Abraxas Petroleum Corporation and AG Energy Funding, LLC (AGEF) entered into an Exchange Agreement dated January 3, 2022. On September 13, 2022, AGEF and Biglari Holdings Inc. (Biglari), entered into a Preferred Stock Purchase Agreement (Purchase Agreement) and an Assignment and Assumption Agreement (Assignment Agreement). Following Biglari's acquisition of the Preferred Shares, a change in control of the Company occurred.
In connection with the change in control of the Company described in Item 5.01 of this Current Report on Form 8-K, Mr. Steven P. Harris was informed on September 15, 2022 that his services as the Vice President – Chief Financial Officer of the Company would no longer be required, effective as of September 30, 2022. In consideration for Mr. Harris's services, the Company will pay Mr. Harris a severance payment equal to one month of Mr. Harris's salary compensation for each year of his service to the Company. Mr. Harris has served as the Company's Vice President – Chief Financial Officer since November 2018.