Document:

Exhibit 4.15

PHILLIPS-VAN HEUSEN CORPORATION

2003 STOCK OPTION PLAN

(As Amended through June 10, 2003)

1.Purpose.  The purposes of the 2003 Stock Option Plan (the "Plan") are to induce certain individuals to remain in the employ, or
to continue to serve as directors of, or consultants or advisors to, Phillips-Van Heusen Corporation (the "Company") and its present and future
subsidiary corporations (each a "Subsidiary"), as defined in Section 424(f) of the Internal Revenue Code of 1986, as amended (the "Code"), to
attract new individuals to enter into such employment or service and to encourage such individuals to secure or increase on reasonable terms
their stock ownership in the Company.  The Board of Directors of the Company (the "Board") believes that the granting of stock options (the
"Options") under the Plan will promote continuity of management and increased incentive and personal interest in the welfare of the Company by
those who are or may become primarily responsible for shaping and carrying out the long range plans of the Company and securing its continued
growth and financial success.  Options granted hereunder are intended to be either (i) "incentive stock options" (which term, when used herein,
shall have the meaning ascribed thereto by the provisions of Section 422(b) of the Code) or (ii) options which are not incentive stock options
("non-qualified stock options") or (iii) a combination thereof, as determined by the Committee (the "Committee") referred to in Section 5 at
the time of the grant thereof.

2.Effective Date of the Plan.  The Plan became effective on May 1, 2003.

3.Stock Subject to Plan.  5,400,000 of the authorized but unissued shares of the common stock, $1.00 par value, of the Company
(the "Common Stock") are hereby reserved for issue upon the exercise of Options granted under the Plan; provided, however, that
the number of shares so reserved may from time to time be reduced to the extent that a corresponding number of issued and outstanding shares of
the Common Stock are purchased by the Company and set aside for issue upon the exercise of Options.  If any Options expire or terminate for any
reason without having been exercised in full, the unpurchased shares subject thereto shall again be available for the purposes of the Plan.

4.Administration.

(a)Except as otherwise provided in Section 4(b), the Plan shall be administered by the Committee.  Subject to the express provisions of
the Plan, the Committee shall have complete authority, in its discretion, to interpret the Plan, to prescribe, amend and rescind rules and
regulations relating to it, to determine the terms and provisions of the respective option agreements or certificates (which need not be
identical), to determine the individuals (each a "Participant") to whom and the times and the prices at which Options shall be granted, the
periods during which each Option shall be exercisable, the number of shares of the Common Stock to be subject to each Option and whether such
Option shall be an incentive stock option or a non-qualified stock option and to make all other determinations necessary or advisable for the
administration of the Plan.  In making such determinations, the Committee may take into account the nature of the services rendered by the
respective individuals, their present and potential contributions to the success of the Company and the Subsidiaries and such other factors as
the Committee in its discretion shall deem relevant.  The Committee's determination on the matters referred to in this Section 4 shall be
conclusive.  Any dispute or disagreement which may arise under or as a result of or with respect to any Option shall be determined by the
Committee, in its sole discretion, and any interpretations by the Committee of the terms of any Option shall be final, binding and
conclusive.

(b)The Chairman of the Board or, if the Chairman is not an executive officer of the Company, the Chief Executive Officer of the Company
or other executive officer of the Company designated by the Committee who is also a director (the Chairman, Chief Executive Officer or other
designated executive officer being referred to as the "Designated Director") may administer the Plan with respect to employees of the Company
or a Subsidiary (i) who are not officers of the Company subject to the provisions of Section 16 of the Securities Exchange Act of 1934, as
amended (the "Exchange Act") and (ii) whose compensation is not, and in the judgment of the Designated Director may not be reasonably
expected to become, subject to the provisions of Section 162(m) of the Code.  The authority of the Designated Director and Options granted by
the Designated Director shall be subject to such terms, conditions, restrictions and limitations as may be imposed by the Board, including, but
not limited to, a limit on the aggregate number of shares of Common Stock subject to Options that may be granted in any one calendar year by
the Designated Director to all such employees of the Company and its Subsidiaries and a maximum number of shares that may be subject to Options
granted under the Plan in any one calendar year to any single employee by the Designated Director.  Unless and until the Board shall take
further action, the maximum number of shares of Common Stock that may be subject to Options granted under the Plan, the Company's 1997 Stock
Option Plan, 2000 Stock Option Plan and any other stock option plan then in effect in any one calendar year by the Designated Director shall be
100,000 in the aggregate and the maximum number of shares of Common Stock that may be subject to Options granted under the Plan, the Company's
1997 Stock Option Plan, 2000 Stock Option Plan and any other stock option plan then in effect in any one calendar year by the Designated
Director to any single employee shall be 5,000 in the aggregate.  Any actions duly taken by the Designated Director with respect to the grant
of Options to such employees shall be deemed to have been taken by the Committee for purposes of the Plan.

5.Committee.  The Committee shall consist of two or more members of the Board.  It is intended that all of the members of the
Committee shall be "non-employee directors" within the meaning of Rule 16b-3(b)(3) promulgated under the Exchange Act, and "outside directors"
within the contemplation of Section 162(m)(4)(C)(i) of the Code.  The Committee shall be appointed annually by the Board, which may at any time
and from time to time remove any members of the Committee, with or without cause, appoint additional members to the Committee and fill
vacancies, however caused, in the Committee.  A majority of the members of the Committee shall constitute a quorum.  All determinations of the
Committee shall be made by a majority of its members present at a meeting duly called and held, except that the Committee may delegate to any
one of its members the authority of the Committee with respect to the grant of Options to any person who shall not be an officer and/or
director of the Company and who is not, and in the judgment of the Committee may not be reasonably expected to become, a "covered employee"
within the meaning of Section 162(m)(3) of the Code.  Any decision or determination of the Committee reduced to writing and signed by all of
the members of the Committee (or by the member(s) of the Committee to whom authority has been delegated) shall be fully as effective as if it
had been made at a meeting duly called and held.

6.Eligibility.  An Option may be granted only to a key employee of the Company or a Subsidiary or to a director of the Company or
a Subsidiary who is not an employee of the Company or a Subsidiary or to an independent consultant or advisor who renders services to the
Company or a Subsidiary.

7.Option Prices.

(a)The initial per share option price of any Option shall be the price determined by the Committee, but not less than the fair market
value of a share of the Common Stock on the date of grant; provided, however, that, in the case of a Participant who owns more
than 10% of the total combined voting power of the Common Stock at the time an Option which is an incentive stock option is granted to him or
her, the initial per share option price shall not be less than 110% of the fair market value of a share of the Common Stock on the date of
grant.

(b)For all purposes of the Plan, the fair market value of a share of the Common Stock on any date shall be equal to (i) the closing sale
price of the Common Stock on the New York Stock Exchange on the business day preceding such date or (ii) if there is no sale of the Common
Stock on such Exchange on such business day, the average of the bid and asked prices on such Exchange at the close of the market on such
business day.

8.Option Term.  Participants shall be granted Options for such term as the Committee shall determine, not in excess of 10 years
from the date of the granting thereof; provided, however, that, in the case of a Participant who owns more than 10% of the total
combined voting power of the Common Stock at the time an Option which is an incentive stock option is granted to him or her, the term with
respect to such Option shall not be in excess of five years from the date of the granting thereof.
9.Limitations on Amount of Options Granted.

(a)The aggregate fair market value of the shares of the Common Stock for which any Participant may be granted incentive stock options
which are exercisable for the first time in any calendar year (whether under the terms of the Plan or any other stock option plan of the
Company) shall not exceed $100,000.

(b)No Participant shall, during any fiscal year of the Company, be granted Options under the Plan to purchase more than 1,200,000 shares
of the Common Stock.
10.Exercise of Options.

(a)Except as otherwise determined by the Committee at the time of grant, a Participant may not exercise an Option during the period
commencing on the date of the grant of such Option to him or her and ending on the day immediately preceding the first anniversary of such
date.  Except as otherwise determined by the Committee at the time of grant, a Participant may (i) during the period commencing on the first
anniversary of the date of the grant of an Option to him or her and ending on the day immediately preceding the second anniversary of such
date, exercise such Option with respect to one-quarter of the shares granted thereby, (ii) during the period commencing on the second
anniversary of the date of such grant and ending on the day immediately preceding the third anniversary of the date of such grant, exercise
such Option with respect to one-half of the shares granted thereby, (iii) during the period commencing on the third anniversary of the date of
such grant and ending on the day immediately preceding the fourth anniversary of such date, exercise such Option with respect to three-quarters
of the shares granted thereby and (iv) during the period commencing on the fourth anniversary of the date of such grant and ending at the time
the Option expires pursuant to the terms hereof, exercise such Option with respect to all of the shares granted thereby.

(b)Except as hereinbefore otherwise set forth, an Option may be exercised either in whole at any time or in part from time to time.

(c)An Option may be exercised only by a written notice of intent to exercise such Option with respect to a specific number of shares of
the Common Stock and payment to the Company of the amount of the option price for the number of shares of the Common Stock so specified;
provided, however, that, if the Committee shall in its sole discretion so determine at the time of the grant of any Option, all
or any portion of such payment may be made in kind by the delivery of shares of the Common Stock having a fair market value equal to the
portion of the option price so paid; provided further, however, that no portion of such payment may be made by delivering
shares of the Common Stock acquired upon the exercise of an Option if such shares shall not have been held by the Participant for at least six
months; and provided further, however, that, subject to the requirements of Regulation T (as in effect from time to time)
promulgated under the Exchange Act, the Committee may implement procedures to allow a broker chosen by a Participant to make payment of all or
any portion of the option price payable upon the exercise of an Option and receive, on behalf of such Participant, all or any portion of the
shares of the Common Stock issuable upon such exercise.

(d)The Committee may, in its discretion, permit any Option to be exercised, in whole or in part, prior to the time when it would
otherwise be exercisable.

(e)(1)Notwithstanding the provisions of Section 10(a) or the last sentence of Section 13, in the event that a Change in Control
shall occur, then, each Option theretofore granted to any Participant which shall not have theretofore expired or otherwise been cancelled or
become unexercisable shall become immediately exercisable in full.  For the purposes of this Section 10(e), a "Change in Control" shall be
deemed to occur upon (i) the election of one or more individuals to the Board which election results in one-third of the directors of the
Company consisting of individuals who have not been directors of the Company for at least two years, unless such individuals have been elected
as directors or nominated for election by the stockholders as directors by at least three-fourths of the directors of the Company who have been
directors of the Company for at least two years, (ii) the sale by the Company of all or substantially all of its assets to any Person, the
consolidation of the Company with any Person, the merger of the Company with any Person as a result of which merger the Company is not the
surviving entity as a publicly held corporation, (iii) the sale or transfer of shares of the Company by the Company and/or any one or more of
its stockholders, in one or more transactions, related or unrelated, to one or more Persons under circumstances whereby any Person and its
Affiliates shall own, after such sales and transfers, at least one-fourth, but less than one-half, of the shares of the Company having voting
power for the election of directors, unless such sale or transfer has been approved in advance by at least three-fourths of the directors of
the Company who have been directors of the Company for at least two years, (iv) the sale or transfer of shares of the Company by the Company
and/or any one or more of its stockholders, in one or more transactions, related or unrelated, to one or more Persons under circumstances
whereby any Person and its Affiliates shall own, after such sales and transfers, at least one-half of the shares of the Company having voting
power for the election of directors or (v) as defined in the Participant's employment agreement, if any, with the Company or a Subsidiary.  For
the purposes of this paragraph (1), (i) the term "Affiliate" shall mean any Person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, any other Person, (ii) the term "Person" shall mean any
individual, partnership, firm, trust, corporation or other similar entity and (iii) when two or more Persons act as a partnership, limited
partnership, syndicate or other group for the purpose of acquiring, holding or disposing of securities of the Company, such partnership,
limited partnership, syndicate or group shall be deemed a "Person."

(2)In the event that a Change of Control shall occur, then, from and after the time of such event, neither the provisions of this
Section 10(e) nor any of the rights of any Participant hereunder shall be modified or amended in any way.

11.Transferability.  (a)  Except as otherwise provided in Section 11(b), no Option shall be assignable or transferable except by
will and/or by the laws of descent and distribution and, during the life of any Participant, each Option granted to such Participant may be
exercised only by him or her.

(b)  A Participant may, with the prior approval of the Committee, transfer for no consideration an Option which is a non-qualified stock
option to or for the benefit of the Participant's Immediate Family, a trust for the exclusive benefit of the Participant's Immediate Family or
to a partnership or limited liability company for one or more members of the Participant's Immediate Family, subject to such limits as the
Committee may establish, and the transferee shall remain subject to all the terms and conditions applicable to the Option prior to such
transfer.  The term "Immediate Family" shall mean the Participant's children, stepchildren, grandchildren, parents, stepparents, grandparents,
spouse, former spouse, siblings, nieces, nephews, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law,
including adoptive relationships or any person sharing the Participant's household (other than a tenant or employee).

12.Termination of Employment or Service.  Except as otherwise determined by the Committee, in the event a Participant leaves the
employ or service, or ceases to serve as a director, of the Company and the Subsidiaries, whether voluntarily or otherwise but other than by
reason of his or her death or, in the case of Participant who shall be an employee or director, retirement, each Option theretofore granted to
him or her which shall not have been exercisable prior to the date of the termination of his or her employment or service shall terminate
immediately.  Except as otherwise determined by the Committee, each other Option theretofore granted to him or her which shall not have
theretofore expired or otherwise been cancelled shall, to the extent exercisable on the date of such termination of employment or service and
not theretofore exercised, terminate upon the earlier to occur of (x) 90 days after the date of such Participant's termination of employment or
cessation of service and (y) the date of termination specified in such Option.  Notwithstanding the foregoing, if a Participant is
terminated for cause (as defined herein), each Option theretofore granted to him or her which shall not have theretofore expired or otherwise
been cancelled shall, to the extent not theretofore exercised, terminate forthwith.  Except as otherwise determined by the Committee, in the
event a Participant leaves the employ, or ceases to serve as a director, of the Company and the Subsidiaries by reason of his or her
retirement, each Option theretofore granted to him or her which shall not have theretofore expired or otherwise been cancelled shall become
immediately exercisable in full and shall, to the extent not theretofore exercised, terminate upon the earlier to occur of the expiration of
three years after the date of such retirement and the date of termination specified in such Option.  Except as otherwise determined by the
Committee, in the event a Participant's employment or service with the Company and the Subsidiaries terminates by reason of his or her death,
each Option theretofore granted to him or her which shall not have theretofore expired or otherwise been cancelled shall become immediately
exercisable in full and shall, to the extent not theretofore exercised, terminate upon the earlier to occur of the expiration of three months
after the date of the qualification of a representative of his or her estate and the date of termination specified in such Option.  For
purposes of the foregoing, (a) the term "cause" shall mean:  (i) the commission by the Participant of any act or omission that would
constitute a crime under federal, state or equivalent foreign law, (ii) the commission by the Participant of any act of moral turpitude, (iii)
fraud, dishonesty or other acts or omissions that result in a breach of any fiduciary or other material duty to the Company and/or the
Subsidiaries, (iv) continued substance abuse that renders the Participant incapable of performing his or her material duties to the
satisfaction of the Company and/or the Subsidiaries, or (v) as defined in the Participant's employment agreement, if any, with the Company or a
Subsidiary and (b) the term "retirement" shall mean (I) the termination of a Participant's employment with the Company and all of the
Subsidiaries (x) other than for cause or by reason of his or her death and (y) on or after the earlier to occur of (1) the first day
of the calendar month in which his or her 65th birthday shall occur and (2) the date on which he or she shall have both attained his or
her 55th birthday and completed 10 years of employment with the Company and/or the Subsidiaries or (II) the termination of a Participant's
service as a director with the Company and all of the Subsidiaries (x) other than for cause or by reason of his or her death and (y) on or
after the first day of the calendar month in which his or her 65th birthday shall occur.

13.Adjustment of Number of Shares.  In the event that a dividend shall be declared upon the Common Stock payable in shares of the
Common Stock, the number of shares of the Common Stock then subject to any Option and the number of shares of the Common Stock reserved for
issuance in accordance with the provisions of the Plan but not yet covered by an Option and the number of shares set forth in Section 9(b)
shall be adjusted by adding to each share the number of shares which would be distributable thereon if such shares had been outstanding on the
date fixed for determining the stockholders entitled to receive such stock dividend.  In the event that the outstanding shares of the Common
Stock shall be changed into or exchanged for a different number or kind of shares of stock or other securities of the Company or of another
corporation, whether through reorganization, recapitalization, stock split-up, combination of shares, sale of assets, merger or consolidation
in which the Company is the surviving corporation, then, there shall be substituted for each share of the Common Stock then subject to any
Option and for each share of the Common Stock reserved for issuance in accordance with the provisions of the Plan but not yet covered by an
Option and for each share of the Common Stock referred to in Section 9(b), the number and kind of shares of stock or other securities into
which each outstanding share of the Common Stock shall be so changed or for which each such share shall be exchanged.  In the event that there
shall be any change, other than as specified in this Section 13, in the number or kind of outstanding shares of the Common Stock, or of any
stock or other securities into which the Common Stock shall have been changed, or for which it shall have been exchanged, then, if the
Committee shall, in its sole discretion, determine that such change equitably requires an adjustment in the number or kind of shares then
subject to any Option and the number or kind of shares reserved for issuance in accordance with the provisions of the Plan but not yet covered
by an Option and the number or kind of shares referred to in Section 9(b), such adjustment shall be made by the Committee and shall be
effective and binding for all purposes of the Plan and of each stock option agreement or certificate entered into in accordance with the
provisions of the Plan.  In the case of any substitution or adjustment in accordance with the provisions of this Section 13, the option price
in each stock option agreement or certificate for each share covered thereby prior to such substitution or adjustment shall be the option price
for all shares of stock or other securities which shall have been substituted for such share or to which such share shall have been adjusted in
accordance with the provisions of this Section 13.  No adjustment or substitution provided for in this Section 13 shall require the Company to
sell a fractional share under any stock option agreement or certificate.  In the event of the dissolution or liquidation of the Company, or a
merger, reorganization or consolidation in which the Company is not the surviving corporation, then, except as otherwise provided in Section
10(e) and the second sentence of this Section 13, each Option, to the extent not theretofore exercised, shall terminate forthwith.

14.Purchase for Investment, Withholding and Waivers.  Unless the shares to be issued upon the exercise of an Option by a
Participant shall be registered prior to the issuance thereof under the Securities Act of 1933, as amended, such Participant will, as a
condition of the Company's obligation to issue such shares, be required to give a representation in writing that he or she is acquiring such
shares for his or her own account as an investment and not with a view to, or for sale in connection with, the distribution of any thereof.  In
the event of the death of a Participant, a condition of exercising any Option shall be the delivery to the Company of such tax waivers and
other documents as the Committee shall determine.  In the case of each non-qualified stock option, a condition of exercising the same shall be
the entry by the person exercising the same into such arrangements with the Company with respect to withholding as the Committee may determine.

15.No Stockholder Status.  Neither any Participant nor his or her legal representatives, legatees or distributees shall be or be
deemed to be the holder of any share of the Common Stock covered by an Option unless and until a certificate for such share has been issued.
Upon payment of the purchase price thereof, a share issued upon exercise of an Option shall be fully paid and non-assessable.

16.No Restrictions on Corporate Acts.  Neither the existence of the Plan nor any Option shall in any way affect the right or
power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in
the Company's capital structure or its business, or any merger or consolidation of the Company, or any issue of bonds, debentures, preferred or
prior preference stock ahead of or affecting the Common Stock or the rights thereof, or dissolution or liquidation of the Company, or any sale
or transfer of all or any part of its assets or business, or any other corporate act or proceeding whether of a similar character or
otherwise.

17.No Employment Right.  Neither the existence of the Plan nor the grant of any Option shall require the Company or any
Subsidiary to continue any Participant in the employ or service of the Company or such Subsidiary.

18.Termination and Amendment of the Plan.  The Board may at any time terminate the Plan or make such modifications of the Plan as
it shall deem advisable; provided, however, that the Board may not without further approval of the holders of a majority of the
shares of the Common Stock present in person or by proxy at any special or annual meeting of the stockholders, increase the number of shares as
to which Options may be granted under the Plan (as adjusted in accordance with the provisions of Section 13), or change the class of persons
eligible to participate in the Plan, or change the manner of determining the option prices.  Except as otherwise provided in Section 13, no
termination or amendment of the Plan may, without the consent of the Participant to whom any Option shall theretofore have been granted,
adversely affect the rights of such Participant under such Option.  The Committee may not, without further approval of the holders of a
majority of the shares of the Common Stock present in person or by proxy at any special or annual meeting of the stockholders, amend any
outstanding Option to reduce the option price, or cancel any outstanding Option and contemporaneously award a new Option to the same optionee
for substantially the same number of shares at a lower option price.

19.Expiration and Termination of the Plan.  The Plan shall terminate on April 30, 2013 or at such earlier time as the Board may
determine.  Options may be granted under the Plan at any time and from time to time prior to its termination.  Any Option outstanding under the
Plan at the time of the termination of the Plan shall remain in effect until such Option shall have been exercised or shall have expired in
accordance with its terms.

20.Options for Outside Directors.

(a)A director of the Company who is not an employee of the Company or a Subsidiary and who is not a director elected solely by the
holders of the Company's Series B convertible preferred stock (an "Outside Director") shall be eligible to receive, in addition to any other
Option which he or she may receive pursuant to Section 6, an annual Option.  Except as otherwise provided in this Section 20, each such Option
shall be subject to all of the terms and conditions of the Plan.

(b)(i)At the first meeting of the Board immediately following each Annual Meeting of the Stockholders of the Company, each Outside
Director shall be granted an Option, which shall be a non-qualified stock option, to purchase 10,000 shares of the Common Stock.
Notwithstanding the foregoing, an Outside Director may not receive a grant under this Section 20 for any year if and to the extent such Outside
Director receives a grant of options to purchase Common Stock under any other Company stock option plan then in effect solely for his or her
services as a director of the Company for such year and the aggregate number of shares of Common Stock issuable upon the exercise of all such
options granted for such year would exceed 10,000.

(ii)The initial per share option price of each Option granted to an Outside Director shall under this Section 20 be equal to the
fair market value of a share of the Common Stock on the date of grant.

(iii)The term of each Option granted to an Outside Director shall be ten years from the date of the granting thereof.

(iv)All or any portion of the payment required upon the exercise of an Option granted to an Outside Director may be made in kind by
the delivery of shares of the Common Stock having a fair market value equal to the portion of the option price so paid; provided,
however, that no portion of such payment may be made by delivering shares of the Common Stock acquired upon the exercise of an Option if
such shares shall not have been held by such Outside Director for at least six months; and provided further, however,
that, subject to the requirements of Regulation T (as in effect from time to time) promulgated under the Exchange Act, the Committee may
implement procedures to allow a broker chosen by such Outside Director to make payment of all or any portion of the option price payable upon
the exercise of an Option and receive, on behalf of such Outside Director, all or any portion of the shares of the Common Stock issuable upon
such exercise.

(c)The provisions of this Section 20 may not be amended except by the vote of a majority of the members of the Board and by the vote of
a majority of the members of the Board who are not Outside Directors.AMENDED AS OF JUNE 16, 2003
                            BY THE BOARD OF DIRECTORS

                        2001 INCENTIVE STOCK OPTION PLAN
                                      FOR
                               U. S. ENERGY CORP.

                                    ARTICLE I

                                    PURPOSE

This  Incentive  Stock  Option Plan (hereafter the "Plan") of U. S. Energy Corp.
(the  "Company")  for executive and other key persons and employees, is intended
to  advance  the  Company  by  providing  an  incentive  to obtain a proprietary
interest  to  those  persons  who  have  management  and  key  employment
responsibilities,  and  to  others  who  serve  the  Company.

                                   ARTICLE II

                                  DEFINITIONS

For  Plan  purposes,  except  where the context clearly indicates otherwise, the
following  terms  shall  have  the  meanings  set  forth:

a.     "Board"  shall  mean  the  Company's  Board  of  Directors.

b.     "Code"  shall mean the Internal Revenue Code of 1986 as amended from time
to  time,  and  the  rules  and  regulations  promulgated  thereunder.

c.     "Committee"  shall  mean  the  Compensation  Committee,  or  such  other
committee  of  the  Board  designated by the Board to administer the Plan. Until
such  time  as  the  Board  may  designate  such  committee,  this Plan shall be
administered  by the Board. The Committee shall be composed of not less than two
persons  appointed  by  the  Board; Committee members also may be members of the
Board.  Options  also may be granted by the Board. No member of the Committee or
of  the  Board shall vote on issuance of an Incentive Stock Option to himself or
herself.

d.     "Common  Shares"  shall mean shares of the Company's Common Stock, or, in
the  event  that  the  outstanding  Common  Shares are hereafter changed into or
exchanged  for  different shares or securities of the Company, such other shares
or  securities.

e.     "Company"  shall  mean U. S. Energy Corp., a Wyoming Corporation, and any
parent or subsidiary of such corporation, as the terms "parent" and "subsidiary"
are  defined  in  Sections  425(e)  and  (f)  of  the  Code.

f.     "Fair  Market  Value"  shall mean, with respect to the date a given stock
option  is  granted or exercised, the average of the highest and lowest reported
sales  prices  of  the Common Shares as reported in any trading market where the
Company then is listed, or if there were no transactions in the Common Shares on
such  day,  then the last preceding day on which transactions took place. If the
Common  Shares  of  the  Company  are not traded in any public market, then fair
value  may be established by reference to sales of Common Shares by the Company,
or  to  sales  by  shareholders of outstanding Common Shares held by them, or to
sales  by  third  parties  of  outstanding Common Shares which had been owned by
shareholders  of  record  (for  example,  sales  by a trustee in bankruptcy or a
secured  creditor  or  by  order  of  court  in  domestic  relations  or probate
proceedings).  The  above  notwithstanding, the Committee may determine the Fair
Market  Value  in  such  other  manner  as  it  may deem more equitable for Plan
purposes  or  as  is  required  by applicable laws or regulations. The Committee
always  shall  take  into  account and duly consider developments in the Company
since  the  date of the sale or sales being used to determine Fair Market Value,
including  without  limitation  material  changes  in earnings per Common Share,
contracts  for  new  business,  and  other  factors.

g.     "Incentive  Stock  Option" or "ISO" or "Option" shall mean a stock option
issued  under  the Plan which is intended to meet the terms of Code Section 422A
for  qualified  options  (i.e.,  a  "Qualified  Incentive  Stock  Option").

h.     "Optionee"  shall  mean  the person to whom has been granted an Incentive
Stock  Option.

i.     "Stock Option Agreement" shall mean the agreement between the Company and
the  Optionee  under  which  the  Optionee  may  purchase  Common  Shares.

j.     "Ten  Percent Shareholder" shall mean an employee who owns ten percent or
more  of  the  Common  Shares  as  such  amount is calculated under Code Section
422A(b)(6).  Attribution  rules  under  Code  Section  425(d)  are applicable to
determine  whether  the  ten  percent  ownership  rule  is  satisfied.

k.     "Vesting"  and  "vested"  shall  mean  the  times(s)  when  options  are
exercisable  as  determined  by  the Committee (or the Board if no Committee has
been  established),  subject  to  the  provisions  of  this  Plan.

                                  ARTICLE III

                                 ADMINISTRATION

3.1     The  Committee  (or  the  Board,  until a Committee is designated) shall
administer  the  Plan  with  full  power  to  grant Incentive Stock Options, and
construe and interpret the Plan, establish rules and regulations and perform all
other  acts  it  believes  reasonable  and  proper.

3.2     The  determination of those eligible to receive Incentive Stock Options,
and  the  amount and terms and conditions of such Options shall rest in the sole
discretion  of  the  Committee  (or  the  Board, if no Committee is designated),
subject  to  the  provisions  of  this  Plan.  Eligibility  and vesting shall be
determined  under  Article  V.

3.3     The  Committee  may  cancel  any  Incentive Stock Options if an Optionee
conducts  herself  or  himself  in  a  manner  which the Committee in good faith
determines  to  be  not  in  the  best interests of the Company, as set forth in
Section  11.7.

3.4     The  Board,  or  the  Committee,  may  correct  any  defect,  supply any
omission,  or  reconcile  any  inconsistency  in  the  Plan,  or  in any granted
Incentive  Stock Option, in the manner and to the extent it shall deem necessary
to  carry  it  into  effect.

3.5     Any  decision  made,  or  action  taken,  by  the Committee or the Board
arising  out  of  or in connection with the interpretation and administration of
the  Plan  shall  be  final  and  conclusive.

3.6     Meetings  of  the  Committee  shall  be held at such times and places as
shall  be  determined  by the Committee. Notice of meetings shall be made in the
same  manner  as required for Board meetings under the Bylaws. A majority of the
members  of  the  Committee  shall  constitute  a  quorum for the transaction of
business,  and  the vote of a majority of those members present shall decide any
question  brought  before  that meeting. In addition, the Committee may take any
action  otherwise  proper  under  the Plan by the signed affirmative vote, taken
without  an  actual  meeting,  of  all members. All proceedings of the Committee
shall  be  evidenced  by  complete and detailed minutes, signed by the Committee
members.

3.7     No  member  of  the Committee shall be liable for any act or omission of
any  other  member of the Committee or for any act or omission on her or his own
part,  including,  but  not  limited to, the exercise of any power or discretion
given  to  her or him under the Plan, except those resulting from her or his own
bad  faith,  gross  negligence,  or  willful  misconduct.

3.8     The  Plan shall always be administered in such a manner as to permit the
Options  to qualify as "incentive stock options" under Section 422A of the Code.
3.9     Management  of  the  Company shall supply full and timely information to
the  Committee  on  all matters relating to eligible employees, their duties and
performance,  and  current  information  on  death, retirement and disability or
other  termination  of  employment  of  Optionees,  and  such  other  pertinent
information  as  the  Committee  may  require.  The  Company  shall  furnish the
Committee  with clerical and other assistance as necessary in performance of its
duties  hereunder.

                                   ARTICLE IV

                            NUMBER OF RESERVED SHARES

4.1     RESERVED  SHARES.  The  total  number  of  Common  Shares of the Company
available  for  issuance  under  the  Plan shall be 3,000,000 shares, subject to
adjustment  under  Article VII. The reserved shares may be either authorized but
unissued,  or  previously  issued  and  subsequently  reacquired.

4.2     SHARES UNDER EXPIRED OR TERMINATED OPTIONS. If an Incentive Stock Option
or  portion thereof shall expire or terminate for any reason without having been
exercised  in  full, the unpurchased shares shall be available for future grants
of  Incentive  Stock  Options.

                                    ARTICLE V

                      ELIGIBILITY, VESTING AND ALLOCATION

5.1     ELIGIBILITY.  Qualified  Incentive  Stock  Options  may  be  granted  to
officers and employees of the Company and of the Company's parent, subsidiary or
affiliate  companies,  as  determined  by  the  Committee.
The  Compensation  Committee  shall determine the length of service required for
each  Optionee  to  be  eligible  to  participate  in  this  Plan.

5.2     VESTING. Subject to Section 6.8, Incentive Stock Options generally shall
be  exercisable  at  the  rates  established  by  the  Committee.
5.3     ALLOCATION.  The  number  of Incentive Stock Options to be issued in any
calendar  year  shall  be in the discretion of the Committee (or the Board if no
Committee  has  been  established).

                                   ARTICLE VI

                              TERMS AND CONDITIONS

6.1     FORM OF OPTION AGREEMENT. All Incentive Stock Options shall be evidenced
by  agreements  in the form of Attachment A hereto, or in such other form as may
be  duly approved pursuant to this Plan. Any such other form shall be subject to
applicable  provisions  of  the Plan, and such other provisions as the Committee
may  adopt,  but  always  shall include the provisions set forth in Sections 6.2
through  6.10  below.

6.2     PRICE.  The option price per share for Qualified Incentive Stock Options
shall  be equal to  100% of the Fair Market Value of a Common Share on the grant
date.  The  price  at  which shares may be purchased on exercise of an Incentive
Stock  Option by a Ten Percent Shareholder shall be not less than 110 percent of
the  Fair  Market  Value  on  the  grant  date.

6.3     TIME  OF  GRANT.  All  Incentive Stock Options must be granted within 10
years  from  the  date  this Plan is adopted by shareholders. An Incentive Stock
Option will remain exercisable until termination of the Option, even if the Plan
itself  has  been  terminated.

6.4     TIME  OF  EXERCISE. No Incentive Stock Option granted to any Ten Percent
Shareholder  shall  be  exercisable  after the expiration of five years from the
date  such  is  granted.  Subject  to  Article  V,  the  Committee may establish
installment  exercise  terms for an Incentive Stock Option, such that the Option
becomes  fully  exercisable  over  a  series  of  cumulating  portions.

If  an  Optionee  shall  not,  in any given installment period, purchase all the
Common  Shares  available  within such period, such Optionee's right to purchase
any  Common Shares not purchased in such installment period shall continue until
the  expiration or sooner termination of such Option, unless there is a contrary
provision  in  the  Stock  Option  Agreement.

6.5     EXERCISE.  An  Incentive  Stock Option shall be exercised by delivery of
(a)  a  written  notice  of exercise (in the form of Attachment B hereto) to the
Company  specifying the number of Common Shares to be purchased, and (b) payment
of  the  full  price  of  such  Common  Shares,  as  set  forth  in Section 6.6.

Not  less  than 100 Common Shares may be purchased at one time unless the number
purchased  is  the  total  number  at the time available for purchase. Until the
Common  Shares represented by an exercised Option are issued to an Optionee, she
or  he  shall  have  none  of  the  rights  of  a  shareholder.

6.6     METHOD  OF  PAYMENT. The purchase price for an Incentive Stock Option or
portion  thereof  may  be  paid:

     a.   In  United  States  dollars  by cashier's check, certified check, bank
          draft,  or  money  order  payable to order of the Company in an amount
          equal  to  the  option  price;  or

     b.   At the discretion of the Committee, through the delivery of fully paid
          and  non-assessable Common Shares, with an aggregate Fair Market Value
          on  the  date of the exercise equal to the option price, provided such
          tendered  shares have been owned by the Optionee for at least one year
          prior  to  such  exercise;  or

     c.   By  a  combination  of  a.  and  b.;  or

     d.   In any other lawful consideration approved by the Committee, including
          without  limitation Promissory notes, salary set-offs, and exchange of
          options  with  higher  exercise  prices.

The  Committee shall determine acceptable methods for tendering Common Shares as
payment  upon exercise, and may impose limitations on such use of Common Shares.

6.7     TRANSFERABILITY.  Except by will or the laws of descent and distribution
as  provided  by  Section  6.8(c) below, and except for transfers to a Permitted
Transferee,  no  Option, and no right or interest in any Incentive Stock Option,
shall  be  assignable or transferable. Transfers to a Permitted Transferee shall
be  authorized  only  if (i) the transfer is a bona fide gift and not payment of
anything  to  any  person,  directly  or  indirectly; (ii) the Optionee receives
nothing  of  value,  directly  or  indirectly,  for  the  gift;  and  (iii)  the
transferred Options continue to be subject to the identical terms and conditions
as  the  Options prior to such transfer. A Permitted Transferee means (and shall
be  limited  to)  an  Optionee's  Family  Members: child, stepchild, grandchild,
parent,  stepparent, grandparent, spouse, former spouse, sibling, niece, nephew,
mother-in-law,  father-in-law,  son-in-law,  daughter-in-law,  brother-  or
sister-in-law  (including adoptive relationships); anyone sharing the Optionee's
household (but not as a tenant or employee), or a trust or other entity in which
the  Optionee  and Family Members hold more than 50% of its beneficial or voting
interest.  It  is  intended  that  the preceding comply with General Instruction
A(l)(a)(5)  to  Form  S-8  adopted  by  the  Securities and Exchange Commission.

6.8     TERMINATION  OF  EMPLOYMENT,  DISABILITY,  OR  DEATH  OF OPTIONEE. If an
Optionee  shall cease to be employed by the Company, dies, or become permanently
or  totally  disabled (within the meaning of Section 22(e)(3) of the Code) while
he  or  she  is  holding  Options,  each  Option  shall  expire  as  follows:

     a.   If  the  Optionee's  termination  of  employment occurs for any reason
          except death, disability, or retirement pursuant to a Company approved
          retirement policy then in effect, during the first year after grant of
          the  Option,  the  Optionee's right to exercise shall terminate to the
          extent  not  theretofore  exercised

     b.   If  the  Optionee's  termination  of employment occurs for any reason,
          except  death  or  disability,  more than 12 months after grant of the
          Option,  the  Optionee shall have the right to exercise the Option for
          three  months  after termination to the extent that it was exercisable
          on  the  date  of  termination;  however, that if the employment of an
          Optionee  shall  terminate,  or  if  a  director shall be removed, for
          cause,  all Options theretofore granted to such Optionee shall, to the
          extent  not  theretofore  exercised,  terminate  forthwith.

     c.   If  at  any  time  after  date  of the grant, the Optionee (i) retires
          pursuant  to  a  Company approved retirement policy then in effect, or
          (ii)  becomes  permanently and totally disabled (within the meaning of
          Section 105(b)(4) of the Code), the Option shall become exercisable in
          full  on  the  date  of  such  retirement  or  disability  and  remain
          exercisable  for  one  year.

     d.   If  the Optionee shall die while employed by the Company, the personal
          representative  or  administrator  of  the  Optionee's  estate  or the
          person(s)  to  whom  the  Option  was  validly transferred by personal
          representative  or administrator, shall have the right to exercise the
          Option  for  one  year  after  death.

No  transfer  of an Incentive Stock Option by the will of an Optionee, or by the
laws  of probate shall be effective to bind the Company unless the Company shall
have been furnished with written notice thereof and an authenticated copy of the
will and/or such other evidence as the Committee may deem necessary to establish
validity  of  the  transfer.

6.9     LEAVES  OF ABSENCE. For purposes of the Plan, it shall not be considered
a  termination  of  employment  when  an  Optionee  is  placed by the Company on
military  or  sick  leave  or  other  type  of  leave  of  absence considered as
continuing  intact  the  employment  relationship. In case of a leave of absence
other  than military leave, the employment relationship shall be continued until
the  later  of  the  date  when  such  leave equals 90 days or the date when the
Optionee's  right to reemployment with the Company shall no longer be guaranteed
by  statute  or  contract.

6.  10     ANNUAL $100,000 LIMIT ON EACH ISO OPTIONEE. Notwithstanding any other
provision  of  the  Plan,  the aggregate Fair Market Value of the Common Shares,
determined  as of the time such Option is granted, for which any Optionee may be
granted  Incentive Stock Options under the Plan shall not exceed $100,000 in any
such  same calendar year. The Compensation Committee may reclassify Options from
unqualified to qualified status under the Code from time to time to maximize the
tax  benefits  to  Optionees.

                                  ARTICLE VII

                    ADJUSTMENTS ON CHANGES IN CAPITALIZATION

7.1     In  the  event  that  the  outstanding  Common Shares of the Company are
hereafter  changed into or exchanged for a different number or kind of shares or
other  securities  of  the Company prompt, proportionate, equitable, lawful, and
adequate  adjustment  shall  be  made of the aggregate number and kind of shares
subject  to  Options  which  may have been granted, such that the Optionee shall
have  the  right to purchase such Common Shares as may be issued in exchange for
those  purchasable  on  exercise  of the Options had such merger, consolidation,
other reorganization, recapitalization, reclassification, combination of shares,
stock  split-up,  or  stock  dividend  not  taken  place.

7.2     The  foregoing  adjustments  and  their  manner  of application shall be
determined  solely by the Committee (or by the Board, if there be no committee).
No  fractional  shares  shall  be  issued  under the Plan on account of any such
adjustments.

                                  ARTICLE VIII

                            MERGER OR CONSOLIDATION

8.0     If  the  Company  shall be a party to a binding agreement to any merger,
consolidation, or reorganization of which the Company shall not be the survivor,
each  outstanding  Option  shall  pertain  and  apply  to the securities which a
shareholder of the Company would be entitled to receive pursuant to such merger,
consolidation,  or  reorganization.  Every  Optionee  shall  have  the  right
immediately prior to taking effect of such a transaction, to exercise the Option
to  the  extent not exercised by such date. If Options are not exercised by such
date,  the  unexercised  Options  shall  be  deemed exchanged for new options to
purchase  common  shares  in the successor company, adjusted as necessary (as to
price  and/or  number  of  shares) to preserve the Optionee's opportunity to buy
stock  in  the  successor  company,  in  the  proportion  that the Common Shares
(including Options as if they had been exercised before the transaction) bear to
the  total  outstanding  securities  of  the  successor  company.

                                   ARTICLE IX

                        AMENDMENT AND TERMINATION OF PLAN

9.1     The Board, without further approval of the shareholders, and at any time
and  from time to time, may suspend or terminate the Plan in whole or in part or
amend  it  in  such  respects  as  the  Board  deems appropriate and in the best
interest of the Company; provided, however, that no such amendment shall be made
which  would,  without  approval  of  the  shareholders:

     a.   Materially  modify the eligibility requirements for receiving Options;

     b.   Increase  the  total  number  of  Common  Shares  which  may be issued
          pursuant  to  Options,  except  in  accordance  with  Article  VII;

     c.   Reduce  the  minimum  exercise  price  per  Common  Share,  except  in
          accordance  with  Article  VII;

     d.   Extend  the  period  of  granting  Options;  or

     e.   Materially  modify  in  any  other  way  the  benefits  to  Optionees.

9.2     No amendment, suspension, or termination of this Plan shall, without the
Optionee's  consent,  alter  or  impair  any  of the rights or obligations under
issued  Options.

9.3     The Board may amend the Plan, subject to the limitations cited above, as
may  be  necessary to permit the granting of Incentive Stock Options meeting the
requirements  of  the  Code.

9.4     No  Option  may  be  granted  during any suspension of the Plan or after
termination  of  the  Plan.

                                    ARTICLE X

                                  REGULATIONS

10.0     The  obligation  of  the  Company  to issue Common Shares for exercised
Incentive  Stock  Options  shall  be  subject to laws and regulations, including
without  limitation (i) for citizens of the United States, the Securities Act of
1933  and  state  securities  laws,  (ii)  for  citizens  of  Canada  and  other
jurisdictions,  the securities laws of Canada and other jurisdictions, and (iii)
if  the  Company  is listed, the regulations of the NASDAQ market system, or the
requirements  of  other  exchanges  or  quotation  markets.

                                   ARTICLE XI

                            MISCELLANEOUS PROVISIONS

11.1     NO  RIGHT  TO EMPLOYMENT. No person shall have any claim or right to be
granted an Option under the Plan, and the grant thereof under the Plan shall not
be  construed  as giving any person the right to be employed by or retained as a
consultant  for  the  Company,  or to continue any such employment or consulting
status.

11.2     PLAN  EXPENSES. The Company will pay all expenses of administering this
Plan.

11.3     USE OF EXERCISE PROCEEDS. Money received from Optionees on the exercise
of  Options  shall  be  used  for the general corporate purposes of the Company.

11.4     FOREIGN  NATIONALS.  Without  amending  the Plan, grants may be made to
employees  of  the  Company  who  are  foreign nationals or employed outside the
United  States,  or  both,  on  terms  and conditions consistent with the Plan's
purpose  but  different  from those specified in the Plan as may be necessary or
desirable  to  create  equitable  opportunities,  given differences in tax laws.

11.5     INDEMNIFICATION. In addition to such other rights of indemnification as
they  may  have  as  members  of  the Board or the Committee, the members of the
Committee  shall  be  indemnified  by the Company against all costs and expenses
reasonably  incurred  by them in connection with any action, suit, or proceeding
to  which  they  or  any  of  them may be party by reason of any action taken or
failure  to  act  under  or  in  connection  with the Plan or any Option granted
thereunder, and against all amounts paid by them in settlement thereof (provided
such  settlement  is  approved  by  independent  legal  counsel  selected by the
Company) or paid by them in satisfaction of a judgment in any such action, suit,
or  proceeding,  except  a  judgment based upon a finding of bad faith; provided
that  upon  the institution of any such action, suit, or proceeding, a Committee
member shall, in writing, give the Company notice thereof and an opportunity, at
its  own expense, to handle and defend the same before such member undertakes to
handle  and  defend  it  on  her  or  his  own  behalf.

11.6     SUBSTITUTE OPTIONS. Options may be granted under this Plan from time to
time  in  substitution  for  options held by employees of other corporations who
become  employees  of the Company as the result of a merger or the consolidation
of  the employing corporation with the Company or the acquisition by the Company
of  the assets of the employing corporation or the acquisition by the Company of
stock  of the employing corporation as a result of which it becomes a subsidiary
of  the  Company.

11.7      FORFEITURE FOR DISHONESTY. Notwithstanding anything to the contrary in
the  Plan,  if  the Committee in good faith finds by a majority vote, after full
consideration  of  the  facts  presented  on  behalf of both the Company and the
Optionee,  that  the  Optionee  has  been engaged in fraud, embezzlement, theft,
commission  of  a felony or dishonesty in the course of her or his employment by
the  Company  or  any  subsidiary  corporation, which damaged the Company or any
subsidiary  corporation,  or  for disclosing trade secrets of the Company or any
subsidiary  corporation, the Optionee shall forfeit all unexercised Options. The
decision  of  the  Committee  as to the cause of an Optionee's discharge and the
damage  done  to  the  Company  shall  be  final.  No decision of the Committee,
however,  shall  affect  the  finality  of the discharge of such Optionee by the
Company  or  any  subsidiary  corporation  in  any  manner.

                                  ARTICLE XII

                        INFORMATION DELIVERY REQUIREMENTS

12.1     In  order  that  the  Company  complies  with its obligations under the
securities laws, an Optionee desiring to exercise his or her options will notify
the  Chief Executive Officer or Chief Financial Officer of the Company of his or
her  intention,  in  writing.  Such Officer shall direct other officer(s) of the
Company  to  meet  with  the  individual  to  deliver  and discuss the following
information:  If  the  Company  is  registered  with the SEC, copies of its last
annual  report,  quarterly  report, proxy statement and any Form 8-K reports; If
the  Company  is  not  so  registered,  then  copies  of  the  audited financial
statements  for the last fiscal year and unaudited interim financial statements;
a  summary  of  current  and  expected  contracts and overall business strategy;
copies  of  the  articles of incorporation and significant business contracts in
place; and copies of debt/credit line documents, and any other document material
to  the evaluation of an investment in the Company. Prior to the exercise of the
Option,  the  Optionee shall acknowledge receipt of the delivered information in
writing.

                                  ARTICLE XIII

     DISPOSITION OF STOCK ACQUIRED ON EXERCISE OF AN INCENTIVE STOCK OPTION

13.1     QUALIFYING  DISPOSITION.  A  disposition  of  Common  Stock acquired by
exercise  of an ISO, where the disposition occurs after two years from the grant
of  the  ISO,  will  qualify the receipt of proceeds from disposition as capital
gains  income,  provided  that at least one year has elapsed between exercise of
the  ISO  and  disposition  of  the  Common  Shares.

13.2     DISQUALIFYING  DISPOSITION.  A  disposition of Common Stock acquired by
exercise  of  an  ISO, where the disposition occurs less than two years from the
grant  of  the  ISO, will disqualify the receipt of proceeds from disposition as
capital  gains  income,  such  that  (a)  the  receipt  of such proceeds will be
recognized  as compensation income in the calendar year of disposition, equal to
the  difference  between  the  exercise  price  and the fair market value of the
Common  Shares  at  the  time  of  exercise; and (b) for purposes of calculating
capital  gains  tax  on disposition proceeds, the basis shall equal the exercise
price  plus  the  amount  of  compensation  income  recognized.

13.3     SUBJECT  TO  CHANGE.  The foregoing provisions are subject to change in
the  Code.

                                  ARTICLE XIV

                    SHAREHOLDER APPROVAL AND EFFECTIVE DATE

14.0     This  Plan  is  effective  as  of  the date of approval by the Board of
Directors,  provided  the  shareholders  approve the plan within 12 months after
that  date.

                                * * * * * * * *

This  Incentive  Stock  Option  Plan  was  presented  to the Shareholders of the
Company  and  approved  by the Shareholders on December 7, 2001 and incorporated
into  the  minutes  and  books of the Company. Upon ratification by the Board of
Directors  on  December  7,  2001 the Plan was filed in the Company minute book.
The  Board  of  Directors amended this Plan, consistent with Article IX, on June
16,  2003,  and  the  Amended  Plan  was  filed  in  the  Company  Minute  Book.

ATTEST:                                 U.S.  ENERGY  CORP.

  /s/  Daniel  P.  Svilar                 /s/  Keith  G.  Larsen
---------------------------------      -----------------------------------------
Secretary                              President

<PAGE>

                              ATTACHMENT A TO PLAN

Number  of  Shares:  ______

Date  of  Grant:  ____________,  20___

                             STOCK OPTION AGREEMENT

Agreement made this     day of          ,     , between             ("Optionee")
                   -----      ---------- -----         -------------  and  U. S.
Energy  Corp.  (the  "Company").

1.     GRANT OF OPTION. The Company, pursuant to the provisions of the Company's
Amended  2001  Incentive  Stock  Option  Plan  ("Plan"),  hereby  grants  to the
Optionee,  subject to the terms and conditions set forth or incorporated herein,
an  Option  to  purchase  from  the  Company  all or any part of an aggregate of
 Common  Shares,  at the purchase price of $           per Share. The provisions
of  the Plan governing the terms and conditions of the Option granted hereby are
incorporated  herein  by  reference.

In the event of any conflict between this Agreement and the Plan, the Plan shall
control.

2.     EXERCISE.  This  Option  shall  be  exercisable  in  whole or in part (in
multiples  of  100  Shares,  unless for the balance of this Option) on or before
..
This  Option  shall  be  exercisable  by  delivery to the Company of a notice of
election  to  exercise,  in  the  form attached hereto, specifying the number of
Shares  to be purchased and accompanied by payment of the full purchase price. A
copy of this Stock Option Agreement shall also be delivered to the Company along
with  the  notice  of  election  of  exercise,  for the Company's endorsement of
exercise  on  Schedule  I  and  return  to  the Optionee for his or her records.

U.  S.  ENERGY  CORP.

By:------------------------------------

<PAGE>

                              ATTACHMENT B TO PLAN

U.  S.  Energy  Corp.
877  N.  8th  W.
Riverton,  WY  82501

In  accordance  with  Paragraph  2  of the Stock Option Agreement evidencing the
Option granted to me on                 , I hereby elect to exercise this Option
                       -----------------
to the extent  of           Common  Shares,  by  (circle  method  used):
                  ---------

1.     A cashier's check, certified check, bank draft, or money order payable to
order  of  the  Company  in  an  amount  equal  to  the  option  price;  or

2.     Shares  I  already  own;  or

3.     A  combination  of  1  and 2: $                cash and           shares.

When the certificate for Common Shares which I have elected to purchase has been
issued,  please deliver it to me, along with my endorsed Stock Option Agreement,
in the event there remains an unexercised balance of Shares under the Option, at
the  following  address:

Very  truly  yours,

Optionee  Signature
                   ------------------------------

Print  Name:
            -------------------------------------

<PAGE>

                                   SCHEDULE I

                                             UNEXERCISED     ISSUING
     DATE          SHARES       PAYMENT         SHARES       OFFICER
                  PURCHASED     RECEIVED       REMAINING     INITIALS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00056-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00056-of-00352.parquet"}]]