Document:

EX-10.2

 Exhibit 10.2 
 FIRST AMENDMENT TO EXCHANGE AGREEMENT 
 This AMENDMENT OF EXCHANGE
AGREEMENT (this “Agreement”), dated as of November 8, 2012, is entered into by and between Cereplast, Inc., a Nevada corporation (the “Company”), and Magna Group, LLC, (the “Holder”).

 WHEREAS, the parties entered into that certain Exchange Agreement dated as of October 15, 2012 (the “Exchange
Agreement”), which provides for the exchange of certain participation interests in certain Secured Promissory Notes issued by the Company to Compass Horizon Funding Company, LLC , which participation interests will be acquired by Holder
pursuant to that certain Participation Purchase Agreement (the “Purchase Agreement”) dated as of October 15, 2012; 
 WHEREAS, the parties which to amend the form of New Note attached to the Exchange Agreement; 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the above recitals and for
other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Company and Holder hereby agree as follows: 
  

	1.	         Definitions; Interpretation. Unless otherwise defined herein, all capitalized terms used herein and defined in
the Exchange Agreement shall have the respective meanings given to those terms in the Exchange Agreement. 

  

	2.	         Form of New Note. The Form of New Note that shall be issued pursuant to the Exchange Agreement shall be replaced
in its entirety and in lieu thereof the form of New Note shall be in the form of the attached Exhibit A. 

  

	3.	         Amended and Restated New Note. Simultaneously with the execution of this Amendment, Holder shall return to the
Company that certain New Note issued on October 15, 2012 marked “cancelled” and the Company shall promptly hereto issue to the Holder an Amended and Restated Note, in the form of the attached Exhibit B.

  

	4.	         Effect of Agreement. Except as expressly provided hereunder, the execution, delivery and effectiveness of this
Agreement shall not operate as a waiver of any right, power, or remedy of Holder, nor constitute a waiver of any provision of the Exchange Agreement. Except as amended above, the Exchange Agreement remains in full force and effect.

  

	5.	         Headings. Headings in this Agreement are for convenience of reference only and are not part of the substance
hereof. 

  

	6.	         Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New
York without reference to conflicts of law rules. 

	7.	         Counterparts. This Agreement may be executed in any number of counterparts, including by electronic or facsimile
transmission, each of which when so delivered shall be deemed an original, but all such counterparts taken together shall constitute but one and the same instrument. 

[Remainder of page intentionally left blank] 

  
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 IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first-above written.

  

			
	CEREPLAST, INC.
		
	 By:
	 	/s/ Frederic Scheer
		 	Name: Frederic Scheer
		 	Title:   Chief Executive Officer
	
	MAGNA GROUP, LLC
		
	 By:
	 	/s/ Joshua Sason
		 	Name: Joshua Sason
		 	Title:   Chief Executive Officer

  
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 Exhibit A 
 NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXCHANGEABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT,
THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 CONVERTIBLE PROMISSORY NOTE 
  

			
	$500,000	  	            , 201    

FOR VALUE RECEIVED, Cereplast, Inc., a Nevada corporation (the “Maker”), with its offices located at 300 N. Continental, Suite
100, El Segundo, CA 90245, promises to pay to the order of Magna Group, LLC. (the “Payee”) or its registered assigns (with the Payee, the “Holder”), upon the terms set forth below, the principal sum of Five Hundred Thousand
Dollars ($500,000) (this “Note”). The Note shall bear interest at the rate of 6% per annum payable on the Maturity Date. Defined terms not otherwise defined herein shall have the meanings ascribed to such terms in that certain
exchange agreement of even date herewith among the Maker and the Holder (the “Exchange Agreement”). 
 1.
Payments. 
 (a) Unless an Event of Default shall have previously occurred and be continuing or this Note is sooner
converted into shares of Maker’s common stock pursuant to the terms herein, the full amount of principal under this Note shall be due and payable on [Insert date that is 12 months from issuance date] (the “Maturity Date”).

 2. Events of Default. 
 (a) “Event of Default”, wherever used herein, means any one of the following events (whatever the reason and whether it shall be voluntary or involuntary or effected by operation of law
or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body): 
 (i) any default in the payment of the principal of this Note, as and when the same shall become due and payable, which is not cured within 3 Trading Days; 

  
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 (ii) Maker shall fail to observe or perform any obligation or shall breach any term or
provision of this Note and such failure or breach shall not have been remedied within thirty (30) business days after the date on which notice of such failure or breach shall have been delivered (other than those occurrences described in other
provisions of this Section 2 for which a different grace or cure period is specified, or for which no cure period is specified and which constitute immediate Events of Default); 

(iii) Maker shall fail to observe or perform any of its material obligations owed to the Holder or any other material covenant,
agreement, representation or warranty contained in, or otherwise commit any material breach hereunder or in any other agreement executed in connection herewith, including the Exchange Agreement which failure shall not have been remedied within
thirty (30) business days after the date on which notice of such failure shall have been delivered; 
 (iv) Maker shall
commence, or there shall be commenced against the Maker a case under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the Maker commences any other proceeding under any reorganization,
arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to the Maker, or there is commenced against the Maker any such bankruptcy,
insolvency or other proceeding which remains undismissed for a period of sixty (60) days; or the Maker is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or the Maker
suffers any appointment of any custodian or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of 60 days; or the Maker makes a general assignment for the benefit of creditors; or the Maker
shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or the Maker shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of
its debts; or the Maker shall by any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by the Maker for the purpose of effecting any of the
foregoing; 
 (v) Maker shall fail to deliver shares of Common Stock upon the conversion of any Notes and such failure continues
for eight (8) calendar days following the scheduled settlement date for such conversion. 
 (vi) If a judgment or judgments
for the payment of money in an amount, individually or in the aggregate, of at least One Million ($1,000,000) shall be rendered against Maker and shall remain unsatisfied and unstayed for a period of ten (10) days or more. 

(b) If any Event of Default occurs and shall be continuing, the full principal amount of this Note shall become, at the Holder’s
election, immediately due and payable in cash. 
 (c) The Holder need not provide and the Maker hereby waives any presentment,
demand, protest or other notice of any kind. Such declaration may be rescinded and annulled by the Holder at any time prior to payment hereunder. No such rescission or annulment shall affect any subsequent Event of Default or impair any right
consequent thereon. 

  
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 3. Conversion 

a. Conversion Option
 At any time after the date of issuance of this Note, this Note shall be convertible (in whole or in part), at the option of the Holder (the “Conversion Option”), into such number of fully
paid and non-assessable shares of Common Stock of Maker (the “Common Stock”) as is determined by dividing (x) that portion of the outstanding balance under this Note as of such date that the Holder elects to convert by
(y) the Conversion Price (as defined below) then in effect on the date (the “Conversion Date”) on which the Holder faxes a notice of conversion (the “Conversion Notice”), duly executed, to Maker, provided,
however, that the Conversion Price shall be subject to adjustment as described herein. To effect conversions hereunder, the Holder shall not be required to physically surrender this Note to the Company unless the entire principal amount of this
Note, plus all accrued and unpaid interest thereon, has been so converted. Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Not in an amount equal to the applicable conversion. The Holder and the
Company shall maintain records showing the principal amount(s) converted and the date of such conversion(s). The Company may deliver an objection to any Notice of Conversion within one (1) Business Day of delivery of a Notice of Conversion. In
the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error. The Holder, and any assignee by acceptance of this Note, acknowledge and agree that, by reason of the
provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note may be less than the amount stated on the face hereof. 

For purposes of this Section 3 the following terms shall mean as follows: 

“Conversion Price” means 75% of the average of the three lowest VWAPs during the ten (10) consecutive Trading Day
period immediately prior to the date of conversion. 
 “VWAP” means, for any date, the price determined by the
first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market
on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if the OTC Bulletin Board is not a Trading Market, the volume
weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock
are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or
(d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Securities then outstanding and reasonably acceptable to
the Maker, the fees and expenses of which shall be paid by the Maker. 
 “Trading Day” means a day on which any
of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question is open for trading: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New
York Stock Exchange or the OTC Bulletin Board (or any successors to any of the foregoing). 

  
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 b. Mechanics of Conversion 

(i) Not later than three (3) Trading Days after any Conversion Date, Maker or its designated transfer agent, as applicable, shall
issue and deliver to the Holder, a certificate registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder shall be entitled, within three Trading Days after the Conversion Date (the
“Delivery Date”). If in the case of any Conversion Notice such certificate or certificates are not delivered to or as directed by the Holder by the Delivery Date, the Holder shall be entitled by written notice to Maker at any
time on or before its receipt of such certificate or certificates thereafter, to rescind such conversion, in which event Maker shall immediately return the Note tendered for conversion (if applicable), and whereupon the Maker and the Holder shall
each be restored to their respective positions immediately prior to the delivery of such notice of revocation. 
 (ii) The Maker
understands that a delay in the delivery of the shares of Common Stock upon conversion of this Note beyond the Delivery Date could result in economic loss to the Holder. If Maker fails to deliver to the Holder such certificates by the Delivery
Date, the Maker shall pay to the Holder, in cash, an amount per Trading Day for each Trading Day until such certificates are delivered, together with interest on such amount at a rate of 10% per annum, accruing until such amount and any accrued
interest thereon is paid in full, equal to the greater of: (A) (i) 1% of the aggregate amount of the Note requested to be converted for the first five (5) Trading Days after the Delivery Date and (ii) 2% of the aggregate amount
of the Note requested to be converted for each Trading Day thereafter; and (B) $1,000 per day (which amount shall be paid as liquidated damages and not as a penalty). Nothing herein shall limit the Holder’s right to pursue actual
damages for Maker’s failure to deliver certificates representing shares of Common Stock upon conversion within the period specified herein and the Holder shall have the right to pursue all remedies available to it at law or in equity
(including, without limitation, a decree of specific performance and/or injunctive relief). Notwithstanding anything to the contrary contained herein, the Holder shall be entitled to withdraw a Conversion Notice, and upon such withdrawal the
Maker shall only be obligated to pay the liquidated damages accrued through the date the Conversion Notice is withdrawn. 

(iii) In addition to any other rights available to the Holder, if Maker fails to cause its transfer agent to transmit to the Holder a
certificate or certificates representing the shares of Common Stock issuable upon conversion of this Note on or before the Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or
otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the shares of Common Stock issuable upon conversion of this Note which the Holder anticipated receiving upon such conversion (a “Buy-In”), then
the Maker shall (1) pay in cash to the Holder the amount by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by
multiplying (A) the number of shares of Common Stock issuable upon conversion of this Note that Maker was required to deliver to the Holder in connection with the conversion at issue times (B) the price at which the sell order giving rise
to such purchase obligation was executed, and (2) at the option of the Holder, either reinstate the portion of the Note and equivalent number of shares of Common Stock for which such conversion was not honored or deliver to the Holder the
number of shares of Common Stock that would have been issued had Maker timely complied with its conversion and delivery obligations hereunder.

  
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For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted conversion of shares of Common Stock with an aggregate
sale price giving rise to such purchase obligation of $10,000, under clause (1) of the immediately preceding sentence the Maker shall be required to pay the Holder $1,000. The Holder shall provide the Maker written notice indicating the amounts
payable to the Holder in respect of the Buy-In, together with applicable confirmations and other evidence reasonably requested by the Maker. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it
hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to Maker’s failure to timely deliver certificates representing shares of Common Stock upon conversion of this
Note as required pursuant to the terms hereof. 
 (c) Holder’s Conversion Limitations. The Company shall not effect
any conversion of this Note, and a Holder shall not have the right to convert any portion of this Note, to the extent that after giving effect to the conversion set forth on the applicable Notice of Conversion, the Holder (together with the
Holder’s affiliates, and any persons acting as a group together with the Holder or any of the Holder’s affiliates) would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the
foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon conversion of this Note with respect to which such determination is being
made, but shall exclude the number of shares of Common Stock which are issuable upon (i) conversion of the remaining, unconverted principal amount of this Note beneficially owned by the Holder or any of its Affiliates and (ii) exercise or
conversion of the unexercised or unconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein (including, without limitation, any other Notes) beneficially
owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 3(c), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the
rules and regulations promulgated thereunder. To the extent that the limitation contained in this Section 3(C) applies, the determination of whether this Note is convertible (in relation to other securities owned by the Holder together with any
affiliates) and of which principal amount of this Note is convertible shall be in the sole discretion of the Holder, and the submission of a Notice of Conversion shall be deemed to be the Holder’s determination of whether this Note may be
converted (in relation to other securities owned by the Holder together with any affiliates) and which principal amount of this Note is convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this
restriction, the Holder will be deemed to represent to the Company each time it delivers a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Company shall have no obligation to
verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder. For purposes of this Section 3(c), in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following: (i) the
Company’s most recent periodic or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by the Company, or (iii) a more recent written notice by the Company or the Company’s transfer
agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then
outstanding.

  
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In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Note, by the
Holder or its affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 9.99% of the number of shares of the Common Stock outstanding
immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion of this Note held by the Holder. The Holder, upon not less than 61 days’ prior notice to the Company, may increase or decrease the Beneficial
Ownership Limitation provisions of this Section 3(c), provided that the Beneficial Ownership Limitation in no event exceeds 19.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock upon conversion of this Note held by the Holder and the Beneficial Ownership Limitation provisions of this Section 3(c) shall continue to apply. Any such increase or decrease will not be effective until the 61st day after such notice is delivered to the Company. The Beneficial
Ownership Limitation provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 3(c) to correct this paragraph (or any portion hereof) which may be defective or
inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a
successor holder of this Note. 
 (d) Adjustment of Conversion Price 

Until the Note has been paid in full or converted in full, the Conversion Price shall be subject to adjustment from time to time as follows: 

(i) Adjustments for Stock Splits and Combinations. If Maker shall at any time or from time to time after the original date of
issuance of this Note, effect a stock split of the outstanding Common Stock, the applicable Conversion Price in effect immediately prior to the stock split shall be proportionately decreased. If Maker shall at any time or from time to time
after the original date of issuance of this Note, combine the outstanding shares of Common Stock, the applicable Conversion Price in effect immediately prior to the combination shall be proportionately increased. Any adjustments under this
Section shall be effective at the close of business on the date the stock split or combination occurs. 
 (ii) Adjustments
for Subsequent Equity Sales. If, at any time while this Note is outstanding, the Maker, as applicable, sells or grants any option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues (or announces any sale,
grant or any option to purchase or other disposition), any Common Stock or Common Stock Equivalents entitling any Person to acquire shares of Common Stock at an effective price per share that is lower than the then Conversion Price (such lower
price, the “Base Conversion Price” and such issuances, collectively, a “Dilutive Issuance”) (if the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of
purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which are issued in connection with such issuance, be entitled to receive shares of Common
Stock at an effective price per share that is lower than the Conversion Price, such issuance shall be deemed to have occurred for less than the Conversion Price on such date of the Dilutive Issuance), then the Conversion Price shall be reduced to
equal the Base Conversion Price. 

  
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Such adjustment shall be made whenever such Common Stock or Common Stock Equivalents are issued. Notwithstanding the foregoing, no adjustment will be made under this Section 3(d)(ii) in
respect of an Exempt Issuance. The Maker shall notify the Holder in writing, no later than the Trading Day following the issuance of any Common Stock or Common Stock Equivalents subject to this Section 5(b), indicating therein the applicable
issuance price, or applicable reset price, exchange price, conversion price and other pricing terms (such notice, the “Dilutive Issuance Notice”). For purposes of clarification, whether or not the Maker provides a Dilutive Issuance
Notice pursuant to this Section 5(b), upon the occurrence of any Dilutive Issuance, the Holder is entitled to receive a number of Conversion Shares based upon the Base Conversion Price on or after the date of such Dilutive Issuance, regardless
of whether the Holder accurately refers to the Base Conversion Price in the Notice of Conversion. “Exempt Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers or directors of the Maker
pursuant to any existing stock or option plan or any stock or option plan duly adopted after the date hereof for such purpose, by a majority of the non-employee members of the Board of Directors or a majority of the members of a committee of
non-employee directors established for such purpose, (b) shares of Common Stock issued to employees, officers or directors of the Maker in lieu of cash compensation for services rendered to the Maker, (c) securities issued upon the
exercise or exchange of or conversion of any securities issued hereunder and/or other securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Note, provided that such
securities have not been amended since the date of this Note to increase the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities, and (d) securities issued pursuant to acquisitions
or strategic transactions approved by a majority of the disinterested directors of the Maker, provided that any such issuance shall only be to a Person (or to the equityholders of a Person) which is, itself or through its subsidiaries, an operating
company or an owner of an asset in a business synergistic with the business of the Maker and shall provide to the Maker additional benefits in addition to the investment of funds, but shall not include a transaction in which the Maker is issuing
securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities. 

(iii) Adjustments for Certain Dividends and Distributions. If Maker shall at any time or from time to time after the original
date of issuance of this Note, make or issue or set a record date for the determination of holders of Common Stock entitled to receive a dividend or other distribution payable in shares of Common Stock, then, and in each event, the applicable
Conversion Price in effect immediately prior to such event shall be decreased as of the time of such issuance or, in the event such record date shall have been fixed, as of the close of business on such record date, by multiplying, the applicable
Conversion Price then in effect by a fraction: 
 the numerator of which shall be the total number of shares of Common Stock
issued and outstanding immediately prior to the time of such issuance or the close of business on such record date; and 

  
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 the denominator of which shall be the total number of shares of Common Stock issued and
outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution. 

(iv) Adjustment for Other Dividends and Distributions. If Maker shall at any time or from time to time after the original
date of issuance of this Note, make or issue or set a record date for the determination of holders of Common Stock entitled to receive a dividend or other distribution payable in other than shares of Common Stock, then, and in each event, an
appropriate revision to the applicable Conversion Price shall be made and provision shall be made (by adjustments of the Conversion Price or otherwise) so that the holders of this Note shall receive upon conversions thereof, in addition to the
number of shares of Common Stock receivable thereon, the number of securities of Maker which they would have received had this Note been converted into Common Stock on the date of such event and had thereafter, during the period from the date of
such event to and including the Conversion Date, retained such securities (together with any distributions payable thereon during such period), giving application to all adjustments called for during such period under this Section with respect to
the rights of the Holder; provided, however, that if such record date shall have been fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the Conversion Price shall be adjusted pursuant to
this paragraph as of the time of actual payment of such dividends or distributions. 
 (v) Adjustments for Reclassification,
Exchange or Substitution. If the Common Stock issuable upon conversion of this Note at any time or from time to time after the original date of issuance of this Note shall be changed to the same or different number of shares of any class or
classes of stock, whether by reclassification, exchange, substitution or otherwise (other than by way of a stock split or combination of shares or stock dividends provided for herein, or a reorganization, merger, consolidation, or sale of assets
provided for herein, then, and in each event, an appropriate revision to the Conversion Price shall be made and provisions shall be made (by adjustments of the Conversion Price or otherwise) so that the Holder shall have the right thereafter to
convert this Note into the kind and amount of shares of stock and other securities receivable upon reclassification, exchange, substitution or other change, by holders of the number of shares of Common Stock into which such Note might have been
converted immediately prior to such reclassification, exchange, substitution or other change, all subject to further adjustment as provided herein. 
 (vi) Consideration for Stock. In case any shares of Common Stock or any Common Stock Equivalents (defined as “rights or warrants or options to purchase any Common Stock or Convertible
Securities (defined as “securities convertible into or exchangeable for, directly or indirectly, Common Stock”) shall be issued or sold: 
 in connection with any merger or consolidation in which Maker is the surviving corporation (other than any consolidation or merger in which the previously outstanding shares of Common Stock of Maker shall
be changed to or exchanged for the stock or other securities of another corporation), the amount of consideration therefor shall be, deemed to be the fair value, as determined reasonably and in good faith by the Board of Directors of Maker, of such
portion of the assets and business of the non-surviving corporation as such Board may determine to be attributable to such shares of Common Stock, Convertible Securities, rights or warrants or options, as the case may be; or

  
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 in the event of any consolidation or merger of Maker in which Maker is not the surviving
corporation or in which the previously outstanding shares of Common Stock of Maker shall be changed into or exchanged for the stock or other securities of another corporation, or in the event of any sale of all or substantially all of the assets of
Maker for stock or other securities of any corporation, Maker shall be deemed to have issued a number of shares of its Common Stock for stock or securities or other property of the other corporation computed on the basis of the actual exchange ratio
on which the transaction was predicated, and for a consideration equal to the fair market value on the date of such transaction of all such stock or securities or other property of the other corporation. If any such calculation results in
adjustment of the applicable Conversion Price, or the number of shares of Common Stock issuable upon conversion of the Note, the determination of the applicable Conversion Price or the number of shares of Common Stock issuable upon conversion of the
Note immediately prior to such merger, consolidation or sale, shall be made after giving effect to such adjustment of the number of shares of Common Stock issuable upon conversion of the Note. In the event Common Stock is issued with other
shares or securities or other assets of Maker for consideration which covers both, the consideration computed as provided in this Section shall be allocated among such securities and assets as determined in good faith by the Board of Directors of
Maker; or 
 for services, other than as permitted pursuant to Section 4(d)(x), the amount of consideration therefor shall
be deemed to be the par value of the Common Stock. 
 (vii) Record Date. In case Maker shall take record of the
holders of its Common Stock for the purpose of entitling them to subscribe for or purchase Common Stock or Convertible Securities, then the date of the issue or sale of the shares of Common Stock shall be deemed to be such record date. 

(viii) No Impairment. The Maker shall not, by amendment of its Articles of Incorporation, Bylaws, Operating Agreement or
other constitutional documents, or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms to be observed or performed hereunder by the Maker, but will at all times in good faith, assist in the carrying out of all the provisions of this Section and in the taking of all such action as may be necessary or appropriate in order
to protect the conversion rights of the Holder against impairment. In the event a Holder shall elect to convert any portion of the Note as provided herein, Maker cannot refuse conversion based on any claim that such Holder or anyone associated
or affiliated with such Holder has been engaged in any violation of law, violation of an agreement to which such Holder is a party or for any reason whatsoever, unless, an injunction from a court, or notice, restraining and or adjoining conversion
of all or of the Note shall have issued and Maker posts a surety bond for the benefit of such Holder in an amount equal to one hundred percent (100%) of the amount of the Note that the Holder has elected to convert, which bond shall remain in
effect until the completion of arbitration/litigation of the dispute and the proceeds of which shall be payable to such Holder (as liquidated damages) in the event it obtains judgment. 

  
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 (ix) Certificates as to Adjustments. Upon occurrence of each adjustment or
readjustment of the Conversion Price or number of shares of Common Stock issuable upon conversion of this Note pursuant to this Section, Maker at its expense shall promptly compute such adjustment or readjustment in accordance with the terms
hereof and furnish to the Holder a certificate setting forth such adjustment and readjustment, showing in detail the facts upon which such adjustment or readjustment is based. Maker shall, upon written request of the Holder, at any time,
furnish or cause to be furnished to the Holder a like certificate setting forth such adjustments and readjustments, the applicable Conversion Price in effect at the time, and the number of shares of Common Stock and the amount, if any, of other
securities or property which at the time would be received upon the conversion of this Note. Notwithstanding the foregoing, Maker shall not be obligated to deliver a certificate unless such certificate would reflect an increase or decrease of
at least one percent (1%) of such adjusted amount. 
 (x) Issue Taxes. The Maker shall pay any and all issue
and other taxes, excluding federal, state or local income taxes, that may be payable in respect of any issue or delivery of shares of Common Stock on conversion of this Note pursuant thereto; provided, however, that the Maker shall not
be obligated to pay any transfer taxes resulting from any transfer requested by the Holder in connection with any such conversion. 
 (xi) Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of this Note. All fractional shares shall be rounded up to the nearest whole share.

(xii) Reservation of Common Stock. Maker shall at all times when this Note shall be outstanding, reserve and keep available
out of its authorized but unissued Common Stock, such number of shares of Common Stock as shall from time to time be sufficient to effect the conversion of this Note. Maker shall, from time to time in accordance with Nevada law, increase the
authorized number of shares of Common Stock if at any time the unissued number of authorized shares shall not be sufficient to satisfy Maker’ obligations under this Section. 

(xiii) Regulatory Compliance. If any shares of Common Stock to be reserved for the purpose of conversion of this Note or any
interest accrued thereon require registration or listing with or approval of any governmental authority, stock exchange or other regulatory body under any federal or state law or regulation or otherwise before such shares may be validly issued or
delivered upon conversion, Maker shall, at its sole cost and expense, in good faith and as expeditiously as possible, endeavor to secure such registration, listing or approval, as the case may be. 

4. Nasdaq Limitations. Notwithstanding anything to the contrary in this Note, the Holder shall have no right to receive from the
Maker, upon conversion of this Note, such number of shares which together with such number of shares that may be issued by the Maker pursuant to those certain Convertible Promissory Notes issued pursuant to that certain Purchase Agreement dated
October 15, 2012, between the Maker and Hanover Holdings I, LLC, that is more than 19.999% of the amount of Common Stock of the Maker issued and outstanding on the date of the Exchange Agreement, unless the Maker’s shareholders shall have
approved the transactions contemplated hereby, including the issuance of shares upon conversion of this Note, in excess of 20% of the amount of Common Stock of the Maker issued and outstanding on the date of the Exchange Agreement. 

  
 13 

 5. No Waiver of the Holder’s Rights. All payments of principal shall be made
without setoff, deduction or counterclaim. No delay or failure on the part of the Holder in exercising any of its options, powers or rights, nor any partial or single exercise of its options, powers or rights shall constitute a waiver thereof or of
any other option, power or right, and no waiver on the part of the Holder of any of its options, powers or rights shall constitute a waiver of any other option, power or right. Maker hereby waives presentment of payment, protest, and all notices or
demands in connection with the delivery, acceptance, performance, default or endorsement of this Note. Acceptance by the Holder of less than the full amount due and payable hereunder shall in no way limit the right of the Holder to require full
payment of all sums due and payable hereunder in accordance with the terms hereof. 
 6. Modifications. No term or
provision contained herein may be modified, amended or waived except by written agreement or consent signed by the party to be bound thereby. 
 7. Cumulative Rights and Remedies; Usury. The rights and remedies of the Holder expressed herein are cumulative and not exclusive of any rights and remedies otherwise available under this Note, or
applicable law (including at equity). The election of the Holder to avail itself of any one or more remedies shall not be a bar to any other available remedies, which the Maker agrees the Holder may take from time to time. If it shall be found that
any interest paid or payable hereunder violates applicable laws governing usury, the applicable rate of interest due hereunder shall be reduced to the maximum permitted rate of interest under such law, and any interest previously paid in excess of
such legal limit shall be returned to the Maker by the Holder. 
 8. Severability. If any provision of this Note is
declared by a court of competent jurisdiction to be in any way invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain
applicable to all other persons and circumstances. 
 9. Successors and Assigns. This Note shall be binding upon the
Maker and its successors and shall inure to the benefit of the Holder and its successors and assigns. The term “Holder” as used herein, shall also include any endorsee, assignee or other holder of this Note. 

10. Lost or Stolen Promissory Note. If this Note is lost, stolen, mutilated or otherwise destroyed, the Maker shall execute and
deliver to the Holder a new promissory note containing the same terms, and in the same form, as this Note. In such event, the Maker may require the Holder to deliver to the Maker an affidavit of lost instrument and customary indemnity in respect
thereof as a condition to the delivery of any such new promissory note. 

  
 14 

 11. Governing Law. All questions concerning the construction, validity, enforcement
and interpretation of this Note shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each of the Maker and the Holder agree that
all legal proceedings concerning the interpretations, enforcement and defense of this Note shall be commenced in the state and federal courts sitting in the City of New York, County of New York (the “New York Courts”). Each of the
Maker and the Holder hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder (including with respect to the enforcement of this Note), and hereby irrevocably waives, and agrees
not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, or that such suit, action or proceeding is brought in an inconvenient forum. Each of the Maker and the Holder hereby
irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to the other at
the address in effect for notices to it under the Exchange Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to
serve process in any manner permitted by law. Each of the Maker and the Holder hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to
this Note or the transactions contemplated hereby. 
 12. Notice. Whenever notice is required to be given under this
Note, unless otherwise provided herein, such notice shall be given in accordance with the notice provisions of the Exchange Agreement. 
 13. Required Notice to the Holder. The Holder is to be notified by the Maker, within five (5), business days, in accordance with Section 12, of the existence or occurrence of any Event of
Default. 
 [Signature page follows] 

  
 15 

 The undersigned has executed this Note as a maker and not as a surety or guarantor or in any other capacity.

  

			
	CEREPLAST, INC.
		
	 By:
	 	 
		 	Name: Frederic Scheer
		 	Title:   Chief Executive Officer

  
 16 

 Exhibit B 
 NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXCHANGEABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO
AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT,
THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 AMENDED AND RESTATED CONVERTIBLE PROMISSORY NOTE 

 

			
	$500,000	  	October 15, 2012
	 	  	Amended and Restated November 8, 2012

 FOR VALUE RECEIVED, Cereplast, Inc., a Nevada corporation (the “Maker”), with its offices located at 300 N. Continental, Suite 100, El Segundo, CA 90245, promises to pay to the order of Magna
Group, LLC. (the “Payee”) or its registered assigns (with the Payee, the “Holder”), upon the terms set forth below, the principal sum of Five Hundred Thousand Dollars ($500,000) (this “Note”). The Note shall bear
interest at the rate of 6% per annum payable on the Maturity Date. Defined terms not otherwise defined herein shall have the meanings ascribed to such terms in that certain exchange agreement of even date herewith among the Maker and the Holder
(the “Exchange Agreement”). 
 This Note amends and restates in its entirety that certain Convertible
Promissory Note dated October 15, 2012, made by the Maker in favor of the Payee in the original principal amount of Five Hundred Thousand Dollars ($500,000) (the “ Existing Note “); provided , that this Note is given
solely in substitution of the Existing Note and not in repayment or satisfaction thereof. The Maker hereby acknowledges and agrees that simultaneously with the Maker’s execution and delivery of this Note to the Payee, the Payee has agreed to
deliver to the Maker the Existing Note, marked “cancelled”. 
 1. Payments. 

(a) Unless an Event of Default shall have previously occurred and be continuing or this Note is sooner converted into shares of
Maker’s common stock pursuant to the terms herein, the full amount of principal under this Note shall be due and payable on October 15, 2013 (the “Maturity Date”). 

  
 17 

 2. Events of Default. 

(a) “Event of Default”, wherever used herein, means any one of the following events (whatever the reason and whether it
shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body): 

(i) any default in the payment of the principal of this Note, as and when the same shall become due and payable, which is not cured
within 3 Trading Days; 
 (ii) Maker shall fail to observe or perform any obligation or shall breach any term or provision of
this Note and such failure or breach shall not have been remedied within thirty (30) business days after the date on which notice of such failure or breach shall have been delivered (other than those occurrences described in other provisions of
this Section 2 for which a different grace or cure period is specified, or for which no cure period is specified and which constitute immediate Events of Default); 
 (iii) Maker shall fail to observe or perform any of its material obligations owed to the Holder or any other material covenant, agreement, representation or warranty contained in, or otherwise commit any
material breach hereunder or in any other agreement executed in connection herewith, including the Exchange Agreement which failure shall not have been remedied within thirty (30) business days after the date on which notice of such failure
shall have been delivered; 
 (iv) Maker shall commence, or there shall be commenced against the Maker a case under any
applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the Maker commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or
liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to the Maker, or there is commenced against the Maker any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of sixty
(60) days; or the Maker is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or the Maker suffers any appointment of any custodian or the like for it or any substantial
part of its property which continues undischarged or unstayed for a period of 60 days; or the Maker makes a general assignment for the benefit of creditors; or the Maker shall fail to pay, or shall state that it is unable to pay, or shall be unable
to pay, its debts generally as they become due; or the Maker shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts; or the Maker shall by any act or failure to act expressly indicate
its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by the Maker for the purpose of effecting any of the foregoing; 
 (v) Maker shall fail to deliver shares of Common Stock upon the conversion of any Notes and such failure continues for eight (8) calendar days following the scheduled settlement date for such
conversion. 
 (vi) If a judgment or judgments for the payment of money in an amount, individually or in the aggregate, of at
least One Million ($1,000,000) shall be rendered against Maker and shall remain unsatisfied and unstayed for a period of ten (10) days or more. 

  
 18 

 (b) If any Event of Default occurs and shall be continuing, the full principal amount of
this Note shall become, at the Holder’s election, immediately due and payable in cash. 
 (c) The Holder need not provide
and the Maker hereby waives any presentment, demand, protest or other notice of any kind. Such declaration may be rescinded and annulled by the Holder at any time prior to payment hereunder. No such rescission or annulment shall affect any
subsequent Event of Default or impair any right consequent thereon. 
 3. Conversion 

a. Conversion Option  
 At any time after the date of issuance of this Note, this Note shall be convertible (in whole or in part), at the option of the Holder (the “Conversion Option”), into such number of fully
paid and non-assessable shares of Common Stock of Maker (the “Common Stock”) as is determined by dividing (x) that portion of the outstanding balance under this Note as of such date that the Holder elects to convert by
(y) the Conversion Price (as defined below) then in effect on the date (the “Conversion Date”) on which the Holder faxes a notice of conversion (the “Conversion Notice”), duly executed, to Maker, provided,
however, that the Conversion Price shall be subject to adjustment as described herein. To effect conversions hereunder, the Holder shall not be required to physically surrender this Note to the Company unless the entire principal amount of this
Note, plus all accrued and unpaid interest thereon, has been so converted. Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Not in an amount equal to the applicable conversion. The Holder and the
Company shall maintain records showing the principal amount(s) converted and the date of such conversion(s). The Company may deliver an objection to any Notice of Conversion within one (1) Business Day of delivery of a Notice of Conversion. In
the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error. The Holder, and any assignee by acceptance of this Note, acknowledge and agree that, by reason of the
provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note may be less than the amount stated on the face hereof. 

For purposes of this Section 3 the following terms shall mean as follows: 

“Conversion Price” means 75% of the average of the three lowest VWAPs during the ten (10) consecutive Trading Day
period immediately prior to the date of conversion. 
 “VWAP” means, for any date, the price determined by the
first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market
on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if the OTC Bulletin Board is not a Trading Market, the volume
weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock
are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or
(d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Securities then outstanding and reasonably acceptable to
the Maker, the fees and expenses of which shall be paid by the Maker. 

  
 19 

 “Trading Day” means a day on which any of the following markets or
exchanges on which the Common Stock is listed or quoted for trading on the date in question is open for trading: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the
OTC Bulletin Board (or any successors to any of the foregoing). 
 b. Mechanics of Conversion 

(i) Not later than three (3) Trading Days after any Conversion Date, Maker or its designated transfer agent, as applicable, shall
issue and deliver to the Holder, a certificate registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder shall be entitled, within three Trading Days after the Conversion Date (the
“Delivery Date”). If in the case of any Conversion Notice such certificate or certificates are not delivered to or as directed by the Holder by the Delivery Date, the Holder shall be entitled by written notice to Maker at any
time on or before its receipt of such certificate or certificates thereafter, to rescind such conversion, in which event Maker shall immediately return the Note tendered for conversion (if applicable), and whereupon the Maker and the Holder shall
each be restored to their respective positions immediately prior to the delivery of such notice of revocation. 
 (ii) The Maker
understands that a delay in the delivery of the shares of Common Stock upon conversion of this Note beyond the Delivery Date could result in economic loss to the Holder. If Maker fails to deliver to the Holder such certificates by the Delivery
Date, the Maker shall pay to the Holder, in cash, an amount per Trading Day for each Trading Day until such certificates are delivered, together with interest on such amount at a rate of 10% per annum, accruing until such amount and any accrued
interest thereon is paid in full, equal to the greater of: (A) (i) 1% of the aggregate amount of the Note requested to be converted for the first five (5) Trading Days after the Delivery Date and (ii) 2% of the aggregate amount
of the Note requested to be converted for each Trading Day thereafter; and (B) $1,000 per day (which amount shall be paid as liquidated damages and not as a penalty). Nothing herein shall limit the Holder’s right to pursue actual
damages for Maker’s failure to deliver certificates representing shares of Common Stock upon conversion within the period specified herein and the Holder shall have the right to pursue all remedies available to it at law or in equity
(including, without limitation, a decree of specific performance and/or injunctive relief). Notwithstanding anything to the contrary contained herein, the Holder shall be entitled to withdraw a Conversion Notice, and upon such withdrawal the
Maker shall only be obligated to pay the liquidated damages accrued through the date the Conversion Notice is withdrawn. 

  
 20 

 (iii) In addition to any other rights available to the Holder, if Maker fails to cause its
transfer agent to transmit to the Holder a certificate or certificates representing the shares of Common Stock issuable upon conversion of this Note on or before the Delivery Date, and if after such date the Holder is required by its broker to
purchase (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the shares of Common Stock issuable upon conversion of this Note which the Holder anticipated receiving upon such
conversion (a “Buy-In”), then the Maker shall (1) pay in cash to the Holder the amount by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so
purchased exceeds (y) the amount obtained by multiplying (A) the number of shares of Common Stock issuable upon conversion of this Note that Maker was required to deliver to the Holder in connection with the conversion at issue times
(B) the price at which the sell order giving rise to such purchase obligation was executed, and (2) at the option of the Holder, either reinstate the portion of the Note and equivalent number of shares of Common Stock for which such
conversion was not honored or deliver to the Holder the number of shares of Common Stock that would have been issued had Maker timely complied with its conversion and delivery obligations hereunder. For example, if the Holder purchases Common
Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted conversion of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (1) of the
immediately preceding sentence the Maker shall be required to pay the Holder $1,000. The Holder shall provide the Maker written notice indicating the amounts payable to the Holder in respect of the Buy-In, together with applicable confirmations and
other evidence reasonably requested by the Maker. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief with respect to Maker’s failure to timely deliver certificates representing shares of Common Stock upon conversion of this Note as required pursuant to the terms hereof. 

(c) Holder’s Conversion Limitations. The Company shall not effect any conversion of this Note, and a Holder shall not have the
right to convert any portion of this Note, to the extent that after giving effect to the conversion set forth on the applicable Notice of Conversion, the Holder (together with the Holder’s affiliates, and any persons acting as a group together
with the Holder or any of the Holder’s affiliates) would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned
by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon conversion of this Note with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which are
issuable upon (i) conversion of the remaining, unconverted principal amount of this Note beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any other
securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein (including, without limitation, any other Notes) beneficially owned by the Holder or any of its Affiliates. Except as set
forth in the preceding sentence, for purposes of this Section 3(c), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. To the extent that the
limitation contained in this Section 3(C) applies, the determination of whether this Note is convertible (in relation to other securities owned by the Holder together with any affiliates) and of which principal amount of this Note is
convertible shall be in the sole discretion of the Holder, and the submission of a Notice of Conversion shall be deemed to be the Holder’s determination of whether this Note may be converted (in relation to other securities owned by the Holder
together with any affiliates) and which principal amount of this Note is convertible, in each case subject to the Beneficial Ownership Limitation. 

  
 21 

 
To ensure compliance with this restriction, the Holder will be deemed to represent to the Company each time it delivers a Notice of Conversion that such Notice of Conversion has not violated the
restrictions set forth in this paragraph and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance
with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 3(c), in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of
outstanding shares of Common Stock as stated in the most recent of the following: (i) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (ii) a more recent public announcement by the
Company, or (iii) a more recent written notice by the Company or the Company’s transfer agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two
Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise
of securities of the Company, including this Note, by the Holder or its affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 9.99% of
the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion of this Note held by the Holder. The Holder, upon not less than 61 days’ prior notice to the
Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 3(c), provided that the Beneficial Ownership Limitation in no event exceeds 19.99% of the number of shares of the Common Stock outstanding
immediately after giving effect to the issuance of shares of Common Stock upon conversion of this Note held by the Holder and the Beneficial Ownership Limitation provisions of this Section 3(c) shall continue to apply. Any such increase or
decrease will not be effective until the 61st day after
such notice is delivered to the Company. The Beneficial Ownership Limitation provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 3(c) to correct this
paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation. The
limitations contained in this paragraph shall apply to a successor holder of this Note. 
 (d) Adjustment of Conversion
Price 
 Until the Note has been paid in full or converted in full, the Conversion Price shall be subject to adjustment from time to time as
follows: 
 (i) Adjustments for Stock Splits and Combinations. If Maker shall at any time or from time to time after
the original date of issuance of this Note, effect a stock split of the outstanding Common Stock, the applicable Conversion Price in effect immediately prior to the stock split shall be proportionately decreased. If Maker shall at any time or
from time to time after the original date of issuance of this Note, combine the outstanding shares of Common Stock, the applicable Conversion Price in effect immediately prior to the combination shall be proportionately increased. Any
adjustments under this Section shall be effective at the close of business on the date the stock split or combination occurs. 

  
 22 

 (ii) Adjustments for Subsequent Equity Sales. If, at any time while this Note is
outstanding, the Maker, as applicable, sells or grants any option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues (or announces any sale, grant or any option to purchase or other disposition), any Common Stock
or Common Stock Equivalents entitling any Person to acquire shares of Common Stock at an effective price per share that is lower than the then Conversion Price (such lower price, the “Base Conversion Price” and such issuances,
collectively, a “Dilutive Issuance”) (if the holder of the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or
exchange prices or otherwise, or due to warrants, options or rights per share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per share that is lower than the Conversion Price,
such issuance shall be deemed to have occurred for less than the Conversion Price on such date of the Dilutive Issuance), then the Conversion Price shall be reduced to equal the Base Conversion Price. Such adjustment shall be made whenever such
Common Stock or Common Stock Equivalents are issued. Notwithstanding the foregoing, no adjustment will be made under this Section 3(d)(ii) in respect of an Exempt Issuance. The Maker shall notify the Holder in writing, no later than the Trading
Day following the issuance of any Common Stock or Common Stock Equivalents subject to this Section 5(b), indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price and other pricing terms (such
notice, the “Dilutive Issuance Notice”). For purposes of clarification, whether or not the Maker provides a Dilutive Issuance Notice pursuant to this Section 5(b), upon the occurrence of any Dilutive Issuance, the Holder is
entitled to receive a number of Conversion Shares based upon the Base Conversion Price on or after the date of such Dilutive Issuance, regardless of whether the Holder accurately refers to the Base Conversion Price in the Notice of Conversion.
“Exempt Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers or directors of the Maker pursuant to any existing stock or option plan or any stock or option plan duly adopted after the
date hereof for such purpose, by a majority of the non-employee members of the Board of Directors or a majority of the members of a committee of non-employee directors established for such purpose, (b) shares of Common Stock issued to
employees, officers or directors of the Maker in lieu of cash compensation for services rendered to the Maker, (c) securities issued upon the exercise or exchange of or conversion of any securities issued hereunder and/or other securities
exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Note, provided that such securities have not been amended since the date of this Note to increase the number of such securities or
to decrease the exercise price, exchange price or conversion price of such securities, and (d) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the Maker, provided
that any such issuance shall only be to a Person (or to the equityholders of a Person) which is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic with the business of the Maker and shall
provide to the Maker additional benefits in addition to the investment of funds, but shall not include a transaction in which the Maker is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is
investing in securities. 

  
 23 

 (iii) Adjustments for Certain Dividends and Distributions. If Maker shall at
any time or from time to time after the original date of issuance of this Note, make or issue or set a record date for the determination of holders of Common Stock entitled to receive a dividend or other distribution payable in shares of Common
Stock, then, and in each event, the applicable Conversion Price in effect immediately prior to such event shall be decreased as of the time of such issuance or, in the event such record date shall have been fixed, as of the close of business on such
record date, by multiplying, the applicable Conversion Price then in effect by a fraction: 
 the numerator of which shall be the
total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date; and 
 the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date plus the
number of shares of Common Stock issuable in payment of such dividend or distribution. 
 (iv) Adjustment for Other Dividends
and Distributions. If Maker shall at any time or from time to time after the original date of issuance of this Note, make or issue or set a record date for the determination of holders of Common Stock entitled to receive a dividend or other
distribution payable in other than shares of Common Stock, then, and in each event, an appropriate revision to the applicable Conversion Price shall be made and provision shall be made (by adjustments of the Conversion Price or otherwise) so that
the holders of this Note shall receive upon conversions thereof, in addition to the number of shares of Common Stock receivable thereon, the number of securities of Maker which they would have received had this Note been converted into Common Stock
on the date of such event and had thereafter, during the period from the date of such event to and including the Conversion Date, retained such securities (together with any distributions payable thereon during such period), giving application to
all adjustments called for during such period under this Section with respect to the rights of the Holder; provided, however, that if such record date shall have been fixed and such dividend is not fully paid or if such distribution is not fully
made on the date fixed therefor, the Conversion Price shall be adjusted pursuant to this paragraph as of the time of actual payment of such dividends or distributions. 
 (v) Adjustments for Reclassification, Exchange or Substitution. If the Common Stock issuable upon conversion of this Note at any time or from time to time after the original date of issuance
of this Note shall be changed to the same or different number of shares of any class or classes of stock, whether by reclassification, exchange, substitution or otherwise (other than by way of a stock split or combination of shares or stock
dividends provided for herein, or a reorganization, merger, consolidation, or sale of assets provided for herein, then, and in each event, an appropriate revision to the Conversion Price shall be made and provisions shall be made (by adjustments of
the Conversion Price or otherwise) so that the Holder shall have the right thereafter to convert this Note into the kind and amount of shares of stock and other securities receivable upon reclassification, exchange, substitution or other change, by
holders of the number of shares of Common Stock into which such Note might have been converted immediately prior to such reclassification, exchange, substitution or other change, all subject to further adjustment as provided herein. 

  
 24 

 (vi) Consideration for Stock. In case any shares of Common Stock or any Common
Stock Equivalents (defined as “rights or warrants or options to purchase any Common Stock or Convertible Securities (defined as “securities convertible into or exchangeable for, directly or indirectly, Common Stock”) shall be issued
or sold: 
 in connection with any merger or consolidation in which Maker is the surviving corporation (other than any
consolidation or merger in which the previously outstanding shares of Common Stock of Maker shall be changed to or exchanged for the stock or other securities of another corporation), the amount of consideration therefor shall be, deemed to be the
fair value, as determined reasonably and in good faith by the Board of Directors of Maker, of such portion of the assets and business of the non-surviving corporation as such Board may determine to be attributable to such shares of Common Stock,
Convertible Securities, rights or warrants or options, as the case may be; or 
 in the event of any consolidation or merger of
Maker in which Maker is not the surviving corporation or in which the previously outstanding shares of Common Stock of Maker shall be changed into or exchanged for the stock or other securities of another corporation, or in the event of any sale of
all or substantially all of the assets of Maker for stock or other securities of any corporation, Maker shall be deemed to have issued a number of shares of its Common Stock for stock or securities or other property of the other corporation computed
on the basis of the actual exchange ratio on which the transaction was predicated, and for a consideration equal to the fair market value on the date of such transaction of all such stock or securities or other property of the other
corporation. If any such calculation results in adjustment of the applicable Conversion Price, or the number of shares of Common Stock issuable upon conversion of the Note, the determination of the applicable Conversion Price or the number of
shares of Common Stock issuable upon conversion of the Note immediately prior to such merger, consolidation or sale, shall be made after giving effect to such adjustment of the number of shares of Common Stock issuable upon conversion of the
Note. In the event Common Stock is issued with other shares or securities or other assets of Maker for consideration which covers both, the consideration computed as provided in this Section shall be allocated among such securities and assets
as determined in good faith by the Board of Directors of Maker; or 
 for services, other than as permitted pursuant to
Section 4(d)(x), the amount of consideration therefor shall be deemed to be the par value of the Common Stock. 
 (vii)
Record Date. In case Maker shall take record of the holders of its Common Stock for the purpose of entitling them to subscribe for or purchase Common Stock or Convertible Securities, then the date of the issue or sale of the shares of
Common Stock shall be deemed to be such record date. 

  
 25 

 (viii) No Impairment. The Maker shall not, by amendment of its Articles of
Incorporation, Bylaws, Operating Agreement or other constitutional documents, or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to
avoid the observance or performance of any of the terms to be observed or performed hereunder by the Maker, but will at all times in good faith, assist in the carrying out of all the provisions of this Section and in the taking of all such
action as may be necessary or appropriate in order to protect the conversion rights of the Holder against impairment. In the event a Holder shall elect to convert any portion of the Note as provided herein, Maker cannot refuse conversion based
on any claim that such Holder or anyone associated or affiliated with such Holder has been engaged in any violation of law, violation of an agreement to which such Holder is a party or for any reason whatsoever, unless, an injunction from a court,
or notice, restraining and or adjoining conversion of all or of the Note shall have issued and Maker posts a surety bond for the benefit of such Holder in an amount equal to one hundred percent (100%) of the amount of the Note that the Holder
has elected to convert, which bond shall remain in effect until the completion of arbitration/litigation of the dispute and the proceeds of which shall be payable to such Holder (as liquidated damages) in the event it obtains judgment. 

(ix) Certificates as to Adjustments. Upon occurrence of each adjustment or readjustment of the Conversion Price or number of
shares of Common Stock issuable upon conversion of this Note pursuant to this Section, Maker at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to the Holder a certificate
setting forth such adjustment and readjustment, showing in detail the facts upon which such adjustment or readjustment is based. Maker shall, upon written request of the Holder, at any time, furnish or cause to be furnished to the Holder a like
certificate setting forth such adjustments and readjustments, the applicable Conversion Price in effect at the time, and the number of shares of Common Stock and the amount, if any, of other securities or property which at the time would be received
upon the conversion of this Note. Notwithstanding the foregoing, Maker shall not be obligated to deliver a certificate unless such certificate would reflect an increase or decrease of at least one percent (1%) of such adjusted amount.

 (x) Issue Taxes. The Maker shall pay any and all issue and other taxes, excluding federal, state or local income
taxes, that may be payable in respect of any issue or delivery of shares of Common Stock on conversion of this Note pursuant thereto; provided, however, that the Maker shall not be obligated to pay any transfer taxes resulting from any
transfer requested by the Holder in connection with any such conversion. 
 (xi) Fractional Shares. No fractional
shares of Common Stock shall be issued upon conversion of this Note. All fractional shares shall be rounded up to the nearest whole share.
 (xii) Reservation of Common Stock. Maker shall at all times when this Note shall be outstanding, reserve and keep available out of its authorized but unissued Common Stock, such number of
shares of Common Stock as shall from time to time be sufficient to effect the conversion of this Note. Maker shall, from time to time in accordance with Nevada law, increase the authorized number of shares of Common Stock if at any time the
unissued number of authorized shares shall not be sufficient to satisfy Maker’ obligations under this Section. 

(xiii) Regulatory Compliance. If any shares of Common Stock to be reserved for the purpose of conversion of this Note or any
interest accrued thereon require registration or listing with or approval of any governmental authority, stock exchange or other regulatory body under any federal or state law or regulation or otherwise before such shares may be validly issued or
delivered upon conversion, Maker shall, at its sole cost and expense, in good faith and as expeditiously as possible, endeavor to secure such registration, listing or approval, as the case may be. 

  
 26 

 4. Nasdaq Limitations. Notwithstanding anything to the contrary in this Note, the
Holder shall have no right to receive from the Maker, upon conversion of this Note, such number of shares which together with such number of shares that may be issued by the Maker pursuant to those certain Convertible Promissory Notes issued
pursuant to that certain Purchase Agreement dated October 15, 2012, between the Maker and Hanover Holdings I, LLC, that is more than 19.999% of the amount of Common Stock of the Company issued and outstanding on the date of the Exchange
Agreement, unless the Maker’s shareholders shall have approved the transactions contemplated hereby, including the issuance of shares upon conversion of this Note, in excess of 20% of the amount of Common Stock of the Maker issued and
outstanding on the date of the Exchange Agreement. 
 5. No Waiver of the Holder’s Rights. All payments of principal
shall be made without setoff, deduction or counterclaim. No delay or failure on the part of the Holder in exercising any of its options, powers or rights, nor any partial or single exercise of its options, powers or rights shall constitute a waiver
thereof or of any other option, power or right, and no waiver on the part of the Holder of any of its options, powers or rights shall constitute a waiver of any other option, power or right. Maker hereby waives presentment of payment, protest, and
all notices or demands in connection with the delivery, acceptance, performance, default or endorsement of this Note. Acceptance by the Holder of less than the full amount due and payable hereunder shall in no way limit the right of the Holder to
require full payment of all sums due and payable hereunder in accordance with the terms hereof. 
 6. Modifications. No
term or provision contained herein may be modified, amended or waived except by written agreement or consent signed by the party to be bound thereby. 
 7. Cumulative Rights and Remedies; Usury. The rights and remedies of the Holder expressed herein are cumulative and not exclusive of any rights and remedies otherwise available under this Note, or
applicable law (including at equity). The election of the Holder to avail itself of any one or more remedies shall not be a bar to any other available remedies, which the Maker agrees the Holder may take from time to time. If it shall be found that
any interest paid or payable hereunder violates applicable laws governing usury, the applicable rate of interest due hereunder shall be reduced to the maximum permitted rate of interest under such law, and any interest previously paid in excess of
such legal limit shall be returned to the Maker by the Holder. 
 8. Severability. If any provision of this Note is
declared by a court of competent jurisdiction to be in any way invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain
applicable to all other persons and circumstances. 
 9. Successors and Assigns. This Note shall be binding upon the
Maker and its successors and shall inure to the benefit of the Holder and its successors and assigns. The term “Holder” as used herein, shall also include any endorsee, assignee or other holder of this Note. 

  
 27 

 10. Lost or Stolen Promissory Note. If this Note is lost, stolen, mutilated or
otherwise destroyed, the Maker shall execute and deliver to the Holder a new promissory note containing the same terms, and in the same form, as this Note. In such event, the Maker may require the Holder to deliver to the Maker an affidavit of lost
instrument and customary indemnity in respect thereof as a condition to the delivery of any such new promissory note. 
 11.
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to
the principles of conflicts of law thereof. Each of the Maker and the Holder agree that all legal proceedings concerning the interpretations, enforcement and defense of this Note shall be commenced in the state and federal courts sitting in the City
of New York, County of New York (the “New York Courts”). Each of the Maker and the Holder hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder (including with
respect to the enforcement of this Note), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, or that such suit, action or
proceeding is brought in an inconvenient forum. Each of the Maker and the Holder hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via
registered or certified mail or overnight delivery (with evidence of delivery) to the other at the address in effect for notices to it under the Exchange Agreement and agrees that such service shall constitute good and sufficient service of process
and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each of the Maker and the Holder hereby irrevocably waives, to the fullest extent permitted by applicable
law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated hereby. 
 12. Notice. Whenever notice is required to be given under this Note, unless otherwise provided herein, such notice shall be given in accordance with the notice provisions of the Exchange Agreement.

 13. Required Notice to the Holder. The Holder is to be notified by the Maker, within five (5), business days, in
accordance with Section 12, of the existence or occurrence of any Event of Default. 
 [Signature page follows]

  
 28 

 The undersigned has executed this Note as a maker and not as a surety or guarantor or in any other capacity.

  

			
	CEREPLAST, INC.
		
	 By:
	 	 
		 	Name: Frederic Scheer
		 	Title:   Chief Executive Officer

  
 29First Supplemental Indenture

 Exhibit 4.1 
 FIRST SUPPLEMENTAL INDENTURE 
 Dated as of November 15, 2012

 among 
 CHAPARRAL ENERGY, INC. 
 as Issuer, 

The GUARANTORS named therein 
 and 
 WELLS FARGO BANK, NATIONAL ASSOCIATION 

as Trustee 
  

 
 7.625% Senior
Notes due 2022 

 This FIRST SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”),
dated as of November 15, 2012, by and among Chaparral Energy, Inc., a Delaware corporation (the “Issuer”), the Guarantors under the Indenture referred to below, and Wells Fargo Bank, National Association, as trustee under the
Indenture referred to below (the “Trustee”). 
 W I T N E S S E T H : 

WHEREAS, the Issuer, the Guarantors and the Trustee are parties to that certain Indenture dated as of May 2, 2012 (the
“Indenture”), that governs the Issuer’s existing outstanding $400,000,000 aggregate principal amount of 7.625% Senior Notes due 2022 (the “Initial Notes”); 

WHEREAS, Section 2.1(d) of the Indenture provides that the Issuer shall be entitled, subject to its compliance with
Section 4.12 of the Indenture, to issue Additional Notes ranking pari passu with the Initial Notes without notice to or consent of the Holders having the same terms as to status, redemption or otherwise as the Initial Notes, and that such
Additional Notes shall be issued with the benefit of an indenture supplemental to the Indenture; 
 WHEREAS, the Issuer and the
Guarantors desire to execute and deliver this Supplemental Indenture for the purpose of issuing $150,000,000 in aggregate principal amount of Additional Notes having the same terms as to status, redemption or otherwise as the Initial Notes (the
“New Notes” and, together with the Initial Notes, the “Notes”); 
 WHEREAS, the execution and delivery of
this Supplemental Indenture has been duly authorized and all conditions and requirements necessary to make this Supplemental Indenture a valid and binding agreement of the Issuer and the Guarantors have been duly performed and complied with; and

 WHEREAS, in accordance with Sections 2.2, Section 9.6, and 11.4 of the Indenture, the Issuer has delivered an
Officers’ Certificate and an Opinion of Counsel to the Trustee stating that the execution of this Supplemental Indenture is authorized or permitted by the Indenture, that the issuance of the New Notes does not give rise to an Event of Default,
complies with the Indenture, and has been duly authorized by the Issuer, that this Supplemental Indenture complies with the provisions of the Indenture and that all conditions precedent and covenants, if any, provided for in the Indenture relating
to the execution of this Supplemental Indenture have been satisfied. 
 NOW, THEREFORE, in consideration of the above premises
and for other good and valuable consideration, the receipt of which is hereby acknowledged, each party hereby agrees, for the benefit of the others and for the equal and ratable benefit of the Holders of the Notes, as follows: 

1. Capitalized Terms. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

 2. New Notes. As of the date hereof, the Issuer hereby creates and issues the New Notes under the Indenture, having
the same terms as the Initial Notes, at an issue price of 104.5%, plus accrued and unpaid interest from November 15, 2012. The New Notes will be consolidated with and form a single class with the Initial Notes for all purpose of the Indenture.
The New Notes and the Trustee’s certificate of authentication relating thereto shall be substantially in the form of Exhibit A hereto. The first interest payment date of the New Notes will be May 15, 2013. The New Notes will, when issued,
be considered Notes issued pursuant to the Indenture for all purposes thereunder and will be subject to and take benefit of all the terms, conditions and provisions of the Indenture. 

3. Authentication of New Notes. The Trustee shall, pursuant to an Authentication Order delivered in accordance with
Section 2.2 of the Indenture, authenticate the New Notes. 
 4. CUSIP. The CUSIP numbers for the New Notes sold by
the initial purchasers of the New Notes in reliance on Rule 144A and Regulation S shall be 15942RAE9 and U16002AG9, respectively. 

 5. Restricted Notes. The Global Notes evidencing the New Notes shall initially bear
the Global Note Legend, the Private Placement Legend and, in the case of the Regulation S Global Note evidencing the New Notes, a Regulation S Temporary Global Note Legend, and shall be sold by the initial purchasers of the New Notes in reliance on
Rule 144A or Regulation S. 
 6. Ratification of Indenture; Supplemental Indenture Part of Indenture. Except as expressly
supplemented hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes,
and every Holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby and thereby. 
 7.
Severability. In case any provision in this Supplemental Indenture, the Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby. 
 8. Governing Law. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. Each of the parties hereto agrees to submit to the jurisdiction of the courts of the State of New York in any action or proceeding arising out of or relating to this Supplemental Indenture.

 9. Counterparts. The parties hereto may sign any number of copies of this Supplemental Indenture. Each signed copy
shall be an original, but all of them together represent the same agreement. 
 10. Effect of Headings. The Section
headings herein are for convenience only and shall not affect the construction hereof. 
 11. The Trustee. The Trustee
makes no representation as to the validity or adequacy of this Supplemental Indenture or the New Notes, and it shall not be accountable for the Issuer’s use of the proceeds from the New Notes, and it shall not be responsible for any statement
of the Issuer in this Supplemental Indenture or the New Notes other than the Trustee’s certificate of authentication. 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed as of the day and year written above. 
  

			
	CHAPARRAL ENERGY, INC.
		
	By:	 	/s/ Mark A. Fischer
	Name:	 	Mark A. Fischer
	Title:	 	President and Chief Executive Officer
	
	GUARANTORS:
	
	CHAPARRAL ENERGY, L.L.C.
	CHAPARRAL RESOURCES, L.L.C.
	CHAPARRAL CO2, L.L.C.
	CEI ACQUISITION, L.L.C.
	CEI PIPELINE, L.L.C.
	CHAPARRAL EXPLORATION, L.L.C.
	ROADRUNNER DRILLING, L.L.C.
	CHAPARRAL REAL ESTATE, 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
	
	 WELLS FARGO BANK, NATIONAL
 ASSOCIATION, as Trustee

		
	By:	 	/s/ Patrick Giordano
	Name:	 	Patrick Giordano
	Title:	 	Vice President

 Exhibit A 

 [Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture] 

[Insert the Private Placement Legend, if applicable pursuant to the provisions of the Indenture] 

[Insert the Regulation S Temporary Global Note Legend, if applicable pursuant to the provisions of the Indenture] 

  
 A-1

 CUSIP No.: [            ]

 CHAPARRAL ENERGY, INC. 
 7.625% Senior Note due 2022 
  

			
	No. [            ]	  	[$             ]

 CHAPARRAL ENERGY, INC., a Delaware corporation (the “Issuer,” which term includes any successor
entities), for value received promises to pay to CEDE & CO. or registered assigns the principal sum of [            ] Dollars on November 15, 2022. 

Interest Payment Dates: May 15 and November 15, commencing May 15, 2013. 

Record Dates: May 1 and November 1. 
 Reference is made to the further provisions of this Note contained herein, which will for all purposes have the same effect as if set forth at this place. 

  
 A-2

 IN WITNESS WHEREOF, the Issuer has caused this Note to be signed manually or by facsimile by
its duly authorized officers and a facsimile of its corporate seal to be affixed hereto or imprinted hereon. 
  

			
	CHAPARRAL ENERGY, INC.
		
	By:  	 	 
		 	Name:
		 	Title:

 Dated: 

Certificate of Authentication 

This is one of the 7.625% Senior Notes due 2022 referred to in the within-mentioned Indenture. 

 

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
		
	By:  	 	 
		 	Authorized Signatory

 Date of Authentication: 

  
 A-3

 (REVERSE OF SECURITY) 

7.625% Senior Note due 2022 
 (1) Interest. CHAPARRAL ENERGY, INC. (the “Issuer”) promises to pay interest on the principal amount of this Note at the rate per annum shown above and Liquidated Damages, if any, payable
pursuant to Section 2(d) of the Registration Rights Agreement referred to below. Interest on the Notes will accrue from the most recent date on which interest has been paid or, if no interest has been paid, from November 15, 2012. The
Issuer will pay interest and Liquidated Damages, if any, semi-annually in arrears on each Interest Payment Date, commencing May 15, 2013. Interest will be computed on the basis of a 360-day year of twelve 30-day months and, in the case of a
partial month, the actual number of days elapsed. 
 The Issuer shall pay interest on overdue principal and on overdue
installments of interest and Liquidated Damages, if any, from time to time on demand at a rate of 0.5 percentage points per annum in excess of the rate borne by the Notes and on overdue installments of interest (without regard to any applicable
grace periods) to the extent lawful. 
 (2) Method of Payment. The Issuer shall pay interest and Liquidated Damages, if
any, on the Notes (except defaulted interest) to the Persons who are the registered Holders at the close of business on the Record Date immediately preceding the Interest Payment Date even if the Notes are canceled on registration of transfer or
registration of exchange after such Record Date. Holders must surrender Notes to a Paying Agent to collect principal payments. The Issuer shall pay principal, premium and Liquidated Damages, if any, and interest in money of the United States that at
the time of payment is legal tender for payment of public and private debts (“U.S. Legal Tender”). The Issuer may deliver any such interest payment to the Paying Agent or to a Holder at the Holder’s registered address. 

(3) Paying Agent and Registrar. Initially, Wells Fargo Bank, National Association (the “Trustee”) will act as Paying
Agent and Registrar. The Issuer may change any Paying Agent, Registrar or co-Registrar without notice to the Holders. 
 (4)
Indenture. The Issuer issued the Notes under an Indenture, dated as of May 2, 
 2012, as supplemented by the First
Supplemental Indenture dated November 15, 2012 (the “Indenture”), among the Issuer, the Guarantors and the Trustee. This Note is one of a duly authorized issue of Notes of the Issuer designated as its 7.625% Senior Notes due 2022 (the
“Notes”). The Notes include any Additional Notes. The Notes and any Additional Notes are treated as a single class of securities under the Indenture. Capitalized terms herein are used as defined in the Indenture unless otherwise defined
herein. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) (the “TIA”), as in effect on the date of the
Indenture. Notwithstanding anything to the contrary herein, the Notes are subject to all such terms, and Holders of Notes are referred to the Indenture and said Act for a statement of them. The Notes are general unsecured obligations of the Issuer.
Payment on each Note is guaranteed on a senior basis by the Subsidiary Guarantors pursuant to Article 12 of the Indenture. Each Holder, by accepting a Note, agrees to be bound by all of the terms and provisions of the Indenture, as the same may be
amended from time to time in accordance with its terms. 
 (5) Redemption. (a) Except as set forth in Sections
3.3(b), (c) and (d) of the Indenture, the Issuer will not be entitled to redeem the Notes at its option prior to May 15, 2017. The Notes will be redeemable, at the Issuer’s option, in whole at any time or in part from time to
time, on and after May 15, 2017, upon not less than 30 nor more than 60 days’ prior notice, at the following 

  
 A-4

 
Redemption Prices (expressed as percentages of the principal amount thereof) if redeemed during the twelve-month period commencing on May 15 of the years set forth below, plus, in each case,
unpaid accrued interest and Liquidated Damages, if any, thereon to the date of redemption: 
  

					
	Year	  	Percentage	 
	 2017
	  	 	103.813	% 
	 2018
	  	 	102.542	% 
	 2019
	  	 	101.271	% 
	 2020 and thereafter
	  	 	100.000	% 

 (b) At any time, or from time to time, on or prior to May 15, 2015, the Issuer may, at its option,
use all or a portion of the Net Cash Proceeds of one or more Equity Offerings to redeem up to 35% of the aggregate principal amount of the Notes (including any Additional Notes) issued under the Indenture at a redemption price equal to 107.625% of
the aggregate principal amount of the Notes to be redeemed, plus unpaid accrued interest and Liquidated Damages, if any, thereon to the date of redemption; provided that: (1) at least 65% of the aggregate principal amount of Notes issued under
the Indenture on the Issue Date remains outstanding immediately after giving effect to any such redemption; and (2) the Issuer makes such redemption not more than 90 days after the consummation of any such Equity Offering. 

(c) In addition, the Notes may be redeemed, in whole or in part, at any time prior to May 15, 2017 at the option of the Issuer upon not
less than 30 nor more than 60 days’ prior notice mailed by first-class mail to each Holder at its registered address, at a redemption price equal to 100% of the principal amount of the Notes redeemed plus the Applicable Premium as of, and
accrued and unpaid interest to, the applicable redemption date (subject to the right of holders of record on the relevant record date to receive interest due on the relevant interest payment date). 

(d) Further, if a Change of Control occurs at any time on or prior to June 1, 2013, the Issuer may, at its option, redeem all, but
not less than all, of the Notes, at a redemption price equal to 110.000% of the principal amount of the Notes, plus unpaid accrued interest and Liquidated Damages, if any, thereon to the date of redemption (subject to the right of Holders of record
on the relevant Record Date to receive interest due on the relevant Interest Payment Date). If the Issuer exercises the Change of Control redemption right pursuant to Section 3.3(d) of the Indenture, it may elect not to make the Change of
Control Offer pursuant to Section 4.15 of the Indenture unless it defaults in payments due upon redemption. 
 (6)
Notice of Redemption. Notice of redemption will be mailed at least 30 days but not more than 60 days before the Redemption Date to each Holder of Notes to be redeemed at such Holder’s registered address. Notes in denominations larger
than $2,000 may be redeemed in part. 
 Except as set forth in the Indenture, if monies for the redemption of the Notes called
for redemption shall have been deposited with the Paying Agent for redemption on such Redemption Date, then, unless the Issuer defaults in the payment of such Redemption Price plus accrued interest and Liquidated Damages, if any, the Notes called
for redemption will cease to bear interest from and after such Redemption Date and the only right of the Holders of such Notes will be to receive payment of the Redemption Price plus accrued interest and Liquidated Damages, if any. 

(7) Offers to Purchase. Sections 4.15 and 4.16 of the Indenture provide that, upon the occurrence of a Change of Control (as
defined in the Indenture) and after certain Asset Dispositions (as defined in the Indenture), and subject to further limitations contained therein, the Issuer will make an offer to purchase certain amounts of the Notes in accordance with the
procedures set forth in the Indenture. 

  
 A-5

 (8) Denominations; Transfer; Exchange. The Notes are in registered form, without
coupons, and (except Notes issued as payment of Interest) in denominations of at least $2,000 and integral multiples of $1,000 thereafter. A Holder shall register the transfer of or exchange Notes in accordance with the Indenture. The Registrar may
require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay certain transfer taxes or similar governmental charges payable in connection therewith as permitted by the Indenture. The Registrar need not
register the transfer of or exchange of any Notes or portions thereof selected for redemption. 
 (9) Persons Deemed
Owners. The registered Holder of a Note shall be treated as the owner of it for all purposes. 
 (10) Unclaimed
Money. If money for the payment of principal or interest remains unclaimed for one year, the Trustee and the Paying Agent will pay the money back to the Issuer. After that, all liability of the Trustee and such Paying Agent with respect to such
money shall cease. 
 (11) Discharge Prior to Redemption or Maturity. If the Issuer at any time deposits with the Trustee
U.S. Legal Tender or U.S. Government Obligations sufficient to pay the principal of and interest on the Notes to redemption or maturity and comply with the other provisions of the Indenture relating thereto, the Issuer will be discharged from
certain provisions of the Indenture and the Notes (including certain covenants, but including, under certain circumstances, its obligation to pay the principal of and interest on the Notes but without affecting the rights of the Holders to receive
such amounts from such deposits). 
 (12) Amendment; Supplement; Waiver. Subject to certain exceptions set forth in the
Indenture, the Indenture or the Notes or the Subsidiary Guarantees may be amended or supplemented with the written consent of the Holders of not less than a majority in aggregate principal amount of the Notes then outstanding, and any past Default
or Event of Default or noncompliance with any provision may be waived with the written consent of the Holders of not less than a majority in aggregate principal amount of the Notes then outstanding. Without notice to or consent of any Holder, the
parties thereto may amend or supplement the Indenture or the Notes to, among other things, cure any ambiguity, defect or inconsistency, provide for uncertificated Notes in addition to or in place of certificated Notes, comply with any requirements
of the SEC in order to effect or maintain the qualification of the Indenture under the TIA or comply with Article V of the Indenture or make any other change that does not adversely affect the rights of any Holder of a Note. 

(13) Restrictive Covenants. The Indenture imposes certain limitations on the ability of the Issuer and its Restricted Subsidiaries
to, among other things, incur additional Indebtedness, make payments in respect of their Capital Stock or certain Indebtedness, make certain Investments, create or incur liens, enter into transactions with Affiliates, create dividend or other
payment restrictions affecting Restricted Subsidiaries, issue Preferred Stock of their Restricted Subsidiaries, and on the ability of the Issuer and its Restricted Subsidiaries to merge or consolidate with any other Person or sell, assign, transfer,
lease, convey or otherwise dispose of all or substantially all of the Issuer’s and its Restricted Subsidiaries’ assets or adopt a plan of liquidation. Such limitations are subject to a number of important qualifications and exceptions.
Pursuant to Section 4.6 of the Indenture, the Issuer must annually report to the Trustee on compliance with such limitations. 
 (14) Successors. When a successor assumes, in accordance with the Indenture, all the obligations of its predecessor under the Notes and the Indenture, the predecessor, subject to certain
exceptions, will be released from those obligations. 

  
 A-6

 (15) Defaults and Remedies. Except as set forth in the Indenture, if an Event of
Default occurs and is continuing, the Trustee or the Holders of not less than 25% in principal amount of Notes then outstanding may declare all the Notes to be due and payable in the manner, at the time and with the effect provided in the Indenture.
Holders of Notes may not enforce the Indenture or the Notes except as provided in the Indenture. The Trustee is not obligated to enforce the Indenture or the Notes unless it has received indemnity or security satisfactory to it. The Indenture
permits, subject to certain limitations therein provided, Holders of a majority in aggregate principal amount of the Notes then outstanding to direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of Notes
notice of any continuing Default or Event of Default (except a Default in payment of principal, premium or Liquidated Damages, if any, or interest when due, for any reason or a Default in compliance with Article V of the Indenture) if it determines
that withholding notice is in their interest. 
 (16) Trustee Dealings with Issuer. The Trustee under the Indenture, in
its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with the Issuer, its respective Subsidiaries or its respective Affiliates as if it were not the Trustee. 

(17) No Recourse Against Others. No partner, director, officer, employee or stockholder, as such, of the Issuer or any Subsidiary
Guarantor, as such, shall have any liability for any obligations of the Issuer or any Subsidiary Guarantor under the Notes, the Indenture or the Subsidiary Guarantees or for any claim based on, in respect of, or by reason of, such obligations or
their creation. Each Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for the issuance of the Notes. 

(18) Subsidiary Guarantees. This Note will be entitled to the benefits of certain Subsidiary Guarantees, if any, made for the
benefit of the Holders. Reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and obligations thereunder of the Subsidiary Guarantors, the Trustee and the Holders. 

(19) Authentication. This Note shall not be valid until the Trustee or Authenticating Agent manually signs the certificate of
authentication on this Note. 
 (20) Governing Law. This Note and the Indenture shall be governed by and construed in
accordance with the laws of the State of New York. Each of the parties hereto agrees to submit to the jurisdiction of the courts of the State of New York in any action or proceeding arising out of or relating to this Note. 

(21) Abbreviations and Defined Terms. Customary abbreviations may be used in the name of a Holder of a Note or an assignee, such
as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 

(22) Additional Rights of Holders. In addition to the rights provided to Holders of Notes under the Indenture, Holders of this
Note will have all the rights set forth in the Registration Rights Agreement dated as of November 15, 2012, among the Issuer, the Guarantors and the other parties named on the signature pages thereof or, in the case of Additional Notes, Holders
thereof will have the rights set forth in one or more registration rights agreements, if any, among the Issuer, the Guarantors and the other parties thereto, relating to rights given by the Issuer and the Guarantors to the purchasers of any
Additional Notes (collectively, the “Registration Rights Agreement”). 
 (22) CUSIP Numbers. Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Issuer has caused CUSIP numbers to be printed on the Notes as a convenience to the Holders of the Notes. No representation is made as to the accuracy of
such numbers as printed on the Notes and reliance may be placed only on the other identification numbers printed hereon. 

  
 A-7

 The Issuer will furnish to any Holder of a Note upon written request and without charge a
copy of the Indenture, which has the text of this Note, and/or the Registration Rights Agreement. Requests may be made to: Chaparral Energy, Inc., 701 Cedar Lake Boulevard, Oklahoma City, OK 73114. 

  
 A-8

 ASSIGNMENT FORM 
 If you the Holder want to assign this Note, fill in the form below and have your signature guaranteed: 
 I or we assign and transfer this Note to: 
   

 
  
  

 
  
  

 
 (Print or type name, address and zip
code and 
 social security or tax ID number of assignee) 
 and irrevocably appoint                             , agent to
transfer this Note on the books of the Issuer. The agent may substitute another to act for him. 
 Dated:
                                    Signed:
                                         
                                         
                       

                         
                                       (Sign exactly as
your name appears 

                         
                                       on the other
side of this Note) 
 Signature Guarantee:
                                         
                                         
   
 In connection with any transfer of this Note occurring prior to the date which is the earlier of (i) the
date of the declaration by the SEC of the effectiveness of a registration statement under the Securities Act of 1933, as amended (the “Securities Act”) covering resales of this Note (which effectiveness shall not have been suspended or
terminated at the date of the transfer) and (ii) May 2, 2014, the undersigned confirms that it has not utilized any general solicitation or general advertising in connection with the transfer: 

  
 A-9

 [Check One] 

 

							
				
		 	(1)	 	—	 	to the Issuer or a subsidiary thereof; or
				
		 	(2)	 	—	 	pursuant to and in compliance with Rule 144A under the Securities Act of 1933, as amended; or
				
		 	(3)	 	—	 	to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act of 1933, as amended) that has furnished to the Trustee a
signed letter containing certain representations and agreements (the form of which letter can be obtained from the Trustee); or
				
		 	(4)	 	—	 	outside the United states to a “foreign person” in compliance with Rule 904 of Regulation S under the Securities Act of 1933, as amended; or
				
		 	(5)	 	—	 	pursuant to the exemption from registration provided by Rule 144 under the Securities Act of 1933, as amended; or
				
		 	(6)	 	—	 	pursuant to an effective registration statement under the Securities Act of 1933, as amended; or
				
		 	(7)	 	—	 	pursuant to another available exemption from the registration requirements of the Securities Act of 1933, as amended.

 and unless the box below is checked, the undersigned confirms that such Note is not being transferred to an
“affiliate” of the Issuer as defined in Rule 144 under the Securities Act of 1933, as amended (an “Affiliate”): 
 The transferee is an Affiliate of the Issuer. 
 Unless one of the items is checked, the Trustee
will refuse to register any of the Notes evidenced by this certificate in the name of any person other than the registered Holder thereof unless and until the conditions to any such transfer of registration set forth herein and in Section 2.6
of the Indenture shall have been satisfied; provided, however, that if item (3), (4), (5) or (7) is checked, the Issuer may require, prior to registering any such transfer of the Notes, in its sole discretion, such written
legal opinions, certifications (including an investment letter in the case of box (3) or (4)) and other information the Issuer has reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act of 1933, as amended. 
 Dated:
                                         
           Signed:
                                         
                                         
   

                         
                                         
                      (Sign exactly as your name appears 
                                   
                                         
             on the other side of this Note) 
 Signature
Guarantee:                                       
                                         

  
 A-10

 TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED 

The undersigned represents and warrants that it is purchasing this Note for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of 1933, as amended and is aware that the sale to it is being made in
reliance on Rule 144A and acknowledges that it has received such information regarding the Issuer as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that the transferor is
relying upon the undersigned’s foregoing representations in order to claim the exemption from registration provided by Rule 144A. 
  

			
	
Dated:                       
                                         
          
	 	  

		 	NOTICE: To be executed by an executive officer

  
 A-11

 [OPTION OF HOLDER TO ELECT PURCHASE] 

If you want to elect to have this Note purchased by the Issuer pursuant to Section 4.15 or Section 4.16 of the Indenture, check
the appropriate box: 
 Section 4.15 [            ]
                Change of Control Offer 

Section 4.16 [            ]
                Limitation on Sales of Assets and Subsidiary Stock 
 If you want to elect to have only part of this Note purchased by the Issuer pursuant to Section 4.15 or Section 4.16 of the Indenture, state the amount you elect to have purchased: 

$                         
                                

 

			
	
Dated:                       
                                         
          
	 	  

		 	 NOTICE: The signature on this

assignment must correspond with
 the name as it
appears upon the
 face of the within Note in every
 particular without alteration
 or enlargement or any change

whatsoever and be guaranteed.

 Signature Guarantee:
                                 

  
 A-12

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