Document:

Exhibit
        10.4

      

      PLACEMENT
        AGENCY AGREEMENT

      

      August
        31, 2007

      

      FIG
        Partners, L.L.C.

      100
        Colony Square

      1175
        Peachtree Street, NE

      Suite
        2250

      Atlanta,
        Georgia 30361

      

      Gentlemen:

      

      Northern
        Oil and Gas, Inc., a Nevada corporation (the “Company”), proposes to offer (the
“Offering”) an aggregate up to 4,242,424 shares (the “Shares”) of its common
        stock, $0.001 par value per share (“Common Stock”) at the price of $3.30 per
        Share (the “Offering Price”) pursuant to the Offering. The Company proposes to
        offer such Shares to “accredited investors” (as defined in Regulation D under
        the Securities Act of 1933, as amended (the “1933 Act”)) as well as no more than
        35 unaccredited investors pursuant to an exemption from registration under
        Rule
        506 issued under the 1933 Act. 

       

      The
        Company hereby confirms its agreement, on the terms and subject to the
        conditions set forth herein, to retain FIG Partners, L.L.C., a Georgia limited
        liability company, and its Energy Capital Group (the “Placement Agent”), on a
“best efforts” basis, to (i) assist with the book keeping and marketing of the
        Offering process, and (ii) to introduce the Company to, and assist the Company
        in procuring subscriptions from, certain “accredited investors,” and up to 35
        unaccredited investors who either alone or together with their advisors have
        such knowledge and experience in financial and business matters that they
        are
        capable of evaluating the merits and risks of investment in the Common Stock
        as
        prospective purchasers (collectively “Purchasers”) of the Shares. The sale to
        such Purchasers will be made through a private placement offering by the
        Company, through the Placement Agent (or its designated selected dealers)
        on a
“best efforts” basis, pursuant to the Confidential Private Placement Memorandum
        dated August 17, 2007, and all supplements, amendments and exhibits thereto,
        all
        of which constitute an integral part thereof (the “Memorandum”), separate
        subscription agreements (the “Subscription Agreements”) and certificates of
        investor status (the “Questionnaires”) between the Company and each Purchaser of
        Shares and related documents in accordance with Section 4(2) of the 1933
        Act and
        Regulation D promulgated thereunder.

       

      The
        Memorandum, the Subscription Agreements and the Questionnaires are collectively
        referred to herein as the “Offering Documents.” The Company, at its sole cost,
        shall prepare and deliver to the Placement Agent a reasonable number of copies
        of the Offering Documents in form and substance satisfactory to the Placement
        Agent.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            2

        

      

       

      Each
        prospective Purchaser subscribing to purchase Shares shall be required to
        deliver, among other things, an executed Subscription Agreement and
        Questionnaire. The Company shall make available to each prospective Purchaser,
        at a reasonable time prior to the purchase of Shares, the opportunity to
        ask
        questions of and receive answers from the Company concerning the terms and
        conditions of the Offering and the opportunity to obtain additional information
        necessary to verify the accuracy of the documents delivered in connection
        with
        the purchase of Shares to the extent it possesses such information or can
        acquire it without unreasonable effort or expense. After the prospective
        Purchasers have had an opportunity to review the Offering Documents and to
        address all inquiries to the Company, separate Subscription Agreements and
        Questionnaires shall be completed by each prospective Purchaser. The Company
        and
        the Placement Agent, in the exercise of their reasonable discretion, shall
        each
        have the right to reject subscriptions. 

       

      Capitalized
        terms used in this Placement Agency Agreement (this “Agreement”), unless
        otherwise defined herein or unless the context otherwise indicates, shall
        have
        the same meanings provided in the Offering Documents. 

       

      1. Appointment
        of Placement Agent.

       

      (a) The
        Placement Agent is hereby appointed to act as the lead placement agent of
        the
        Company (subject to the Placement Agent’s right to have Selected Dealers, as
        defined in Section 1(c) hereof, participate in the Offering) during the Offering
        Period (as defined below). The Placement Agent’s engagement is on a “best
        efforts” basis. The Company intends to identify its own investors and, in such
        event, the Placement Agent will assist the Company in the development of
        a
        marketing strategy for the Offering. To the extent that the Company is unable
        to
        identify its own investors, the Placement Agent will assist the Company in
        finding qualified Purchasers. The Placement Agent shall not be deemed an
        agent
        of the Company for any other purpose by virtue of this Agreement. The “Offering
        Period” shall commence on the day the Offering Documents are first made
        available to the Placement Agent by the Company for delivery in connection
        with
        the offering for the sale of Shares (the “Commencement Date”), and shall expire
        upon the earlier to occur of (i) the closing of the Offering (the “Closing”),
        and (ii) 11:59 p.m. Georgia time on September 30, 2007 subject to an extension,
        at the option of the Placement Agent (the “Termination Date”). 

       

      (b) Subject
        to the performance by the Company of all of its obligations to be performed
        under this Agreement and to the completeness and accuracy of all representations
        and warranties of the Company contained in this Agreement, the Placement
        Agent
        hereby accepts such agency and agrees to use its best efforts to assist the
        Company in finding qualified Purchasers pursuant to the Offering described
        in
        the Offering Documents. It is understood that the Placement Agent has no
        commitment to sell or purchase any of the Shares. The Placement Agent’s agency
        hereunder is not terminable by the Company prior to the Termination Date
        unless
        the Placement Agent has materially breached any of its covenants or agreements
        hereunder and failed to cure such breach within fifteen (15) days after written
        notice thereof is given by the Company to the Placement Agent.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            3

        

      

       

      (c) The
        Placement Agent may engage other persons, selected in its sole discretion,
        who
        are members of NASD and who have executed a Selected Dealers Agreement (each
        such person being hereinafter referred to as a “Selected Dealer”) pursuant to
        which such Selected Dealer agrees to comply with all the obligations of the
        Placement Agent hereunder as if such Selected Dealer were a party hereto
        for the
        benefit of the Company, and the Placement Agent may allow such persons to
        receive such part of the compensation and payment of expenses payable to
        the
        Placement Agent hereunder as the Placement Agent shall determine; provided,
        however, that any such compensation shall be received pursuant to Section
        4(d)
        hereof.

       

      (d) Subscriptions
        for Shares shall be evidenced by the execution by each Purchaser of a
        Subscription Agreement. No Subscription Agreement shall be effective unless
        and
        until it is accepted by the Company. The Placement Agent shall not have any
        independent obligation to verify the accuracy or completeness of any information
        contained in any Subscription Agreement or the authenticity, sufficiency,
        or
        validity of any check delivered by any prospective Purchaser in payment for
        Shares nor shall the Placement Agent incur any liability with respect to
        any
        such verification or failure to verify.

       

      (e) Certain
        affiliates of the Placement Agent, as identified by the Placement Agent,
        may
        purchase Shares in the Offering. Affiliates of the Placement Agent will invest
        net of cash commissions and expenses. Accordingly, the Placement Agent will
        not
        receive any commissions or expense allowances on the Shares purchased by
        its
        affiliates and the Company will receive net proceeds equivalent to the net
        proceeds received from the purchase of Shares by persons not affiliated with
        the
        Placement Agent. 

       

      (f) All
        subscription checks and funds shall be promptly and directly delivered without
        offset or deduction to the Company. Any escrow procedures established by
        the
        Company in connection with the sale of Shares shall comply with Securities
        and
        Exchange Commission Rule 15c2-4 promulgated under the 1934 Act. All purchasers
        to whom the Agent arranges for the sale of Shares shall be instructed to
        make
        their check for payment of the Shares payable to “Northern Oil and Gas, Inc.”
The Company shall transmit all funds that it receives from purchasers, along
        with each originally executed subscription agreement for the purchase of
        Shares,
        to any applicable escrow agent by noon of the next business day following
        receipt thereof.

       

      2. Representations
        and Warranties of the Company.
        

       

      The
        Company represents and warrants to the Placement Agent and each Selected
        Dealer,
        if any, as follows:

       

      (a) The
        Offering Documents, as of their respective dates, do and shall, as of the
        date
        of the Memorandum and the Closing, describe the material aspects of an
        investment in the Company and conform in all respects with the requirements
        of
        Section 4(2) of the 1933 Act and Regulation D promulgated thereunder and
        with
        the requirements of all other published rules and regulations of the Securities
        and Exchange Commission (the “SEC”) currently in effect relating to “private
        offerings” to “accredited investors” as that term is defined in Regulation D
        under the 1933 Act. The Offering Documents will not, as of the date of the
        Memorandum and the Closing, contain any untrue statement of a material fact
        or
        omit to state any material fact necessary in order to make the statements
        therein, in light of the circumstances under which they were made, not
        misleading; provided, however, that no representation, covenant or warranty
        is
        made with respect to information relating to the Placement Agent that is
        provided in writing by the Placement Agent to the Company specifically for
        inclusion in the Offering Documents. The statistical and market related data
        contained in the Offering memorandum are based on or derived from sources
        which
        the Company reasonably believes are reliable and accurate. If at any time
        prior
        to the completion of the Offering or other termination of this Agreement
        any
        event shall occur as a result of which it might become necessary to amend
        or
        supplement the Offering Documents so that they do not include any untrue
        statement of any material fact or omit to state any material fact necessary
        in
        order to make the statements therein, in the light of the circumstances then
        existing, not misleading, the Company will promptly notify the Placement
        Agent
        and will supply the Placement Agent (or the prospective Purchasers designated
        by
        the Placement Agent) with amendments or supplements correcting such statement
        or
        omission. The Company shall also provide the Placement Agent, for delivery
        to
        all offerees and Purchasers and their representatives, if any, any information,
        documents and instruments that the Placement Agent and the Company’s counsel
        reasonably deem necessary to comply with applicable law. At the time of
        submission to any regulatory agencies and at all times subsequent thereto
        until
        the Closing Date, all notices, applications and other filings (the
“Applications”) made therewith have and will comply as to form in all material
        respects with all applicable rules and regulations of the applicable regulatory
        agencies (except as modified or waived in writing by the applicable regulatory
        agencies). The information included in the Applications is true, complete
        and
        correct in all material respects.  

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            4

        

      

       

      (b) The
        Company has no subsidiaries other than those listed in the 10-K filed by
        the
        company with the SEC for the year ended December 31, 2006 (collectively,
        the
“Subsidiaries”). The Company and each of its Subsidiaries is a corporation,
        limited partnership, limited liability company or unlimited liability duly
        organized, validly existing and in good standing under the laws of the
        jurisdiction in which it is incorporated or organized, with corporate or
        limited
        partnership power and authority to own, lease, use and operate its properties
        and to carry on its business as now operated and conducted. The Company and
        each
        of its Subsidiaries is duly qualified as a foreign corporation or limited
        partnership to do business and is in good standing in each jurisdiction in
        which
        its ownership or use of property or the nature of the business conducted
        by it
        makes such qualification necessary, except where the failure to be so qualified
        or in good standing would not have any material adverse effect on the business,
        operations, assets, financial condition or prospects of the Company (a “Material
        Adverse Effect”). 

      

      (c) The
        Company has all requisite corporate power and authority to enter into and
        perform this Agreement, the Registrations Rights Agreement, and each of the
        other documents contemplated by this Agreement (collectively, the “Transaction
        Documents”), and to consummate the transactions contemplated hereby and thereby,
        in accordance with the terms hereof and thereof. The execution and delivery
        of
        this Agreement and each of the other Transaction Documents by the Company
        and
        the consummation by it of the transactions contemplated hereby and thereby
        have
        been duly authorized by the Company’s Board of Directors and no further consent
        or authorization of the Company, its Board of Directors, or its shareholders
        is
        required. This Agreement and each of the other Transaction Documents have
        been
        duly executed and delivered by the Company. This Agreement and each of the
        other
        Transaction Documents will constitute upon execution and delivery by the
        Company, a legal, valid and binding obligation of the Company enforceable
        against the Company in accordance with its terms, except as such enforceability
        may be limited by: (i) applicable bankruptcy, insolvency, reorganization,
        moratorium or other similar laws in effect that limit creditors’ rights
        generally; (ii) equitable limitations on the availability of specific remedies;
        (iii) principles of equity (regardless of whether such enforcement is considered
        in a proceeding in law or in equity); and (iv) to the extent rights to
        indemnification and contribution may be limited by federal securities laws
        or
        the public policy underlying such laws.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            5

        

      

       

      (d) As
        of the
        date hereof, the authorized and outstanding capital stock of the Company
        is as
        set forth in the Subscription Agreements. All outstanding shares of Common
        Stock
        are duly authorized, validly issued, fully paid and nonassessable. No shares
        of
        capital stock of the Company are subject to preemptive rights or any other
        similar rights of the shareholders of the Company or any liens or encumbrances
        imposed through the actions or failure to act of the Company. As of the date
        hereof, the Company's outstanding options to purchase shares of Common Stock
        is
        as set forth in the Subscription Agreements. As of the date hereof except
        to the
        extent described in the preceding sentence or in the Subscription Agreements,
        (i) there are no outstanding options, warrants, scrip, rights to subscribe
        for,
        puts, calls, rights of first refusal, agreements, understandings, claims
        or
        other commitments or rights of any character whatsoever relating to, or
        securities or rights convertible into or exchangeable for any shares of capital
        stock of the Company or any of its Subsidiaries, or arrangements by which
        the
        Company or any of its Subsidiaries is or may become bound to issue additional
        shares of capital stock, and (ii) there are no agreements or arrangements
        under
        which the Company or any of its Subsidiaries is obligated to register the
        sale
        of any of its or their securities under the 1933 Act (except in the Registration
        Rights Agreement incorporated herein). Except as may be described in any
        documents which have been publicly filed by any of the Company's stockholders,
        to the Company’s knowledge, there are no agreements between the Company’s
        stockholders with respect to the voting or transfer of the Company’s capital
        stock or with respect to any other aspect of the Company’s affairs.

       

      (e) The
        execution, delivery and performance of this Agreement and each of the other
        Transaction Documents by the Company and the consummation by the Company
        of the
        transactions contemplated hereby and thereby will not (i) conflict with or
        result in a violation of any provision of the articles of incorporation,
        as
        amended, of the Company or the bylaws, as amended, of the Company, (ii) violate
        or conflict with, or result in a breach of any provision of, or constitute
        a
        default (or an event which with notice or lapse of time or both could become
        a
        default) under, or give to others any rights of termination, amendment,
        acceleration or cancellation of, any material agreement, indenture, patent,
        patent license or instrument to which the Company or any of its Subsidiaries
        is
        a party, or (iii) result in a violation of any federal, state, local, municipal,
        foreign, international, multinational or other law, rule, regulation, order,
        judgment, decree, ordinance, policy or directive, including those entered,
        issued, made, rendered or required by any court, administrative or other
        governmental body, agency or authority, or any arbitrator (collectively,
        a
“Legal Requirement”) applicable to the Company or any of its Subsidiaries or by
        which any property or asset of the Company or any of its Subsidiaries is
        bound
        or affected (except for such conflicts, defaults, terminations, amendments,
        accelerations, cancellations and violations as would not, individually or
        in the
        aggregate, have a Material Adverse Effect). Neither the Company nor any of
        its
        Subsidiaries is in violation of its certificate or articles of incorporation,
        bylaws or other organizational documents and neither the Company nor any
        of its
        Subsidiaries is in default (and no event has occurred which with notice or
        lapse
        of time would result in a default) under, and neither the Company nor any
        of its
        Subsidiaries has taken any action or failed to take any action that would
        give
        to others any rights of termination, amendment, acceleration or cancellation
        of,
        any agreement or instrument to which the Company or any of its Subsidiaries
        is a
        party or by which any property or assets of the Company or any of its
        Subsidiaries is bound or affected, except for possible defaults as would
        not,
        individually or in the aggregate, have a Material Adverse Effect. Except
        with
        respect to any additional listing applications and other filings related
        to the
        listing of the Shares to be filed with the NASD as specifically contemplated
        by
        this Agreement and as required under the 1933 Act and any applicable state
        securities laws, the Company is not required to obtain any consent,
        authorization or order of, or make any filing or registration with, any court,
        governmental agency, regulatory agency, self regulatory organization or stock
        market or any third party in order for it to execute, deliver or perform
        any of
        its obligations under the Transaction Documents. All consents, authorizations,
        orders, filings and registrations that the Company is required to effect
        or
        obtain pursuant to the preceding sentence have been obtained or effected
        on or
        prior to the date hereof. 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            6

        

      

       

      (f) Since
        December 31, 2005, the Company has timely filed all reports, schedules, forms,
        statements and other documents required to be filed by it with the SEC pursuant
        to the reporting requirements of the 1933 Act and the Securities Exchange
        Act of
        1934, as amended (the “Exchange Act”) (all of the foregoing filed prior to the
        date hereof and all exhibits included therein and financial statements and
        schedules thereto and documents (other than exhibits to such documents)
        incorporated by reference therein, being hereinafter referred to herein as
        the
“SEC Documents”), or has timely filed for a valid extension of such time of
        filing and has filed any such SEC Documents prior to the expiration of any
        such
        extension. As of their respective dates, the SEC Documents complied in all
        material respects with the requirements of the 1933 Act and the Exchange
        Act and
        the rules and regulations of the SEC promulgated thereunder applicable to
        the
        SEC Documents, and none of the SEC Documents, at the time they were filed
        with
        the SEC, contained any untrue statement of a material fact or omitted to
        state a
        material fact required to be stated therein or necessary in order to make
        the
        statements therein, in light of the circumstances under which they were made,
        not misleading.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            7

        

      

       

      (g) As
        of
        their respective dates, the financial statements of the Company included
        in the
        SEC Documents complied as to form in all material respects with applicable
        accounting requirements and the published rules and regulations of the SEC
        with
        respect thereto. Such financial statements have been prepared in accordance
        with
        United States generally accepted accounting principles, consistently applied,
        during the periods involved (except (i) as may be otherwise indicated in
        such
        financial statements or the notes thereto, or (ii) in the case of unaudited
        interim statements, to the extent they may not include footnotes, year end
        adjustments or may be condensed or summary statements) and fairly present
        in all
        material respects the consolidated financial position of the Company and
        its
        consolidated Subsidiaries as of the dates thereof and the consolidated results
        of their operations and cash flows for the periods then ended (subject, in
        the
        case of unaudited statements, to normal year-end audit adjustments). Except
        as
        set forth in the financial statements of the Company included in the SEC
        Documents, the Company has no liabilities, contingent or otherwise, other
        than
        liabilities incurred in the ordinary course of business subsequent to December
        31, 2006, and obligations under contracts and commitments incurred in the
        ordinary course of business and not required under generally accepted accounting
        principles to be reflected in such financial statements, which, individually
        or
        taken in the aggregate would not reasonably be expected to have a Material
        Adverse Effect.

      

      (h) The
        Company has established and maintains disclosure controls and procedures
        (as
        such term is defined in Rule 13a-15(e) under the Exchange Act). Such disclosure
        controls and procedures: (i) are designed to ensure that material information
        relating to the Company and its Subsidiaries is made known the Company’s chief
        executive officer and its chief financial officer by others within those
        entities, particularly during the periods in which the Company’s reports and
        filings under the Exchange Act are being prepared, (ii) have been evaluated
        for
        effectiveness as of the end of the most recent annual period reported to
        the
        SEC, and (iii) are effective to perform the functions for which they were
        established.

      

      (i) Except
        with respect to the transactions contemplated hereby and by each of the other
        Transaction Documents and except as disclosed in the Disclosure Documents
        or has
        been disclosed in any public disclosure as defined in Section 101(e) of
        Regulations FD promulgated under the Exchange Act, since December 31, 2006:
        (i)
        the Company and each of its Subsidiaries has conducted its business only
        in the
        ordinary course, consistent with past practice, and since that date, no changes
        have occurred which would reasonably be expected to have a Material Adverse
        Effect; and (ii) the Company has not incurred any liabilities (contingent
        or
        otherwise) other than (A) trade payables, accrued expenses and other liabilities
        incurred in the ordinary course of business consistent with past practice
        and
        (B) liabilities not required to be reflected on the Company’s financial
        statements pursuant to GAAP or required to be disclosed in filings made with
        the
        SEC. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            8

        

      

       

      (j) There
        is
        no Action pending or, to the knowledge of the Company or any of its
        Subsidiaries, overtly threatened against or affecting the Company or any
        of its
        Subsidiaries that (i) adversely affects or challenges the legality, validity
        or
        enforceability of the Agreement, or (ii) would, if there were an unfavorable
        decision, have or reasonably be expected to have a Material Adverse Effect.
        Neither the Company nor any of its Subsidiaries, nor any director or officer
        thereof (in his or her capacity as such), is or has been the subject of any
        Action involving a claim of violation of or liability under federal or state
        securities laws or a claim of breach of fiduciary duty. There has not been,
        and
        to the knowledge of the Company, there is not pending any investigation by
        the
        SEC involving the Company or any current or former director or officer of
        the
        Company (in his or her capacity as such). The SEC has not issued any stop
        order
        or other order suspending the effectiveness of any registration statement
        filed
        by the Company under the Exchange Act or the 1933 Act.
        As used
        in this Agreement, “Action” means any action, suit claim, inquiry, notice of
        violation, proceeding (including any partial proceeding such as a deposition)
        or
        investigation against or affecting the Company, any of its Subsidiaries or
        any
        of their respective properties before or by any court, arbitrator, governmental
        or administrative agency, regulatory authority (federal, state, county, local
        or
        foreign), public board, stock market, stock exchange or trading
        facility.

      

      (k) To
        the
        Company’s knowledge, the Company and each of its Subsidiaries owns or possesses
        the requisite licenses or rights to use all patents, patent applications,
        patent
        rights, inventions, know-how, trade secrets, copyrights, trademarks, trademark
        applications, service marks, service names, trade names and copyrights
        (“Intellectual Property”) necessary to enable it to conduct its business as now
        operated (and, to the Company’s knowledge, as presently contemplated to be
        operated in the future); there is no claim or Action by any person pertaining
        to, or proceeding pending, or to the Company’s knowledge threatened, which
        challenges the right of the Company or of a Subsidiary with respect to any
        Intellectual Property necessary to enable it to conduct its business as now
        operated and to the Company’s knowledge, the Company’s or its Subsidiaries’
current products and processes do not infringe on any Intellectual Property
        or
        other rights held by any person, except where any such infringement would
        not
        reasonably be expected to have a Material Adverse Effect.

      

      (l) The
        Company and each of its Subsidiaries has made or filed all federal, state
        and
        foreign income and all other tax returns, reports and declarations required
        by
        any jurisdiction to which it is subject (unless and only to the extent that
        the
        Company and each of its Subsidiaries has set aside on its books provisions
        reasonably adequate for the payment of all unpaid and unreported taxes) and
        has
        paid all taxes and other governmental assessments and charges that are material
        in amount, shown or determined to be due on such returns, reports and
        declarations, except those being contested in good faith and has set aside
        on
        its books provisions reasonably adequate for the payment of all taxes for
        periods subsequent to the periods to which such returns, reports or declarations
        apply. There are no unpaid taxes in any material amount claimed to be due
        by the
        taxing authority of any jurisdiction, and the officers of the Company know
        of no
        basis for any such claim. The Company has not executed a waiver with respect
        to
        the statute of limitations relating to the assessment or collection of any
        foreign, federal, state or local tax. 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            9

        

      

       

      (m) The
        Company and each of its Subsidiaries is in possession of all material
        franchises, grants, authorizations, licenses, permits, easements, variances,
        exemptions, consents, certificates, approvals and orders necessary to own,
        lease
        and operate its properties and to carry on its business as it is now being
        conducted (collectively, “Permits”), except when the failure to have same would
        not result in a Material Adverse Effect, and would not prohibit or otherwise
        materially interfere with the ability of the Company to continue business
        in the
        ordinary course or perform its obligations under this Agreement and under
        its
        other material agreements. There is no Action pending or, to the knowledge
        of
        the Company, threatened regarding suspension or cancellation of any of the
        Permits. Neither the Company nor any of its Subsidiaries is in conflict with,
        or
        in default or violation of, any of the Permits, except for any such conflicts,
        defaults or violations which, individually or in the aggregate, would not
        reasonably be expected to have a Material Adverse Effect.

      

      (n) Since
        December 31, 2006, except as set forth in any document filed with the SEC,
        no
        event has occurred or, to the knowledge of the Company, circumstance exists
        that
        (with or without notice or lapse of time): (i) may constitute or result in
        a
        violation by the Company or any of its Subsidiaries, or a failure on the
        part of
        the Company or its Subsidiaries to comply with, any Legal Requirement; or
        (ii)
        may give rise to any obligation on the part of the Company or any of its
        Subsidiaries to undertake, or to bear all or any portion of the cost of,
        any
        remedial action of any nature in connection with a failure to comply with
        any
        Legal Requirement, except in either case that would not reasonably be expected
        to have a Material Adverse Effect. Neither the Company nor any of its
        Subsidiaries has received any notice or other communication from any regulatory
        authority or any other person, nor does the Company have any knowledge
        regarding: (x) any actual, alleged, possible or potential violation of, or
        failure to comply with, any Legal Requirement, or (y) any actual, alleged,
        possible or potential obligation on the part of the Company or any of its
        Subsidiaries to undertake, or to bear all or any portion of the cost of,
        any
        remedial action of any nature in connection with a failure to comply with
        any
        Legal Requirement, except in either case that would not reasonably be expected
        to have a Material Adverse Effect.

      

      (o) The
        Company is in compliance in all material respects with the provisions of
        the
        Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated thereunder
        that are applicable to it. 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            10

        

      

       

      (p) “Environmental
        Laws” shall mean, collectively, all Legal Requirements, including any federal,
        state, local or foreign statute, laws, rule, regulation, ordinance, code,
        policy
        or rule of common law or any judicial or administrative interpretation thereof,
        including any judicial or administrative order, consent, decree or judgment,
        relating to pollution or protection of human health, the environment (including,
        without limitation, ambient air, surface water, groundwater, land surface
        or
        subsurface strata) or wildlife, including, without limitation, laws and
        regulations relating to the release or threatened release of chemicals,
        pollutants, contaminants, wastes, toxic substances, hazardous substances,
        petroleum or petroleum products (collectively, “Hazardous Materials”) or to the
        manufacture, processing, distribution, use, treatment, storage, disposal,
        transport or handling of Hazardous Materials. Except
        for such matters as could not, singly or in the aggregate, reasonably be
        expected to result in a Material Adverse Effect, (i) the Company and its
        Subsidiaries have complied and are in compliance with all applicable
        Environmental Laws;
        (ii)
        without limiting the generality of the foregoing, the Company and its
        Subsidiaries have obtained, have complied, and are in compliance with all
        Permits that are required pursuant to Environmental Laws for the occupation
        of
        their respective facilities and the operation of their respective
        businesses;
        (iii)
none
        of
        the Company or its Subsidiaries has received any written notice, report or
        other
        information regarding any actual or alleged violation of Environmental Laws,
        or
        any liabilities or potential liabilities (including fines, penalties, costs
        and
        expenses), including any investigatory, remedial or corrective obligations,
        relating to any of them or their respective facilities arising under
        Environmental Laws, nor, to the knowledge of the Company is there any factual
        basis therefor; (iv)
        there
        are no underground storage tanks, polychlorinated biphenyls, urea formaldehyde
        or other hazardous substances (other than small quantities of hazardous
        substances for use in the ordinary course of the operation of the Company’s and
        its Subsidiaries’ respective businesses, which are stored and maintained in
        accordance and in compliance with all applicable Environmental Laws), in,
        on,
        over, under or at any real property
        owned or
        operated by the Company and/or its Subsidiaries; (v)
        there
        are no conditions existing at any real property or with respect to the Company
        or any of its Subsidiaries that require remedial or corrective action, removal,
        monitoring or closure pursuant to the Environmental Laws;
        and
        (vi) to the knowledge of the Company, neither the Company nor any of its
        Subsidiaries has contractually, by operation of law, or otherwise amended
        or
        succeeded to any liabilities arising under any Environmental Laws of any
        predecessors or any other Person.

      

      (q) Except
        for any lien for current taxes not yet delinquent or which are being contested
        in good faith and by appropriate proceedings, the Company and its Subsidiaries
        have good and marketable title to all real property and all personal property
        owned by them which is material to the business of the Company and its
        Subsidiaries. Any leases of real property and facilities of the Company and
        its
        Subsidiaries are valid and effective in accordance with their respective
        terms,
        except as would not have a Material Adverse Effect.

      

      (r) Except
        pursuant to the Registration Rights Agreement or as described in the
        Subscription Agreements, neither the Company nor any Subsidiary is currently
        subject to any agreement providing any person or entity any rights (including
        piggyback registration rights) to have any securities of the Company or any
        Subsidiary registered with the SEC or registered or qualified with any other
        governmental authority.

       

      (s) The
        Common Stock is registered pursuant to Section 12(g) of the Exchange Act,
        and the Company has taken no action designed to, or which, to the knowledge
        of
        the Company, is likely to have the effect of, terminating the registration
        of
        the Common Stock under the Exchange Act. The Company believes in good faith
        that
        it is eligible to register its Common Stock for resale under Form SB-2
        promulgated under the 1933 Act.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            11

        

      

       

      (t) No
        labor
        or employment dispute exists or, to the knowledge of the Company, is imminent
        or
        threatened, with respect to any of the employees of the Company that has,
        or
        could reasonably be expected to have, individually or in the aggregate, a
        Material Adverse Effect.

      

      (u) Except
        as
        set forth in the SEC Documents, none of the officers or directors of the
        Company, and to the knowledge of the Company, none of the employees of the
        Company, is presently a party to any transaction or agreement with the Company
        (other than for services as employees, officers and directors) exceeding
        $60,000, including any contract, agreement or other arrangement providing
        for
        the furnishing of services to or by, providing for rental of real or personal
        property to or from, or otherwise requiring payments to or from any officer,
        director or such employee or, to the knowledge of the Company, any entity
        in
        which any officer, director, or any such employee has a substantial interest
        or
        is an officer, director, trustee or partner.

      

      (v) The
        Company and its Subsidiaries have insurance policies in full force and effect
        of
        a type, covering such risks and in such amounts, and having such deductibles
        and
        exclusions as are customary for conducting businesses and owing assets similar
        in nature and scope to those of the Company and its Subsidiaries. The amounts
        of
        all such insurance policies and the risks covered thereby are in accordance
        in
        all material respects with all material contracts and agreements to which
        the
        Company and/or its Subsidiaries is a party and with all applicable Legal
        Requirements. With respect to each such insurance policy: (i) the policy
        is
        valid, outstanding and enforceable in accordance with its terms, except as
        such
        enforceability may be limited by applicable bankruptcy, insolvency,
        reorganization, moratorium or other similar laws in effect that limit creditors’
rights generally, equitable limitations on the availability of specific remedies
        and principles of equity (regardless of whether such enforcement is considered
        in a proceeding in law or in equity); (ii) neither the Company nor any of
        its
        Subsidiaries is in breach or default with respect to its obligations thereunder
        in any material respect; and (iii) no party to the policy has repudiated,
        or
        given notice of an intent to repudiate, any provision thereof.

      

      (w) The
        Company will file with the SEC a Form 8-K disclosing the Offering within
        four
        (4) business days of the final Closing of the Offering and attach the relevant
        agreements to such Form 8-K. 

      

      (x) The
        Company understands and confirms that each Subscriber will rely on the
        representations and covenants contained in the Subscription Agreement in
        effecting the transactions contemplated thereby and the other Transaction
        Documents. All representations and warranties provided to the Subscriber,
        including the disclosures in the Company’s disclosure schedules attached thereto
        furnished by or on behalf of the Company, taken as a whole are true and correct
        and do not contain any untrue statement of material fact or omit to state
        any
        material fact necessary in order to make the statements made therein, in
        the
        light of the circumstances under which they were made, not misleading. No
        event
        or circumstance has occurred or information exists with respect to the Company
        or its Subsidiaries or its or their businesses, properties, prospects,
        operations or financial conditions, which, under applicable law, rule or
        regulation, requires public disclosure or announcement by the Company but
        which
        has not been so publicly announced or disclosed. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            12

        

      

      

      (y) The
        Company is not and, after giving effect to the offering and sale of the Shares,
        will not be an “investment company” or an entity “controlled” by an “investment
        company,” as such terms are defined in the Investment Company Act of 1940, as
        amended.

       

      (z) Except
        as
        otherwise required by applicable law or the rules of any regulatory agency
        and
        to make a formal announcement of the closing of this Offering, the Company
        shall
        not, during the period commencing on the date hereof and ending thirty (30)
        days
        after the Closing Date, issue any press release or other communication, make
        any
        written or oral statement to any media organization or publication or hold
        any
        press conference, presentation or seminar, or engage in any other publicity
        with
        respect to the Company, its financial condition, results of operations,
        business, properties, assets, or liabilities, or the Offering, without the
        prior
        written consent of the Placement Agent except in the ordinary course of business
        and not for the purpose of soliciting any interest in the Offering.

       

      (aa) All
        employee benefit plans established, maintained or contributed by the Company
        and
        the Subsidiaries comply in all material respects with requirements of the
        Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and no
        such plan incurred or assumed any “accumulated funding deficiency” within the
        meaning of Section 302 of ERISA or has incurred or assumed any material
        liability to the Pension Benefit Guaranty Corporation.

       

      (bb) In
        connection with the Offering, the Company has not distributed any offering
        materials or made any representation, written or oral, other than as contained
        in, or in the case of oral communications, consistent with, the Offering
        Documents.

       

      (cc) The
        Company has not relied upon the Placement Agent or legal counsel for the
        Placement Agent for any legal, tax or accounting advice in connection with
        the
        offering and sale of the Shares.

       

      3. Representations
        and Warranties of the Placement Agent.
        The
        Placement Agent represents and warrants to the Company as follows:

       

      (a) The
        Placement Agent is registered as a broker-dealer under applicable federal
        and
        state law, is a member in good standing of NASD and has met and will continue
        to
        meet all registration, licensing, financial and reporting requirements it
        is
        required to meet under applicable federal and state laws and regulations
        in
        order to provide the services the Placement Agent has agreed to provide,
        or that
        the Placement Agent contemplates that it will provide, to the Company under
        this
        Agreement or otherwise in connection with the Subscription Offering.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            13

        

      

       

      (b) The
        Placement Agent will not provide any service or engage in any activity, and
        it
        will not permit any of its employees, agents, representatives or affiliates
        (including any Selected Dealer) to provide any service or engage in any
        activity, whether pursuant to this Agreement or otherwise in connection with
        the
        sale of the Shares, for which it does not have in effect all registrations,
        licenses and approvals necessary to cause that service or activity to comply
        with applicable federal and state laws and regulations.

       

      (c) The
        Placement Agent agrees that any employees, agents or representatives of any
        of
        the Placement Agent’s affiliates that provide any services to the Company under
        this Agreement or otherwise in connection with the sale of the Shares will
        be
        considered, for purposes of the Placement Agent’s agreements, representations,
        warranties and obligations under this Agreement to also be employees, agents,
        or
        representatives of the Placement Agent.

       

      (d) Notwithstanding
        anything contained in this Agreement to the contrary, the terms and conditions
        of the sale of the Shares as described in the Offering Documents shall control
        the conduct of the sale of the Shares, and neither the Placement Agent nor
        any
        of its respective employees, agents, representatives or affiliates shall
        take
        any action in connection with the sale of the Shares contrary to those terms
        and
        conditions.

       

      (e) In
        connection with or during the course of the sale of the Shares, neither the
        Placement Agent nor any employee, agent, representative or affiliate of the
        Placement Agent will make any representation or provide any information to
        any
        subscriber or potential subscriber for the Shares other than the representations
        and information contained in the Offering Documents or other information
        specifically approved by the Company’s Chief Executive Officer or Chief
        Financial Officer.

       

      (f) During
        the course of the sale of the Shares, only the directors or officers of the
        Company are authorized to receive or accept from a subscriber any subscription
        and/or payment. In the event that any subscription or payment comes into
        the
        possession of the Placement Agent or any of its respective employees, agents,
        representatives or affiliates, it or he will immediately deliver the same
        to an
        officer or director of the Company.

       

      (g) This
        Agreement has been duly and validly authorized, executed and delivered by
        the
        Placement Agent and is a valid and binding agreement and obligation of the
        Placement Agent.

       

      (h) In
        connection with the sale of the Shares, the Placement Agent has not and will
        not:

       

      
        	 	
                a.

              	
                engage
                  in general advertising;

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            14

        

      

       

      
        	 	
                b.

              	
                to
                  its knowledge, solicit a subscription for Shares from an offeree
                  unless
                  the Company, its officers or directors, or the Placement Agent
                  has a
                  “preexisting relationship” with the offeree;
                  or

              

      

       

      
        	 	
                c.

              	
                otherwise
                  violate the requirements for the exemption from the registration
                  requirements of the Securities Act provided by Rule 506 of Regulation
                  D.

              

      

       

      4. Closing;
        Placement and Fees.

       

      (a) Closing.
        The
        Closing shall occur as provided in the Subscription Agreements or any other
        such
        time and date and may be mutually agreed upon by the parties hereto (the
        “Closing Date”). On the Closing Date, payment for the Shares issued and sold by
        the Company shall be made to the Company in immediately available funds against
        delivery of certificates evidencing the Common Stock comprising such Shares.
        The
        parties shall evidence the payments made pursuant to this agreement by execution
        of a cross receipt at Closing. 

       

      (b) Conditions
        to Placement Agent’s Obligations.
        The
        obligations of the Placement Agent hereunder are subject to the accuracy
        of the
        representations and warranties of the Company herein contained as of the
        date
        hereof and as of the Closing Date, to the performance by the Company of its
        obligations hereunder and to the following additional conditions:

       

      
        	 	
                1.

              	
                Due
                  Qualification or Exemption.
                  (A) The Offering contemplated by this Agreement shall become qualified
                  or
                  be exempt from qualification under the securities laws of the
                  jurisdictions in which the Shares are contemplated to be offered
                  not later
                  than the Closing Date, subject to any filings to be made thereafter
                  and
                  (B) at the Closing Date, no stop order suspending the sale of the
                  Shares
                  shall have been issued, and no proceeding for that purpose shall
                  have been
                  initiated or threatened;

              

      

       

      
        	 	
                2.

              	
                No
                  Material Misstatements.
                  Neither the Blue Sky qualification materials, the Offering Documents,
                  nor
                  any attachment or supplement thereto, will contain an untrue statement
                  of
                  a fact, which in the opinion of the Placement Agent, is material,
                  or omit
                  to state a fact, which, in the opinion of the Placement Agent,
                  is material
                  and is required to be stated therein, or is, in the opinion of
                  the
                  Placement Agent, necessary to make the statements therein, in light
                  of the
                  circumstances under which they were made, not
                  misleading;

              

      

       

      
        	 	
                3.

              	
                Compliance
                  with Agreements.
                  The Company shall have complied with all agreements and satisfied
                  all
                  conditions on its part to be performed or satisfied hereunder and
                  under
                  the Subscription Agreements at or prior to each
                  Closing;

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            15

        

      

       

      
        	 	
                4.

              	
                Corporate
                  Action.
                  The Company shall have taken all corporate action necessary in
                  order to
                  permit the valid execution, delivery and performance of the Offering
                  Documents by the Company, including, without limitation, obtaining
                  the
                  approval of the Company’s board of directors, for the execution and
                  delivery of the Offering Documents, the performance by the Company
                  of its
                  obligations hereunder and the Offering contemplated
                  hereby;

              

      

       

      
        	 	
                5.

              	
                Opinion
                  of Counsel to the Company.
                  The Placement Agent shall have received an opinion of counsel to
                  the
                  Company, dated as of the Closing Date, in substantially the same
                  form as
                  delivered to the Subscribers;

              

      

       

      
        	 	
                6.

              	
                Officer’s
                  Certificate.
                  At the Closing, the Placement Agent shall receive a certificate
                  of the
                  Chief Executive Officer and Chief Financial Officer of the Company,
                  dated
                  as of the Closing Date, to the effect that (i) they have carefully
                  examined the Memorandum and, as of its date, and the time of purchase,
                  the
                  Memorandum did not contain any untrue statement of a material fact
                  or omit
                  to state a material fact necessary in order to make the statements
                  therein, in the light of the circumstances under which they were
                  made, not
                  misleading; (ii) there has not been, since the respective dates
                  as of
                  which information is given in the Memorandum, any material adverse
                  change
                  in the financial condition or in the management, earnings, capital,
                  properties, business prospects or business affairs of the Company,
                  considered as one enterprise, whether or not arising in the ordinary
                  course of business; (iii) the representations and warranties of
                  the
                  Company contained in this Agreement and the Subscription Agreements
                  are
                  true and correct with the same force and effect as though made
                  at and as
                  of the Closing Date; (iv) the Company has complied in all material
                  respects with all material agreements and satisfied all conditions
                  on its
                  part to be performed or satisfied under this Agreement and the
                  Subscription Agreements at or prior to the Closing Date including
                  the
                  conditions contained in this Section 4; (v) no stop order has been
                  issued
                  or, to their knowledge, is threatened, by any regulatory agency,
                  or any
                  other federal or state authority; (vi) no order suspending the
                  Offering
                  has been issued and to their knowledge, no proceedings for any
                  such
                  purpose have been initiated or threatened by any regulatory agency
                  or any
                  other federal or state authority.

              

      

       

      (c) Blue
        Sky.
        A
        summary blue sky survey shall be prepared by counsel to the Company and
        delivered to the Placement Agent prior to the Closing, and shall state the
        extent to which and the conditions upon which offers and sales of the Shares
        may
        be made in certain jurisdictions. It is understood that such survey may be
        based
        on or rely upon (i) the representations of each Subscriber set forth in the
        Subscription Agreement delivered by such Subscriber, (ii) the representations,
        warranties and agreements of the Company set forth in Section 2 of this
        Agreement, (iii) the representations and warranties of the Placement Agent,
        and
        (iv) the representations of the Company set forth in the certificate to be
        delivered at each Closing pursuant to paragraph (vi) of Section 5(b)
        hereof.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            16

        

      

      

      (d) Placement
        Fees and Expenses.
        Simultaneously with payment for, and delivery of, the Shares at the Closing
        as
        provided in Section 4(a) above, the Company shall at such Closing pay to
        the
        Placement Agent, as consideration for the Placement Agent’s services in
        connection with the Offering, a fee equal to six percent (6%) of the gross
        value
        of the Common Stock placed by the Placement Agent for sale. In addition,
        the
        Company agrees to provide the Placement Agent with warrants to purchase a
        number
        of shares of Common Stock equal to 6% of the number of shares of Common Stock
        placed by the Placement Agent. The warrants will have the same provisions
        as the
        warrants offered to investors participating in this Offering. Whether or
        not the
        closing of the Offering occurs, the Company shall reimburse the Placement
        Agent
        for all reasonable out-of-pocket expenses incurred by the Placement Agent
        in
        connection with its engagement hereunder (including, without limitation,
        reasonable fees and expenses of legal counsel to the Placement Agent); provided,
        however, that without the written consent of the Company, the amount of such
        reimbursable expenses shall not exceed $45,000 in the aggregate. Reimbursement
        of such expenses shall be made by the Company promptly following submission
        by
        the Placement Agent of invoices therefore from time to time. The Company
        shall
        also pay all expenses in connection with the qualification of the Shares
        under
        the securities or Blue Sky laws of the states which the Placement Agent shall
        designate. 

       

      (e) No
        Adverse Changes.
        There
        shall not have occurred, at any time prior to the Closing (i) any domestic
        or
        international event, act or other similar occurrence which has disrupted,
        or in
        the Placement Agent’s sole determination, will materially disrupt the securities
        markets; (ii) a general suspension of, or a general limitation on prices
        for,
        trading in securities on the New York Stock Exchange, the American Stock
        Exchange, the NASDAQ Global or Capital Market, or on the OTC Bulletin Board
        for
        a minimum of one-trading day; (iii) any outbreak of major hostilities or
        other
        national or international calamity having a material effect on the performance
        of this Agreement; (iv) any banking moratorium declared by a state or federal
        authority; (v) any moratorium declared in foreign exchange trading by major
        international banks or other persons; (vi) any material interruption in the
        mail
        service or other means of communication within the United States; (vii) any
        materially adverse change in the business, properties, assets, results of
        operations, prospects or financial condition of the Company; or (viii) any
        change in the market for securities in general or in political, financial,
        or
        economic conditions which, in the Placement Agent’ reasonable judgment, makes it
        inadvisable to proceed with the offering, sale, and delivery of the
        Shares.

       

      5. Covenants
        of the Company.

       

      (a) Use
        of
        Proceeds.
        The net
        proceeds of the Offering shall be used by the Company substantially as set
        forth
        in the Memorandum.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            17

        

      

       

      (b) Expenses
        of Offering.
        The
        Company shall be responsible for and shall bear all expenses incurred in
        connection with the Offering, including but not limited to, the costs of
        preparing and duplicating the Memorandum and all exhibits thereto; preparing,
        duplicating and delivering exhibits thereto and copies of a preliminary,
        final
        and supplemental prospectus; preparing, duplicating and delivering (including
        by
        facsimile) all selling documents, including but not limited to the Memorandum,
        this Agreement, the Subscription Agreements, the blue sky memoranda and stock
        certificates; blue sky fees, filing fees and reasonable legal fees, expenses
        and
        disbursements of the Placement Agent’s counsel (subject to the limitations set
        forth in Section 4(d) above); and the cost of a reasonable number of closing
        books for the Placement Agent and its counsel. 

       

      (c) Notification.
        The
        Company shall notify the Placement Agent immediately, and in writing, (i)
        when
        any event shall have occurred during the period commencing on the date hereof
        and ending on the Closing Date as a result of which the Offering Documents
        would
        include any untrue statement of a material fact or omit to state any material
        fact required to be stated therein or necessary to make the statements therein
        not misleading in light of the circumstances under which they were made,
        and
        (ii) of the receipt of any notification with respect to the modification,
        rescission, withdrawal or suspension of the qualification or registration
        of the
        Common Stock, or of any exemption from such registration or qualification,
        in
        any jurisdiction. The Company will use its best efforts to prevent the issuance
        of any such modification, rescission, withdrawal or suspension and, if any
        such
        modification, rescission, withdrawal or suspension is issued and the Placement
        Agent so requests, to obtain the lifting thereof as promptly as
        possible.

       

      (d) Blue
        Sky.
        The
        Company shall use its best efforts to qualify the Shares for offering and
        sale
        under exemptions from qualification or registration requirements under the
        securities or “blue sky” laws of such jurisdictions as the Placement Agent may
        reasonably request; provided however, that the Company will not be obligated
        to
        qualify as a dealer in securities in any jurisdiction in which it is not
        so
        qualified or to sign a general consent to service of process in any such
        jurisdiction. The Company will not consummate any sale of Shares in any
        jurisdiction in which it is not so qualified or in any manner in which such
        sale
        may not be lawfully made.

       

      (e) Form
        D
        Filing.
        The
        Company shall file required copies of a Notice of Sales of Securities on
        Form D
        with the SEC no later than fifteen (15) days after the first Closing Date.
        The
        Company shall promptly file such amendments to such Notices on Form D as
        shall
        become necessary and shall also comply with any filing requirement imposed
        by
        the laws of any state or jurisdiction in which offers and sales are made.
        The
        Company shall furnish the Placement Agent with copies of all such filings
        and
        pay any applicable fees related thereto.

       

      (f) Press
        Releases, Etc.
        Except
        as otherwise required by applicable law or the rules of any regulatory agency,
        the Company shall not, during the period commencing on the date hereof and
        ending thirty (30) days after the Closing Date, issue any press release or
        other
        communication, make any written or oral statement to any media organization
        or
        publication or hold any press conference, presentation or seminar, or engage
        in
        any other publicity with respect to the Company, their financial condition,
        results of operations, business, properties, assets, or liabilities, or the
        Offering, without the prior written consent of the Placement Agent except
        in the
        ordinary course of business and not for the purpose of soliciting any interest
        in the Offering. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            18

        

      

       

      (g) No
        Offerings.
        Pending
        completion or termination of the Offerings in accordance with the terms of
        this
        Agreement, the Company agrees that for a period of 180 days following closing
        of
        the Offering, it shall not, without the written consent of Placement Agent,
        enter into an agreement (whether binding or not) with any other person or
        entity
        relating to a possible public or private offering or placement of its securities
        (in connection with a corporate partnership, strategic alliance or government
        funding) or any other transaction which would prevent the consummation of
        the
        Offering, other than (i) any shares of Common Stock issuable upon exercise
        of
        warrants or options described in the Memorandum or (ii) any options to purchase
        Common stock granted pursuant to the Company’s stock option plan described in
        the Subscription Agreements.

       

      (h) Lock-Up
        Agreement.
        The
        Company agrees that its directors, executive officers, and beneficial owners
        of
        five percent (5%) or more of the Company’s Common Stock, shall not, for a period
        of 180 days from the date of the completion of this Offering, sell, assign
        or
        transfer any of their shares of the Company’s securities without the Placement
        Agent’s prior written consent, other than to satisfy the exercise price and/or
        tax withholding obligations in connection with the exercise of stock options
        granted by the Company (provided that prior notice is given to the Placement
        Agent).

       

      (i) No
        Statements.
        The
        Company shall not use the name of the Placement Agent or any officer, director,
        employee or shareholder thereof without the express written consent of such
        party and such person.

       

      (j) Right
        of First Refusal.
        The
        Placement Agent shall have a right of first refusal to act as the placement
        agent on the next succeeding private or public offering by the Company of
        any
        equity or debt securities conducted during the 24-month period following
        the
        closing of the Offering. Terms for any equity offering will be on substantially
        the same terms set forth in this Agreement, including the same economic terms
        as
        set forth in Section 4(d) hereof unless otherwise negotiated by the parties
        to
        this Agreement. Terms for any debt offering shall be negotiated by the parties
        of this Agreement, including payment to the placement agent of a cash fee
        of no
        more than 3% of the principal value of the investment. Such rights shall
        survive
        for a period of 24 months from the Closing Date or, if earlier, until the
        completion of the next succeeding offering

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            19

        

      

       

      6. Indemnification.

       

      (a) The
        Company agrees to indemnify and hold harmless the Placement Agent and each
        Selected Dealer, if any, and their respective partners, affiliates,
        shareholders, directors, officers, agents, advisors, representatives, employees,
        counsel and controlling persons within the meaning of the Act (a “Placement
        Agent Indemnified Party”) from and against any and all losses, liabilities,
        claims, damages and expenses whatsoever (and all actions in respect thereof),
        and to reimburse the Placement Agent Indemnified Party for reasonable legal
        fees
        and related expenses as incurred (including, but not limited to the costs
        of
        giving testimony or furnishing documents in response to a subpoena or otherwise,
        the costs of investigating, preparing, pursuing or defending any such action
        or
        claim, whether or not pending or threatened, whether or not resulting in
        any
        liability, and whether or not the Placement Agent or any Placement Agent
        Indemnified Party is a party thereto), insofar as such losses, liabilities,
        claims, damages or expenses arise out of, relate to, whether or not resulting
        in
        any liability, are in incurred in connection with or are in any way a result
        of
        (i) the engagement of the Placement Agent pursuant to this Agreement and
        in
        connection with the transactions contemplated by this Agreement and the other
        Offering Documents (the “Engagement”), including any modifications or future
        additions to such Engagement and related activities prior to the date hereof,
        (ii) any act by either the Placement Agent or any Placement Agent Indemnified
        Party taken in connection with the Engagement pursuant to and in accordance
        with
        this Agreement, except if such Placement Agent or Placement Agent Indemnified
        Party was grossly negligent or engaged in willful misconduct, (iii) a breach
        of
        any representation, warranty, covenant, or agreement of the Company contained
        in
        this Agreement, (iv) the employment by the Company or any Subsidiary of any
        device, scheme or artifice to defraud, or the engaging by the Company or
        any
        Subsidiary in any act, practice or course of business which operates or would
        operate as a fraud or deceit, or any conspiracy with respect thereto, in
        connection with the sale of the Shares, or (v) any untrue statement or alleged
        untrue statement of a material fact contained in the Offering Documents or
        the
        omission or alleged omission therefrom of a material fact necessary in order
        to
        make the statements therein, in light of the circumstances under which they
        were
        made, not misleading, provided, however, that the Company will not be liable
        in
        any such case to the extent that any such loss, claim, damage, liability
        or
        expense arises out of or is based upon an untrue statement or alleged untrue
        statement or omission or alleged omission so made in conformity with information
        furnished by any such Placement Agent Indemnified Party in writing for use
        in
        the Offering Documents. In addition, the Company shall not be liable for
        any
        amounts paid in the settlement of any loss, claim, damage, liability, or
        action
        if such settlement is effected without the consent of the Company (which
        such
        consent shall not be unreasonably withheld). Any advancement of expenses
        pursuant to this Section need only be made by the Company to a Placement
        Agent
        Indemnified Party if such party first agrees in form and substance reasonably
        satisfactory to the Company to repay any such amounts promptly to the Company,
        as the case may be, if it is later determined that such person or entity
        acted
        in bad faith, was grossly negligent or whose misconduct was
        willful.

       

      (b) The
        Company agrees to indemnify and hold harmless a Placement Agent Indemnified
        Party to the same extent as the foregoing indemnity, and subject to the
        limitations set forth therein, against any and all loss, liability, claim,
        damage and expense whatsoever directly arising out of the exercise by any
        person
        of any right under the 1933 Act or the Exchange Act or the securities or
        Blue
        Sky laws of any state on account of violations of the representations,
        warranties or agreements set forth in Section 2 hereof.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            20

        

      

       

      (c) The
        Placement Agent agrees to indemnify and hold harmless the Company, the Company’s
        directors, officers, employees, counsel, advisors, representatives, agents
        and
        controlling persons within the meaning of the Act (a “Company Indemnified
        Party”) and each and all of them, to the same extent as set forth in Section
        6(a)(v) of the foregoing indemnity from the Company to the Placement Agent,
        but
        only with reference to information regarding the Placement Agent furnished
        in
        writing to the Company by the Placement Agent for use in the Offering Documents
        and only to the extent that any losses, claims, damages, and liabilities
        in
        respect of which indemnification is claimed are finally judicially determined
        to
        have resulted primarily and directly from the bad faith or gross negligence
        of
        the Placement Agent.

       

      (d) Promptly
        after receipt by a person entitled to indemnification pursuant to subsection
        (a), (b), or (c) (an “indemnified party”) of this Section of notice of the
        commencement of any action, the indemnified party will, if a claim in respect
        thereof is to be made against a person granting indemnification (an
“indemnifying party”) under this Section, notify in writing the indemnifying
        party of the commencement thereof; but the omission so to notify the
        indemnifying party will not relieve it from any liability which it may have
        to
        the indemnified party otherwise than under this Section. In case any such
        action
        is brought against an indemnified party, and it notifies the indemnifying
        party
        of the commencement thereof, the indemnifying party will be entitled to
        participate in, and, to the extent that it may wish, jointly with any other
        indemnifying party similarly notified, to assume the defense thereof, subject
        to
        the provisions herein stated, with counsel reasonably satisfactory to the
        indemnified party, and after notice from the indemnifying party to the
        indemnified party of its election so to assume the defense thereof, the
        indemnifying party will not be liable to the indemnified party for any legal
        or
        other expenses subsequently incurred by the indemnified party in connection
        with
        the defense thereof other than reasonable costs of investigation incurred
        at the
        request of the indemnifying party. The indemnified party shall have the right
        to
        employ separate counsel in any such action and to participate in the defense
        thereof, but the fees and expenses of such counsel shall not be at the expense
        of the indemnifying party if the indemnifying party has assumed the defense
        of
        the action with counsel reasonably satisfactory to the indemnified party;
        provided that the reasonable fees and expenses of such counsel shall be at
        the
        expense of the indemnifying party if (i) the employment of such counsel has
        been
        specifically authorized in writing by the indemnifying party or (ii) the
        named
        parties to any such action (including any impleaded parties) include both
        the
        indemnified party or parties and the indemnifying party and, in the opinion
        of
        counsel of the indemnified party, a conflict of interest exists between such
        parties in which case the indemnifying party shall not have the right to
        assume
        the defense of such action on behalf of the indemnified party or parties,
        it
        being understood, however, that the indemnifying party shall not, in connection
        with any one such action or separate but substantially similar or related
        actions in the same jurisdiction arising out of the same general allegations
        or
        circumstances, be liable for the reasonable fees and expenses of more than
        one
        separate firm of attorneys for the indemnified party or parties (plus local
        counsel). No settlement, compromise, consent to entry of judgment or other
        termination of any action (collectively, “Terminations”) in respect of which a
        Placement Agent Indemnified Party may seek indemnification hereunder (whether
        or
        not any Placement Agent Indemnified Party is a party thereto) shall be made
        without the prior written consent of the Placement Agent Indemnified Party,
        which such consent may be withheld at the sole discretion of such Placement
        Agent Indemnified Party, provided, however, that the foregoing requirement
        of
        prior written consent for Terminations shall not apply to the Placement Agent
        who may agree to such Terminations on behalf of a Placement Agent Indemnified
        Party without the prior written consent of any Placement Agent Indemnified
        Party.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            21

        

      

       

      (e) Notwithstanding
        any of the provisions of this Agreement, the aggregate indemnification or
        contribution of the Placement Agent for or on account of any losses, claims,
        damages, liabilities or actions under this Section 6, Section 7 or any other
        applicable section of this Agreement, shall not
        exceed
        the cash fees actually paid to the Placement Agent, except to the extent
        such
        losses, claims, damages, liabilities or actions are finally judicially
        determined to have resulted primarily and directly from the bad faith or
        willful
        misconduct of the Placement Agent. The respective indemnity and contribution
        agreements by the Company and the Placement Agent contained in subsections
        (a),
        (b), (c) and (d) of this Section 6 and Section 7, and the covenants,
        representations and warranties of the Company and the Placement Agent set
        forth
        in this Agreement shall remain operative and in full force and effect regardless
        of (i) any investigation made by the Placement Agent, on the Placement Agent’s
        behalf or by or on behalf of any person who controls the Placement Agent,
        the
        Company or any controlling person of the Company or any director or officer
        of
        the Company, (ii) acceptance of any of the Shares and payment therefor, or
        (iii)
        any termination of this Agreement, and shall survive the delivery of the
        Shares,
        and any successor of the Placement Agent or of the Company or of any person
        who
        controls the Placement Agent or the Company, as the case may be, shall be
        entitled to the benefit of such respective indemnity and contribution
        agreements. The respective indemnity and contribution agreements by the Company
        and the Placement Agent contained in subsections (a), (b) and (c) of this
        Section 6 and Section 7 shall be in addition to any liability which the Company
        and the Placement Agent may otherwise have.

       

      7. Contribution.
        To
        provide for just and equitable contribution, if (i) an indemnified party
        makes a
        claim for indemnification pursuant to Section 6 but it is found in a final
        judicial determination, by a court of competent jurisdiction, not subject
        to
        further appeal, that such indemnification may not be enforced in such case,
        even
        though this Agreement expressly provides for indemnification in such case,
        or
        (ii) any indemnified or indemnifying party seeks contribution under the 1933
        Act, the Exchange Act, or otherwise, then the Company (including for this
        purpose any contribution made by or on behalf of any officer, director, employee
        or agent for the Company, or any controlling person of the Company), on the
        one
        hand, and the Placement Agent and any Selected Dealers (including for this
        purpose any contribution by or on behalf of an indemnified party), on the
        other
        hand, shall contribute to the losses, liabilities, claims, damages, and expenses
        whatsoever to which any of them may be subject, in such proportions as are
        appropriate to reflect the relative benefits received by the Company, on
        the one
        hand, and the Placement Agent and the Selected Dealers, on the other hand;
        provided, however, that if applicable law does not permit such allocation,
        then
        other relevant equitable considerations such as the relative fault of the
        Company, the Placement Agent and the Selected Dealers in connection with
        the
        facts which resulted in such losses, liabilities, claims, damages, and expenses
        shall also be considered. In no case shall the Placement Agent or a Selected
        Dealer be responsible for a portion of the contribution obligation in excess
        of
        the cash fees actually received by it pursuant to this Agreement. No person
        guilty of a fraudulent misrepresentation shall be entitled to contribution
        from
        any person who is not guilty of such fraudulent misrepresentation. For purposes
        of this Section 7, each person, if any, who controls either of the Placement
        Agent or a Selected Dealer within the meaning of Section 15 of the Act or
        Section 20(a) of the Exchange Act and each officer, director, stockholder,
        employee and agent of the Placement Agent or a Selected Dealer, shall have
        the
        same rights to contribution as the Placement Agent or the Selected Dealer,
        and
        each person, if any who controls the Company within the meaning of Section
        15 of
        the 1933 Act or Section 20(a) of the Exchange Act and each officer, director,
        employee and agent of the Company, shall have the same rights to contribution
        as
        the Company, subject in each case to the provisions of this Section 7. Anything
        in this Section 7 to the contrary notwithstanding, no party shall be liable
        for
        contribution with respect to the settlement of any claim or action effected
        without its written consent. This Section 7 is intended to supersede any
        right
        to contribution under the Act, the Exchange Act, or otherwise.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

          FIG
            Partners, L.L.C.

          August
            31, 2007

          Page
            22

        

      

       

      8. Miscellaneous.

       

      (a) Survival.
        Any
        termination of the Offering without the Closing shall be without obligation
        on
        the part of any party except that the provisions regarding fees and expenses
        contained in Section 5(b), the indemnification provided in Section 6 hereof
        and
        the contribution provided in Section 7 hereof shall survive any termination
        and
        shall survive any Closing.

       

      (b) Representations,
        Warranties and Covenants to Survive Delivery.
        Except
        as provided in Section 8(a), the respective representations, warranties,
        indemnities, agreements, covenants and other statements of the Company as
        of the
        date hereof shall survive execution of this Agreement and delivery of the
        Shares
        and the termination of this Agreement.

       

      (c) No
        Other Beneficiaries.
        This
        Agreement is intended for the sole and exclusive benefit of the parties hereto
        and their respective successors and controlling persons, and no other person,
        firm or corporation shall have any third-party beneficiary or other rights
        hereunder.

       

      (d) Governing
        Law; Arbitration.
        This
        Agreement shall be governed by and construed in accordance with the law of
        the
        State of Georgia without regard to conflict of law provisions. Any disputes
        between the parties hereto shall be settled by binding arbitration in Fulton
        County, Georgia.

       

      (e) Counterparts.
        This
        Agreement may be signed in counterparts with the same effect as if both parties
        had signed one and the same instrument.

      
         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

            FIG
              Partners, L.L.C.

            August
              31, 2007

            Page
              23

          

        

         

      

      (f) Notices.
        All
        communications hereunder shall be in writing and, except as otherwise provided
        herein, will be mailed, delivered or telecopied and confirmed as follows:
        if to
        the Placement Agent, to FIG Partners, L.L.C., 100 Colony Square, 1175 Peachtree
        Street, Suite 2250, Atlanta, Georgia 30361, Attention: Christopher S. Edmonds;
        if to the Company, to Northern Oil and Gas, Inc., 130 Lake Street West, Suite
        300, Wayzata, Minnesota 55391, Attention: Ryan Gilbertson.

       

      (g) Termination.
        Subject
        to the general survival provisions contained herein, this Agreement may be
        terminated solely at the discretion of the Placement Agent prior to the Closing
        upon written notice to the Company.

       

      (h) Entire
        Agreement.
        This
        Agreement constitutes the entire agreement of the parties with respect to
        the
        matters herein referred and supersedes all prior agreements and understandings,
        written and oral, between the parties with respect to the subject matter
        hereof.
        Neither this Agreement nor any term hereof may be changed, waived or terminated
        orally, but only by an instrument in writing signed by the party against
        which
        enforcement of the change, waiver or termination is sought.

       

      (i) Independent
        Contractor.
        The
        Placement Agent shall act as an independent contractor and nothing contained
        herein or otherwise shall be construed to create any partnership or joint
        venture between the Placement Agent and the Company.

       

      (j) Headings.
        The
        headings and captions of the various subdivisions of this Agreement are for
        convenience or reference only and shall in no way modify or affect the meaning
        or construction of any of the terms or provisions hereof.

       

      (k) Definition.
        Any
        reference in this Agreement or in any certificate delivered pursuant hereto
        to a
        party’s “knowledge” or other similar expressions relating to the knowledge or
        awareness of any party will include all matters which any of such party’s
        officers or directors actually knew or should have known acting in their
        capacity as an officer or director of such party.

       

      [Signature
        Page Follows]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      If
        the
        foregoing is in accordance with your understanding of our agreement, please
        sign
        and return to us four copies of this Agreement, whereupon this Agreement
        will
        become a binding agreement in accordance with its terms.

      

      
        	 	
                Very
                  truly yours,

              
	 	 
	 	
                NORTHERN
                  OIL AND GAS, INC.

              
	 	 
	 	
                By:
                  

                
                  

                

                Name:
                  

                
                  

                

                Title:
                  

                
                  

                

              

      

      
        	
                The
                  foregoing Placement Agency Agreement

              	 
	
                is
                  hereby confirmed and accepted as of

              	 
	
                the
                  date first above written.

              	 
	 	 
	
                FIG
                  PARTNERS, L.L.C.

              	 
	 	 
	
                By:

                
                  

                

                Name:

                
                  

                

                 Title:Exhibit
      10.5

    

    LOCK-UP/LEAK-OUT
      AGREEMENT

     

    The
      undersigned shareholder of Northern Oil and Gas, Inc. (the “Company”), a Nevada
      corporation, hereby agrees, in exchange for good and valuable consideration
      receipt of which is hereby acknowledged, and in order to create a more orderly
      market for the Company’s common stock, that it will not sell, assign, or pledge,
      hypothecate, or otherwise transfer in any way, directly or indirectly, any
      shares of common stock of the Company, whether such shares are currently held
      or
      acquired in the future, with the exception of shares underlying company option
      grants, prior to the date which is eighteen (18) months after the signing of
      this agreement. This Lock-Up/Leak-Out Agreement prohibits both private and
      public transactions of any kind with the exception of transactions involving
      a
      company buyback or between parties subject to this agreement or any third party
      who agrees in writing to comply with the terms of the Agreement.

     

    This
      Agreement shall be specifically enforceable by the Company by injunction or
      restraining order, in addition to any other remedies for breach which may be
      available by law including, but not limited to, liquidated damages in the amount
      determined to have affected the orderly market for the stock hereby
      covered.

     

    The
      undersigned shall be allowed to sell a maximum of 5,000 shares per day, during
      such running period that the trailing 20 day average daily volume exceeds
      100,000 shares.

     

    This
      agreement shall terminate in the event the Company does not close on a private
      placement of equity by October 1, 2007 at a price per share greater than or
      equal to $2.50 and a gross principal amount greater than or equal to
      $8,000,000.00.

    

    Shares
      Covered by this agreement: ________________ 

     

    Agreed
      to
      this ______ day of August, 2007.

     

    SHAREHOLDER:
      ______________________________

     

    By:       
      _______________________________________

     

    Its:       
      _______________________________________

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