Document:

Camber Energy, Inc. 425 

 

 

 Exhibit
10.8

 

 

COMPROMISE
SETTLEMENT AGREEMENT

 

This
Compromise Settlement Agreement ("Agreement" or “Settlement Agreement”) is made and entered into on January
27, 2020 and between, Petroglobe Energy Holdings, LLC (“PetroGlobe”), Signal Drilling, LLC (“Signal”),
Petrolia Oil, LLC (“Petrolia”), Prairie Gas Company of Oklahoma, LLC (“PGCO”) and Canadian River Trading
Company, LLC (“CRTC”), on one side, and Camber Energy, Inc. (“Camber”), on the other side (collectively,
the "Parties").

 

Whereas
the Parties are currently involved in a lawsuit styled Petroglobe Energy Holdings, LLC and Signal Drilling, LLC v. Camber Energy,
Inc. vs. Petrolia Oil, LLC, Prairie Gas Company of Oklahoma, LLC and Canadian River Trading Company, Cause No. 43781, pending
in the 316th District Court of Hutchinson County, Texas (the "Lawsuit").

 

Whereas
the Parties have agreed to settlement of the Lawsuit in order to avoid further litigation.

 

For
the consideration described below, the promises of the Parties, and other good and valuable consideration, each of the Parties
agree to the terms of this Settlement Agreement to compromise, release, settle, compromise and completely satisfy all claims which
the Parties may have against one another as set forth below:

 

1.       Payment
by Camber. Camber shall deliver payment by cashier’s check or ACH transfer to PetroGlobe of the sum of $250,000.00 USD
as follows: $100,000.00 USD down payment to PetroGlobe upon execution of this Agreement, and $150,000.00 USD to be paid into escrow
acceptable to Camber and PetroGlobe with release subject to approval of Camber upon the successful transfer of all wells and partnership
interests of CE Energy, LLC as described herein. The intent of such transfer is that: a) Camber shall be completely removed from
liabilities resulting from future acts or omissions of CE Energy, LLC occurring after the transfer of all wells and partnership
interests of CE Energy, LLC as provided herein; b) CE Energy, LLC is effectively transferred and all steps have been approved
by the Railroad Commission of Texas including approval of new directors, officers and owners of greater than a 25% interest of
CE Energy, LLC; and c) that liability for the wells and partnership interests of Camber in CE Energy, LLC, and the current officers
and directors of CE Energy, LLC will be transferred after approval by the Railroad Commission along with all oil in storage tanks
and the bond currently in place.

 

    	 	   	 

    	 

    

 

 

2.       Bringing
Properties into Regulatory Compliance. Camber agrees to immediately undertake and maintain all commercially reasonable and
necessary actions and efforts that are calculated to bring into regulatory compliance all wells identified on Exhibit A, which
is attached hereto and incorporated for all purposes to the extent such compliance is required to obtain Railroad Commission of
Texas approval of the Form “P-5” organization report for CE Energy, LLC currently pending renewal at the Commission.
Camber further covenants and agrees to exercise its best efforts to obtain approval of such P-5 by March 12, 2020. Camber shall
bear all costs and expenses required to bring such wells into P-5 compliance. It is understood and agreed by the Parties that
Camber will obtain any well plugging extensions for existing wells necessary for such P-5 renewal, but may be required to plug
and abandon, at Camber’s expense, up to four existing wells that have failed mechanical integrity tests in the past.

 

3.       PetroGlobe
Cooperation. PetroGlobe agrees to reasonably cooperate with Camber in its efforts to bring the wells identified on Exhibit
A into regulatory compliance; provided, however, that PetroGlobe shall not be liable for its cooperative efforts nor shall any
dissatisfaction of Camber with the nature or degree of PetroGlobe’s cooperation be a basis for any claim against PetroGlobe
or for contesting, disavowing or otherwise failing to comply with the provisions of this Agreement.

 

4.       Assignment
of Properties, Membership Interest and Substitution of Parties at Railroad Commission. Upon successful completion of the provisions
of paragraph 2, above, Camber shall assign to PetroGlobe or its designee all of its right, title and interest in all wells, leases,
royalties, minerals, equipment, and other tangible assets associated with the wells and properties described on Exhibit A as set
forth on the form of Assignment, Bill of Sale and Conveyance attached hereto and incorporated as Exhibit B. Said properties shall
be free and clear of all claims and liens arising during the direct operation of such properties by CE Energy, LLC, but not otherwise
and specifically not when PetroGlobe was operating the assets either as PetroGlobe or through CE Energy, LLC, at the time of the
assignment. At the same time, Camber shall assign all of its membership interest in CE Energy, LLC to Petroglobe or its designee
using the form of assignment attached hereto and incorporated as Exhibit C. Further, the Parties shall jointly: a) prepare a revised
Railroad Commission form “P-5 O”, listing of officers, directors and owners to remove all current officers, directors,
and owners of CE Energy, LLC from the form and substitute the new officers, directors and owners of CE Energy, LLC as directed
by Petroglobe, which officers, directors and owners shall be persons or entities selected by the new owners of CE Energy, LLC
who are not disqualified by Texas law, including Section 91,114 Tex. Nat. Res. Code, from receiving an approved organization report
from the Railroad Commission. Such P-5 O form shall be filed by the Parties with the Commission immediately upon assignment of
such membership interests.

 

    	 	Page 2 of 10	 

    	 

    

5.       Remedy
for Commission Failure to Approve Form “P-5 O”. In the event that the Railroad Commission of Texas fails or refuses
to approve the form “P-5 O” to remove all current officers, directors, and owners of CE Energy, LLC from the form
and substitute the new officers, directors and owners of CE Energy, LLC as directed by Petroglobe within 180 days of delivery
of assignment of Camber’s interests in CE Energy, LLC to PetroGlobe or its designee, the Parties shall cooperate to seek
divestiture of their interests in the wells and leaseholds that are held in escrow. The Parties shall have a period of an additional
180 days to complete this divestiture. Upon completion of such divestiture and removal of Camber and the current officers and
directors of CE Energy, LLC from potential regulatory responsibility for such wells and leaseholds, Camber shall direct the release
to PetroGlobe of all funds held in escrow. If the properties are not so divested within the additional 180-day period as provided
above, the funds held in escrow shall be returned to Camber.

 

6.       Assignment
of Petrolia Oil, LLC Membership. Upon successful completion of the provisions of paragraph 2 and 4, Camber shall also assign
to PetroGlobe or its assignee all of its membership interest in Petrolia Oil, LLC, using the form of assignment attached hereto
as Exhibit D.  

 

7.       Escrow
Agent. The Parties have selected attorney R. Mark Dietz of the law firm of Dietz & Jarrard, PC to serve as the escrow
agent for handling the escrow of money and any documents related to the settlement as provided in paragraph 1, above, and exchange
of assignments as provided in paragraphs 1 and 4, above. The Parties agree to enter into a separate escrow agreement with R. Mark
Dietz contemporaneous with the execution of this Agreement. All assignments required for this Agreement shall be executed at the
time this Agreement is executed and placed in escrow along with the $150,000 USD cash consideration, with such assignments to
be released from escrow at such time as the Railroad Commission approves the form P-5 referenced in paragraph 2 above, and the
cash consideration to be released as provided in paragraphs 4 or 5 above, whichever is applicable.

 

8.       Release
of Camber. Except as otherwise set forth at the end of this paragraph, Ian B. Acrey, in his individual capacity, PetroGlobe,
Signal, Petrolia, PGCO, and CRTC each for itself, its respective members, shareholders, managers, officers, directors, employees,
agents, representatives, heirs, predecessors, successors and assigns does hereby compromise, settle, release and discharge, any
and all claims and demands, known or unknown, of whatever kind or character which said person, entity, its members, managers,
officers, employees, agents, representatives, heirs, predecessors, successors and assigns, or any of them, has or claims against
Camber, its officers, directors, shareholders, parent, subsidiary and/or affiliate corporations, successors, insurers, agents,
affiliates, employees, representatives, and attorneys (collectively, “the Camber Released Parties”) pertaining to
or related in any way directly or indirectly to the claims or causes of action which were or could have been asserted against
the Released Parties in connection with the Lawsuit or otherwise prior to the effective date of this Agreement. By way of explanation
and without limiting in any way the foregoing release, the Released Parties shall be released and discharged from all claims and
causes of action of any kind, whether or not asserted in the Lawsuit, arising at any time prior to the effective date of this
Agreement. The terms of this Settlement Agreement and their performance are specifically excepted from this release, and each
of the Parties shall retain their respective rights to enforce the terms of this Settlement Agreement.

 

    	 	Page 3 of 10	 

    	 

    

 

 

9.       Release
of PetroGlobe, Signal, Petrolia, PGCO, and CRTC. Camber for itself and its affiliate, CE Energy, LLC, their respective officers,
directors, employees, agents, members, managers, employees, representatives, heirs, successors and assigns does hereby compromise,
settle, release and discharge, any and all claims and demands, known or unknown, of whatever kind or character, which Camber and
CE Energy, LLC, their respective officers, directors, members, managers, employees, agents, representatives, heirs, successors
and assigns, or any of them, has or claims against Ian B. Acrey, in his individual capacity, PetroGlobe, Signal, Petrolia, PGCO,
and CRTC and each of said entities respective members, managers, officers, employees, agents, representatives, heirs, successors
and assigns, and their respective predecessors, successors, insurers, agents, affiliates, employees, representatives, officers,
directors, shareholders, parent, subsidiary and/or affiliate corporations, and attorneys (collectively, “the Acrey Released
Parties”) pertaining to or related in any way directly or indirectly to the claims or causes of action which were or could
have been asserted against the Camber Released Parties in connection with the Lawsuit or otherwise arising before the effective
date of this Settlement Agreement. By way of explanation and without limiting in any way the foregoing release, the Camber Released
Parties shall be released and discharged from all claims and causes of action of any kind, whether or not asserted in the Lawsuit,
arising at any time prior to the effective date of this Settlement Agreement. The terms of this Settlement Agreement and their
performance are specifically excepted from this release, and each of the Parties shall retain their respective rights to enforce
the terms of this Settlement Agreement. Camber is not releasing any claims or causes of action whatsoever against N&B Energy,
LLC, Sezar Energy,
L.L.P, related to Richard Azar, or any of their affiliates, or predecessors or successors, pursuant to this Section 7.

 

 

10.       Dismissal
of the Lawsuit. Within seven (7) days of the effective date of this Agreement, the Parties shall cooperate to promptly cause
the following to occur: filing of a motion and order to dismiss the Lawsuit with prejudice and the request for timely entry of
same by the Court.

 

    	 	Page 4 of 10	 

    	 

    

 

 

11.       Warranties
and Representations of the Parties. The Parties warrant and represent as follows:

 

		A.	Each
                                         of the Parties warrants and represents to the other parties that said party has entered
                                         into this Settlement Agreement of its own free will, in accordance with its judgment,
                                         after the opportunity to investigate the claims made in connection with the Lawsuit,
                                         and after consultation with its respective attorneys;

 

		B.	None
                                         of the Parties have been induced to enter into this Settlement Agreement by any statement,
                                         act, or representation of any kind or character on the part of any other Party;

 

		C.	The
                                         terms of this agreement were drafted by the Parties and their counsel. No provision of
                                         this Settlement Agreement shall be construed against any Party because that Party initially
                                         drafted any particular provision.

 

		D.	Each
                                         of the Parties acknowledges that the terms of this Settlement Agreement are clear and
                                         unambiguous and have been fully read and understood.

 

		E.	Camber
                                         warrants that it has paid all of its subcontractors, suppliers and/or vendors any disputed
                                         amounts due and owing in connection with operation of the properties set forth on Exhibit
                                         A during the time such properties were directly operated by CE Energy, LLC, and specifically
                                         not when PetroGlobe was operating the assets either as PetroGlobe or through CE Energy,
                                         LLC but not otherwise, and that such properties are free and clear of any liens related
                                         to such time periods. Camber further agrees to release, indemnify and hold harmless PetroGlobe
                                         and its assigns from any claim or demand made by any such subcontractor, supplier and/
                                         or vendor in the future with respect to said time period that CE Energy, LLC directly
                                         operated such properties but specifically not when PetroGlobe was operating the assets
                                         either as PetroGlobe or through CE Energy, LLC.

 

		F.	This
                                         Settlement Agreement is a compromise settlement of each party's disputed claims, and
                                         the sums and covenants given in consideration of this Settlement Agreement, as well as
                                         the execution of this Settlement Agreement, shall not be construed to be an admission
                                         of liability on the part of any party with respect to the disputed matters set forth
                                         above or contained in pleadings filed in the Lawsuit.

 

		G.	Each
                                         signatory to this Settlement Agreement has the authority to enter into and execute this
                                         Settlement Agreement and all corporate formalities have been complied with in order to
                                         bind the party for whom said signatory has executed this document.

 

		H.	Each
                                         of the parties executing this Settlement Agreement has the right to rely upon the authority
                                         of signature of each signatory to this document.

 

		I.	Acrey
                                         represents that the transfers contemplated by this Agreement are authorized by any applicable
                                         company agreements.

 

    	 	Page 5 of 10	 

    	 

    

 

 

12.       Governing
law and venue. This Settlement Agreement shall be construed in accordance with the laws of the State of Texas irrespective
of the Doctrine of Conflicts. Venue for any and all disputes relating to this Settlement Agreement shall be in Dallas County,
Texas.

 

13.       Successors
and assigns. This Settlement Agreement and all of the terms herein are binding upon and shall inure to the benefit of the
Parties, their successors, assigns, representatives, and third parties with whom any party to this Settlement Agreement is in
privity.

 

14.       Counterparts.
This Settlement Agreement may be signed in counterparts, each of which shall be deemed an original. This Settlement Agreement
may only be amended in writing, which amendment may also be signed in counterparts.

 

15.       Further
Assurances. The Parties agree to execute and deliver any additional papers, documents and other assurances, and take all acts
that are reasonably necessary to carry out the intent of this Settlement Agreement.

 

16.       Savings
Clause. Should any term or provision of this Settlement Agreement be held invalid or unenforceable, the remaining terms or
provisions not held invalid or unenforceable, shall be applied, governed and enforced to the fullest extent permitted by law.

 

17.       Parties
to Bear Own Costs and Attorneys' Fees. Each party to this Settlement Agreement will bear its own costs, expenses, and claims
to interest and attorneys' fees, whether taxable or otherwise, incurred in or arising out of, or in any way connected with the
matters which are referenced or covered in the mutual releases referenced above or which were otherwise related to the subject
of this Settlement Agreement.

 

18.       Attorneys’
Fees for Enforcement. In the event litigation is necessary to enforce a provision or provisions of this Settlement Agreement,
all costs, expenses and attorneys' fees, whether taxable or not, shall be paid by the non-prevailing party or parties to the prevailing
party or parties.

 

19.       Severability.
Should any portion (word, clause, phrase, sentence, paragraph or section) of this Settlement Agreement be declared void or unenforceable,
such portion shall be considered independent and severable from the remainder, the validity of which shall remain unaffected.

 

    	 	Page 6 of 10	 

    	 

    

 

 

20.       Headings.
The article and section headings used in this Agreement are for convenience only, and the Parties hereto agree that such headings
are not to be construed to limit or extend the meaning of any part of this Agreement.

 

21.       Entire
Agreement. This Settlement Agreement represents and contains the entire agreement and understanding among the parties hereto
with respect to the subject matter of this Settlement Agreement and supersedes any and all prior oral and written agreements and
understandings. No representation, warranty, condition, understanding or agreement of any kind with respect to the subject matter
shall be relied upon by the parties except those contained herein. This Settlement Agreement may not be amended or modified except
by an agreement signed by the party against whom enforcement of any modification or amendment is sought.

 

22.       Specific
Performance. The parties agree and acknowledge that the failure of either party to perform the assignment of ownership
of CE Energy, LL C to PetroGlobe and to successfully accomplish the renewal of Railroad Commission Form P-5 for CE Energy,
LLC and substitution of a new Form P-5 O as set forth herein would result in damage to the parties that could not be
adequately compensated by a monetary award. Therefore the parties agree that, if either party fails to perform the covenants
set forth in this agreement, the non- breaching party may seek an order from a court of appropriate jurisdiction requiring
the party in breach to specifically perform those covenants.

 

    	 	Page 7 of 10	 

    	 

    

 

 

Wherefore,
the Parties have executed this Settlement Agreement as of the date set forth above.

 

	CAMBER ENERGY, INC.	 	Petroglobe
Energy Holdings, LLC
	 	 	 
	By:	/s/ Louis G. Schott	 	By:	/s/ Ian B. Acrey
	Name:	 Louis G. Schott	 	Name:	 Ian B. Acrey
	Title:	 Interim Chief Executive Officer	 	Title:	 Manager
	 	 	 
	 	 	Signal Drilling,
LLC
	 	 	By:	/s/ Ian B. Acrey
	 	 	Name:	 Ian B. Acrey
	 	 	Title:	 Manager
	 	 	 

 

 

		 	Petrolia
        Oil, LLC
	 	 	 
		 	 	By:	/s/ Ian B. Acrey
		 	 	Name:	 Ian B. Acrey
		 	 	Title:	 Manager
	 	 	 
	 	 	Canadian
                                         River Trading Company, LLC
	 	 	By:	/s/ Ian B. Acrey
	 	 	Name:	 Ian B. Acrey
	 	 	Title:	 President
	 	 	 

		 	Prairie
        Gas Company of Oklahoma, LLC
	 	 	 
		 	 	By:	/s/ Ian B. Acrey
		 	 	Name:	 Ian B. Acrey
		 	 	Title:	 Manager
	 	 	 
	 	 	/s/ Ian B. Acrey
	 	 	Ian B. Acrey, Individually

 

    	 	Page 8 of 10	 

    	 

    

 

	STATE
OF TEXAS	§
	 	§
	COUNTY
OF HARRIS	§

 

 

BEFORE
ME the undersigned Notary Public, on this day personally appeared Louis G. Schott, the Interim Chief Executive Officer of Camber
Energy, Inc., known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he/she
executed the same in the capacity indicated therein and for the purposes and consideration therein expressed.

 

SUBSCRIBED
AND SWORN to before me on this _____ day of January 2020, to certify which witness my hand and official seal of office.

 

 

	 	Notary
Public In and For
	 	The
State of Texas
	 	 

 

 

	My
Commission Expires:	 	 

 

 

    	 	Page 9 of 10	 

    	 

    

 

	STATE
OF OKLAHOMA	§
	 	§
	COUNTY
OF TULSA	§

 

 

BEFORE
ME the undersigned Notary Public, on this day personally appeared Ian B. Acrey, Individually and as Manager of Petroglobe Energy
Holdings, LLC, Signal Drilling, LLC, Petrolia Oil, LLC, Prairie Gas Company of Oklahoma, LLC and Canadian River Trading Company,
LLC, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he/she executed
the same in the capacity indicated therein and for the purposes and consideration therein expressed.

 

SUBSCRIBED
AND SWORN to before me on this _____ day of January 2020, to certify which witness my hand and official seal of office.

 

 

	 	Notary
Public In and For
	 	The
State of Oklahoma
	 	 

 

 

	My
Commission Expires:	 	 

 

    	 	Page 10 of 10mmac_Ex4_3

		
			EXHIBIT 4.3
		

		
			 
		

		
			SECOND AMENDMENT TO TAX BENEFIT RIGHTS AGREEMENT
		

		
			 
		

		
			THIS SECOND AMENDMENT TO TAX BENEFIT RIGHTS AGREEMENT (this “Second Amendment”) is made as of the 12th day of March, 2020, by and between MMA CAPITAL HOLDINGS, INC., a Delaware corporation (f/k/a MMA Capital Management, LLC, a Delaware limited liability company) (the “Company”), and BROADRIDGE CORPORATE ISSUERS SOLUTIONS, INC. (the “Rights Agent”).
		

		
			 
		

		
			WHEREAS, the Company and the Rights Agent are parties to that certain Tax Benefit Rights Agreement dated as of May 5, 2015, as amended by that certain First Amendment thereto dated January 1, 2019 (the “Agreement”), adopted by the Company for the purpose of protecting its net operating losses and certain other tax benefits;
		

		
			 
		

		
			WHEREAS, Section 27 of the Agreement provides, among other things, that, prior to the Distribution Date (as defined in the Agreement), the Company and the Rights Agent may from time to time supplement or amend the Agreement in any respect without the approval of any holders of Rights (as defined in the Agreement);
		

		
			 
		

		
			WHEREAS, no Distribution Date has occurred on or prior to the date hereof; and
		

		
			 
		

		
			WHEREAS, the Board of Directors of the Company (the “Board”) has determined that it is in the best interests of the Company and its shareholders to amend the Agreement as set forth herein.
		

		
			 
		

		
			NOW, THEREFORE, in consideration of the premises and the mutual agreements herein set forth, the parties hereby agree as follows:
		

		
			 
		

		
			1.   Definitions.  Capitalized terms not otherwise defined herein shall have the meanings given them in the Agreement.
		

		
			2.         Specific Amendment.  Section 7 of the Agreement is hereby amended as follows:  Clause (a)(i) shall be amended and restated in its entirety to read as follows:  “(i) the Close of Business on May 5, 2023 (the “Final Expiration Date”),” and
		

		
			3.         Effective Date.  This Second Amendment is effective as of the date first set forth above.
		

		
			4.   Miscellaneous.
		

		
			(a)        Except as amended hereby, the Agreement shall remain in full force and effect.  If any conflict exists between the provisions in this Amendment and the Agreement, this Amendment shall control.  The Agreement, as amended by this Amendment, constitutes the entire agreement of the parties hereto with respect to the subject matter of this Amendment, and
		

		
			
		

		
			

		 

		

			B-1

		

		

		
			contains all of the covenants and agreements of the parties hereto with respect thereto.  This Amendment may not be altered, changed or amended except in accordance with the provisions set forth in the Agreement for an amendment thereto.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns.  All section headings of this Amendment are inserted solely as a matter of convenience and for reference, and are not a substantive part of this Amendment.
		

		
			(b)        This Amendment shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of such State applicable to contracts made and to be performed entirely within such State.
		

		
			(c)        This Amendment may be executed and delivered (including by facsimile transmission) in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement.
		

		
			(d)        By their execution of this Amendment, the undersigned Members hereby confirm that they are duly authorized to execute this Amendment and any necessary requisite approval has been obtained with respect to this Amendment and all matters set forth herein.
		

		
			(Signatures appear on following page)
		

		
			 
		

		
			
		

		
			

		 

		

			B-2

		

		

		
			 
		

		
			IN WITNESS WHEREOF, the proper officers of the Company have duly executed this Second Amendment effective as of the date and year first above written.
		

		
			 
		

			
					
						ATTEST:

					
					
						    

					
					
						MMA CAPITAL HOLDINGS, INC.

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ J Brooks Martin

					
					
						 

					
					
						By:

					
					
						/s/ Gary A. Mentesana

				
	
					
						Name: 

					
					
						J Brooks Martin

					
					
						 

					
					
						 

					
					
						Gary A. Mentesana

				
	
					
						 

					
					
						Secretary

					
					
						 

					
					
						 

					
					
						President

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						ATTEST:

					
					
						 

					
					
						BROADRIDGE CORPORATE ISSUER

				
	
					
						 

					
					
						 

					
					
						 

					
					
						SOLUTIONS, INC.

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Patricia Herzog

					
					
						 

					
					
						By:

					
					
						/s/ John P Dunn

				
	
					
						Name: 

					
					
						Patricia Herzog

					
					
						 

					
					
						Name:

					
					
						John P. Dunn

				
	
					
						Title: 

					
					
						Sr Contracts Administrator

					
					
						 

					
					
						Title:

					
					
						Vice President

				

		
			 
		

		
			 
		

		 

		

			B-3

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