Document:

EX-10.3

 Exhibit 10.3 

 

							
	

	  	 Scott L. Joyce
 Sr. Vice
President
 Energy Banking

scott.joyce@capitalone.com
	  	 Capital One, N.A.
 1000
Louisiana, Suite 2950
 Houston, TX 77002
	  	 713.435.5342
 713.650.4930
Fax
 capitalonebank.com

 July 31, 2013 
 PPVA Black Elk Equity LLC 
 152 W 57th Street, 4th Fl. 
 New
York, NY 10019 
 Attn: Daniel Small 

and 
 Black Elk Energy Offshore Operators, LLC

 11451 Katy Freeway, Suite 500 

Houston, Texas 77079 
 Attn: Bruce Koch

  

	 	RE:	Purchase by PPVA Black Elk Equity LLC, a Delaware limited liability company (“Purchaser”) of all Loans under the Credit Agreement

 Gentlemen 
 Reference is made to (i) that certain Credit Agreement dated December 24, 2010 (as amended, the “Credit Agreement”) by and among Black Elk Energy Offshore Operations, LLC, a
Texas limited liability company (the “Borrower”), the Guarantors party thereto, Capital One, N.A., as Administrative Agent for the Lenders (“Administrative Agent”) and the Lenders signatory thereto (the
“Lenders”). Capitalized terms used herein and not otherwise defined shall have the meaning assigned to such terms in the Credit Agreement. 
 Pursuant to the terms of the Credit Agreement, Administrative Agent and Lenders agreed to make loans and extensions of credit on behalf of Borrower. As of the date hereof, the aggregate amount of the
Commitments of the Lenders under the Credit Agreement is $25,000,000, the current Borrowing Base under the Credit Agreement is $25,000,000 and the aggregate amount of all outstanding Loans under the Credit Agreement is $25,000,000. Pursuant to the
Credit Agreement, Administrative Agent has advised Borrower of its intent to redetermine the Borrowing Base under the Credit Agreement on July 31, 2013 and reduce the Borrowing base from $25,000,000 to $15,000,000. Borrower is in the process of
refinancing the Credit Agreement. Borrower and Purchaser, as an equity owner of Borrower, have requested Administrative Agent extend the date of the Borrowing Base redetermination to August 30, 2013, waive certain financial covenants for the
fiscal quarter ending on June 30, 2013 and amend certain other provisions of the Credit Agreement in exchange for Purchaser’s agreement to (a) purchase all Commitments and Loans under the Credit Agreement and (b) assume the role
of Administrative Agent thereunder, in each case on or before August 30, 2013 if Borrower has not 

 
obtained refinancing of the Credit Agreement prior thereto. Administrative Agent and the Lenders, have agreed to extend the date for redetermining the Borrowing Base to August 30, 2013,
waive certain covenants and amend certain provisions of the Credit Agreement pursuant to that certain Limited Waiver and Tenth Amendment to Credit Agreement dated as of the date hereof, among the Borrower, the Administrative Agent and the Lenders,
provided the Purchaser agrees to purchase all Commitments and Loans under the Credit Agreement and assumes all obligations of the Administrative Agent and the Lenders thereunder and under the Loan Documents in accordance with this letter agreement
(this “Letter Agreement”). 
 1. Conveyance. For valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, Administrative Agent and the Lenders, hereby agree to sell, assign and convey to Purchaser and Purchaser hereby agrees to (a) purchase and accept from Administrative Agent and the Lenders, all of the Lenders’
right, title and interest in and to the obligations under the Credit Agreement and Loan Documents, including but without limitation all Loans and Commitments and (b) accept and assume all obligations of the administrative agent under the Credit
Agreement and the Loan Documents, all subject to and in accordance with the terms and provisions of this Letter Agreement (the “Purchase Transaction”). In connection with the Purchase Transaction, Platinum Partners Value Arbitrage
Fund, L.P. (“Parent”), the parent of the Purchaser, and certain material subsidiaries of the Parent have agreed to executed a guaranty of even date herewith to secure the obligations of the Purchaser hereunder. The Purchase
Transaction shall close on August 30, 2013 (the “Closing Date”) and Purchaser shall deliver to the Administrative Agent, for the Lenders, the Purchase Price and the Credit Agreement Expenses (each as defined below) by wire
transfer of immediately available funds by 2:00 p.m. Houston time on August 30, 2013. Notwithstanding the foregoing, Administrative Agent, the Lenders and Purchaser acknowledge that the Borrower is working to obtain refinancing of the Credit
Agreement from other financial institutions. In the event Borrower is able to obtain and close a refinancing of the Credit Agreement, acceptable to the Administrative Agent and the Lenders, prior to August 30, 2013, the Administrative
Agent’s and the Lenders’ obligations hereunder to sell and assign the Loans and Commitments and Plantinum’s obligation to purchase the Loans and Commitments and assume the obligations under the Credit Agreement as described herein
shall terminate; provided, except as provided in Section 2 below, the Purchase Fee (as defined below) shall not be refunded to Purchaser and Purchaser shall remain liable for payment of the Letter Agreement Expense. 

2. Purchase Price, Fees and Expenses. Purchaser shall pay to Administrative Agent for the benefit of the Lenders the following
amounts: 
 (a) on the execution of this Letter Agreement, a purchase fee in the amount of $250,000 (“Purchase
Fee”); 
 (b) on the Closing Date, 100% of the aggregate principal balance of all outstanding Loans under the Credit
Agreement as of the Closing Date, plus all accrued unpaid interest (the “Purchase Price”); 
 (c) on the
Closing Date all other unpaid fees and expenses owed by the Borrower under the Credit Agreement (“Credit Agreement Expenses”); and 

 (d) on the Closing Date, all fees and expenses incurred by the Administrative Agent and the
Lenders in connection with this Letter Agreement (the “Letter Agreement Expenses”). 
 Purchaser agrees that the
Purchase Fee shall not be refundable and shall not be applied to payment of the Purchase Price, the Credit Agreement Expenses or the Letter Agreement Expenses. All amounts payable hereunder shall be paid in immediately available funds.
Notwithstanding the foregoing or anything contained in this Letter Agreement to the contrary, in the event Borrower refinances the Credit Agreement and such refinancing closes on or before August 20, 2013 and results in the assignment and
assumption of all Loans and Commitments under the Credit Agreement and the assumption of the administrative agent role, Administrative Agent and the Lenders will refund 50% of the Purchase Fee to Purchaser. 

3. Assignment and Assumption. On the Closing Date, (a) Purchaser and Borrower shall execute and deliver to Administrative
Agent an Assignment and Assumption in the form attached as Exhibit G to the Credit Agreement, (b) Administrative Agent shall resign as administrative Agent under the Credit Agreement and Purchaser hereby shall accept and assume all obligations
as administrative agent thereunder and (c) Purchaser and Borrower shall execute and deliver to Administrative Agent all other documents necessary to consummate the Purchase Transaction, including assignments and/or amendments to the Loan
Documents and/or Intercreditor Agreements. 
 4. Loan Documents. On the Closing Date, Administrative Agent shall deliver
to Purchaser an original counterpart of each Loan Document (or if an original counterpart of each such Loan Document is not in Administrative Agent’s possession, a certified photocopy of each such original counterpart). 

5. Borrower’s Consent and Agreement. Borrower acknowledges and consents to the sale of all Commitments and Loans outstanding
under the Credit Agreement to Purchaser. Purchaser and Borrower acknowledge that Administrative Agent and the Lenders have agreed to extend the date for an interim Borrowing Base redetermination, waive certain covenant violations and amend the
Credit Agreement based solely on Purchaser’s agreement to purchase the Commitments and Loans on the Closing Date and but for such agreement the Borrowing Base would be reduced on July 31, 2013 from $25,000,000 to $15,000,000. Further,
Borrower acknowledges and agrees that this Letter Agreement shall not in any manner create a course of dealing or otherwise impair the ability of the Administrative Agent or the Lenders to declare a Default or Event of Default under or otherwise
enforce the terms of the Credit Agreement or any other Loan Document with respect to any matter. 
 6. Reservation of
Rights. Nothing contained in this Letter Agreement is intended to limit, nor shall it be deemed to limit or in any way affect, any of the Administrative Agent’s or Lenders’ claims, rights or remedies under the Credit Agreement or any
of the other Loan Documents, and nothing in this Letter Agreement shall in any way modify, change, impair, affect, diminish, or release any liability of Borrower and/or any Guarantor under or pursuant to the Credit Agreement or any of the other Loan
Documents or entitle Borrower and/or any Guarantor to any other or further notice or demand whatsoever. Nothing contained herein, nor any failure by the Administrative Agent or any Lender to exercise any of its rights or remedies under the Credit
Agreement or any of the other Loan Documents, shall be deemed to constitute, 

 
nor is it intended to constitute, any waiver whatsoever of any: (a) Default or Event of Default that may exist under the Credit Agreement or under any other Loan Document; (b) term,
provision, condition, covenant or agreement contained in the Credit Agreement or in any of the other Loan Documents; or (c) rights or remedies of the Administrative Agent or any Lender under the Credit Agreement or any of the other Loan
Documents, at law or in equity or otherwise, or prejudice or preclude any other or further exercise of any such right or remedy by the Administrative Agent or the Lenders, all of which are hereby reserved. 

7. DISCLAIMER. PURCHASER ACKNOWLEDGES AND AGREES THAT ADMINISTRATIVE AGENT AND THE LENDERS ARE NOT MAKING ANY REPRESENTATION OR
WARRANTY OF ANY KIND OR NATURE INCLUDING, WITHOUT LIMITATION, ANY REPRESENTATION OR WARRANTY WITH RESPECT TO (A) THE LOAN, THE LOAN DOCUMENTS, THE BORROWER OR THE MORTGAGED PROPERTY OR THE COLLATERAL, (B) THE BUSINESS OR FINANCIAL
CONDITION OF BORROWER OR ANY GUARANTOR, (C) THE PHYSICAL CONDITION OF ANY PROPERTY OR ASSET COMPRISING ALL OR A PART OF ANY MORTGAGED PROPERTY OR THE COLLATERAL, (D) THE STATUS, PAYMENT OR NONPAYMENT OF ANY AMOUNTS DUE OR PAST DUE UNDER
THE LOAN DOCUMENTS OR ANY REAL ESTATE TAXES OR ASSESSMENTS WITH RESPECT TO ANY MORTGAGED PROPERTY, (E) THE PRESENCE OR ABSENCE OF ANY HAZARDOUS WASTE, TOXIC SUBSTANCES, ASBESTOS OR ASBESTOS CONTAINING MATERIALS AFFECTING ANY MORTGAGED PROPERTY,
(F) COMPLIANCE OR NON-COMPLIANCE OF THE MORTGAGED PROPERTY WITH ANY LAWS, RULES OR REGULATIONS, INCLUDING WITHOUT LIMITATION, THOSE REGARDING HAZARDOUS WASTE, TOXIC SUBSTANCES, ASBESTOS OR ASBESTOS CONTAINING MATERIALS, (G) THE LEASES,
INCOME OR EXPENSES OF ANY MORTGAGED PROPERTY, (H) COMPLIANCE OF ANY MORTGAGED PROPERTY WITH ANY APPLICABLE BUILDING CODES, ZONING ORDINANCES OR REGULATIONS, (I) THE CREDITWORTHINESS OF BORROWER OR THE VALUE OF THE MORTGAGED PROPERTY, OR
(J) THE ENFORCEABILITY OR LEGAL SUFFICIENCY OF ANY OF THE LOAN DOCUMENTS. PURCHASER AGREES THAT IT IS ACCEPTING THE LOAN AND THE LOAN DOCUMENTS AS IS. 
 8. RELEASE. UPON CLOSING THE PURCHASE TRANSACTION, PURCHASER ASSUMES THE RISK OF ADVERSE MATTERS WHICH MAY NOT HAVE BEEN REVEALED BY PURCHASER’S DUE DILIGENCE. AS OF THE CLOSING DATE,
PURCHASER, FOR ITSELF AND ITS AGENTS, AFFILIATES, SUCCESSORS AND ASSIGNS, HEREBY WAIVES, INDEMNIFIES, RELEASES AND FOREVER DISCHARGES ADMINISTRATIVE AGENT AND THE LENDERS, THEIR’S RESPECTIVE AGENTS, EMPLOYEES, DIRECTORS, OFFICERS, AFFILIATES,
INTEREST HOLDERS, SUCCESSORS AND ASSIGNS (COLLECTIVELY, THE “RELEASEES”) FROM ANY AND ALL RIGHTS, CLAIMS AND DEMANDS AT LAW OR IN EQUITY, WHETHER KNOWN OR UNKNOWN AT THE TIME OF THIS AGREEMENT, WHICH PURCHASER HAS OR MAY HAVE
IN THE FUTURE, ARISING OUT OF THE LOAN, THE LOAN DOCUMENTS, OR THE SALE AND ASSIGNMENT BY ADMINISTRATIVE AGENT AND THE LENDERS AND PURCHASE BY PURCHASER OF THE LOAN AND LOAN DOCUMENTS INCLUDING, WITHOUT LIMITATION, ALL CLAIMS IN TORT OR CONTRACT AND

 
ANY CLAIM FOR INDEMNIFICATION OR CONTRIBUTION ARISING UNDER FEDERAL, STATE OR LOCAL STATUTE, RULE OR REGULATION, AND ALL OTHER DUE DILIGENCE MATTERS DESCRIBED IN THIS SECTION OR ANY OTHER
PROVISIONS OF THIS AGREEMENT. 
 9. Entirety and Amendments. This Letter Agreement embodies the entire agreement between
the parties and supersedes all prior agreements and understandings, if any, relating to the subject matter hereof and thereof, and this Letter Agreement may be amended only by an instrument in writing executed by the party, or an authorized officer
of the party, against whom such amendment is sought to be enforced. 
 10. Parties Bound. This Letter Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 
 11. Headings.
Paragraph and section headings are for convenience of reference only and shall in no way affect the interpretation of this Letter Agreement. 
 12. Construction and Conflicts. The provisions of this Agreement shall be in addition to those of the Note, the Loan Documents and any guaranty, pledge or security agreement, note or other evidence
of liability held by Administrative Agent and Lenders, all of which shall be construed as complementary to each other. Nothing herein contained shall prevent the Administrative Agent or the Lenders from enforcing the Note, the Loan Documents and any
and all other notes, guaranty, pledge or security agreements in accordance with their respective terms. 
 13. Expenses of
Lender. Except as otherwise paid by Purchaser pursuant to the terms of this Letter Agreement, Borrower agrees to pay all costs and expenses of Lender (including, without limitation, the reasonable attorneys’ fees of Lender’s legal
counsel) incurred by Lender in connection with the preservation and enforcement of Administrative Agent’s and Lenders’ rights under this Letter Agreement and all reasonable costs and expenses of Administrative Agent and the Lenders
(including, without limitation, the reasonable fees and expenses of Administrative Agent’s and Lenders’ legal counsel) in connection with the negotiation, preparation, execution and delivery of this Letter Agreement, the Note and the other
Loan Documents and any and all amendments, assignments, modifications and supplements thereof or thereto. 
 14.
Counterparts. This Agreement may be separately executed in any number of counterparts, each of which shall be an original, but all of which, taken together, shall be deemed to constitute one and the same instrument. 

15. Governing Law. This Letter Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas
without regard to any choice-of-law provisions. 

 Please acknowledge your acceptance and agreement to the foregoing by signing and returning
this letter to Tammy Brennig, Andrews Kurth LLP, 600 Travis, Suite 4200, Houston, Texas 77002, facsimile 713-238-7201, email tammybrennig@andrewskurth.com. 

 

			
	 Very truly yours,

	
	CAPITAL ONE, NATIONAL ASSOCIATION, as Administrative Agent.
		
	By:	 	/s/ Matthew L. Molero
	Name: Matthew L. Molero
	Title: Vice President

 Agreed to this 31st day of July, 2013 

 

			
	PPVA BLACK ELK EQUITY LLC
		
	By:	 	/s/ Daniel Small
	Name:	 	Daniel Small
	Title:	 	Managing Director
	
	BLACK ELK ENERGY OFFSHORE OPERATIONS, LLC,
	 a Texas limited liability company

		
	By:	 	/s/ Bruce P. Koch
	Name:	 	Bruce P. Koch
	Title:	 	Chief Financial Officer

 Agreed to by Lenders this 31st day of July, 2013 

 

			
	IBERIABANK
		
	By:	 	/s/ W. Bryan Chapman
	Name:	 	W. Bryan Chapman
	Title:	 	EVP and Energy Lending Manager
	
	LENDER:
	
	CADENCE BANK, N.A.
		
	By:	 	/s/ Eric Broussard
	Name:	 	Eric Broussard
	Title:	 	Senior Vice PresidentEX-10.4

 Exhibit 10.4 

GUARANTY 

This Guaranty, dated as of July 31, 2013 (as amended, supplemented or otherwise modified from time to time, this
“Guaranty”), is made and entered into by Platinum Partners Value Arbitrage Fund L.P., a Delaware limited partnership, Platinum Montaur Life Sciences, LLC, a Delaware limited liability company, Meserole Group LLC, a Delaware limited
liability company, PPVA Black Elk Investors LLC, a Delaware limited liability company and DMRJ Group LLC, a Delaware limited liability company (each a “Guarantor” and collectively, the “Guarantors”), in favor of
Capital One, N.A, as Administrative Agent for the benefit of the Lenders under the Credit Agreement (as defined below) (the “Beneficiary”). Capitalized terms used in this Guaranty, but not defined herein, shall have the meanings
given to such terms in the Purchase Agreement (hereafter defined). 
 RECITALS 

A.    Black Elk Energy Offshore Operations, LLC, a Texas limited liability company, as borrower, Capital One, N.A, as
Administrative Agent and the Lenders party thereto (the “Lenders”) entered into that certain Credit Agreement dated December 24, 2010 (as amended, the “Credit Agreement”). 

B.    Capital One, N.A., as Administrative Agent, the Lenders and PPVA Black Elk Equity LLC, a Delaware limited
liability company (“Purchaser”) have entered into a Letter Loan Purchase Agreement dated July 31, 2013 (the “Purchase Agreement”) pursuant to which Purchaser has agreed to (i) purchase all of the
Commitments and Loans under the Credit Agreement from the Lenders and (ii) assume the obligations of the Administrative Agent under the Credit Agreement and the Loan Documents as defined therein and executed in connection therewith. 

C.    The Purchase Agreement requires Guarantors to execute and deliver this Guaranty to Beneficiary to secure the
obligations of Purchaser under the Purchase Agreement. 
 D.    Each Guarantor is familiar with the Purchase
Agreement and acknowledges that it will benefit if the transactions provided for in the Purchase Agreement are consummated. 

AGREEMENT 

For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Guarantor agrees as follows:

 ARTICLE 1. 
 DEFINITIONS 
 Section 1.01    Definitions. 

“Bankruptcy Event” shall be deemed to occur with respect to any Person if (a) such Person shall institute a
voluntary case seeking liquidation or reorganization under applicable bankruptcy law or shall consent to the institution of an involuntary case thereunder against it; (b) such Person shall file a petition, answer or consent or shall otherwise
institute any similar proceeding 

 
under any other applicable federal, state or other applicable law, or shall consent thereto; (c) such Person shall apply for, or by consent there shall be an appointment of, a receiver,
liquidator, sequestrator, trustee or other officer with similar powers for itself or any substantial part of its assets; (d) such Person shall make an assignment for the benefit of creditors; (e) such Person shall admit in writing its
inability to pay its debts generally as they become due; (f) if an involuntary case shall be commenced seeking the liquidation or reorganization of such Person under applicable bankruptcy law or any similar proceeding shall be commenced against
such Person under any other applicable federal, state or other applicable law and (i) the petition commencing the involuntary case is not timely controverted; (ii) the petition commencing the involuntary case is not dismissed within sixty
(60) days of its filing; (iii) an interim trustee is appointed to take possession of all or a portion of the property, and/or to operate all or any part of the business of such Person and such appointment is not vacated within sixty
(60) days; or (iv) an order for relief shall have been issued or entered therein; or a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee or other officer
having similar powers of such Person or of all or a part of its property, shall have been entered; or (g) any other similar relief shall be granted against such Person under any federal, State or other applicable law. 

“Beneficiary” has the meaning given in the preamble hereof. 

“Guaranteed Obligations” has the meaning given in Section 2.01 hereof. 

“Guarantor” or “Guarantors” has the meaning given in the preamble hereof. 

“Guaranty” has the meaning given in the preamble hereof. 

“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company,
partnership, governmental authority or other entity. 
 “Purchase Agreement” has the meaning given in
Recital B hereof. 
 “Termination Date” means the earlier of the following occurs: (a) the date
upon which the closing occurs pursuant to the Purchase Agreement or (b) the termination of the Purchase Agreement as a result of the closing of a refinance of the Credit Agreement by Borrower. 

ARTICLE 2. 
 THE
GUARANTY 
 Section 2.01    The Guarantee. Subject to the provisions of this Guaranty, each Guarantor
hereby irrevocably and unconditionally guarantees the full, complete and timely performance by Purchaser of its obligations (the “Guaranteed Obligations”) under the Purchase Agreement, whether for the payment of money, the giving of
indemnification, the performance of obligations or otherwise. 

 Section 2.02    No Set-Off. 

(a)    Each Guarantor agrees to pay all amounts that may be due from time to time with respect to the Guaranteed
Obligations, directly and without deduction, set-off or counterclaim, to Beneficiary. 
 (b)    Each
Guarantor confirms and agrees, for the benefit of Beneficiary, that, in making payments in respect of this Guaranty, it will not offset any amount owed to it by Purchaser. 
 Section 2.03    Subrogation. Each Guarantor shall be subrogated to all rights of Beneficiary in respect of any amounts paid by such Guarantor pursuant to the provisions of this
Guaranty; provided, however, that such Guarantor shall not be entitled to enforce or to receive any payments arising out of or based upon such right of subrogation if any Guaranteed Obligations then due have not been satisfied. If any amount is paid
to a Guarantor on account of subrogation rights under this Guaranty in violation of this Section 2.03, such amount shall be held in trust for the benefit of Beneficiary and shall be promptly paid to Beneficiary to be credited and applied to the
Guaranteed Obligations, whether matured or unmatured or absolute or contingent, in accordance with the terms of the Purchase Agreement. 
 Section 2.04    Obligations Unconditional. 

(a)    This Guaranty is a guaranty of payment and performance and not of collection and may be enforced by the
Beneficiary directly against any Guarantor without any requirement Beneficiary must first exercise its rights against Purchaser. There are no conditions precedent to the enforcement of this Guaranty. The obligations of the Guarantor hereunder shall
be continuing, absolute and unconditional and, without limiting the generality of the foregoing, shall not be released, discharged or otherwise affected by: 
 (i)    at any time or from time to time, without notice to Guarantor, the time for any performance of or compliance with any of the Guaranteed Obligations shall be extended, or such
performance or compliance shall be waived; 
 (ii)    any of the acts (other than payment or
other satisfaction of the Guaranteed Obligations) mentioned in any of the provisions of the Purchase Agreement, or any other agreement or instrument referred to herein or therein shall be done or omitted; 

(iii)    the Guaranteed Obligations shall be modified, supplemented, increased or amended in any
respect or any right under the Purchase Agreement or any other agreement or instrument relating thereto (other than this Guaranty) shall be waived or any other guarantee of the Guaranteed Obligations or any other letter of credit, guaranty or
security therefor shall be released or exchanged in whole or in part or otherwise dealt with; 

(iv)    at any time, the Purchase Agreement or any other agreement or instrument relating thereto
(other than this Guaranty) shall cease to be valid or enforceable, other than the termination of the Purchase Agreement in accordance with its terms; or 

 (v)    a Bankruptcy Event shall occur with respect to
any Guarantor or Purchaser. 
 (b)    Each Guarantor hereby unconditionally and irrevocably waives diligence,
presentment, demand, protest and all notices whatsoever in respect of the Guaranteed Obligations and this Guaranty, and any requirement that the Beneficiary exhaust any right, power or remedy or proceed against Purchaser or any other Person under
the Purchase Agreement. This Guaranty constitutes a guaranty of payment and not of collection, and the obligations of Guarantor under this Guaranty are primary obligations of Guarantor, and a separate action or actions may be brought and prosecuted
against Guarantor to enforce this Guaranty, irrespective of whether any action is brought against Purchaser or any other Person or whether Purchaser or any other Person is joined in such action or actions. 

(c)    Each Guarantor warrants and agrees that each of the waivers and consents set forth in this Guaranty are made
voluntarily and unconditionally after consultation with legal counsel and with full knowledge of their significance and consequences, with the understanding that events giving rise to any defense or right waived may diminish, destroy or otherwise
adversely affect rights which Guarantor otherwise may have against Purchaser or any other Person or against any collateral. If, notwithstanding the intent of the parties that the terms of this Guaranty shall control in any and all circumstances, any
such waivers or consents are determined to be unenforceable under applicable law, such waivers and consents shall be effective to the maximum extent permitted by law. 
 ARTICLE 3. 
 REPRESENTATIONS 

Section 3.01    Representations and Warranties. Each Guarantor represents and warrants to Beneficiary that as
of the date of this Guaranty: 
 (a)    Organization; Corporate Authority. Guarantor (1) is duly
incorporated and validly existing under the laws of its jurisdiction of incorporation, and (2) has all requisite company power and authority to own its assets and to carry on the business in which it is engaged and to execute, deliver and
perform its obligations under this Guaranty. Guarantor is not subject to any current orders for winding up, or appointment of a receiver or liquidator or to any notice of any proposed deregistration. 

(b)    Authorization; Enforceability; No Conflicts. The execution and delivery by Guarantor of this Guaranty
and the performance by Guarantor of its obligations under this Guaranty have been duly authorized by all necessary corporate action and do not violate, breach or contravene (1) Guarantor’s organizational documents or (2) any law or
contractual restriction binding on or affecting Guarantor or its properties except where such violation, breach or contravention, individually or in the aggregate, could not reasonably be expected to have a material adverse effect on
Guarantor’s ability to perform its obligations under this Guaranty. This Guaranty has been duly executed and delivered by Guarantor, and constitutes the legal, valid and binding obligation of Guarantor, enforceable against it in accordance with
its terms, except as limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity, including concepts of

 
materiality, reasonableness, good faith and fair dealing and the possible unavailability of specific performance or injunctive relief (regardless of whether such enforceability is considered in a
proceeding in equity or at law). All authorizations, consents and approvals of any governmental authority or third party necessary for the execution, delivery or performance by Guarantor of this Guaranty have been obtained and are in full force and
effect. 
 Section 3.02    Material Subsidiary Representation. Platinum Partners Value Arbitrage
Fund L.P. represents and warrants to Beneficiary that as of the date of this Guaranty that the other Guarantors party hereto constitute all of the subsidiaries of Platinum Partners Value Arbitrage Fund L.P. with assets in excess of $10,000,000 and
which appear in the consolidated financial statements of Platinum Partners Value Arbitrage Fund L.P. and its subsidiaries. 

ARTICLE 4. 

MISCELLANEOUS 

Section 4.01    No Waiver. No failure on the part of Beneficiary to exercise, and no course of dealing
with respect to, and no delay in exercising, any right, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. The remedies herein provided are cumulative and are not exclusive of any remedies provided by law. 
 Section 4.02    No Consequential or Punitive Damages. In no event shall Guarantor be liable hereunder to any party for any indirect, consequential damages of any nature
whatsoever, whether based on contract or tort, or for any punitive or exemplary damages nor shall its liability in respect of the Guaranteed Obligations exceed that of Purchaser. 

Section 4.03    Notices, Etc. All notices, requests and demands hereunder shall be in writing and faxed
or delivered, (a) if to Guarantor, to the address listed under such Guarantor’s signature block; (b) if to Beneficiary, Capital One, N.A., 5718 Westheimer Road, Suite 1430, Houston, Texas 77057, Attention: Scott Joyce, facsimile:
(713) 435-5106; email: scott.joyce@capitalone.com or (c) as to any party, at such other address or facsimile number as shall be designated by such party in a written notice to each other party. 

Section 4.04    Amendments. Etc. The terms of this Guaranty may be waived, altered or amended only by an
instrument in writing duly executed by Guarantor and Beneficiary. 
 Section 4.05    Benefit,
Successors and Assigns. This Guaranty is for the benefit of and is enforceable by Beneficiary and not for the benefit of or enforceable by any other Person. This Guaranty shall be binding upon Guarantor and its successors and shall inure to the
benefit of the successors and assigns of Beneficiary. This Guaranty may not be assigned by Guarantor to any other Person without the prior written consent of the Beneficiary. 
 Section 4.06    Captions. The captions and section headings appearing herein are included solely for convenience of reference and are not intended to affect the
interpretation of any provision of this Guaranty. 

 Section 4.07    Counterparts. This Guaranty and each
amendment, waiver and consent with respect hereto may be executed in any number of counterparts, and by different parties thereto 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 instrument. 
 Section 4.08    Severability. If any
provision hereof is invalid and unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (a) the other provisions hereof shall remain in full force and effect in such jurisdiction and (b) the invalidity or
unenforceability of any provision hereof in any jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction. 
 Section 4.09    Expenses, Etc. Guarantor agrees to reimburse Beneficiary for all reasonable costs and expenses of Beneficiary (including the reasonable fees and expenses of
legal counsel) incurred in connection with (a) any enforcement or collection proceeding resulting from this Guaranty, including in connection with any bankruptcy, insolvency, receivership, foreclosure, winding up or liquidation proceedings,
judicial or regulatory proceedings and workout, restructuring or other negotiations or proceedings (whether or not the workout, restructuring or transaction contemplated thereby is consummated) and (b) the enforcement of this Section 4.09.
This Section 4.09 shall survive the termination of this Guaranty. 
 Section 4.10    Agreements
Superseded. This Guaranty supersedes all prior agreements and understandings, written or oral, between the parties with respect to the subject matter of this Guaranty. 
 Section 4.11    GOVERNING LAW. This Agreement shall be construed, enforced and interpreted according to the laws of the State of Texas without regard to the conflicts of
law rules thereof. 
 Section 4.12    WAIVER OF JURY TRIAL. EACH PARTY TO THIS AGREEMENT HEREBY
IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT, THE PURCHASE AGREEMENT, THE JOA OR ANY ANCILLARY AGREEMENT. 
 Section 4.13    Termination. This Guaranty shall terminate and be of no force and effect with respect to Guaranteed Obligations arising on and after the Termination Date.

 [SIGNATURES FOLLOW] 

 IN WITNESS WHEREOF, Guarantors have caused this Guaranty to be duly executed and delivered
as of the day and year first above written. 
  

			
	GUARANTORS:
	
	 PLATINUM PARTNERS VALUE
 ARBITRAGE FUND L.P

		
	By:	 	/s/ Uri Landesman
	Name:	 	Uri Landesman
	Title:	 	President

  

			
	Address:	 	152 West 57th Street, 4th Floor
		 	New York, New York 10019

  

			
	
	PLATINUM MONTAUR LIFE SCIENCES, LLC
		
	By:	 	/s/ Uri Landesman
	Name:	 	Uri Landesman
	Title:	 	President

  

			
	Address:	 	152 West 57th Street, 4th Floor
		 	New York, New York 10019

  

			
	
	MESEROLE GROUP LLC
		
	By:	 	/s/ Uri Landesman
	Name:	 	Uri Landesman
	Title:	 	President

  

			
	Address:	 	152 West 57th Street, 4th Floor
		 	New York, New York 10019

 
			
	
	PPVA BLACK ELK INVESTORS LLC
		
	By:	 	/s/ Uri Landesman
	Name:	 	Uri Landesman
	Title:	 	President

  

			
	Address:	 	152 West 57th Street, 4th Floor
		 	New York, New York 10019

  

			
	
	DMRJ GROUP LLC
		
	By:	 	/s/ Uri Landesman
	Name:	 	Uri Landesman
	Title:	 	President

  

			
	Address:	 	152 West 57th Street, 4th Floor
		 	New York, New York 10019

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