Company: PED
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001654954-25-013092
Chunk: 199

Company: PEDEVCO CORP
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 3
Chunk 199
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, under the Shareholder Agreement, from and after the Automatic Conversion Date, the Board of Directors of the Company will consist of six directors, or a greater number as approved in accordance with the Company’s organizational documents. On that date, the Juniper Shareholder will have the right to nominate up to three directors (the “Juniper Directors”), including at least one independent director. The Juniper Shareholder’s nomination rights will depend on its, together with its affiliates’, ownership of the shares of common stock issuable upon conversion of the Series A Preferred Stock on the Automatic Conversion Date, as determined on the applicable date of determination as measured relative to the total number of shares of PEDEVCO common stock issued and outstanding on the Automatic Conversion Date (“Juniper Beneficial Ownership”), as follows: if Juniper Beneficial Ownership is 50% or more, it may nominate three Juniper Directors including one which must be an independent director; if Juniper Beneficial Ownership is between 30% and 49.9%, it may nominate two Juniper Directors; if Juniper Beneficial Ownership is between 10% and 29.9%, it may nominate one Juniper Director; and if Juniper Beneficial Ownership is less than 10%, it loses the right to nominate any Juniper Directors. Finally, one independent director will be mutually agreed in writing by the Juniper Shareholder and the Governance Committee, excluding current Juniper Directors on the committee.

The nomination of such Juniper appointed directors is subject to such persons not being prohibited from serving as a member of the Board. In the event any Juniper director ceases serving as a member of the Board of PEDEVCO for any reason, the Juniper Shareholder has the right to designate a replacement, and subject to certain customary exceptions, the Board is required to take all reasonable actions within its control to appoint such replacement person as a member of the Board of the Company to fill such vacancy. The Juniper Shareholder also has the right to remove any Juniper appointed director at any time for any reason. 

In some instances Juniper may have interests different than the rest of our stockholders. The influence or control of our company by such persons may have the effect of delaying or preventing a change of control of our company and may adversely affect the voting and other rights of other stockholders. Additionally, the interests of such persons may differ from the interests of the other stockholders and thus result in corporate decisions that are adverse to other stockholders.

The PEDEVCO Series A Preferred Stock provides