Document:

MANAGEMENT
      AGREEMENT

     

    This
      Agreement made this 25th day of September, 2008 by and between Windswept
      Environmental, Inc., DBA Tradewinds Environmental, and its affiliates
      Environmental Restoration, Inc. and Restorenet, Inc., (individually and
      collectively the “Client”), with its principal place of business at 895 Waverly
      Ave., Holtsville NY 11742 (“Facility”) and NachmanHaysBrownstein, Inc. with
      offices at 822 Montgomery Avenue, Suite 204, Narberth, PA 19072
      (“Manager”).

     

    WHEREAS,
      Client’s
      secured lender, Laurus Capital Management LLC, has required that Client engage
      a
      Chief Restructuring Officer in order to assist
      in
      obtaining
      additional financing; and

     

    WHEREAS,
      Client’s
      Board of Directors has voted to appoint a Chief Restructuring Officer (“CRO”) to
direct
      the
      restructuring of Client’s business; and

     

    WHEREAS,
      Client
      and Board of Directors desires to retain the services of Manager as set forth
      herein in accordance with the terms and conditions of this Agreement;
      and

     

    WHEREAS,
      Manager
agrees
      to use
      its best efforts to
      provide the services to Client as set forth herein, in accordance with the
      terms
      and conditions of this Agreement.

     

    NOW
      THEREFORE,
      in
      consideration of the mutual promises set forth herein, and intending to be
      legally bound, Client and Manager hereby agree as follows:

     

    
      	I)	
              SERVICES
                TO BE RENDERED ON A REASONABLE EFFORTS
                BASIS

            

    

     

    	A)  	
            The
              duties of Manager and
              the CRO in
              its conduct of their
              business
              on a reasonable efforts basis, on behalf of Client will include, without
              limitation and as appropriate, after consultation with Michael O’Reilly,
              CEO:

          

     

    	1)  	
            Day
              to day operational and/or financial management of Client, in Manager’s
              capacity as Chief Restructuring Officer of
              Client

          

     

    	2)  	
            Negotiation
              and execution of financing relationships, including preparation of
              a
              situational analysis/business plan for submission to potential
              lenders
              in
              consultation with the CEO and the Board.

          

     

    	3)  	
            Negotiation
              of and amendments to contracts.

          

     

    	4)  	
            The
              compromise of accounts payable and receivable and of notes payable
              and
              receivable.

          

     

    	5)  	
            The
              hiring and discharge of employees.

          

     

    	6)  	
            Disbursement
              of funds.

          

     

    
      
         

      

      
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    	7)  	
            Direct
              communication with Client’s lenders, vendors, customers and
              employees.

          

     

    	B)  	
            Manager
              shall be duly elected to the office of Chief Restructuring Officer
              in
              accordance with the by-laws of Client, and the by-laws or other proper
              corporate resolutions of Client shall authorize Manager to perform
              the
              duties set forth in this Management Agreement.

          

     

    	C)  	
            The
              Manager and the CRO shall be afforded
              the same insurance coverage and indemnification rights as any
              officer and director of
              the company,
              as Client shall have in effect from time to
              time.

          

     

    	D)  	
            Notwithstanding
              the foregoing, Manager shall have:

          

     

    	1)  	
            No
              duty or authority to enter into any contract or to pursue a course
              of
              action which requires the approval of the Board of Directors of Client
              without having first obtained such
              approval;

          

     

    	2)  	
            No
              duty, no responsibility, and no authority with respect to regulatory
              compliance duties, including without limitation: (a) the management,
              handling, transport, disposal or remediation of hazardous waste or
              hazardous substances; (b) compliance with applicable federal, state
              or
              local statutes, ordinances, regulations orders and requirements of
              common
              law in any way affecting or pertaining to health, safety or the
              environment; and (c) filings with federal and state securities authorities
              and filings and payments to federal, state, and local taxing
              authorities,
              provided that Manager shall have responsibility for any willful misconduct
              and gross negligence relating to such compliance duties,
              and;

          

     

    	3)  	
            In
              acting on behalf of Client, no duty to nor any authority to enter into
              any
              agreement with Manager (other than as necessary to carry out the terms
              of
              this Agreement) nor to extend, renew, modify, amend or terminate this
              Agreement.

          

     

    	E)  	
            Manager
              acknowledges that it is working in concert with the
              CEO
              and the Board,
              and will remain in close communications with both parties throughout
              this
              assignment.

          

     

    
      	II)	
              REPORTING
                RESPONSIBILITY

            

    

     

    	A)  	
            The
              Manager shall report to the Board of Directors of Client with daily
              reporting to Michael O’Reilly in his capacity as
              CEO.

          

     

    
      	III)	
              REGULATORY
                COMPLIANCE

            

    

     

    	A)  	
            All
              regulatory compliance decisions are the responsibility of Client; and,
              without limitation, except
              as expressly provided above with respect to willful misconduct and
              gross
              negligence, Manager
              shall have no duty, no responsibility, and no authority with respect
              to
              regulatory compliance duties, including, without limitation: (1) the
              management, handling, transport, disposal or remediation of hazardous
              wastes or hazardous substances; (2) compliance with applicable federal,
              state or local statutes, ordinances, regulations, orders and requirements
              of common law in any way affecting or pertaining to health, safety
              or the
              environment; and (3) filings with federal and state securities authorities
              and federal, state and local taxing
              authorities.

          

     

    
      
         

      

      
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      	IV)	
              TERM
                OF AGREEMENT

            

    

     

    	A)  	
            This
              Agreement will commence at the beginning of business the date of this
              Agreement and end at the close of business March
              31,
              2009 (“Ending Date”) unless ended earlier by the terms of this Agreement.
              In the event either party to the other does not afford written notice
              of
              termination of this Agreement within 15 days of any Ending Date, the
              Ending Date shall be deemed extended by one
              month.

          

     

    	B)  	
            Notwithstanding
              the foregoing Section II (A), this Agreement shall terminate upon three
              (3) days written notice by either party to the other as provided herein.
              However, Client acknowledges that this Agreement is a precondition
              to
              obtaining additional secured financing and that Client shall not terminate
              this Agreement without the prior written consent of Laurus.

          

     

    
      	V)	
              PLACE
                OF WORK

            

    

     

    	A)  	
            Manager’s
              services shall be performed at Client’s Facility and at Clients various
              worksites as determined by Manager.

          

     

    
      	VI)	
              FEES
                TO MANAGER

            

    

     

    	A)  	
            Retainer

          

    Client
      agrees to pay to Manager a retainer of $50,000 upon execution of the Agreement,
      to be maintained as security throughout the term of this Agreement, to be
      applied if necessary against the final invoice for fees and expenses and the
      balance, if any, to be refunded to Client without interest.

     

    	B)  	
            Fees
              and expenses

          

    Client
      agrees to pay fees for services rendered by personnel of Manager based upon
      the
      daily and hourly rates regularly charged by Manager for the services of its
      personnel, as such rates may be adjusted from time to time. Client agrees to
      reimburse Manager for expenses incurred by Manager by reason of this Agreement
      for travel, including air travel and rental car, and for lodging and meal
      expenses whenever Manager’s personnel are away from home. Manager agrees to use
      its best efforts to keep such expenses at the lowest practical level. Travel
      time will be billed at one-half the normal hourly rate,
      except
      travel to and from work at the beginning and end of the work day shall not
      be
      charged to Client.
      This
      travel exemption shall not apply to travel to and from the Facility from
      Manager’s or CRO’s place of residence.

     

     

    
      
         

      

      
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    Hourly
      Rate

     

    
      	 	
              Hourly
                Rates

            
	
              Principal
                & Supervising Managing Director

            	
              $400.00

            
	
              Managing
                Director serving as CRO

            	
              $300.00

            
	
              Other
                Professional Staff

            	
              $150.00
                - $350.00

            

    

     

    	C)  	
            The
              CRO will cap his fees at $2,400 per day. Total Manager weekly fees
              and
              expenses,
              including the fees of the CRO,
              will be capped at $20,000 per week.

          

     

    	D)  	
            Manager
              shall strive to work efficiently and will attempt to use in-house
              resources as possible as feasible and limit the use of Other Professional
              Staff.

          

     

    	E)  	
            Manager
              shall maintain and submit time slips documenting its activities in
              accordance with its normal billing
              procedures.

          

     

    	F)  	
            Billing
              and Payment

          

    Manager
      agrees to render bi-weekly invoices to Client for fees and expenses of its
      personnel, and any delay in rendering such invoices shall not constitute a
      waiver of such fees and expenses. Client agrees to pay such invoices within
      two
      business days of receipt by wire transfer to Manager’s bank ABA# 031-000053
      Account #86-0583-9972 at PNC Bank in Philadelphia, PA, with telephone
      notification to Judy Sacher at 610-660-0060, Extension 227. Alternatively,
      payments may be made by certified or cashier’s check within two business days of
      receipt.

     

    	G)  	
            Taxes

          

    Client
      agrees that all taxes due by reason of amounts payable, or paid, to Manager
      under this Section VI (for instance, sales taxes) are the responsibility of
      and
      to be paid by Client, other than federal, state, and local taxes of the
      Manager’s place of residence.

     

    
      	VII)	
              STATUS
                OF MANAGER

            

    

     

    	A)  	
            Michael
              W. Savage will be the individual designated by Manager to act as the
              Chief
              Restructuring Officer, in performing this Agreement (the “Individual
              Manager”). Until such time as Client receives written notification to the
              contrary from Manager such Individual Manager has full authority to
              carry
              out this Agreement on behalf of Manager.

          

     

    	B)  	
            Other
              representative of Manager shall be considered representatives of the
              Chief
              Restructuring Officer and shall have the authority to act as directed
              by
              the CRO.

          

     

    	C)  	
            Manager
              has authority to terminate Individual Manager as the individual performing
              the duties for Manager under this Agreement and to substitute another
              individual to perform its duties under this Agreement. Client shall
              be
              afforded written notification of such termination and
              substitution.

          

     

    
      
         

      

      
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    	D)  	
            Manager
              and Individual Manager shall perform all services as independent
              contractors and not as employees of Client, and neither Manager nor
              Individual Manager shall receive any remuneration from Client, including
              participation in disability, retirement, pension, profit sharing or
              other
              benefit or deferred compensation plans of Client, other than as set
              forth
              herein. The name of the Manager, and its personnel including the
              Individual Manager, shall not be set forth in any document of the Client,
              or otherwise used by the Client, unless the Manager in acting for Client
              sets forth such name(s) or the Manager shall have previously consented
              thereto in writing.

          

     

    
      	VIII)	
              INDEMNIFICATION
                AND HOLD HARMLESS

            

    

     

    	A)  	
            Indemnification
              and Hold Harmless

          

     

    	1)  	
            Unpaid
              Employee Payroll, Payroll Taxes and Sales
              Taxes

          

    At
      the
      time of this Agreement, Client may have accrued an unmet payroll liability.
      Additionally, Client may have improperly diverted an undetermined amount of
      trust fund taxes, including employee withholding and sales taxes. Client’s
      current management and owners acknowledge that they may face personal and/or
      criminal liability for these unpaid taxes and specifically indemnify Manager
      for
      any and all liability arising from these taxes,
      except
      for Manager’s willful misconduct or gross negligence. The Client
      agrees
      to
      assume all costs, including but not limited to attorney’s fees, in the
      performance of this indemnify to Manager.

     

    	2)  	
            Workers
              Compensation Insurance

          

    At
      the
      time of this Agreement, Client acknowledges that it has allowed its workers
      compensation insurance to lapse and may therefore be operating its business
      in
      violation law. Client agrees to accept full responsibility for such possible
      illegal operations. The
      Client
      agrees
      to fully
      and collectively indemnify Manager for any and all consequences arising from
      operating without workers compensation insurance and to assume all costs,
      including but not limited to attorney’s fees, in the performance of this
      indemnify to Manager,
      except
      for Manager’s gross negligence or willful misconduct.
      Client
      is obligated to maintain full workers compensation insurance as required by
      law
      during the entire term of this Agreement and Client certifies that such
      insurance is in place prior to its execution of this Agreement. Client
      acknowledges that, notwithstanding any other provision of this Agreement, breach
      of this provision may result in the immediate resignation of Manager as
      CRO.

     

    	3)  	
            General
              Indemnity

          

    Client
      agrees to indemnify and hold harmless Manager, to the full extent lawful,
      against any and all losses, actions, claims, damages, liabilities or costs
      including reasonable legal fees and expenses,
      except
      for claims and obligations arising from Manager’s gross negligence or willful
      misconduct
      (collectively, “Loss”), whether or not in connection with a matter in which
      Manager is a party, as and when incurred, directly or indirectly, caused by,
      relating to, based upon or arising out of Manager acting for Client pursuant
      to
      this Agreement. Manager shall not be held liable for errors in judgment.
      Notwithstanding the foregoing, Client shall have no duty to indemnify or to
      hold
      harmless Manager for any loss, action, claim, damage, liability or cost to
      the
      extent such Loss is found, in a final judgment by a court of competent
      jurisdiction, to have resulted primarily and directly from the willful
      misconduct or unlawful activities of Manager.

     

    
      
         

      

      
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    	B)  	
            Limitation
              of Liability

          

    Client
      and its subsidiaries agree that Manager’s liability to Client, to the extent not
      otherwise limited, indemnified or held harmless hereunder, is further limited
      to
      the amount of fees paid to Manager hereunder.

     

    	C)  	
            Included
              Indemnitees

          

    Subject
      to the exceptions expressly herein contained, the
      indemnification and hold harmless provisions shall be in addition to any
      liability which Client may otherwise have to Manager and shall include in
      addition to Manager, the Individual Manager(s) performing this Agreement,
      Manager’s affiliated entities, directors, officers, employees, agents and
      controlling persons of Manager within the meaning of the federal securities
      laws. All references to Manager in these indemnification and hold harmless
      provisions shall be understood to include any and all of the
      foregoing.

     

    	D)  	
            Counsel
              and Notification of Client

          

    If
      any
      claim, action, proceeding, or investigation is commenced as to which Manager
      proposes to demand such indemnification and to be held harmless, it will notify
      Client promptly upon becoming aware of any such action, proceeding or
      investigation. Manager will have the right to retain counsel of its own choice
      to represent it, and Client will pay the reasonable fees and expenses of such
      counsel; and such counsel shall to its fullest extent consistent with its
      professional responsibilities cooperate with Client and any counsel designated
      by it. Client will only be liable for any settlement of any claim against
      Manager made with Client’s written consent, which consent shall not be
      unreasonably withheld.

     

    	E)  	
            Duration

          

    Neither
      termination nor completion of the engagement of Manager pursuant to the CRO
      Agreement shall affect the indemnification and hold harmless provisions which
      shall remain operative and in full force and effect.

     

    	F)  	
            Health,
              Safety and Environmental Inclusion

          

    For
      purposes of indemnifying and holding Manager harmless from any breach of the
      representations, warranties and covenants set forth hereunder, Client agrees
      to
      indemnify and hold harmless Manager to the full extent set forth
      hereunder.

     

    	G)  	
            In
              the event of litigation between Client and Manager, the prevailing
              party
              shall be entitled to recover its reasonable fees and expenses, including
              attorney’s fees.

          

     

    

      
        
           

        

        
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      	IX)	
              INFORMATION
                AND CONFIDENTIALITY

            

    

     

    	A)  	
            Information

          

    The
      Client agrees to provide access to all financial and other information and
      records, and to Client’s directors, officers, employees, and representatives,
      creditors and other stakeholders, as Manager deems
      appropriate.

     

    	B)  	
            Confidentiality

          

    Manager
      agrees that all information, whether or not in writing, of a private, secret
      or
      confidential nature concerning Client is and shall remain the exclusive property
      of Client, and no such information shall be divulged by Manager to third
      parties, unless
      such information becomes public knowledge or is required by order of a court.
      Client acknowledges that Manager has been tasked with maintaining relations
      with
      Client’s secured lender and specifically authorizes Manager to divulge Client’s
      confidential information to Laurus Capital Management LLC and its affiliates
      in
      executing this responsibility.

     

    	C)  	
            Personnel
              Disclosure

          

    Client
      is
      responsible for bringing matters (i.e., sexual harassment, substance abuse)
      to
      Manager.

     

    	D)  	
            Representations

          

    Client
      is
      unaware of any material misrepresentations or misstatement with the exceptions
      of the following:

     

    
      	X)	
              ENGAGEMENT
                OF OTHERS

            

    

     

    When
      Client requests or agrees that Manager shall arrange for services of a
      third-party, Client will compensate third-party service providers, including,
      without limitation, attorneys, accountants, financial managers, brokers, and
      property managers, in accordance with the agreed compensation terms of such
      third-parties.

     

    
      	XI)	
              HEALTH,
                SAFETY AND ENVIRONMENTAL REPRESENTATIONS, WARRANTIES, AND
                COVENANTS

            

    

     

    	A)  	
            Client
              represents and warrants that, to the best of its
              knowledge:

          

     

    	1)  	
            All
              activities and operations of Client, including without limitation,
              those
              at the Facility, have been and are being conducted in compliance with
              all
              applicable federal, state and local environmental, health, and safety
              statutes, ordinances, regulations and orders and requirements of common
              law (“Environmental Statutes”).

          

     

    	2)  	
            No
              Hazardous Substance (as herein defined) is present in, on, over or
              under
              or is migrating from the Facility (or at other facilities owned or
              leased
              by Client or its subsidiaries (collectively, “Client Facilities”)) in a
              manner as may require remediation under any Environmental Statutes
              or, to
              Client’s knowledge, is present in, on, over or under any adjacent premises
              or is migrating to the Facility or to Client Facilities. The term
              “Hazardous Substances” means substances and materials that are regulated
              pursuant to Environmental Statutes including, without limitation,
              substances and materials that are or contain hazardous substances,
              hazardous wastes, hazardous materials, toxic substances, regulated
              substances, and petroleum as those terms are defined pursuant to any
              Environmental Statute.

          

     

    
      
         

      

      
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    	3)  	
            Client
              has obtained and maintained and is in compliance with all registrations,
              licenses, permits and approvals, including amendments thereto, issued
              by
              governmental agencies pursuant to Environmental Statutes and all are
              in
              full force and effect.

          

     

    	4)  	
            The
              generation, handling, treatment, storage, transportation and disposal
              of
              Hazardous Substances and waste by, or on behalf of, Client was and
              is in
              compliance with all applicable federal, state and local laws, ordinances
              and regulations, including Environmental
              Statutes.

          

     

    	5)  	
            Client
              has not received any notice of any violation of or investigation or
              claim
              of liability under any Environmental Statute regarding or relating
              to the
              Facility and Client Facilities and their operation or notice of any
              investigation or potential liability of Client regarding any other
              facility including, without limitation, those to which Client, Client
              Facilities or the Facility sent Hazardous Substances or waste for
              handling, treatment, storage or disposal (“Other
              Facilities”).

          

     

    	6)  	
            Neither
              the Facility, Client Facilities, nor any Other Facility is listed or
              proposed for listing on the National Priorities List or the Comprehensive
              Environmental Response, Compensation and Liability Information System
              list
              promulgated pursuant to the Comprehensive Environmental Response,
              Compensation and Liability Act, 42 U.S.C. 9601 et seq.,
              as amended, or any analogous state or local
              list.

          

     

    	B)  	
            Client
              agrees hereafter to remain in compliance with all Environmental
              Statutes.

          

     

    
      	XII)	
              MISCELLANEOUS
                PROVISIONS

            

    

     

    	A)  	
            Entire
              Agreement

          

     

    	1)  	
            This
              Agreement constitutes the entire understanding and agreement between
              the
              parties hereto with respect to the subject matter hereof and may not
              be
              amended, changed, modified, or supplemented, except in writing signed
              by
              each party.

          

     

    	B)  	
            Assignment

          

     

    	1)  	
            Neither
              party shall sell, assign, convey or otherwise transfer this Agreement,
              or
              any of the rights, interests or obligations hereunder to any other
              party
              without the prior written consent of the other party, except that Manager
              may assign this Agreement to a corporation in which Thomas D. Hays
              III or
              Howard Brod Brownstein is a shareholder.

          

     

    
      
         

      

      
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    	C)  	
            Notices

          

     

    	1)  	
            Any
              written notice required to be given hereunder shall be validly given
              if
              delivered personally or sent by registered or certified mail, postage
              prepaid, to the address of the party set forth in the opening paragraph
              of
              this Agreement, or to such other address as one party shall provide
              in
              writing to the other in accordance with this
              paragraph.

          

     

    	D)  	
            Interpretation

          

     

    	1)  	
            The
              internal laws of the Commonwealth of Pennsylvania applicable to Agreements
              made and to be fully performed therein shall govern the validity,
              interpretation, and enforcement of this
              Agreement.

          

     

    	E)  	
            Waiver

          

     

    	1)  	
            The
              waiver of any breach of any provision of this Agreement by a party
              to this
              Agreement shall not operate or be construed as a waiver of any subsequent
              breach by such party.

          

     

    	F)  	
            Separability
              of Provisions

          

     

    	1)  	
            If
              any provision of this Agreement shall be or become illegal or
              unenforceable in whole or in part for any reason whatsoever, the remaining
              provisions shall nevertheless be deemed, valid, binding and
              subsisting.

          

     

    	G)  	
            Headings
              and Paragraphs

          

     

    	1)  	
            The
              headings and paragraphs of this Agreement are for convenience only
              and
              shall not affect the interpretation of this
              Agreement.

          

     

    
      	XIII)	
              DISCLOSURE

            

    

     

    	A)  	
            Manager
              has many relationships in the business community involving lenders,
              law
              firms, accounting firms, consulting firms, independent consultant
              contractors, and others. These relationships may include Manager in
              the
              past or currently: receiving client referrals, providing client referrals,
              providing or receiving professional services, employing employees or
              contractors or serving as a contractor, and other types of relationships.
              These relationships may include lenders, professionals or others that
              have
              a connection with Client and/or Manager’s services provided under this
              Agreement. Such relationships are expected to continue and new ones
              may
              begin during the provision of services hereunder. Manager represents
              that
              its independence in providing services hereunder is not compromised
              by
              such relationships, and is willing to confer with Client at Client’s
              request concerning the specific nature of any such relationships Manager
              may have.

          

     

    	B)  	
            Manager
              and Individual Manager were engaged by Laurus Capital Management LLC,
              (“Laurus”) during the one-week period of September 16, 2008 through
              September 22, 2008 to conduct an assessment of Client. Manager and
              Individual Manager have had continued conversations with Laurus since
              this
              one-week assessment. Laurus is the primary secured creditor of Client
              and
              Manager acknowledges that during this initial assessment period it
              represented Client’s secured creditor, who might have a position that is
              contrary to Client’s other stakeholders. Both Manager and Individual
              Manager do not believe that this prior assignment will cause Manager
              or
              Individual Manager from unduly favoring Laurus or prevent them from
              dutifully representing all of Client’s stakeholders in order of priority,
              as appropriate in light of the financial situation of
              Client.

          

     

    
      
         

      

      
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    	C)  	
            Manager
              and Individual Manager conducted an assessment for Laurus Capital
              Management of Verso Technologies, Inc. during the week of April 14,
              2008.
              Manager and Individual Manager were retained on April 28, 2008 as Chief
              Administrative Officer of Verso Technologies, Inc. and its affiliates
              (collectively “Verso”) and directed Verso’s operations during its Chapter
              11 bankruptcy in a case filed in the Northern District of Georgia.
              Laurus
              and its affiliates were the secured lender of Verso. The plan developed
              and implemented by Manager and Individual Manager resulted in payment
              in
              full to Laurus by Verso. Manager, Individual Manager and Client agree
              that
              this past success is an indication of Manager’s and Individual Manager’s
              expertise and that such record will not prevent Manager or Individual
              Manager from fully acting in the best interests of
              Client.

          

     

    IN
      WITNESS WHEREOF,
      the
      parties hereto have executed this Agreement on the
      day
      and year first above written.

     

    WINDSWEPT
      ENVIRONMENTAL, INC.

     

    Michael
      O’Reilly (conformed)

     

    By: 
      Michael
      O’Reilly

     

    Its:
      Chief Executive Officer

     

    NACHMANHAYSBROWNSTEIN,
      INC.

     

    Harvey
      L. Nachman (conformed)

     

    By:
      Harvey L. Nachman

     

    Principal

     

    
      
         

      

      
        10
          of 10Unassociated Document

     

    Exhibit
      10.1

    

      AMENDED
        AND RESTATED

      ENERJEX
        RESOURCES, INC.

      STOCK
        INCENTIVE PLAN

      (As
        amended through October 14, 2008)

      

      1.
        PURPOSE.
        The
        purpose of the Amended and Restated EnerJex Resources, Inc. Stock Incentive
        Plan
        (the “Plan”) is to strengthen EnerJex Resources, Inc., a Nevada corporation
        (“Corporation”), by providing to employees, officers, directors, consultants and
        independent contractors of the Corporation or any of its subsidiaries (including
        dealers, distributors, and other business entities or persons providing services
        on behalf of the Corporation or any of its subsidiaries) added incentive
        for
        high levels of performance and unusual efforts to increase the earnings of
        the
        Corporation. The Plan seeks to accomplish this purpose by enabling specified
        persons to acquire shares of the common stock of the Corporation, $0.001
        par
        value, thereby increasing their proprietary interest in the Corporation’s
        success and encouraging them to remain in the employ or service of the
        Corporation. Further purposes of the Plan are:

      

      	·  	
              To
                provide officers and other employees of the Corporation with opportunities
                to purchase stock pursuant to options which qualify as “incentive stock
                options” under Section 422 of the Internal Revenue Code of 1986, as
                amended (the “Code”), granted hereunder (“ISO” or “ISOs”);
                

            

      

      	·  	
              To
                provide directors, officers, employees, consultants and independent
                contractors of the Corporation with opportunities to purchase stock
                pursuant to options granted hereunder, which do not qualify as ISOs
                (“Non-Qualified Option” or “Non-Qualified Options”); and
                

            

      

      	·  	
              To
                provide directors, officers, employees, consultants and independent
                contractors of the Corporation with opportunities to make direct
                purchases
                of or be granted shares of restricted stock (“Restricted
                Stock”).

            

      

      Both
        ISOs
        and Non-Qualified Options are referred to hereafter individually as an “Option”
and collectively as “Options.” 

      

      As
        used
        herein, the terms “Parent” and “Subsidiary” mean “Parent Corporation” and
“subsidiary corporation” as those terms are defined in Section 425 of the Code.

      

      2.
        CERTAIN DEFINITIONS. As
        used
        in this Plan, the following words and phrases shall have the respective meanings
        set forth below, unless the context clearly indicates a contrary meaning:
        

      

      2.1
        “Award
        Agreement”:
        The
        document setting forth the terms and conditions of each Option or Restricted
        Stock grant. 

      

      2.2
        “Board
        of Directors”:
        The
        Board of Directors of the Corporation.

      

      2.3
        “Code”:
        The
        Internal Revenue Code of 1986, as amended. 

       

      
        
          
          

        

        
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      2.4
        “Committee”:
        The
        Committee means the Governance, Compensation and Nominating Committee of
        the
        Corporation’s Board of Directors.

      

      2.5
        “Fair
        Market Value Per Share”:
        The
        fair market value per share of the Shares as determined by the Committee
        in good
        faith. The Committee is authorized to make its determination as to the fair
        market value per share of the Shares on the following basis: (i) if the Shares
        are traded only otherwise than on a securities exchange and are not quoted
        on
        the National Association of Securities Dealers’ Automated Quotation System
        (“NASDAQ”), but are quoted on the bulletin board or in the “pink sheets”, the
        greater of (a) the average of the mean between the average daily bid and
        average
        daily asked prices of the Shares during the thirty (30) day period preceding
        the
        date of grant of an Option, as quoted on the bulletin board or in the “pink
        sheets”, or (b) the mean between the average daily bid and average daily asked
        prices of the Shares on the date of grant, as published on the bulletin board
        or
        in such “pink sheets;” (ii) if the Shares are traded only otherwise than on a
        securities exchange and are quoted on NASDAQ, the greater of (a) the average
        of
        the mean between the closing bid and closing asked prices of the Shares during
        the thirty (30) day period preceding the date of grant of an Option, as reported
        by the Wall Street Journal and (b) the mean between the closing bid and closing
        asked prices of the Shares on the date of grant of an Option, as reported
        by the
        Wall Street Journal; (iii) if the Shares are admitted to trading on a securities
        exchange, the daily closing price of the Shares on the date of grant of an
        Option, as quoted in the Wall Street Journal; or (iv) if the Shares are traded
        only otherwise than as described in (i), (ii) or (iii) above, or if the Shares
        are not publicly traded, the value determined by the Committee in good faith
        based upon the fair market value as determined by completely independent
        and
        well qualified experts.

      

      2.6
        “Grantee”:
        A
        holder of an Option or Restricted Stock. 

      

      2.7
        “Incentive
        Stock Option”:
        An
        Option intended to qualify for treatment as an incentive stock option under
        Code
        Sections 421 and 422A, and designated as an Incentive Stock Option.

      

      2.8
        “Nonqualified
        Option”:
        An
        Option not qualifying as an Incentive Stock Option. 

      

      2.9
        “Option”:
        A
        stock option granted under the Plan.

      

      2.10
        “Restricted
        Stock”:
        Shares
        subject to restrictions determined by the Committee, or federal or state
        securities laws.

      

      2.11
        “Shares”:
        The
        shares of common stock $.001 par value of the Corporation.

      

      3.
        ADMINISTRATION OF PLAN.

      

      3.1
        In
        General.
        This
        Plan shall be administered by the Committee. 

       

      
        
          
          

        

        
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      3.2
        Authority.
        Subject
        to the express provisions of this Plan, the Committee shall have the authority
        to: (i) construe and interpret the Plan, decide all questions and settle
        all
        controversies and disputes which may arise in connection with the Plan and
        to
        define the terms used therein; (ii) prescribe, amend and rescind rules and
        regulations relating to administration of the Plan; (iii) determine the purchase
        price of the Shares covered by Options and Restricted Stock, if any, and
        the
        method of payment of such price, individuals to whom, and the time or times
        at
        which, Options or Restricted Stock shall be granted and exercisable and the
        number of Shares covered by Options or Restricted Stock; (iv) determine the
        terms and provisions of the respective Award Agreements (which need not be
        identical); (v) determine the duration and purposes of leaves of absence
        which
        may be granted to Grantees without constituting a termination of their
        employment for purposes of the Plan; (vi) determine whether each Option granted
        shall be an ISO or a Non-Qualified Option; (vii) determine the time or times
        and
        specific conditions and restrictions subject to Options or Restricted Stock
        and
        the nature of those conditions or restrictions; and (viii) make all other
        determinations necessary or advisable to the administration of the Plan.
        Determinations of the Committee on matters referred to in this Section 3
        shall
        be conclusive and binding on all parties howsoever concerned. With respect
        to
        ISOs, the Committee shall administer the Plan in compliance with the provisions
        of Code Section 422A as the same may hereafter be amended from time to time.
        No
        member of the Committee shall be liable for any action or determination made
        in
        good faith with respect to the Plan or any Option or Restricted Stock
        grant.

      

      4.
        ELIGIBILITY AND PARTICIPATION.

      

      4.1
        In
        General.
        Only
        officers, employees and directors who are also employees of the Corporation
        or
        any Subsidiary shall be eligible to receive grants of ISOs. Officers, employees
        and directors (whether or not they are also employees) of the Corporation
        or any
        Subsidiary, as well as consultants, independent contractors or other service
        providers of the Corporation or any Subsidiary shall be eligible to receive
        grants of Nonqualified Options and Restricted Stock. Within the foregoing
        limits, the Committee, from time to time, shall determine and designate persons
        to whom Options or Restricted Stock may be granted. All such designations
        shall
        be made in the absolute discretion of the Committee and shall not require
        the
        approval of the stockholders. In determining (i) the number of Shares to
        be
        covered by each Option or Restricted Stock grant, (ii) the purchase price
        for
        such Shares and the method of payment of such price (subject to the other
        sections hereof), (iii) the individuals of the eligible class to whom Options
        or
        Restricted Stock shall be granted, (iv) the terms and provisions of the
        respective Award Agreements, and (v) the times at which such Options or
        Restricted Stock shall be granted, the Committee shall take into account
        such
        factors as it shall deem relevant in connection with accomplishing the purpose
        of the Plan as set forth in Section 1. An individual who has been granted
        an
        Option or Restricted Stock may be granted an additional Option or Restricted
        Stock if the Committee shall so determine. No Option or Restricted Stock
        shall
        be granted under the Plan after October 13, 2018, but Options or Restricted
        Stock granted before such date may be exercisable or vest after such
        date.

       

      
        
          
          

        

        
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      4.2
        Certain
        Limitations.
        In no
        event shall ISOs be granted to a Grantee such that the sum of (i) the aggregate
        fair market value (determined at the time the ISOs are granted) of the Shares
        subject to all Options granted under the Plan which are exercisable for the
        first time during the same calendar year, plus (ii) the aggregate fair market
        value (determined at the time the Options are granted) of all stock subject
        to
        all other ISOs granted to such Grantee by the Corporation, its parent and
        Subsidiaries which are exercisable for the first time during such calendar
        year,
        exceeds One Hundred Thousand Dollars ($100,000). For purposes of the immediately
        preceding sentence, fair market value shall be determined as of the date
        of
        grant based on the Fair Market Value Per Share as determined pursuant to
        Section
        2.5.

      

      5.
        AVAILABLE SHARES AND ADJUSTMENTS UPON CHANGES IN
        CAPITALIZATION.

      

      5.1
        Shares.
        Subject
        to adjustment as provided in Section 5.2 below, the total number of Shares
        to be
        subject to Options and Restricted Stock awards granted pursuant to this Plan
        shall not exceed One Million Two Hundred Fifty Thousand (1,250,000) Shares.
        Shares subject to the Plan may be either authorized but unissued shares or
        shares that were once issued and subsequently reacquired by the Corporation;
        the
        Committee shall be empowered to take any appropriate action required to make
        Shares available for Options or Restricted Stock granted under this Plan.
        If (i)
        any Option is surrendered before exercise or lapses without exercise in full
        or
        for any other reason ceases to be exercisable, or (ii) Restricted Stock is
        surrendered before vesting or lapses without vesting in full or for any other
        reason ceases to be outstanding, the Shares reserved therefore shall continue
        to
        be available under the Plan. The maximum number of Options that may be granted
        to a Grantee in any fiscal year of the Corporation is 500,000. The maximum
        number of Shares subject to a Restricted Stock award to a Grantee in any
        fiscal
        year of the Corporation is 250,000.

      

      5.2
        Adjustments.
        As used
        herein, the term “Adjustment Event” means an event pursuant to which the
        outstanding Shares of the Corporation are increased, decreased or changed
        into,
        or exchanged for a different number or kind of shares or securities, without
        receipt of consideration by the Corporation, through reorganization, merger,
        recapitalization, reclassification, stock split, reverse stock split, stock
        dividend, stock consolidation or otherwise. Upon the occurrence of an Adjustment
        Event, (i) appropriate and proportionate adjustments shall be made to the
        number
        and kind of Shares and exercise price for the Shares subject to the Options
        or
        Restricted Stock grants which may thereafter be granted under this Plan,
        (ii)
        appropriate and proportionate adjustments shall be made to the number and
        kind
        of and exercise price for the Shares subject to the then outstanding Options
        or
        Restricted Stock granted under this Plan, and (iii) appropriate amendments
        to
        the Award Agreements shall be executed by the Corporation and the Grantees,
        if
        the Committee determines that such an amendment is necessary or desirable
        to
        reflect such adjustments. If determined by the Committee to be appropriate,
        in
        the event of an Adjustment Event that involves the substitution of securities
        of
        a corporation other than the Corporation, the Committee shall make arrangements
        for the assumptions by such other corporation of any Options or Restricted
        Stock
        then or thereafter outstanding under the Plan. Notwithstanding the foregoing,
        such adjustment in an outstanding Option or Restricted Stock award shall
        be made
        without change in the total exercise price applicable to the unexercised
        portion
        of the Option or Restricted Stock, but with an appropriate adjustment to
        the
        number of shares, kind of shares and exercise price for each share subject
        to
        the Option or Restricted Stock award. The determination by the Committee
        as to
        what adjustments, amendments or arrangements shall be made pursuant to this
        Section 5.2, and the extent thereof, shall be final and conclusive. No
        fractional Shares shall be issued under the Plan on account of any such
        adjustment or arrangement.

       

      
        
          
          

        

        
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      6.
        TERMS AND CONDITIONS OF GRANTS.

      

      6.1
        Intended
        Treatment as ISOs.
        ISOs
        granted pursuant to this Plan are intended to be “incentive stock options” to
        which Code Sections 421 and 422 apply, and the Plan shall be construed and
        administered to implement that intent. If all or any part of an ISO shall
        not be
        an “incentive stock option” subject to Sections 421 or 422 of the Code, such
        Option shall nevertheless be valid and carried into effect. All Options granted
        under this Plan shall be subject to the terms and conditions set forth in
        this
        Section 6 (except as provided in Section 5.2) and to such other terms and
        conditions as the Committee shall determine to be appropriate to accomplish
        the
        purpose of the Plan as set forth in Section 1.

      

      6.2
        Amount
        and Payment of Exercise Price for Options.

      

      6.2.1
        Exercise
        Price.
        The
        exercise price per Share for each Share which the Grantee is entitled to
        purchase under a Nonqualified Option shall be determined by the Committee
        but
        shall not be less than one hundred percent (100%) of the Fair Market Value
        Per
        Share on the date of the grant of the Nonqualified Option. The exercise price
        per Share for each Share which the Grantee is entitled to purchase under
        an ISO
        shall be determined by the Committee but shall not be less than 100% of the
        Fair
        Market Value Per Share on the date of the grant of the ISO; provided, however,
        that the exercise price shall not be less than one hundred ten percent (110%)
        of
        the Fair Market Value Per Share on the date of the grant of the ISO in the
        case
        of an individual then owning (within the meaning of Code Section 425(d))
        more
        than ten percent (10%) of the total combined voting power of all classes
        of
        stock of the Corporation or of its parent or Subsidiaries.

      

      6.2.2
        Payment
        of Exercise Price.
        The
        consideration to be paid for the Shares to be issued upon exercise of an
        Option,
        including the method of payment, shall be determined by the Committee and
        may
        consist of shares of the common stock of the Corporation or such other
        consideration and method of payment for the Shares as may be permitted under
        applicable state and federal laws. 

      

      
        
          
          

        

        
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      6.3
        Exercise
        of Options.

      

      6.3.1
        Each Option granted under this Plan shall be exercisable at such times and
        under
        such conditions as may be determined by the Committee at the time of the
        grant
        of the Option and as shall be permissible under the terms of the Plan; provided,
        however, in no event shall an Option be exercisable after the expiration
        of ten
        (10) years from the date it is granted, and in the case of a Grantee owning
        (within the meaning of Code Section 425(d)), at the time an ISO is granted,
        more
        than ten percent (10%) of the total combined voting power of all classes
        of
        stock of the Corporation or of its parent or Subsidiaries, such ISO shall
        not be
        exercisable later than five (5) years after the date of grant.

      

      6.3.2
        A
        Grantee may purchase less than the total number of Shares for which the Option
        is exercisable. 

      

      6.4
        Grant
        of Restricted Stock.
        Subject
        to the terms and provisions of this Plan, the Committee, at any time and
        from
        time to time, may grant Shares of Restricted Stock to Grantees in such amounts
        as the Committee, in its sole discretion, shall determine. The Committee,
        in its
        sole discretion, shall determine the number of Shares to be granted to each
        Grantee. 

      

      6.4.1
        Restricted
        Stock Agreement.
        Each
        award of Restricted Stock shall be evidenced by an Award Agreement that shall
        specify the period of restriction, the number of Shares granted, and such
        other
        terms and conditions as the Committee, in its sole discretion, shall determine.
        Unless the Committee, in its sole discretion, determines otherwise, Shares
        of
        Restricted Stock shall be held by the Corporation as escrow agent until the
        end
        of the applicable period of restriction.

      

      6.4.2
        Transferability.
        Except
        as provided in this Section 6.4, Shares of Restricted Stock may not be sold,
        transferred, gifted, bequeathed, pledged, assigned, or otherwise alienated
        or
        hypothecated, voluntarily or involuntarily, until the end of the applicable
        period of restriction. 

      

      6.4.3
        Other
        Restrictions.
        The
        Committee, in its sole discretion, may impose such other restrictions on
        Shares
        of Restricted Stock as it may deem advisable or appropriate in accordance
        with
        this Section 6.4.

      

      6.4.3.1
        General
        Restrictions.
        The
        Committee may set restrictions based upon (a) the achievement of specific
        performance objectives (Corporation-wide, divisional or individual), (b)
        applicable Federal or state securities laws, or (c) any other basis determined
        by the Committee in its sole discretion.

      

      6.4.3.2
        Legend
        on Certificates.
        The
        Committee, in its sole discretion, may legend the certificates representing
        Restricted Stock to give appropriate notice of such restrictions. For example,
        the Committee may determine that some or all certificates representing Shares
        of
        Restricted Stock shall bear the following legend:

       

      
        
          
          

        

        
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      “THE
        SALE
        OR OTHER TRANSFER OF THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE,
        WHETHER VOLUNTARY, INVOLUNTARY, OR BY OPERATION OF LAW, IS SUBJECT TO CERTAIN
        RESTRICTIONS ON TRANSFER AS SET FORTH IN THE ENERJEX RESOURCES, INC. STOCK
        INCENTIVE PLAN, AND IN A RESTRICTED STOCK AGREEMENT. A COPY OF THIS PLAN
        AND
        SUCH RESTRICTED STOCK AGREEMENT MAY BE OBTAINED FROM THE SECRETARY OF ENERJEX
        RESOURCES, INC.”

      
        

        6.4.4
          Removal
          of Restrictions.
          Except
          as otherwise provided in this Section 6.4, Shares of Restricted Stock covered
          by
          each Restricted Stock grant made under this Plan shall be released from
          escrow
          as soon as practicable after the end of the applicable period of restriction.
          The Committee, in its sole discretion, may accelerate the time at which
          any
          restrictions shall lapse and remove any restrictions. After the end of
          the
          applicable period of restriction, the Grantee shall be entitled to have
          any
          legend or legends under Section 6.4.3.2 removed from his or her Share
          certificate, and the Shares shall be freely transferable by the
          Grantee.

      

      

      6.4.5
        Voting
        Rights.
        During
        the period of restriction, Grantees holding Shares of Restricted Stock granted
        hereunder may exercise full voting rights with respect to those Shares, unless
        the applicable Award Agreement provides otherwise.

      

      6.4.6
        Dividends
        and Other Distributions.
        During
        the period of restriction, Grantees holding Shares of Restricted Stock shall
        be
        entitled to receive all dividends and other distributions paid with respect
        to
        such Shares unless otherwise provided in the applicable Award Agreement.
        If any
        such dividends or distributions are paid in Shares, the Shares shall be subject
        to the same restrictions on transferability and forfeitability as the Shares
        of
        Restricted Stock with respect to which they were paid.

      

      6.4.7
        Return
        of Restricted Stock to Corporation.
        On the
        date set forth in the applicable Award Agreement, the Restricted Stock for
        which
        restrictions have not lapsed shall revert to the Corporation and thereafter
        shall be available for grant under this Plan.

      

      6.5
        Nontransferability of Options.
        All
        Options granted under this Plan shall be nontransferable, either voluntarily
        or
        by operation of law, otherwise than by will or the laws of descent and
        distribution, and shall be exercisable during the Grantee’s lifetime only by
        such Grantee.

       

      
        
          
          

        

        
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      6.6
        Effect
        of Termination of Employment or Other Relationship.
        Except
        as otherwise determined by the Committee in connection with the grant of
        Options, the effect of termination of a Grantee’s employment or other
        relationship with the Corporation on such Grantee’s rights to acquire Shares
        pursuant to the Plan shall be as follows:

      

      6.6.1
        Termination
        for Other than Disability, Death or Cause.
        If a
        Grantee ceases to be employed by, or ceases to have a relationship with,
        the
        Corporation for any reason other than for disability, death or cause, such
        Grantee’s Options shall expire not later than three (3) months thereafter.
        During such three (3) month period and prior to the expiration of the Option
        by
        its terms, the Grantee may exercise any Option granted to him, but only to
        the
        extent such Options were exercisable on the date of termination of his
        employment or relationship and except as so exercised, such Options shall
        expire
        at the end of such three (3) month period unless such Options by their terms
        expire before such date. The decision as to whether a termination for a reason
        other than disability, cause or death has occurred shall be made by the
        Committee, whose decision shall be final and conclusive, except that employment
        shall not be considered terminated in the case of sick leave or other bona
        fide
        leave of absence approved by the Corporation.

      

      6.6.2
        Disability
        or Death.
        If a
        Grantee ceases to be employed by, or ceases to have a relationship with,
        the
        Corporation by reason of disability (within the meaning of Code Section
        22(e)(3)) or death, such Grantee’s Options shall expire not later than one (1)
        year thereafter. During such one (1) year period and prior to the expiration
        of
        the Option by its terms, the Grantee may exercise any Option granted to him,
        but
        only to the extent such Options were exercisable on the date the Grantee
        ceased
        to be employed by, or ceased to have a relationship with, the Corporation
        by
        reason of disability or death and except as so exercised, such Options shall
        expire at the end of such one (1) year period unless such Options by their
        terms
        expire before such date. The decision as to whether a termination by reason
        of
        disability or death has occurred shall be made by the Committee, whose decision
        shall be final and conclusive.

      

      6.6.3
        Termination
        for Cause.
        If a
        Grantee’s employment by, or relationship with, the Corporation or any of its
        Subsidiaries is terminated for cause, such Grantee’s Option shall expire
        immediately; provided, however, the Committee may, in its sole discretion,
        within thirty (30) days of such termination, waive the expiration of the
        Option
        by giving written notice of such waiver to the Grantee at such Grantee’s last
        known address. In the event of such waiver, the Grantee may exercise the
        Option
        only to such extent, for such time, and upon such terms and conditions as
        if
        such Grantee had ceased to be employed by, or ceased to have a relationship
        with, the Corporation upon the date of such termination for a reason other
        than
        disability, cause, or death. Termination for cause shall include termination
        for
        malfeasance or gross misfeasance in the performance of duties or conviction
        of
        illegal activity in connection therewith or any conduct detrimental to the
        interests of the Corporation. The determination of the Committee with respect
        to
        whether a termination for cause has occurred shall be final and
        conclusive.

       

      
        
          
          

        

        
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      6.7
        Withholding
        of Taxes.
        The
        Corporation or any Subsidiary shall have the authority and the right to deduct
        or withhold, or require a Grantee to remit to the Corporation, an amount
        sufficient to satisfy federal, state, local and foreign taxes (including
        the
        Grantee's employment tax obligations) required by law to be withheld with
        respect to any taxable event concerning a Grantee arising as a result of
        this
        Plan. The Committee may in its discretion and in satisfaction of the foregoing
        requirement allow a Grantee to elect to have the Corporation withhold Shares
        otherwise issuable under an Award Agreement (or allow the return of Shares
        )
        having a Fair Market Value equal to the sums required to be withheld.
        Notwithstanding any other provision of the Plan, the number of Shares which
        may
        be withheld with respect to the issuance, vesting, exercise or payment of
        any
        award (or which may be repurchased from the Grantee of such award within
        six
        months after such Shares were acquired by the Grantee from the Corporation)
        in
        order to satisfy the Grantee's federal, state, local and foreign income and
        payroll tax liabilities with respect to the issuance, vesting, exercise or
        payment of the award shall be limited to the number of Shares which have
        a Fair
        Market Value on the date of withholding or repurchase equal to the aggregate
        amount of such liabilities based on the minimum statutory withholding rates
        for
        federal, state, local and foreign income tax and payroll tax purposes that
        are
        applicable to such supplemental taxable income.

      

      6.8
        No
        Rights to Continued Employment or Relationship.
        Nothing
        contained in this Plan or in any Award Agreement shall obligate the Corporation
        to employ or have another relationship with any Grantee for any period or
        interfere in any way with the right of the Corporation to reduce such Grantee’s
        compensation or to terminate the employment of or relationship with any Grantee
        at any time.

      

      6.9
        Privileges
        of Stock Ownership.
        No
        Grantee shall be entitled to the privileges of stock ownership as to any
        Shares
        not actually issued to such Grantee. No Shares shall be issued unless and
        until,
        in the opinion of the Corporation’s counsel, any then applicable requirements of
        any laws or governmental or regulatory agencies having jurisdiction and of
        any
        exchanges upon which the stock of the Corporation may be listed shall have
        been
        fully complied with.

      

      6.10
        Securities
        Laws Compliance.
        The
        Corporation will diligently endeavor to comply with all applicable securities
        laws before any Options or Restricted Stock are granted under the Plan and
        before any Shares are issued pursuant to Options or as Restricted Stock.
        Without
        limiting the generality of the foregoing, the Corporation may require from
        the
        Grantee such investment representation or such agreement, if any, as counsel
        for
        the Corporation may consider necessary or advisable in order to comply with
        the
        Securities Act of 1933 as then in effect, and may require that the Grantee
        agree
        that any sale of the Shares will be made only in such manner as is permitted
        by
        the Committee. The Committee in its discretion may cause the Shares underlying
        the Options or subject to Restricted Stock grants to be registered under
        the
        Securities Act of 1933, as amended, by the filing of a Form S-8 Registration
        Statement covering the Shares available for grant or issuance under this
        Plan.
        Grantee shall take any action reasonably requested by the Corporation in
        connection with registration or qualification of the Shares under federal
        or
        state securities laws.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      6.11
        Award
        Agreement.
        Each
        Option and Restricted Stock granted under this Plan shall be evidenced by
        the
        appropriate written Award Agreement executed by the Corporation and the Grantee
        and shall contain each of the provisions and agreements specifically required
        to
        be contained therein pursuant to this Section 6, and such other terms and
        conditions as are deemed desirable by the Committee and are not inconsistent
        with the purpose of the Plan as set forth in Section 1.

      

      7.
        PLAN AMENDMENT AND TERMINATION.

      

      7.1
        Authority
        of Committee.
        The
        Committee may at any time discontinue granting Options or Restricted Stock
        under
        the Plan or otherwise suspend, amend or terminate the Plan and may, with
        the
        consent of a Grantee, make such modification of the terms and conditions
        of such
        Grantee’s Option or Restricted Stock grant as it shall deem advisable; provided
        that, except as permitted under the provisions of Section 5.2, the Committee
        shall have no authority to make any amendment or modification to this Plan
        or
        any outstanding Option or Restricted Stock grant thereunder which would:
        (i)
        increase the maximum number of shares which may be purchased pursuant to
        Options
        or Restricted Stock granted under the Plan, either in the aggregate or by
        a
        Grantee (except pursuant to Section 5.2); (ii) change the designation of
        the
        class of the employees eligible to receive ISOs; (iii) extend the term of
        the
        Plan or the maximum Option period thereunder; (iv) decrease the minimum ISO
        price or permit reductions of the price at which shares may be purchased
        for
        ISOs granted under the Plan; or (v) cause ISOs issued under the Plan to fail
        to
        meet the requirements of incentive stock options under Code Section 422.
        An
        amendment or modification made pursuant to the provisions of this Section
        7
        shall be deemed adopted as of the date of the action of the Committee effecting
        such amendment or modification and shall be effective immediately, unless
        otherwise provided therein, subject to approval thereof (1) within twelve
        (12)
        months before or after the effective date by stockholders of the Corporation
        holding not less than a majority vote of the voting power of the Corporation
        voting in person or by proxy at a duly held stockholders meeting when required
        to maintain or satisfy the requirements of Code Section 422 with respect
        to
        ISOs, and (2) by any appropriate governmental agency. No Option or Restricted
        Stock may be granted during any suspension or after termination of the Plan.
        

      

      7.2
        Ten
        (10) Year Maximum Term.
        Unless
        previously terminated by the Committee, this Plan shall terminate on October
        13,
        2018, and no Options shall be granted under the Plan thereafter.

      

      7.3
        Effect
        on Outstanding Options.
        Amendment, suspension or termination of this Plan shall not, without the
        consent
        of the Grantee, alter or impair any rights or obligations under any Option
        theretofore granted.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      8.
        EFFECTIVE DATE OF PLAN.
        This
        Plan was originally adopted effective as of May 4, 2007, and was scheduled
        to
        terminate on August 1, 2012. The maximum number of shares available for award
        under the original Plan was 1,000,000 shares. The Plan is being amended and
        restated in its entirety effective as of October 14, 2008, upon the approval
        by
        the affirmative vote of a majority of the issued and outstanding Shares of
        common stock of the Corporation represented at a duly held meeting at which
        a
        quorum was present. 

      

      9.
        MISCELLANEOUS PROVISIONS.

      

      9.1
        Exculpation
        and Indemnification.
        The
        Corporation shall indemnify and hold harmless the Committee from and against
        any
        and all liabilities, costs and expenses incurred by such persons as a result
        of
        any act, or omission to act, in connection with the performance of such persons’
duties, responsibilities and obligations under the Plan, other than such
        liabilities, costs and expenses as may result from the gross negligence,
        bad
        faith, willful conduct and/or criminal acts of such persons.

      

      9.2
        Governing
        Law.
        The
        Plan shall be governed and construed in accordance with the laws of the State
        of
        Nevada and the Code.

      

      9.3
        Compliance
        with Applicable Laws.
        The
        inability of the Corporation to obtain from any regulatory body having
        jurisdiction authority deemed by the Corporation’s counsel to be necessary to
        the lawful issuance and sale of any Shares upon the exercise of an Option
        or
        Restricted Stock grant shall relieve the Corporation of any liability in
        respect
        of the non-issuance or sale of such Shares as to which such requisite authority
        shall not have been obtained.

      

      

      
        	 	
                As
                  approved by the Governance, Compensation and Nominating Committee
                  of the
                  Board of Directors on September 12, 2008 and a majority of the
                  outstanding
                  shares of common stock of EnerJex Resources, Inc. represented at
                  a meeting
                  on October 14, 2008.

              

      

    

     

    
      

        
          	 	
                  By:
                    /s/
                    C. Stephen Cochennet        

                
	 	    
C.
                  Stephen Cochennet,
                  Secretary

        

      

       

      
        
          
          

        

        
          11

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