(All Personal Property)
THIS SECURITY AGREEMENT is made and entered into as of July 3, 2008 (this “ Agreement ”) among ENERJEX
RESOURCES, INC. , a Nevada corporation, ENERJEX KANSAS, INC . ( f/k/a Midwest Energy, Inc.), a Nevada corporation and
DD ENERGY, INC., a Nevada corporation (collectively, “ Debtors ”) in favor of TEXAS CAPITAL BANK, N.A , a national
banking association, as Administrative Agent for the Banks (“ Secured Party ”).
1. On the same date as this Agreement, Debtors, as Borrowers, and Secured Party and the Banks executed that
certain Credit Agreement (as amended, restated, supplemented, or otherwise modified from time to time, the “ Credit Agreement
”) pursuant to which the Banks agreed to make loans to Debtors from time to time on the conditions set out in the Credit
2. Borrowers, Secured Party and an Approved Counterparty (as defined in the Credit Agreement) entered into, or
may enter into from time to time, an Intercreditor Agreement (as defined in the Credit Agreement).
3. Lender has conditioned its obligations under the Credit Agreement upon, among other things, the execution
and delivery by Debtors of this Agreement, and Debtors have agreed to enter into this Agreement.
In order to comply with the terms and conditions of the Credit Agreement and for and in consideration of the premises
and the agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Debtors hereby agree with Secured Party as follows:
Section 1.1 Terms Defined Above . As used in this Agreement, the terms “ Debtors ,” “ Secured Party ,” and “
Credit Agreement ” shall have the meanings indicated above.
Section 1.2 Definitions Contained in the Credit Agreement . Unless otherwise defined herein or the context
otherwise requires, all capitalized terms used but not defined in this Agreement have the