Document:

bspe_ex1003.htm

Exhibit 10.03

 

PLEDGE AGREEMENT

 

This PLEDGE AGREEMENT (“Pledge Agreement”) is dated effective as of this _____ day of July, 2012 (“Effective Date”), and is executed by and among BLACKSANDS PETROLEUM, INC., a Nevada corporation (“BSPI”), in favor of KP-RAHR VENTURE III, LLC, a Texas limited liability company (“KP-RAHR”), whose
respective addresses appear below.  KP-RAHR and BSPI are herein each a “Party” and called herein collectively the “Parties.”

 

RECITALS:

 

WHEREAS, BSPI and KP-RAHR are parties to a Contribution Agreement (“Contribution Agreement”), a Company Agreement with respect to the entity known as APCLARK, LLC, (“APCLARK) a Delaware limited liability company (“Company Agreement”), wherein KP-RAHR has agreed to contribute capital to APCLARK in exchange for a certain preferred return and related rights relative to the same, and an Escrow Agreement (of which the Contribution Agreement, Company Agreement, and Escrow Agreement are all of even dates herewith).  The Contribution Agreement, Company Agreement, Escrow Agreement, and this Pledge Agreement are collectively referred to herein as the “Membership Interest
Purchase Documents”;

 

WHEREAS, pursuant to the Membership Interest Purchase Documents, and subject to and upon the terms and conditions set forth therein, BSPI has agreed to grant a “Class B Non-voting Convertible Preferred Membership” interest in APCLARK (“Class B Membership Interest”) to KP-RAHR for the purchase amount and subject to the terms and conditions as contained in the Membership Interest Purchase Documents, and BSPI has retained certain membership interests in APCLARK (“Class A Membership Interest”);

 

WHEREAS, it is a condition precedent to the Contribution Agreement that BSPI shall have executed and delivered this Pledge Agreement to KP-RAHR; and

 

WHEREAS, BSPI has determined that: (i) it will benefit from the sale of the Membership Interest to KP-RAHR under the terms and conditions evidenced by and contemplated in the Membership Interest Purchase Documents; (ii) it will benefit from executing and delivering this Pledge Agreement; and (iii), it is in BSPI’s best interest to execute and deliver, and if called upon to do so, to perform its obligations under this Pledge Agreement.

 

TERMS:

 

NOW, THEREFORE, in consideration of the premises and the agreements herein and in order to induce KP-RAHR to purchase the Membership Interest pursuant to the Note and the Membership Interest Purchase Documents, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.             Definitions.  Capitalized terms used but not defined in this Pledge Agreement shall have the respective meanings set forth in the Contribution Agreement.

 

	PLEDGE AGREEMENT	(Page 1 of 7)  	BLACKSANDS – KP-RAHR

 

  

  

  

 

2.             Creation of Security Interest.  BSPI hereby grants to KP-RAHR a first priority lien and security interest in the Class A Membership Interest, or other equity interests which it may now or hereinafter hold or become entitled in APCLARK, issued in the name of BSPI, or to which BSPI is entitled (collectively, the “Pledged Interests”), after the date hereof, whether or not in respect of the Pledged Interests (collectively, and to the extent
existing as of the Effective Date, the “Pledged Assets”), to secure the prompt payment and performance of the Membership Interest Purchase Documents, including, without limitation, the Contribution Agreement and Company Agreement (collectively, the “Secured Obligations”), and all renewals, extensions, and rearrangements of the Secured Obligations.  In the event that BSPI shall receive from time to time any of such items of Pledged Assets, BSPI shall hold same as trustee for KP-RAHR, shall not commingle same with other assets of BSPI, and will immediately deliver same to KP-RAHR with, as applicable, BSPI’s endorsement when necessary or appropriate stock powers duly executed in blank to be held hereunder in the same manner as the property specifically described above is held hereunder.

 

3.             Representations, Warranties, and Covenants of BSPI.  BSPI hereby represents, warrants, covenants, and agrees that:

 

(a)           Except for the security interest granted hereby, BSPI is the record and beneficial owner of the Pledged Assets, free of any lien or any other right, title, or interest of any person other than permitted liens, and BSPI will defend the Pledged Assets against all claims and demands of all persons at any time claiming the same or an interest therein.

 

(b)           BSPI has full power and authority to enter into this Pledge Agreement and to grant to KP-RAHR a valid first priority security interest in the Pledged Assets as herein provided.  This Pledge Agreement constitutes a valid and legally binding obligation of BSPI, enforceable in accordance with its terms.  The execution, delivery, and performance hereof by BSPI are not in contravention of any indenture, agreement, judgment, order, or undertaking to which BSPI is a party or by which BSPI or the Pledged Assets are bound.

 

(c)           BSPI will not sell, transfer, or otherwise dispose of any of the Pledged Assets or any interest therein, or create, incur, or permit to exist any pledge, mortgage, lien, charge, adverse claim, encumbrance, or security interest in or with respect to the Pledged Assets, other than that the security interest created hereby and other permitted liens.

 

(d)           BSPI authorizes KP-RAHR to file, in jurisdictions where this authorization will be given effect, a financing statement pursuant to the Uniform Commercial Code (“Financing Statement”) signed (if a signature is required) only by KP-RAHR covering the Pledged Assets;

 

(e)           BSPI has received and will receive a material benefit from the transactions evidenced by and contemplated in the Membership Interest Purchase Documents.  This Pledge Agreement is entered into by BSPI in furtherance of its business interests.

 

4.             Default.  Under this Agreement, a default (“Default” or “Event of Default”) shall exist upon a material breach hereof, or the occurrence and during the continuance of an Event of Default under any of the other Membership Interest Purchase Documents (as such term is defined therein).

 

	PLEDGE AGREEMENT	(Page 2 of 7)  	BLACKSANDS – KP-RAHR

 

  

  

  

 

5.             Remedies.  Subject to the provisions of this Pledge Agreement, the parties hereto shall have all the rights and remedies granted a debtor under Chapter 9 of the Texas Business and Commerce Code as presently or hereafter amended, and any additional remedies permitted under the Membership Interest Purchase Documents.  Additionally, upon the occurrence of any Event of Default, KP-RAHR may remove the member(s) of the Board of Directors of APCLARK appointed by BSPI until such time that said default has been
cured to the satisfaction of KP-RAHR.

 

6.             Release of Pledged Assets.  Upon full and final payment of the Secured Obligations, KP-RAHR shall promptly release and deliver the Pledged Assets to BSPI to the extent same has not been sold or otherwise disposed of pursuant to this Pledge Agreement.

 

7.             Notice.  All notices, demands, requests, and other communications required or permitted hereunder shall be in writing, and shall be: (i) personally delivered with a written receipt of delivery; (ii) sent by a nationally recognized overnight delivery service requiring a written acknowledgement of receipt or providing a certification of delivery or attempted delivery; (iii) sent by certified or registered mail, return receipt requested; or (iv), sent by confirmed facsimile transmission with an original copy thereof
transmitted to the recipient by one of the means described in (i)-(iii) above no later than three (3) business days thereafter.  All notices shall be deemed effective when actually delivered as documented in a delivery receipt; provided, however, that if the notice was sent by overnight courier or mail as aforesaid and is affirmatively refused or cannot be delivered during customary business hours by reason of the absence of a signatory to acknowledge receipt, or by reason of a change of address with respect to which the addressor did not have either knowledge or written notice delivered in accordance with this paragraph, then the first attempted delivery shall be deemed to constitute delivery.  Each party shall be entitled to change its address for notices from time to time by delivering to the other party notice thereof in the manner herein provided for the
delivery of notices.  All notices shall be sent to the addressee at its address set forth following its name below:

 

To KP-RAHR:

 

	
KP-Rahr Venture III, LLC

	
940 Gemini Street, Suite 200

	
Houston, Texas 77058

	
ATTN:

	
Michael Keener

	
TELE:

	
281-218-6245

	
FAX:

	  

with a copy to:

	
The Strong Firm P.C.

	
10003 Woodloch Forest Drive, Suite 210

	
The Woodlands, Texas 77380

	
ATTN:

	
Bret L. Strong

	
TELE:

	
281-367-1222

	
FAX:

	
281-210-1361

 

	PLEDGE AGREEMENT	(Page 3 of 7)  	BLACKSANDS – KP-RAHR

 

  

  

  

 

To BSPI:

 

	
Blacksands Petroleum, Inc.

	
800 Bering, Suite 250

	
Houston, Texas 77057

	
ATTN:

	
Chief Executive Officer

	
TELE:

	
(713) 554-4490

	
FAX:

	
(713) 583-1617

	  

with a copy to:

	
Sichenzia Ross Friedman Ference LLP

	
61 Broadway, 32nd Floor

	
New York, New York 10006

	
ATTN:

	
Marc J. Ross, Esq.

	
TELE:

	
(212) 930-9700

	
FAX:

	
(212) 930-9725

	  

8.             Binding Effect.  This Pledge Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

 

9.             Amendment and Assignment.  No amendment, modification, or alteration of the terms of this Pledge Agreement shall be binding unless it is in writing and duly executed by the parties hereto.  Furthermore, it is agreed and understood that in the event that KP-RAHR shall foreclose upon the Pledged Assets, KP-RAHR shall have the right to assign all or any portion of those rights to an entity which is controlled by, under the control of, or in common control with KP-RAHR.

 

10.           Waiver.  No waiver by KP-RAHR of any failure by BSPI to satisfy any condition or stipulation contained herein shall be binding unless it is in writing and duly executed by KP-RAHR.  The waiver by KP-RAHR of any breach of any term, covenant, or condition herein contained shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant, or condition herein contained, or affect in any way any rights arising by virtue of any prior or subsequent breach.

 

11.           Headings.  All article or section titles or captions in this Pledge Agreement are for convenience only, shall not be deemed part of this Pledge Agreement, and in no way shall define, limit, extend, or describe the scope or intent of any provisions hereof.

 

12.           Construction.  If any ambiguity or question of intent or interpretation arises as to this Pledge Agreement, this Pledge Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party hereto by virtue of the authorship of any of the provisions of this Pledge Agreement.

 

	PLEDGE AGREEMENT	(Page 4 of 7)  	BLACKSANDS – KP-RAHR

 

  

  

  

 

13.           Severability.  If a provision of this Pledge Agreement is held to be illegal, invalid, or unenforceable under present or future laws, such provision shall be considered as having been severed from this Pledge Agreement, this Pledge Agreement shall be construed and enforced as if such provision never comprised a part hereof, and the remaining provisions of this Pledge Agreement shall continue in full force and effect.

 

14.           Third Party Beneficiaries.  This Pledge Agreement shall not confer any rights or remedies upon any person or entity other than KP-RAHR and BSPI and their respective successors and permitted assigns.

 

15.           Governing Law.  This Pledge Agreement, the other Membership Interest Purchase Documents, and the legal relations between the parties thereto shall be governed by and construed and enforced in accordance with the laws of the State of Texas without reference to the conflict of law provisions thereof.

 

16.           Entire Agreement.  This Pledge Agreement contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, understandings, and statements, written or oral, with respect thereto (not including the Membership Interest Purchase Documents).

 

17.           Counterparts.  This Pledge Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.  Facsimile signatures shall be given the same effect as original signatures.

 

[SIGNATURE PAGES TO FOLLOW]

 

	PLEDGE AGREEMENT	(Page 5 of 7)  	BLACKSANDS – KP-RAHR

 

  

  

  

 

[KP-RAHR SIGNATURE PAGE]

 

IN WITNESS WHEREOF, the parties hereto have executed this Pledge Agreement in multiple originals effective as of the day and year first above written.

 

 

	 	KP-RAHR VENTURE III, LLC: 

 

By: /s/ Michael R. Keener                       

Name:  Michael R. Keener

Title:  Manager

 

 

	PLEDGE AGREEMENT	(Page 6 of 7)  	BLACKSANDS – KP-RAHR

                                                           

  

  

  

[BSPI SIGNATURE PAGE]

 

IN WITNESS WHEREOF, the parties hereto have executed this Pledge Agreement in multiple originals effective as of the day and year first above written.

 

	 	

BLACKSANDS PETROLEUM, INC.:

 

By: /s/ David Demarco                    

Name:  David Demarco

Title:  President

 

 

 

	PLEDGE AGREEMENT	(Page 7 of 7)  	BLACKSANDS – KP-RAHRbspe_ex1004.htm

Exhibit 10.04

ESCROW AGREEMENT

FOR PLEDGE OF MEMBERSHIP INTEREST

This ESCROW AGREEMENT FOR PLEDGE OF MEMBERSHIP INTEREST(“Escrow Agreement”), dated as of this 20thday of July 2012, is by and between APCLARK, LLC, a Delaware limited liability company whose mailing address is 800 Bering, Suite 250, Houston, Texas 77057(“APCLARK”), BLACKSANDS PETROLEUM, INC., a Nevada corporation, as holder of certain membership interestsinAPCLARK,whose mailing address is 800 Bering, Suite 250, Houston, Texas 77057(“BSPI”), KP-RAHR VENTURE III, LLC, a Texas limited liability companywhose mailing address is 940 Gemini Street, Suite 200, Houston, Texas
77058(“KP-RAHR”);and THE STRONG FIRM P.C., a Texas professional corporation whose permanent mailing address is 10003 Woodloch Forest Drive, Suite 210, The Woodlands, Texas 77380 (“Escrow Agent”).

RECITALS:

A.           Under that certainContribution Agreement (“Contribution Agreement”),Company Agreement(“Company Agreement”),and Pledge Agreement (“Pledge”), all of which are of even date herewith, BSPI has granted to KP-RAHR a security interest in its membership interest in APCLARK (“Membership Interest”); and

B.           Pursuant to the Contribution Agreement, the Company Agreement,and the Pledge,certificates evidencing the Membership Interest are to be placed in escrow.

TERMS:

NOW THEREFORE, in exchange of the mutual promises contained herein and for other good and valuable consideration, the parties agree as follows:

SECTION 1.  ESCROWED CERTIFICATES

Upon execution of this Escrow Agreement, BSPIshall have delivered to the Escrow Agent membership interest certificates of APCLARK No. __through ___,equal to the total amount of all of the Membership Interest held by BSPI in APCLARK, (“Escrowed Certificates”), together with a membership interest power endorsed in blank and evidencing all of BSPI’s ownership interest in APCLARK. The Escrowed Certificates will be held by the Escrow Agent subject to the terms and conditions of this Escrow Agreement.

SECTION 2.  SECURITY

Subject to terms of this Escrow Agreement, the Escrow Agent will hold the Escrowed Certificates as agent for APCLARK, creating a perfected security interest in the Membership Interest on behalf ofKP-RAHR securing the faithful performance of BSPI’s obligations pursuant to the Contribution Agreement, Company Agreement and the Pledge.

SECTION 3.  TERM OF ESCROW

This Escrow Agreement will commence on delivery of the Escrowed Certificates to the Escrow Agent, and will terminate on final distribution of the Escrowed Certificates by the Escrow Agent pursuant to this Escrow Agreement.

 

Page 1 of 5 - Escrow Agreement

  

  

  

SECTION 4.  RELEASE OF ESCROWED CERTIFICATES

Upon full and complete payment of all preferred returns, return of KP-RARH’s capital commitment, conversion of KP-RAHR’s membership interest in APCLARK, and faithful performance of all the obligations of BSPI pursuant to the Contribution Agreement and in accordance with the Pledge being confirmed by KP-RAHR, the Escrow Agent shall release the corresponding Escrowed Certificate associated with such payment to BSPI.

 

SECTION 5.  ESCROW AGENT’S LIMITED DUTIES

In consideration of the Escrow Agent’s acceptance of this Escrow Agreement, the BSPI and APCLARK agree as follows:

(a)  The Escrow Agent’s obligations and duties in connection with this Escrow Agreement are confined to those specifically enumerated in this Escrow Agreement;

(b)  The Escrow Agent will not be liable or responsible in any manner for the sufficiency, correctness, genuineness, or validity of any instruments deposited with the Escrow Agent, or with reference to the form of execution of the instruments or the identity, authority, or rights of any person executing or depositing the instruments;

(c)  The Escrow Agent is under no obligation to ascertain the terms or conditions of any instruments or to comply in any respect with the terms of the instruments; and

(d)  The Escrow Agent will not be liable for any loss that may occur by reason of forgeries or false representations by others, resulting from the exercise of the Escrow Agent’s discretion, or for any other reason, except for the Escrow Agent’s gross negligence or willful misconduct.

(e)  In the event of any dispute with respect to the Escrowed Certificates, Escrow Agent shall have the right at any time to deposit the Escrowed Certificates with the clerk or registry of any federal or state court sitting in Montgomery County, Texas.  Escrow Agent shall give written notice of such deposit to the parties.

(f)  Escrow Agent may resign as Escrow Agent by giving three (3) days written notice to the parties of its resignation.  Escrow Agent will then deliver the Escrowed Certificates it is holding under the terms of this agreement in accordance with the joint written instructions given it by BSPI and KP-RAHR.  If no instructions are given to Escrow Agent within the stated time period, Escrow Agent is authorized to deposit all the Escrowed Certificates with the clerk or registry of any federal or state court sitting in Montgomery County, Texas.

(g)  The parties acknowledge that Escrow Agent is acting solely as a stakeholder at their request and for their convenience, that Escrow Agent shall not be deemed to be the agent of either of the parties by reason of this Agreement, and that Escrow Agent shall not be liable to either of the parties for any act or omission on its part unless taken or suffered in bad faith, in willful disregard of this Agreement or involving gross negligence. The parties shall jointly and severally indemnify and hold Escrow Agent harmless from and against all costs, claims and expenses, including reasonable attorneys' fees, incurred in connection with the performance of Escrow
Agent's duties hereunder, except with respect to actions or omissions taken or suffered by Escrow Agent in bad faith, in willful disregard of this Agreement or involving gross negligence on the part of Escrow Agent.

 

	
ESCROW AGREEMENT

	
(Page 2 of 5)

	
BLACKSANDS – KP-RAHR

  

  

  

SECTION 6.  FEES OF ESCROW AGENT

APCLARK will pay the fees of the Escrow Agent at the Escrow Agent’s standard billable rate for legal services. If the conditions of this Escrow Agreement are not promptly fulfilled, if the Escrow Agent renders any requested service not provided for in this Escrow Agreement, if there is any assignment of interest in the subject matter of this Escrow Agreement or any modification of the Escrow Agreement, if any controversy arises under the Escrow Agreement, or if the Escrow Agent is made a party to or intervenes in any litigation pertaining to this Escrow Agreement or its subject matter, the Escrow Agent will be reasonably compensated for the extraordinary
services and reimbursed for all costs and expenses caused by the event.

SECTION 7.  MISCELLANEOUS PROVISIONS

(a)  This Escrow Agreement may be executed in multiple counterparts, and each such counterpart shall be deemed as an original instrument upon execution of this document.

(b)  Any notice, request, instruction, or other communication required or permitted hereunder shall be deemed to be properly given when deposited in the United States mail, postage prepaid, addressed to the address provided in the opening sentence of this Escrow Agreement.  Any party may, by written notice to the others, change their address.

(c)  This Escrow Agreement shall be construed and enforced in accordance with the laws of the State of Texas.

(d)  Except with written consent of the other Parties hereto, the rights and obligations under this Escrow Agreement are not assignable by any party to this Escrow Agreement or their respective successors, assigns, heirs, or legal representatives.

(e)  This Escrow Agreement, along with the exhibits hereto and the other contemporaneous written agreements among the parties, represents the entire agreement by and between the parties hereto, except as otherwise provided in this Escrow Agreement, and it may not be amended or modified except by written amendment duly executed by all parties to this Escrow Agreement.

(f)  In the event suit is brought (or arbitration instituted) or an attorney is retained by any party to this Escrow Agreement to enforce the terms of this Escrow Agreement, to collect any money due hereunder, or to collect money damages for breach hereof, the prevailing party shall be entitled to recover, in addition to any other remedy, reimbursement for reasonable attorney fees (including fees on appeal), court costs, costs of investigation, and other related expenses incurred in connection therewith.

[SIGNATUREPAGES TO FOLLOW]

 

 

 

 

	
ESCROW AGREEMENT

	
(Page 3 of 5)

	
BLACKSANDS – KP-RAHR

  

  

  

 

[KP-RAHR SIGNATURE PAGE]

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

 

	 	KP-RAHR VENTURE III, LLC:	 
	 	 	 	 
	
 

	
By: 

	/s/ Michael R. Keener	 
	 	Name 	Michael R. Keener	 
	 	Title 	Manager	 

 

 

 

 

	
ESCROW AGREEMENT

	
(Page 4 of 5)

	
BLACKSANDS – KP-RAHR

 

  

  

  

[BSPI AND APCLARK SIGNATURE PAGE]

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

 

	 	BLACKSANDS PETROLEUM, INC.:	 
	 	 	 	 
	
 

	
By: 

	/s/ David Demarco	 
	 	Name 	David Demarco	 
	 	Title	President	 

 

	 	APCLARK, LLC:	 
	 	 	 	 
	
 

	
By: 

	/s/ David Demarco	 
	 	Name 	David Demarco	 
	 	Title 	President	 

 

 

	
ESCROW AGREEMENT

	
(Page 5 of 5)

	
BLACKSANDS – KP-RAHR

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