Document:

AMENDED AND RESTATED SENIOR SECURED CONVERTIBLE
PROMISSORY NOTE

 

	$100,000	Cave Creek, Arizona

 

November 15, 2012, as amended on June 14,
2013

 

FOR VALUE RECEIVED,
the undersigned, Dethrone Royalty Holdings Inc. a Nevada Corporation (the “Company” or “DRHC”), agrees
and promises to pay to Pierce Csurgo (the “Holder”), located at ______________________________________________________
or at such other place or places as the Holder may designate in writing, One Hundred Thousand Dollars ($100,000), in legal tender
of the United States of America, in immediately available funds, on November 15, 2013.

 

		1.01	Senior Secured
                                         Convertible Note (hereinafter “Note”) being sold is subject to the terms
                                         and conditions of this Agreement.

 

		2.	Terms of the Senior
                                         Convertible Note.

 

		a.	Seniority
                                         of Note. The Note will be Senior to all notes, debentures and any loan entered into
                                         by the Company for the term of the Note until the Note is repaid in full.

 

		b.	Maturity:
                                         Is 365 Days from November 15, 2012. This Note will Mature on November 15, 2013.

 

		c.	Interest:
                                         20% per annum (US$20,000) payable quarterly (four quarterly payments of US$5,000).
                                         The first payment is due 90 days from November 15, 2012 (due date: February 15, 2013).
                                         The Second payment is due 180 days from November 15, 2012 (due date: May 15, 2012). The
                                         Third payment is due 270 days from November 15, 2012 (due date: August 15, 2012). The
                                         fourth and final payment is due 365 days from November 15, 2012 (due date: November 15,
                                         2012) along with the full principal amount.

 

		d.	Reserved.

 

		e.	Conversion
                                         Terms of Note:

 

		i.	At any time
                                         after the date of issuance and until the Note is no longer outstanding, the Note shall
                                         be convertible, in whole or in part into shares of the Company’s common stock (each
                                         a “Conversion Share”) at the rate of $0.001 per share (the “Conversion
                                         Price”), for a maximum of 100 Million shares of the Company’s common stock
                                         (subject to adjustments), at any time and at the option of the Holder. The Holder shall
                                         effect conversions by delivering to the Company a Notice of Conversion, the form of which
                                         is attached hereto as Annex A (each, a “Notice of Conversion”), specifying
                                         therein the principal amount of this Note to be converted and the date on which such
                                         conversion shall be effected (such date, the “Conversion Date”). If no Conversion
                                         Date is specified in a Notice of Conversion, the Conversion Date shall be the date that
                                         such Notice of Conversion is deemed delivered hereunder. To effect conversions hereunder,
                                         the Holder shall not be required to physically surrender this Note to the Company unless
                                         the entire principal amount of this Note, plus all accrued and unpaid interest thereon,
                                         has been so converted. Conversions hereunder shall have the effect of lowering the outstanding
                                         principal amount of this Note in an amount equal to the applicable conversion. The Holder
                                         and the Company shall maintain records showing the principal amount(s) converted and
                                         the date of such conversion(s). The Holder, and any assignee by acceptance of this Note,
                                         acknowledge and agree that, by reason of the provisions of this paragraph, following
                                         conversion of a portion of this Note, the unpaid and unconverted principal amount of
                                         this Note may be less than the amount stated on the face hereof.

 

    	 

    	 

    

 

		ii.	Mechanics
                                         of Conversion.

 

a)      Delivery
of Certificate Upon Conversion. Not later than three business days after each Conversion Date (the “Share Delivery Date”),
the Company shall deliver, or cause to be delivered, to the Holder a certificate or certificates representing the number of shares
of the Company’s common stock being acquired upon the conversion of this Note, to the extent that shares of the Company
are certificated.

 

b)      Fractional
Shares. No fractional shares shall be issued upon the conversion of this Note. As to any fraction of a share, which the Holder
would otherwise be entitled to purchase upon such conversion, the Company shall at its election, either pay a cash adjustment
in respect of such final fraction in an amount equal to such fraction multiplied by the Conversion Price or round up to the next
whole share.

 

c)      Transfer
Taxes and Expenses. The issuance of certificates for the shares due upon conversion of this Note shall be made without charge
to the Holder hereof for any documentary stamp or similar taxes that may be payable in respect of the issuance or delivery of
such certificates, provided that, the Company shall not be required to pay any tax that may be payable in respect of any transfer
involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the Holder of this
Note so converted and the Company shall not be required to issue or deliver such certificates unless or until the person or persons
requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction
of the Company that such tax has been paid.

 

		iii.	Holder’s
                                         Conversion Limitations. The Company shall not effect any conversion of this Note,
                                         and a Holder shall not have the right to convert any portion of this Note, pursuant to
                                         Section 2(e) or otherwise, to the extent that after giving effect to such issuance after
                                         conversion as set forth on the applicable Conversion Notice, the Holder (together with
                                         the Holder’s affiliates, and any other persons acting as a group together with
                                         the Holder or any of the Holder’s affiliates), would beneficially own in excess
                                         of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing
                                         sentence, the number of shares of common stock beneficially owned by the Holder and its
                                         affiliates shall include the number of shares of common stock issuable upon conversion
                                         of this Note with respect to which such determination is being made, but shall exclude
                                         the number of shares of common stock which would be issuable upon (i) conversion of the
                                         remaining, nonconverted portion of this Note beneficially owned by the Holder or any
                                         of its affiliates and (ii) exercise or conversion of the unexercised or nonconverted
                                         portion of any other securities of the Company (including, without limitation, any other
                                         common stock equivalents) subject to a limitation on conversion or exercise analogous
                                         to the limitation contained herein beneficially owned by the Holder or any of its affiliates.
                                         Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial
                                         ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange
                                         Act of 1934, as amended (the “Exchange Act”), and the rules and regulations
                                         promulgated thereunder, it being acknowledged by the Holder that the Company is not representing
                                         to the Holder that such calculation is in compliance with Section 13(d) of the Exchange
                                         Act and the Holder is solely responsible for any schedules required to be filed in accordance
                                         therewith. To the extent that the limitation contained in this Section applies, the determination
                                         of whether this Note is convertible (in relation to other securities owned by the Holder
                                         together with any affiliates) and of which portion of this Note is convertible shall
                                         be in the sole discretion of the Holder, and the submission of an Conversion Notice shall
                                         be deemed to be the Holder’s determination of whether this Note is convertible
                                         (in relation to other securities owned by the Holder together with any affiliates) and
                                         of which portion of this Note is convertible, in each case subject to the Beneficial
                                         Ownership Limitation, and the Company shall have no obligation to verify or confirm the
                                         accuracy of such determination. In addition, a determination as to any group status as
                                         contemplated above shall be determined in accordance with Section 13(d) of the Exchange
                                         Act and the rules and regulations promulgated thereunder. For purposes of this Section
                                         2(e), in determining the number of outstanding shares of common stock, a Holder may rely
                                         on the number of outstanding shares of common stock as reflected in (A) the Company’s
                                         most recent periodic or annual report filed with the Commission, as the case may be,
                                         (B) a more recent public announcement by the Company or (C) a more recent written notice
                                         by the Company or the Company’s transfer agent setting forth the number of shares
                                         of common stock outstanding. Upon the written or oral request of a Holder, the Company
                                         shall within five trading days confirm orally and in writing to the Holder the number
                                         of shares of common stock then outstanding. In any case, the number of outstanding shares
                                         of common stock shall be determined after giving effect to the conversion or exercise
                                         of securities of the Company, including the portion of this Note to be converted, by
                                         the Holder or its affiliates since the date as of which such number of outstanding shares
                                         of common stock was reported. The “Beneficial Ownership Limitation” shall
                                         be 4.99% of the number of shares of the common stock outstanding immediately after giving
                                         effect to the issuance of shares of common stock issuable upon conversion of the portion
                                         of this Note. The Holder, upon not less than 61 days’ prior notice to the Company,
                                         may increase or decrease the Beneficial Ownership Limitation of this Section. Any such
                                         increase or decrease will not be effective until the 61st day after such notice is delivered
                                         to the Company. The provisions of this paragraph shall be construed and implemented in
                                         a manner other than in strict conformity with the terms of this Section to correct this
                                         paragraph (or any portion hereof) which may be defective or inconsistent with the intended
                                         Beneficial Ownership Limitation herein contained or to make changes or supplements necessary
                                         or desirable to properly give effect to such limitation. The limitations contained in
                                         this paragraph shall apply to a successor holder of this Note.

 

    	 

    	 

    

 

		iv.	The Company
                                         shall cause its counsel (as often as required by the Holder) to issue a legal opinion
                                         to its transfer agent, at the Company’s sole expense, if required by the transfer
                                         agent, to effect the removal of the restrictive legends on the shares of the common stock
                                         issued upon conversion of the Note.

 

		f.	Prepayment
                                         of Note: The Company may, only with the prior consent of the Holder, pre-pay the
                                         Note within 180 days by paying 115% of the Principal due plus all accrued interest. From
                                         day 181 to 365 the Note can be pre-paid by paying 100% of the Note plus all accrued interest.

 

		g.	Security
                                         for Secured Note: The payment obligations of the Company (the “Obligation”)
                                         under this Note shall be secured by all assets of the Company (the “Collateral”).
                                         The Company hereby grants the Holder, to secure the performance in full of all of the
                                         Obligations, a continuing security interest in, and pledges to the Company, the Collateral,
                                         wherever located, whether now owned or hereafter acquired or arising, and all proceeds
                                         and products thereof. The Company hereby authorizes the Holder to file financing statements,
                                         without notice to the Company, with all appropriate jurisdictions to perfect or protect
                                         Holder’s interest or rights hereunder. Such financing statements may indicate the
                                         Collateral as “all assets of the Company” or words of similar effect, or
                                         as being of an equal or lesser scope, or with greater detail, all in Holder’s discretion.

 

		h.	Rights &
                                         Preferences: Liquidation Preference: In the event of any liquidation, dissolution
                                         or winding up of the Company, the holders of Senior Secured Note will be entitled to
                                         be paid as follows: First, the holders of the Senior Secured Convertible Note shall be
                                         entitled to receive any unpaid and accrued interest. Second, the full amount of the Principal
                                         due on the Note.

 

		i.	Condition
                                         of Default: Consequences. In the event of the occurrence of an Event of Default (as
                                         defined) the Holder may declare the entire unpaid principal balance of this Note immediately
                                         due and payable at the place of payment, without presentment, protest, notice or demand,
                                         all of which are expressly waived. The term “Event of Default” shall mean:

 

    	 

    	 

    

 

 

		(1)	The failure
                                         to pay any installment of interest due under this Note within thirty days after the day
                                         on which any such payment is due;

 

		(2)	The failure
                                         to pay the principal amount due under this Note within thirty days after the day on which
                                         any such payment is due;

 

		(3)	The Company
                                         makes an assignment for the benefit of creditors or admit in writing its inability to
                                         pay its debts generally as they become due or fail to generally pay its debts as they
                                         become due; an order, judgment or decree shall be entered for relief in respect of or
                                         adjudicating the Company or any of its subsidiaries bankrupt or insolvent; the Company
                                         or any of its subsidiaries shall petition or apply to any tribunal for the appointment
                                         of, or taking of possession by, a trustee, receiver, custodian, or liquidator or other
                                         similar official of the Company or any subsidiary or of any substantial part of any of
                                         their respective assets; the Company or any of its subsidiaries shall commence any proceeding
                                         relating to the Company or any subsidiary under any bankruptcy, reorganization, arrangement,
                                         insolvency, readjustment of debt, dissolution, or liquidation law of any jurisdiction,
                                         or any such petition or application is filed or any such proceeding is commenced against
                                         the company or any of its subsidiaries and such petition, application or proceeding is
                                         not dismissed within 60 days;

 

		(4)	Any representation
                                         or warranty made by the Company herein is breached or is false or misleading in any material
                                         respect, or any schedule, certificate, financial statement, report, notice, or other
                                         writing furnished by the Company to the holder is false or misleading in any material
                                         respect on the date as of which the facts therein set forth are stated or certified.

 

		(5)	The Company
                                         fails to have sufficient shares of common stock authorized and reserved for issuance
                                         upon conversion of the Note.

 

		(6)	Any breach
                                         of any covenant by the Company which is not cured within one (1) business day.

 

		j.	Limitation
                                         of Issuance of DRHC Shares: During the life of the Note. The Company will not issue
                                         Mr. McBride or Mr. Holley any additional common shares or any type of hybrid shares providing
                                         super voting preference over the Company’s Common Stock. In addition, the Company
                                         will not sell, transfer or issue in any respect the 1 Million shares of the Company’s
                                         preferred stock authorized without first seeking the written permission.

 

		k.	Adjustments.

 

		(1)	Stock Dividends
                                         and Stock Splits. If the Company, at any time while this Note is outstanding: (i)
                                         pays a stock dividend or otherwise makes a distribution or distributions payable in shares
                                         of common stock on shares of common stock or any common stock Equivalents (which, for
                                         avoidance of doubt, shall not include any shares of common stock issued by the Company
                                         upon conversion of, or payment of interest on, the Note), (ii) subdivides outstanding
                                         shares of common stock into a larger number of shares, (iii) combines (including by way
                                         of a reverse stock split) outstanding shares of common stock into a smaller number of
                                         shares or (iv) issues, in the event of a reclassification of shares of the common stock,
                                         any shares of capital stock of the Company, then the Conversion Price shall be multiplied
                                         by a fraction of which the numerator shall be the number of shares of common stock (excluding
                                         any treasury shares of the Company) outstanding immediately before such event and of
                                         which the denominator shall be the number of shares of common stock outstanding immediately
                                         after such event. Any adjustment made pursuant to this Section shall become effective
                                         immediately after the record date for the determination of stockholders entitled to receive
                                         such dividend or distribution and shall become effective immediately after the effective
                                         date in the case of a subdivision, combination or re-classification.

 

    	 

    	 

    

 

	 	(2)	Fundamental Transaction. If, at any time while this Note is outstanding, (i) the Company
    effects any merger or consolidation of the Company with or into another Person (ii) the Company effects any sale of all or
    substantially all of its assets in one transaction or a series of related transactions, (iii) any tender offer or exchange
    offer (whether by the Company or another Person) is completed pursuant to which holders of common stock are permitted to tender
    or exchange their shares for other securities, cash or property, or (iv) the Company effects any reclassification of the common
    stock or any compulsory share exchange pursuant to which the common stock is effectively converted into or exchanged for other
    securities, cash or property (in any such case, a “ Fundamental Transaction ”), then, upon any subsequent
    conversion of this Note, the Holder shall have the right to receive, for each Conversion Share that would have been issuable
    upon such conversion immediately prior to the occurrence of such Fundamental Transaction, the same kind and amount of securities,
    cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been,
    immediately prior to such Fundamental Transaction, the holder of 1 share of common stock of the Company (the “ Alternate
    Consideration ”). For purposes of any such conversion, the determination of the Conversion Price shall be appropriately
    adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of 1
    share of common stock in such Fundamental Transaction, and the Company shall apportion the Conversion Price among the Alternate
    Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration.
    If holders of common stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction,
    then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this Note
    following such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions, any successor to the
    Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new note consistent with the foregoing
    provisions and evidencing the Holder’s right to convert such note into Alternate Consideration. The terms of any agreement
    pursuant to which a note Transaction is effected shall include terms requiring any such successor or surviving entity to comply
    with the provisions of this Section and insuring that this Note(or any such replacement security) will be similarly adjusted
    upon any subsequent transaction analogous to a Fundamental Transaction.,

 

	 	(3)	Calculations. All calculations under this Section 2(i) shall be made to the nearest
    cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section the number of shares of common stock
    deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of common stock (excluding
    any treasury shares of the Company) issued and outstanding.

 

	 	(4)	Notice to the Holder.

 

i.       Adjustment
to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 2(i) the Company
shall promptly deliver to each Holder a notice setting forth the Conversion Price after such adjustment and setting forth a brief
statement of the facts requiring such adjustment.

 

ii.      Notice
to Allow Conversion by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on
the common stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the common stock, (C)
the Company shall authorize the granting to all holders of the common stock of rights or warrants to subscribe for or purchase
any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required
in connection with any reclassification of the common stock, any consolidation or merger to which the Company is a party, any
sale or transfer of all or substantially all of the assets of the Company, of any compulsory share exchange whereby the common
stock is converted into other securities, cash or property or (E) the Company shall authorize the voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be filed at each office
or agency maintained for the purpose of conversion of this Note and shall cause to be delivered to the Holder at its last address
as it shall appear upon the Note Register, at least twenty (20) calendar days prior to the applicable record or effective date
hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution,
redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the common stock of record
to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such
reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date
as of which it is expected that holders of the common stock of record shall be entitled to exchange their shares of the common
stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange, provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect
the validity of the corporate action required to be specified in such notice. The Holder is entitled to convert this Note during
the 20-day period commencing on the date of such notice through the effective date of the event triggering such notice.

 

    	 

    	 

    

 

	 	l.	Reserved.

 

	 	m.	Information and Registration Rights:

 

	 	(1)	Information Rights; The Company shall remain current with all its filings with the Securities
    & Exchange Commission.

 

	 	(2)	Piggyback Registration: The Holder will be entitled to “piggyback” registration
    rights on registrations of the Company or on any demand registrations, subject to the right of the Company and its underwriters,
    in view of market conditions, to reduce or eliminate the number of shares of the Holder proposed to be registered.

 

	 	(3)	Registration Expenses: All registration expenses (exclusive of underwriting discounts and
    commissions and special counsel fees of a selling shareholder) shall be borne by the Company.

 

3. Use of Proceeds.
DRHC will utilize the proceeds received from the Note Holder for General Working Capital and product Production.

 

4.            Place
and Manner of Payment. All sums due under this Note are payable notless than 12:30 P.M., New York time, in legal tender
of the United States of America current on the dates such sums or payments are respectively due, in immediately available
funds, without offset or setoff.

 

5.            No
Setoff, Etc. The obligations of the Company to pay the principal balance due to the Holder shall be absolute and
unconditional and the Company shall make such payment without abatement, diminution or deduction regardless of any cause or
circumstances whatsoever including, without limitation, any defense, setoff, recoupment, or counterclaim which the Company
may have or assert against the Holder or any other person.

 

6.            Waiver
of Presentment, Etc. The Company waives presentment, demand, notice of dishonor, protest and notice of nonpayment and protest.

 

    	 

    	 

    

 

7.            Costs
of Collection. The Company shall pay all costs and expenses of collection incurred by the Holder, including reasonable attorneys’
fees.

 

8.            Notices.

 

a.       Any
notice pursuant to this Note to be given or made by the Holder to or upon the Company shall be sufficiently given or made if sent
by certified or registered mail, postage prepaid, addressed (until another address is sent by the company to the Holder) as follows:

 

Dethrone Royalty
Holdings, Inc.

5137 E Armor St.

Cave Creek AZ 85331

 

	 	Carbon Copy:	Sichenzia Ross Friedman Ference LLP
	 	 	61 Broadway
	 	 	New York, New York, 10006
	 	 	Attention: Andrea Cataneo

 

b.        Any
notice pursuant to this Note to be given or made by the Company to or upon the Holder shall be sufficiently given or made if sent
by certified or registered mail, postage prepaid, addressed (until another address is sent by the Holder to the Corporation) to
the address of the Holder set forth above.

 

11.          Governing
Law. This Note shall be governed by and construed in accordance with the internal laws of the State of Nevada.

 

12.          Register
of Notes. The Company shall keep at its principal office (or such other place the Company reasonably designates) a
register for the registration of Notes. Each transfer of the Notes and payment thereunder as well as the name and address of
such holder of Notes shall be noted on the register of Notes. The register shall be made available by the Company for review
by the Holder or his agent during usual business hours of the Company .

 

13.          Modification
and Waiver. No modification or waiver of any provision of thisNote, nor any departure by the Company therefrom,
shall in any event be effective unless the same shall be in writing signed by the Holder and then such modification or waiver
shall be effective only in the specific instance for the specific purpose given.

 

14.          Neither
failure of Holder to exercise nor any delay on the part of the Holder in exercising any right, remedy, discretion or power granted
hereunder shall be or constitute a waiver thereof. The obligation herein set forth shall be binding upon Maker and successors
and assigns, and shall inure to the benefit of the Holder and its successors and assigns.

 

15.          Maker
hereby waives presentment for payment, protest and notice of protest and, except as otherwise specified herein, all other notices
or demands in connection with delivery, acceptance, performance, default or endorsement of this Note.

 

    	 

    	 

    

 

	Attest:
	Dethrone Royalty Holdings, Inc.
	 	 	 	 
	 	By:	 	 
	 	Name:	Toby McBride	 
	 	Chief Executive Officer
	 	 	 	 
	 	By:	 	 
	 	Name:	Mike Holley	 
	 	President
	 	 	 	 
	Acknowledged and Agreed:
	 	 	 	 
	 	 
	Pierce CsurgoEnerJex Resource, Inc.

        4040 Broadway, Suite 508

        San Antonio, Texas 78209

        (210) 451-5545

 

December 30, 2013

 

EnerJex Resources, Inc.

Working Interest, LLC

4040 Broadway, Suite 508

San Antonio, Texas 78209

Attn: Robert Watson Jr.

 

MorMeg, LLC

11551 Ash St., Suite 205

Leawood, Kansas 66211

Attn: Mark Haas

 

		Re:	Participation Agreement

Golden Project, Woodson County, Kansas

 

Gentlemen:

 

This letter when fully executed will evidence
an agreement (hereinafter referred to as the “Participation Agreement” or this “Agreement”) and will set
forth the terms and conditions of the drilling and development of the Golden Project, as hereinafter described, between Working
Interest, LLC (hereinafter referred to as “EnerJex”); MorMeg, LLC (hereinafter referred to as “MorMeg”);
and Haas Petroleum, LLC (hereinafter referred to as “Haas”), with EnerJex, MorMeg, and Haas hereinafter referred to
individually as a “Party” and collectively as “Parties”.

 

		I.	GOLDEN PROJECT ACREAGE

 

MorMeg owns certain oil, gas
and/or mineral leases covering lands located in Woodson County, Kansas (hereinafter referred to as the “Golden Project”
or the “Subject Interests”) as further described in Exhibit “A” attached hereto. Per the terms of this
Agreement, the Parties hereby establish an Area of Mutual Interest (the “AMI”) covering the Golden Project, and the
AMI is highlighted in yellow on the plat attached hereto as Exhibit “A”.

 

		II.	WORKING INTEREST OWNERSHIP AND AGREEMENT TERMS

 

EnerJex shall immediately earn a 70% working
interest in the Subject Interests in exchange for the following consideration:

 

		A.	EnerJex shall pay seventy nine thousand five hundred
fifty five dollars ($79,555) in cash to MorMeg to purchase a 70% working interest in the Subject Interests. Such payment shall
be made on or before January 10, 2014.

 

		B.	EnerJex agrees to pay 100%, up to a maximum of three
hundred twenty thousand four hundred forty five dollars ($320,445), of all capital expenditures incurred during the drilling and
any testing and completion operations associated with three (3) new wells (the "Initial Wells") in the Golden Project
(the “Earn In CAPEX”) prior to June 30, 2014, unless the Parties mutually agree to extend that date (the "Earn
In Date"). Any Dry Hole(s) drilled shall count as an Initial Well(s) as required in this Agreement. Dry Hole(s) shall mean
a well in which the Parties determine is not capable of producing hydrocarbons economically, and the Parties elect to plug and
abandon the well. Capital expenditures shall include
all expenses associated with drilling, testing, completing, laying lines, purchasing surface equipment (i.e. pump jacks), purchasing
facility equipment, and installation expenses.

 

MorMeg agrees to assign a 70% working interest
in the Subject Interests to EnerJex on or prior to December 31, 2013, and EnerJex agrees to reassign all of its working interest
in the Subject Interests to MorMeg in the event that EnerJex does not fulfill its obligations pursuant to sections II.A and II.B,
above, prior to the Earn In Date.

 

The Parties agree that production proceeds
will be split ratably in accordance with the working interests shown in the table below, and the Parties agree that each Party
will pay its ratable share of capital expenditures and operating expenses in accordance with the table below.

 

Before
Earn In and After Earn In Working Interests

 

	Party	 	Capital 
 Expenditures
 before Earn In
 CAPEX	 	 	Capital 
 Expenditures
 after Earn In
 CAPEX	 	 	All Operating
 Expenses	 	 	Lease Net 
 Revenue	 
	Working Interest LLC	 	 	100.000	%	 	 	70.000	%	 	 	70.000	%	 	 	70.000	%
	MorMeg LLC	 	 	0.000	%	 	 	30.000	%	 	 	30.000	%	 	 	30.000	%
	Total	 	 	100.000	%	 	 	100.000	%	 	 	100.000	%	 	 	100.000	%

 

		III.	OPERATING AGREEMENT

 

All operations within the AMI shall be
subject to the terms and conditions of an industry standard Joint Operating Agreement (the "JOA"), including all of the
exhibits that are attached to this Agreement and made a part hereof. By execution of this Participation Agreement, the Parties
do hereby adopt, ratify and confirm the terms and conditions of the JOA and its exhibits. Per the JOA, Haas Petroleum, LLC
is designated operator for the Parties for any and all wells that may be drilled within the AMI, subject only to the JOA
provisions governing the rights of the participating Parties to appoint a substitute operator in the event that the operator elects
to non-consent a proposed operation.

 

    	 

    	 

    

 

		IV.	INFORMATION REGARDING OPERATIONS

 

Upon written request of the Parties, the
operator shall provide the following information in connection with each and every well drilled hereunder:

 

		(1)	Furnish each of the Parties with full and complete copies (currently as filed) of all applications,
reports, notices, digests or surveys required by the regulatory bodies of the State of Kansas in connection with the drilling,
testing, completing, producing, plugging, and abandoning of such well and copies of any and all permits, notices, orders, and special
rules or regulations issued by the State of Kansas as to such well and its production;

 

		(2)	Notify each of the Parties prior to coring, logging or testing of a substantial section of prospective
oil or gas horizons, and allow geologists, engineers and other authorized representatives, at their sole risk and expense, to visit
and inspect any well site and rig when and as they desire and to witness preparations for and the actual performance of any and
all drilling, testing, coring, logging, surveying, completing, shutting-in, abandoning, and other operations thereon. Any Party
that intends to make an on-site inspection must give the operator as much notice as is reasonably possible prior to making the
on-site inspection. Each Party shall advise the operator as to the names of such Party’s representative(s) that will be available
at all times during which a drilling rig is on location, and provide the operator with appropriate contact phone numbers;

 

		(3)	Furnish each of the Parties copies of all logs and other well data;

 

		V.	NOTICES

 

All notices, authorized or required, between
the Parties hereto, unless otherwise specifically provided herein or in the JOA, shall be in writing by mail, postage or charges
prepaid, or email or facsimile, and addressed to the Party to whom the notice is given, as set forth below. The originating notice
given under any provision hereof shall be deemed to have been effectively given when received, and the time given for response
thereto shall run from such time and date the notice was effectively given. The second or responsive notice shall be deemed given
when received. Each Party shall have the right to change its addresses and telephone number at any time by giving written notice
thereof to the other Parties.

 

	Working Interest, LLC	MorMeg, LLC
	EnerJex Resources, Inc.	Haas Petroleum, LLC
	4040 Broadway, Suite 508	11551 Ash St, Suite 205
	San Antonio, Texas 78209	Leawood, KS 66211
	Attn: Robert Watson Jr	Attn: Mark Haas
	(210) 451-5545 (office)	(913) 207-0255 (mobile)
	rwatson@enerjexresources.com	mark@haaspetroleum.com

 

    	 

    	 

    

 

		VI.	NO PARTNERSHIP

 

It is not the purpose of this Participation
Agreement to create, nor shall the same be construed as creating, a mining partnership, commercial partnership, or other partnership
relationship, nor shall the operations of the Parties hereunder be construed to be a joint venture. Moreover, the liability of
the Parties hereto shall be several and not joint or collective. Notwithstanding the foregoing, if for federal income tax purposes,
however, the operations hereunder are regarded as a partnership, then each Party elects to be excluded from the application of
all provisions of Subchapter “K”, Chapter 1, Subtitle “A”, of the Internal Revenue Code 1954, as amended
in 1986 and as permitted and authorized by Section 761 of the code and regulations promulgated there under.

 

		VII.	ASSIGNMENTS OF INTERESTS

 

The Parties shall have the right to freely
assign their respective interest in any Subject Interest and any rights within the AMI provided that i) such assignment is made
in accordance with the terms and conditions defined in the JOA and, ii) provided that the assigning party provide notice of its
intent to assign to all other Parties within 30 days prior to the execution of definitive documentation affecting such assignment.

 

		VIII.	CONFLICTS AMONG AGREEMENTS

 

In the event of any conflict or inconsistency
between the terms and conditions of this Participation Agreement and the terms of the JOA and its exhibits or amendments, the terms
and conditions of this Participation Agreement shall control and prevail. In the event of an inconsistency between the terms and
conditions of any prior agreement, written or otherwise, the terms and conditions hereof shall prevail and control.

 

		IX.	CONFIDENTIAL INFORMATION

 

The Parties hereto agree to keep any and
all geological, geophysical, well and land information pertaining to the AMI confidential. No Party shall have the right without
the written consent of the other Parties, which consent shall not be unreasonably withheld, to provide any such information to
any party not a Party to or otherwise subject to this Participation Agreement; provided, however, such prohibition shall not apply
to disclosures: (i) to entities engaged in the business of providing financing for exploration and development (including banks,
investment banks, or third-party prospective investors) with which a Party may be seeking or has obtained funds for exploration
and development in the AMI so long as such entity agrees in writing to acknowledge such information as confidential and not to
disclose the same to third parties; (ii) to bona fide potential purchasers of a Party’s interests in the in the AMI so long
as such party agrees in writing to acknowledge such information as confidential and not to disclose the same to third parties;
or (iii) as required by law, rule or regulation of any governing body or stock exchange.

 

		X.	MISCELLANEOUS

 

The terms, covenants and conditions hereof
shall extend to and be binding upon each of the Parties hereto, and its respective heirs, personal representatives, successors
and assigns.

 

    	 

    	 

    

 

This Agreement, including all Exhibits
attached hereto, constitutes the entire agreement and understanding between the parties hereto and supersedes all prior agreements,
understandings, representations, promises, negotiations and discussions, whether oral or written, of the parties with respect to
the subject matter hereof.

 

Time is of the essence in the performance
of the duties, terms, and obligations of this Agreement. The captions in this Agreement are for the convenience of reference only,
and they shall not limit or otherwise affect the construction or interpretation of any provision of this Agreement.

 

This Agreement is entered into in the State
of Kansas, and all matters relating to the validity, construction, interpretation and performance hereunder shall be determined
in accordance with the laws of the State of Kansas, excluding its conflicts of laws rules. It is further understood and agreed
between the parties hereto that all sums due and payable hereunder are due and payable in Overland Park, Kansas, and the venue
for any cause of action of whatsoever nature arising hereunder is hereby fixed in the State of Kansas. If any provision of this
Agreement is or may be held by a court of competent jurisdiction of be invalid, void or unenforceable, the remaining provisions
shall nevertheless survive and continue in full force and effect without being impaired or invalidated in any way.

 

This Participation Agreement may be executed
in any number of multiple counterparts, each of which shall constitute and have the effect of an original, and all of which when
taken together shall constitute but one agreement and shall be binding upon each Party, its heirs, successors, assigns and legal
representatives executing the same, whether not executed by all of the Parties to which it is addressed.

 

If the terms and conditions set forth
herein adequately and completely reflect our agreement, you must indicate your acceptance and approval by executing this Participation
Agreement in the spaces provided and return the complete set of additional signature pages of this Participation Agreement to EnerJex
Resources, Inc., attention Robert Watson Jr., on or before December 31, 2013, at 5:00 PM CST at which time this Participation
Agreement shall become binding upon the Parties hereto.

 

    	 

    	 

    

 

 

BY SIGNING IN THE SPACES BELOW, THE
PARTICIPANTS IN THE GOLDEN PROJECT HEREBY INDICATE THEIR ACCEPTANCE AND APPROVAL OF THIS PARTICIPATION AGREEMENT EFFECTIVE AS OF
DECEMBER 1, 2013, (THE “EFFECTIVE DATE”). 

 

Very truly yours,

 

Working Interest, LLC.

 

 

	By:	 	 
	 	Robert Watson Jr.	 
	 	Manager	 

 

 

MorMeg, LLC.

 

 

	By:	 	 
	Name:	Mark Haas	 
	Title:  	Manager	 

 

    	 

    	 

    

 

EXHIBIT A

LAND PLAT SHOWING AMI AND SUBJECT
INTERESTS

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