Document:

Exhibit 10.13

 

AmegyBank

 

FIRST AMENDMENT TO REVOLVING
PROMISSORY NOTE

 

This First Amendment to Revolving
Promissory Note is executed effective October 16, 2008, by INFINITY ENERGY RESOURCES, INC. (“Borrower”), a Delaware
corporation, and AMEGY BANK NATIONAL ASSOCIATION (“Lender”).

 

Recitals:

 

Borrower is legally obligated
to pay a Revolving Promissory Note (the “Revolving Note”) dated January 9, 2007, in the maximum principal amount
of $50,000,000.00, executed by Borrower, and payable to the order of Lender. The Revolving Note is governed by the Loan Agreement
dated January 9, 2007, among Borrower, Lender, and Guarantors (as defined therein), as amended (the “Loan Agreement”),
as modified by the Forbearance Agreement dated August 31,2007, among Borrower, Lender, and Guarantors, the Second Forbearance Agreement
dated March 26, 2008, among Borrower, Lender, and Guarantors, and the Third Forbearance Agreement (the “Third Forbearance
Agreement”) of even date herewith, among Borrower, Lender, and Guarantors. The Revolving Note matures on January 9, 2009,
and Borrower has requested that Lender extend the Maturity Date in connection with the Third Forbearance Agreement as set forth
below. Unless otherwise defined herein, capitalized terms herein have the meanings assigned in the Revolving Note.

 

Agreement:

 

For valuable consideration,
including the funds previously advanced by Lender to Borrower under the Revolving Note, the receipt and sufficiency of which are
hereby acknowledged, Borrower and Lender agree and stipulate as follows:

 

1.           The
recitals above are true and correct and form the basis for this amendment.

 

2.           The
Maturity Date of the Revolving Note is extended until May 31, 2009.

 

3.           The
Revolving Note will continue to be due and payable as follows:

 

(a)           accrued,
unpaid interest on this Note shall be due and payable on each Interest Payment Date, commencing on the date of this Amendment,
and continuing until the Maturity Date;

 

(b)           the
principal of this Note shall be due and payable as required by the Loan Agreement as modified by the Third Forbearance Agreement,
to meet any Borrowing Base deficiency or Monthly Commitment Reductions (if and when required by Lender under the Loan Agreement);
and

 

(c)           the
outstanding principal balance of the Revolving Note, together with all accrued but unpaid interest, shall be due and payable on
the Maturity Date, as extended.

    	 

    	 

    

4.           Borrower
acknowledges that the outstanding principal balance of the Revolving Note as of September 3,2008, is $9,910,493.64, and that Borrower
has no defenses or setoffs to payment of the Revolving Note.

 

5.           Except
as specifically amended herein, the Revolving Note remains unchanged; and Borrower ratifies the Revolving Note, as amended. All
liens and security interests securing payment of the Revolving Note are renewed and extended until the Revolving Note is paid in
full.

 

6.           At
Lender’s option, this Amendment may be executed by Borrower in remote locations with signature pages faxed to Lender. Borrower
agrees that the faxed signatures are binding upon Borrower, and Borrower further agrees to promptly deliver the original signatures
for this Amendment by overnight mail or expedited delivery.

 

THE WRITTEN LOAN AGREEMENT REPRESENTS
THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS
OF THE PARTIES.

 

THERE ARE NO UNWRITTEN AGREEMENTS
BETWEEN THE PARTIES.

 

Executed effective on the date
stated above.

 

BORROWER:

 

	 	INFINITY ENERGY RESOURCES, INC.
	 	 
	 	By:	/s/ Stanton E. Ross
	 	 	Stanton E. Ross, President
	 	 	and Chief Executive Officer
	 	 
	 	LENDER:
	 	 
	 	AMEGY BANK NATIONAL ASSOCIATION
	 	 
	 	By:	/s/ A. Stephen Kennedy
	 	 	A. Stephen Kennedy,
	 	 	Senior Vice President/
	 	 	Manager - Energy Group

 

This Amendment was prepared
by:

Paul D. Bradford

HARRIS, FINLEY & BOGLE,
P.C.

777 Main Street, Suite 3600

Fort Worth, Texas 76102-5341

(817) 870-8700Exhibit 10.14

AMEGY BANK

1807 Ross Avenue, Suite 400

Dallas, Texas 75201

 

December 4, 2009

 

 

INFINITY ENERGY RESOURCES, INC.

633 Seventeenth Street, Suite
1800

Denver, Colorado 80202

 

Re:           Fourth
Forbearance Agreement

 

Ladies and Gentlemen:

 

This letter (this “Agreement”)
sets forth the fourth forbearance agreement among INFINITY ENERGY RESOURCES, INC. (“Borrower”), a Delaware corporation;
INFINITY OIL AND GAS OF TEXAS, INC., a Delaware corporation, and INFINITY OIL & GAS OF WYOMING, INC., a Wyoming corporation
(collectively “Guarantors”); and AMEGY BANK NATIONAL ASSOCIATION (“Lender”). Borrower, Guarantors,
and Lender previously entered into a Forbearance Agreement (the “First Forbearance Agreement”) dated August
31, 2007, a Second Forbearance Agreement (the “Second Forbearance Agreement”) dated March 26, 2008, and a Third
Forbearance Agreement (the “Third Forbearance Agreement”) dated October 16, 2008. Capitalized terms below have
the meanings assigned in the Loan Agreement dated January 9, 2007, among Borrower, Guarantors, and Lender, as amended (the “Loan
Agreement”).

 

1.           Forbearance.
Lender, Borrower, and Guarantors agree to a forbearance period commencing as of June 1, 2008, and continuing through January 31,
2010, unless terminated earlier by Lender due to a Default, as defined below (the “Forbearance Period”). During
the Forbearance Period, but subject to a Default, Lender will forebear from exercising any remedies under the Loan Agreement, the
Revolving Note, the Security Documents, the Guaranties, and the other Loan Documents.  Borrower and Guarantors agree
that all statutes of limitation with respect to enforcement of the Revolving Note, the Guaranties, and the Security Documents will
be tolled during the Forbearance Period and for ninety (90) days thereafter.

 

2.           Revolving
Loan. (a) The “Termination Date” as defined in the Loan Agreement is hereby extended until 11:00 a.m. (Dallas,
Texas time) on January 31, 2010.  Borrower agrees to sign and deliver a Second Amendment of the Revolving Note to reflect
this extension.

 

(b)           Notwithstanding
any provision in the Loan Agreement or the Revolving Note to the contrary, Borrower may not request any further advances on the
Revolving Loan without the prior written consent of Lender.

 

3.           Events
of Default. Borrower and Guarantors acknowledge that the following Events of Default have occurred and remain outstanding (the
“Existing Defaults”):

 

(a)           The
Existing Defaults set forth in the First Forbearance Agreement, the Second Forbearance Agreement, and the Third Forbearance Agreement;

 

 

    	 

    	 

    

INFINITY ENERGY RESOURCES, INC.

December 4, 2009

Page 2 of 18

 

(b)           Borrower
and Guarantors breached the financial covenants set forth in Subsection (a) - (h) of Section 8 of the Loan Agreement for the periods
ended September 30, 2008, December 31, 2008, March 31, 2009, June 30, 2009, and September 30, 2009; and

 

(c)           Borrower
and Guarantors breached the covenants set forth in Subsections (g), (i), and (m) of Section 7 of the Loan Agreement during the
periods ended  September 30, 2008, December 31, 2008, March 31, 2009, June 30, 2009, and September 30, 2009; provided,
however, that the breach of Subsection (i) of Section 7 of the Loan Agreement was solely attributable to involuntary mineral lien
claims made under Chapter 56 of the Texas Property Code or similar applicable law.

 

4.           Temporary
Waiver. Borrower and Guarantors have requested that Lender temporarily waive the Existing Defaults and additional defaults
under the provisions covered by the Existing Defaults, excluding, however, the following (the “Excluded Defaults”):
(i) except as contemplated under this Agreement, any additional defaults under the additional debt prohibitions in Subsection (h)
of Section 7 of the Loan Agreement, and (ii) any additional defaults under the use of Free Operating Cash Flow prohibitions in
Subsection (h) of Section 8 of the Loan Agreement.  Lender hereby waives the Existing Defaults through the Forbearance
Period only. This is a temporary and limited waiver, and Lender reserves the right to require strict compliance with all covenants
under the Loan Agreement, including the covenants violated as set forth above, in the future. This waiver does not modify, supplement,
or alter any of the terms of the Loan Agreement or any other Loan Document.  Further, this waiver shall not be construed
as a commitment by Lender to waive any future violation of the same or any other term or condition of the Loan Agreement or any
of the Loan Documents.  Neither the negotiation or execution of this Agreement will be an election of any right or remedy
available to Lender; and, except as specifically limited or postponed herein, Lender reserves all rights and remedies.

 

5.           Borrowing
Base and Deficiency. (a) Lender has set the Borrowing Base as of the date of this Agreement at $2,900,000.00, until reset by
Lender in connection with the next redetermination of the Borrowing Base.  Lender agrees that it will not redetermine
the Borrowing Base during the Forbearance Period.

 

(b)           As
of the date of this Agreement, the Borrowing Base results in a Borrowing Base deficiency in the amount of $8,003,468.00 (the “Deficiency”).
On or before the end of the Forbearance Period, Borrower and Guarantors agree to pay the Revolving Loan and all other fees and
obligations under this Agreement and the Loan Agreement, in full and cure the Deficiency by selling assets, refinancing of the
Revolving Loan, or raising capital on terms acceptable to Lender.

 

6.           Nicaragua
Concessions. (a) Borrower has received all governmental authorizations necessary for the validation and ratification of the
concessions (“Governmental Approval”) in the Tyra and Perlas Blocks, offshore Nicaragua, as awarded to Borrower
by the Republic of Nicaragua in 2003, as hereafter amended and modified (the “Nicaragua Concessions”), and affected
by Sentencia No. 92, Expediente No 591-06, rendered by the Supreme Court of Justice of the Republic of Nicaragua, Constitutional
Hall, dated May 2, 2006.

 

    	 

    	 

    

INFINITY ENERGY RESOURCES, INC.

December 4, 2009

Page 3 of 18

 

(b)           So
long as the Deficiency remains uncured or there is any outstanding Event of Default, Borrower and Guarantors agree that:

 

(i)           They
shall not sell, assign, transfer, or otherwise dispose of all or any interest in the Nicaragua Concessions, without the prior written
consent of Lender, except for (1) the sale of hydrocarbons in the ordinary course of business, (2) the sale or transfer of equipment
or inventory in the ordinary course of business or that is no longer necessary for the business of Borrower or that is obsolete
or replaced by equipment of at least comparable value and use, (3) the assignment or transfer required under Section 10.02 of Borrower’s
insurance policies issued by the Overseas Private Investment Corporation (“OPIC”) related to the Nicaragua Concessions
(the “OPIC Policies”), after payment of compensation for a claim made by Borrower under the OPIC Policies, (4)
in connection with the consulting arrangements identified on Schedule B attached, the conveyance of the overriding royalty
interest in the Nicaragua Concessions identified thereon, and (5) such conveyances of one or more overriding royalty interests
in the Nicaragua Concessions as approved by Lender in writing; and

 

(ii)           They
shall not mortgage, assign, hypothecate, pledge, or encumber, and not create, incur, or assume any lien or security interest on
or in, the Nicaragua Concessions (or any interest in the Nicaragua Concessions), without the prior written consent of Lender, except
for any security interest in favor of Lender and the Permitted Encumbrances.

 

7.           Nicaragua
Letters of Credit. Lender has issued two Letters of Credit in an aggregate amount equal to $851,550.00, in favor of the Direccion
General de Hidrocarburos, Insituto Nicaraguense de Energia, for the account of Borrower and as security for Borrower’s obligations
with respect to the Nicaragua Concessions (the “Nicaragua Letters of Credit”). Any fundings under the Nicaragua
Letters of Credit will be treated as an advance on the Revolving Loan and will be secured by the Security Documents.  The
Nicaragua Letters of Credit shall be on terms reasonably acceptable to Lender and shall be for a term of up to one year and, if
necessary, to renew automatically unless Lender gives prior written notice.  Borrower will sign and deliver Lender’s
customary forms for the issuance of Letters of Credit.  Lender agrees to take any and all reasonable actions in relation
to the Nicaragua Letters of Credit as may be reasonably requested, and comply with the terms and conditions reasonably set forth,
by the Nicaraguan government. Borrower agrees to pay to Lender a Letter of Credit fee on the Nicaragua Letters of Credit equal
to three and one-quarter percent (3.25%)  per annum, calculated on the aggregated stated amount of the Nicaragua Letters
of Credit for the stated duration thereof (computed on the basis of actual days elapsed as if each year consisted of 360 days),
and due on or before the Deferral Date (as defined below).

 

8.           Subordinate
Loans. Borrower has entered into one or more subordinate loans in an aggregate amount not less than $1,250,000.00, which are
subordinated to the Loans (the “Subordinate Loans”).  The Subordinate Loans are secured by security
documents on a fully-subordinated basis. Unless otherwise agreed by Lender in writing, the proceeds from the Subordinate Loans
may be used by Borrower for general and administrative expenses in excess of the monthly limit set forth below or for development
of the Nicaragua Concessions.

 

9.           Cash
Flow. Borrower agrees that it will use its commercially reasonable best efforts to cause the contribution of cash to Borrower
to the extent necessary so that Borrower’s consolidated cash flow is a minimum of break even, after payment of interest expense
on the Revolving Loan, to prevent any additional accounts payable from becoming past due, and to prevent any mineral liens under
Chapter 56 of the Texas Property Code or similar applicable law from being filed against the Properties.

 

    	 

    	 

    

INFINITY ENERGY RESOURCES, INC.

December 4, 2009

Page 4 of 18

 

10.           Lockbox.
Borrower and Guarantors agree that the following provisions regarding production proceeds attributable to their oil and gas properties
continue to apply:

 

(a)           Borrower
and Guarantors will direct all production proceeds attributable to their oil and gas properties to be paid to a lockbox account
to be set up and maintained with Lender for the purpose of collection of production proceeds (the “Lockbox Account”).

 

(b)           All
production proceeds received in the Lockbox Account by Lender with respect to production, severance, ad valorem, or other taxes
on production proceeds (excluding income taxes) or that are attributable to another person’s or entities’ royalty or
other interest in the oil and gas properties shall be released immediately to Borrower upon Borrower’s request and verification
of those amounts. Borrower and Guarantors shall provide evidence of the timely payment of production, severance, ad valorem, or
other taxes on production proceeds (excluding income taxes) and of the royalty and overriding royalty owners; provided, however,
that no royalties and overriding royalty interests owned by Borrower, Guarantors, or any affiliates of Borrower or Guarantors within
the meaning of Securities and Exchange Commission Rule 144, shall be paid from the Lockbox Account proceeds.

 

(c)           Borrower
will provide Lender with a proposed budget of recurring operating expenses, non-recurring operating expenses, general and administrative
expenses, and any capital expenditures for the oil and gas properties expected to be paid during the Forbearance Period and supporting
documentation for those expenses and expenditures.

 

(d)           At
Borrower’s request, production proceeds in the Lockbox Account may be used to pay operating expenses, general and administrative
expenses (subject to the limits in Section 15 below), and capital expenditures, all as approved by Lender (which approval
shall not be unreasonably withheld, delayed, or denied).  Borrower and Guarantors shall not pay in any month operating
expenses, general and administrative expenses, or capital expenditures exceeding the aggregate budgeted expenses for each such
category for that month, unless Lender has approved such payments.  Borrower shall, not later than two (2) business days
prior to the date on which Borrower proposes to pay such operating expenses, general and administrative expenses, or capital expenditures
and as a condition precedent to requesting such approval, deliver to Lender in usual and customary form reasonably acceptable to
Lender reasonable detail of all expenses and expenditures proposed to be paid in respect of such month.  Any excess production
proceeds in the Lockbox Account may be used only for such other purposes as approved by Lender, in its discretion.

 

(e)           All
production proceeds remaining in the Lockbox Account after payment of the taxes and royalties as provided above and the operating
expenses and discretionary amounts as provided above will be applied by Lender on the last day of each month to the principal and
interest on the Revolving Note and all other fees and obligations under this Agreement and the Loan Agreement as set forth in Section
3.2 of the Deed of Trust.  If the production proceeds received in the Lockbox during any month are not sufficient to
make the scheduled monthly interest payment on the Revolving Loan, Borrower will pay Lender the deficiency within ten (10) days
of notice from Lender of such shortfall.

 

    	 

    	 

    

INFINITY ENERGY RESOURCES, INC.

December 4, 2009

Page 5 of 18

 

(f)           Borrower
and Guarantors agree that the insurance proceeds in the approximate amount of $100,000.00, from the 2008 saltwater disposal tank
fire, shall be promptly deposited upon receipt, into the Lockbox Account and used for the purposes set forth above.

 

11.           Sale
of Oil and Gas Properties. In order to cure the Deficiency and pay the Revolving Note and all other fees and obligations under
this Agreement and the Loan Agreement in full, Borrower and Guarantors agree to take the following actions:

 

(a)           Borrower,
INFINITY OIL & GAS OF WYOMING, INC. (“IOGWy”), and INFINITY OIL AND GAS OF TEXAS, INC. (“IOGTx”)
shall proceed with the sale and marketing of the interest retained in the oil and gas properties of IOGWy (the “Rockies
Properties”) and the Texas oil and gas properties of IOGTx (the “Texas Properties”). Borrower and
Guarantors shall devote their substantial efforts, time, talents, and expertise to the sale and marketing of the Rockies Properties
and the Texas Properties, will take all lawful actions as will result in the prompt payment of the Deficiency, and will thereafter
accept any commercially reasonable offer to buy the Rockies Properties and the Texas Properties, or any of them; provided no oil
and gas property or leasehold interest which is mortgaged to Lender shall be sold except on terms and price acceptable to Lender
and with the prior written approval of Lender.  Borrower and Guarantors shall use their best efforts to (i) promptly
open a data room on the properties to be sold, (ii) to promptly obtain firm proposals for the sale of the properties, (iii) to
execute a definitive agreement or agreements, subject to stockholder approval if required, for the sale of properties with proceeds
sufficient to repay the Deficiency, and (iv) seek stockholder approval, if required, and consummate the sale of the properties
as soon as practicable thereafter.

 

(b)           Borrower
and Guarantors have entered into an agreement with an oil and gas divestiture firm acceptable to Lender, to assist with sales of
the Rockies Properties and the Texas Properties under this Section. Borrower and Guarantors shall promptly provide Lender
with a copy of the agreement or engagement letter with any oil and gas divestiture firm retained to assist with sales under this
Section; and thereafter Borrower and Guarantors shall provide a monthly report on the first (1st)
day of each month, to be prepared by the oil and gas divestiture firm engaged by Borrower and Guarantors to facilitate the sale
of the oil and gas properties and leasehold interests, that includes any and all information pertaining to property bids, the current
status of any bids or sale discussions, and all marketing efforts employed to sell the Rockies Properties and the Texas Properties.
Notwithstanding any provision to the contrary, at least two business days prior to the date on which Borrower proposes to pay such,
Borrower shall deliver to Lender in usual and customary form reasonably acceptable to Lender, reasonable detail of all broker fees
and other transaction costs related to the sale of the properties proposed to be paid from proceeds in the Lockbox Accounts, and
thereafter Borrower may pay such fees and costs as are approved by Lender (which approval shall not be unreasonably withheld, delayed,
or denied).

 

(c)           No
sale of any of the Rockies Properties and the Texas Properties, or any of them, will be permitted to an affiliate of Borrower or
Guarantors, unless Lender consents in writing.

 

    	 

    	 

    

INFINITY ENERGY RESOURCES, INC.

December 4, 2009

Page 6 of 18

 

(d)           Except
as set forth below, Borrower and Guarantors will direct all of the net sale proceeds from the sale of any of the Rockies Properties
and the Texas Properties to be paid to Lender to be applied to the Revolving Note and all other fees and obligations under this
Agreement and the Loan Agreement, and to cash securing all outstanding Letters of Credit, including the Nicaragua Letters of Credit,
in such order as determined by Lender and shall take all lawful actions to ensure that the proceeds of any such sales are contemporaneously
with the closing thereof applied to the Revolving Note and all other fees and obligations under this Agreement and the Loan Agreement,
and cash security for all outstanding Letters of Credit, including the Nicaragua Letters of Credit, as herein provided.  Lender
hereby agrees that, so long as there is no Default at the time of the sale of the Rockies Properties, Borrower and IOGWy may retain
twenty percent (20%) of the net sale proceeds from the sale and use those net sale proceeds solely for working capital and development
of the Nicaragua Concessions.

 

12.           Use
of Proceeds. Notwithstanding any term of this Agreement or the Loan Agreement to the contrary, Borrower and Guarantors shall
not use any proceeds from the Lockbox Account, any proceeds from any capital contribution, any proceeds of the Subordinate Loans,
or any net sale proceeds from the sale of any of the Rockies Properties or the Texas Properties for the purpose of acquiring any
oil and gas properties or leases or drilling any well, without the prior written consent of Lender.

 

13.           Hedge
Transactions. Notwithstanding the terms of Section 4 of the Loan Agreement, Borrower and Guarantors agree that during the Forbearance
Period and so long thereafter as any Event of Default remains outstanding and uncured, Borrower and Guarantors shall not enter
into any Hedge Transaction without the prior written consent of Lender.  If Lender consents to any additional Hedge Transactions,
those Hedge Transactions must comply with the terms of Section 4 of the Loan Agreement.

 

14.           Audit
and Inspections. (a) Borrower and Guarantors agree that Lender and its auditors or accountants may, during the term of this
Agreement, conduct an audit at Borrower’s and Guarantors’ offices and examine, audit, and make and take away copies
or reproductions of Borrower’s and Guarantors’ books and records reasonably required by Lender, relating to (i) the
sources and uses of all funds advanced by Lender under the Revolving Note, and (ii) the sources and uses of all production proceeds
attributable to Borrower’s and Guarantors’ oil and gas properties. Lender will provide Borrower and Guarantors with
five (5) business days written notice of its intention to commence the audit.  Borrower and Guarantors agree to cooperate
with Lender and comply with all reasonable requests in connection with the audit, and Borrower and Guarantors hereby consent to
the review and use by Lender’s auditors of Borrower’s third-party audit of the books and records of Borrower, Guarantors,
and any other subsidiaries, including the supporting documentation and work papers of such independent auditors.

 

15.           Reporting
Requirements. Until the Revolving Note and all other fees and obligations under this Agreement and the Loan Agreement
are paid in full, and all outstanding Letters of Credit, including the Nicaragua Letters of Credit, are terminated or cash secured
to Lender’s satisfaction, Borrower and Guarantors will furnish to Lender the following in Proper Form:

 

    	 

    	 

    

INFINITY ENERGY RESOURCES, INC.

December 4, 2009

Page 7 of 18

 

(a)           Within
ten (10) days of the end of each month, a report showing Borrower’s consolidated actual cash flow for the month and for the
period from the beginning of the fiscal year through the end of the month and consolidated projected cash flow for the next six
months.

 

(b)           Within
ten (10) days of the end of each month, an accounts payable listing and aging, along with copies of all additional liens or claims
made by any account creditors.

 

(c)           As
received and available, Borrower and Guarantors shall promptly provide to Lender all information related in any way to their ability
to raise additional capital.

 

(d)           As
received and available, Borrower and Guarantors shall promptly provide to Lender copies of any agreement or engagement letter with
an oil and gas divestiture firm, all written purchase bids, purchase agreements, and farm-in proposals related in any way to the
prospective sale of any of the Rockies Properties and the Texas Properties and shall promptly inform Lender of any unwritten offers
or bids.

 

(e)           As
received and available, Borrower and Guarantors shall promptly provide to Lender copies of any term sheets or financing proposals
received that would result in the Deficiency being cured or a refinance of the entire outstanding amount owed on the Revolving
Note.

 

(f)           Notwithstanding
the provisions of Subsection (h) of Section 9 of the Loan Agreement, within fifty (50) days of the end of each month, a
production report, on a lease-by­lease or unit basis, showing the gross proceeds from the sale of oil, gas, and associated
hydrocarbons produced from the Properties, the quantity of oil, gas, and associated hydrocarbons sold, the severance, gross production,
occupation, or gathering taxes deducted from or paid out of the proceeds, settlements of any Hedge Transactions, the cash lease
operating expenses, including non-recurring cash operating expenses, intangible drilling costs, and capital expenditures, general
and administrative expenses, the number of wells operated, drilled, or abandoned, the name, address, telephone number, and contact
of the first purchaser of production for all of the Properties, and such other information as Lender may reasonably request;

 

(g)           such
other information respecting the condition and the operations, financial or otherwise, of Borrower, Guarantors, and the Properties
as Lender may from time to time reasonably request.

 

16.           Additional
Collateral. In consideration of the forbearance under this Agreement, Borrower agrees to sign and deliver a Restated Commercial
Security Agreement (the “Security Agreement”) in Proper Form, amending and restating the March 26, 2008, granting
a security interest in any future sale proceeds from the sale of all or any part of the rights Borrower may have in the Tyra and
Perlas Blocks, offshore Nicaragua, as awarded to Borrower by the Republic of Nicaragua in 2003, as hereafter amended and modified
(the “Nicaragua Concessions”), in any future subsidiaries in which the rights with respect to the Nicaragua
Concessions are assigned, and in any proceeds or rights related to Borrower’s insurance policies issued by the Overseas Private
Investment Corporation (“OPIC”) related to the Nicaragua Concessions (the “OPIC Policies”),
and acknowledged by the Overseas Private Investment Corporation.  Borrower and Guarantors agree to mortgage all oil and
gas properties and leasehold interests (excluding the Nicaragua Concessions) owned by Borrower or Guarantors and not previously
mortgaged to Lender as additional security for the Notes.  Within thirty (30) days of the date of this Agreement, Borrower
and IOGTx agree to provide evidence to Lender documenting their efforts to obtain a waiver of the prohibition against liens from
the lessors on the Murray lease, Erath County, Texas. Lender agrees to release without delay the Security Agreement in the event
that the OPIC notifies Borrower of payment of compensation for a claim made by Borrower under the OPIC Policies; provided, however
that if released the Security Agreement under such circumstances, Borrower agrees that the compensation for a claim made by Borrower
under the OPIC Policies shall still be paid to Lender for application to the Revolving Loan.

 

    	 

    	 

    

INFINITY ENERGY RESOURCES, INC.

December 4, 2009

Page 8 of 18

 

17.           Interest.
(a) Borrower and Lender hereby agree that during the Forbearance Period (including the Forbearance Period under the First Forbearance
Agreement, the Second Forbearance Agreement, and the Third Forbearance Agreement), the entire unpaid principal balance owed on
the Revolving Note shall accrue interest at the sum of the Stated Rate, plus the Applicable Margin as set forth in the Revolving
Note; provided, however, that Lender reserves the right to impose the default rate of Stated Rate, plus six percent (6.0%) (the
“Default Rate”), as set forth in the Revolving Note, at any time after the termination of the Forbearance Period,
in the event that an Event of Default remains uncured and outstanding.  Further, in lieu of the additional interest accrued
and unpaid under this Agreement, Borrower shall pay the Forbearance/Waiver Fee set forth below.

 

(b)           Lender
has suspended the interest payments due on May 1, 2009, and June 1, 2009, and that accrued interest shall be due and payable on
the Deferral Date.  Accrued, unpaid interest on the Revolving Note shall be due and payable monthly, commencing on July
1, 2009, and continuing on the first (1st) day of each month thereafter during the
Forbearance Period. Interest payments shall be made from the funds available from the Lockbox Account, or from additional cash
equity contributions to Borrower deposited into the Lockbox Account, or from a combination of both. If any cash equity contribution
to Borrower is deposited into the Lockbox Account for the purpose of paying the monthly interest payments due under this Forbearance
Agreement, then Borrower shall be entitled to the credit against the Forbearance/Waiver Fee as set forth in Section 21(c)
below.

 

18.           Forbearance
Fee. (a) In consideration of the forbearance by Lender under this Agreement and the waiver of the Existing Defaults and for
other valuable consideration, the receipt and sufficiency of which are acknowledged, Borrower agrees to pay to Lender a Forbearance/Waiver
Fee calculated as follows, and due on or before the earlier of the following (the “Deferral Date”): (i) the
termination of the Forbearance Period, (ii) the cure of the Deficiency, or (iii) the refinance of the Revolving Note by another
lender:

 

(i)           Forbearance/Waiver
Fee under the First Forbearance Agreement in the amount of $553,666.67; plus

 

(ii)           Forbearance/Waiver
Fee under the Second Forbearance Agreement in the amount of $723,666.33; plus

 

(iii)           Forbearance/Waiver
Fee under the Third Forbearance Agreement in the amount of $1,189,259.24; plus

 

    	 

    	 

    

INFINITY ENERGY RESOURCES, INC.

December 4, 2009

Page 9 of 18

 

(iv)           A
Forbearance/Waiver Fee shall be due for each month from June 1, 2009 through the end of the Forbearance Period, inclusive, calculated
as one percent (1.0%) of the average daily outstanding principal balance on the Revolving Note for the month as of the last day
of each of those months (or as of the Deferral Date if such occurs during any month).

 

Except as set forth below, the
Forbearance/Waiver Fees and all other fees are non-refundable and earned by Lender upon execution of this Agreement.

 

(b)           If
on or before January 31, 2010, the Revolving Note and all other fees and obligations under this Agreement and the Loan Agreement
are paid in full, and all outstanding Letters of Credit, including the Nicaragua Letters of Credit, are terminated or cash secured
to Lender’s satisfaction, then Lender hereby agrees to waive one-half of the Forbearance/Waiver Fees accrued, but unpaid,
under Subsection (a) above.

 

(c)           If
any cash equity contribution to Borrower is deposited into the Lockbox Account for the purpose of paying the monthly interest payments
due under this Forbearance Agreement, then Borrower shall receive a credit to the Forbearance/Waiver Fees accrued, but unpaid,
under Subsection (a) above, equal to three hundred percent (300%) of the amount of the equity contribution used for the purpose
of paying the monthly interest payments due under this Forbearance Agreement, up to the full amount of the Forbearance/Waiver Fees
accrued, but unpaid, under Subsection (a) above.

 

(d)           Borrower
may make a written proposal to Lender regarding the payment of the Forbearance/Waiver Fees due under this Section by (i) delivery
of stock in Borrower to Lender or its nominee, or (ii) assignment of an overriding royalty interest in the Nicaragua Concessions
to Lender or its nominee. The proposal will be subject to Lender’s credit approval and must be upon terms and pricing acceptable
to Lender, in its sole discretion.  Lender does not yet have credit approval for payment of the Forbearance/Waiver Fees
by delivery of stock or assignment of royalty.

 

19.           Other
Fees. Borrower acknowledges the following additional fee owed to Lender that is due on or before the Deferral Date: a hedge
termination fee in the amount of $56,085.00, due pursuant to the Second Forbearance Agreement in connection with the termination
of Hedge Transactions.

 

20.           Conditions
Precedent. The obligation of Lender to enter into this Agreement and to forbear with respect to the Existing Defaults is subject
to Borrower’s satisfaction, in Lender’s sole discretion, of the following conditions precedent:

 

(a)           Except
for the Deficiency and the Existing Defaults, all representations and warranties set forth in Section 6 of the Loan Agreement must
be true as of the date of this Agreement, except for Subsection (d) of Section 6, which is qualified by the lawsuits set
forth in Schedule A attached, and Subsection (i) of Section 6, which is no longer applicable.

 

(b)           the
negotiation, execution, and delivery of Loan Documents in Proper Form, including, but not limited to, the following:

 

    	 

    	 

    

INFINITY ENERGY RESOURCES, INC.

December 4, 2009

Page 10 of 18

 

(i)           this
Agreement;

 

(ii)           Second
Amendment to Revolving Note;

 

(iii)           Restated
Security Agreement signed by Borrower and acknowledged by the Overseas Private Investment Corporation; and

 

(iv)           Borrower
and Guarantors Resolutions.

 

(c)           other
than as contemplated in this Agreement, there shall not have occurred a material adverse change in the business, assets, liabilities
(actual and contingent), operations, or financial condition of Borrower or in the facts and information regarding such entities
as represented to date.

 

(d)           Lender’s
receipt and satisfactory review of a 180-day operating/cash flow forecast for Borrower and Guarantors.

 

(e)           Lender’s
receipt and satisfactory review of a proposed budget from Borrower of recurring operating expenses, non-recurring operating expenses,
general and administrative expenses, and any capital expenditures for the oil and gas properties expected to be paid during the
Forbearance Period and supporting documentation for those expenses and expenditures.

 

(f)           Lender’s
receipt of satisfactory written evidence that Borrower was provided with an additional commitment on the Subordinate Loan in May,
2009, in an amount not less than $250,000.00, for the payment of trade payables with respect to the Rockies Properties and the
Texas Properties, and that as of the date of this Agreement, Borrower has funded not less than $100,000.00 from this additional
commitment and used the funds for payment of trade payables with respect to the Rockies Properties and the Texas Properties.

 

21.           Default
and Remedies. (a) As used in this Agreement, “Default” means (i) any breach by Borrower or Guarantors of
their obligations under this Agreement, (ii) any misrepresentation by Borrower or Guarantors of the representations or warranties
set forth in this Agreement, or (iii) any further Event of Default under the Loan Agreement, other than the existing Borrowing
Base deficiency or any additional defaults under the provisions covered by the Existing Defaults, excluding the Excluded
Defaults.

 

(b)           Upon
a Default, Lender may terminate the Forbearance Period and the maturity of the Revolving Note shall automatically be accelerated
as of the date of the termination of the Forbearance Period, without presentment, demand for payment, notice of intent to accelerate,
other notice of acceleration or dishonor, protest, or notice of protest of any kind, all of which are expressly waived by Borrower.  Thereafter
Lender may exercise any and all rights and remedies available to it, including, without limitation, those under the Loan Agreement,
the Revolving Note, the Security Documents, the Guaranties, the Loan Documents, this Agreement, and any other instrument or agreement
relating hereto, or any one or more of them. All rights and remedies of Lender shall be cumulative and concurrent and, after a
Default, may be pursued separately, successively, or together as often as occasion therefore shall arise, at the sole discretion
of the Lender.

 

    	 

    	 

    

INFINITY ENERGY RESOURCES, INC.

December 4, 2009

Page 11 of 18

 

22.           Other
Representations. Borrower and Guarantors hereby represent to Lender as follows:

 

(a)           The
execution, delivery, and performance of this Agreement by Borrower and Guarantors have been duly authorized by Borrower’s
and Guarantors’ respective boards of directors and this Agreement constitutes their legal, valid, and binding obligations,
enforceable in accordance with their respective terms; and

 

(b)           Except
as set forth on Schedule A hereto, there are no actions, suits, or proceedings pending or threatened against or affecting
Borrower, Guarantors, or the Properties, before any court or governmental department, commission, or board, which, if determined
adversely, would have a material adverse effect on any of the Properties or the operations or financial condition of any of Borrower
or Guarantors.

 

(c)           Borrower
has fully performed all of its obligations under the Farmout and Acquisition Agreement (the “Farmout Agreement”)
dated December 26, 2007, between IOGTx, as farmor, and Forest, as farmee; and the Farmout Agreement has terminated under its terms.

 

23.           Confirmations.
(a) Borrower and Guarantors agree that the following amounts are due and outstanding with respect to the Revolving Note as of December
3, 2009:

 

	Principal	 	 	$	10,010,493.64	 
	Interest	 	 	$	420,703.59	 
	 	Total	 	$	10,431,197.23	 

 

Borrower and Guarantors agree
that there is no set off or defense to payment of the Revolving Note.

 

(b)           As
security for the Notes, Borrower and Guarantors previously executed the Security Documents, including the Security Agreement.  Borrower
and Guarantors ratify and confirm the Security Documents, acknowledge that they are valid, subsisting, and binding, and agree that
the Security Documents secure payment of the Notes (including the Revolving Note) and the Loans (including the Revolving Loan).

 

(c)           In
connection with the Revolving Note, Guarantors executed the Guaranties. Guarantors ratify and confirm the Guaranties, acknowledge
that the Guaranties are valid, subsisting, and binding upon Guarantors, and agree that the Guaranties guarantee payment of the
Revolving Note. Guarantors agree that there is no defense to payment under the Guaranties.

 

(d)           Borrower
and Guarantors hereby represent to Lender that all representations and warranties set forth in Section 6 of the Loan Agreement
are true and correct as of the date of execution of this Agreement, except for Subsection (d) of Section 6, which is qualified
by the lawsuits set forth in Schedule A attached, and Subsection (i) of Section 6, which is no longer applicable; and that,
except for the Existing Defaults, Borrower and Guarantors are in compliance as of the date of execution of this Agreement with
all covenants set forth in Section 7 of the Loan Agreement, all financial covenants set forth in Section 8 of the Loan Agreement,
and all reporting requirements set forth in Section 9 of the Loan Agreement.

 

    	 

    	 

    

INFINITY ENERGY RESOURCES, INC.

December 4, 2009

Page 12 of 18

 

24.           Validity
and Defaults. The Loan Agreement remains in full force and effect. Borrower and Guarantors acknowledge that the Loan Agreement,
the Revolving Note, the Security Documents, the Guaranties, and the other Loan Documents are valid, subsisting, and binding upon
Borrower and Guarantors; no uncured breaches or defaults exist under the Loan Agreement, except for the Existing Defaults; and
except as contemplated by this Agreement, no other event has occurred or circumstance exists which, with the passing of time or
giving of notice, will constitute a default or breach under the Loan Agreement.  Borrower and Guarantors ratify the Loan
Agreement.

 

25.           Release.
For valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Borrower and Guarantors hereby RELEASE
AND FOREVER DISCHARGE Lender and its officers, directors, employees, agents, representatives, attorneys, subsidiaries, and affiliates
(collectively “Released Parties”), from any and all claims, counterclaims, demands, damages, debts, suits, obligations,
liabilities, offsets, rights, actions, and causes of action of any nature whatsoever (collectively “Claims”),
caused by, because of, as a result of, arising from, or related in any way to the Loan Agreement, the Revolving Note, the Security
Documents, the Loan Documents, this Agreement, any other transaction between Lender and Borrower, or any act, omission, communication,
transaction, occurrence, representation, promise, breach, violation of any statute or law, or any other matter whatsoever or thing
done, omitted, or suffered by any of the Released Parties in connection with the Loan Agreement, the Revolving Note, the Security
Documents, the Loan Documents, this Agreement, any other transaction between Lender and Borrower, whether those Claims are now
or hereafter accrued or possessed, whether known or unknown, direct or indirect, liquidated or unliquidated, absolute or contingent,
foreseen or unforeseen, at law or in equity, and now or hereafter asserted, including, without limitation, claims for contribution
or indemnity, claims of control, duress, mistake, tortuous interference, usury, negligence, or violations of the Texas Consumer
Protection and Deceptive Trade Practices Act; provided, however, that any acts of willful misconduct or fraud by the Releases Parties
shall not be released or discharged.

 

26.           Advice
from Counsel. Borrower and Guarantors understand that this Agreement is legally binding and represent to Lender that each has
obtained independent legal counsel from the attorney of their choice regarding the meaning and legal significance of this Agreement.  The
parties agree that no provision of this Agreement shall be interpreted or construed against a party because that party prepared
the provision, it being agreed that all parties have participated in the drafting of this Agreement and have had legal counsel
of their choice.

 

27.           Governing
Law and Venue. THIS AGREEMENT, THE LOAN AGREEMENT, THE REVOLVING NOTE, AND ALL LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND SHALL BE PERFORMED IN DALLAS COUNTY, TEXAS.  BORROWER, GUARANTORS,
AND LENDER IRREVOCABLY AGREE THAT VENUE FOR ANY ACTION OR CLAIM RELATED TO THIS AGREEMENT, THE LOAN AGREEMENT, THE REVOLVING NOTE,
OR ANY LOAN DOCUMENTS SHALL BE IN DALLAS COUNTY, TEXAS.

 

    	 

    	 

    

INFINITY ENERGY RESOURCES, INC.

December 4, 2009

Page 13 of 18

 

28.           Savings
Clause. Regardless of any provision contained in the Loan Agreement, the Revolving Note, the Security Documents, the other
Loan Documents, or this Agreement, it is the express intent of the parties that at no time shall Borrower or Guarantors pay interest
in excess of the maximum lawful rate (or any other interest amount which might in any way be deemed usurious), and Lender will
never be considered to have contracted for or to be entitled to charge, receive, collect, or apply as interest on the Revolving
Note, any amount in excess of the maximum lawful rate (or any other interest amount which might in any way be deemed usurious),
and, in the event that Lender ever receives, collects, or applies as interest any such excess, the amount which would be excessive
interest will be applied to the reduction of the principal balance of the Revolving Note, and, if the principal balance of the
Revolving Note is paid in full, any remaining excess shall forthwith be paid to Borrower.  In determining whether the
interest paid or payable exceeds the maximum lawful rate (or any other interest amount which might in any way be deemed usurious),
Borrower and Lender shall, to the maximum extent permitted under applicable law, spread the total amount of interest throughout
the entire contemplated term of the Revolving Note so that the interest rate is uniform throughout the term.

 

29.           Fax
Provision.  This Agreement and the related Loan Documents may be executed in counterparts, and Lender is authorized
to attach the signature pages from the counterparts to copies for Lender and Borrower.  At Lender’s option, this
Agreement and the related Loan Documents may also be executed by Borrower and Guarantors in remote locations with signature pages
faxed to Lender.  Borrower and Guarantors agree that the faxed signatures are binding upon Borrower and Guarantors, and
Borrower and Guarantors further agree to promptly deliver the original signatures for this Agreement and the related Loan Documents
by overnight mail or expedited delivery.  It will be an Event of Default if Borrower or Guarantors fail to promptly deliver
all required original signatures.

 

30.           Captions.
Captions are for convenience only and should not be used in interpreting this Agreement.

 

31.           Final
Agreement. (a) In connection with the Loans, Borrower, Guarantors, and Lender have executed and delivered this Agreement, the
Loan Agreement, and the Loan Documents (collectively the “Written Loan Agreement”).

 

(b)           It
is the intention of Borrower, Guarantors, and Lender that this paragraph be incorporated by reference into each of the Loan Documents.  Borrower,
Guarantors, and Lender each warrant and represent that their entire agreement with respect to the Loans is contained within the
Written Loan Agreement, and that no agreements or promises have been made by, or exist by or among, Borrower, Guarantors, and Lender
that are not reflected in the Written Loan Agreement.

 

(c)           THE
LOAN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS,
OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN AGREEMENTS BETWEEN THE PARTIES.

 

    	 

    	 

    

INFINITY ENERGY RESOURCES, INC.

December 4, 2009

Page 14 of 18

 

If the foregoing correctly
sets forth your understanding of our agreement, please sign and return one copy of this letter.  Notwithstanding any
provision to the contrary, this Agreement shall only be effective if Borrower and Guarantors sign and return to Lender by 3 p.m.,
Houston, Texas time, on Wednesday, December 9, 2009.

 

 

	 	
        Yours very truly,

        AMEGY BANK NATIONAL ASSOCIATION
	 
	 	 	 	 
	 	By:	/s/ A. Stephen Kennedy,	 
	 	 	
        A. Stephen Kennedy,

        Senior Vice President/

        Manager - Energy Group
	 
	 	 	 	 
	 	 	 	 

 

    	 

    	 

    

INFINITY ENERGY RESOURCES, INC.

December 4, 2009

Page 15 of 18

 

 

Accepted and agreed to

this  4 day of December,
2009:

 

	
        BORROWER:

        INFINITY ENERGY RESOURCES, INC.
	 	 	 	 
	 	 	 	 	 
	By:	/s/ Stanton E. Ross	 	 	 	 
	 	
        Stanton E. Ross, President

        and Chief Executive Officer
	 	 	 	 
	 	 	 	 	 	 

 

	
        GUARANTORS:

        INFINITY OIL AND GAS OF TEXAS, INC.
	 	 	 	 
	 	 	 	 	 
	By:	/s/ Stanton E. Ross	 	 	 	 
	 	
        Stanton E. Ross, President
	 	 	 	 
	 	 	 	 	 	 

 

	INFINITY OIL & GAS OF WYOMING, INC.	 	 	 	 
	 	 	 	 	 
	By:	/s/ Stanton E. Ross	 	 	 	 
	 	
        Stanton E. Ross, President
	 	 	 	 
	 

 

Exhibits and Schedules:

Schedule A - Lawsuits

Schedule B - Overriding Royalty
conveyances

 

 

    	 

    	 

    

SCHEDULE A

 

Lawsuits

 

Southwest Aviation Specialist,
LLC filed an action in the District Court in and for the County of Tulsa, State of Oklahoma, number CS200708783, on October 31,
2007, against Infinity Oil and Stan Ross.

 

    	 

    	 

    

SCHEDULE B

 

Overriding Royalty conveyances

 

1.Revenue Sharing Agreement,
dated March 23, 2009, between Infinity Energy Resources, Inc. and Off-Shore Finance, LLC, with respect to 1% of the revenue derived
from Infinity Energy Resources, Inc.'s share of the hydrocarbons produced at the wellhead from the Concessions (as therein defined).

2.Letter Agreement, dated September
8, 2009, between Thompson & Knight Global Energy Services and Infinity Energy Resources, Inc., with respect to a 1% overriding
royalty interest on all oil and gas produced.

3.Letter Agreement, dated September
16, 2009, between Infinity Energy Resources, Inc. and Jeff Roberts, with respect to a 1% overriding royalty interest on all oil
and gas produced.

4.Revenue Sharing Agreement,
dated June 6, 2009, among Infinity Energy Resources, Inc. and Stanton E. Ross, Leroy C. Richie and Daniel E. Hutchins, as tenants
in common of 1% of the revenue derived from Infinity Energy Resources, Inc.'s share of the hydrocarbons produced at the wellhead
from the Concessions (as therein defined).

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00202-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00202-of-00352.parquet"}]]