Document:

Unassociated Document

    EXHIBIT
10.3

    

    2009
OMNIBUS STOCK INCENTIVE PLAN OF

    HARTMAN
SHORT TERM INCOME PROPERTIES XX, INC.

    

    1.
PURPOSES OF THE PLAN AND DEFINITIONS

    

             1.1
Purposes. The purposes of the Employee and Director Incentive Share Plan (the
"Plan") of Hartman Short Term Income Properties XX, Inc. (the "Company")are
to:

    

    (a)
provide incentives to individuals chosen to receive share-based awards because
of their ability to improve operations and  increase
profits;

    

    (b)
encourage selected persons to accept or continue employment with the Company or
any Advisor or Affiliate of the Company; and

    

    (c)
increase the interest of Directors in the Company's welfare through their
participation in the growth in value of the Company's Shares.

    

             To
accomplish these purposes, this Plan provides a means whereby Employees of the
Company or any Advisor or Affiliate of the Company, Directors and other
enumerated persons may receive Awards.

    

             1.2
Definitions. For purposes of this Plan, the following terms have the following
meanings:

    

             "Advisor"
means the Person or Persons, if any, appointed, employed or contracted with by
the Company pursuant to Section 4 hereof and responsible for directing or
performing the day-to-day business affairs of the Company, including any Person
to whom the Advisor subcontracts substantially all of such functions. The
initial Advisor is Hartman Advisors LLC.

    

             "Affiliate"
means any Person (other than an Advisor), whose employees are eligible to
receive Awards under the Plan. The determination of whether a Person is an
Affiliate shall be made by the Committee acting in its sole and absolute
discretion.

    

              "Applicable
Laws" means the requirements relating to the administration of Awards under U.S.
state corporate laws, U.S. Federal and state securities laws, the Code, any
stock exchange or quotation system on which the Shares are listed or quoted and
the applicable laws of any foreign country or jurisdiction where Awards are, or
will be, granted under the Plan.

    

             "Articles
of Incorporation" means the articles of incorporation of the Company as the same
may be amended from time to time.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

             "Award"
means any grant under this Plan, including any grant of Options, Restricted
Shares, Share Appreciation Rights, Dividend Equivalent Rights or Director
Restricted Shares.

    

             "Award
Agreement" means, with respect to each Award, the written agreement executed by
the Company and the Participant or other written document approved by the
Committee setting forth the terms and conditions of the Award.

    

             "Board"
means the Board of Directors of the Company.

    

             "Code"
means the Internal Revenue Code of 1986, as amended from time to time, and any
successor statute.

    

             "Committee"
has the meaning given it in Section 4.1.

    

             "Common
Shares" or "Shares" means common shares of capital stock of the Company, $.001
par value per share.

    

             "Company"
has the meaning given it in Section 1.1.

    

             "Director"
means a person elected or appointed and serving as director of the Company in
accordance with the Articles of Incorporation and the Maryland General
Corporation Law.

    

             "Director
Restricted Shares" has the meaning given it in Section 7.5.

    

             "Dividend
Equivalent Right" means an Award of rights pursuant to Section 9.

    

             "Effective
Date" has the meaning given it in Section 16.

    

             "Employee"
has the meaning ascribed to it for purposes of Section 3401(c) of the Code and
the Treasury Regulations adopted under that Section. An employee includes an
officer or a Director who is an employee of the Company.

    

             "Employment
Termination" means that a Participant has ceased, for any reason and with or
without cause, to be an Employee or Director of, or a consultant to, the
Company, the Advisor or any Affiliate of the Company. However, the term
"Employment Termination" shall not include a Non-Employee Director's ceasing to
be a Director or a transfer of a Participant from the Company to the Advisor or
an Affiliate or vice versa, or from one Affiliate to another, or a leave of
absence duly authorized by the Company unless the Committee has provided
otherwise.

    

             "ERISA"
means the Employee Retirement Income Security Act of 1974, as amended from time
to time.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

             "Exchange
Act" means the Securities Exchange Act of 1934, as amended from time to time,
and any successor statute.

    

             "Exercise
Notice" has the meaning given it in Section 6.1(h).

    

             "Fair
Market Value" means with respect to Shares:

    

                      (i)
If the Shares are listed on any established stock exchange or a national market
system, including, without limitation, the NASDAQ National Market System, their
Fair Market Value shall be the closing sales price for the Shares, or the mean
between the high bid and low asked prices if no sales were reported, as quoted
on such system or exchange (or, if the Shares are listed on more than one
exchange, then on the largest such exchange) for the date the value is to be
determined (or if there are no sales or bids for such date, then for the last
preceding business day on which there were sales or bids), as reported in The
Wall Street Journal or similar publication.

    

                      (ii)
If the Shares are regularly quoted by a recognized securities dealer but selling
prices are not reported, or if there is no market for the Shares, their Fair
Market Value shall be determined in good faith by the Committee, with reference
to the Company's net worth, prospective earning power, dividend-paying capacity
and other relevant factors, including the goodwill of the Company, the economic
outlook in the Company's industry, the Company's position in the industry and
its management, and the values of stock of other enterprises in the same or
similar lines of business.

    

             "Grant
Date" has the meaning given it in Section 6.1(d).

    

             "Incentive
Share Option" or "ISO" means any Option intended to be and designated as an
"incentive stock option" within the meaning of Section 422 of the Code, and any
successor provision.

    

             "Non-Employee
Director" means a person who is a non-employee director as defined in Rule 16b-3
or a person who is an outside director as defined in Treasury Regulation
1.162-27(e)(3).

    

             "Non-Qualified
Share Option" or "NQO" means any Option that is not an Incentive Share Option.
"Option" means an option granted under Section 5.

    

    "Participant"
means an eligible person who is granted an Award.

    

    "Person"
means a corporation, partnership, trust, association or any other
entity.

    

    "Plan"
means this Employee and Director Incentive Share Plan.

    

    "Related
Corporation" means a parent or subsidiary corporation of the Company, as those
terms are defined in Sections 424(e) and (f) of the Code "Restricted Shares"
means an Award granted under Section 7.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    "Retainer"
has the meaning given it in Section 10.1.

    

    "Rule
16b-3" means Rule 16b-3 adopted under Section 16(b) of the Exchange Act or any
successor rule, as it may be amended from time to time, and references to
paragraphs or clauses of Rules 16b-3 refer to the corresponding paragraphs or
clauses of Rule 16b-3 as it exists at the Effective Date or the comparable
paragraph or clause of Rule 16b-3 or successor rule, as that paragraph or clause
may thereafter be amended.

    

    "Section
16(b)" means Section 16(b) under the Exchange Act.

    

    "Securities
Act" means the Securities Act of 1933, as amended from time to time, and any
successor statute.

    

    "Share
Appreciation Right" means an Award granted under Section 8.

    

    "Ten
Percent Stockholder" means any person who, at the time this definition is being
applied, owns, directly or indirectly (or is treated as owning by reason of
attribution rules currently set forth in Code Section 424 or any successor
statute), shares of the Company constituting more than 10% of the total combined
voting power of all classes of outstanding shares of the Company or any Related
Corporation.

    

    2.
ELIGIBLE PERSONS

    

             Every
person who, at or as of the Grant Date, is (a) a full-time Employee of the
Company, the Advisor or any Affiliate of the Company, (b) a Director of the
Company or a director of any Affiliate of the Company, or (c)someone whom the
Committee designates as eligible for an Award (other than for Incentive Share
Options) because the person (i) performs bona fide consulting or advisory
services for the Company, the Advisor or any Affiliate of the Company pursuant
to a written agreement (other than services in connection with the offer or sale
of securities in a capital-raising transaction), and (ii) has a direct and
significant effect on the financial development of the Company or any Affiliate
of the Company, shall be eligible to receive Awards here under. Directors of the
Company who are not full-time Employees are only eligible to receive Director
Restricted Shares under Section 7.5 and Director Shares under Section
10.

    

    3. SHARES
SUBJECT TO THIS PLAN

    

             The
total number of Shares that may be issued under Awards is a number of Shares
equal to 5,000,000, with such number of Shares not to exceed ten (10%) percent
of the total number of Shares outstanding; provided that if the number of Shares
outstanding is increased, the number of Shares that may be issued under this
Plan shall increase proportionately. Such Shares may consist, in whole or in
part, of authorized and un issued Common Shares or Shares reacquired in private
transactions or open market purchases, but all Shares issued under the Plan,
regardless of their source, shall be counted against the Share limitation. Any
Shares that are retained by the Company upon exercise or settlement of an Award
in order to satisfy the exercise price in whole or in part, or to pay
withholding taxes due with respect to such exercise or settlement, shall be
treated as issued to the Participant and will thereafter not be available under
the Plan. Any Shares subject to unexercised portions of Options granted under
the Plan which shall have been terminated, cancelled or that have expired may
again be subject to Options hereunder. The number of Shares reserved for
issuance under this Plan is subject to adjustment in accordance with the
provisions for adjustment in Section 6.1.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    4.
ADMINISTRATION

    

             4.1
Committee.

    

             (a)
In General. This Plan shall be administered by the compensation committee (the
"Committee") appointed by the Board. The number of persons who shall constitute
the Committee shall be determined from time to time by a majority of all the
members of the Board; provided, however, that the Committee shall not consist of
fewer than two persons, a majority of whom shall be non-employee
directors.

    

             (b)
Section 162(m). To the extent the Board desires to qualify Awards granted under
this Plan as "performance based compensation" within the meaning of section
162(m) of the Code, the Plan shall be administered by a Committee of two or more
"outside directors" as defined in Treasury Regulation
1.162-27(e)(3).

    

             (c)
Rule 16b-3. To the extent desirable to qualify transactions under this Plan as
exempt under Rule 16b-3, a Committee consisting solely of two or more
"non-employee directors" as defined in Rule 16b-3, must approve such
transactions.

    

             4.2
Duration, Removal, Etc. The members of the Committee shall serve a the pleasure
of the Board, which shall have the power, at any time and from time to time, to
remove members from or add members to the Committee. Removal from the Committee
may be with or without cause. Any individual serving as a member of the
Committee shall have the right to resign from the Committee by giving at least
three days' prior written notice to the Board. The Board, and not the remaining
members of the Committee, shall have the power and authority to fill vacancies
on the Committee, however caused. The Board shall promptly fill any vacancy that
causes the number of members of the Committee to be fewer than two or any other
minimum number required to comply with Rule 16b-3 or section 162(m) of the Code
(unless the Board expressly determines not to have Awards under the Plan comply
with Rule 16b-3 or section 162(m) of the Code, respectively).

    

             4.3
Meetings and Actions of Committee. The Board shall designate which of the
Committee members shall be the chairperson of the Committee. If the Board fails
to designate a chairperson for the Committee, the members of the Committee shall
elect one of the Committee members as chairperson, who shall act as chairperson
until he or she ceases to be a member of the Committee or until the Board (or
the Committee) elects a new chairperson. The Committee may make any rules and
regulations for the conduct of its business that are not inconsistent with this
Plan, the Articles of Incorporation, the Bylaws of the Company or Applicable
Laws.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

            4.4
Committee's Powers. Subject to the express provisions of this Plan, the
Committee shall have the authority, in its sole discretion:

    

    (a) to
adopt, amend and rescind administrative and interpretive rules and regulations
relating to the Plan;

    

    (b) to
determine the eligible persons to whom, and the time or times at which, Awards
shall be granted;

    

    (c) to
determine the number of Shares that shall be the subject of each
Award;

    

    (d) to
determine the terms and provisions of each Award Agreement(which need not be
identical) and any amendments thereto, including provisions defining or
otherwise relating to:

    

               (i)
the period or periods and extent of exercise ability of any Option or Share
Appreciation Right;

    

               (ii)
the extent to which the transferability of Shares issued or transferred pursuant
to any Award is restricted;

    

               (iii)
the effect of Employment Termination on an Award; and

    

               (iv)
the effect of approved leaves of absence;

    

             (e)
to accelerate the time of exercise ability of any Option, Dividend Equivalent
Right or Share Appreciation Right;

    

             (f)
to construe the respective Award Agreements and the Plan;

    

             (g)
to make determinations of the Fair Market Value of Shares;

    

             (h)
to waive any provision, condition or limitation set forth in an Award
Agreement;

    

             (i)
to delegate its duties under the Plan to such agents as it may appoint from time
to time; provided, however, that the Committee may not delegate its duties with
respect to making or exercising discretion with respect to Awards to eligible
persons if such delegation would cause Awards not to qualify for the exemptions
provided by Rule 16b-3 or section 162(m) of the Code(unless the Board expressly
determines not to have Awards under the Plan comply with Rule 16b-3 or section
162(m) of the Code, respectively);

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

             (j)
to make all other determinations, perform all other acts and exercise all other
powers and authority necessary or advisable for administering the Plan,
including the delegation of those ministerial acts and responsibilities as the
Committee deems appropriate. The Committee may correct any defect, supply any
omission or reconcile any inconsistency in the Plan, in any Award or in any
Award Agreement in the manner and to the extent it deems necessary or desirable
to implement the Plan, and the Committee shall be the sole and final judge of
that necessity or desirability. The determinations of the Committee on the
matters referred to in this Section 4.4 shall be final and conclusive.
Notwithstanding any provision in this Plan to the contrary, Awards will be made
to Non-Employee Directors only under Sections 7.5 and 10 of this Plan. In
addition, notwithstanding any provision of this Plan to the contrary, the
Committee may not in any manner exercise discretion under the Plan with respect
to any Awards made to Non-Employee Directors; and,

    

    (k)  to avoid application of
Section 409A of the Code for any Award granted under this Plan.

    

             4.5
Term of Plan. No Awards shall be granted under this Plan after 10 years from the
Effective Date of this Plan.

    

    5. GRANT
OF OPTIONS

    

             5.1
Written Agreement. Each Option shall be evidenced by an Award Agreement. The
Award Agreement shall specify whether each Option it evidences is an NQO or an
ISO.

    

             5.2
Annual $100,000 Limitation on ISOs. To the extent that the aggregate Fair Market
Value of Shares with respect to which ISOs first become exercisable by a
Participant in any calendar year exceeds $100,000, taking into account ISOs
granted under this Plan and any other plan of the Company or any Related
Corporation, the Options covering such additional Shares becoming exercisable in
that year shall cease to be ISOs and thereafter be NQOs. For this purpose, the
Fair Market Value of Shares subject to Options shall be determined as of the
date the Options were granted. In reducing the number of Options treated as ISOs
to meet this $100,000 limit, the most recently granted Options shall be reduced
first.

    

    6.
CERTAIN TERMS AND CONDITIONS OF OPTIONS AND OTHER AWARDS

    

    Each
Option shall be designated as an ISO or an NQO and shall be subject to the terms
and conditions set forth in Section 6.1. Notwithstanding the foregoing, the
Committee may provide for different terms and conditions in any Award Agreement
or amendment thereto as provided in Section 4.4.

    

             6.1
All Awards. All Options and other Awards shall be subject to the following terms
and conditions:

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

             (a)
Changes in Capital Structure. If the number of outstanding Shares is increased
by means of a share dividend payable in Shares, a share split or other
subdivision or by a reclassification of Shares, then, from and after the record
date for such dividend, subdivision or reclassification, the number and class of
Shares subject to this Plan and each outstanding Award shall be increased in
proportion to such increase in outstanding Shares and the then-applicable
exercise price of each outstanding Award shall be correspondingly decreased. If
the number of outstanding Shares is decreased by means of a share split or other
subdivision or by a reclassification of Shares, then, from and after the record
date for such split, subdivision or reclassification, the number and class of
Shares subject to this Plan and each outstanding Award shall be decreased in
proportion to such decrease in outstanding Shares and the then-applicable
exercise price of each outstanding Award shall be correspondingly
increased.

    

             (b)
Certain Corporate Transactions. In the case of any reclassification or change of
outstanding Shares issuable upon exercise of an outstanding Award or in the case
of any consolidation or merger of the Company with or into another entity (other
than a merger in which the Company is the surviving entity and which does not
result in any reclassification or change in the then-outstanding Shares) or in
the case of any sale or conveyance to another entity of the property of the
Company as an entirety or substantially as an entirety, then, as a condition of
such reclassification, change, consolidation, merger, sale or conveyance, the
Company or such successor or purchasing entity, as the case may be, shall make
lawful and adequate provision whereby the holder of each outstanding Award shall
thereafter have the right, on exercise of such Award, to receive the kind and
amount of securities, property and/or cash receivable upon such
reclassification, change, consolidation, merger, sale or conveyance by a holder
of the number of securities issuable upon exercise of such Award immediately
before such reclassification, change, consolidation, merger, sale or conveyance.
Such provision shall include adjustments that shall be as nearly equivalent as
may be practicable to the adjustments provided for in Section 6.1(a).
Notwithstanding the foregoing, if such a transaction occurs, in lieu of causing
such rights to be substituted for outstanding Awards, the Committee may, upon 20
days' prior written notice to Participants in its sole discretion: (i) shorten
the period during which Awards are exercisable, provided they remain
exercisable, to the extent otherwise exercisable, for at least 20 days after the
date the notice is given, or (ii) cancel an Award upon payment to the
Participant in cash, with respect to each Award to the extent then exercisable,
of an amount which, in the sole discretion of the Committee, is determined to be
equivalent to the amount, if any, by which the Fair Market Value (at the
effective time of the transaction) of the consideration that the Participant
would have received if the Award had been exercised before the effective time
exceeds the exercise price of the Award. The actions described in this Section
6.1(b) may be taken without regard to any resulting tax consequences to the
Participant.

    

             (c)
Special Rule For Non-Employee Directors. In the event of any transaction
described in the second sentence of Section 6.1(b) the Director Restricted
Shares shall become fully vested.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

             (d)
Grant Date. Each Award Agreement shall specify the date as of which it shall be
effective (the "Grant Date").

    

             (e)
Time of Exercise; Vesting. Awards may, in the sole discretion of the Committee,
be exercisable or may vest, and restrictions may lapse, as the case may be, at
such times and in such amounts as may be specified by the Committee in the grant
of the Award.

    

             (f)
Nonassignability of Rights. Awards shall not be transferable other than with the
consent of the Committee (which consent will not be granted in the case of ISOs
unless the conditions for transfer of ISOs specified in the Code have been
satisfied) or by will or the laws of the descent and distribution. Awards
requiring exercise shall be exercisable only by the Participant, assignees that
were approved by the Committee, executors, administrators or beneficiaries of
the Participant (who are the permitted transferees hereunder), guardians or
members of a committee for an incompetent Participant, or similar persons duly
authorized by law to administer the estate or assets of a
participant.

    

             (g)
Notice and Payment. To the extent it is exercisable, an Award shall be
exercisable only by written or recorded electronic notice of exercise, in the
manner specified by the Committee from time to time, delivered to the Company or
its designated agent during the term of the Award (the "Exercise Notice"). The
Exercise Notice shall: (i) state the number of Shares with respect to which the
Award is being exercised; (ii) be signed by the holder of the Award or by the
person authorized to exercise the Award pursuant to Section 6.1(f); and (iii)
include such other information, instruments and documents as may be required to
satisfy any other condition to exercise set forth in the Award Agreement. Except
as provided below, payment in full, in cash or check, shall be made for all
Shares purchased at the time notice of exercise of an Award is given to the
Company. The proceeds of any payment shall constitute general funds of the
Company. At the time an Award is granted or before it is exercised, the
Committee, in the exercise of its sole discretion, may authorize any one or more
of the following additional methods of payment:

    

               (i)
for all Participants other than officers and Directors, acceptance of each such
Participant's full recourse promissory note for some or all (to the extent
permitted by law) of the exercise price of the Shares being acquired, payable on
such terms and rate of interest as determined by the Committee, and secured in
such manner, if at all, as the Committee shall approve, including, without
limitation, by a security interest in the Shares which are the subject of the
Award or other securities;

    

               (ii)
for all Participants, delivery by each such Participant of Shares already owned
by such Participant for all or part of the exercise price of the Award being
exercised, provided that the Fair Market Value of such Shares is equal on the
date of exercise to the exercise price of the Award being exercised, or such
portion thereof as the Participant is authorized to pay and elects to pay by
delivery of such Shares;

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

               (iii)
for all Participants, surrender by each such Participant, or withholding by the
Company from the Shares issuable upon exercise of the Award, of a number of
Shares subject to the Award being exercised with a Fair Market Value equal to
some or all of the exercise price of the Shares being acquired, together with
such documentation as the Committee and the broker, if applicable, shall
require; or

    

               (iv)
for all Participants, payment may be made pursuant to a cashless exercise
arrangement approved by the Committee. If the exercise price is satisfied in
whole or in part by the delivery of Shares pursuant to paragraph (ii) above, and
provided that all such Shares have been held by the Participant for at least six
months, the Committee may issue the Participant an additional Option, with terms
identical to those set forth in the option agreement governing the exercised
Option, except for the exercise price which shall be the fair market value used
for such delivery and the number of Shares subject to such additional Option
shall be the number of Shares so delivered.

    

             (h)
Termination of Employment from the Company, the Advisor or any Affiliate of the
Company. Any Award or portion thereof which has not vested on or before the date
of a Participant's Employment Termination shall expire on the date of such
Employment Termination. as to an Award or portion thereof that has vested by the
time of Employment Termination, the Committee shall establish, in respect of
each Award when granted, the effect of an Employment Termination on the rights
and benefits there under and in so doing may, but need not, make distinctions
based upon the cause of termination (such as retirement, death, disability or
other factors) or which party effected the termination (the employer or the
Employee). Notwithstanding any other provision in this Plan or the Award
Agreement, the Committee may decide in its discretion at the time of any
Employment Termination (or within a reasonable time thereafter) to extend the
exercise period of an Award (but not beyond the period specified in Section
6.2(b) or 6.3(b), as applicable) and not decrease the number of Shares covered
by the Award with respect to which the Award is exercisable or vested. At
transfer of a Participant from the Company to the Advisor or an Affiliate or
vice versa, or from one Affiliate to another, or a leave of absence duly
authorized by the Company, shall not be deemed an Employment termination or a
break in continuous employment unless the Committee has provided
otherwise.

    

             (i)
Death, Disability or Retirement. Any Award or portion thereof which has not
vested on or before the date of the Participant's death, disability or
retirement shall expire on the date of such Participant's death, disability or
retirement. As to an Award or portion thereof that has vested by the date of
death, disability or retirement of the Participant, such Awards or portions
thereof must be exercised within two years of the date of the Participant's
death, disability or retirement by the Participant or a person authorized under
this Plan to exercise such Award.

    

             (j)
Other Provisions. Each Award Agreement may contain such other terms, provisions
and conditions not inconsistent with this Plan, as may be determined by the
Committee, and each ISO granted under this Plan shall include such provisions
and conditions as are necessary to qualify such Option as an "incentive stock
option" within the meaning of Section 422 of the Code.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

             (k)
Withholding and Employment Taxes. At the time of exercise of an Award, the lapse
of restrictions on an Award or a disqualifying disposition of Shares issued
under an ISO (within the meaning of Section 6.3(c)), the Participant shall remit
to the Company in cash all applicable Federal and state withholding and
employment taxes. If and to the extent authorized and approved by the Committee
in its sole discretion, a Participant may elect, by means of a form of election
to be prescribed by the Committee, to have Shares which are acquired upon
exercise of an Award withheld by the Company or tender other Shares owned by the
Participant to the Company at the time that the amount of such taxes is
determined, in order to pay the amount of such tax obligations, subject to any
limitations as the Committee determines are necessary or appropriate. Any Shares
so withheld or tendered shall be valued by the Company as of the date they are
withheld or tendered. If Shares are tendered to satisfy such withholding tax
obligation, the Committee may issue the Participant an additional Option, with
terms identical to those set forth in the option agreement governing the Option
exercised, except that the exercise price shall be the Fair Market Value used by
the Company in accepting the tender of Shares for such purpose and the number of
Shares subject to the additional Option shall be the number of Shares tendered
by the Participant.

    

             6.2
Terms and Conditions to Which Only NQOs Are Subject. Options granted under this
Plan which are designated as NQOs shall be subject to the following terms and
conditions:

    

             (a)
Exercise Price. The exercise price of an NQO shall be determined by the
Committee; provided, however, that the exercise price of an NQO shall not be
less than the fair market value of the Shares subject to the Option on the Grant
Date.

    

             (b)
Option Term. Unless the Committee specifies an earlier expiration date at the
Grant Date, each NQO shall expire 10 years after the Grant Date.

    

             6.3
Terms and Conditions to Which Only ISOs Are Subject. Options granted under this
Plan which are designated as ISOs shall be subject to the following terms and
conditions:

    

             (a)
Exercise Price. The exercise price of an ISO shall be determined in accordance
with the applicable provisions of the Code and shall in no event be less than
the Fair Market Value of the Shares covered by the ISO at the Grant Date;
provided, however, that the exercise price of an ISO granted to a Ten Percent
Stockholder shall not be less than 110% of such fair market value.

    

             (b)
Option Term. Unless an earlier expiration date is specified by the Committee at
the Grant Date, each ISO shall expire 10 years after the Grant Date; provided,
however, that an ISO granted to a Ten Percent Stockholder shall expire no later
than five years after the Grant Date.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

             (c)
Disqualifying Dispositions. If Shares acquired by exercise of an ISO are
disposed of within two years after the Grant Date or within one year after the
transfer of the Shares to the optionee, the holder of the Shares immediately
before the disposition shall promptly notify the Company in writing of the date
and terms of the disposition, shall provide such other information regarding the
disposition as the Company may reasonably require and shall pay the Company any
withholding and employment taxes which the Company in its sole discretion deems
applicable to the disposition.

    

             (d)
Termination of Employment. Notwithstanding Section 6.1(i), all vested ISOs must
be exercised within three months of the Employment Termination of the optionee,
or at any time otherwise permissible in the case of a Participant who dies
within three months of Employment Termination, unless such Employment
Termination is due to the employee's being disabled (within the meaning of
Section 22(e)(3) of the Code), in which case the ISO shall be exercised within
one year of the Employment Termination, notwithstanding Section
6.1(i).

    

             6.4
Surrender of Options. The Committee, acting in its sole discretion, may include
a provision in an Award Agreement allowing the optionee to surrender the Option
covered by the agreement, in whole or in part in lieu of exercise in whole or in
part, on any date that the Fair Market Value of the Shares subject to the Option
exceeds the exercise price and the Option is exercisable (to the extent being
surrendered). The surrender shall be affected by the delivery of the Award
Agreement, together with a signed statement which specifies the number of Shares
as to which the optionee is surrendering the Option, together with a request for
such type of payment. Upon such surrender, the optionee shall receive (subject
to any limitations imposed by Rule 16b-3), at the election of the Committee,
payment in cash or Shares, or a combination of the two, equal to(or equal in
Fair Market Value to) the excess of the Fair Market Value of the Shares covered
by the portion of the Option being surrendered on the date of surrender over the
exercise price for such Shares. The Committee, acting in its sole discretion,
shall determine the form of payment, taking into account such factors as it
deems appropriate. To the extent necessary to satisfy Applicable Laws, the
Committee may terminate an optionee's rights to receive payments in cash for
fractional Shares. Any Award Agreement providing for such surrender privilege
shall also incorporate such additional restrictions on the exercise or surrender
of Options as may be necessary to satisfy Applicable Law.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    7.
RESTRICTED SHARES

    

             Restricted
Shares shall be subject to the following terms and conditions:

    

             7.1
Grant. The Committee may grant one or more Awards of Restricted Shares to any
Participant other than Non-Employee Directors. Each Award of Restricted Shares
shall specify the number of Shares to be issued to the Participant, the date of
issuance and the restrictions imposed on the Shares including the conditions of
release or lapse of such restrictions. Unless the Committee provides otherwise,
the restrictions shall not lapse earlier than six months after the date of the
Award. Pending the lapse of restrictions, certificates evidencing Restricted
Shares (if any) shall bear a legend referring to here restrictions and shall be
held by the Company. Prior to the issuance of any Restricted Shares, the
Participant receiving such Restricted Shares shall pay to the Company an amount
of cash equal to the exercise price of the Restricted Shares, which at a minimum
shall be the par value per Restricted Share multiplied by the number of
Restricted Shares to be issued. The exercise price of Restricted Shares shall be
stated in the applicable Award Agreement. Upon the issuance of Restricted
Shares, the Participant may be required to furnish such additional documentation
or other assurances as the Committee may require to enforce restrictions
applicable thereto.

    

             7.2
Restrictions. Except as specifically provided elsewhere in this Plan or the
Award Agreement regarding Restricted Shares, Restricted Shares may not be sold,
assigned, transferred, pledged or otherwise disposed of or encumbered, either
voluntarily or involuntarily, until the restrictions have lapsed and the rights
to the Shares have vested. The Committee may in its sole discretion provide for
the lapse of such restrictions in installments and may accelerate or waive such
restrictions, in whole or in part, based on service, performance or such other
factors or criteria as the Committee may determine.

    

             7.3
Dividends. Unless otherwise determined by the Committee, cash dividends with
respect to Restricted Shares shall be paid to the recipient of the Award of
Restricted Shares on the normal dividend payment dates, and dividends payable in
Shares shall be paid in the form of Restricted Shares having the same terms as
the Restricted Shares upon which such dividend is paid. Each Award Agreement for
Awards of Restricted Shares shall specify whether and, if so, the extent to
which the Participant shall be obligated to return to the Company any cash
dividends paid with respect to any Restricted Shares which are subsequently
forfeited.

    

             7.4
Forfeiture of Restricted Shares. Except to the extent otherwise provided in the
governing Award Agreement, when a Participant's Employment Termination occurs,
the Participant shall automatically forfeit all Restricted Shares still subject
to restriction.

    

             7.5
Automatic Grants to Non-Employee Directors. Each individual who is elected or
re-elected to the Board (whether through stockholder meeting or by Directors to
fill a vacancy on the Board) shall be granted ____ Restricted  Shares
(the "Director Restricted Shares") on the date of such election or re-election.
The Director Restricted Shares shall fully vest if the Non-Employee Director
completes the term or partial term for which he or she was elected.

    

    Except as
provided otherwise in this Plan, such Director Restricted Shares shall be
subject to the same terms and conditions as are applicable to Restricted
Shares.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    8. SHARE
APPRECIATION RIGHTS

    

    The
Committee may grant Share Appreciation Rights to eligible persons other than
Non-Employee Directors. A Share Appreciation Right shall entitle its holder to
receive from the Company, at the time of exercise of the right, an amount in
cash equal to (or, at the Committee's discretion, Shares equal in Fair Market
Value to) the excess of the Fair Market Value (at the date of exercise) of a
Share over a specified price fixed by the Committee in the governing Award
Agreement multiplied by the number of Shares as to which the holder is
exercising the Share Appreciation Right. The specified price fixed by the
Committee shall not be less than the Fair Market Value of the Shares on the
Grant Date of the Share Appreciation Right. Share Appreciation Rights may be
granted in tandem with any previously or contemporaneously granted Option or
independent of any Option. The specified price of a tandem Share Appreciation
Right shall be the exercise price of the related Option. Any Share Appreciation
Rights granted in connection with an ISO shall contain such terms as may be
required to comply with Section 422 of the Code.

    

    9.
DIVIDEND EQUIVALENT RIGHTS

    

             9.1
General. The Committee shall have the authority to grant Dividend Equivalent
Rights to Participants other than Non-Employee Directors upon such terms and
conditions as it shall establish, subject in all events to the following
limitations and provisions of general application set forth in this Plan. Each
Dividend Equivalent Right shall entitle a holder to receive, for a period of
time to be determined by the Committee, a payment equal to the quarterly
dividend declared and paid by the Company on one Common Share. If the Dividend
Equivalent Right relates to a specific Option, the period shall not extend
beyond the earliest of the date the Option is exercised, the date any Share
Appreciation Right related to the Option is exercised, or the expiration date
set forth in the Option.

    

             9.2
Rights and Options. Each Dividend Equivalent Right may relate to a specific
Option granted under this Plan and may be granted to the optionee either
concurrently with the grant of such Option or at such later time as determined
by the Committee, or each Dividend Equivalent Right may be granted independent
of any Option.

    

             9.3
Payments. The Committee shall determine at the time of grant whether payment
pursuant to a Dividend Equivalent Right shall be immediate or deferred and if
immediate, the Company shall make payments pursuant to each Dividend Equivalent
Right concurrently with the payment of the quarterly dividend to holders of
Common Shares. If deferred, the payments shall not be made until a date or the
occurrence of an event specified by the Committee and then shall be made within
30 days after the occurrence of the specified date or event, unless the Dividend
Equivalent Right is forfeited under the terms of the Plan or applicable Award
Agreement. The Committee shall also determine in its sole discretion whether any
portion of any payment shall be made in Common Shares.

    

             9.4
Termination of Employment. In the event of Employment Termination, any Dividend
Equivalent Right held by such Participant on the date of Employment Termination
shall automatically be forfeited, unless otherwise expressly provided by the
Committee.

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    10.
SECURITIES LAWS

    

    Nothing
in this Plan or in any Award or Award Agreement shall require the Company to
issue any Shares with respect to any Award if, in the opinion of counsel for the
Company, that issuance could constitute a violation of any Applicable Laws. As a
condition to the grant or exercise of any Award, the Company may require the
Participant (or, in the event of the Participant's death, the Participant's
legal representatives, heirs, legatees or distributees) to provide written
representations concerning the Participant's (or such other person's) intentions
with regard to the retention or disposition of the Shares covered by the Award
and written covenants as to the manner of disposal of such Shares as may be
necessary or useful to ensure that the grant, exercise or disposition thereof
will not violate the Securities Act, any other law or any rule of any applicable
securities exchange or securities association then in effect. The Company shall
not be required to register any Shares under the Securities Act or register or
qualify any Shares under any state or other securities laws.

    

    11.
EMPLOYMENT OF OTHER RELATIONSHIP

    

    Nothing
in this Plan or any Award shall in any way interfere with or limit the right of
the Company, the Advisor or any Affiliate of the Company to terminate any
Participant's employment or status as a consultant or Director at any time, nor
confer upon any Participant any right to continue in the employ of, or as a
Director or consultant of, the Company, the Advisor or any Affiliate of the
Company.

    

    12.
AMENDMENT, SUSPENSION AND TERMINATION OF THIS PLAN

    

    The Board
may at any time amend, suspend or discontinue this Plan provided that such
amendment, suspension or discontinuance meets the requirements of Applicable
Laws, including without limitation, the requirements for stockholder approval.
Notwithstanding the above, an amendment, alteration, suspension or
discontinuation shall not be made if it would impair the rights of any
Participant under any Award previously granted, without the Participant's
consent, except to conform this Plan and Awards granted to the requirements of
Applicable Laws. The provisions of the Plan relating to Awards for Non-Employee
Directors may not be amended more than once each six months.

    

    13.
LIABILITY AND INDEMNIFICATION OF THE COMMITTEE

    

    No person
constituting, or member of the group constituting, the Committee shall be liable
for any act or omission on such person's part, including but not limited to the
exercise of any power or discretion given to such member under this Plan, except
for those acts or omissions resulting from such member's gross negligence or
willful misconduct. The Company shall indemnify each present and future person
constituting, or member of the group constituting, the Committee against, and
each person or member of the group constituting the Committee shall be entitled
without further act on his or her part to indemnity from the Company for, all
expenses (including the amount of judgments and the amount of approved
settlements made with a view to the curtailment of costs of litigation)
reasonably incurred by such person in connection with or arising out of any
action, suit or proceeding to the fullest extent permitted by law and by the
Articles of Incorporation and Bylaws of the Company.

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    14.
SECURITIES LAW LEGENDS

    

    Certificates
of Shares and Restricted Shares, if issued, may have the following legend and
statements of other applicable restrictions endorsed thereon:

    

    THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE LAWS. THE SHARES MAY NOT BE
OFFERED FOR SALE, SOLD, PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF UNTIL THE
HOLDER HEREOF PROVIDES EVIDENCE SATISFACTORY TO THE ISSUER (WHICH, IN THE SOLE
DISCRETION THE ISSUER, MAY INCLUDE AN OPINION OF COUNSEL SATISFACTORY TO THE
ISSUER) THAT SUCH OFFER, SALE, PLEDGE, TRANSFER OR OTHER DISPOSITION WILL NOT
VIOLATE ANY APPLICABLE FEDERAL OR STATE SECURITIES LAWS.

    

    This
legend shall not be required for any Shares issued pursuant to an effective
registration statement under the Securities Act.

    

    15.
SEVERABILITY

    

    If any
provision of this Plan is held to be illegal or invalid for any reason, that
illegality or invalidity shall not affect the remaining portions of the Plan,
but such provision shall be fully severable and the Plan shall be construed and
enforced as if the illegal or invalid provision had never been included in this
Plan. Such an illegal or invalid provision shall be replaced by a revised
provision that most nearly comports to the substance of the illegal or invalid
provision. If any of the terms or provisions of this Plan or any Award Agreement
conflict with the requirements of Applicable Laws, those conflicting terms or
provisions shall be deemed inoperative to the extent they conflict with
Applicable Law.

    

    16.
EFFECTIVE DATE AND PROCEDURAL HISTORY

    

    This Plan
was originally approved by the Company's Board
on           , 2009. It
was approved in that form by the holders of the Company's voting Shares
on          , 2009 (the
"Effective Date").

    
      
         

      

      
        16Signature
Exploration & Production Corp.

     

    5401 S.
Kirkman Road Suite 310

    Orlando,
Florida 32819

    

    February
3, 2009

     

    Joel
Silver

    Marc
Casteel

    P.O. Box
61081

    Las
Vegas, Nevada 89160

    

    Re:
Letter of Intent to establish a business relationship with Phoenix
Energy

    

    Gentlemen:

     

    I enjoyed
the opportunity to meet with you and discuss your company’s future plans and the
possibility that a business relationship could be established between Phoenix
Energy and Signature Exploration & Production Corp. You have some very
interesting opportunities that are very attractive.  I believe that we
have a unique opportunity to do something that would generate superior returns.
Signature Exploration & Production would like to take the next step and
commence due diligence to see if we can negotiate a deal mutually acceptable to
both of us that would permit us all to come together.

     

    To that
end, I have prepared this preliminary, letter of intent (this “Letter of Intent”) to
record the mutual understanding and intent of Signature Exploration &
Production Corp.(“SXLP”) and Phoenix
Energy (“PE”),
concerning the proposed business relationship.

     

    1.           Overview of
Relationship.  The parties anticipate that SXLP will invest up
to $30,000 USD. These funds will be first utilized for the 3-D seismic studies
on the property identified as the Nettie Rhodes Lease in the M. Casteel Oil
& Gas Exploration Project 2006-A and any remaining funds are to be used for
expenses related to the Nettie Rhodes Lease in the M. Casteel Oil & Gas
Exploration Project 2006-A. SXLP will receive a 30% ownership interest in the
Nettie Rhodes Lease as consideration for this investment. Mark Casteel and Joel
Silver will maintain a 30% ownership interest in the Nettie Rhodes Lease for the
expenditures and efforts to date. It is expected that an additional investment
of approximately $1.5 million USD will be required to drill and complete the
single well utilizing horizontal drilling technologies on the Nettie Rhodes
Lease. The $1.5 million additional investment will represent the balance of the
ownership in the Nettie Rhodes Lease. An AFE will be produced by Phoenix Energy
for the initial well to be drilled on the Nettie Rhodes Lease. Once accepted,
the drilling operations for the initial well will begin as soon as practical
upon funding for the initial well. If the first well is not completed or deemed
not commercially viable, there will be no commitment to drill additional wells
on the Nettie Rhodes lease. All subsequent drills will be reviewed and
determinations made in concert with management of Phoenix and SXLP on the
subsequent wells to be drilled. The parties recognize that the structure of the
relationship is subject to continuing review and analysis and that it may be
necessary or appropriate to amend the structure of the relationship as a result
of tax, accounting or other considerations, as may be mutually agreed by the
Parties.  The parties also recognize that an alternative transaction
structure may necessitate changes in ownership and other terms of the
relationship.  The term “Agreement” and related defined terms shall be
deemed modified herein as appropriate to reflect such mutually agreed upon
alternative structure.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    2.           Additional Leases and
Prospects.  Phoenix Energy will immediately commence activities
to pursue the additional leases identified as the Donnell Lease, The Moreland
Lease and the Rhodes Lease. SXLP will act as co-operators with Phoenix Energy on
all prospects held or acquired by Phoenix Energy as long as SXLP is an investor
in said lease. The business structure between Phoenix Energy and SXLP will be
structured according to the same structure as the Nettie Rhodes Lease on all
additional leases. The basic structure indicating that Phoenix and SXLP will
have identical rights and ownership on a ground floor, non-promoted
basis.

     

    3.           Due
Diligence.  From time to time upon the reasonable request of
either Party, the Party shall, and shall cause each of its officers, employees,
agents, accountants and counsel to (a) afford the officers, employees, agents,
accountants, counsel, other representatives and prospective financing sources of
the other Party full access to the offices, properties, plants, other
facilities, books and records, officers, directors, employees, agents,
accountants and counsel of the Party and (b) furnish to the officers, employees,
agents, accountants, counsel and prospective financing sources of the Parties
such additional financial and operating data and other information regarding the
business, operations, assets, liabilities and financial condition of the
Party.

     

    4.           Exclusivity.  From
the date of this Letter of Intent through the earlier of (i) the execution of
the Agreement and (ii) the termination of this Letter of Intent, Phoenix Energy
nor any of its affiliates nor any of its or their respective officers,
employees, directors, agents or other representatives will (a) solicit,
initiate, encourage or accept any other inquiries, proposals or offers from any
Person (as defined below) (x) relating to any acquisition or purchase of all or
any portion of the Nettie Rhodes Lease, the Donnell Lease, the Moreland Lease,
and the Rhodes Lease (y) to enter into any merger, recapitalization,
reorganization, joint venture or other business combination with
the  or any of its subsidiaries or (z) to enter into any other
extraordinary business transaction involving or otherwise relating to Phoenix
Energy or any of its subsidiaries (any of the transactions described in clauses
(x), (y) and (z) being referred to herein as a “Business
Combination”) or (b) participate in any discussions, conversations,
negotiations or other communications with any other Person regarding, or furnish
to any other Person any information with respect to, or otherwise cooperate in
any way, assist or participate in, facilitate or encourage any effort or attempt
by any other Person to seek to do any of the foregoing.  Phoenix
Energy immediately shall cease and cause to be terminated all existing
discussions, conversations, negotiations and other communications with any
Persons conducted heretofore with respect to any of the foregoing.

     

    As used
in this Letter of Intent, “Person” means any
individual, partnership, firm, corporation, limited liability company,
association, trust, unincorporated organization or other entity, as well as any
syndicate or group that would be deemed to be a person under Section 13(d)(3) of
the Securities Exchange Act of 1934, as amended.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    5.           Disclosure.  No
party to this Letter of Intent shall make, or cause to be made, any press
release or public announcement in respect of this Letter of Intent or the
transactions contemplated hereby or otherwise communicate with news media
without the prior consent of the other party, except as may be otherwise
required by applicable law or regulation, by any authorized administrative or
governmental agency or pursuant to applicable requirements of any listing
agreement with or the rules of any applicable securities
exchange.  The parties shall cooperate as to the timing and contents
of any such press releases or public announcements.

     

    6.           Reimbursement of
Expenses.  The parties agree that each shall bear their own
expenses associated with this Letter of Intent and the establishment of the
relationship.

     

    7.           Termination.  This
Letter of Intent may be terminated:

     

    (i)           by
mutual consent of the Parties; or

     

    (ii)          by
the Parties if the Agreement is not executed and delivered on or prior to April
30, 2009.

     

    8.           Intentions of the
Parties.  This Letter of Intent constitutes only a preliminary,
non-binding statement of the intentions of the parties, does not contain all
matters upon which agreement must be reached for the relationship to be
consummated and, except as specified in the last sentence of this paragraph,
creates no legal obligations on the part of any party hereto.  A
binding commitment with respect to the relationship will result only from the
execution of the Agreement.  It is understood that (a) this Letter of
Intent does not constitute an obligation or commitment of any party to enter
into the Agreement, (b) any obligations or commitments to proceed with the
relationship shall be contained only in the Agreement and (c) the execution,
delivery and performance of the Agreement will require the approval of the
boards of directors of each Party.  Notwithstanding the foregoing, the
provisions of paragraphs 2 through 8 hereof will be fully binding upon the
execution hereof.

     

    9.           Tax Treatment and Tax
Structure.  Notwithstanding anything herein to the contrary,
each party (and its representatives, agents and employees) may consult any tax
advisor regarding the tax treatment and tax structure of the transactions
contemplated hereby and , from and after the date of execution of an agreement
to enter into the transactions (or, if earlier, the date of public announcement
of such an agreement, or public announcement of discussions between the parties
relating to the transactions), may disclose to any person, without limitation of
any kind, the tax treatment and tax structure of the transactions and all
materials (including opinions or other tax analyses) that are provided relating
to such treatment or structure.

     

    8.           Assignment.  This
Letter of Intent may not be assigned by operation of law or otherwise without
the express written consent of the Parties (which consent may be granted or
withheld in the sole discretion of either Party);

     

    9.           No Third Party
Beneficiaries.  This Letter of Intent shall be binding upon and
inure solely to the benefit of the parties hereto and their permitted assigns
and nothing herein, express or implied, is intended to or shall confer upon any
other Person any legal or equitable right, benefit or remedy of any nature
whatsoever under or by reason of this Letter of Intent.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    10.           Entire
Agreement.  This Letter of Intent constitutes the entire
agreement of the Parties hereto with respect to the subject matter hereof and
supersedes all other prior agreements and undertakings, both written and oral,
between the Parties with respect to the subject matter hereof.

     

    11.           Amendment.  This
Letter of Intent may not be amended or modified except (a) by an instrument in
writing signed by, or on behalf of, the Parties or (b) by a waiver pursuant to
Section 15 below.

     

    12.           Waiver.  Either
party to this Letter of Intent may (a) extend the time for the performance of
any obligations or other acts of the other party, (b) waive any inaccuracies in
the representations and warranties of the other party contained herein or in any
document delivered by the other party pursuant hereto or (c) waive compliance
with any of the agreements of the other party or conditions to such party’s
obligations contained herein.  Any such extension or waiver shall be
valid only if set forth in an instrument in writing signed by the party to be
bound thereby.  Any waiver of any term or condition shall not be
construed as a waiver of any subsequent breach or a subsequent waiver of the
same term or condition, or a waiver of any other term or condition of this
Letter of Intent.  The failure of any party to assert any of its
rights hereunder shall not constitute a waiver of any such rights.

     

    13.           Severability.  If
any term or other provision of this Letter of Intent is invalid, illegal or
incapable of being enforced by any law or public policy, all other terms and
provisions of this Letter of Intent shall nevertheless remain in full force and
effect so long as the economic or legal substance of the transactions
contemplated by this Letter of Intent is not affected in any manner materially
adverse to any party.  Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties hereto
shall negotiate in good faith to modify this Letter of Intent so as to effect
the original intent of the parties as closely as possible in an acceptable
manner in order that the transactions contemplated by this Letter of Intent are
consummated as originally contemplated to the greatest extent
possible.

     

    14.           Counterparts.  This
Letter of Intent may be executed and delivered (including by facsimile
transmission) in one or more counterparts, and by the different parties hereto
in separate counterparts, each of which when executed shall be deemed to be an
original, but all of which taken together shall constitute one and the same
agreement.

     

    15.           Governing
Law.  This Letter of Intent shall be governed by, and construed
in accordance with, the laws of the State of Florida applicable to contracts
executed in and to be performed in that State.  Each of the parties
hereto hereby irrevocably and unconditionally consents to submit to the
exclusive jurisdiction of the courts of the State of Florida and of the United
States, in each case located in the County of Orange, for any litigation arising
out of or relating to this Letter of Intent (and agrees not to commence any
litigation relating thereto except in such courts), and further agrees that
service of any process, summons, notice or document by U.S. registered mail to
its respective address set forth in this Letter of Intent shall be effective
service of process for any litigation brought against it in any such
court.  Each of the parties hereto hereby irrevocably and
unconditionally waives any objection to the laying of venue of any litigation
arising out of this Letter of Intent in the courts of the State of Florida or
the United States, in each case located in the County of Seminole, and hereby
further irrevocably and unconditionally waives and agrees not to plead or claim
in any such court that any such litigation brought in any such court has been
brought in an inconvenient forum.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    16.           Waiver of Jury
Trial.  Each of the parties hereto hereby waives to the fullest
extent permitted by applicable law any right it may have to a trial by jury with
respect to any litigation directly or indirectly arising out of, under or in
connection with this Agreement or the transactions contemplated by this
Agreement.  Each of the parties hereto (a) certifies that no
representative, agent or attorney of any other party has represented, expressly
or otherwise, that such other party would not, in the event of litigation, seek
to enforce that foregoing waiver and (b) acknowledges that it and the other
party hereto have been induced to enter into this Agreement and the transactions
contemplated by this Agreement, as applicable, by, among other things, the
mutual waivers and certifications in this Section 19.

     

    If you
agree to work with us toward a definitive Agreement in accordance with the terms
set forth in this Letter of Intent, please indicate your acceptance by signing
in the space provided below.  We look forward to working with you
toward the completion of a mutually beneficial transaction.

     

    
      
        
          
            
              
                	 
      	
                        Very
      truly yours,

                      
	 	 
	 
      	
                        Signature
      Exploration & Production Corp.

                      
	 
      	 
      
	 
      	
                        By

                      	
                        /s/ Steven Weldon

                      
	 	 	      
                         Name:  Steven
      Weldon,
CFO

                      

              

            

          

        

      

    

     

    
      
        
          
            
              
                
                  	
                          Agreed
      and accepted as of

                        
	
                          the
      date first written above:

                        
	 
	
                          Phoenix
      Energy

                        
	 
      
	
                          By

                        	      
                          /s/ Mark Casteel

                        	
                           

                        
	 
      	
                           Name:
      Mark Casteel

                        
	 
      	 
      
	
                          By

                        	
                          /s/ Joel Silver

                        	 
      
	 
      	
                           Name:
      Joel
Silver

                        

                

              

            

          

        

      

    

     

    
      
         

      

      
        5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]