Item 1.01 Entry into a Material Definitive Agreement.

On September 12, 2012, Cubic Energy, Inc. (the "Company") issued a subordinated promissory note payable to Calvin A. Wallen, III, the Company's Chairman of the Board and Chief Executive Officer, in the principal amount of $2,000,000, plus accrued and unpaid interest, in replacement of the prior subordinated promissory note dated December 18, 2009. The terms of the new note are consistent with the prior note, except that (a) interest will accrue rather than being payable on a monthly basis, and (b) the outstanding principal balance of the note, together with accrued and unpaid interest, is due and payable not later than January 1, 2013. Consistent with the prior note, the new note bears interest at the prime rate plus one percent (1%) and is subordinated to the indebtedness under the Company's Credit Facility, as amended, with Wells Fargo Energy Capital, Inc.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

10.1 Subordinated Promissory Note, dated September 12, 2012, by and between Cubic Energy, Inc. and Calvin A. Wallen, III