Document:

Alon Supply 2013 S&O Amendment

Execution Version

AMENDMENT to THE SUPPLY AND OFFTAKE AGREEMENT 
THIS AMENDMENT to THE SUPPLY AND OFFTAKE AGREEMENT (this “Amendment”), dated as of February 1, 2013, is made between J. Aron & Company, a general partnership organized under the laws of New York (“Aron”) located at 200 West Street, New York, New York 10282-2198, and Alon Supply Inc., a corporation organized under the laws of Delaware (the “Company”), located at 12700 Park Central Dr., Suite 1600, Dallas, Texas 75251 (each referred to individually as a “Party” or collectively as the “Parties”).
RECITALS
Aron and the Company are parties to that certain Supply and Offtake Agreement dated as of May 30, 2012 (the “S&O Agreement”) pursuant to which Aron has agreed to procure crude oil and other petroleum feedstocks for the Company for use at the Refinery and purchase all refined products produced by the Refinery (other than certain excluded products);  and
Aron and the Company wish to amend certain terms and conditions of the S&O  Agreement and accordingly, agree as follows:
Article I.Definitions; Interpretation
Section 1.01    Terms Defined in S&O Agreement.  
(a)    Defined Terms.  All capitalized terms used in this Amendment (including in the Recitals hereto) and not otherwise defined herein shall have the meanings assigned to them in the S&O Agreement.
(b)    Interpretation.  The rules of construction set forth in Section 1.2 of the S&O Agreement shall be applicable to this Amendment and are incorporated herein by this reference.
Article II.Amendments to the S&O Agreement
Section 2.01    Amendments.  Upon the effectiveness of this Amendment, the S&O Agreement shall be amended as follows:
(a)    By deleting the text of the definition of “Monthly Crude Price” from Section 1.1 of the S&O Agreement and replacing it with the following:
“Monthly Crude Price” means, with respect to the Net Crude Sales Volume for any month, the volume weighted average price per barrel specified in the related Procurement Contracts under which Aron acquired or sold such barrels in such Month.
(b)    By deleting the text of the definition of “Monthly Crude Receipts” from Section 1.1 of the S&O Agreement and replacing it with the following:

“Monthly Crude Receipts” has the meaning specified in Schedule C.

(c)    By deleting the text of the definition of “Procurement Contract” from Section 1.1 of the S&O Agreement and replacing it with the following:
“Procurement Contract” means any procurement contract entered into by Aron for the purchase or sale of Crude Oil to be processed or sold at the Refinery, which may be either a contract with any seller or purchaser of Crude Oil (other than the Company or an Affiliate of the Company) or a contract with the Company, or such other contract to the extent the Parties deem such contract to be a Procurement Contract for purposes hereof.
 
(d)    By deleting the text of the definition of “Product Storage Tanks” from Section 1.1 of the S&O Agreement and replacing it with the following:
“Product Storage Tanks” means any of the tanks at the Refinery that store Products and are listed on Schedule E as such, including those tanks made available to PPC pursuant to the Terminal Lease entered into on June 1, 2010 between Equilon Enterprises LLC and Alon Bakersfield Property, Inc., and any other product storage tanks owned by the Company, PPC or any of their Affiliates and listed on Schedule E as such.
(e)    By deleting the text of the definition of “Transported Quantities” from Section 1.1 of the S&O Agreement and replacing it with the following:
“Transported Quantities” means the aggregate volume of Crude Oil transported via truck or rail to and from those Crude Tanks located at the portions of the Refinery in Paramount, California and Long Beach, California, as per the “Available Volume” tab in the “PPC Daily Inventory Report” specified in Schedule H, unless Aron determines, based on its reasonable judgment (which may include the judgment of Supplier’s Inspector), that the volumes reflected in such tab are not sufficiently reliable or accurate, in which case the parties shall agree to and implement an alternative method satisfactory to Aron for determining and reporting the foregoing volumes.
(f)    By inserting as new definitions in Section 1.1, in the appropriate alphabetical order, the following:
“Estimated Cumulative Net Crude Sales” for any day shall be the sum of the Estimated Daily Net Crude Sales for the relevant “True Up Date” as per Schedule G; provided that (i) for any Split True Up Invoice, the Estimated Cumulative Net Crude Sales will be equal to the sum of the Estimated Daily Net Crude Sales for both relevant True Up Dates, (ii) for any invoice that corresponds to a new “True Up Date” and does not immediately follow a Split True Up Invoice, the Estimated Cumulative Net Crude Sales will equal the Estimated Daily Net Crude Sales, (iii) For any invoice immediately following a Split True Up Invoice, the Estimated Cumulative Net Crude Sales will equal the “True Up Factor” for the applicable “True 

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Up Date” from the Split True Up Invoice  multiplied by the Estimated Daily Net Crude Sales from the Split True Up Invoice plus the current Estimated Daily Net Crude Sales.

“Estimated Daily Crude Refund Value” for any day shall be the Estimated Cumulative Net Crude Sales for the previous “Invoice Date” as per Schedule G, multiplied by the Daily Price for the previous “Invoice Date”; provided that (i) for any Split True Up Invoice, the Estimated Daily Crude Refund Value will be equal to the foregoing amount, (ii) for any invoice that corresponds to a new “True Up Date” and does not immediately follow a Split True Up Invoice, the Estimated Daily Crude Refund Value will be zero and (iii) for any invoice immediately following a Split True Up Invoice, the Estimated Daily Crude Refund Value will equal the “True Up Factor” for the applicable “True Up Date” multiplied by the Estimated Daily Net Crude Sales from the Split True Up Invoice multiplied by the Daily Price from the Split True Up Invoice.

“Split True Up Invoice” means any invoice that as per Schedule G has two “True Up Dates”, in which case the “True Up Factor” used to allocate volumes and settlement values between the two True up Dates shall not be equal to 1.

(g)    By amending and restating Sections 3.1 and 3.2 of the S&O Agreement in their entirety to read as follows:
3.1  Term.  This Agreement shall become effective on the Effective Date and, subject to Section 3.2, shall continue for a period starting at 00:00:01 a.m., PST on the Commencement Date and ending at 11:59:59 p.m., PST on May 31, 2019 (the “Term”; the last day of such Term being herein referred to as the “Expiration Date”, except as provided in Section 3.2 below).

3.2  Changing the Term. Aron may elect to terminate this Agreement early effective on May 31, 2016, May 31, 2017 or May 31, 2018 and the Company may elect to terminate this Agreement early effective on May 31, 2018; provided that no such election shall be effective unless the Party making such election (i) gives the other Party at least six (6) months prior notice of any such election pursuant to Article 26, (ii) concurrently exercises its right (or in the case of the Company, causes ARKS to exercise its rights) to terminate the ARKS Supply and Offtake Agreement and (iii) concurrently exercises its right (or in the case of the Company, causes Alon USA, LP to exercise its rights) to terminate the Big Spring Supply and Offtake Agreement effective as of the same early termination date elected for this Agreement.  If any early termination is properly elected pursuant to the preceding sentence, the effective date of such termination shall be the “Early Termination Date.”

(h)    By deleting the text of Section 6.4 and replacing it with the following:
6.4  Crude Purchase Fee.  As used herein:

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(a) For any month, the “Crude Purchase Fee” shall equal the sum of  (A) the product of (1) Level One Fee per barrel and (2) the Reduced Fee Barrels for such month, plus (B) the product of (1) Level Two Fee per barrel and (2) the greater of (x) zero and (y) the Actual Monthly Crude Run for such month minus the Reduced Fee Barrels for such month, minus (C) if a Monthly Procurement Shortfall exists for such month, the product of the Shortfall Procurement Barrels for such month and Adjustment Fee per Barrel.
(b) “Reduced Fee Barrels” means, for any month, whichever of the following is the smallest quantity: (i) the Actual Monthly Crude Run for such month, (ii) the Designated Company-Sourced Barrels for such Month and (iii) seventeen thousand (17,000) Barrels; provided that in no event shall the foregoing be less than zero.
(c) “Actual Monthly Crude Run” means, for any month, the Net Crude Sales Volume for such month plus the aggregate quantity of those Other Barrels that are actually delivered and received at the Crude Storage Tanks during such month.
(d) A “Monthly Procurement Shortfall” shall exist, for any month, if the Procurement Contracts providing for delivery during such month do not, in the aggregate, result in deliveries that equal or exceed an average of fifty thousand (50,000) Barrels per day.
(e) If a Monthly Procurement Shortfall exists for any month, then the “Shortfall Procurement Barrels” for such month shall equal the lesser of (i) fifty thousand (50,000) Barrels minus the average daily quantity of Barrels that are contemplated to be delivered under Procurement Contracts during such month multiplied by the number of days in such month and (ii) the average daily quantity of Barrels that were delivered under the Rejected Procurement Contracts for such month multiplied by the number of days in such month, minus the Other Rejected Barrels for such month.
(f) “Rejected Procurement Contract” means, for any month, a contract that was first proposed as a Procurement Contract by the Company pursuant to Section 5.3(b) that contemplated deliveries during such month, was proposed to Aron no later than the last Business Day prior to the scheduling day for such month which Aron rejected and was entered into by the Company; provided that such contract shall only constitute a Rejected Procurement Contract if the economic and other material terms thereof are no more favorable to the Company than the economic and other materials terms thereof in the proposed Procurement Contract offered to Aron and if Aron had a period of at least two weeks following the initial date on which such contract was proposed in which to determine whether or not to enter into or reject such contract.
(g) Those Designated Company-Sourced Barrels for any month that are not delivered under Rejected Procurement Contracts constitute the “Primary Company 

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Barrels” for such month. If the Reduced Fee Barrels for such month exceed the Primary Company Barrels for such month, then such excess shall be the “Other Rejected Barrels” for such month.
(h) For any month, the “Counterparty Crude Sales Fee” shall equal the product of (A) Monthly Crude Procurement Sale Volume and (B) the counterparty level fee as determined on a monthly basis by Aron for each respective party.
(i) The Crude Purchase Fee calculated under this Section 6.4 shall be incorporated under Schedule C as an amount due to Aron and, to the extent necessary, Aron may convert such amount to a negative number for purposes of achieving that result in making its calculations under Schedule C.
(i)    By deleting the text of Section 9.3(a) and replacing it with the following:
(a) For any month, the “Net Crude Sales Volume” shall equal the greater of (A) (1) the sum of (a) the Actual Month End Crude Volume for the prior month minus (b) the Monthly Crude Procurement Purchase Volume, as defined in Schedule C, for such month, minus (2) the Actual Month End Crude Volume for such month and (B) zero.
(j)    By deleting the text of Section 10.1(a) preceding and replacing it with the following:
(a) For each day, Aron will calculate a provisional payment (each an “Interim Payment”) by applying the applicable Daily Prices to the Estimated Cumulative Net Crude Sales and Estimated Daily Net Product Sales for that day, less the Estimated Daily Crude Refund Value  plus an estimate of Ancillary Costs for such day to the extent not directly invoiced to the Company, in the manner illustrated on Schedule G and using Best Available Inventory Data; provided that if inventory data have not been reported on any day within a two (2) Business Day period, Aron will use the inventory data for the day occurring during the thirty (30) day period preceding such calendar day that results in the largest Estimated Daily Net Crude Sales or the smallest Estimated Daily Net Product Sales (as the case may be); provided that, if Aron determines that any inventory data it has used in such determination was inaccurate, then Aron may, at its option, adjust future Interim Payments to take account of any corrected inventory data.  Schedule U hereto provides, for illustrative purposes only, hypothetical examples of how Aron shall make the foregoing calculation.

The "Interim Payment" shall be an amount equal to the value of the Estimated Daily Net Product Sales based on the applicable daily prices minus the sum of the value of the Estimated Cumulative Net Crude Sales based on the applicable Daily Prices, less the Estimated Daily Crude Refund Value, plus the estimated Ancillary Costs for such day. If this is a negative amount, the absolute value will represent an amount 

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payable to Aron and if this is a positive amount, it will represent an amount payable to the Company.

(k)    By deleting the text of Section 10.1(c)(i) and replacing it with the following: 
(i) “Estimated Daily Net Crude Sales” for any day shall be the estimate for that day of the Crude Oil volume that equals (A) the total of (v) the aggregate volume of Crude Oil measured at the meter before processing unit 1 at the Refinery, at the end of such day, plus (w) the aggregate volume of Crude Oil measured at the meter before processing unit 2 at the Refinery, at the end of such day, minus (x) the Adjustment Amount, provided that the Adjustment Amount shall be the most recent amount available, minus (y) the aggregate volume of the Transported Quantities to the Refinery at the end of such day by the Company, plus (z) the aggregate volume of the Transported Quantities from the Refinery at the end of such day by the Company multiplied by (B) the relevant daily “Payment Factor” as indicated on Schedule G;
(l)    By deleting the text of Section 10.1(c)(ii) and replacing it with the following:
(ii) “Estimated Daily Net Product Sales” for any day and Product shall be the estimate for that day of the Product volume that equals (A) the total of (x) the aggregate volume of such Product held in the Product Storage Facilities at the end of such day, plus (y) the Daily Product Sales of such Product for such day, minus (z) the aggregate volume of such Product held in the Product Storage Facilities at the beginning of such day, multiplied by (B) the relevant daily “Payment Factor” as indicated on Schedule G; and

(m)    By replacing, in their entirety, Schedules B-1, B-2, C, D-1, D-2, E, G, H, P and V attached to the S&O Agreement with the Schedules B-1, B-2, C, D-1, D-2, E, G, H, P and V attached hereto;
(n)    By inserting as a Schedule to S&O Agreement, between Schedules T and V, a new Schedule U in the form of Schedule U attached hereto.
Section 2.02    References Within S&O Agreement.  Each reference in the S&O Agreement to “this Agreement” and the words “hereof,” “hereto,” “herein,” “hereunder,” or words of like import, shall mean and be a reference to the S&O Agreement as amended by this Amendment.
Article III.Representations and Warranties
To induce the other Party to enter into this Amendment, each Party hereby represents and warrants that (i) it has the corporate, governmental or other legal capacity, authority and power to execute this Amendment, to deliver this Amendment and to perform its obligations under the S&O Agreement, as amended hereby, and has taken all necessary action to authorize the foregoing; (ii) 

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the execution, delivery and performance of this Amendment does not violate or conflict with any law applicable to it, any provision of its constitutional documents, any order or judgment of any court or Governmental Authority applicable to it or any of its assets or subject; (iii) all governmental and other consents required to have been obtained by it with respect to this Amendment have been obtained and are in full force and effect; (iv) its obligations under the S&O Agreement, as amended hereby, constitute its legal, valid and binding obligations, enforceable in accordance with its terms (subject to applicable bankruptcy, reorganization, insolvency, moratorium or similar laws affecting creditors’ rights generally and subject, as to enforceability, to equitable principles of general application regardless of whether enforcement is sought in a proceeding in equity or at law) and (v) no Event of Default with respect to it has occurred and is continuing.
Article IV.Miscellaneous
Section 4.01    Agreement Otherwise Not Affected.  Except for the amendments pursuant hereto, the S&O Agreement remains unchanged.  As amended pursuant hereto, the S&O Agreement remains in full force and effect and are hereby ratified and confirmed in all respects.  The execution and delivery of, or acceptance of, this Amendment and any other documents and instruments in connection herewith by either Party shall not be deemed to create a course of dealing or otherwise create any express or implied duty by it to provide any other or further amendments, consents or waivers in the future.
Section 4.02    No Reliance.  Each Party hereby acknowledges and confirms that it is executing this Amendment on the basis of its own investigation and for its own reasons without reliance upon any agreement, representation, understanding or communication by or on behalf of any other Person.
Section 4.03    Costs and Expenses.  Each Party shall be responsible for any costs and expenses incurred by such Party in connection with the negotiation, preparation, execution and delivery of this Amendment and any other documents to be delivered in connection herewith.
Section 4.04    Binding Effect.  This Amendment shall be binding upon, inure to the benefit of and be enforceable by the Company, Aron and their respective successors and assigns.
Section 4.05    Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, CONSTRUED AND ENFORCED UNDER THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ITS CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER STATE.
Section 4.06    Amendments.  This Amendment may not be modified, amended or otherwise altered except by written instrument executed by the Parties’ duly authorized representatives.
Section 4.07    Effectiveness; Counterparts.  This Amendment shall be binding on the Parties as of the date on which it has been fully executed by the Parties. This Amendment may be executed in any number of counterparts and by different Parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement.

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Section 4.08    Interpretation.  This Amendment is the result of negotiations between and have been reviewed by counsel to each of the Parties, and is the product of all Parties hereto.  Accordingly, this Amendment shall not be construed against either Party merely because of such Party’s involvement in the preparation hereof.

[Remainder of Page Intentionally Left Blank]

IN WITNESS WHEREOF, the Parties hereto have duly executed this Amendment to the S&O Agreement as of the date first above written.
J. ARON & COMPANY

By: /s/ Simon Collier 
Name: Simon Collier 
Title:

ALON SUPPLY, INC.

By: /s/ Shai Even 
Name: Shai Even     
Title: Senior Vice President and CFO

8CPR 3.31.2013 EX 10.1

ELEVENTH AMENDMENT TO EIGHTH RESTATED CREDIT AGREEMENT
This Eleventh Amendment to Eighth Restated Credit Agreement (this “Eleventh Amendment”) is effective as of April 17, 2013 (the “Eleventh Amendment Effective Date”), by and among CHAPARRAL ENERGY, INC., a Delaware corporation (“Parent”), the Borrowers, JPMORGAN CHASE BANK, N.A., a national banking association, as Administrative Agent (“Administrative Agent”), and each of the Lenders party hereto.
W I T N E S S E T H:
WHEREAS, Parent, Borrowers, Administrative Agent, the other Agents party thereto and Lenders are parties to that certain Eighth Restated Credit Agreement dated as of April 12, 2010 (as amended, the “Credit Agreement”) (unless otherwise defined herein, all terms used herein with their initial letter capitalized shall have the meaning given such terms in the Credit Agreement, as amended by this Eleventh Amendment); and
WHEREAS, pursuant to the Credit Agreement, the Lenders have made revolving credit loans to Borrowers; and
WHEREAS, Parent and Borrowers have requested that the Credit Agreement be amended in certain respects including, without limitation, to (i) reaffirm the Borrowing Base in an amount equal to $500,000,000, (ii) amend the Swap Agreements covenant in Section 9.18 of the Credit Agreement, and (iii) make certain other amendments thereto as more specifically described herein; and
NOW THEREFORE, for and in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confessed, Parent, Borrowers, Administrative Agent and the Lenders hereby agree as follows:
Section 1.Amendments.  In reliance on the representations, warranties, covenants and agreements contained in this Eleventh Amendment, and subject to the satisfaction of the conditions precedent set forth in Section 3 hereof, the Credit Agreement is hereby amended effective as of the Eleventh Amendment Effective Date in the manner provided in this Section 1.
1.1    Amended and Restated Definitions.  The definitions of “Indebtedness”, “Loan Documents” and “Swap Agreement” contained in Section 1.02 of the Credit Agreement shall be amended and restated in their entirety to read in full as follows:
“Indebtedness” means any and all amounts owing or to be owing by any Credit Party:  (a) to any Agent, any Issuing Bank or any Lender under any Loan Document including, without limitation, all interest on any of the Loans (including any interest that accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of any Credit Party (or would accrue but for the operation of applicable bankruptcy or insolvency laws), whether or not such interest is allowed or allowable as a claim in any such case, proceeding or other action); (b) to any Secured Swap Provider under any Swap Agreement including any Swap Agreement in existence prior to the date hereof, but excluding any additional transactions or confirmations entered into (i) after such Secured Swap Provider ceases to be a Lender or an Affiliate of a Lender or (ii) after assignment by a Secured Swap Provider to another Secured Swap Provider that is not a Lender or an Affiliate of a Lender; (c) to any Banking Services Provider for Banking Services; and (d) all renewals, extensions and/or rearrangements of any of the above whether such Person (or in the case of its Affiliate, the Person affiliated therewith) remains a Lender hereunder; provided that solely with respect to any Credit Party that is not an “eligible contract participant” under the Commodity Exchange Act, Excluded Swap Obligations of such Credit Party, as applicable, shall in any event be excluded from “Indebtedness” owing by such Credit Party.
“Loan Documents” means this Agreement, the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment, the Seventh Amendment, the Eighth Amendment, the Ninth Amendment, the Tenth Amendment, the Eleventh Amendment, the Notes, the Letter of Credit Agreements, the Letters of Credit, the Certificate of Effectiveness, and the Security Instruments.
“Swap Agreements” means any agreement with respect to any swap, cap, floor, collar, forward, future or derivative transaction or option or similar agreement, whether exchange traded, “over-the-counter” or otherwise, involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions and any transaction confirmations entered into under any of the foregoing (including any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act), but excluding any agreements, contracts or transactions that are for the sale of Hydrocarbons in the ordinary course of business.
1.2    Additional Definitions.  Section 1.02 of the Credit Agreement shall be amended to add the following definitions to such Section in appropriate alphabetical order:
“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute or any regulations promulgated thereunder.
“Eleventh Amendment” means that certain Eleventh Amendment to Eighth Restated Credit Agreement dated effective as of April 17, 2013, among Parent, Borrowers, Administrative Agent and the Lenders party thereto.
“Excluded Swap Obligation” means, with respect to any Credit Party individually determined on a Credit Party by Credit Party basis, any Indebtedness in respect of any Swap Agreement if, and solely to the extent that, all or a portion of the guarantee of such Credit Party of, or the grant by such Credit Party of a security interest to secure, such Indebtedness in respect of any Swap Agreement (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Credit Party’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act at the time such guarantee or grant of a security interest becomes effective with respect to such related Indebtedness in respect of any Swap Agreement.
“Qualified ECP Guarantor” means, in respect of any Swap Agreement, each Credit Party that (a) has total assets exceeding $10,000,000 at the time any guaranty of obligations under such Swap Agreement becomes effective or (b) otherwise constitutes an “eligible contract participant” under the Commodity Exchange Act and can cause another Person to qualify as an “eligible contract participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.
1.3    Amendment to Swap Agreements Representation and Warranty.  Section 7.20 of the Credit Agreement shall be amended to add the following sentence at the end of such Section:
“Parent is a Qualified ECP Guarantor.”
1.4    New Commodity Exchange Act / Keepwell Covenant.  A new Section 8.18 shall be added to the Credit Agreement immediately following Section 8.17 of the Credit Agreement and shall read in full as follows:
Section 8.18    Commodity Exchange Act Keepwell Provisions.  Parent and each of the Borrowers hereby guarantees the payment and performance of all Indebtedness of each Credit Party (other than itself) and absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each Credit Party (other than itself) in order for such other Credit Party to honor its obligations under its respective Loan Documents to which it is a party including obligations with respect to Swap Agreements (provided, however, that Parent and each Borrower, as applicable, shall only be liable under this Section 8.18 for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this Section 8.18, or otherwise under this Agreement or any Loan Document, as it relates to such other Credit Parties, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations of Parent and each Borrower under this Section 8.18 shall remain in full force and effect until all Indebtedness is paid in full to the Lenders, the Administrative Agent and all other Secured Parties, and all of the Lenders’ Commitments are terminated. The Borrower intends that this Section 8.18 constitute, and this Section 8.18 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each other Credit Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.
1.5    New Non-Eligible Contract Participant Covenant.  A new Section 9.23 shall be added to the Credit Agreement immediately following Section 9.22 of the Credit Agreement and shall read in full as follows:
Section 9.23    Non-Eligible Contract Participant.  Parent and the Borrowers will not permit any Credit Party that does not constitute an “eligible contract participant” under the Commodity Exchange Act to own, at any time, any Oil and Gas Properties or any Equity Interests in any Restricted Subsidiaries.
1.6    Amendment to Swap Agreements Covenant.  Clause (a)(i) of Section 9.18 of the Credit Agreement shall be amended to replace the grid set forth therein in its entirety with following grid:
	
				
	Period 
(relative to execution date of relevant Swap Agreement)
	Percentage Limitation

	Oil
	Gas
	NGL

	Months 1-12
	100% TP
	100% TP
	70% PDP

	Months 13-24
	90% TP
	90% TP
	70% PDP

	Months 25-36
	65% TP
	65% TP
	0.0% TP

	Months 37-66
	100% PDP
	100% PDP
	0.0% TP

SECTION 2.    Borrowing Base Redetermination.  Pursuant to Section 2.07 of the Credit Agreement, and subject to the satisfaction of the conditions precedent set forth in Section 3 hereof, the Borrowing Base shall be reaffirmed at $500,000,000 effective as of the Eleventh Amendment Effective Date, and continuing until the next Scheduled Redetermination, Interim Redetermination or other redetermination of the Borrowing Base thereafter.  Borrower Representative (on behalf of each Borrower), Parent and Lenders agree that the reaffirmation of the Borrowing Base provided for in this Section 2 shall be considered and deemed to be the May 1, 2013 Scheduled Redetermination.
SECTION 3.    Conditions Precedent.  The effectiveness of (i) the amendments to the Credit Agreement contained in Section 1 hereof, and (ii) the reaffirmation of the Borrowing Base contained in Section 2 hereof, is subject to the satisfaction of each of the following conditions precedent:
3.1    No Default or Borrowing Base Deficiency.  No Default or Event of Default shall have occurred which is continuing and the total Credit Exposures of all Lenders shall not exceed the Borrowing Base.  
3.2    Other Documents.  Administrative Agent shall have been provided with such other documents, instruments and agreements, including, without limitation, amendments to Mortgages, and Parent and Borrowers shall have taken such actions, as Administrative Agent may reasonably require in connection with this Eleventh Amendment and the transactions contemplated hereby.
SECTION 4.    Representations and Warranties of Borrowers.  To induce the Lenders and Administrative Agent to enter into this Eleventh Amendment, Parent and Borrowers hereby jointly and severally represent and warrant to the Lenders and Administrative Agent as follows:
4.1    Reaffirm Existing Representations and Warranties.  Each representation and warranty of each Credit Party contained in the Credit Agreement and the other Loan Documents is true and correct on the date hereof and will be true and correct after giving effect to the amendments set forth in Section 1 hereof, except to the extent such representations and warranties are expressly limited to an earlier date, in which case such representations and warranties shall be true and correct as of such specified earlier date.
4.2    Due Authorization; No Conflict.  The execution, delivery and performance by Parent and Borrowers of this Eleventh Amendment are within Parent’s and Borrowers’ corporate and limited liability company powers (as applicable), have been duly authorized by all necessary action, require no action by or in respect of, or filing with, any governmental body, agency or official and do not violate or constitute a default under any provision of applicable law or any material agreement binding upon Parent, any Borrower or any other Credit Party or result in the creation or imposition of any Lien upon any of the assets of Parent, any Borrower or any other Credit Party except Excepted Liens.  
4.3    Validity and Enforceability.  This Eleventh Amendment constitutes the valid and binding obligation of Parent and Borrowers enforceable in accordance with its terms, except as (i) the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditor’s rights generally, and (i) the availability of equitable remedies may be limited by equitable principles of general application.
4.4    No Default, Event of Default or Borrowing Base Deficiency.  No Default or Event of Default has occurred which is continuing and the total Credit Exposures of all Lenders do not exceed the Borrowing Base.
SECTION 5.    Miscellaneous.
5.1    Reaffirmation of Loan Documents; Extension of Liens.  Any and all of the terms and provisions of the Credit Agreement and the Loan Documents shall, except as amended and modified hereby, remain in full force and effect.  The amendments contemplated hereby shall not limit or impair any Liens securing the Indebtedness, each of which are hereby ratified, affirmed and extended to secure the Indebtedness after giving effect to this Eleventh Amendment.
5.2    Parties in Interest.  All of the terms and provisions of this Eleventh Amendment shall bind and inure to the benefit of the parties hereto and their respective successors and assigns.
5.3    Legal Expenses.  Parent and Borrowers hereby jointly and severally agree to pay on demand all reasonable fees and expenses of counsel to Administrative Agent incurred by Administrative Agent in connection with the preparation, negotiation and execution of this Eleventh Amendment and all related documents.
5.4    Counterparts.  This Eleventh Amendment may be executed in counterparts, and all parties need not execute the same counterpart; however, no party shall be bound by this Eleventh Amendment until Parent, Borrowers and the Required Lenders have executed a counterpart.  Facsimiles or other electronic transmission shall be effective as originals.
5.5    Complete Agreement.  THIS ELEVENTH AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN OR AMONG THE PARTIES.
5.6    Headings.  The headings, captions and arrangements used in this Eleventh Amendment are, unless specified otherwise, for convenience only and shall not be deemed to limit, amplify or modify the terms of this Eleventh Amendment, nor affect the meaning thereof.
5.7    Effectiveness.  This Eleventh Amendment shall be effective automatically and without necessity of any further action by Parent, Borrowers, Administrative Agent or Lenders when counterparts hereof have been executed by Parent, Borrowers, Administrative Agent and the Required Lenders, and all conditions to the effectiveness hereof set forth herein have been satisfied.
5.8    Governing Law.  This Eleventh Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.
IN WITNESS WHEREOF, the parties hereto have caused this Eleventh Amendment to be duly executed by their respective Responsible Officers on the date and year first above written.
[Signature pages to follow]

		
	PARENT:
	CHAPARRAL ENERGY, INC., 
a Delaware corporation

		
	By:
	     
Mark A. Fischer, Chief Executive Officer and President

		
	BORROWERS:
	CHAPARRAL ENERGY, L.L.C. 
CHAPARRAL RESOURCES, L.L.C. 
CHAPARRAL CO2, L.L.C. 
CEI ACQUISITION, L.L.C. 
CEI PIPELINE, L.L.C. 
CHAPARRAL REAL ESTATE, L.L.C. 
CHAPARRAL EXPLORATION, L.L.C. 
ROADRUNNER DRILLING, L.L.C.

		
	By:
	     
Mark A. Fischer, Manager

GREEN COUNTRY SUPPLY, INC.
		
	By:
	     
Mark A. Fischer, Chief Executive Officer and President

		
	ADMINISTRATIVE AGENT/LENDER:
	JPMORGAN CHASE BANK, N.A., 
as Administrative Agent and a Lender

		
	By:
	     
Mark E. Olson, 
Authorized Officer

		
	LENDER:
	CAPITAL ONE, NATIONAL ASSOCIATION, 
as a Lender

By:        
 
Name:        
 
Title:        

		
	LENDER:
	ROYAL BANK OF CANADA, 
as a Lender

By:         
Name:         
Title:        

		
	LENDER:
	UBS LOAN FINANCE LLC, 
as a Lender

By:        
 
Name:        
 
Title:        
By:        
 
Name:        
 
Title:        

		
	LENDER:
	CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, 
as a Lender

By:        
 
Name:        
 
Title:        
By:        
 
Name:        
 
Title:        

		
	LENDER:
	SOCIÉTÉ GÉNÉRALE, 
as a Lender

By:        
 
Name:        
 
Title:        

		
	LENDER:
	WELLS FARGO BANK, N.A., 
as a Lender

By:        
 
Name:        
 
Title:        

		
	LENDER:
	THE BANK OF NOVA SCOTIA, 
as a Lender

By:        
 
Name:        
 
Title:        

		
	LENDER:
	COMERICA BANK, 
as a Lender

By:        
 
Name:        
 
Title:        

		
	LENDER:
	NATIXIS, 
as a Lender

By:        
 
Name:        
 
Title:        
By:        
 
Name:        
 
Title:        

		
	LENDER:
	AMEGY BANK NATIONAL ASSOCIATION, 
as a Lender

By:        
 
Name:        
 
Title:        

		
	LENDER:
	COMPASS BANK, 
as a Lender

By:        
 
Name:        
 
Title:        

		
	LENDER:
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Lender

By:        
 
Name:        
 
Title:        
By:        
 
Name:        
 
Title:        

		
	LENDER:
	KEYBANK NATIONAL ASSOCIATION, 
as a Lender

By:        
 
Name:        
 
Title:        
		
	LENDER:
	UNION BANK, N.A., 
as a Lender

By:        
 
Name:        
 
Title:        
		
	LENDER:
	U.S. BANK NATIONAL ASSOCIATION, 
as a Lender

By:        
 
Name:        
 
Title:        
		
	LENDER:
	GOLDMAN SACHS BANK USA, 
as a Lender

By:        
 
Name:        
 
Title:        

1828448v.2 CHA715/23015    1

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