Notice of Forbearance Period End and Payment Resumption for USDA-Guaranteed Loan between American First National Bank and Lazarus Energy LLC

Summary

American First National Bank notifies Lazarus Energy LLC that the forbearance period on their USDA-guaranteed loan will end on August 12, 2013. Starting then, Lazarus Energy LLC must resume monthly payments of $75,310.35, as set in the modified note agreement, with payments due on the first of each month. The payment reserve must also be replenished according to the original note. All other terms and covenants of the original loan remain in effect. This letter serves as a formal reminder to comply with the loan's payment schedule and conditions.

EX-10.3 4 bdco_ex103.htm LETTER bdco_ex103.htm

Exhibit 10.3

AMERICAN FIRST

NATIONAL BANK

July 24th , 2013

Jonathan Carroll

Lazarus Energy LLC

801 Travis St., Suite 2100

Houston, TX 77002

Re: $10Million 90% Gty

USDA Ending of the Forbearance Agreement

Dear Mr. Carroll,

Attached please find a copy of the original USDA FIB Note and the Modified Note Agreement on the subject USDA loan. This is a courtesy letter informing you the ending of the forbearance period in August 12, 2013. Please resume payments on the note in the amount of $75,310.35 as reflected on the Note Modified Agreement. Payments on the note will be due on the first day of every month. The payment set forth was based on the re-amortized amount when the note was modified on June 1st, 2013. In addition, the payment reserve must be replenished in accordance with the original FIB Note.

All other loan covenants on the original promissory note will remain the same and active for the life and/or term of the subject note.

If you have further questions, please do not hesitate to phone me.

Regards,

	/s/ ANALIZA DEL VALLE
	AnaLiza del Valle
	SVP/SBA Manage

Encl: FIB Promissory Note, Note Modification Agreement

9999 Bellaire Boulevard • Houston, Texas 77036 • Tel: 713 ###-###-#### • Fax: 713 ###-###-####