Document:

EXHIBIT
10.63

July 24, 2006

Earth Biofuels, Inc.

3001 Knox Street, Suite
403

Dallas, Texas 75205

Re:  Earth Biofuels, Inc. (“the Company”) – Lock-Up Agreement

Dear
Sirs:

In connection with the issuance of a new series of senior convertible notes of
the Company (the “Notes”), which
Notes shall be convertible into Common Stock, par value $0.001 per share, of the Company and warrants to acquire additional shares
of Common Stock (each a “Security” and collectively, the “Securities”), pursuant to the Securities
Purchase Agreement entered by and among the Company and the investors
named on the Schedule of Buyers attached thereto (the “Buyers”),
on July 21, 2006 (the “Securities Purchase
Agreement”), the
undersigned agrees that, commencing on the date hereof and during the period
specified below (the “Lock-Up Period”),
the undersigned will not offer, sell, contract to sell, hypothecate, pledge,
grant any option to purchase, make any short sale or otherwise dispose of,
directly or indirectly, or establish or increase a put equivalent position or
liquidate or decrease a call equivalent position within the meaning of Section
16 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”) and the rules and regulations of the
Securities and Exchange Commission promulgated thereunder with respect to any
shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), owned directly by the undersigned (including
holding as a custodian) or with respect to which the undersigned has beneficial
ownership within the rules and regulations of the Securities and Exchange
Commission (collectively the “Undersigned’s
Shares”).

The
foregoing restriction is expressly agreed to preclude the undersigned or any
affiliate of the undersigned from engaging in any hedging or other transaction
which is designed to or which reasonably could be expected to lead to or result
in a sale or disposition of the Undersigned’s Shares even if the Undersigned’s
Shares would be disposed of by someone other than the undersigned.  Such prohibited hedging or other transactions
would include, without limitation, any short sale or any purchase, sale or
grant of any right (including, without limitation, any put or call option) with
respect to any of the Undersigned’s Shares or with respect to any security that
includes, relates to, or derives any significant part of its value from the
Undersigned’s Shares.

The
Lock-Up Period will commence on the date hereof and continue until two (2)
years after the Closing (as defined in the Securities Purchase Agreement); provided,
however, that notwithstanding the foregoing, the undersigned shall be
permitted to sell the Undersigned’s Shares at a price greater than $5.80 or, in an underwritten public offering, at a price no
lesser than $5.075, with gross proceeds of not less than $65 million.

 

Notwithstanding
the foregoing, the undersigned may transfer the Undersigned’s Shares (i) as a bona fide gift or gifts, provided that the donee or donees
thereof agree to be bound in writing by the restrictions set forth herein, (ii)
to any trust for the direct or indirect benefit of the undersigned or the
immediate family of the undersigned, provided that the trustee of the trust
agrees to be bound in writing by the restrictions set forth herein, and provided
further that any such transfer shall not involve a disposition for value, or
(iii) if the undersigned is or becomes subject to the reporting requirements of
Section 16 of the Exchange Act, pursuant to the terms of written trading plans
in existence on the date hereof or entered into after the date hereof designed
to comply with Rule 10b5-1(c) of the Exchange Act, provided no sales or other
dispositions may occur under such plans until after the closing of trading on
the date two (2) years from the Closing. 
For purposes of this Lock-Up Agreement, “immediate family” shall mean
any relationship by blood, marriage or adoption, not more remote than first
cousin.  The undersigned now has, and,
except as contemplated by clauses (i) and (ii) above, for the duration of this
Lock-Up Agreement will have, good and marketable title to the Undersigned’s
Shares, free and clear of all liens, encumbrances, and claims whatsoever.  The undersigned also agrees and consents to
the entry of stop transfer instructions with the Company’s transfer agent and
registrar against the transfer of the Undersigned’s Shares except in compliance
with the foregoing restrictions.

The
undersigned understands and agrees that this Lock-Up Agreement is irrevocable
and shall be binding upon the undersigned’s heirs, legal representatives,
successors, and assigns.

This
Lock-Up Agreement may be executed in two counterparts, each of which shall be
deemed an original but both of which shall be considered one and the same
instrument.

This
Lock-Up Agreement will be governed by and construed in accordance with the laws
of the State of New York, without giving effect to any choice of law or
conflicting provision or rule (whether of the State of New York, or any other
jurisdiction) that would cause the laws of any jurisdiction other than the
State of New York to be applied.  In
furtherance of the foregoing, the internal laws of the State of New York will
control the interpretation and construction of this Lock-Up Agreement, even if
under such jurisdiction’s choice of law or conflict of law analysis, the
substantive law of some other jurisdiction would ordinarily apply.

The Buyers shall be intended third party
beneficiaries of this Agreement to the same extent as if they were parties
hereto, and shall be entitled to enforce the provisions hereof.

	
  

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  Apollo Resources International, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ DENNIS G. MCLAUGHLIN, III

  
	
   

  	
   

  	
  Name: Dennis G.
  McLaughlin, III

  
	
   

  	
   

  	
  Title: Chief
  Executive Officer

  

 

 

3001 Knox Street ·
Suite 403 · Dallas Texas 75205     214-522-0915 ·
214-389-9805 FacsimileEXHIBIT
10.64

July 24, 2006

Earth Biofuels, Inc.

3001 Knox Street, Suite 403

Dallas, Texas 75205

Re:  Earth Biofuels, Inc. (“the Company”) – Management Lock-Up Agreement

Dear
Sirs:

In connection with the issuance of a new series of senior convertible notes of
the Company (the “Notes”), which
Notes shall be convertible into Common Stock, par value $0.001 per share, of the Company and warrants to acquire additional shares
of Common Stock (each a “Security” and collectively, the “Securities”), pursuant to the Securities
Purchase Agreement entered by and among the Company and the investors
named on the Schedule of Buyers attached thereto (the “Buyers”),
on July 21, 2006 (the “Securities Purchase
Agreement”), the
undersigned agrees that, commencing on the date hereof and during the period
specified below (the “Lock-Up Period”),
the undersigned will not offer, sell, contract to sell, hypothecate, pledge,
grant any option to purchase, make any short sale or otherwise dispose of,
directly or indirectly, or establish or increase a put equivalent position or
liquidate or decrease a call equivalent position within the meaning of Section
16 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”) and the rules and regulations of the
Securities and Exchange Commission promulgated thereunder with respect to any
shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), owned directly by the undersigned (including
holding as a custodian) or with respect to which the undersigned has beneficial
ownership within the rules and regulations of the Securities and Exchange
Commission (collectively the “Undersigned’s
Shares”).

The
foregoing restriction is expressly agreed to preclude the undersigned or any
affiliate of the undersigned from engaging in any hedging or other transaction
which is designed to or which reasonably could be expected to lead to or result
in a sale or disposition of the Undersigned’s Shares even if the Undersigned’s
Shares would be disposed of by someone other than the undersigned.  Such prohibited hedging or other transactions
would include, without limitation, any short sale or any purchase, sale or
grant of any right (including, without limitation, any put or call option) with
respect to any of the Undersigned’s Shares or with respect to any security that
includes, relates to, or derives any significant part of its value from the
Undersigned’s Shares.

The
Lock-Up Period will commence on the date hereof and continue until one (1) year
after the Closing (as defined in the Securities Purchase Agreement); provided,
however, that notwithstanding the foregoing, the undersigned shall be
permitted to sell the Undersigned’s Shares at a price greater than $5.80 or, in an underwritten public offering, at a price no
lesser than $5.075, with gross proceeds of not less than $65 million.

Notwithstanding
the foregoing, the undersigned may transfer the Undersigned’s Shares (i) as a bona fide gift or gifts, provided that the donee or donees
thereof agree to be bound in

3001 knox street ·
suite 403 · dallas texas 75205

214.389.9800 ·
214.389.9805 facsimile

 

writing
by the restrictions set forth herein, (ii) to any trust for the direct or
indirect benefit of the undersigned or the immediate family of the undersigned,
provided that the trustee of the trust agrees to be bound in writing by the
restrictions set forth herein, and provided further that any such transfer
shall not involve a disposition for value, or (iii) if the undersigned is or
becomes subject to the reporting requirements of Section 16 of the Exchange
Act, pursuant to the terms of written trading plans in existence on the date
hereof or entered into after the date hereof designed to comply with Rule
10b5-1(c) of the Exchange Act, provided no sales or other dispositions may
occur under such plans until after the closing of trading on the date one (1)
year from the Closing.  For purposes of
this Lock-Up Agreement, “immediate family” shall mean any relationship by
blood, marriage or adoption, not more remote than first cousin.  The undersigned now has, and, except as
contemplated by clauses (i) and (ii) above, for the duration of this Lock-Up
Agreement will have, good and marketable title to the Undersigned’s Shares,
free and clear of all liens, encumbrances, and claims whatsoever.  The undersigned also agrees and consents to
the entry of stop transfer instructions with the Company’s transfer agent and
registrar against the transfer of the Undersigned’s Shares except in compliance
with the foregoing restrictions.

The
undersigned understands and agrees that this Lock-Up Agreement is irrevocable
and shall be binding upon the undersigned’s heirs, legal representatives,
successors, and assigns.

This
Lock-Up Agreement may be executed in two counterparts, each of which shall be
deemed an original but both of which shall be considered one and the same
instrument.

This
Lock-Up Agreement will be governed by and construed in accordance with the laws
of the State of New York, without giving effect to any choice of law or
conflicting provision or rule (whether of the State of New York, or any other
jurisdiction) that would cause the laws of any jurisdiction other than the
State of New York to be applied.  In
furtherance of the foregoing, the internal laws of the State of New York will
control the interpretation and construction of this Lock-Up Agreement, even if
under such jurisdiction’s choice of law or conflict of law analysis, the
substantive law of some other jurisdiction would ordinarily apply.

The Buyers shall be intended third party beneficiaries
of this Agreement to the same extent as if they were parties hereto, and shall
be entitled to enforce the provisions hereof.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ DENNIS G.
  MCLAUGHLIN, III

  	
   

  
	
   

  	
  Dennis G.
  McLaughlin, III

  
	
   

  	
  Chief Executive
  Officer

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