Document:

Blueprint

 

 

Exhibit 10.4 

 

 

APRIL 30, 2019

 

LAZARUS ENERGY LLC
("Lazarus")

801Travis Street, Suite 2100

Houston, TX 77002

 

BLUE DOLPHIN ENERGY
COMPANY ("Blue
Dolphin")

801 Travis Street, Suite 2100

Houston, TX 77002

 

LAZARUS REFINING &
MARKETING, LLC ("LRM")

801 Travis Street, Suite 2100

Houston, TX 77002

 

LAZARUS ENERGY HOLDINGS
LLC ("Holdings")

801 Travis Street, Suite 2100

Houston, TX 77002

 

LAZARUS MARINE TERMINAL I,
LLC ("Marine")

801 Travis Street, Suite 2100

Houston, TX 77002

 

JONATHAN PITTS CARROLL,
SR. ("Carroll")

2201 Sunset Blvd.

Houston, TX 77005

 

RE:            That
certain (a) LOAN AGREEMENT
(as amended, modified or restated from
time to time, the "June
2015 Loan Agreement') dated as
of JUNE 22,
2015, among VERITEX COMMUNITY
LENDER, a Texas state Lender,
as successor in interest to SOVEREIGN LENDER
by merger (together with its
successors and assigns, "Lender'),
Lazarus, Carroll, Blue Dolphin, LRM,
and Holdings (collectively, "Obligor");
(b) LOAN AGREEMENT
(as amended, modified or restated from
time to time, the "December
2015 Loan
Agreement') dated as of
DECEMBER 4,
2015, among Lender, LRM,
Carroll, Blue Dolphin, Lazarus, and Holdings; (c)
LOAN AND SECURITY
AGREEMENT (as amended, modified
or restated from time to time, the "May 2016 Loan
Agreement" and together with
the June 2015 Loan Agreement, and the December 2015 Loan Agreement,
individually and collectively, the "Loan
Agreements" and individually,
a "Loan
Agreement') dated as of
MAY 31, 2016
, among Lender and Marine, with the
joinder of Carroll and Holdings. Capitalized terms not otherwise
defined herein shall have the same meanings as in the Loan
Agreements.

 

Waiver.
As of the quarter ending
MARCH 31,
2019, Obligor is in breach of
the following covenants specified in the Loan Agreements, as
specified below (collectively, the "Financial
Covenant Default"):

 

1.            

June
2015 Loan Agreement:

 

1

 

a. Section
4.2 (a) combined Debt to Tangible Net Worth Ratio of not greater
than 2.50 to 1.0;

 

b. Section
4.2 (c) combined Current Ratio of not less than 1.0 to
1.0;

 

c. Section
4.2 (e) combined Debt Service Coverage Ratio of not less than 1.50
to 1.0;

 

2.           

December
4, 2015 Loan Agreement:

 

a. Section
4.2 (a) combined Debt to Tangible Net Worth Ratio of not greater
than 2.50 to 1.0;

 

b. Section
4.2 (c) combined Current Ratio of not less than 1.0 to
1.0;

 

c. Section
4.2 (e) combined Debt Service Coverage Ratio of not less than 1.50
to 1.0;

 

Subject to the agreement and concurrence of the United States
Department of Agriculture ("USDA") that Lender's waiver of the Financial Covenant
Default shall not impair or void any of the USDA agreements and
guarantees relating to the Loans, Lender hereby waives (the
"Waiver")
the Financial Covenant Default as to
the quarter ending MARCH 31,
2019.

 

Forbearance.
Reference is made to that certain
correspondence dated as of AUGUST 25, 2017
relating to the certain potential
breaches of financial covenants, potential defaults and events of
default under the Loan Agreements (the "Specified
Defaults."). Subject to (a) the
agreement and concurrence of the USDA that Lender's forbearance of
remedies on account of the Specified Defaults shall not impair or
void any of the USDA agreements and guarantees relating to the
Loans, and (b) the replenishment of the Reserve Account on or
before AUGUST 31, 2019,
Lender hereby agrees to forbear
(the "Forbearance")
from exercising or enforcing any
remedies available to it under the Loan Agreements solely to the
extent resulting from the Specified Defaults, including, but not
limited to, the commencement of a lawsuit and/or enforcement
proceedings or other action against Lazarus or any of its assets or
property solely to the extent relating to the Specified Defaults
until AUGUST
31, 2019. Upon the occurrence
of any Event of Default under the Loan Agreements (other than a
Financial Covenant Default) after the date hereof, the Forbearance
shall become void ab initio and have no force or effect for any
purpose whatsoever.

 

Except for the foregoing, Lender hereby expressly
reserves and preserves all of Lender's rights, remedies and
recourses under the Loan Agreements and all of the other documents
evidencing, governing, guaranteeing and/or securing the loans (all
such documents, collectively, with the Loan Agreements, the
"Loan
Documents"), including, without
limitation, Lender's rights with respect to any other breaches or
defaults under the Loan Documents which may be now existing, or
which hereafter occur.

 

2

 

 

This
Waiver and the Forbearance is made as a courtesy to Lazarus, and
shall not constitute a course of dealing or entitle Lazarus to any
further waivers or forbearances. Lender hereby demands strict
performance with all terms and conditions of the Loan
Documents.

 

VERITEX COMMUNITY BANK

 

By:
/s/WILLIAM
ALT

Name: William Alt

 

Title: Executive Vice President

 

3Exhibit 10.1

 

FOURTH AMENDMENT TO LOAN AGREEMENT

 

THIS FOURTH AMENDMENT
TO LOAN AGREEMENT (this “Amendment”) is entered into as of JUNE 24, 2019, between TEXAS CAPITAL
BANK, NATIONAL ASSOCIATION (“Lender”), and VINTAGE STOCK, INC., a Missouri corporation (“Borrower”).

 

RECITALS

 

A.            Whereas,
Lender and Borrower are parties to a LOAN AGREEMENT dated as of NOVEMBER 3, 2016 (as the same has been or may be
amended, supplemented or otherwise modified from time to time, including any other instruments executed and delivered in renewal,
extension, rearrangement or otherwise in replacement thereof, the “Agreement”) (any capitalized terms not specifically
defined herein will have the meaning ascribed to them in the Agreement);

 

B.             Whereas,
Borrower and Lender have agreed to amend certain provisions of the Agreement; and

 

Now,
therefore, in consideration of the parties’ mutual promises in this Amendment, and for other good and valuable
consideration, the sufficiency of which is hereby acknowledged, the parties agree as follows:

 

AGREEMENT

 

1.            
Amendment to Defined Term. The following defined term in Section 1.01 of the Agreement is hereby amended
in its entirety to read as follows:

 

“Inventory
Advance Amount” shall mean NINETY PERCENT (90.00%) of the NOLV of Eligible Inventory.

 

2.             
Amendment to Section 4.01(g). Section 4.01(g) of the Agreement is hereby amended in its entirety to
read as follows:

 

(g)       Inventory
Appraisal(s). Not less frequently than once every year upon Lender’s request, in each case at Borrower’s expense,
an Inventory appraisal in form satisfactory to Lender and prepared by an appraiser satisfactory to Lender; provided, however, that
if the gross value of the Eligible Inventory reported in any Revolving Credit Borrowing Base Report is less than EIGHTEEN MILLION
AND NO/100 DOLLARS ($18,000,000), then such an Inventory appraisal shall be delivered not less frequently than once every SIX
(6) months (or upon Lender’s request) thereafter.

 

3.             
Limited Waiver. Lender hereby waives any Default or Event of Default arising from Borrower’s failure
to comply with Section 5.16 (Fixed Charge Coverage Ratio) of the Loan Agreement for the month ending February 2019. It is
the Loan Parties’ specific intention that this waiver placed each of them in the same position, from the date of the Agreement
through and including the date of this Amendment, as each would have been if no alleged existing Default or Event of Default (if
one arose or could be deemed, or might have been deemed, to have arisen, directly or indirectly) had ever occurred.

 

4.             
Conditions. This Amendment shall be effective upon the completion of Borrower having delivered the following,
in form and substance satisfactory to Lender: (a) this Amendment; and (b) each other document, opinion and certificate required
by Lender.

 

5.            
Representations, Warranties and Covenants; Expenses. Borrower expressly reaffirms all of its representations
and warranties in the Agreement as of the date of this Amendment (except such representations and warranties that expressly relate
to an earlier date). Borrower agrees to pay all costs, expenses and reasonable attorney’s fees of Lender and its counsel
in connection with the Agreement or this Amendment.

 

6.             
No Waiver. Except as set forth in this Amendment, all of the terms and conditions of the Agreement remain
in full force and effect and none of such terms and conditions are, or shall be construed as, otherwise amended or modified, except
as specifically set forth herein and nothing in this Amendment shall constitute a waiver by Lender of any Default or Event of Default,
or of any right, power or remedy available to Lender or any Loan Party under the Agreement, whether any such defaults, rights,
powers or remedies presently exist or arise in the future.

 

7.            
Ratification. The Agreement shall, together with this Amendment and any related documents, instruments and
agreements shall hereafter refer to the Agreement, as amended hereby.

 

 

    
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8.            
Release. EACH LOAN PARTY HEREBY ACKNOWLEDGES AND AGREES THAT IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS
COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS
LIABILITY TO REPAY THE OBLIGATIONS OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM LENDER. EACH LOAN PARTY
HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES THE LENDER AND EACH OF ITS RESPECTIVE PREDECESSORS, AGENTS, EMPLOYEES,
AFFILIATES, SUCCESSORS AND ASSIGNS (COLLECTIVELY, THE “RELEASED PARTIES”) FROM ALL POSSIBLE CLAIMS, DEMANDS,
ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES AND LIABILITIES WHATSOEVER, WHETHER KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED,
SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT OR CONDITIONAL, OR AT LAW OR IN EQUITY, IN ANY CASE ORIGINATING IN WHOLE OR IN PART
ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED THAT SUCH LOAN PARTY MAY NOW OR HEREAFTER HAVE AGAINST THE RELEASED PARTIES, IF
ANY, IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND THAT
ARISE FROM ANY OF THE LOANS, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE AGREEMENT OR ANY OF THE OTHER SECURITY INSTRUMENTS,
AND/OR THE NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT, INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING,
RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE.

 

9.             
Other Provisions. The provisions of the Agreement that are not expressly amended in this Amendment shall remain
unchanged and in full force and effect. In the event of any conflict between the terms and provisions of this Amendment and the
Agreement, the provisions of this Amendment shall control.

 

10.          
Signatures. This Amendment may be signed in counterparts. A facsimile or other electronic transmission of
a signature page will be considered an original signature page. At the request of a party, the other party will confirm a fax-transmitted
or electronically transmitted signature page by delivering an original signature page to the requesting party.

 

REMAINDER OF PAGE LEFT INTENTIONALLY
BLANK

 

 

 

 

 

 

 

 

    
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IN WITNESS WHEREOF,
the parties have caused this Amendment to be duly executed and delivered as of the date first written above.

 

LENDER:

 

TEXAS CAPITAL BANK, NATIONAL ASSOCIATION

 

 

	By:	/s/ Terri Sandridge                                                          
	Name: 	Terri Sandridge
	Title:	Vice President, Corporate Banking-ABL
	 	 
	BORROWER:
	 	 
	VINTAGE STOCK, INC.
	 	 
	 	 
	By:	/s/ Rodney
    Spriggs                                                       
	Name:	Rodney Spriggs
	Title:	CEO and President

 

 

 

 

 

    
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