Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(e) Shareholder Approval of the
OnJune 24, 2021 ,U.S. Energy Corp. ("we", "us" or the "Company") held its 2021 Annual Meeting of Shareholders (the "Meeting"). At the Meeting, the shareholders of the Company approved the adoption of the Company's 2021 Equity Incentive
Plan (the "2021 Plan"). The 2021 Plan provides an opportunity for any employee, officer, director or consultant of the Company, subject to limitations provided by federal or state securities laws, to receive (i) incentive stock options (to eligible employees only); (ii) nonqualified stock options; (iii) restricted stock; (iv) stock awards; (v) shares in performance of services; or (vi) any combination of the foregoing. In making such determinations, the Board of Directors (the "Board") may take into account the nature of the services rendered by such person, his or her present and potential contribution to the Company's success, and such other factors as the Board in its discretion shall deem relevant. Employees, non-employee directors, and consultants of the Company and its subsidiaries are eligible to participate in the 2021 Plan. Incentive stock options may be granted under the 2021 Plan only to employees of our company and its affiliates. Employees, directors and consultants of our company and its affiliates are eligible to receive all other types of awards under the 2021 Plan. Subject to adjustment in connection with the payment of a stock dividend, a stock split or subdivision or combination of the shares of common stock, or a reorganization or reclassification of the Company's common stock, the aggregate number of shares of common stock which may be issued pursuant to awards under the 2021 Plan is the sum of (i) one million (1,000,000) shares, and (ii) an annual increase onApril 1st of each calendar year, beginning in 2022 and ending in 2031, in each case subject to the approval of the Board of Directors or the Compensation Committee on or prior to the applicable date, equal to the lesser of (A) five percent (5%) of the total shares of common stock of the Company outstanding on the last day of the immediately preceding fiscal year; (B) one million (1,000,000) shares; and (C) such smaller number of shares as determined by the Board of Directors or Compensation Committee (the "Share Limit"). Notwithstanding the above, no more than 10,000,000 incentive stock options may be granted pursuant to the terms of the 2021 Plan. The 2021 Plan was originally approved by the Board of Directors of the Company onApril 27, 2021 , subject to shareholder approval.
The material terms of the 2021 Plan were described in the Company's Proxy
(defined below in Item 5.07) under the caption "Proposal 4: Approval of the
The above description of the 2021 Plan does not purport to be complete, and is qualified in its entirety by reference to the full text of the 2021 Plan, which is attached as Exhibit 10.1 hereto and is incorporated by reference into this Item 5.02.
Item 5.07 Submission of Matters to a Vote of Security Holders.
At the Meeting, an aggregate of 2,336,847 shares of voting stock, or 52.3% of our 4,469,599 total outstanding voting shares as ofApril 26, 2021 , the record date for the Meeting (the "Record Date"), were present at or were voted at the Meeting, constituting a quorum. The holders of shares of our common stock are entitled to one vote for each share held, except that for the election of directors, shareholders may cumulate votes. The following proposals were voted on at the Meeting (as described in greater detail in the Definitive Proxy Statement on Schedule 14A, filed with theSecurities and Exchange Commission onMay 12, 2021 (the "Proxy")), with the results of such voting as set forth below. Capitalized terms have the meanings given to such terms in the Proxy and this Form 8-K should be read in connection with the Proxy. Proposal 1 Votes For Votes Withheld Broker Non-Votes Election of Directors James W. Denny III 1,151,043 42,453 1,143,351 Ryan L. Smith 1,165,445 28,051 1,143,351 Proposal 2 Votes For Votes Against Abstentions Broker Non-Votes To ratify the appointment ofPlante & Moran PLLC as the Company's independent auditor for the fiscal year ended December 31, 2021 2,224,306 96,793 15,748 - Broker Proposal 3 Votes For Votes Against Abstentions Non-Votes To approve, on an advisory basis, the 2020 compensation of the Company's named executive officers 1,093,184 64,973
35,339 1,143,351 Broker Proposal 4 Votes For Votes Against Abstentions Non-Votes To approve the adoption of the Company's 2021 Equity Incentive Plan 1,057,654 107,721 28,121 1,143,351 As a result of the above voting, each of the two (2) Class Two director nominees were duly appointed to the Board of Directors by a plurality of the votes cast (there was no solicitation in opposition to management's nominees as listed in the proxy statement), each to serve a term of three years and until their respective successors have been elected and qualified, or until their earlier resignation or removal and proposals 2, 3 and 4, which each required more votes cast favoring each such proposal than cast opposing such proposal, were validly approved and ratified by the Company's shareholders. Item 8.01 Other Events. OnJune 24, 2021 , the Board appointed Mr.James W. Denny III to the Compensation Committee of the Board of Directors (replacing Mr.Javier F. Pico in such role) andMr. Pico as the Chairman of the Nominating Committee. After such appointments the membership of the Company's Committees of the Board of Directors is as follows: Committees of the Board Director Audit Compensation Nominating Hedging Independent Class Committee Committee Committee Committee Ryan L. Smith Two James W. Denny III X Two M M M Randall D. Keys X One C M M M Javier F. Pico X Three M C D. Stephen Slack(1) X One M C
(1) Chairman of Board of Directors.
C - Chairman of Committee. M - Member.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. Exhibit No. Description 10.1*U.S. Energy Corp. 2021 Equity Incentive Plan
* Filed herewith.
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