COMPROMISE SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMSCompromise Settlement Agreement and Release • September 5th, 2008 • Chancellor Group Inc/ • Crude petroleum & natural gas • Texas
This COMPROMISE AND SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS (the “Agreement”) is entered into by and between Chancellor Group, Inc., Gryphon Production Company, LLC, and Gryphon Field Services, LLC (the “Chancellor Parties”) and New Concept Energy, Inc. (“NCE”), each of whom stipulates and agrees to the following:
Letterhead of Legacy Reserves Operating, LP]Chancellor Group Inc/ • September 5th, 2008 • Crude petroleum & natural gas
Reference is made to that certain Escrow Agreement dated July 14, 2008, attached to and made a part of the Agreement (the “Escrow Agreement”). Section 2.2 of the Agreement required that Buyer transmit to Western National Bank (“WNB”), as Escrow Agent, the Deposit (as that term is defined in the Agreement), in an amount equal to Six Hundred Seventy-Five Thousand and No/100 Dollars ($675,000.00). Buyer has previously tendered that Deposit, and the Escrow Agent currently holds the Deposit pursuant to the terms of the Escrow Agreement. In recognition of the actions filed by New Concept’s Energy, Inc. (“NCE”) related to the Bankruptcy Cases, and the indemnification provisions of Section 16.1(D) the parties have agreed to modify the amount to be held in the Escrow Account as well as the terms for release of funds from the Escrow Account by the Escrow Agent. In that regard, the parties agree to the following:
