Document:

Investor Rights Agreement

 Exhibit 4.1 
 Investor Rights Agreement 
 Dated as of October 13, 2005 
 among 
 Energy XXI Acquisition Corporation
(Bermuda) Limited 
 Sunrise Securities Corp. 
 and 
 Collins Stewart Limited 

 INVESTOR RIGHTS AGREEMENT 
 This Investor Rights Agreement (this “Agreement”) is made and entered into as of 13 October 2005 by and among Energy XXI Acquisition
Corporation (Bermuda) Limited, a Bermudan company (the “Company”), and Sunrise Securities Corp. and Collins Stewart Limited (collectively, the “Placement Agents”), for the benefit of the holders (the
“Holders”) from time to time of the Company’s common shares, par value $.001 per share (the “Common Shares”) and warrants (the “Warrants”), each Warrant for the purchase of one (1) Common
Share. 
 Reference is made to the Company’s Offering Circular, dated 13 October 2005 (the “Offering Circular”),
relating to the offer and sale of fifty million (50,000,000) units (the “Units”), each Unit consisting of one (1) Common Share and two (2) Warrants. For the benefit of the Holders and in consideration of the Placement
Agents entering into a placing agreement with the Company for the placing of the Units, the Company has agreed to provide the investor rights set forth in this Agreement. 
 The parties hereby agree as follows: 
 SECTION 1. DEFINITIONS 
 As used in this Agreement, the following capitalized terms shall have the following meanings: 
 ADR: As defined in Section 2(b) hereof. 
 Commission: The U.S. Securities and Exchange Commission. 
 Exchange Act: The U.S. Securities Exchange Act of 1934, as
amended. 
 NASD: National Association of Securities Dealers, Inc. 
 Offering: The offering of the Units pursuant to the Offering Circular. 
 Person: An individual, partnership, corporation, limited liability company, unincorporated organization, association, joint-stock company, trust,
joint venture, government or any agency or political subdivision thereof or any other entity. 
 Placing Agreement: The placing
agreement between the Company, Sunrise Securities Corp., Collins Stewart and the Company’s directors dated on or about the date of this Agreement. 
 Qualified Business Combination: A business combination which, when combined with the Company’s previous business combinations, results in the release of at least fifty percent (50%) of the initial
amount of the trust fund (as more fully described in the Offering Circular). 
 Securities Act: The U.S. Securities Act of 1933, as
amended.  
 ‘34 Act Liquidated Damages: As defined in Section 5(a) hereof. 
  

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 ‘34 Act Registration Deadline: The date of consummation of a Qualified Business Combination
or, alternatively, in the case where no Qualified Business Combination shall have occurred but a business combination shall have been completed and the balance of the funds in the trust fund have been distributed to the new shareholders, the date of
such distribution. 
 ‘34 Act Registration Default: As defined in Section 4(a) hereof. 
 ‘34 Act Registration Statement: A registration statement of the Company on Form 10 (or such other form which it is appropriate to use to
register the Common Shares or ADRs under the Exchange Act), including all amendments and supplements thereto and all exhibits and material incorporated by reference therein. 
 SECTION 2. EXCHANGE ACT REGISTRATION AND LISTING 
 (a) The Company shall (i) no later than the date that is one hundred eighty (180) days following the ‘34 Act Registration Deadline cause to be filed with the Commission a ‘34 Act Registration Statement, and (ii) use
its commercially reasonable efforts to cause such ‘34 Act Registration Statement to be declared effective on or prior to the date that is two hundred seventy (270) days following the ‘34 Act Registration Deadline. 
 (b) As promptly as practicable after the ‘34 Act Registration Statement shall have been declared effective, the Company shall use its commercially
reasonable efforts to cause the Common Shares or American Depositary Receipts representing Common Shares (“ADRs”) to be authorized to be quoted and/or listed (to the extent applicable) on the American Stock Exchange, the New York Stock
Exchange, the National Association of Securities Dealers, Inc. Automated Quotation System or the Nasdaq National Market (or, in each case, a successor thereto) or a similarly recognized national trading platform, if the Common Shares or ADRs so
qualify. 
 SECTION 3. WARRANT SHARE REGISTRATION 
 (a) The Company shall file with the Commission, no later than the 60th day after the ‘34 Act Registration Statement is declared effective, a shelf registration statement (the “Shelf Registration
Statement”) pursuant to Rule 415 under the Securities Act of 1933, as amended (the “Securities Act”) covering the Common Shares as and when issued upon exercise of the Warrants, including the Warrants underlying that
certain unit purchase option dated October 13, 2005 (“Purchase Option”) issued by the Company to Sunrise Securities Corp. and/or its designees (the “Warrant Shares”). The Company shall (i) use commercially
reasonable efforts to cause the Shelf Registration Statement to be declared effective under the Securities Act no later than 105 days after the ‘34 Act Registration Statement is declared effective unless the Commission reviews such registration
statement in which case the 105 day period shall be increased to 120 days, and (ii) use commercially reasonable efforts to keep the Shelf Registration Statement effective until the earlier of (x) the date when the holders of the Warrants
and the Warrant Shares are able to sell such shares immediately without restriction pursuant to volume limitation provisions of Rule 144 under the Securities Act; and (y) such time as all of the Warrant Shares have been sold either pursuant to
the Shelf Registration Statement or pursuant to Rule 144 under the Securities Act or any similar provision then in force. 
  

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 (b) The Company shall use commercially reasonable efforts to cause the prospectus contained within the
Shelf Registration Statement to be usable for its intended purpose during the Designated Period (as defined below) including filing any amendments and supplements to the Shelf Registration Statement or the prospectus as may be required. The
“Designated Period” shall mean the period beginning two days after the public announcement of quarterly and year-end earnings by the Company and ending 30 days thereafter, provided that the relevant earnings announcement shall in no
event be issued publicly after November 29, March 1, May 30 and October 28, in the case of the first quarter, second quarter, third quarter and fiscal year-end, respectively. 
 (c) The Company may suspend the effectiveness of the Shelf Registration Statement or the use of the prospectus that is part of the Shelf Registration
Statement during specified periods during the Designated Period under certain circumstances relating to pending corporate developments, public filings with the Commission and similar events; provided, that due to concerns about possibly
disseminating material non-public information, the Company need not specify the nature of the event giving rise to a suspension in any notice to holders of the Warrant Shares of the existence of such a suspension. Any such suspension period shall
not exceed an aggregate of 45 days of the Designated Periods in any 360-day period. The number of days during which the Company may have suspended use of the prospectus during the Designated Periods will be added to the end of the Designated Period
with respect to the next one or more successive quarterly periods or, when the prospectus has been appropriately amended or supplemented to reflect the event or events giving rise to a suspension, the amended or supplemented prospectus shall be
delivered to the selling Holders named in the Shelf Registration Statement and they shall have a period of time equal to the number of days during which selling was suspended to sell Warrant Shares using the amended or supplemented prospectus.

 (d) In connection with the preparation of the Shelf Registration Statement, the Company shall mail a questionnaire to all warrantholders
and holders of restricted Warrant Shares of record as of the close of business on the day the ‘34 Act Registration Statement becomes effective. In order to be named as a selling shareholder in the prospectus at the time of effectiveness of the
Shelf Registration Statement, such Holder must complete and deliver the questionnaire to the Company on or prior to the 15th business day after the questionnaire is mailed. Holders not named as selling shareholders therein will not be able to avail
themselves of such Shelf Registration Statement. Accordingly, transferees of warrants or Warrant Shares may not be able to avail themselves of registration; provided, that, every six months after the Shelf Registration Statement becomes effective,
the Company shall mail to all warrantholders of record and holders of restricted Warrant Shares of record a new questionnaire and amend or supplement the Shelf Registration Statement to include those that have duly completed and returned a
questionnaire to the Company. The Company may, in its sole discretion, permit more frequent supplements to the Shelf Registration Statement to include transferees. Failure to timely provide a duly completed questionnaire will result in the
non-responding security holders exclusion from the Shelf Registration Statement or the use of the prospectus that is part of the Shelf Registration Statement. Any Holder who has properly elected to be included in the Shelf Registration Statement
will (i) be required to be named as a selling stockholder in the related prospectus, (ii) be required to deliver a prospectus to purchasers, and (iii) be subject to the civil liability provisions under the Securities Act in connection
with any sales pursuant to such Shelf Registration Statement. 
  

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 SECTION 4. “PIGGYBACK” REGISTRATIONS 
 (a) If at any time the Company shall propose to register under the Securities Act (other than pursuant to Sections 2 and 3 of this Agreement) any of its
Common Shares for the account of its Existing Shareholders (as defined in the Offering Circular), it will promptly give written notice to all Holders of Common Shares that are (i) holders of Common Shares bearing a restrictive legend that are
not freely saleable in the United States under Rule 144(k) of the Securities Act, and (ii) that are known by the Company to be affiliates of the Company (other than officers and directors of the Company) (such Common Shares hereinafter referred
to as “Registrable Shares”) of its intention so to do. Upon the written request of any such holder, received by the Company within 20 days after the giving of any such notice by the Company, to register any or all of its Registrable
Shares, the Company will use its reasonable best efforts to cause the Registrable Shares as to which registration shall have been so requested to be included in the securities to be covered by the registration statement proposed to be filed by the
Company, all to the extent requisite to permit the sale or other disposition by the holder (in accordance with its written request) of such Registrable Shares so registered. 
 (b) If the registration of which the Company gives notice as provided above is for a registered public offering involving an underwriting, the Company
shall so advise the Holders of Registrable Shares as a part of the written notice given pursuant to this Section 4. In such event, the right of any Holder of Registrable Shares to registration pursuant to this Section 4 shall be
conditioned upon such Holder’s participation in such underwriting to the extent provided herein. All Holders of Registrable Shares proposing to distribute their securities through such underwriting shall (together with the Common Shares to be
registered by the Company in such registration (the “Other Shareholders”)) enter into an underwriting agreement in customary form with the underwriter or underwriters selected for underwriting by the Company. If any Holder of
Registrable Shares disapproves of the terms of any such underwriting, it may elect to withdraw therefrom by written notice to the Company and the underwriter. Any Registrable Shares or other securities excluded or withdrawn from such underwriting
shall be withdrawn from such registration. 
 (c) Notwithstanding any other provision of this Section 4, if the underwriter determines
that marketing factors require a limitation on the number of shares to be underwritten, the underwriter may exclude from such registration and underwriting all or a portion of the Registrable Shares which would otherwise be underwritten pursuant to
this Section 4. The Company shall so advise all Holders of securities requesting registration of any limitations on the number of shares to be underwritten and the number of shares of securities that are entitled to be included in the
registration; provided, that the number of shares to be underwritten shall be allocated pro rata among all Holders of Registrable Shares and the Existing Shareholders in proportion, as nearly as practicable, to the respective amounts of Registrable
Shares owned by them. 
 SECTION 5. LIQUIDATED DAMAGES 
 (a) If the ‘34 Act Registration Statement shall not have been declared effective on or prior to the date that is two hundred seventy (270) days following the ‘34 Act Registration Deadline (a
“‘34 Act Registration Default”), the Company shall, as promptly as practicable and in no event later than two (2) days following the end of the month in which such ‘34 Act Registration Default occurred, pay to each
Holder of Common Shares liquidated damages (“‘34 Act Liquidated Damages”) in the form of Common Shares in an amount equal to 0.5% of the number of such Holder’s Common Shares held on the date of such ‘34 Act
Registration Default; provided, that a Holder shall be paid ‘34 Act Liquidated Damages only with respect to (i) any Common Shares that were acquired by such Holder upon the 

  

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consummation of the Offering or subsequent to the Offering (if such Common Shares were originally offered as part of the Offering) and (ii) any Common
Shares that were acquired by such Holder pursuant to the exercise of the Purchase Option. The Company shall pay additional ‘34 Act Liquidated Damages within two days of the end of each month until the ‘34 Act Registration Default shall
have been cured; provided that a pro rata portion of the ‘34 Act Liquidated Damages shall be paid with respect to any month in which the Company shall have been in ‘34 Act Registration Default for a portion of such month; and
provided, further, that ‘34 Act Liquidated Damages shall be payable for a maximum period of twelve (12) months following the occurrence of the ‘34 Act Registration Default. 
 (b) Each of the following is hereafter referred to as a “Warrant Registration Default”: (i) the Shelf Registration Statement has not been
filed with the Commission within 60 days after the ‘34 Act Registration Statement is declared effective; or (ii) the Shelf Registration Statement has not been declared effective prior to or on the 105th day or the 120th day, as applicable, following the day the ‘34 Act Registration Statement is declared effective (the
“Effectiveness Target Date”); or (iii) at any time after the Shelf Registration Statement becomes effective the Shelf Registration Statement ceases to be effective or fails to be usable and (x) the Company does not cure
such failure by the start of the next Designated Period by a post-effective amendment, prospectus supplement or report filed pursuant to the Exchange Act, and (y) the period during the Designated Period of the suspension period, when aggregated
with other suspension periods during Designated Periods for the prior 360-day period, aggregates more than 45 days. 
 (c) If a Warrant
Registration Default occurs, liquidated damages will accrue from and including the day following the Warrant Registration Default to but excluding the earlier of (i) the day on which the Warrant Registration Default has been cured, and
(ii) the date the Shelf Registration Statement is no longer required to be kept effective. Liquidated damages pursuant to a Warrant Registration Default shall be (w) paid to each Holder of Warrants in the form of Common Shares in an amount
equal to 0.5% of the number of Common Shares underlying each Warrant Holder’s Warrants; (x) payable promptly after the occurrence of the Warrant Registration Default, but in no event later than two days after the end of the month in which
the Warrant Registration Default occurred; (y) payable within two days of the end of each month, until the Warrant Registration Default has been cured, provided that a pro rata payment shall be made with respect to a month, a portion of which,
the Company has been in default; and (z) payable for a maximum of the lesser of (1) 12 months, or (2) a number of months equal to 12 minus the number of months for which the Company has paid ‘34 Act Liquidated Damages.

 Notwithstanding any other provision of this Agreement, the liquidated damages contemplated in this Section 5 shall be the sole and
exclusive remedy available to the Holders in the event of any failure by the Company to comply with the terms of this Agreement. 
 SECTION
6. CURRENT PUBLIC INFORMATION 
 (a) From and after the date hereof and until the ‘34 Act Registration Statement shall have become
effective, the Company shall furnish to the Holders: 
  

	 	(i)	unaudited quarterly reports prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) within 60 days after the end of each quarter;

  

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	 	(ii)	annual reports which shall contain audited financial statements prepared in accordance with GAAP and containing non-financial information substantially equivalent to the
non-financial information that would be contained in an Annual Report on Form 20-F within 120 days after the end of each year, including a “Management’s Discussion and Analysis of Financial Condition and Results of Operation”; and

  

	 	(iii)	reports substantially equivalent to the reports which would be required to be filed on Form 8-K within 15 days after the event required to be reported, provided that any financial
statements that would be required may be unaudited and prepared in accordance with IFRS rather than GAAP, 

 provided,
however that save to the extent required by law to be included in the Commission reports referred to above, the reports set forth above shall not be required to (i) contain any certification required by the Sarbanes-Oxley Act,
(ii) include any exhibits, (iii) contain quarterly reconciliations to GAAP, (iv) include separate financial statements for any acquired businesses or (v) any pro forma financial information. 
 (b) With respect to any proxy statement required to be prepared by the Company in connection with a business combination, such proxy statement shall
contain substantially the same information as would be required in a proxy statement for an acquisition filed with the Commission provided, however, that the financial statements included in such proxy statement, if permitted by applicable AIM
requirements, may be unaudited and may be prepared in accordance with IFRS and reconciled to GAAP. In addition, such proxy statement shall describe the implications of approving a business combination, including whether the Warrants become
exercisable upon consummation of the business combination and the following operational information with respect to the acquisition target: i) the production profile and historical oil and gas production decline figures; ii) the results of a third
party reserve report; iii) management’s estimates of effective lifting costs per barrel oil equivalent; and iv) the previous owner’s three-year effective lifting cost history plus an additional two years to the extent available.

 SECTION 7. REGISTRATION EXPENSES 
 (a) All expenses incident to the Company’s performance of or compliance with this Agreement will be borne by the Company regardless of whether any registration statement hereunder becomes effective, including without limitation and as
applicable: (i) all Commission, securities exchange or NASD registration and filing fees and expenses; (ii) all fees and expenses of compliance with U.S. federal securities and state blue sky laws and compliance with the rules of a
securities exchange or NASD, as applicable; (iii) all expenses of printing, messenger and delivery services; (iv) all fees and disbursements of counsel for the Company; and (v) all fees and disbursements of independent certified
public accountants of the Company (including the expenses of any special audit and comfort letters required by or incident to such performance) but excluding those fees borne by other parties as detailed in the Placing Agreement and any portion of
commissions or discounts attributable to the Common Shares being offered and sold by the Holders. 
 (b) The Company will, in any event, bear
its internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expenses of any annual audit and the fees and expenses of any Person, including special
experts, retained by the Company. 
  

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 SECTION 8. INDEMNIFICATION 
 (a) The Company shall indemnify and hold harmless each Holder, its officers and employees and each Person, if any, who controls any such Holders, within the meaning of the Securities Act, from and against any loss,
claim, damage or liability, joint or several, or any action in respect thereof, to which that Holder, officer, employee or controlling Person may become subject, under the Securities Act or otherwise, insofar as such loss, claim, damage, liability
or action arises out of, or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any registration statement filed pursuant hereto or in any amendment or supplement thereto; (ii) the omission or
alleged omission to state in any registration statement filed pursuant hereto or in any amendment or supplement thereto any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, and shall reimburse each Holder and each such officer, employee or controlling Person promptly upon demand for any legal or other expenses reasonably incurred by that Holder, officer, employee or controlling
Person in connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or action as such expenses are incurred provided that no Holder shall be indemnified for misstatements or omissions arising
from information provided by the Holder in writing for inclusion in any registration statement filed pursuant hereto. The foregoing indemnity agreement is in addition to any liability which the Company may otherwise have to any Holder or to any
officer, employee or controlling Person of that Holder. 
 (b) Promptly after receipt by an indemnified party under this Section 8 of
notice of any claim or the commencement of any action, the indemnified party shall, if a claim in respect thereof is to be made against the Company under this Section 8, notify the Company in writing of the claim or the commencement of that
action; provided, however, that the failure to notify the Company shall not relieve it from any liability which it may have under this Section 8 except to the extent it has been materially prejudiced by such failure; and provided,
further, that the failure to notify the Company shall not relieve it from any liability which it may have to an indemnified party otherwise than under this Section 8. If any such claim or action shall be brought against an indemnified
party, and it shall notify the Company thereof, the Company shall be entitled to participate therein and, to the extent that it wishes to assume the defense thereof with counsel reasonably satisfactory to the indemnified party. After notice from the
Company to the indemnified party of its election to assume the defense of such claim or action, the Company shall not be liable to the indemnified party under this Section 8 for any legal or other expenses subsequently incurred by the
indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, any indemnified party shall have the right to employ separate counsel in any such action and to participate in the
defense thereof but the fees and expenses of such counsel shall be at the expense of the indemnified party unless (i) the employment of such counsel has been specifically authorized by the Company in writing, or (ii) such indemnified party
shall have been advised by such counsel that there may be one or more legal defenses available to it which are different from or additional to those available to the Company and in the reasonable judgment of such counsel it is advisable for such
indemnified party to employ separate counsel or (iii) the Company has failed to assume the defense of such action and employ counsel reasonably satisfactory to the indemnified party, in which case, if such 

  

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indemnified party notifies the Company in writing that it elects to employ separate counsel at the expense of the Company, the Company shall not, in
connection with any one such action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one
separate firm of attorneys (in addition to one local counsel) at any time for all such indemnified parties, which firm shall be designated in writing by the Holders of a majority in principal amount of the outstanding Common Shares and the Common
Shares issuable upon exercise of the Warrants. The Company shall not (i) without the prior written consent of the indemnified parties (which consent shall not be unreasonably withheld), settle or compromise or consent to the entry of any
judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or
action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding or (ii) be liable for any settlement of any such action
effected without its written consent (which consent shall not be unreasonably withheld), but if settled with the consent of the Company or if there be a final judgment of the plaintiff in any such action, the Company agrees to indemnify and hold
harmless any indemnified party from and against any loss or liability by reason of such settlement or judgment. 
 (c) If the indemnification
provided for in this Section 8 shall for any reason be unavailable to or insufficient to hold harmless an indemnified party under Section 6(a) in respect of any loss, claim, damage or liability, or any action in respect thereof, referred
to therein, then the Company shall, in lieu of indemnifying such indemnified party, contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability, or action in respect thereof, (i) in
such proportion as shall be appropriate to reflect the relative benefits received by the Company, on the one hand, and the Holders on the other, from the sale of the Common Shares or (ii) if the allocation provided by clause (i) above is
not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but any other relevant equitable considerations. The Company and the Holders agree that it would not
be just and equitable if contributions pursuant to this Section 8(c) were to be determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or by any other method of allocation which does not take into
account the equitable considerations referred to herein. The amount paid or payable by an indemnified party as a result of the loss, claim, damage or liability, or action in respect thereof, referred to above in this Section 8 shall be deemed
to include, for purposes of this Section 8(c), any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this
Section 8(c), no Holder shall be required to contribute any amount in excess of the amount by which the net proceeds received by it in connection with its sale of Common Shares exceeds the amount of any damages which such Holder has otherwise
paid or become liable to pay by reason of the untrue or alleged untrue statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section 1l(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent misrepresentation. The Holders’ obligations to contribute as provided in this Section 8(c) are several and not joint. 
  

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 SECTION 9. MISCELLANEOUS 
 (a) No Inconsistent Agreements. The Company shall not, on or after the date of this Agreement, enter into any agreement with respect to its securities that is inconsistent with the rights granted to the Holders
in this Agreement or otherwise conflicts with the provisions hereof. Except as disclosed in the Offering Circular, the Company has not previously entered into any agreement granting any registration rights with respect to its Common Shares to any
Person except for the registration rights given to the initial investors and the placement agents. The rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent with the rights granted to the holders of the
Company’s Common Shares under any agreement in effect on the date hereof. 
 (b) Amendments and Waivers. The provisions of this
Agreement may not be amended, modified or supplemented, and waivers or consents to or departures from the provisions hereof may not be given unless the Company has obtained the written consent of Holders of a majority of the principal amount of the
outstanding Common Shares and the Common Shares issuable upon the exercise of the Warrants affected by such amendment, modification, supplement, waiver or consent. 
 (c) Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery, first-class mail (registered or certified, return receipt requested), telex,
facsimile or air courier guaranteeing overnight delivery: 
 (i) if to a Holder, at the address set forth in the record books
of the Company; and 
 if to the Company to: 
 Energy XXI Acquisition Corporation (Bermuda) Limited 
 Canon’s Court 
 22 Victoria Street, PO Box 1179 
 Hamilton HM EX Bermuda 
 with a copy to: 
 Mr. John D. Schiller 
 c/o 1021 Main, Suite 2626 
 Houston, Texas 77002 
 with copies to: 
 Sunrise Securities Corp. 
 641 Lexington Avenue 
 New York, NY 10022 
 Attn: President 
 and 
 Collins Stewart Limited 
 9th Floor 
 88 Wood Street 
 London EC2V 7QR 
  

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 Any such notices and communications shall take effect at the time of receipt thereof. 
 (d) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties.

 (e) Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 
 (f) Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 
 (g) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED, IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK. 
 (h) Severability. In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held
invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby. 
 (i) Entire Agreement. This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein with
respect to the investor rights granted by the Company herein. This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter. 
  

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 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

  

			
	Very truly yours,
	
	THE COMPANY:
	
	ENERGY XXI ACQUISITION CORPORATION (BERMUDA) LIMITED
		
	By:	 	 /s/ West Griffin

	Name:	 	West Griffin
	Title:	 	Cheif Financial Officer
	
	SUNRISE SECURITIES CORP.
		
	By:	 	 /s/ [ILLEGIBLE]

	Name:	 	ILLEGIBLE
	Title:	 	Managing Director
	
	COILLINS STEWART LIMITED
		
	By:	 	 /s/ Seema Paterson

	Narne:	 	Seema Paterson
	Title:	 	Assistant DirectorRegistration Rights Agreement

 Exhibit 4.2 
 REGISTRATION RIGHTS AGREEMENT 
 THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is
entered into as of the 13th day October, 2005, by and among: Energy XXI Acquisition Corporation (Bermuda) Limited, a company organized under the laws of Bermuda (the “Company”); and the undersigned parties listed under Investors on
the signature page hereto (each, an “Investor” and collectively, the “Investors”). 
 WHEREAS, the Investors currently
hold all of the issued and outstanding securities of the Company; 
 WHEREAS, the Investors and the Company desire to enter into this
Agreement to provide the Investors with certain rights relating to the registration of Common Shares held by them; 
 NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1. DEFINITIONS. The following capitalized terms used herein have the following meanings: 
 “Agreement” means this Agreement, as amended, restated, supplemented, or otherwise modified from time to time. 
 “Commission” means the Securities and Exchange Commission, or any other federal agency then administering the Securities Act or the
Exchange Act. 
 “Common Shares” means the common shares par value $0.001 per share, of the Company. 
 “Company” is defined in the preamble to this Agreement. 
 “Demand Registration” is defined in Section 2.1.1. 
 “Demanding
Holder” is defined in Section 2.1.1. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended,
and the rules and regulations of the Commission promulgated thereunder, all as the same shall be in effect at the time. 
 “Form
S-3” is defined in Section 2.3. 
 “Indemnified Party” is defined in Section 4.3. 
 “Indemnifying Party” is defined in Section 4.3. 
 “Investor” is defined in the preamble to this Agreement. 
 “Investor Indemnified
Party” is defined in Section 4.1. 
 “Maximum Number of Shares” is defined in Section 2.1.4. 

“Notices” is defined in Section 6.3. 
 “Piggy-Back Registration” is defined in Section 2.2.1. 
 “Register,”
“registered” and “registration” mean a registration effected by preparing and filing a registration statement or similar document in compliance with the requirements of the Securities Act, and the applicable rules
and regulations promulgated thereunder, and such registration statement becoming effective. 

 “Registrable Securities” mean all of the Common Shares owned or held by Investors.
Registrable Securities include any warrants, shares of capital stock or other securities of the Company issued as a dividend or other distribution with respect to or in exchange for or in replacement of such Common Shares. As to any particular
Registrable Securities, such securities shall cease to be Registrable Securities when: (a) a Registration Statement with respect to the sale of such securities shall have become effective under the Securities Act and such securities shall have
been sold, transferred, disposed of or exchanged in accordance with such Registration Statement; (b) such securities shall have been otherwise transferred, new certificates for them not bearing a legend restricting further transfer shall have
been delivered by the Company and subsequent public distribution of them shall not require registration under the Securities Act; (c) such securities shall have ceased to be outstanding, or (d) the Securities and Exchange Commission makes
a definitive determination to the Company that the Registrable Securities are salable under Rule 144(k). 
 “Registration
Statement” means a registration statement filed by the Company with the Commission in compliance with the Securities Act and the rules and regulations promulgated thereunder for a public offering and sale of Common Shares (other than a
registration statement on Form F-4, Form S-4 or Form S-8, or their successors, or any registration statement covering only securities proposed to be issued in exchange for securities or assets of another entity). 
 “Release Date” means the date on which Common Shares are disbursed from escrow pursuant to Section 3 of that certain Share Escrow
Agreement dated as of      October, 2005 by and among the parties hereto and Collins Stewart (Channel Islands) Limited. 
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder, all as the same shall be in effect at the time. 
 “Underwriter” means a securities dealer who purchases any Registrable Securities as principal in an underwritten offering and not as
part of such dealer’s market-making activities. 
 2. REGISTRATION RIGHTS. 
 2.1 Demand Registration. 
 2.1.1.
Request for Registration. At any time and from time to time on or after the Release Date, the holders of a majority-in-interest of the Registrable Securities held by the Investors or the transferees of the Investors, may make a written demand
for registration under the Securities Act of all or part of their Registrable Securities (a “Demand Registration”). Any demand for a Demand Registration shall specify the number of shares of Registrable Securities proposed to be
sold and the intended method(s) of distribution thereof. The Company will notify all holders of Registrable Securities of the demand, and each holder of Registrable Securities who wishes to include all or a portion of such holder’s Registrable
Securities in the Demand Registration (each such holder including shares of Registrable Securities in such registration, a “Demanding Holder”) shall so notify the Company within fifteen (15) days after the receipt by the holder
of the notice from the Company. Upon any such request, the Demanding Holders shall be entitled to have their Registrable Securities included in the Demand Registration, subject to Section 2.1.4 and the provisos set forth in Section 3.1.1.
The Company shall not be obligated to effect more than an aggregate of two (2) Demand Registrations under this Section 2.1.1 in respect of Registrable Securities. 
 2.1.2. Effective Registration. A registration will not count as a Demand Registration until the Registration Statement filed with the Commission
with respect to such Demand Registration has been declared effective and the Company has complied with all of its obligations under this Agreement with respect thereto; provided, however, that if, after such Registration Statement has
been declared effective, the offering of Registrable Securities pursuant to a Demand Registration is interfered with by any stop order or injunction of the Commission or any other governmental agency or court, the Registration Statement with respect
to such Demand Registration will be deemed not to have been declared effective, unless and until, (i) such stop order or injunction is removed, rescinded or otherwise terminated, and (ii) a majority-in-interest of the Demanding Holders
thereafter elect to continue the offering; provided, further, that the Company shall not be obligated to file a second Registration Statement until a Registration Statement that has been filed is counted as a Demand Registration or is
terminated. 
  

 2 

 2.1.3. Underwritten Offering. If a majority-in-interest of the Demanding Holders so elect and such
holders so advise the Company as part of their written demand for a Demand Registration, the offering of such Registrable Securities pursuant to such Demand Registration shall be in the form of an underwritten offering. In such event, the right of
any holder to include its Registrable Securities in such registration shall be conditioned upon such holder’s participation in such underwriting and the inclusion of such holder’s Registrable Securities in the underwriting to the extent
provided herein. All Demanding Holders proposing to distribute their securities through such underwriting shall enter into an underwriting agreement in customary form with the Underwriter or Underwriters selected for such underwriting by a
majority-in-interest of the holders initiating the Demand Registration. 
 2.1.4. Reduction of Offering. If the managing Underwriter
or Underwriters for a Demand Registration that is to be an underwritten offering advises the Company and the Demanding Holders in writing that the dollar amount or number of shares of Registrable Securities which the Demanding Holders desire to
sell, taken together with all other Common Shares or other securities which the Company desires to sell and the Common Shares, if any, as to which registration has been requested pursuant to written contractual piggy-back registration rights held by
other shareholders of the Company who desire to sell, exceeds the maximum dollar amount or maximum number of shares that can be sold in such offering without adversely affecting the proposed offering price, the timing, the distribution method, or
the probability of success of such offering (such maximum dollar amount or maximum number of shares, as applicable, the “Maximum Number of Shares”), then the Company shall include in such registration: (i) first, the
Registrable Securities as to which Demand Registration has been requested by the Demanding Holders (pro rata in accordance with the number of shares of Registrable Securities which such Demanding Holder has requested be included in such
registration, regardless of the number of shares of Registrable Securities held by each Demanding Holder) that can be sold without exceeding the Maximum Number of Shares; (ii) second, to the extent that the Maximum Number of Shares has not been
reached under the foregoing clause (i), the Common Shares or other securities that the Company desires to sell that can be sold without exceeding the Maximum Number of Shares; (iii) third, to the extent that the Maximum Number of Shares has not
been reached under the foregoing clauses (i) and (ii), the Common Shares for the account of other persons that the Company is obligated to register pursuant to written contractual arrangements with such persons and that can be sold without
exceeding the Maximum Number of Shares; and (v) fourth, to the extent that the Maximum Number of Shares have not been reached under the foregoing clauses (i), (ii), and (iii), the Common Shares that other shareholders desire to sell that can be
sold without exceeding the Maximum Number of Shares. 
 2.1.5. Withdrawal. If a majority-in-interest of the Demanding Holders
disapprove of the terms of any underwriting or are not entitled to include all of their Registrable Securities in any offering, such majority-in-interest of the Demanding Holders may elect to withdraw from such offering by giving written notice to
the Company and the Underwriter or Underwriters of their request to withdraw prior to the effectiveness of the Registration Statement filed with the Commission with respect to such Demand Registration. If the majority-in- interest of the Demanding
Holders withdraws from a proposed offering relating to a Demand Registration, then such registration shall not count as a Demand Registration provided for in Section 2.1.1. 
 2.2 Piggy-Back Registration. 
 2.2.1.
Piggy-Back Rights. If at any time on or after the Release Date the Company proposes to file a Registration Statement under the Securities Act with respect to an offering of equity securities, or securities or other obligations exercisable or
exchangeable for, or convertible into, equity securities, by the Company for its own account or for shareholders of the Company for their account (or by the Company and by shareholders of the Company including, without limitation, pursuant to
Section 2.1), other than a Registration Statement (i) filed in connection with any employee stock option or other benefit plan, (ii) for an exchange offer or offering of securities solely to the Company’s existing shareholders,
(iii) for an offering of debt that is convertible into equity securities of the Company or (iv) for a dividend reinvestment plan, then the Company shall (x) give written notice of such proposed filing to the holders of Registrable
Securities as soon as practicable but in no event less than ten (10) days before the anticipated filing date, which notice shall describe the amount and type of securities to be included in such offering, the intended method(s) of distribution,
and the name of the proposed managing Underwriter or Underwriters, if any, of the offering, and (y) offer to the holders of Registrable Securities in such notice the opportunity to register the sale of such number of shares of Registrable
Securities as such holders may request in writing within fifteen (15) days following receipt of such notice (a “Piggy-Back Registration”). The Company shall cause such Registrable Securities to be included in such registration
and shall use its best efforts to cause the 

  

 3 

 
managing Underwriter or Underwriters of a proposed underwritten offering to permit the Registrable Securities requested to be included in a Piggy-Back
Registration to be included on the same terms and conditions as any similar securities of the Company and to permit the sale or other disposition of such Registrable Securities in accordance with the intended method(s) of distribution thereof. All
holders of Registrable Securities proposing to distribute their securities through a Piggy-Back Registration that involves an Underwriter or Underwriters shall enter into an underwriting agreement in customary form (with respect to selling
stockholders) with the Underwriter or Underwriters selected for such Piggy-Back Registration. 
 2.2.2. Reduction of Offering. If the
managing Underwriter or Underwriters for a Piggy-Back Registration that is to be an underwritten offering advises the Company and the holders of Registrable Securities in writing that the dollar amount or number of Common Shares which the Company
desires to sell, taken together with Common Shares, if any, as to which registration has been demanded pursuant to written contractual arrangements with persons other than the holders of Registrable Securities hereunder, the Registrable Securities
as to which registration has been requested under this Section 2.2, and the Common Shares, if any, as to which registration has been requested pursuant to the written contractual piggy-back registration rights of other shareholders of the
Company, exceeds the Maximum Number of Shares, then the Company shall include in any such registration: 
 (i) If the registration is
undertaken for the Company’s account: (A) first, the Common Shares or other securities that the Company desires to sell that can be sold without exceeding the Maximum Number of Shares; (B) second, to the extent that the Maximum Number
of Shares has not been reached under the foregoing clause (A), the Common Shares, if any, including the Registrable Securities, as to which registration has been requested pursuant to written contractual piggy-back registration rights of security
holders (pro rata in accordance with the number of Common Shares which each such person has actually requested to be included in such registration, regardless of the number of Common Shares with respect to which such persons have the right to
request such inclusion) that can be sold without exceeding the Maximum Number of Shares; and 
 (ii) If the registration is a
“demand” registration undertaken at the demand of persons other than the holders of Registrable Securities pursuant to written contractual arrangements with such persons, (A) first, the Common Shares for the account of the demanding
persons that can be sold without exceeding the Maximum Number of Shares; (B) second, to the extent that the Maximum Number of Shares has not been reached under the foregoing clause (A), the Common Shares or other securities that the Company
desires to sell that can be sold without exceeding the Maximum Number of Shares; and (C) third, to the extent that the Maximum Number of Shares has not been reached under the foregoing clauses (A) and (B), the Registrable Securities as to
which registration has been requested under this Section 2.2 (pro rata in accordance with the number of shares of Registrable Securities held by each such holder); and (D) fourth, to the extent that the Maximum Number of Shares has
not been reached under the foregoing clauses (A), (B) and (C), the Common Shares, if any, as to which registration has been requested pursuant to written contractual piggy-back registration rights which other shareholders desire to sell that
can be sold without exceeding the Maximum Number of Shares. 
 2.2.3. Withdrawal. Any holder of Registrable Securities may elect to
withdraw such holder’s request for inclusion of Registrable Securities in any Piggy-Back Registration by giving written notice to the Company of such request to withdraw prior to the effectiveness of the Registration Statement. The Company may
also elect to withdraw a registration statement at any time prior to the effectiveness of the Registration Statement. Notwithstanding any such withdrawal, the Company shall pay all expenses incurred by the holders of Registrable Securities in
connection with such Piggy-Back Registration as provided in Section 3.3. 
 2.3 Registrations on Form S-3. The holders of
Registrable Securities may at any time and from time to time, request in writing that the Company register the resale of any or all of such Registrable Securities on Form S-3 or any similar short-form registration which may be available at such time
(“Form S-3”); provided, however, that the Company shall not be obligated to effect such request through an underwritten offering. Upon receipt of such written request, the Company will promptly give written notice of
the proposed registration to all other holders of Registrable Securities, and, as soon as practicable thereafter, effect the registration of all or such portion of such holder’s or holders’ Registrable Securities as are specified in such
request, together with all or such portion of the Registrable Securities of any other holder or holders joining in such request as are specified in a written request given within fifteen (15) days after receipt of such written notice from the
Company; provided, however, that the Company shall not be obligated to effect any such registration pursuant to this Section 2.3: (i) if Form S-3 is not available for such offering; or (ii) if the holders of the
Registrable Securities, together with the holders of any other 

  

 4 

 
securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at any
aggregate price to the public of less than $500,000. Registrations effected pursuant to this Section 2.3 shall not be counted as Demand Registrations effected pursuant to Section 2.1. 
 3. REGISTRATION PROCEDURES. 
 3.1
Filings: Information. Whenever the Company is required to effect the registration of any Registrable Securities pursuant to Section 2, the Company shall use its best efforts to effect the registration and sale of such Registrable
Securities in accordance with the intended method(s) of distribution thereof as expeditiously as practicable, and in connection with any such request: 
 3.1.1. Filing Registration Statement. The Company shall, as expeditiously as possible and in any event within sixty (60) days after receipt of a request for a Demand Registration pursuant to
Section 2.1, prepare and file with the Commission a Registration Statement on any form for which the Company then qualifies or which counsel for the Company shall deem appropriate and which form shall be available for the sale of all
Registrable Securities to be registered thereunder in accordance with the intended method(s) of distribution thereof, and shall use its best efforts to cause such Registration Statement to become and remain effective for the period required by
Section 3.1.3; provided, however, that the Company shall have the right to defer any Demand Registration for up to thirty (30) days, and any Piggy-Back Registration for such period as may be applicable to deferment of any
demand registration to which such Piggy-Back Registration relates, in each case if the Company shall furnish to the holders a certificate signed by the Chief Executive Officer of the Company stating that, in the good faith judgment of the Board of
Directors of the Company, it would be materially detrimental to the Company and its shareholders for such Registration Statement to be effected at such time; provided further, however, that the Company shall not have the right to
exercise the right set forth in the immediately preceding proviso more than once in any 365-day period in respect of a Demand Registration hereunder. 
 3.1.2. Copies. The Company shall, prior to filing a Registration Statement or prospectus, or any amendment or supplement thereto, furnish without charge to the holders of Registrable Securities included in such
registration, and such holders’ legal counsel, copies of such Registration Statement as proposed to be filed, each amendment and supplement to such Registration Statement (in each case including all exhibits thereto and documents incorporated
by reference therein), the prospectus included in such Registration Statement (including each preliminary prospectus), and such other documents as the holders of Registrable Securities included in such registration or legal counsel for any such
holders may request in order to facilitate the disposition of the Registrable Securities owned by such holders. 
 3.1.3. Amendments and
Supplements. The Company shall prepare and file with the Commission such amendments, including post-effective amendments, and supplements to such Registration Statement and the prospectus used in connection therewith as may be necessary to keep
such Registration Statement effective and in compliance with the provisions of the Securities Act until all Registrable Securities and other securities covered by such Registration Statement have been disposed of in accordance with the intended
method(s) of distribution set forth in such Registration Statement (which period shall not exceed the sum of one hundred eighty (180) days plus any period during which any such disposition is interfered with by any stop order or injunction of
the Commission or any governmental agency or court) or such securities have been withdrawn. 
 3.1.4. Notification. After the filing
of a Registration Statement, the Company shall promptly, and in no event more than two (2) business days after such filing, notify the holders of Registrable Securities included in such Registration Statement of such filing, and shall further
notify such holders promptly and confirm such advice in writing in all events within two (2) business days of the occurrence of any of the following: (i) when such Registration Statement becomes effective; (ii) when any post-effective
amendment to such Registration Statement becomes effective; (iii) the issuance or threatened issuance by the Commission of any stop order (and the Company shall take all actions required to prevent the entry of such stop order or to remove it
if entered); and (iv) any request by the Commission for any amendment or supplement to such Registration Statement or any prospectus relating thereto or for additional information or of the occurrence of an event requiring the preparation of a
supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of the securities covered by such Registration Statement, such prospectus will not contain an untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements therein not misleading, and promptly make available to the holders of Registrable Securities included in such Registration 
  

 5 

 
Statement any such supplement or amendment; except that before filing with the Commission a Registration Statement or prospectus or any amendment or
supplement thereto, including documents incorporated by reference, the Company shall furnish to the holders of Registrable Securities included in such Registration Statement and to the legal counsel for any such holders, copies of all such documents
proposed to be filed sufficiently in advance of filing to provide such holders and legal counsel with a reasonable opportunity to review such documents and comment thereon, and the Company shall not file any Registration Statement or prospectus or
amendment or supplement thereto, including documents incorporated by reference, to which such holders or their legal counsel shall object. 
 3.1.5. State Securities Laws Compliance. The Company shall use its best efforts to (i) register or qualify the Registrable Securities covered by the Registration Statement under such securities or “blue sky” laws of
such jurisdictions in the United States as the holders of Registrable Securities included in such Registration Statement (in light of their intended plan of distribution) may request and (ii) take such action necessary to cause such Registrable
Securities covered by the Registration Statement to be registered with or approved by such other Governmental Authorities as may be necessary by virtue of the business and operations of the Company and do any and all other acts and things that may
be necessary or advisable to enable the holders of Registrable Securities included in such Registration Statement to consummate the disposition of such Registrable Securities in such jurisdictions: provided, however, that the Company
shall not be required to qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this paragraph (e) or subject itself to taxation in any such jurisdiction. 
 3.1.6. Agreements for Disposition. The Company shall enter into customary agreements (including, if applicable, an underwriting agreement in
customary form) and take such other actions as are reasonably required in order to expedite or facilitate the disposition of such Registrable Securities. The representations, warranties and covenants of the Company in any underwriting agreement
which are made to or for the benefit of any Underwriters, to the extent applicable, shall also be made to and for the benefit of the holders of Registrable Securities included in such registration statement. No holder of Registrable Securities
included in such registration statement shall be required to make any representations or warranties in the underwriting agreement except, if applicable, with respect to such holder’s organization, good standing, authority, title to Registrable
Securities, lack of conflict of such sale with such holder’s material agreements and organizational documents, and with respect to written information relating to such holder that such holder has furnished in writing expressly for inclusion in
such Registration Statement. 
 3.1.7. Cooperation. The principal executive officer of the Company, the principal financial officer of
the Company, the principal accounting officer of the Company and all other officers and members of the management of the Company shall cooperate fully in any offering of Registrable Securities hereunder, which cooperation shall include, without
limitation, the preparation of the Registration Statement with respect to such offering and all other offering materials and related documents, and participation in meetings with Underwriters, attorneys, accountants and potential investors.

 3.1.8. Records. The Company shall make available for inspection by the holders of Registrable Securities included in such
Registration Statement, any Underwriter participating in any disposition pursuant to such registration statement and any attorney, accountant or other professional retained by any holder of Registrable Securities included in such Registration
Statement or any Underwriter, all financial and other records, pertinent corporate documents and properties of the Company, as shall be necessary to enable them to exercise their due diligence responsibility, and cause the Company’s officers,
directors and employees to supply all information requested by any of them in connection with such Registration Statement. 
 3.1.9.
Opinions and Comfort Letters. The Company shall furnish to each holder of Registrable Securities included in any Registration Statement a signed counterpart, addressed to such holder, of (i) any opinion of counsel to the Company
delivered to any Underwriter and (ii) any comfort letter from the Company’s independent public accountants delivered to any Underwriter. In the event no legal opinion is delivered to any Underwriter, the Company shall furnish to each
holder of Registrable Securities included in such Registration Statement, at any time that such holder elects to use a prospectus, an opinion of counsel to the Company to the effect that the Registration Statement containing such prospectus has been
declared effective and that no stop order is in effect. 
  

 6 

 3.1.10. Earnings Statement. The Company shall comply with all applicable rules and regulations of
the Commission and the Securities Act, and make available to its shareholders, as soon as practicable, an earnings statement covering a period of twelve (12) months, beginning within three (3) months after the effective date of the
registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder. 
 3.1.11. Listing. The Company shall use its best efforts to cause all Registrable Securities included in any registration to be listed on such exchanges or otherwise designated for trading in the same manner as
similar securities issued by the Company are then listed or designated or, if no such similar securities are then listed or designated, in a manner satisfactory to the holders of a majority of the Registrable Securities included in such
registration. 
 3.2 Obligation to Suspend Distribution. Upon receipt of any notice from the Company of the happening of any event of
the kind described in Section 3.1.4(iv), or, in the case of a resale registration on Form S-3 pursuant to Section 2.3 hereof, upon any suspension by the Company, pursuant to a written insider trading compliance program adopted by the
Company’s Board of Directors, of the ability of all “insiders” covered by such program to transact in the Company’s securities because of the existence of material non-public information, each holder of Registrable Securities
included in any registration shall immediately discontinue disposition of such Registrable Securities pursuant to the Registration Statement covering such Registrable Securities until such holder receives the supplemented or amended prospectus
contemplated by Section 3.1.4(iv) or the restriction on the ability of “insiders” to transact in the Company’s securities is removed, as applicable, and, if so directed by the Company, each such holder will deliver to the Company
all copies, other than permanent file copies then in such holder’s possession, of the most recent prospectus covering such Registrable Securities at the time of receipt of such notice. 
 3.3 Registration Expenses. The Company shall bear all costs and expenses incurred in connection with any Demand Registration pursuant to
Section 2.1, any Piggy-Back Registration pursuant to Section 2.2, and any registration on Form S-3 effected pursuant to Section 2.3, and all expenses incurred in performing or complying with its other obligations under this Agreement,
whether or not the Registration Statement becomes effective, including, without limitation: (i) all registration and filing fees; (ii) fees and expenses of compliance with securities or “blue sky” laws (including fees and
disbursements of counsel in connection with blue sky qualifications of the Registrable Securities); (iii) printing expenses; (iv) the Company’s internal expenses (including, without limitation, all salaries and expenses of its
officers and employees); (v) the fees and expenses incurred in connection with the listing of the Registrable Securities as required by Section 3.1.11; (vi) National Association of Securities Dealers, Inc. fees; (vii) fees and
disbursements of counsel for the Company and fees and expenses for independent certified public accountants retained by the Company (including the expenses or costs associated with the delivery of any opinions or comfort letters requested pursuant
to Section 3.1.9); (viii) the fees and expenses of any special experts retained by the Company in connection with such registration and (ix) the fees and expenses of one legal counsel selected by the holders of a majority-in-interest
of the Registrable Securities included in such registration. The Company shall have no obligation to pay any underwriting discounts or selling commissions attributable to the Registrable Securities being sold by the holders thereof, which
underwriting discounts or selling commissions shall be borne by such holders. Additionally, in an underwritten offering, all selling shareholders and the Company shall bear the expenses of the underwriter pro rata in proportion to the respective
amount of shares each is selling in such offering. 
 3.4 Information. The holders of Registrable Securities shall provide such
information as may reasonably be requested by the Company, or the managing Underwriter, if any, in connection with the preparation of any Registration Statement, including amendments and supplements thereto, in order to effect the registration of
any Registrable Securities under the Securities Act pursuant to Section 2 and in connection with the Company’s obligation to comply with federal and applicable state securities laws. 
 4. INDEMNIFICATION AND CONTRIBUTION. 
 4.1
Indemnification by the Company. The Company agrees to indemnify and hold harmless each Investor and each other holder of Registrable Securities, and each of their respective officers, employees, affiliates, directors, partners, members,
attorneys and agents, and each person, if any, who controls an Investor and each other holder of Registrable Securities (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) (each, an “Investor
Indemnified Party”), from and against any expenses, losses, judgments, claims, damages or liabilities, whether joint or several, arising out of or based upon any untrue statement (or allegedly 

  

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untrue statement) of a material fact contained in any Registration Statement under which the sale of such Registrable Securities was registered under the
Securities Act, any preliminary prospectus, final prospectus or summary prospectus contained in the Registration Statement, or any amendment or supplement to such Registration Statement, or arising out of or based upon any omission (or alleged
omission) to state a material fact required to be stated therein or necessary to make the statements therein not misleading, or any violation by the Company of the Securities Act or any rule or regulation promulgated thereunder applicable to the
Company and relating to action or inaction required of the Company in connection with any such registration; and the Company shall promptly reimburse the Investor Indemnified Party for any legal and any other expenses reasonably incurred by such
Investor Indemnified Party in connection with investigating and defending any such expense, loss, judgment, claim, damage, liability or action: provided, however, that the Company will not be liable in any such case to the extent that
any such expense, loss, claim, damage or liability arises out of or is based upon any untrue statement or allegedly untrue statement or omission or alleged omission made in such Registration Statement, preliminary prospectus, final prospectus, or
summary prospectus, or any such amendment or supplement, in reliance upon and in conformity with information furnished to the Company, in writing, by such selling holder expressly for use therein. The Company also shall indemnify any Underwriter of
the Registrable Securities, their officers, affiliates, directors, partners, members and agents and each person who controls such Underwriter on substantially the same basis as that of the indemnification provided above in this Section 4.1.

 4.2 Indemnification by Holders of Registrable Securities. Each selling holder of Registrable Securities will, in the event that any
registration is being effected under the Securities Act pursuant to this Agreement of any Registrable Securities held by such selling holder, indemnify and hold harmless the Company, each of its directors and officers and each underwriter (if any),
and each other person, if any, who controls such selling holder or such underwriter within the meaning of the Securities Act, against any losses, claims, judgments, damages or liabilities, whether joint or several, insofar as such losses, claims,
judgments, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or allegedly untrue statement of a material fact contained in any Registration Statement under which the sale of such Registrable
Securities was registered under the Securities Act, any preliminary prospectus, final prospectus or summary prospectus contained in the Registration Statement, or any amendment or supplement to the Registration Statement, or arise out of or are
based upon any omission or the alleged omission to state a material fact required to be stated therein or necessary to make the statement therein not misleading, if the statement or omission was made in reliance upon and in conformity with
information furnished in writing to the Company by such selling holder expressly for use therein, and shall reimburse the Company, its directors and officers, and each such controlling person for any legal or other expenses reasonably incurred by
any of them in connection with investigation or defending any such loss, claim, damage, liability or action. Each selling holder’s indemnification obligations hereunder shall be several and not joint and shall be limited to the amount of any
net proceeds actually received by such selling holder. 
 4.3 Conduct of Indemnification Proceedings. Promptly after receipt by any
person of any notice of any loss, claim, damage or liability or any action in respect of which indemnity may be sought pursuant to Section 4.1 or 4.2, such person (the “Indemnified Party”) shall, if a claim in respect thereof
is to be made against any other person for indemnification hereunder, notify such other person (the “Indemnifying Party”) in writing of the loss, claim, judgment, damage, liability or action; provided, however, that
the failure by the Indemnified Party to notify the Indemnifying Party shall not relieve the Indemnifying Party from any liability which the Indemnifying Party may have to such Indemnified Party hereunder, except and solely to the extent the
Indemnifying Party is actually prejudiced by such failure. If the Indemnified Party is seeking indemnification with respect to any claim or action brought against the Indemnified Party, then the Indemnifying Party shall be entitled to participate in
such claim or action, and, to the extent that it wishes, jointly with all other Indemnifying Parties, to assume control of the defense thereof with counsel satisfactory to the Indemnified Party. After notice from the Indemnifying Party to the
Indemnified Party of its election to assume control of the defense of such claim or action, the Indemnifying Party shall not be liable to the Indemnified Party for any legal or other expenses subsequently incurred by the Indemnified Party in
connection with the defense thereof other than reasonable costs of investigation; provided, however, that in any action in which both the Indemnified Party and the Indemnifying Party are named as defendants, the Indemnified Party shall
have the right to employ separate counsel (but no more than one such separate counsel) to represent the Indemnified Party and its controlling persons who may be subject to liability arising out of any claim in respect of which indemnity may be
sought by the Indemnified Party against the Indemnifying Party, with the fees and expenses of such counsel to be paid by such Indemnifying Party if, based upon the written opinion of counsel of such Indemnified Party, representation of both parties
by the same counsel would be inappropriate due to actual or 

  

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potential differing interests between them. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, consent to entry of
judgment or effect any settlement of any claim or pending or threatened proceeding in respect of which the Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such Indemnified Party, unless such judgment
or settlement includes an unconditional release of such Indemnified Party from all liability arising out of such claim or proceeding. 
 4.4
Contribution. 
 4.4.1. If the indemnification provided for in the foregoing Sections 4.1,4.2 and 4.3 is unavailable to any Indemnified
Party in respect of any loss, claim, damage, liability or action referred to herein, then each such Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a
result of such loss, claim, damage, liability or action in such proportion as is appropriate to reflect the relative fault of the Indemnified Parties and the Indemnifying Parties in connection with the actions or omissions which resulted in such
loss, claim, damage, liability or action, as well as any other relevant equitable considerations. The relative fault of any Indemnified Party and any Indemnifying Party shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by such Indemnified Party or such Indemnifying Party and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission. 
 4.4.2. The parties hereto agree that it would not be just
and equitable if contribution pursuant to this Section 4.4 were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the immediately preceding
Section 4.4.1. The amount paid or payable by an Indemnified Party as a result of any loss, claim, damage, liability or action referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses incurred by such Indemnified Party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 4.4, no holder of Registrable Securities shall be
required to contribute any amount in excess of the dollar amount of the net proceeds (after payment of any underwriting fees, discounts, commissions or taxes) actually received by such holder from the sale of Registrable Securities which gave rise
to such contribution obligation. No person guilty of fraudulent misrepresentation (within the meaning of Section 1 l(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. 
 5. UNDERWRITING AND DISTRIBUTION. 
 5.1 Rule 144. The Company covenants that it shall file any reports required to be filed by it under the Securities Act and the Exchange Act and shall take such further action as the holders of Registrable
Securities may reasonably request, all to the extent required from time to time to enable such holders to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 under
the Securities Act, as such Rules may be amended from time to time, or any similar Rule or regulation hereafter adopted by the Commission. 
 6. MISCELLANEOUS. 
 6.1 Other Registration Rights. The Company represents and warrants that no person, other than a holder of
the Registrable Securities, has any right to require the Company to register any shares of the Company’s capital stock for sale or to include shares of the Company’s capital stock in any registration filed by the Company for the sale of
shares of capital stock for its own account or for the account of any other person. 
 6.2 Assignment: No Third Party
Beneficiaries. This Agreement and the rights, duties and obligations of the Company hereunder may not be assigned or delegated by the Company in whole or in part. This Agreement and the rights, duties and obligations of the holders of
Registrable Securities hereunder may be freely assigned or delegated by such holder of Registrable Securities in conjunction with and to the extent of any transfer of Registrable Securities by any such holder. This Agreement and the provisions
hereof shall be binding upon and shall inure to the benefit of each of the parties and their respective successors and the permitted assigns of the Investor or holder of Registrable Securities or of any assignee of the Investor or holder of
Registrable Securities. This Agreement is not intended to confer any rights or benefits on any persons that are not party hereto other than as expressly set forth in Article 4 and this Section 6.2. 
  

 9 

 6.3 Notices. All notices, demands, requests, consents, approvals or other communications
(collectively, “Notices”) required or permitted to be given hereunder or which are given with respect to this Agreement shall be in writing and shall be personally served, delivered by reputable air courier service with charges
prepaid, or transmitted by hand delivery, telegram, telex or facsimile, addressed as set forth below, or to such other address as such party shall have specified most recently by written notice. Notice shall be deemed given on the date of service or
transmission if personally served or transmitted by telegram, telex or facsimile; provided, that if such service or transmission is not on a business day or is after normal business hours, then such notice shall be deemed given on the next
business day. Notice otherwise sent as provided herein shall be deemed given on the next business day following timely delivery of such notice to a reputable air courier service with an order for next-day delivery. 
 To the Company: 
 Energy XXI Acquisition Corporation (Bermuda) Limited

 Canon’s Court 
 22 Victoria Street 
 Hamilton HM EX Bermuda 
 with a copy to: 
 Mr. J. D. Schiller. Jr. 
 1021 Main Street, Suite 2626 
 Houston, Texas 77002 
 with a copy to: 
 Mintz Levin Cohn Ferris Glovsky and Popeo, PC 
 666 Third Avenue,
25th Floor 
 New York,
New York 10017 
 Attn: Kenneth R. Koch, Esq.; and 
 To the
Investors, to: 
 Mr. J. D. Schiller, Jr. 
 c/o 1021 Main
Street, Suite 2626 
 Houston, Texas 77002 
 with a copy to:

 Mr. S. A. Weyel 
 c/o 1021 Main Street, Suite 2626

 Houston, Texas 77002 
 with a copy to: 
 Mr. D. W. Griffin 
 c/o 1021 Main Street, Suite 2626 
 Houston, Texas 77002 
 with a copy to: 
 Mr. W. Colvin 
 1 Patterdale, Coldharbour Road, West Byfleet 

Surrey, KT14 6JN 
  

 10 

 with a copy to: 
 Mr. D.
M. Dunwoody 
 3417 Milam 
 Houston, Texas 77002 
 with a copy to: 
 Mr. C. Duprè II 
 5021 Longmont Drive 
 Houston, Texas 77056 
 with a copy to: 
 OPK, LLC 
 P.O. Box 25, 17271 Highway 90 
 Des Alemandes, LA 70030, USA 
 with a copy to: 
 Mr. H. Feinberg 
 325 North St. Paul Street, Suite 800 
 Dallas, TX 75201, USA 
 with a copy to: 
 Mr. J. D. Schiller, Sr. 
 7318 Carew Street, 
 Houston, TX 77074, USA 
 with a copy to: 
 The Schiller Children’s 2005 Irrevocable Trust

 c/o Mr. S. A. Weyel, Trustee 
 1021 Main, Suite 2626

 Houston, Texas 77002 
 with a copy to: 
 Energy XXI Partners, L.L.C 
 c/o Mr. J. D. Schiller, Jr. 
 1021 Main, Suite 2626 
 Houston, Texas, 77002 
 with a copy to: 
 Weil, Gotshal & Manges 
 One South Place 
 London EC2M 2WG 
 Attention: Mr. Wayne Rapozo 
 6.4 Severability.
This Agreement shall be deemed severable, and the invalidity or unenforceability of any term or provision hereof shall not affect the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any
such invalid or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid or unenforceable provision as may be possible and be valid and
enforceable. 
  

 11 

 6.5 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be
deemed an original, and all of which taken together shall constitute one and the same instrument. 
 6.6 Entire Agreement. This
Agreement (including all agreements entered into pursuant hereto and all certificates and instruments delivered pursuant hereto and thereto) constitute the entire agreement of the parties with respect to the subject matter hereof and supersede all
prior and contemporaneous agreements, representations, understandings, negotiations and discussions between the parties, whether oral or written. 
 6.7 Modifications and Amendments. No amendment, modification or termination of this Agreement shall be binding upon any party unless executed in writing by such party. 
 6.8 Titles and Headings. Titles and headings of sections of this Agreement are for convenience only and shall not affect the construction of any
provision of this Agreement. 
 6.9 Waivers and Extensions. Any party to this Agreement may waive any right, breach or default which
such party has the right to waive, provided that such waiver will not be effective against the waiving party unless it is in writing, is signed by such party, and specifically refers to this Agreement. Waivers may be made in advance or after
the right waived has arisen or the breach or default waived has occurred. Any waiver may be conditional. No waiver of any breach of any agreement or provision herein contained shall be deemed a waiver of any preceding or succeeding breach thereof
nor of any other agreement or provision herein contained. No waiver or extension of time for performance of any obligations or acts shall be deemed a waiver or extension of the time for performance of any other obligations or acts. 
 6.10 Remedies Cumulative. In the event that the Company fails to observe or perform any covenant or agreement to be observed or performed under
this Agreement, the Investor or any other holder of Registrable Securities may proceed to protect and enforce its rights by suit in equity or action at law, whether for specific performance of any term contained in this Agreement or for an
injunction against the breach of any such term or in aid of the exercise of any power granted in this Agreement or to enforce any other legal or equitable right, or to take any one or more of such actions, without being required to post a bond. None
of the rights, powers or remedies conferred under this Agreement shall be mutually exclusive, and each such right, power or remedy shall be cumulative and in addition to any other right, power or remedy, whether conferred by this Agreement or now or
hereafter available at law, in equity, by statute or otherwise. 
 6.11 Governing Law. This Agreement shall be governed by,
interpreted under, and construed in accordance with the internal laws of the State of New York applicable to agreements made and to be performed within the State of New York, without giving effect to any choice-of-law provisions thereof that would
compel the application of the substantive laws of any other jurisdiction. 
 6.12 Waiver of Trial by Jury. Each party hereby
irrevocably and unconditionally waives the right to a trial by jury in any action, suit, counterclaim or other proceeding (whether based on contract, tort or otherwise) arising out of, connected with or relating to this Agreement, the transactions
contemplated hereby, or the actions of the Investor in the negotiation, administration, performance or enforcement hereof. 
 [REMAINDER OF
PAGE INTENTIONALLY LEFT BLANK] 
  

 12 

 IN WITNESS WHEREOF, the parties have caused this Registration Rights Agreement to be executed and
delivered by their duty authorized representatives as of the date first written above. 
  

			
	ENERGY XXI ACQUISITION CORPORATION
	 (BERMUDA) LIMITED
 A Bermuda
corporation

		
	By:	 	 /s/ JOHN DANIEL SCHILLER, JR.

		 	JOHN DANIEL SCHILLER, JR. Chairman
		
		 	INVESTORS:
		
		 	 /s/ JOHN DANIEL SCHILLER, JR.

		 	JOHN DANIEL SCHILLER, JR.
		
		 	 /s/ STEVEN ALBERT WEYEL

		 	STEVEN ALBERT WEYEL
		
		 	 /s/ DAVID WEST GRIFFIN

		 	DAVID WEST GRIFFIN
		
		 	 /s/ WILLIAM COLVIN

		 	WILLIAM COLVIN
		
		 	 /s/ DAVID MORRIS DUNWOODY

		 	DAVID MORRIS DUNWOODY
		
		 	 /s/ [ILLEGIBLE]

		 	OPK, LLC
		
		 	 /s/ CORNELIUS DUPRE II

		 	CORNELIUS DUPRE II
		
		 	 /s/ HILL FEINBERG

		 	HILL FEINBERG
		
		 	 /s/ JOHN DANIEL SCHILLER, SR.

		 	JOHN DANIEL SCHILLER, SR.
		
		 	 /s/ STEVEN ALBERT WEYEL

		 	THE SCHILLER CHILDREN’S 2005 IRREVOCABLE TRUST
	By:	 	STEVEN ALBERT WEYEL, TRUSTEE
		
		 	 JOHN DANIEL SCHILLER, JR.

		 	ENERGY XXI PARTNERS, LLC
	By:	 	JOHN DANIEL SCHILLER, JR.

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