Document:

bdco8kex102111212.htm

EXHIBIT 10.2

 

 

ESCROW AGREEMENT

This Escrow Agreement (the “Escrow Agreement”) is made this 6th day of  November 2012, by and among Blue Sky Langsa Limited, a Mauritius company (“BSL”), Les Cascades, Edith Cavell Street, Port-Louis, Mauritius (“BSL”) and Indonesian office at Menara Prima 26th Floor, Jl. Lingkar Mega Kuningan Blok 6.2 Jakarta 12950, Indonesia; Blue Dolphin Exploration Company (“BDEC”), a Delaware corporation with offices at 801 Travis Street, Suite 2100, Houston, Texas 77002, and Doherty & Doherty, LLP (“Escrow Agent”), a Texas professional limited liability company with offices at 1717 St. James Place, Suite. 520, Houston, Texas 77056, with reference to the following facts and circumstances:

	
A.  

	
BSL and BDEC have executed that certain Sale Purchase Agreement dated November 6th, 2012, (the “PSA”), attached hereto as Exhibit A, whereby BDEC is selling to BSL certain assets to be conveyed pursuant to an Assignment in the form attached hereto as Exhibit B (the “Assignment”) in exchange for the payment of the purchase price provided in the PSA.

	
B.  

	
Pursuant to the PSA, BSL has agreed to transfer 150,000 shares of the common stock of Blue Dolphin Energy Company in escrow (the “Escrowed Shares”) in order to secure its obligations under the PSA.

	
C.  

	
BSL will deliver or cause to be delivered to Escrow Agent one or more stock certificates (the “Certificates”) with duly endorsed stock powers (the “Stock Powers”) for the Escrowed Shares on or before November 12, 2012 for disposition in accordance with and subject to the terms and conditions of this Escrow Agreement.

	
D.  

	
BDEC and BSL will each deliver to Escrow Agent the Assignment on or before November 12, 2012 for disposition in accordance with and subject to the terms and conditions of this Escrow Agreement.

THEREFORE, in consideration of the mutual covenants and agreement hereinafter set forth, the parties agree as follows:

1. Delivery of Escrow Shares.  BSL shall deposit the Certificates and the Stock Powers in escrow with the Escrow Agent on or before November 12, 2012.

2. Delivery of Assignment.  BDEC and BSL shall each deposit the Assignment executed by an authorized officer of the respective party in escrow with the Escrow Agent upon the execution of this Agreement.

3. Release of Certificates and Stock Powers.  The Certificates and the Stock Powers shall be held in escrow by Escrow Agent and released in accordance with the following:

 

 

  

  

  

(i) Return to BSL.  The Certificates and the Stock  Powers shall be released to BSL upon the Escrow Agent receiving a joint letter of confirmation from BDEC and BSL certifying that BSL has paid the Purchase Price or the Discounted Price (each such term as defined in the PSA) on or before the respective dates required in the PSA; or

(ii) Transfer to BDEC.  The Certificate and the Stock Powers shall be released to BDEC on March 1, 2013 if joint written instructions have not been received by the Escrow Agent pursuant to clause (i) of this Section 3 prior to such date.

4. Release of Assignment.  The Assignment shall be held in escrow by Escrow Agent and released to BSL upon the release of the Certificates and Stock Powers pursuant to Section 3 of this Escrow Agreement.

5. Duration and Termination; Release.  This Escrow Agreement will terminate automatically if BDEC or BSL ceases to exist and no successor of such party becomes a party to this Escrow Agreement.

6. Additional Requirements.  In order to ensure performance hereunder and to implement the provisions of this Escrow Agreement, all parties hereto shall take whatever action and do such things as may be required or necessary to do.  Specifically, but not by way of limitation, the parties shall deliver promptly the joint instructions provided for in Section 3(i) if the requisite payment in fact has been made.

7. Authority to Amend.  This Escrow Agreement shall not be terminated, revoked, rescinded, altered or modified in any respect without the prior consent of the parties hereto.

8. Controversy.  If any controversy arises between the parties hereto or with any third person, Escrow Agent shall not be required to determine the same or to take any action, but may await the settlement of any such controversy by final appropriate legal proceedings or otherwise as Escrow Agent my require.  In the alternative, Escrow Agent may, at its discretion, institute such appropriate interpleader or other proceedings in connection therewith as it may deem proper, notwithstanding anything in this Escrow Agreement to the contrary.  In any such event, Escrow Agent shall not be liable for interest or damages to any of the parties.

9. Escrow Agent’s Liability. Escrow Agent shall not be liable for any act or omission in connection with this Escrow Agreement except for its own gross negligence or willful misconduct. BDEC and BSL jointly and severally assume full responsibility for and will indemnify Escrow Agent and save it harmless from and against any and all actions or suits, whether groundless or otherwise, and from and against any and all losses, damages, costs, charges, council fees, payments, expenses and liabilities arising out of the agency relationship or otherwise pursuant to or in connection with this Agreement including fees of any legal counsel retained by Escrow Agent relating thereto, where Escrow Agent has acted without gross negligence and without willful misconduct. Escrow Agent shall not be under any obligation to prosecute any action or suit in respect of any agency relationship, which, in its sole judgment, may involve it in expense or liability. In any action or suit BDEC and BSL agree to jointly and severally, as often as requested, furnish Escrow Agent with satisfactory indemnity against any expense or liability growing out of such action or suit by or against Escrow Agent in its capacity as Escrow Agent.  THE INDEMNIFICATION PROVIDED FOR IN THIS SECTION 7 SHALL APPLY REGARDLESS OF THE NEGLIGENCE OF THE ESCROW AGENT OR ITS PARTNERS.

 

 

  

2

  

 10. Judgments and Decrees.  In the event any property held by Escrow Agent hereunder shall be attached, garnisheed or levied upon under any court order, or if the delivery of such property shall be stayed or enjoined by any court order, or if any court order, judgment or decree shall be made or entered affecting such property or affecting any act by Escrow Agent, Escrow Agent may, in its sole discretion, obey and comply with all writs, orders, judgments or decrees so entered or issued, whether with or without jurisdiction, notwithstanding any provision of Escrow Agreement to the contrary. If Escrow Agent obeys and complies with any such writs, orders, judgments or decrees it shall not be liable to any of the parties hereto or to any other person, firm or corporation, by reason of such compliance, notwithstanding that such writs, orders, judgments or decrees maybe subsequently reversed, modified, annulled, set aside or vacated.

11. Binding Agreement and Substitution of Escrow Agent.  The terms and conditions of this Escrow Agreement shall be binding on the successors or assigns of the parties hereto.  If, for any reason, Escrow Agent named herein should be unable or unwilling to continue as such Escrow Agent, then the other parties to this Escrow Agreement may substitute another person to serve as Escrow Agent.  The Escrow Agent may resign from such capacity at any time for any reason or for no reason by written notice to the other parties hereto.

 

 

  

3

  

IN WITNESS WHEREOF, the parties have executed this Escrow Agreement as of the day and year first above written.

	BSL: 	 	 	BDEC: 	 
	 	 	 	 	 
	Blue Sky Langsa Limited 	 	Blue Dolphin Exploration Company 
	 	 	 	 	 
	 	 	 	 	 
	
By:

	
/s/ FAISAL CHAUDHARY

	  	
By:

	
 /s/ JONATHAN CARROLL

	
Name:

	
Faisal Chaudhary

	  	
Name:

	
Jonathan Carroll

	
Title:

	
President

	  	
Title:

	
Chief Executive Officer

 

Escrow Agent:

Doherty & Doherty, LLP

	
By:

	
/s/ CASEY W. DOHERTY, SR.

	 
	  	
Casey W. Doherty, Sr.

	 
	  	
Partner

	 

  

4

  

EXHIBIT A

PURCHASE AND SALE AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

5

  

EXHIBIT B

ASSIGNMENT

  

6bdco8kex103111212.htm

EXHIBIT 10.3

 

ASSIGNMENT AGREEMENT

 

This Assignment Agreement ("Assignment Agreement") is entered into and made effective on this 6thday of November 2012 by and among:

 

Blue Dolphin Exploration Company, a company incorporated and existing under thelaws of the State of Delaware, U.S.A., and having its registered office at 1209 Orange Street, Wilmington, Delaware 19801 ("BDEC"); and

Blue Sky Langsa Limited, a company incorporated and existing under the laws ofMauritius and previously known as “Medco E&P Langsa Limited” and having its registered office at Les Cascades, Edith Cavell Street, Port-Louis, and Indonesian office at Menara Prima 26th Floor, Jl. Lingkar Mega Kuningan Blok 6.2 Jakarta 12950, Indonesia ("BSL");

 

Recitals:

 

WHEREAS, BDEC and BSL have entered into a Sale and Purchase Agreement("Purchase Agreement") on the abovementioned date.

 

WHEREAS, pursuant to the terms of the Purchase Agreement,BSL has agreed to acquire and BDEC has agreed to transfer BDEC's entire interest in the East Aceh Langsa Offshore Technical assistant Contract dated 15th May 1997 (“Interest”).

 

WHEREAS, the Parties now wish to execute this Assignment Agreement in order to confirm the transfer of the Interest from BSL to BDEC;

 

NOW, THEREFORE, for and in consideration of the mutual covenants and promises herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties hereby agree as follows:

 

Article 1

Definitions

 

1.1 In this Assignment Agreement the following terms ad expressions shall, except where the context requires otherwise, have the following respective meanings:

"Interest" means the 7% undivided interest in and under the Langsa TAC owned by BDEC, together with the corresponding interest in: (a) all relevant consents, permissions, technical data and proprietary information acquired pursuant to the Langsa TAC, (b) all other property or rights of whatsoever nature or kind (whether real or personal), assets, benefits, rights and entitlements which the owner of an undivided interest under the Langsa TAC holds and is entitled to enjoy thereunder, and (c) certain items of equipment, all as acquired pursuant to that certain Sale and Purchase Agreement dated July 21, 2010 among BDEC, BSL and the parent of BSL.

 

 

  

  

  

 

"Effective Date" shall mean the date upon which the Langsa Interest has been assigned.

"Langsa TAC" means the East Aceh Offshore - Langsa (EAO-Langsa) Technical Assistance Contract dated 15th of May, 1997.

"Langsa TAC Area" means the contract area described in the Langsa TAC.

"Party" or “Parties” means BSL and BDEC and any of their respective permitted successors, transferees and assignees under this Agreement and "Parties" means all such Persons collectively.

Article 2

Assignment and Acceptance

 

2.1  In accordance with the terms and conditions of the Purchase Agreement, BDEC herebyassigns and transfers to BSL all of the rights, title and interest, together with all of the accompanying benefits, responsibilities, obligations and liabilities that BDEC has in the Interest, free and clear of any liability, restriction, pre-emptive right, mortgage, charge, pledge, lien, encumbrance, other security interest and any claim which arose, was created or was placed upon the interest during BDEC's ownership of the Interest.

 

2.2   In accordance with the terms and conditions of the Purchase Agreement, BSL hereby accepts from BDEC the assignment and transfer of all rights, title and interest, together with all of the accompanying benefits, responsibilities, obligations and liabilities that BDEC has in the Interest.

 

2.3  As a result of the transfers of the Interest contemplated above the resulting undividedparticipating interest under the Langsa TAC before and after theEffective Date shall be as follows:

 

	
Company

	
% Ownership Before Transfer

	
% Ownership After Transfer

	
BDEC

	
7%

	
0%

	
BSL

	
93%

	
100%

 

2.4   By its signature below, BSL and BDEChereby consent to the assignmentand transfer of theInterest from BDEC to BSL.

 

Article 3

General

 

3.1  This Assignment Agreement shall inure to the benefit of and be binding upon therespective successors of BDEC and BSL.

 

 

  

  

  

 

3.2  This Assignment Agreement, sets forth the entire understanding between the Parties as to the subject matter hereof and may not be changed or modified in any way except by another agreement in writing signed by both Parties.

 

3.3  In the event of any inconsistencies between the terms of this Assignment Agreement and the Purchase Agreement, the terms of the Purchase Agreement shall govern to theextent of such inconsistencies.

 

3.4  This Assignment Agreement shall be governed by and construed, interpreted andapplied in accordance with the laws of Texas, USA

 

IN WITNESS WHEREOF, authorized representatives of the Parties have executed this Assignment Agreement as of the date first above written.

 

Executed as a Deed.

 

 

	Blue Sky Langsa, Ltd.  	 	Blue Dolphin Exploration Company 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
Signed:

	
/s/ FAISAL CHAUDHARY

	  	
Signed:

	
 /s/ JONATHAN CARROLL

	
Name:

	
Faisal Chaudhary

	  	
Name:

	
Jonathan Carroll

	
Title:

	
President

	  	
Title:

	
Chief Executive Officer

 

NOTARIZATIONS:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00209-of-00352.parquet"}]]