Item 1.01 Entry into a Material Definitive Agreement.

Nixon Product Storage, LLC (the "Borrower"), a wholly owned subsidiary of Blue Dolphin Energy Company ("Blue Dolphin"), entered into a Loan Agreement with Greater Nevada Credit Union, as lender ("Lender"), for a term loan in the aggregate principal amount of $10.0 million (the "NPS Loan") effective October 1, 2021.

The NPS Loan has a ten-year term with a fixed interest rate of 5.75% and requires monthly interest-only payments beginning in October 2021 and continuing through the first thirty-six (36) months. Thereafter, principal and interest payments shall be due monthly through loan maturity in October 2031. Proceeds of the NPS Loan will be used for working capital purposes and for loan closing costs.

The NPS Loan is secured by a deed of trust lien on approximately 56 acres of land and improvements owned by LE in Wilson County, Texas, a leasehold deed of trust lien on certain property which is leased by Borrower from LE, an assignment of leases and rents, and certain personal property. The NPS Loan contains various terms and conditions which are customary for loans of this type, including representations and warranties, affirmative and negative covenants respecting the business of the parties to the NPS Loan, financial covenants respecting debt service coverage ratio, ratio of debt to net worth and ratio of current assets to current liabilities, and events of default.

The foregoing description of the NPS Loan constitutes only a summary thereof and is qualified in its entirety by reference to the text thereof, which Blue Dolphin intends to file as exhibits within the reporting period for the three months ended December 31, 2021.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

See Item 1.01 above for a description of the NPS Loan.






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