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As a unique nearby analog of high-redshift galaxies at the peak of cosmic star-formation comma the starburst ESO 338-4 provides a key laboratory to study stellar feedback. We propose deep Chandra observations of this template starburst to determine the luminosity function of X-ray binaries comma establish their association with star clusters comma and measure energetics of hot bubbles. Existing HST images will allow to identify optical counterparts of the X-ray sources. Detecting a well sampled population of X-ray binaries is required to measure the X-ray radiative field in the galaxy and to probe the theory of massive binary evolution. Fulfilling these goals demands 300 ks ACIS-I time. We further request 80 ks XMM to probe ULX pulsations and to spectroscopically map the hot galactic corona.