of the Purchaser’s Affiliates), would beneficially own in excess of
the Beneficial Ownership Limitation (as defined in the Note), applied in the manner set forth in the Note.

 

4.24         DTC
Program. At all times that Notes are outstanding, the Company shall use its best efforts to employ as the transfer agent for
the Common Stock a participant in the Depository Trust Company Automated Securities Transfer Program and cause the Common Stock
to be transferable pursuant to such program.

 

ARTICLE V.

MISCELLANEOUS

 

5.1           Termination. 
This Agreement may be terminated by any Purchaser, as to such Purchaser’s obligations hereunder only and without any effect
whatsoever on the obligations between the Company and the other Purchasers, by written notice to the other parties, if the Closing
has not been consummated on or before June 16, 2014; provided, however, that such termination will not affect the
right of any party to sue for any breach by any other party (or parties).

 

5.2           Fees
and Expenses. At the Closing, the Company has agreed to pay G&M for the legal and escrow agent fees in connection with
the Closing of some, but not all, of the Purchasers in the amount of $25,000. Except as expressly set forth in the Transaction
Documents and on Schedule 3.1(s), each party shall pay the fees and expenses of its advisers, counsel, accountants and other
experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and
performance of this Agreement. The Company shall pay all Transfer Agent fees (including, without limitation, any fees required
for same-day processing of any instruction letter delivered by the Company and any conversion or exercise notice delivered by a
Purchaser), stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers.

 

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

 

5.4           Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine,
at the address or number designated below (if delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service,
fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be: (i) if to the Company, to: Vuzix Corporation, 2166 Brighton Henrietta Townline Road, Rochester, NY
14623, Attn: Paul J. Travers, President and Chief Executive Officer, facsimile: 585-359-4172, with a copy by fax only to (which
shall not constitute notice): Sichenzia Ross Friedman Ference LLP, 61 Broadway, 32nd Floor, New York, NY 10006, Attn:
Greg Sichenzia, Esq., facsimile: (212) 930-9725, and (ii) if to the Purchasers, to: the addresses and fax numbers indicated on
the signature pages hereto, with an additional copy by fax only to (which shall not constitute notice): Grushko & Mittman,
P.C., 515 Rockaway Avenue, Valley Stream, New York 11581, facsimile: (212) 697-3575.

 

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5.5           Amendments;
Waivers. No provision of the Transaction Documents may be waived, modified, supplemented or amended except in a written instrument
signed by the Company and the Purchasers holding more than 50% of the outstanding Principal Amount of Notes on the date consent
is requested (such Purchasers being a “Majority in Interest”). No waiver of any default with respect to any
provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any
subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any
party to exercise any right hereunder in any manner impair the exercise of any such right.

 

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

 

5.7           Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
each Purchaser (other than by merger). Following the Closing, any Purchaser may assign any or all of its rights under this Agreement
to any Person to whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be
bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers.”

 

5.8           No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise
set forth in Section 4.10.

 

5.9           Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party
hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced
exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any
dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect
to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any action,
suit or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or
proceeding is improper or is an inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or
certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If either
party shall commence an action or proceeding to enforce any provisions of the Transaction Documents, then, in addition to the obligations
of the Company under Section 4.10, the prevailing party in such action, suit or proceeding shall be reimbursed by the other party
for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution
of such action or proceeding.

 

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5.10         Survival.
The representations and warranties contained herein shall survive the Closing.

 

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

 

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

 

5.13         Rescission
and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of)
any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction
Document and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser
may, at any time prior to the Company’s performance of such obligations, rescind or withdraw, in its sole discretion from
time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice
to its future actions and rights; provided, however, that in the case of a rescission of a conversion of a Note,
the applicable Purchaser shall be required to return any shares of Common Stock subject to any such rescinded conversion notice
concurrently with the return to such Purchaser of the aggregate exercise price paid to the Company for such shares.

 

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

 

5.15         Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of
the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that
monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the
Transaction Documents and hereby agree to waive and not to assert in any action for specific performance of any such obligation
the defense that a remedy at law would be adequate.

 

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5.16         Payment
Set Aside. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document
or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or
exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from,
disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person
under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action),
then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

5.17         Usury.
To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever claim, and
will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or at any
time hereafter in force, in connection with any claim, action or proceeding that may be brought by any Purchaser in order to enforce
any right or remedy under any Transaction Document. Notwithstanding any provision to the contrary contained in any Transaction
Document, it is expressly agreed and provided that the total liability of the Company under the Transaction Documents for payments
in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the “Maximum Rate”),
and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of them, when aggregated
with any other sums in the nature of interest that the Company may be obligated to pay under the Transaction Documents exceed such
Maximum Rate. It is agreed that if the maximum contract rate of interest allowed by law and applicable to the Transaction Documents
is increased or decreased by statute or any official governmental action subsequent to the date hereof, the new maximum contract
rate of interest allowed by law will be the Maximum Rate applicable to the Transaction Documents from the Closing Date thereof
forward, unless such application is precluded by applicable law. If under any circumstances whatsoever, interest in excess of the
Maximum Rate is paid by the Company to any Purchaser with respect to indebtedness evidenced by the Transaction Documents, such
excess shall be applied by such Purchaser to the unpaid principal balance of any such indebtedness or be refunded to the Company,
the manner of handling such excess to be at such Purchaser’s election.

 

5.18         Independent
Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Transaction Document are several
and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance
or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any
other Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers
are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction
Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including, without limitation, the
rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser
to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own separate
legal counsel in its review and negotiation of the Transaction Documents. For reasons of administrative convenience only, each
Purchaser and its respective counsel have chosen to communicate with the Company through G&M. The Company has elected to provide
all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required
or requested to do so by any of the Purchasers. It is expressly understood and agreed that each provision contained in this Agreement
and in each other Transaction Document is between the Company and a Purchaser, solely, and not between the Company and the Purchasers
collectively and not between and among the Purchasers.

 

    	37

    	 

    

  

5.19         Liquidated
Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing under the Transaction
Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other
amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages
or other amounts are due and payable shall have been canceled.

 

5.20         Saturdays,
Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or
granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding
Business Day.

 

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

 

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

 

5.23         Equitable
Adjustment. Trading volume amounts, price/volume amounts and similar figures in the Transaction Documents shall be equitably
adjusted (but without duplication) to offset the effect of stock splits, similar events and as otherwise described in this Agreement.

 

(Signature Pages Follow)

 

    	38

    	 

    

 

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

 

	 	Address for Notice:
	VUZIX CORPORATION	 
	 	2166 Brighton Henrietta Townline Road
	 	Rochester, NY 14623
	 	Fax: 585-359-4172

 

	By:	/s/ Grant Russell	 	 
	 	Name: Grant Russell	 	 
	 	Title: Chief Financial Officer	 	 
	 	 
	With a copy to (which shall not constitute notice):	 
	 	 
	Sichenzia Ross Friedman Ference LLP	 
	61 Broadway, 32nd Floor	 
	New York, NY 10006	 
	Attn: Greg Sichenzia, Esq.	 
	Fax: (212) 930-9725	 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

    	39

    	 

    

  

[PURCHASER
SIGNATURE PAGE TO VUZIX CORPORATION

SECURITIES
PURCHASE AGREEMENT]

 

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

 

 

	Name of Purchaser:  	 

	Signature of Authorized Signatory of Purchaser:  	 

	Name of Authorized Signatory:  	 

	Title of Authorized Signatory:  	 

	Email Address of Authorized Signatory:  	 

	Facsimile Number of Authorized Signatory:  	 

	Address for Notice to Purchaser: 	 

 

	Address for Delivery of Securities to Purchaser (if not same as address for notice):
	 
	Aggregate Closing Subscription Amount: US$                              
	 
	Closing Cash: US$                          
	 
	Closing Note principal amount:                                      
	 
	EIN Number, if applicable, will be provided under separate cover:                                     
	 
	Date:                                          

 

[SIGNATURE PAGES CONTINUE]

 

    	40

    	 

    

 

Schedule
3.1 (a)

 

Subsidiaries

 

Vuzix (Europe) Limited (Incorporated
in United Kingdom)

 

There are currently no other subsidiaries

 

Schedule
3.1(g)

 

	 	 	March 31,	 	 	December 31,	 
	 	 	2014	 	 	2013	 
	 	 	 	 	 	 	 
	Stockholders’ Equity (Deficit)	 	 	 	 	 	 	 	 
	Preferred Stock — $.001 Par Value, 5,000,000 Shares Authorized; 0 Shares Issued and Outstanding in Each Period	 	 	—	 	 	 	—	 
	Common Stock — $.001 Par Value, 700,000,000 Shares Authorized; 10,240,745 Shares Issued and Outstanding March 31, 2014 and 9,600,453 Shares Issued and Outstanding on December 31, 2013	 	 	10,241	 	 	 	9,600	 
	Additional Paid-in Capital	 	 	25,807,574	 	 	 	23,244,639	 
	Accumulated (Deficit)	 	 	(34,780,626	)	 	 	(36,292,532	)
	 	 	 	 	 	 	 	 	 
	Total Stockholders’ Equity (Deficit)	 	 	(8,962,811	)	 	 	(13,038,293	)
	 	 	 	 	 	 	 	 	 
	Total Liabilities and Stockholders’ Deficit	 	 	2,991,878	 	 	$	2,862,121	 

 

Warrants to purchase 6,004,288 shares of
its common stock issued in connection with the equity offering and related debt conversions issued on August 5, 2013. These warrants
have a cashless exercise provision and an exercise price that is subject to adjustment in the event of subsequent equity sales
at a lower purchase price (subject to certain exceptions) along with full-ratchet anti-dilution provisions.

 

Schedule
3.1(n)

 

The following are secured lenders
who do not require written notice except to the extent such lenders will be signing a subordination agreement in connection herewith:

 

		o	Paul Travers

		o	John Burtis

		o	Laura Russell

		o	Craig Travers

		o	Vince Gavieres

		o	William Lee

		o	Kopin Corporation (secured trade payable, intends to repay)

 

Schedule
3.1 (u)

Registration Rights

 

LC Capital Master Fund Ltd. has demand
and piggy back registration regarding their 533,333 warrants exercisable at $7.47 and the shares they would receive (82,881) on
the conversion of their convertible senior note (exercisable at $7.47).

 

Kopin Corporation, Paul Travers, and Grant
Russell all have demand and piggy registration rights related to the shares and warrants issued pursuant to their debt conversions
as part of the Company’s August 5, 2013 public offering. The applicable shares and warrants (exercisable into one common
share at $2.25) are as follows:

		·	Travers is 809,655 shares and 809,655 warrants (upon exercise)

		·	Russell is 364,080 shares and 364,080 warrants (upon exercise)

		·	Kopin is 291,768 shares and 291,768 warrants (upon exercise)

 

Kopin is a non-affiliate of Vuzix and has
held their securities for longer than 6 months and would likely qualify for sale under Rule 144, which eliminate their need to
participate in any future registration statement.

 

    	41

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