Document:

Commitment Letter, dated as of February 7, 2011

 Exhibit 10.1 

 

			
	 JPMORGAN CHASE BANK, N.A.
 J.P. MORGAN SECURITIES LLC
 383 Madison Avenue

New York, New York 10179
	  	 CITIGROUP GLOBAL MARKETS INC.
 390 Greenwich Street
 New York, New York 10013

MORGAN STANLEY SENIOR FUNDING, INC. 
 1585 Broadway 
 New York, New York 10036 

February 7, 2011 
 Kindred
Healthcare, Inc. 
 680 South Fourth Street 
 Louisville, Kentucky 40202 
 Attention: Donald H. Robinson 

Project Baseball 

$600.0 Million Senior Secured Asset-Based Revolving Facility 
 $700.0 Million Senior Secured Term Facility 
 $550.0 Million Senior Unsecured Bridge
Facility  
 Commitment Letter 
 Ladies and Gentlemen: 
 You (the “Borrower” or
“you”) have advised J.P. Morgan Securities LLC (“JPMorgan”), JPMorgan Chase Bank, N.A. (“JPMorgan Chase Bank”), Citigroup Global Markets Inc. (“CGMI” and, together with Citibank,
N.A., Citicorp North America, Inc. and/or any of their affiliates as may be appropriate to provide the services contemplated herein, “Citi”) and Morgan Stanley Senior Funding, Inc. (“MSSF”; together with JPMorgan,
JPMorgan Chase Bank and Citi, the “Commitment Parties,” “we” or “us”) that you (or one or more of your direct or indirect wholly owned subsidiaries) and RehabCare Group, Inc., a Delaware
corporation (the “Target”) intend to enter into a merger agreement dated as of the date hereof (the “Transaction Agreement”) pursuant to which you (or one or more of your direct or indirect wholly owned
subsidiaries) will merge with and into the Target, with you (or one or more of your direct or indirect wholly owned subsidiaries) continuing as the surviving corporation (the “Transaction”). The expected sources and uses of funding
for the Transaction are described in the Sources and Uses Table (the “Table”) attached hereto as Schedule I. 
 You have also advised us that you propose to finance the Transaction with Borrower common stock and cash. You have further advised us that you propose to finance up to $1,650.0 million of the cash portion
of the Transaction consideration, refinancing of indebtedness of Borrower and Target and the related fees and expenses from the following sources: (a) $600.0 million from a senior secured asset-based revolving facility (the “ABL
Facility”) of the Borrower, of which no more than $400.0 million plus amounts to fund original issue discount or upfront fees in connection with the flex provisions of the Fee Letter, shall be drawn at closing, (b) $700.0 million from
a senior secured term loan facility (the “Term Facility” and together with the ABL Facility, the “Senior Secured Credit Facilities”) of the Borrower and (c) $550.0 million in cash proceeds from (A) the
issuance by the Borrower of senior unsecured notes (the “Senior Notes” or “Securities”) in a public offering or Rule 144A private placement and/or (B) in the event the Borrower does not issue the full
amount of the Securities at or prior to the time the 

 
Transaction is consummated, a senior bridge facility (the “Bridge Facility”; together with the Senior Secured Credit Facilities, the “Credit Facilities”).

 Each of JPMorgan, Citi and MSSF is pleased to advise you that it is willing to act as a joint lead arranger and joint
bookrunner for the Credit Facilities, and, subject to the terms and conditions described in this Commitment Letter, each of JPMorgan Chase Bank, Citi and MSSF agree, severally and not jointly, to provide 50%, 25% and 25%, respectively, of the entire
principal amount of each of the Credit Facilities. This Commitment Letter, the Summaries of Terms and Conditions attached as Exhibits A, B and C hereto (the “Term Sheets”) and Exhibit D set forth the principal terms and conditions
on and subject to which we are willing to make available the Credit Facilities. 
 It is agreed that JPMorgan, Citi and MSSF
will act as the joint lead arrangers and joint bookrunners in respect of the Credit Facilities (in such capacities, the “Joint Lead Arrangers”; together with the Commitment Parties, the “Agents”), and that JPMorgan
Chase Bank will act as the sole administrative agent in respect of the Credit Facilities. It is agreed that JPMorgan will have “left” placement, and Citi and MSSF will be listed in alphabetical order in any marketing materials or other
documentation used in connection with the Credit Facilities. You agree that, as a condition to the commitments and agreements hereunder, no other agents, co-agents or arrangers will be appointed, no other titles will be awarded and no compensation
(other than that expressly contemplated by the Term Sheets and the Fee Letter referred to below) will be paid in connection with the Credit Facilities unless you and we shall so agree. 

We intend to syndicate the Credit Facilities to a group of lenders (together with JPMorgan Chase Bank, Citi and MSSF, the
“Lenders”) identified by us in consultation with you, it being understood that we will not syndicate to those persons identified by you in writing to the Joint Lead Arrangers (or to their affiliates) prior to the date hereof (or, if
after the date hereof, only if the addition of such persons is reasonably acceptable to the Administrative Agent) (such persons, collectively (including their affiliates), the “Disqualified Institutions”). Notwithstanding any other
provision of this Commitment Letter to the contrary, unless you and we so agree (a) no Commitment Party shall be relieved or novated from its obligations hereunder in connection with any syndication or assignment until after the Closing Date,
(b) no such assignment or novation shall become effective with respect to any portion of any Commitment Party’s commitment in respect of the Credit Facilities until the initial funding of the Credit Facilities on the Closing Date, and
(c) unless the Borrower agrees in writing, each Commitment Party shall retain exclusive control over all rights and obligations with respect to its commitments, including all rights with respect to consents, modifications and amendments, until
the Closing Date has occurred. 
 We intend to commence syndication efforts promptly, and you agree, from the date of this
Commitment Letter to the earlier of 90 days after the Closing Date and a Successful Syndication actively to assist us in completing a syndication reasonably satisfactory to us. Such assistance shall include (a) your using commercially
reasonable efforts to ensure that the syndication efforts benefit materially from your existing banking relationships and those of the Target (b) direct contact between senior management of the Borrower and the proposed Lenders (and your using
commercially reasonable efforts to ensure such contact between senior management and non-legal advisors of the Target and the proposed Lenders, (c) as set forth in the next paragraph, assistance from the Borrower and its subsidiaries (and your
commercially reasonable efforts to cause Target and its subsidiaries to assist) in the preparation of materials to be used in connection with the syndication (collectively, with the Term Sheets, the “Information Materials”), and
(d) the hosting, with us and senior management of the Borrower and the use of commercially reasonable efforts to arrange the hosting, with us and senior management of the Target, of one or more meetings of prospective Lenders. Notwithstanding
anything to the contrary contained in this Commitment Letter or the Fee Letter, neither the commencement nor completion of the syndication of the Credit Facilities shall constitute a condition precedent to the Closing Date. 

  
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 You will assist us in preparing Information Materials, including Confidential Information
Memoranda, for distribution to prospective Lenders by posting on IntraLinks or another similar electronic system (the “Platform”) (with JPMorgan’s name appearing on the left hand side of any Information Materials and other
documentation used in connection with the Credit Facilities and JPMorgan holding the leading role and responsibilities associated with such left placement including maintaining physical books in respect of the Credit Facilities). You also will
assist us in preparing an additional version of the Information Materials (the “Public-Side Version”) to be used by prospective Lenders’ public-side employees and representatives (“Public-Siders”) who do not
wish to receive material non-public information (within the meaning of United States federal securities laws) with respect to the Borrower, the Target, the Borrower’s affiliates and any of their respective securities (“MNPI”)
and who may be engaged in investment and other market related activities with respect to any such entity’s securities or loans. Before distribution of any Information Materials, you agree to execute and deliver to us (i) a letter in which
you authorize distribution of the Information Materials to a prospective Lender’s employees willing to receive MNPI (“Private-Siders”) and (ii) a separate letter in which you authorize distribution of the Public-Side
Version to Public-Siders and represent that no MNPI is contained therein. Each Confidential Information Memorandum shall exculpate us with respect to any liability related to the use of the content of such Confidential Information Memorandum or any
related marketing material by the recipients thereof. You also acknowledge that Public-Siders employed by the Joint Lead Arrangers or their respective affiliates, consisting of publishing debt analysts, may participate in any public side meetings or
telephone conference calls held pursuant to clause (d) of the immediately previous paragraph; provided that such analysts shall not publish any information obtained from such meetings or calls until the syndication of the Credit
Facilities has been completed upon making of allocations by the Joint Lead Arrangers and the Joint Lead Arrangers freeing the Credit Facilities to trade. 
 The Borrower agrees that the following documents may be distributed to both Private-Siders and Public-Siders, including through a Platform designated “Public-Siders”, unless the Borrower advises
the Joint Lead Arrangers in writing (including by email) within a reasonable time prior to their intended distribution that such materials should only be distributed to Private-Siders: (a) administrative materials prepared by the Agents for
prospective Lenders (such as a lender meeting invitation, lender allocation, if any, and funding and closing memoranda), (b) notification of changes in the terms of the Credit Facilities and (c) other materials intended for prospective
Lenders after the initial distribution of Information Materials. If you advise us that any of the foregoing should be distributed only to Private-Siders, then Public-Siders will not receive such materials without further discussions with you.

 The Borrower hereby authorizes the Commitment Parties to distribute drafts of definitive documentation with respect to the
Credit Facilities to Private-Siders and Public-Siders. 
 The Joint Lead Arrangers, will manage, in consultation with you, all
aspects of the syndication, including decisions as to the selection of institutions to be approached and when they will be approached, when their commitments will be accepted, which institutions will participate, the allocation of the commitments
among the Lenders and the amount and distribution of fees among the Lenders. The Joint Lead Arrangers will have no responsibility other than to arrange the syndication as set forth herein and in no event shall be subject to any fiduciary or other
implied duties. Additionally, the Borrower acknowledges and agrees that none of the Joint Lead Arrangers is advising the Borrower as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction. In addition, you acknowledge
that Morgan Stanley & Co. Incorporated, an affiliate of MSSF, has been retained by you as financial advisor in connection with the Acquisition. The Borrower shall consult with its own advisors concerning such matters and shall be
responsible for making its own independent investigation and appraisal of the transactions contemplated hereby, and the Joint Lead Arrangers shall not have any responsibility or liability to the Borrower with respect thereto. 

  
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 To assist us in our syndication efforts, you agree promptly to prepare and provide to us
(and use commercially reasonable efforts to cause the Target to provide to us) all information with respect to the Borrower and its subsidiaries, the Target, the Transaction and the other transactions contemplated hereby, including all financial
information and projections (the “Projections”), as we may reasonably request in connection with the arrangement and syndication of the Credit Facilities. You hereby represent and covenant that (a) all written information
concerning the Borrower and its subsidiaries and, to your knowledge, the Target and its subsidiaries (including the Information Materials), other than the Projections and other forward looking information and information of a general economic or
industry-specific nature, that will be made available by you or any of your representatives pursuant to the immediately preceding sentence (the “Information”) is or will be, when furnished, taken as a whole, complete and correct in
all material respects and does not or will not, when furnished, taken as a whole, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading
in light of the circumstances under which such statements are made and (b) the Projections that have been or will be made available to us by you or any of your representatives have been or will be prepared in good faith based upon assumptions
you believed to be reasonable at the time made; it being recognized by the Lenders that such Projections are as to future events and are not to be viewed as facts and are subject to significant uncertainties and contingencies many of which are
beyond your control, and that actual results during the period or periods covered by any such Projections may differ significantly from the projected results and such differences may be material. You agree that if prior to the earlier of (x) 90
days after the Closing Date and (y) a Successful Syndication (as defined in the Fee Letter) you become aware that any of the representations and warranties in the preceding sentence would be incorrect if the Information and the Projections were
then being furnished, and such representations were then being made, then you will promptly supplement the Information and the Projections such that (with respect to the Information relating to the Borrower and its subsidiaries and, to the best of
your knowledge, the Target and its subsidiaries) such representations and warranties are correct under those circumstances. You understand that in arranging and syndicating the Credit Facilities we may use and rely on the Information and Projections
without independent verification thereof. 
 As consideration for the commitments and agreements of the Commitment Parties
hereunder, you agree to cause to be paid, on the terms and subject to the conditions set forth therein, the nonrefundable fees described in that certain Fee Letter between you and the Commitment Parties, dated as of the date hereof and delivered
herewith (the “Fee Letter”). 
 Each Commitment Party’s commitments and agreements hereunder are subject
to the conditions set forth Exhibit D. The conditions to availability of the commitments and other obligations hereunder and of the Credit Facilities are limited to those set forth herein, in the Term Sheets and Exhibit D. Those matters that are not
covered by the provisions hereof and of the Term Sheets are subject to the approval and agreement of the Commitment Parties and the Borrower. 
 Notwithstanding anything in this Commitment Letter (including each of the exhibits attached hereto), the Fee Letter, the definitive documentation with respect to the Credit Facilities (the “Credit
Documentation”) or any other letter agreement or other undertaking concerning the financing of the Transaction to the contrary, (i) the only representations relating to the Borrower, the Target, its and their respective subsidiaries
and its and their respective businesses the accuracy of which shall be a condition to the availability of the Credit Facilities on the Closing Date shall be (A) such of the representations made by the Target in the Transaction Agreement as are
material to the interests of the Lenders, but only to the extent that the Borrower or one of its subsidiaries has the right to terminate its obligations under the Transaction Agreement as a result of a breach of such representations in the
Transaction Agreement (to such extent, the “Specified Transaction Agreement Representations”) and (B) the Specified Representations (as defined below) made by the Borrower and the Guarantors (as defined in the Term Sheets) in
the 

  
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Credit Documentation, and (ii) the terms of the Credit Documentation shall be in a form such that they do not impair the availability of the Credit Facilities on the Closing Date if the
conditions set forth in this Commitment Letter and in the Term Sheets and Exhibit D are satisfied (it being understood that, to the extent any security interest in any Collateral (as defined in the Term Sheets) is not or cannot be provided and/or
perfected on the Closing Date (as defined in the Term Sheets) (other than the pledge and perfection of the security interests (1) in the equity securities of any subsidiaries of the Borrower (to the extent required by the Term Sheets) and
(2) in other assets with respect to which a lien may be perfected by the filing of a financing statement under the Uniform Commercial Code) after your use of commercially reasonable efforts to do so, then the provision and/or perfection of a
security interest in such Collateral shall not constitute a condition precedent to the availability of the Credit Facilities on the Closing Date, but instead shall be required to be delivered after the Closing Date pursuant to arrangements and
timing to be mutually agreed by the Administrative Agent (as defined in the Term Sheets) and the Borrower acting reasonably (and in any event within 90 days after the Closing Date or such longer period as may be reasonably agreed by the
Administrative Agent). For purposes hereof, “Specified Representations” means the representations and warranties of the Borrower and the Guarantors set forth in the Credit Documentation relating to requisite power and authority, due
authorization, execution, delivery and enforceability, in each case, related to, the entering into and performance of the Credit Documentation; solvency as of the Closing Date (after giving effect to the Transaction) of the Borrower and its
subsidiaries on a consolidated basis; that the entering into and performance of the Credit Facilities will not conflict with organizational documents or laws; Federal Reserve margin regulations; the Investment Company Act; PATRIOT Act; subject to
the parenthetical in the immediately preceding sentence, creation, validity and perfection of security interests in the Collateral; and the status of the ABL Facility and Term Facility and the guarantees thereof as senior debt. This paragraph, and
the provisions herein, shall be referred to as the “Closing Date Conditions Provisions”. 
 You agree
(a) to indemnify and hold harmless each Commitment Party, its affiliates, directors, employees, advisors, and agents (each, an “indemnified person”) from and against any and all losses, claims, damages and liabilities to which
any such indemnified person may become subject arising out of or in connection with this Commitment Letter, the Credit Facilities, the use of the proceeds thereof, the Transaction or any related transaction or any claim, litigation, investigation or
proceeding relating to any of the foregoing, regardless of whether any indemnified person is a party thereto, and to reimburse each indemnified person upon demand for any legal or other expenses incurred in connection with investigating or defending
any of the foregoing; provided that the foregoing indemnity will not, as to any indemnified person, apply to losses, claims, damages, liabilities or related expenses to the extent they are found by a final, non-appealable judgment of a court
to arise from the willful misconduct, bad faith or gross negligence of such indemnified person, and (b) whether or not the Transactions are consummated, to reimburse each Commitment Party and its affiliates on demand for all reasonable and
invoiced out-of-pocket expenses (including due diligence expenses, syndication expenses, consultant’s fees and expenses, travel expenses, and reasonable fees, charges and disbursements of counsel) incurred in connection with the Credit
Facilities and any related documentation (including this Commitment Letter and the definitive financing documentation) or the administration, amendment, modification or waiver thereof. You acknowledge that information and documents relating to the
Credit Facilities may be transmitted through SyndTrak, Intralinks, the internet, e-mail, or similar electronic transmission systems, and, notwithstanding anything herein to the contrary, no indemnified person shall be liable for any damages arising
from the use by others of Information or other materials obtained through electronic, telecommunications or other information transmission systems (except to the extent arising from the gross negligence of such indemnified person) or for any
special, indirect, consequential or punitive damages in connection with the Credit Facilities. 

  
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 Each Commitment Party shall use all non-public information provided to it by or on behalf of
you hereunder or in connection with the transactions contemplated hereunder solely for the purpose of providing the services that are the subject of this Commitment Letter and shall treat confidentially all such information, except in each case for
information that was or becomes publicly available other than by reason of disclosure by such Commitment Party in violation of this Commitment Letter or was or becomes available to such Commitment Party or its affiliates from a source which is not
known by such Commitment Party to be subject to a confidentiality obligation to the Borrower, provided that nothing herein shall prevent such Commitment Party from disclosing any such information (i) to rating agencies, (ii) to any
Lenders, assignees or participants or prospective lenders, assignees or participants (other than, in the case of assignees or prospective assignees, Disqualified Institutions), (iii) pursuant to the order of any court or administrative agency
or in any pending legal or administrative proceeding (in which case such Commitment Party agrees to promptly notify you to the extent lawfully permitted to do so), (iv) upon the request or demand of any regulatory authority having jurisdiction
over such Commitment Party or any of its affiliates, (v) to such Commitment Party’s employees, legal counsel, independent auditors and other experts or agents who need to know such information and are informed of the confidential nature of
such information, (vi) to any of its affiliates (with such Commitment Party being responsible for such affiliate’s compliance with this paragraph), (vii) to any other Commitment Party and (viii) for purposes of establishing a
“due diligence” defense. This undertaking by each Commitment Party shall automatically terminate on the earlier of (x) one year following the Closing Date or the termination of such Commitment Party’s commitments hereunder or
(y) two years from the date hereof. The provisions contained in this paragraph shall remain in full force and effect notwithstanding the termination of this Commitment Letter. 

You acknowledge that each Commitment Party and its affiliates (the term “Commitment Party” as used below in this paragraph
being understood to include such affiliates) may be providing debt financing, equity capital or other services (including financial advisory services) to other companies in respect of which you may have conflicting interests regarding the
transactions described herein and otherwise. No Commitment Party will use confidential information obtained from you by virtue of the transactions contemplated hereby or its other relationships with you in connection with the performance by such
Commitment Party of services for other companies, and no Commitment Party will furnish any such information to other companies. You also acknowledge that no Commitment Party has any obligation to use in connection with the transactions contemplated
hereby, or to furnish to you, confidential information obtained from other companies. You further acknowledge that each Commitment Party is a full service securities firm and may from time to time effect transactions, for its own or its
affiliates’ account or the account of customers, and hold positions in loans, securities or options on loans or securities of the Borrower and its affiliates and of other companies that may be the subject of the transactions contemplated by
this Commitment Letter. You further acknowledge and agree that (a) no fiduciary, advisory or agency relationship between you and the Agents is intended to be or has been created in respect of any of the transactions contemplated by this
Commitment Letter, irrespective of whether any Agent has advised or is advising you on other matters, (b) the Agents on the one hand, and you, on the other hand, have an arm’s-length business relationship that does not directly or
indirectly give rise to, nor do you rely on, any fiduciary duty on the part of the Agents, (c) you are capable of evaluating and understanding, and you understand and accept, the terms, risks and conditions of the transactions contemplated by
this Commitment Letter and (d) you have been advised that the Agents are engaged in a broad range of transactions that may involve interests that differ from your interests and that no Agent has an obligation to disclose such interests and
transactions to you by virtue of any fiduciary, advisory or agency relationship. 
 Each Agent may employ the services of its
affiliates in providing certain services hereunder and, in connection with the provision of such services, may exchange with such affiliates information concerning you and the other companies that may be the subject of the transactions contemplated
by 

  
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this Commitment Letter, and, to the extent so employed, such affiliates shall be entitled to the benefits afforded such Agent hereunder. You also agree that each Agent may at any time and from
time to time assign all or any portion of its commitments hereunder to one or more of its affiliates; provided that such Agent will not be relieved of all or any portion of their commitments hereunder prior to the initial funding of the
Credit Facilities. 
 This Commitment Letter shall not be assignable by you without the prior written consent of each Agent (and
any purported assignment without such consent shall be null and void), is intended to be solely for the benefit of the parties hereto and is not intended to confer any benefits upon, or create any rights in favor of, any person other than the
parties hereto and the indemnified persons. This Commitment Letter may not be amended or waived except by an instrument in writing signed by you and each Agent. This Commitment Letter may be executed in any number of counterparts, each of which
shall be an original, and all of which, when taken together, shall constitute one agreement. Delivery of an executed signature page of this Commitment Letter by facsimile transmission or electronic “.pdf” file shall be effective as
delivery of a manually executed counterpart hereof. This Commitment Letter and the Fee Letter are the only agreements that have been entered into among us with respect to the Credit Facilities and set forth the entire understanding of the parties
with respect thereto. 
 This Commitment Letter shall be governed by, and construed and interpreted in accordance with, the laws
of the State of New York. Each party hereto consents to the exclusive jurisdiction and venue of the state or federal courts located in the Borough of Manhattan in the City of New York with respect to any action, suit or proceeding in connection with
this Commitment Letter and the Fee Letter, and agrees not to bring or support any such action, suit or proceeding in any other court. Each party hereto irrevocably waives, to the fullest extent permitted by applicable law, (a) any objection
that it may now or hereafter have to the laying of venue of any such legal proceeding in the state or federal courts located in the City of New York and (b) any right it may have to a trial by jury in any suit, action, proceeding, claim or
counterclaim brought by or on behalf of any party related to or arising out of this Commitment Letter, the Term Sheets, the transactions contemplated hereby or the performance of services hereunder. 

This Commitment Letter is delivered to you on the understanding that neither this Commitment Letter, the Term Sheets or the Fee Letter
nor any of their terms or substance shall be disclosed, directly or indirectly, to any other person (including, without limitation, other potential providers or arrangers of financing) except (a) to your officers, directors, agents, attorneys
and advisors and, on a confidential basis, those of the Target, who are directly involved in the consideration of this matter (except that the Fee Letter may be disclosed to the Target; provided that any disclosure of the Fee Letter or its
terms or substance to the Target shall be redacted in respect of (i) the amounts, percentages and basis points of fees set forth in numbered paragraphs 1 through 4 thereof and (ii) the “flex” provisions set forth in paragraph 5
thereof relating to pricing of the Credit Facilities, and paragraph 6 and the related “Total Cap” paragraph thereof, in each case in a manner reasonably satisfactory to the Commitment Parties); (b) as may be compelled in a judicial or
administrative proceeding or as otherwise required by law (in which case you agree to inform us promptly thereof, to the extent permitted by law), (c) this Commitment Letter and the Term Sheets may be disclosed in any proxy or other public
filing relating to the Transaction and in any prospectus or offering memorandum relating to the Securities, (d) the fees contained in the Fee Letter may be disclosed as part of a generic disclosure of aggregate sources and uses related to fee
amounts to the extent required in marketing materials, any proxy or other public filing or any prospectus or other offering memorandum and (e) this Commitment Letter and the Term Sheets may be disclosed to rating agencies in connection with
obtaining ratings for the Borrower and the Credit Facilities. 
 The compensation, reimbursement, indemnification and
confidentiality provisions contained herein and in the Fee Letter and any other provision herein or therein which by its terms expressly 

  
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survives the termination of this Commitment Letter shall remain in full force and effect regardless of whether definitive financing documentation shall be executed and delivered and
notwithstanding the termination of this Commitment Letter or the commitments hereunder; provided, however, that the indemnification provisions contained in the Credit Documentation shall supersede your indemnification obligations
hereunder. 
 We hereby notify you that pursuant to the requirements of the U.S.A. Patriot Act, Title III of Pub. L. 107-56
(signed into law October 26, 2001) (the “Patriot Act”), we are and each other Lender is required to obtain, verify and record information that identifies the Borrower, which information includes the name, address, tax
identification number and other information regarding the Borrower that will allow any of us or such Lender to identify the Borrower in accordance with the Patriot Act. This notice is given in accordance with the requirements of the Patriot Act and
is effective as to us and each Lender. 
 If the foregoing correctly sets forth our agreement, please indicate your acceptance
of the terms hereof and of the Term Sheets and the Fee Letter by returning to us executed counterparts hereof and of the Fee Letter not later than 11:59 p.m., New York City time, on February 7, 2011. This offer will automatically expire at
such time if we have not received such executed counterparts in accordance with the preceding sentence. In the event that the borrowing in respect of the Term Facility and/or ABL Facility does not occur on or before the earlier of
(i) September 30, 2011 (the “End Date”), and (ii) the time at which the Transaction Agreement has been irrevocably terminated, then this Commitment Letter and the commitments and undertakings of each of the Agents
hereunder shall automatically terminate unless each of them shall, in their discretion, agree to an extension. In addition, the commitments with respect to the Bridge Facility shall be reduced by the amount of cash proceeds of Securities or other
Takeout Securities (as defined in the Fee Letter) that are issued after the date hereof. 

  
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 We are pleased to have been given the opportunity to assist you in connection with this
important financing. 
  

					
	Very truly yours,
	
	J.P. MORGAN SECURITIES LLC
		
	By:	 	 /s/ Andreas Pierroutsakos

		 	Name:	 	Andreas Pierroutsakos
		 	Title:	 	Vice-President
	
	JPMORGAN CHASE BANK, N.A.
		
	By:	 	 /s/ Dawn LeeLum

		 	Name:	 	Dawn LeeLum
		 	Title:	 	Executive Director

  
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	CITIGROUP GLOBAL MARKETS INC.
		
	By:	 	 /s/ Tom Cole

		 	Name:	 	Tom Cole
		 	Title:	 	Managing Director

  
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	MORGAN STANLEY SENIOR FUNDING, INC.
		
	By:	 	 /s/ Christy Silvester

		 	Name:	 	Christy Silvester
		 	Title:	 	Executive Director

  
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	Accepted and agreed to as of the date first above written:
	
	KINDRED HEALTHCARE, INC.
		
	By:	 	 /s/ Donald H. Robinson

		 	Name:	 	Donald H. Robinson
		 	Title:	 	Senior Vice President, Tax and Treasurer

 Schedule I 
 SOURCES AND USES TABLE 
  

					
	 Sources:
	  	 	 
		
	 Borrower equity issued to Target shareholders
	  	$	227,600,000	1 
		
	 Term Loans
	  	 	700,000,000	  
		
	 Loans under the ABL Facility
	  	 	350,000,000	2 
		
	 Securities or Bridge Loans
	  	 	550,000,000	  
		  	 	 	 
		
	 Total Sources
	  	$	1,827,600,000	  
		
	 Uses:
	  	 	 
		
	 Purchase Target
	  	$	885,000,000	3 
		
	 Buyout of Target NCI
	  	$	20,900,000	4 
		
	 Refinance Borrower and Target debt
	  	 	798,700,000	5 
		
	 Payment of financing fees and expenses
	  	 	123,000,000	  
		  	 	 	 
		
	 Total Uses
	  	$	1,827,600,000	6 

  

	1	 Dollar amount based on an issuance of a fixed number of shares at a price determined at market close on February 1, 2011 and subject to change on
the date the Transaction is consummated. 

	2	 Maximum draw at closing is $400.0 million, plus additional amounts to cover OID flex on Term Facility. 

	3	 Dollar amount based on an issuance of a fixed number of shares at a price determined at market close on February 1, 2011 and subject to change on
the date the Transaction is consummated. 

	4	 May be disbursed after the Closing Date subject to the terms of the Transaction Agreement. 

	5	 Represents the maximum amount to be repaid (subject to footnote 6 below). 

	6	 Amounts drawn under the ABL Facility on the Closing Date in excess of $350.0 million, subject to footnote 2 above, will be used to refinance current
indebtedness and/or pay financing fees, and any such additional draw may increase the total uses. 

  
 Schedule I-1

 EXHIBIT A 

TERM FACILITY 
 Summary of Terms and Conditions7 
  

 
 Set forth below
is a statement of the terms and conditions for the Term Facility to be used to finance a portion of the Transaction: 
  

			
	 Borrower:
	  	Kindred Healthcare, Inc. (the “Borrower”).
		
	 Guarantors:
	  	The Borrower’s direct and indirect, existing and future, wholly-owned domestic subsidiaries, other than (i) domestic subsidiaries of foreign subsidiaries to the extent a
guarantee by any such restricted subsidiary is not permitted by law or would result in material and adverse tax consequences, (ii) unrestricted subsidiaries, and (iii) Cornerstone Insurance Company (collectively, the “Term
Guarantors”; the Borrower and the Term Guarantors, collectively, the “Term Loan Parties”). Any guarantees to be issued in respect of the ABL Facility or the Senior Notes shall be pari passu in right of payment with the
obligations under the guarantees of the Term Guarantors.
		
	 Joint Lead Arrangers and
 Joint Bookrunners: 
	  	JPMorgan, Citi and MSSF (in such capacity, the “Term Arrangers”).
		
	 Co-Syndication Agents:
	  	Citi and MSSF will act as co-syndication agents for the Term Facility.
		
	 Administrative Agent:
	  	JPMorgan Chase Bank (in such capacity, the “Term Administrative Agent”).
		
	 Lenders:
	  	A syndicate of banks, financial institutions and other entities, including JPMorgan Chase Bank, Citi and MSSF, arranged by the Term Arrangers (collectively, the “Term
Lenders”).

  

	7	 All capitalized terms used but not defined in the Exhibits to the Commitment Letter have the meanings given to them in the Commitment Letter to which
they are attached, including the Exhibits thereto and the Annexes to the Fee Letter referenced in the Exhibits. In the event any such capitalized term is subject to multiple and differing definitions, the appropriate meaning thereof in an Exhibit
shall be determined by reference to the context in which it is used. 

  
 A-1

			
	Term Facility	  	
		
	 Type and Amount: 
	  	 A seven-year term loan facility (the “Term Facility”) in the amount of up to $700.0 million (the loans thereunder, the
“Term Loans”). The Term Loans shall be repayable in equal quarterly installments of 1.00% of the original principal amount per year with the balance thereof payable on the date that is the seventh anniversary of the Closing Date
(the “Maturity Date”).

		
	 Availability:
	  	The Term Loans shall be made in a single drawing on the Closing Date (as defined below).
		
	 Documentation Considerations:
	  	The Term Facility Documentation (as defined below) shall contain the terms set forth in this Term Sheet and other terms customary for facilities of this type, subject to materiality
thresholds, baskets and exceptions to be agreed (giving due regard to then prevailing market conditions and the operational requirements of the Borrower and its subsidiaries in light of their size, industry and practices and the Projections and
model dated as of January 2011 (the “Model”) provided by the Borrower to the Joint Lead Arrangers (the “Documentation Considerations”)).
		
	 Purpose:
	  	The proceeds of the Term Loans shall be used to finance the Transaction, repay the debt of Target and the Borrower, and to pay fees and expenses related thereto.
		
	Incremental Term Facility	  	The Term Facility will permit the Borrower to add one or more incremental term loan facilities to the Term Facility (each, an “Incremental Term Facility”) in an
aggregate amount, together with the aggregate amount of outstanding loans and/or commitments under all Incremental ABL Facilities (as defined in Exhibit B), not to exceed $150.0 million; provided that (i) no existing Term Lender will be
required to participate in any such Incremental Term Facility without its consent, (ii) no event of default under the Term Facility would exist after giving effect thereto, (iii) the representations and warranties in the Term Facility Documentation
(as defined below) shall be accurate in all material respects, (iv) on a pro forma basis after giving effect to the incurrence of any such Incremental Term Facility (and after giving effect to any acquisition consummated simultaneously therewith and
all other appropriate pro forma adjustment events), (a) the Borrower is in pro forma compliance under the Term Facility Documentation with the financial covenants and (b) the ratio of senior secured indebtedness to EBITDA of the Borrower (in each
case defined in a manner to be agreed) does not exceed 2.5x, in each case, recomputed as of the last day of the most recently ended

  
 A-2

			
		  	fiscal quarter of the Borrower for which financial statements are available, (v) the maturity date of any such Incremental Term Facility shall be no earlier than the Maturity Date
and the weighted average life of such Incremental Term Facility shall be no shorter than the then remaining weighted average life of the Term Facility, (vi) the interest rate margins and (subject to clause (v)) amortization schedule applicable to
any Incremental Term Facility shall be determined by the Borrower and the lenders thereunder; provided that to the extent the yield (to be defined to include all upfront fees (other than fees exclusively paid to the lead arrangers of the Term
Facility or any Incremental Term Facility) and OID based on a 4-year weighted average life) on such Incremental Term Facility exceeds the yield (defined in the same manner) on the Term Facility by more than 0.50%, then the interest margins for the
Term Facility shall be increased to the extent required so that the yield on such Incremental Term Facility shall not exceed the yield on the Term Facility by more than 0.50%, (vii) any LIBOR/ABR floors applicable to any Incremental Term Facility
shall be no higher than the LIBOR/ABR floors applicable to the Term Facility and (viii) any Incremental Term Facility shall be on terms and pursuant to documentation to be determined; provided that, to the extent such terms and documentation
are not consistent with the Term Facility (except to the extent permitted by clauses (v) and (vi) above), they shall be reasonably satisfactory to the Term Administrative Agent.
		
		  	The Borrower may seek commitments in respect of the Incremental Facilities from existing Term Lenders (each of which shall be entitled to agree or decline to participate in its sole
discretion) and additional banks, financial institutions and other institutional lenders or investors who will become Term Lenders in connection therewith (“Additional Lenders”); provided that the Term Administrative Agent
shall have consent rights (not to be unreasonably withheld) with respect to such Additional Lender, if such consent would be required under the heading “Assignments and Participations” for an assignment of Term Loans to such Additional
Lender.
		
	Fees and Interest Rates:	  	As set forth on Annex I to the Fee Letter.
		
	Optional Prepayments and	  	
	Commitment Reductions:	  	
		  	Term Loans may be prepaid by the Borrower in minimum amounts to be agreed upon without premium or penalty. Optional prepayments of the Term Loans shall be
applied

  
 A-3

			
		  	as specified by the Borrower. Optional prepayments of the Term Loans may not be reborrowed.
		
	Mandatory Prepayments:	  	 The following amounts shall be applied to prepay the Term Loans:

		
		  	(a) 100% of the net cash proceeds from any issuance of preferred stock or incurrence of indebtedness after the Closing Date by the Borrower or any of its restricted subsidiaries,
except for proceeds of Takeout Securities to the extent applied to repay the Bridge Facility and subject to an exception for permitted debt; provided that the net cash proceeds of any such issuance of preferred stock or incurrence of
indebtedness will be applied first to repay any outstanding obligations of the Borrower in respect of the Bridge Facility.
		
		  	(b) 100% of the net cash proceeds of any sale or other disposition (including as a result of casualty or condemnation) by the Borrower or any of its restricted subsidiaries of any
assets, other than net cash proceeds of any sale or other disposition reinvested (or contractually committed to reinvest) in assets to be used in the business of the Borrower and its subsidiaries within 360 days of such sale or disposition
(provided that any such contractually committed reinvestment shall be consummated no later than the 450th day following such sale or disposition), and subject to certain other customary exceptions to be agreed upon.
		
		  	(c) 50% of Excess Cash Flow (to be defined in a manner to be agreed) for each fiscal year of the Borrower (commencing with the 2011 fiscal year) subject to stepdowns to 25% and 0%
of Excess Cash Flow when the Borrower’s total adjusted leverage ratio (defined in a manner to be agreed, but generally defined as set forth under “Financial Covenants”) is at levels to be agreed.
		
		  	Mandatory prepayments of the Term Loans shall be applied first to scheduled installments thereof occurring within the next 12 months in direct order of maturity and
second ratably to the remaining respective installments thereof. Mandatory prepayments of the Term Loans may not be reborrowed.
		
		  	Security The obligations of each Term Loan Party in respect of the Term Facility shall be secured by (i) a perfected first priority security interest in all of the Loan
Parties’ tangible and intangible assets (including, without limitation, intellectual property, owned real property and all of the capital stock of each of the Borrower’s direct and indirect subsidiaries

  
 A-4

			
		  	(limited, in the case of foreign subsidiaries, to 66% of the capital stock of first tier foreign subsidiaries to the extent a pledge of a greater percentage could reasonably be
expected to result in material adverse tax consequences and except to the extent non-US law documentation would be required, and excluding Cornerstone and equity interests in partnerships and joint ventures to the extent a pledge of interests
therein is not permitted by contract applicable to such partnership or joint venture) except for (i) the ABL Facility Collateral (as defined in Exhibit B), (ii) any leasehold interests and (iii) those assets as to which the Term Administrative Agent
shall determine in its reasonable discretion that the cost of obtaining such a security interest are excessive in relation to the value of the security to be afforded thereby (such collateral, the “Term Facility Collateral”), and
(b) a perfected second priority security interest in the ABL Facility Collateral.
		
		  	A customary intercreditor agreement will be entered into by the Term Administrative Agent and the ABL Administrative Agent (as defined in Exhibit B). The ABL Administrative Agent
shall have a second priority lien on the Term Facility Collateral. For the avoidance of doubt, the collateral structure will not require assets to be moved within the organizational structure of the Borrower.
		
	Certain Conditions	  	The availability of the Term Facility shall be conditioned solely upon the conditions set forth in Exhibit D (the date upon which all such conditions precedent shall be
satisfied, the “Closing Date”).
		
	Documentation	  	The Term Facility Documentation shall contain representations, warranties, covenants and events of default (in each case, applicable to the Borrower and its restricted subsidiaries)
customary for financings of this type, consistent with the Documentation Considerations, including, without limitation:
		
	 Representations and Warranties:
	  	Financial statements (including pro forma financial statements); absence of undisclosed liabilities; no material adverse change; corporate existence; compliance with law and
regulations; corporate power and authority; enforceability of Term Facility Documentation; no conflict with law, regulations or contractual obligations; no material litigation; no default; ownership of property; liens; intellectual property; taxes;
Federal Reserve regulations; labor matters; ERISA; Investment Company Act and other regulations; subsidiaries; use of proceeds; environmental matters; accuracy of disclosure; creation and perfection of security interests;

  
 A-5

			
		  	solvency; status of Term Facility as senior debt; Patriot Act compliance; and delivery of certain documents. Certain representations and warranties will contain customary
materiality qualifiers and scheduled exceptions to be agreed.
		
	 Affirmative Covenants:
	  	Delivery of financial statements, reports, accountants’ letters, projections, officers’ certificates and other information requested by the Term Lenders; payment of taxes
and other obligations; continuation of business and maintenance of existence and material rights and privileges; compliance with laws, regulations and material contractual obligations; maintenance of property and insurance (including, without
limitation, operating licenses); maintenance of books and records; right of the Term Lenders to inspect property and books and records; notices of defaults, litigation and other material events; compliance with environmental laws; further assurances
(including, without limitation, with respect to security interests in after-acquired property and future guarantees); and agreement to obtain interest rate and currency protection in an amount and manner reasonably satisfactory to the Term
Administrative Agent.
		
	 Financial Covenants:
	  	Financial covenants to be:
		
		  	 •         Maintenance of a maximum total adjusted leverage ratio (to be defined
in a manner to be agreed, but generally defined as total debt plus six times consolidated rental expense, over EBITDAR, each component to be defined) with levels to be agreed.

		
		  	 •         Maintenance of a minimum fixed charge coverage ratio (to be defined
in a manner to be agreed, but generally defined as EBITDAR over interest expense plus consolidated rental expense) with levels to be agreed.

		
		  	 •         Maximum capital expenditures in amounts to be agreed with one year
carryover on terms to be agreed.

		
		  	Covenant levels for the total adjusted leverage ratio and fixed charge coverage ratio shall provide a 25-30% cushion (calculated on a static basis) in EBITDAR above the EBITDAR
levels set forth in the Model.
		
		  	Generally accepted accounting principles (“GAAP”) in effect on the Closing Date shall apply to the interpretation of any accounting terms (including computations of
any financial ratio) under the Term Facility Documentation; provided that, at any time any change in GAAP would affect

  
 A-6

			
		  	any such interpretation or computation, the Borrower shall promptly notify the Term Administrative Agent and negotiate in good faith to amend the affected provision or provisions to
preserve the original intent thereof in light of such change in GAAP; provided, further, that until such amendment is consummated, the Borrower shall provide to the Term Administrative Agent a written reconciliation, satisfactory to
the Term Administrative Agent, between calculations of any financial ratio made before and after giving effect to such change in GAAP.
		
	 Negative Covenants:
	  	Usual and customary for transactions of this type (subject to thresholds and/or exceptions to be agreed), including, but not limited to: indebtedness (including guarantee
obligations, and preferred stock, foreign currency exchange and hedging agreements); liens; mergers, consolidations, liquidations and dissolutions; sales of assets; issuance and sale of capital stock of subsidiaries; investments and acquisitions,
loans, guarantees and advances; restricted payments; payments and modifications of junior debt instruments; transactions with affiliates; sale-leasebacks; changes in fiscal year; hedging arrangements; negative pledge clauses and clauses restricting
subsidiary distributions; and changes in lines of business.
		
	 Unrestricted Subsidiaries:
	  	Subject to customary limitations and conditions (including, without limitation, pro forma covenant compliance and compliance with the limitations in the investment covenant), the
Borrower may designate any subsidiary as an “unrestricted subsidiary” and subsequently redesignate any such unrestricted subsidiary as a restricted subsidiary. Unrestricted subsidiaries will not be subject to the representations and
warranties, covenants, events of default or other provisions of the Term Facility Documentation, and the results of operations and indebtedness of unrestricted subsidiaries will not be taken into account for purposes of calculating any financial
metric contained in the Term Facility Documentation on terms consistent with those in the Second Amended and Restated Credit Agreement, dated as of July 18, 2007 (as amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Existing Credit Agreement”), among the Borrower, the lenders party thereto, JPMorgan Chase Bank, as administrative agent and collateral agent, and the other parties thereto.
		
	 Events of Default:
	  	Nonpayment of principal when due; nonpayment of interest, fees or other amounts after a grace period to be agreed upon; material inaccuracy of representations and
warranties;

  
 A-7

			
		  	violation of covenants (subject, in the case of certain affirmative covenants, to a grace period to be agreed upon); cross-default to material indebtedness (including, without
limitation, the ABL Facility); bankruptcy events; certain ERISA events; material judgments; actual or asserted invalidity of any guarantee, security document or subordination provisions; and a change of control (the definition of which is to be
agreed upon).
		
	 Voting:
	  	Amendments and waivers with respect to the Term Facility Documentation shall require the approval of Term Lenders holding more than 50% of the aggregate amount of the Term
Loans, except that (a) the consent of each Term Lender directly affected thereby shall be required with respect to (i) reductions in the amount or extensions of the scheduled date of amortization or maturity of any Term Loan,
(ii) reductions in the rate of interest or any fee or extensions of any due date thereof and (iii) increases in the amount or extensions of the expiry date of any Term Lender’s commitment and (b) the consent of 100% of the Term
Lenders shall be required with respect to (i) reductions of any of the voting percentages, (ii) releases of all or substantially all the collateral and (iii) releases of all or substantially all of the Term
Guarantors.
		
	 Assignments and Participations:
	  	The Term Lenders shall be permitted to assign all or a portion of their Term Loans with the consent, not to be unreasonably withheld, of (a) the Borrower, unless (i) the assignee is
a Term Lender, an affiliate of a Term Lender or an approved fund, or (ii) an event of default has occurred and is continuing, and (b) the Term Administrative Agent, unless a Term Loan is being assigned to a Term Lender, an affiliate of a
Term Lender or an approved fund; provided that no assignments shall be made to Disqualified Institutions. In the case of partial assignments (other than to another Term Lender, an affiliate of a Term Lender or an approved fund), the minimum
assignment amount shall be $1,000,000 unless otherwise agreed by the Borrower and the Term Administrative Agent. Assignments will be by novation. The Term Administrative Agent shall receive a processing and recordation fee of $3,500 in connection
with all assignments. The Term Lenders shall also be permitted to sell participations in their Term Loans. Participants shall have the same benefits as the Term Lenders with respect to yield protection and increased cost provisions subject to
customary limitations. Voting rights of participants shall be limited to those matters set forth in clause (a) under “Voting” with respect to which the affirmative vote of the Term Lender from which it
purchased

  
 A-8

			
		  	its participation would be required. Pledges of Term Loans in accordance with applicable law shall be permitted without restriction.
		
	 Yield Protection:
	  	The Term Facility Documentation shall contain provisions (a) protecting the Term Lenders against increased costs or loss of yield resulting from changes after the Closing Date
in reserve, tax, capital adequacy and other requirements of law and from the imposition of or changes in withholding or other taxes and (b) indemnifying the Term Lenders for “breakage costs” incurred in connection with, among other
things, any prepayment of a Eurodollar Loan (as defined in Annex I to the Fee Letter) on a day other than the last day of an interest period with respect thereto.
		
	 Expenses and Indemnification:
	  	The Term Facility Documentation shall provide that the Borrower shall pay (a) all invoiced reasonable out-of-pocket expenses of the Term Administrative Agent and the Term
Arrangers associated with the syndication of the Term Facility and the preparation, execution, delivery and administration of the Term Facility Documentation and any amendment or waiver with respect thereto (including the reasonable fees,
disbursements and other charges of counsel) and (b) all out-of-pocket expenses of the Term Administrative Agent and the Term Lenders (including the fees, disbursements and other charges of counsel) in connection with the enforcement of the Term
Facility Documentation.
		
		  	The Term Administrative Agent, the Term Arrangers and the Term Lenders (and their affiliates and their respective officers, directors, employees, advisors and agents) will have no
liability for, and will be indemnified and held harmless against, any losses, claims, damages, liabilities and reasonable and invoiced out-of-pocket expenses (including the reasonable fees, disbursements and other charges of counsel) incurred in
respect of the financing contemplated hereby or the use or the proposed use of proceeds thereof, except to the extent they are found by a final, non-appealable judgment of a court to arise from the gross negligence or willful misconduct of the
relevant indemnified person.
		
	 Governing Law and Forum:
	  	State of New York.
		
	 Counsel to the
 Term Administrative Agent
 and the Term Arrangers:
	  	Cahill Gordon & Reindel LLP.

  
 A-9

 EXHIBIT B 

ABL FACILITY 

Summary of Terms and Conditions 
  

 
 Set forth below
is a statement of the terms and conditions for the ABL Facility to be used to finance a portion of the Transaction: 
  

			
	 Borrower:
	  	Kindred Healthcare, Inc. (the “Borrower”).
		
	 Guarantors:
	  	The Borrower’s direct and indirect, existing and future, wholly-owned domestic subsidiaries, other than (i) domestic subsidiaries of foreign subsidiaries to the extent a
guarantee by any such restricted subsidiary is not permitted by law or would result in material and adverse tax consequences, (ii) unrestricted subsidiaries, and (iii) Cornerstone Insurance Company (collectively, the “ABL
Guarantors”; the Borrower and the ABL Guarantors, collectively, the “ABL Loan Parties” and, together with the Term Loan Parties, the “Loan Parties”). Any guarantees to be issued in respect of the Term
Facility or the Senior Notes shall be pari passu in right of payment with the obligations under the guarantees of the ABL Guarantors.
		
	 Joint Lead Arrangers and
	  	
	 Joint Bookrunners:
	  	 JPMorgan, Citi and MSSF (in such capacity, the “ABL Arrangers”). 

		
	 Co-Syndication Agents:
	  	Citi and MSSF will act as co-syndication agents for the ABL Facility.
		
	 Administrative Agent:
	  	JPMorgan Chase Bank (in such capacity, the “ABL Administrative Agent”).
		
	 Lenders:
	  	A syndicate of banks, financial institutions and other entities, including JPMorgan Chase Bank, Citi and MSSF, arranged by the ABL Arrangers (the “ABL
Lenders”).
		
	 Documentation Considerations:
	  	The ABL Facility Documentation (as defined below) shall contain the terms set forth in this Term Sheet and other terms customary for facilities of this type, subject to
materiality thresholds, baskets and exceptions to be agreed, consistent with the Documentation Considerations.
		
	ABL Facility:	  	A senior secured asset-based revolving credit facility (the “ABL Facility”) in an aggregate principal amount of $600.0 million (the loans thereunder, the
“ABL Loans”), of which

  
 B-1

			
		  	up to an amount to be agreed will be available in the form of letters of credit.
		
	Swingline Facility:	  	In connection with the ABL Facility, the ABL Administrative Agent (in such capacity, the “ABL Swingline Lender”) will make available to the Borrower a
swingline facility under which the Borrower may make short-term borrowings in an aggregate amount not to exceed $30.0 million at any time outstanding; provided that the ABL Swingline Lender shall not be required to make available loans under
the swingline facility for so long as the ABL Swingline Lender reasonably believes there is a “defaulting” ABL Lender. Except for purposes of calculating the Commitment Fee described below, any such swingline borrowings will reduce
availability under the ABL Facility on a dollar-for-dollar basis.
		
		  	Each ABL Lender under the ABL Facility shall, promptly upon request by the ABL Swingline Lender, fund to the ABL Swingline Lender its pro rata share of any swingline
borrowings.
		
		  	If any ABL Lender becomes a Defaulting ABL Lender (to be defined in a customary manner to be agreed) then the swingline exposure of such Defaulting ABL Lender will automatically
be reallocated among the non-Defaulting ABL Lenders pro rata in accordance with their commitments under the ABL Facility up to an amount such that the revolving credit exposure of such non-Defaulting ABL Lender does not exceed its commitments. In
the event such reallocation does not fully cover the exposure of such Defaulting ABL Lender, the ABL Swingline Lender may require the Borrower to repay such “uncovered” exposure in respect of the swingline loans and will have no obligation
to make new swingline loans to the extent such swingline loans would exceed the commitments of the non-Defaulting ABL Lenders. The ABL Facility shall contain provisions permitting the Borrower to replace any Defaulting Lender on customary
terms.
		
	Incremental ABL Facilities:	  	 The ABL Facility Documentation will permit the Borrower to increase commitments under the ABL Facility (any such increase, an
“Incremental ABL Facility”) in an aggregate amount, together with the aggregate amount of outstanding loans and/or commitments under all Incremental Term Facilities, not to exceed $150.0 million; provided that (i) no default
or event of default exists or would exist after giving effect thereto, (ii) any Incremental ABL Facility shall be on terms and pursuant to documentation applicable to the ABL Facility, except with respect to any commitment, arrangement, upfront or
similar fees that may agreed to among the

  
 B-2

			
		  	Borrower and the lenders providing such additional commitments (iii) on a pro forma basis after giving effect to the incurrence of any such Incremental ABL Facility (assuming
such Incremental ABL Facility is fully borrowed) (and after giving effect to any acquisition consummated simultaneously therewith and all other appropriate pro forma adjustment events), the Borrower is in pro forma compliance under the ABL Facility
Documentation with the financial covenants; and (iv) the representations and warranties in the ABL Facility Documentation shall be accurate in all material respects. The Borrower may seek commitments in respect of the Incremental ABL Facility from
existing ABL Lenders (each of which shall be entitled to agree or decline to participate in its sole discretion) and additional banks, financial institutions and other institutional lenders who will become ABL Lenders in connection therewith,
(“Additional ABL Lenders”); provided that the ABL Administrative Agent shall have consent rights (not to be unreasonably withheld) with respect to such Additional ABL Lender, if such consent would be required under the heading
“Assignments and Participations” for an assignment of ABL Loans to such Additional ABL Lender.
		
	Purpose:	  	The letters of credit and proceeds of ABL Loans (except as set forth below) will be used by the Borrower and its subsidiaries for working capital and general corporate purposes
(including permitted acquisitions).
		
	Availability:	  	Subject to the Borrowing Base (as defined below), ABL Loans shall be made available on the Closing Date (i) to fund original issue discount or upfront fees in connection with the
flex provisions in the Fee Letter, and (ii) to fund up to $400.0 million in the aggregate to pay for the acquisition of Target, to refinance existing indebtedness of the Target, the Borrower and their respective subsidiaries (including accrued and
unpaid interest and applicable premiums) and to pay costs and expenses related to the Transaction.
		
		  	ABL Loans will be available, subject to the then-applicable Borrowing Base, at any time prior to the final maturity of the ABL Facility, in minimum principal amounts to be
agreed. Amounts repaid under the ABL Facility may be reborrowed, subject to the then-applicable Borrowing Base.
		
		  	In addition, letters of credit may be issued on or after the Closing Date to backstop or replace letters of credit outstanding on the Closing Date (including by
“grandfathering” such existing letters of credit in the ABL Facility) or for other general corporate purposes.

  
 B-3

			
	Borrowing Base:	  	The borrowing base (the “Borrowing Base”) at any time shall equal the sum of 85% of eligible accounts receivable of the Borrower and the ABL Guarantors (of which
no more than $30.0 million may be comprised of aged accounts receivables) minus reserves. Eligibility criteria for eligible accounts receivable included in the Borrowing Base shall be set forth in the ABL Facility Documentation in a manner
consistent with the Existing Credit Agreement.
		
		  	The Borrowing Base will be computed by the Borrower monthly and any time if requested by the ABL Administrative Agent if it reasonably believes that the Borrowing Base is
materially inaccurate, and a certificate (the “Borrowing Base Certificate”) presenting the Borrower’s computation of the Borrowing Base will be delivered to the ABL Administrative Agent promptly, but in no event later than the
thirtieth day following the end of each calendar month.
		
		  	The ABL Administrative Agent will have the right to establish and modify reserves in its Permitted Discretion, with prior written notice to the Borrower. For purposes of the
foregoing, “Permitted Discretion” means a determination made in good faith and in the exercise of reasonable (from the perspective of a secured asset-based lender) business judgment.
		
		  	“Excess Availability” shall mean, at any time, the remainder of (a) the lesser of (i) the aggregate commitments under the ABL Facility at such time and (ii) the
Borrowing Base as then in effect minus (b) the sum of (i) aggregate principal amount of all ABL Loans then outstanding and (ii) all amounts outstanding under letters of credit (including issued and undrawn letters of credit) at such
time.
		
	Interest Rates and Fees:	  	As set forth on Annex II to the Fee Letter.
		
	Default Rate:	  	Any principal payable under or in respect of the ABL Facility not paid when due shall bear interest at the applicable interest rate plus 2% per annum. Other overdue amounts
(including overdue interest) shall bear interest at the interest rate applicable to ABR loans plus 2% per annum.
		
	Letters of Credit:	  	Letters of credit under the ABL Facility will be issued by the ABL Administrative Agent and/or another ABL Lender reasonably acceptable to the Borrower and the ABL Administrative
Agent (each, an “ABL Issuing Bank”) in an aggregate face amount not to exceed $100.0 million at any time outstanding. Each letter of credit shall expire not later than the earlier of (a) 12 months after its date of issuance and (b)
unless arrangements reasonably satisfactory to the ABL Issuing Bank have been entered into, the fifth business

  
 B-4

			
		  	day prior to the final maturity of the ABL Facility; provided that any letter of credit may provide for renewal thereof for additional periods of up to 12 months (which in
no event shall extend beyond the date referred to in clause (b) above).
		
		  	Drawings under any letter of credit shall be reimbursed by the Borrower on the same business day or, if notice is given later than a customary time to be agreed, within one
business day. To the extent that the Borrower does not reimburse the ABL Issuing Bank when required, the ABL Lenders under the ABL Facility shall be irrevocably obligated to reimburse the ABL Issuing Bank pro rata based upon their respective ABL
Facility commitments.
		
		  	If any ABL Lender becomes a Defaulting ABL Lender, then the letter of credit exposure of such Defaulting ABL Lender will automatically be reallocated among the non-Defaulting ABL
Lenders pro rata in accordance with their commitments under the ABL Facility up to an amount such that the revolving credit exposure of such non-Defaulting ABL Lender does not exceed its commitments. In the event that such reallocation does not
fully cover the letter of credit exposure of such Defaulting ABL Lender, the applicable ABL Issuing Bank may require the Borrower to cash collateralize such “uncovered” exposure in respect of each outstanding letter of credit and will have
no obligation to issue new letters of credit, or to extend, renew or amend existing letters of credit to the extent letter of credit exposure would exceed the commitments of the non-Defaulting ABL Lenders, unless such “uncovered” exposure
is cash collateralized to the ABL Issuing Bank’s reasonable satisfaction.
		
	Final Maturity:	  	The ABL Facility will mature on the date that is five years after the Closing Date and all outstanding amounts shall be due and payable on such date.
		
	Security	  	The obligations of each ABL Loan Party in respect of the ABL Facility and any swap agreements and, at the Borrower’s option, cash management arrangements, in either case
provided by any ABL Lender (or any affiliate of an ABL Lender), shall be secured by (i) a perfected first priority security interest in all of its accounts receivable, cash, deposit accounts, securities accounts, books and records related to
and proceeds of the foregoing (such collateral, the “ABL Facility Collateral” and, together with the Term Facility Collateral, the “Collateral”), and (ii) a perfected second priority security interest in the Term
Facility Collateral.
		
		  	Subject to a customary intercreditor agreement to be entered into by the ABL Administrative Agent and the Term

  
 B-5

			
		  	Administrative Agent, the ABL Administrative Agent shall have the benefit of customary intercreditor provisions relating to access and use of non-ABL Facility Collateral. Subject
to the terms of such intercreditor agreement, the Term Administrative Agent shall have a second priority lien on the ABL Facility Collateral. For the avoidance of doubt, the collateral structure will not require assets to be moved within the
organizational structure of the Borrower.
		
	Cash Management/Cash Dominion:	  	Concentration account and account control agreement structure (including, without limitation, use of cash to repay ABL Loans) consistent with the Existing Credit Agreement shall
be maintained (with appropriate provisions for post-closing integration of Target cash management systems and implementation of control agreements to be agreed).
		
	Mandatory Prepayments:	  	If at any time, the aggregate amount of outstanding ABL Loans, unreimbursed letter of credit drawings and undrawn letters of credit under the ABL Facility exceeds the Maximum
Borrowing Amount, then the Borrower will immediately repay outstanding ABL Loans and/or cash collateralize outstanding letters of credit in an aggregate amount equal to such excess, with no reduction of the ABL Facility commitments.
		
	Voluntary Prepayments and	  	
	Reductions in Commitments	  	Voluntary reductions of the unutilized portion of the ABL Facility commitments and prepayments of borrowings will be permitted at any time (subject to customary notice
requirements), in minimum principal amounts to be agreed, without premium or penalty, subject to reimbursement of the ABL Lenders’ redeployment costs in the case of a prepayment of Eurodollar Rate borrowings prior to the last day of the
relevant interest period. All voluntary prepayments will be applied as directed by the Borrower.
		
	Certain Conditions on the Closing Date	  	The availability of the ABL Facility on the Closing Date shall be conditioned solely upon the conditions set forth in Exhibit D (the date upon which all such conditions
precedent shall be satisfied, the “Closing Date”).
		
	Conditions to All Borrowings	  	
	After the Closing Date	  	Delivery of notice of borrowing, accuracy of representations and warranties in all material respects; provided that any representation and warranty that is qualified as to
“materiality”, “material adverse effect” or similar language shall be true and correct in all respects (after giving effect to any such qualification therein); absence of defaults.
		
	Documentation	  	The documentation for the ABL Facility (the “ABL Facility Documentation”) shall contain representations, warranties,

  
 B-6

			
		  	covenants and events of default (in each case, applicable to the Borrower and its restricted subsidiaries) customary for financings of this type, consistent with the
Documentation Considerations, including, without limitation:
		
	 Representations and Warranties:
	  	Financial statements (including pro forma financial statements); absence of undisclosed liabilities; no material adverse change; corporate existence; compliance with law and
regulations; corporate power and authority; enforceability of ABL Facility Documentation; no conflict with law, regulations or contractual obligations; no material litigation; no default; ownership of property; liens; intellectual property; taxes;
Federal Reserve regulations; labor matters; ERISA; Investment Company Act and other regulations; subsidiaries; use of proceeds; environmental matters; accuracy of disclosure; creation and perfection of security interests; solvency; status of ABL
Facility as senior debt; Patriot Act compliance; and delivery of certain documents. Certain representations and warranties will contain customary materiality qualifiers and scheduled exceptions to be agreed.
		
	 Affirmative Covenants:
	  	Delivery of financial statements and Borrowing Base Certificate, reports, accountants’ letters, projections, officers’ certificates and other information requested by
the ABL Lenders; payment of taxes and other obligations; continuation of business and maintenance of existence and material rights and privileges; compliance with laws, regulations and material contractual obligations; maintenance of property and
insurance (including, without limitation, operating licenses); maintenance of books and records; right of the ABL Lenders to inspect property and books and records; notices of defaults, litigation and other material events; compliance with
environmental laws; further assurances (including, without limitation, with respect to security interests in after-acquired property and future guarantees); and annual field audits at Borrower’s expense (provided that if at any time the
average usage of the ABL Facility over the prior 90 days is greater than 75% of the lesser of (i) the Borrowing Base in effect at such time and (ii) the aggregate commitments under the ABL Facility at such time, one additional field audit will be
permitted in such calendar year, except that, during an event of default, additional field audits shall be required at the ABL Administrative Agent’s request, in each case, at the Borrower’s expense) and periodic updates of the appraisal
conducted in connection with the establishment of the ABL Facility.
		
	 Financial Covenants:
	  	Financial covenants to be:

  
 B-7

			
		  	 •       Maintenance of a minimum fixed charge coverage ratio (to be defined in a
manner to be agreed, but generally defined as EBITDAR over interest expense plus consolidated rental expense) with levels to be agreed.

		
		  	 •       Maximum capital expenditures in amounts to be agreed with one year carryover
on terms to be agreed.

		
		  	Covenant levels for the fixed charge coverage ratio shall provide a 25-30% cushion (calculated on a static basis) in EBITDAR above the EBITDAR levels set forth in the
Model.
		
	 Negative Covenants:
	  	Usual and customary for transactions of this type (subject to thresholds and/or exceptions to be agreed), including, but not limited to: indebtedness (including guarantee
obligations, and preferred stock, foreign currency exchange and hedging agreements); liens; mergers, consolidations, liquidations and dissolutions; sales of assets; issuance and sale of capital stock of subsidiaries; investments and acquisitions,
loans, guarantees and advances; restricted payments; payments and modifications of junior debt instruments; transactions with affiliates; sale-leasebacks; changes in fiscal year; hedging arrangements; negative pledge clauses and clauses restricting
subsidiary distributions; and changes in lines of business.
		
	 Unrestricted Subsidiaries:
	  	Subject to customary limitations and conditions (including, without limitation, pro forma covenant compliance and compliance with the limitations in the investment covenant), the
Borrower may designate any subsidiary as an “unrestricted subsidiary” and subsequently redesignate any such unrestricted subsidiary as a restricted subsidiary. Unrestricted subsidiaries will not be subject to the representations and
warranties, covenants, events of default or other provisions of the ABL Facility Documentation, and the results of operations and indebtedness of unrestricted subsidiaries will not be taken into account for purposes of calculating any financial
metric contained in the ABL Facility Documentation on terms consistent with those in the Existing Credit Agreement.
		
	 Events of Default:
	  	Nonpayment of principal when due; nonpayment of interest, fees or other amounts after a grace period to be agreed upon; material inaccuracy of representations and warranties;
violation of covenants (subject, in the case of certain affirmative covenants, to a grace period to be agreed upon); cross-default to material indebtedness (including, without limitation, the Term Facility); bankruptcy events; certain ERISA events;
material judgments; actual or asserted invalidity of any guarantee, security document or subordination

  
 B-8

			
		  	provisions; and a change of control (the definition of which is to be agreed upon).
		
	 Voting:
	  	Amendments and waivers with respect to the ABL Facility Documentation will require the approval of ABL Lenders holding more than 50% of the aggregate principal amount of ABL
Loans and commitments under the ABL Facility (the “Required ABL Lenders”), except that (i) the consent of each ABL Lender directly adversely affected thereby shall be required with respect to (a) increases in the commitment of such
ABL Lender, (b) reductions of principal, interest or fees, and (c) extensions of final maturity or the due date of any interest or fee payment, (ii) the consent of a supermajority (66.7%) of the ABL Lenders shall be required for any changes to the
Borrowing Base definition or the component definitions thereof which result in increased borrowing availability or advance rates; provided that the foregoing shall not impair the ability of the ABL Administrative Agent to add, remove, reduce
or increase reserves in its Permitted Discretion, and (iii) the consent of all ABL Lenders shall be required with respect to (a) releases of all or substantially all ABL Guarantors or all or substantially all of the Collateral and (b) changes in
voting rights.
		
		  	The ABL Facility Documentation shall contain provisions to be agreed relating to “defaulting” ABL Lenders and agents (including for insolvency), including provisions
relating to providing cash collateral to support swingline loans or letters of credit, the suspension of voting rights, rights to receive certain fees, and termination or assignment of commitments or ABL Loans of such ABL
Lenders.

  
 B-9

			
	 Assignments and Participations:
	  	The ABL Lenders will be permitted to assign loans and commitments under the ABL Facility to financial institutions in the business of making regular extensions of credit with the
consent of the Borrower, the ABL Swingline Lender and the ABL Issuing Bank (in each case, not to be unreasonably withheld, delayed or conditioned); provided that no consent of the Borrower shall be required after the occurrence and during the
continuance of an event of default; provided, further, that no assignments shall be made to Disqualified Institutions. All assignments will require the consent of the ABL Administrative Agent, not to be unreasonably withheld or
delayed. Each assignment will be in an amount of an integral multiple of $5,000,000 or, in each case, if less, all of such ABL Lender’s remaining loans and commitments of the applicable class. Assignments will be by novation. An assignment fee
in the amount of $3,500 shall be paid by the respective assignor or assignee to the ABL Administrative Agent.
		
		  	The ABL Lenders will be permitted to sell participations in loans and commitments without consent being required (other than to the Borrower and its affiliates or any natural
person), subject to customary limitations. Voting rights of participants shall be limited to matters in respect of (a) increases in commitments participated to such participants, (b) reductions of principal, interest or fees, (c) extensions of final
maturity or the due date of any amortization, interest or fee payment, (d) releases of the guarantees of all or substantially all ABL Guarantors or all or substantially all of the Collateral and (e) changes in voting rights.
		
	 Yield Protection:
	  	The ABL Facility Documentation shall contain customary provisions (a) protecting the ABL Lenders against increased costs or loss of yield resulting from changes in reserve,
tax, capital adequacy and other requirements of law and from the imposition of or changes in withholding or other taxes and (b) indemnifying the ABL Lenders for “breakage costs” incurred in connection with, among other things, any
prepayment of a Eurodollar Loan (as defined in Annex II to the Fee Letter) on a day other than the last day of an interest period with respect thereto.
		
	 Expenses and Indemnification:
	  	The ABL Facility Documentation shall provide that the Borrower shall pay (a) all invoiced reasonable out-of-pocket expenses of the ABL Administrative Agent and the ABL
Arrangers associated with the syndication of the ABL Facility (including field examinations) and the preparation, execution, delivery and administration of the ABL Facility Documentation and any amendment or waiver with respect thereto (including
the reasonable fees, disbursements and other charges of counsel) and (b) all out-of-pocket expenses

  
 B-10

			
		  	of the ABL Administrative Agent and the ABL Lenders (including the fees, disbursements and other charges of counsel) in connection with the enforcement of the Term Facility
Documentation.
		
		  	The ABL Administrative Agent, the ABL Arrangers and the ABL Lenders (and their affiliates and their respective officers, directors, employees, advisors and agents) will have no
liability for, and will be indemnified and held harmless against, any losses, claims, damages, liabilities or reasonable and invoiced out-of-pocket expenses (including the reasonable fees, disbursements and other charges of counsel) incurred in
respect of the financing contemplated hereby or the use or the proposed use of proceeds thereof, except to the extent they are found by a final, non-appealable judgment of a court to arise from the gross negligence or willful misconduct of the
relevant indemnified person.
		
	 Governing Law and Forum:
	  	State of New York.
		
	 Counsel to the
 ABL Administrative Agent
 and the ABL Arrangers:
	  	Cahill Gordon & Reindel LLP.

  
 B-11

 EXHIBIT C 

BRIDGE FACILITY 

Summary of Terms and Conditions 
  

 
 Set forth below
is a statement of the terms and conditions for the Bridge Facility to be used to finance a portion of the Transaction: 
  

			
	 Initial Loans:
	  	The Bridge Lenders (as defined below) will make senior unsecured loans (the “Initial Loans” or “Bridge Loans”) to the Borrower on the Closing
Date (as defined below) in an aggregate principal amount not to exceed $550.0 million.
		
	 Borrower:
	  	Kindred Healthcare, Inc. (the “Borrower”).
		
	 Guarantors:
	  	The Bridge Facility Debt (as defined below) shall be jointly and severally consummated by all guarantors of the Term Facility on a senior basis (the “Bridge
Guarantors” and, together with the Term Guarantors and ABL Guarantors, the “Guarantors”).
		
	 Administrative Agent:
	  	JPMorgan Chase Bank (in such capacity, the “Bridge Administrative Agent” and, together with the Term Administrative Agent and ABL Administrative Agent, the
“Administrative Agents”) will act as administrative agent for the Bridge Lenders holding the Initial Loans from time to time.
		
	 Joint Lead Arrangers and
	  	
	 Joint Bookrunners:
	  	JPMorgan, Citi and MSSF (in such capacities, the “Bridge Arrangers” and, together with the Term Arrangers and ABL Arrangers, the “Joint Lead
Arrangers”).
		
	 Lenders:
	  	JPMorgan Chase Bank, Citi, MSSF, and any other holder of any portion of the Initial Loans or of any commitment to make the Initial Loans are collectively referred to as the
“Bridge Lenders” (and, such Bridge Lenders, the Term Lenders and the ABL Lenders, the “Lenders”).
		
	 Use of Proceeds:
	  	The proceeds of the Initial Loans will be used to provide funds to finance the Transaction and to pay fees and expenses related thereto.
		
	 Funding:
	  	The Bridge Lenders will make the Initial Loans simultaneously with (a) the consummation of the Transaction and (b) the initial funding under the Term Facility. The date
on which such Initial Loans are made and the Transaction is consummated is herein called the “Closing Date.”
		
	 Maturity/Exchange:
	  	The Initial Loans will initially mature on the date that is 12 months following the Closing Date (the “Initial Loan Maturity

  
 C-1

			
		  	Date”), which shall be extended as provided below. If any Initial Loan has not been previously repaid in full on or prior to the Initial Loan Maturity Date, the
Bridge Lender in respect of such Initial Loan will have the option at any time or from time to time on or after the Initial Loan Maturity Date to receive exchange notes in exchange for such Initial Loan having the terms set forth in the term sheet
attached hereto as Annex I (the “Exchange Notes”; together with the Initial Loans, the “Bridge Facility Debt”). Subject only to the absence of a nonpayment or bankruptcy default, the maturity of any Initial Loans that are
not exchanged for Exchange Notes on the Initial Loan Maturity Date shall automatically be extended to the eighth anniversary of the Closing Date.
		
		  	The Initial Loans and the Exchange Notes shall be pari passu for all purposes.
		
	 Interest Rates:
	  	As set forth on Annex III to the Fee Letter.
		
	 Mandatory Redemption:
	  	The Borrower will be required to prepay Initial Loans (and, if issued, redeem Exchange Notes, to the extent required by the terms of such Exchange Notes) on a pro
rata basis, at par plus accrued and unpaid interest from the net cash proceeds of debt incurrences, issuances of equity and, after deduction of, among other things, amounts required, if any, to repay the Term Facility, the sale of any
assets outside the ordinary course of business, subject to exceptions and baskets to be agreed. In addition, upon the occurrence of a change of control, the Borrower will be required to redeem the Exchange Notes at 101% of the principal amount of
such Initial Loans or Exchange Notes, as applicable, plus accrued and unpaid interest.
		
	 Optional Prepayment:
	  	The Initial Loans may be prepaid, in whole or in part, at the option of the Borrower, at any time upon two business days’ prior notice, at par plus accrued and unpaid
interest and, if applicable, breakage costs.
		
	 Documentation Considerations:
	  	The documentation for the Bridge Facility (the “Bridge Facility Documentation”) shall contain the terms set forth in this Term Sheet and other terms customary
for facilities and transactions of this type, as may be reasonably agreed by the Bridge Arrangers, the Bridge Lenders and the Borrower, subject to materiality thresholds, baskets and exceptions to be agreed, consistent with the Documentation
Considerations.
		
	 Conditions Precedent:
	  	The availability of the Bridge Facility shall be conditioned solely upon the conditions set forth in the next sentence, the twelfth and thirteenth paragraph of the Commitment
Letter and in Exhibit D. The making of the Initial Loans shall also be conditioned upon the accuracy of the Specified Transaction Agreement Representations and Specified Representations.

  
 C-2

			
	 Representations and Warranties:
	  	Substantially similar to the representations and warranties set forth in the Term Facility Documentation and their accuracy in all material respects on the Closing Date will be a
condition to the making of the Initial Loans.
		
	 Covenants:
	  	Substantially similar to the covenants set forth in the Term Facility Documentation and ABL Facility Documentation, subject to certain adjustments (including, without limitation,
incurrence-based negative covenants and no financial maintenance covenants) customary for facilities of this type (consistent with the Documentation Considerations) to be agreed (including, without limitation, a covenant to refinance Initial Loans,
including in connection with any Securities Demand). Prior to the Initial Loan Maturity Date, the covenants will be more restrictive than those in the Exchange Notes. Following the Initial Loan Maturity Date, the covenants relevant to the Initial
Loans will automatically be modified so as to be consistent with the Exchange Notes.
		
	 Events of Default:
	  	Substantially similar to the events of default set forth in the Term Facility Documentation and ABL Facility Documentation, subject to certain adjustments (including, without
limitation, a cross-acceleration but no cross-default event of default) customary for facilities of this type (consistent with the Documentation Considerations) to be agreed and others as may be reasonably required by the Bridge Arrangers (with
customary notice and grace periods to be agreed). Following the Initial Loan Maturity Date, the events of default relevant to the Initial Loans will automatically be modified so as to be consistent with the Exchange Notes.
		
	 Cost and Yield Protection:
	  	Substantially the same as the cost and yield protection provisions of the Term Facility Documentation.
		
	 Assignment and Participation:
	  	Subject to the prior approval of the Bridge Administrative Agent (such approval not to be unreasonably withheld), the Bridge Lenders will have the right to assign Initial Loans
(other than to Disqualified Institutions) without the consent of the Borrower; provided, that, unless an event of default has occurred prior to the Initial Loan Maturity Date and is at such time continuing, the Bridge Lenders may not assign
more than 50% of the principal amount the Initial Loans without the consent of the Borrower (such consent not to be unreasonably withheld or delayed) (it being understood that Bridge Lenders may participate their Initial Loans as provided in the
next paragraph) prior to the Initial Loan Maturity Date. Assignments will be by novation.
		
		  	Subject to the prior approval of the Bridge Administrative Agent (such approval not to be unreasonably withheld), the Bridge Lenders will have the right to participate their
Initial Loans to

  
 C-3

			
		  	other financial institutions without restriction, other than customary voting limitations. Participants will have the same benefits as the selling Bridge Lenders would have (and
will be limited to the amount of such benefits) with regard to yield protection and increased costs, subject to customary limitations and restrictions.
		
	 Voting:
	  	Amendments and waivers of the Bridge Facility Documentation will require the approval of Bridge Lenders holding more than 50% of the outstanding Initial Loans, except that
(i) the consent of each adversely affected Bridge Lender will be required for (a) reductions of principal, interest rates or spread, (b) except as provided under “Maturity/Exchange” above, extensions of the Initial Loan Maturity
Date, (c) additional restrictions on the right to exchange Initial Loans for Exchange Notes or any amendment of the rate of such exchange and (d) any amendment to the Exchange Notes that requires (or would, if any Exchange Notes were
outstanding, require) the approval of all holders of Exchange Notes and (ii) the consent of 100% of the Bridge Lenders shall be required with respect to (a) reductions to any of the voting percentages and pro rata provisions, (b) modifications
to the redemption provisions of the Exchange Notes, (c) releases of all or substantially all of the Bridge Guarantors and (d) change the ranking.
		
	 Expenses and Indemnification:
	  	The Bridge Facility Documentation shall provide that the Borrower shall pay (a) all invoiced reasonable out-of-pocket expenses of the Bridge Administrative Agent and the
Bridge Arrangers associated with the syndication of the Bridge Facility and the preparation, execution, delivery and administration of the Bridge Facility Documentation and any amendment, waiver or modification with respect thereto (including the
reasonable fees, disbursements and other charges of counsel) and (b) all out-of-pocket expenses of the Bridge Administrative Agent and the Bridge Lenders (including the fees, disbursements and other charges of counsel) in connection with the
enforcement of the Bridge Facility Documentation.
		
		  	The Bridge Administrative Agent, the Bridge Arrangers and the Bridge Lenders (and their affiliates and their respective officers, directors, employees, advisors and agents) will
have no liability for, and will be indemnified and held harmless against, any losses, claims, damages, liabilities and reasonable and invoiced out-of-pocket expenses (including the reasonable fees, disbursements and other charges of counsel)
incurred in respect of the financing contemplated hereby or the use or the proposed use of proceeds thereof, except to the extent they are found by a final, non-appealable judgment of a court to arise from the gross negligence or willful misconduct
of the relevant indemnified person.

  
 C-4

			
	 Governing Law and Forum:
	  	New York.
		
	 Counsel to the
 Bridge Administrative Agent
 and the Bridge Arrangers:
	  	Cahill Gordon & Reindel LLP.

  
 C-5

 Annex I to Exhibit C 

Summary of Terms and Conditions 
 of Exchange Notes 
 Capitalized terms used but not defined herein have the
meanings given in the Summary of Terms and Conditions of the Bridge Facility to which this Annex I is attached. 
  

			
	 Issuer:
	  	The Borrower will issue senior unsecured Exchange Notes under an indenture that complies with the Trust Indenture Act (the “Indenture”). The Borrower in its
capacity as issuer of the Exchange Notes is referred to as the “Issuer.”
		
	 Guarantors:
	  	Same as the Initial Loans.
		
	 Principal Amount:
	  	The Exchange Notes will be available only in exchange for the Initial Loans on or after the Initial Loan Maturity Date. The principal amount of any Exchange Note will equal 100%
of the aggregate principal amount (including any accrued interest not required to be paid in cash) of the Initial Loan for which it is exchanged. In the case of the initial exchange by Bridge Lenders, the minimum amount of Initial Loans to be
exchanged for Exchange Notes shall equal $50.0 million.
		
	 Maturity:
	  	The Exchange Notes will mature on the eighth anniversary of the Closing Date.
		
	 Interest Rate:
	  	The Exchange Notes will bear interest at the Total Cap (as defined in the Fee Letter).
		
		  	Interest will be payable in arrears at the end of each semi-annual fiscal period.
		
	 Mandatory Redemption:
	  	The Issuer will be required to make an offer to redeem the Exchange Notes (and, if outstanding, prepay the Initial Loans) on a pro rata basis, at par plus
accrued and unpaid interest plus any applicable premiums), from the net cash proceeds (in each case, after deduction of, among other things, amounts required, if any, to repay the Term Facility) of the sale of any assets outside the ordinary
course of business (in each case, subject to exceptions and baskets to be agreed, including, but not limited to, exceptions and baskets comparable to those applicable to the Term Facility). In addition, the Issuer will be required to offer to redeem
the Exchange Notes upon the occurrence of a change of control (which offer shall be at 101% of the principal amount of such Exchange Notes, plus accrued and unpaid interest).
		
	 Optional Redemption:
	  	The Exchange Notes will be (a) non-callable for the first four years from the Initial Loan Maturity Date and (b) thereafter, callable at par plus accrued interest
plus a premium equal to 50% of

			
		  	 the coupon in effect on such Exchange Note, which premium shall decline ratably on each yearly anniversary of the date of such sale
to zero 2 years prior to the maturity of the Exchange Notes; provided that if any Exchange Notes are held by any Commitment Party or its affiliates (other than an asset management affiliate of a Commitment Party purchasing debt securities in
the ordinary course of their business as part of a regular distribution of such debt securities) shall be callable at any time at par plus accrued interest (for as long as such Exchange Notes are so held).

 
 Notwithstanding the above, (i) prior to the fourth anniversary of the Initial Loan
Maturity Date, the Borrower may redeem the Exchange Notes at a make-whole price based on the yield to maturity of U.S. Treasury notes with a maturity closest to the third anniversary of the Initial Loan Maturity Date plus 50 basis points and (ii)
prior to the third anniversary of the Closing Date, the Borrower may redeem up to 35% of the Exchange Notes with proceeds from certain of the Borrower’s equity offerings at a price equal to par plus a premium equal to the coupon on such
Exchange Notes.

		
	 Registration Rights:
	  	The Issuer will file as soon as practicable after the Initial Loan Maturity Date, and will use its commercially reasonable efforts to cause to become effective as soon thereafter
as practicable, a shelf registration statement with respect to the Exchange Notes (a “Shelf Registration Statement”) and/or a registration statement relating to a Registered Exchange Offer (as described below). If a Shelf
Registration Statement is filed, the Issuer will keep such registration statement effective and available (subject to customary exceptions) until it is no longer needed to permit unrestricted resales of Exchange Notes but in no event longer than two
years from the Initial Loan Maturity Date. If within 270 days from the Initial Loan Maturity Date, a Shelf Registration Statement for the Exchange Notes has not been declared effective or the Issuer has not effected an exchange offer (a
“Registered Exchange Offer”) whereby the Issuer has offered registered notes having terms identical to the Exchange Notes (the “Substitute Notes”) in exchange for all outstanding Exchange Notes and Initial Loans (it
being understood that a Shelf Registration Statement is required to be made available in respect of Exchange Notes the holders of which could not receive Substitute Notes through the Registered Exchange Offer that, in the opinion of counsel, would
be freely saleable by such holders without registration or requirement for delivery of a current prospectus under the Securities Act of 1933, as amended (other than a prospectus delivery requirement imposed on a broker-dealer who is exchanging
Exchange Notes acquired for its own account as a result of a market making or other trading activities)), then the Issuer will pay additional interest of 0.25% per annum on the principal amount of the Exchange

  
 -2-

			
		  	Notes to holders thereof who are, or would be, unable freely to transfer Exchange Notes from and including the 271st day after the date of the first issuance of Exchange Notes
(which rate of additional interest shall increase to 0.50% per annum 90 days thereafter) to but excluding the earlier of the effective date of such Shelf Registration Statement or the date of consummation of such Registered Exchange Offer. The
Issuer will also pay such additional interest for any period of time (subject to customary exceptions) following the effectiveness of a Shelf Registration Statement that such Shelf Registration Statement is not available for resales thereunder. In
addition, unless and until the Issuer has consummated the Registered Exchange Offer and, if required, caused the Shelf Registration Statement to become effective, the holders of the Exchange Notes will have the right to “piggy-back” the
Exchange Notes in the registration of any debt securities (subject to customary scale-back provisions) that are registered by the Issuer (other than on a Form S-4) unless all the Exchange Notes and Initial Loans will be redeemed or repaid from
the proceeds of such securities.
		
	 Right to Transfer Exchange Notes:
	  	The holders of the Exchange Notes shall have the absolute and unconditional right to transfer such Exchange Notes in compliance with applicable law to any third
parties.
		
	 Covenants:
	  	Similar to those in an indenture governing a high-yield senior note issue, but modified to include additional restrictions customary in interim facilities (consistent with the
Documentation Considerations).
		
	 Events of Default:
	  	Similar to those in an indenture governing a high-yield senior note issue, but modified to include additional events of default customary in interim facilities (consistent with
the Documentation Considerations).
		
	 Governing Law and Forum:
	  	New York.

  
 -3-

 EXHIBIT D 

The availability of each of the Credit Facilities on the Closing Date shall be subject to the satisfaction of the following conditions.
Capitalized terms used but not defined herein have the meanings given in the Commitment Letter (including the Exhibits thereto). 
 (a) Since December 31, 2009, there shall have been no changes, effects, developments or events that, individually or in the aggregate, have had or would be reasonably be expected to have a Material
Adverse Effect on the Target. For purposes hereof, “Material Adverse Effect” means with respect to any Person (as defined in the Transaction Agreement), any change, effect, development or event that has had or would reasonably be
expected to have a material adverse effect on the financial condition, business, assets, liabilities, or results of operations of such Person and its Subsidiaries (as defined in the Transaction Agreement), taken as a whole; provided, however, that
no change, effect, development or event (by itself or when aggregated or taken together with any and all other changes, effects, developments or events) to the extent resulting from, arising out of, or attributable to, any of the following shall be
deemed to constitute or be taken into account when determining whether a “Material Adverse Effect” has occurred or may, would or could occur: (A) any changes, effects, developments or events in the economy or the financial, credit or
securities markets in general (including changes in interest or exchange rates), (B) any changes, effects, developments or events in the industries in which such Person and its Subsidiaries operate, (C) any changes, effects, developments
or events resulting from the announcement or pendency of the transactions contemplated by the Transaction Agreement, the identity of the Borrower or the performance or compliance with the terms of the Transaction Agreement (including, in each case,
any loss of customers, suppliers or employees or any disruption in business relationships resulting therefrom, but excluding the effects of compliance with Section 5.01 of the Transaction Agreement), (D) any changes, effects, developments
or events resulting from the failure of such Person to meet internal forecasts, budgets or financial projections or fluctuations in the trading price or volume of such Person’s common stock (but not, in each case, the underlying cause of such
failure or fluctuations, unless such underlying cause would otherwise be excepted from this definition), (E) acts of God, natural disasters, calamities, national or international political or social conditions, including the engagement by any
country in hostility (whether commenced before, on or after the date hereof, and whether or not pursuant to the declaration of a national emergency or war), or the occurrence of a military or terrorist attack, or (F) any changes in Applicable
Law or GAAP (each as defined in the Transaction Agreement) (or any interpretation thereof), except to the extent such changes, effects, developments or events resulting from or arising out of the matters described in clauses (A), (B), (E) and
(F) disproportionately affect such Person and its Subsidiaries as compared to other companies operating in the industries in which such Person and its Subsidiaries operate. 

(b) Prior to and during the syndication of the Credit Facilities there shall be no competing offering, placement or
arrangement of any debt securities (including convertible debt securities) (other than the Securities) or bank financing by or on behalf of the Borrower, the Target or any of their respective affiliates. 

(c) The closing of the Credit Facilities on or before the End Date (as defined in the Commitment Letter). 

(d) Receipt by the Borrower and the Target of all governmental and third-party consents referenced in Section 8.02(d)
of the Transaction Agreement required to be obtained in connection with the closing of the Transaction. 

  
 D-1

 (e) Each Loan Party shall have executed and delivered definitive Term
Facility Documentation and ABL Facility Documentation reflecting the terms and conditions hereof and otherwise in a form reasonably satisfactory to the Joint Lead Arrangers. 

(f) In the event the full amount of the Securities are not issued, the Loan Parties shall have executed and delivered
definitive Bridge Facility Documentation reflecting the terms and conditions hereof and otherwise in a form reasonably satisfactory to the Joint Lead Arrangers. 
 (g) The Transaction shall have been consummated in accordance with applicable law. The respective amounts of the sources and uses for the Transaction shall be consistent with the Table set forth in
Schedule I in all material respects. The Transaction shall be consummated in accordance with the Transaction Agreement as in effect on the date hereof without giving effect to any waivers, amendments, supplements or modifications that are in
any respect materially adverse to the Lenders or the Joint Lead Arrangers without approval of the Joint Lead Arrangers (not to be unreasonably withheld or delayed). The existing funded indebtedness and commitments therefor of the Borrower and its
subsidiaries and Target and its subsidiaries shall have been repaid and/or terminated, other than (i) capitalized leases not to exceed $50.0 million, (ii) other indebtedness not to exceed $10.0 million and (iii) intercompany
indebtedness, which, in each case, will remain outstanding after the Closing Date. 
 (h) The Lenders, the
Administrative Agents and the Joint Lead Arrangers shall have received all fees required to be paid, and all out-of-pocket expenses required to be paid for which invoices have been presented, at least one business day before the Closing Date, and
the Borrower shall have complied with all of its other obligations under the Fee Letter. 
 (i) The Lenders shall
have received (i) audited financial statements of the Borrower and the Target for the three most recent fiscal years and (ii) unaudited interim consolidated financial statements of the Borrower and the Target for each quarterly period
ended after the latest fiscal year referred to in clause (i) above and ended at least 45 days prior to the Closing Date. 
 (j) The Lenders shall have received a pro forma consolidated balance sheet of the Borrower and its subsidiaries as at the date of the most recent consolidated balance sheet delivered pursuant to the
preceding paragraph and a pro forma statement of income for the four fiscal quarters most recently ended for which financial statements were delivered to the Lenders pursuant to paragraph (i) above, in each case adjusted to give effect to the
consummation of the Transaction and the financings contemplated hereby as if such transactions, with respect to the pro forma balance sheet, had occurred on such date or with respect to the pro forma statements of income, had occurred on the first
day of the most recently completed fiscal year, prepared in accordance with Regulation S-X of the Securities Act of 1933, as amended (“Regulation S-X) (subject to exceptions customary for an offering under Rule 144A, unless the
Securities are proposed to be offered and sold in a registered offering). 
 (k) The Administrative Agents shall
have received the results of a recent lien search in each relevant jurisdiction with respect to the Borrower and its subsidiaries, and such search shall reveal no liens on any of the assets of the Borrower and its subsidiaries except for liens
permitted under the Credit Facilities or liens to be discharged on or prior to the Closing Date pursuant to documentation reasonably satisfactory to the Administrative Agents. 

(l) Subject to the Closing Date Conditions Provisions, all documents and instruments required to perfect each
Administrative Agent’s security interest in the collateral under the Credit Facilities shall have been executed and be in proper form for filing. 

  
 D-2

 (m) The Administrative Agents shall have received a customary solvency
certificate from the chief financial officer of the Borrower that shall document the solvency of the Borrower and its subsidiaries (on a consolidated basis) after giving effect to the Transaction and the other transactions contemplated hereby.

 (n) The Administrative Agents shall have received (i) such legal opinions (including opinions
(a) from counsel to the Borrower and its subsidiaries, and (b) from such special and local counsel as may be reasonably required by the Administrative Agents), documents and other instruments as are customary for transactions of this type
or as they may reasonably request, in customary form for transactions of this type, and (ii) the result of the Borrowing Base audits and field exams, which shall have been completed prior to the Closing Date. 

(o) As a condition to the availability of the Credit Facilities, (a) the Joint Lead Arrangers shall have received,
not later than 30 consecutive days prior to the Closing Date, a confidential information memorandum (which shall include forecasts of the financial performance of the Borrower and its subsidiaries (x) on an annual basis through 2016 and
(y) on a quarterly basis through 2012) for use in the syndication of the Credit Facilities, and (b) the Joint Lead Arrangers shall have been afforded a period of at least 30 consecutive days; provided that such 30 consecutive day
period shall end prior to August 22, 2011 or commence after September 5, 2011; provided further that, if such 30 consecutive day period either (i) begins prior to May 28, 2011 and ends after May 30, 2011 or (ii) begins
prior to July 2, 2011 and ends after July 5, 2011, such 30 consecutive day period shall be extended by 3 calendar days) upon receipt of the confidential information memorandum described in clause (a) to syndicate the Credit
Facilities. 
 (p) (a) The Borrower shall have delivered (i) preliminary offering memoranda or preliminary
prospectuses and other marketing materials relating to the Securities usable in a customary road show for the applicable Security (which in the case of preliminary offering memoranda or preliminary prospectuses shall include, without limitation,
financial statements, pro forma financial statements, business and other financial data that would be required in a registered offering and other data that would be necessary for the investment bank (the “Investment Bank”) to
receive customary “comfort” (including negative assurance comfort) from auditors of the Target and the Borrower, and shall comply with the rules and regulations (including Regulation S-X, other than Rule 3-10 and 3-16 of Regulation
S-X) of the Securities Act, as amended) (subject to exceptions customary for a Rule 144A offering unless the Securities are proposed to be offered and sold in a registered offering) and (ii) drafts of customary comfort letters by auditors of
the Target and the Borrower which such auditors are prepared to issue upon completion of customary procedures, each in form and substance customary for high yield debt securities offerings (the “Required Offering Information”), and
(b)(i) the Investment Bank shall have been afforded a reasonable period, which shall not be less than 30 consecutive days (provided that such 30 consecutive day period shall end prior to August 22, 2011 or commence after September 5,
2011; provided further that, if such 30 consecutive day period either (i) begins prior to May 28, 2011 and ends after May 30, 2011 or (ii) begins prior to July 2, 2011 and ends after July 5, 2011, such 30 consecutive
day period shall be extended by 3 calendar days), following the receipt of such documentation to attempt to place the Securities with qualified purchasers thereof (it being understood that, if any of the Required Offering Information becomes
“stale” under the applicable provisions of Regulation S-X during any such 30 consecutive day period, then such period shall be deemed not to have occurred and a new 30 consecutive day period shall only commence upon delivery of Required
Offering Information that complies with the applicable provisions of Regulation S-X for each day of such period) and (ii) the Borrower shall have caused its, and shall have used commercially reasonable efforts to cause the Target’s, senior
management and other representatives 

  
 D-3

 
to (A) provide the Investment Bank customary access in connection with business, financial, accounting and legal diligence investigation of the Borrower and the Target and
(B) participate in any “roadshow” in connection with the placement of the Securities during the period set forth in clause (b)(i) above. 
 (q) The Administrative Agents shall have received, at least 5 days prior to the Closing Date, all documentation and other information required by regulatory authorities under applicable “know your
customer” and anti-money laundering rules and regulations, including the PATRIOT Act, to the extent reasonably requested by the Lenders at least 7 days prior to the Closing Date. 

(r) The Borrower shall have used commercially reasonable efforts to obtain, at its expense, corporate credit or family
ratings of the Borrower after giving effect to the Transactions and monitored public ratings of the Term Loan Facility and the Securities from Moody’s Investors Service (“Moody’s”) and Standard & Poor’s
Ratings Group (“S&P”) at least 30 days prior to the Closing Date. The Borrower shall participate actively in the process of securing such ratings, including having senior management of the Borrower, and using commercially
reasonable efforts to have senior management of the Target, meet with such rating agencies. 
 (s) The Specified
Transaction Agreement Representations and Specified Representations shall be accurate. 

  
 D-4Purchase Agreement

 Exhibit 10.1 
 $400,000,000 
 CHAPARRAL ENERGY, INC. 

8  1/4% Senior Notes due 2021 

Purchase Agreement 
 February 7, 2011 
 Wells Fargo Securities, LLC 

As Representative of the several Initial Purchasers 
 listed in Schedule 1 hereto 
 c/o Wells Fargo Securities, LLC 

301 South College Street 
 Charlotte, North
Carolina 28288 
 Ladies and Gentlemen: 
 Chaparral Energy, Inc., a Delaware corporation (the “Company”), proposes to issue and sell to the several Initial Purchasers listed in Schedule 1 hereto (the “Initial
Purchasers”), for whom you are acting as representative (the “Representative”), $400,000,000 principal amount of its
8  1/4% Senior Notes due 2021 (the
“Securities”). The Securities will be issued pursuant to an Indenture to be dated as of February 22, 2011 (the “Indenture”) among the Company, the guarantors listed in Schedule 2 hereto (the
“Guarantors”) and Wells Fargo Bank, National Association, as trustee (the “Trustee”) and will be guaranteed on an unsecured senior basis by each of the Guarantors (the “Guarantees”).

 The Securities will be sold to the Initial Purchasers in a transaction not registered under the Securities Act of
1933, as amended (the “Securities Act”), in reliance upon an exemption therefrom. The Company has prepared a preliminary offering memorandum dated February 7, 2011 (the “Preliminary Offering Memorandum”) and
will prepare an offering memorandum dated the date hereof (the “Offering Memorandum”) setting forth information concerning the Company and the Securities. Copies of the Preliminary Offering Memorandum have been, and copies of the
Offering Memorandum will be, delivered by the Company to the Initial Purchasers pursuant to the terms of this Agreement (as defined in Section 14(g)). The Company hereby confirms that it has authorized the use of the Preliminary Offering
Memorandum, the other Time of Sale Information (as defined below) and the Offering Memorandum in connection with the offering and resale of the Securities by the Initial Purchasers in the manner contemplated by this Agreement. Capitalized terms used
but not defined herein shall have the meanings given to such terms in the Preliminary Offering Memorandum. 
 At or prior to the
time when sales of the Securities were first made (the “Time of Sale”), the following information shall have been prepared (collectively, the “Time of Sale Information”): the Preliminary Offering Memorandum, as
supplemented and amended by the written communications listed on Annex A hereto. 

 Pursuant to the offer to purchase dated February 7, 2011, the Company is offering to
purchase (the “Tender Offer”) any and all of its outstanding 8.500% Senior Notes due 2015 (the “2015 Notes”) and is seeking consents (the “Consent Solicitation”) for proposed amendments and waivers
to the indenture dated as of December 1, 2005, pursuant to which the 2015 Notes are outstanding among the Company, the guarantors party thereto and Wells Fargo Bank, National Association, as trustee (the “2015 Notes
Indenture”). As described in the Time of Sale Information and the Offering Memorandum, proceeds from the issuance and sale of the Securities, shall be used to (i) pay consideration to holders who tender their 2015 Notes in the Tender
Offer and deliver their consents pursuant to the Consent Solicitation, (ii) if necessary, redeem any untendered 2015 Notes in accordance with the terms of the 2015 Notes Indenture, and (iii) pay fees and expenses in connection with the
Tender Offer and Consent Solicitation and the issuance and sale of the Securities. 
 Holders of the Securities (including the
Initial Purchasers and their direct and indirect transferees) will be entitled to the benefits of a Registration Rights Agreement to be dated the Closing Date (as defined below) and substantially in the form attached hereto as Exhibit A (the
“Registration Rights Agreement”), pursuant to which the Company and the Guarantors will agree to file one or more registration statements with the Securities and Exchange Commission (the “Commission”) providing for
the registration under the Securities Act of the Securities or the Exchange Securities referred to (and as defined) in the Registration Rights Agreement. 
 The Company hereby confirms its agreement with the several Initial Purchasers concerning the purchase and resale of the Securities, as follows: 

1. Purchase and Resale of the Securities. 
 (a) The Company agrees to issue and sell the Securities to the several Initial Purchasers as provided in this Agreement, and each Initial Purchaser, agrees, severally and not jointly, to purchase from the
Company, in each case, on the basis of the representations, warranties and agreements set forth herein and subject to the conditions set forth herein, the respective principal amount of Securities set forth opposite such Initial Purchaser’s
name in Schedule 1 hereto at a price equal to 98.0% of the principal amount thereof, plus accrued interest, if any, from February 22, 2011 to the Closing Date. The Company will not be obligated to deliver the Securities except upon
payment for all the Securities to be purchased as provided herein. 
 (b) The Company understands that the Initial Purchasers
intend to offer the Securities for resale on the terms set forth in the Time of Sale Information and the Offering Memorandum. Each Initial Purchaser, severally and not jointly, represents, warrants and agrees that: 

(i) it is a qualified institutional buyer within the meaning of Rule 144A under the Securities Act (a
“QIB”) and an accredited investor within the meaning of Rule 501(a) under the Securities Act; 

  
 2 

 (ii) neither it nor any Person acting on its behalf has solicited offers
for, or offered or sold, or will solicit offers for, or offer or sell, the Securities by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D under the Securities Act (“Regulation
D”) or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act; and 
 (iii) it has not solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Securities as part of their initial offering except: 

(A) within the United States to persons whom it reasonably believes to be QIBs in transactions pursuant to Rule 144A under
the Securities Act (“Rule 144A”) and in connection with each such sale, it has taken or will take reasonable steps to ensure that the purchaser of the Securities is aware that such sale is being made in reliance on Rule 144A; or

 (B) in accordance with the restrictions set forth in Annex C hereto. 

(c) Each Initial Purchaser acknowledges and agrees that the Company and, for purposes of the “no registration” opinions to be
delivered to the Initial Purchasers pursuant to Sections 6(g) and 6(h), McAfee & Taft A Professional Corporation, as counsel for the Company, and Cahill Gordon & Reindel LLP as counsel for the Initial Purchasers,
respectively, may rely upon the accuracy of the representations and warranties of the Initial Purchasers, and compliance by the Initial Purchasers with their agreements, contained in paragraph (b) above (including Annex C hereto),
and each Initial Purchaser hereby consents to such reliance. 
 (d) The Company acknowledges and agrees that the Initial
Purchasers may offer and sell Securities to or through any affiliate of an Initial Purchaser and that any such affiliate may offer and sell Securities purchased by it to or through any Initial Purchaser. 

(e) The Company acknowledges and agrees that the Initial Purchasers are acting solely in the capacity of an arm’s length contractual
counterparty to the Company with respect to the offering of Securities contemplated hereby (including in connection with determining the terms of the offering) and not as a financial advisor or a fiduciary to, or an agent of, the Company or any
other person. Additionally, no Initial Purchaser is advising the Company or any other person as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction. The Company shall consult with its own advisors concerning such
matters and shall be responsible for making their own independent investigation and appraisal of the transactions contemplated hereby, and the Initial Purchasers shall have no responsibility or liability to the Company with respect thereto. Any
review by the Initial Purchasers of the Company, the transactions contemplated hereby or other matters relating to such transactions will be performed solely for the benefit of the Initial Purchasers and shall not be on behalf of the Company.

  
 3 

 2. Payment and Delivery. 

(a) Payment for and delivery of the Securities will be made at the offices of Cahill Gordon & Reindel LLP at
10:00 A.M., New York City time, on February 22, 2011, or at such other time or place on the same or such other date, not later than the fourth business day thereafter, as the Representative and the Company may agree upon in writing. The time
and date of such payment and delivery is referred to herein as the “Closing Date.” 
 (b) Payment for the
Securities shall be made by wire transfer in immediately available funds to the account(s) specified by the Company to the Representative against delivery to the nominee of The Depository Trust Company (“DTC”), for the account of
the Initial Purchasers, of one or more global notes representing the Securities (collectively, the “Global Notes”), with any transfer taxes payable in connection with the sale of the Securities duly paid by the Company. The Global
Notes will be made available for inspection by the Representative not later than 1:00 P.M., New York City time, on the business day prior to the Closing Date. 
 3. Representations and Warranties of the Company and the Guarantors. The Company and the Guarantors jointly and severally represent and warrant to each Initial Purchaser that: 

(a) Preliminary Offering Memorandum, Time of Sale Information and Offering Memorandum. The Preliminary Offering Memorandum, as of
its date, did not, the Time of Sale Information, at the Time of Sale, did not, and at the Closing Date, will not, and, the Offering Memorandum, in the form first used by the Initial Purchasers to confirm sales of the Securities does not and as of
the Closing Date, will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;
provided that the Company and the Guarantors make no representation or warranty with respect to any statements or omissions made in reliance upon and in conformity with information relating to any Initial Purchaser furnished to the Company in
writing by such Initial Purchaser through the Representative expressly for use in the Time of Sale Information or the Offering Memorandum. 
 (b) Additional Written Communications. The Company and the Guarantors (including their agents and representatives, other than the Initial Purchasers in their capacity as such) has not prepared,
made, used, authorized, approved or referred to and will not prepare, make, use, authorize, approve or refer to any written communication that constitutes an offer to sell or solicitation of an offer to buy the Securities (each such communication by
the Company and the Guarantors or their agents and representatives (other than a communication referred to in clauses (i), (ii) and (iii) below) an “Issuer Written Communication”) other than (i) the Preliminary
Offering Memorandum, (ii) the Offering Memorandum, (iii) the document listed on Annex A hereto, including a term sheet substantially in the form of Annex B hereto, which constitutes part of the Time of Sale Information, and
(iv) any electronic road show or other written communications, in each case used in accordance with Section 4(c). Each such Issuer Written Communication, when taken together with the Time of Sale Information, did not, and at the Closing
Date will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that the
Company and the Guarantors make no representation 

  
 4 

 
and warranty with respect to any statements or omissions made in each such Issuer Written Communication in reliance upon and in conformity with information relating to any Initial Purchaser
furnished to the Company in writing by such Initial Purchaser through the Representative expressly for use in any Issuer Written Communication. Each Issuer Written Communication does not conflict with the Time of Sale Information or the Offering
Memorandum. 
 (c) Financial Statements. The historical financial statements and the related notes thereto of the Company
and its consolidated subsidiaries included in each of the Time of Sale Information and the Offering Memorandum present fairly the consolidated financial position of the Company and its subsidiaries as of the dates indicated and the results of their
operations and the changes in their cash flows for the periods specified; such financial statements have been prepared in conformity with generally accepted accounting principles in the United States applied on a consistent basis throughout the
periods covered thereby; the other financial information included in each of the Time of Sale Information and the Offering Memorandum has been derived from the accounting records of the Company and its subsidiaries and presents fairly the
information shown thereby; and the “Summary consolidated historical financial information” and “Selected historical consolidated financial information” set forth in each of the Time of Sale Information and the Offering Memorandum
is accurately presented in all material respects and prepared on a basis consistent with the audited and unaudited historical consolidated financial statements from which it has been derived. 

(d) No Material Adverse Change. Except as disclosed in the Time of Sale Information and the Offering Memorandum, since the date of
the most recent financial statements of the Company included in each of the Time of Sale Information and the Offering Memorandum, (i) there has not been any change in the capital stock or long-term debt of the Company or any of its subsidiaries
(other than borrowings under the ABL Revolving Facility (as defined in Section 14(g)), or any dividend or distribution of any kind declared, set aside for payment, paid or made by the Company on any class of capital stock, or any material
adverse change, or any development involving a prospective material adverse change, in or affecting the business, properties, consolidated financial position, stockholders’ equity or results of operations of the Company and its subsidiaries
taken as a whole; (ii) neither the Company nor any of its subsidiaries has entered into any transaction or agreement other than in the ordinary course of business; and (iii) neither the Company nor any of its subsidiaries has sustained any
loss or interference (including any liability or obligation) with its business, including from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor disturbance or dispute or any action, order or decree of
any court or arbitrator or governmental or regulatory authority that is material to the Company and its subsidiaries, taken as a whole. 
 (e) Organization and Good Standing. The Company and each of its subsidiaries have been duly organized and are validly existing and in good standing under the laws of their respective jurisdictions
of organization, are duly qualified to do business and are in good standing in each other jurisdiction in which their respective ownership or lease of property or the conduct of their respective businesses requires such qualification, and have all
power and authority necessary to own or lease their respective properties and to conduct the businesses in which they are engaged, except where the failure to be so qualified or have such power or authority would not, individually or in the
aggregate, have a material adverse effect on the business, properties, consolidated financial position, stockholders’ equity or results of operations of the Company and its subsidiaries taken as a whole or on the performance

  
 5 

 
by the Company and the Guarantors of their obligations under the Securities and the Guarantees (a “Material Adverse Effect”). The subsidiaries listed in Schedule 2 to this
Agreement are the only direct or indirect subsidiaries of the Company other than Oklahoma Ethanol LLC and Chaparral Biofuels, L.L.C., which will not be Guarantors. The Company does not own, directly or indirectly, equity securities or similar
ownership interests of any entity other than its interests in such subsidiaries. 
 (f) Capitalization. The Company has
an authorized capitalization as set forth in each of the Time of Sale Information and the Offering Memorandum under the heading “Capitalization.” The limited partnership agreements or limited liability company agreements governing all
outstanding limited partnership interests or limited liability company interests of each Guarantor have been validly executed and delivered, and all capital contributions required under such limited partnership agreements or limited liability
company agreements have been paid in full; and, except as otherwise described in each of the Time of Sale Information and the Offering Memorandum, the limited partnership interests or limited liability company interests of each Guarantor are owned
directly or indirectly by the Company, free and clear of any lien, charge, encumbrance or security interest, except as otherwise described in the Time of Sale Information and the Offering Memorandum, including without limitation for liens under or
permitted by the ABL Revolving Facility. 
 (g) Due Authorization. The Company and each of the Guarantors have full
right, power and authority to execute and deliver this Agreement, the Securities, the Indenture (including each Guarantee set forth therein), the Exchange Securities and the Registration Rights Agreement (to the extent a party thereto)
(collectively, the “Transaction Documents”), and to perform their respective obligations hereunder and thereunder; and all action required to be taken for the due and proper authorization, execution and delivery of each of the
Transaction Documents and the consummation of the transactions contemplated by the Transaction Documents has been duly and validly taken. 
 (h) The Indenture. The Indenture has been duly authorized by the Company and each of the Guarantors and, when duly executed and delivered in accordance with its terms by each of the parties
thereto, will constitute a valid and legally binding agreement of the Company and each of the Guarantors enforceable against the Company and each of the Guarantors in accordance with its terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar laws now or hereafter in effect relating to or affecting creditors’ rights generally or by general equitable principles regardless of whether enforcement is
sought in law or equity (collectively, the “Enforceability Exceptions”); and on the Closing Date, the Indenture will conform in all material respects to the requirements of the Trust Indenture Act of 1939, as amended (the
“Trust Indenture Act”), and the rules and regulations of the Commission applicable to an indenture that is qualified thereunder. 
 (i) The Securities and the Guarantees. The Securities have been duly authorized by the Company and, when duly executed, authenticated, issued and delivered as provided in the Indenture and paid for
as provided herein, will be duly and validly issued and outstanding and will constitute valid and legally binding obligations of the Company enforceable against the Company in accordance with their terms, subject to the Enforceability Exceptions,
and will be entitled to the benefits of the Indenture; and the Guarantees have been duly authorized by each of the Guarantors and, when the Securities 

  
 6 

 
have been duly executed, authenticated, issued and delivered as provided in the Indenture and paid for as provided herein, will be valid and legally binding obligations of each of the Guarantors,
enforceable against each of the Guarantors in accordance with their terms, subject to the Enforceability Exceptions, and will be entitled to the benefits of the Indenture. 
 (j) The Exchange Securities. On the Closing Date, the Exchange Securities (including the related guarantees) will have been duly authorized by the Company and each of the Guarantors and, when duly
executed, authenticated, issued and delivered in accordance with the Indenture and as contemplated by the Registration Rights Agreement, will constitute valid and legally binding obligations of the Company, as issuer, and each of the Guarantors, as
guarantor, enforceable against the Company and each of the Guarantors in accordance with their terms, subject to the Enforceability Exceptions, and will be entitled to the benefits of the Indenture. 

(k) Purchase and Registration Rights Agreement. This Agreement has been duly authorized, executed and delivered by the Company and
each of the Guarantors; and the Registration Rights Agreement has been duly authorized by the Company and each of the Guarantors and, when duly executed and delivered in accordance with its terms by each of the parties thereto, will constitute a
valid and legally binding agreement of the Company and each of the Guarantors enforceable against the Company and each of the Guarantors in accordance with its terms, subject to the Enforceability Exceptions, and except that rights to indemnity and
contribution thereunder may be limited by applicable law and public policy. 
 (l) Descriptions of Certain Documents.
Each of the Securities, the Guarantees, the Indenture and the Registration Rights Agreement conforms in all material respects to the descriptions thereof contained in each of the Time of Sale Information and the Offering Memorandum. 

(m) No Violation or Default. Neither the Company nor any of its subsidiaries is (i) in violation of its charter or by-laws or
similar organizational documents; (ii) in default, and no event has occurred that, with notice or lapse of time or both, would constitute such a default, in the due performance or observance of any term, covenant or condition contained in any
indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any of its subsidiaries is a party or by which the Company or any of its subsidiaries is bound or to which any of the property or assets of
the Company or any of its subsidiaries is subject; or (iii) in violation of any law or statute or any judgment, order, rule or regulation of any court or arbitrator or governmental or regulatory authority having jurisdiction over it or its
properties, except, in the case of clauses (ii) and (iii) above, for any such default or violation that would not, individually or in the aggregate, have a Material Adverse Effect. 

(n) No Conflicts. The execution, delivery and performance by the Company and each of the Guarantors of each of the Transaction
Documents to which each is a party, the issuance and sale of the Securities (and the Guarantees) and the consummation of the transactions contemplated by the Transaction Documents (including the Tender Offer and Consent Solicitation) will not
(i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any property or assets of the Company or
any of its subsidiaries pursuant to, any indenture, mortgage, deed of trust, loan 

  
 7 

 
agreement or other agreement or instrument to which the Company or any of its subsidiaries is a party or by which the Company or any of its subsidiaries is bound or to which any of the property
or assets of the Company or any of its subsidiaries is subject (other than liens intended to be created under the ABL Revolving Facility), (ii) result in any violation of the provisions of the charter or by-laws or similar organizational
documents of the Company or any of its subsidiaries or (iii) result in the violation of any law or statute or any judgment, order, rule or regulation of any court or arbitrator or governmental or regulatory authority, except, in the case of
clauses (i) and (iii) above, for any such conflict, breach, violation, default, lien charge or encumbrance that would not, individually or in the aggregate, have a Material Adverse Effect. 

(o) No Consents Required. No consent, approval, authorization, order, registration or qualification of or with any court or
arbitrator or governmental or regulatory authority is required for the execution, delivery and performance by the Company and each of the Guarantors of each of the Transaction Documents to which each is a party, the issuance and sale of the
Securities (and the Guarantees) and the consummation of the transactions contemplated by the Transaction Documents, except for such consents, approvals, authorizations, orders and registrations or qualifications (i) as may be required under
applicable state securities laws in connection with the purchase and resale of the Securities by the Initial Purchasers, (ii) with respect to the Exchange Securities (and the related guarantees) as may be required under the Securities Act and
applicable state securities laws as contemplated by the Registration Rights Agreement, (iii) which have been, or prior to the Closing Date will be, obtained, and (iv) which, if not obtained, would not, individually or in the aggregate,
have a Material Adverse Effect. 
 (p) Legal Proceedings. Except as described in each of the Time of Sale Information and
the Offering Memorandum, there are no legal, governmental or regulatory, actions, suits or proceedings pending to which the Company or any of its subsidiaries is or may be a party or to which any property of the Company or any of its subsidiaries is
or may be the subject that, individually or in the aggregate, if determined adversely to the Company or any of its subsidiaries, could reasonably be expected to have a Material Adverse Effect; to the Company’s and each of the Guarantors’
knowledge, no such actions, suits or proceedings are threatened or contemplated by any governmental or regulatory authority or threatened by others. 
 (q) Independent Accountants. Grant Thornton LLP, who have certified certain financial statements of the Company and its subsidiaries in each of the Time of Sale Information and the Offering
Memorandum, are independent public accountants with respect to the Company and its subsidiaries and are independent public accountants within the meaning of Rule 101 of the Code of Professional Conduct of the American Institute of Certified Public
Accountants and its interpretations and rulings thereunder. 
 (r) Title to Real and Personal Property. The Company and
its subsidiaries have (1) good and defensible title to oil and gas properties owned by the Company and its subsidiaries, (2) good and indefeasable title in fee simple to all other real property owned by the Company and its subsidiaries and
(3) good title to all items of personal property owned by the Company and its subsidiaries, in each case that are material to the respective businesses of the Company and its subsidiaries, free and clear of all liens, encumbrances, claims and
defects and imperfections of title, except (i) those that are described in the each of the Time of Sale Information and the Offering Memorandum, (ii) those under 

  
 8 

 
the ABL Revolving Facility, (iii) those under oil and gas leases, options to lease, operating agreements, utilization and pooling agreements, participation and drilling concessions
agreements and gas sales contracts, securing payment of amounts not yet due and payable and of a scope and nature customary in the oil and gas industry, (iv) those that do not materially interfere with the use made and proposed to be made of
such property by the Company and its subsidiaries or (v) those that could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect; and any real property and buildings held under lease by the Company and
its subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made or proposed to be made of such real property and buildings by the Company or its
subsidiaries. 
 (s) Title to Intellectual Property. The Company and its subsidiaries own or possess or are licensed to
use adequate rights to use all material patents, patent applications, trademarks, service marks, trade names, trademark registrations, service mark registrations, copyrights, licenses and know-how (including trade secrets and other unpatented and/or
unpatentable proprietary or confidential information, systems or procedures) necessary for the conduct of their respective businesses, except where the failure to own, possess or license such rights would not, individually or in the aggregate, have
a Material Adverse Effect; the Company and its subsidiaries have not received any notice of any claim of infringement of or conflict with any such rights of others. 
 (t) Investment Company Act. Neither the Company nor any of its subsidiaries is, and after giving effect to the offering and sale of the Securities and the application of the proceeds thereof as
described in each of the Time of Sale Information and the Offering Memorandum none of them will be, an “investment company” within the meaning of the Investment Company Act of 1940, as amended, and the rules and regulations of the
Commission thereunder (collectively, “Investment Company Act”). 
 (u) Taxes. The Company and its
subsidiaries have paid all federal, state, local and foreign taxes and filed all tax returns required to be paid or filed through the date hereof to the extent that such taxes have become due and are not being contested in good faith with such
exceptions as would not, individually or in the aggregate, result in a Material Adverse Effect; and except as otherwise disclosed in each of the Time of Sale Information and the Offering Memorandum, there is no tax deficiency that has been asserted
against the Company or any of its subsidiaries or any of their respective properties or assets, which has had, nor does the Company have any knowledge of any tax deficiency, which if determined adversely to the Company or its subsidiaries might,
individually or in the aggregate, have a Material Adverse Effect. 
 (v) Licenses and Permits. The Company and its
subsidiaries possess all licenses, certificates, permits and other authorizations issued by, and have made all declarations and filings with, the appropriate federal, state, local or foreign governmental or regulatory authorities that are necessary
for the ownership or lease of their respective properties, the conduct of their respective businesses as described in each of the Time of Sale Information and the Offering Memorandum, except where the failure to possess or make the same would not,
individually or in the aggregate, have a Material Adverse Effect; and except as described in each of the Time of Sale Information and the Offering Memorandum, neither the Company nor any of its subsidiaries has received notice of any revocation or
modification 

  
 9 

 
of any such license, certificate, permit or authorization or has any reason to believe that any such license, certificate, permit or authorization will not be renewed in the ordinary course,
except for notices, modifications or non-renewals as would not, individually or in the aggregate, have a Material Adverse Effect. 
 (w) No Labor Disputes. No labor disturbance by or dispute with employees of the Company or any of its subsidiaries exists or, to the knowledge of the Company and the Guarantors, is contemplated or
threatened, which disturbance or dispute would have a Material Adverse Effect. 
 (x) Compliance With Environmental Laws.
The Company and its subsidiaries (i) are in compliance with any and all applicable federal, state, local and foreign laws, rules, regulations, decisions and orders relating to the protection of human health and safety and the environment
including without limitation those imposing liability or standards of conduct concerning any hazardous or toxic substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”); (ii) have received and are
in compliance with all permits, licenses or other approvals currently required of them under applicable Environmental Laws to conduct their respective businesses; (iii) have not received notice of any actual or potential liability for the
investigation or remediation of any disposal or release of hazardous or toxic substances or wastes, pollutants or contaminants, except in any such case as described in each of the Time of Sale Information and the Offering Memorandum or for any such
failure to comply with, or failure to receive required permits, licenses or approvals, or liability as would not, individually or in the aggregate, have a Material Adverse Effect. None of the Company or any of its subsidiaries has received notice
that it has been identified as a potentially responsible party under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (“CERCLA”), or any comparable state law; and (v) no property or
facility of the Company or any of its subsidiaries is (x) listed or, to the Company’s or any subsidiary’s knowledge, proposed for listing on the National Priorities List under CERCLA or is (y) listed in the Comprehensive
Environmental Response, Compensation, Liability Information System List promulgated pursuant to CERCLA, or on any comparable list maintained by any state or local governmental authority. 

(y) Compliance With ERISA. Each employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”), that is maintained, administered or contributed to by the Company or any of its affiliates for employees or former employees of the Company and its affiliates has been maintained in all
material respects in compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations, including but not limited to ERISA and the Internal Revenue Code of 1986, as amended (the “Code”); no
prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred with respect to any such plan excluding transactions effected pursuant to a statutory or administrative exemption; and for each
such plan that is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA, no “accumulated funding deficiency” as defined in Section 412 of the Code has been incurred, whether or not waived, and the
fair market value of the assets of each such plan (excluding for these purposes accrued but unpaid contributions) exceeds the present value of all benefits accrued under such plan determined using reasonable actuarial assumptions. 

(z) Accounting Controls. The Company and its subsidiaries maintain systems of internal accounting controls sufficient to provide
reasonable assurance that (i) transactions are executed in accordance 

  
 10 

 
with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 
 (aa)
Insurance. The Company and its subsidiaries have insurance covering their respective properties, operations, personnel and businesses, which insurance is in amounts and insures against such losses and risks as are reasonably adequate for the
conduct by the Company and its subsidiaries of their respective businesses as is customary for companies engaged in similar businesses in similar industries; and neither the Company nor any of its subsidiaries has (i) received notice from any
insurer or agent of such insurer that any material capital improvements or other expenditures are required or necessary to be made in order to continue such insurance or (ii) any reason to believe that it will not be able to renew its existing
insurance coverage as and when such coverage expires or to obtain similar coverage at reasonable cost from similar insurers as may be necessary to continue its business. 
 (bb) Solvency. On and immediately after the Closing Date, the Company (after giving effect to the issuance of the Securities and the other transactions related thereto as described in each of the
Time of Sale Information and the Offering Memorandum) will be Solvent. As used in this paragraph, the term “Solvent” means, with respect to a particular date, that on such date (i) the present fair market value (or present fair
saleable value) of the assets of the Company is not less than the total amount required to pay the liabilities of the Company on its total existing debts and liabilities (including contingent liabilities) as they become absolute and matured;
(ii) the Company is able to realize upon its assets and pay its debts and other liabilities, contingent obligations and commitments as they mature and become due in the normal course of business; (iii) assuming consummation of the issuance
of the Securities as contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum, the Company is not incurring debts or liabilities beyond its ability to pay as such debts and liabilities mature; (iv) the Company is
not engaged in any business or transaction, and does not propose to engage in any business or transaction, for which its property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry
in which the Company is engaged; and (v) the Company is not a defendant in any civil action that would result in a judgment that the Company is or would become unable to satisfy. 

(cc) No Restrictions on Subsidiaries. Except for the restrictions applicable to subsidiaries that will not be Guarantors, no
subsidiary of the Company is currently prohibited, directly or indirectly, under any agreement or other instrument to which it is a party or is subject, from paying any dividends to the Company, from making any other distribution on such
subsidiary’s capital stock or similar ownership interest, from repaying to the Company any loans or advances to such subsidiary from the Company or from transferring any of such subsidiary’s properties or assets to the Company or any other
subsidiary of the Company. 
 (dd) No Broker’s Fees. Neither the Company nor any of its subsidiaries is a party to
any contract, agreement or understanding with any person (other than this Agreement) that would give rise to a valid claim against the Company or any of its subsidiaries or any Initial Purchaser for a brokerage commission, finder’s fee or like
payment in connection with the offering and sale of the Securities. 

  
 11 

 (ee) Rule 144A Eligibility. On the Closing Date, the Securities will not be of the
same class as securities listed on a national securities exchange registered under Section 6 of the Exchange Act or quoted in an automated inter-dealer quotation system; and each of the Preliminary Offering Memorandum and the Offering
Memorandum, as of its respective date, contains or will contain all the information that, if requested by a prospective purchaser of the Securities, would be required to be provided to such prospective purchaser pursuant to Rule 144A(d)(4) under the
Securities Act. 
 (ff) No Integration. Neither the Company nor any of its affiliates (as defined in Rule 501(b) of
Regulation D) has, directly or through any agent, sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any security (as defined in the Securities Act), that is or will be integrated with the sale of the Securities
in a manner that would require registration of the Securities under the Securities Act. 
 (gg) No General Solicitation or
Directed Selling Efforts. None of the Company or any of its affiliates or any other person acting on its or their behalf (other than the Initial Purchasers, as to which no representation is made) has (i) solicited offers for, or offered or
sold, the Securities by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act or
(ii) engaged in any directed selling efforts within the meaning of Regulation S under the Securities Act (“Regulation S”), and all such persons have complied with the offering restrictions requirement of Regulation S.

 (hh) Securities Law Exemptions. Assuming the accuracy of the representations and warranties of the Initial Purchasers
contained in Section 1(b) (including Annex C hereto) and their compliance with their agreements set forth therein, it is not necessary, in connection with the issuance and sale of the Securities to the Initial Purchasers and the offer,
resale and delivery of the Securities by the Initial Purchasers in the manner contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum, to register the Securities under the Securities Act or to qualify the Indenture
under the Trust Indenture Act. 
 (ii) No Stabilization. Neither the Company nor any of the Guarantors has taken,
directly or indirectly, any action designed to or that could reasonably be expected to cause or result in any stabilization or manipulation of the price of the Securities. 
 (jj) Margin Rules. Neither the Company nor any of its subsidiaries has taken, and none of them will take, any action that might cause the issuance, sale and delivery of the Securities nor the
application of the proceeds thereof by the Company as described in each of the Time of Sale Information and the Offering Memorandum to violate Regulation T, U or X of the Board of Governors of the Federal Reserve System. 

(kk) Forward-Looking Statements. No forward-looking statement (within the meaning of Section 27A of the Securities Act and
Section 21E of the Exchange Act) contained in any of the Time of Sale Information or the Offering Memorandum has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith. 

  
 12 

 (ll) Statistical and Market Data. Nothing has come to the attention of the Company or
any Guarantor that has caused the Company or any Guarantor to believe that the statistical and market-related data included in each of the Time of Sale Information and the Offering Memorandum is not based on or derived from sources that are reliable
and accurate in all material respects. 
 (mm) No Undisclosed Relationships. No relationship, direct or indirect, exists
between or among the Company or any of its subsidiaries, on the one hand, and the directors, officers, stockholders, customers or suppliers of the Company or any of its subsidiaries, on the other, that is required by the Securities Act to be
described in a prospectus that is not described in each of the Time of Sale Information and the Offering Memorandum and that is not so described therein. 
 (nn) Engineers; Reserve Reports. The information described in the each of Time of Sale Information and the Offering Memorandum regarding the estimated proved reserves of the Company and the
Guarantors is based in part on the reports generated by Cawley, Gillespie & Associates, Inc., Ryder Scott Company, L. P. and Lee Keeling & Associates, Inc., each as independent petroleum engineers with respect to the Company and
the Guarantors (the “Engineers”). The information underlying the estimates of the reserves of the Company and the Guarantors supplied by the Company to the Engineers, for the purposes of preparing the reserve reports of the Company
referenced in each of the Time of Sale Information and the Offering Memorandum (the “Reserve Reports”), was true and correct in all material respects on the date of each such Reserve Report; the estimates of future capital
expenditures and other future exploration and development costs supplied to the Engineers were prepared in good faith and with a reasonable basis; the information provided to the Engineers for purposes of preparing the Reserve Reports was prepared
in all material respects in accordance with customary industry practices; the Engineers were, as of the date of each of the Reserve Reports prepared by them, and are, as of the date hereof, independent petroleum engineers with respect to the Company
and the Guarantors; other than normal production of reserves and intervening spot market product price fluctuations, and except as disclosed in the each of Time of Sale Information and the Offering Memorandum, neither the Company nor any of the
Guarantors is aware of any facts or circumstances that would result in a material decline in the reserves in the aggregate, or the aggregate present value of future net cash flows therefrom, as described in the each of Time of Sale Information and
the Offering Memorandum and as reflected in the Reserve Reports; and the estimates of such reserves and the present value of the future net cash flows therefrom as described in the each of Time of Sale Information and the Offering Memorandum and
reflected in the Reserve Reports comply in all material respects with the Securities Act. 
 (oo) OFAC. None of the
Company, any of its subsidiaries or, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company or any of its subsidiaries is currently subject to any U.S. sanctions administered by the Office of Foreign
Assets Control of the U.S. Department of the Treasury (“OFAC”); and the Company will not directly or indirectly use the proceeds of the offering of the Securities hereunder, or lend, contribute or otherwise make available such
proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC. 

(pp) Compliance with Foreign Corrupt Practices Act. Neither the Company nor any of its subsidiaries nor, to the best knowledge of
the Company and each of the Guarantors, any director, officer, 

  
 13 

 
agent, employee or other person associated with or acting on behalf of the Company or any of its subsidiaries has (i) used any corporate funds for any unlawful contribution, gift,
entertainment or other unlawful expense relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of
any provision of the Foreign Corrupt Practices Act of 1977; or (iv) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment. 
 4. Further Agreements of the Company and the Guarantors. The Company and each of the Guarantors jointly and severally covenant and agree with each Initial Purchaser that: 

(a) Delivery of Copies. The Company will deliver to the Initial Purchasers as many copies of the Preliminary Offering Memorandum,
any other Time of Sale Information, any Issuer Written Communication and the Offering Memorandum (including all amendments and supplements thereto) as the Representative may reasonably request. 

(b) Amendments or Supplements. Before finalizing the Offering Memorandum or making or distributing any amendment or supplement to
any of the Time of Sale Information or the Offering Memorandum, the Company will furnish to the Representative and counsel for the Initial Purchasers a copy of the proposed Offering Memorandum or such amendment or supplement for review, and will not
distribute any such proposed Offering Memorandum, amendment or supplement to which the Representative reasonably objects. 
 (c)
Additional Written Communications. Before making, preparing, using, authorizing, approving or referring to any Issuer Written Communication, the Company will furnish to the Representative and counsel for the Initial Purchasers a copy of such
written communication for review and will not make, prepare, use, authorize, approve or refer to any such written communication to which the Representative reasonably objects. 
 (d) Notice to the Representative. The Company will advise the Representative promptly, and confirm such advice in writing, (i) of the issuance by any governmental or regulatory authority of
any order preventing or suspending the use of any of the Time of Sale Information, any Issuer Written Communication or the Offering Memorandum or the initiation or, to the extent the Company becomes aware, threatening of any proceeding for that
purpose; (ii) of the occurrence of any event at any time prior to the completion of the initial offering of the Securities as a result of which the Preliminary Offering Memorandum or the Offering Memorandum as then amended or supplemented would
include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing when the Preliminary Offering Memorandum or the Offering Memorandum is
delivered to a purchaser, not misleading; (iii) of the occurrence of any event at any time prior to the completion of the initial offering of the Securities as a result of which an Issuer Written Communication would include any untrue statement
of a material fact; and (iv) of the receipt by the Company of any notice with respect to any suspension of the qualification of the Securities for offer and sale in any jurisdiction or the initiation or, to the extent the Company becomes aware,
threatening of any proceeding for such purpose; and the Company will use its commercially reasonable efforts to prevent the issuance of any such order preventing or suspending the use of any of the Time of Sale Information, any Issuer Written
Communication or the Offering Memorandum or suspending any such qualification of the Securities and, if any such order is issued, will obtain as soon as possible the withdrawal thereof. 

  
 14 

 (e) Time of Sale Information. If at any time prior to the Closing Date (i) any
event shall occur or condition shall exist as a result of which any of the Time of Sale Information as then amended or supplemented would include any untrue statement of a material fact or omit to state any material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not misleading or (ii) it is necessary to amend or supplement any of the Time of Sale Information to comply with law, the Company will immediately notify the
Initial Purchasers thereof and forthwith prepare and, subject to paragraph (b) above, furnish to the Initial Purchasers such amendments or supplements to any of the Time of Sale Information as may be necessary so that the statements in any of
the Time of Sale Information as so amended or supplemented will not, in light of the circumstances under which they were made, be misleading or so that any of the Time of Sale Information will comply with law. 

(f) Ongoing Compliance of the Offering Memorandum. If at any time prior to the earlier of (i) 180 days following the Closing
Date and (ii) completion of the initial distribution of the Securities (x) any event shall occur or condition shall exist as a result of which the Offering Memorandum as then amended or supplemented would include any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances existing when the Offering Memorandum is delivered to a purchaser, not misleading
or (y) it is necessary to amend or supplement the Offering Memorandum to comply with law, the Company will immediately notify the Initial Purchasers thereof and forthwith prepare and, subject to paragraph (b) above, furnish to the Initial
Purchasers such amendments or supplements to the Offering Memorandum as may be necessary so that the statements in the Offering Memorandum as so amended or supplemented will not, in the light of the circumstances existing when the Offering
Memorandum is delivered to a purchaser, be misleading or so that the Offering Memorandum will comply with law. 
 (g) Blue
Sky Compliance. The Company will qualify the Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions as the Representative shall reasonably request and will continue such qualifications in effect so long as
required for the offering and resale of the Securities; provided that neither the Company nor any of the Guarantors shall be required to (i) qualify as a foreign corporation or other entity or as a dealer in securities in any such
jurisdiction where it would not otherwise be required to so qualify, (ii) file any general consent to service of process in any such jurisdiction or (iii) subject itself to taxation in any such jurisdiction if it is not otherwise so
subject. 
 (h) Clear Market. During the period from the date hereof through and including the date that is 90 days after
the date hereof, the Company and each of the Guarantors will not, without the prior written consent of the Representative, offer, sell, contract to sell or otherwise dispose of any debt securities issued or guaranteed by the Company or any of the
Guarantors and having a tenor of more than one year. 

  
 15 

 (i) Use of Proceeds. The Company will apply the net proceeds from the sale of the
Securities as described in each of the Time of Sale Information and the Offering Memorandum under the heading “Use of proceeds.” 
 (j) Supplying Information. While the Securities remain outstanding and are “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act, the Company and each of
the Guarantors will, during any period in which the Company is not subject to and in compliance with Section 13 or 15(d) of the Exchange Act, furnish to holders of the Securities and prospective purchasers of the Securities designated by such
holders, upon the request of such holders or such prospective purchasers, the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act. 
 (k) DTC. The Company will assist the Initial Purchasers in arranging for the Securities to be eligible for clearance and settlement through DTC. 

(l) No Resales by the Company. Until the issuance of the Exchange Securities, the Company will not, and will not permit any of its
affiliates (as defined in Rule 144 under the Securities Act) to, resell any of the Securities that have been acquired by any of them, except for Securities purchased by the Company or any of its affiliates and resold in a transaction registered
under the Securities Act. 
 (m) No Integration. None of the Company, any of its affiliates (as defined in Rule 501(b) of
Regulation D) or any person acting on behalf of the Company or such affiliate will, directly or through any agent, sell, offer for sale, solicit offers to buy or otherwise negotiate in respect of, any security (as defined in the Securities Act),
that is or will be integrated with the sale of the Securities in a manner that would require registration of the Securities under the Securities Act. The Company will take all action that is appropriate or necessary to assure that its offerings of
other securities will not be integrated for purposes of the Securities Act with the offering contemplated hereby. 
 (n) No
General Solicitation or Directed Selling Efforts. None of the Company or any of its affiliates or any other person acting on its or their behalf (other than the Initial Purchasers, as to which no covenant is given) will (i) solicit offers
for, or offer or sell, the Securities by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(2) of the
Securities Act or (ii) engage in any directed selling efforts within the meaning of Regulation S, and all such persons will comply with the offering restrictions requirement of Regulation S. 

(o) No Stabilization. Neither the Company nor any of the Guarantors will take, directly or indirectly, any action designed to or
that could reasonably be expected to cause or result in any stabilization or manipulation of the price of the Securities. 
 5.
Certain Agreements of the Initial Purchasers. Each Initial Purchaser hereby represents and agrees that it has not and will not use, authorize use of, refer to, or participate in the planning for use of, any written communication that
constitutes an offer to sell or the solicitation of an offer to buy the Securities other than (i) the Preliminary Offering Memorandum and the Offering Memorandum, (ii) a written communication that contains no “issuer information”
(as defined in Rule 433(h)(2) under 

  
 16 

 
the Securities Act) that was not included (including through incorporation by reference) in the Preliminary Offering Memorandum or the Offering Memorandum, (iii) any written communication
listed on Annex A or prepared pursuant to Section 4(c) above (including any electronic road show), (iv) any written communication prepared by such Initial Purchaser and approved by the Company in advance in writing or (v) any
written communication relating to or that contains the terms of the Securities and/or other information that was included (including through incorporation by reference) in the Preliminary Offering Memorandum or the Offering Memorandum. 

6. Conditions of Initial Purchasers’ Obligations. The obligation of each Initial Purchaser to purchase Securities on the
Closing Date as provided herein is subject to the performance by the Company and each of the Guarantors of their respective covenants and other obligations hereunder and to the following additional conditions: 

(a) Representations and Warranties. The representations and warranties of the Company and the Guarantors contained herein shall be
true and correct on the date hereof and on and as of the Closing Date; and the statements of the Company, the Guarantors and their respective officers made in any certificates delivered pursuant to this Agreement shall be true and correct on and as
of the Closing Date. 
 (b) No Downgrade. Subsequent to the earlier of (A) the Time of Sale and (B) the
execution and delivery of this Agreement, (i) no downgrading shall have occurred in the rating accorded the Securities or any other debt securities or preferred stock issued or guaranteed by the Company or any of the Guarantors by any
“nationally recognized statistical rating organization”, as such term is defined by the Commission for purposes of Rule 436(g)(2) under the Securities Act; and (ii) no such organization shall have publicly announced that it has under
surveillance or review, or has changed its outlook with respect to, its rating of the Securities or of any other debt securities or preferred stock issued or guaranteed by the Company or any of the Guarantors (other than an announcement with
positive implications of a possible upgrading). 
 (c) No Material Adverse Change. Subsequent to the execution and
delivery of this Agreement, no event or condition of a type described in Section 3(d) hereof shall have occurred or shall exist, which event or condition is not described in each of the Time of Sale Information (excluding any amendment or
supplement thereto) and the Offering Memorandum (excluding any amendment or supplement thereto) the effect of which in the judgment of Wells Fargo Securities, LLC makes it impracticable or inadvisable to proceed with the offering, sale or delivery
of the Securities on the terms and in the manner contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum. 
 (d) Officers’ Certificate. The Representative shall have received on and as of the Closing Date a certificate of the chief executive officer, the chief financial officer and the general
counsel of the Company (i) confirming that such officers have carefully reviewed the Time of Sale Information and the Offering Memorandum and, to the best knowledge of such officers, the representations set forth in Sections 3(a) and 3(b)
hereof are true and correct, (ii) confirming that the other representations and warranties of the Company and the Guarantors in this Agreement are true and correct and that the Company and the Guarantors have complied with all agreements and
satisfied all conditions on their 

  
 17 

 
part to be performed or satisfied hereunder at or prior to the Closing Date, (iii) to the effect set forth in paragraphs (b) and (c) above and (iv) that, to the knowledge of
such officers, the statements of the Company and its officers made in any certificates delivered pursuant to this Agreement are true and correct on and as of the Closing Date. 
 (e) Comfort Letters. On the date of this Agreement and on the Closing Date, Grant Thornton LLP shall have furnished to the Representative, at the request of the Company, letters, dated the
respective dates of delivery thereof and addressed to the Initial Purchasers, in form and substance reasonably satisfactory to the Representative, containing statements and information of the type customarily included in accountants’
“comfort letters” to initial purchasers with respect to the financial statements and certain financial information of the Company and its subsidiaries contained in each of the Time of Sale Information and the Offering Memorandum;
provided that the letter delivered on the Closing Date shall use a “cut-off” date no more than three business days prior to such Closing Date. 
 (f) Reserve Engineer Letters. The Initial Purchasers shall have received letters, dated the Closing Date and addressed to the Initial Purchasers, from Cawley, Gillespie & Associates, Inc.,
Ryder Scott Company, L. P. and Lee Keeling & Associates, Inc., each an independent petroleum engineering firm for the Company, in form and substance reasonably satisfactory to the Representative and counsel for the Initial Purchasers.

 (g) Opinion of Counsel for the Company. McAfee & Taft A Professional Corporation, counsel for the Company,
and Robert W. Kelly II, Esq., General Counsel of the Company, shall have furnished to the Representative, at the request of the Company, their written opinion (and a negative assurance letter, in the case of McAfee & Taft, P.C.), dated the
Closing Date and addressed to the Initial Purchasers, in form and substance reasonably satisfactory to the Representative, to the effect set forth in Annexes D-1 and D-2, respectively, hereto. 

(h) Opinion of Counsel for the Initial Purchasers. The Representative shall have received on and as of the Closing Date an opinion
and negative assurance letter of Cahill Gordon & Reindel LLP, counsel for the Initial Purchasers, with respect to such matters as the Initial Purchasers may reasonably request, and such counsel shall have received such
documents and information as they may reasonably request to enable them to pass upon such matters. 
 (i) No Legal Impediment
to Issuance. No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any federal, state or foreign governmental or regulatory authority that would, as of the Closing Date, prevent
the issuance or sale of the Securities or the issuance of the Guarantees; and no injunction or order of any federal, state or foreign court shall have been issued that would, as of the Closing Date, prevent the issuance or sale of the Securities or
the issuance of the Guarantees. 
 (j) Good Standing. The Representative shall have received on and as of the Closing
Date satisfactory evidence of the good standing of the Company and its subsidiaries in their respective jurisdictions of organization and their good standing in such other jurisdictions as the Representative may reasonably request, in each case in
writing or any standard form of telecommunication, from the appropriate governmental authorities of such jurisdictions. 

  
 18 

 (k) Registration Rights Agreement. The Representative shall have received a
counterpart of the Registration Rights Agreement that shall have been executed and delivered by a duly authorized officer of the Company and each of the Guarantors. 
 (l) DTC. The Securities shall be eligible for clearance and settlement through DTC. 
 (m) Tender Offer. Substantially concurrently with the Closing Date, the Company shall have given notice to the trustee under the 2015 Notes Indenture of the Company’s election to redeem all of
the 2015 Notes that remain outstanding following the consummation of the Tender Offer and Consent Solicitation. 
 (n)
Additional Documents. On or prior to the Closing Date, the Company and the Guarantors shall have furnished to the Representative such further certificates and documents as the Representative may reasonably request. 

All opinions, letters, certificates and evidence mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with
the provisions hereof only if they are in form and substance reasonably satisfactory to counsel for the Initial Purchasers. 

7. Indemnification and Contribution. 
 (a) Indemnification of the Initial Purchasers. The Company and each of the Guarantors jointly and severally agree to indemnify and hold harmless each Initial Purchaser, its affiliates, directors
and officers and each person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) such Initial Purchaser, from and against any and all losses, claims, damages and liabilities
(including, without limitation, reasonable legal fees and other expenses incurred in connection with any suit, action or proceeding or any claim asserted, as such fees and expenses are incurred), joint or several, that arise out of, or are based
upon, any untrue statement or alleged untrue statement of a material fact contained in the Preliminary Offering Memorandum, any of the other Time of Sale Information, any Issuer Written Communication or the Offering Memorandum (or any amendment or
supplement thereto) or any omission or alleged omission to state in the Time of Sale Information or the Offering Memorandum a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, except insofar as such losses, claims, damages or liabilities arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon
and in conformity with any information relating to any Initial Purchaser furnished to the Company in writing by such Initial Purchaser through the Representative expressly for use therein, it being understood and agreed that the only such
information furnished by any Initial Purchaser consists of the information described as such in subsection (b) below. 

(b) Indemnification of the Company. Each Initial Purchaser agrees, severally and not jointly, to indemnify and hold harmless the
Company, each of the Guarantors, their respective directors and officers and each person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) the Company or any of the Guarantors
to the same extent as the indemnity set forth in paragraph (a) above, but only with respect to any losses, claims, damages 

  
 19 

 
or liabilities that arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any information
furnished to the Company in writing by such Initial Purchaser through the Representative expressly for use in the Preliminary Offering Memorandum, any of the other Time of Sale Information, any Issuer Written Communication or the Offering Memorandum
(or any amendment or supplement thereto), it being understood and agreed that the only such information consists of the following: the information contained in the fourth sentence of the eleventh paragraph and the thirteenth paragraph under the
caption “Plan of distribution” in the Preliminary Offering Memorandum and the Offering Memorandum. 
 (c) Notice
and Procedures. If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against any person in respect of which indemnification may be sought pursuant to either
paragraph (a) or (b) above, such person (the “Indemnified Person”) shall promptly notify the person against whom such indemnification may be sought (the “Indemnifying Person”) in writing; provided
that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have under paragraph (a) or (b) above except to the extent that it has been materially prejudiced (through the forfeiture of substantive
rights or defenses) by such failure; and provided, further, that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have to an Indemnified Person otherwise than under paragraph (a) or
(b) above. If any such proceeding shall be brought or asserted against an Indemnified Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel reasonably satisfactory to the Indemnified
Person to represent the Indemnified Person and any others entitled to indemnification pursuant to this Section 7 that the Indemnifying Person may designate in such proceeding and shall pay the reasonable fees and expenses of such counsel
related to such proceeding, as incurred. In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the
Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the Indemnifying Person has failed within a reasonable time to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the
Indemnified Person shall have reasonably concluded that there may be legal defenses available to it that are different from or in addition to those available to the Indemnifying Person; or (iv) the named parties in any such proceeding
(including any impleaded parties) include both the Indemnifying Person and the Indemnified Person and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is
understood and agreed that the Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any reasonably
necessary local counsel) for all Indemnified Persons, and that all such reasonable fees and expenses shall be paid or reimbursed as they are incurred. Any such separate firm for any Initial Purchaser, its affiliates, directors and officers and any
control persons of such Initial Purchaser shall be designated in writing by Wells Fargo Securities, LLC and any such separate firm for the Company, the Guarantors, their respective directors and officers and any control persons of the Company and
the Guarantors shall be designated in writing by the Company. The Indemnifying Person shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for
the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified Person from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified Person

  
 20 

 
shall have requested that an Indemnifying Person reimburse the Indemnified Person for fees and expenses of counsel as contemplated by this paragraph, the Indemnifying Person shall be liable for
any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 45 days after receipt by the Indemnifying Person of such request and (ii) the Indemnifying Person shall not have
reimbursed the Indemnified Person in accordance with such request prior to the date of such settlement. No Indemnifying Person shall, without the written consent of the Indemnified Person, effect any settlement of any pending or threatened
proceeding in respect of which any Indemnified Person is or could have been a party and indemnification could have been sought hereunder by such Indemnified Person, unless such settlement (x) includes an unconditional release of such
Indemnified Person, in form and substance reasonably satisfactory to such Indemnified Person, from all liability on claims that are the subject matter of such proceeding and (y) does not include any statement as to or any admission of fault,
culpability or a failure to act by or on behalf of any Indemnified Person. 
 (d) Contribution. If the indemnification
provided for in paragraphs (a) and (b) above is unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu
of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the
relative benefits received by the Company and the Guarantors on the one hand and the Initial Purchasers on the other from the offering of the Securities or (ii) if the allocation provided by clause (i) is not permitted by applicable law,
in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) but also the relative fault of the Company and the Guarantors on the one hand and the Initial Purchasers on the other in connection with
the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company and the Guarantors on the one hand and the Initial
Purchasers on the other shall be deemed to be in the same respective proportions as the net proceeds (before deducting expenses) received by the Company from the sale of the Securities and the total discounts and commissions received by the Initial
Purchasers in connection therewith, as provided in this Agreement, bear to the aggregate offering price of the Securities. The relative fault of the Company and the Guarantors on the one hand and the Initial Purchasers on the other shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or any Guarantor or by the
Initial Purchasers and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. 
 (e) Limitation on Liability. The Company, the Guarantors and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 7 were determined by
pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in paragraph (d) above.
The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities referred to in paragraph (d) above shall be deemed to include, subject to the limitations set forth above, any legal or other
expenses reasonably incurred by such Indemnified Person in connection with any such action or claim. Notwithstanding the provisions of this Section 7, 

  
 21 

 
in no event shall an Initial Purchaser be required to contribute any amount in excess of the amount by which the total discounts and commissions received by such Initial Purchaser with respect to
the offering of the Securities exceeds the amount of any damages that such Initial Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Initial Purchasers’ obligations to contribute
pursuant to this Section 7 are several in proportion to their respective purchase obligations hereunder and not joint. 

(f) Non-Exclusive Remedies. The remedies provided for in this Section 7 are not exclusive and shall not limit any rights or
remedies that may otherwise be available to any Indemnified Person at law or in equity. 
 8. Termination. This Agreement
may be terminated in the absolute discretion of Wells Fargo Securities, LLC, by notice to the Company, if after the execution and delivery of this Agreement and prior to the Closing Date (i) trading generally shall have been suspended or
materially limited on or by any of the New York Stock Exchange, the American Stock Exchange, the Nasdaq National Market or the over-the-counter market; (ii) trading of any securities issued or guaranteed by the Company or any of the Guarantors
shall have been suspended on any exchange or in any over-the-counter market; (iii) a general moratorium on commercial banking activities shall have been declared by federal or New York State authorities; or (iv) there shall have occurred
any outbreak or escalation of hostilities or any change in financial markets or any calamity or crisis, either within or outside the United States, that, in the judgment of Wells Fargo Securities, LLC, is material and adverse and makes it
impracticable or inadvisable to proceed with the offering, sale or delivery of the Securities on the terms and in the manner contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum. 

9. Defaulting Initial Purchaser. 
 (a) If, on the Closing Date, any Initial Purchaser defaults on its obligation to purchase the Securities that it has agreed to purchase hereunder, the non-defaulting Initial Purchasers may in their
discretion arrange for the purchase of such Securities by other persons satisfactory to the Company on the terms contained in this Agreement. If, within 36 hours after any such default by any Initial Purchaser, the non-defaulting Initial Purchasers
do not arrange for the purchase of such Securities, then the Company shall be entitled to a further period of 36 hours within which to procure other persons satisfactory to the non-defaulting Initial Purchasers to purchase such Securities on such
terms. If other persons become obligated or agree to purchase the Securities of a defaulting Initial Purchaser, either the non-defaulting Initial Purchasers or the Company may postpone the Closing Date for up to five full business days in order to
effect any changes that in the opinion of counsel for the Company or counsel for the Initial Purchasers may be necessary in the Time of Sale Information, the Offering Memorandum or in any other document or arrangement, and the Company agrees to
promptly prepare any amendment or supplement to the Time of Sale Information or the Offering Memorandum that effects any such changes. As used in this Agreement, the term “Initial Purchaser” includes, for all purposes of this
Agreement unless the context otherwise requires, any person not listed in Schedule 1 hereto that, pursuant to this Section 9, purchases Securities that a defaulting Initial Purchaser agreed but failed to purchase. 

  
 22 

 (b) If, after giving effect to any arrangements for the purchase of the Securities of a
defaulting Initial Purchaser or Initial Purchasers by the non-defaulting Initial Purchasers and the Company as provided in paragraph (a) above, the aggregate principal amount of such Securities that remains unpurchased does not exceed
one-eleventh of the aggregate principal amount of all the Securities, then the Company shall have the right to require each non-defaulting Initial Purchaser to purchase the principal amount of Securities that such Initial Purchaser agreed to
purchase hereunder plus such Initial Purchaser’s pro rata share (based on the principal amount of Securities that such Initial Purchaser agreed to purchase hereunder) of the Securities of such defaulting Initial Purchaser or
Initial Purchasers for which such arrangements have not been made. 
 (c) If, after giving effect to any arrangements for the
purchase of the Securities of a defaulting Initial Purchaser or Initial Purchasers by the non-defaulting Initial Purchasers and the Company as provided in paragraph (a) above, the aggregate principal amount of such Securities that remains
unpurchased exceeds one-eleventh of the aggregate principal amount of all the Securities, or if the Company shall not exercise the right described in paragraph (b) above, then this Agreement shall terminate without liability on the part of the
non-defaulting Initial Purchasers. Any termination of this Agreement pursuant to this Section 9 shall be without liability on the part of the Company or the Guarantors, except that the Company and each of the Guarantors will continue to be
liable for the payment of expenses as set forth in Section 10 hereof and except that the provisions of Section 7 hereof shall not terminate and shall remain in effect. 

(d) Nothing contained herein shall relieve a defaulting Initial Purchaser of any liability it may have to the Company, the Guarantors or
any non-defaulting Initial Purchaser for damages caused by its default. 
 10. Payment of Expenses. 

(a) Whether or not the transactions contemplated by this Agreement are consummated or this Agreement is terminated, the Company and each
of the Guarantors jointly and severally agree to pay or cause to be paid all costs and expenses incident to the performance of their respective obligations hereunder, including without limitation, (i) the costs incident to the authorization,
issuance, sale, preparation and delivery of the Securities and any taxes payable in that connection; (ii) the costs incident to the preparation and printing of the Preliminary Offering Memorandum, any other Time of Sale Information, any Issuer
Written Communication and the Offering Memorandum (including any amendment or supplement thereto) and the distribution thereof; (iii) the costs of reproducing and distributing each of the Transaction Documents; (iv) the fees and expenses
of the Company’s and the Guarantors’ counsel and independent accountants; (v) the fees and expenses incurred in connection with the registration or qualification and determination of eligibility for investment of the Securities under
the laws of such jurisdictions as the Representative may designate and the preparation, printing and distribution of a Blue Sky Memorandum (including the related fees and reasonable expenses of counsel for the Initial Purchasers), (vi) any fees
charged by rating agencies for rating the Securities; (vii) the fees and expenses of the Trustee and any paying agent (including related fees and expenses of any counsel to such parties);
(viii)

  
 23 

 
all expenses and application fees incurred in connection with the approval of the Securities for book-entry transfer by DTC; and (ix) all expenses incurred by the Company in connection with
any “road show” presentation to potential investors. 
 (b) If (i) the Company for any reason fails to tender the
Securities for delivery to the Initial Purchasers or (ii) the Initial Purchasers decline to purchase the Securities for any reason permitted under this Agreement other than a termination pursuant to Section 8(i), 8(iii) or 8(iv), the
Company and each of the Guarantors jointly and severally agree to reimburse the Initial Purchasers for all out-of-pocket costs and expenses (including the fees and expenses of their counsel) reasonably incurred by the Initial Purchasers in
connection with this Agreement and the offering contemplated hereby. 
 11. Persons Entitled to Benefit of Agreement.
This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and any controlling persons referred to herein, and the affiliates, officers and directors of each Initial Purchaser referred to in
Section 7 hereof. Nothing in this Agreement is intended or shall be construed to give any other person any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision contained herein. No purchaser of
Securities from any Initial Purchaser shall be deemed to be a successor merely by reason of such purchase. 
 12.
Survival. The respective indemnities, rights of contribution, representations, warranties and agreements of the Company, the Guarantors and the Initial Purchasers contained in this Agreement or made by or on behalf of the Company, the
Guarantors or the Initial Purchasers pursuant to this Agreement or any certificate delivered pursuant hereto shall survive the delivery of and payment for the Securities and shall remain in full force and effect, regardless of any termination of
this Agreement or any investigation made by or on behalf of the Company, the Guarantors or the Initial Purchasers. 
 13.
Certain Defined Terms. For purposes of this Agreement, (a) except where otherwise expressly provided, the term “affiliate” has the meaning set forth in Rule 405 under the Securities Act; (b) the term “business
day” means any day other than a day on which banks are permitted or required to be closed in New York City; and (c) the term “subsidiary” has the meaning set forth in Rule 405 under the Securities Act. 

14. Miscellaneous. 
 (a) Authority of the Representative. Any action by the Initial Purchasers hereunder may be taken by Wells Fargo Securities, LLC on behalf of the Initial Purchasers, and any such action taken by
Wells Fargo Securities, LLC shall be binding upon the Initial Purchasers. 
 (b) Notices. All notices and other
communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or transmitted and confirmed by any standard form of telecommunication. Notices to the Initial Purchasers shall be given to the Representative c/o
Wells Fargo Securities, LLC, 301 South College Street, Charlotte, North Carolina 28288-0604, Attention: Peter Daniel, with a copy to Cahill Gordon & Reindel LLP, 80 Pine Street, New York, New York, Attention: Doug Horowitz, Esq. Notices to
the Company shall be given to it at 701 Cedar Lake Boulevard, Oklahoma City, Oklahoma 73114 (fax: (405) 478-2906); Attention: General Counsel. 

  
 24 

 (c) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York. 
 (d) Counterparts. This Agreement may be signed in counterparts (which may
include counterparts delivered by any standard form of telecommunication), each of which shall be an original and all of which together shall constitute one and the same instrument. 

(e) Amendments or Waivers. No amendment or waiver of any provision of this Agreement, nor any consent or approval to any departure
therefrom, shall in any event be effective unless the same shall be in writing and signed by the parties hereto. 
 (f)
Headings. The headings herein are included for convenience of reference only and are not intended to be part of, or to affect the meaning or interpretation of, this Agreement. 

(g) Definitions. The terms that follow, when used in this Agreement, shall have the meanings indicated. 

“ABL Revolving Facility” shall mean that certain eighth restated senior secured asset-based revolving credit facility of
the Company, dated as of April 12, 2010, by and among the borrowers party thereto, including the Company, and JPMorgan Chase Bank, N.A., as Administrative Agent, as amended to the date hereof. 

“Agreement” shall mean this purchase agreement. 

  
 25 

 If the foregoing is in accordance with your understanding, please indicate your acceptance
of this Agreement by signing in the space provided below. 
  

			
	Very truly yours,
	
	CHAPARRAL ENERGY, INC.
		
	By:	 	 /s/ Mark A. Fischer

		 	Name: Mark A. Fischer
		 	Title: Chief Executive Officer and President
	
	CHAPARRAL ENERGY, L.L.C.
		
	By:	 	 /s/ Mark A. Fischer

		 	Name: Mark A. Fischer
		 	Title: Manager
	
	NORAM PETROLEUM, L.L.C.
		
	By:	 	 /s/ Mark A. Fischer

		 	Name: Mark A. Fischer
		 	Title: Manager
	
	CHAPARRAL RESOURCES, L.L.C.
		
	By:	 	 /s/ Mark A. Fischer

		 	Name: Mark A. Fischer
		 	Title: Manager

  
 26 

 
			
	CHAPARRAL CO2, L.L.C.
		
	By:	 	 /s/ Mark A. Fischer

		 	Name: Mark A. Fischer
		 	Title: Manager
	
	CHAPARRAL REAL ESTATE, L.L.C.
		
	By:	 	 /s/ Mark A. Fischer

		 	Name: Mark A. Fischer
		 	Title: Manager
	
	CEI ACQUISITION, L.L.C.
		
	By:	 	 /s/ Mark A. Fischer

		 	Name: Mark A. Fischer
		 	Title: Manager
	
	CEI PIPELINE, L.L.C.
		
	By:	 	 /s/ Mark A. Fischer

		 	Name: Mark A. Fischer
		 	Title: Manager
	
	GREEN COUNTRY SUPPLY, INC.
		
	By:	 	 /s/ Mark A. Fischer

		 	Name: Mark A. Fischer
		 	Title: President

  
 27 

 
			
	CHAPARRAL EXPLORATION, L.L.C.
		
	By:	 	 /s/ Mark A. Fischer

		 	Name: Mark A. Fischer
		 	Title: Manager
	
	ROADRUNNER DRILLING, L.L.C.
		
	By:	 	 /s/ Mark A. Fischer

		 	Name: Mark A. Fischer
		 	Title: Manager

  
 28 

			
	WELLS FARGO SECURITIES, LLC
	
	 For itself and on behalf of the several
 Initial Purchasers listed in Schedule 1 hereto.

		
	By	 	 /s/ Authorized Signatory

		 	Authorized Signatory

  
 29 

 Schedule 1 
  

					
	 Initial Purchaser
	  	Principal Amount	 
		
	 Wells Fargo Securities, LLC
	  	$	120,000,000	  
	 J.P. Morgan Securities LLC
	  	$	49,000,000	  
	 Credit Suisse Securities (USA) LLC
	  	$	49,000,000	  
	 RBC Capital Markets, LLC
	  	$	49,000,000	  
	 UBS Securities LLC
	  	$	49,000,000	  
	 Capital One Southcoast, Inc.
	  	$	15,000,000	  
	 Credit Agricole Securities (USA) Inc.
	  	$	15,000,000	  
	 SG Americas Securities, LLC
	  	$	15,000,000	  
	 Scotia Capital (USA) Inc.
	  	$	6,500,000	  
	 Lloyds TSB Bank plc
	  	$	6,500,000	  
	 Comerica Securities, Inc.
	  	$	6,500,000	  
	 Natixis Securities North America Inc.
	  	$	6,500,000	  
	 Mitsubishi UFJ Securities (USA), Inc.
	  	$	6,500,000	  
	 U.S. Bancorp Investments, Inc.
	  	$	6,500,000	  
		  	 	 	 
		
	 Total
	  	$	400,000,000	  

 Schedule 2 
 Guarantors 
  

			
	 Name of Subsidiary
	  	 Jurisdiction of Incorporation or Organization

		
	Chaparral Energy, L.L.C.	  	Oklahoma
		
	NorAm Petroleum, L.L.C.	  	Oklahoma
		
	Chaparral Resources, L.L.C.	  	Oklahoma
		
	Chaparral CO2, L.L.C.	  	Oklahoma
		
	Chaparral Real Estate, L.L.C.	  	Oklahoma
		
	CEI Acquisition, L.L.C.	  	Delaware
		
	Green Country Supply, Inc.	  	Oklahoma
		
	CEI Pipeline, L.L.C.	  	Texas
		
	Chaparral Exploration, L.L.C.	  	Delaware
		
	Roadrunner Drilling, L.L.C.	  	Oklahoma

 ANNEX A 
 Additional Time of Sale Information 
 1. Term sheet containing the terms of
the Securities, substantially in the form of Annex B. 

 ANNEX B 
 Form of 
 Pricing Term Sheet for 

the Securities 
 To be provided under separate cover. 

 ANNEX C 
 Restrictions on Offers and Sales Outside the United States 
 In connection
with offers and sales of Securities outside the United States: 
 (a) Each Initial Purchaser acknowledges that the Securities
have not been registered under the Securities Act and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in transactions not subject to, the registration
requirements of the Securities Act. 
 (b) Each Initial Purchaser, severally and not jointly, represents, warrants and agrees
that: 
 (i) Such Initial Purchaser has offered and sold the Securities, and will offer and sell the Securities,
(A) as part of their distribution at any time and (B) otherwise until 40 days after the later of the commencement of the offering of the Securities and the Closing Date, only in accordance with Regulation S under the Securities Act
(“Regulation S”) or Rule 144A or any other available exemption from registration under the Securities Act. 
 (ii) None of such Initial Purchaser or any of its affiliates or any other person acting on its or their behalf has engaged or will engage in any directed selling efforts with respect to the Securities,
and all such persons have complied and will comply with the offering restrictions requirement of Regulation S. 

(iii) At or prior to the confirmation of sale of any Securities sold in reliance on Regulation S, such Initial Purchaser
will have sent to each distributor, dealer or other person receiving a selling concession, fee or other remuneration that purchases Securities from it during the distribution compliance period a confirmation or notice to substantially the following
effect: 
 “The Securities covered hereby have not been registered under the U.S. Securities Act of 1933, as amended (the
“Securities Act”), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (i) as part of their distribution at any time or (ii) otherwise until 40 days after the later
of the commencement of the offering of the Securities and the date of original issuance of the Securities, except in accordance with Regulation S or Rule 144A or any other available exemption from registration under the Securities Act. Terms used
above have the meanings given to them by Regulation S.” 
 (iv) Such Initial Purchaser has not and will not
enter into any contractual arrangement with any distributor with respect to the distribution of the Securities, except with its affiliates or with the prior written consent of the Company. 
 Terms used in paragraph (a) and this paragraph (b) and not otherwise defined in this Agreement have the meanings given to them by Regulation S. 

 (c) In relation to each Member State of the European Economic Area which has implemented the
Prospectus Directive (each, a “Relevant Member State”), each initial purchaser has represented and agreed that with effect from and including the date on which the Prospectus Directive is implemented in that Relevant Member State (the
“Relevant Implementation Date”) it has not made and will not make an offer of Notes which are the subject of the offering contemplated by this Offering Circular to the public in that Relevant Member State other than: 

(i) to any legal entity which is a qualified investor as defined in the Prospectus Directive; 

(ii) to fewer than 100 or, if the Relevant Member State has implemented the relevant provision of the 2010 PD Amending
Directive, 150, natural or legal persons (other than qualified investors as defined in the Prospectus Directive), as permitted under the Prospectus Directive, subject to obtaining the prior consent of the relevant Dealer or Dealers nominated by the
Issuer for any such offer; or 
 (iii) in any other circumstances falling within Article 3(2) of the Prospectus
Directive, 
 provided that no such offer of Notes shall require the Issuer or any initial purchaser to publish a prospectus pursuant to Article
3 of the Prospectus Directive. 
 For the purposes of this provision, the expression an “offer of Notes to the public” in relation to
any Notes in any Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and the Notes to be offered so as to enable an investor to decide to purchase or subscribe the Notes, as
the same may be varied in that Member State by any measure implementing the Prospectus Directive in that Member State, the expression “Prospectus Directive” means Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending
Directive, to the extent implemented in the Relevant Member State), and includes any relevant implementing measure in the Relevant Member State and the expression “2010 PD Amending Directive” means Directive 2010/73/EU. 

Each initial purchaser has represented and agreed that: 
 (i) (a) it is a person whose ordinary activities involve it in acquiring, holding, managing or disposing of investments (as principal or agent) for the purposes of its business and (b) it has not
offered or sold and will not offer or sell the Notes other than to persons whose ordinary activities involve them in acquiring, holding, managing or disposing of investments (as principal or as agent) for the purposes of their businesses or who it
is reasonable to expect will acquire, hold, manage or dispose of investments (as principal or agent) for the purposes of their businesses where the issue of the Notes would otherwise constitute a contravention of Section 19 of the FSMA by the
Issuer; 
 (ii) it has only communicated or caused to be communicated and will only communicate or cause to be
communicated an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the FSMA) received by it in connection with the issue or sale of the Notes in circumstances in which Section 21(1) of the FSMA
does not apply to the Issuer or the Guarantors; and 

 (iii) it has complied and will comply with all applicable provisions of the
FSMA with respect to anything done by it in relation to the Notes in, from or otherwise involving the United Kingdom. 
 Each
initial purchaser has represented and agreed that it has not, directly or indirectly, offered or sold and will not, directly or indirectly, offer or sell in the Netherlands any notes with a denomination of less than €50,000 (or its other
currency equivalent) other than to persons who trade or invest in securities in the conduct of a profession or business (which includes banks, stockbrokers, insurance companies, pension funds, other institutional investors and finance companies and
treasury departments of large enterprises) unless one of the other exemptions from or exceptions to the prohibition contained in article 3 of the Dutch Securities Transactions Supervision Act 1995 (Wet toezicht effectenverkeer 1995) is applicable
and the conditions attached to such exemption or exception are complied with. 
 (d) Each Initial Purchaser acknowledges that no
action has been or will be taken by the Company that would permit a public offering of the Securities, or possession or distribution of any of the Time of Sale Information, the Offering Memorandum, any Issuer Written Communication or any other
offering or publicity material relating to the Securities, in any country or jurisdiction where action for that purpose is required. 

 ANNEX D-1 
 Form of Opinion of McAfee & Taft, P.C. for the Company and Guarantors 
 We have acted as special counsel to Chaparral Energy, Inc., a Delaware corporation (the “Issuer”), in connection with the Purchase Agreement dated February
    , 2011 (the “Purchase Agreement”) among (i) the Issuer, (ii) the subsidiaries of the Issuer named therein as parties thereto and as guarantors of the Initial Securities (as defined below)
(collectively, the “Guarantors”), and (iii) Wells Fargo Securities, LLC as representative for the Initial Purchasers listed in Schedule 1 to the Purchase Agreement (the “Initial Purchasers”), relating to the
sale by the Issuer to the Initial Purchasers of $             aggregate principal amount of the Issuer’s 8.25% Senior Notes due 2021 (the “Initial Securities”).
The Issuer and the Guarantors are referred to collectively herein as the “Obligors.” The Initial Securities are being issued under an Indenture dated as of February     , 2011 (the
“Indenture”), by and among the Issuer, the Guarantors and Wells Fargo Bank, National Association, as trustee (the “Trustee”). Capitalized terms used but not defined herein have the meanings assigned to such terms in
the Purchase Agreement. 
 The Obligors and the Initial Purchasers have entered into a Registration Rights Agreement, dated as
of February     , 2011 (the “Registration Rights Agreement”), pursuant to which the Obligors have agreed to file, under certain conditions, with the Securities and Exchange Commission (the
“SEC”), a registration statement under the Securities Act of 1933, as amended (the “Securities Act”), with respect to an offer (the “Exchange Offer”) by the Obligors to the holders of the Initial
Securities to issue and deliver to such holders, in exchange for their Initial Securities, a like principal amount of new notes (the “Exchange Securities”) identical to the Initial Securities in all material respects, except that
the Exchange Securities will not (except in specified circumstances) be subject to restrictions on transfer. 
 We are
furnishing this opinion letter to you pursuant to Section 6(g) of the Purchase Agreement. 
 In rendering the opinions
set forth herein, we have examined and relied on originals or copies, certified or otherwise identified to our satisfaction, of the following: 
 (a) the Issuer’s Preliminary Offering Memorandum dated February 7, 2011 (the “Preliminary Offering Memorandum”) relating to the Initial Securities; 

(b) the Issuer’s Offering Memorandum dated February 7, 2011 (the “Offering Memorandum”) relating to the
Initial Securities; 
 (c) the Pricing Supplement dated February 7, 2011 relating to the Initial Securities (such document,
together with the Preliminary Offering Memorandum, being referred to herein as the “Time of Sale Information”); 
 (d) the Indenture; 
 (e) the form of the Initial Securities and the form of the
Exchange Securities; 
 (f) the global notes executed by the Issuer pursuant to the Indenture, in the aggregate principal amount
of $            , representing the Initial Securities purchased and sold pursuant to the Purchase Agreement with a view toward resale in reliance on Rule 144A under the Securities
Act; 

 (g) the global notes executed by the Issuer pursuant to the Indenture, in the aggregate
principal amount of $            , representing the Initial Securities purchased and sold pursuant to the Purchase Agreement with a view toward resale in reliance on Regulation S
under the Securities Act; 
 (h) the Purchase Agreement; 

(i) the Registration Rights Agreement; 
 (j) the Certificate of Incorporation of the Issuer, certified by the Secretary of State of the State of Delaware as in effect on February     , 2011 and certified by the
Secretary of the Issuer as in effect on each of the dates of the adoption of the resolutions specified in paragraph (t) below, the date of the Purchase Agreement and the date hereof (the “Issuer Charter”); 

(k) the Bylaws of the Issuer (the “Issuer Bylaws”), certified by the Secretary of the Issuer as in effect on each of the
dates of the adoption of the resolutions specified in paragraph (t) below, the date of the Purchase Agreement and the date hereof; 
 (l) the Certificate of Incorporation of Green Country Supply, Inc. (“Green Country Supply”), certified by the Secretary of State of the State of Oklahoma as in effect on February
    , 2011 and certified by the Secretary of Green Country Supply as in effect on each of the dates of the adoption of the resolutions specified in paragraph (t) below, the date of the Purchase Agreement and the date
hereof (the “Green Country Supply Charter”); 
 (m) the Bylaws of Green Country Supply (“Green Country
Supply Bylaws”), certified by the Secretary of Green Country Supply as in effect on each of the dates of the adoption of the resolutions specified in paragraph (t) below, the date of the Purchase Agreement and the date hereof;

 (n) the Certificates of Formation of the Delaware LLCs, certified by the Secretary of State of the State of Delaware as in
effect on February     , 2011 and certified by the respective Secretaries of the Delaware LLCs as in effect on each of the dates of the adoption of the resolutions specified in paragraph (u) below, the date of the
Purchase Agreement and the date hereof (the “Delaware LLCs Certificates of Formation”); 
 (o) the Limited
Liability Company Agreements of the Delaware LLCs, certified by the respective Secretaries of the Delaware LLCs as in effect on each of the dates of the adoption of the resolutions specified in paragraph (u) below, the date of the Purchase
Agreement and the date hereof; 
 (p) the Certificates of Limited Liability Company of the Oklahoma LLCs, certified by the
Secretary of State of the State of Oklahoma as in effect on February     , 2011 and certified by the respective Secretaries of the Oklahoma LLCs as in effect on each of the dates of the adoption of the resolutions
specified in paragraph (u) below, the date of the Purchase Agreement and the date hereof (the “Oklahoma LLCs Certificates of Limited Liability Company”); 
 (q) the Limited Liability Company Agreements of the Oklahoma LLCs, certified by the respective Secretaries of the Oklahoma LLCs as in effect on each of the dates of the adoption of the resolutions
specified in paragraph (v) below, the date of the Purchase Agreement and the date hereof; 
 (r) certificates from the
Secretary of State of the State of Delaware dated February     , 2011 as to the good standing and legal existence under the laws of the State of Delaware of the Issuer and the Delaware LLCs; 

 (s) certificates from the Secretary of State of the State of Oklahoma dated February
    , 2011 as to the good standing and legal existence under the laws of the State of Oklahoma of Green Country Supply and the Oklahoma LLCs; 
 (t) resolutions of the Board of Directors of the Issuer and Green Country Supply, effective as of February     , 2011 certified by the Secretary of the Issuer and the Secretary
of Green Country Supply; 
 (u) resolutions of the Manager of each of the Delaware LLCs and the Oklahoma LLCs, effective as of
February     , 2011, certified by the Secretary of each entity; 
 (v) a certificate dated the date
hereof (the “Opinion Support Certificate”), executed by the President and Chief Executive Officer of the Issuer, in the form attached hereto as Exhibit A; 

(w) any Applicable Orders (as defined below); and 
 (x) each of the Applicable Agreements (as defined below). 
 We have also examined
originals or copies, certified or otherwise identified to our satisfaction, of such records of the Obligors and such agreements, certificates of public officials, certificates of officers or other representatives of the Obligors and others, and such
other documents, certificates and records, as we have deemed necessary or appropriate as a basis for the opinions set forth herein. In our examination, we have assumed the legal capacity of all natural persons, the genuineness of all signatures, the
authenticity of all documents submitted to us as originals, and the conformity to authentic original documents of all documents submitted to us as certified or photostatic copies. As to any facts material to the opinions and statements expressed
herein that we did not independently establish or verify, we have relied, to the extent we deem appropriate, upon (i) oral or written statements and representations of officers and other representatives of the Obligors (including without
limitation the facts certified in the Opinion Support Certificate), (ii) representations made by the Obligors and representations made by the Initial Purchasers in the Purchase Agreement and (iii) statements and certifications of public
officials and others. 
 As used herein the following terms have the respective meanings set forth below: 

“Applicable Agreements” means those agreements and other instruments identified in the Opinion Support Certificate.

 “Applicable Guarantors” means Green Country Supply, the Oklahoma LLCs and the Delaware LLCs. 

“Applicable Obligor Organizational Documents” means, collectively, the following instruments, each in the form reviewed
by us, as indicated above: (i) the Issuer Charter, (ii) the Issuer Bylaws, (iii) the Delaware LLCs Certificates of Formation, (iv) the Oklahoma LLCs Certificates of Limited Liability Company, (v) the Limited Liability
Company Agreements of the Delaware LLCs and the Oklahoma LLCs, (vi) the Green Country Supply Charter and (vi) the Green Country Supply Bylaws. 
 “Applicable Obligors” means the Issuer and the Applicable Guarantors. 
 “Applicable Orders” means those orders or decrees of governmental authorities identified on Schedule 1 to the Opinion Support Certificate. However, officers of the Issuer have
certified in the Opinion Support Certificate that there are no Applicable Orders. 

 “Delaware LLCs” means Chaparral Exploration, L.L.C. and CEI Acquisition,
L.L.C. 
 “Oklahoma LLCs” means NorAm Petroleum, L.L.C., Chaparral Real Estate, L.L.C.,
Chaparral CO2, L.L.C., Chaparral Energy, L.L.C., Chaparral
Resources, L.L.C., CEI Pipeline LLC and Roadrunner Drilling, L.L.C. 
 “Person” means a natural person or a
legal entity organized under the laws of any jurisdiction. 
 “Transaction Documents” means collectively, the
following instruments, each in the form reviewed by us, as indicated above: (i) the Purchase Agreement, (ii) the Registration Rights Agreement, (iii) the Initial Securities and (iv) the Indenture. 

Based upon the foregoing and subject to the limitations, qualifications, exceptions and assumptions set forth herein, we are of the
opinion that: 
 1. The Issuer is a corporation formed, validly existing and in good standing under the General Corporation Law
of the State of Delaware (the “DGCL”). Green Country Supply is a corporation formed, validly existing and in good standing under the Oklahoma Business Corporation Act (the “OBCA”). The Delaware LLCs are limited
liability companies formed, validly existing and in good standing under the Delaware Limited Liability Company Act (the “DLLCA”). The Oklahoma LLCs are limited liability companies formed, validly existing and in good standing under
the Oklahoma Limited Liability Company Act (the “OLLCA”). 
 2. The Issuer has the corporate power and
corporate authority under the DGCL to (i) execute and deliver, and to incur and perform all of its obligations under, each of the Transaction Documents to which it is a party and (ii) carry on its business and own and lease its properties
as described in the Time of Sale Information and the Offering Memorandum. Green Country Supply has the corporate power and corporate authority under the OBCA to (i) executive and deliver, and to incur and perform all of its obligations under,
each of the Transaction Documents to which it is a party and (ii) carry and its business and own and lease its properties as described in the Time of Sale Information and the Offering Memorandum. The Delaware LLCs have the limited liability
company power and authority under the DLLCA to (i) execute and deliver, and to incur and perform all of their obligations under, the Transaction Documents to which they are parties and (ii) to carry on their business and own and lease
their properties as described in the Time of Sale Information and the Offering Memorandum. The Oklahoma LLCs have the limited liability company power and authority under the OLLCA to (i) execute and deliver, and to incur and perform all of
their obligations under, the Transaction Documents to which they are parties and (ii) to carry on their business and own and lease their properties as described in the Time of Sale Information and the Offering Memorandum. 

3. Each of the Transaction Documents, and the issuance and sale of the Initial Securities pursuant to the Purchase Agreement and the
Indenture, has been duly authorized by the Issuer, and each of the Transaction Documents has been duly executed and delivered by the Issuer. The Exchange Securities have been duly authorized by the Issuer. Each of the Purchase Agreement, the
Registration Rights Agreement and the Indenture has been duly authorized, executed and delivered by the Applicable Guarantors. 

4. None of (i) the execution and delivery by or on behalf of the Applicable Obligors of, nor the performance of their respective
obligations under, each of the Transaction Documents to which it is a party, each in accordance with its terms, (ii) the offering, issuance, sale and delivery of the Initial Securities to the Initial Purchasers pursuant to the Purchase
Agreement, (iii) the offering, issuance, exchange 

 
and delivery of the Exchange Securities pursuant to the Exchange Offers contemplated by the Registration Rights Agreement in the manner therein contemplated, (iv) the issuance of the
guaranties of the Initial Securities by the Applicable Guarantors or (v) the issuance of the guaranties of the Exchange Securities by the Applicable Guarantors at such time as the Exchange Securities are issued pursuant to the Exchange Offer
contemplated by the Registration Rights Agreement in the manner therein contemplated, (A) constituted, constitutes or will constitute (1) a violation of any of the Applicable Obligor Organizational Documents or (2) a breach or
violation, or a default (or an event which, with notice or passage of time or both, would constitute a default) under any Applicable Agreement, (B) resulted, results or will result in any violation of (1) the applicable laws of the State
of Oklahoma, (2) the applicable laws of the United States of America, (3) the DGCL or DLLCA or (4) Regulation T, U or X of the Federal Reserve Board, or (C) resulted, results or will result in the contravention of any Applicable
Order. 
 5. No Governmental Approval, which has not been obtained or taken and is not in full force and effect, is required to
authorize, or is required for the execution and delivery by each of the Applicable Obligors of, the Transaction Documents to which it is a party or the incurrence or performance of its obligations thereunder, or the enforceability of any of such
Transaction Documents against any of the Applicable Obligors that is a party thereto. As used in this paragraph, “Governmental Approval” means any consent, approval, license, authorization or validation of, or filing, recording or
registration with, any executive, legislative, judicial, administrative or regulatory body of the State of Oklahoma or the United States of America, pursuant to (i) applicable laws of the State of Oklahoma, (ii) applicable laws of the
United States of America, (iii) the DGCL or (iv) the DLLCA. 
 6. The statements under the captions “Description
of the notes” “and “Exchange offer; Registration rights” in the Preliminary Offering Memorandum and the Offering Memorandum, insofar as such statements purport to summarize certain provisions of documents referred to therein and
reviewed by us as described above, fairly summarize such provisions in all material respects, subject to the qualifications and assumptions stated therein. 
 7. The statements in the Preliminary Offering Memorandum and the Offering Memorandum under the captions “Certain U.S. federal income tax considerations,” and “Business and properties —
Environmental matters and regulation,” insofar as they refer to statements of law or legal conclusions, fairly summarize the matters referred to therein in all material respects, subject to the qualifications and assumptions stated therein.

 8. The Indenture constitutes a valid and binding obligation of each of the Applicable Obligors, enforceable against each of
them in accordance with its terms. 
 9. When authenticated by the Trustee in the manner provided in the Indenture and delivered
to and paid for by the Initial Purchasers in accordance with the Purchase Agreement, the Initial Securities will constitute valid and binding obligations of the Issuer, entitled to the benefits of the Indenture and enforceable against the Issuer in
accordance with its terms. 
 10. When the Initial Securities have been authenticated by the Trustee in the manner provided in
the Indenture and delivered to and paid for by the Initial Purchasers in accordance with the Purchase Agreement, the guarantees of the Initial Securities included in the Indenture will constitute valid and binding obligations of the Applicable
Guarantors, enforceable against the Applicable Guarantors in accordance with the terms of the Indenture. 
 11. When validly
executed by the Issuer and authenticated by the Trustee in the manner provided in the Indenture and delivered in exchange for Initial Securities pursuant to the Exchange Offer 

 
contemplated by the Registration Rights Agreement, the Exchange Securities will constitute valid and binding obligations of the Issuer, entitled to the benefits of the Indenture and enforceable
against the Issuer in accordance with its terms. 
 12. When the Exchange Securities have been validly executed by the Issuer
and authenticated by the Trustee in accordance with the provisions of the Indenture and delivered in exchange for Initial Securities pursuant to the Exchange Offer contemplated by the Registration Rights Agreement, the guarantees included in the
Indenture of the Exchange Securities will constitute valid and binding obligations of the Applicable Guarantors, enforceable against the Applicable Guarantors in accordance with the terms of the Indenture. 

13. The Registration Rights Agreement constitutes a valid and binding obligation of each of the Applicable Obligors, enforceable against
each of them in accordance with its terms. 
 14. Assuming (i) the accuracy of the representations and warranties of the
Obligors set forth in paragraphs (ee), (ff), (gg) and (hh) of Section 3 of the Purchase Agreement, (ii) the due performance by the Obligors and the Initial Purchasers of the covenants and agreements set forth in the Purchase Agreement,
(iii) the compliance by the Initial Purchasers with the offering and transfer procedures and the restrictions described in the Offering Memorandum, (iv) the accuracy of the representations and warranties of the Initial Purchasers set forth
in paragraph (b) of Section 1 of the Purchase Agreement (including Annex C thereto), (v) the accuracy of the representations and warranties made or deemed to be made in accordance with the Purchase Agreement and the Offering
Memorandum by purchasers to whom the Initial Purchasers initially resell the Initial Securities, and (vi) that purchasers to whom the Initial Purchasers initially resell the Initial Securities have been made aware of the information set forth
in the Offering Memorandum under the caption “Transfer restrictions,” (A) the offer, issue, sale and delivery of the Initial Securities (and the guaranties thereof by the Applicable Guarantors) to the Initial Purchasers and the
initial resale of the Initial Securities (and the guaranties thereof by the Applicable Guarantors) by the Initial Purchasers in accordance with paragraph (b) of Section 1 of the Purchase Agreement (including Annex C thereto), each in the
manner contemplated by the Purchase Agreement and the Offering Memorandum, do not require registration under the Securities Act; provided, however, that we express no opinion as to any subsequent resale of any Initial Securities (and the
guaranties thereof by the Guarantors) or any Exchange Securities (and the guaranties thereof by the Guarantors), and (B) prior to the consummation of the Exchange Offer or the effectiveness of the Shelf Registration Statement (as defined in the
Registration Rights Agreement), the Indenture is not required to be qualified under the Trust Indenture Act of 1939, as amended. 
 15. The Issuer is not an “investment company” within the meaning of said term as used in the Investment Company Act of 1940, as amended. 

In addition, we have participated in conferences with officers and other representatives of the Obligors, the independent registered
public accounting firm and the independent reserve engineers for the Obligors, your counsel and your representatives at which the contents of the Time of Sale Information and the Offering Memorandum and related matters were discussed and, although
we have not independently verified and are not passing upon, and do not assume any responsibility for, the accuracy, completeness or fairness of the statements contained in the Time of Sale Information and the Offering Memorandum (except as and to
the extent set forth in paragraphs 6 and 7 above), on the basis of the foregoing (relying with respect to factual matters to the extent we deem appropriate upon statements by officers and other representatives of the Obligors), no facts have come to
our attention that have led us to believe that (i) the Time of Sale Information, as of          p.m. on February     , 2011 (which you have informed us is a time prior to
the time of the first sale of the Initial Securities by any Initial Purchaser), contained an untrue 

 
statement of a material fact or omitted to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, or
(ii) the Offering Memorandum, as of its date and as of the date hereof, contained or contains an untrue statement of a material fact or omitted or omits to state any material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, it being understood that we express no opinion, statement or belief in this letter with respect to (i) the historical financial statements and related schedules, including the notes and
schedules thereto and the auditor’s reports thereon and (ii) any other reserve, financial or accounting data, included in, or excluded from, the Offering Memorandum or the Time of Sale Information. 

We express no opinion as to the laws of any jurisdiction other than (i) applicable laws of the State of Oklahoma,
(ii) applicable laws of the United States of America, (iii) certain other specified laws of the United States of America to the extent referred to specifically herein, (iv) the DGCL and (v) the DLLCA. References herein to
“applicable laws” mean those laws, rules and regulations that, in our experience, are normally applicable to transactions of the type contemplated by the Transaction Documents, without our having made any special investigation as to the
applicability of any specific law, rule or regulation, and that are not the subject of a specific opinion herein referring expressly to a particular law or laws; provided however, that such references to “applicable laws” (including
without limitation those appearing in paragraphs 4 and 5 above) do not include any municipal or other local laws, rules or regulations, or any antifraud, environmental, labor, securities, tax, insurance or antitrust, laws, rules or regulations.

 Our opinions expressed herein are subject to the following additional assumptions and qualifications: 

(i) The opinions set forth in paragraph 1 above as to the valid existence and good standing of the Issuer and the other entities
mentioned in such paragraph are based solely upon our review of certificates and other communications from the appropriate public officials. 
 (ii) In rendering the opinions set forth in paragraph 4 above regarding Applicable Agreements, we do not express any opinion, however, as to whether the execution or delivery by the Obligors of the
Transaction Documents, or the incurrence or performance by any of the Obligors of its obligations thereunder, will constitute a violation of, or a default under or as a result of, any covenant, restriction or provision, in each case with respect to
any financial ratio or test or any aspect of the financial condition or results of operation of any of the Obligors. 
 (iii)
The opinion set forth in paragraph 7 above with respect to United States federal income tax considerations is based upon our interpretations of current United States federal income tax law, including court authority and existing final and temporary
U.S. Treasury regulations, which are subject to change both prospectively and retroactively, and upon the assumptions and qualifications discussed herein. We note that such opinion represents merely our best legal judgment on the matters presented
and that others may disagree with our conclusion. Such opinion is not binding upon the Internal Revenue Service or courts, and there is no guarantee that the Internal Revenue Service will not successfully challenge our conclusions. No assurance can
be given that future legislative, judicial or administrative changes, on either a prospective or retroactive basis, would not adversely affect the accuracy of our conclusions. 
 (iv) Treasury Circular 230 Disclosure. This disclosure is provided to comply with Treasury Circular 230. The opinion set forth in paragraph 7 of this letter is not intended or written to be used,
and cannot be used, by any person for the purpose of avoiding tax penalties that may be imposed on the person. Such opinion was written to support the promoting, marketing or recommending of the transactions or matters addressed by this written
advice, and the taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor. No limitation has been imposed by our firm on disclosure of the tax treatment or tax structure of the transaction.

 (v) Our opinions in paragraphs 8, 9, 10, 11, 12 and 13 above may be: 

(1) limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or transfer or other
similar laws relating to or affecting the rights of creditors generally; and 
 (2) subject to the application of
general principles of equity (regardless of whether considered in a proceeding in equity or at law), including, without limitation, the possible unavailability of specific performance, injunctive relief or any other equitable remedy and concepts of
materiality, reasonableness, good faith and fair dealing. 
 (vi) With respect to our opinions in paragraphs 8, 9, 10, 11, 12
and 13, the Transaction Documents state that they are governed by the laws of the State of New York. Section 162 of Title 15 of the Oklahoma Statutes provides as follows: 
 A contract is to be interpreted according to the law and usage of the place where it is to be performed, or, if it does not indicate a place of performance, according to the law and usage of the place
where it is made. 
 In addition to the general choice of law rule stated above, 12A Okla. Stat. § 1-301(1) states as
follows: 
 Except as provided hereafter in this section, when a transaction bears a reasonable relation to this state and also
to another state or nation, the parties may agree that the law either of this state or of such other state or nation shall govern their rights and duties... 
 The Oklahoma courts have held in cases construing choice of law provisions in promissory notes that an express provision by the parties designating a place of performance or providing a specific choice of
law will be given effect if the designated state bears a reasonable relation to the transaction, unless to give it effect would violate the public policy of Oklahoma. Although we have found no Oklahoma cases specifically addressing the choice of law
applicable to a note purchase agreement or a guaranty, we believe that, based on such decisions, an Oklahoma court would give effect to the choice of law provisions in the Transaction Documents that call for the application of New York law as long
as Oklahoma public policy is not violated. 
 (vii) We express no opinion as to the effect of the laws of any jurisdiction in
which any holder of any Initial Security or Exchange Security is located (other than the State of Oklahoma) that limit the interest, fees or other charges such holder may impose for the loan or use of money or other credit. 

(viii) We express no opinion as to the validity, binding effect or enforceability of [Section 4.9] of the Indenture or the
first two sentences of [Section 7.7 of the Indenture]. 

 (ix) We express no opinion as to the validity, effect or enforceability of any provisions:

 (1) purporting to establish particular notice periods or actions as “reasonable,” to establish
evidentiary standards or limitations periods for suits or proceedings to enforce such documents or otherwise, to establish certain determinations (including determinations of contracting parties and judgments of courts) as conclusive or conclusive
absent manifest error, to commit the same to the discretion of any Person or permit any Person to act in its sole judgment or to waive rights to notice (including, without limitation, notice of acceleration, demands, defenses, counterclaims or
setoffs); 
 (2) providing that the assertion or employment of any right or remedy shall not prevent the
concurrent assertion or employment of any other right or remedy, or that each and every remedy shall be cumulative and in addition to every other remedy or that any delay or omission to exercise any right or remedy shall not impair any other right
or remedy or constitute a waiver thereof; 
 (3) relating to severability or separability; 

(4) purporting to limit the liability of, or to exculpate, any Person, including without limitation any provision that
purports to waive liability for violation of securities laws; 
 (5) that constitute an agreement to agree in the
future on any matter; 
 (6) that relate to indemnification, contribution or reimbursement obligations to the
extent any such provisions (A) would purport to require any Person to provide indemnification, contribution or reimbursement in respect of the negligence, recklessness, willful misconduct or unlawful or wrongful behavior of any Person,
(B) violate any law, rule or regulation (including any federal or state securities law, rule or regulation) or (C) are determined to be contrary to public policy; 

(7) purporting to establish any obligation of any party as absolute or unconditional regardless of the occurrence or
non-occurrence or existence or nonexistence of any event or other state of facts; 
 (8) purporting to obligate
any party to conform to a standard that may not be objectively determinable or employing items that are vague or have no commonly accepted meaning in the context in which used; 

(9) purporting to require the payment of liquidated damages, premiums, additional interest or similar amounts, however
denominated, for failure to timely comply with obligations under the Registration Rights Agreement; or 
 (10)
purporting to require that all amendments, waivers and terminations be in writing or the disregard of any course of dealing or usage of trade. 
 (x) In making our examination of executed documents, we have assumed (except to the extent that we expressly opine above) (1) the valid existence and good standing of each of the parties thereto,
(2) that such parties had the power and authority, corporate, partnership, limited liability company or other, to enter into and to incur and perform all their obligations thereunder, (3) the due authorization by all requisite action,
corporate, partnership, limited liability company or other, and the due execution and delivery by such parties of such documents and (4) to the extent such documents purport to constitute agreements, that each of such documents constitutes the
legal, valid and binding obligation of each party 

 
thereto, enforceable against such party in accordance with its terms. In this paragraph (x), all references to parties to documents shall be deemed to mean and include each of such parties, and
each other person (if any) directly or indirectly acting on its behalf. 
 (xi) Except to the extent that we expressly opine
above, we have assumed that the execution and delivery of the Transaction Documents, and the incurrence and performance of the obligations thereunder of the parties thereto do not and will not contravene, breach, violate or constitute a default
under (with the giving of notice, the passage of time or otherwise) (1) the certificate or articles of incorporation, certificate of formation, charter, bylaws, limited liability company agreement, limited partnership agreement or similar
organic document of any such party, (2) any contract, indenture, mortgage, loan agreement, note, lease or other agreement or instrument, (3) any statute, law, rule, or regulation, (4) any judicial or administrative order or decree of
any governmental authority, or (5) any consent, approval, license, authorization or validation of, or filing, recording or registration with, any governmental authority, in each case, to which any party to the Transaction Documents or any of
its subsidiaries or any of their respective properties may be subject, or by which any of them may be bound or affected. Further, we have assumed the compliance by each such party, other than the Obligors, with all laws, rules and regulations
applicable to it, as well as the compliance by the each of the Obligors, and each other person (if any) directly or indirectly acting on its behalf, with all laws, rules and regulations that may be applicable to it solely by virtue of the particular
nature of the business conducted by it or any goods or services produced or rendered by it or property owned, operated or leased by it, or any other facts pertaining specifically to it. In this paragraph (xi), all references to parties to the
Transaction Documents, other than the first such reference, shall be deemed to mean and include each of such parties, and each other person (if any) directly or indirectly acting on its behalf. 

(xii) Without limiting the generality of our qualification in clause (1) of paragraph (v) above, we express no opinion as to
the applicability or effect of any preference, fraudulent transfer or conveyance, or similar law on the Transaction Documents or any transactions contemplated thereby or any opinion expressed herein. 

(xiii) Except to the extent that we expressly opine above, we have assumed that no authorization, consent or other approval of, notice to
or registration, recording or filing with any court, governmental authority or regulatory body (other than routine informational filings, filings under the Securities Act and filings under the Securities Exchange Act of 1934, as amended) is required
to authorize, or is required in connection with the transactions contemplated by the Transaction Documents, the execution or delivery of thereof by or on behalf of any party thereto or the incurrence or performance by any of the parties thereto of
its obligations thereunder. 
 (xiv) The opinion expressed in paragraph 15 above is given in reliance upon facts set forth in
the Opinion Support Certificate. 
 (xv) We advise you that certain of the guaranty and surety waivers contained in the
Indenture may be unenforceable in whole or in part. 
 (xvi) We understand that you are receiving a separate opinion letter
dated the date hereof from Robert W. Kelly II, Esq., General Counsel of the Issuer. We (1) have assumed the accuracy of the opinions and statements expressed therein and (2) assume no responsibility for such opinions and statements.

 (xvii) We have assumed that the sale of the Initial Securities pursuant to Regulation S under the Securities Act is not part
of a plan or scheme to evade the registration provisions of the Securities Act. 

 This opinion is being furnished only to you in connection with the sale of the Initial
Securities under the Purchase Agreement occurring today and is solely for your benefit and is not to be used, circulated, quoted or otherwise referred to for any other purpose or relied upon by any other Person, including any purchaser of any
Initial Securities or Exchange Securities from you and any subsequent purchaser of any Initial Securities or Exchange Securities, without our express written permission. The opinions expressed herein are as of the date hereof only and are based on
laws, orders, contract terms and provisions, and facts as of such date, and we disclaim any obligation to update this opinion letter after such date or to advise you of changes of facts stated or assumed herein or any subsequent changes in
applicable law. 
  

			
		  	Very truly yours,
		
		  	McAfee & Taft A Professional Corporation

 Exhibit A 
 Chaparral Energy, Inc. 
 Officer’s Certificate 

February     , 2011 
 Reference is made to the Purchase Agreement dated as of February     , 2011 (the “Purchase Agreement”) by and among (i) Chaparral Energy, Inc., a Delaware
corporation (the “Company”), (ii) the subsidiaries of the Company named therein as parties thereto and as guarantors of securities purchased and sold pursuant thereto, and (iii) Wells Fargo Securities, LLC, as
representative of the initial purchasers of securities purchased and sold pursuant thereto (collectively, the “Initial Purchasers”). The undersigned, Mark A. Fischer, hereby certifies that he is the Chief Executive Officer and
President of the Company. 
 Such officer understands that pursuant to the Purchase Agreement, McAfee & Taft A
Professional Corporation (“McAfee & Taft”), special counsel to the Company, is delivering to the Initial Purchasers an opinion letter dated the date hereof (the “Opinion Letter”). Such officer further
understands that McAfee & Taft is relying on this certificate and the statements made herein in rendering certain of the opinions expressed in the Opinion Letter. 
 With regard to the foregoing, the undersigned certifies that he has made due inquiry of all persons necessary or appropriate to verify or confirm the statements contained herein, and he further certifies
the following: 
 1. Attached as a schedule to either the Company’s 2009 Form 10-K or its Form 10-Q for the Quarter ended
September 30, 2010 is a true, accurate and complete list of every indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease or other agreement (collectively, the “Applicable Agreements”) that is both
(a) material in relation to the business, operations, affairs, financial condition, assets, or properties of the Company and its subsidiaries, considered as a single enterprise, and (b) an instrument by which the Company or any of its
subsidiaries is bound or by which the Company or any of its subsidiaries or any of its properties may be bound or affected. 

2. Attached as Schedule 1 to this Officer’s Certificate is a true, accurate and complete list of every order, judgment or
decree (collectively, the “Applicable Orders”) of any governmental authority by which the Company or any of its subsidiaries or any of its properties is bound, that is material in relation to the business, operations, affairs,
financial condition, assets, or properties of the Company and its subsidiaries, considered as a single enterprise. 
 3. The
Company and its subsidiaries are engaged in businesses other than that of investing, reinvesting, owning, holding or trading in Securities. Furthermore, the Company and its subsidiaries: 

(a) are not engaged primarily, nor does any of them hold itself out as being engaged primarily, nor does any of them propose to engage
primarily, in the business of investing, reinvesting, or trading in Securities; 
 (b) are not engaged, nor do any of them
propose to engage, in the business of issuing Face-Amount Certificates of the Installment Type, nor has any of them been engaged in such business and has any such certificates outstanding; 

 (c) are not engaged, nor does any of them propose to engage, in the business of investing,
reinvesting, owning, holding or trading in Securities (other than Securities of its respective subsidiaries); and 
 (d) do not
own, nor does any of them propose to acquire, Investment Securities having a value exceeding 40 percent of the value of its total assets (exclusive of Government Securities and cash items) on an unconsolidated basis. 

4. The Company and its subsidiaries do not own, and none of the proceeds from the offering of notes contemplated by the Purchase
Agreement will be used directly or indirectly to purchase or carry, any “margin stock” as defined in Regulation U promulgated by the Board of Governors of the Federal Reserve System. 

As used in paragraph 3 of this certificate: 
 “Face-Amount Certificate of the Installment Type” means any certificate, investment contract or other Security which represents an obligation on the part of its issuer to pay a stated or
determinable sum or sums at a fixed or determinable date or dates more than twenty-four months after the date of issuance, in consideration of the payment of periodic installments of a stated or determinable amount; 

“Government Security” means any Security issued or guaranteed as to principal or interest by the United States of
America, or by an entity controlled or supervised by and acting as an instrumentality of the Government of the United States of America pursuant to authority granted by the Congress of the United States of America; or any certificate of deposit for
any of the foregoing; 
 “Investment Securities” means all Securities, except (i) Government Securities
and (ii) Securities issued by majority-owned subsidiaries of the owner, which subsidiaries: (A) are not themselves engaged in any activity described in clauses (a) through (c) of paragraph 3 of this certificate; and (B) do
not own or propose to own Investment Securities having a value exceeding 40 percent of the value of each such subsidiary’s total assets (exclusive of Government Securities and cash items) on an unconsolidated basis; and 

“Security” or “Securities” means any note, stock, treasury stock, bond, debenture, evidence of
indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of
deposit for a security, fractional undivided interest in oil, gas or other mineral rights, any put, call, straddle, option or privilege on any security (including a certificate of deposit) or on any group or index of securities (including any
interest therein or based on the value thereof), or any put, call, straddle, option or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a
“security,” or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing. 

IN WITNESS WHEREOF the undersigned has executed this Officer’s Certificate as of the date first written above. 

 

	
	  

	Mark A. Fischer

 Schedule 1 
 Applicable Orders 
 None. 

 ANNEX D-2 
 Form of Opinion of Robert W. Kelly II, Esq., General Counsel of the Company 
 Ladies and
Gentlemen: 
 This legal opinion is provided to you pursuant to Section 6(g) of the Purchase Agreement, dated February
    , 2011 (the “Purchase Agreement”), between (i) Chaparral Energy, Inc., a Delaware corporation (the “Company”), (ii) the unrestricted subsidiaries of the Company named therein
as parties thereto and listed in Schedule 2 thereto as guarantors (collectively, the “Guarantors”) and (iii) Wells Fargo Securities, LLC, [others] (the “Initial Purchasers”) relating to the issuance and sale by
the Company of $400,000,000 aggregate principal amount of 8.25% Senior Notes due 2021 (the “Securities”). Capitalized terms used herein, which are not otherwise defined, shall have the same meaning assigned to such term under the
Purchase Agreement. 
 In my capacity as counsel to the Company, I, or attorneys over whom I exercise supervision, have examined
the preliminary Offering Memorandum dated February     , 2011 (the “Preliminary Offering Memorandum”, as supplemented by the Pricing Supplement dated February     , 2011 (the
“Pricing Supplement” and, together with the Preliminary Offering Memorandum, the “Time of Sale Information”) and the final Offering Memorandum dated February     , 2011 related to the offering and the
sale of the Securities (the “Offering Memorandum”). In addition, I, or attorneys over whom I exercise supervision, have examined the originals, or copies identified to our satisfaction, of such corporate records of the Company and
its subsidiaries, including the Guarantors, certificates of public officials, officers of the Company and its subsidiaries, including the Guarantors, and other persons and such other documents, agreements and instruments as I have deemed necessary
as a basis for the opinions hereinafter expressed. 
 Based on the foregoing, I am of the opinion that: 

1. The Company has been duly qualified as a foreign corporation to transact business and is in good standing in the State
of Oklahoma. 
 2. The Guarantors are organized in the states set opposite their names on Schedule 2 of the
Purchase Agreement (the “Applicable Guarantors,” and each an “Applicable Guarantor”) and each has been duly formed, is validly existing as a corporation or limited liability company, as the case may be, in good
standing under the laws of its respective state, and has the corporate or limited liability company power and authority to own, lease and operate its properties and to conduct its business as described in the Time of Sale Information and the
Offering Memorandum. 
 3. Each of the Purchase Agreement, the Registration Rights Agreement, the Indenture and
the Securities, and the issuance and sale of the Securities pursuant to the Purchase Agreement and the Indenture, has been duly authorized by the Sole Member of the Applicable Guarantors or in the case of Green Country Supply, Inc., its Board of
Directors, and each of the Purchase Agreement, the Registration Rights Agreement and the Indenture, including the guarantee of the Securities and Exchange Securities pursuant to the Indenture, has been validly executed and delivered by each of the
Applicable Guarantors. 

 4. The execution, delivery and performance of the Purchase Agreement, the
Registration Rights Agreement, the Indenture and the Securities by the Company and the Guarantors, the compliance by the Company and the Guarantors with all the provisions thereof and the consummation of the transactions contemplated hereby and
thereby will not, to my knowledge, (A) violate any indenture, loan agreement, mortgage, lease or other agreement or instrument to which the Company or any Guarantor is a party or by which the Company or any Guarantor or their respective
property is bound or (B) violate or conflict with any judgment, order or decree of any court or governmental body or agency having jurisdiction over the Company or any Guarantor or their respective property, except in each case, for such
violations as would not have a Material Adverse Effect. 
 5. To my knowledge after due inquiry, there are no
legal or governmental proceedings required to be described in the Time of Sale Information and the Offering Memorandum which are not described as required or of any contracts or documents of a character required to be described in the Time of Sale
Information and the Offering Memorandum which are not described as required, and in each case insofar as such descriptions constitute summaries of the legal matters, documents or proceedings referred to in the Time of Sale Information and the
Offering Memorandum, fairly present as of the date of the Purchase Agreement the information disclosed in the Time of Sale Information and the Offering Memorandum in all material aspects, it being understood that I express no opinion as to the
financial statements or schedules or other financial data contained in the Time of Sale Information and the Offering Memorandum. 
 The opinions expressed herein are limited to the federal laws of the United States and, to the extent relevant hereto, the laws of the State of Oklahoma, as currently in effect. I assume no obligation to
supplement this opinion if any applicable laws change after the date hereof or if I become aware of any facts that might change the opinions expressed herein after the date hereof. 

This opinion is given as of the date hereof and is solely for the benefit of the Initial Purchasers and the Trustee in connection with
the transactions contemplated by the Purchase Agreement. This opinion may be relied upon by McAfee Taft A Professional Corporation. in connection with their opinion rendered in connection with the transactions contemplated by the Purchase Agreement.
This opinion may not be relied upon for any other purpose or relied upon by any other person for any purpose without my prior written consent. 
  

	
	Very truly yours,
	
	Robert W. Kelly II
	
	Senior Vice President and General Counsel

 Exhibit A 
 Form of Registration Rights Agreement 
 [Provided separately]

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