Document:

Unassociated Document

    

    AMENDMENT
4 TO JOINT EXPLORATION AGREEMENT

    

    This Fourth Amendment (“Fourth
Amendment”) to that certain Joint Exploration Agreement (“JEA”) dated March 30,
2008 by and between MorMeg, LLC, a Kansas limited liability company, referred to
herein as “MorMeg,” and EnerJex Resources, Inc., a Nevada corporation, referred
to herein as ”EnerJex” is effective as of July 14, 2009. MorMeg and EnerJex are
jointly referred to herein as “the parties”.

    

    Recitals

    

    A.           Pursuant
to Section C and D1 of the JEA, EnerJex was to provide $4,000,000 in funding
toward the development of Black Oaks (the “Minimum Funding”);

    

    B.           Pursuant
to Section D.5. of the JEA, following the Minimum Funding, EnerJex was required
to, within a reasonable length of time, secure and contribute additional funding
so as not to cause more than thirty (30) days delay of project activities due to
lack of funding to develop Black Oaks;

    

    C.           Pursuant
to Section D.6, of the JEA, as amended, EnerJex was granted a nine (9) month
option to elect to participate in the Nickel Town prospect;

    

    D.           On
or about July 3, 2008, EnerJex entered a new three-year $50 million senior
secured credit facility with Texas Capital Bank, N. A. (the “Credit Facility”);
and

    

    E.           MorMeg
and EnerJex desire to amend the JEA.

    

    NOW, THEREFORE, for and in
consideration of the foregoing, and of the mutual covenants, agreements,
undertakings, representations and warranties contained herein, the parties
hereto agree as follows:

    

    
      	
               
      

            	
              1.

            	
              Section
      D5 of the JEA is hereby amended and restated in its entirety as
      follows:

            

    

    

    5.  Notwithstanding
anything to the contrary herein or elsewhere, EnerJex will have until December
31, 2009 (the “Additional Capital Deadline”) to contribute additional capital
towards the development of Black Oaks, and within a reasonable length of time
thereafter, secure and contribute additional funding so as not to cause more
than thirty (30) days delay of project activities due to lack of funding to
complete the project. In the event EnerJex is not successful in obtaining
additional funding, or all funding, to complete the Black Oaks development
described in Section 6, MorMeg may cancel and declare the JEA of no force and
effect from the point of cancellation forward. In the event of cancellation of
the JEA by MorMeg, the following procedure and formula will be used to
distribute the ownership and pay the debts of the project.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              A.

            	
              The
      project revenues from whatever source will be used to repay all debt
      associated with the project, including without limitation any loan or debt
      incurred by EnerJex to obtain funding for the Black Oaks
      Project.

            

    

    

    
      	
               
      

            	
              B.

            	
              When
      the project debt is paid, the working interest of the individual leases
      within the Black Oaks block will be assigned to EnerJex in the undivided
      interest that the total EnerJex investment bears to the total of that
      investment plus the pre-project commencement value stated in paragraph 2
      of the Recitals, with the remaining undivided interest (which shall not be
      a carried interest) being assigned to MorMeg. The parties agree to
      reassign working interest if necessary to redistribute the working
      interest according to the above
formula.

            

    

    

    
      	
               
      

            	
              2.

            	
              Section
      D.6 of the JEA is hereby amended and restated in its entirety as
      follows:

            

    

    

    6. It is
agreed that all the joint exploration activities and resources will be dedicated
to the Black Oaks project until the completion of all activities in Exhibit
“B.”

    

    
      	
               
      

            	
              3.

            	
              Any
      provision of the JEA, or its amendments expressly granting EnerJex an
      option to participate in the Nickel Town prospect is hereby deleted, and
      any reference to any option regarding the Nickel Town leases is of no
      force or effect by mutual agreement of the
  parties.

            

    

    

    
      	
               
      

            	
              4.

            	
              In
      the event of a conflict between this Fourth Amendment and the JEA and any
      amendments thereto, this Fourth Amendment shall prevail to the extent of
      such conflict.

            

    

    

    
      	
               
      

            	
              5.

            	
              This
      Fourth Amendment shall be of no force and effect upon a material default
      by EnerJex under the Credit
Facility.

            

    

    

    
      	
               
      

            	
              6.

            	
              Other
      than as specifically provided in this Fourth Amendment, all other
      provisions of the JEA shall remain in full force and
      effect.  This Fourth Amendment constituting the sole and entire
      agreement between the parties as to the matters contained herein, and
      supersedes any and all conversations, letters and other communications
      which may have been disseminated by the parties relating to the subject
      matter hereof, all of which are void and of no
  effect.

            

    

    

    
      	
               
      

            	
              7.

            	
              Any
      capitalized terms not defined herein have the meaning set forth in the
      JEA.

            

    

    

    
      	
               
      

            	
              8.

            	
              This
      Fourth Amendment may be executed in any number of counterparts, all of
      which taken together shall constitute one and the same instrument, and the
      parties hereto may execute this Fourth Amendment by signing any such
      counterpart.

            

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              9.

            	
              The
      parties hereby agree to take or cause to be taken such action, and to do
      and perform all such other acts and things as are necessary, advisable or
      appropriate to carry out the intent and terms of this Fourth
      Amendment

            

    

    

    IN
WITNESS WHEREOF, the parties have executed this Fourth Amendment as of the date
first above written.

    

    MorMeg:

    

    
      
        
          	
                  MORMEG,
      LLC, a Kansas limited liability company

                
	 
      
	
                  By:

                	
                  /s/ Mark Haas

                
	
                  Name:
      Mark Haas

                
	
                  Title:
      Managing Member

                

        

      

    

    

    EnerJex:

    

    EnerJex Resources, Inc., a Nevada
corporation

    

    
      
        
          	
                  By:

                	/s/ C. Steve Cochennet
	
                  Name:
      Steve Cochennet

                
	
                  Title: Chief Executive
Officer

                

        

      

    

    
      
         

      

      
        3Unassociated Document

    TEXAS
CAPITAL BANK, N.A.

    One
Riverway, Suite 2450

    Houston,
Texas 77056

    

    July 14,
2009

    

    Via Facsimile and Regular
Mail

    EnerJex
Resources, Inc.,

    EnerJex
Kansas, Inc.

    DD
Energy, Inc.

    27
Corporate Woods, Suite 350

    10975
Grandview Drive

    Overland
Park, Kansas 66210

    Attention:
Steve Cochennet

    

    
      	
              RE:

            	
              Waiver
      Letter (“Waiver
      Letter”)
      regarding Credit Agreement dated July 3, 2008 (as amended, “Credit
      Agreement”) between Texas Capital Bank, N.A., as a Bank, L/C Issuer
      and Administrative Agent (in such latter capacity and together with its
      successors and permitted assigns in such capacity, the “Administrative
      Agent”), the financial institutions from time to time parties
      thereto, and EnerJex Resources, Inc., EnerJex Kansas, Inc. and DD Energy,
      Inc. (collectively, “Borrowers”)
      (collectively, the “Parties”)

            

    

    

    Dear Mr.
Cochennet:

     

    Borrowers
have requested that the Administrative Agent and the Lenders waive certain
covenants under the Credit Agreement.  This Waiver Letter evidences
Administrative Agent’s and the Lenders’ agreement to waive any Default or Event
of Default that may have occurred in relation to Borrowers’ non-compliance with
Section 7.12(a), Current Ratio, and Section 7.12(c), Interest Coverage Ratio, of
the Credit Agreement, solely in relation
with the fiscal quarter ending March 31, 2009.

     

    The
agreement in this Waiver Letter shall not be considered an admission or
agreement that any other modifications are contemplated by the Parties
or in any Loan Document or establish any course of dealing
between Administrative Agent or the Lenders and Borrowers with regard to
future waivers or amendments.  This Waiver Letter should not be
construed as an indication that Administrative Agent or the Lenders would be
willing to agree to any future modifications to any of the terms of the Credit
Agreement or other Loan Documents, or any waiver of any Events
of Default or Defaults that may exist or occur thereunder.

     

    This
Waiver Letter will become effective once it is fully executed by Borrowers and
delivered to Administrative Agent.  In addition, Borrowers agree pay
to Administrative Agent, for its account, a waiver fee in the amount of
$17,716.00, in immediately available funds, on or before the expiration of ten
(10) days following the date of this Waiver Letter.

     

    If you
agree to the terms hereof, please sign and return three original counterparts of
this Waiver Letter to my attention by 5:00 p.m., July 14, 2009.

     

    
      
        
          	 
      	
                  Sincerely,

                
	 
      	 
      
	 
      	
                  TEXAS
      CAPITAL BANK, N.A.

                
	 
      	 
      
	 
      	
                  By:

                	      
                  /s/
      Jonathan Gregory

                
	 
      	
                  Jonathan
      Gregory

                
	 
      	
                  Executive
      Vice President

                

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    ACCEPTED
AND AGREED TO THIS  14th day of July, 2009.

    

    
      
        	
                EnerJex
      Resources, Inc.

              	
                EnerJex
      Kansas, Inc.

              

      

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            By:

                                          	/s/
      C. Steve Cochennet	 	
                                            By:

                                          	/s/
      C. Steve Cochennet
	

                                            Steve
      Cochennet,

                                          	 	

                                            Steve
      Cochennet,

                                          
	

                                            Chief
      Executive Officer

                                          	 	

                                            Chief
      Executive Officer

                                          
	 
      	 	 
      
	
                                            DD
      Energy, Inc.

                                          	 	 
      
	 
      	 	 
      
	
                                            By:

                                          	/s/
      C. Steve Cochennet	 	 
      
	
                                            Steve
      Cochennet,

                                          	 	 
      
	
                                            Chief
      Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]