Document:

Exhibit 10.1

 

 

 

 

 

TERMS

 

-Bruce Kutinsky and the Company have agreed
that Bruce will no longer serve as Akorn, Inc. COO effective December 31, 2018 11:59 PM;

 

-Bruce will serve in a consulting role to the
Company and will be reasonably available to the President and CEO and to the Akorn Management team to provide transition and consulting
related support from January 1, 2019 through March 31, 2019 and further to provide support to the Akorn Legal Department through
December 31, 2019 pursuant to a separate consulting or other agreement.

 

Bruce and the Company are parties to an employment
agreement and agree to modify certain terms of that agreement as follows, with all other unmodified terms remaining in effect:

 

		a.	Severance: Bruce’s employment with Akorn will terminate effective December 31, 2018, 11:59PM.
Bruce is entitled to severance benefits under his employment agreement as though Bruce resigned for good reason (a lump-sum
cash payment equal to one year of base annual compensation and total eligible annual bonus) and further,
Akorn will continue to provide Bruce life and health insurance (substantially similar to his health and benefits coverage in effect
in December 2018) through February 28, 2020;

 

		b.	Consulting Agreement: Bruce and Akorn will endeavor to enter into a separate agreement engaging Bruce to serve in a consulting
role providing transition support services to the Company through March 31, 2019, and, in addition, to provide support to the Akorn
Legal Department through December 31, 2019. Akorn agrees to reimburse any and all reasonable travel expenses Bruce incurs, at the
request of Akorn, related to the transition and legal support services;

 

		c.	Consideration: In consideration of Bruce’s agreement to provide aforementioned consulting and support services, Bruce’s
unvested restricted stock units will immediately vest on December 31, 2018, and he will be compensated a total fee in the amount
of $906,675 paid in 12 equal monthly installments;

 

		d.	Lease and Moving Expenses: Bruce intends to terminate his Deerfield, IL apartment lease effective January 31, 2019, and should
the Company require Bruce to extend that lease, the Company would be responsible for any rent payments incurred after January 31,
2019. Further, the Company agrees to pay for or reimburse Bruce for reasonable relocation expenses, expected to be approximately
$5,000, from Deerfield, IL to Ann Arbor, MI.

 

These terms are hereby agreed to
and binding between the parties and failure of the parties to enter into any formal agreements memorializing the terms shall not
affect their validity.

 

 

 

	Akorn, Inc.	 	Bruce Kutinsky
	/s/ Gregory P. Lawless	 	/s/ Bruce KutinskyExhibit 10.1 

 

 

 

December
31, 2018

 

Old
Ironsides Energy

10
St. James Avenue, 19th Floor

Boston,
Massachussetts 02116

Attention:
Scott Carson

 

	Re:	Membership
Interest Purchase Agreement dated as of May 4, 2018 by and among Old Ironsides Fund II-A Portfolio Holding Company, LLC,
a Delaware limited liability company, and Old Ironsides Fund II-B Portfolio Holding Company, LLC, a Delaware limited liability
company (together, the “Sellers”); and Carbon Natural Gas Company (n/k/a Carbon Energy Corporation),
a Delaware corporation (the “Purchaser”), as amended by (i) that certain letter agreement dated
July 20, 2018, (ii) that certain letter agreement dated October 15, 2018, (iii) that certain letter agreement dated
November 6, 2018, and (iv) that certain letter agreement dated November 30, 2018, by and among the Sellers and the Purchaser (collectively,
“Purchase Agreement”)

 

Gentlemen:

 

In
accordance with Section 9.3 of the Purchase Agreement, when executed by you below, this letter shall confirm the agreement
between Sellers and Purchaser and amend the Purchase Agreement in the following respects:

 

(1)
All references in the Purchase Agreement to “Carbon Natural Gas Company” shall be amended to reflect the change of
Purchaser’s corporate name to “Carbon Energy Corporation.”

 

(2)
Section 1.2 is hereby amended by deleting it in its entirety and replacing it with the following:

 

“Purchase
Price. The price to be paid for the Subject Class A Units shall be Fifty-Six Million Eight Hundred Five Thousand Eight Hundred
Fifty-Four Dollars ($56,805,854.00) (the “Base Purchase Price,” and as adjusted in accordance with Section
1.3 hereof, the “Purchase Price”). The Purchase Price shall be paid at Closing, allocated and payable
to each Seller in the respective percentages set forth on Exhibit A opposite such Seller’s name, as follows: (i)
an amount equal to Thirty-Three Million Dollars ($33,000,000.00) (the “Cash Payment”) and (ii) any
amount by which the Final Price exceeds the Cash Payment by delivery of Purchaser’s promissory notes substantially in the
form attached hereto as Exhibit G (each, a “Purchase Note” and together, the “Purchase
Notes”).”

 

	1700
    Broadway, Suite 1170, Denver, Colorado 80290	Telephone
    720 407 7030 Facsimile 720 407 7031
	2480
    Fortune Drive, Suite 300, Lexington, Kentucky 40509	Telephone
    859 299 0771 Facsimile 859 299 0772
	270
    Quail Court, Suite B, Santa Paula, California 93060	Telephone
    805 933 1901 Facsimile 805 933 9901
	US
    5974759	 

 

     

     

    

 

(3)
Section 1.3(e) is hereby amended by deleting it in its entirety and replacing it with the following:

 

“Final
Settlement Statement. On or before ninety (90) days after Closing, a final settlement statement (the “Final Settlement
Statement”) will be prepared by Purchaser and delivered to Sellers, setting forth Purchaser’s good faith calculation
of the Purchase Price and reflecting each adjustment made in accordance with this Agreement and the resulting final Purchase Price
(the “Final Price”). As soon as practicable, and in any event within thirty (30) days after receipt
of the Final Settlement Statement, Sellers shall return to Purchaser a written report containing any proposed changes to the Final
Settlement Statement and an explanation of any such changes and the reasons therefor (the “Dispute Notice”).
Any changes not so specified in the Dispute Notice shall be deemed waived, and Purchaser’s determinations with respect to
all such elements of the Final Settlement Statement that are not addressed specifically in the Dispute Notice shall prevail. If
Sellers fail to timely deliver a Dispute Notice to Purchaser containing changes Sellers propose to be made to the Final Settlement
Statement, the Final Settlement Statement as delivered by Purchaser will be deemed to be correct and will be final and binding
on the parties hereto and not subject to further audit or arbitration. If the Final Price set forth in the Final Settlement Statement
is mutually agreed upon in writing by Sellers and Purchaser, the Final Settlement Statement and the Final Price, shall be final
and binding on the parties hereto and not subject to further audit or arbitration. Any difference in the Purchase Price paid at
Closing, in cash or represented by the Purchase Notes, pursuant to the Preliminary Settlement Statement, and the Final Price,
shall adjust the principal of each of the Purchase Notes, pro rata in accordance with the percentages set forth in Exhibit
A opposite each Seller’s name, on the day of the final determination of such owed amounts in accordance herewith by
the amount of such difference in favor of the owed party.”

 

(4)
Section 2.1 is hereby amended by deleting it in its entirety and replacing it with the following:

 

“Closing.
The closing of the sale and purchase of the Subject Class A Units (the “Closing”) shall take place on
December 28, 2018, subject to the satisfaction (or, to the extent permitted, the waiver) of the conditions set forth in Sections
5.1 and 5.2 (other than any condition which by its nature is to be satisfied at the Closing, but subject to satisfaction
of all such conditions) or at such other place, time and date as may be agreed by Seller and Purchaser (such date upon which the
Closing occurs, the “Closing Date”), and the benefits of the transaction, including, but not limited
to the entitlement to the revenue, deductions, expenses and other financial and/or Tax matters, shall be effective as of 12:01
a.m. on that date. The Closing shall take place at the offices of the Purchaser, at 1700 Broadway, Suite 1170, Denver, Colorado
80290, at such time as the parties may agree, or via email exchange of documents. The date of the Closing is sometimes herein
referred to as the “Closing,” provided, however, that all references to the “Closing” as a point in time
from which, or to which, a period of time is to be measured shall be deemed references to the Closing Date, unless otherwise set
forth herein. At Closing, (x) Sellers’ shall execute, acknowledge and deliver to Purchaser the items described in Sections
5.1(c) and 5.1(g) and (y) Purchaser shall execute, acknowledge and deliver to Sellers the items described in Sections
5.2(c) and 5.2(e).”

 

    2 

     

    

 

(5)
Section 3.2(c) is hereby amended by deleting it in its entirety and replacing it with the following:

 

“Validity
of Contemplated Transactions, Etc. The execution, delivery and performance of this Agreement and the Purchase Notes by the
Purchaser does not and will not violate, conflict with or result in the breach of any term, condition or provision of, or require
the consent of any other Person under (i) any existing regulation of any Governmental Body to which the Purchaser, or to Purchaser’s
Knowledge, the Company is subject, (ii) any judgment, order, writ, injunction, decree or award of any Governmental Body that is
applicable to Purchaser or, to such Purchaser’s Knowledge, the Company, (iii) to Purchaser’s Knowledge, the organizational
documents of the Company or any securities issued by the Company, or (iv) the organizational documents of the Purchaser or any
securities issued by the Purchaser, or (v) any mortgage, indenture, agreement, contract, commitment, lease, plan, authorization,
or other instrument, document or understanding (excluding, for the avoidance of doubt, that certain Credit Agreement among Purchaser,
the Lenders from time to time party thereto and LegacyTexas Bank dated October 3, 2016, as amended, and all documents contemplated
thereunder (the “CRBO Credit Agreement”)), oral or written, to which Purchaser or, to Purchaser’s
Knowledge, the Company is a party, by which Purchaser or the Company may have rights or by which any of the Company’s assets
or its Subsidiaries may be bound or affected, or give any party with rights thereunder the right to terminate, modify, accelerate
or otherwise change the existing rights or obligations of the Company or any Subsidiary thereunder, in each case (i) through (v),
other than (A) in the case of consents, those that have already been obtained or that are to be obtained prior to Closing and
(B) such as could not reasonably be likely to have a material adverse effect. No authorization or approval of, and no filing with,
any Governmental Body is required in connection with the execution, delivery or performance of this Agreement by the Purchaser,
except as otherwise set forth herein.”

 

(6)
Section 4.2(h) is hereby amended by deleting it in its entirety and replacing it with the following:

 

“Financing.
Purchaser shall take, or cause to be taken, all commercially reasonable actions authorized by its board of directors and to do,
or cause to be done, all things necessary, proper or advisable to obtain financing in an amount sufficient to consummate the transactions
contemplated hereunder (“Financing”) and under the Purchase Notes. If the Financing is consummated,
Purchaser shall use the net proceeds of such Financing or other funds available to it to pay the Cash Payment at the Closing.”

 

(7)
Section 5.1(e) is hereby deleted in its entirety and replaced with the following word: “[Reserved].”

 

(8)
Section 5.2(e) is hereby amended by deleting it in its entirety and replacing it with the following:

 

“Purchaser’s
Deliveries. The Purchaser shall have delivered to the Sellers at or prior to Closing the following, all of which shall be
in a form reasonably satisfactory to the Sellers and their counsel:

 

(i)
the Cash Payment, to the accounts designated in the Preliminary Settlement Statement, by direct bank or wire transfer in immediately
available funds;

 

(ii)
the Purchase Notes;

 

(iii)
the Assignment;

 

(iv)
the Purchaser’s Release described in Section 5.2(f) below, executed by the Purchaser;

 

(v)
the CA Consents Evidence described in Section 5.2(g) below.”

 

    3 

     

    

 

(9)
In Section 9.1(a)(iv), the first phrase, which currently
reads:

 

“by
the Purchaser upon written notice to Sellers given at any time on or after December 31, 2018 (the “Purchaser’s
Outside Date”);”

 

is
hereby amended to read as follows:

 

“by
the Purchaser upon written notice to Sellers given at any time on or after January 15, 2019 (the “Purchaser’s
Outside Date”);”

 

(10)
In Section 9.1(a)(v), the first phrase, which currently
reads:

 

“by
Sellers upon written notice to Purchaser given at any time on or after December 31, 2018 (the “Sellers’ Outside
Date”);”

 

is
hereby amended to read as follows:

 

“by
Sellers upon written notice to Purchaser given at any time on or after January 15, 2019 (the “Sellers’ Outside
Date”);”

 

(11)
The Purchase Agreement is further amended by adding the form of Purchase Note attached hereto as Exhibit G to the Purchase
Agreement.

 

Otherwise
the Purchase Agreement shall remain in full force and effect, in accordance with its existing terms and provisions.

 

This
agreement amending the Purchase Agreement may be executed in any number of counterparts, and each counterpart hereof shall be
effective as to each party that executes the same whether or not all parties execute the same counterpart. If counterparts of
this agreement are executed, the signature pages from various counterparts may be combined into one composite instrument for all
purposes. All counterparts together shall constitute only one agreement, but each counterpart shall be considered an original.
This agreement may be executed and delivered by exchange by email of PDF copies showing the signatures of the parties, and those
PDF copies showing the signatures of the parties will constitute originally signed copies of the same agreement requiring no further
execution.

 

[Signatures
Page Follows]

 

    4 

     

    

 

AGREED
AND ACCEPTED as of the date first written above.

 

	 	SELLERS:
	 	 
	 	OLD
    IRONSIDES FUND II-A PORTFOLIO HOLDING COMPANY, LLC
	 	 	 
	 	By:	 
	 	 	Scott
    E. Carson
	 	 	Managing
    Partner
	 	 	 
	 	OLD
    IRONSIDES FUND II-B PORTFOLIO HOLDING COMPANY, LLC
	 	 	 
	 	By:	 
	 	 	Scott
    E. Carson
	 	 	Managing
    Partner

 

Signature
Page to Amendment

 

     

     

    

 

	 	PURCHASER:
	 	 
	 	CARBON
    ENERGY CORPORATION
	 	(f/k/a
    Carbon Natural Gas Company
	 	 	 
	 	By:	 
	 	 	Patrick
    R. McDonald,
	 	 	Chief
    Executive Officer

 

Signature
Page to Amendment

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}]]