Document:

f8k123109ex10ii_clearlite.htm

     

    Exhibit 10.2

     

    
      NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE
SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS.  THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR
THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT.  NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
ARRANGEMENT SECURED BY THE SECURITIES.

      

      
        	
                Principal
      Amount: $______

              	
                Issue
      Date: December __________, 2009

              
	
                Purchase
      Price: $________

              	 
      

      

       

      FORM OF

      CONVERTIBLE PROMISSORY
NOTE

      

      FOR VALUE
RECEIVED, Clear-Lite Holdings, Inc., a Nevada corporation (hereinafter called
“Borrower”), hereby promises to pay to _______________ (the “Holder”) or order,
without demand, the sum of ______________ Dollars ($_____) (“Principal Amount”)
on December ___ 2011  (the “Maturity Date”),
if not sooner paid.

      

      The
Principal Amount of this Note represents a 16.67% original issue discount (the
“OID”) and this Note does not bear any additional interest.

      

      This Note
has been entered into pursuant to the terms of a subscription agreement between
the Borrower and the Holder dated at or about the date hereof (the “Subscription
Agreement”), and shall be governed by the terms of such Subscription
Agreement.  Unless otherwise separately defined herein, all
capitalized terms used in this Note shall have the same meaning as is set forth
in the Subscription Agreement.  The following terms shall apply to
this Note:

      

      ARTICLE
I

       

      GENERAL
PROVISIONS

       

            1.1           Payment
Grace Period.  The Borrower shall have a
seven (7) day grace period to pay any monetary amounts due under this Note,
after which grace period a default interest rate of fourteen percent (14%) per
annum shall apply.

      

      1.2           Conversion
Privileges.  The Conversion Privileges set forth in Article II
shall remain in full force and effect immediately from the date hereof and until
the Note is paid in full regardless of the occurrence of an Event of
Default.  The Note shall be payable in full on the Maturity Date,
unless previously converted into Common Stock in accordance with Article II
hereof.

      

      ARTICLE
II

      

      CONVERSION
RIGHTS

      

      The
Holder shall have the right to convert the principal and any interest due under
this Note into Shares of the Borrower's Common Stock, $.001 par value per share
(“Common Stock”) as set forth below.

      

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      2.1.           Conversion into the
Borrower's Common Stock.

      

      (a)           The
Holder shall have the right from and after the date of the issuance of this Note
and then at any time until this Note is fully paid, to convert any outstanding
and unpaid principal portion of this Note, and accrued interest, at the election
of the Holder (the date of giving of such notice of conversion being a
“Conversion Date”) into fully paid and nonassessable shares of Common Stock as
such stock exists on the date of issuance of this Note, or any shares of capital
stock of Borrower into which such Common Stock shall hereafter be changed or
reclassified, at the Conversion Price as defined in Section 2.1(b)
hereof,determined as provided herein.  Upon delivery to the Borrower
of a completed Notice of Conversion, a form of which is annexed hereto as
Exhibit A, Borrower shall issue and deliver to the Holder within four (4)
business days after the Conversion Date (such fourth day being the “Delivery
Date”) that number of shares of Common Stock for the portion of the Note
converted in accordance with the foregoing.  At the election of the
Holder, the Borrower will deliver accrued but unpaid interest on the Note, if
any, through the Conversion Date directly to the Holder on or before the
Delivery Date.  The number of shares of Common Stock to be issued upon
each conversion of this Note shall be determined by dividing that portion of the
outstanding principal amount of the Note and accrued but unpaid interest, if
any, to be converted, by the Conversion Price.

      

      (b)   
Subject
to adjustment as provided in Section 2.1(c) hereof, the conversion price per
share shall be equal to $0.30 (“Conversion Price”).

      

       (c)           
The Conversion Price and number and kind of shares or other securities to be
issued upon conversion determined pursuant to Section 2.1(a), shall be subject
to adjustment from time to time upon the happening of certain events while this
conversion right remains outstanding, as follows:

      

      A.           Merger, Sale of Assets,
etc.  If (A) the Borrower effects any merger
or  consolidation of the Borrower with or into another entity, (B) the
Borrower effects any sale of all or substantially all of its assets in one or a
series of related transactions,  (C) any tender offer or exchange
offer (whether by the Borrower or another entity) is completed pursuant to which
holders of Common Stock are permitted to tender or exchange their shares for
other securities, cash or property, (D) the Borrower consummates a stock
purchase agreement or other business combination (including, without limitation,
a reorganization, recapitalization, spin-off or scheme of arrangement) with one
or more persons or entities whereby such other persons or entities acquire more
than the 50% of the outstanding shares of Common Stock (not including any shares
of Common Stock held by such other persons or entities making or party to, or
associated or affiliated with the other persons or entities making or party to,
such stock purchase agreement or other business combination), (E) any “person”
or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of
the 1934 Act) is or shall become the “beneficial owner” (as defined in Rule
13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate
Common Stock of the Borrower, or (F) the Borrower effects any reclassification
of the Common Stock or any compulsory share exchange pursuant to which the
Common Stock is effectively converted into or exchanged for other securities,
cash or property (in any such case, a “Fundamental  Transaction”),
this Note, as to the unpaid principal portion thereof and accrued interest
thereon, shall thereafter be deemed to evidence the right to convert into such
number and kind of shares or other securities and property as would have been
issuable or distributable on account of such Fundamental Transaction, upon or
with respect to the securities subject to the conversion right immediately prior
to such Fundamental Transaction.  The foregoing provision shall
similarly apply to successive Fundamental Transactions of a similar nature by
any such successor or purchaser.  Without limiting the generality of
the foregoing, the anti-dilution provisions of this Section shall apply to such
securities of such successor or purchaser after any such Fundamental
Transaction.

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      B.           Reclassification,
etc.  If the Borrower at any time shall, by reclassification or
otherwise, change the Common Stock into the same or a different number of
securities of any class or classes that may be issued or outstanding, this Note,
as to the unpaid principal portion thereof and accrued interest thereon, shall
thereafter be deemed to evidence the right to purchase an adjusted number of
such securities and kind of securities as would have been issuable as the result
of such change with respect to the Common Stock immediately prior to such
reclassification or other change.

      

      C.           Stock Splits, Combinations
and Dividends.  If the shares of Common Stock are subdivided or
combined into a greater or smaller number of shares of Common Stock, or if a
dividend is paid on the Common Stock in shares of Common Stock, the Conversion
Price shall be proportionately reduced in case of subdivision of shares or stock
dividend or proportionately increased in the case of combination of shares, in
each such case by the ratio which the total number of shares of Common Stock
outstanding immediately after such event bears to the total number of shares of
Common Stock outstanding immediately prior to such event.

      

                                    
D.           Share
Issuance.   So long as this Note is outstanding, if the
Borrower shall issue any Common Stock except for the Excepted Issuances, prior
to the complete conversion or payment of this Note, for a consideration per
share that is less than the Conversion Price that would be in effect at the time
of such issuance, then, and thereafter successively upon each such issuance, the
Conversion Price shall be reduced to such other lower issue
price.  For purposes of this adjustment, the issuance of any security
or debt instrument of the Borrower carrying the right to convert such security
or debt instrument into Common Stock or of any warrant, right or option to
purchase Common Stock shall result in an adjustment to the Conversion Price upon
the issuance of the above-described security, debt instrument, warrant, right,
or option and again upon the issuance of shares of Common Stock upon exercise of
such conversion or purchase rights if such issuance is at a price lower than the
then applicable Conversion Price.  The reduction of the Conversion
Price described in this paragraph is in addition to the other rights of the
Holder described in the Subscription Agreement.  Common Stock issued
or issuable by the Borrower for no consideration will be deemed issuable or to
have been issued for $0.001 per share of Common Stock.  The reduction
of the Conversion Price described in this paragraph is in addition to the other
rights of the Holder described in the Subscription Agreement.

      

      (d)           Whenever
the Conversion Price is adjusted pursuant to Section 2.1(c) above, the Borrower
shall promptly mail to the Holder a notice setting forth the Conversion Price
after such adjustment and setting forth a statement of the facts requiring such
adjustment.

      

      (e)           During
the period the conversion right exists, Borrower will reserve from its
authorized and unissued Common Stock not less than an amount of Common Stock
equal to 120% of the amount of shares of Common Stock issuable upon the full
conversion of this Note.  Borrower represents that upon issuance, such
shares will be duly and validly issued, fully paid and
non-assessable.  Borrower agrees that its issuance of this Note shall
constitute full authority to its officers, agents, and transfer agents who are
charged with the duty of executing and issuing stock certificates to execute and
issue the necessary certificates for shares of Common Stock upon the conversion
of this Note.

      

      2.2           Method of
Conversion.  This Note may be converted by the Holder in whole
or in part as described in Section 2.1(a) hereof and the Subscription
Agreement.  Upon partial conversion of this Note, a new Note
containing the same date and provisions of this Note shall, at the request of
the Holder, be issued by the Borrower to the Holder for the principal balance of
this Note and interest which shall not have been converted or paid.

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      2.3.           Maximum
Conversion.  The Holder shall not be entitled to convert on a
Conversion Date that amount of the Note in connection with that number of shares
of Common Stock which would be in excess of the sum of (i) the number of shares
of Common Stock beneficially owned by the Holder and its affiliates on a
Conversion Date, (ii) any Common Stock issuable in connection with the
unconverted portion of the Note, and (iii) the number of shares of Common Stock
issuable upon the conversion of the Note with respect to which the determination
of this provision is being made on a Conversion Date, which would result in
beneficial ownership by the Holder and its affiliates of more than 4.99% of the
outstanding shares of Common Stock of the Borrower on such Conversion
Date.  For the purposes of the provision to the immediately preceding
sentence, beneficial ownership shall be determined in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended, and Regulation 13d-3
thereunder.  Subject to the foregoing, the Holder shall not be limited
to aggregate conversions of 4.99%.  The Holder shall have the
authority and obligation to determine whether the restriction contained in this
Section 2.3 will limit any conversion hereunder and to the extent that the
Holder determines that the limitation contained in this Section applies, the
determination of which portion of the Notes are convertible shall be the
responsibility and obligation of the Holder.  The Holder may waive the
conversion limitation described in this Section 2.3, in whole or in part, upon
and effective after 61 days prior written notice to the Borrower to increase
such percentage to up to 9.99%.

      

      2.4.           Optional Redemption of
Principal Amount.   Provided an Event of Default or an
event which with the passage of time or the giving of notice could become an
Event of Default has not occurred, whether or not such Event of Default has been
cured, the Borrower will have the option of prepaying the outstanding Principal
amount of this Note (“Optional Redemption”), in whole or in part, by paying to
the Holder a sum of money equal to one hundred and five percent (105%) of the
Principal amount to be redeemed, together with accrued but unpaid interest
thereon and any and all other sums due, accrued or payable to the Holder arising
under this Note or any Transaction Document through the Redemption Payment Date
as defined below (the “Redemption Amount”).  Borrower’s election to
exercise its right to prepay must be by notice in writing (“Notice of
Redemption”).  The Notice of Redemption shall specify the date for
such Optional Redemption (the “Redemption Payment Date”), which date shall be at
least ten (10) business days after the date of the Notice of Redemption (the
“Redemption Period”).  A Notice of Redemption shall not be effective
with respect to any portion of the Principal Amount for which the Holder has
previously delivered an election to convert, or subject to the previous
sentence, for conversions initiated or made by the Holder during the Redemption
Period.  On the Redemption Payment Date, the Redemption Amount, less
any portion of the Redemption Amount against which the Holder has permissibly
exercised its conversion rights, shall be paid in good funds to the Holder. A
Notice of Redemption may not be given nor may the Borrower effectuate a
Redemption without the consent of the Holder, if at any time during the
Redemption Period an Event of Default, or an event which with the passage of
time or giving of notice could become an Event of Default (whether or not such
Event of Default has been cured), has occurred.  During the Optional
Redemption Period, the Company must abide by all of its obligations to the Note
Holder.

      

      ARTICLE
III

       

      EVENT
OF DEFAULT

      

      The
occurrence of any of the following events of default (“Event of Default”) shall,
at the option of the Holder hereof, make all sums of principal and interest then
remaining unpaid hereon and all other amounts payable hereunder immediately due
and payable, upon demand, without presentment, or grace period, all of which
hereby are expressly waived, except as set forth below:

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      
 

      3.1           Failure to Pay Principal or
Interest.  The Borrower fails to pay any installment of
principal, interest or other sum due under this Note when due.

      

      3.2           Breach of
Covenant.  The Borrower breaches any material covenant or other
term or condition of the Subscription Agreement, Transaction Document or this
Note in any material respect and such breach, if subject to cure, continues for
a period of thirty (30) days after written notice to the Borrower from the
Holder.

      

      3.3           Breach of Representations
and Warranties.  Any material representation or warranty of the
Borrower made herein, in the Subscription Agreement or any Transaction Document
shall be false or misleading in any material respect as of the date made and the
Closing Date.

      

      3.4           Liquidation.   Any
dissolution, liquidation or winding up of Borrower or any substantial portion of
its business.

       

      3.5           Cessation of
Operations.   Any cessation of operations by Borrower or
Borrower admits it is otherwise generally unable to pay its debts as such debts
become due, provided, however that any disclosure of the Borrower’s ability to
continue as a “going concern” shall not be an admission that the Borrower cannot
pay its debts as they come due.

       

      3.6           Receiver or
Trustee.  The Borrower or any Subsidiary of Borrower shall make
an assignment for the benefit of creditors, or apply for or consent to the
appointment of a receiver or trustee for it or for a substantial part of its
property or business; or such a receiver or trustee shall otherwise be
appointed.

      

      3.7           Judgments.  Any
money judgment, writ or similar final process shall be entered or filed against
Borrower or any of its property or other assets for more than
$500,000.

      

      3.8           Bankruptcy.  Bankruptcy,
insolvency, reorganization or liquidation proceedings or other proceedings or
relief under any bankruptcy law or any law, or the issuance of any notice in
relation to such event, for the relief of debtors shall be instituted by or
against the Borrower or any Subsidiary of Borrower.

      

       3.9           Delisting.   Delisting
of the Common Stock from any Principal Market.

      

      

      3.10           Executive Officers Breach of
Duties.  Any of Borrower’s named executive officers is
convicted of a violation of securities laws, or a settlement in excess of
$250,000 is reached by any such officer or director relating to a violation of
securities laws, breach of fiduciary duties or self-dealing.

      

      ARTICLE
IV

      

      MISCELLANEOUS

      

      4.1           Failure or Indulgence Not
Waiver.  No failure or delay on the part of the Holder hereof
in the exercise of any power, right or privilege hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such power,
right or privilege preclude other or further exercise thereof or of any other
right, power or privilege.  All rights and remedies existing hereunder
are cumulative to, and not exclusive of, any rights or remedies otherwise
available.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      4.2           Notices.  All
notices, demands, requests, consents, approvals, and other communications
required or permitted hereunder shall be in writing and, unless otherwise
specified herein, shall be (i) personally served, (ii) deposited in the mail,
registered or certified, return receipt requested, postage prepaid, (iii)
delivered by reputable air courier service with charges prepaid, or (iv)
transmitted by hand delivery, telegram, or facsimile, addressed as set forth
below or to such other address as such party shall have specified most recently
by written notice.  Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or delivery by facsimile, with accurate confirmation generated by the
transmitting facsimile machine, at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is
to be received) or (b) on the first business day following the date of mailing
by express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur.  The
addresses for such communications shall be:

       

      If to the
Company, to:

      Clear-Lite
Holdings, Inc.

      Attn:
Thomas J. Irvine, CEO

      102 NE
2nd Street, PMB 400

      Boca
Raton, FL 33432

      facsimile:
(561) 852 -2322

      

      With a
copy by fax only to (which copy shall not constitute notice):

      Anslow
& Jaclin LLP

      Attn:
Joseph M. Lucosky, Esq.

      195 Route
9 South, Suite 204

      Manalapan,
NJ 07726

      facsimile:
(732) 577-1188

      

      If to the
Holder:

      To the
address and facsimile number listed on the first paragraph of this
Note

      

      With a
copy by fax only to (which copy shall not constitute notice):

      

      

      4.3           Amendment
Provision.  The term “Note” and all reference thereto, as used
throughout this instrument, shall mean this instrument as originally executed,
or if later amended or supplemented, then as so amended or
supplemented.

       

      4.4           Assignability.  This
Note shall be binding upon the Borrower and its successors and assigns, and
shall inure to the benefit of the Holder and its successors and
assigns.  The Borrower may not assign its obligations under this
Note.

       

      4.5           Cost of
Collection.  If default is made in the payment of this Note,
Borrower shall pay the Holder hereof reasonable costs of collection, including
reasonable attorneys’ fees.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      4.6           Governing
Law.  This Note shall be governed by and construed in
accordance with the laws of the State of New York without regard to conflicts of
laws principles that would result in the application of the substantive laws of
another jurisdiction.  Any action brought by either party against the
other concerning the transactions contemplated by this Agreement must be brought
only in the civil or state courts of New York or in the federal courts located
in the State and county of New York.  Both parties and the individual
signing this Agreement on behalf of the Borrower agree to submit to the
jurisdiction of such courts.  The prevailing party shall be entitled
to recover from the other party its reasonable attorney's fees and
costs.  In the event that any provision of this Note is invalid or
unenforceable under any applicable statute or rule of law, then such provision
shall be deemed inoperative to the extent that it may conflict therewith and
shall be deemed modified to conform with such statute or rule of law. Any such
provision which may prove invalid or unenforceable under any law shall not
affect the validity or unenforceability of any other provision of this Note.
Nothing contained herein shall be deemed or operate to preclude the Holder from
bringing suit or taking other legal action against the Borrower in any other
jurisdiction to collect on the Borrower's obligations to Holder, to realize on
any collateral or any other security for such obligations, or to enforce a
judgment or other decision in favor of the Holder.  This Note shall be deemed an
unconditional obligation of Borrower for the payment of money and, without
limitation to any other remedies of Holder, may be enforced against Borrower by
summary proceeding pursuant to New York Civil Procedure Law and Rules Section
3213 or any similar rule or statute in the jurisdiction where enforcement is
sought.  For purposes of such rule or statute, any other document or
agreement to which Holder and Borrower are parties or which Borrower delivered
to Holder, which may be convenient or necessary to determine Holder’s rights
hereunder or Borrower’s obligations to Holder are deemed a part of this Note,
whether or not such other document or agreement was delivered together herewith
or was executed apart from this Note.

       

      4.7           Maximum
Payments.  Nothing contained herein shall be deemed to
establish or require the payment of a rate of interest or other charges in
excess of the maximum rate permitted by applicable law.  In the event
that the rate of interest required to be paid or other charges hereunder exceed
the maximum rate permitted by applicable law, any payments in excess of such
maximum rate shall be credited against amounts owed by the Borrower to the
Holder and thus refunded to the Borrower.

       

      4.8           Non-Business
Days.   Whenever any payment or any action to be made
shall be due on a Saturday, Sunday or a public holiday under the laws of the
State of New York, such payment may be due or action shall be required on the
next succeeding business day and, for such payment, such next succeeding day
shall be included in the calculation of the amount of accrued interest payable
on such date.

       

      4.9           Redemption.  This
Note may not be redeemed or called without the consent of the Holder except as
described in this Note or the Subscription Agreement.

      

      4.10         Shareholder
Status.  The Holder shall not have rights as a shareholder of
the Borrower with respect to unconverted portions of this
Note.  However, the Holder will have the rights of a shareholder of
the Borrower with respect to the Shares of Common Stock to be received after
delivery by the Holder of a Conversion Notice to the Borrower.

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      
 

      IN WITNESS WHEREOF, Borrower
has caused this Note to be signed in its name by an authorized officer as of the
____ day of December, 2009.

      

      CLEAR-LITE
HOLDINGS, INC.

      

      

      

      

      By:________________________________

                 Name:

                 Title:

      

      WITNESS:

      

      

      

      ______________________________________

       

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      NOTICE OF
CONVERSION

      

      (To be
executed by the Registered Holder in order to convert the Note)

      

      

      The
undersigned hereby elects to convert $_________ of the principal and $_________
of the interest due on the Note issued by CLEAR-LITE HOLDINGS, INC.
on December___, 2009 into Shares of Common Stock of CLEAR-LITE HOLDINGS,
INC. (the “Borrower”) according to the conditions set forth in such Note, as of
the date written below.

      

      

      

      Date of
Conversion:____________________________________________________________________

      

      

      Conversion
Price:______________________________________________________________________

      

      

      Number of
Shares of Common Stock Beneficially Owned on the Conversion Date: Less than 5%
of the outstanding Common Stock of CLEAR-LITE HOLDINGS, INC.

      

      

      Shares To
Be
Delivered:_________________________________________________________________

      

      

      Signature:____________________________________________________________________________

      

      

      Print
Name:__________________________________________________________________________

      

      

      Address:   
_____________________________________________________________________________

      

         _____________________________________________________________________________

      
 

       

      9f8k123109ex10i_recovery.htm

    Exhibit
10.1

     

     

    Amended
and Restated Employment Agreement

     

    Agreement dated December 31, 2009 by
and between Recovery Energy, Inc a Nevada corporation (the "Company"), and
Jeffrey A. Beunier (the “Executive”).

           

          WHEREAS, the Company and
the Executive have previously entered into an Employment Agreement dated
September 14, 2009 (the "Original Agreement"); and

     

         WHEREAS, the Company recognizes
that the Executive's talents and abilities are unique, and are integral to the
success of Recovery Energy, Inc. and thus wishes to secure the ongoing services
of the Executive on the terms and conditions set forth herein;

    
      

                        NOW,
THEREFORE, in consideration of the premises and the mutual covenants set forth
below, the Original Agreement is amended and restated as follows:

      

    

    
      
        	
                1.  

              	
                Employment:  The Company
      hereby agrees to employ the Executive as the Chief Executive Officer
      (“CEO”) and President of the Company, and the Executive hereby accepts
      such employment, on the terms and conditions set forth
    below.

              

      

    

    
      

    

    
      
        	
                2.  

              	
                Start
      Date:  The
      Executive’s start date will be on or around September 14,
      2009.

              

      

    

    

    
      	
              3.  

            	
              Compensation
      and Related Matters:

            

    

    

    
      	
              a.  

            	
              Base Salary.
      During the Executive's term of service (the "Employment Period"), the
      Company shall pay the Executive a base salary at the rate of not less than
      $200,000 per year (“Base Salary”).  The Executive’s base Salary
      shall be paid in approximately equal installments every two
      weeks.  If the Executive’s Base Salary is increased by the
      Company, such increased Base Salary shall then constitute the Base Salary
      for all purposes of this agreement.

            

    

    

    
      	
              b.  

            	
              Stock
      Compensation: As of September 14, 2009 the Executive was granted
      464,200 shares (the "Initial Stock Grant") of the Company's common stock
      ("Common Stock").  20% of the shares of the Initial Stock Grant
      shall vested upon issuance on January 1, 2011.  The remaining
      shares of the Initial Stock Grant will vest in 12 equal amounts on the
      first day of each calendar quarter commencing on April 1, 2010 and ending
      on January 1, 2013.

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    Notwithstanding
any provision to the contrary, subsequent to the Company's first capital raise
or January 1, 2010, whichever occurs first, the Initial Stock Grant shall vest
upon the earlier to occur of a “Change in Control” of the Company or the
termination of the Executive’s services as CEO other than by the Executive’s
voluntary resignation or for “Cause” (as each term is defined
below).

    

    For
purposes of this Agreement, “Change in Control” shall mean the occurrence,
subsequent to the Effective Date, of any of the following: (A) by a transaction
or series of transactions, any “person” or “group” (within the meaning of
Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)) becomes the “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of more than 30% of the
combined voting power of the Company’s then outstanding securities (provided
such person or group was not a beneficial owner of more than 30% of the combined
voting power of the Company’s then outstanding securities as of the Effective
Date); (B) as a result of any merger, consolidation, combination or sale or
issuance of securities of the Company, or as a result of or in connection with a
contested election of directors, the persons who were directors of the Company
as of the Effective Date cease to constitute a majority of the Board of
Directors of the Company ("the Board"); (C) by a transaction or series of
transactions, the authority of the Board over any activities of the Company
becomes subject to the consent, agreement or cooperation of a third party other
than shareholders of the Company.

    

    For
purposes of this Agreement, “Cause” shall mean (A) the Executive’s conviction by
a court of competent jurisdiction as to which no further appeal can be taken of
a felony (other than a violation based on operation of a vehicle) or entering
the plea of nolo contendere to such crime by the Executive; (B) the
Executive’s commission of a crime involving fraud or intentional dishonesty,
which results in the Executive’s substantial personal enrichment and material
adverse effect to the Company; (C) the Executive becoming subject to any
securities related sanctions related to the Company other than those based on an
act of the Company itself for which the Executive is charged solely as a result
of his position with the Company.

    

    
      	
              c.  

            	
              Subsequent
      Grants.  Upon the occurrence of each of the following
      events occurring (x) any time during the Executive’s term of service, or
      (y) within 12 months after the effective date of the termination of the
      Executive’s service other than by the Executive’s voluntary resignation or
      for Cause, the Company will issue to the Executive the cumulative number
      of shares Common Stock (the “Subsequent
  Grants”):

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    (1.) upon the
Company’s attainment of market capitalization of $100,000,000 or more, 100,000
shares of fully-vested Common Stock;

    (2.) upon the
Company’s attainment of market capitalization of at least $200,000,000 or more,
the shares specified under subsection c(1) to the extent not yet issued,
plus 200,000 shares of fully-vested Common Stock;

    (3.) upon the
Company’s attainment of market capitalization of $300,000,000 or more, the
shares specified under subsections c(1) and (2) to the extent not yet
issued, plus 300,000 shares of fully-vested Common Stock;

    (4.) upon the
Company’s attainment of market capitalization of $400,000,000 or more, the
shares specified under subsections c(1), (2) and (3) to the
extent not yet issued, plus 400,000 shares of fully-vested Common Stock;
and

    (5.) upon the
Company’s attainment of market capitalization of $500,000,000 or more, the
shares specified under subsections c(1), (2), (3), and (4) to the
extent not yet issued, plus 500,000 shares of fully-vested Common
Stock.

    

    By way of
example, if, as of the date that the Company’s market capitalization is
first  measured for purposes of this subsection c, the market
capitalization is determined to be $350,000,000, the Executive would become
entitled to receive 600,000 shares of fully-vested Common Stock, as the
cumulative issuances under subsections c(1), (2) and (3).

    

    
      	
              d.  

            	
              Over Riding Royalty
      Interests: The Executive will receive a 1% overriding royalty
      interest (“ORRI”) on all wells and leases acquired by the Company during
      the Employment Period.  The ORRI will be assigned to the
      Executive or an entity chosen by the Executive free and clear of all
      liens, and the Company will have no interests in the ORRI once
      assigned.  Executive hereby waives his right to receive an ORRI
      in the wells and leases acquired by the Company effective October 1, 2009
      (known as the Church properties) and effective December 1, 2009 (known as
      the Wilke properties); provided, that if the Company repurchases such
      properties after the date hereof the Executive shall be entitled to the
      ORRI.

            

    

    

    
      
        	
                e.  

              	
                Co-Investment:
      During the Employment Period the Executive or an affiliate of the
      Executive will have an option to co-invest (with Board approval) in any
      and all of the Company's projects on a well by well and lease by lease
      basis at cost.  The election to co-invest must be made within 90
      days upon the completion of a well or acquisition of a lease, well, or
      property and will date to the effective date of the completion of the well
      or acquisition of a lease well or property.  The Executive will
      be limited in acquiring a maximum of 10% of any
  asset.

              

      

    

    
       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

    

    
      
        	
                f.  

              	
                Annual Bonus:
      For each full fiscal year of the Company that begins and ends during the
      Employment Period, and for the portion of the fiscal year of the Company
      that begins in 2009 ("Fiscal Year 2009"), the Executive shall be eligible
      to earn an annual cash bonus in such amount as shall be determined by the
      Compensation Committee of the Board (the "Compensation Committee") (the
      "Annual Bonus") based on the achievement by the Company of performance
      goals established by the Compensation Committee for each such fiscal year
      (or portion of Fiscal Year 2009), which may include targets related to the
      earnings before interest, taxes, depreciation and amortization ("EBITDA"),
      hydrocarbon production level, hydrocarbon reserve amounts of the Company;
      provided, that the Annual Bonus shall be targeted no less than $100,000
      (with board approval). The Compensation Committee shall establish
      objective criteria to be used to determine the extent to which performance
      goals have been satisfied.

              

      

    

    
      

    

    
      
        	
                g.  

              	
                Vacation: The
      Executive shall be entitled to four weeks of vacation per year. Vacation
      not taken during the applicable fiscal year (but not in excess of three
      weeks) shall be carried over to the next following fiscal
      year.

              

      

    

    
      

    

    
      
        	
                h.  

              	
                Expenses: The
      Company will reimburse the Executive for all expenses related to Company
      business, including, but not limited to travel, marketing, communication,
      due diligence, legal fees and expenses,
etc.

              

      

    

    
      

    

    
      
        	
                i.  

              	
                Medical
      Insurance.  The Company will provide the Executive with
      family medical insurance coverage reasonably comparable to the coverage
      currently held by the
Executive.

              

      

    

    
      

    

    
      	
              4.  

            	
              Dedication
      of Time/Conflict of Interests:  During the
      Employment Period, the Executive shall serve as the Chief Executive
      Officer and President of the Company, with such duties, authority and
      responsibilities as are normally associated with and appropriate for such
      a position. The Executive shall report directly to the
    Board.

            

    

     

    The Company acknowledges the Executive
is not exclusively employed by the Company and the Company acknowledges the
Executive is currently active in a number of activities related to the energy
industry and will remain active in activities not associated with the
Company.  These activities may or may not be in conflict with the best
interests of the Company.  The Company specifically acknowledges the
Executive is permitted to continue allocating time to business activities
outside of the Company and waives any and all conflicts of interest(s) that may
or may not exist or develop in the future.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    The Executive acknowledges the Company
is dependent upon his knowledge and skill set and will dedicate a minimum of ten
hours per week to the Company’s business.

    

    
      	
              5.  

            	
              Responsibilities: As the CEO and
      President of Recovery Energy, Inc, the Executive will be responsible
      for developing and implementing the Company’s business plan, locate and
      review prospective acquisition targets, negotiate any and all required
      contracts and agreements, oversee the development plan of all acquired
      properties, execute any and all documents required to implement the
      Company’s business plan, and legally bind the Company to any agreement or
      contract.  As such, the Executive will have the authority
      to reject or modify any acquisition or development
  plan.

            

    

    

    
      	
              6.  

            	
              At-Will
      Employment:
      The Executive’s employment with the Company is on an at-will
      basis.  If terminated for any reason other than Cause, the
      Company will be responsible to provide the Executive a minimum of 90 days
      Base Salary as severance payable immediately upon termination as well as
      any reimbursement of all business expenses incurred but not yet
      reimbursed.  Furthermore, the Company will release any and all
      claims to any vested Common Stock, ORRI or other compensation provided
      through the date of termination or to which the Executive is entitled at
      the date of termination.  The provisions of Section 9 will
      continue in full force for a minimum period of five years after
      termination.

            

    

    

    
      	
              7.  

            	
              Location: You will be based in
      Denver, Colorado.  During the Employment Period, the Company
      shall provide the Executive with an office if the need
      arises.  Upon mutual agreement of the Executive and the Company,
      offices maybe relocated to a different
location.

            

    

    

    
      	
              8.  

            	
              Representations
      and Warranties: Company represents and
      warrants to Executive that this Agreement has been duly authorized,
      executed and delivered by the Company and, assuming the due execution by
      the Executive, constitutes a legal, valid and binding agreement of the
      Company, enforceable against the Company in accordance with its
      terms.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      
        	
                9.  

              	
                Indemnity: The Company agrees
      that if the Executive is made a party or is threatened to be made a party
      to any action, suit or proceeding, whether civil, criminal, administrative
      or investigative (a "Proceeding") by reason of the fact that the Executive
      is or was a trustee, director or officer of the Company or any predecessor
      to the Company or any of their affiliates or is or was serving at the
      request of the Company, any predecessor to the Company or any of their
      affiliates as a trustee, director, officer, member, employee or agent of
      another corporation or a partnership, joint venture, limited liability
      company, trust or other enterprise, including, without limitation, service
      with respect to employee benefit plans, whether or not the basis of such
      Proceeding is alleged action in an official capacity as a trustee,
      director, officer, member, employee or agent while serving as a trustee,
      director, officer, member, employee or agent, the Executive shall be
      indemnified and held harmless by the Company to the fullest extent
      authorized by Nevada law, as the same exists or may hereafter be amended,
      against all Expenses incurred or suffered by the Executive in connection
      therewith, and such indemnification shall continue as to the Executive
      even if the Executive has ceased to be an officer, director, trustee or
      agent, or is no longer employed by the Company and shall inure to the
      benefit of his heirs, executors and
  administrators.

              

      

    

    
      

    

    
      
        	
                a.  

              	
                Expenses. As
      used in Section 9, the term "Expenses" shall include, without limitation,
      damages, losses, judgments, liabilities, fines, penalties, excise taxes,
      settlements, and costs, attorneys' fees, accountants' fees, and
      disbursements and costs of attachment or similar bonds, investigations,
      and any expenses of establishing a right to indemnification under this
      Agreement.

              

      

    

    
      

    

    
      
        	
                b.  

              	
                Enforcement. If
      a claim or request under this Section 9 is not paid by the Company or on
      its behalf, within 30 days after a written claim or request has been
      received by the Company, the Executive may at any time thereafter bring
      suit against the Company to recover the unpaid amount of the claim or
      request and if successful in whole or in part, the Executive shall be
      entitled to be paid also the expenses of prosecuting such suit. All
      obligations for indemnification hereunder shall be subject to, and paid in
      accordance with, applicable Nevada
law.

              

      

    

    
      

    

    
      
        	
                c.  

              	
                Advances of
      Expenses. Expenses incurred by the Executive in connection with any
      Proceeding shall be paid by the Company in advance upon request of the
      Executive that the Company pay such Expenses, but only in the event that
      the Executive shall have delivered in writing to the Company (i) an
      undertaking to reimburse the Company for Expenses with respect to which
      the Executive is not entitled to indemnification and (ii) a statement of
      his good faith belief that the standard of conduct necessary for
      indemnification by the Company has been met.

                 

              

      

      
        	
                d.  

              	
                Insurance.  The
      Company will maintain a Director’s and Officer’s Insurance Policy naming
      the Executive as a covered party in an amount deemed mutually sufficient
      to the Company and the Executive.  The Executive will pursue the
      policy and its enforcement with Board
approval.

              

      

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              10.  

            	
              Survival
      of Certain Provisions: The representations,
      warranties and covenants and indemnity provisions contained in Sections 8
      and 9 of this Agreement and the Company’s obligation to pay the Executive
      any compensation earned pursuant hereto shall remain operative and in full
      force and effect regardless of any completion or termination of this
      Agreement and shall be binding upon, and shall inure to the benefit of,
      any successors, assigns, heirs and personal representatives of the
      Company, the indemnified parties and any such
  person.

            

    

    

    
      	
              11.  

            	
              Notices: Notice given pursuant
      to any of the provisions of this Agreement shall be in writing and shall
      be mailed or delivered (a) if to the Company, at its offices at 1515
      Wynkoop, Suite 200, Denver CO 80202, and (b) if to the Executive, at his
      offices at 4001 E 3rd
      Ave, Denver, CO 80220.

            

    

    

    
      	
              12.  

            	
              Counterparts: This Agreement may be
      executed simultaneously in two or more counterparts, each of which shall
      be deemed an original, but all of which shall constitute one and the same
      instrument.

            

    

    

    
      	
              13.  

            	
              Third
      Party Beneficiaries: This Agreement has
      been and is made solely for the benefit of the parties hereto, and their
      respective successors and assigns, and no other person shall acquire or
      have any right under or by virtue of this
  Agreement.

            

    

    

    
      	
              14.  

            	
              Validity:
      The invalidity or unenforceability of any provision or provisions of this
      Agreement shall not affect the validity or enforceability of any other
      provision of this Agreement, which shall remain in full force and
      effect.

            

    

    

    
      	
              15.  

            	
              Dispute
      Resolution:
      If a dispute arises out of or relating to this Agreement or the breach of
      this Agreement, and if the dispute cannot be settled through direct
      discussions, the parties agree to first endeavor to settle the dispute in
      an amicable manner by mediation. Mediation shall consist of an informal,
      nonbinding conference or conferences between the parties and the mediator
      jointly, and at the discretion of the mediator, then in separate caucuses
      in which the mediator will seek to guide the parties to a resolution of
      the case. The parties shall attempt to select a mutually acceptable
      mediator. If the parties cannot agree upon a mediator, the parties shall
      seek assistance in the appointment of a mediator from a District Judge in
      the State of Colorado.

            

    

    

    
      
        	
                a.  

              	
                Legal
      Fees and Expenses: If any contest or
      dispute shall rise between the Company and the Executive regarding any
      provision of this Agreement, the Company shall reimburse the Executive for
      all legal fees and expenses incurred by the Executive in connection with
      such contest or dispute unless an unlawful act has preceded, but only if
      the Executive prevails to a substantial extent with respect to the
      Executive's claims brought and pursued in connection with such contest or
      dispute. Such reimbursement shall be made as soon as practicable following
      the resolution of such contest or dispute (whether or not appealed) to the
      extent the Company receives reasonable written evidence of such fees and
      expenses.

              

      

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
 

    
      	
              16.  

            	
              Choice
      of Law, Jurisdiction and Venue: This Agreement shall
      be governed by, construed, and enforced in accordance with the laws of the
      State of Colorado. Any and all actions, suits, or judicial proceedings
      upon any claim arising from or relating to this Agreement, subject to
      Paragraph 9 herein, shall be instituted and maintained in the State of
      Colorado. Each party waives the right to change of venue, or to file any
      action, suit or judicial proceeding in federal court. Notwithstanding this
      provision, if it is judicially determined that either party may file an
      action, suit or judicial proceeding in federal court, such action, suit or
      judicial proceeding shall be in the Federal District Court for the
      District of Colorado.

            

    

    

    
      	
              17.  

            	
              Miscellaneous: No provisions of this
      Agreement may be amended, modified, or waived unless such amendment or
      modification is agreed to in writing signed by the Executive and by a duly
      authorized officer or a director of the Company, and such waiver is set
      forth in writing and signed by the party to be charged. No waiver by
      either party hereto at any time of any breach by the other party hereto of
      any condition or provision of this Agreement to be performed by such other
      party shall be deemed a waiver of similar or dissimilar provisions or
      conditions at the same or at any prior or subsequent time. No agreements
      or representations, oral or otherwise, express or implied, with respect to
      the subject matter hereof have been made by either party which are not set
      forth expressly in this Agreement. The respective rights and obligations
      of the parties hereunder of this Agreement shall survive the Executive's
      termination of employment and the termination of this Agreement to the
      extent necessary for the intended preservation of such rights and
      obligations.

            

    

    

    
      	
              18.  

            	
              Section
      Headings: The section headings in this Agreement are for
      convenience of reference only, and they form no part of this Agreement and
      shall not affect its
interpretation.

            

    

    

    The
parties’ authorized representatives have executed this Agreement as of the
Effective Date, as defined above.

    

    

    Jeffrey
A.
Beunier                                                                Recovery
Energy, Inc.

    

    

    _____________________________                            
By:  _______________________

     Name: Roger A.
Parker

     Title: Chairman of the Board of
Directors

    

    

    

    
8

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