Document:

Employment
Agreement

    

    This
Employment Agreement (the "Agreement") is made
and entered into, effective as of December 31, 2010 (the "Effective Date"), by
and between EnerJex
Resources, Inc.,
a Nevada corporation (the "Company"), and Robert G.
Watson, Jr. ("Employee"), with
reference to the following facts:

    

    Recitals:

    

    The parties have agreed to execute this
Agreement in order to memorialize the terms and conditions on which the Company
shall employ Employee from and after the Effective Date of this
Agreement.

    

    Agreements:

    

    Now,
Therefore, the parties hereto, intending to be legally bound, do hereby
agree as follows:

    

    1.           Position
and Duties

    

    1.1   
     Position
and Title.  The Company
hereby hires Employee to serve as the Chief Executive Officer of the
Company.

    

    (a)        Limits on
Authority.  Employee shall perform his duties as Chief
Executive Officer of the Company pursuant to this Agreement in compliance with
applicable law, consistent with such direction as the Company's Board of
Directors provides to Employee from time to time, and in accordance with
Company's policies and procedures as published from time to time.

    

    (b)        Annual
Reviews.  Following each annual anniversary of the Effective
Date of this Agreement, the Board of Directors may review Employee's performance
of his duties pursuant to this Agreement and advise Employee of the results of
that review.

    

    (c)        Reporting
and Authority.  Employee shall report to the Company's Board of
Directors.  Subject to the power and authority of the Company's Board
of Directors to govern the affairs of the Company, Employee shall have full
authority and responsibility for supervising and managing the daily affairs of
the Company, including (i) working with the Company's Board of Directors to
develop and approve business objectives, policies and plans that improve profit
and growth objectives, (ii) communicating business objectives and plans within
the Company, (iii) ensuring that plans and policies are promulgated to and
implemented by subordinate managers, (iv) directing operations to achieve
planned performance goals and developing management systems to effectively
control each Company unit, (v) ensuring that each operating unit provides those
functions required for achieving its business objectives and that each unit is
properly organized, staffed and directed to fulfill its responsibilities, (vi)
developing the organization and personnel, products, facilities, technology, and
appropriate financial resources to secure the position of the Company and to
facilitate its planned development, (vii) directing periodic reviews of the
Company's strategic market position and combining this information with
corollary analysis of the Company's products and financial resources, (viii)
providing periodic financial information concerning the operations of the
business, human resources and sales growth plans to the Company's Board of
Directors, and (ix) ensuring that the operation of the Company complies with
applicable laws.

    

    1.2   
     Acceptance.  Employee hereby
accepts employment by the Company in the capacity set forth in Section 1.1, above,
and agrees to perform the duties of such position from and after the Effective
Date of this Agreement in a diligent, efficient, trustworthy, and businesslike
manner.  Employee agrees that, to the best of the Employee's ability
and experience, Employee at all times shall loyally and conscientiously
discharge all of the duties and responsibilities imposed upon Employee pursuant
to this Agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    1.3        Business
Time.  Employee shall devote his exclusive business time to the
performance of his duties under this Agreement.  Except with the prior
written approval of the Board of Directors of the Company, Employee may not be
employed by or provide paid consulting services to any business enterprise other
than the Company and its affiliates.

    

    1.4        Location.  Employee
shall perform his duties under this Agreement from the offices maintained by
Employee in San Antonio, Texas, and from the Company's offices in Overland Park,
Kansas.  Employee acknowledges and agrees that from time to time he
shall be required to travel (at the cost and expense of the Company) to other
locations outside of San Antonio, Texas, and Overland Park, Kansas, in order to
discharge his duties under this Agreement.

    

    1.5       
 Term.  The term of this
Agreement shall commence as of the Effective Date and shall expire on December
31, 2012, subject to sooner termination pursuant to Section 4,
below.

    

    2.    
      Compensation.  The
Company shall compensate Employee for his services pursuant to this Agreement as
follows:

    

    2.1        Salary.  The Company shall
pay to Employee an annual salary in the amount of One Hundred Fifty Thousand
Dollars ($150,000.00) ("Base Compensation"),
payable in periodic installments in accordance with the Company's regular
payroll practices as in effect from time to time.  Such annual salary
shall be subject to periodic increases, in such amounts (if any) as the Board of
Directors may determine to be appropriate, at the time of Employee's annual
review pursuant to Section 1.1(b),
above, or at such other times (if any) as the Board of Directors may
select.

    

    2.2        Annual
Bonus.  For each calendar year during the term of this
Agreement, Employee shall be eligible to receive a cash bonus in such amount,
and subject to achievement of such individual and Company-wide performance
criteria, as the Board of Directors determines to be appropriate.

    

    2.3        Company
Stock.  Subject to approval of the Company's Board of
Directors, which the Company shall seek at the first meeting of the Board held
after the Effective Date of this Agreement, the Company shall grant to Employee
an option to purchase nine hundred thousand (900,000) shares of the Company's
Common Stock.  That option will be exercisable at a price per share
equal to the fair market value of the Company's Common Stock on the date on
which that option is approved by the Board, and will be subject to the terms of
the Company's Stock Incentive Plan, as amended and as in effect from time to
time. In no such case will the option exercise price be less than $0.40 per
share.

    

    2.4        Vacation.  Employee shall
accrue four (4) weeks' paid vacation in each period of twelve (12) consecutive
months of employment during the term of this Agreement.  If Employee
accumulates four (4) weeks' accrued and unused vacation time, then further
accruals shall cease until Employee's accrued and unused vacation time is less
than four (4) weeks.

    

    2.5        Other
Fringe Benefits.  The Company shall either (a) provide health
insurance coverage for Employee and his dependents under the Company's group
health insurance plan, at the cost and expense of the Company, or (b) at the
election of Employee, reimburse Employee up to One Thousand Dollars ($1,000.00)
per month for an individual health insurance plan procured by
Employee.  In addition to the foregoing, Employee shall be eligible
for coverage under such other fringe benefits as are provided to the Company's
employees generally from time to time.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.6  
      Reimbursement
of Expenses.  The Company shall
reimburse Employee for authorized expenses incurred by Employee in the
performance of Employee's duties, provided that such expenses
are reasonable in amount, incurred for the benefit of the Company, and are
supported by itemized accountings and expense receipts submitted to the Company
prior to any reimbursement.

    

    3.      
    Board
Position.  On or promptly following the Effective Date of this
Agreement, the Company shall cause Employee to be nominated for election to the
Company's Board of Directors.

    

    4.  
        PROPRIETARY
INFORMATION

    

    4.1     
   No
Improper Use of Third-Party Confidential Information.  Employee
acknowledges that the Company does not desire to obtain improperly any
proprietary or confidential information owned by any company or other person
with whom Employee now has or heretofore has had a consulting engagement or
employment relationship, and therefore agrees that (a) Employee shall not bring
to the Company or share with any employee or other representative of the Company
any written, electronic, or other materials containing any confidential
information belonging to any such current or former employer or other person,
and (b) Employee shall not provide any such information in any other form to the
Company (or any representative of the Company) in violation of any agreements or
any other obligations that Employee may owe to any other persons.

    

    4.2     
   Assignment
of Inventions and Works of Authorship and Improvements.

    

    (a)        Assignment.  Employee
shall keep the Company fully informed of inventions and works of authorship
conceived by Employee (either alone or with others) during Employee's engagement
with the Company and hereby assigns to the Company all rights in and to such
inventions and works of authorship.  Employee covenants and agrees
that, upon the request of the Company, Employee shall make, execute, and deliver
such additional assignments and other instruments as may be necessary or
convenient for effectuating or further memorializing such
assignment.

    

    (b)        Further
Assurances.  Employee further agrees that (i) all such
inventions and works of authorship (to the extent of Employee’s interest
therein) shall be the property of the Company, (ii) Employee shall not
assign to any person other than the Company any interest therein, and (iii)
Employee shall, without charge to the Company, assign to the Company all of
Employee's right, title and interest in any such inventions and works of
authorship, and execute, acknowledge and deliver such instruments as are
necessary to confirm the ownership thereof by the Company.

    

    (c)        Patents,
Etc.  Upon the request and at the expense of the Company,
Employee shall (i) assist the Company or its nominees in obtaining patents,
copyright, trademark, or other right of protection for any such inventions and
works of authorship, in any country the Company determines to be appropriate,
and (ii) provide the Company all facts and data concerning any such inventions
and works of authorship for such applications and other documents as are
necessary to apply for and to obtain patents or other appropriate protection
therefor.

    

    (d)        Depictions.  To
deliver to the Company any and all sketches, drawings, models, figures and other
information with respect to any such inventions and works of authorship
immediately upon the request of the Company, and, at the cost and expense of the
Company, to cooperate with the Company in prosecuting to completion any
litigation or other proceedings necessary to protect and enforce the proprietary
rights of the Company therein.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.3        Nondisclosure,
Non-Circumvention and Noncompetition.  Employee agrees, as a
condition of Employee's engagement hereunder, to execute and deliver,
concurrently herewith, that certain Nondisclosure and Non-Circumvention
Agreement in the form attached hereto as Appendix
1, and to perform Employee's obligations thereunder.

    

    4.4        Injunctive
Relief.  The parties agree that due to the nature of the
position for which Employee is being employed engaged and the information that
Employee will receive during the course of Employee's employment hereunder, the
Company would be irreparably harmed by any violation, or threatened violation of
this Section 4
of this Agreement, and that the Company shall be entitled to an injunction,
without having to furnish any form of bond, prohibiting Employee from any actual
or threatened violation of Section 4 of this
Agreement.  Employee further agrees that the services to be performed
by Employee under this Agreement are of a special, unique, unusual,
extraordinary and intellectual character that gives them peculiar value to the
Company, the loss of which cannot be reasonably or adequately compensated in
damages in an action at law.  Employee agrees that the Company, in
addition to any other rights or remedies it may have, shall be entitled to
injunctive and other equitable relief to prevent or remedy a breach of this
Agreement by Employee.

    

    5.     
     Termination

    

    5.1        Definitions.  For
purposes of this Agreement, the term:

    

    (a)        "Date of
Termination" shall mean the date specified in the Notice of Termination
(as defined below).

    

    (b)        "Disability"
or "Disabled" shall mean that Employee either (i) is unable to engage in
any substantial gainful activity, with or without reasonable accommodation, due
to physical or mental impairment which can be expected to result in death or to
last for a continuous period of twelve (12) months or more, or (ii) is, by
reason of any medically determinable physical mental impairment which can be
expected to last for a continuous period of not less than twelve (12) months,
receiving income replacement benefits for a period of not less than three months
under an accident and health plan sponsored by the Company.  Employee
covenants and agrees to submit to a reasonable physical examination by such
licensed medical doctor for the purpose of evaluating whether Employee is
Disabled.

    

    (c)        "Cause"
shall mean (i) the willful and repeated failure by Employee to
substantially perform his duties with the Company (other than any such failure
resulting from Employee's incapacity due to Disability), after a written demand
for substantial performance is delivered to Employee by the Board, which demand
specifically identifies the manner in which the Board believes that Employee has
not substantially performed his duties and provides fourteen (14) days for
Employee to cure, or (ii) Employee's willfully engaging in conduct which is
demonstrably and materially injurious to the Company, monetarily or
otherwise.  For purposes hereof, no act, or failure to act, on
Employee's part shall be deemed "willful" unless done, or omitted to be done, by
Employee not in good faith and without reasonable belief that Employee's action
or omission was in the best interest of the Company.

    

    (d)        "Notice of
Termination" shall mean a written notice which is delivered by the
Company in connection with the Company's decision to terminate Employee's
employment with the Company, setting forth in reasonable detail the reason for
termination of Employee's employment.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.2    
    Termination
by Company.

    

    (a)        For
Cause.  The Company may terminate this Agreement as of the Date
of Termination for Cause.   Notwithstanding the foregoing,
Employee shall not be deemed to have been terminated for Cause unless and until
there shall have been delivered to Employee a copy of a resolution duly adopted
by the affirmative vote of not less than three-quarters of the entire membership
of the Board at a meeting of the Board called and held for such purpose (after
reasonable notice to Employee and an opportunity for Employee, together with
Employee's counsel, to be heard before the Board), finding that in the good
faith opinion of the Board that Employee was guilty of conduct set forth above
and specifying the particulars thereof in reasonable detail, provided, however, that if at
such time Employee is a member of the Board of Directors, he shall abstain from
voting with respect to any matter relating to termination of his
employment.  Upon termination for Cause, the Company shall pay to
Employee all accrued and unpaid compensation for the period ending on the Date
of Termination (including payment for any accrued and unused vacation time and
the Annual Bonus accrued through the Date of Termination), and shall not be
obligated to pay any additional amounts to Employee hereunder.

    

    (b)        Other than
Cause or Disability.  Employee's employment is at will and the
Company may terminate this Agreement and Employee's employment for any reason
deemed sufficient by the Company, including by reason of Employee's Disability,
upon delivery of a Notice of Termination (or as of such date as is specified
therein).  However, in the event that Employee's employment is
terminated by the Company other than for Cause or by reason of his Disability,
then in addition to paying to Employee all accrued and unpaid wages due to
Employee for periods ended on or prior to the effective date of the termination
(including payment for any accrued and unused vacation time and the Annual Bonus
accrued through the Date of Termination), the Company shall pay to Employee (i)
the Base Compensation that Employee would have earned during the remainder of
Term of this Agreement, and (ii) if such termination occurs after the first date
as of which Employee has been employed hereunder for at least sixteen (16)
consecutive calendar months, then the Company also shall pay to Employee the
additional sum of One Hundred Thousand Dollars ($100,000).  Such
amounts shall be paid in equal periodic installments at the time when, and in
the periodic amounts in which, such Base Compensation would have been paid to
Employee if he had remained employed during the remainder of the Term
hereof.

    

    (c)        Disability.  By
reason of Employee's Disability.  If the Company elects to terminate
Employee's employment hereunder by reason of Employee's Disability, and if
Employee is then covered by a disability income policy sponsored by the Company,
then in addition to all accrued and unpaid wages then due to Employee (including
payment for any accrued and unused vacation time and the Annual Bonus accrued
through the Date of Termination).

    

    5.3      
  Termination
by Employee. Employee may resign from employment and terminate this
Agreement at any time.  If Employee terminates this
Agreement:

    

    (a)        Disability.  By
reason of Employee's Disability, and if Employee is then covered by a disability
income policy sponsored by the Company, then the Company shall pay to Employee
all accrued and unpaid wages due to Employee with respect to all periods ended
on or prior to the effective date of the termination of Employee's employment
hereunder, and the Company shall not owe any additional amounts to Employee by
reason of such termination.

    

    (b)        Other.  Other
than by reason of Employee's Disability, then the Company shall pay to Employee
all accrued and unpaid wages due to Employee with respect to all periods ended
on or prior to the effective date of the termination of Employee's employment
hereunder, and the Company shall not owe any additional amounts to Employee by
reason of such termination.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.4        
Conditional
Nature of Severance Payments.  Notwithstanding any other
provision of this Section 5 or any
other provision of this Agreement to the contrary:

    

    (a)        
Noncompete.  Employee
acknowledges that the nature of the Company's business is such that if Employee
were to become employed by, or substantially involved in, the business of a
competitor of the Company during the period of one (1) year following the
termination of Employee's employment with the Company, then it would be very
difficult for Employee not to rely on or use the Company's trade secrets and
confidential information in connection with that employment.

    
      
 

      (i)        
Thus, to avoid the inevitable disclosure of the Company's trade secrets
and confidential information, Employee acknowledges and agrees that his right to
receive the severance consideration described in Sections 5.2 and
5.3, above (to
the extent Employee is otherwise entitled to such payments thereunder) shall be
conditioned upon Employee not directly or indirectly engaging in (whether as an
employee, consultant, agent, proprietor, principal, partner, stockholder,
corporate officer, director or otherwise), or having any ownership interest in
or participating in the financing, operation, management or control of, any
person, firm, corporation or business that directly competes with Company or is
a customer of the Company and has operations located within a radius of five (5)
miles from any lease owned or operated by the Company.  If Employee
engages, invests, or otherwise participates in any competitive activity
described in this Section 5.4(a), then
all severance payments consideration to which Employee otherwise may be entitled
under Section
5.2 and 5.3 above, as
applicable, thereupon shall cease.

      

      (ii)        
Notwithstanding the foregoing, Employee shall not be deemed to be in
violation of the foregoing restriction solely by reason of Employee's owning not
more than one percent (1.0%) of the equity securities of any corporation or
other business enterprise, the equity securities of which are listed for trading
on a national securities exchange.

      

      (b)        Non-Solicitation.  Until
the date one (1) year after the termination of Employee's employment with
the Company for any reason, Employee agrees and acknowledges that Employee's
right to receive the severance consideration described in Sections 5.2 and
5.3 (to the
extent Employee is otherwise entitled to such payments thereunder) shall be
conditioned upon Employee not either directly or indirectly soliciting,
attempting to hire, recruiting, encouraging, taking away, hiring any employee of
the Company or inducing or otherwise causing an employee to leave his or her
employment with the Company (regardless whether to commence employment with
Employee or with any other entity or person).  If Employee engages in
any such activity, then all severance consideration to which Employee otherwise
would be entitled under Sections 5.2 or 5.3, above, as
applicable, thereupon shall cease.

      

      (c)        General
Release.  Employee shall not be entitled to receive any of the
severance consideration described in Sections 5.2 and
5.3 above,
unless Employee executes and delivers to the Company, within fifteen (15) days
of the Date of Termination, a release in the form attached hereto as Appendix
2.

      

      (d)        Resignation
from Board.  Employee shall not be entitled to receive any of
the severance consideration described in Sections 5.2 and
5.3 above,
unless Employee resigns from the Board of Directors in accordance with Section 5.8,
below.  If the Company requests such resignation until after payment
of severance consideration has commenced hereunder, then the Company shall be
excused from any further obligation to pay such severance consideration if
Employee thereafter fails to resign from the Board of Directors in accordance
with such Section
5.8.

      

      5.5        Death.  This
Agreement shall terminate automatically upon the death of
Employee.  If Employee's employment is terminated by reason of
Employee's death, then the Company shall pay to Employee's beneficiaries or
legal representatives (i) within 15 days, all accrued and unpaid Base
Compensation and vacation pay for all periods ended on or before the date of
Employee's death, and (ii) the Company shall not be obligated to make any
further payments hereunder.

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.6        
Mitigation.  Employee
shall not be required to mitigate the amount of any payment provided for in this
Section 5 by
seeking other employment or otherwise, nor shall the amount of any payment or
benefit provided for in this Agreement be reduced by any compensation earned by
Employee as a result of employment by another employer, self employment
earnings, by retirement benefits, by offset against any amount claimed to be
owing by Employee to the Company, or otherwise.  No amounts payable to
Employee under any plan or program of the Company shall reduce or offset any
amounts payable to Employee under this Agreement.

    

    5.7        Deferral
in Commencement Per IRC §409A. The
parties intend that any amounts payable hereunder that could constitute
"deferred compensation" within the meaning of Section 409A of the Internal
Revenue Code ("Section
409A") shall comply with Section 409A, and this Agreement shall be
administered, interpreted and construed in a manner that does not result in the
imposition of additional taxes, penalties or interest under Section
409A.  The Company and Employee agree to negotiate in good faith to
make amendments to the Agreement, as the parties mutually agree are necessary or
desirable to avoid the imposition of taxes, penalties or interest under Section
409A.  Notwithstanding the foregoing, the Company does not guarantee
any particular tax effect, and Employee shall be solely responsible and liable
for the satisfaction of all taxes, penalties and interest that may be imposed on
or for the account of Employee in connection with the Agreement, as amended by
this Amendment, (including any taxes, penalties and interest under Section
409A), and none of the Company Group shall have any obligation to indemnify or
otherwise hold Employee (or any beneficiary) harmless from any or all of such
taxes, penalties or interest.

    

    (a)        
Notwithstanding anything in the Agreement to the contrary, in the event
that Employee is deemed to be a "specified employee" within the meaning of
Section 409A(a)(2)(B)(i) of the Internal Revenue Code and Employee is not
"disabled" within the meaning of Section 409A(a)(2)(C) of the Internal Revenue
Code, no payments in this Agreement that are "deferred compensation" subject to
Section 409A shall be made to Employee prior to the date that is six months
after the date of Employee's "separation from service" (as defined in Section
409A) or, if earlier, Employee's date of death.  Following any
applicable six month delay, all such delayed payments shall be paid in a single
lump sum on the earliest date permissible under Section 409A that is also a
business day.

    

    (b)        
For purposes of Section 409A, each of the payments that may be made under
this Agreement shall be deemed to be a separate payment for purposes of Section
409A.  Amounts payable under this Agreement shall be deemed not to be
a "deferral of compensation" subject to Section 409A to the extent provided in
the exceptions in Treasury Regulation §§ 1.409A-1(b)(4) ("short-term deferrals")
and (b)(9) ("separation pay plans," including the exceptions under subparagraph
(iii) and subparagraph (v)(D)) and other applicable provisions of Treasury
Regulation §§ 1.409A-1 through A-6.

    

    (c)        
With respect to the time of payments of any amounts under the Agreement
that are "deferred compensation" subject to Section 409A, references in the
Agreement to "termination of employment" (and substantially similar phrases)
shall mean "separation from service" within the meaning of Section
409A.

    

    (d)        
For the avoidance of doubt, it is intended that any indemnification
payment to Employee or expense reimbursement made hereunder shall be exempt from
Section 409A.  Notwithstanding the foregoing, if any indemnification
payment or expense reimbursement made hereunder shall be determined to be
"deferred compensation" within the meaning of Section 409A, then (i) the amount
of the indemnification payment or expense reimbursement during one taxable year
shall not affect the amount of the indemnification payments or expense
reimbursement during any other taxable year, (ii) the indemnification payments
or expense reimbursement shall be made on or before the last day of Employee's
taxable year following the year in which the expense was incurred, and (iii) the
right to indemnification payments or expense reimbursement hereunder shall not
be subject to liquidation or exchange for another benefit.  In
addition, any reimbursements for COBRA coverage premiums described in this
Agreement shall be paid to Employee as promptly as practicable, and in all
events on or before the last day of the third taxable year of Employee following
the taxable year of the Company in which Employee's employment
terminated.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.8        
Resignation
from Board Following Termination.  Employee covenants and
agrees that (a) at any time following the termination of Employee's employment
with the Company for any reason, the Company may request that Employee resign
from the Board of Directors, and (b) within two (2) business days following
Employee's receipt of the Company's written request that Employee resign from
the Board of Directors of the Company, Employee shall tender to the Company an
immediately effective written resignation from the Company's Board of
Directors.

    

    6.    
      Miscellaneous

    

    6.1        
Notices.  All
notices permitted or required by this Agreement shall be in writing, and shall
be deemed to have been delivered and received (i) when personally
delivered, or (ii) on the third (3rd)
business day after the date on which deposited in the United States mail,
postage prepaid, certified or registered mail, return receipt requested, or
(iii) on the date on which transmitted by facsimile or other electronic means
generating a receipt confirming a successful transmission (provided that on that same
date a copy of such notice is deposited in the United States mail, postage
prepaid, certified or registered mail, return receipt requested), or (iv) on the
next business day after the date on which deposited with a regulated public
carrier (e.g., Federal Express)
designating overnight delivery service with a return receipt requested or
equivalent thereof administered by such regulated public carrier, freight
prepaid, and addressed in a sealed envelope to the party for whom intended at
the address appearing on the signature page of this Agreement, or such other
address or facsimile number, notice of which is given in a manner permitted by
this Section 6.1.

    

    6.2        Effect on
Other Remedies.  Nothing in this Agreement is intended to
preclude, and no provision of this Agreement shall be construed to preclude, the
exercise of any other right or remedy which the Company may have by reason of
Employee's breach of his obligations under this Agreement.

    

    6.3        Arbitration.  Except
for any action seeking a temporary restraining order, injunctive order, or other
equitable relief, all disputes, claims and controversies arising out of or
relating to the interpretation or enforcement of this Agreement, including but
not limited to the determination of the scope or applicability of the agreement
to arbitrate set forth in this Section 6.3, shall be
determined by arbitration in San Antonio, Texas, or Los Angeles, California, as
determined by the party initiating the arbitration, before one arbitrator. The
arbitration shall be administered by JAMS pursuant to its Streamlined
Arbitration Rules and Procedures.  Judgment on the arbitrator's award
may be entered in any court of competent jurisdiction.  This Section 6.3 shall not
preclude parties from seeking provisional remedies in aid of arbitration from a
court of appropriate jurisdiction.  The arbitrator may, in the award,
allocate all or part of the costs of the arbitration, including the fees of the
arbitrator and the reasonable attorneys’ fees of the prevailing
party.

    

    6.4        Binding on
Successors; Assignment.  This Agreement shall be binding upon,
and inure to the benefit of, each of the parties hereto, as well as their
respective heirs, successors, assigns, and personal
representatives.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    6.5        Governing
Law; Venue.  This Agreement shall be governed by and construed
in accordance with applicable provisions of the laws of the State of Texas
(without regard to application of its conflict-of-law principles), and each
party hereby consents to the jurisdiction of the courts of the State of Texas
for purposes of all actions commenced to construe or enforce this
Agreement.

    

    6.6        Severability.  If
any of the provisions of this Agreement shall otherwise contravene or be invalid
under the laws of any state, country or other jurisdiction where this Agreement
is applicable but for such contravention or invalidity, such contravention or
invalidity shall not invalidate all of the provisions of this Agreement but
rather it shall be construed, insofar as the laws of that state or other
jurisdiction are concerned, as not containing the provision or provisions
contravening or invalid under the laws of that state or jurisdiction, and the
rights and obligations created hereby shall be construed and enforced
accordingly.

    

    6.7        Further
Assurances.  Each party agrees, upon the request of another
party, to make, execute, and deliver, and to take such additional steps as may
be necessary to effectuate the purposes of this Agreement.

    

    6.8        Entire
Agreement; Amendment.  This Agreement (a) represents the
entire understanding of the parties with respect to the subject matter hereof,
and supersedes all prior and contemporaneous understandings, whether written or
oral, regarding the subject matter hereof, except the Nondisclosure and
Non-Circumvention Agreement by and between Employee and the Company, and
(b) may not be modified or amended, except by a written instrument,
executed by the party against whom enforcement of such amendment may be
sought.

    

    6.9        Counterparts;
Electronic Signatures.  This Agreement may be executed in
counterparts, each of which shall be deemed an original and both of which, taken
together, shall constitute one and the same instrument, binding on each
signatory thereto.  A copy of this Agreement that is executed by a
party and transmitted by that party to the other party by facsimile or as an
attachment (e.g., in
".tif" or ".pdf" format) to an email shall be binding upon the signatory to the
same extent as a copy hereof containing that party's original
signature.

    

    [Signatures appear on the following
page.]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    In Witness
Whereof, the parties hereto have executed this Employment Agreement,
effective as of the date set forth above.

    

    
      
        
          
            
              
                
                  
                    	
                            "Company:"

                          	 	
                            "Employee:"

                          	 
	 
      	 	 
      	 
	
                            EnerJex
      Resources, Inc., a Nevada corporation

                          	 	 
      	 
	 
      	 	 
      	 
	
                            By

                          	
                            /s/ C. Stephen Cochennet

                          	 	
                            /s/ Robert G. Watson, Jr.

                          	 
	 
      	
                            C.
      Stephen Cochennet, Chief Executive Officer

                          	 	
                            Robert
      G. Watson, Jr.

                          	 
	 
      	 	 
      	 
	
                            Address, Facsimile No. and
      Email for Notices:

                          	 	
                            Address, Facsimile No. and
      Email for Notices:

                          	 
	 
      	 	 
      	 
	
                            EnerJex
      Resources, Inc.

                          	 	
                            Mr.
      Robert G. Watson, Jr.

                          	 
	
                            ATTN:  Chief
      Executive Officer

                          	 	
                            c/o
      RGW Energy, LLC

                          	 
	
                            27
      Corporate Woods, Suite 350

                          	 	
                            123
      Evans Avenue

                          	 
	
                            10975
      Grandview Drive

                          	 	
                            San
      Antonio, TX  78209

                          	 
	
                            Overland
      Park, KS  66210

                          	 	 
      	 
	 
      	 	
                            Facsimile
      No.:  (___) ________________________

                          	 
	
                            Facsimile
      No.:  (913) 754-7755

                          	 	
                            Email:
      ___________________________________

                          	 
	
                            Email: 
      _____________________________________

                          	 	 
      	 

                  

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Appendix
1

    

    Nondisclosure
and Non-Circumvention Agreement

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Appendix
2

    

    General
Release

    

    This
General Release (the "Release") is made and
entered into, dated for reference purposes as of __________, 20__, and effective
as of the date identified below, by and between Robert
G. Watson, Jr. ("Watson"), and EnerJex
Resources, Inc., a Nevada corporation (the "Company").

    

    As a
condition of and in order to induce the Company to pay to Watson the severance
pay due to Watson under that certain Employment Agreement between the Company
and Watson dated effective December ___, 2010, and as specifically
described in that certain Notice of Termination dated _________, 20__(the "Notice of
Termination"), the parties hereby agree as follows:

    

    1.           Warranty.  Watson
hereby warrants that he is the sole owner of the claims identified in Section 2, below, and
that he has not assigned to any other person any right, title, or interest in or
to any such claims.

    

    2.           Release.  Watson
hereby releases the Company, its subsidiaries and affiliates, and each of its
agents, employees, directors, shareholders, officers and other agents
(collectively, the "Company Released
Parties") of and from any and all costs, liabilities, losses, expenses,
and compensation (the "Claims"), except
Excluded Claims (as defined below), which Watson has or hereafter may have or be
entitled to assert against any of the Company Released Parties arising from or
relating in any way to Watson's employment with the Company or the termination
of that employment, for any wrongful termination of employment, including
termination based on age, sex, race, disability or other discrimination under
the Civil Rights Act of 1964, as amended, the Age Discrimination in Employment
Act of 1967, as amended, or other federal, state, or local laws prohibiting such
discrimination, or under federal, state, or local employment laws.  In
connection with the foregoing, Watson further waives and releases all rights, if
any, which Watson may have under Section 1542 of the California Civil Code,
which reads in pertinent part as follows:  "A general release does not
extend to claims which the creditor does not know or suspect to exist in his or
her favor at the time of executing the release, which if known by him or her
must have materially affected his or her settlement with the
debtor."

    

    3.           Excluded
Claims.  The parties agree that the term "Excluded Claims"
means (i) claims for payment of the separation pay due under the Employment
Agreement, (ii) claims under any written stock option agreement between Watson
and the Company, (iii) claims for benefits under any qualified retirement plan
sponsored by the Company and in which Watson may participate, (iv) any right
that Watson may have to elect "COBRA" continuation coverage under any group
health plan sponsored by the Company, and (v) any right that Watson may have to
demand indemnification under the Articles of Incorporation or Bylaws of the
Company or any written Indemnification Agreement between the Company and
Watson.

    

    4.           Miscellaneous.  This
Release shall be governed by and construed in accordance with Texas
law.  This Release (a) memorializes the entire understanding and
agreement between the Company and Watson regarding the subject matter hereof,
and supersedes all prior and contemporaneous understandings, whether oral or
written, regarding such matters, and (ii) may not be modified or amended, except
by a written instrument executed after the date hereof by Watson and the
Company.  If any action is commenced to construe or enforce this
Agreement or the rights and duties created herein, then the party prevailing in
that action shall be entitled to recover its attorneys' fees and costs in that
action, as well as all costs and fees of enforcing any judgment entered
therein.
 

    
      
         

      

      
        
          Appendix
2, Page 1 

        

        
          

        

      

      
         

      

    

    5.           Effective
Date.  This Release shall become effective only if (a) it is
signed by the Company and Watson, and (b) Watson does not revoke this Release,
in writing, within seven (7) days following the date on which Watson signs this
Release (which date of Watson's signature is indicated below his signature,
below).

    

    
      
        
          
            
              
                	
                        EnerJex
      Resources, Inc., a Nevada corporation

                      	 
      	 
      
	 
      	 
      	 
      
	
                        By

                      	 
      	 
      	 
      
	 
      	
                        Name
      & title:

                      	 
      	
                        Robert
      G. Watson, Jr.

                      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                        Date

                      	 
      	
                        Date

                      

              

            

          

        

      

    

     

      
        
           

        

        
          
            Appendix
2, Page 2Unassociated Document

    Exhibit
10.1

     

    EMPLOYMENT
AGREEMENT

     

    EMPLOYMENT AGREEMENT dated as
of December 30, 2010 between AMERICAN MEDICAL ALERT CORP., a New York
corporation (the "Company"), with offices located at 3265 Lawson Boulevard,
Oceanside, New York 11572 and JACK RHIAN, an individual having an address at
___________________________________ ("Employee").

     

    WITNESSETH:

     

    WHEREAS, the Company desires
to retain the services of Employee upon the terms and conditions stated herein;
and

     

    WHEREAS, Employee desires to
continue to be employed by the Company upon the terms and conditions stated
herein.

     

    NOW, THEREFORE, in
consideration of the mutual covenants, conditions and promises contained herein,
the parties hereby agree as follows:

     

    1.    Employment.  The
Company hereby employs Employee for the period beginning as of January 1, 2011
and ending December 31, 2013 (the “Expiration Date”), unless earlier terminated
pursuant hereto (the "Employment Period").

     

    2.    Duties.  Subject
to the authority of the Board of Directors of the Company, Employee shall be
employed as the Company's President and Chief Executive
Officer.  Employee will perform such duties and services of an
executive nature, commensurate with his position as the President and Chief
Executive Officer, as may from time to time be assigned to him by the Board of
Directors.

     

    3.    Full
Time.  Employee agrees that he will devote his full time and
attention during regular business hours to the business and affairs of the
Company.  The foregoing shall not prevent the purchase, ownership or
sale by Employee of investments or securities of publicly held companies and any
other business that is not competitive with the Company or any subsidiary of the
Company so long as such investment does not require active participation of
Employee in the management of the business of such publicly held companies, does
not interfere or conflict with the performance of Employee's duties hereunder
and does not otherwise violate any of the provisions of this Agreement, or
Employee's participation in philanthropic organizations to the extent that such
participation does not interfere or conflict with the performance of Employee's
duties hereunder and does not otherwise violate any provision of this
Agreement.

     

    4.    Compensation.  In
consideration of the duties and services to be performed by Employee hereunder,
the Company agrees to pay, and Employee agrees to accept the amounts set forth
below:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (a)   A
base salary, to be paid on a bi weekly basis, at the rate of 300,000 per
annum.

     

    (b)   In
addition to the base salary payable pursuant to Section 4(a) above, Employee
shall be entitled to participation in the executive bonus pool, which the
Company shall establish by June 30, 2011, on such terms and conditions as may be
determined by the Company's independent Compensation Committee in its
sole discretion.

     

    (c)   The
compensation provided for herein shall be in addition to any retirement, profit
sharing, insurance or similar benefit which may at any time be payable to
Employee pursuant to any plan or policy of the Company relating to such
benefits, which additional benefits shall be made available to Employee on the
same basis as they are generally made available to other executive officers of
the Company.

     

    (d)   The
Company shall reimburse Employee in accordance with the Company's normal
policies for all reasonable travel, hotel, meal and other expenses properly
incurred by him in the performance of his duties hereunder.

     

    (e)   The
Company shall provide Employee with the use of an automobile stipend to cover
expenses of operation such as insurance, gas, oil and repair Company not to
exceed $1,000.00 monthly.

     

    (f)    Employee
will also be entitled to receive restricted stock units ("RSU") for 30,000
shares of common stock, to vest, subject to the condition that Employee is
employed by the Company at the applicable date, as follows: 10,000 shares on
December 31, 2011, 10,000 shares on December 31, 2012, and 10,000 shares on
December 31, 2013; provided, however, that in the event of a Change in
Control (as hereinafter defined), if the Company or its successor pursuant to
such Change in Control, as applicable, and the Employee either agree to continue
this Agreement or to enter into a new employment agreement mutually acceptable
to the Company or its successor and the Employee in lieu of this Agreement, then
any such RSU which remain unvested, shall vest immediately upon the mutual
agreement of the Company or its successor and the Employee to continue this
Agreement or to enter into a new agreement.  All RSUs to be issued
pursuant to this Agreement shall be issued out of, and subject to, the Company's
2010 Equity Incentive Plan, and the effectiveness of such RSU grants is
conditioned upon entry into an Award Agreement, as defined in and required by
such Plan.

     

    5.    Vacation.  Employee
shall be entitled to three (3) weeks vacation each fiscal year, to be taken at
such time as is mutually convenient to the Company and Employee.

     

    6.    Death.  In
the event of the death of Employee during the Employment Period, this Agreement
and the employment of Employee hereunder shall terminate on the date of the
death of Employee.  The estate of Employee (or such person(s) as
Employee shall designate in writing) shall be entitled to receive, and the
Company agrees to continue to pay, in accordance with the normal pay practice of
the Company, the base salary of Employee provided by paragraph 4(a) and the
additional benefits, if any, provided by paragraph 4(d), in each instance for a
period of one (1) year following the date of death of Employee.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    7.    Disability.  In
the event that Employee shall be unable to perform because of illness or
incapacity, physical or mental, the duties and services to be performed by him
hereunder for a period of one hundred and eighty (180) consecutive days or an
aggregate period of more than one hundred and eighty (180) days in any 12-Month
period, the Company may terminate this Agreement after the expiration of such
period.  Upon such termination, Employee shall be entitled to receive
the base salary provided by paragraph 4(a) and the additional benefits, if any,
provided by paragraph 4(d), in each instance through the date of such
termination.

     

    8.    NonCompetition and
NonDisclosure.  (a) Employee covenants and agrees that
throughout the Employment Period and for a period of twelve (12) months
thereafter, he will not, directly or indirectly, own, manage, operate or
control, or participate in the ownership, management, operation or control of,
any business competing directly in the United States of America with the
business conducted by the Company or any subsidiary of the Company during the
Employment Period; provided, however, that
Employee may own not more than 5% of the outstanding securities of any class of
any corporation engaged in any such business, if such securities are listed on a
national securities exchange or the NASDAQ Stock Market regularly traded in the
Over the Counter market by a member of a national securities
association.

     

    (b)   Employee
covenants and agrees that, (i) throughout the Employment Period, he will not
directly or indirectly solicit, entice or induce any person (collectively,
“Solicit”) who during the Employment Period is associated with, employed by or
is a customer of the Company or any subsidiary, and (ii) for a period of
twenty-four (24) months following the Employment Period, he will not Solicit any
person who is, or within the last three months of Employee's employment by the
Company was, associated with, employed by, or was a customer of the Company or
any subsidiary of the Company, in each case, to leave the employ of, terminate
his association or its relationship with the Company, or any subsidiary of the
Company, or solicit the employment or business of any such person on his own
behalf or on behalf of any other business enterprise.

     

    (c)   Employee
covenants and agrees that, throughout the Employment Period and at all times
thereafter, he will not use, or disclose to any third party, trade secrets or
confidential information of the Company, including, but not limited to,
confidential information or trade secrets belonging or relating to the Company,
its subsidiaries, affiliates, customers and clients or proprietary processes or
procedures of the Company, its subsidiaries, affiliates, customers and clients,
or the Company’s or its subsidiaries’ business, business plans, investments,
customers, strategies, operations, records, financial information, assets,
technology, data and information that reveals the processes, methodologies,
technology or know-how of the Company or its subsidiaries.  Trade
secrets and confidential information shall include, but shall not be limited to,
all information which is known or intended to be known only by employees of the
Company, its respective subsidiaries and affiliates or others in a confidential
relationship with the Company or its respective subsidiaries and affiliates
which relates to business matters.

     

    (d)   If
any term of this paragraph 8 is found by any court having jurisdiction to be too
broad, then and in that case, such term shall nevertheless remain effective, but
shall be considered amended (as to the time or area or otherwise, as the case
may be) to a point considered by said court as reasonable, and as so amended
shall be fully enforceable.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (e)   In
the event that Employee shall breach or threaten to breach any provision of this
Agreement (including but not limited to the provisions of this paragraph 8),
then Employee hereby consents to the granting of a temporary or permanent
injunction against him by a court of competent jurisdiction prohibiting him from
violating any provision of this Agreement.  In any proceeding for an
injunction and upon any motion for a temporary or permanent injunction, Employee
agrees that his ability to answer in damages shall not be a bar or interposed as
a defense to the granting of such temporary or permanent injunction against
Employee.  Employee further agrees that the Company will not have an
adequate remedy at law in the event of any breach or threatened breach by
Employee hereunder and that the Company will suffer irreparable damage and
injury if Employee breaches any of the provisions of this
Agreement.

     

    9.    Termination;
Non-Renewal.

     

    (a)   The
Company may terminate this Agreement without liability (other than for the base
salary and any other compensation provided in paragraph 4 accrued to the date of
termination) in the event of (i) a material breach by Employee of the provisions
of this Agreement, which breach shall not have been cured by Employee within
thirty (30) days following notice thereof by the Company to Employee, (ii) the
commission of gross negligence or bad faith (i.e., an act involving actual or
constructive fraud, or a design to mislead or deceive another, or the conscious
doing of a wrong because of dishonest purpose or motivated by ill will) by
Employee in the course of his employment hereunder, which commission has a
material adverse effect on the Company, (iii) the commission by Employee of a
criminal act of fraud, theft or dishonesty causing material damages to the
Company or any of its subsidiaries, (iv) the conviction of Employee of (or plead
nolo contendere to) any
felony, or misdemeanor involving moral turpitude if such misdemeanor results in
material financial harm to or materially adversely affects the goodwill of the
Company, or (v) any violation by Employee of the Company’s Code of Business
Conduct and Ethics or the Company’s sexual harassment and other forms of
harassment policy or drug and alcohol abuse policy, as set forth in the
Company’s employee handbook.  The circumstances specified in (i)
through (v) above shall be defined as “Cause.”

     

    (b)   Unless
the Employee is terminated for Cause pursuant to Section 9(a) above on or prior
to the Expiration Date, and other than in the circumstances described in Section
9(d), in the event that the Company does not offer Employee to enter into a
written employment agreement with terms and conditions no less favorable than
substantially the same terms and conditions as this Agreement to begin
immediately following the Expiration Date, Employee shall receive, in
consideration of his continuing obligations under Section 8 hereof, payment of
base salary, based on the then applicable salary level, for a period of twelve
(12) months, commencing seven months following the date of the expiration of the
Employment Period.  Employee’s right to any payments pursuant to this
Section 9(b) shall be in addition to, and not in lieu of, any damages for the
termination by the Company of this Agreement prior to the Expiration Date for
any reason other than those set forth in Section 9(a) above.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (c)   After
a Change in Control (as hereinafter defined) has occurred, Employee may
terminate his employment upon thirty (30) days' written notice to the Company
within one hundred and eighty (180) days following such a Change in Control and
after he has obtained actual knowledge of the occurrence of any of the following
events:

     

    (i)           Failure to elect or appoint, or
re-elect or re-appoint, Employee to, or removal of Employee from, his office
and/or position with the Company as constituted prior to the Change in
Control, except in connection with the termination of Employee's employment
pursuant to Section 9(a) hereof;

     

    (ii)          A reduction in Employee's overall
compensation (including any reduction in pension or other benefit programs or
perquisites) or a material adverse change in the nature or scope of the
authorities, powers, functions or duties normally attached to Employee's
position with the Company as referred to in Section 2 hereof;

     

    (iii)         A determination by Employee made in
good faith that, as a result of a Change in Control, he is unable effectively to
carry out the authorities, powers, functions or duties attached to his position
with the Company as referred to in Section 2 hereof, and the situation is not
remedied within thirty (30) days after receipt by the Company of written
notice from Employee of such determination;

     

    (iv)         A
breach by the Company of any provision of this Agreement not covered by clauses
(i), (ii) or (iii) of this Section 9(c), which is not remedied within thirty
(30) days after receipt by the Company of written notice from Employee of such
breach;

     

    (v)          A change in the location at which
substantially all of Employee's duties with the Company are to be performed to a
location which is not within a 50-mile radius of the address of the place where
Employee is performing services prior to the date of the Change in
Control; or

     

    (vi)         failure
by the Company or its successor pursuant to such Change in Control, as
applicable, and the Employee to either agree to continue this Agreement or to
enter into a new employment agreement mutually acceptable to the Company or its
successor and the Employee in lieu of this Agreement.

     

    An
election by Employee to terminate his employment under the provisions of this
paragraph 9(c) shall not be deemed a voluntary termination of employment by
Employee for the purpose of interpreting the provisions of any of the Company's
employee benefit plans, programs or policies.  Employee's right to
terminate his employment pursuant to this paragraph 9(c) shall not be affected
by his illness or incapacity, whether physical or mental, unless the Company
shall at the time be entitled to terminate his employment under paragraph 7 of
this Agreement.  Employee's continued employment with the Company for
any period of time less than one hundred and eighty (180) days after a Change in
Control shall not be considered a waiver of any right he may have to terminate
his employment pursuant to this paragraph 9(c).  A termination by
Employee under this paragraph 9(c) shall be deemed a termination by the Company
of this Agreement without Cause.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (d)   After
a Change in Control has occurred, in the event that this Agreement is terminated
by the Company or its successor without Cause or by the Employee pursuant to
Section 9(c), and if the Company or its successor and the Employee do not
agree  to enter into a new employment agreement in lieu hereof, then
Employee shall be entitled to be paid in a lump sum, six months and one day
after such termination, an amount of cash (to be computed, at the expense of the
Company or its successor, by the independent certified public accountants
utilized by the Company immediately prior to the Change of Control (the
"Accountants"), whose computation shall be conclusive and binding upon Employee
and the Company or its successor) equal to 2.99 times Employee's "base amount"
as defined in Section 280G(b)(3) of the Internal Revenue Code of 1986, as
amended (the "Code").  Any such payment shall be in full satisfaction
of all of the Company’s or its successor’s obligations hereunder, and upon
payment made pursuant to this paragraph 9(d), all of the Company’s or its
successor’s obligations pursuant to this Agreement shall terminate in full and
Employee shall have no further rights hereunder or recourse against the Company
or its successor pursuant to this Agreement; provided, however, nothing in
this paragraph 9(d) shall be interpreted to preclude the Employee receiving his
accrued salary and other compensation payable pursuant to paragraph 4 through
the date of termination.  Such lump sum payment is hereinafter
referred to as the "Termination Compensation."

     

    It is
intended that the "present value" of the payments and benefits to Employee,
whether under this Agreement or otherwise, which are includable in the
computation of "parachute payments" shall not, in the aggregate, exceed 2.99
times the "base amount" (the terms "present value", "parachute payments" and
"base amount" being determined in accordance with Section 280G of the
Code).  Accordingly, if Employee receives payments or benefits from
the Company prior to payment of the Termination Compensation which, when added
to the Termination Compensation, would, in the opinion of the Accountants,
subject any of the payments or benefits to Employee to the excise tax imposed by
Section 4999 of the Code, the Termination Compensation shall be reduced by the
smallest amount necessary, in the opinion of the Accountants, to avoid such
tax.  In addition, the Company shall have no obligation to make any
payment or provide any benefit to Employee subsequent to payment of the
Termination Compensation which, in the opinion of the Accountants, would subject
any of the payments or benefits to Employee to the excise tax imposed by Section
4999 of the Code. No reduction in Termination Compensation or release of the
Company from any payment or benefit obligation in reliance upon any aforesaid
opinion of the Accountants shall be permitted unless the Company shall have
provided to Employee a copy of any such opinion that specifically entitles
Employee to rely thereon, no later than the date otherwise required for payment
of the Termination Compensation or any such later payment or
benefit.

     

    (e)   "Change
in Control" as used in this Agreement shall mean the occurrence of any of the
following:

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (i)           any
"person" or "group" (as such terms are used in Section 3(a)(9) and 13(d)(3)
of the Securities Exchange Act of 1934, as amended (the "Act")), except for an
employee stock ownership trust (or any of the trustees thereof), becomes a
"beneficial owner" (as such term in used in Rule 13d-3 promulgated under
the Act), after the date hereof, directly or indirectly, of securities of the
Company representing 35% or more of the combined voting power of the Company's
then outstanding securities;

     

    (ii)          during
any twelve (12) month period during the Employment Period, individuals who at
the beginning of such period constitute the entire Board of Directors cease for
any reason to constitute at least a majority thereof, unless the election, or
the nomination for election, by shareholders of the Company of each new director
was approved or ratified by a vote of at least a majority of the directors then
still in office who were directors at the beginning of the Employment Period or
who were new directors approved by such a vote;

     

    (iii)         the
consummation of the sale or disposition by the Company of all or substantially
all of the Company's assets; or

     

    (iv)         the
consummation of a merger or consolidation of the Company with any other company,
other than a merger or consolidation which would result in the combined voting
power of the Company's voting securities outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity or the parent company of such
surviving entity) 50% or more of the combined voting power of the voting
securities of the Company or such surviving entity or the parent company of such
surviving entity outstanding immediately after such merger or
consolidation.  Notwithstanding the foregoing, any transaction
involving a leveraged buyout or other acquisition of the Company which would
otherwise constitute a Change in Control, in which Employee owns
(post-transaction) more than 10% of the voting power of outstanding securities
in the surviving or successor entity or its parent company (not counting
securities Employee receives in exchange for his Company holdings), shall not
constitute a Change in Control.

     

    10.  No
Impediments.  Employee warrants and represents that he is free
to enter into this Agreement and to perform the services contemplated thereby
and that such actions will not constitute a breach of, or default under, any
existing agreement.

     

    11.  No
Waiver.  The failure of any of the parties hereto to enforce
any provision hereof on any occasion shall not be deemed to be a waiver of any
preceding or succeeding breach of such provision or of any other
provision.

     

    12.  Entire
Agreement.  This Agreement constitutes the entire agreement and
understanding of the parties hereto with respect to the subject matter hereof
and no amendment, modification or waiver of any provision herein shall be
effective unless in writing, executed by the party charged
therewith.

     

    13.  Governing
Law.  This Agreement shall be construed, interpreted and
enforced in accordance with and shall be governed by the laws of the State of
New York applicable to agreements to be wholly performed therein, other than
those which would defer to the substantive laws of another
jurisdiction.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    14.  Binding
Effect.  This Agreement shall bind and inure to the benefit of
the parties, their successors and assigns.

     

    15.  Assignment and Delegation of
Duties.  This Agreement may not be assigned by the parties
hereto except that the Company shall have the right to assign this Agreement to
any successor in connection with a sale or transfer of all or substantially all
of its assets, a merger or consolidation.  This Agreement is in the
nature of a personal services contract and the duties imposed hereby are
non-delegable.

     

    16.  Paragraph
Headings.  The paragraph headings herein have been inserted for
convenience of reference only and shall in no way modify or restrict any of the
terms or provisions hereof.

     

    17.  Notices.  Any
notice under the provisions of this Agreement shall be in writing, shall be sent
by one of the following means, directed to the address set forth on the first
page of this Agreement or to such other address as shall be designated hereunder
by notice to the other party, effective upon actual receipt and shall be deemed
conclusively to have been given: (i) on the first business day following the day
timely deposited for overnight delivery with Federal Express (or other
equivalent national overnight courier service) or United States Express Mail,
with the cost of delivery prepaid or for the account of the sender; (ii) on the
fifth business day following the day duly sent by certified or registered United
States mail, postage prepaid and return receipt requested; or (iii) when
otherwise actually received by the addressee on a business day (or on the next
business day if received after the close of normal business hours or on any
non-business day).

     

    18.  Unenforceability;
Severability.  If any provision of this Agreement is found to
be void or unenforceable by a court of competent jurisdiction, the remaining
provisions of this Agreement shall, nevertheless, be binding upon the parties
with the same force and effect as though the unenforceable part has been severed
and deleted.

     

    19.  Code Section
409A.  The Company and the Employee agree to work together in
good faith to consider amendments to this Agreement necessary or appropriate to
avoid imposition of any additional tax or income recognition prior to actual
payment to Employee under Internal Revenue Code Section 409A and any temporary
or final Treasury Regulations and Internal Revenue Service guidance thereunder.
In the event any provision of this Agreement is not in compliance with Code
Section 409A, the Company will revise the Agreement as necessary, without the
consent of the Employee, to comply with Code Section 409A with respect to such
provision to best preserve the economic arrangement contemplated by such
provision.

     

    20.  Counterparts;
Facsimile.  This Agreement may be executed in one or more
counterparts and delivered by facsimile, each of which shall constitute an
original, and which when taken together, shall constitute one and the same
instrument.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed as of the date first
above written.

     

    
      
        	 
      	
                EMPLOYEE:

              
	 
      	 
      
	 
      	
                /s/ Jack Rhian

              
	 
      	
                Jack
      Rhian

              
	 
      	 
      
	 
      	
                COMPANY:

              
	 
      	 
      
	 
      	
                AMERICAN
      MEDICAL ALERT CORP.

              
	 
      	 
      
	 
      	
                By:

              	
                /s/ Richard Rallo

              
	 
      	 
      	
                Name:
      Richard Rallo

              
	 
      	 
      	
                Title:
      Chief Financial Officer

              

      

    

     

    
      
        
        

      

      
        9

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