Document:

AGREEMENT

 

THIS AGREEMENT (the
“Agreement”) is entered into this 1st day of May, 2014 (“Effective Date”), by and among ENERJEX
KANSAS, INC., a Nevada corporation (“EnerJex”), WORKING INTEREST, LLC, a Kansas limited liability company (“WILLC”),
VIKING ENERGY PARTNERS, LLC, a Texas limited liability company (“Viking”), and COAL CREEK ENERGY, LLC, a Kansas limited
liability company (“Coal Creek”, and together with EnerJex, WILLC, and Viking, individually a “Party”
and collectively the “Parties”).

 

Recitals

 

A.WILLC, Viking, and Coal Creek
each own undivided working interests in and to some or all of the oil and gas leases described in this Agreement.

 

B.EnerJex is operator of the oil
and gas leases described in this Agreement under various Joint Operating Agreements and other agreements among the working interest
owners.

 

C.The Parties desire to sever their
joint ownership of certain oil and gas leases on the terms set forth herein.

 

Agreement

 

IN
CONSIDERATION of the mutual covenants contained herein, the Parties agree as follows:

1.Assignment
of Certain Leases to Coal Creek. At closing of this Agreement, WILLC and Viking shall execute and deliver to Coal Creek
their assignments, in the form attached hereto as Exhibit A, assigning to Coal Creek all of WILLC’s and Viking’s right,
title, and interest in and to the oil and gas leases described on Exhibit B attached hereto, except any overriding royalty interests
of record. Such assignments shall be without warranty of title or warranties of any kind, and shall be “as is, where is”
with respect to machinery, equipment, and other tangible personal property assigned thereunder; provided, however, that
the assignors shall warranty that the interests assigned are free and clear of any encumbrances arising by or through assignors.

 

2.Assignment of Certain Leases
to WILLC. At closing of this Agreement, Coal Creek shall execute and deliver to WILLC its assignment, in the form attached
hereto as Exhibit C, assigning to WILLC all of Coal Creek’s right, title, and interest in and to the oil and gas leases described
on Exhibit D attached hereto, except any overriding royalty interests of record. Such assignment shall be without warranty of title
or warranties of any kind, and shall be “as is, where is” with respect to machinery, equipment, and other tangible
personal property assigned thereunder; provided, however, that the assignor shall warranty that the interests assigned are
free and clear of any encumbrances arising by or through assignor.

 

3.Assignment
of Certain Leases to WILLC and Viking. At closing of this Agreement, Coal Creek shall execute and deliver to WILLC and
Viking its assignment, in the form attached hereto as Exhibit E, assigning to WILLC an undivided sixty-five percent (65%) of its
right, title, and interest, and to Viking an undivided thirty-five percent (35%) of its right, title, and interest in and to the
oil and gas leases described on Exhibit F attached hereto, except any overriding royalty interests of record. Such assignment
shall be without warranty of title or warranties of any kind, and shall be “as is, where is” with respect to machinery,
equipment, and other tangible personal property assigned thereunder; provided, however, that the assignor shall warranty
that the interests assigned are free and clear of any encumbrances arising by or through assignor.

 

 

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4.Payment
of JIBs By Coal Creek. At closing of this Agreement, Coal Creek shall immediately pay to EnerJex in certified or other
immediately available funds the amount of $69,000.00, which is the estimated outstanding balance owed by Coal Creek to EnerJex
under joint interest billings (“JIBs”) covering the period through April 30, 2014. To the extent the actual, final
amount varies, it will be subject to post closing adjustment pursuant to paragraph 6 below.

 

5.Transfer of Operations.
EnerJex shall resign as operator of the oil and gas leases described on Exhibit B attached hereto at closing of this Agreement,
and shall execute such documents as are necessary to transfer operations of such leases to JTC Oil, Inc. or such other licensed
operator designated by Coal Creek, effective as of the date of closing. The Parties acknowledge that third parties own the majority
of the undivided working interest in and to the Johnston Unit leases described on Exhibit B attached hereto, and that Coal Creek
shall be responsible for obtaining from third parties such consents, approvals, and waivers of rights as necessary for the transfer
of interests to Coal Creek and appointment of a new operator. Upon closing of this Agreement, all Joint Operating Agreements among
the Parties governing operation of the oil and gas leases described on the exhibits hereto are hereby terminated.

 

6.Post-Closing Matters.
After closing of this Agreement, EnerJex shall continue to maintain accounts for each of the Parties to account for any additional
expenses and any additional credits due from or to such Parties arising from operations and production related to the interests
being assigned pursuant to paragraphs 1 through 3, above, through April 30, 2014. On January 31, 2015, or such earlier or later
date mutually agreed to by EnerJex and the other Parties, the accounts will be settled and closed. At such time, any Party owing
a net balance to another Party shall pay such amount by certified or other immediately available funds.

 

7.Taxes. With respect
to each interest transferred pursuant to this Agreement, each Party shall be responsible for paying its ratable share of any property,
ad valorem, and/or severance taxes (“Tax Burdens”) incurred by EnerJex for the period ending April 30, 2014 based on
each Party’s respective ownership in the subject leases immediately prior to the Effective Date. Any such amounts shall be
payable to EnerJex immediately upon receipt of notice from EnerJex describing such amounts and providing proof of such Tax Burdens.
The Tax Burdens for tax year 2014 shall be allocated thirty-three percent (33%) to the period ending April 30, 2014 and sixty-seven
percent (67%) to the period commencing May 1, 2014.

 

8.Inventory Payment.The
Parties agree that some of the leases subject to this Agreement contained saleable oil in the storage tanks ("Inventory Oil")
at the end of April 30, 2014 (the “Transfer Date”), and each Party agrees to ratably compensate the other Party or
Parties for the transfer of Inventory Oil as of the Transfer Date based on a net price of $92.00 per barrel of oil for the Inventory
Oil. The Inventory Oil is based upon month-end measurements conducted by EnerJex and disclosed on Exhibit G attached hereto. Each
Party owing funds to another Party for Inventory Oil pursuant to Exhibit G shall immediately make a onetime payment to such Party
in immediately available funds at closing of this Agreement.

 

 

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9.Representations and
Warranties of Parties. Each Party hereto hereby represents and warrants on its own behalf that:

 

		a.	This Agreement is a valid and binding obligation of such Party enforceable in accordance with its terms.

 

		b.	Such Party is not party to any agreement that in any manner restricts its right to enter into this Agreement and carry out
the transactions contemplated hereby.

 

		c.	The execution and delivery of this Agreement and performance of its obligations hereunder and the transactions contemplated
hereby will not result in a breach of, or constitute a default of, any agreement to which such Party is a party.

 

		d.	The interests assigned by such Party pursuant to this Agreement shall, as of the closing of this Agreement, be free and clear
of any encumbrances arising by or through assignor.

 

		e.	Such Party is currently being paid oil production sale revenues based on the Net Revenue Interest (“NRI”) of its
interest in each of the producing leases subject to this Agreement as set forth on Exhibit H attached hereto, and represents that,
to the best of its knowledge, the NRIs shown on Exhibit H accurately reflect its ownership interests in all of the subject leases.

 

		f.	Such Party has not made any assignment of, or any other arrangement relating to, its interests in the subject leases that have
reduced or could reduce such Party’s NRI in any lease subject to this Agreement as shown on Exhibit H.

  

10.Closing. Closing
of this Agreement shall occur immediately upon execution of this Agreement, and shall be effective as of the Effective Date. At
closing, each Party shall deliver to the appropriate Party such funds and documents as provided herein.

 

11.Complete Agreement. 
This Agreement, together with the Exhibits hereto and the documents to be signed and delivered at closing, contains the entire
agreement of the Parties with respect to the transactions contemplated hereby and may be amended, modified or supplemented only
by a written instrument duly signed by the Party against which such amendment, modification or supplement is sought to be enforced.

 

12.Governing Law. This Agreement
shall be construed in accordance with the laws of the state of Kansas.

 

 

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13.Attorneys’ Fees and
Costs. If any legal action or other proceeding is brought for the enforcement of this Agreement, or because of an alleged dispute,
breach, default, or misrepresentation in connection with any of the provisions herein, the successful or prevailing Party or Parties
shall be entitled to recover its or their actual reasonable attorneys’ fees and other costs incurred in that action or proceeding
in addition to any other relief to which it or they may be entitled.

 

14.Expenses. Coal Creek
shall pay fifty percent (50%) of the legal fees incurred by EnerJex for drafting of this Agreement and closing documents, including
exhibits hereto and thereto. Coal Creek’s share of such legal fees of $4,675.00 shall be immediately paid to EnerJex at closing
of this Agreement.

 

15.Successors and Assigns. This
Agreement shall be binding upon and shall inure to the benefit of the Parties hereto, their successors and assigns.

 

16.Counterparts and Electronic
Signature. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, which shall
be deemed to constitute one and the same instrument. The counterparts may be executed and delivered by facsimile or other electronic
signature by any of the Parties to any other Party and the receiving Party may relay on the receipt of such document so executed
and delivered as if the original had been received.

 

IN WITNESS WHEREOF,
the Parties have executed this Agreement as of the date first written above.

 

	ENERJEX KANSAS, INC.	 	WORKING INTEREST, LLC
	 	 	 	 	 
	By	/s/ Robert Watson Jr	 	By	/s/ Robert Watson Jr.
	 	Robert Watson, Jr., President	 	 	Robert Watson, Jr., President
	 	 	 	 	 
	 	 	 	 	 
	VIKING ENERGY PARTNERS, LLC	 	COAL CREEK ENERGY, LLC
	 	 	 	 	 
	By	/s/ William Kruse	 	By	/s/ John L. Loeffelbein
	 	William Kruse, Manager	 	 	John Loeffelbein, Manager

 

 

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    	4WAIVER OF BENEFITS

 

This Waiver of Benefits (this “Waiver”)
is entered into as of the 30th day of December, 2013, by and among First Reliance Bancshares, Inc., a South Carolina corporation
(the “Company”), First Reliance Bank, a bank chartered under South Carolina law and a wholly owned subsidiary
of the Corporation (the “Bank” and together with the Company, the “Employer”),
and F. R. Saunders, Jr. (the “Executive”).

 

WHEREAS, the Employer and the Executive
entered into that certain Employment Agreement, dated as of 11/24/2006, attached hereto as Exhibit A (the “Employment
Agreement”);

 

WHEREAS, pursuant to Section 2.2(a)
of the Employment Agreement, the Employer agreed to pay or cause to be paid the Executive’s initiation and membership assessments
and dues in a country club of the Executive’s choice (the “Benefits”); and

 

WHEREAS, the Employer desires to
cease providing initiation and membership assessments and dues in country clubs to its employees and any reinstatement is at the
discretion of the Chief Executive Officer. The Executive voluntarily agrees to waive and relinquish the right to continue to receive
the Benefits under Section 2.2(a) of the Employment Agreement.

 

NOW, THEREFORE, for and in consideration
of the promises, and the mutual covenants and agreements contained in the Employment Agreement, and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1.The
Executive hereby voluntarily waives and relinquishes the right to continue to receive the Benefits set forth under Section 2.2(a)
of the Employment Agreement and hereby waives and relinquishes the right to assert any and all claims relating to the Benefits.

 

2.Except
as provided in Section 1, above, the Employment Agreement shall remain in full force and effect.

 

3.This
Waiver may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which together
shall constitute one instrument binding on the parties, notwithstanding that both parties are not signatories to the original
or the same counterpart. This Waiver shall be binding upon and shall inure to the benefit of the parties hereto and their respective
successors and assigns.

 

4.This
Waiver shall be governed by and construed, interpreted and enforced in accordance with the laws of the State of South Carolina,
notwithstanding its conflicts of laws, principles or any other rule, regulation or principle that would result in the application
of another state’s laws. 

 

IN WITNESS WHEREOF, each party has
caused this Waiver to be executed as of the date first set forth above.

 

	EXECUTIVE	 	FIRST RELIANCE BANCSHARES, INC.
	 	 	 	 
	/s/ F. R. Saunders, Jr	 	/s/ Jeffrey A. Paolucci
	 	 	By: 	Jeffrey A. Paolucci
	 	 	Its:	CFO
	 	 	 	 
	 	 	FIRST RELIANCE BANK
	 	 	 	 
	 	 	/s/ Jeffrey A. Paolucci
	 	 	By: 	Jeffrey A. Paolucci
	 	 	Its:	CFO

 

    	 

    	 

    

 

Exhibit A

 

Employment Agreement

(Omitted)

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