Document:

ex10-1.htm

    

     

    EMPLOYMENT
AGREEMENT

     

    

    THIS EMPLOYMENT AGREEMENT
(this “Agreement”) is made
and entered into as of the 1st day of
August, 2008, by and between EnerJex Resources, Inc., a
Nevada corporation (“EnerJex”), and C. Stephen Cochennet (“Cochennet”).

    

    W
I T N E S S E T H:

    

    WHEREAS, the officers,
managers and/or directors of EnerJex are of the opinion that Cochennet has
education, experience and/or expertise which is of value to EnerJex and its
owners, and

    

    WHEREAS, EnerJex and Cochennet
desire to enter into this Employment Agreement, pursuant to which Cochennet
shall be employed by EnerJex, to set forth the respective rights, duties and
obligations of the parties hereto.

    

    NOW THEREFORE, in
consideration of the promises and covenants contained herein, and other good and
valuable consideration, the receipt and sufficiency of which the parties hereto
acknowledge, EnerJex and Cochennet agree as follows:

    

    
      	
              1.  

            	
              EMPLOYMENT.  EnerJex
      hereby agrees to employ Cochennet and Cochennet hereby accepts such
      employment, upon the terms and conditions hereinafter set
      forth.

            

    

    

    
      	
              2.  

            	
              TERM.  For
      purposes of this Agreement, “Term” shall
      mean the original term (as defined in Section 2.1
      below), if Renewal Term is initiated, then “Term” shall mean the renewal
      term period.

            

    

    

    
      	
              2.1  

            	
              Original
      Term: The
      Term of this Agreement shall commence on August 1, 2008 and expire on July
      31, 2011, unless sooner terminated pursuant to the terms and provisions
      herein stated.

            

    

    

    
      	
              2.2  

            	
              Renewal
      Term(s):  This
      Agreement shall automatically be extended for additional one (1) year
      renewal terms unless earlier terminated in accordance with the provisions
      of Section 6 below. Within 180 days from the end of the original contract
      either party can notify the other side if they desire to terminate the
      contract, otherwise the contract automatically renews as stated
      above.

            

    

    

    3.           COMPENSATION.

    

    
      	
              3.1  

            	
              Salary:   EnerJex shall pay
      Cochennet a base annual salary of Two Hundred Thousand Dollars ($200,000)
      per annum, payable in accordance with EnerJex’s normal policies but in no
      event less often than semi-monthly (the “Base
      Salary”).  Effective April 1, 2009 and each April 1st
      thereafter,

            

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    Cochennet’s
Base Salary shall be reviewed and adjusted in the discretion of the Governance
Compensation and Nominating Committee of the Board of Directors of EnerJex. The
Governance, Compensation and Nominating Committee of the Board of Directors
shall have the right to increase the Base Salary more often than annually at its
sole discretion.

    

    
      	
              3.2  

            	
              Incentive
      Compensation for Fiscal Year 2009 and Future Years: Cochennet shall also
      be eligible for incentive compensation in accordance with Addendum A,
      President and Chief Executive Officer Incentive Compensation Plan,
      attached hereto and made a part hereof by this
  reference.

            

    

    

    
      	
              3.3  

            	
              Fiscal
      Year 2008 Incentive Compensation: EnerJex did not have a
      formal annual incentive plan in place covering the President and Chief
      Executive Officer for the fiscal year ended March 31, 2008.  In
      recognition of the accomplishments of this past fiscal year, EnerJex shall
      pay Cochennet a lump sum cash bonus equal to $50,000.00, less applicable
      taxes, within five (5) business days of the execution of this Agreement.
      In addition to the cash bonus, EnerJex will grant Cochennet 30,000 options
      of EnerJex common stock priced at $6.25 per share upon execution of this
      agreement. The options will vest immediately and will have a three year
      term.

            

    

    

    
      	
              3.4  

            	
              Signing
      Bonus: As a
      signing bonus, Cochennet shall be paid a one-time bonus equal to 45,000
      options of EnerJex common stock priced at $6.25 per share.  The
      options shall vest based on the following schedule: 10,000 options shall
      vest on July 1, 2009; 15,000 options shall vest on July 1, 2010; and
      20,000 options shall vest on July 1, 2011. The options will be exercisable
      for a three year term following the vesting date. Cochennet must be
      employed by EnerJex on the above vesting dates for these options to be
      vested.

            

    

    

    
      	
              3.5  

            	
              Equity
      Incentive Plans:  Cochennet shall be eligible to
      participate in EnerJex’s equity incentive plans during the term of
      employment as determined by the Governance, Compensation and Nominating
      Committee of the Board of Directors.  EnerJex anticipates
      approaching the shareholders to amend or adopt a plan which will authorize
      issuance of restricted shares of common stock of EnerJex to be used in
      incentive compensation programs.

            

    

    

    4.           EMPLOYEE
BENEFITS.

    

    
      	
              4.1  

            	
              General
      Benefits:  Cochennet
      shall be entitled to receive or participate in all benefit plans and
      programs of EnerJex made available from time to time to executives or
      senior management of EnerJex, including but not limited to, dental and
      medical insurance, pension and profit sharing plans, 401(k) plans,
      incentive savings plans, stock option plans, group
  life

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    insurance,
salary continuation plans, disability coverage and other fringe
benefits.

    

    
      	
              4.2  

            	
              Long-term
      Disability Insurance: If EnerJex does not
      maintain a long term disability plan for its executives and senior
      management, Cochennet may seek out and obtain individual long-term
      disability insurance (covering a disability lasting for over 180 days) and
      EnerJex shall pay for and maintain such insurance for the Term of this
      Agreement, including any Renewal Term(s), sufficient to pay Cochennet an
      amount up to 50% of his base salary for the period of
      incapacity.  Notwithstanding the foregoing, in no event shall
      EnerJex’s annual payment for such coverage exceed $2,000.00 per year,
      unless otherwise approved by the Governance, Compensation and Nominating
      Committee of the Board of
Directors.

            

    

    

    
      	
              4.3  

            	
              Director
      and Officer Insurance: EnerJex shall use
      commercially reasonable efforts to purchase and maintain a Directors and
      Officers liability insurance policy on terms and conditions deemed
      acceptable by the Board of Directors, acting in good faith, which policy
      shall cover Cochennet at all times during his employment Term, including
      any Renewal Term(s). Such liability insurance shall be at a value of a
      minimum of One Million dollars
($1,000,000).

            

    

    

    
      	
              4.4  

            	
              Business
      Expense:  Cochennet
      shall be entitled to receive proper reimbursement for all reasonable
      out-of-pocket expenses incurred for purposes of paying business expenses,
      including without limitation, business travel, entertainment, lodging and
      similar activities directly by Cochennet in performing Cochennet’s duties
      and obligations under this Agreement, including those expenses incurred
      for the use of a company cell phone and home office.  EnerJex
      shall pay or reimburse such expenses on at least a monthly basis, upon
      submission by Cochennet of appropriate receipts, vouchers or other
      documents in accordance with EnerJex’s
policy.

            

    

    

    
      	
              4.5  

            	
              Automobile
      Expenses:
      EnerJex shall provide Cochennet with either (i) a corporate vehicle
      owned or leased by EnerJex, or (ii) an allowance of up to $1,000.00 per
      month for the lease or purchase payments. In addition, EnerJex shall pay
      for all expenses relating to Cochennet’s operation and use of an
      automobile in the course of performing duties and obligations under this
      Agreement.  EnerJex shall pay or reimburse such expenses on at
      least a monthly basis, upon submission by Cochennet of appropriate
      receipts, vouchers or other documents in accordance with EnerJex’s
      policy.

            

    

    

    
      	
              4.6  

            	
              Vacation:  Cochennet
      shall be entitled during the Term of this Agreement to four (4) weeks
      vacation per year during which time Cochennet’s compensation will be paid
      in full.  In an effort to keep Cochennet
  fresh

            

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    and
alert, Cochennet should make every effort to use allotted vacation time and
there shall be no carry forward of unused days.  Cochennet may take
the vacation periods at any time during the year as long as Cochennet schedules
time off as to not create hardship on EnerJex.  In addition, Cochennet
shall have such other days off, including paid sick leave and paid holidays, in
accordance with EnerJex’s policy.

    

    5.           DUTIES/SERVICE.

    

    
      	
              5.1  

            	
              Position: Cochennet is employed
      as President and Chief Executive Officer and a nominated Member of the
      Board of Directors and
      shall perform such services and duties as are defined in Addendum B, Job
      Description, attached hereto, and as are normally associated with such
      position, subject to the direction, supervision and rules and regulations
      of EnerJex.

            

    

    

    
      	
              5.2  

            	
              Place
      of Employment:
      The place of Cochennet’s employment and the performance of
      Cochennet’s duties will be at EnerJex’s corporate headquarters and at
      Cochennet’s home office or at such location as agreed upon by EnerJex and
      Cochennet.

            

    

    

    
      	
              5.3  

            	
              Extent
      of Services: Cochennet shall at all
      times and to the best of his ability perform his duties and obligations
      under this Agreement in a reasonable manner consistent with the interests
      of EnerJex.  The precise services of Cochennet may be extended
      or curtailed, from time to time at the discretion of EnerJex, and
      Cochennet agrees to render such different and/or additional services of a
      similar nature as may be assigned from time to time by
      EnerJex.  However, EnerJex shall not materially alter
      Cochennet’s title, duties, obligations or responsibilities or transfer
      Cochennet outside of the Kansas City, Missouri area without Cochennet’s
      prior written consent.

            

    

    

    5.3.1 Except as
otherwise agreed by EnerJex and Cochennet in writing, it is expressly understood
and agreed that Cochennet’s employment is fulltime and of a critical nature to
the success of EnerJex and is therefore exclusive.  Cochennet may not
be employed by other entities, except for subsidiaries of EnerJex, or otherwise
perform duties and undertakings on behalf of others or for his own interest
unless pre-approved by the Board of Directors. EnerJex acknowledges that
Cochennet presently, or may in the future, serve on the Board of Directors,
provide consulting services for or be an executive officer of other companies
and such action shall not be a breach of this section; provided, however, that such
companies are: (a) listed on Addendum C, attached
hereto; and (b) do not compete with EnerJex or interfere with the performance of
Cochennet’s duties pursuant to this Agreement, as determined in the reasonable
judgment of the Board of Directors.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    5.3.2 Additionally,
EnerJex recognizes that Cochennet has, or may have in the future, equity
positions in other companies, which either: (a) are listed on Addendum C attached
hereto; or (b) do not compete with EnerJex in the reasonable judgment of the
Board of Directors.  EnerJex recognizes that such equity positions may
occasionally require some limited attention from Cochennet during normal
business hours.  However, Cochennet agrees that if such time is
considered excessive by the Board of Directors, Cochennet shall be so advised
and noticed by EnerJex and Cochennet shall be required to make appropriate
adjustments to ensure his duties and obligations under this Agreement are
fulfilled.

    

    
      	
              6.  

            	
              TERMINATION.  The Term of
      this Agreement shall end upon its expiration pursuant to Section 2
      hereof, provided that this Agreement shall terminate prior to such date:
      (a) upon Cochennet’s resignation, death or permanent disability or
      incapacity; or (b) by EnerJex at any time for “Cause” (as
      defined in Section 6.4
      below) or without Cause.

            

    

    

    
      	
              6.1  

            	
              By
      Resignation.  If
      Cochennet resigns with “Good Reason”
      (as defined below) this Agreement shall terminate but Cochennet shall be
      entitled to receive:

            

    

    

    (a)           a
lump sum payment equal to all earned but unpaid Base Salary through the date of
termination of employment,

    

    (b)           a
lump sum payment equal to the lesser of (i) 12-months Base Salary or (ii) the
Base Salary Cochennet would have received had he remained in employment through
the end of the then existing Term;

    

    (c)           a
lump sum payment equal to the annual incentive amount (assuming achievement at
100% of target) that Cochennet would have earned if he had remained employed
through June 30th
following the last day of the current fiscal year; and

    

    (d)           immediate
vesting of all equity awards (including but not limited to stock options and
restricted shares).

    

    For
purposes of this Agreement, “Good Reason” means
any of the following if the same shall occur without Cochennet’s express written
consent:

    

    
      	
              (i)  

            	
              a
      material diminution in Cochennet’s Base
Salary;

            

    

    

    
      	
              (ii)  

            	
              a
      material diminution in Cochennet's authority, duties, or responsibilities,
      including a requirement that Cochennet report to
  a

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    corporate
officer or employee instead of reporting directly to the Board of Directors of
EnerJex;

    

    
      	
              (iii)  

            	
              a
      material change in the geographic location at which Cochennet must perform
      the services for which he is
employed;

            

    

    

    
      	
              (iv)  

            	
              any
      other action or inaction that constitutes a material breach by EnerJex
      under this Agreement; or

            

    

    

    
      	
              (v)  

            	
              Cochennet
      resigns within twelve (12) months of a Change of Control (as defined in
      Section 7).

            

    

    

    Cochennet
shall be required to provide notice to EnerJex of the existence of any of the
foregoing conditions within 30 days of the initial existence of the condition,
upon the notice of which EnerJex shall have a period of 30 days during which it
may remedy the condition without giving rise to the obligations under this
Section 6.1.

    

    If
Cochennet resigns without Good Reason,
Cochennet shall be entitled to receive all earned but unpaid Base Salary through
the date of termination of employment.

    

    
      	
              6.2  

            	
              By
      Reason of Incapacity or Disability: If Cochennet becomes
      so incapacitated by reason of accident, illness, or other disability that
      Cochennet is unable to carry on substantially all of the normal duties and
      obligations of Cochennet under this Agreement for a continuous period of
      one-hundred-eighty (180) days (the “Incapacity
      Period”), this Agreement shall terminate but Cochennet shall be
      entitled to receive:

            

    

    

    (a)           a
lump sum payment equal to all earned but unpaid Base Salary through the date of
termination of employment,

    

    (b)           a
lump sum payment equal to the annual incentive amount (assuming achievement at
100% of target but pro rated based on the number of days worked during the
fiscal year) that Cochennet would have earned if he had remained employed
through June 30th
following the last day of the current fiscal year; and

    

    (c)           a
lump sum payment equal to an amount equal to six (6) months Base
Salary.

    

    For
purposes of the foregoing, Cochennet’s permanent disability or incapacity shall
be determined in accordance with the disability insurance policy covering
Cochennet, if such a policy is then in effect, or if no such policy is then in
effect, such permanent disability or incapacity shall be determined by EnerJex’s
Board of Directors in its good faith judgment

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    based
upon Cochennet’s inability to perform normal and reasonable duties and
obligations.

    

    
      	
              6.3  

            	
              By
      Reason of Death:  If
      Cochennet dies during the Term of this Agreement, EnerJex shall pay to
      Cochennet’s estate:

            

    

    

    (a)           a
lump sum payment equal to all earned but unpaid Base Salary through the date
Cochennet’s death,

    

    (b)           a
lump sum payment equal to the annual incentive amount (assuming achievement at
100% of target but pro rated based on the number of days worked during the
fiscal year) that Cochennet would have earned if he had remained employed
through June 30th
following the last day of the current fiscal year; and

    

    (c)           a
lump sum payment equal to an amount equal to six (6) months Base
Salary.

    

    Other
death benefits will be determined in accordance with the terms of EnerJex’s
benefit plans and programs.

    

    
      	
              6.4  

            	
              For
      Cause.  If the Term
      of this Agreement is terminated by EnerJex for Cause, Cochennet shall be
      entitled to receive all earned but unpaid Base Salary through the date of
      termination of employment.  However, if a dispute arises between
      EnerJex and Cochennet that is not resolved within sixty (60) days and
      neither party initiates arbitration proceedings pursuant to Section 13.8,
      EnerJex shall have the option to pay Cochennet a lump sum payment equal to
      six (6) months Base Salary (the “Severance
      Payment”) in lieu of any and all other amounts or payments to which
      Cochennet may be entitled relating to his employment with
      EnerJex.  Such determination to pay the Severance Payment shall
      be made in the reasonable judgment of the Board of
      Directors.  If EnerJex elects to make a payment to Cochennet of
      the Severance Payment, the parties hereto agree that such Severance
      Payment and the payment provided by Section 6.6
      shall be Cochennet’s complete and exclusive remedy for such a termination
      for Cause.

            

    

    

    For
purposes of this Agreement, “Cause” shall
mean:

    

    
      	
              (i)  

            	
              an
      adjudication of Cochennet’s fraud, theft or dishonesty with respect to
      EnerJex;

            

    

    

    
      	
              (ii)  

            	
              Cochennet’s
      conviction of a felony, a crime involving moral turpitude or other act
      causing material harm to EnerJex’s standing and
  reputation;

            

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    
      	
              (iii)  

            	
              Cochennet’s
      continued material failure to perform Cochennet’s duties to EnerJex after
      thirty (30) days’ written notice thereof to Cochennet;
  or

            

    

    

    
      	
              (iv)  

            	
              gross
      negligence or willful misconduct by Cochennet with respect to
      EnerJex.

            

    

    

    
      	
              6.5  

            	
              Without
      Cause. If
      EnerJex terminates Cochennet’s employment without Cause, Cochennet shall
      be entitled to receive:

            

    

    

    (a)           a
lump sum payment equal to all earned but unpaid Base Salary through the date of
termination of employment,

    

    (b)           a
lump sum payment equal to the annual incentive amount (assuming achievement at
100% of target) that Cochennet would have earned if he had remained employed
through June 30th
following the last day of the current fiscal year;

    

    (c)           a
lump sum payment equal to an amount equal to the lesser of (i) 12-months Base
Salary or (ii) the Base Salary Cochennet would have received had he remained in
employment through the end of the then existing Term; and

    

    (d)           immediate
vesting of all equity awards (including but not limited to stock options and
restricted shares).

    

    
      	
              6.6  

            	
              Effect
      of Termination on Unused Vacation Time:  Upon the
      termination of this Agreement, unless termination is for Cause, Cochennet
      shall also have the right to receive any accrued but unused vacation time
      for that current fiscal year, and any benefits vested under the terms of
      any applicable benefit plans.

            

    

    

    
      	
              6.7  

            	
              Time
      of Payment:  Any amounts payable under this Section 6
      shall be paid in a single lump sum within 30 days following Cochennet’s
      termination of employment.

            

    

    

    
      	
              6.8  

            	
              Release
      and Waiver.  Notwithstanding the preceding provisions of
      this Section 6 or any other provision in this Agreement to the contrary,
      Cochennet’s entitlement to any post-termination payment under this
      Agreement shall be subject to and conditioned upon Cochennet’s execution
      of a release and waiver of claims on the form reasonably acceptable to
      EnerJex.

            

    

    

    

    
      
         

      

      
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              7.  

            	
              CHANGE OF
      CONTROL.

            

    

    

    For
purposes of this Agreement a “Change of Control” shall mean:

    

    
      	
               
      

            	
              (i)

            	
              The
      consummation of a merger or consolidation of EnerJex with or into another
      entity or any other corporate reorganization, if more than 50% of the
      combined voting power of the continuing or surviving entity’s securities
      outstanding immediately after such merger, consolidation or other
      reorganization is owned by persons who were not stockholders of EnerJex
      immediately prior to such merger, consolidation or other
      reorganization;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              the
      sale, transfer or other disposition of all or substantially all of
      EnerJex’s assets; or

            

    

    

    
      	
               
      

            	
              (iii)

            	
              The
      date that 40% or more of the current members of the Board of Directors as
      of the date of this Agreement are replaced by directors who are not
      currently members of the Board of
Directors.

            

    

    

    A
transaction shall not constitute a Change of Control if (i) its purpose is to
change the state of EnerJex’s incorporation or to create a holding company that
will be owned in substantially the same proportions by the persons who held
EnerJex’s securities immediately before such transaction, (ii) create a separate
entity, such as an MLP for holding certain assets of EnerJex, or (iii) if the
Change of Control is the result of a bona fide public offering of EnerJex’s
securities or other form of capital raising transaction conducted by EnerJex or
its assigns within twelve (12) months from the date of this Agreement; other
than the public offering on Form S-1 originally filed with the Securities and
Exchange Commission on or about April 9, 2008.

    

    
      	
              8.  

            	
              COVENANT
      TO NOT COMPETE AND NON-SOLICITATION.

            

    

    

    
      	
              8.1  

            	
              If
      Termination is for Cause. If Cochennet is
      terminated for Cause, Cochennet shall not, directly or indirectly, either
      during the Term or for a period of twenty-four (24) months thereafter,
      engage in any Competitive Business (as defined below), or any
      energy-related business, in the mid-continent region (Kansas, Missouri,
      North Texas, Oklahoma, Wyoming, Montana, Nebraska and Arkansas) of the
      United States; provided, however, that the ownership of less than five
      percent (5%) of the outstanding capital stock of a corporation whose
      shares are traded on a national securities exchange or on the
      over-the-counter market or the ownership shall not be deemed engaging any
      Competitive Business. “Competitive Business” shall mean the oil and
      natural gas industry, including oil and gas leasing, drilling, and other
      operations, syndication and marketing of partnership or other investments
      related to oil and natural gas operations, or any other business
      activities that are the same as

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    or
similar to EnerJex’s concept as it exists on the Effective Date or on the
Termination Date.

    

    
      	
              8.2  

            	
              If
      Cochennet Resigns for “Good Reason” or is Terminated Without
      Cause. If
      Cochennet resigns for “Good Reason” or Cochennet is terminated without
      Cause, Cochennet shall not be restricted under any non-compete provision
      of this Agreement other than Section 8.3, which will remain in force for
      eighteen (18) months.

            

    

    

    
      	
              8.3  

            	
              Non-Solicitation;
      Agreement not to Hire/be Hired. Cochennet understands
      and appreciates that EnerJex invests a tremendous amount of time, energy,
      resources and expertise in the training and education of its employees to
      be able to operate its operations. Further, Cochennet understands that in
      the event an employee of EnerJex, or any of its operating subsidiaries, is
      enticed to leave, then EnerJex shall be damaged in an amount the Parties
      are not capable of calculating at the present time. Therefore, Cochennet
      agrees, that during any non-compete period set forth under Section 8.1
      above, that he will not offer employment or contractor status to any
      employee or contractor or affiliated person of EnerJex, or accept
      employment or contractor status from any employee or contractor or
      affiliated person of EnerJex; or its operating subsidiaries, nor to allow
      any person or entity affiliated with Cochennet to offer such employment
      status with Cochennet or any other concern, venture or entity with whom
      Cochennet may be employed by, associated or hold a more than five percent
      (5%) ownership position in.

            

    

    

    
      	
              9.  

            	
              TRADE SECRETS AND
      CONFIDENTIALITY:

            

    

    

    
      	
              9.1  

            	
              Nondisclosure. Without the prior
      written consent of EnerJex, Cochennet shall not, at any time, either
      during or after the term of this Agreement, directly or indirectly,
      divulge or disclose to any person, firm, association, or corporation, or
      use for Cochennet’s own benefit, gain, or otherwise, any customer lists,
      plans, products, data, results of tests and data, or any other trade
      secrets or confidential materials or like information (collectively
      referred to as the “Confidential Information”) of EnerJex and/or its
      Affiliates, as hereinafter defined, it being the intent of EnerJex, with
      which intent Cochennet hereby agrees, to restrict Cochennet from
      disseminating or using any like information that is unpublished or not
      readily available to the general
public.

            

    

    

    Definition of Affiliate. For
purposes of this Agreement, the term “Affiliate” shall mean any entity,
individual, firm, or corporation, directly or indirectly, through one or more
intermediaries, controlling, controlled by, or under common control with
EnerJex.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    
      	
              9.2  

            	
              Notice
      of Compelled Disclosure. If, at any time,
      Cochennet becomes legally compelled (by deposition, interrogatory, request
      for documents, subpoena, civil investigative demand, or similar process or
      otherwise) to disclose any of the Confidential Information, Cochennet
      shall provide EnerJex with prompt, prior written notice of such
      requirement so that EnerJex may seek a protective order or other
      appropriate remedy and/or waive compliance with the terms of this
      Agreement. In the event that such protective order or other remedy is not
      obtained, that EnerJex waives compliance with the provisions hereof,
      Cochennet agrees to furnish only that portion of the Confidential
      Information which Cochennet is advised by written opinion of counsel is
      legally required and exercise Cochennet’s best efforts to obtain assurance
      that confidential treatment will be accorded such Confidential
      Information. In any event, Cochennet shall not oppose action by EnerJex to
      obtain an appropriate protective order or other reliable assurance that
      confidential treatment will be accorded the Confidential
      Information.

            

    

    

    
      	
              9.3  

            	
              Assurance
      of Compliance. Cochennet agrees to
      represent to EnerJex, in writing, at any time that EnerJex so request,
      that Cochennet has complied with the provisions of this section, or any
      other section of this Agreement.

            

    

    

    
      	
              10.  

            	
              INDEMNIFICATION
      OF COCHENNET: EnerJex shall, to the
      maximum extent permitted by law, indemnify and hold Cochennet harmless
      against expenses, including reasonable attorney’s fees, judgments, fines,
      settlement, and other amounts actually and reasonably incurred in
      connection with any proceeding arising by reason of Cochennet’s employment
      by EnerJex. Further, EnerJex shall advance to Cochennet any expense
      incurred in defending such proceeding to the maximum extent permitted by
      law.

            

    

    

    
      	
              11.  

            	
              RETURN
      OF ENERJEX PROPERTY: Cochennet agrees that
      upon any termination of his employment, Cochennet shall return to EnerJex
      within a reasonable time not to exceed forty-eight (48) hours, any of
      EnerJex’s property in his possession or under his control, including but
      not limited to, all lists, books, records, data, and other information
      (including all copies thereof in whatever form or media) of every kind
      relating to or connected with EnerJex or its Affiliates and their
      activities, business and customers, computer/office automation equipment,
      records and names, addresses, and other information with regard to
      customers or potential customers of EnerJex with whom Cochennet has had
      contact or done business.

            

    

    

    
      	
              12.  

            	
              RELATIONSHIP
      OF PARTIES:
      The parties intend that this Agreement create an Employee-Employer
      relationship between the parties.

            

    

    

    
      	
              13.  

            	
              NOTICES:  All
      notices, required and demands and other communications hereunder must be
      in writing and shall be deemed to have been duly given
  when

            

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    personally
delivered or when placed in the United States Mail and forwarded by Registered
or Certified Mail, Return Receipt Requested, postage prepaid, or when forwarded
via reputable overnight carrier, addressed to the party to whom such notices is
being given at the following address:

    

    As to
EnerJex:                  EnerJex
Resources, Inc.

    7300 W.
110th, 7th
Floor

    Overland
Park, Kansas  66210

    Attn:
Chairman of the Governance, Compensation and Nominating Committee of the Board
of Directors

    

         with copy
to:                  Husch
Blackwell Sanders LLP

    4801 Main Street, Suite
1000

    Kansas City,
MO  64112

    Attn:  Jeffrey T. Haughey,
Partner

    

    As to
Cochennet:              C.
Stephen Cochennet

    12101 NW Crooked Road

    Parkville, Missouri 64152

    

    Address Change: Any party may
change the address(es) at which notices to it or him, as the case may be, are to
be sent by giving the notice of such change to the other parties in accordance
with this Section
13.

    

    14. MISCELLANEOUS:

    

    
      	
              14.1  

            	
              Entire
      Agreement.  This
      Agreement and the Addendums hereto contain the entire agreement of the
      parties.  This Agreement may not be altered, amended or modified
      except in writing duly executed by the
parties.

            

    

    

    
      	
              14.2  

            	
              Assignment.  Neither
      party, without the written consent of the other party, can assign this
      Agreement.

            

    

    

    
      	
              14.3  

            	
              Binding.  This
      Agreement shall be binding upon and inure to the benefit of the parties,
      their personal representative, successors and
  assigns.

            

    

    

    
      	
              14.4  

            	
              No
      Waiver.  The waiver
      of the breach of any covenant or condition herein shall in no way operate
      as a continuing or permanent waiver of the same or similar covenant or
      condition.  Any waiver must be in writing and signed by the
      party granting the waiver.

            

    

    

    
      	
              14.5  

            	
              Severability.  If any
      provision of this Agreement is held to be invalid or unenforceable for any
      reason, the remaining provisions will continue in full force without being
      impaired or invalidated in any way.  The parties hereto agree to
      replace any invalid provision with a valid provision which most closely
      approximates the intent of the invalid
  provision.

            

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    

    
      	
              14.6  

            	
              Interpretation.  This
      Agreement shall not be construed more strongly against any party hereto
      regardless of which party may have been more responsible for the
      preparation of Agreement.

            

    

    

    
      	
              14.7  

            	
              Governing
      Law.  This
      Agreement shall be governed by and construed under the laws of the State
      of Kansas, without reference to the choice of law principles
      thereof.

            

    

    

    
      	
              14.8  

            	
              Arbitration.

            

    

    

    
      	
              14.8.1  

            	
              Any
      controversy, dispute or claim of whatever nature in any way arising out of
      or relating to Cochennet’s employment with EnerJex, including, without
      limitation (except as expressly excluded below in Section 14.8.2)
      any claims or disputes by Cochennet against EnerJex, or by EnerJex against
      Cochennet, concerning, arising out of or relating to the separation of
      that employment; any other adverse personnel action by EnerJex; any
      federal, state or local law, statute or regulation prohibiting employment
      discrimination or harassment; any public policy; any EnerJex disciplinary
      action; any EnerJex decision regarding a EnerJex policy or practice,
      including but not limited to Cochennet’s compensation or other benefits;
      and any other claim for personal, emotional, physical or economic injury
      (individually or collectively, “Covered
      Claims”) shall be resolved, at the request of any party to this
      Agreement, by final and binding arbitration in Kansas City, Missouri
      before Judicial Arbitration Mediation Services (“JAMS”) in
      accordance with JAMS’ then-current policies and procedures for arbitration
      of employment disputes.

            

    

    

    
      	
              14.8.2  

            	
              The
      only claims or disputes excluded from binding arbitration under this
      Agreement are the following: any claim by Cochennet for workers’
      compensation benefits or for benefits under a EnerJex plan that provides
      its own arbitration procedure; and any claim by either party for equitable
      relief, including but not limited to, a temporary restraining order,
      preliminary injunction or permanent injunction against the other
      party.

            

    

    

    
      	
              14.8.3  

            	
              This
      agreement to submit all Covered Claims to binding arbitration in no way
      alters the exclusivity of Cochennet’s remedy under Section 6.5 in
      the event of any termination without Cause or the exclusivity of
      Cochennet’s remedy under Section 6.4
      in the event of any termination with Cause, and does not require EnerJex
      to provide Cochennet with any type of progressive
    discipline.

            

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    
      	
              14.9  

            	
              Taxes.  EnerJex
      is authorized to withhold from any payment or benefit provided hereunder,
      the amount of withholding taxes due any federal, state or local authority
      in respect of such benefit or payment and to take such other action as may
      be necessary in the opinion of EnerJex to satisfy all obligations for the
      payment of such withholding taxes.  In the event EnerJex does
      not make such deductions or withholdings, Cochennet shall indemnify
      EnerJex for any amounts paid with respect to any such taxes, together with
      any interest, penalties and related expenses thereto.  Cochennet
      acknowledges that no oral or written representation of fact or opinion has
      been made to him by EnerJex or its attorneys regarding the tax treatment
      or consequences of any payment made under this
      Agreement.  Cochennet acknowledges and agrees that to the extent
      any liability or responsibility exists for Cochennet’s federal, state and
      local income or other taxes, such liability or responsibility rests solely
      with him. Cochennet further agrees to indemnify and hold harmless EnerJex
      in connection with any liability incurred by EnerJex in connection with
      any tax or taxes for which Cochennet is
  responsible.

            

    

    

    
      	
              14.10  

            	
              Section
      409A of the Internal Revenue Code.  To the extent
      applicable, this Agreement shall be interpreted, construed and operated in
      accordance with the Section 409A of the Internal Revenue Code, and the
      Treasury regulations and other guidance issued thereunder.  Any
      reference to termination of employment, severance from employment or
      similar terms shall mean and be interpreted as a “separation from service”
      as defined (as defined in Treasury Regulation §1.409A-1(h)).  If
      on the date of Cochennet’s separation from service with EnerJex Cochennet
      is a specified employee (as defined in Code Section 409A and Treasury
      Regulation §1.409A-1(i)), no payment constituting the  “deferral
      of compensation” within the meaning of Treasury Regulation §1.409A-1(b)
      and after application of the exemptions provided in Treasury Regulation
      §§1.409A-1(b)(4) and 1.409A-1(b)(9)(iii) shall be made to Cochennet at any
      time during the six (6) month period following Cochennet’s separation from
      service, and any such amounts shall instead be paid in a lump sum on the
      first payroll payment date following expiration of such six (6) month
      period.  Any obligation of EnerJex to reimburse Cochennet for
      expenses incurred during any taxable year of Cochennet shall not affect
      the expenses eligible for reimbursements in any other taxable
      year.  Further, such reimbursement of expenses shall be made on
      or before the last day of Cochennet’s taxable year following the taxable
      year in which the expense was
incurred.

            

    

    

    
      	
              14.11  

            	
              Titles.  Titles to
      the sections of this Agreement are solely for the convenience of the
      parties and shall not be used to explain, modify, simplify, or aid in the
      interpretation of the provisions of this
  Agreement.

            

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    

    
      	
              14.12  

            	
              Counterparts.  This
      Agreement may be executed in counterparts, each of which shall be deemed
      an original, but together which shall constitute one and the same
      instrument.

            

    

    

    
      	
              14.13  

            	 

    

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

    

    

    EnerJex:                                                                                EnerJex Resources, Inc.

    a Nevada
corporation

    

    

    By: /s/ Robert G.
Wonish

    Robert G.
Wonish, Chairman Governance, Compensation and Nominating Committee of the Board
of Directors

    

    

    Cochennet:

    

    By: /s/ C. Stephen
Cochennet

           C.
Stephen Cochennet

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    ADDENDUM
A

    

    PRESIDENT
& CHIEF EXECUTIVE OFFICER INCENTIVE COMPENSATION PLAN

    

    This
President and Chief Executive Officer Incentive Compensation Plan (this “Plan”) is entered
into this 1st day of
August, 2008, by and between EnerJex Resources, Inc., a
Nevada corporation (“EnerJex”), and C. Stephen Cochennet (“Cochennet”), as
follows:

    

    WHEREAS, it is in the best
interest of EnerJex and Cochennet to enter into a continuing arrangement to
cover annual incentive and long-term bonuses, and

    

    WHEREAS, both parties to this
Plan desire to memorialize various aspects of their relationship:

    

    NOW,
THEREFORE, the parties hereby agree as follows:

    

    1.           Addendum. This Plan is in an addendum
to that certain Employment Agreement effective of even date
herewith.

    

    2.           Annual
Incentive Plan; Restricted Stock Opportunity. Cochennet shall be entitled
to participate in an annual incentive bonus plan with a maximum potential amount
of up to 100% of Cochennet’s base salary in effect at the commencement of each
fiscal year.  At the discretion of the GCNC, the annual incentive
bonus for each fiscal year will be paid in cash or shares of EnerJex’s common
stock pursuant to a Restricted Stock Plan that EnerJex contemplates asking the
shareholders to approve at the 2008 annual meeting.  Fifty percent
(50%) of the annual bonus shall be earned upon the obtainment of mutually
acceptable yearly business goals determined by Cochennet and the Governance,
Compensation and Nominating Committee (“GCNC”) within thirty (30) days following
the commencement of each fiscal year (or with respect to the 2009 fiscal year,
within thirty (30) days following the date of this Plan). The remaining fifty
percent (50%) of the bonus shall be subject to the Annual Incentive Elements
below.

    

    Annual Incentive
Elements:

    

    
      	
              35%

            	
              PDP
      Net Reserve Growth (BOE) greater than 25% as determined by third party
      engineering firm from previous FY end levels

            
	
              35%

            	
              Year
      over Year net production increase (BOPDE sold) greater than 25% - FYE
      3/31/09 will use FYE 3/31/08 Q4 annualized as basis

            
	
              15%

            	
              Year
      over Year LOE Cost must show decrease on BOPDE sold basis - FYE 3/31/09
      will use FYE 3/31/08 Q4 annualized as basis

            
	
              15%

            	
              EJXR
      share price must increase by more than 100% from previous FYE
      level

            

    

    

    Timing of Incentive
Payout:

    

    The annual incentive bonus shall be
paid in accordance with the following:

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

    
      	
              50%

            	
              of
      Cochennet’s total annual incentive bonus will be paid on 6/30 following
      the end of the fiscal year to which such bonus relate.  For
      example, 50% of the 2009 fiscal year annual incentive bonus will be paid
      on 6/30/09.

            
	
              25%

            	
              of
      Cochennet’s total annual incentive bonus will be paid on the first
      anniversary of the initial payment date.   For example, 25%
      of the 2009 fiscal year annual incentive bonus will be paid on
      6/30/10.

            
	
              25%

            	
              of
      Cochennet’s total annual incentive bonus will be paid on the second
      anniversary of the initial payment date.   For example, 25%
      of the 2009 fiscal year annual incentive bonus will be paid on
      6/30/11.

            

    

    

    For
instance, the Plan is setup such that by 6/30/11 Cochennet is receiving in
effect a collective 100% of the fiscal 2009 bonus that he earned.

    

    Notwithstanding the foregoing,
Cochennet’s entitlement to annual incentive bonus shall be subject to the
following conditions:

    

    
      	
              ·  

            	
              Net
      Cash Flow from operations must be sufficient to pay the full incentive
      amount owed under the Plan (not just the current year’s
      portion);

            

    

    
      	
              ·  

            	
              If
      Cochennet terminates employment prior to the full payment date of any
      annual incentive bonus, then any unpaid bonus compensation shall be
      forfeited except as provided under Cochennet’s Employment Agreement in the
      event of death, disability, voluntary termination for good reason, or
      involuntary termination without
cause.

            

    

    

    
      	
              3.  

            	
              Long-Term
      Incentives.

            

    

    

    
      	
              3.1  

            	
              Stock
      Option Grants. Subject to Section
      3.2, Cochennet shall be eligible to receive up to one hundred thirty five
      thousand (135,000) options to purchase EnerJex’s common stock pursuant to
      the EnerJex Resources, Inc. Stock Option Plan, as amended from time to
      time, or any successor plan, in accordance with the
    following:

            

    

    

    
      	
              Fiscal

              Year

            	
              Grant

              Date

            	
              Maximum # of Options

            	
              Strike Price of Options

            	
              Option Expiration Date*

            
	
              2009

            	
              7/01/09

            	
              30,000

            	
              FMV
      on Grant Date

            	
              6/30/12

            
	
              2010

            	
              7/01/10

            	
              45,000

            	
              FMV
      on Grant Date

            	
              6/30/13

            
	
              2011

            	
              7/01/11

            	
              60,000

            	
              FMV
      on Grant Date

            	
              6/30/14

            

    

    

    
      	
               
      

            	
              *The
      options shall be immediately vested and exercisable from the grant date
      through the option expiration date.

            

    

    

    3.2           Performance
Conditions.  The number of stock options granted each fiscal
year shall be based upon the following schedule and will be pro rated if actual
performance

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     does
not equal or exceed 100% of the targeted performance
conditions.  Cochennet must be employed on the grant date to receive
the stock options.

    

    
      	
              Fiscal
      2009

            	 
      	
              Target

            
	 
      	
              40%

            	
              PDP
      Net Reserve Growth (BOE) at 3/31/09 greater than 35% over 3/31/08 levels,
      as determined by third party engineering firm

            
	 
      	
              30%

            	
              Year
      over Year net production increase (BOPDE sold) by 35% - FYE 3/31/09 will
      use FYE 3/31/08 Q4 annualized as its starting basis

            
	 
      	
              30%

            	
              EJXR
      share price must increase over the share price level at date of execution
      of this agreement.  The share price must be $11.00 on 3/31/09 to
      meet this goal.

            
	 
      	 
      	 
      
	
              Fiscal
      2010

            	 
      	
              Target

            
	 
      	
              40%

            	
              PDP
      Net Reserve Growth (BOE) at 3/31/10 greater than 35% over 3/31/09 levels,
      as determined by third party engineering firm

            
	 
      	
              30%

            	
              Year
      over Year net production increase (BOPDE sold) by 35% - FYE 3/31/10 will
      use FYE 3/31/09 Q4 annualized as its starting basis

            
	 
      	
              30%

            	
              EJXR
      share price must increase over the targeted 3/31/09 share price
      level.  The share price must be $16.85 on 3/31/10 to meet this
      goal.

            
	 
      	 
      	 
      
	
              Fiscal
      2011

            	 
      	
              Target

            
	 
      	
              40%

            	
              PDP
      Net Reserve Growth (BOE) at 3/31/11 greater than 35% over 3/31/10 levels,
      as determined by third party engineering firm

            
	 
      	
              30%

            	
              Year
      over Year net production increase (BOPDE sold) by 35% - FYE 3/31/11 will
      use FYE 3/31/10 Q4 annualized as its starting basis

            
	 
      	
              30%

            	
              EJXR
      share price must increase over the targeted 3/31/10 share price
      level.  The share price must be $22.55 on 3/31/11 to meet this
      goal.

            

    

    

    The
maximum number of options available to be earned each year is subject to
“catch-up”; i.e.- if an element in year one is missed, it may be “caught-up” in
year two, so long as the cumulative goal is met.  Any catch-up options
will be granted at the then current year price.

    

    In the
event of any reorganization, recapitalization, reclassification, stock split,
stock dividend, distribution, combination of shares, merger, consolidation,
rights offering, or any other changes in the corporate structure or shares of
EnerJex, appropriate adjustments shall be made by the GCNC in its
discretion.

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    

    4.           Review of
Annual and Incentive Compensation by Independent Third Party. The GCNC has engaged an
independent compensation consultant to review EnerJex’s corporate compensation,
including annual and long-term incentive plans, and has assisted the GCNC in
establishing a reasonable and suitable compensation structure for EnerJex and
its operating subsidiaries.  Cochennet acknowledges that with or
without any additional independent compensation consultation, the GCNC may
adjust the annual and long-term incentives granted under this Plan.

    

    5.           Nontransferability
of Rights. Prior
to such time that any payment under the Plan is made to Cochennet, any rights
under the Plan shall not be transferred, assigned, pledged or hypothecated in
any way (whether by operation of law or otherwise) and shall not be subject to
execution, attachment, or similar process. Upon any attempt to transfer, assign,
pledge, hypothecate or otherwise dispose of any right under the Plan, or upon
the levy of any attachment or similar process upon the Plan, the benefits
granted herein (that have not been paid) shall immediately be
forfeited.

    

    6.           Board
Authority. Any
questions concerning the interpretation of this Plan and any controversy which
arises under this Plan shall be settled by the EnerJex Board of Directors in its
sole discretion.

    

    7.           Binding
Effect. This Plan
shall bind, and, except as specifically provided herein, shall inure to the
benefit of the respective heirs, legal representatives, successors and assigns
of the parties hereto.

    

    8.           Governing
Law. This Award
Plan and the rights of all persons claiming hereunder shall be construed and
determined in accordance with the laws of the State of Kansas.

    

    IN WITNESS WHEREOF, EnerJex
has caused this Plan to be executed and Cochennet has hereunto set his hand
effective the day and year first above written.

    

    

    EnerJex:                                                                         
 ENERJEX RESOURCES, INC.

    a Nevada
corporation

    

    

    By: /s/ Robert G.
Wonish

    Robert G.
Wonish, Chairman

    Governance,
Compensation and Nominating 

    Committee
of the Board of Directors

    Cochennet:

    

    By: /s/ C. Stephen
Cochennet

                                                                                               
  C. Stephen Cochennet

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    ADDENDUM
B

     

    Job
Description for C. Stephen Cochennet

     

    

    Job
Title:                                President
& Chief Executive Officer

    Department:                                           Executive

    Reports
To:                                           Board
of Directors

    

    SUMMARY

    The
President and Chief Executive Officer (“CEO”) has primary responsibility for
planning, organizing, staffing, and operating EnerJex Resources, Inc.
(“EnerJex”) toward its primary objectives, based on profit and return on
capital, and is accountable to the Board of Directors for the results of
performance of all employees.

    

    The
President and CEO establishes and communicates the management style, corporate
culture, business philosophy and ethical values by which EnerJex will
operate.

    

    The
President and CEO manages and directs EnerJex by performing the following duties
personally or through subordinate officers or managers.

    

    ESSENTIAL DUTIES AND
RESPONSIBILITIES include the following. Other duties may be
assigned.

    

    
      	
              ·  

            	
              Plans
      the overall business strategy and goals of EnerJex designed to provide a
      return on stockholder investment and establishes objectives for each
      function to meet those goals, with the cooperation of the Board of
      Directors.

            

    

    

    
      	
              ·  

            	
              Use
      all reasonable efforts and business judgment to prevent defaults from
      occurring under any financing or other
  agreements.

            

    

    

    
      	
              ·  

            	
              Oversees
      the operation of EnerJex through EnerJex’s officers and
      managers.

            

    

    

    
      	
              ·  

            	
              Oversees
      that EnerJex is operated in accordance with EnerJex’s Code of Ethics and
      within its Corporate Governance
Guidelines.

            

    

    

    
      	
              ·  

            	
              Assists
      in developing and presenting an annual business plan and budget, for
      EnerJex’s operations, to the Board of
Directors.

            

    

    

    
      	
              ·  

            	
              Establishes
      current and long range goals, objectives, plans and policies, subject to
      approval by the Board of Directors.

            

    

    

    
      	
              ·  

            	
              Determines
      the appropriate organization structure and staffing responsibilities
      required to meet EnerJex’s objectives.  Dispenses advice,
      guidance, direction, and authorization to carry out major plans, standards
      and procedures, consistent with established policies and Board
      approval.

            

    

    

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    
      	
              ·  

            	
              Meets
      with EnerJex’s executives to ensure that operations are being executed in
      accordance with the EnerJex’s
policies.

            

    

    

    
      	
              ·  

            	
              Oversees
      the adequacy and soundness of the EnerJex’s financial structure with
      EnerJex principal financial officer and audit
  committee.

            

    

    

    
      	
              ·  

            	
              Reviews
      operating results of EnerJex, compares them to established objectives, and
      takes steps to use his best efforts to ensure appropriate measures are
      taken to correct unsatisfactory
results.

            

    

    

    
      	
              ·  

            	
              Oversees
      the preparation and filing of all SEC reports and filings, using his best
      efforts to ensure timely and accurate filing of all SEC reports and
      filings..

            

    

    

    
      	
              ·  

            	
              Plans
      and directs all investigations and negotiations pertaining to mergers,
      joint ventures, the acquisition of businesses, or the sale of major assets
      with approval of the Board of
Directors.

            

    

    

    
      	
              ·  

            	
              Establishes
      and maintains an effective system of communications throughout
      EnerJex.

            

    

    

    
      	
              ·  

            	
              Fulfills
      responsibility to the Board of Directors to inform or seek approval for
      significant matters such as financing, capital expenditures, and
      appointment of officers. In accordance to Board
  guidelines.

            

    

    

    
      	
              ·  

            	
              Utilizes
      legal counsel and other professionals in a manner designed to ensure that
      EnerJex business transactions are conducted in accordance with prevailing
      legal and regulatory requirements.

            

    

    

    
      	
              ·  

            	
              Reviews
      and determines approval of all recommendations for compensation of
      employees, managers and employees.

            

    

    

    
      	
              ·  

            	
              Presides
      over stockholders meetings.

            

    

    

    
      	
              ·  

            	
              Represents
      EnerJex with major customers, stockholders, the financial community, the
      SEC, the Kansas Corporations Commission and the
  public.

            

    

    

    
      	
              ·  

            	
              Plans
      and develops public relations policies designed to improve EnerJex's image
      and relations with customers, employees, stockholders, and
      public.

            

    

    

    
      	
              ·  

            	
              Evaluates
      performance of executives for compliance with established policies and
      objectives of EnerJex and contributions in attaining
      objectives.

            

    

    

    

    

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    ADDENDUM
C

     

    Approved
Non-EnerJex Resources, Inc. Business Activity Exemptions

     

    

    Description of Business
Activity

     

    

     

    
      	
              1.  

            	
              Executive
      Officer, Director and 100% stockholder of CSC Group, a private consulting
      firm which includes referral agreements with Strategic Partner’s Group,
      Utilx, TBG Financial and DST.

            

    

    

    

    
      
         

      

      
        22ex10-2.htm

    EMPLOYMENT
AGREEMENT

    

    THIS EMPLOYMENT AGREEMENT
(this “Agreement”) is made
and entered into as of the 1st day of
August, 2008 (the “Effective Date”), by and between EnerJex Resources, Inc., a Nevada corporation
(“EnerJex”),
and Dierdre P. Jones
(“Jones”).

    

    W
I T N E S S E T H:

    

    WHEREAS, EnerJex and Jones
desire to enter into this Employment Agreement, pursuant to which Jones shall be
employed by EnerJex, to set forth the respective rights, duties and obligations
of the parties hereto.

    

    NOW THEREFORE, in
consideration of the promises and covenants contained herein, and other good and
valuable consideration, the receipt and sufficiency of which the parties hereto
acknowledge, EnerJex and Jones agree as follows:

    

    
      	
              1.  

            	
              EMPLOYMENT. EnerJex hereby
      agrees to employ Jones and Jones hereby accepts such employment, upon the
      terms and conditions hereinafter set
forth.

            

    

    

    
      	
              2.  

            	
              TERM. For purposes of
      this Agreement, “Term” shall
      mean the original term (as defined in Section 2.1
      below), if Renewal Term is initiated, then “Term” shall mean the renewal
      term period (as defined in Section 2.2,
below).

            

    

    

    
      	
              2.1  

            	
              Original
      Term: The Term of this Agreement shall commence on August 1, 2008
      and expire on July 31, 2011, unless sooner terminated pursuant to the
      terms and provisions herein stated.

            

    

    

    
      	
              2.2  

            	
              Renewal:  At
      any time prior to the expiration of the Original Term, as stated above,
      EnerJex and Jones may, by mutual written agreement, extend Jones’
      employment under the terms of this Agreement for such additional periods
      as they may agree.

            

    

    

    3.           COMPENSATION.

    

    
      	
              3.1  

            	
              Salary:   EnerJex shall pay
      Jones a base salary of One Hundred Forty Thousand Dollars ($140,000) per
      year (“Salary”). Such Salary shall be payable in accordance with EnerJex’s
      normal policies. Further, the Governance, Compensation and Nominating
      Committee of the Board of Directors shall review the Salary annually for
      an increase, such increase not to be less than the year-over-year increase
      in the U.S. Consumer Price Index.

            

    

    

    
      	
              3.2  

            	
              Stock
      Options: Effective as of August 1, 2008 (the “Grant Date”), EnerJex
      shall grant to Jones, as a signing bonus, Stock Option Certificates
      (“Certificates”)
      to purchase 40,000 common shares of EnerJex at an exercise price equal to
      the greater of $6.25 per share or the fair market value
  per

            

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    share on
the Grant Date. Certificates may be exercised at
any time, in whole or in part, during the three (3) year
period measured from the Grant Date and
shall be subject to the terms and conditions of the EnerJex Resources, Inc. Stock Option Plan and any related award agreement
thereunder. The Certificates shall be fully vested as of the Grant
Date.

    

    
      	
              3.3  

            	
              Incentive
      Compensation: In addition to the
      Salary, Jones shall be eligible to receive as incentive compensation
      (“Bonus”)
      in respect of each fiscal year (or portion thereof) of EnerJex, thirty
      percent (30%) of her then applicable Salary, in addition to any other
      amount determined in accordance with any other short term incentive
      compensation program, which has been or may be established by the Board
      either for Jones or for executives or senior management. The determination
      as to the amounts of any awards to be paid to Jones under these programs
      shall be reviewed at least annually by the appropriate Board committees to
      ensure that such amounts are competitive with awards granted to similarly
      situated CFO’s of publicly held companies comparable to EnerJex. The
      specific goals and objectives, including quantitative and qualitative
      measures, used to determine the amount to be paid as a Bonus for fiscal
      2009 shall be agreed to by and between the CEO and CFO not later than
      September 30, 2008. Thereafter, the CEO and CFO shall determine Bonus
      measures on or before June 30th
      of each successive year this
Agreement.

            

    

    

    4.           JONES
BENEFITS.

    

    
      	
              4.1  

            	
              General
      Benefits:  Jones shall be entitled to receive or
      participate in all benefit plans and programs of EnerJex made available
      from time to time to executives or senior management of EnerJex, including
      but not limited to, dental and medical insurance, pension and profit
      sharing plans, 401(k) plans, incentive savings plans, stock option plans,
      group life insurance, salary continuation plans, disability coverage and
      other fringe benefits.

            

    

    

    
      	
              4.2  

            	
              Vacation:  Jones
      shall be entitled during the Term of this Agreement to four (4) weeks
      vacation per year during which time Jones’ compensation will be paid in
      full.  Unused days of vacation will be compensated in accordance
      with EnerJex’s policy as established by EnerJex from time to
      time.  Jones may take the vacation periods at any time during
      the year as long as Jones schedules time off as to not create an
      unreasonable hardship on EnerJex.  In addition, Jones shall have
      such other days off, including paid sick leave and paid holidays, in
      accordance with EnerJex’s policy.

            

    

    

    
      	
              4.1  

            	
              Perquisites:
      Jones shall be entitled to receive reimbursement for all pre-approved
      fees, costs and expenses related to the maintenance of her professional
      designations, including but not limited to, continuing education,
      licensing and membership fees, filing fees and other reasonable and
      related costs approved in advance by
EnerJex.

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    5.           DUTIES/SERVICE.

    

    
      	
              5.1  

            	
              Position: Jones shall be
      employed as Chief Financial Officer and shall perform such services and
      duties as are defined in Addendum A, Job
      Description, attached hereto, and as are normally associated with such
      position, subject to the direction, supervision and rules and regulations
      of EnerJex.

            

    

    

    
      	
              5.2  

            	
              Place
      of Employment: The place of
      Jones’ employment and the performance of Jones’ duties will be at
      EnerJex’s corporate headquarters or at such location as agreed upon by
      EnerJex and Jones.

            

    

    

    
      	
              5.3  

            	
              Extent
      of Services: Jones shall at all times and to the best of her
      ability perform her duties and obligations under this Agreement in a
      reasonable manner consistent with the interests of EnerJex.  The
      precise services of Jones may be extended or curtailed, from time to time
      at the discretion of EnerJex, and Jones agrees to render such different
      and/or additional services of a similar nature as may be assigned from
      time-to-time by EnerJex, reasonably requested and as are further in
      accordance with the responsibilities and duties normally associated with
      similarly situated executives.

            

    

    

    5.3.1 Except as
otherwise agreed by EnerJex and Jones in writing, it is expressly understood and
agreed that Jones’ employment is fulltime and of a critical nature to the
success of EnerJex and is therefore exclusive.  Jones may not be
employed by other entities or otherwise perform duties and undertakings on
behalf of others or for her own interest unless pre-approved by the Board of
Directors.  EnerJex acknowledges that Jones presently, or may in the
future, serve on the Board of Directors of other companies and such action shall
not be a breach of this section; provided, however, that such
companies either: (a) are listed on Addendum B, attached
hereto; or (b) do not compete with EnerJex or interfere with the performance of
Jones’ duties pursuant to this Agreement, as determined in the reasonable
judgment of the Board of Directors.  Unless otherwise agreed by
EnerJex and Jones in writing, employment of Jones at less than full time shall
not affect the vesting of the Option Shares pursuant to this
Agreement.

    

    5.3.2 Additionally,
EnerJex recognizes that Jones has, or may have in the future, passive equity
positions in other companies, which either: (a) are listed on Addendum B attached
hereto; or (b) do not compete with EnerJex in the reasonable judgment of the
Board of Directors.  EnerJex recognizes that such equity positions may
occasionally require some limited attention from Jones during normal business
hours.  However, Jones agrees that if such time is considered
excessive by the Board of

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    Directors,
Jones shall be so advised and noticed by EnerJex and Jones shall be required to
make appropriate adjustments to ensure her duties and obligations under this
Agreement are fulfilled.

    

    
      	
              6.  

            	
              TERMINATION. The Term of this
      Agreement shall end upon its expiration pursuant to Section 2
      hereof, provided that this Agreement shall terminate prior to such date:
      (a) upon Jones’ resignation, death or permanent disability or incapacity;
      or (b) by EnerJex at any time for “Cause” (as
      defined in Section 6.4
      below) or without Cause.

            

    

    

    
      	
              6.1  

            	
              By
      Resignation Prior to Change of Control:  If Jones resigns
      with “Good
      Reason” (as defined below) prior to a Change of Control (as defined
      in Section 7), this Agreement shall terminate but, Jones shall be entitled
      to receive a lump sum payment equal to twelve (12) months Salary plus her
      prorated Bonus through the date of termination. Further, upon resignation
      for Good Reason prior to a Change of Control, all unvested stock or
      options held by Jones shall immediately vest and become exercisable for
      the full term set forth in such stock option or equity award
      agreements.  To the extent Jones elects to continue her group
      health coverage pursuant to COBRA following her termination of employment,
      then Jones shall be eligible to continue such coverage for herself and her
      dependents (if applicable), at EnerJex’s expense, for a period of twelve
      (12) months at the same cost as if Jones were still an employee of
      EnerJex.  To the extent that EnerJex finds it undesirable to
      cover Jones under its group health plan, EnerJex shall provide Jones (at
      EnerJex’s expense) with the same level of coverage under an individual
      policy or policies.

            

    

    

    For
purposes of this Agreement, “Good Reason” shall
mean any of the following if the same shall occur without Jones’ express written
consent:

    

    (i)           a
material diminution in Jones’ Salary;

    

    
      	
               
      

            	
              (ii)

            	
              a
      material diminution in Jones’ authority, duties, or
      responsibilities;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              a
      material change in the geographic location at which Jones must perform the
      services for which she is employed;
or

            

    

    

    
      	
               
      

            	
              (iv)

            	
              a
      change in the current reporting structure of the CFO reporting directly to
      the current CEO; or

            

    

    

    
      	
               
      

            	
              (v)

            	
              any
      other action or inaction that constitutes a material breach by EnerJex
      under this Agreement.

            

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    Jones
shall be required to provide notice to EnerJex of the existence of any of the
foregoing conditions within 30 days of the initial existence of the condition,
upon the notice of which EnerJex shall have a period of 30 days during which it
may remedy the condition without giving rise to the obligations under this
Section 6.1

    

    If Jones
resigns without
Good Reason, Jones shall be entitled to receive Jones’ Salary only through the
date of such resignation.

    

    
      	
              6.2  

            	
              By
      Reason of Incapacity or Disability: If Jones becomes
      so incapacitated by reason of accident, illness, or other disability that
      Jones is unable to carry on substantially all of the normal duties and
      obligations of Jones under this Agreement for a continuous period of sixty
      (60) calendar days, this Agreement shall terminate. For purposes of the
      foregoing, Jones’ permanent disability or incapacity shall be determined
      in accordance with EnerJex’s disability insurance policy, if such a policy
      is then in effect, or if no such policy is then in effect, such permanent
      disability or incapacity shall be determined by EnerJex’s Board of
      Directors in its good faith judgment based upon Jones’ inability to
      perform normal and reasonable duties and obligations. If Jones’ employment is terminated due to such
      disability, Jones shall be entitled to receive Jones’ Salary only
      through the date of such termination.  Other disability
      benefits, if any, will be determined in accordance with the terms of
      EnerJex’s benefit plans and
programs.

            

    

    

    
      	
              6.3  

            	
              By
      Reason of Death:  If Jones dies during the Term of this
      Agreement, EnerJex shall pay to the estate of Jones any earned Salary only
      through the date of Jones’ death. Other death
      benefits, if any, will be determined in accordance with the terms of
      EnerJex’s benefit plans and
programs.

            

    

    

    
      	
              6.4  

            	
              For
      Cause:  If this Agreement is terminated by EnerJex for
      Cause, Jones shall be entitled to receive Jones’ Salary only through the
      date of termination.

            

    

    

    For
purposes of this Agreement, “Cause” shall
mean:

    

    
      	
              (i)  

            	
              any
      act of dishonesty or fraud with respect to
  EnerJex;

            

    

    

    
      	
              (ii)  

            	
              Jones’
      conviction of a felony, a crime involving moral turpitude or other act
      causing material harm to EnerJex’s standing and
  reputation;

            

    

    

    
      	
              (iii)  

            	
              Jones’
      continued material failure to perform Jones’ duties to EnerJex after ten
      (10) business days’ written notice thereof to Jones;
  or

            

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    
      	
              (iv)  

            	
              gross
      negligence or willful misconduct by Jones with respect to
      EnerJex.

            

    

    

    EnerJex
shall provide Jones, within ten (10) business days of becoming aware of a “For
Cause” breach, written notice, which shall include written documentation, if
any, of the “For Cause” breach, as defined above. Upon receipt of the written
notice, Jones shall have thirty (30) calendar days to respond to EnerJex’s
notice and attempt to cure or resolve the “For Cause” breach. If after that 30
day period, in the judgment of the Board of Directors, the “For Cause” breach
still exists, then termination shall become effective immediately.

    

    
      	
              6.5  

            	
              Without
      Cause Prior to Change of Control:  If EnerJex terminates
      Jones’ employment without Cause prior to a Change of Control, Jones shall
      be entitled to receive a lump sum payment equal to twelve (12) months
      Salary plus her prorated Bonus through the date of
      termination.  Further, all unvested stock or options held by
      Jones shall immediately vest and become exercisable for the full term set
      forth in such stock option or equity award agreements.  To the
      extent Jones elects to continue her group health coverage pursuant to
      COBRA following her termination of employment, then Jones shall be
      eligible to continue such coverage for herself and her dependents (if
      applicable), at EnerJex’s expense, for a period of twelve (12) months at
      the same cost as if Jones were still an employee of EnerJex.  To
      the extent that EnerJex finds it undesirable to cover Jones under its
      group health plan, EnerJex shall provide Jones (at EnerJex’s expense) with
      the same level of coverage under an individual policy or policies. Jones expressly agrees and understands that, under
      such circumstances, she shall be entitled only to the payments recited herein, including any prorated Bonus through the date of
      termination, and she shall not be
      entitled to any further compensation of any kind through the Term of the
      Agreement.

            

    

    

    
      	
              6.6  

            	
              Change
      of Control Severance:  If EnerJex terminates Jones’
      employment without Cause within twelve (12) months after a Change of
      Control, or Jones resigns her employment with Good Reason within twelve
      (12) months after a Change of Control, Jones shall be entitled to receive
      a lump sum payment equal to twelve (12) months Salary plus 100% of her
      prior year’s Bonus.  Further, all stock options or equity awards
      granted by EnerJex shall immediately vest and become exercisable for the
      full term set forth in such stock option or equity award
      agreements.  To the extent Jones elects to continue her group
      health coverage pursuant to COBRA following her termination of employment,
      then Jones shall be eligible to continue such coverage for herself and her
      dependents (if applicable), at EnerJex’s expense, for a period of twelve
      (12) months at the same cost as if Jones were still an employee of
      EnerJex.  To the extent that
EnerJex

            

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    finds it
undesirable to cover Jones under its group health plan, EnerJex shall provide
Jones (at EnerJex’s expense) with the same level of coverage under an individual
policy or policies.

    

    
      	
              6.7  

            	
              No
      Mitigation:  Jones shall not be required to mitigate the
      amount of any payment or benefit contemplated by this Agreement, nor shall
      any such payment or benefit be reduced by any earnings or benefits Jones
      may receive from any other source.

            

    

    

    
      	
              6.8  

            	
              Effect
      of Termination on Unused Vacation Time and Other
      Benefits:  Upon the termination of this Agreement, unless
      termination is for Cause, Jones shall also have the right to receive any
      accrued but unused vacation time for that current fiscal year, and any
      benefits vested under the terms of any applicable benefit
      plans.

            

    

    

    
      	
              6.9  

            	
              Time
      of Payment:  Any amounts payable under this Section 6
      shall be paid in a single lump sum within 30 days following Jones’
      termination of employment.  The parties intend that all such
      payments shall satisfy the short term deferral exception under Treasury
      Regulation §1.409A-1(b)(4) and therefore shall be exempt from the
      requirements of Section 409A of the Internal Revenue Code of 1986, as
      amended.

            

    

    

    
      	
              6.10  

            	
              Release
      and Waiver:  Notwithstanding the preceding provisions of
      this Section 6 or any other provision in this Agreement to the contrary,
      Jones’ entitlement to any post-termination payment under this Agreement
      shall be subject to and conditioned upon Jones’ execution of a release and
      waiver of claims on the form reasonably acceptable to
    EnerJex.

            

    

    

    
      	
              7.  

            	
              CHANGE OF
      CONTROL.

            

    

    

    For
purposes of this Agreement a “Change of Control” shall mean:

    

    
      	
               
      

            	
              (i)

            	
              The
      consummation of a merger or consolidation of EnerJex with or into another
      entity or any other corporate reorganization, if more than 50% of the
      combined voting power of the continuing or surviving entity’s securities
      outstanding immediately after such merger, consolidation or other
      reorganization is owned by persons who were not stockholders of EnerJex
      immediately prior to such merger, consolidation or other
      reorganization;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              the
      sale, transfer or other disposition of all or substantially all of
      EnerJex’s assets; or

            

    

    

    
      	
               
      

            	
              (iii)

            	
              The
      date that 40% or more of the current members of the Board of Directors as
      of the date of this Agreement are replaced by directors who are not
      currently members of the Board of
Directors.

            

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    A
transaction shall not constitute a Change of Control if (i) its purpose is to
change the state of EnerJex’s incorporation or to create a holding company that
will be owned in substantially the same proportions by the persons who held
EnerJex’s securities immediately before such transaction, (ii) create a separate
entity, such as an MLP for holding certain assets of EnerJex, or (iii) if the
Change of Control is the result of a bona fide public offering of EnerJex’s
securities or other form of capital raising transaction conducted by EnerJex or
its assigns within twelve (12) months from the date of this Agreement; other
than the public offering on Form S-1 originally filed with the Securities and
Exchange Commission on or about April 9, 2008.

    

    
      	
              8.  

            	
              TRADE SECRETS AND
      CONFIDENTIALITY.

            

    

    

    
      	
              8.1  

            	
              Nondisclosure:
      Without the prior written consent of EnerJex, Jones shall not, at any
      time, either during or after the term of this Agreement, directly or
      indirectly, divulge or disclose to any person, firm, association, or
      corporation, or use for Jones’ own benefit, gain, or otherwise, any
      customer lists, plans, products, data, results of tests and data, or any
      other trade secrets or confidential materials or like information
      (collectively referred to as the “Confidential Information”) of EnerJex
      and/or its Affiliates, as hereinafter defined, it being the intent of
      EnerJex, with which intent Jones hereby agrees, to restrict Jones from
      disseminating or using any like information that is unpublished or not
      readily available to the general
public.

            

    

    

    
      	
              8.1.1  

            	
              Definition of
      Affiliate. For purposes of this Agreement, the term “Affiliate”
      shall mean any entity, individual, firm, or corporation, directly or
      indirectly, through one or more intermediaries, controlling, controlled
      by, or under common control with
EnerJex.

            

    

    

    
      	
              8.2  

            	
              Notice
      of Compelled Disclosure: If, at any time, Jones becomes legally
      compelled (by deposition, interrogatory, request for documents, subpoena,
      civil investigative demand, or similar process or otherwise) to disclose
      any of the Confidential Information, Jones shall provide EnerJex with
      prompt, prior written notice of such requirement so that EnerJex may seek
      a protective order or other appropriate remedy and/or waive compliance
      with the terms of this Agreement. In the event that such protective order
      or other remedy is not obtained, that EnerJex waives compliance with the
      provisions hereof, Jones agrees to furnish only that portion of the
      Confidential Information which Jones is advised by written opinion of
      counsel is legally required and exercise Jones’ best efforts to obtain
      assurance that confidential treatment will be accorded such Confidential
      Information. In any event, Jones shall not oppose action by EnerJex to
      obtain an appropriate protective order or other reliable assurance that
      confidential treatment will be accorded the Confidential
      Information.

            

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    
      	
              8.3  

            	
              Assurance
      of Compliance: Jones agrees to
      represent to EnerJex, in writing, at any time that EnerJex shall
      reasonably request, that Jones has complied with the provisions of this
      section, or any other section of this
Agreement.

            

    

    

    
      	
              9.  

            	
              RETURN
      OF ENERJEX PROPERTY. Jones agrees that upon any termination of her
      employment, Jones shall return to EnerJex within a reasonable time not to
      exceed forty-eight (48) hours, any of EnerJex’s property in her possession
      or under her control, including but not limited to, all lists, books,
      records, data, and other information (including all copies thereof in
      whatever form or media) of every kind relating to or connected with
      EnerJex or its Affiliates and their activities, business and customers,
      computer/office automation equipment, records and names, addresses, and
      other information with regard to customers or potential customers of
      EnerJex with whom Jones has had contact or done
  business.

            

    

    

    
      	
              10.  

            	
              RELATIONSHIP
      OF PARTIES. The parties intend that this Agreement create an
      Employee-Employer relationship between the
  parties.

            

    

    

    
      	
              11.  

            	
              NOTICES.  All
      notices, required and demands and other communications hereunder must be
      in writing and shall be deemed to have been duly given when personally
      delivered or when placed in the United States Mail and forwarded by
      Registered or Certified Mail, Return Receipt Requested, postage prepaid,
      or when forwarded via reputable overnight carrier, addressed to the party
      to whom such notice is being given at the following
    address:

            

    

    

    As to
EnerJex:                                 EnerJex
Resources, Inc.

    7300 W.
110th, 7th
Floor

    Overland
Park, Kansas  66210

    Attn:
Chief Executive Officer

    

    As to
Jones:                                      Dierdre
P. Jones

    12002 W. 130th
Street

    Overland Park,
KS  66213

    

    Address Change: Any party may
change the address(es) at which notices to it or him, as the case may be, are to
be sent by giving the notice of such change to the other parties in accordance
with this Section 11.

    

    12. MISCELLANEOUS.

    

    
      	
              12.1  

            	
              Entire
      Agreement:  This Agreement and the Addendums hereto
      contain the entire agreement of the parties.  This Agreement may
      not be altered, amended or modified except in writing duly executed by the
      parties.

            

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    
      	
              12.2  

            	
              Assignment:  Neither
      party, without the written consent of the other party, can assign this
      Agreement.

            

    

    

    
      	
              12.3  

            	
              Binding:  This
      Agreement shall be binding upon and inure to the benefit of the parties,
      their personal representative, successors and
  assigns.

            

    

    

    
      	
              12.4  

            	
              No
      Waiver:  The waiver of the breach of any covenant or
      condition herein shall in no way operate as a continuing or permanent
      waiver of the same or similar covenant or
  condition.

            

    

    

    
      	
              12.5  

            	
              Severability:  If
      any provision of this Agreement is held to be invalid or unenforceable for
      any reason, the remaining provisions will continue in full force without
      being impaired or invalidated in any way.  The parties hereto
      agree to replace any invalid provision with at valid provision which most
      closely approximates the intent of the invalid
  provision.

            

    

    

    
      	
              12.6  

            	
              Interpretation:  This
      Agreement shall not be construed more strongly against any party hereto
      regardless of which party may have been more responsible for the
      preparation of Agreement.

            

    

    

    
      	
              12.7  

            	
              Governing
      Law:  This Agreement shall be governed by and construed
      under the laws of the State of Kansas, without reference to the choice of
      law principles thereof.

            

    

    

    
      	
              12.8  

            	
              Arbitration:

            

    

    

    
      	
              12.8.1  

            	
              Any
      controversy, dispute or claim of whatever nature in any way arising out of
      or relating to Jones’ employment with EnerJex, including, without
      limitation (except as expressly excluded below in Section 12.8.2)
      any claims or disputes by Jones against EnerJex, or by EnerJex against
      Jones, concerning, arising out of or relating to the separation of that
      employment; any other adverse personnel action by EnerJex; any federal,
      state or local law, statute or regulation prohibiting employment
      discrimination or harassment; any public policy; any EnerJex disciplinary
      action; any EnerJex decision regarding a EnerJex policy or practice,
      including but not limited to Jones’ compensation or other benefits; and
      any other claim for personal, emotional, physical or economic injury
      (individually or collectively, “Covered
      Claims”) shall be resolved, at the request of any party to this
      Agreement, by final and binding arbitration in Kansas City, Missouri
      before Judicial Arbitration Mediation Services (“JAMS”) in
      accordance with JAMS’ then-current policies and procedures for arbitration
      of employment disputes.  All costs for such arbitration,
      including but not limited to Jones’ attorney’s fees, professional fees,
      witness fees or any other

            

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    costs,
expenses, or fees related to the arbitration, regardless of the party bringing
the action, shall be borne by EnerJex.

    

    
      	
              12.8.2  

            	
              The
      only claims or disputes excluded from binding arbitration under this
      Agreement are the following: any claim by Jones for workers’ compensation
      benefits or for benefits under a EnerJex plan that provides its own
      arbitration procedure; and any claim by either party for equitable relief,
      including but not limited to, a temporary restraining order, preliminary
      injunction or permanent injunction against the other
  party.

            

    

    

    
      	
              12.8.3  

            	
              This
      agreement to submit all Covered Claims to binding arbitration in no way
      alters the exclusivity of Jones’ remedy under Section 6.5 in
      the event of any termination without Cause or the exclusivity of Jones’
      remedy under Section 6.4
      in the event of any termination with Cause, and does not require EnerJex
      to provide Jones with any type of progressive
  discipline.

            

    

    

    
      	
              12.9  

            	
              Taxes:  EnerJex
      is authorized to withhold from any payment or benefit provided hereunder,
      the amount of withholding taxes due any federal, state or local authority
      in respect of such benefit or payment and to take such other action as may
      be necessary in the opinion of EnerJex to satisfy all obligations for the
      payment of such withholding taxes.  In the event EnerJex does
      not make such deductions or withholdings, Jones shall indemnify EnerJex
      for any amounts paid with respect to any such taxes, together with any
      interest, penalties and related expenses thereto.  Jones
      acknowledges that no oral or written representation of fact or opinion has
      been made to him by EnerJex or its attorneys regarding the tax treatment
      or consequences of any payment made under this Agreement.  Jones
      acknowledges and agrees that to the extent any liability or responsibility
      exists for Jones’ federal, state and local income or other taxes, such
      liability or responsibility rests solely with her. Jones further agrees to
      indemnify and hold harmless EnerJex in connection with any liability
      incurred by EnerJex in connection with any tax or taxes for which Jones is
      responsible.

            

    

    

    
      	
              12.10  

            	
              Section
      409A of the Internal Revenue Code:  To the extent
      applicable, this Agreement shall be interpreted, construed and operated in
      accordance with the Section 409A of the Internal Revenue Code, and the
      Treasury regulations and other guidance issued thereunder.  Any
      reference to termination of employment, severance from employment or
      similar terms shall mean and be interpreted as a “separation from service”
      as defined (as defined in Treasury Regulation
      §1.409A-1(h)).   If on the date of Jones’ separation from
      service with EnerJex, Jones is a specified employee (as defined in Code
      Section 409A and Treasury Regulation §1.409A-1(i)), no payment
      constituting the  “deferral of compensation” within the
      meaning

            

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    of
Treasury Regulation §1.409A-1(b) and after application of the exemptions
provided in Treasury Regulation §§1.409A-1(b)(4) and 1.409A-1(b)(9)(iii) shall
be made to Jones at any time during the six (6) month period following Jones’
separation from service, and any such amounts shall instead be paid in a lump
sum on the first payroll payment date following expiration of such six (6) month
period.  Any obligation of EnerJex to reimburse Jones for expenses
incurred during any taxable year of Jones shall not affect the expenses eligible
for reimbursements in any other taxable year.  Further, such
reimbursement of expenses shall be made on or before the last day of Jones’
taxable year following the taxable year in which the expense was
incurred.

    

    
      	
              12.11  

            	
              Titles:  Titles
      to the sections of this Agreement are solely for the convenience of the
      parties and shall not be used to explain, modify, simplify, or aid in the
      interpretation of the provisions of this
  Agreement.

            

    

    

    
      	
              12.12  

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

            

    

    

    

    

    SIGNATURE
PAGE TO FOLLOW

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

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

    

    THIS
AGREEMENT CONTAINS AN ARBITRATION CLAUSE.

    

    

    EnerJex:                                                                                         
EnerJex Resources, Inc.

    a Nevada
corporation

    

    

    By: /s/ Steve
Cochennet

                                                                              
Steve Cochennet, CEO

    

    

    Jones:

    

    By: /s/ Dierdre P.
Jones

           Dierdre
P. Jones

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    Signature
Page to Employment Agreement

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    ADDENDUM
A

    

     

    Job
Description for Dierdre P. Jones

     

    Job
Title:                                Chief Financial
Officer

    Department:                           Executive

    Reports
To:                            Chief Executive
Officer

     

    SUMMARY

     

     

    The Chief
Financial Officer (CFO) is responsible for planning, organizing, staffing, and
managing all of EnerJex’s financial and accounting functions.  In
addition, the CFO is responsible to oversee the outsourced Human Resources
functions.  The CFO manages EnerJex’s relationships with lending
institutions, stockholders, and essential members of the financial community and
is accountable to the CEO for the results of such functions and the performance
of all assigned employees reporting directly to the CFO.

     

     

    The CFO
is responsible to report and communicate financial and accounting information as
required by management, its Board of Directors, or by law.

     

     

    The CFO
aids the CEO in formulating and administering the policies and procedures
fundamental to EnerJex, and performs the following duties personally or through
subordinate managers / employees:

     

     

    DUTIES
AND SERVICE

     

    
      	
              ·  

            	
              Oversees
      all company accounting practices, including accounting departments,
      preparing budgets and financial reports, both internal and
      external

            

    

     

    
      	
              o  

            	
              analyze,
      critique and review all monthly, quarterly and annual financial statements
      of consolidated and subsidiary
companies

            

    

     

    
      	
              o  

            	
              ensure
      compliance with Generally Accepted Accounting Principles
      (GAAP)

            

    

     

    
      	
              o  

            	
              maintain
      Sarbanes-Oxley (SOX) compliance

            

    

     

    
      	
              o  

            	
              manage
      and execute staffing decisions of accounting department
      personnel

            

    

     

    
      	
              o  

            	
              draft
      management discussion and analysis for Forms 10Q and 10K, and other SEC
      filings, as reasonably required

            

    

     

    
      	
              o  

            	
              prepare
      a monthly CFO letter to management and the Board of
    Directors

            

    

     

    
      	
              ·  

            	
              Coordinates
      the tax preparation and audit functions with appointed
      firm(s).  Maintains primary contact with the external auditor
      and the audit committee of the Board of
  Directors.

            

    

     

    
      	
              ·  

            	
              Ensures
      compliance with state and federal agencies with respect to financial and
      accounting matters.

            

    

     

    
      
        
          
            	 
      	
                    A-1

                  	 
      

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
              ·  

            	
              Attends
      Director and Stockholder meetings

            

    

     

    
      	
              ·  

            	
              Directs
      financial strategy, planning and forecasts, including expense control,
      revenue cycle management, and cash
management

            

    

     

    
      	
              o  

            	
              spearhead
      the annual and longer-term budgets consistent with the adopted 3 to 5 year
      business and strategic plans

            

    

     

    
      	
              ·  

            	
              Participates
      in investment and raising of funds for
business

            

    

     

    
      	
              o  

            	
              participates
      in road shows and investor
presentations

            

    

     

    
      	
              o  

            	
              maintains
      primary contact with banking and lending
  institutions

            

    

     

    
      	
              ·  

            	
              Studies,
      analyzes and reports on trends, opportunities for expansion and projection
      of future company growth

            

    

    

    
      	
              o  

            	
              assist
      in negotiations of merger and acquisition
  transactions

            

    

    
      	
              o  

            	
              evaluate
      financial statements of potential merger and acquisition
      candidates

            

    

    
      	
              ·  

            	
              Manages
      complete day-to-day operations of the Company’s headquarters in Overland
      Park, KS

            

    

     

    
      	
              ·  

            	
              Assists
      in the negotiations of all material
contracts.

            

    

    
      	
              ·  

            	
              Maintains
      the Certified Public Accountant (CPA) designation, including all required
      continuing education and ethics requirements, to ensure good standing at
      all times during the Term of
employment

            

    

    

    
      	
              ·  

            	
              Perform
      other duties and responsibilities deemed necessary by the CEO and Board of
      Directors

            

    

    

    
      
        
          
            	 
      	
                    A-2

                  	 
      

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    ADDENDUM
B

    Approved
Non-EnerJex Resources, Inc.

    Business
Activity Exemptions

    

     

    Description of Business
Activity                                                                                                  

    
      	
              1.  

            	
              None
      as of the date of this
Agreement.

            

    

    
      
        
          
            	 
      	
                    B-1

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