Document:

Exhibit 10.3

 

PROMISSORY NOTE

 

	$125,555.97	March 26, 2018

 

1.                 
Agreement to Pay. FOR VALUE RECEIVED, ENERJEX RESOURCES, INC.,
a Nevada corporation (“Maker”) hereby promises to pay to the order of PASS CREEK RESOURCES LLC,
a Delaware limited liability company (“Lender”), the principal sum of ONE HUNDRED TWENTY FIVE THOUSAND
FIVE HUNDRED FIFTY FIVE and 97/100 DOLLARS ($125,555.97) (the “Loan”), at
the place and in the manner hereinafter provided, together with interest thereon at the rate or rates described below, and any
and all other amounts which may be due and payable hereunder from time to time. The maturity date of this Promissory Note (the
“Note”) is March 26, 2019 (the “Maturity Date”).

 

2.                 
Interest Rate.

 

2.1             
Interest Prior to Default. Interest shall accrue on the outstanding principal balance of this Note from the date
hereof through the Maturity Date at an annual rate equal to six percent (6%) (“Interest Rate”). 

 

2.2             
Interest After Default. From and after the Maturity Date, or upon the occurrence and during the continuance of an
Event of Default (as defined hereinafter), interest shall accrue on the balance of principal remaining unpaid during any such period
at an annual rate (“Default Rate”) equal to five percent (5%) plus the Interest Rate; provided, however,
in no event shall the Default Rate exceed the maximum rate permitted by law. The interest accruing under this paragraph shall be
immediately due and payable by Maker to the holder of this Note upon demand and shall be additional indebtedness evidenced by this
Note.

 

2.3             
Interest Calculation. Interest on this Note shall be calculated on the basis of a 360-day year and the actual number
of days elapsed in any portion of a month in which interest is due. Maker hereby acknowledges and agrees that the use of a 360-day
year in the calculation of the interest hereunder will result in a greater effective rate of interest than the stated rate set
forth above. Maker hereby waives any and all counter claims, defenses, causes of action, arguments or other claims it may have
against Lender in connection with or in any way related to the calculation of interest based upon a 360-day year.

 

3.                 
Payment Terms.

 

3.1             
Principal and Interest. Payments of principal and interest due under this Note, if not sooner declared to be due
in accordance with the provisions hereof, shall be made as follows:

 

(a) Regularly
Scheduled Interest and Principal Payments. Commencing on April 1, 2018 and continuing on the first (1st) day of each month
thereafter (each, a “Payment Date”), to and including the month in which the Maturity Date occurs, Maker shall
pay and deliver to Lender: (i) consecutive monthly payments of principal in an amount to fully amortize the principal balance of
this Note over a twelve (12) month period; and (ii) accrued and unpaid interest on the outstanding principal balance of this Note,
in arrears.

 

     

     

    

 

(b)       Maturity
Date. The unpaid principal balance of this Note, if not sooner paid or declared to be due in accordance with the terms hereof,
together with all accrued and unpaid interest thereon and any other amounts due and payable hereunder, shall be due and payable
in full on the Maturity Date.

 

3.2             
Application of Payments. Prior to the occurrence of an Event of Default, all payments and prepayments on account
of the indebtedness evidenced by this Note shall be applied as follows: (a) first, to fees, expenses, costs and other similar
amounts then due and payable to Lender, (b) second, to accrued and unpaid interest on the principal balance of this Note,
(c) third, to the payment of principal due in the month in which the payment or prepayment is made, (d) fourth, to any
escrows, impounds or other amounts which may then be due and payable, (e) fifth, to any other amounts then due Lender hereunder,
and (f) last, to the unpaid principal balance of this Note in the inverse order of maturity. Any prepayment on account of
the indebtedness evidenced by this Note shall not extend or postpone the due date or reduce the amount of any subsequent monthly
payment of principal and interest due hereunder. After an Event of Default has occurred and is continuing, payments may be applied
by Lender to amounts owed hereunder in such order as Lender shall determine, in its sole discretion.

 

3.3             
Method of Payments. All payments of principal and interest hereunder shall be paid by automatic debit, wire transfer,
check or in coin or currency which, at the time or times of payment, is the legal tender for public and private debts in the United
States of America and shall be made at such place as Lender or the legal holder or holders of this Note may from time to time appoint
in the payment invoice or otherwise in writing, and in the absence of such appointment, then at the offices of Lender at:

 

Pass Creek Resources

404 Broadway, Suite 508

San Antonio, Texas

Attn: Robert Watson Jr.

 

Payment made
by check shall be deemed paid on the date Lender receives such check; provided, however, that if such check is subsequently returned
to Lender unpaid due to insufficient funds or otherwise, the payment shall not be deemed to have been made and shall continue to
bear interest until collected. Notwithstanding the foregoing, the final payment due under this Note must be made by wire transfer
or other final funds.

 

3.4             
Late Charge. If any payment of interest or principal due hereunder is not made within ten (10) days after such payment
is due in accordance with the terms hereof, then, in addition to the payment of the amount so due, Maker shall pay to Lender a
“late charge” of five cents for each whole dollar so overdue to defray part of the cost of collection and handling
such late payment. Maker agrees that the damages to be sustained by the holder hereof for the detriment caused by any late payment
are extremely difficult and impractical to ascertain, and that the amount of five cents for each one dollar due is a reasonable
estimate of such damages, does not constitute interest, and is not a penalty. Notwithstanding the foregoing, this Section 3.4
shall not be applicable to the final principal payment, if any, that is due in full upon the Maturity Date in accordance with Section
3.1(b).

 

     

     

    

 

3.5             
Prepayment. Provided that no Event of Default then exists, Maker reserves the right to prepay, without penalty, an
any Payment Date, the unpaid principal balance of this Note, in whole or in part; provided, that (a) Maker pays, at the time of
such prepayment, all accrued and unpaid interest and all other unpaid indebtedness then due, and (b) Maker acknowledges that no
such amount prepaid may be reborrowed.

 

4.                 
Events of Default. The occurrence of any one or more of the following events shall constitute an "Event of
Default" under this Note:

 

4.1 
 the failure by Maker to pay (i) any installment of principal or interest payable pursuant to this Note when due,
or (ii) any other amount payable to Lender under this Note or any other document within ten (10) days of the date when any
such payment is due in accordance with the terms hereof or thereof; or

 

4.2 
 the occurrence of the dissolution, insolvency or winding-up, as applicable, of Maker.

 

5.                 
Remedies. At the election of the holder hereof, and without notice, the principal balance remaining unpaid under
this Note, and all unpaid interest accrued thereon and any other amounts due hereunder, shall be and become immediately due and
payable in full upon the occurrence of any Event of Default. Failure to exercise this option shall not constitute a waiver of the
right to exercise same in the event of any subsequent Event of Default. No holder hereof shall, by any act of omission or commission,
be deemed to waive any of its rights, remedies or powers hereunder or otherwise unless such waiver is in writing and signed by
the holder hereof, and then only to the extent specifically set forth therein. The rights, remedies and powers of the holder hereof,
as provided in this Note, are cumulative and concurrent, and may be pursued singly, successively or together against Maker and
any other security given at any time to secure the repayment hereof, all at the sole discretion of the holder hereof. If any attorneys
are employed to collect this Note or any part hereof, Maker promises and agrees to pay all costs of collection, including reasonable
attorneys' fees and court costs. 

 

6.                 
Covenants and Waivers. Maker and all others who now or may at any time become liable for all or any part of the obligations
evidenced hereby, expressly agree hereby to be jointly and severally bound, and jointly and severally: (i) waive and renounce
any and all homestead, redemption and exemption rights and the benefit of all valuation and appraisement privileges against the
indebtedness evidenced by this Note or by any extension or renewal hereof; (ii) waive presentment and demand for payment,
notices of nonpayment and of dishonor, protest of dishonor, and notice of protest; (iii) except as expressly provided in this
Note, waive any and all notices in connection with the delivery and acceptance hereof and all other notices in connection with
the performance, default, or enforcement of the payment hereof or hereunder; (iv) waive any and all lack of diligence and
delays in the enforcement of the payment hereof; (v) agree that the liability of Maker, any guarantor, endorser or obligor
shall be unconditional and without regard to the liability of any other person or entity for the payment hereof, and shall not
in any manner be affected by any indulgence or forbearance granted or consented to by Lender to any of them with respect hereto;
(vi) consent to any and all extensions of time, renewals, waivers, or modifications that may be granted by Lender with respect
to the payment or other provisions hereof, and to the release of any security at any time given for the payment hereof, or any
part thereof, with or without substitution, and to the release of any person or entity liable for the payment hereof; and (vii) consent
to the addition of any and all other makers, endorsers, guarantors, and other obligors for the payment hereof, and to the acceptance
of any and all other security for the payment hereof, and agree that the addition of any such makers, endorsers, guarantors or
other obligors, or security shall not affect the liability of Maker, any guarantor and all others now liable for all or any part
of the obligations evidenced hereby. This provision is a material inducement for Lender making the Loan to Maker.

 

     

     

    

 

7.                 
Other General Agreements.

 

7.1             
The Loan is a business loan which comes within the purview of applicable law. Maker agrees that the Loan evidenced by this
Note is an exempted transaction under the Truth In Lending Act, 15 U.S.C., Section 1601, et seq.

 

7.2             
Time is of the essence hereof.

 

7.3             
This Note is governed and controlled as to validity, enforcement, interpretation, construction, effect and in all other
respects by the statutes, laws and decisions of the State of Texas. This Note may not be changed or amended orally but only by
an instrument in writing signed by the party against whom enforcement of the change or amendment is sought.

 

7.4             
Lender shall not be construed for any purpose to be a partner, joint venturer, agent or associate of Maker or of any lessee,
operator, concessionaire or licensee of Maker in the conduct of its business, and by the execution of this Note, Maker agrees to
indemnify, defend, and hold Lender harmless from and against any and all damages, costs, expenses and liability that may be incurred
by Lender as a result of a claim that Lender is such partner, joint venturer, agent or associate.

 

7.5             
If this Note is executed by more than one party, the obligations and liabilities of each Maker under this Note shall be
joint and several and shall be binding upon and enforceable against each Maker and their respective successors and assigns. This
Note shall inure to the benefit of and may be enforced by Lender and its successors and assigns.

 

7.6             
If any provision of this Note is deemed to be invalid by reason of the operation of law, or by reason of the interpretation
placed thereon by any administrative agency or any court, Maker and Lender shall negotiate an equitable adjustment in the provisions
of the same in order to effect, to the maximum extent permitted by law, the purpose of this and the validity and enforceability
of the remaining provisions, or portions or applications thereof, shall not be affected thereby and shall remain in full force
and effect.

 

7.7             
If the interest provisions herein shall result, at any time, in an effective rate of interest which, for any month, exceeds
the limit of usury or other laws applicable to the Loan, all sums in excess of those lawfully collectible as interest of the period
in question shall, without further agreement or notice between or by any party hereto, be applied upon principal immediately upon
receipt of such monies by Lender, with the same force and effect as though the payer has specifically designated such extra sums
to be so applied to principal and Lender had agreed to accept such extra payment(s) as a premium-free prepayment. Notwithstanding
the foregoing, however, Lender may at any time and from time to time elect by notice in writing to Maker to reduce or limit the
collection to such sums which, when added to the said first-stated interest, shall not result in any payments toward principal
in accordance with the requirements of the preceding sentence. In no event shall any agreed to or actual exaction as consideration
for this Note transcend the limits imposed or provided by the law applicable to this Note for the use or detention of money or
for forbearance in seeking its collection.

 

     

     

    

 

7.8             
Lender may at any time assign its rights in this Note, or any part thereof and transfer its rights in any or all of the
collateral (if any), and Lender thereafter shall be relieved from all liability with respect to such collateral (if any). In addition,
Lender may at any time sell one or more participations in the Note. Maker may not assign its interest in this Note, or any other
agreement with Lender or any portion thereof, either voluntarily or by operation of law, without the prior written consent of Lender.

 

8.                 
Notices. Any notice, request or demand given or made under this Agreement
or any of the Closing Documents shall be in writing and shall be hand delivered or sent by Federal Express or other reputable courier
service or by postage prepaid registered or certified mail, return receipt requested, and shall be deemed given (i) when received
at the following applicable addresses if hand delivered or if sent by Federal Express or other reputable courier service, and (ii)
five (5) business days after being postmarked and addressed as follows if sent by registered or certified mail, return receipt
requested:

 

	If to Maker:	
        EnerJex Resources, Inc.

        4040 Broadway, Suite 508

        San Antonio, Texas 78209

        Attn:Louis Schott, Chief
        Executive Officer

        Telephone: (210) 451-5545

        Electronic Mail:
        lgschott@hotmail.com

	 	 
	With copy to:	
        Dickinson Wright PLLC

        350 East Las Olas Blvd.,
        Suite 1750

        Ft. Lauderdale, Florida
        33301

        Attn: Joel D. Mayersohn

        Telephone: (954) 991-5426

        Facsimile: (844) 670-6009

        Electronic Mail:
        jmayersohn@dickinsonwright.com

	 	 
	If to Lender:	
        Pass Creek Resources

        404 Broadway, Suite 508

        San Antonio, Texas

        Attn: Robert Watson Jr.

        Telephone: (210) 451-5545

        Facsimile: (210) 463-9297

        Electronic Mail:
        rwatson@passcreekresources.com

	 	 
	With copy to:	
        Holland & Knight
        LLP

        131 S. Dearborn St.,
        30th Floor

        Chicago, Illinois 60603

        Attn: Joshua M. Spencer

        Telephone: (312) 715-5709

        Facsimile: (312) 578-6666

        Electronic Mail:
        joshua.spencer@hklaw.com

 

     

     

    

 

9.                 
Consent to Jurisdiction. TO INDUCE LENDER TO ACCEPT THIS NOTE, MAKER IRREVOCABLY AGREES THAT, SUBJECT TO LENDER'S
SOLE AND ABSOLUTE ELECTION, ALL ACTIONS OR PROCEEDINGS IN ANY WAY ARISING OUT OF OR RELATED TO THIS NOTE WILL BE LITIGATED IN COURTS
HAVING SITUS IN SAN ANTONIO, TEXAS. MAKER HEREBY CONSENTS AND SUBMITS TO THE JURISDICTION OF ANY COURT LOCATED WITHIN SAN ANTONIO,
TEXAS, WAIVES PERSONAL SERVICE OF PROCESS UPON MAKER, AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY REGISTERED MAIL
DIRECTED TO MAKER AT THE ADDRESS STATED IN THIS NOTE AND SERVICE SO MADE WILL BE DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT.

 

10.             
Waiver of Jury Trial. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HERETO HEREBY KNOWINGLY
AND VOLUNTARILY MUTUALLY (A) WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION, CLAIM, COUNTERCLAIM, CROSS-CLAIM, THIRD-PARTY CLAIM,
DISPUTE, DEMAND, SUIT OR PROCEEDING ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS NOTE AND THE TRANSACTIONS CONTEMPLATED HEREBY,
AND (B) AGREE THAT ANY SUCH ACTION, CLAIM, SUIT OR PROCEEDING SHALL BE TRIED BEFORE A JUDGE AND NOT BEFORE A JURY.

 

11.             
Option. The Maker hereby grants to the Lender (or any other subsequent holder of this Note) an option to convert
the principal outstanding balance of this Note into common stock of the Maker at a pre-split cost of $0.06125 per share (the “Option”).
The Option may be exercised within thirty (30) days after the Maker has received written notice of the Lender’s or such other
subsequent holder’s intent to exercise the Option. Upon exercise of the Option, this Note shall be deemed cancelled upon
the receipt by Lender, or such other subsequent holder of this Note, of the common stock shares (and all other documents or agreements
in connection therewith) necessary for Lender or such other subsequent holder of this Note to become a shareholder of the Maker.
Notwithstanding any other provision to the contrary contained herein or in any other document, the exercise of the Option shall
be at the sole and absolute discretion of the Lender or such other subsequent holder of this Note, and Lender shall be under no
obligation to exercise such Option.

 

[Signature
Page Follows]

 

     

     

    

 

IN WITNESS WHEREOF,
Maker has executed and delivered this Promissory Note as of the day and year first written above.

 

	 	MAKER:
	 	 	 
	 	ENERJEX RESOURCES, INC., a Nevada corporation
	 	 	 
	 	By:   	                                    
	 	Name: Louis Schott
	 	Title: Chief Executive Officer

 

 

[Signature Page to Promissory Note]Exhibit 10.4

 

ADDITIONAL ISSUANCE AND EXCHANGE AGREEMENT

 

This Additional Issuance
and Exchange Agreement (this “Agreement”), dated as of March 26, 2018, is made pursuant to that certain Securities
Purchase Agreement, dated as of March 11, 2015, as amended (the “Purchase Agreement”), by and between EnerJex
Resources, Inc. (the “Company”) and Alpha Capital Anstalt (the “Purchaser”) for:

 

		1.	The purchase of $4,000,000 of the Company’s Series C Convertible Preferred Stock (the “Preferred
Stock”), which Preferred Stock shall be issued pursuant to the Certificate of Designation of the Series C Convertible
Preferred Stock filed with the Secretary of State of Nevada, as amended on March 26, 2018 (the “Certificate of Designation”)
and have a Conversion Price equal to $0.06125;

 

		2.	The exchange of certain Secured Promissory Notes set forth on Annex A attached hereto (collectively,
the “Notes”) for shares of Preferred Stock; and

 

		3.	The issuance of shares of Preferred Stock in lieu of the issuance of a number of shares of Parent
Stock pursuant to, and as defined in, that certain Agreement and Plan of Merger, dated October 19, 2017, by and among AgEagle Aerial
Systems, Inc., the Company and certain other shareholders thereof (the “Merger Agreement” and the merger contemplated
thereunder, the “Merger”), which number of shares is set forth on Annex A attached hereto.

 

		4.	The issuance of shares of Preferred Stock to the Purchaser in satisfaction of a commitment fee.

 

Capitalized terms
used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the
Purchase Agreement.

 

For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

1.       Issuance
of Preferred Stock.

 

		(a)	Additional Subscription Amount. At the closing of the Merger, in consideration for the payment
of $4,000,000 (the “Purchase Price”), the Company hereby agrees to issue, against such payment, to the Purchaser
4,000 shares of Preferred Stock of the Company. The Company shall deliver to the Purchaser the shares of Preferred Stock against
payment of the Purchase Price.

 

		(b)	Exchange of Secured Promissory Notes. At the closing of the Merger, the Purchaser shall
exchange the Notes, including all accrued but unpaid interest thereon, into 236 shares of Preferred Stock.

 

    1 

     

    

 

		(c)	Merger Consideration. Issuance of 1,624 shares of Preferred Stock in lieu of 26,510,806
shares of Parent Stock that would otherwise be issued to the Purchaser at the closing of the Merger.

 

		(d)	Commitment Fee. In satisfaction of that certain Commitment Letter Agreement, dated as of
November 20, 2017, the issuance of 625.60 shares of Preferred Stock.

 

2.       Documents.
Except as set forth in the Certificate of Designation with respect to the Preferred Stock and the shares of Common Stock issuable
under the Preferred Stock (the “Conversion Shares”), the rights and obligations of the parties hereto shall
be identical in all respects to the rights and obligations of such Purchaser and of the Company with respect to the Series B Convertible
Preferred Stock (“Series B Preferred Stock”) and the Underlying Shares issued and issuable pursuant to the Purchase
Agreement; provided, however, subject to Section 3(f), where applicable and with respect to the unregistered characteristics
of the Preferred Stock and Conversion Shares (ie. Section 4.1 as it applies to the Warrant Shares), the obligations of the Conversion
Shares shall be identical to the Company’s obligations with respect to the Warrant Shares. Any rights of a Purchaser or covenants
of the Company which are dependent on such Purchaser holding securities of the Company or which are determined in magnitude by
such Purchaser’s purchase of securities pursuant to the Purchase Agreement shall be deemed to include any securities purchased
or issuable hereunder. The Purchase Agreement is hereby amended so that the term “Preferred Stock” includes the Preferred
Stock issued hereunder and “Underlying Shares” and “Warrant Shares” includes the Conversion Shares and
“Subscription Amount” shall be deemed to include the Purchase Price hereunder.

 

3.       Representations
and Warranties of the Company. The Company hereby makes to the Purchaser the following representations and warranties:

 

(a)       Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement
by the Company and the consummation by the Company of the transactions contemplated hereby have been duly authorized by all necessary
action on the part of the Company and no further action is required by the Company, its board of directors or its stockholders
in connection therewith other than in connection with the Required Approvals. This Agreement has been duly executed by the Company
and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable
against the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally,
(ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and
(iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

    2 

     

    

 

(b)       No
Conflicts. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company of
the transactions contemplated hereby do not and will not: (i) conflict with or violate any provision of the Company’s certificate
or articles of incorporation, bylaws or other organizational or charter documents; or (ii) conflict with, or constitute a default
(or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien (except
as contemplated by the Security Documents) upon any of the properties or assets of the Company in connection with, or give to others
any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any material
agreement, credit facility, debt or other material instrument (evidencing Company debt or otherwise) or other material understanding
to which such Company is a party or by which any property or asset of the Company is bound or affected; or (iii) subject to the
Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or
other restriction of any court or governmental authority to which the Company is subject (including federal and state securities
laws and regulations), or by which any property or asset of the Company is bound or affected, except, in the case of each of clauses
(ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.

 

(c)       Issuance
of the Preferred Stock. The Preferred Stock is duly authorized and, upon the execution of this Agreement by a Purchaser, will
be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than restrictions
on transfer provided for in the Transaction Documents. The Conversion Shares, when issued in accordance with the terms of the Certificate
of Designation, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Company
has reserved from its duly authorized capital stock a number of shares of Common Stock for issuance of the Conversion Shares at
least equal to the Required Minimum on the date hereof.

 

(d)       Affirmation
of Prior Representations and Warranties. The Company hereby represents and warrants to each Purchaser that the Company’s
representations and warranties listed in Section 3.1 of the Purchase Agreement are true and correct as of the date hereof.

 

(e)       Affirmation
of Adjustment to Series B and Series C Convertible Preferred Stock. The Company represents and warrants that, pursuant to Section
7(b) of the Certificate of Designation to the Series B Convertible Preferred Stock and the Certificate of Designation, the Conversion
Price is currently $0.06125, subject to further adjustment therein.

 

    3 

     

    

 

(f)       No
Duty of Confidentiality. The Company represents and warrants that all material terms of the transactions contemplated hereunder
have been publicly disclosed and accordingly neither it nor any other Person acting on its behalf has provided any of the Purchasers
or their agents or counsel with any information that it believes constitutes or might constitute material, non-public information.
The Company acknowledges and agrees that the Purchaser has not owed, does not owe and will not owe, any duty of confidentiality
or similar obligation under this or any agreement, whether written or oral, to the Company or any of its Subsidiaries or any of
their respective officers, directors, agents, employees or Affiliates.

 

(g)       Registered
Characteristics; Rule 144 Tacking. The Company acknowledges and agrees that in accordance with Section 3(a)(9) of the Securities
Act and Rule 144, the applicable holding period of the following securities of the Company held by the Purchaser (and resale status)
is as follows:

 

(i)       Immediately
upon conversion of the 8.25 Series B Preferred Stock, the Conversion Shares issuable thereunder shall be freely tradeable and free
of any restrictions on resale or Securities Act legends. The holding period of the Series B Preferred Stock tacks back to the original
issue date which exceeds 6 months.

 

(ii)       Immediately
upon conversion of the 396.858 shares of Preferred Stock held by the Purchaser prior to the closing of the Merger, the Underlying
Shares issuable thereunder shall be freely tradeable and free of any restrictions on resale or Securities Act legends. The holding
period of such securities tacks back to the original issue date which exceeds 6 months.

 

(iii)       Immediately
upon conversion of the 236 shares of Preferred Stock issued hereunder to the Purchaser pursuant to Section 1.(b), the Underlying
Shares issuable thereunder shall be freely tradeable and free of any restrictions on resale or Securities Act legends. The holding
period of such securities tacks back to the original issue date which exceeds 6 months.

 

(iv)       The
holding period of the shares of Preferred Stock issued pursuant to Section 1(d) (and Conversion Shares thereunder upon conversion)
tacks back to December __, 2017.

 

The
Company agrees not to take any position contrary to this Section 3(f) and, promptly upon the request of the Purchaser, shall provide
a legal opinion of its counsel to effect the removal of any legends or other restrictions on resale as set forth above. Upon conversion
of the securities in clauses (i) through (iii) above (and (iv) if then registered or Rule 144 is available), the Company
shall deliver the Conversion Shares required to be delivered by the Corporation electronically through the Depository Trust Company
or another established clearing corporation performing similar functions and otherwise in compliance with Section 4.1 of the Purchase
Agreement.

 

    4 

     

    

 

4.       Representations
and Warranties of the Purchaser. The Purchaser hereby represents and warrants as of the date hereof to the Company as follows:

 

i.       Authority.
The execution, delivery and performance by such Purchaser of the transactions contemplated by this Agreement have been duly authorized
by all necessary corporate or similar action on the part of such Purchaser. This Agreement has been duly executed by such Purchaser
and, when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation
of such Purchaser, enforceable against it in accordance with its terms, except (i) as limited by general equitable principles and
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’
rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

ii.       Own
Account. Such Purchaser (i) understands that the shares of Preferred Stock and Conversion Shares are “restricted securities”
and have not been registered under the Securities Act or any applicable state securities law, (ii) is acquiring the Preferred Stock
as principal for its own account and not with a view to or for distributing or reselling such shares of Preferred Stock or any
part thereof in violation of the Securities Act or any applicable state securities law, (iii) has no present intention of distributing
any of such Securities in violation of the Securities Act or any applicable state securities law and (iv) has no arrangement or
understanding with any other persons regarding the distribution of such Preferred Stock (this representation and warranty not limiting
such Purchaser’s right to sell the Conversion Shares pursuant to the Registration Statement or otherwise in compliance with
applicable federal and state securities laws) in violation of the Securities Act or any applicable state securities law. Such Purchaser
is acquiring the shares of Preferred Stock hereunder in the ordinary course of its business. Such Purchaser does not have any agreement
or understanding, directly or indirectly, with any Person to distribute any of the Preferred Stock or Conversion Shares.

 

iii.       Purchaser
Status. Such Purchaser is an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8)
under the Securities Act.

 

iv.       General
Solicitation. Such Purchaser is not purchasing the Preferred Stock as a result of any advertisement, article, notice or other
communication regarding the Preferred Stock published in any newspaper, magazine or similar media or broadcast over television
or radio or presented at any seminar or any other general solicitation or general advertisement.

 

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v.       Affirmation
of Prior Representations and Warranties. Such Purchaser hereby represents and warrants to the Company that its representations
and warranties listed in Section 3.2 of the Purchase Agreement are true and correct as of the date hereof.

 

5.       Non-Public
Information. The Company covenants and agrees that neither it, nor any other Person acting on its behalf will provide any Purchaser
or its agents or counsel with any information that constitutes, or the Company reasonably believes constitutes, material non-public
information, unless prior thereto such Purchaser shall have consented to the receipt of such information and agreed with the Company
to keep such information confidential. The Company understands and confirms that each Purchaser shall be relying on the foregoing
covenant in effecting transactions in securities of the Company.

 

6.       Effect
on Transaction Documents. Except as expressly set forth above, all of the terms and conditions of the Transaction Documents
shall continue in full force and effect after the execution of this Agreement and shall not be in any way changed, modified or
superseded by the terms set forth herein, including, but not limited to, any other obligations the Company may have to the Purchaser
under the Transaction Documents. Notwithstanding the foregoing, this Agreement shall be deemed for all purposes as an amendment
to any Transaction Document as required to serve the purposes hereof, and in the event of any conflict between the terms and provisions
of the Certificate of Designation or any other Transaction Document, on the one hand, and the terms and provisions of this Agreement,
on the other hand, the terms and provisions of this Agreement shall prevail.

 

7.       Registration
Rights Agreement. The Company shall file a resale registration statement registering all of the shares underlying the Preferred
Stock within 45 days of the closing of the Merger and cause such registration statement to be declared effective within 90 days
of the closing of the Merger Agreement and maintain the effectiveness of such registration statement until the earlier of (x) the
12-month anniversary of the closing date of the Merger and (y) the first day as of which all Securities issued and sold hereunder
may be sold under Rule 144 and the Company is then in compliance with the current public information required under Rule 144 (“144
Date”). In the event that the Company fails to meet any of the deadlines above, or maintain the effectiveness of the
registration statement as required above, the Company shall pay the Purchaser, in cash on each monthly anniversary, liquidated
damages equal to 2% per month of the Stated Value of the Preferred Stock then outstanding (pro-rata for any partial months). Additionally,
if, prior to the 144 Date, the Company shall determine to prepare and file with the Commission a registration statement relating
to an offering for its account or the account of others under the Securities Act of the Common Stock, other than on Form S-4 or
Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely
in connection with any acquisition of any entity or business or equity securities issuable in connection with the stock option
or other employee benefit plans, the Company shall deliver to each Purchaser a written notice of such determination and if, within
15 Business Days after the date of delivery of such notice, the Purchaser (or any permitted successor or assign) shall so request
in writing, the Company shall include in such registration statement all or any part of the Conversion Shares that such Purchaser
requests to be registered. In the case of inclusion in a firm-commitment underwritten offering, the Purchasers must sell their
Conversion Shares on the same terms set by the underwriters for shares of Common Stock to be sold for the account of the Company.

 

    6 

     

    

 

8.       Amendments
and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed
by the Company and each Purchaser.

 

9.       Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be delivered as
set forth in the Purchase Agreement.

 

10.       Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each
of the parties and shall inure to the benefit of each Purchaser. The Company may not assign (except by merger) its rights or obligations
hereunder without the prior written consent of the Purchaser of the then-outstanding Securities. The Purchaser may assign their
rights hereunder in the manner and to the Persons as permitted under the Purchase Agreement.

 

11.       Execution
and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and
binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if
such facsimile or “.pdf” signature page were an original thereof.

 

12.       Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined
in accordance with the provisions of the Purchase Agreement.

 

13.       Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that
they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

 

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14.       Headings.
The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and shall not be deemed to limit
or affect any of the provisions hereof.

 

15.       Market
Standstill. From the date hereof until __ days following the date hereof, the Company), other than an Exempt Issuance, neither
the Company nor any Subsidiary shall make any issuance whatsoever of Common Stock or Common Stock Equivalents. Other than to the
Purchaser, the Company shall not issue any additional shares of Preferred Stock after the date hereof.

 

[SIGNATURE PAGE FOLLOWS]

 

    8 

     

    

 

Executed as of the first date written above
by the undersigned duly authorized representatives of the Company and the Purchaser:

 

ENERJEX RESOURCES, INC.

 

 

	By: 	 	 
	 	Name:   	 
	 	Title:     	 

 

 

ALPHA CAPITAL ANSTALT

 

Signature of Authorized Signatory:

 

Name of Authorized Signatory:

 

Title of Authorized Signatory:

 

    9 

     

    

 

Annex A

 

Promissory Notes:

 

$50,000 Secured Promissory Note issued on July 14, 2017.

$50,000 Secured Promissory Note issued on July 27, 2017.

$125,000 Secured Promissory Note issued on August 30, 2017.

 

Parent Stock:

 

26,510,806 shares.

 

    10

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