Document:

bdco9kex108062615.htm

Ex 10.8

 

 

SOVEREIGN BANK – LOAN NO. 17063757

 

PLEDGE AGREEMENT

 

THIS PLEDGE AGREEMENT (as amended, modified or restated from time to time, this “Agreement”) dated as of JUNE 22nd, 2015 (the “Effective Date”) is by LAZARUS REFINING & MARKETING, LLC, a Delaware limited liability company (“Debtor”), in favor of SOVEREIGN BANK, a Texas state bank (“Lender”).

 

RECITALS

 

WHEREAS, Debtor and Lender have entered into a LOAN AND SECURITY AGREEMENT dated as of the Effective Date (as amended, modified or restated from time to time, “Loan Agreement”), and in connection therewith, Debtor is required to deliver this Agreement to Lender.

 

NOW THEREFORE, Debtor and Lender hereby agree as follows:

 

1. Terms Defined in Loan Agreement.  All capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Loan Agreement.  Terms defined in the Code which are not otherwise defined in this Agreement are used herein as defined in the Code as in effect on the date hereof.

 

2. Security Interest.  Debtor hereby pledges, assigns and grants to Lender a security interest in all of Debtor’s right, title and interest in and to the CERTIFICATE OF DEPOSIT held by Debtor in ACCOUNT NUMBER ___________ with Lender (the “Collateral Account”) in the amount of ONE MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($1,500,000.00), and all instruments, documents, agreements and other writings evidencing such certificate of deposit, all sums now or at any time hereafter on deposit therein, all sums now due or to become due with respect to such certificate of deposit and any and all renewals, replacements and proceeds thereof (the “Collateral”) to secure the prompt and complete payment and performance of the Indebtedness.  Debtor shall have no right to withdraw from the Collateral Account or otherwise access the Collateral until the Indebtedness is paid in full.

 

3. Representations and Warranties.  Debtor represents and warrants to Lender that:

 

(a) Title, Authorization, Validity and Enforceability.  Debtor has good and valid rights in and title to the Collateral with respect to which it has granted a security interest hereunder, free and clear of all liens except for the lien of Lender, and has full power and authority to grant to Lender the security interest in such Collateral.  The execution and delivery by Debtor of this Agreement constitutes a legal, valid and binding obligation of Debtor and creates a security interest which is enforceable against Debtor in all now owned and hereafter acquired Collateral.

 

(b) Conflicting Laws and Contracts.  Neither the execution and delivery by Debtor of this Agreement, the creation and perfection of the security interest in the Collateral granted hereunder, nor compliance with the terms and provisions hereof will violate any law, rule, regulation, order, writ, judgment, injunction, decree or award binding on Debtor, the provisions of any indenture, instrument or agreement to which Debtor is a party or is subject, or by which Debtor, or Debtor’s property, is bound, or conflict with or constitute a default thereunder, or result in the creation or imposition of any lien pursuant to the terms of any such indenture, instrument or agreement (other than any lien of Lender).

 

4. Covenants.  Debtor hereby covenants as follows:

 

(a) Taxes.  Debtor will pay when due all taxes, assessments and governmental charges and levies upon the Collateral, except those which are being contested in good faith by appropriate proceedings and with respect to which no lien exists.

 

(b) Liens.  Debtor will not create, incur, or suffer to exist any lien on the Collateral except the security interest created by this Agreement.

 

 

  

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(c) Further Assurances.  At any time and from time to time, upon the request of Lender, Debtor shall promptly execute and deliver all such further instruments and documents and take such further action as Lender may deem necessary or desirable to preserve and perfect its security interest in the Collateral and carry out the provisions and purposes of this Agreement.

 

5. Acceleration and Remedies.  Upon the occurrence of an Event of Default under the Loan Agreement or any other Loan Document, Lender may exercise any or all of the following rights and remedies:

 

(a) Those rights and remedies provided in this Agreement, the Loan Agreement or any other Loan Document, provided that this Section shall not be understood to limit any rights or remedies available to Lender prior to an Event of Default.

 

(b) Those rights and remedies available to a secured party under the Code (whether or not the Code applies to the affected Collateral) or under any other applicable law (including, without limitation, any law governing the exercise of a right of setoff or lien).

 

(c) Without notice except as specifically provided in this Section or elsewhere herein, sell, lease, assign, grant an option or options to purchase or otherwise dispose of the Collateral or any part thereof in one or more parcels at public or private sale, for cash, on credit or for future delivery, and upon such other terms as Lender may deem commercially reasonable.

 

6. Waivers, Amendments and Remedies. No delay or omission of Lender to exercise any right or remedy granted under this Agreement shall impair such right or remedy or be construed to be a waiver of any Event of Default, or an acquiescence therein, and any single or partial exercise of any such right or remedy shall not preclude any other or further exercise thereof or the exercise of any other right or remedy.  No waiver, amendment or other variation of the terms, conditions or provisions of this Agreement whatsoever shall be valid unless in writing signed by Lender and then only to the extent in such writing specifically set forth.  All rights and remedies contained in this Agreement or by law afforded shall be cumulative and all shall be available to Lender until the Indebtedness has been paid in full or this Agreement has terminated.

 

7. Application of Proceeds.  After the occurrence and during the continuation of an Event of Default, the proceeds of the Collateral shall be applied by Lender to payment of the Indebtedness in such manner and order as Lender may elect in its sole discretion.

 

8. Notice of Disposition of Collateral.  Debtor hereby waives notice of the time and place of any public sale or the time after which any private sale or other disposition of all or any part of the Collateral may be made.  To the extent such notice may not be waived under applicable law, any notice made shall be deemed reasonable if sent to Debtor, addressed as set forth in Debtor, at least TEN (10) days prior to (a) the date of any such public sale or (ii) the time after which any such private sale or other disposition may be made.

 

9. Authorization for Lender to Take Certain Action.  Debtor irrevocably authorizes Lender at any time and from time to time in the sole discretion of Lender and appoints Lender as Debtor’s attorney in fact, coupled with an interest, (a) to file financing statements necessary or desirable in Lender’s sole discretion to perfect and to maintain the perfection and priority of Lender’s security interest in the Collateral, (b) to indorse and collect any cash proceeds of the Collateral, (c) to apply the proceeds of any Collateral received by Lender to the Indebtedness as provided herein, and (d) to discharge past due taxes, assessments, charges, fees or liens on the Collateral, and Debtor agrees to reimburse Lender on demand for any payment made or any expense incurred by Lender in connection therewith, provided that this authorization shall not relieve Debtor of any of Debtor’s obligations under this Agreement, the Loan Agreement or the other Loan Documents.

 

10. Benefit of Agreement.  The terms and provisions of this Agreement shall be binding upon and inure to the benefit of Debtor, Lender and their respective successors and permitted assigns, except that Debtor shall not have the right to assign Debtor’s rights or delegate Debtor’s obligations under this Agreement or any interest herein, without the prior written consent of Lender.

 

 

  

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11. Survival of Representations.  All representations and warranties of Debtor contained in this Agreement shall survive the execution and delivery of this Agreement.

 

12. Headings.  The section headings in this Agreement are for convenience of reference only, and shall not govern the interpretation of any of the terms and provisions of this Agreement.

 

13. Notices.  Any notice required or permitted to be given under this Agreement shall be sent (and deemed received) in the manner set forth in the Loan Agreement.  The addresses of the parties are set forth in the signature page hereto.  Debtor and Lender may change the address for service of notice upon it by a notice in writing to the other party.

 

THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

NOTICE OF FINAL AGREEMENT

 

THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES, AND THE SAME MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

 

 

 

 

 

  

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IN WITNESS WHEREOF, Debtor and Lender have executed this Agreement as of the date first above written.

 

 

	
DEBTOR:

	
ADDRESS:

	  	  
	
LAZARUS REFINING & MARKETING, LLC

	
801 Travis Street, Suite 2100

	  	
Houston, TX 77002

	
By:           BLUE DOLPHIN ENERGY COMPANY

	  
	
Its:           Sole Member

	  
	  	  
	
By:           /s/ JONATHAN PITTS CARROLL, SR.

	  
	
Name:           Jonathan Pitts Carroll, Sr.

	  
	
Title:           President

	  

 

 

  

Page 4bdco9kex109062615.htm

Ex 10.9

 

 

SOVEREIGN BANK – LOAN NO. 17036757

After Recording Return To:

SOVEREIGN BANK

17950 Preston Road, Suite 500

Dallas, TX 75252

Attn:      Ronda K. Garrett

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER.

 

 

COLLATERAL ASSIGNMENT

THIS COLLATERAL ASSIGNMENT (as amended, modified or restated from time to time, this “Assignment”) dated as of JUNE 22nd, 2015 (the “Effective Date”), is executed by BLUE DOLPHIN PIPE LINE COMPANY, a Delaware corporation (“Grantor”), with offices at 801 Travis Street, Suite 2100, Houston, TX 77002, for the benefit of SOVEREIGN BANK, a Texas state bank (together with its successors and assigns, “Lender”) with offices at 17950 Preston Road, Suite 500, Dallas, TX 75252.

RECITALS

WHEREAS, Lender and LAZARUS REFINING & MARKETING, LLC, a Delaware limited liability company (“Debtor”), have entered into a LOAN AND SECURITY AGREEMENT dated as of the Effective Date (as amended, modified or restated from time to time, the “Loan Agreement”; capitalized terms not defined herein shall have the same meanings as in the Loan Agreement).

 

WHEREAS, Grantor and FLNG LAND II, INC., a Delaware corporation (the “Counterparty”), are parties to that certain MASTER EASEMENT AGREEMENT dated as of DECEMBER 11, 2013, a memorandum of which is recorded as instrument number 2014047796 in the real property records of Brazoria County, Texas (a true, correct and complete copy of which is attached hereto as Exhibit A, as amended, the “Subject Agreement”).

WHEREAS, to further secure Lender in the payment of the Indebtedness (as defined in the Loan Agreement), Grantor desires to transfer, pledge, and assign all of Grantor’s rights, title and interest in and to the Subject Agreement to Lender.

 

WHEREAS, Grantor’s execution of this Agreement is a condition precedent to Lender’s agreement to execute the Loan Agreement.

 

NOW, THEREFORE, in consideration of the premises herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantor hereby agrees in favor of Lender as follows:

 

1. Assignment.  As security for the repayment of the Indebtedness, Grantor hereby transfers, pledges, and assigns to Lender, its successors and assigns, and grants Lender a security interest in all right, title and interest of Grantor in and to the Subject Agreement, including, without limitation, all disbursement rights, reimbursement payments, payment rights, and all other rights to payment under the Subject Agreement (collectively, the “Payment Rights”).  This Assignment shall constitute a security agreement within the meaning of the Code.  Grantor hereby irrevocably instructs the Counterparty to make any and all payments owing to Grantor with respect to the Payment Rights directly to Lender.

 

 

  

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2. Representations and Warranties.  Grantor hereby represents and warrants to Lender that:

 

(a) A true, correct and complete copy of the Subject Agreement has been attached to this Assignment as Exhibit A (together with all assignments, amendments, modifications or understandings relating thereto).  The Subject Agreement is in full force and effect.

 

(b) Grantor has not executed any prior assignment, pledge or hypothecation of its rights under the Subject Agreement or the Payment Rights.  Lender has a first priority lien in the Subject Agreement and the Payment Rights.  Grantor will defend at its expense Lender’s right, title and security interest in and to the Subject Agreement and the Payment Rights against the claims of any third party.

 

(c) The execution, delivery, and performance of this Assignment by Grantor has been duly authorized by all necessary action by Grantor, and this Assignment constitutes a legal, valid and binding obligation of Grantor, enforceable in accordance with its terms, except as limited by bankruptcy, insolvency or similar laws of general application relating to the enforcement of creditors’ rights and except to the extent specific remedies may generally be limited by equitable principles.

 

(d) Grantor’s execution, delivery and performance of this Assignment and the consummation of the transactions contemplated thereby by Grantor, do not (i) conflict with, result in a violation of, or constitute a default under (1) any provision of its organizational documents or other instrument binding upon Grantor, (2) any law, governmental regulation, court decree or order applicable to Grantor, or (3) any contractual obligation, agreement, judgment, license, order or permit applicable to or binding upon Grantor, (ii) require the consent, approval or authorization of any third party which consent or approval has not been obtained, or (iii) result in or require the creation of any lien, charge or encumbrance upon any property or assets of Grantor except as may be expressly contemplated by this Assignment.

 

(e) Grantor has no actual knowledge that the Counterparty has asserted any default or non-performance by Grantor of Grantor’s duties and obligations under the Subject Agreement, Grantor has performed all of Grantor’s duties and obligations which are now due and performable under the Subject Agreement, and no defense or counter-claim exists with respect to the duties and obligations of the Counterparty under the Subject Agreement.

 

3. Covenants and Agreements.  Grantor hereby covenants in favor of Lender as follows:

 

(a) Grantor will perform all of its duties and obligations under the Subject Agreement in accordance with the terms thereof.  Grantor shall not amend, alter or modify the Subject Agreement without the express prior written consent of Lender.

 

(b) Grantor shall promptly notify Lender of any default by Grantor or the Counterparty in the performance of their respective duties and obligations under the Subject Agreement and shall immediately remedy any default by Grantor thereunder.

 

(c) Grantor shall execute such further and additional instruments and assignments as may be requested by Lender to vest in Lender a valid security interest in and to all rights, title and interest of Grantor in and to the Subject Agreement and the Payment Rights.

 

(d) Grantor will not take any action that would in any manner impair the enforceability of Lender’s security interest in the Subject Agreement or the Payment Rights.  Grantor (i) will, if requested by Lender, strictly enforce the terms and conditions of the Subject Agreement, and (ii) shall not grant any waiver or indulgence with respect the Subject Agreement.

 

4. Lender as Agent.  Grantor hereby agrees as follows:

 

 

  

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(a) Upon the occurrence and during the continuation of a Event of Default (which includes a default under the Subject Agreement), Lender shall be irrevocably appointed agent and attorney-in-fact as to performance by Grantor of its obligations under the Subject Agreement, and as to the enforcement of Grantor’s rights and remedies under the Subject Agreement;

 

(b) All reasonable costs, expenses and liabilities incurred and payments made by Lender as agent and attorney-in-fact shall be considered a loan by Lender to Grantor which shall be repayable on demand and which shall bear interest at the Maturity Rate (as defined in the Note referred to in the Loan Agreement);

 

(c) Regarding the existence of any Event of Default for purposes of this Assignment, Grantor agrees that the Counterparty may rely upon written certifications from Lender that such an Event of Default exists; and

 

(d) Notwithstanding the foregoing, Lender shall have no obligation whatsoever to perform any of Grantor’s obligations under the Subject Agreement.

 

5. Foreclosure.  This Assignment is executed as additional security for the payment of the Indebtedness and all other indebtedness owing or to become owing by Grantor to Lender, and it is expressly stipulated, covenanted and agreed that an Event of Default by Grantor under the terms of the Loan Agreement shall constitute a default under the terms of this Assignment and that foreclosure under this Assignment shall operate to foreclose fully the rights of Grantor arising from the Subject Agreement, and in such event, all rights of Grantor under the Subject Agreement shall be vested in the successful bidder at such foreclosure.  In addition, Lender shall have all other rights and remedies of a secured party under the Code.

 

6. Grantor Remains Liable.  Notwithstanding anything to the contrary contained herein, (a) Grantor shall remain liable under Subject Agreement to the extent set forth therein to perform all of Grantor’s duties and obligations thereunder to the same extent as if this Assignment had not been executed; (b) the exercise by Lender of any of its rights hereunder shall not release Grantor from any of its duties or obligations under the Subject Agreement; and (c) Lender shall not have any obligation or liability under any Subject Agreement by reason of this Assignment, nor shall Lender be obligated to perform any of the obligations or duties of Grantor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder.

 

7. Receipt of Payments.  All payments with respect to the Payment Rights and other amounts and proceeds received by Grantor in respect of the Subject Agreement shall be received in trust for the benefit of Lender and shall be paid to Lender as provided under the Loan Documents.

 

8. General.  Grantor hereby further agrees as follows:

 

(a) No remedy or right conferred upon Lender by operation of law, by this Assignment, Loan Agreement or by any other instrument executed by Grantor in connection therewith is intended to be, nor shall it be, exclusive of any other right or remedy, but each and every remedy or right shall be cumulative and shall be in addition to every other remedy or right conferred upon Grantor and each and every such remedy or right may be pursued by Lender in such manner or order, together or separately, and at such times as Lender may elect.

 

(b) If any term or provision of this Assignment, or the application thereof to any person or circumstance shall, to any extent be invalid or unenforceable, the remainder of this Assignment, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Assignment shall be valid and be enforced to the fullest extent permitted by law.

 

(c) Notice provided for in this Assignment must be in writing, and shall be given or served in the same manner as specified in the Loan Agreement.

 

 

  

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9. Invalid Provisions.  If any provision of the this Assignment are held to be illegal, invalid or unenforceable under present or future laws, such provision shall be fully severable and the remaining provisions of this Assignment shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance.

 

10. Counterparts.  This Assignment 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.

 

11. Survival.  All representations and warranties made in this Assignment or in any document, statement, or certificate furnished in connection with this Assignment shall survive the execution and delivery this Assignment and no investigation by Lender or any closing shall affect the representations and warranties or the right of Lender to rely upon them.

 

NOTICE OF FINAL AGREEMENT:

THIS ASSIGNMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES, AND THE SAME MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

 

 

REMAINDER OF PAGE LEFT INTENTIONALLY BLANK

 

 

 

 

 

 

 

  

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EXECUTED as of the date of the acknowledgment below, but to be effective as of the Effective Date.

 

GRANTOR:

 

BLUE DOLPHIN PIPE LINE COMPANY

By:           /s/ JONATHAN PITTS CARROLL, SR.                                                                           

Name:           Jonathan Pitts Carroll, Sr.

Title:           President

 

STATE OF TEXAS                                                                §

COUNTY OF DALLAS                                                         §

 

This instrument was acknowledged before me on ___June 22nd, 2015, by Jonathan Pitts Carroll, Sr. , President of BLUE DOLPHIN PIPE LINE COMPANY, a Delaware corporation, on behalf of said entity.

 

[SEAL]                                                      /s/ R. HEARNE (Commission Expires 12/27/2015)

Notary Public, State of Texas

 

 

  

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EXHIBIT A

SUBJECT AGREEMENT

See Attached.

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