Document:

Blueprint

 

 

Exhibit 10.3

 

 

 

Sixth Amendment to Letter Agreement

 

March 26, 2018

 

Jonathan Carroll

 

Lazarus Energy, LLC

Blue Dolphin Energy Company

 

Lazarus Energy Holdings, LLC

 

By Electronic Mail (JCarroll@lazarusenergy.com)

 

Re:

GEL Tex Marketing, LLC v. Lazarus Energy, LLC

 

 
Sixth Amendment to the Stipulation Regarding Confirmation
and 
Enforcement of Final Award Dated September 18, 2017

 

Dear Jonathan,

 

This is a sixth amendment (the “Sixth Amendment”) to
the Stipulation Regarding Confirmation and Enforcement of Final
Award Dated September 18, 2017 (as amended, the “Letter
Agreement”). All capitalized terms used but not otherwise
defined in this Sixth Amendment shall have the meanings given to
such terms in the Letter Agreement.

 

Pursuant to the Letter Agreement, GEL Tex and the Lazarus Parties
agreed to continue the District Court hearing to confirm the Final
Award in Cause No. 2016-28397 for no more than 90 days (the
“Continuance Period”). Pursuant to the Amendment to
Letter Agreement dated November 1, 2017 (the “First
Amendment”), GEL Tex had the right to terminate the Letter
Agreement on November 28, 2017. Pursuant to the Second Amendment to
Letter Agreement dated November 28, 2017 (the “Second
Amendment’), GEL Tex had the right to terminate the Letter
Agreement on December 31, 2017. Pursuant to the Third Amendment to
Letter Agreement dated December 27, 2017 (the “Third
Amendment”), GEL Tex had the right to terminate the Letter
Agreement on February 1, 2018. Pursuant to the Fourth Amendment to
the Letter Agreement dated February 1, 2018 (the “Fourth
Amendment”), GEL Tex had the right to terminate the Letter
Agreement on February 28, 2018. Pursuant to the Fifth Amendment to
the Letter Agreement dated February 28, 2018 (the “Fifth
Amendment”), GEL Tex has the right to terminate the Letter
Agreement on March 30, 2018. In order to facilitate ongoing
settlement discussions, GEL Tex and the Lazarus Parties agree to
extend the Continuance Period further with certain conditions.
Accordingly, GEL Tex and the Lazarus Parties further amend the
Letter Agreement and agree to the following:

 

●

The
Continuance Period shall be extended to and including April 30,
2018.

 

●

Prior
to April 1, 2018, in consideration of the extension to April 30,
2018, the Lazarus Parties shall pay $500,000.00 to GEL Tex, which
will be applied to reduce the balance of the Final
Award.

 

●

In
addition to permitting: (i) GEL Tex at any time to inspect the
books and records of the Lazarus Parties and all of their
respective affiliates and (ii) cooperating with Opportune LLP to
review the business of each Lazarus Party and their affiliates as
well as Jonathan and Gina Carroll, the Lazarus Parties agree that
between April 1, 2018 and April 30, 2018, from time to time, upon
Opportune LLP’s request, the Lazarus Parties and their
affiliates shall continue to grant Opportune LLP access to examine
the books and records of the Lazarus Parties and all of their
respective affiliates.

 

 

1

 

 

 

 

●

The
Lazarus Parties shall not make any prepayments on any debts listed
in Attachment A to the Letter Agreement. Except as described below,
the Lazarus Parties and GEL Tex agree that the only debts the
Lazarus Parties can pay before the end of the Continuance Period
are the debts payable in the ordinary course of business as
described in the Letter Agreement.

 

●

Between
April 1, 2018 and April 30, 2018, the Lazarus Parties agree to
temporarily suspend the payments on the following debts/commercial
agreements:

 

o

The
Amended and Restated Guaranty Fee Agreement dated April 1, 2017
between LE and Jonathan Carroll (Guaranty Fee Agreement ties to
$25.0 Million Veritex USDA Loan; amounts owed to Jonathan Carroll
captured under ~$1.0 million BDCO-Carroll Note); as described on
page A-2 of Attachment A to the Letter Agreement;

 

o

The
Amended and Restated Guaranty Fee Agreement dated April 1, 2017
between LRM and Jonathan Carroll (Guaranty Fee Agreement ties to
$10.0 Million Veritex USDA Loan; amounts owed to Jonathan Carroll
captured under ~$1.0 million BDCO-Carroll Note) as described on
page A-3 of Attachment A to the Letter Agreement; and

 

o

The
Amended and Restated Guaranty Fee Agreement dated April 1, 2017
between LRM and Jonathan Carroll (Guaranty Fee Agreement ties to
$2.0 Million Sovereign Loan; amounts owed to Jonathan Carroll
captured under ~$1.0 million BDCO-Carroll Note) as described on
page A-3 of Attachment A to the Letter Agreement.

 

●

GEL
Tex and the Lazarus Parties agree that this Sixth Amendment may be
executed in separate parts delivered by electronic means that,
taken together, will be deemed to be one instrument. GEL Tex and
each Lazarus Party represent and warrant that this Sixth Amendment
has been approved and authorized by all necessary action and the
execution hereof does not violate any agreement to which it is a
party.

 

●

Except
as set forth in this Sixth Amendment, the Letter Agreement, the
First Amendment, the Second Amendment, the Third Amendment, the
Fourth Amendment, and the Fifth Amendment are unaffected and shall
continue in full force and effect in accordance with their terms.
If there is a conflict between the Sixth Amendment, the Fifth
Amendment, the Fourth Amendment, the Third Amendment, the Second
Amendment, the First Amendment, and the Letter Agreement, the terms
of this Sixth Amendment will prevail.

 

[Signature Pages Follow]

 

 

2

 

If these terms accurately state the amendments to the Letter
Agreement between GEL Tex and the Lazarus Parties, please sign
where indicated below and we will file this Sixth Amendment with
the 165th Judicial District Court.

 

Very truly yours,

 

 

	

Haynes & Boone LLP

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

/s/ CHARLES A. BECKHAM, JR.

	
 

	
 

	

Charles A. Beckham, Jr.

Attorney for GEL Tex Marketing, LLC

	
 

	
 

	
 

	
 

	
 

	

Agreed:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

/s/ JONATHAN CARROLL

	
 

	
 

	

Jonathan Carroll, in his individual capacity

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Lazarus Energy, LLC

Blue Dolphin Energy Company

Lazarus Energy Holdings, LLC

	
 

	
 

	
 

	
 

	
 

	

/s/ JONATHAN CARROLL

	
 

	
 

	

By: 
Jonathan Carroll

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Stroock & Stroock & Lavan LLP

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

/s/ FRANK A. MEROLA

	
 

	
 

	

Frank A. Merola

Attorney for Lazarus Energy, LLC

	
 

	
 

 

 

 

 

3Blueprint

 

 

Exhibit 10.4

 

 

 

Seventh Amendment to Letter Agreement

 

April 27, 2018

 

Jonathan Carroll

Lazarus Energy, LLC

 

Blue Dolphin Energy Company

Lazarus Energy Holdings, LLC

 

By Electronic Mail (JCarroll@lazarusenergy.com)

 

Re:

GEL Tex Marketing, LLC v. Lazarus Energy, LLC

 

 
Seventh Amendment to the Stipulation Regarding Confirmation
and 
Enforcement of Final Award Dated September 18, 2017

 

Dear Jonathan,

 

This is a seventh amendment (the “Seventh Amendment”)
to the Stipulation Regarding Confirmation and Enforcement of Final
Award Dated September 18, 2017 (as amended, the “Letter
Agreement”). All capitalized terms used but not otherwise
defined in this Seventh Amendment shall have the meanings given to
such terms in the Letter Agreement.

 

Pursuant to the Letter Agreement, GEL Tex and the Lazarus Parties
agreed to continue the District Court hearing to confirm the Final
Award in Cause No. 2016-28397 for no more than 90 days (the
“Continuance Period”). Pursuant to the Amendment to
Letter Agreement dated November 1, 2017 (the “First
Amendment”), GEL Tex had the right to terminate the Letter
Agreement on November 28, 2017. Pursuant to the Second Amendment to
Letter Agreement dated November 28, 2017 (the “Second
Amendment’), GEL Tex had the right to terminate the Letter
Agreement on December 31, 2017. Pursuant to the Third Amendment to
Letter Agreement dated December 27, 2017 (the “Third
Amendment”), GEL Tex had the right to terminate the Letter
Agreement on February 1, 2018. Pursuant to the Fourth Amendment to
the Letter Agreement dated February 1, 2018 (the “Fourth
Amendment”), GEL Tex had the right to terminate the Letter
Agreement on February 28, 2018. Pursuant to the Fifth Amendment to
the Letter Agreement dated February 28, 2018 (the “Fifth
Amendment”), GEL Tex had the right to terminate the Letter
Agreement on March 30, 2018. Pursuant to the Sixth Amendment to the
Letter Agreement dated March 26, 2018 (the “Sixth
Amendment”), GEL Tex has the right to terminate the Letter
Agreement on April 30, 2018. In order to facilitate ongoing
settlement discussions, GEL Tex and the Lazarus Parties agree to
extend the Continuance Period further with certain conditions.
Accordingly, GEL Tex and the Lazarus Parties further amend the
Letter Agreement and agree to the following:

 

●

The
Continuance Period shall be extended to and including May 31,
2018.

 

●

Prior
to May 1, 2018, in consideration of the extension to May 31, 2018,
the Lazarus Parties shall pay $500,000.00 to GEL Tex, which will be
applied to reduce the balance of the Final Award.

 

1

 

 

●

In
addition to permitting: (i) GEL Tex at any time to inspect the
books and records of the Lazarus Parties and all of their
respective affiliates and (ii) cooperating with Opportune LLP to
review the business of each Lazarus Party and their affiliates as
well as Jonathan and Gina Carroll, the Lazarus Parties agree that
between May 1, 2018 and May 31, 2018, from time to time, upon
Opportune LLP’s request, the Lazarus Parties and their
affiliates shall continue to grant Opportune LLP access to examine
the books and records of the Lazarus Parties and all of their
respective affiliates.

 

●

The
Lazarus Parties shall not make any prepayments on any debts listed
in Attachment A to the Letter Agreement. Except as described below,
the Lazarus Parties and GEL Tex agree that the only debts the
Lazarus Parties can pay before the end of the Continuance Period
are the debts payable in the ordinary course of business as
described in the Letter Agreement.

 

●

Between
May 1, 2018 and May 31, 2018, the Lazarus Parties agree to
temporarily suspend the payments on the following debts/commercial
agreements:

 

o

The
Amended and Restated Guaranty Fee Agreement dated April 1, 2017
between LE and Jonathan Carroll (Guaranty Fee Agreement ties to
$25.0 Million Veritex USDA Loan; amounts owed to Jonathan Carroll
captured under ~$1.0 million BDCO-Carroll Note); as described on
page A-2 of Attachment A to the Letter Agreement;

 

o

The
Amended and Restated Guaranty Fee Agreement dated April 1, 2017
between LRM and Jonathan Carroll (Guaranty Fee Agreement ties to
$10.0 Million Veritex USDA Loan; amounts owed to Jonathan Carroll
captured under ~$1.0 million BDCO-Carroll Note) as described on
page A-3 of Attachment A to the Letter Agreement; and

 

o

The
Amended and Restated Guaranty Fee Agreement dated April 1, 2017
between LRM and Jonathan Carroll (Guaranty Fee Agreement ties to
$2.0 Million Sovereign Loan; amounts owed to Jonathan Carroll
captured under ~$1.0 million BDCO-Carroll Note) as described on
page A-3 of Attachment A to the Letter Agreement.

 

●

GEL
Tex and the Lazarus Parties agree that this Seventh Amendment may
be executed in separate parts delivered by electronic means that,
taken together, will be deemed to be one instrument. GEL Tex and
each Lazarus Party represent and warrant that this Seventh
Amendment has been approved and authorized by all necessary action
and the execution hereof does not violate any agreement to which it
is a party.

 

●

Except
as set forth in this Seventh Amendment, the Letter Agreement, the
First Amendment, the Second Amendment, the Third Amendment, the
Fourth Amendment, the Fifth Amendment, and the Sixth Amendment are
unaffected and shall continue in full force and effect in
accordance with their terms. If there is a conflict between the
Seventh Amendment, the Sixth Amendment, the Fifth Amendment, the
Fourth Amendment, the

 

Third Amendment, the Second Amendment, the First Amendment, and the
Letter Agreement, the terms of this Seventh Amendment will
prevail.

 

[Signature Pages Follow]

 

 

2

 

 

If these terms accurately state the amendments to the Letter
Agreement between GEL Tex and the Lazarus Parties, please sign
where indicated below and we will file this Seventh Amendment with
the 165th Judicial District Court.

 

 

 

Very truly yours,

 

	

Haynes & Boone LLP

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

/s/ CHARLES A. BECKHAM, JR.

	
 

	
 

	

Charles A. Beckham, Jr.

Attorney for GEL Tex Marketing, LLC

	
 

	
 

	
 

	
 

	
 

	

Agreed:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

/s/ JONATHAN CARROLL

	
 

	
 

	

Jonathan Carroll, in his individual capacity

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Lazarus Energy, LLC

Blue Dolphin Energy Company

Lazarus Energy Holdings, LLC

	
 

	
 

	
 

	
 

	
 

	

/s/ JONATHAN CARROLL

	
 

	
 

	

By: 
Jonathan Carroll

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

Stroock & Stroock & Lavan LLP

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

/s/ FRANK A. MEROLA

	
 

	
 

	

Frank A. Merola

Attorney for Lazarus Energy, LLC

	
 

	
 

 

 

 

 

 

3

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