Document:

THIS SECOND AMENDMENT AND WAIVER AGREEMENT
is made as of September 28, 2012, between

 

LW EMERGING MARKETS OPPORTUNITIES MASTER FUND, LTD.

 

a corporation incorporated under the laws
of the Cayman Islands, and the transferee of LW Emerging Markets Natural Resources Opportunities Fund, Ltd.’s entire interest
under the Original Agreement and the Notes (“Lender 1”),

 

HAMPTON CORP.

 

a corporation incorporated under the laws
of Cayman Islands (“Lender 2”),

 

LW LATIN AMERICA SHORT DURATION FUND,
LTD

 

a corporation incorporated under the laws
of Curacao, (“Lender 3”), and

 

Li3 ENERGY, INC.

 

a corporation incorporated under the laws
of the State of Nevada, USA (the “Borrower”).

 

and modifies the Credit Agreement among
Lender 1, Lender 2, Lender 3 and the Borrower, dated as of May 2, 2011, as amended by the Amendment and Waiver Agreement among
Lender 1, Lender 2, Lender 3 and the Borrower, dated as of August 25, 2012 (the “Original Agreement”).

 

WHEREAS, the Borrower has recently
closed on the second tranche of funding under a transaction pursuant to which POSCO Canada Ltd. (“POSCAN”) has purchased
for cash equity securities of the Borrower on terms that were modified pursuant to an Additional Agreement to Securities Purchase
Agreement between Borrower and POSCAN, dated as of August 17, 2012 (the “Strategic Funding”);

 

WHEREAS, the Borrower and POSCAN
desire that all of the proceeds of the Strategic Funding be used for the Borrower’s work program;

 

WHEREAS, certain of the Lenders,
or their affiliates, have loaned money to the Borrower in a series of transactions pursuant to which Borrower has issued $650,000.00
aggregate principal amount of its 15% Promissory Notes (the “Bridge Notes”);

 

WHEREAS, There is currently $437,867.22
aggregate principal and accrued interest amounts outstanding under the Bridge Notes, and $1,696,938.36 aggregate principal and
accrued interest amounts outstanding under the Notes;

 

WHEREAS, to date, the Lenders and
the holders of Bridge Notes have foreborne from taking any action to enforce their Notes and Bridge Notes; and

 

WHEREAS, the Lenders have agreed
to certain modifications to the terms of the Notes in order to facilitate the Strategic Funding, subject to the terms and conditions
set forth herein;

 

    	 

    	 

    

 

NOW, THEREFORE, it is agreed as
follows:

 

1.            Defined
Terms. Capitalized terms used but not defined herein have the respective meanings ascribed to them in the Original Agreement.

 

2.            Extention
of Maturity; Elimination of Coupon. (a) The Original Agreement is hereby amended, effective immediately, to change the
Principal Payment Date of each Note from June 30, 2012 to September 28, 2013. All accrued interest on the Notes to date is being
paid by Borrower pursuant to Section 3(c) hereof, and the Notes shall henceforth not accrue any interest. The aggregate Principal
Amount of the Notes is hereby amended to be US$1,880,000.00 (One Million Eight Hundred Eighty Thousand dollars) payable on the
Principal Payment Date, as amended. Thus at the new Principal Payment Date, the Borrower will pay the Principal Amount to the Lenders,
in such proportions as is set forth on Schedule I hereto. The parties hereby acknowledge that the Principal Amount, as amended,
reflects an Original Issue Discount of 12.1% from today through maturity on the outstanding principal and accrued but unpaid interest
amounts of the Notes immediately prior to this Second Amendment and Waiver. In the event the Notes are not repaid in full on or
prior to September 28, 2013, interest shall accrue on any unpaid balance at the rate of 20% per annum, payable on the last day
of each calendar month.

 

3.            Prepayment
Requirements. (a) The Lenders and Borrower hereby confirm that Section 3.02 of the Original Agreement shall not apply to
any issuance by Borrower of shares of its common stock otherwise than for cash, including without limitation, the Borrower’s
recently initiated program of issuing up to 20,000,000 shares of its common stock to various parties to whom Borrower is obligated,
in lieu of cash payments of such obligations.

 

(b)            Each
Lender hereby waives any right it may have, under Section 3.02 of the Original Agreement or otherwise, to have any obligations
under the Notes (whether Issue Price, Accrued Original Discount or otherwise) prepaid in whole or in part out of the proceeds of
the Strategic Funding, as amended. The Lenders agree that the Borrower may use the net proceeds of the Strategic Funding for any
business purposes as may be determined by Borrower in its sole discretion.

 

(c)            On
the date hereof, Borrower shall pay: (i) all accrued but unpaid interest under the Notes, constituting $19,500.22, in the aggregate;
and (ii) all accrued interest under the Bridge Notes, constituting $7,867.22.

 

(d)Upon Borrower’s
satisfaction of the payment obligations set forth in Section 3(c) and Section 4 hereof, all Events of Default occurring prior to
the date hereof shall be be deemed cured, and any rights of Lenders with respect to such Events of Default permanently waived;
provided however, that such waiver shall not affect any similar event occurring on or after the date hereof.

 

(e)            In
exchange for, and upon surrender of, all outstanding Bridge Notes, Borrower shall issue a new promissory note due November 2, 2012,
in the form of Exhibit A, in the principal amount of $430,000.

    	 

    	 

    

 

4.            Arrangement
Fee. Borrower shall pay to LW Securities, S.A., an arrangement fee of $37,600.00, representing two (2%) percent of the
Principal Amount of the Notes as amended hereby.

 

5.            Assignability.
Section 12.01 of the Original Agreement is hereby amended to read in its entirety as follows:

 

Section 12.01     Successors
and Assigns: This Agreement shall be binding upon and inure to the benefit of the Lenders and the Borrower and their respective
permitted successors and assigns, except that (a) the Borrower shall not assign any rights or obligations with respect to this
Agreement or any of the agreements contemplated hereby without the prior written consent of the Lenders (b) a Lender may assign
(in an amount equal to at least U.S.$100,000 (or the remaining balance thereof, if less)) all or any portion of its outstanding
Borrowings and remaining commitments to lend hereunder.

 

6.            Change
in Conversion Price; Lock-Up. The Original Agreement is hereby amended, effective upon
the date hereof, to change the Conversion Price of the Notes to U.S.$0.095 per share (subject to adjustment
as provided in the Original Agreement). The Notes may be converted at any time or from time to time until repaid. The shares of
common stock issued upon any such conversion shall not be subject to any lock-up or other contractual restrictions on transfer
to which the Borrower is a party.

 

7.            Exchange
of Notes. Each Lender shall promptly surrender its original Note to Borrower, to be replaced by a new Note in the form
attached hereto as Exhibit B.

 

8.            Full
Force and Effect. Except as modified hereby, the Original Agreement remains in full force and effect. Without limiting
the generality of the foregoing, Section 3.02 of the Original Agreement requires that, if the Borrower shall raise capital by the
issuance of any of its securities (whether debt, equity or securities convertible into equity securities) after the date hereof,
then the net proceeds (after offering expenses) of any such offering shall be applied first to prepay the Issue Price of and Accrued
Original Issue Discount on the Borrowing until no amount payable by the Borrower under the Original Agreement, as amended, or under
the Notes remains outstanding

 

9.            Warrants.
In connection with the sale and purchase of the Bridge Notes, Borrower had proposed to issue three-year warrants (“Bridge
Warrants”) exercisable to purchase shares of Common Stock at an exercise price of $0.10 per share. The parties hereby
agree that the Borrower shall not issue any Bridge Warrants in connection with the Bridge Notes, and that the Bridge Notes themselves
shall be the sole consideration provided to the Lenders for the loans evidenced thereby.

 

10.            Counterparts.
This Amendment may be executed in any number of counterparts and all such counterparts taken together shall be deemed to constitute
one and the same instrument and shall be effective on the date when each of the parties hereto has signed a copy hereof and shall
have delivered the same to the Lenders.

 

[Signature page follows immediately]

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of this 25th
day of August 2011.

 

	“Lenders”

 

	Lender 1	Lender 2
	LW EMERGING MARKETS	 
	OPPORTUNITIES MASTER FUND, LTD.	HAMPTON CORP.

 

	By:	/s/ Carlos A. Zalles	 	By:	/s/ Carlos A. Zalles
	Name:	Carlos A. Zalles	 	Name:	Carlos A. Zalles
	Title:	Director	 	Title:	Attorney-in-Fact

 

	Lender 3	 
	LW LATIN AMERICA SHORT DURATION FUND, LTD	 

 

	By:	/s/ Alfredo Gonzales &
    /s/ Javier Llanos	 
	Name:	Alfredo Gonzales & Javier Llanos	 
	Title:	Attorneys-in-Fact	 

 

“Borrower”

LI3 ENERGY, INC.

 

	 	By:	/s/ Luis Saenz	 
	 	Name:	Luis Saenz	 
	 	Title:	Chief Executive Officer	 

 

    	 

    	 

    

 

SCHEDULE I

(Lenders and Principal Amount of Notes,
as Amended)

 

	Lender	 	Principal Amount	 
	 	 	 	 
	LW EMERGING MARKETS OPPORTUNITIES MASTER FUND, LTD	 	$	940,000.00	 
	HAMPTON CORP.	 	 	219,960.00	 
	LW LATIN AMERICA SHORT DURATION FUND, LTD	 	 	720,040.00	 
	 	 	 	 	 
	TOTAL	 	$	1,880,000.00	 

 

    	 

    	 

    

EXHIBIT A

 

PROMISSORY NOTE

 

 

U.S. $ XXX,XXX

Dated:September 28, 2012 

 

 

FOR VALUE RECEIVED, the undersigned, Li
3 Energy Inc. (the "Borrower"), HEREBY PROMISES TO PAY to the order of __________________, a _________ _________
(the "Lender") the principal sum of U.S. $ XXX,XXX.xx on November 2th, 2012. The Lender shall not transfer
this Note and shall maintain it deposited under his custody. Notwithstanding the foregoing, the Lender may grant to any one or
more individuals or financial institutions, participation or participations in all or any part of the Lender's rights and benefits
hereunder.

 

The Borrower promises to pay interest on
the unpaid principal amount of the loan evidenced hereby at a rate equal to Fifteen percent (15%) per annum (actual/360)
from the date hereof until such principal amount is paid in full. Any amount of principal hereof which is not paid when due, whether
at maturity, by accelerations or otherwise, shall bear interest from the due date when due until said principal amount is paid
in full, payable on demand, at a rate per annum equal to Two (2.00%) percent above the rate stated in the previous sentence.

 

Both principal and interest are payable
in lawful money of the United States of America to the Lender, in immediately available funds.

 

 

This Note shall be governed by the laws
of the State of New York.

 

IN WITNESS whereof, the undersigned has
caused this Note to be duly executed as of 09/ 28 /12

 

 

	 	 	 	Li 3 Energy, Inc
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Name:	 	 	Name:	 	 
	 	 	 	 	 	 
	Title:	 	 	Title:	 	 

 

 

    	 

    	 	

    
 

 

EXHIBIT B

 

[FORM OF NOTE]

 

THIS SECURITY WAS ISSUED WITH ORIGINAL
ISSUE DISCOUNT FOR U.S. FEDERAL INCOME TAX PURPOSES. THE HOLDER OF THIS SECURITY MAY CONTACT LI3 ENERGY, INC., MARCHANT PEREIRA
150, OFICINA 803, PROVIDENCIA, SANTIAGO DE CHILE, CHILE, ATTENTION: CHIEF EXECUTIVE OFFICER, FOR INFORMATION REGARDING THE ISSUE
PRICE, AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE, YIELD TO MATURITY, COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE OF THIS
SECURITY. 

 

THIS SECURITY AND THE SHARES OF COMMON
STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY, THE SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY NOR ANY
INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED
OF UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS,
OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE COMPANY RECEIVES AN OPINION OF COUNSEL, WHICH COUNSEL AND OPINION ARE
SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED
WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS. HEDGING TRANSACTIONS INVOLVING THESE
SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT. 

 

LI3 ENERGY, INC.

Amended and Restated

Zero-Coupon Convertible Note due September
28, 2013

 

Original Issue Date: May 2, 2011

Issue Price: U.S.$XXXXXXX

Amendment Date: September 28, 2012

Oustanding Principal and Accrued Interest
on Amendment Date: U.S.$XXXXXXX

Principal Amount at Maturity: U.S.$ XXXXXXX

Original Issue Discount: U.S.$ XXXXXXX

    	 

    	 

    

 

LI3 ENERGY, INC., a Nevada corporation (the “Borrower”), promises to pay to__________________________, or its permitted
registered assigns, the Principal Amount at Maturity of XXXXXXXXXXXXXXXXXXXXXXXX UNITED STATES DOLLARS (U.S.$ XXXXXXX) on September
28, 2013.

The Borrower issued this Note under a Credit Agreement dated as of May 2, 2011, between the Company and the Lenders party thereto,
as modified by the Amendment and Waiver Agreement, dated as of August 25, 2011, and the Second Amendment and Waiver Agreement,
dated as of September 28, 2012 (and, as the same may hereafter be amended from time to time, the “Credit Agreement”).
The terms of this Note include those stated in the Credit Agreement. Capitalized terms used herein and not defined herein have
the meanings ascribed thereto in the Credit Agreement. This Note is subject to all such terms, and Note holders are referred to
the Credit Agreement for a statement of those terms.

 

This Note shall not bear interest except
as specified in the Credit Agreement. Original Issue Discount will accrue as specified in the Credit Agreement. This Note is convertible
into the Borrower’s Common Stock as specified in the Credit Agreement. This Note may, and in some circumstances must, be
prepaid as specified in the Credit Agreement.

Dated: September 28, 2012

	 	LI3 ENERGY, INC.

 

	 	By:	 
	 	 	Name: 
	 	 	  Title:Share
Option Agreement

 

This
Share Option Agreement (the "Agreement") is made and entered into, effective as of August 31, 2012
(the "Effective Date"), by and between EnerJex
Resources, Inc., a Nevada corporation ("Company"), and James
D. Loeffelbein (“Member”); and
Enutroff, LLC, a Nevada limited liability company ("Owner"), with reference to the following facts:

 

Recitals:

 

Member is the manager
of Owner, and Owner is the owner of certain shares of the Common Stock of the Company, and the parties have agreed to execute this
Agreement in order to memorialize the terms and conditions on which Owner shall grant to the Company the right and option to purchase
certain of those shares.

 

Agreements:

 

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

 

1.           Company
Purchase Option

 

1.1           Share
Purchase Option. In consideration of the Company's agreement to pay to Owner an option fee in the amount of $151,000
(the "Option Fee Amount"), Owner hereby grants to the Company the right and option (the "Option"),
but not the obligation, to purchase up to 2,000,000 shares of the Common Stock of the Company (the "Option Shares"),
in one or more transactions, at a cash price of $0.45 per share.

 

1.2           Option
Payment. The Option Fee Amount will be due on January 1, 2013, and the Company shall pay to Owner the Option
Fee Amount within five (5) business days of January 1, 2013.

 

1.3           Escrow
of Share Certificate; Legend. On or before December 31, 2012, Owner shall deliver to Reicker, Pfau, Pyle &
McRoy LLP (the "Escrow Agent") one or more share certificates evidencing the Option Shares. The obligation of
the Company to pay the Option Fee Amount pursuant to Section 1.2, above, shall be subject to and conditioned upon Owner
delivering such share certificate(s) to Escrow Agent in accordance with the preceding sentence of this Section 1.3. Escrow
Agent shall hold such share certificate(s) pursuant to Section 3, below, and may imprint on the back thereof the following
legend:

 

THE SHARES
EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS OF THAT CERTAIN SHARE OPTION AGREEMENT DATED EFFECTIVE AUGUST 31, 2012,
BY AND BETWEEN THE ISSUER AND THE OWNER OF THE SHARES EVIDENCED BY THIS CERTIFICATE.

 

If, during the Option Term, the Company
exercises the Option for less than all of the Option Shares, then following the cancellation of the share certificate(s) then held
by Escrow Agent, each replacement share certificate(s) evidencing any of the remaining Option Shares shall be delivered to Escrow
Agent and be subject to all of the terms of this Agreement. If, as of the expiration of the Option Term, the Company has not purchased
all of the Option Shares, then promptly following the expiration of the Option Term (and subject to the completion of any then-pending
purchase and sale of any of the Option Shares pursuant to any timely exercise of the Option during the Option Term), the Escrow
Agent shall tender to the Company's stock transfer agent any share certificates then held by Escrow Agent, and the Company shall
direct such transfer agent to issue to Owner a replacement certificate therefor that does not contain the legend described above.

 

    	 

    	 

    

 

1.4           Representations
and Warranties of Owner. Owner represents and warrants to the Company that, as of the Effective Date of this
Agreement and as of the date of each "Closing" pursuant to Section 1.6, below:

 

(a)          Option
Shares. The Option Shares are owned by Owner free and clear of all liens, claims, and restrictions of any type
or kind whatsoever (other than restrictions under applicable provisions of federal and state securities laws). No person other
than Company (pursuant to this Agreement) has any right to acquire the Option Shares. Upon Company's exercise of the Option and
payment of the Purchase Price for the Option Shares in accordance with this Agreement, Company will acquire title to the Option
Shares, free and clear of any lien, charge, encumbrance, security interest, or other claim arising by or through Owner.

 

(b)          Owner
Authority. Owner has all requisite power and authority to execute and deliver this Agreement and perform Owner's
obligations hereunder without the consent of any other person. This Agreement constitutes the legal, valid and binding obligation
of Owner, enforceable against Owner in accordance with its terms, except to the extent that such enforceability may be (i) subject
to bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar laws now or hereafter in effect relating
to or affecting creditors' rights or remedies generally, or (ii) limited by equitable principles.

 

(c)          No
Conflict. Neither the execution and delivery of this Agreement by Owner nor the consummation or performance by
Owner of Owner's obligations hereunder will, directly or indirectly (with or without notice or lapse of time), (i) breach any provision
of any agreement to which Owner is a party or by which Owner or the Option Shares may be bound, (ii) breach, or give any governmental
body or other person the right to challenge the sale of the Option Shares to Company hereunder or to exercise any remedy or obtain
any relief under, any material legal requirement or any order to which Owner may be subject, or (iii) result in the imposition
or creation of any encumbrance on or with respect to any of the Option Shares.

 

(d)          Brokers
and Finders. Owner has not engaged, and is not obligated to pay any commissions to, any broker, finder, or other
agent in connection with the sale of the Option Shares to Company hereunder. Owner shall indemnify, defend, and hold Company free
and harmless from and against all claims, costs, damages, and expenses arising from or relating to any breach by Owner of its representation
and warranty under this Section 1.4(d).

 

1.5           Exercise
of Option. The Option may be exercised at any time, and from time to time, during the period commencing on the
date the Option Fee Amount is paid and expiring at 5:00 p.m., Central Time, on or before December 31, 2013 (such period, the "Option
Term"). The Company may exercise its Option to purchase Option Shares pursuant to this Section 1 by delivering
to Owner, during the Option Term, a written notice of such exercise specifying the number of Option Shares to be purchased by the
Company upon such exercise and the Closing Date for such purchase (which date shall not be sooner than ten (10) days, nor more
than thirty (30) days, following the delivery of such exercise notice).

 

1.6           Option
Exercise Requirement. The Company must exercise at least 500,000 Option Shares during each consecutive calendar
quarter, beginning in the first calendar quarter of 2013 and ending in the last calendar quarter of 2013. If the Company does not
exercise at least 500,000 Option Shares by the end of any such quarter, then it shall forfeit its right to exercise any additional
Option Shares thereafter and the Option Term shall be deemed to have terminated.

 

    	 

    	 

    

 

1.7           Closing.
The Closing of the purchase and sale of Option Shares pursuant to each such exercise of the Option (the "Closing")
shall occur at the offices of Escrow Agent, 1421 State Street, Santa Barbara, California 93101, or such other escrow agent as the
Company may designate (the Firm or such other escrow agent, the "Escrow Agent") by counterpart delivery of documents
and funds.

 

(a)          Deliveries.
At the Closing:

 

(i)          The
Company shall deliver to the Escrow Agent immediately available funds in an amount equal to the purchase price of the Option Shares,
and

 

(ii)         Owner
shall (A) deliver to the Company a written certificate duly executed by Owner and affirming that its representations and warranties
set forth in Section 1.4, above, are true and correct as of the Closing, and (B) deliver to Escrow Agent (1) written authorization
to release to the Company one or more original stock certificates then evidencing the Option Shares being purchased and sold, and
(2) an irrevocable stock power duly endorsed (with Medallion signature guaranty) by Owner, and vesting in the Company or its designee
title to the Option Shares being purchased and sold at such Closing.

 

(b)          Authorizations
to Escrow Agent. The Company shall authorize Escrow Agent to release the purchase price to Owner upon receipt
of the stock certificates and stock power for the Option Shares in accordance with the preceding sentence, and Owner shall authorize
the Escrow Agent to release to the Company the share certificates and irrevocable stock power to the Company (or its transfer agent)
when Escrow Agent holds the purchase price of the Option Shares for immediate release to the Owner.

 

2.          Escrow
Agent Duties. Escrow Agent shall hold all certificates received hereunder subject to the escrow provisions of
this Section 2.

 

2.1           Delivery
of Certificate. If the Company exercises its Option to purchase any Option Shares during the option Term, then Escrow
Agent shall release the certificates it then holds in accordance with the instructions received pursuant to Section 1.6,
above.

 

2.2           Deliveries
at Termination. Subject to Section 2.4, below, if, as of the expiration of the Option Term or the resignation
or removal of Escrow Agent, Escrow Agent then has in its possession any documents, securities, or other property belonging to Owner
or the Company, then Escrow Agent shall deliver such property to the Owner or Company and thereupon be discharged of all further
obligations hereunder.

 

2.3           Resignation.
Escrow Agent may resign upon delivery (a) to the Company and Owner of at least ten (10) days' advance written notice, and (b) subject
to Section 2.4, below, to each of the Company and Owner of all documents and other items then held in escrow by Escrow Agent
hereunder. The responsibilities of the Escrow Agent hereunder shall terminate upon such delivery. In the event of any such termination,
the Company shall appoint a successor Escrow Agent.

 

2.4           Disputes.
The parties acknowledge and agree that if any dispute arises with respect to the delivery, ownership, or right of possession of
any share certificates, other documents, or funds held by Escrow Agent hereunder, then:

 

(a)          Escrow
Agent is authorized to retain the same, without any liability whatsoever to either party or any other person, until such disputes
shall have been settled either by mutual written agreement or by a final order, decree, or judgment of the arbitrator, if applicable,
or of a court of competent jurisdiction after the time for appeal has expired and no appeal has been perfected, but the Escrow
Agent shall be under no duty whatsoever to institute or defend such proceedings; and

 

    	 

    	 

    

 

(b)          Escrow
Agent, at the sole cost and expense of Owner and the Company, may commence an interpleader action with respect to such items and
funds in any State or Federal Court in the State of Kansas and request instruction regarding the proper disposition of such items
and funds.

 

2.5           Indemnity.
Owner and the Company jointly and severally agree to indemnify and hold Escrow Agent free and harmless from any liability, damages,
claims, causes of action, costs or expense, including attorneys’ fees incurred for the purpose of appearing in and/or initiating
or defending any action or proceeding pertaining to the rights and duties of the parties under this Agreement, other than claims
made against Escrow Agent on account of conduct that is finally determined by a court of competent jurisdiction to have constituted
gross negligence or a willful and material breach by Escrow Agent of its duties and obligations as "Escrow Agent" hereunder.

 

2.6           Expiration
of Escrow. Subject to any then-pending purchases and sales of Option Shares pursuant to the Company's timely exercise
of its Option during the Option Term, the escrow contemplated by this Section 2 shall expire, and Escrow Agent thereupon
shall release to Owner all certificates held in escrow and evidencing the Option Shares, upon the expiration of the Option Term.

 

2.7           Escrow
Agent Not a Party. Upon accepting in writing its duties under this Section 2, Escrow Agent becomes a party
hereto only for the purposes of executing the instructions set forth in this Section 2 and does not otherwise become
a party to this Agreement.

 

3.          COVENANTS
OF MEMBER. Member covenants and agrees to (a) cause Owner to timely and fully discharge its obligations under this Agreement,
and to make, execute and deliver such documents and instruments, and take such other actions, as may be necessary or appropriate
for causing owner to timely and fully discharge its obligations hereunder, and (b) indemnify, defend, and hold the Company free
and harmless from and against all claims, costs, damages and expenses arising from or relating to any breach by owner or Consultant
of their respective obligations under this Agreement.

 

4.          REMEDIES

 

4.1           Injunctive
or Other Equitable Relief. Owner (a) acknowledges that any violation of the provisions of this Agreement by Owner
may cause the Company immediate and irreparable damage for which the Company cannot be adequately compensated by monetary damages,
(b) therefore agrees that in the event of any such breach, the Company shall be entitled to such preliminary or other injunctive
relief, an order for specific performance, and any other equitable relief that a court may determine to be appropriate, and (c)
further agrees that such equitable relief shall be in addition to any damages or other remedies otherwise available to the Company
under this Agreement or applicable law by reason of Owner's breach.

 

4.2           Other.
Upon any breach by Owner of Owner's obligations under this Agreement and any agreement attached as an Exhibit hereto, the Company
may elect, in addition to the injunctive and other equitable relief contemplated by Section 4.1, above, and other remedies
that may be available under applicable law, (a) to assert such prejudgment remedies as may be available to the Company under applicable
law, (b) to cease making any payments that otherwise may become due to Owner under Section 1, above, and (c) to assert
such other claims and pursue such other remedies as may be available under applicable law.

 

    	 

    	 

    

 

5.           VOLUNTARY
EXECUTION. OWNER ACKNOWLEDGES AND AGREES THAT: (A) IT HAS CAREFULLY READ THIS
AGREEMENT; (B) IT FULLY UNDERSTANDS ITS RIGHT TO DISCUSS THIS AGREEMENT WITH ITS ATTORNEY AND, TO THE EXTENT THAT IT SO DESIRED,
IT HAS AVAILED ITSELF OF THIS RIGHT; (C) IT UNDERSTANDS AND AGREES WITH EACH OF THE TERMS AND CONDITIONS OF THIS AGREEMENT; AND
(D) IT HAS VOLUNTARILY ENTERED INTO THIS AGREEMENT FREELY AND WITHOUT COERCION.

 

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
(a) when personally delivered, (b) 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, (c) on the date on which transmitted
by facsimile, email, or other electronic means producing a tangible receipt evidencing a successful transmission, or (d) on the
next business day after the day on which deposited with a regulated public carrier (e.g., Federal Express), freight prepaid,
addressed to the party for whom intended at the address set forth on the signature page of this Agreement, or such other address,
facsimile number or email address, notice of which has been delivered in a manner permitted by this Section 6.1.

 

6.2           Further
Assurances.  Each party agrees, upon the request of the other party, to
make, execute, and deliver such additional documents, and to take such additional actions, as may be reasonably necessary to effectuate
the purposes of this Agreement.

 

6.3           Complete
Agreement; Amendments.  This Agreement and the Exhibits attached hereto,
(a) contain the entire agreement and understanding between the Parties and supersede all prior and contemporaneous agreements and
understandings, whether oral or written, concerning the Option described above, and (b) shall not be modified or amended,
except by a written instrument executed after the Effective Date hereof by the party sought to be charged with such amendment or
modification.

 

6.4           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 be one and the same instrument, binding on each signatory. A copy of this
Agreement that is executed by a party and transmitted by that party to the other party by facsimile or email shall be binding on
the signatory to the same extent as a copy hereof containing the signatory's original signature.

 

6.5           Attorneys'
Fees. If any action is commenced to construe this Agreement or to enforce any of the rights and duties created
herein, then the party prevailing in that action shall be entitled to recover its reasonable costs and attorneys' fees in that
action, as well as all reasonable costs and fees of enforcing any judgment entered therein.

 

6.6           Governing
Law; Consent to Jurisdiction; Certain Waivers. This Agreement shall be construed in accordance with and governed by
the internal laws (without reference to choice or conflict of laws) of the State of Kansas. Owner and the Company each hereby (a)
consents to the jurisdiction of any state or federal court located within the State of Kansas, (b) agrees that except as otherwise
contemplated with respect to any interpleader action initiated by Escrow Agent pursuant to Section 2.4, above, the exclusive
venue for any action arising hereunder shall be in any state or federal court located within the State of Kansas, (c) irrevocably
waives any objection that it may have based on improper venue or forum non conveniens to the conduct of any such action
or proceeding in any such court, and (d) consents to the service of process upon such party made in any one or more of the
manners in which notices are permitted pursuant to Section 6.1, above. Nothing contained in this Section 6.6
shall affect the right of any party to serve legal process on the other party in any other manner permitted by law. The
parties hereto waive all rights to a jury trial in connection with actions arising UNDER this Agreement.

 

    	 

    	 

    

 

6.7           Arbitration.
Except for any action seeking the exercise of the injunctive or other equitable powers of a court of competent jurisdiction, all
disputes arising under or in connection with this Agreement shall be resolved by binding arbitration before a single arbitrator
under the rules then obtaining of the American Arbitration Association. The arbitration shall be held in Kansas City, Kansas. The
decision of the arbitrator shall be final and binding, and judgment thereon may be entered in a court of competent jurisdiction.
The decision of the arbitrator shall be final and binding, and judgment thereon may be entered in a court of competent jurisdiction.
The arbitrator, in his or her discretion, may award to the prevailing party the costs and fees of the arbitration.

 

6.8           Binding
Effect. This Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their
respective heirs, successors and assigns, provided that Owner may not delegate Owner's duties hereunder except with the
prior written consent of the Company, which may be withheld, conditioned or delayed in the sole discretion of the Company.

 

6.9           Severability.
If any provision of this Agreement is for any reason found to be ineffective, unenforceable, or illegal by any court having jurisdiction,
such condition shall not affect the validity or enforceability of any of the remaining portions hereof, unless it deprives any
party hereto of any material right or license held by such party under this Agreement. The parties shall negotiate in good faith
to replace any such ineffective, unenforceable or illegal provisions as soon as is practicable, and the substituted provision shall,
as closely as possible, have the same economic effect as the eliminated provision.

 

6.10         Waiver.
No waiver of any term, provision or condition of this Agreement, the breach or default thereof, by conduct or otherwise, in one
or more instances shall be deemed to be either a continuing waiver or a waiver of a subsequent breach or default of any such term,
provision or condition of this Agreement. The failure of any party hereto to enforce at any time any provision of this Agreement
shall not be construed to be a waiver of such provision, nor in any way to affect the validity of this Agreement or any part hereof
or the right of any party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall
be held to constitute a waiver of any other or subsequent breach.

 

6.11         Construction.
This Agreement is the result of negotiations between the parties and neither of the parties entering into this Agreement has acted
under any duress or compulsion, whether legal, economic or otherwise. The parties hereby waive the application of any rule of law
that ambiguous or conflicting terms or provisions should be construed against the party who (or whose attorney) prepared this Agreement
or any earlier draft of the same. In this Agreement, the word "Person" includes any individual, company, trust
or other legal entity of any kind, and the word "include(s)" means "include(s), without limitation,"
and the word "including" means "including, but not limited to." Unless the context of this Agreement
otherwise clearly requires, references to the plural include the singular and the singular the plural. Unless otherwise expressly
indicated herein, the words "hereof," "hereunder," and similar terms in this Agreement refer
to this Agreement as a whole and not to any particular provision of this Agreement. All references to "Section"
herein shall refer to the sections and paragraphs of this Agreement unless specifically stated otherwise. The section and other
headings, if any, contained in this Agreement are inserted for convenience of reference only, and they neither form a part of this
Agreement nor are they to be used in the construction or interpretation of this Agreement.

 

In
Witness Whereof, the parties hereto have executed this Share Option Agreement, effective as of the Effective Date.

 

    	 

    	 

    

 

	"Company:"	 	"Owner:"
	 	 	 
	EnerJex
    Resources, Inc., a Nevada corporation	 	Enutroff,
    LLC, a Nevada limited liability
	 	 	company

 

	By	 	 	By:	 
	 	Robert G. Watson, Jr., Chief Executive Officer	 	 	James D. Loeffelbein, Manager

 

	 	 	 
	Date	 	Date

 

	Address, Facsimile No. & Email for Notices:	 	Address, Facsimile No. & Email for Notices:
	 	 	 
	EnerJex Resources, Inc.	 	10380 W 179th Street
	4040 Broadway, Suite 508	 	Bucyrus, KS  66013
	San Antonio, TX  78209	 	 

 

	Facsimile: _________________________________	 	Facsimile: _________________________________
	Telephone: (210) 451-5545	 	Telephone: (913) 232-3687
	Email:     rwatson@enerjexresources.com	 	Email:    jimloeffelbein@gmail.com

 

	 	 	“Member:”
	 	 	 
	 	 	 	 
	 	 	James D. Loeffelbein	Date
	 	 	 	 
	 	 	Address, Facsimile No. & Email for Notices:
	 	 	 
	 	 	10380 W 179th Street
	 	 	Bucyrus, KS  66013
	 	 	 
	 	 	Facsimile: _________________________________
	 	 	Telephone: (913) 232-3687
	 	 	Email:       jimloeffelbein@gmail.com

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