Document:

nk-ex104_390.htm

Exhibit 10.4

October 20, 2020

 

Richard Adcock

 

 

RE: Offer of Employment

 

Dear Richard:

 

I am pleased to offer you a position with NantKwest, Inc. (the “Company”) as its Chief Executive Officer, effective October 26, 2020 (the “Effective Date”). You will report through the Company’s offices in Culver City, CA. You will report to the Company’s Board of Directors. In this position, your duties will include the duties set forth in Exhibit A hereto, in addition to other duties that may be assigned to you from time to time. The terms of our offer are as follows:

 

1.Starting Salary.  Your starting salary will be $750,000.00 if you work an entire year, to be paid in accordance with the Company’s payroll practices in effect from time to time. The Company may withhold from all amounts payable to you such federal, state and local taxes as may be required to be withheld pursuant to applicable law or regulation.

2.Bonus.  You shall be eligible to participate in the annual discretionary bonus plan for this position. The discretionary target bonus is fifty percent (50%) of your base salary (i.e., $375,000), subject to such performance targets and other factors, as may be determined in the sole and absolute discretion of the Company’s Board of Directors. You will first be eligible to participate in the bonus plan for the 2020 calendar year (payable in 2021 and prorated for the partial year). In the first full calendar year of employment (i.e., for the 2021 calendar year), you will be paid no less than fifty (50%) of target (e.g. $187,500.00), with an opportunity to receive payment at or above target; in subsequent calendar years, your target bonus will be subject to such performance targets and other factors as may be determined in the sole and absolute discretion of the Company’s Board of Directors. As the annual bonus is subject to the attainment of performance targets, it may be paid at, above or below target levels. In order to receive any bonus payment, you must remain continuously employed through, and still be employed by the Company on, the date any such bonus is paid. An employee earns a bonus only if employed on payment day and has not indicated an intent to resign.

3.Benefits.  During your employment with the Company, you will be eligible to participate in any regular health insurance, retirement and other employee benefit plans established by the Company for its employees from time to time. Benefits, if any, will be subject to satisfaction of eligibility requirements and the plan terms. The Company’s benefit plans are subject to amendment, modification or termination by the Company at any time. Without limiting the generality of the foregoing, during the term of employment hereunder, the Company will reimburse the costs associated with Employee’s current two (2) life insurance policies (approximately $30,000.00 annually in the aggregate). The Company may withhold from all amounts payable to you such federal, state and local taxes as may be required to be withheld pursuant to applicable law or regulation. As a regular full-time exempt employee, you are eligible to participate in an informal flexible time off program: employees have the authority to use their judgment and discretion and take temporary periods of time away from work as vacation, without loss of pay, as their work permits.

4.Equity.  In addition, if you decide to join us, subject to the approval of the Company’s compensation committee of the Board of Directors, you shall be granted a stock option to purchase 1,000,000 shares of the Company’s common stock pursuant to the Company’s Amended and Restated 2015 Equity Incentive Plan (the “Plan”). The stock options will have an exercise price equal to the fair market value on the date of grant (i.e., the closing price as reported on Nasdaq on the date of grant). The options to be granted (subject to approval by the Company’s compensation committee) shall vest over time according to the following vesting schedule: (i) 25% of the options (i.e., 250,000 options) shall vest on January 1, 2021; and (ii) the remaining 75% of the options shall vest in equal annual installments over a period of three years from the Effective Date (i.e., 25% of the shares subject to the stock option, or 250,000 stock options, shall vest on each of November 1, 2021, November 1, 2022 and November 1, 2023). No right to any stock is earned or accrued until such time that vesting occurs, nor does this grant confer any right to continue vesting or employment. This equity award shall be subject to the terms and conditions of the Plan and award agreement governing the stock option grant.

3530 John Hopkins Ct., San Diego, CA 92121

Main: (858) 633-0300  Fax: (858) 380-1999  www.NantKwest.com

Richard Adcock

Page 2

5.Severance.  In the event that the Company terminates your employment without Cause (as defined below) after the Effective Date, the Company shall pay you a single cash payment equal to twelve (12) months of your then-current annual base salary (i.e., $750,000.), less all applicable federal, state, and local withholdings and deductions. Such payment shall be made within two and one-half (2.5) months following the date on which the termination occurs, subject to any required delay to satisfy the requirements of Section 409A as provided below. Your receipt of any payment under this paragraph shall be contingent upon your signing of a general release agreement in favor of and satisfactory to the Company within the thirty (30) day period following your termination date and your non-revocation of such release agreement during any statutorily-provided revocation period. For the avoidance of doubt, if (i) you resign from or otherwise terminate your employment with the Company at any time, (ii) the Company terminates your employment for Cause, or (iii) your employment is terminated by reason of death or Disability, you will not be eligible for any severance payment.

For purposes of this offer letter, “Cause” shall mean any of the following: (a) a material breach of any agreement you have with the Company, including, but not limited to, a confidentiality agreement, or any policy of the Company, and such material breach is not cured to the reasonable satisfaction of the Company within twenty (20) days after written notice to you; (b) conviction of a felony or any other crime involving dishonesty, breach of trust, moral turpitude, or physical harm to any person (including, but not limited to, the Company or any of its employees); (c) an act of fraud, misconduct, or dishonesty in connection with the business of the Company; (d) failure to satisfactorily or adequately perform your duties hereunder as reasonably determined by the Company, including, but not limited to, your inability to achieve goals, inability to work with others, insubordination or excessive tardiness, or failure to implement or follow a lawful policy or directive of the Company, and in each case such failure continues for a period of twenty (20) days after written notice to you; (e) your receipt of a Final Written Warning for any reason; or (f) insobriety or other substance abuse during work activities. For purposes of this offer letter, “Disability” shall mean (i) you become eligible for the Company’s long-term disability benefits or (ii) in the opinion of the Company, you have been unable to carry out your responsibilities and functions by reason of any physical or mental impairment for more than ninety (90) consecutive days or more than one hundred twenty (120) days in any twelve (12) month period.

To the extent necessary to comply with Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”) (relating to payments made to certain “key employees” of certain publicly-traded companies), any severance payments payable to you under the terms of paragraph 6 which constitute deferred compensation subject to Code Section 409A to which you would otherwise be entitled during the six (6) month period immediately following your separation from service will be paid on the earlier of (i) the first business day following the expiration of such six (6) month period or (ii) your death. You and the Company shall reasonably cooperate with each other to avoid the imposition of any additional taxes, interest and/or penalty to you under Section 409A of the Code.

6.Confidentiality.  As an employee of the Company, you will have access to certain confidential information of the Company and you may, during the course of your employment, develop certain information or inventions that will be the property of the Company. As a condition of your employment, you are also required to sign and comply with an At‐Will Employment, Confidential Information, Invention Assignment and Arbitration Agreement which requires, among other provisions, the assignment of patent rights to any invention made during your employment at the Company, and non‐disclosure of Company proprietary information. In the event of any dispute or claim relating to or arising out of our employment relationship, you and the Company agree that (i) any and all disputes between you and the Company shall be fully and finally resolved by binding arbitration, (ii) you are waiving any and all rights to a jury trial but all court remedies will be available in arbitration, (iii) all disputes shall be resolved by a neutral arbitrator who shall issue a written opinion, (iv) the arbitration shall provide for adequate discovery, and (v) the Company shall pay all the arbitration fees, except an amount equal to the filing fees you would have paid had you filed a complaint in a court of law. Please note that we must receive your signed Agreement before your first day of employment.

 

7.At Will Employment.  While we look forward to a long and profitable relationship, should you decide to accept our offer, you will be an at-will employee of the Company, which means either the Company or you can terminate the employment relationship for any reason, at any time, with or without prior notice and with our without cause. Any statements or representations to the contrary (and, indeed, any statements contradicting any provision in this letter) should be regarded by you as ineffective. Further, your participation in any benefit program is not intended to, and does not confer on you, any right to continued employment for any particular period of time. Any modification or change in your at will employment status may only occur by way of a written employment agreement signed by you and a member of the Company’s board of directors.

3530 John Hopkins Ct., San Diego, CA 92121

Main: (858) 633-0300  Fax: (858) 380-1999  www.NantKwest.com

Richard Adcock

Page 3

8.Performance of Duties.  You shall devote your full time and attention to your duties and the performance of the services and shall serve the Company diligently and to your best abilities. Your services shall be exclusive to the Company during the term hereof, and you shall not accept any other employment or position, or engage in any other business enterprise, of any nature, without the prior written consent of the Company. The Company acknowledges that from time to time you may provide advisory services to certain affiliates of the Company. Notwithstanding the foregoing, nothing in this Paragraph 8 shall restrict your incidental engagement with or employment by any not-for-profit charities, religious organizations or other similar enterprises.

9.Authorization to Work.  Please note that because of employer regulations adopted in the Immigration Reform and Control Act of 1986, within three (3) business days of starting your new position you will need to present documentation demonstrating that you have authorization to work in the United States. If you have questions about this requirement, which applies to U.S. citizens and non-U.S. citizens alike, you may contact our personnel office.

10.Background Check.  This offer is contingent upon a successful employment verification of criminal, education, employment background and a drug screening. This offer can be rescinded based upon data received in the verification.

11.Miscellaneous.  The terms of this offer letter and the relationship of the parties in connection with the subject matter hereof will be construed and enforced according to the laws of the State of Delaware, without giving effect to the conflicts of the law rules. Notwithstanding anything else herein, this Agreement is personal to you and neither the Agreement nor any rights hereunder may be assigned by you. The Company may assign this Agreement to any of its affiliates or to any successor to all or substantially all of the business and/or assets of the Company which assumes in writing or by operation of law, the obligations of the Company hereunder.

12.Acceptance.  This offer will remain open until October 20, 2020. If you decide to accept our offer, and I hope you will, please sign the enclosed copy of this letter in the space indicated and return it to me. Your signature will acknowledge that you have read and understood and agreed to the terms and conditions of this offer letter and the attached documents, if any. Should you have anything else that you wish to discuss, please do not hesitate to call me.

We look forward to the opportunity to welcome you to the Company.

 

		
	
 
	
Very truly yours,

	
 
	
 

	
 
	
/s/ Nancy V. Antoniou

	
 
	
Name: Nancy V. Antoniou

	
 
	
Title: Chief Human Resources Officer

 

 

I have read and understood this offer letter and hereby acknowledge, accept and agree to the terms as set forth above including that I am an at-will employee and further acknowledge that no other commitments were made to me as part of my employment offer except as specifically set forth herein.

 

			
	
/s/ Richard Adcock
	
 
	
 

	
Name: Richard Adcock
	
 
	
Date signed: 10-20-2020

 

 

 

 

Enclosures

Original Letter

Exhibit A

 

3530 John Hopkins Ct., San Diego, CA 92121

Main: (858) 633-0300  Fax: (858) 380-1999  www.NantKwest.com

 

EXHIBIT A

 

 

ESSENTIAL FUNCTIONS:

 

Job Duties to be determined by the Board of Directors

3530 John Hopkins Ct., San Diego, CA 92121

Main: (858) 633-0300  Fax: (858) 380-1999  www.NantKwest.comExhibit 10.1

 

ASSET
PURCHASE AND SALE AGREEMENT

 

by
and between

 

Newbridge
Resources LLC.

 

as
“Seller”

 

and

 

New
Horizon Resources LLC, A wholly owned subsidiary of US Energy Corp.,

 

as “Buyer”

 

Dated
as of November 9th, 2020

 

    	 	 	 

     

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	ARTICLE
    I	Properties
    To Be Sold and Purchased	1
	 	Section
    1.1.	Assets
    Included	1
	ARTICLE
    II	Purchase
    Price	2
	 	Section
    2.1.	Purchase
    Price	2
	 	Section
    2.2.	Accounting
    Adjustments	2
	 	Section
    2.3.	Closing
    and Post-Closing Accounting Settlements	3
	 	Section
    2.4.	Payment
    of Deposit and Adjusted Purchase Price	4
	ARTICLE
    III	The
    Closing	4
	ARTICLE
    IV	Miscellaneous
    Matters	4

 

Exhibits

A-1
Leases

A-2
Wells

A-3
Rights of Way

A-4
Real Property

A-5
Vehicles

 

    	 	ii	 

     

    

 

ASSET
PURCHASE AND SALE AGREEMENT

 

THIS
ASSET PURCHASE AND SALE AGREEMENT dated November 9, 2020, is made by and between Newbridge Resources LLC, a Delaware LIMITED
LIABILITY COMPANY (NBR), referred to as (“Seller”), and New Horizon Resources LLC, a North Dakota Limited Liability
Company, and wholly owned subsidary of US energy corp, authorized to do business in the State of Texas (“NHR”) referred
to as (“Buyer”).

 

RECITALS:

 

A.
Seller desires to sell, assign and convey to Buyer, and Buyer desires to purchase and accept from Seller, certain oil and
gas properties and related assets of NBR

 

B. Seller
and Buyer deem it in their mutual best interests to execute and deliver this Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing Recitals and the mutual covenants and agreements contained herein, Seller and
Buyer do hereby agree as follows:

 

AGREEMENT:

 

ARTICLE
I

Properties
To Be Sold and Purchased

 

Section
1.1. Assets Included. Subject to Section 1.2, Seller agrees to sell and Buyer agrees to purchase, for the
consideration hereinafter set forth, and subject to the terms and provisions herein contained, the following described properties,
rights and interests:

 

(a)
All right, title and interest of Seller in and to the Leases and Wells described on Exhibits A-1 & A-2 attached
hereto and made a part hereof for all purposes (and any ratifications and/or amendments to such Leases, whether or not such
ratifications or amendments are described on such Exhibit A-1);

 

(b)
Without limitation of the foregoing but subject to Section 1.2, all other right, title and interest (of whatever kind
or character, whether legal or equitable, and whether vested or contingent) of Seller in and to the oil, gas, and other
minerals in and under or that may be produced from the lands described in Exhibits A-1, A-2, A-3, and A-4
hereto or described in any of the Leases described on such Exhibit A-1 (including interests in Leases, overriding
royalties, production payments and net profits interests in such lands or such Leases, and fee mineral interests, fee royalty
interests, and other interests in so far as they cover such lands), even though Seller’s interest therein may be
incorrectly described in, or omitted from, such Exhibits A-1, A-2, A-3, and A-4;

 

(c)
All rights, titles and interests of Seller in and to, or otherwise derived from, all presently existing and valid oil, gas,
or mineral unitization, pooling, or communitization agreements, declarations, and/or orders and in and to the properties
covered and the units created thereby (including all units formed under orders, rules, regulations, or other official acts of
any federal, state, or other authority having jurisdiction, voluntary unitization agreements, designations and/or
declarations) relating to the properties described in paragraphs (a) and (b) above;

 

    	 	1	 

     

    

 

(d)
All rights, titles, and interests of Seller in and to all materials, assets, supplies, machinery, equipment, improvements and
other personal property and fixtures (including but not limited to all wells, wellhead equipment, pumping units, flowlines,
tanks, buildings, injection facilities, saltwater disposal facilities, compression facilities, gathering systems, and other
equipment and assets), and all easements, rights-of-way, surface leases and other surface rights, all Permits, and all other
appurtenances being exclusively used and held for in connection with, the exploration, development, production, operation or
maintenance of the properties described in paragraphs (a), (b), (c), (d), and (e)
contained within Section 1.1,;

 

(e)
Subject to any third party rights, all of Seller’s lease files, title files, title opinions, assignments, division
orders, operating records, operating agreements, production records, well files, financial and accounting records, seismic
records and surveys, maps (including gravity maps and ownership maps), logs (including electric logs), geological,
geophysical and engineering data and records (including geological and geophysical data that is interpretative in nature),
and other files, documents and records of every kind and description which exclusively relate to the properties described
above (the “Records”).

 

(f)
The vehicles described on Exhibit A-5;

 

ARTICLE
II

Purchase
Price

 

Section
2.1. Purchase Price. In consideration
of the sale of the Properties by Seller to Buyer, Seller shall be issued common stock of U.S. Energy Corp. (NASDAQ: USEG) (“Common
Stock”) equivalent to the amount of TWO HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($250,000.00) (the “Purchase
Price”). The Purchase Price, as adjusted pursuant to this Article II and the other applicable provisions hereof,
is herein called the “Adjusted Purchase Price”.

 

Section
2.2. Accounting Adjustments.

 

(a)
Subject to Section 2.2(b), and in addition to other adjustments to the Purchase Price provided for in this Agreement,
appropriate adjustments shall be made between Buyer and Seller so that:

 

(i)
all expenses (including all drilling costs, all capital expenditures, and all overhead administrative charges under
applicable operating agreements, and all other operating costs actually charged by third parties) for work done in the
operation of the Properties on or after the Effective Date will be borne by Buyer, and all revenue and proceeds (net of
applicable gathering, transportation charges as well as production, severance, and similar Taxes) from the sale of oil, gas
or other minerals produced from the Oil and Gas Properties on or after the Effective Date will be received by, or paid to,
Buyer; and

 

    	 	2	 

     

    

 

(ii)
all expenses for work done in the operation of the Properties before the Effective Date will be borne by Seller and all
revenues and proceeds (net of applicable production, severance, and similar Taxes) from the sale of oil, gas, or other
minerals produced therefrom before the Effective Date will be received by, or paid to, Seller.

 

(b)
It is agreed that, in making the adjustments contemplated by Section 2.2(a):

 

(i)
Oil which was produced from the Oil and Gas Properties and which was, on the Effective Date, stored in tanks, above the load
line, but without taking into account tank bottom sediment and water, located on the Oil and Gas Properties (or located
elsewhere but used to store oil produced from the Oil and Gas Properties prior to delivery to oil purchasers) and above
pipeline connections shall be deemed to have been produced before the Effective Date (it is recognized that such tanks were
not gauged on the Effective Date for the purposes of this Agreement and that determination of the volume of such oil in
storage will be based on the best available data, which may include estimates),

 

(ii)
ad valorem Taxes assessed with respect to a period which begins before and ends on or after the Effective Date shall be
prorated based on the number of days in such period which fall on each side of the Effective Date (with the day on which the
Effective Date falls being counted in the period after the Effective Date), and

 

(iii)
no consideration shall be given to the local, state, or federal income tax liabilities of any Party.

 

Section
2.3. Closing and Post-Closing Accounting Settlements.

 

(a)
On or before 90 days after Closing, Buyer and Seller shall review any additional information which may then be available
pertaining to the adjustments provided for in Section 2.2, shall determine if any additional adjustments (whether the
same be made to account for expenses or revenues not considered in making the adjustments made at Closing, or to correct
errors made in such adjustments) should be made beyond those made at Closing, and shall make any such adjustments by
appropriate payments from Seller to Buyer or from Buyer to Seller. Following such additional adjustments, no further
adjustments to the Purchase Price shall be made under this Section 2.3.

 

(b)
If a dispute arises under Section 2.3(b) with respect to any additional adjustments (an “Accounting
Dispute”) that the Parties have been unable to resolve prior to the end of the 90 day period in Section
2.3(b) above, then, at the written request of either Seller or Buyer (the “Request Date”), each of
Seller and Buyer shall nominate and commit one of their senior officers to meet at a mutually agreed time and place not later
than ten days after the Request Date to attempt to resolve same. If such senior officers have been unable to resolve such
Accounting Dispute within a period of 30 days after the Request Date, any Party shall have the right, by written notice to
the other specifying in reasonable detail the basis for the Accounting Dispute, to resolve the Accounting Dispute by
submission thereof to an independent public accounting firm mutually agreeable to the Parties, which firm shall serve as sole
arbitrator (the “Accounting Referee”). The scope of the Accounting Referee’s engagement shall be
limited to the resolution of the items described in the notice of the Accounting Dispute given in accordance with the
foregoing and the corresponding calculation of the adjustments pursuant to Section 2.2. The Accounting Referee shall
be instructed by the Parties to resolve the Accounting Dispute as soon as reasonably practicable in light of the
circumstances but in no event in excess of 15 days following the submission of the Accounting Dispute to the Accounting
Referee. The decision and award of the Accounting Referee shall be binding upon the Parties as an award under the Federal
Arbitration Act and final and non-appealable to the maximum extent permitted by Law, and judgment thereon may be entered in a
court of competent jurisdiction and enforced by any Party as a final judgment of such court. The fees and expenses of the
Accounting Referee shall be borne equally by Seller and Buyer.

 

    	 	3	 

     

    

 

Section
2.4. Payment of Purchase Price and Adjusted Purchase
Price. The Deposit and Adjusted Purchase Price shall be paid to Seller as follows:

 

(a)
At the Closing, Buyer shall pay to Seller $250,000.00 in stock in US Energy Corporation (NASDAQ: USEG). Stock is to be priced
per the attached Appendix II.

 

(b)
All cash payments by Buyer to Seller at Closing pursuant to this Section 2.4 shall be made in immediately available
funds by confirmed federal wire transfer to a bank account or

 

ARTICLE
III

The
Closing

 

The
closing of the transactions contemplated hereby (the “Closing”) shall take place (i) at 10:00 CST at 1 Riverway,
Suite 1025, Houston, TX 77056 on or before December 5, 2020, or (ii) at such other time or place or on such other date as the
Parties shall agree. The date on which the Closing takes place is herein referred to as the “Closing Date”.
All Closing transactions shall be deemed to have occurred simultaneously.

 

Section
3.1. Further Assurances. At the Closing, and from time to time following the Closing, at the request of any Party and
without further consideration, the other Party shall execute and deliver to such requesting Party such instruments and
documents and take such other action (but without incurring any material financial obligation) as such requesting Party may
reasonably request in order to consummate more fully and effectively the transactions contemplated hereby.

 

ARTICLE
IV

Miscellaneous
Matters

 

Section
4.1. Notices. All notices, requests, demands, and other communications required or permitted to be given or made
hereunder by any Party shall be in writing and shall be deemed to have been duly given or made if (i) delivered personally,
(ii) transmitted by first class registered or certified mail, postage prepaid, return receipt requested, (iii) sent by a
recognized prepaid overnight courier service (which provides a receipt), or (iv) sent by email, facsimile transmission, with
receipt acknowledged, to the Parties at the following addresses (or at such other addresses as shall be specified by the
Parties by like notice):

 

    	 	4	 

     

    

 

If
to Seller:

 

NBR
LLC.

1
Riverway Suite 1025

Houston,
Texas 77056

ATTENTION:
CEO

E-mail:
rfoss@pceclp.com

 

If
to Buyer:

 

US
Energy Corporation

Attn:
Ryan Smith, CEO

675
Bering Street, Suite 100

Houston,
TX 77056

E-mail:
Ryan@USNRG.com

 

Such
notices, requests, demands, and other communications shall be effective upon receipt

 

Section
4.2. No Representations and Warranties. SELLER MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN
EQUITY, IN RESPECT OF THE PROPERTIES OR THE RECORDS, ITS LIABILITIES OR OPERATIONS. BUYER HEREBY ACKNOWLEDGES AND AGREES THAT
BUYER IS PURCHASING THE PROPERTIES ON AN “AS-IS” “WHERE IS” “WITH ALL FAULTS” BASIS SUBJECT
TO SELLER’S OBLIGATIONS HEREUNDER.

 

Section
4.3. Governing Law and Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the laws
of the State of Texas, without reference to its choice of law provisions. All actions arising out of or relating to this
Agreement shall be heard and determined exclusively in any Texas federal court sitting in Harris County Texas, Houston Texas provided:
however, that if such federal court does not have jurisdiction over such action, such action shall be heard and
determined exclusively in any Texas state court sitting in Harris County, Houston Texas. Consistent with the preceding
sentence, the parties hereto hereby (a) submit to the exclusive jurisdiction of any federal or state court sitting in Harris
County, Houston Texas for the purpose of any action arising out of or relating to this Agreement brought by any party hereto
and (b) irrevocably waive, and agree not to assert by way of motion, defense, or otherwise, in any such action, any claim
that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from
attachment or execution, that the action is brought in an inconvenient forum, that the venue of the action is improper, or
that this Agreement or the transactions contemplated by this Agreement may not be enforced in or by any of the above-named
courts.

 

Section
4.4. Waiver of Jury Trial. Each of the parties hereto hereby waives to the fullest extent permitted by applicable law
any right it may have to a trial by jury with respect to any litigation directly or indirectly arising out of, under or in
connection with this Agreement or the transactions contemplated by this Agreement. Each of the parties hereto hereby (a)
certifies that no representative, agent or attorney of the other party has represented, expressly or otherwise, that such
other party would not, in the event of litigation, seek to enforce the foregoing waiver and (b) acknowledges that it has been
induced to enter into this Agreement and the transactions contemplated by this Agreement, as applicable, by, among other
things, the mutual waivers of this Section 4.4.

 

    	 	4	 

     

    

 

IN
WITNESS WHEREOF, this Agreement is executed by the Parties on the date set forth above.

 

	 	SELLER:
	 	NEWBRIDGE
    RESOURCES LLC
	 	 
	 	By:	/s/
    Robert Foss
	 	 	Robert
    Foss - CEO

 

	 	BUYER:
	 	NEW
    HORIZON RESOURCES LLC
	 	 	 
	 	By:	/s/
    Ryan Smith
	 	 	Ryan
    Smith - 

 

    	 	5	 

     

    

 

APPENDIX
II

 

 

October
30, 2020

 

Rob
Foss

CEO

Newbridge
Resources LLC

One
Riverway

Suite
1025

Houston,
TX 77056

 

CONFIDENTIAL

 

	RE:	Offer
    to Purchase Oil and Gas Assets
	 	Liberty
    County, Texas

 

Dear
Mr. Foss:

 

U.S.
Energy Corp. (USNRG) hereby offers to purchase all right, title and interest in the leases, wells, surface land, rights of way
(ROW) facilities, pipelines and all other appurtenances related to the above owned by Newbridge Resource LLC (NRL) with an effective
date of November 1, 2020 as further described on the attached Exhibit A.

 

In
consideration for the above, USNRG will issue to NRL common shares of the company equal to USD $250,000.00. The volume of shares
shall be determined by the closing price of Common Stock as traded on the Nasdaq stock market the day prior to close or the volume
weighted average price of each share of Common Stock as traded on the Nasdaq stock market during the 15 trading days immediately
prior to the Closing Date, whichever results in a greater number of shares being granted to NBR.

 

This
offer is made subject to typical due diligence items and the following conditions:

 

The
seller shall repair and return the following wells to production:

Mrs.
Minnie Pruitt Fee #11

A.A.
Sterling #3

Charles
Wilson #29

David
Hanna #11

 

Furthermore,
seller shall attempt to repair the David Hanna #18 SWD as directed by USNRG. However, sell shall only be required to spend a total
of $20,000 in repair (the cost of plugging the well). Any overages shall be borne by USNRG and be paid as cash consideration at
closing or paid to vendors by USNRG.

 

    	 

     

    

 

If
in agreement, please indicate by executing below:

 

		 
	Rob
    Foss	 
	CEO	 
	Newbridge
    Resources LLC	 

 

		 
	Ryan
    Smith	 
	CEO	 
	U.S.
    Energy Corp.	 

 

    	 

     

    

 

Exhibit
A-1

To
Purchase and Sale Agreement By and Between

US
Energy Corporation and Newbridge Resources LLC

Dated
November 9, 2020

 

Oil
& Gas Leases as recorded in the Official Public Records of Liberty 

County,
Texas:

 

Mrs.
Minnie Pruitt Fee

Situated
in Elizabeth Munson League, 

A-88

 

	Lessor	 	Lessee	 	Lease Date	 	Volume	 	Page	 	Description
	Exxon Corporation	 	Houston Oil & Minerals Corporation	 	November 1, 1973	 	729	 	533	 	as amended by that certain Amendment of Oil & Gas
	 	 	 	 	 	 	 	 	 	 	Lease recorded in Volume 762 at Page 722

 

Charles
Wilson Fee

Situated
in Elizabeth Munson League, A-88

 

	Lessor	 	Lessee	 	Lease Date	 	Volume	 	Page	 	Description
	Exxon Corporation	 	Houston Oil & Minerals Corporation	 	November 1, 1973	 	729	 	585	 	as amended by that certain Amendment of Oil & Gas
	 	 	 	 	 	 	 	 	 	 	Lease recorded in Volume 762 at Page 716

 

J
C Baldwin Fee A

Situated
in William Duncan League, A-28

 

	Lessor	 	Lessee	 	Lease Date	 	Volume	 	Page	 	Description
	Exxon Corporation	 	Houston Oil & Minerals Corporation	 	November 1, 1973	 	729	 	632	 	

 

David
Hannah 45 Acres

Situated
in J. Devore League, A-23

 

	Lessor	 	Lessee	 	Lease Date	 	Volume	 	Page	 	Description
	David Hannah & wife Ethel May Hannah	 	Houston Production	 	March 15, 1937	 	222	 	55	 	

 

    	 	 	 

    	 

    

 

Exhibit
A-1

To
Purchase and Sale Agreement By and Between

US
Energy Corporation and Newbridge Resources LLC

Dated
November 9, 2020

 

David
Hannah 5 Acres

Situated
in J. Devore League, 

A-23

 

	Lessor	 	Lessee	 	Lease Date	 	Volume	 	Page	 	Description
	David Hannah & wife Ethel May Hannah	 	The Texas Company	 	March 2, 1923	 	117	 	98	 	 
	John and Rita Hannah Revocable Trust, JP Morgan Chase Bank, N.A., Trustee	 	Energy Reserves Group, LLC	 	January 11, 2017	 	2017002592	 	 	 	Memorandum of Oil, Gas and Mineral Lease
	Glen Hannah Cole	 	Energy Reserves Group	 	October 4, 2016	 	2017002084	 	 	 	Memorandum of Oil, Gas and Mineral Lease
	RCPTX, LTD	 	Energy Reserves Group	 	October 5, 2016	 	2017002083	 	 	 	Memorandum of Oil, Gas and Mineral Lease
	Janet Hannah Eskridge	 	Energy Reserves Group	 	October 3, 2016	 	2017002082	 	 	 	Memorandum of Oil, Gas and Mineral Lease
	Heather Hannah Beadle	 	Energy Reserves Group	 	October 4, 2016	 	2017002081	 	 	 	Memorandum of Oil, Gas and Mineral Lease
	Smith Family Fund, LLC	 	Energy Reserves Group	 	October 3, 2016	 	2017002080	 	 	 	Memorandum of Oil, Gas and Mineral Lease

 

A.
A. Sterling

Situated
in Elizabeth Munson League, 

A-88

 

	Lessor	 	Lessee	 	Lease Date	 	Volume	 	Page	 	Description
	A. A. Sterling, Individually & as Independent Executor of the Estate of Nellie A. Sterling	 	J. W. Parr	 	January 12, 1950	 	324	 	480	 	
	 	 	 	 	 	 	 	 	 	 	 
	Mrs. Margaret Feagin, a feme sole	 	J. W. Parr	 	January 11, 1950	 	324	 	483	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Doris Feagin Porter & husband J. P. Porter	 	J. W. Parr	 	January 16, 1950	 	324	 	486	 	 

 

Liberty
Townsite Unit 1

Situated
in East Liberty Town League, 

A-359

 

	Lessor	 	Lessee	 	Lease Date	 	Volume	 	Page	 	Description
	Louis W. Black, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	442	 	470	 	 

 

    	 	 	 

    	 

    

 

Exhibit
A-1

To
Purchase and Sale Agreement By and Between

US
Energy Corporation and Newbridge Resources LLC

Dated
November 9, 2020

 

Liberty
Townsite Unit 1 (continued)

 

	Lessor	 	Lessee	 	Lease Date	 	Volume	 	Page	 	Description
	Vara Alice Colley	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	215	 	 
	 	 	 	 	 	 	 	 	 	 	 
	J. R. Harris, Jr. et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	391	 	 
	 	 	 	 	 	 	 	 	 	 	 
	J. E. Dearmore	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	186	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Elizabeth H. Horton, et vir	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	443	 	546	 	 
	 	 	 	 	 	 	 	 	 	 	 
	R. J. Cress, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	493	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Alma Tucker, et al	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	444	 	43	 	 
	 	 	 	 	 	 	 	 	 	 	 
	George Vanetta, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	445	 	170	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Richard C. Smalley, et ux	 	Stanolind Oil & Gas Company	 	May 7, 1956	 	457	 	272	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Mary K. Mooring	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	432	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Dalton E. Green, Jr. et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	500	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Max D. Hardy, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	148	 	 
	 	 	 	 	 	 	 	 	 	 	 
	J. P. Powell, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	524	 	 
	 	 	 	 	 	 	 	 	 	 	 
	B. D. Erskins, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	393	 	 
	 	 	 	 	 	 	 	 	 	 	 
	O. B. Youngblood, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	498	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Carlton W. Trant	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	518	 	 

 

    	 	 	 

    	 

    

 

Exhibit
A-1

To
Purchase and Sale Agreement By and Between

US
Energy Corporation and Newbridge Resources LLC

Dated
November 9, 2020

 

Liberty
Townsite Unit 1 (continued)

 

	Lessor	 	Lessee	 	Lease Date	 	Volume	 	Page	 	Description
	James L. Abshier, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	442	 	178	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Charles Welch, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	445	 	23	 	 
	 	 	 	 	 	 	 	 	 	 	 
	L. E. Presley, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	442	 	175	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Evan R. Lemons, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	502	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Valarie M. Rucker	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	445	 	602	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Annie Frankland	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	442	 	142	 	 
	 	 	 	 	 	 	 	 	 	 	 
	H. M. Cotton, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	216	 	 
	 	 	 	 	 	 	 	 	 	 	 
	James H. Vanderhider, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	396	 	 
	 	 	 	 	 	 	 	 	 	 	 
	C. T. Mangano, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	547	 	 
	 	 	 	 	 	 	 	 	 	 	 
	J. H. Badders, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	128	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Alva W. Cook, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	442	 	478	 	 
	 	 	 	 	 	 	 	 	 	 	 
	A. E. McGinty, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	126	 	 
	 	 	 	 	 	 	 	 	 	 	 
	J. D. Exline, et ux	 	Stanolind Oil & Gas Company	 	January 17, 1957	 	458	 	271	 	 
	 	 	 	 	 	 	 	 	 	 	 
	George D. Derrington, Jr.	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	203	 	 
	 	 	 	 	 	 	 	 	 	 	 
	George H. Stone, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	213	 	 
	 	 	 	 	 	 	 	 	 	 	 
	William H. Rowe, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	442	 	214	 	 

 

    	 	 	 

     

    

 

Exhibit
A-1

To
Purchase and Sale Agreement By and Between

US
Energy Corporation and Newbridge Resources LLC

Dated
November 9, 2020

 

Liberty
Townsite Unit 1 (continued)

 

	Lessor	 	Lessee	 	Lease Date	 	Volume	 	Page	 	Description
	John Roy Johnson, et ux	 	Stanolind Oil & Gas Company	 	April 23, 1956	 	441	 	152	 	
	 	 	 	 	 	 	 	 	 	 	 
	City of Liberty, acting therein by & through T. O. Davis, its Mayor	 	Humble Oil & Refining Company	 	April 20, 1956	 	441	 	601	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Texas Gulf Sulphur Company	 	Humble Oil & Refining Company	 	April 10, 1956	 	442	 	496	 	 
	 	 	 	 	 	 	 	 	 	 	 
	John William Ager & Henry O. Ager	 	Pan American Petroleum Corporation	 	February 20, 1957	 	460	 	490	 	 

 

    	 	 	 

    	 

    

 

Exhibit
A-2

To
Purchase and Sale Agreement By and Between

US
Energy Corporation and Newbridge Resources LLC

Dated
November 9, 2020

 

Wells:

 

	Name	 	API	 	Field	 	WI	 	NRI
	BALDWIN, J.C. FEE A/C 1 #4	 	4229103734	 	Liberty South	 	1	 	0.810833
	BALDWIN, J.C. FEE A/C 1 #9	 	4229103740	 	Liberty South	 	1	 	0.810833
	BALDWIN, J.C. FEE A/C 1 #12	 	4229103743	 	Liberty South	 	1	 	0.810833
	BALDWIN, J.C. FEE A/C 1 #14	 	4229103745	 	Liberty South	 	1	 	0.810833
	BALDWIN, J.C. FEE A/C 1 #16	 	4229103747	 	Liberty South	 	1	 	0.810833
	BALDWIN, J.C. FEE A/C 1 #17	 	4229103748	 	Liberty South	 	1	 	0.810833
	BALDWIN, J.C. FEE A/C 1 #21	 	4229103752	 	Liberty South	 	1	 	0.810833
	BALDWIN, J.C. FEE A/C 1 #24	 	4229103754	 	Liberty South	 	1	 	0.810833
	BALDWIN, J.C. FEE A/C 1 #25	 	4229103755	 	Liberty South	 	1	 	0.810833
	BALDWIN, J.C. FEE A/C 1 #50	 	4229130578	 	Liberty South	 	1	 	SWD
	BALDWIN, J.C. FEE A/C 1 #53	 	4229130646	 	Liberty South	 	1	 	0.810833
	 	 	 	 	 	 	 	 	 
	LIBERTY TOWNSITE UNIT 1 #1	 	4229102863	 	Liberty South	 	1	 	0.6587533
	 	 	 	 	 	 	 	 	 
	MINNIE PRUITT FEE #1	 	4229102910	 	Liberty South	 	1	 	0.851875
	PRUITT, MRS. MINNIE FEE #8	 	4229130212	 	Liberty South	 	1	 	0.851875
	PRUITT, MRS. MINNIE FEE #11	 	4229130475	 	Liberty South	 	1	 	0.851875
	PRUITT, MRS. MINNIE FEE #12	 	4229130474	 	Liberty South	 	1	 	0.851875
	PRUITT, MRS. MINNIE FEE #13A	 	4229130648	 	Liberty South	 	1	 	0.851875
	PRUITT, MRS. MINNIE FEE #16	 	4229130571	 	Liberty South	 	1	 	0.851875
	PRUITT, MRS. MINNIE FEE #17	 	4229130581	 	Liberty South	 	1	 	0.851875
	PRUITT, MRS. MINNIE FEE #19	 	4229131397	 	Liberty South	 	1	 	0.851875
	PRUITT, MRS. MINNIE FEE #20	 	4229131429	 	Liberty South	 	1	 	0.851875
	 	 	 	 	 	 	 	 	 
	STERLING, A.A. #3	 	4229102945	 	Liberty South	 	1	 	0.7985205
	 	 	 	 	 	 	 	 	 
	TENNECO-MINNIE PRUITT #2	 	4229131989	 	Liberty South	 	1	 	0.851875
	 	 	 	 	 	 	 	 	 
	WILSON, CHARLES FEE #3	 	4229102949	 	Liberty South	 	1	 	0.933958
	WILSON, CHARLES FEE #4	 	4229102950	 	Liberty South	 	1	 	0.933958
	WILSON, CHARLES FEE #5	 	4229102951	 	Liberty South	 	1	 	0.933958
	WILSON, CHARLES FEE #9	 	4229102954	 	Liberty South	 	1	 	0.933958
	WILSON, CHARLES FEE #18	 	4229130472	 	Liberty South	 	1	 	0.933958
	WILSON, CHARLES FEE #28	 	4229131417	 	Liberty South	 	1	 	0.933958
	WILSON, CHARLES FEE #29	 	4229131447	 	Liberty South	 	1	 	0.7870295

 

    	 	 	 

    	 

    

 

Exhibit
A-2

To
Purchase and Sale Agreement By and Between

US
Energy Corporation and Newbridge Resources LLC

Dated
November 9, 2020

 

Wells
(continued):

 

	Name	 	API	 	Field	 	WI	 	NRI
	HANNAH, DAVID 2	 	4229100662	 	Hull	 	1	 	0.851875
	HANNAH, DAVID 11	 	4229100669	 	Hull	 	1	 	0.851875
	HANNAH, DAVID 13	 	4229100671	 	Hull	 	1	 	0.851875
	HANNAH, DAVID 16	 	4229100673	 	Hull	 	1	 	0.851875
	HANNAH, DAVID 18	 	4229130640	 	Hull	 	1	 	0.851875
	HANNAH, DAVID 19	 	4229130657	 	Hull	 	1	 	0.851875
	HANNAH, DAVID 20	 	4229130668	 	Hull	 	1	 	0.851875
	HANNAH, DAVID 22	 	4229130675	 	Hull	 	1	 	0.851875
	HANNAH, DAVID 24	 	4229130689	 	Hull	 	1	 	0.851875
	Hanna, D #10	 	4229101011	 	Hull	 	1	 	0.823334
	Hanna, D #11	 	4229101012	 	Hull	 	1	 	0.823334

 

    	 	 	 

    	 

    

 

Exhibit
A-4

To
Purchase and Sale Agreement By and Between

US
Energy Corporation and Newbridge Resources LLC

Dated
November 9, 2020

 

Surface
Tracts:

 

Tract
1:

 

34.4354
acres of land, more or less in the Liberty Town South League, Abstract # 358 in

Liberty
County, Texas and being further described in that certain Warranty Deed dated July

27,
1993 from the Estate of A.D. Smart et al to Samson Resources Company as recorded

in
Volume 1481, Page 6 of the Deed Records of Liberty County, Texas

 

Tract
2:

 

10.9345
acres of land, more or less in the Liberty Town South League, Abstract # 358 in

Liberty
County, Texas and being further described in that certain Warranty Deed dated July

27,
1993 from the Estate of A.D. Smart to Samson Resources Company as recorded in

Volume
1481, Page 1 of the Deed Records of Liberty County, Texas

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00316-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00316-of-00352.parquet"}]]