Document:

Exhibit
10.1

 

REGISTRATION
RIGHTS AGREEMENT

 

by
and among

 

U.S.
ENERGY CORPORATION

 

and

 

THE
STOCKHOLDERS PARTY HERETO

 

    	 

     

    

 

Table
of Contents

 

	ARTICLE
    I DEFINITIONS	1
	 	 
	Section
    1.1	Definitions	1
	Section
    1.2	Registrable
    Securities	3
	 	 	 
	ARTICLE
    II REGISTRATION RIGHTS	4
	 	 
	Section
    2.1	Shelf
    Registration	4
	Section
    2.2	Piggyback
    Registration	5
	Section
    2.3	Sale
    Procedures	7
	Section
    2.4	Cooperation
    by Holders	11
	Section
    2.5	Expenses	11
	Section
    2.6	Indemnification	11
	Section
    2.7	Rule
    144 Reporting	12
	Section
    2.8	Transfer
    or Assignment of Registration Rights	14
	 	 	 
	ARTICLE
    III MISCELLANEOUS	15
	 	 
	Section
    3.1	Communications	15
	Section
    3.2	Successors
    and Assigns	16
	Section
    3.3	Assignment
    of Rights	16
	Section
    3.4	Recapitalization
    (Exchanges, etc. Affecting the Registrable Securities)	16
	Section
    3.5	Specific
    Performance	16
	Section
    3.6	Counterparts	16
	Section
    3.7	Headings	17
	Section
    3.8	Governing
    Law, Submission to Jurisdiction	17
	Section
    3.9	Waiver
    of Jury Trial	18
	Section
    3.10	Severability
    of Provisions	18
	Section
    3.11	Entire
    Agreement	18
	Section
    3.12	Term;
    Amendment	18
	Section
    3.13	No
    Presumption	18
	Section
    3.14	Obligations
    Limited to Parties to Agreement	19
	Section
    3.15	Interpretation	19
	Section
    3.16	No
    Inconsistent Agreements; Additional Rights	19

 

    	i

     

    

 

REGISTRATION
RIGHTS AGREEMENT

 

THIS
REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of January 5, 2022 by and between U.S.
Energy Corporation, a Wyoming corporation (“USEG”), and the parties set forth on Schedule A hereto, which have
also signed a signature page of this Agreement under the heading “Holders”.

 

WHEREAS,
this Agreement is made in connection with the closing of the issuance of Common Stock pursuant to the three (3) Purchase and Sale Agreements,
each dated as of October 4, 2021, by and between USEG and the Holders (the “Purchase Agreements”); and

 

WHEREAS,
USEG has agreed to provide the registration and other rights set forth in this Agreement for the benefit of the Holders pursuant to the
Purchase Agreements.

 

NOW
THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged by each party hereto, the parties hereby agree as follows:

 

ARTICLE
I

DEFINITIONS

 

Section
1.1 Definitions. The terms set forth below are used herein as so defined:

 

“Affiliate”
means, with respect to a specified Person, any other Person, directly or indirectly controlling, controlled by or under direct or indirect
common control with such specified Person. For purposes of this definition, “control” (including, with correlative meanings,
“controlling,” “controlled by,” and “under common control with”) means the power to direct or cause
the direction of the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities,
by contract or otherwise.

 

“Agreement”
has the meaning specified in the introductory paragraph.

 

“Business
Day” means any day other than a Saturday, Sunday, any federal legal holiday or day on which banking institutions in the State
of New York or State of Texas are authorized or required by law or other governmental action to close.

 

“Cease
Sale Notification” has the meaning specified in Section 2.3(b)(vii) of this Agreement.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Common
Stock” means the common stock, par value $0.01 per share, of USEG.

 

“Effectiveness
Period” has the meaning specified in Section 2.1(a) of this Agreement.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations of the Commission
promulgated thereunder.

 

    	1 

     

    

 

“Holder”
initially has the meaning given to such term in the introductory paragraph hereof, and shall also apply to the record holder of any Registrable
Securities transferred to such Person in accordance with Section 2.9 hereof.

 

“Included
Registrable Securities” has the meaning specified in Section 2.2(a) of this Agreement.

 

“Law”
shall have the meaning set forth in the Purchase Agreement.

 

“Losses”
has the meaning specified in Section 2.6(a) of this Agreement.

 

“Managing
Underwriter” means, with respect to any Underwritten Offering, the left lead book running manager of such Underwritten Offering.

 

“Other
Holder” has the meaning specified in Section 2.2(b).

 

“Person”
means any individual, corporation, company, voluntary association, partnership, joint venture, trust, limited liability company, unincorporated
organization, government or any agency, instrumentality or political subdivision thereof, or any other form of entity.

 

“Piggyback
Opt-Out Notice” has the meaning specified in Section 2.2(a) of this Agreement.

 

“Piggyback
Registration” has the meaning specified in Section 2.2(a) of this Agreement.

 

“Purchase
Agreements” has the meaning specified in the Recitals of this Agreement.

 

“Registrable
Securities” means, subject to Section 1.2 of this Agreement, (i) the shares of Common Stock issued pursuant to the Purchase
Agreements, and (ii) any shares of Common Stock issued as (or issuable upon the conversion, redemption or exercise of) any warrant, option,
right or other security that is issued as a dividend or other distribution with respect to, or in exchange for or in replacement of,
any such shares of Common Stock described in clause (i). The value of such Registrable Securities for purposes of determining whether
any threshold set forth in this Agreement shall be calculated by multiplying such number of shares of Registrable Securities by the average
of the closing price on each securities exchange or nationally recognized quotation system on which the Common Stock is then listed for
the ten (10) trading days preceding the date on which such value is being determined.

 

“Registration”
means any registration pursuant to this Agreement, including pursuant to a Shelf Registration Statement or a Piggyback Registration.

 

“Registration
Expenses” has the meaning specified in Section 2.5(a) of this Agreement.

 

“Resale
Opt-Out Notice” has the meaning specified in Section 2.1(c) of this Agreement.

 

“Securities
Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations of the Commission promulgated
thereunder.

 

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“Selling
Expenses” has the meaning specified in Section 2.5(a) of this Agreement.

 

“Selling
Holder” means a Holder who is selling Registrable Securities pursuant to a Registration.

 

“Shelf
Registration Statement” means a registration statement under the Securities Act to permit the public resale of the Registrable
Securities from time to time as permitted by Rule 415 of the Securities Act (or any similar provision then in force under the Securities
Act).

 

“Texas
Courts” has the meaning specified in Section 3.8(b) of this Agreement.

 

“Underwritten
Offering” means an offering (including an offering pursuant to a Shelf Registration Statement) in which Common Stock is sold
to an underwriter on a firm commitment basis for reoffering to the public or an offering that is a “bought deal” with one
or more investment banks.

 

“USEG”
has the meaning specified in the introductory paragraph of this Agreement.

 

“WKSI”
means a well-known seasoned issuer (as defined in Rule 405 under the Securities Act).

 

Section
1.2 Registrable Securities. Any Registrable Security will cease to be a Registrable Security at the earliest of the following:
(a) when a registration statement covering such Registrable Security has been declared effective by the Commission and such Registrable
Security has been sold or disposed of pursuant to such effective registration statement; (b) when such Registrable Security has been
disposed of pursuant to any section of Rule 144 (or any similar provision then in effect) under the Securities Act (“Rule 144”)
or any other exemption from the registration requirements of the Securities Act as a result of which the legend on any certificate or
book-entry notation representing such Registrable Security restricting transfer of such Registrable Security has been removed; (c) when
such Registrable Security is held by USEG or one of its subsidiaries; and (d) when such Registrable Security has been sold or disposed
of in a private transaction in which the transferor’s rights under this Agreement are not assigned to the transferee of such securities.

 

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ARTICLE
II

REGISTRATION RIGHTS

Section
2.1 Shelf Registration.

 

		(a)	Shelf
                                            Registration. USEG shall use its commercially reasonable efforts to prepare and file
                                            an initial Shelf Registration Statement under the Securities Act covering the resale of all
                                            of the Registrable Securities on or before the 30th day after the date of this
                                            Agreement. USEG shall use its commercially reasonable efforts to cause such initial Shelf
                                            Registration Statement to become effective no later than 60 days following the filing of
                                            the initial Shelf Registration Statement (or, in the event of a “full review”
                                            by the Commission, the 90th calendar day following the filing date thereof); provided,
                                            however that that in the event USEG is notified by the Commission that the initial Shelf
                                            Registration Statement will not be reviewed or is no longer subject to further review and
                                            comments, the effectiveness date as to such initial Registration Statement shall be the fifth
                                            Business Day following the date on which USEG is so notified if such date precedes the dates
                                            otherwise required above. USEG will use its commercially reasonable efforts to cause any
                                            Shelf Registration Statement filed pursuant to this Section 2.1(a) to be continuously
                                            effective under the Securities Act until the earliest of the date (i) all Registrable Securities
                                            covered by such Shelf Registration Statement have been distributed in the manner set forth
                                            and as contemplated in such Shelf Registration Statement, and (ii) there are no longer any
                                            Registrable Securities outstanding (the “Effectiveness Period”). A Shelf
                                            Registration Statement filed pursuant to this Section 2.1 shall be on Form S-3, except
                                            that if USEG is not then eligible for to register the resale of the Registrable Securities
                                            pursuant to Form S-3, it shall be filed on another appropriate form in accordance herewith.
                                            A Shelf Registration Statement when declared effective (including the documents incorporated
                                            therein by reference) will comply as to form in all material respects with all applicable
                                            requirements of the Securities Act and the Exchange Act and will not contain an untrue statement
                                            of a material fact or omit to state a material fact required to be stated therein or necessary
                                            to make the statements therein not misleading (in the case of any prospectus contained in
                                            such Shelf Registration Statement, in the light of the circumstances under which a statement
                                            is made). As soon as practicable following the date that a Shelf Registration Statement becomes
                                            effective, but in any event within five (5) Business Days of such date, USEG shall provide
                                            the Holders with written notice of the effectiveness of a Shelf Registration Statement. Notwithstanding
                                            anything to the contrary in this Section 2.1, no Holder shall be required to be named
                                            as an “underwriter” in a Shelf Registration Statement without such Holder’s
                                            express prior written consent. If the staff of the Commission requires the Company to name
                                            in a Shelf Registration Statement any Holder as an underwriter as defined in Section 2(a)(11)
                                            of the Securities Act, and such Holder does not consent thereto, then such Holder’s
                                            Registrable Securities shall not be included on such Shelf Registration Statement and the
                                            Company shall have no further obligations hereunder with respect to Registrable Securities
                                            held by such Holder with respect to that Shelf Registration Statement.

 

		(b)	Commission
                                            Cutback. Notwithstanding the registration obligations set forth in Section 2.1(a),
                                            if the Commission informs USEG that all of the Registrable Securities cannot, as a result
                                            of the application of Rule 415 of the Securities Act, be registered for resale as a secondary
                                            offering on a single registration statement, USEG agrees to promptly inform each of the Holders
                                            thereof and use its commercially reasonable efforts to file amendments to the applicable
                                            Shelf Registration Statement as required by the Commission, covering the maximum number of
                                            Registrable Securities permitted to be registered by the Commission; provided, however, that
                                            prior to filing such amendment, USEG shall be obligated to use diligent efforts to advocate
                                            with the Commission for the registration of all of the Registrable Securities in accordance
                                            with applicable Commission guidance, including without limitation, Compliance and Disclosure
                                            Interpretation 612.09. In the event that such an amendment is required, USEG shall subsequently
                                            file, as promptly as allowed by the Commission or any guidance provided by the Commission
                                            to USEG, one or more additional Shelf Registration Statements to register for resale those
                                            Registrable Securities that were not registered for resale on the initial Shelf Registration
                                            Statement, as amended. Such additional Shelf Registration Statements shall be filed on Form
                                            S-3 or such other form available to register for resale the Registrable Securities as a secondary
                                            offering as contemplated by Section 2.1(a). USEG shall cause each such additional
                                            Shelf Registration Statement to be continuously effective under the Securities Act during
                                            the Effectiveness Period.

 

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		(c)	Resale
                                            Registration Opt-Out. At least five (5) Business Days before the initial filing of any
                                            Shelf Registration Statement required by Section 2.1, USEG shall provide advance written
                                            notice to each Holder that it plans to file a Shelf Registration Statement. Any Holder may
                                            deliver advance written notice (a “Resale Opt-Out Notice”) to USEG requesting
                                            that such Holder not be included in a Shelf Registration Statement prior to its initial filing.
                                            Following receipt of a Resale Opt-Out Notice from a Holder, USEG shall not be required to
                                            include the Registrable Securities of such Holder in such Shelf Registration Statement.

 

(d)       Renewal.
If, by the third anniversary (the “Renewal Deadline”) of the initial effective date of a Shelf Registration Statement
filed pursuant to this Section 2.1, any of the Registrable Securities remain unsold by a Holder included on such Registration,
and the Shelf Registration Statement will expire by the Renewal Deadline in accordance with the then applicable rules of the Commission,
USEG shall file, if it has not already done so and is eligible to do so, a new Shelf Registration Statement covering the Registrable
Securities included on the prior Shelf Registration Statement and shall use its commercially reasonable efforts to cause such Shelf Registration
Statement to be declared effective within 60 days after the Renewal Deadline; and USEG shall take all other action necessary or appropriate
to permit the public offering and sale of the Registrable Securities to continue as contemplated in the expired Shelf Registration Statement.
References herein to Shelf Registration Statement shall include such new shelf registration statement.

 

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Section
2.2 Piggyback Registration.

 

		(a)	Participation.
                                            If at any time USEG proposes to file (i) at a time when USEG is not a WKSI, a registration
                                            statement and such Holder has not previously included its Registrable Securities in a Shelf
                                            Registration Statement contemplated by Section 2.1 of this Agreement that is currently
                                            effective, or (ii) a prospectus supplement to an effective “automatic shelf registration
                                            statement” (as defined in Rule 405 under the Securities Act), so long as USEG is a
                                            WKSI at such time or, whether or not USEG is a WKSI, so long as the Registrable Securities
                                            were previously included in the underlying Shelf Registration Statement or are included in
                                            an effective Shelf Registration Statement, or in any case in which Holders may participate
                                            in such offering without the filing of a post-effective amendment, in each case, for the
                                            sale of Common Stock in an Underwritten Offering for its own account and/or another Person,
                                            other than (a) a registration relating solely to employee benefit plans, (b) a registration
                                            relating solely to a Rule 145 transaction, or (c) a registration statement on any registration
                                            form which does not permit secondary sales, then USEG shall give not less than three (3)
                                            Business Days advance notice (including, but not limited to, notification by e-mail; such
                                            notice, a “Piggyback Notice”) of such proposed Underwritten Offering to
                                            each Holder, and such notice shall offer such Holder the opportunity to participate in any
                                            Underwritten Offering and to include in such Underwritten Offering such number of Registrable
                                            Securities (the “Included Registrable Securities”) as each such Holder
                                            may request in writing (a “Piggyback Registration”); provided, however,
                                            that if USEG has been advised by the Managing Underwriter that the inclusion of Registrable
                                            Securities for sale for the benefit of the Holders will have an adverse effect on the offering
                                            price, timing or probability of success of the distribution of the Common Stock in the Underwritten
                                            Offering, then the amount of Registrable Securities to be offered for the accounts of Holders
                                            shall be determined based on the provisions of Section 2.2(b). If USEG is not required
                                            to offer the opportunity for a Piggyback Registration in respect of a proposed Underwritten
                                            Offering as a result of the circumstance described in the immediately preceding sentence,
                                            then USEG shall nevertheless be required to furnish to such Holders the Piggyback Notice
                                            in respect of such proposed Underwritten Offering, which notice shall describe USEG’s
                                            intention to conduct an Underwritten Offering and, if the determination described in the
                                            immediately preceding sentence has been made at the time that the Piggyback Notice is required
                                            to be given by USEG, shall include notification that the Holders do not have the opportunity
                                            to include Registrable Securities in such Underwritten Offering because USEG has been advised
                                            by the Managing Underwriter that the inclusion of Registrable Securities for sale for the
                                            benefit of the Holders will have an adverse effect on the offering price, timing or probability
                                            of success of the distribution of the Common Stock in the Underwritten Offering. If the circumstance
                                            described in the immediately preceding sentence is made after the Piggyback Notice has been
                                            given, then USEG shall notify the Holders who were provided such Piggyback Notice (or if
                                            the two Business Day period referred to in the next sentence has lapsed, the Holders who
                                            have timely elected to include Registrable Securities in such offering) in writing of such
                                            circumstance and the aggregate number of Registrable Securities, if any, that can be included
                                            in such offering. Each Piggyback Notice shall be provided to Holders on a Business Day pursuant
                                            to Section 3.1 hereof and confirmation of receipt of such notice shall be requested
                                            in the notice. The Holder will have two Business Days after notice has been delivered to
                                            request in writing the inclusion of Registrable Securities in the Underwritten Offering.
                                            If no request for inclusion from a Holder is received within the specified time, such Holder
                                            shall have no further right to participate in such Piggyback Registration. If, at any time
                                            after giving written notice of its intention to undertake an Underwritten Offering and prior
                                            to the closing of such Underwritten Offering, USEG shall determine for any reason not to
                                            undertake or to delay such Underwritten Offering, USEG may, at its election, give written
                                            notice of such determination to the Selling Holders and, (x) in the case of a determination
                                            not to undertake such Underwritten Offering, shall be relieved of its obligation to sell
                                            any Included Registrable Securities in connection with such terminated Underwritten Offering,
                                            and (y) in the case of a determination to delay such Underwritten Offering, shall be permitted
                                            to delay offering any Included Registrable Securities for the same period as the delay in
                                            the Underwritten Offering. Any Selling Holder shall have the right to withdraw such Selling
                                            Holder’s request for inclusion of such Selling Holder’s Registrable Securities
                                            in such Underwritten Offering by giving written notice to USEG of such withdrawal up to and
                                            including the time of pricing of such offering. Any Holder may deliver written notice (a
                                            “Piggyback Opt-Out Notice”) to USEG requesting that such Holder not receive
                                            notice from USEG of any proposed Underwritten Offering; provided, however,
                                            that such Holder may later revoke any such Piggyback Opt-Out Notice in writing. Following
                                            receipt of a Piggyback Opt-Out Notice from a Holder (unless subsequently revoked), USEG shall
                                            not be required to deliver any notice to such Holder pursuant to this Section 2.2(a)
                                            and such Holder shall no longer be entitled to participate in Underwritten Offerings by USEG
                                            pursuant to this Section 2.2(a), unless such Piggyback Opt-Out Notice is revoked by
                                            such Holder.

 

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		(b)	Priority
                                            of Piggyback Registration. If the Managing Underwriter or Underwriters of any proposed
                                            Underwritten Offering of shares of Common Stock included in a Piggyback Registration advises
                                            USEG that the total shares of Common Stock which the Selling Holders and any other Persons
                                            intend to include in such offering exceeds the number which can be sold in such offering
                                            without being likely to have an adverse effect on the offering price, timing or probability
                                            of success of the distribution of the Common Stock offered or the market for the Common Stock,
                                            then the Piggyback Notice provided by USEG pursuant to Section 2.2(a) shall include
                                            notification of such determination or, if such determination is made after the Piggyback
                                            Notice has been given, then USEG shall furnish notice in writing (including by e-mail) to
                                            the Holders (or to those who have timely elected to participate in such Underwritten Offering),
                                            and the Common Stock to be included in such Underwritten Offering shall include the number
                                            of shares of Common Stock that such Managing Underwriter or Underwriters advises USEG can
                                            be sold without having such adverse effect, with such number to be allocated (i) if such
                                            Piggyback Registration was initiated by USEG, (A) first, to USEG, (B) second, pro rata among
                                            the Selling Holders and any other Persons who have been or after the date hereof are granted
                                            registration rights on parity with the registration rights granted under this Agreement (the
                                            “Other Holders”) who have requested participation in the Piggyback Registration
                                            (based, for each such Selling Holder or Other Holder, on the percentage derived by dividing
                                            (1) the number of shares of Common Stock proposed to be sold by such Selling Holder or such
                                            Other Holder in such offering; by (2) the aggregate number of shares of Common Stock proposed
                                            to be sold by all Selling Holders and all Other Holders in the Piggyback Registration), and
                                            (C) third, to any other holder of shares of Common Stock with registration rights that are
                                            subordinate to the rights of the Holders hereunder and (ii) if such Piggyback Registration
                                            was not initiated by USEG, (A) first, to the Persons initiating such Registration, (B) second,
                                            pro rata among the Selling Holders and any Other Holders who have requested participation
                                            in the Piggyback Registration (based, for each such Selling Holder or Other Holder, on the
                                            percentage derived by dividing (1) the number of shares of Common Stock proposed to be sold
                                            by such Selling Holder or such Other Holder in such offering; by (2) the aggregate number
                                            of shares of Common Stock proposed to be sold by all Selling Holders and all Other Holders
                                            in the Piggyback Registration other than the Persons initiating such Registration), and (C)
                                            third, to any other holder of shares of Common Stock with registration rights that are subordinate
                                            to the rights of the Holders hereunder.

 

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Section
2.3 Sale Procedures.

 

		(a)	General
                                            Procedures. In connection with any Underwritten Offering under Section 2.2 of
                                            this Agreement, USEG shall be entitled to select the Managing Underwriter or Underwriters.
                                            In connection with an Underwritten Offering contemplated by this Agreement in which a Selling
                                            Holder participates, each Selling Holder and USEG shall be obligated to enter into an underwriting
                                            agreement with the Managing Underwriter or Underwriters which contains such representations,
                                            covenants, indemnities and other rights and obligations as are customary in underwriting
                                            agreements for firm commitment offerings of equity securities. No Selling Holder may participate
                                            in such Underwritten Offering unless such Selling Holder agrees to sell its Registrable Securities
                                            on the basis provided in such underwriting agreement and completes and executes all questionnaires,
                                            powers of attorney, indemnities and other documents reasonably required under the terms of
                                            such underwriting agreement. Each Selling Holder may, at its option, require that any or
                                            all of the representations and warranties by, and the other agreements on the part of, USEG
                                            to and for the benefit of such underwriters also be made to and for such Selling Holder’s
                                            benefit and that any or all of the conditions precedent to the obligations of such underwriters
                                            under such underwriting agreement also be conditions precedent to its obligations. No Selling
                                            Holder shall be required to make any representations or warranties to or agreements with
                                            USEG or the underwriters other than representations, warranties or agreements regarding such
                                            Selling Holder’s ownership of the securities being registered on its behalf and its
                                            intended method of distribution and any other representation required by law. If any Selling
                                            Holder disapproves of the terms of an underwriting, such Selling Holder may elect to withdraw
                                            therefrom by notice to USEG and the Managing Underwriter; provided, however,
                                            that such withdrawal must be made at least one Business Day prior to the time of pricing
                                            of such Underwritten Offering to be effective. No such withdrawal or abandonment shall affect
                                            USEG’s obligation to pay Registration Expenses. Upon the receipt by USEG of a written
                                            request from the Holders of at least $25,000,000 of Registrable Securities that are participating
                                            in any Underwritten Offering contemplated by this Agreement, USEG’s management shall
                                            be required to participate in a roadshow or similar marketing effort in connection with any
                                            Underwritten Offering.

 

		(b)	In
                                            connection with its obligations under this Article II, USEG will, as expeditiously
                                            as possible:

 

		(i)	prepare
                                            and file with the Commission such amendments and supplements to the Shelf Registration Statements
                                            and the prospectus used in connection therewith as may be necessary to keep such Shelf Registration
                                            Statements effective for the Effectiveness Period and as may be necessary to comply with
                                            the provisions of the Securities Act with respect to the disposition of all Registrable Securities
                                            covered by a Shelf Registration Statement;

 

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		(ii)	if
                                            a prospectus supplement will be used in connection with the marketing of an Underwritten
                                            Offering from a Shelf Registration Statement and the Managing Underwriter at any time shall
                                            notify USEG in writing that, in the sole judgment of such Managing Underwriter, the inclusion
                                            of detailed information to be used in such prospectus supplement is of material importance
                                            to the success of the Underwritten Offering of such Registrable Securities, USEG shall use
                                            its commercially reasonable efforts to include such information in the prospectus supplement;

 

		(iii)	furnish
                                            to each Selling Holder (A) as far in advance as reasonably practicable before filing a Shelf
                                            Registration Statement or any other registration statement contemplated by this Agreement
                                            or any supplement or amendment thereto, upon request, copies of reasonably complete drafts
                                            of all such documents proposed to be filed (including exhibits and each document incorporated
                                            by reference therein to the extent then required by the rules and regulations of the Commission),
                                            and provide each such Selling Holder the opportunity to object to any information pertaining
                                            to such Selling Holder and its plan of distribution that is contained therein and make the
                                            corrections reasonably requested by such Selling Holder with respect to such information
                                            prior to filing such Shelf Registration Statement or such other registration statement and
                                            the prospectus included therein or any supplement or amendment thereto, and (B) such number
                                            of copies of such Shelf Registration Statement or such other registration statement and the
                                            prospectus included therein and any supplements and amendments thereto as such Persons may
                                            reasonably request in order to facilitate the public sale or other disposition of the Registrable
                                            Securities covered by such Shelf Registration Statement or other registration statement;

 

		(iv)	if
                                            applicable, use its commercially reasonable efforts to register or qualify the Registrable
                                            Securities covered by a Shelf Registration Statement or any other registration statement
                                            contemplated by this Agreement under the securities or blue sky laws of such jurisdictions
                                            as the Selling Holders or, in the case of an Underwritten Offering, the Managing Underwriter,
                                            shall reasonably request, provided that USEG will not be required to qualify generally
                                            to transact business in any jurisdiction where it is not then required to so qualify or to
                                            take any action which would subject it to general service of process in any such jurisdiction
                                            where it is not then so subject;

 

		(v)	promptly
                                            notify each Selling Holder when the Commission notifies USEG whether there will be a “review”
                                            of any registration statement filed pursuant to this Agreement and whether the Commission
                                            comments in writing on such registration statement;

 

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		(vi)	promptly
                                            notify each Selling Holder and each underwriter, at any time when a prospectus relating thereto
                                            is required to be delivered under the Securities Act, of (A) the filing of a Shelf Registration
                                            Statement or any other registration statement contemplated by this Agreement or any prospectus
                                            included therein or any amendment or supplement thereto (other than any amendment or supplement
                                            resulting from the filing of a document incorporated by reference therein), and, with respect
                                            to such Shelf Registration Statement or any other registration statement or any post-effective
                                            amendment thereto, when the same has become effective; and (B) the receipt of any written
                                            comments from the Commission with respect to any filing referred to in clause (A) and any
                                            written request by the Commission for amendments or supplements to such Shelf Registration
                                            Statement or any other registration statement or any prospectus or prospectus supplement
                                            thereto;

 

		(vii)	 immediately
                                            notify each Selling Holder and each underwriter, at any time when a prospectus relating thereto
                                            is required to be delivered under the Securities Act, of (A) the happening of any event as
                                            a result of which the prospectus contained in a Shelf Registration Statement or any other
                                            registration statement contemplated by this Agreement or any supplemental amendment thereto,
                                            includes an untrue statement of a material fact or omits to state any material fact required
                                            to be stated therein or necessary to make the statements therein not misleading in the light
                                            of the circumstances then existing; (B) the issuance or threat of issuance by the Commission
                                            of any stop order suspending the effectiveness of such Shelf Registration Statement or any
                                            other registration statement contemplated by this Agreement, or the initiation of any proceedings
                                            for that purpose; or (C) the receipt by USEG of any notification with respect to the suspension
                                            of the qualification of any Registrable Securities for sale under the applicable securities
                                            or blue sky laws of any jurisdiction (each of (A) through (C), a “Cease Sale Notification”).
                                            Following the provision of such notice, USEG agrees to as promptly as practicable amend or
                                            supplement the prospectus or prospectus supplement or take other appropriate action so that
                                            the prospectus or prospectus supplement does not include an untrue statement of a material
                                            fact or omit to state a material fact required to be stated therein or necessary to make
                                            the statements therein not misleading in the light of the circumstances then existing and
                                            to take such other action as is necessary to remove a stop order, suspension, threat thereof
                                            or proceedings related thereto;

 

		(viii)	 upon
                                            request and subject to appropriate confidentiality obligations, furnish to each Selling Holder
                                            copies of any and all transmittal letters or other correspondence with the Commission or
                                            any other governmental agency or self-regulatory body or other body having jurisdiction (including
                                            any domestic or foreign securities exchange) relating to such offering of Registrable Securities;

 

    	10 

     

    

 

		(ix)	in
                                            the case of an Underwritten Offering, furnish upon request, (A) an opinion of counsel for
                                            USEG, dated the effective date of the applicable registration statement or the date of any
                                            amendment or supplement thereto (other than any amendment or supplement resulting from the
                                            filing of a document incorporated by reference therein), preliminary or prospectus supplement,
                                            and a letter of like kind dated the date of the closing under the underwriting agreement,
                                            and (B) a “comfort” letter, dated the pricing date of such Underwritten Offering
                                            and a letter of like kind dated the date of the closing under the underwriting agreement,
                                            in each case, signed by the independent public accountants who have certified USEG’s
                                            financial statements included or incorporated by reference into the applicable registration
                                            statement, and each of the opinion and the “comfort” letter shall be in customary
                                            form and covering substantially the same matters with respect to such registration statement
                                            (and the prospectus included therein and any supplement thereto) and as are customarily covered
                                            in opinions of issuer’s counsel and in accountants’ letters delivered to the
                                            underwriters in underwritten offerings of securities, such other matters as such underwriters
                                            may reasonably request;

 

		(x)	otherwise
                                            use its commercially reasonable efforts to comply with all applicable rules and regulations
                                            of the Commission and make available to its security holders, as soon as reasonably practicable,
                                            an earnings statement covering the period of at least 12 months, but not more than 18 months,
                                            beginning with the first full calendar month after the effective date of such registration
                                            statement, which earnings statement shall satisfy the provisions of Section 11(a) of the
                                            Securities Act and Rule 158 promulgated thereunder;

 

		(xi)	make
                                            available to the appropriate representatives of the underwriters access to such information
                                            and USEG personnel as is reasonable and customary to enable such parties and their representatives
                                            to establish a due diligence defense under the Securities Act; provided that USEG
                                            need not disclose any non-public information to any such representative unless and until
                                            such representative has entered into a confidentiality agreement with USEG;

 

		(xii)	 cause
                                            all such Registrable Securities registered pursuant to this Agreement to be listed on each
                                            securities exchange or nationally recognized quotation system on which similar securities
                                            issued by USEG are then listed;

 

		(xiii)	 use
                                            its commercially reasonable efforts to cause the Registrable Securities to be registered
                                            with or approved by such other governmental agencies or authorities as may be necessary by
                                            virtue of the business and operations of USEG to enable the Selling Holders to consummate
                                            the disposition of such Registrable Securities;

 

		(xiv)	 shall
                                            use its best efforts to maintain eligibility for use of Form S-3 (or any successor form thereto)
                                            for the registration of the resale of Registrable Securities;

 

		(xv)	 provide
                                            a transfer agent and registrar for all Registrable Securities covered by such registration
                                            statement; and

 

		(xvi)	 enter
                                            into customary agreements and take such other actions as are reasonably requested by the
                                            Selling Holders or the underwriters, if any, in order to expedite or facilitate the disposition
                                            of such Registrable Securities.

 

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		(c)	Each
                                            Selling Holder, upon receipt of notice from USEG of the happening of any event of the kind
                                            described in Section 2.3(b)(vi), shall forthwith discontinue disposition of the Registrable
                                            Securities until such Selling Holder’s receipt of the copies of the supplemented or
                                            amended prospectus contemplated by Section 2.3(b)(vi) or until it is advised in writing
                                            by USEG that the use of the prospectus may be resumed, and has received copies of any additional
                                            or supplemental filings incorporated by reference in the prospectus, and, if so directed
                                            by USEG, such Selling Holder will, or will request the Managing Underwriter or underwriters,
                                            if any, to deliver to USEG (at USEG’s expense) all copies in their possession or control,
                                            other than permanent file copies then in such Selling Holder’s possession, of the prospectus
                                            and any prospectus supplement covering such Registrable Securities current at the time of
                                            receipt of such notice.

 

Section
2.4 Cooperation by Holders. USEG shall have no obligation to include Registrable Securities of a Holder in a Shelf Registration
Statement or in an Underwritten Offering under Article II of this Agreement if such Selling Holder has failed to timely furnish
such information which, in the opinion of counsel to USEG, is reasonably required in order for the registration statement or prospectus
supplement, as applicable, to comply with the Securities Act.

 

Section
2.5 Prospectus Delivery Requirement. Each Seller Holder understands that the Securities Act may require delivery of a
prospectus relating to the Registrable Securities in connection with any sale thereof pursuant to a registration statement under the
Securities Act covering the resale by such Seller Holder of the Registrable Securities being sold, and each Seller Holder shall
comply with the applicable prospectus delivery requirements of the Securities Act in connection with any such sale.

 

Section
2.6 Expenses.

 

		(a)	Certain
                                            Definitions. “Registration Expenses” means all expenses incident to
                                            USEG’s performance under or compliance with this Agreement to effect the registration
                                            of Registrable Securities in a Shelf Registration Statement pursuant to Section 2.1,
                                            a Piggyback Registration pursuant to Section 2.2 or an Underwritten Offering pursuant
                                            to Section 2.2 and the disposition of such securities, including, without limitation,
                                            all registration, filing, securities exchange listing and fees, all registration, filing,
                                            qualification and other fees and expenses of complying with securities or blue sky laws,
                                            fees of the Financial Industry Regulatory Authority, transfer taxes and fees of transfer
                                            agents and registrars, all word processing, duplicating and printing expenses, all roadshow
                                            expenses borne by it and the fees and disbursements of counsel and independent public accountants
                                            for USEG, including the expenses of any special audits or “comfort” letters required
                                            by or incident to such performance and compliance. Except as otherwise provided in Section
                                            2.6 hereof, USEG shall not be responsible for legal fees incurred by Holders in connection
                                            with the exercise of such Holders’ rights hereunder. In addition, USEG shall not be
                                            responsible for any “Selling Expenses,” which means all underwriting fees,
                                            discounts and selling commissions, transfer taxes and fees of counsel allocable to the sale
                                            of the Registrable Securities.

 

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		(b)	Expenses.
                                            USEG will pay all reasonable Registration Expenses in connection with a Shelf Registration
                                            Statement, a Piggyback Registration or Underwritten Offering, whether or not any sale is
                                            made pursuant to such Shelf Registration Statement, Piggyback Registration or Underwritten
                                            Offering. Each Selling Holder shall pay its pro rata share of all Selling Expenses in connection
                                            with any sale of its Registrable Securities hereunder.

 

Section
2.7 Indemnification.

 

		(a)	By
                                            USEG. In the event of a registration of any Registrable Securities under the Securities
                                            Act pursuant to this Agreement, USEG will indemnify and hold harmless each Selling Holder
                                            thereunder, its directors, officers, employees, agents and managers, and each underwriter,
                                            pursuant to the applicable underwriting agreement with such underwriter, of Registrable Securities
                                            thereunder and each Person, if any, who controls such Selling Holder or underwriter within
                                            the meaning of the Securities Act and the Exchange Act, and its directors, officers, employees,
                                            agents and managers, against any losses, claims, damages, expenses or liabilities (including
                                            reasonable attorneys’ fees and expenses) (collectively, “Losses”),
                                            joint or several, to which such Selling Holder or underwriter or controlling Person or directors,
                                            officers, employees, agents or managers may become subject under the Securities Act, the
                                            Exchange Act or otherwise, insofar as such Losses (or actions or proceedings, whether commenced
                                            or threatened, in respect thereof) arise out of or are based upon any untrue statement or
                                            alleged untrue statement of any material fact (in the case of any prospectus, in light of
                                            the circumstances under which such statement is made) contained in a Shelf Registration Statement
                                            or any other registration statement contemplated by this Agreement, any preliminary prospectus
                                            or final prospectus contained therein, or any free writing prospectus related thereto, or
                                            any amendment or supplement thereof, or arise out of or are based upon the omission or alleged
                                            omission to state therein a material fact required to be stated therein or necessary to make
                                            the statements therein (in the case of a prospectus, in light of the circumstances under
                                            which they were made) not misleading, and will reimburse each such Selling Holder, its directors
                                            and officers, each such underwriter and each such controlling Person and each such director,
                                            officer, employee, agent or manager for any legal or other expenses reasonably incurred by
                                            them in connection with investigating or defending any such Loss or actions or proceedings;
                                            provided, however, that USEG will not be liable in any such case if and to
                                            the extent that any such Loss arises out of or is based upon an untrue statement or alleged
                                            untrue statement or omission or alleged omission so made in conformity with information furnished
                                            by such Selling Holder, such underwriter or such controlling Person in writing specifically
                                            for use in a Shelf Registration Statement or such other registration statement, or prospectus
                                            supplement, as applicable. Such indemnity shall remain in full force and effect regardless
                                            of any investigation made by or on behalf of such Selling Holder or any such director, officer,
                                            employee, agent, manager or controlling Person, and shall survive the transfer of such securities
                                            by such Selling Holder.

 

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		(b)	By
                                            Each Selling Holder. Each Selling Holder agrees severally and not jointly to indemnify
                                            and hold harmless USEG, its directors, officers, employees and agents and each Person, if
                                            any, who controls USEG within the meaning of the Securities Act or of the Exchange Act to
                                            the same extent as the foregoing indemnity from USEG to the Selling Holders, but only with
                                            respect to (i) information regarding such Selling Holder furnished in writing by or on behalf
                                            of such Selling Holder expressly for inclusion in a Shelf Registration Statement, any other
                                            registration statement contemplated by this Agreement or prospectus supplement relating to
                                            the Registrable Securities, or any amendment or supplement thereto; (ii) such Selling Holder’s
                                            sale of Registrable Securities after receipt of any Cease Sale Notification, and prior to
                                            the Company withdrawing such Cease Sale Notification; and (iii) such Selling Holder’s
                                            failure to comply with any applicable prospectus delivery requirements of the Securities
                                            Act, through no fault of the Company; provided, however, that the liability
                                            of each Selling Holder shall not be greater in amount than the dollar amount of the proceeds
                                            (net of any Selling Expenses) received by such Selling Holder from the sale of the Registrable
                                            Securities giving rise to such indemnification less the amount of any damages that such Selling
                                            Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement
                                            or omission or alleged omission.

 

		(c)	Notice.
                                            Promptly after receipt by an indemnified party hereunder of notice of the commencement of
                                            any action, such indemnified party shall, if a claim in respect thereof is to be made against
                                            the indemnifying party hereunder, notify the indemnifying party in writing thereof, but the
                                            omission so to notify the indemnifying party shall not relieve it from any liability which
                                            it may have to any indemnified party other than under this Section 2.6(c) except to
                                            the extent that the indemnifying party is materially prejudiced by such failure. In any action
                                            brought against any indemnified party, it shall notify the indemnifying party of the commencement
                                            thereof. The indemnifying party shall be entitled to participate in and, to the extent it
                                            shall wish, to assume and undertake the defense thereof with counsel reasonably satisfactory
                                            to such indemnified party and, after notice from the indemnifying party to such indemnified
                                            party of its election so to assume and undertake the defense thereof, the indemnifying party
                                            shall not be liable to such indemnified party under this Section 2.6 for any legal
                                            expenses subsequently incurred by such indemnified party in connection with the defense thereof
                                            other than reasonable costs of investigation and of liaison with counsel so selected; provided,
                                            however, that, (i) if the indemnifying party has failed to assume the defense and
                                            employ counsel reasonably satisfactory to the indemnified party or (ii) if the defendants
                                            in any such action include both the indemnified party and the indemnifying party and counsel
                                            to the indemnified party shall have concluded that there may be reasonable defenses available
                                            to the indemnified party that are different from or additional to those available to the
                                            indemnifying party, or if the interests of the indemnified party reasonably may be deemed
                                            to conflict with the interests of the indemnifying party or representation by both parties
                                            by the same counsel is otherwise inappropriate under the applicable standards of professional
                                            conduct, then the indemnified party shall have the right to select a separate counsel and
                                            to assume such legal defense and otherwise to participate in the defense of such action,
                                            with the reasonable expenses and fees of such separate counsel and other reasonable expenses
                                            related to such participation to be reimbursed by the indemnifying party as incurred. Notwithstanding
                                            any other provision of this Agreement, the indemnifying party shall not settle any indemnified
                                            claim without the consent of the indemnified party, unless the settlement thereof imposes
                                            no liability or obligation on, includes a complete release from liability of, and does not
                                            contain any admission of wrong doing by, the indemnified party.

 

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		(d)	Contribution.
                                            If the indemnification provided for in this Section 2.6 is held by a court or government
                                            agency of competent jurisdiction to be unavailable to USEG or any Selling Holder or is insufficient
                                            to hold them harmless in respect of any Losses, then each such indemnifying party, in lieu
                                            of indemnifying such indemnified party, shall contribute to the amount paid or payable by
                                            such indemnified party as a result of such Losses in such proportion as is appropriate to
                                            reflect the relative fault of USEG on the one hand and of such Selling Holder on the other
                                            in connection with the statements or omissions which resulted in such Losses, as well as
                                            any other relevant equitable considerations; provided, however, that in no
                                            event shall such Selling Holder be required to contribute an aggregate amount in excess of
                                            the dollar amount of proceeds (net of Selling Expenses) received by such Selling Holder from
                                            the sale of Registrable Securities giving rise to such indemnification less the amount of
                                            any damages that such Selling Holder has otherwise been required to pay by reason of such
                                            untrue or alleged untrue statement or omission or alleged omission. The relative fault of
                                            USEG on the one hand and each Selling Holder on the other shall be determined by reference
                                            to, among other things, whether the untrue or alleged untrue statement of a material fact
                                            or the omission or alleged omission to state a material fact has been made by, or relates
                                            to, information supplied by such party, and the parties’ relative intent, knowledge,
                                            access to information and opportunity to correct or prevent such statement or omission. The
                                            parties hereto agree that it would not be just and equitable if contributions pursuant to
                                            this paragraph were to be determined by pro rata allocation or by any other method of allocation
                                            which does not take account of the equitable considerations referred to in the first sentence
                                            of this paragraph. The amount paid by an indemnified party as a result of the Losses referred
                                            to in the first sentence of this paragraph shall be deemed to include any legal and other
                                            expenses reasonably incurred by such indemnified party in connection with investigating or
                                            defending any Loss which is the subject of this paragraph. No person guilty of fraudulent
                                            misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled
                                            to contribution from any Person who is not guilty of such fraudulent misrepresentation.

 

		(e)	Other
                                            Indemnification. The provisions of this Section 2.6 shall be in addition to any
                                            other rights to indemnification or contribution which an indemnified party may have pursuant
                                            to law, equity, contract or otherwise.

 

Section
2.8 Rule 144 Reporting. With a view to making available the benefits of certain rules and regulations of the Commission that may
permit the sale of the Registrable Securities to the public without registration, USEG agrees to use its commercially reasonable efforts
to:

 

		(a)	Make
                                            and keep public information regarding USEG available, as those terms are understood and defined
                                            in Rule 144, at all times from and after the date hereof;

 

    	15 

     

    

 

		(b)	File
                                            with the Commission in a timely manner all reports and other documents required of USEG under
                                            the Securities Act and the Exchange Act at all times from and after the date hereof;

 

		(c)	So
                                            long as a Holder, together with its Affiliates, owns any Registrable Securities, (i) unless
                                            otherwise available at no charge by access electronically to the Commission’s EDGAR
                                            filing system (or any successor system), furnish to such Holder forthwith upon request a
                                            copy of the most recent annual or quarterly report of USEG, and such other reports and documents
                                            so filed as such Holder may reasonably request in availing itself of any rule or regulation
                                            of the Commission allowing such Holder to sell any such securities without registration and
                                            (ii) to the extent accurate, furnish to such Holder upon reasonable request a written statement
                                            of USEG that it has complied with the reporting requirements of Rule 144; and

 

		(d)	Provide
                                            opinion(s) of counsel as may be reasonably necessary in order for a Holder to avail itself
                                            of Rule 144 to allow such Holder to sell any Registrable Securities without registration,
                                            and remove, or cause to be removed, the notation of any restrictive legend on such Holder’s
                                            book-entry account maintained by USEG’s transfer agent, and bear all costs associated
                                            with the removal of such legend in USEG’s books.

 

Section
2.9 Transfer or Assignment of Registration Rights. The rights to cause USEG to register Registrable Securities granted to the
Holders under this Article II may be transferred or assigned by each Holder to one or more transferee(s) or assignee(s) of such
Registrable Securities, or securities convertible, redeemable or exchangeable for Registrable Securities, who assume in writing responsibility
for the obligations of such Holder under this Agreement with respect to the securities so transferred. USEG shall be given written notice
prior to any said transfer or assignment, stating the name and address of each such transferee and identifying the securities with respect
to which such registration rights are being transferred or assigned.

 

ARTICLE
III

MISCELLANEOUS

 

Section
3.1 Communications. All notices and demands provided for hereunder shall be in writing and shall be given by registered or certified
mail, return receipt requested, e-mail, air courier guaranteeing overnight delivery or personal delivery to the following addresses:

 

		(a)	If
                                            to a Holder, to such addresses indicated on Schedule A attached hereto.

 

		(b)	If
                                            to USEG:

 

U.S.
Energy Corporation

675 Bering, Suite 390

Houston, Texas 77057

Attention: Ryan Smith

E-mail: ryan@usnrg.com

 

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with
a copy (which shall not constitute notice) to:

 

The
Loev Law Firm, PC

6300 West Loop South, Suite 280

Bellaire, Texas 77401

Attention: David Loev

E-mail: dloev@loevlaw.com

 

or,
if to a transferee of a Holder, to the transferee at the address provided pursuant to Section 2.8 above. All notices and communications
shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; upon actual receipt if sent by certified
or registered mail, return receipt requested, or regular mail, if mailed; upon actual receipt of the e-mail, if sent via e-mail; and
upon actual receipt when delivered to an air courier guaranteeing overnight delivery.

 

Section
3.2 Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each
of the parties, including subsequent Holders of Registrable Securities to the extent permitted herein.

 

Section
3.3 Assignment of Rights. All or any portion of the rights and obligations of any Holder under this Agreement may be transferred
or assigned by such Holder in accordance with Section 2.8 hereof.

 

Section
3.4 Recapitalization (Exchanges, etc. Affecting the Registrable Securities). The provisions of this Agreement shall apply to the
full extent set forth herein with respect to any and all shares of capital stock of USEG or any successor or assign of USEG (whether
by merger, consolidation, sale of assets or otherwise) which may be issued in respect of, in exchange for or in substitution of, the
Registrable Securities, and shall be appropriately adjusted for combinations, recapitalizations and the like occurring after the date
of this Agreement.

 

Section
3.5 Specific Performance. Damages in the event of breach of this Agreement by a party hereto would be difficult, if not impossible,
to ascertain, and it is therefore agreed that each such Person, in addition to and without limiting any other remedy or right it may
have, will have the right to an injunction or other equitable relief in any court of competent jurisdiction, enjoining any such breach,
and enforcing specifically the terms and provisions hereof, and each of the parties hereto hereby waives (a) any and all defenses it
may have on the ground of lack of jurisdiction or competence of the court to grant such an injunction or other equitable relief or that
a remedy at law would be adequate and (b) any requirement under any law to post securities as a prerequisite to obtaining equitable relief.
The existence of this right will not preclude any such Person from pursuing any other rights and remedies at law or in equity which such
Person may have.

 

Section
3.6 Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts,
each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together,
shall constitute but one and the same Agreement.

 

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Section
3.7 Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

 

Section
3.8 Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. 

 

		(a)	This
                                            Agreement, and all claims or causes of action (whether in contract, tort or otherwise) that
                                            may be based upon, arise out of or relating to this Agreement or the negotiation, execution
                                            or performance of this Agreement (including any claim or cause of action based upon, arising
                                            out of or related to any representation or warranty made in or in connection with this Agreement
                                            or as an inducement to enter into this Agreement) shall be governed by and construed in accordance
                                            with the internal laws of the State of Texas, without regard to any choice-of-law or conflicts
                                            of law provision or rule (whether of the State of Texas or any other jurisdiction) that would
                                            cause the application of the laws of any jurisdiction other than the State of Texas.

 

		(b)	Each
                                            of the Parties hereby irrevocably and unconditionally (i) submits, for itself and its property,
                                            to the exclusive jurisdiction and venue of any federal court or state court sitting in Houston,
                                            Texas) (the “Texas Courts”), and any appellate court from any decision
                                            thereof, in any action arising out of or relating to this Agreement, including the negotiation,
                                            execution or performance of this Agreement and agrees that all claims in respect of any such
                                            action shall be heard and determined in the Texas Courts, (ii) waives, to the fullest extent
                                            it may legally and effectively do so, any objection which it may now or hereafter have to
                                            the laying of venue of any action arising out of or relating to this Agreement or the negotiation,
                                            execution or performance of this Agreement in the Texas Courts, including any objection based
                                            on its place of incorporation or domicile, (iii) waives, to the fullest extent permitted
                                            by law, the defense of an inconvenient forum to the maintenance of such action in any such
                                            court and (iv) agrees that a final judgment in any such action shall be conclusive and may
                                            be enforced in other jurisdictions by suit on the judgment or in any other manner provided
                                            by law.

 

		(c)	EACH
                                            OF THE PARTIES ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY BE BASED UPON, ARISE
                                            OUT OF OR RELATED TO THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES
                                            AND, THEREFORE, EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH
                                            PARTY MAY HAVE TO A TRIAL BY JURY FOR ANY DISPUTE BASED UPON, ARISING OUT OF OR RELATING
                                            TO THIS AGREEMENT OR THE BREACH, TERMINATION OR VALIDITY HEREOF OR ANY TRANSACTIONS CONTEMPLATED
                                            BY THIS AGREEMENT. EACH OF THE PARTIES CERTIFIES AND ACKNOWLEDGES THAT (I) NEITHER THE OTHER
                                            PARTIES NOR THEIR RESPECTIVE REPRESENTATIVES, AGENTS OR ATTORNEYS HAVE REPRESENTED, EXPRESSLY
                                            OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
                                            THE FOREGOING WAIVER, (II) EACH OF THE PARTIES UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS
                                            OF THIS WAIVER, (III) EACH OF THE PARTIES MAKES THIS WAIVER VOLUNTARILY AND (IV) EACH OF
                                            THE PARTIES HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
                                            WAIVERS AND CERTIFICATIONS OF THIS SECTION 3.8(c). ANY PARTY MAY FILE AN ORIGINAL
                                            COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT
                                            OF THE PARTIES TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

 

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Section
3.9 Severability of Provisions. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof or affecting or impairing the validity or enforceability of such provision in any other jurisdiction.

 

Section
3.10 Entire Agreement. This Agreement and the Purchase Agreements are intended by the parties as a final expression of their agreement
and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject
matter contained herein or therein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred
to herein or therein with respect to the rights granted by USEG set forth herein or therein. This Agreement and the Purchase Agreements
supersede all prior agreements and understandings between the parties with respect to such subject matter.

 

Section
3.11 Term; Amendment. This Agreement shall automatically terminate and be of no further force and effect on the date on which
there are no Registrable Securities. This Agreement may be amended only by means of a written amendment signed by USEG and the Holders
of a majority of the then outstanding Registrable Securities; provided, however, that no such amendment shall materially
and adversely affect the rights of any Holder hereunder without the consent of such Holder.

 

Section
3.12 No Presumption. In the event any claim is made by a party relating to any conflict, omission, or ambiguity in this Agreement,
no presumption or burden of proof or persuasion shall be implied by virtue of the fact that this Agreement was prepared by or at the
request of a particular party or its counsel.

 

Section
3.13 Obligations Limited to Parties to Agreement. Each of the parties hereto covenants, agrees and acknowledges that no Person
other than the Selling Holders, their respective permitted assignees and USEG shall have any obligation hereunder and that, notwithstanding
that one or more of USEG and the Holders may be a corporation, partnership or limited liability company, no recourse under this Agreement
or under any documents or instruments delivered in connection herewith or therewith shall be had against any former, current or future
director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of USEG, the Selling
Holders or their respective permitted assignees, or any former, current or future director, officer, employee, agent, general or limited
partner, manager, member, stockholder or Affiliate of any of the foregoing, whether by the enforcement of any assessment or by any legal
or equitable proceeding, or by virtue of any applicable law, it being expressly agreed and acknowledged that no personal liability whatsoever
shall attach to, be imposed on or otherwise by incurred by any former, current or future director, officer, employee, agent, general
or limited partner, manager, member, stockholder or Affiliate of any of USEG, the Selling Holders or any of their respective assignees,
or any former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate
of any of the foregoing, as such, for any obligations of USEG, the Selling Holders or their respective permitted assignees under this
Agreement or any documents or instruments delivered in connection herewith or therewith or for any claim based on, in respect of or by
reason of such obligation or its creation, except in each case for any assignee of a Selling Holder hereunder.

 

    	19 

     

    

 

Section
3.14 Independent Nature of Holder’s Obligations.The obligations of each Holder under this Agreement are several and not
joint with the obligations of any other Holder, and no Holder shall be responsible in any way for the performance of the obligations
of any other Holder under this Agreement. Nothing contained herein, and no action taken by any Holder pursuant thereto, shall be
deemed to constitute the Holders as a partnership, an association, a joint venture or any other kind of group or entity, or create a
presumption that the Holders are in any way acting in concert or as a group with respect to such obligations or the transactions
contemplated by this Agreement. Each Holder shall be entitled to independently protect and enforce its rights, including without
limitation, the rights arising out of this Agreement, and it shall not be necessary for any other Holder to be joined as an
additional party in any proceeding for such purpose.

 

Section
3.15 Interpretation. Article and Section references in this Agreement are references to the corresponding Article and Section
to this Agreement, unless otherwise specified. All references to instruments, documents, contracts and agreements are references to such
instruments, documents, contracts and agreements as the same may be amended, supplemented and otherwise modified from time to time, unless
otherwise specified. The word “including” shall mean “including but not limited to.” Whenever any determination,
consent or approval is to be made or given by a Holder under this Agreement, such action shall be in such Holder’s sole discretion
unless otherwise specified.

 

Section
3.16 No Inconsistent Agreements; Additional Rights. If USEG hereafter enters into a registration rights agreement with a third
party with terms more favorable than those set forth herein with respect to Holders of shares of Common Stock, this Agreement shall,
to the extent so requested by any such Holders, be amended so as to provide such Holders with substantially the same material terms as
provided to such other third party.

 

[Signature
Pages Follow]

 

    	20 

     

    

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

 

	 	USEG:
	 	 
	 	U.S. ENERGY CORPORATION
	 		                   
	 	By:	 /s/ Ryan Smith 
	 	Name:	Ryan Smith
	 	Title:	CEO

 

[Signatures
continue on following page.]

 

    	21 

     

    

 

	 	HOLDERS:
	 	 
	 	BANNER OIL & GAS, LLC
	 	 
	 	By:	 /s/ Joshua L. Batchelor 
	 	Name:	Joshua L. Batchelor
	 	Title:	Manager
	 	 
	 	WOODFORD PETROLEUM, LLC
	 	 
	 	By:	 /s/ Joshua L. Batchelor 
	 	Name:	Joshua L. Batchelor
	 	Title:	Manager
	 	 
	 	LLANO ENERGY LLC
	 	 
	 	By:	 /s/ Joshua L. Batchelor 
	 	Name:	Joshua L. Batchelor
	 	Title:	Manager

 

[Signatures
continue on following page.]

 

    	22 

     

    

 

	 	Lubbock Energy Partners LLC
	 	 
	 	By:	 /s/ John Weinzierl 
	 	Name:	John Weinzierl
	 	Title:	CEO

 

[Signatures
continue on following page.]

 

    	23 

     

    

 

	 	SYNERGY OFFSHORE LLC
	 	 
	 	By:	 /s/ Duane King 
	 	Name:	Duane King
	 	Title:	Chief Executive Officer

 

[End
Signature Pages]

 

    	24 

     

    

 

Schedule
A

 

	Name
    of Holder	Address
    of Holder
	Banner
                                            Oil & Gas, LLC

     

    Woodford
    Petroleum, LLC

     

    Llano
    Energy LLC

     
	c/o
                                            Sage Road Capital, LLC

    2121
    Sage Road, Suite 325

    Houston,
    TX 77056

    Attention:
    Benjamin A. Stamets

    Email:
    ben@sagerc.com

     

    With
    a copy, which shall not constitute notice to:

     

    Porter
    Hedges LLP

    1000
    Main Street, 36th Floor

    Houston,
    Texas 77002

    Attn:
    Jeremy Mouton

    Email:
    jmouton@porterhedges.com

     

    

	Lubbock
                                            Energy Partners LLC

     
	Lubbock
                                            Energy Partners LLC

    Attn:
    John Weinzierl

    1616
    S. Voss Rd. #530

    Houston,
    Texas 77057

    Email:
    johnw@katlacapital.com

     

    With
    a copy, which shall not constitute notice to:

     

    Nance
    & Simpson, LLP

    Attn:
    Glynn Nance

    2603
    Augusta, Suite 1000

    Houston,
    Texas 77057

    Email:
    gnance@nancesimpson.com

     

	Synergy
                                            Offshore LLC

     
	Synergy
                                            Offshore LLC

    Attn:
    Duane H. King

    9821
    Katy Fwy, Suite 805

    Houston,
    Texas 77024

    Email:
    dking@synergyog.com

     

    With
    a copy, which shall not constitute notice to:

     

    Crain,
    Caton and James

    Attn:
    Adrienne Randle Bond

    Five
    Houston Center

    1401
    McKinney St., Suite 1700

    Houston,
    Texas 77010

    Email:
    abond@craincaton.com

     

 

Schedule
AExhibit
10.2

 

NOMINATING
AND VOTING AGREEMENT

 

This
Nominating and Voting Agreement (this “Agreement”), is made and entered into as of January 5, 2022, by and
among U.S. Energy Corp., a Wyoming corporation (the “Company”); Lubbock Energy Partners LLC, a Texas limited
liability company (“Lubbock”); Synergy Offshore LLC, a Texas limited liability company (“Synergy”);
and Banner Oil & Gas, LLC, a Delaware limited liability company (“Banner”),
Woodford Petroleum, LLC, a Delaware limited liability company (“Woodford”), and Llano Energy LLC,
a Delaware limited liability company (“Llano”, and together with Banner and Woodford, collectively, the “Sage
Road Entities”), each a “Party” and collectively, the “Parties”. Lubbock,
Synergy and the Sage Road Entities are each referred to as a “Seller Party” and collectively referred to as
the “Seller Parties”.

 

A.
Each of Lubbock, Synergy and the Sage Road Entities has entered into a separate Purchase and Sale Agreement with the Company (collectively
the “Purchase and Sale Agreements”), pursuant to which such Seller Party will sell upon the closing thereof
certain of their assets in exchange for shares of the Company’s common stock, par value $0.01 per share (“Common Stock”)
and cash.

 

B.
As a condition to the consummation of the transactions contemplated by the Purchase and Sale Agreements and the issuance of such shares
of Common Stock to the Seller Parties, the Parties have agreed to enter into this Agreement.

 

C.
Upon the consummation of the transactions contemplated by the Purchase and Sale Agreements, Lubbock will own 6,568,828 shares of Common
Stock, representing 26.7% of the voting shares of the Company, Synergy will own 6,546,384 shares of Common Stock, representing 26.6%
of the voting shares of the Company, and the Sage Road Entities will own 6,790,524 shares of Common Stock, representing 27.6% of the
voting shares of the Company, and the Parties desire to enter into this Agreement with respect to the nomination of certain persons to
the Board and each Seller Party’s voting of its Common Stock in favor of such nominees, on the terms and subject to the conditions
set forth herein.

 

NOW,
THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements contained in this Agreement, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound
hereby, the Parties agree as follows:

 

1.
Definitions. The defined terms in the introductory paragraphs, the defined terms set forth below, and the defined terms in the
remainder of this Agreement each has the meaning so given to it whenever used throughout this Agreement; provided, however, that
each capitalized term used herein but not defined herein has the meaning given to it in the Purchase and Sale Agreements.

 

    	Nominating and Voting Agreement
	Page 1 of 14

    	 

    

 

1.1.
“Affiliate” of a specified Person means any other Person that (at the time when the determination is made)
directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such specified
Person. As used in the foregoing sentence, the term “control” (including, with correlative meaning, the terms
“controlling,” “controlled by” and “under common control with”)
means, with respect to a specified Person, the power to direct the management and/or the policies of a Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise. Additionally, any shareholder, member or owner of a Seller
Party to whom Common Stock may be distributed by such Seller Party, for so long as such Person is a shareholder, member or owner of such
Seller Party, will be deemed an Affiliate of such Seller Party for the purposes hereof.

 

1.2.
“Board” means the Board of Directors of the Company.

 

1.3.
“Board Appointee” means, as applicable, (a) a person designed for nomination to the Board by a Nominating Seller
Party pursuant to its Board Appointment Right or (b) a person designed for nomination to the Board by the Non-Seller Appointed Directors.

 

1.4.
“Board Appointment Notice” means notice of a proposed Election Meeting or Consent to appoint members of the
Board.

 

1.5.
“Board Appointment Right” means the right of a Nominating Seller Party to designate a nominee for election
or appointment to the Board as set forth in this Agreement.

 

1.6.
“Company Nominated Person” means a person designed by the Non-Seller Appointed Directors for nomination to
the Board.

 

1.7.
“Nominating Seller Party” means a Seller Party that, together with its Affiliates, holds at least five percent
(5%) of the Company’s outstanding Common Stock at the time when the determination is made.

 

1.8.
“Non-Nominating Seller Party” means a Seller Party which, together with its Affiliates, fails to hold at least
five percent (5%) of the Company’s outstanding Common Stock as of any date following the Effective Date.

 

1.9.
“Non-Seller Appointed Directors” means the members of the Board who were not nominated by the Sellers as set
forth herein.

 

1.10.
“Organizational Documents” means Company’s certificate of incorporation and bylaws as then in effect.

 

1.11.
“Person” means any natural person, corporation, general partnership, limited partnership, limited liability
company, limited liability partnership, proprietorship, business or statutory trust, trust, union, association, instrumentality, governmental
authority or other entity, enterprise, authority, unincorporated organization or business organization.

 

    	Nominating and Voting Agreement
	Page 2 of 14

    	 

    

 

2.
Effective Date; Initial Board Composition.

 

2.1.
This Agreement shall become effective on the Closing Date (the “Effective Date”).

 

2.2.
As of the Effective Date, the Company shall have taken any and all necessary action to (a) increase the number of directors on the Board
from five (5) to seven (7), (b) cause the resignation or removal of a member from the Board and (c) cause to be appointed to the Board
one (1) Board Appointee by each Nominating Seller Party, with the result that, as of the Effective Date, the Board shall be comprised
of: (i) one (1) Board Appointee designated by each Nominating Seller Party and (ii) the following Non-Seller Appointed Directors: D.
Stephen Slack, James W. Denny III, Randall D. Keys and Ryan Smith.

 

3.
Nominating Provisions.

 

3.1.
Nominating Rights.

 

(A)
With respect to any general meeting of the shareholders of the Company (the “Shareholders”) or pursuant
to any consent to action without meeting of the Shareholders, in each case at which the election of directors is to be voted on (each,
an “Election Meeting or Consent”) (a) each Nominating Seller Party shall have the right to designate for nomination
to the Board one or two Board Appointees in accordance with Section 3.1(B) below (each such designated person, a “Seller
Nominated Person”) and (b) the Company shall take any and all actions necessary (to the extent such actions are permitted
by Law) to cause the Board to include each Seller Nominated Person, including the following: (i) with respect to each applicable Election
Meeting or Consent, include for election to the Board the Seller Nominated Persons as part of the Company’s slate of nominees for
election as directors, (ii) to solicit proxies in order to obtain shareholder approval of the election of the Seller Nominated Persons,
including causing officers of the Company who hold proxies (unless otherwise directed by the Company shareholder submitting such proxy)
to vote such proxies in favor of the election of such Seller Nominated Persons, (iii) to cause the Seller Nominated Persons to be elected
to the Board, including recommending that the Company’s shareholders vote in favor of the Seller Nominated Persons in any proxy
statement used by the Company to solicit the vote of its shareholders in connection with each Election Meeting or Consent and (iv) to
use or provide the same level of effort and same level of support as is used or provided for the other director nominees of the Company
in connection with each Election Meeting or Consent; provided, however, that to exercise its Board Appointment Right with respect
to any particular Election Meeting or Consent, a Nominating Seller Party must notify the Chairman of the Board (or if there is not a
Chairman of the Board, the Board) in writing of each Seller Nominated Person designated by such Nominating Seller Party no later than
twenty (20) days after receiving the Board Appointment Notice with respect to such Election Meeting or Consent.

 

    	Nominating and Voting Agreement
	Page 3 of 14

    	 

    

 

(B)
A Nominating Seller Party who holds at least five percent (5%) but less than fifteen percent (15%) of the Company’s outstanding
Common Stock at the time when the determination is made is entitled to designate for nomination to the Board one (1) Board Appointee.
A Nominating Seller Party who holds fifteen percent (15%) or more of the Company’s outstanding Common Stock at the time when the
determination is made is entitled to designate for nomination to the Board a total of two (2) Board Appointees.

 

3.2.
If at any time there are less than that the number of Board Appointees to which a Nominating Seller Party is entitled to designate for
nomination pursuant to Sections 3.1(B) then serving on the Board, then upon the receipt of written notice from such Nominating
Seller Party to the Chairman of the Board (or if there is not a Chairman of the Board, the Board) (a “Seller Appointment
Notice”) designating a Board Appointee to fill any such position, the Company shall take any and all necessary action to
(a) increase the number of directors on the Board as may be required for the appointment of such Board Appointee(s) and (b) cause the
appointment of such Board Appointee(s) to the Board.

 

3.3.
Each Seller Nominated Person shall be selected by the affirmative vote of each Nominating Seller Party, as applicable, and each Company
Nominated Person shall be selected by the affirmative vote of the Non-Seller Appointed Directors set forth in writing (which may be via
email).

 

3.4.
Each Nominating Seller Party shall have the exclusive right to designate a nominee to the Board to fill any vacancy created by reason
of death, disqualification, removal or resignation of any director who was a Seller Nominated Person designated by such Nominating Seller
Party, and upon the receipt of a Seller Appointment Notice with respect to any such designation, the Company shall take any and all necessary
action to cause such vacancy to be filled by the Seller Nominated Person set forth in such Seller Appointment Notice as promptly as reasonably
practicable. In the absence of a designation from the applicable Nominating Seller Party as specified above, such Board seat shall remain
vacant until otherwise filled as provided above.

 

3.5.
Any vacancy on the Board arising from the death, disqualification, removal or resignation of a Company Nominated Person shall be filled
by an individual nominated by the Non-Seller Appointed Directors.

 

3.6.
Following provision of any notice from a Nominating Seller Party regarding the designation of a Board Appointee, such Nominating Seller
Party shall use its commercially reasonable efforts to provide, or cause such individual(s) to provide, to the Company such information
about such individuals at such times as the Company may reasonably request in order to ensure compliance with Section 3.6, the
listing rules of NASDAQ and the rules and regulations of the SEC to the same extent as requested from the other director nominees of
the Company in connection with their appointment or election.

 

    	Nominating and Voting Agreement
	Page 4 of 14

    	 

    

 

3.7.
Notwithstanding anything to the contrary herein, no Board Appointee shall be included as a nominee for election or appointment to the
Board in the event such person is a Disqualified Person. For the purposes hereof, a “Disqualified Person” is
a person for whom the Board reasonably determines (which determination shall set forth in writing the grounds for such reasonable determination) that
the nomination, election or appointment of such person to the Board or retention of such person on the Board, as applicable, would (a)
violate the listing rules of NASDAQ or the rules and regulations of the SEC, (b) due to such person’s past, affiliations or otherwise,
negatively affect the reputation of the Company, negatively affect the Company’s ability to complete future transactions, or disqualify
the Company from undertaking any offering under applicable securities laws, or (c) violate the fiduciary duties that the Board owes to
the Company or its shareholders; provided, however, that if the Board reasonably determines that any Board Appointee is unfit
for service on the Board for the reasons set forth above, then the Company shall promptly notify the applicable Nominating Seller Party
and such Nominating Seller Party shall then be entitled to designate an alternative or replacement person as a nominee to the Board.
Other than pursuant to the foregoing sentence, neither the Company nor any other Party shall have the right to object to any nominee
selected pursuant to this Section 1.

 

3.8.
Notwithstanding the above, the Non-Seller Appointed Directors and Seller Nominated Persons shall be apportioned between ‘independent’
and non-’independent’ directors as required by the rules of NASDAQ such that the Company continues in compliance with applicable
NASDAQ rules.

 

3.9.
During the Term, each Seller Party shall promptly notify the Company upon becoming a Non-Nominating Seller Party. The Company shall not
be required to provide Board Appointment Notice to any Non-Nominating Seller Parties and Non-Nominating Seller Parties shall have no
rights to nominate any Person to the Board pursuant to the terms hereof. Upon any Nominating Seller Party becoming a Non-Nominating Seller
Party, such Seller Party shall take any and all necessary action to cause such Seller Party’s Seller Nominated Persons to tender
their resignation from the Board and, upon delivery of such resignations, the Company and Seller Parties shall take any and all necessary
action to cause the authorized size of the Board to be reduced accordingly.

 

3.10.
Any nomination procedures set forth in the Company’s Organizational Documents which conflict with the terms hereof shall be amended
as required to comply with the terms hereof.

 

    	Nominating and Voting Agreement
	Page 5 of 14

    	 

    

 

3.11.
Each Seller Nominated Person shall be entitled to the same expense reimbursement and advancement, exculpation, indemnification and insurance
in connection with his or her role as a director as the other members of the Board (which shall be primary over any other indemnification
or insurance available to such Seller Nominated Person), as well as reimbursement for documented, reasonable out-of-pocket expenses incurred
in attending meetings of the Board or any committee of the Board of which such Seller Nominated Person is a member, if any, in each case
to the same extent as the other members of the Board. Each Seller Nominated Person shall be also entitled to any retainer, equity compensation
or other fees or compensation paid to the non-employee directors of the Company for their services as a director, including any service
on any committee of the Board. During the term hereof and for a period of at least six (6) years after each such Seller Nominated Person’s
service on the Board has concluded, the Company shall not amend, alter, repeal or waive (a) any right to indemnification or exculpation
covering or benefiting any Seller Nominated Person nominated pursuant to this Agreement (whether such right is contained in the Company
Organizational Documents or another document) or (b) any provision of the Company Organizational Documents, if such amendment, alteration,
repeal or waiver adversely affects the rights or obligations of the Seller Parties or the Seller Nominated Persons pursuant to this Agreement.
The Company shall maintain directors’ and officers’ liability insurance covering each Seller Nominated Person to the maximum
extent of the coverage available to the most favorably insured of the other directors serving on the Board, and the Company shall continue
to maintain such directors’ and officers’ liability insurance coverage with respect to each Seller Nominated Person’s
service on the Board for a period of at least six (6) years after each such Seller Nominated Person’s service on the Board has
concluded. The obligations of the Company under this Section 3.11 shall survive the expiration of the Term.

 

3.12.
Each Seller Nominated Person may share any information received in his or her capacity as a Board member with the Nominating Seller Party
which designated them for election or appointment to the Board. Each Nominating Seller Party severally agrees that it will, and will
cause its Affiliates to, keep confidential and not disclose, divulge or use for any purpose, other than to monitor and make voting and
investment decisions with respect to its investment in the Company and its subsidiaries, any confidential information obtained from the
Company, unless such confidential information is known or becomes known to the public in general (other than as a result of a breach
of this Section 3.12 by such Nominating Seller Party or its Affiliates), is or has been independently developed or conceived by
such Nominating Seller Party or its Affiliates without use of the Company’s confidential information or is or has been made known
or disclosed to such Nominating Seller Party or its Affiliates by a third party without a breach of any obligation of confidentiality
such third party may have to the Company that is known to such Nominating Seller Party or its Affiliates; provided, however, that
such Nominating Seller Party and its Affiliates may disclose confidential information (a) to its attorneys, accountants, consultants,
and other professionals to the extent necessary to obtain their services in connection with monitoring and making voting and investment
decisions with respect to its investment in the Company, (b) to any Affiliate, partner, member or related investment fund of such Nominating
Seller Party or its Affiliates and their respective directors, employees and consultants, in each case in the ordinary course of business,
or (c) as may otherwise be required by Law. Each Party hereto acknowledges that the Sage Road Entities or any of their Affiliates and
related investment funds may review the business plans and related proprietary information of many enterprises, including enterprises
which may have products or services which compete directly or indirectly with those of the Company and its subsidiaries, and may trade
in the securities of such enterprises. Nothing in this Section 3.12 will preclude or in any way restrict the Sage Road Entities
or any of their Affiliates or related investment funds from investing or participating in any particular enterprise, or trading in the
securities thereof, whether or not such enterprise has products or services that compete with those of the Company and its subsidiaries.

 

    	Nominating and Voting Agreement
	Page 6 of 14

    	 

    

 

3.13.
Any Seller Party may elect upon written notice to the Company to irrevocably terminate any or all of their rights under this Section
3 at any time.

 

3.14.
At all times when Lubbock is a Nominating Seller Party and its Board Appointee is John A. Weinzierl (“Weinzierl”),
each Nominating Seller Party shall instruct its Board Appointee to vote in favor of appointing Weinzierl as Chairman of the Board.

 

4.
Voting Requirements.

 

4.1.
During the Term, each Seller Party agrees to vote all Common Stock (whether at a meeting of the shareholders of the Company or via any
written consent to action without meeting of the shareholders of the Company), in such manner as may be necessary to nominate and elect
(and, if applicable, maintain in office) as a member of the Company’s Board, each of the Seller Nominated Persons.

 

4.2.
Each Seller Party agrees to not vote any Common Stock for the removal of any Seller Nominated Persons, unless such person is a Disqualified
Person.

 

5.
Term. This Agreement shall continue in effect from the Effective Date until the earlier of (a) the date mutually agreed by
all the Parties and (b) the date that no Seller Party owns at least 5% of the outstanding shares of Common Stock (such period, the
“Term”); provided that any rights or obligations which by their express terms survive beyond the expiration
of the Term shall survive in accordance with their terms. Once a Seller Party becomes a Non-Nominating Seller Party it shall no longer
have any right to nominate any Person hereunder, even if such Seller Party shall thereafter increase its ownership of Common Stock above
5% of the Company’s outstanding Common Stock.

 

6.
Miscellaneous.

 

6.1.
Representations. Each Party hereby represents and warrants to each other Party that as of the Effective Date: (a) it is duly organized,
validly existing and in good standing under the Laws of the jurisdiction of its organization; (b) this Agreement has been duly and validly
executed and delivered by such party and this Agreement constitutes a legal and binding obligation of such party, enforceable against
the such party in accordance with its terms; (c) the execution, delivery and performance by such party of this Agreement and the consummation
by such party of the transactions contemplated hereby will not, with or without the giving of notice or lapse of time, or both (i) violate
any Law applicable to it, or (ii) conflict with, or result in a breach or default under, any term or condition of any material agreement
or other instrument to which such party is a party or by which such party is bound, except for such violations, conflicts, breaches or
defaults that would not, in the aggregate, materially affect such party’s ability to perform its obligations hereunder.

 

    	Nominating and Voting Agreement
	Page 7 of 14

    	 

    

 

6.2.
Successors and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective
successors, heirs and permitted assigns of the Parties. Nothing in this Agreement, express or implied, is intended to confer upon any
party other than the Parties hereto or their respective successors and permitted assigns any rights, remedies, obligations, or liabilities
under or by reason of this Agreement.

 

6.3.
Enforceability. This Agreement may only be enforced by the Parties hereto, and nothing set forth in this Agreement shall be construed
to confer upon or give to any other person, other than the Parties hereto and their respective successors, heirs and permitted assigns,
any rights to enforce the undertakings set forth herein.

 

6.4.
Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.

 

(a)
This Agreement, and all claims or causes of action (whether in contract, tort or otherwise) that may be based upon, arise out of
or relating to this Agreement or the negotiation, execution or performance of this Agreement (including any claim or cause of action
based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement or as an inducement
to enter into this Agreement) shall be governed by and construed in accordance with the internal Laws of the State of Texas, without
regard to any choice-of-law or conflicts of law provision or rule (whether of the State of Texas or any other jurisdiction) that would
cause the application of the Laws of any jurisdiction other than the State of Texas.

 

(b)
Each of the Parties hereby irrevocably and unconditionally (i) submits, for itself and its property, to the exclusive jurisdiction
and venue of any federal court or state court sitting in Houston, Texas) (“Texas Courts”), and any appellate
court from any decision thereof, in any action arising out of or relating to this Agreement, including the negotiation, execution or
performance of this Agreement and agrees that all claims in respect of any such action shall be heard and determined in the Texas Courts,
(ii) waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the
laying of venue of any action arising out of or relating to this Agreement or the negotiation, execution or performance of this Agreement
in the Texas Courts, including any objection based on its place of incorporation or domicile, (iii) waives, to the fullest extent
permitted by law, the defense of an inconvenient forum to the maintenance of such action in any such court and (iv) agrees that
a final judgment in any such action shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any
other manner provided by law.

 

    	Nominating and Voting Agreement
	Page 8 of 14

    	 

    

 

(c)
EACH OF THE PARTIES ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY BE BASED UPON, ARISE OUT OF OR RELATED TO THIS AGREEMENT IS
LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY
RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY FOR ANY DISPUTE BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE BREACH,
TERMINATION OR VALIDITY HEREOF OR ANY TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH OF THE PARTIES CERTIFIES AND ACKNOWLEDGES THAT
(I) NEITHER THE OTHER PARTIES NOR THEIR RESPECTIVE REPRESENTATIVES, AGENTS OR ATTORNEYS HAVE REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (II) EACH OF THE PARTIES UNDERSTANDS
AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (III) EACH OF THE PARTIES MAKES THIS WAIVER VOLUNTARILY AND (IV) EACH OF
THE PARTIES HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS OF THIS SECTION 4.3(c).
ANY PARTY MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES
TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

 

6.5.
 Counterparts. This Agreement and any signed agreement or instrument entered into in connection with this Agreement, and
any amendments hereto or thereto, may be executed in one or more counterparts, all of which shall constitute one and the same instrument.
Any such counterpart, to the extent delivered by means of a facsimile machine or by .pdf, .tif, .gif, .jpeg or similar attachment to
electronic mail (any such delivery, an “Electronic Delivery”) shall be treated in all manner and respects as
an original executed counterpart and shall be considered to have the same binding legal effect as if it were the original signed version
thereof delivered in person.

 

6.6.
Headings. The descriptive headings used herein are inserted for convenience of reference only and are not intended
to be part of or to affect the meaning or interpretation of this Agreement.

 

6.7.
Notices. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed
effectively given upon the earlier of actual receipt or (a) personal delivery to the Party to be notified, (b) when sent, if
sent by electronic mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours, then
on the recipient’s next business day, (c) five (5) days after having been sent by registered or certified mail, return
receipt requested, postage prepaid, or (d) one (1) business day after the business day of deposit with a nationally recognized
overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt. All communications shall
be sent to the respective Parties at their address as set forth on the signature pages hereto, or to such email address, facsimile number
or address as subsequently modified by written notice given in accordance with this Section 6.6.

 

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6.8.
Consent Required to Amend, Terminate or Waive. This Agreement may be amended or terminated and the observance of any term hereof
may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument
executed by each of the Parties hereto.

 

6.9.
Specific Performance. The Parties agree that irreparable damage would occur if any of the provisions of this Agreement were not
performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the Parties shall be entitled
to an injunction or injunctions to prevent breaches or threatened breaches of this Agreement and to enforce specifically the terms and
provisions of this Agreement in any federal or state court located in Texas, this being in addition to any other remedy at law or in
equity, and the Parties to this Agreement hereby waive any requirement for the posting of any bond or similar collateral in connection
therewith. The Parties agree that they shall not object to the granting of injunctive or other equitable relief on the basis that there
exists an adequate remedy at law.

 

6.10.
Delays or Omissions. No delay or omission to exercise any right, power or remedy accruing to any Party under this Agreement, upon
any breach or default of any other Party under this Agreement, shall impair any such right, power or remedy of such non-breaching or
non-defaulting Party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in
any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other
breach or default previously or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of
any Party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this
Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either
under this Agreement or by law or otherwise afforded to any Party, shall be cumulative and not alternative.

 

6.11.
Severability. If any provision of this or the application of any such provision to any Party or circumstance shall be held invalid,
illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall not
affect any other provision hereof or the application of such provision to any other Parties or circumstances.

 

6.12.
Further Assurances. At any time or from time to time after the date hereof, the Parties agree to cooperate with each other, and
at the request of any other Party, to execute and deliver any further instruments or documents and to take all such further action as
the other Party may reasonably request in order to evidence or effectuate the consummation of the transactions contemplated hereby and
to otherwise carry out the intent of the Parties hereunder.

 

6.13.
Entire Agreement. This Agreement, the Purchase and Sale Agreements, the Confidentiality Agreement, and (when executed) the other
Transaction Documents contain the entire agreement and understanding between the Parties with respect to the subject matter hereof and
thereof, and all prior and contemporaneous negotiations, understandings, and agreements between the Parties on the matters contained
herein and therein are expressly merged into and superseded by this Agreement, the Purchase and Sale Agreements, the Confidentiality
Agreement, and (when executed) the other Transaction Documents. The provisions of this Agreement, the Purchase and Sale Agreements, the
Confidentiality Agreement, and (when executed) the other Transaction Documents may not be explained, supplemented, or qualified through
evidence of trade usage or a prior course of dealings. No Party shall be liable or bound to any other Party in any manner by any representations,
warranties, covenants, or agreements relating to such subject matter except as specifically set forth in this Agreement, the Purchase
and Sale Agreements, the Confidentiality Agreement, and (when executed) the other Transaction Documents.

 

[Remainder
of page left intentionally blank. Signature pages follow.]

 

    	Nominating and Voting Agreement
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IN
WITNESS WHEREOF, the Parties have executed this Nominating and Voting Agreement as of the date first written above.

 

	“COMPANY”	 
	 	 	 
	U.S.
  Energy Corp.	 
	 	 	 
	By:	/s/
  Ryan Smith	 
	Name:	Ryan
  Smith	 
	Title:	CEO	 

 

Address
for Notice:

 

U.S.
Energy Corp.

Attn:
Ryan Smith

675
Bering Dr, Suite 390

Houston,
Texas 77057

Email:
Ryan@usnrg.com

 

With
a copy, which shall not constitute notice to:

 

The
Loev Law Firm, PC

Attn:
David M. Loev and John S. Gillies

6300
West Loop South, Suite 280

Bellaire,
Texas 77401

Email:
dloev@loevlaw.com and john@loevlaw.com

 

    	Nominating and Voting Agreement
	Page 11 of 14

    	 

    

 

	“LUBBOCK”	 
	 	 	 
	Lubbock
    Energy Partners LLC	 
	 	 	 
	By:	/s/
    John Weinzierl	 
	Name:	John
    Weinzierl	 
	Title:	CEO	 

 

Address
for Notice:

 

Lubbock
Energy Partners LLC

Attn:
John Weinzierl

1616
S. Voss Rd. #530

Houston,
Texas 77057

Email:
johnw@katlacapital.com

 

With
a copy, which shall not constitute notice to:

 

Nance
& Simpson, LLP

Attn:
Glynn Nance

2603
Augusta, Suite 1000

Houston,
Texas 77057

Email:
gnance@nancesimpson.com

 

    	Nominating and Voting Agreement
	Page 12 of 14

    	 

    

 

	“SYNERGY”	 
	 	 	 
	Synergy
    Offshore LLC	 
	 	 	 
	By:	/s/
    Duane H. King	 
	Name:	Duane
    H. King	 
	Title:	Chief
    Executive Officer	 

 

Address
for Notice:

 

Synergy
Offshore LLC

Attn:
Duane H. King

9821
Katy Fwy, Suite 805

Houston,
Texas 77024

Fax:
713-827-9989

Email:
dking@synergyog.com

 

With
a copy, which shall not constitute notice to:

 

Crain,
Caton and James

Attn:
Adrienne Randle Bond

Five
Houston Center

1401
McKinney St., Suite 1700

Houston,
Texas 77010

Email:
abond@craincaton.com

 

    	Nominating and Voting Agreement
	Page 13 of 14

    	 

    

 

	“SAGE
    ROAD ENTITIES”	 
	 	 	 
	Banner
    Oil & Gas, LLC	 
	 	 	 
	By:	/s/
    Joshua L. Batchelor	 
	Name:	Joshua
    L. Batchelor	 
	Title:	Manager	 

 

	Woodford
    Petroleum, LLC	 
	 	 	 
	By:	/s/
    Joshua L. Batchelor	 
	Name:	Joshua
    L. Batchelor	 
	Title:	Manager	 

 

	Llano
    Energy LLC	 
	 	 	 
	By:	/s/
    Joshua L. Batchelor	 
	Name:	Joshua
    L. Batchelor	 
	Title:	Manager	 

 

Address
for Notice:

 

c/o
Sage Road Capital, LLC

2121
Sage Road, Suite 325

Houston,
TX 77056

Attention:
Benjamin A. Stamets

Email:
ben@sagerc.com

 

With
a copy, which shall not constitute notice to:

 

Porter
Hedges LLP

1000
Main Street, 36th Floor

Houston,
Texas 77002

Attn:
Jeremy Mouton

Email:
jmouton@porterhedges.com

 

    	Nominating and Voting Agreement
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