Document:

Blueprint

 

 

Exhibit 10.2

 

LOAN MODIFICATION AGREEMENT

 

THIS
LOAN MODIFICATION
AGREEMENT (this
“Agreement”) is
made as of September 30, 2019 by and among Yuma Energy, Inc., a
Delaware corporation (the “Company”), Yuma Exploration and
Production Company, Inc., a Delaware corporation
(“Yuma
E&P”), Pyramid Oil LLC, a California limited
liability company (“Pyramid”), Davis Petroleum Corp.,
a Delaware corporation (“Davis” and collectively with the
Company, Yuma E&P and Pyramid, the “Borrowers”), and YE Investment
LLC, a Delaware limited liability company, as lender and
administrative agent (“YE”). Capitalized terms used but
not defined herein have the meanings set forth in the Credit
Agreement (as defined below).

 

W I T N E S S E T H:

 

WHEREAS, YE acquired as of September 10,
2019 all of the outstanding Loans and other Obligations of the
Borrowers (the “Purchased
Loans”) under that certain Credit Agreement, dated as
of October 26, 2016 (the “Original Credit Agreement”) by and
among the Lender party thereto, YE as Administrative Agent (in such
capacity, the “Agent”), and the Borrowers, as
amended or modified by (A) the First Amendment to Credit Agreement
and Borrowing Base Redetermination dated as of May 19, 2017, (B)
the Second Amendment to Credit Agreement and Borrowing Base
Redetermination dated as of May 8, 2018, (C) the Waiver and Third
Amendment to Credit Agreement dated as of July 31, 2018, (D) the
Limited Waiver dated as of August 30, 2018, in each case among the
Lenders, the Agent and the Borrowers, and (E) and the Successor
Agent and Issuing Bank Agreement dated as of September 10, 2019
(the agreements in (A) through (E), the “Default Documents”, and the
Original Credit Agreement as so amended or modified by the Default
Documents, the “Credit
Agreement”);

 

WHEREAS, the Purchased Loans are further
evidenced and secured by the other Loan Documents (as defined in
the Credit Agreement);

 

WHEREAS, the Borrowers and YE have
agreed, in the manner set forth herein, the outstanding principal
amount of the Purchased Loans will be reduced from $32,805,517.85
to $1,400,000.00; and

 

WHEREAS, YE and the Borrowers desire to
amend the Credit Agreement and the other Loan Documents in the
manner hereinafter set forth to reflect the reduction in the
principal amount of the Purchased Loans and certain additional
amendments to the Credit Agreement.

 

NOW, THEREFORE, in consideration of the
foregoing recitals, which are incorporated into the operative
provisions of this Agreement by this reference, and for other good
and valuable consideration, the receipt and adequacy of which are
hereby conclusively acknowledged, the Borrowers hereby covenant and
agree with YE as follows:

 

Section
1.                           Original
Indebtedness. The Borrowers hereby acknowledge that, as of
the date hereof, the aggregate principal amount of the Purchased
Loans is $32,805,517.85.

 

 

1

 

   

Section
2.                           Forgiveness
of Certain Amounts.

 

(a) The aggregate
principal amount of the Purchased Loans is hereby reduced to an
outstanding principal amount of One Million, Four Hundred Thousand
and No/100 Dollars ($1,400,000.00) (the Purchased Loans with such
reduced aggregate principal amount are hereinafter referred to as
the “Modified Purchased
Loans”).

 

(b) The Modified
Purchased Loans shall be evidenced by a promissory note dated as of
September 30, 2019 from the Borrowers to YE (the
“YE Note”)
attached hereto as Exhibit
A.

 

(c) YE agrees that
$31,405,517.85 of, along with all interest due and payable in
connection with, the Purchased Loans as of the date hereof and all
fees due related thereto as of the date hereof are
forgiven.

 

Section
3.                           Ratification
of the YE Note. The YE Note is hereby ratified and confirmed
in all respects by the Borrowers and, except as so consolidated and
modified as set forth herein, the YE Note shall remain unchanged
and in full force and effect. The YE Note is secured by the liens
and security interests created by the Guarantee and Collateral
Agreement.

 

Section
4.                           Amendments
to the Credit Agreement.

 

(a) The definition of
“Alternate Base Rate” as set forth in Section 1.1 of
the Credit Agreement shall be deleted in its entirety, and the
following definition shall be inserted in place
thereof:

 

“Alternate Base Rate”
means, for any day, a rate per annum equal to ten percent
(10%).

 

(b) The definition of
“Applicable Margin” as set forth in Section 1.1 of the
Credit Agreement shall be deleted in its entirety, and the
following definition shall be inserted in place
thereof:

 

“Applicable Margin” means,
for any day, with respect to any Base Rate Loan or Eurodollar Loan
or the Commitment Fee Rate, the rate per annum of zero percent
(0.00%).

 

(c) The definition of
“Interest Payment Date” as set forth in Section 1.1 of
the Credit Agreement shall be deleted in its entirety, and the
following definition shall be inserted in place
thereof:

 

“Interest Payment Date”
means (a) with respect to any Base Rate Loan, the last day of each
March, June, September and December until December 31, 2019 and
thereafter the last day of each of January, February, March, April,
May, June, July, August, September, October, November and December,
and (b) with respect to any Eurodollar Loan, the last day of the
Interest Period applicable to the Borrowing of which such Loan is a
part and, in the case of a Eurodollar Borrowing with an Interest
Period of more than three months’ duration, each day prior to
the last day of such Interest Period that occurs at intervals of
three months’ duration after the first day of such Interest
Period.

 

 

2

 

(d) The definition of
“Maturity Date” as set forth in Section 1.1 of the
Credit Agreement shall be deleted in its entirety, and the
following definition shall be inserted in place
thereof:

 

“Maturity Date” means
September 30, 2022 or any earlier date on which the Commitments are
terminated pursuant to the terms hereof.

 

(e) Section 1.1 of
the Credit Agreement is hereby amended by
adding the following new definition in its
proper alphabetical order:

 

“Restructuring Agreement”
is defined in Section 7.1(o).

 

(f) Section 6.1 of the
Credit Agreement is hereby deleted in its entirety and replaced
with the following:

 

“Section
6.1

[RESERVED]”

 

(g) Section 7.1 of the
Credit Agreement is hereby amended by adding a new subsection (o),
which shall read as follows:

 

“(o) the
failure of all of the Restructuring Transactions (as defined in
that certain Restructuring and Exchange Agreement, by and among the
parties hereto and the other parties thereto, dated as of September
30, 2019 (the “Restructuring
Agreement”)), including the Note Exchange and the COD
Amendment (each as defined in the Restructuring Agreement), to be
consummated and made effective on or before September 30,
2020.”

 

(h) Section 9.1(a)(ii)
of the Credit Agreement is hereby deleted in its entirety and
replaced with the following:

 

“(ii) if to
the Administrative Agent, to YE Investment LLC c/o Red Mountain
Capital Partners LLC, 10250 Constellation Blvd, Suite 2300, Los
Angeles, CA 90067, Attention: Willem Mesdag;”

 

(i) Section 9.1(a)(iii)
of the Credit Agreement is hereby deleted in its entirety and
replaced with the following:

 

“[RESERVED]”

 

(j) All references in
the Loan Documents to the Credit Agreement shall mean the Credit
Agreement as hereby modified.

 

 

3

 

   

(k) As amended by this
Agreement, all terms, covenants and provisions of the Loan
Documents are ratified and confirmed and shall remain in full force
and effect as first written.

 

(l) Except as modified
and amended hereby, the Loan, the Credit Agreement and the other
Loan Documents and the obligations of YE, Borrowers and Guarantors
thereunder shall remain unmodified and in full force and
effect.

 

(m) The Borrowers and
YE agree that the Borrowers shall not have the right to select an
interest rate based on the Adjusted LIBOR Rate.

 

(n) The
Borrowers agree that no Letters of Credit may be issued under the
Credit Agreement.

 

(o) The Borrowers and
YE agree that, for income tax purposes, the modification of the
Purchased Loans as set forth in this Agreement shall be treated as
a significant modification of the Purchased Loans that results in
an exchange of the Purchased Loans for a modified instrument that
differs materially in kind or in extent within the meaning of
Treasury Regulations Section 1.1001-3(b).

 

 

(p) The Borrowers agree
that no additional Loans will be made under the Credit Agreement
(including by way of re-borrowing).

 

Section
5.                      No
New Indebtedness.

 

(a) The Borrowers and
YE hereby acknowledge and agree that the YE Note evidences the same
indebtedness as the promissory notes evidencing the Purchased Loans
(the “Original
Notes”) and substitute for the Original Notes without
any novation, cancellation, extinguishment, payment or satisfaction
thereof, except as provided in this Agreement, including
forgiveness of debt and change to the interest rate. The Original
Notes have been superseded in their entirety by the YE Note.
Nothing contained in this Agreement or in the YE Note
shall:

 

(i) be deemed to
cancel, extinguish, or constitute payment or satisfaction of the
indebtedness secured by the Guarantee and Collateral Agreement or
other Loan Documents or evidenced by the Original
Notes;

 

(ii) give
rise to any defense, set-off, right of recoupment, claim or
counterclaim with respect to any of the Borrowers’
obligations under the Loan Documents or the Original
Notes;

 

(iii) constitute
a new or additional indebtedness or constitute a novation as to
Borrowers’ obligations under the Original Notes or the Loan
Documents;

 

(iv) constitute
a re-advance of a loan; or

 

 

4

 

   

(v) evidence any
principal indebtedness other than the same principal indebtedness
evidenced by the Original Notes and secured by the Guarantee and
Collateral Agreement and the other Loan Documents.

 

(b) The Borrowers
hereby (i) ratify and confirm the lien and security interests
contained in and created by the Guarantee and Collateral Agreement
and the other Loan Documents, and (ii) agree that nothing
contained in this Agreement is intended to or shall impair the
liens or security interests contained in and created by the
Guarantee and Collateral Agreement and the other Loan Documents,
which continues to secure the Modified Purchased
Loans.

 

Section
6.                           Additional
Representations and Warranties. The Borrowers represent,
warrant and covenant that (a) there are no offsets, counterclaims
or defenses against the Modified Purchased Loans, this Agreement,
the Credit Agreement, the Guarantee and Collateral Agreement or the
YE Note arising solely by reason of entering into this Agreement,
and (b) the Borrowers have the full power, authority and legal
right to execute this Agreement and to keep and observe all of the
terms of this Agreement on its part to be observed or
performed.

 

Section
7.                      Ratification.
By their signatures below, each Guarantor hereby agrees and
consents to this Agreement and ratifies and confirms as to itself
all of the terms and provisions set forth in the Guarantee and
Collateral Agreement and each of the other Loan Documents to which
it is a party (as each of the Loan Documents are amended or
otherwise modified on the date hereof by this Agreement), and each
agrees that their respective obligations and liabilities under such
agreements shall continue without impairment or limitation by
reason of this Agreement. Except as modified and amended by this
Agreement, the Credit Agreement and the respective obligations of
YE, Borrowers and Guarantors thereunder and in respect of the Loan
shall remain unmodified and in full force and effect.

 

Section
8.                      Further
Assurances. At any time or from time to time, upon the
request of YE, the Borrowers shall execute and deliver such further
documents and do such other acts and things as YE may reasonably
request in order to effect fully the purposes of this Agreement,
provided that the same shall not increase the obligations or
decrease the rights of the Borrowers hereunder or under the Loan
Documents.

 

Section
9.                      Notices.
All notices or other written communications hereunder shall be
delivered in accordance with Section 9.1 of the Credit
Agreement.

 

Section
10.                                Defined
Terms. Capitalized terms which are not defined in this
Agreement shall have the meanings set forth in the Credit
Agreement.

 

Section
11.                                No Joint
Venture or Partnership. The Borrowers and YE intend that the
relationships created hereunder and under the other Loan Documents
be solely that of borrower and lender. Nothing herein or therein is
intended to create a joint venture, partnership, tenancy-in-common,
or joint tenancy relationship among the Borrowers and YE nor to
grant YE any interest in the Collateral other than that of
mortgagee, beneficiary or lender.

 

 

5

 

   

Section
12.                                Modification,
Waiver in Writing. No modification, amendment,
extension, discharge, termination or waiver of any provision of
this Agreement, or of the YE Note, or of any other Loan Document,
nor consent to any departure by the Borrowers therefrom, shall in
any event be effective unless the same shall be in a writing signed
by the party against whom enforcement is sought, and then such
waiver or consent shall be effective only in the specific instance,
and for the purpose, for which given. Except as otherwise expressly
provided herein, no notice to, or demand on the Borrowers shall
entitle the Borrowers to any other or future notice or demand in
the same, similar or other circumstances.

 

Section
13.                                Headings.
The Section headings in this Agreement are included herein for
convenience of reference only and shall not constitute a part of
this Agreement for any other purpose.

 

Section
14.                                     Entire
Agreement. This Agreement, the YE Note and the other Loan
Documents contain the entire agreement of the parties hereto and
thereto in respect of the transactions contemplated hereby and
thereby, and all prior agreements among or between such parties,
whether oral or written, among the Borrowers and YE are superseded
by the terms of this Agreement and the other Loan
Documents.

 

Section
15.                                     Successors
and Assigns. Whenever in this Agreement any of the parties
hereto is referred to, such reference shall be deemed to include
the legal representatives, successors and assigns of such party.
All covenants, promises and agreements in this Agreement, by or on
behalf of the Borrowers, shall inure to the benefit of the
respective legal representatives, successors and assigns of
YE.

 

Section
16.                                     No Third-Party
Beneficiaries. Nothing contained herein is intended or shall
be deemed to create or confer any rights upon any third person not
a party hereto, whether as a third-party beneficiary or otherwise,
except as expressly provided herein.

 

Section
17.                                     Severability.
Wherever possible, each provision of this Agreement and every other
Loan Document shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of
this Agreement or any other Loan Document shall be prohibited by or
invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining
provisions of this Agreement or any other Loan Document, as
applicable.

 

Section
18.                                     Governing
Law. This Agreement shall be governed in accordance with the
terms and provisions of Section 9.9 of the Credit
Agreement.

 

Section
19.                                     TRIAL
BY JURY. BORROWERS
AND YE HEREBY AGREE
NOT TO ELECT A TRIAL BY JURY OF ANY
ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT
THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE
LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING
IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS
GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWERS AND YE, AND IS INTENDED TO ENCOMPASS
INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO
A TRIAL BY JURY WOULD OTHERWISE ACCRUE. THE BORROWERS AND YE ARE HEREBY AUTHORIZED TO FILE A COPY OF THIS
PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER
BY THE OTHER
PARTY.

 

Section
20.                                    Counterparts.     
To facilitate execution, this Agreement may be executed in as many
counterparts as may be convenient or required. It shall not be
necessary that the signature of, or on behalf of, each party, or
that the signature of all persons required to bind any party,
appear on each counterpart. All counterparts shall collectively
constitute a single instrument. It shall not be necessary in making
proof of this Agreement to produce or account for more than a
single counterpart containing the respective signatures of, or on
behalf of, each of the parties hereto. Any signature page to any
counterpart may be detached from such counterpart without impairing
the legal effect of the signatures thereon and thereafter attached
to another counterpart identical thereto except having attached to
it additional signature pages.

 

[Signature
Page Follows]

 

 

6

 

IN WITNESS WHEREOF, this Agreement has
been executed by the Borrowers and YE as of the date first set
forth above.

 

 

BORROWERS:

 

	

Yuma
Energy, Inc.

	
 

	

Yuma
Exploration and Production Company, Inc.

	
 

	
 

	
 

	
 

	
 

	
 

	

By: /s/
Anthony C. Schnur

	
 

	

By: /s/
Anthony C. Schnur

	

Name:
Anthony C. Schnur

	
 

	

Name:
Anthony C. Schnur

	

Title:
Interim Chief Executive Officer

	
 

	

Title:
Interim Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

	
 

	

Pyramid
Oil LLC

	
 

	

Davis
Petroleum Corp.

	
 

	
 

	
 

	
 

	
 

	
 

	

By: /s/
Anthony C. Schnur

	
 

	

By: /s/
Anthony C. Schnur

	

Name:
Anthony C. Schnur

	
 

	

Name:
Anthony C. Schnur

	

Title:
Interim Chief Executive Officer

	
 

	

Title:
Interim Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

	
 

 

 

7

 

 

	

 

LENDER:

 

	
 

	
 

	

YE Investment LLC

	
 

	
 

	
By: Red Mountain Capital Partners LLC, its Managing
Member

	
 

	
 

	
	
 

	
 

	
By:
/s/ Willem
Mesdag

	
 

	
 

	
Name: Willem
Mesdag

	
 

	
 

	
Title:
Managing Partner

	
 

	
 

	
 

	
 

	
 

 

 

 

 

 

8

 

The
undersigned hereby acknowledges and consents to the amendment of
the Credit Agreement and the Loan Documents pursuant to this
Agreement, and agrees that the liability of the undersigned under
the Guarantee and Collateral Agreement and each of the other Loan
Documents (as each of the Loan Documents are amended or otherwise
modified on the date hereof by this Agreement) to which it is a
party (collectively, the “Guarantor Documents”) shall not be
affected as a result of this Agreement or any other documents
executed in connection therewith, and hereby ratifies the Guarantor
Documents in all respects and confirms that the Guarantor Documents
are and shall remain in full force and effect.

 

 

GUARANTORS:

 

	

Davis
Petroleum Acquisition Corp.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

By: /s/
Anthony C. Schnur

	
 

	
 

	

Name:
Anthony C. Schnur

	
 

	
 

	

Title:
Interim Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

The
Yuma Companies, Inc.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

By: /s/
Anthony C. Schnur

	
 

	
 

	

Name:
Anthony C. Schnur

	
 

	
 

	

Title:
Interim Chief Executive Officer

	
 

	
 

 

 

 

 

9

 

EXHIBIT A

 

YE Note

 

(attached
hereto)

 

 

 

 

 

10

 

 

NOTE

 

September
30, 2019

 

FOR
VALUE RECEIVED, the undersigned, 
YUMA ENERGY, INC., YUMA EXPLORATION AND PRODUCTION
COMPANY, INC., PYRAMID OIL LLC and DAVIS PETROLEUM CORP. (the
“Borrowers”, and each a
“Borrower”), each hereby
jointly and severally promise to pay to the order of YE INVESTMENT
LLC (together with its successors and permitted assigns, the
“Lender”) the aggregate
unpaid principal amount of all Loans made by the Lender to the
Borrowers pursuant to the Credit Agreement dated as of October 26,
2016 among the Borrowers, various financial institutions and YE
Investment LLC, as Administrative Agent (as amended, restated or
otherwise modified from time to time, the “Credit Agreement”), on
the dates, in the amounts and at the place provided in the Credit
Agreement. Each Borrower further jointly and severally promises to
pay interest on the unpaid principal amount of the Loans evidenced
hereby from time to time at the rates, on the dates, and otherwise
as provided in the Credit Agreement.

 

The
Lender is authorized to record the amount and the date on which
each Loan is made and each payment of principal with respect
thereto in its records; provided that any failure to so record such
information shall not in any manner affect any obligation of any
Borrower under the Credit Agreement or this Note.

 

This
Note may only be assigned as provided in the Credit
Agreement.

 

This
Note is one of the Notes referred to in, and is entitled to the
benefits of, the Credit Agreement. Capitalized terms used but not defined
herein have the respective meanings
set forth in the Credit
Agreement.

 

This
Note is issued as a replacement for (but not a novation of) those
certain notes dated October 26, 2016 made by Yuma Energy, Inc.,
Yuma Exploration and Production Company, Inc., Pyramid Oil LLC, and
Davis Petroleum Corp. Such prior notes are not to be deemed paid,
cancelled or terminated and the indebtedness represented by such
prior notes is a continuing obligation of the Borrowers and each
Borrower acknowledges and affirms that all indebtedness existing
under the Credit Agreement shall continue to be Indebtedness under
the Credit Agreement and evidenced hereby.

 

THIS
NOTE IS GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

 

[Signature
Page Follows]

 

 

 

 

11

 

 

IN
WITNESS WHEREOF, each Borrower has caused this Note to be duly
executed and delivered as of the day and year first above
written.

 

YUMA
ENERGY, INC.

 

	
 

	

By:                                                                           

	
 

	

Name:
Anthony C. Schnur

	
 

	

Title:
Interim Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

	

YUMA
EXPLORATION AND PRODUCTION COMPANY, INC.

	
 

	
 

	
 

	
 

	
 

	

By:                                                                           

	
 

	

Name:
Anthony C. Schnur

	
 

	

Title:
Interim Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

	

PYRAMID
OIL LLC

	
 

	
 

	
 

	
 

	
 

	

By:                                                                           

	
 

	

Name:
Anthony C. Schnur

	
 

	

Title:
Interim Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

	

DAVIS
PETROLEUM CORP.

 

	
 

	

By:                                                                           

	
 

	

Name:
Anthony C. Schnur

	
 

	

Title:
Interim Chief Executive Officer

 

	
 

	

 

 

12Blueprint

 

Exhibit 10.3

 

VOTING AGREEMENT

 

This
VOTING AGREEMENT (this “Agreement”) is dated as
of September 30, 2019 by and among Yuma Energy, Inc., a Delaware
corporation (the “Company”), and each of
the persons listed on Schedule A hereto (each a
“Stockholder” and
collectively, the “Stockholders”).

 

WHEREAS, each of the Stockholders is, as
of the date hereof, the record and beneficial owner of that number
of shares of (i) common stock, $0.001 par value per share (the
“Common
Stock”), of the Company, and (ii) Series D
preferred stock, $0.001 par value per share (“Preferred Stock”), of the
Company, in each case, as set forth opposite such
Stockholder’s name on Schedule A hereto;

 

WHEREAS, the Company, Yuma Exploration
and Production Company, Inc., a Delaware corporation
(“Yuma
E&P”), Pyramid Oil LLC, a California limited
liability company (“Pyramid”), Davis
Petroleum Corp., a Delaware corporation (“Davis” and collectively
with the Company, Yuma E&P and Pyramid, the “Yuma Parties”), Red
Mountain Capital Partners LLC, a Delaware limited liability company
(“Red
Mountain”), RMCP PIV DPC, LP, a Delaware limited
partnership and an Affiliate of Red Mountain (“DPC PIV”), RMCP PIV DPC
II, LP, a Delaware limited partnership and an Affiliate of Red
Mountain (“DPC PIV
II” and together with Red Mountain and DPC PIV, the
“Investors”), and YE
Investment LLC, a Delaware limited liability company and an
Affiliate of Red Mountain (“YE”), concurrently with
the execution and delivery of this Agreement are entering into that
certain Restructuring and Exchange Agreement, dated as of the date
hereof (as the same may be amended or supplemented, the
“Restructuring
Agreement”) (capitalized terms used and not otherwise
defined herein shall have the meanings attributed thereto in the
Restructuring Agreement); and

 

WHEREAS, as a condition to the
willingness of the Yuma Parties to enter into the Restructuring
Agreement, and in order to induce the Yuma Parties to enter into
the Restructuring Agreement, the Stockholders have agreed to enter
into this Agreement.

 

NOW, THEREFORE, in consideration of the
execution and delivery by the Yuma Parties of the Restructuring
Agreement and the mutual representations, warranties, covenants and
agreements contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

Section
1. Representations and Warranties of the
Stockholders. Each of the Stockholders hereby represents and
warrants to the Yuma Parties, severally and not jointly, as
follows:

 

(a) Such Stockholder is
the beneficial owner (within the meaning of Rule 13d-3 under the
Securities Exchange Act of 1934, as amended (the
“Exchange
Act”)) and unless otherwise indicated, the record
owner of the shares of Common Stock and Preferred Stock (as may be
adjusted from time to time pursuant to Section 5 hereof, the
“Shares”) set forth
opposite such Stockholder’s name on Schedule A to this Agreement.
For purposes of this Agreement, the term “Shares” shall
include any shares of Common Stock and Preferred Stock issuable to
such Stockholder upon exercise or conversion of any existing right,
contract, option, or warrant to purchase, or securities convertible
into or exchangeable for, Common Stock or Preferred Stock, as the
case may be (“Stockholder Rights”) that
are currently exercisable or convertible or become exercisable or
convertible and any other shares of Common Stock or Preferred Stock
such Stockholder may acquire or beneficially own during the term of
this Agreement.

 

 

1

 

 

(b) Such Stockholder
has all requisite organizational power and authority to execute and
deliver this Agreement and to perform its obligations contemplated
hereby. This Agreement has been validly executed and delivered by
such Stockholder and, assuming that this Agreement constitutes the
legal, valid and binding obligation of the Yuma Parties and the
other parties hereto, constitutes the legal, valid and binding
obligation of such Stockholder, enforceable against such
Stockholder in accordance with its terms (except insofar as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting
creditors’ rights generally, or by principles governing the
availability of equitable remedies).

 

(c) The execution and
delivery of this Agreement by such Stockholder does not, and the
performance of this Agreement by such Stockholder will not, (i) if
such Stockholder is a corporation, limited liability company or
limited partnership, conflict with the certificate or articles of
incorporation, certificate of formation or limited liability
company agreement or bylaws, certificate of limited partnership or
limited partnership agreement, or similar organizational documents
of such Stockholder as presently in effect (in the case of a
Stockholder that is a legal entity), (ii) conflict with or violate
any judgment, order, decree, statute, law, ordinance, rule or
regulation applicable to such Stockholder or by which it is bound
or affected, (iii)(A) result in any breach of or constitute a
default (or an event that with notice or lapse of time or both
would become a default) under, (B) give to any other person any
rights of termination, amendment, acceleration or cancellation of,
or (C) result in the creation of any pledge, claim, lien, charge,
encumbrance or security interest of any kind or nature whatsoever
upon any of the properties or assets of the Stockholder under, any
agreement, contract, indenture, note or instrument to which such
Stockholder is a party or by which it is bound or affected, except
for such breaches, defaults or other occurrences that would not
prevent or materially delay the performance by such Stockholder of
any of such Stockholder’s obligations under this Agreement,
or (iv) except for applicable requirements, if any, of the Exchange
Act, the Securities Act of 1933, as amended (the
“Securities
Act”), the NYSE American LLC (the “NYSE American”) or the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended
(the “HSR
Act”), require any filing by such Stockholder with, or
any permit, authorization, consent or approval of, any governmental
or regulatory authority, except where the failure to make such
filing or obtain such permit, authorization, consent or approval
would not prevent or materially delay the performance by the
Stockholder of any of such Stockholder’s obligations under
this Agreement.

 

(d) The Shares and the
certificates representing the Shares owned by such Stockholder are
now and at all times during the term hereof will be held by such
Stockholder, or by a nominee or custodian for the benefit of such
Stockholder, free and clear of all pledges, liens, charges, claims,
security interests, proxies, voting trusts or agreements,
understandings or arrangements or any other encumbrances
whatsoever, except for any such encumbrances or proxies arising
hereunder or under applicable federal and state securities laws. As
of the date hereof, such Stockholder owns of record or beneficially
no shares of Common Stock or Preferred Stock other than (x) such
Stockholder’s Shares as set forth on Schedule A, (y) shares of
Common Stock or Preferred Stock owned of record or beneficially by
another Stockholder as set forth on Schedule A which may be deemed
to be beneficially owned by such Stockholder, and (z) shares of
Common Stock into which shares of Preferred Stock as set forth on
Schedule A may
convert.

 

 

2

 

 

(e) As of the date
hereof, neither such Stockholder, nor any of its respective
properties or assets is subject to any order, writ, judgment,
injunction, decree, determination or award that would prevent or
delay the consummation of the transactions contemplated
hereby.

 

(f) Such Stockholder
understands and acknowledges that the Yuma Parties are entering
into the Restructuring Agreement in reliance upon such
Stockholder’s execution and delivery of this
Agreement.

 

Section
2. Representations and Warranties of the
Yuma Parties. The Yuma Parties hereby jointly and severally
represent and warrant to the Stockholders as follows:

 

(a) Each of the Yuma
Parties is a corporation or limited liability company, as
applicable, validly existing and in good standing under the laws of
the jurisdiction of its incorporation or formation. Each of the
Yuma Parties has all requisite organizational power and authority
to execute and deliver this Agreement, to perform its respective
obligations hereunder and to consummate the transactions
contemplated hereby, and has taken all necessary corporate or
limited liability company action, as applicable, to authorize the
execution, delivery and performance of this Agreement. This
Agreement has been duly executed and delivered by each of the Yuma
Parties and, assuming that this Agreement constitutes the legal,
valid and binding obligation of the Stockholders hereto,
constitutes the legal, valid and binding obligation of the Yuma
Parties, enforceable against the Yuma Parties in accordance with
the terms of this Agreement (except insofar as enforceability may
be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ rights
generally, or by principles governing the availability of equitable
remedies).

 

(b) The execution and
delivery of this Agreement by the Yuma Parties does not, and the
performance of this Agreement by the Yuma Parties will not, (i)
conflict with the certificates of incorporation, certificate of
formation or limited liability company agreement or bylaws, or
similar organizational documents of each of the Yuma Parties as
presently in effect, (ii) conflict with or violate any judgment,
order, decree, statute, law, ordinance, rule or regulation
applicable to the Yuma Parties or by which each is bound or
affected, (iii) (A) result in any breach of or constitute a default
(or an event that with notice or lapse of time or both would become
a default) under, (B) give to any other person any rights of
termination, amendment, acceleration or cancellation of, or (C)
result in the creation of any pledge, claim, lien, charge,
encumbrance or security interest of any kind or nature whatsoever
upon any of the properties or assets of the Yuma Parties under, any
agreement, contract, indenture, note or instrument to which any of
the Yuma Parties is a party or by which any of the Yuma Parties is
bound or affected, except for such breaches, defaults or other
occurrences that would not prevent or materially delay the
performance by the Yuma Parties of their respective obligations
under this Agreement, or (iv) except for applicable requirements,
if any, of the Exchange Act, the Securities Act, the NYSE American
or the HSR Act, require any filing by the Yuma Parties with, or any
permit, authorization, consent or approval of, any governmental or
regulatory authority, except where the failure to make such filing
or obtain such permit, authorization, consent or approval would not
prevent or materially delay the performance by the Yuma Parties of
their respective obligations under this Agreement.

 

 

3

 

 

(c) As of the date
hereof, none of the Yuma Parties or any of their properties or
assets are subject to any order, writ, judgment, injunction,
decree, determination or award that would prevent or delay the
consummation of the transactions contemplated hereby.

 

Section
3. Covenants of the Stockholders.
Each of the Stockholders, severally and not jointly, agrees as
follows:

 

(a) Prior to Closing,
such Stockholder shall not, except as contemplated by the terms of
this Agreement, sell, transfer, pledge, assign or otherwise dispose
of, or enter into any contract, option or other arrangement
(including any profit-sharing arrangement) or understanding with
respect to the sale, transfer, pledge, assignment or other
disposition of, the Shares (including any options or warrants to
purchase Common Stock or Preferred Stock) to any person (any such
action, a “Transfer”). For purposes
of clarification, the term “Transfer” shall include,
without limitation, any short sale (including any “short sale
against the box”), pledge, transfer, and the establishment of
any open “put equivalent position” within the meaning
of Rule 16a-1(h) under the Exchange Act. Notwithstanding the
foregoing, distributions of Shares to partners, members,
shareholders, subsidiaries, affiliates, affiliated partnerships or
other affiliated entities of the undersigned shall not be
prohibited by this Agreement; provided that in the case of any such
distribution, each distributee shall execute and deliver to the
Yuma Parties a valid and binding counterpart to this
Agreement.

 

(b) Prior to Closing,
such Stockholder shall not, except as contemplated by the terms of
this Agreement (i) enter into any voting arrangement, whether by
proxy, voting agreement, voting trust, power-of-attorney or
otherwise, with respect to the Shares or (ii) take any other action
that would in any way restrict, limit or interfere with the
performance of its obligations hereunder or the transactions
contemplated hereby or make any representation or warranty of such
Stockholder herein untrue or incorrect in any material
respect.

 

(c) At any meeting of
the stockholders of the Company called to vote upon the
transactions contemplated by the Restructuring Agreement or in
connection with any stockholder consent in respect of a vote on the
transactions contemplated by the Restructuring Agreement, the
Restructuring Agreement or any other transaction contemplated by
the Restructuring Agreement or at any adjournment thereof or in any
other circumstances upon which a vote, consent or other approval
(including by written consent) with respect to such matters is
sought, each Stockholder shall vote (or cause to be voted), or
shall consent, execute a consent or cause to be executed a consent
in respect of, all Shares owned by such Stockholder in favor of the
issuance of the Resulting Shares, the issuance of the COD Shares,
the approval and adoption of the COD Amendment and the approval of
any other transactions contemplated by the Restructuring Agreement,
but subject in all respects to Section 7 hereof. For the
avoidance of doubt, nothing in this Agreement shall be deemed to
require any Stockholder to exercise or convert any of such
Stockholder’s Stockholder Rights into or for any Common Stock
or Preferred Stock.

 

 

4

 

 

(d) Such Stockholder
agrees to permit the Company to publish and disclose in the
Preliminary Proxy Statement, the Definitive Proxy Statement and
related filings under the securities laws such Stockholder’s
identity and ownership of Shares and the nature of its commitments,
arrangements and understandings under this Agreement and any other
information required by applicable law.

 

Section
4. Grant of Irrevocable Proxy;
Appointment of Proxy.

 

(a) Each Stockholder
hereby irrevocably grants to, and appoints, Anthony C. Schnur, and
any other individual who shall hereafter be designated by the
Company, such Stockholder’s proxy and attorney-in-fact (with
full power of substitution), for and in the name, place and stead
of such Stockholder, to vote such Stockholder’s Shares, or
grant a consent or approval in respect of such Shares, at any
meeting of stockholders of the Company or at any adjournment
thereof or in any other circumstances upon which their vote,
consent or other approval is sought, in favor of the issuance of
the Resulting Shares, the issuance of the COD Shares, the approval
and adoption of the COD Amendment and the approval of any other
transactions contemplated by the Restructuring Agreement, in
accordance with the terms hereof, but subject in all respects to
Section 7
hereof.

 

(b) Each Stockholder
represents that any existing proxies given in respect of such
Stockholder’s Shares are not irrevocable, and that any such
proxies are hereby revoked.

 

(c) Each Stockholder
hereby affirms that the irrevocable proxy set forth in this
Section 4 is given
in connection with the execution of the Restructuring Agreement,
and that such irrevocable proxy is given to secure the performance
of the duties of such Stockholder under this Agreement. Such
Stockholder hereby further affirms that the irrevocable proxy is
coupled with an interest and may under no circumstances be revoked,
subject to Section
7 herein. Such Stockholder hereby ratifies and confirms all
that such irrevocable proxy may lawfully do or cause to be done by
virtue hereof. Such irrevocable proxy is executed and intended to
be irrevocable in accordance with applicable law. Such irrevocable
proxy shall be valid until the termination of this Agreement
pursuant to Section
7 herein, at which time such irrevocable proxy shall
terminate.

 

Section
5. Adjustments Upon Share Issuances,
Changes in Capitalization. In the event of any change in
Common Stock or in the number of outstanding shares of Common Stock
by reason of a stock dividend, subdivision, reclassification,
recapitalization, split, combination, exchange of shares or other
similar event or transaction or any other change in the corporate
or capital structure of the Company (including, without limitation,
the declaration or payment of an extraordinary dividend of cash,
securities or other property), and consequently the number of
Shares changes or is otherwise adjusted, this Agreement and the
obligations hereunder shall attach to any additional shares of
Common Stock, Preferred Stock, stockholder rights or other
securities or rights of the Company issued to or acquired by each
of the Stockholders.

 

 

5

 

 

Section
6. Further Assurances. Each
Stockholder will, from time to time, execute and deliver, or cause
to be executed and delivered, such additional or further transfers,
assignments, endorsements, consents and other instruments as the
Yuma Parties may reasonably request for the purpose of effectively
carrying out the transactions contemplated by this Agreement and to
vest the power to vote such Stockholder’s Shares as
contemplated by Section
3 herein.

 

Section
7. Termination. This Agreement,
and all rights and obligations of the parties hereunder, shall
terminate upon the earlier of (a) the Closing and (b) the date upon
which the Restructuring Agreement is terminated pursuant to Section
8.1 thereof. Notwithstanding the foregoing, Sections 7, 8 and 9 hereof shall survive any
termination of this Agreement.

 

Section
8. Action in Stockholder Capacity
Only. No Stockholder executing this Agreement who is or
becomes during the term hereof a director or officer of the Company
makes any agreement or understanding herein in his or her capacity
as such director or officer. Each Stockholder signs solely in its
capacity as the record holder and beneficial owner of, or the
trustee of a trust whose beneficiaries are the beneficial owners
of, such Stockholder’s Shares and nothing herein shall limit
or affect any actions or omissions taken by or fiduciary duties of,
a Stockholder or any of its affiliates, in his or her capacity as
an officer or director of the Company to the extent permitted by
the Restructuring Agreement and applicable law.

 

Section
9. Miscellaneous.

 

(a) Assignment. Neither this Agreement nor
any of the rights, interests or obligations hereunder shall be
assigned by any of the parties hereto without the prior written
consent of the other parties. Subject to the preceding sentence,
this Agreement will be binding upon, inure to the benefit of and be
enforceable by the parties and their respective successors and
assigns. Each Stockholder agrees that this Agreement and the
obligations of such Stockholder hereunder shall attach to such
Stockholder’s Shares and shall be binding upon any person or
entity to which legal or beneficial ownership of such Shares shall
pass, whether by operation of law or otherwise, including without
limitation such Stockholder’s heirs, guardians,
administrators or successors.

 

(b) Expenses. Except as set forth in the
Restructuring Agreement, all costs and expenses incurred in
connection with this Agreement and the transactions contemplated
thereby shall be paid by the party incurring such
expenses.

 

(c) Amendments. This Agreement may not be
amended except vis-à-vis the Company and a Stockholder by an
instrument in writing signed by the Company and the applicable
Stockholder and in compliance with applicable law.

 

(d) Notice. All notices and other
communications hereunder shall be in writing and shall be deemed
duly given if delivered personally, mailed by registered or
certified mail (return receipt requested) or delivered by Federal
Express or other nationally recognized overnight courier service to
the parties at the following addresses (or at such other address
for a party as shall be specified by like notice):

 

 

6

 

 

(i)         if
to a Stockholder, to the address set forth under the name of such
Stockholder on Schedule
A hereto

 

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

 

 

	

Munger
Tolles & Olson LLP

	

350
South Grand Avenue, 50th Floor

	

Los
Angeles, CA 90071

	

Attention:

	

C.
David Lee

	
 

	

Jennifer
M. Broder

 

and

 

(ii)         if
to the Yuma Parties:

 

	

Yuma
Energy, Inc.

	

1177
West Loop South, Suite 1825

	

Houston,
TX 77027

	

Attention:

	

Anthony
C. Schnur

 

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

 

	

Jones
& Keller, P.C.

	

1999
Broadway, Suite 3150

	

Denver,
CO 80202

	

Attention:

	

Reid A.
Godbolt

	
 

	

Adam J.
Fogoros

 

(e) Interpretation. The headings contained
in this Agreement are for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement.
In this Agreement, unless a contrary intention appears, (i) the
words “herein,” “hereof” and
“hereunder” and other words of similar import refer to
this Agreement as a whole and not to any particular Section or
other subdivision and (ii) reference to any Section means such
Section hereof. No provision of this Agreement shall be interpreted
or construed against any party hereto solely because such party or
its legal representative drafted such provision.

 

(f) Counterparts. This Agreement may be
executed in two or more counterparts, each of which shall be deemed
an original but all of which shall be considered one and the same
agreement. Delivery of an executed counterpart signature page of
this Agreement by facsimile or by e-mail of a PDF document is as
effective as executing and delivering this Agreement in the
presence of the other parties.

 

 

7

 

 

(g) Entire Agreement. This Agreement
constitutes the entire agreement of the parties and supersedes all
prior agreements and undertakings, both written and oral, among the
parties, or between any of them, with respect to the subject matter
hereof, and except as otherwise expressly provided herein, is not
intended to confer upon any other person any rights or remedies
hereunder.

 

(h) Governing Law; Consent to Jurisdiction; Waiver
of Trial by Jury. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Delaware,
without regard to laws that may be applicable under conflicts of
laws principles. Each of the parties hereto irrevocably and
unconditionally (i) agrees that any suit, action or other legal
proceeding arising out of or relating to this Agreement or any of
the agreements delivered in connection herewith or the transactions
contemplated hereby or thereby shall be brought in the state courts
of the State of Delaware (or, if such courts do not have
jurisdiction or do not accept jurisdiction, in the United States
District Court located in the State of Delaware), (ii) consents to
the jurisdiction of any such court in any such suit, action or
proceeding, and (iii) waives any objection that such party may have
to the laying of venue of any such suit, action or proceeding in
any such court. Each of the parties hereto agrees that a final
judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law. Each party to this Agreement
irrevocably consents to service of process in the manner provided
for notices in Section
9(d). Nothing in this Agreement will affect the right of any
party to this Agreement to serve process in any other manner
permitted by law.

 

EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE
UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO
THIS AGREEMENT AND ANY OF THE AGREEMENTS DELIVERED IN CONNECTION
HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH
PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT
OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE EITHER OF SUCH WAIVERS, (B) IT
UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVERS,
(C) IT MAKES SUCH WAIVERS VOLUNTARILY, AND (D) IT HAS BEEN INDUCED
TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION 9(h).

 

(i) Specific Performance. The parties to
this Agreement agree that irreparable damage would occur in the
event that any provision of this Agreement was not performed in
accordance with the terms of this Agreement and that the Company
shall be entitled to specific performance of the terms of this
Agreement without the posting of any bond or security in addition
to any other remedy at law or equity.

 

 

 

8

 

 

(j) Severability. If any term, provision,
covenant or restriction of this Agreement is held by a court of
competent jurisdiction or other authority to be invalid, void,
unenforceable or against its regulatory policy, the remainder of
the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be
affected, impaired or invalidated.

 

(k) Several Liability. Each party to this
Agreement enters into this Agreement solely on its own behalf, each
such party shall solely be severally liable for any breaches of
this Agreement by such party and in no event shall any party be
liable for breaches of this Agreement by any other party
hereto.

 

(l) Non-Recourse. No past, present or
future director, officer, employee, incorporator, member, partner,
stockholder, agent, attorney, representative or affiliate of any
Stockholder hereto or of any of their respective Affiliates shall
have any liability (whether in contract or in tort) for any
obligations or liabilities of such party arising under, in
connection with or related to this Agreement or for any claim based
on, in respect of, or by reason of, the transactions contemplated
hereby; provided,
however, that
nothing in this Section
9(l) shall limit any liability of any Stockholder hereto for
its breaches of the terms and conditions of this
Agreement.

 

(m) Ownership Interest. Nothing contained
in this Agreement shall be deemed to vest in the Yuma Parties any
direct or indirect ownership or incidence of ownership of or with
respect to any Stockholder’s Shares. All rights, ownership
and economic benefits of and relating to each Stockholder’s
Shares shall remain vested in and belong to such Stockholder, and
the Yuma Parties shall have no authority to direct any Stockholder
in the voting or disposition of any of such Stockholder’s
Shares, except as otherwise provided in this
Agreement.

 

(n) Waiver. No failure or delay by any
party hereto in exercising any right, power or privilege hereunder
shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or
the exercise of any other right, power or privilege. The rights and
remedies herein provided shall be cumulative and not exclusive of
any rights or remedies provided by applicable law.

 

[Signature Page Follows]

 

 

9

 

 

IN WITNESS WHEREOF, the Company has
caused this Agreement to be signed by its officer thereunto duly
authorized and each Stockholder has signed this Agreement, all as
of the date first written above.

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

YUMA
ENERGY, INC.

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

By:

	

/s/
Anthony C. Schnur

	
 

	
 

	

Name:

	

Anthony
C. Schnur

	
 

	
 

	

Title:

	

Interim
Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

	
 

	

YUMA
EXPLORATION AND PRODUCTION COMPANY, INC.

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

By:

	

/s/
Anthony C. Schnur

	
 

	
 

	

Name:

	

Anthony
C. Schnur

	
 

	
 

	

Title:

	

Interim
Chief Executive Officer

 

 

	
 

	
 

	
 

	
 

	
 

	

PYRAMID
OIL LLC

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

By:

	

/s/
Anthony C. Schnur

	
 

	
 

	

Name:

	

Anthony
C. Schnur

	
 

	
 

	

Title:

	

Interim
Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

 

 

	
 

	
 

	

DAVIS
PETROLEUM CORP.

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

By:

	

/s/
Anthony C. Schnur

	
 

	
 

	

Name:

	

Anthony
C. Schnur

	
 

	
 

	

Title:

	

Interim
Chief Executive Officer

 

 

 

10

 

 

VOTING
AGREEMENT

STOCKHOLDER
SIGNATURE PAGE

   

	
 

	
 

	

STOCKHOLDER:

	
 

	
 

	
 

	
 

	
 

	

RMCP
PIV DPC, LP

	
 

	
 

	
 

	
 

	
 

	

By:            RMCP
DPC LLC, its general partner

	
 

	
 

	
 

	
 

	
 

	

By: Red
Mountain Capital Partners LLC, its managing member

	
 

	
 

	
 

	
 

	
 

	
 

	

By:

	

/s/
Willem Mesdag

	
 

	
 

	

Name:

	

Willem
Mesdag

	
 

	
 

	

Title:

	

Managing
Member

 

 

 

	
 

	
 

	

STOCKHOLDER:

	
 

	
 

	
 

	
 

	
 

	

RMCP
PIV DPC II, LP

	
 

	
 

	
 

	
 

	
 

	

By:            RMP
DPC II LLC, its general partner

	
 

	
 

	
 

	
 

	
 

	

By: Red
Mountain Capital Partners LLC, its managing member

	
 

	
 

	
 

	
 

	
 

	
 

	

By:

	

/s/
Willem Mesdag

	
 

	
 

	

Name:

	

Willem
Mesdag

	
 

	
 

	

Title:

	

Managing
Member

 

 

	
 

	
 

	

STOCKHOLDER:

	
 

	
 

	
 

	
 

	
 

	

Red
Mountain Capital Partners LLC

	
 

	
 

	
 

	
 

	
 

	
 

	

By:

	

/s/
Willem Mesdag

	
 

	
 

	

Name:

	

Willem
Mesdag

	
 

	
 

	

Title:

	

Managing
Member

 

11

 

 

SCHEDULE A

 

 
OWNERSHIP OF
SHARES

 

	
Name and Address
of Stockholder

	
 
Number of Shares
of Common Stock Beneficially Owned

 

	
 
Number of Shares
of Series D Preferred Stock Beneficially Owned

 

	
 

	
 
 

 

	
 
 

 

	
RMCP PIV DPC,
LP

	
  - 

	
  - 

	
c/o Red Mountain
Capital Partners LLC

	
    

	
    

	
10250 Constellation
Blvd, Suite 2300 Los Angeles, CA 90067

	
    

	
    

	
Attention: Willem
Mesdag

	
  168,337 

	
  - 

	
 

	
    

	
    

	
RMCP PIV DPC II,
LP

	
    

	
    

	
c/o Red Mountain
Capital Partners LLC

	
    

	
    

	
10250 Constellation
Blvd, Suite 2300 Los Angeles, CA 90067

	
    

	
    

	
Attention: Willem
Mesdag

	
  - 

	
  2,136,670 

	
 

	
    

	
    

	
 

	
    

	
    

	
Red Mountain
Capital Partners LLC

	
    

	
    

	
10250 Constellation
Blvd, Suite 2300 Los Angeles, CA 90067

	
    

	
    

	
Attention: Willem
Mesdag

	
  5,200 

	
    

	
 

	
    

	
    

	
 

	
    

	
    

	
 

	
    

	
    

 

 

 

12

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