Document:

sgmd_ex1019.htm

Exhibit 10.19

 

SHARE CANCELLATION AGREEMENT

 

This Share Cancellation Agreement dated May 9, 2013 (this "Agreement") is made and entered into by and between Sugarmade, Inc., a Delaware corporation (the "Company"), and Scott Lantz ("Mr. Lantz"), with respect to the following facts:

 

WHEREAS, Mr. Lantz is a director and shareholder of the Company, and

 

WHEREAS, Mr. Lantz has been issued various Company Share Certificates identified originally as Certificates Number 9441; 9478; and 9499 and

 

WHEREAS Mr. Lantz now currently holds shares in the aggregate amount of 2,454,507 shares (the “Shares”) of Company Common Stock, and Mr. Lantz owns the Shares of record and beneficially, free and clear of all liens, security interests, and encumbrances of any kind whatsoever, and Mr. Lantz has full right, power and authority to execute, deliver and perform this Agreement;

 

WHEREAS, the Company has determined it is in the best interest of the Company to raise additional funds and Mr. Lantz is willing to cancel 1,300,000 of the Shares to facilitate the Company’s general ability to raise equity capital and pay for services as needed;

 

NOW, THERFORE, in consideration of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties have agreed as follows:

 

1. Cancellation of Shares.  In consideration of $.0001 per share and the consideration described above, Mr. Lantz agrees to cancel 1,300,000 of the Shares.  Mr. Lantz shall deliver to Steve Davis, the Company Attorney, for cancellation stock certificates representing the Shares along with duly executed medallion guaranteed stock powers covering the shares (or such other documents acceptable to the Company's transfer agent) and hereby irrevocably instructs the Company, the Company Attorney and the Company's transfer agent to cancel 1,300,000 Shares. Following such cancellation, the 1,300,000 Shares will no longer be outstanding on the stock ledger of the Company and Mr. Lantz shall no longer have any interest in the Shares.

 

2. Miscellaneous.  This Agreement shall be governed by the internal laws of the State of California without regard to its conflict of laws rules, except to the extent the laws of Delaware are mandatorily applicable.  This Agreement may be executed in any number of counterparts and may be delivered by facsimile transmission or electronic mail in PDF.

 

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

 

	SUGARMADE, INC.	 	 	MR. LANTZ	 
	 	 	 	 	 	 
	By:	
/s/

	 	 	
/s/ 

	 
	 	
Clifton Leung, CEO

	 	 	
Scott Lantz

	 
	 	
Title 

	 	 	
Titlekblb_ex101.htm

EXHIBIT 10.1

 

 

  

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4bdco_ex101.htm

Exhibit 10.1

 

genesisenergy

February 21, 2013

 

Lazarus Energy LLC

801 Travis, Suite 2100 

Houston, Texas 77002 

Attention: Jonathan Carroll

 

GEL TEX Marketing, LLC 

Milam Services, Inc.

919 Milam, Suite 2100 

Houston, Texas 77002 

Attention: Steve Nathanson

 

	
  

	
Re:

	
Letter Agreement Regarding Distribution to Recover Payment made to Settle Claims

 

Gentlemen:

 

Reference is made to that certain (i) Joint Marketing Agreement dated August 12, 2011 (as amended, restated or supplemented from time to time, the "JMA"), by and between Lazarus Energy LLC, a Delaware limited liability company ("Lazarus"), and GEL Tex Marketing, LLC, a Delaware limited liability company ("GEL"), (ii) Construction and Funding Contract dated August 12, 2011 (as amended, restated or supplemented from time to time, the "CFC"), by and between Lazarus and Milam Services, Inc., a Delaware corporation ("MSI"), (iii) Crude Oil Supply and Throughput Services Agreement dated August 12, 2011 by and between GEL and Lazarus, (iv) Letter Agreement dated June 25, 2012 by and between GEL, MS1 and Lazarus regarding expense payments and reservations of rights ("Operating Expense Payment Letter Agreements"), (v) Acknowledgment Letter dated June 1, 2012 addressed to Lazarus by GEL (the "Acknowledgment Letter"), (vi) Letter Agreement dated December 20, 2012 by and between GEL, MSI and Lazarus regarding recovery of December 2012 Payments ("December 2012 Payments Letter Agreement"), and (vii) Letter Agreement Regarding Advances to Fund February 2013 Turnaround dated February 21, 2013 ("Turnaround Letter"). Capitalized terms not otherwise defined herein shall have the meanings set forth in the CFC.

 

The parties to this Letter Agreement desire to set forth certain acknowledgements and agree to certain modifications to the JMA as more particularly set forth herein.

 

Section 1. Acknowledgements

 

MSI and Anchor Industrial Services, LLC ("Anchor") have entered into a Confidential Partial Settlement Agreement and Release ("Settlement") in Cause No. 2012-53656; Anchor Industrial Services, LLC v. Lazarus Texas Refinery I, LLC, Lazarus Energy LLC, and Milam Services, Inc.; In the 151st Judicial District Court of Harris County, Texas (the "Litigation"). Under the terms of the Settlement, MSI will pay to Anchor the sum of $64,357.50 (sixty four thousand three hundred fifty seven dollars and 50/100 dollars) for a release and dismissal of all Anchor claims against MSI related to the certain services ordered by Lazarus and provided by Anchor attributable to the Nixon facility (the "Settlement Payment"). This payment includes the Anchor invoiced amount of $62,562.42 and legal fees incurred by Anchor in the amount of $1,795.07. In addition, MSI and or GEL have incurred legal fees and expenses to DLA

February 12, 2013 Page 2

 

Piper LLP (US) ("DLA") and to Hicks Thomas LLP ("Hicks Thomas") in connection with the Litigation and Settlement and may incur additional legal fees and expenses in connection therewith as the Litigation between Lazarus and Anchor continues. As of December 31, 2012, the amount of such fees and expenses are approximately $14,500 for Hicks Thomas and $350 for DLA (the amount of such legal fees and expenses plus any legal fees and expenses incurred by GEL and/or its affiliates after the date hereof in connection with the Litigation or Settlement herein referred to as the "Legal Expenses").

 

  

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February 12, 2013 

Page 2

 

Section 2. Modifications to Distributions and Payments Provisions of JMA.

 

From and after January 1, 2013, Gross Profit shall be distributed first to GEL, prior to any other distributions or payments to the parties to the JMA until GEL has received aggregate distributions as provided in the December 2012 Payments Letter Agreement plus the amounts of the Settlement Payment and Legal Expenses. Such distributions shall not reduce the distributions of Gross Profit that GEL or its Affiliates are otherwise entitled to under the JMA.

 

Section 3. Certain Representations

 

(a) Each party hereby represents to the other that (a) it has full power and authority to execute and deliver this Letter Agreement and to consummate the transactions contemplated hereby, (b) the execution and delivery of this Letter Agreement by such party have been duly and validly authorized by all necessary corporate action on the part of such party and (c) this Letter Agreement has been duly and validly executed and delivered by such party and constitutes a valid and binding obligation of such party, enforceable against such party in accordance with its terms, except that such enforceability (i) may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting or relating to the enforcement of creditors' rights generally and (ii) is subject to general principles of equity and the discretion of the court before which any proceedings seeking injunctive relief or specific performance may be brought.

 

(b) Lazarus hereby represents and warrants to GEL that no Forbearance Termination Event, as defined in the Forbearance Agreement has occurred, and no facts or circumstance exist that would cause a Forbearance Termination Event to occur under the Forbearance Agreement.

 

As modified by this Letter Agreement, all of the terms of the JMA, CFC, Supply Agreement, Operating Expense Payment Letter Agreements, Acknowledgement Letter, December 2012 Payments Letter Agreement, and Turnaround Letter are hereby ratified and confirmed and shall remain in full force and effect.

 

[Signature page follows.]

  

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IN WITNESS WHEREOF, the parties hereto have caused this Letter Agreement to be executed by their duly authorized representatives effective as of the date first written above.

 

	 	
GEL TEX MARKETING, LLC, A Delaware

limited liability company

	 
	 	  	  	  	 
	 	
By:

	  	
/s/ STEVE NATHANSON

	 
	 	
Name:

	  	
Steve Nathanson

	 
	 	
Title:

	  	
President and COO

	 
	 	  	  	  	 
	 	
MILAM SERVICES, INC., A Delaware

corporation

	 
	 	  	  	  	 
	 	
By:

	  	
/s/ STEVE NATHANSON

	 
	 	
Name:

	  	
Steve Nathanson

	 
	 	
Title:

	  	
President and COO

	 
	 	  	  	  	 
	 	
LAZARUS ENERGY LLC, a Delaware limited liability company

	 
	 	  	  	  	 
	 	
By:

	  	
/s/ JONATHAN P. CARROLL

	 
	 	
Name:

	  	
Jonathan P. Carroll

	 
	 	
Title:

	  	
President

	 
	 	  	  	  	 

(Signature page to February 21, 2013 Settlement Letter Agreement)

 

3bdco_ex102.htm

Exhibit 10.2

 

genesisenergy

February 21, 2013

 

Lazarus Energy LLC

801 Travis, Suite 2100 

Houston, Texas 77002 

Attention: Jonathan Carroll

 

GEL TEX Marketing, LLC 

Milam Services, Inc.

919 Milam, Suite 2100 

Houston, Texas 77002 

Attention: Steve Nathanson

 

Re: Letter Agreement Regarding Advances to Fund February 2013 Turnaround 

 

Gentlemen:

 

Reference is made to that certain (i) Joint Marketing Agreement dated August 12, 2011 (as amended, restated or supplemented from time to time, the "JMA"), by and between Lazarus Energy LLC, a Delaware limited liability company ("Lazarus"), and GEL Tex Marketing, LLC, a Delaware limited liability company ("GEL"), (ii) Construction and Funding Contract dated August 12, 2011 (as amended, restated or supplemented from time to time, the "CFC"), by and between Lazarus and Milam Services, Inc., a Delaware corporation ("MSI"), (iii) Crude Oil Supply and Throughput Services Agreement dated August 12, 2011 by and between GEL and Lazarus, (iv) Letter Agreement dated June 25, 2012 by and between GEL, MSI and Lazarus regarding expense payments and reservations of rights ("Operating Expense Payment Letter Agreements"), (v) Acknowledgement Letter dated June 1, 2012 addressed to Lazarus by GEL (the "Acknowledgement Letter"), (vi) Letter Agreement Regarding Distribution to Recover December 31, 2012 Payment made to Lazarus dated December 20, 2012 ("December 2012 Payments Letter Agreement"), and (vii) Letter Agreement Regarding Distribution to Recover Payment made to Settle Claims dated February 21, 2013 ("Settlement Payment Distribution Letter"). Capitalized terms not otherwise defined herein shall have the meanings set forth in the CFC.

 

The parties to this Letter Agreement desire to set forth certain acknowledgements and agree to certain modifications to the JMA as more particularly set forth herein.

 

Section 1. Acknowledgements

 

The parties agree that after the date of execution of this Letter Agreement, GEL will advance to Lazarus funds necessary to pay for the actual costs associated with the scheduled refinery turnaround and capital expenditures relating to an electronic product meter, lab equipment, and certain piping in an amount equal to the actual costs of the refinery turnaround and capital expenditures, not to exceed $840,000 in the aggregate (the "Estimated Amount"). Lazarus shall provide GEL with copies of invoices and any other supporting information requested by GEL that evidences the actual costs of the Estimated Amount prior to any payment of such Estimated Amount being required from GEL.

Genesis Energy, L.P. ● 919 Milam, Suite 2100 ● Houston, Texas 77002 ●Tel: (713) 860-2500 ● Fax: (713) 860-2640

 

  

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February 12, 2013 

Page 2

 

All amounts advanced by GEL or its Affiliates to Lazarus pursuant to this Letter Agreement shall constitute Obligations.

 

Section 2. Certain Representations

 

(a) Each party hereby represents to the other that (a) it has full power and authority to execute and deliver this Letter Agreement and to consummate the transactions contemplated hereby, (b) the execution and delivery of this Letter Agreement by such party have been duly and validly authorized by all necessary corporate action on the part of such party and (c) this Letter Agreement has been duly and validly executed and delivered by such party and constitutes a valid and binding obligation of such party, enforceable against such party in accordance with its terms, except that such enforceability (i) may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting or relating to the enforcement of creditors' rights generally and (ii) is subject to general principles of equity and the discretion of the court before which any proceedings seeking injunctive relief or specific performance may be brought.

 

(b) Lazarus hereby represents and warrants to GEL that no Forbearance Termination Event, as defined in the Forbearance Agreement has occurred, and no facts or circumstance exist that would cause a Forbearance Termination Event to occur under the Forbearance Agreement.

 

As modified by this Letter Agreement, all of the terms of the JMA, CFC, Supply Agreement, Operating Expense Payment Letter Agreements, Acknowledgement Letter, December 2012 Payments Letter Agreement, and Settlement Payment Distribution Letter are hereby ratified and confirmed and shall remain in full force and effect.

 

 

 

[Signature page follows.]

  

2

  

 

IN WITNESS WHEREOF, the parties hereto have caused this Letter Agreement to be executed by their duly authorized representatives effective as of the date first written above.

 

	 	
GEL TEX MARKETING, LLC, A Delaware

limited liability company

	 
	 	  	  	  	 
	 	
By:

	  	
/s/ STEVE NATHANSON

	 
	 	
Name:

	  	
Steve Nathanson

	 
	 	
Title:

	  	
President and COO

	 
	 	  	  	  	 
	 	
MILAM SERVICES, INC., A Delaware

corporation

	 
	 	  	  	  	 
	 	
By:

	  	
/s/ STEVE NATHANSON

	 
	 	
Name:

	  	
Steve Nathanson

	 
	 	
Title:

	  	
President and COO

	 
	 	  	  	  	 
	 	
LAZARUS ENERGY LLC, a Delaware limited liability company

	 
	 	  	  	  	 
	 	
By:

	  	
/s/ JONATHAN P. CARROLL

	 
	 	
Name:

	  	
Jonathan P. Carroll

	 
	 	
Title:

	  	
President

	 
	 	  	  	  	 

(Signature page to February 21, 2013 Turnaround Letter Agreement)

 

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