SEC Contract Filing

Filing Date: 2015-12-10

Document Content:
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<TYPE>EX-10.7
<SEQUENCE>8
<FILENAME>ex107.htm
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<div>Exhibit 10.7</div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">INDEMNIFICATION AGREEMENT</font></font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">This Agreement is made and entered into on the 4<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: text-top">th</font> day of December, 2015 by Lazarus Refining &amp; Marketing, LLC, a Delaware limited liability company (&#8220;Debtor&#8221;), Blue Dolphin Energy Company, Lazarus Energy LLC, a Delaware limited liability company, Lazarus Energy Holdings LLC, a Delaware limited liability company, and Jonathan Pitts Carroll, Sr. (collectively on a joining and several basis, &#8220;Guarantor&#8221;, whether one or more) for the benefit of Sovereign Bank (&#8220;Lender&#8221;) in connection with that certain loan from Lender to Debtor in the original principal amount of $10,000,000.00 (the &#8220;Loan&#8221;).&#160;&#160;The Loan is secured by (i) a second lien Deed of Trust, Mortgage, Security Agreement, Assignment of Rents, Financing Statement and Fixture Filing made by Lazarus Energy to Robert Blount, as Trustee, for the benefit of Lender, and (ii)&#160;&#160;a first lien Leasehold Deed of Trust, Mortgage, Security Agreement, Assignment of Rents, Financing Statement and Fixture Filing made by Debtor to Robert Blount, as Trustee, for the benefit of Lender (collectively, the &#8220;Deed of Trust&#8221;) on real property more particularly described on Exhibit &#8220;A&#8221; attached hereto and made a part hereof for all purposes (the &#8220;Property&#8221;).</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Debtor and Guarantor represent and warrant that, with the exception of the matters revealed by the Phase I and Phase II environment assessments previously delivered to Lender (the &#8220;Report&#8221;), the following statements are true:</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 36pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(1)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">No industrial activities that could have resulted in environmental contamination of the Property have occurred on the Property to Debtor&#8217;s or Guarantor&#8217;s knowledge, including without limitation, storage, treatment or disposal of hazardous substances;</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 36pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(2)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Other than the Report, no report, analysis, study or other document identifies any harmful or friable asbestos or hazardous contaminants on the Property to Debtor&#8217;s or Guarantor&#8217;s knowledge; and</font></div>

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<div style="TEXT-ALIGN: justify; TEXT-INDENT: 72pt; MARGIN-LEFT: 36pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(3)</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">the Property contains no harmful or friable asbestos, hazardous wastes or other hazardous substances to Debtor&#8217;s or Guarantor&#8217;s knowledge.</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">At its sole cost and expense, Debtor and Guarantor shall comply with all federal, state and local laws, regulations and orders with respect to the discharge and removal of hazardous or toxic substances, pay immediately when due the cost of removal of any such substances, and keep the Property free of any lien imposed pursuant to such laws, regulation and orders, regardless of whether such toxic substances were introduced to the Property prior to or after Debtor&#8217;s ownership and control of the Property.&#160;&#160;In addition, Debtor shall not install or permit to be installed in the Property any friable asbestos or any substance containing asbestos and deemed hazardous by applicable federal, state and local laws, regulations and orders.&#160;&#160;In addition to the remedies set forth