Document:

EX-10.3

 Exhibit 10.3 

Execution Version 

INCREMENTAL TERM SUPPLEMENT (TRANCHE A) 

This INCREMENTAL TERM SUPPLEMENT (Tranche A) (this “Supplement”) is entered into as of May 13,
2015, among Seventy Seven Operating LLC, an Oklahoma limited liability company (the “Borrower”), Seventy Seven Energy Inc., an Oklahoma corporation, formerly known as Chesapeake Oilfield Operating, L.L.C. (the
“Parent”), each of the Subsidiary Guarantors (as defined in the Credit Agreement defined below) party hereto (such Subsidiary Guarantors together with the Parent collectively, the “Guarantors” and each
individually, a “Guarantor”), each lender party hereto (collectively, the “Tranche A Incremental Term Loan Lenders” and each individually, a “Tranche A Incremental Term Loan
Lender”), and Bank of America, N.A., as administrative agent under the Credit Agreement referred to below (the “Administrative Agent”). 

Merrill Lynch, Pierce, Fenner & Smith Incorporated (or any of its designated affiliates), shall act as a sole lead arranger and sole
bookrunner in connection with the Tranche A Incremental Term Commitment (as defined below). 
 Reference is made to that
certain $400 Million Term Loan Credit Agreement, dated as of June 25, 2014 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Credit Agreement;” unless otherwise
defined herein, capitalized terms defined therein being used herein as therein defined), among the Borrower, the Parent, the Lenders from time to time party thereto, the Administrative Agent, the Arrangers and the other parties thereto. On and after
the Incremental Term Facility Closing Date (as hereinafter defined), (i) each Tranche A Incremental Term Loan Lender shall be a “Lender” under the Credit Agreement for all purposes thereunder and to the same extent as if originally a
party thereto and shall be entitled to all rights, benefits and privileges accorded a Lender thereunder and subject to all obligations of a Lender thereunder as of the Incremental Term Facility Closing Date, (ii) the Tranche A Incremental Term
Loans shall be “Loans” and “Incremental Term Loans” under the Credit Agreement for all purposes thereunder and (iii) this Supplement, the Tranche A Incremental Collateral Documents (as defined below) and the Tranche A
Incremental Guaranty (as defined below) shall each be a “Loan Document” under the Credit Agreement.  
 Pursuant to
Section 2.11 of the Credit Agreement, the Borrower has requested (a) the addition of a $100,000,000 additional term loan facility which shall be secured on a junior lien basis with the Collateral securing the Secured Obligations in
respect of the Term Loans, (b) that the Tranche A Incremental Term Loan Lenders party hereto extend such junior lien Incremental Term Loans as provided herein, and (c) subject to the terms and conditions contained in this Supplement, the
Incremental Term Facility Closing Date for such additional term loan facility to be May 13, 2015 which shall constitute an “Increase Effective Date” under the Credit Agreement. 

Each Tranche A Incremental Term Loan Lender party to this Supplement has agreed to provide the junior lien Incremental Term
Commitment set forth opposite its name on Schedule I hereto (its “Tranche A Incremental Term Commitment”) and has indicated its willingness to lend the Incremental Term Loans on the terms and conditions set forth
herein and in the Credit Agreement. 

 Section 1. Tranche A Incremental Term Facility. The aggregate Tranche A Incremental
Term Commitments of $100,000,000 provided hereunder shall constitute an “Incremental Term Commitment” under the Credit Agreement and be designated hereunder as the “Tranche A Incremental Term Facility” (the “Tranche A
Incremental Term Facility”) and the Incremental Term Loans made hereunder shall constitute “Incremental Term Loans” under the Credit Agreement and be designated hereunder as “Tranche A Incremental Term Loans” (the
“Tranche A Incremental Term Loans”) and shall, in addition to the terms and conditions set forth in the Credit Agreement, have the following terms and conditions: 

(a) The Incremental Term Facility Closing Date must occur on or prior to May 13, 2015 (the “Termination Date”).

 (b) The Maturity Date of the Tranche A Incremental Term Loans shall be June 25, 2021. 

(c) The Borrower shall make quarterly installments of principal, each of which shall be equal to 0.25% of the initial aggregate principal
amount of the Tranche A Incremental Term Loans, to the Administrative Agent for the ratable account of the Tranche A Incremental Term Loan Lenders as set forth in Section 2.04 of the Credit Agreement. The first such payment shall be made
on June 30, 2015. 
 (d) Each Tranche A Incremental Term Loan shall be made in a single advance on the Incremental Term Facility
Closing Date in a principal amount equal to 96% of the Tranche A Incremental Term Commitment of each Tranche A Incremental Term Loan Lender; provided, that for the avoidance of doubt, the principal amount of each Tranche A Incremental Term
Loan that shall be outstanding immediately after the making thereof hereunder shall be an amount equal to 100% of each Tranche A Incremental Term Loan Lender’s Tranche A Incremental Term Commitment. 

(e) The Applicable Rate for the Tranche A Incremental Term Loans shall be (i) with respect to Eurodollar Rate Loans, 9.00%, and
(ii) with respect to Base Rate Loans, 8.00%; provided, however, that (A) in the case of Eurodollar Rate Loans constituting Tranche A Incremental Term Loans, the Eurodollar Rate shall not be less than one percent (1.00%),
(B) the proviso set forth in the definition of “Applicable Rate” shall not apply to the Tranche A Incremental Term Loans and (C) following the occurrence of an Applicable Event of Default (as defined below), until such time, if
any, as the Tranche A Required Lenders (as hereinafter defined) waive such Applicable Event of Default or with respect to any Applicable Event of Default described in clause (ii) of such definition, such Applicable Event of Default is cured,
the Applicable Rate for the Tranche A Incremental Term Loans shall be increased automatically by 2% per annum, provided, however, that the Applicable Rate shall not so increase with respect to any Tranche A Incremental Term Loans
as to which the Default Rate is applicable; provided, further, that in no event shall such increase in the Applicable Rate be included in the Applicable Rate for purposes of calculating the Make Whole Premium (as defined below). For
purposes of this Section 1(e), the term “Applicable Event of Default” shall mean each of (i) any Event of Default under Section 8.01(a) of the Credit Agreement with respect to the Tranche A
Incremental Term Loans without the written consent of the Tranche A Required Lenders, (ii) any Event of Default that has occurred and has not been cured under Section 8.01(c) of the Credit Agreement

  
 2 

 
arising from a failure to perform or observe Sections 6.12, 7.03 or 7.06 without the written consent of the Tranche A Required Lenders, (iii) any failure to perform or
observe any covenant or agreement in Section 3 of this Supplement and (iv) any representation, warranty, certification or statement of fact made or deemed made by or on behalf of the Borrower or any other Loan Party under
Section 2 of this Supplement shall be incorrect or misleading in any material respect when made or deemed made and that could, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, in each
case whether or not any such Event of Default is waived by the Required Lenders. 
 (f) If after the Incremental Term Facility Closing Date,
the Borrower prepays the Loans pursuant to Sections 2.03(b)(i), (ii), (iii) or (iv) of the Credit Agreement, the Borrower shall prepay the Tranche A Incremental Term Loans, on a pro rata basis with the Term
Loans, in accordance with Section 2.03(c) of the Credit Agreement. The provisos applicable to each of Sections 2.03(b)(i), (ii), (iii) and (iv) of the Credit Agreement shall apply to any prepayment
of the Tranche A Incremental Term Loans pursuant to this clause (f). Notwithstanding anything else to the contrary in this Supplement, the Credit Agreement, any Tranche A Incremental Collateral Document or any other Loan Document, each Tranche A
Incremental Term Loan Lender may elect, by written notice to the Administrative Agent and the Borrower at or prior to the time and in the manner specified by the Administrative Agent, prior to any prepayment of Incremental Term Loans required to be
made by the Borrower pursuant to Section 2.03 of the Credit Agreement and this clause (f), to decline all (but not a portion) of its pro rata share of such prepayment; provided that the failure to so reject such mandatory
prepayment will be deemed an acceptance of the same. All Net Cash Proceeds or Excess Cash Flow not applied pursuant to Sections 2.03(b), 7.04(b), 7.04(c) or 7.04(d) of the Credit Agreement or this clause
(f) shall promptly (any in any event within ten (10) Business Days after the date of such rejection) be applied to prepay the Term Loans, to the extent required under the Credit Agreement. 

(g) If the Borrower makes a prepayment of any Tranche A Incremental Term Loan pursuant to Section 2.03 of the Credit Agreement,
other than with respect to Section 2.03(b)(i), or if any of the Tranche A Incremental Term Loans are declared due and payable, or automatically become due and payable, pursuant to Section 8.02 of the Credit Agreement for any
reason (including as a result of the commencement of any bankruptcy or similar case for any Borrower or Guarantor), and becomes due prior to the Maturity Date (a “Pre-Maturity Acceleration”), the Borrower shall pay a premium
in an amount equal to (i) the Make Whole Premium in respect of such principal amount if such repayment, prepayment, or Pre-Maturity Acceleration occurs on or prior to eighteen months following the Incremental Term Facility Closing Date,
(ii) 5.00% of such principal amount if such repayment, prepayment, or Pre-Maturity Acceleration occurs after said eighteen month period but on or prior to a period ending thirty months following the Incremental Term Facility Closing Date,
(iii) 3.00% of such principal amount if such repayment, prepayment, or Pre-Maturity Acceleration occurs after said thirty month period following the Incremental Term Facility Closing Date and on or prior to a period ending forty two months
following the Incremental Term Facility Closing Date, and (iv) thereafter, zero, in each case, to the extent applicable, calculated on the amount of such repayment or prepayment or, with respect to any Pre-Maturity Acceleration, as if the
Borrower had repaid the Tranche A Incremental Term Loans in full as of the date of such Pre-Maturity Acceleration (plus the amount of all accrued and unpaid interest on such principal amount). Each such repayment or prepayment shall be applied to
the principal installments of the 

  
 3 

 
applicable Tranche A Incremental Term Loans in the manner directed by the Borrower (or, if no such direction is provided, in the direct order of maturity of such installments) for the benefit of
the Tranche A Incremental Term Loan Lenders in accordance with their respective Applicable Class Percentage. For purpose of this Section 1(g), the term “Make Whole Premium” shall mean, with respect to the
principal amount of any Tranche A Incremental Term Loan being repaid or prepaid, or, with respect to any Pre-Maturity Acceleration, the outstanding principal amount of the Tranche A Incremental Term Loans as of the date of such Pre-Maturity
Acceleration (plus the amount of all accrued and unpaid interest on such principal amount), an amount equal to the sum of (a) 5.00% of such principal amount of such Tranche A Incremental Term Loan plus (b) the present value as of such date
of all interest that would have accrued on such principal amount of such Tranche A Incremental Term Loan from such date through the eighteen month period following the Incremental Term Facility Closing Date at a rate per annum equal to the sum of
(i) the Applicable Rate applicable to Eurodollar Rate Loans constituting Tranche A Incremental Term Loans, plus (ii) the Eurodollar Rate (assuming an Interest Period of three months) applicable to Tranche A Incremental Term Loans in effect
on such date (in each case, computed on the basis of actual days elapsed over a year of 360 days, using a discount rate equal to the Treasury Rate as of such date plus 50 basis points, and discounted in accordance with standard financial practice,
and the term “Treasury Rate” shall mean, as of any date, the rate per annum equal to the weekly average yield as of such date on actually traded United States Treasury securities with a maturity nearest to the second
anniversary of the Incremental Term Facility Closing Date (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (519) that has become publicly available at least two Business Days prior to such date and which
establishes yields on actively traded United States Treasury securities adjusted to a constant maturity of one year under the caption “Treasury Constant Maturities” (or, if such Statistical Release is no longer published, any publicly
available source of similar market data)). 
 (h) The making of the Tranche A Incremental Term Loans shall be subject to the provisions of
Sections 2.02(a) and 2.11(e) of the Credit Agreement and to the conditions precedent set forth in Section 12 below. 

(i) Notwithstanding anything else to the contrary in the Credit Agreement or any other Loan Document, any replacement of a Tranche A
Incremental Term Loan Lender pursuant to Section 10.13 of the Credit Agreement (including, without limitation, as a Non-Consenting Lender, but other than as a Defaulting Lender or a Tranche A Incremental Term Loan Lender requesting
increased costs pursuant to Section 3.04 of the Credit Agreement) shall require, as a condition precedent to such replacement, the payment to any replaced Tranche A Incremental Term Loan Lender of an amount equal to the Make Whole
Premium and pre-payment premium, as applicable, consistent with Section 1(g) above, mutatis mutandis. 
 (j) For purposes
of the Tranche A Incremental Term Facility, references to IRS Form W-8BEN in Section 3.01(e) of the Credit Agreement, or any other similar reference in the Loan Documents, shall be deemed to also include IRS Form W-8BEN-E, as applicable.

 Section 2. Representations and Warranties of the Parent and Borrower. Each of the Parent and the Borrower represents to the
Administrative Agent and the Tranche A Incremental Term Loan Lenders that: 
 (a) no Default or Event of Default has occurred and is
continuing on and as of the Incremental Term Facility Closing Date or would result from the addition of the Tranche A Incremental Term Facility hereunder; 

  
 4 

 (b) the Parent has disclosed to the Administrative Agent and the Tranche A Incremental Term Loan
Lenders all agreements, instruments and corporate or other restrictions to which it or any of its Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect. No report, financial statement, certificate or other information furnished in writing by or on behalf of and at the direction of any Loan Party to the Administrative Agent or any Tranche A Incremental Term Loan Lender in
connection with the transactions contemplated hereby and the negotiation of this Supplement or delivered hereunder or under any other Tranche A Incremental Collateral Document or other Loan Document (in each case as modified or supplemented by other
information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that,
with respect to projected information, each of the Parent and the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time. 

(c) except as expressly contemplated by the Tranche A Incremental Collateral Documents, the provisions of the Tranche A Incremental Collateral
Documents are effective to create in favor of the Administrative Agent for the benefit of the Administrative Agent and the Tranche A Incremental Term Loan Lenders a legal, valid and enforceable second priority Lien (subject to Permitted Liens) on
all right, title and interest of the respective Loan Parties in the Collateral described therein. 
 (d) the representations and warranties
of the Borrower contained in Article V of the Credit Agreement (other than Section 5.15, which is replaced by Section 2(b) hereof, and Section 5.21, which is replaced by Section 2(c) hereof) are
true and correct in all material respects on and as of the Incremental Term Facility Closing Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in
all material respects as of such earlier date, and except that (i) for purposes of this Section 2(d), the representations and warranties contained in Sections 5.05(a) and (b) of the Credit Agreement shall be
deemed to refer to the most recent statements furnished pursuant to Sections 6.01(a) and (b), respectively, of the Credit Agreement, (ii) the reference to the first priority nature of the security interests created with respect to
the Collateral in Section 5.03 of the Credit Agreement shall instead be a reference to a junior lien and the reference to Collateral Documents in Section 5.03 of the Credit Agreement shall instead be a reference to the
Tranche A Incremental Collateral Documents, (iii) the reference in Section 5.02(b)(i) of the Credit Agreement shall be deemed to exclude any representation that no new Liens or payment obligations are created under this Supplement
and the other documents executed in connection herewith, (iv) the representation and warranty in Section 5.03 of the Credit Agreement shall exclude any approvals, consents, exemptions, authorizations or other actions by, or notice
to, or filing with, (A) the notice to the Administrative Agent and the Lenders being provided pursuant to Section 12(a)(ix) or (B) any Governmental Authority in respect of the creation or perfection of any Lien or in respect of
routine organizational and tax matters, and (v) the references in Sections 5.08(c), (d)(i) and (d)(ii) to Schedules 5.08(c), (d)(i) and (d)(ii), respectively, shall be deemed to refer instead to
Annexes A, B and C hereto, respectively, and each reference to “the date hereof” in such Sections shall be deemed to refer instead to the date of this Supplement; and 

(e) the use of the proceeds of the Tranche A Incremental Term Loans made hereunder by the Parent or any of its Subsidiaries will not
(i) violate any applicable Sanctions or (ii) fund any activities of or business with any persons that is the subject to Sanctions or in any Designated Jurisdiction. 

  
 5 

 Section 3. Covenants of the Borrower. So long as any Tranche A Incremental Term Loan
Lender shall have any Commitment hereunder or any Tranche A Incremental Term Loan or other Obligation hereunder shall remain unpaid or unsatisfied, other than contingent or inchoate Obligations, each of the Parent, the Borrower and the Loans
Parties, as applicable, covenants and agrees that: 
 (a) it shall not, without the prior written consent of the Tranche A Required Lenders,
enter into, or suffer to exist, any agreement, amendment, restatement, supplement, waiver, consent or other modification to the Credit Agreement, any Tranche A Incremental Collateral Documents or any other Loan Document which: 

i. changes any provision of Section 2.11 of the Credit Agreement or the definitions of “Commitments” or
“Available Incremental Amount” or any other provision thereof, the effect of which would be to increase the amount of the Loans permitted to be secured by a Lien on the Collateral; 

ii. changes any provisions including, without limitation, the definitions of “Obligations”, “Permitted
Liens”, “Secured Obligations” and “Secured Parties” the effect of which would be to allow the creation or imposition of any Liens on the Collateral that are not permitted under the terms
of the Credit Agreement as of the Incremental Term Facility Closing Date; 
 iii. changes the definition of “Default Rate” or
waives any obligation of the Borrower to pay interest at the Default Rate, in each case, with respect to the Tranche A Incremental Term Loans; 

iv. changes any provisions of Sections 6.12, 7.03 and 7.06 of the Credit Agreement;  

v. changes any provisions of Section 8.01(a) of the Credit Agreement as it may pertain to the Tranche A Incremental Term Loans;

 vi. imposes any greater restriction on the ability of any Tranche A Incremental Term Loan Lender (as such) to assign, or sell
participations in, any of its rights or obligations under the Credit Agreement or this Supplement; and 
 vii. changes any provision
relating to the allocation of the proceeds from any of the following: Excess Cash Flow, Excess Asset Sales Proceeds, Net Cash Proceeds (resulting from a Debt Issuance) or Extraordinary Receipts, in each case in respect of a mandatory prepayment
required under Section 2.03(b) of the Credit Agreement; 

  
 6 

 provided, that, for the avoidance of doubt, any waiver or consent by the Required Lenders of an Event of
Default under the Credit Agreement does not constitute a change to the underlying provision with respect to which the applicable Event of Default arose. 

(b) the Loan Parties will not grant or permit any additional Liens on any asset or property to secure any Obligations with respect to the Term
Loans unless it has granted or concurrently grants a junior priority Lien on such asset or property to secure the Obligations with respect to the Tranche A Incremental Term Loans. 

Section 4. New Lenders. Each Tranche A Incremental Term Loan Lender: 

(a) represents and warrants to the Administrative Agent and the Borrower that, as of the Incremental Term Facility Closing Date (i) it
has full power and authority, and has taken all action necessary, to execute and deliver this Supplement and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) from and after the
Incremental Term Facility Closing Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and shall have the obligations of a Lender thereunder and (iii) it has received a copy of the Credit Agreement and the
other Loan Documents, together with copies of the most recent financial statements delivered pursuant to Section 6.01 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Supplement and provide its Tranche A Incremental Term Commitment hereunder on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any
other Lender; 
 (b) agrees that it will, independently and without reliance upon the Administrative Agent or any other Lender and based on
such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement and the other Loan Documents; 

(c) agrees that it will perform in accordance to their terms, all obligations which by the terms of the Credit Agreement and the other Loan
Documents are required to be performed by it as a Lender; and 
 (d) subject to the terms and conditions contained in Article IX of the
Credit Agreement, appoints, designates, authorizes, and further consents to, Bank of America to act on its behalf as Administrative Agent and to take such action on its behalf and to exercise such powers under this Supplement, the Tranche A
Incremental Collateral Documents, the Credit Agreement and the other Loan Documents as are delegated to the Administrative Agent by the terms thereof and hereof, and to execute such documents for or on behalf of the Tranche A Incremental Term Loan
Lenders as it deems necessary or desirable to effect the terms hereof, together with such powers as are reasonably incidental thereto; provided that, upon the occurrence and continuance of an Event of Default under Section 8.01(f)
of the Credit Agreement, following the written request of the Tranche A Required Lenders, Bank of America will appoint a sub-agent (which may include itself) reasonably acceptable to the Tranche A Required Lenders pursuant to
Section 9.05 of the Credit Agreement, such sub-agent being designated to act as administrative agent in respect of the separate interests of the Tranche A Incremental Term Loan Lenders; provided further that, following any such
appointment of a sub-

  
 7 

 
agent after the occurrence and continuance an Event of Default under Section 8.01(f), the Tranche A Incremental Term Loan Lenders hereby expressly retain the right to remove Bank of America
as such sub-agent, with or without cause, and appoint a successor sub-agent of the Administrative Agent with respect to the Tranche A Incremental Term Loans if the Tranche A Required Lenders so elect, which action will become effective immediately
upon written notice to Bank of America (or such later date as may be specified in any such written notice) (it being understood that Bank of America hereby agrees to resign or otherwise effectuate its removal in such capacity as a sub-agent pursuant
to the terms of the Credit Agreement in such circumstances); provided further that, notwithstanding anything to the contrary in the Credit Agreement, no successor sub-agent of the Administrative Agent in respect of the Tranche A Incremental
Term Loans shall be appointed without the written consent of the Tranche A Required Lenders, provided still further, notwithstanding same, or anything else herein contained, Bank of America may resign at any time, before or after the
occurrence of an Event of Default, as Administrative Agent or as sub-agent for the Tranche A Incremental Term Loan Lenders, all as more fully set forth in Section 9.06 of the Credit Agreement. 

Section 5. Priority of Liens and Distributions. 

(a) Notwithstanding anything in the Credit Agreement to the contrary, regardless of the date, time, manner or order of filing or recordation
of any document or instrument or grant, attachment or perfection of any Liens granted to the Administrative Agent on the Collateral or of any Liens granted to any Secured Party on the Collateral (or any actual or alleged defect in any of the
foregoing) and notwithstanding any provision of the UCC or any applicable law, the Borrower, the Administrative Agent and each Tranche A Incremental Term Loan Lender hereby agrees that (a) any Lien on the Collateral securing any Obligations in
respect of the Term Loans under the Credit Agreement or other Loan Documents now or hereafter held by or on behalf of any Lender or any other Secured Party or other agent or trustee therefor, regardless of how and when acquired, whether by grant,
statute, operation of law, subrogation or otherwise, shall have priority over and be senior in all respects and prior to any Lien on the Collateral securing Tranche A Incremental Term Loan Obligations (as defined below) under this Supplement and
(b) any Lien on the Collateral securing any Tranche A Incremental Term Loan Obligations (as defined below) now or hereafter held by or on behalf of the Administrative Agent or any Tranche A Incremental Term Loan Lender or any other agent or
trustee therefor, regardless of how and when acquired, whether by grant, statute, operation of law, subrogation or otherwise, shall be junior in all respects to all Liens on the Collateral securing any Obligations in respect of the Term Loans under
the Credit Agreement or other Loan Documents. “Tranche A Incremental Term Loan Obligations” means any principal, premium, if any, interest (including interest accruing on or after the filing of any petition in bankruptcy or
for reorganization, whether or not a claim for post-filing interest is allowed in such proceeding), penalties, fees, charges, expenses, indemnifications, reimbursement obligations, damages, guarantees, and other liabilities or amounts payable under
this Supplement or any documentation governing any Tranche A Incremental Term Loans or in respect thereto. 
 (b) In addition,
notwithstanding Sections 2.10 or 8.03 of the Credit Agreement, in the event of a distribution of amounts received under either of said sections with respect to any Collateral or proceeds thereof received by the Administrative Agent
following an enforcement action (including after an acceleration) with respect thereto, the Tranche A 

  
 8 

 
Incremental Term Loan Lenders agree that any such distributions shall go first to the Term Lenders in satisfaction of Obligations owing on the Term Loans and that, until the full repayment of the
Term Loans, including principal, interest, costs, fees and expenses, no such distributions with respect to any Collateral or proceeds thereof received by the Administrative Agent following an enforcement action (including after an acceleration) with
respect thereto shall be made to the Tranche A Incremental Term Loan Lenders. 
 Section 6. Voting; Classification.
(a) Notwithstanding Section 10.01 of the Credit Agreement, pursuant to Section 2.11(g) thereof, the Tranche A Incremental Term Loan Lenders, the Loan Parties and the Administrative Agent agree that consents, amendments,
restatements, supplements, waivers or other modifications of this Supplement and of any Tranche A Incremental Collateral Document may be effected at any time solely by a vote of those holding more than 50% of the outstanding Tranche A Incremental
Term Loans (the “Tranche A Required Lenders”), the Loan Parties party thereto and the Administrative Agent. 
 (b)
It is the intention of the parties hereto that the Tranche A Incremental Term Loans constitute a separate Class of Loans from the Term Loans for all purposes permitted under the Credit Agreement, including, without limitation, in any case or
proceeding under Title 11 of the United States Code or any other state or federal law addressing insolvency or restructuring. 
 (c) In
furtherance of the foregoing, Sections 9.09 and 9.10 of the Credit Agreement as they relate to the Tranche A Incremental Collateral Documents and the Guaranty by the Loan Parties in respect of the Tranche A Incremental Term Loan
Obligations (as the same may be amended, restated, amended and restated, supplemented or otherwise modified in accordance with the term of the Credit Agreement, the “Tranche A Incremental Guaranty”) are incorporated herein by
reference, but changing the following terms therein as indicated below: 
  

			
	 From
	  	 To

	Lenders	  	Tranche A Incremental Term Loan Lenders
	Loans	  	Tranche A Incremental Term Loans
	Secured Obligations	  	Tranche A Incremental Term Loan Obligations
	Secured Parties	  	Administrative Agent (or any sub-agent) acting on behalf of the Tranche A Incremental Term Loan Lenders and the Tranche A Incremental Term Loan Lenders
	Required Lenders	  	Tranche A Required Lenders
	Loan Documents	  	Tranche A Incremental Collateral Documents and this Supplement (as applicable)
	Collateral Documents	  	Tranche A Incremental Collateral Documents

 For purposes of Sections 9.09 and 9.10 of the Credit Agreement as they relate to the Collateral Documents in
respect of the Borrower’s Obligations in respect of the Term Loans delivered before the Incremental Term Facility Closing Date or thereafter in accordance with Section 6.12 of the Credit Agreement (in each case, as the same may be amended,
restated, amended and restated, supplemented or otherwise modified in accordance with the terms of the Credit 

  
 9 

 
Agreement, the “First Lien Collateral Documents”) and the Guaranty by the Loan Parties in respect of the Borrower’s Obligations in respect of the Term Loans delivered
in connection with the Closing Date (as the same may be amended, restated, amended and restated, supplemented or otherwise modified in accordance with the term of the Credit Agreement, the “Term Loan Guaranty”), the Tranche A
Incremental Term Loan Lenders shall not be considered “Lenders” for purposes of determining “Required Lenders.” Each Tranche A Incremental Term Loan Lender hereby disclaims any right it may have under Sections 9.09 and
9.10 of the Credit Agreement with respect to the First Lien Collateral Documents and the Term Loan Guaranty, and the Administrative Agent and the Loan Parties hereby agree with such disclaimer. 

Section 7. Administrative Agent’s Determination. Pursuant to Section 2.11(a) of the Credit Agreement, the
Administrative Agent has, in the exercise of its reasonable discretion, determined that the terms and conditions relating to the Tranche A Incremental Term Facility, to the extent they are in the aggregate materially more adverse to the Parent and
its Restricted Subsidiaries than the terms and conditions relating to the Term Facility, are acceptable to the Administrative Agent. 

Section 8. Assignment and Participation by Tranche A Incremental Term Loan Lender. Notwithstanding any contrary term or provision
of the Credit Agreement or any other Loan Document, each of the parties hereto acknowledges that no consent of the Borrower or the Administrative Agent shall be required for any Tranche A Incremental Term Loan Lender to assign, sell, transfer or
sell participations in the Tranche A Incremental Term Loans to any of its Affiliates, but otherwise in accordance with Section 10.06. For the avoidance of doubt, BlueMeridian Capital, LLC; may assign, sell, transfer or sell
participations in the Tranche A Incremental Term Loans to any of its Affiliates without the consent of the Borrower or the Administrative Agent but otherwise in accordance with Section 10.06. Pursuant to Section 10.06(b)(iv)
of the Credit Agreement, the Administrative Agent hereby irrevocably waives any processing and recording fee with respect to assignments, sales, transfers or sales of participations effectuated consistent with this Section 8,
provided that any such assignments in respect of which such fees are waived (i) are to an Affiliate of the assigning Tranche A Incremental Term Loan Lender, (ii) are completed by December 31, 2015, and (iii) do not total
more than ten (10) in number in total. Any assignment not complying with the foregoing conditions will incur the processing and recording fees provided for in the Credit Agreement. 

Section 9. Reference to and Effect on Loan Documents. (a) On and after the Incremental Term Facility Closing Date,
(1) each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement and each of the other Loan Documents to “the Credit
Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement, as supplemented by this Supplement; (2) each reference in the Credit
Agreement to the first priority nature of the security interest created in the Collateral shall instead, with respect or in reference to the Tranche A Incremental Term Facility and/or the Tranche A Incremental Term Loans, be a reference to a junior
priority Lien; and (3) the Tranche A Incremental Term Loan Lenders hereby agree, for the benefit of the holders of any Obligations in respect of the Term Loans, that all references in the Credit Agreement and the other Loan Documents to
“Secured Obligations” and “Secured Parties,” in each case, with respect to First Lien Collateral Documents and the Term Loan Guaranty shall exclude the Tranche A Incremental 

  
 10 

 
Term Loan Obligations and the Tranche A Incremental Term Loan Lenders, as applicable. For the avoidance of doubt, to the extent any of the First Lien Collateral Documents inure to the benefit of
the Tranche A Incremental Term Loan Lenders, all Liens arising therein in favor of, and all benefit arising therefrom for the benefit of, the Tranche A Incremental Term Loan Lenders shall, in all cases, be deemed to be junior in priority to the
Liens securing the Obligations in respect of the Term Loans. This Supplement is an Incremental Term Supplement contemplated by the Credit Agreement and shall for all purposes constitute a Loan Document. 

(b) The Credit Agreement and each of the other Loan Documents, as specifically supplemented by this Supplement, are and shall continue to be
in full force and effect and are hereby in all respects ratified and confirmed. However, the Tranche A Incremental Term Loan Lenders hereby explicitly disclaim, and the Loan Parties and the Administrative Agent hereby agree with such disclaimer, any
and all rights that the Tranche A Incremental Term Loan Lenders might otherwise have under the First Lien Collateral Documents and the Term Loan Guaranty. Each Tranche A Incremental Term Loan Lender, the Administrative Agent, the Borrower, the
Parent and each of the Guarantors agrees that the Tranche A Incremental Term Loan Obligations created or contemplated hereunder are and will be guaranteed and/or secured by the documents executed in connection herewith as set forth on Schedule
II hereto (such documents, the “Tranche A Incremental Collateral Documents”) on or after the Incremental Term Facility Closing Date, in accordance with the terms of this Supplement, as such documents may hereafter be
amended, supplemented, restated or otherwise modified with the consent of the Tranche A Required Lenders. Notwithstanding anything else to the contrary herein or in any other Loan Document, any landlord waiver, collateral access agreement, bailee
arrangement or any other similar agreement in favor of the Administrative Agent shall be deemed, to the maximum extent permitted under the terms of such agreement, to run to the benefit of the Tranche A Incremental Term Loan Lenders. 

(c) Notwithstanding Section 8(b), above, each of the undersigned Guarantors consents to this Supplement and the transactions
contemplated hereby and hereby confirms and agrees that (i) notwithstanding the effectiveness of this Supplement, the Term Loan Guaranty is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all
respects, except that, on and after the effectiveness of this Supplement each reference in the Term Loan Guaranty to the “Credit Agreement”, “thereunder”, “thereof” or words of like import shall mean and be a reference
to the Credit Agreement, as supplemented by this Supplement, and (ii) the Term Loan Guaranty does, and shall continue to, guarantee the payment of all Obligations (but excluding the Tranche A Incremental Term Loan Obligations) of the Loan
Parties under the Loan Documents, in each case as supplemented by this Supplement. Each Guarantor hereby confirms and does, by its execution hereof, jointly and severally, irrevocably, absolutely and unconditionally guarantee the prompt and complete
payment and performance when due, no matter how the same shall become due (whether at stated maturity, by required prepayment, upon acceleration, or demand or otherwise), of all Obligations (other than the Tranche A Incremental Term Loan
Obligations) created or contemplated hereunder. 
 (d) Notwithstanding anything to the contrary contained herein or in any other Loan
Document, the authority to enforce rights and remedies hereunder, under any Tranche A Incremental Collateral Document and under the other Loan Documents against the Loan Parties or any of them shall be vested exclusively in, and all actions and
proceedings at law in 

  
 11 

 
connection with such enforcement shall be instituted and maintained exclusively by, the Administrative Agent (or its authorized designee) in accordance with Article IX of the Credit
Agreement for the benefit of all the Lenders; provided that, the foregoing shall not prohibit (a) the Administrative Agent from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its capacity as
Administrative Agent) hereunder and under the Credit Agreement and the other Loan Documents, (b) any Lender (including any Tranche A Incremental Term Loan Lender) from exercising setoff rights in accordance with Section 10.08 or
(c) any Lender (including any Tranche A Incremental Term Loan Lender) from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to any Loan Party under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors. Each Tranche A Incremental Term Loan Lender irrevocably agrees that it will not direct the Administrative Agent to exercise, or take any action to prepare to exercise, any remedy under
any Tranche A Incremental Collateral Document unless and until the Administrative Agent is simultaneously exercising, or taking any such action to prepare to exercise, any remedy under and as permitted by the Credit Agreement and the other Loan
Documents in respect of the First Lien Collateral Documents for the benefit of the holders of Obligations in respect of the Term Loans or the Term Loans have been paid in full. 

Section 10. Costs and Expenses. The Borrower agrees to pay or reimburse all reasonable out-of-pocket costs and expenses of the
Administrative Agent in connection with the preparation, execution, delivery and administration, modification and amendment of this Supplement and the other instruments and documents to be delivered hereunder or in connection herewith (including,
without limitation, the reasonable fees and expenses of counsel for the Administrative Agent) in accordance with the terms of Section 10.04 of the Credit Agreement. The Borrower further agrees to pay all reasonable and documented
out-of-pocket expenses incurred by the Tranche A Incremental Term Loan Lenders (including the reasonable fees, charges and disbursements of any one firm of counsel to the Tranche A Incremental Term Loan Lenders and, if necessary, of one local
counsel in each appropriate jurisdiction) in connection with the preparation, negotiation, execution, delivery, and administration, of this Supplement and the other instruments and documents to be delivered hereunder or in connection herewith or any
amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated). Notwithstanding anything in Section 10.04(a)(ii) of the Credit Agreement to
the contrary, the Borrower agrees to pay all reasonable and documented out-of-pocket expenses incurred by the Administrative Agent (or sub-agent) acting on behalf of the Tranche A Incremental Term Loan Lenders and any Tranche A Incremental Term Loan
Lender (including the reasonable fees, charges and disbursements of any one firm of counsel for the Administrative Agent (or sub-agent) in such capacity and Tranche A Incremental Term Loan Lenders and, if necessary, of one local counsel in each
appropriate jurisdiction, plus in the case of an actual or perceived conflict of interests, one additional firm of counsel in each relevant jurisdiction to each of the affected Administrative Agent acting on behalf of the Tranche A Incremental Term
Loan Lenders and Tranche A Incremental Term Loan Lenders similarly situated taken as a whole), in connection with the protection of its rights (A) in connection with this Supplement, the Tranche A Incremental Collateral Documents, the Credit
Agreement and the other Loan Documents, including its rights under this Section, or (B) in connection with Tranche A Incremental Term Loans made hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or
negotiations in respect of such Tranche A Incremental Term Loans. 

  
 12 

 Section 11. Execution in Counterparts. This Supplement may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. Delivery of an executed
counterpart of a signature page to this Supplement by facsimile or electronic means (including, without limitation, “.pdf” or “.tiff”) shall be effective as delivery of a manually executed counterpart of this Supplement. 

Section 12. Incremental Term Facility Closing Date; Termination of Commitments. 

(a) This Supplement shall become effective, and the obligation of each Tranche A Incremental Term Loan Lender to honor any request for a
credit extension in respect of the Tranche A Incremental Term Loans shall arise, in each case on the date (the “Incremental Term Facility Closing Date”) fulfillment of the following conditions occurs: 

i. receipt by the Administrative Agent of: 

1) executed counterparts of this Supplement by each party hereto; 

2) a certificate of each Loan Party substantially in the form of Exhibit A hereto dated as of the Incremental Term Facility Closing
Date signed by a Responsible Officer of such Loan Party certifying and attaching (w) the Organization Documents of such Loan Party, (x) the resolutions adopted by such Loan Party approving or consenting to the extensions of credit
hereunder and the execution, delivery and performance of this Supplement, the Tranche A Incremental Collateral Documents (and any agreements, instruments, recordings or filings related thereto) any other Loan Documents, as applicable, (y) an
incumbency certificate of such Loan Party evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Supplement, the Tranche A Incremental Collateral
Documents and any other Loan Document to which such Loan Party is a party and (z) a certificate of good standing (or equivalent), dated as of a recent date, of such Loan Party evidencing each such Loan Party is validly existing, in good
standing and qualified to engage in business in its jurisdiction of organization, formation or incorporation; 
 3) the Tranche A
Incremental Collateral Documents signed by the Parent, the Borrower and each Guarantor, as applicable, to secure the Tranche A Incremental Term Loans and all financing statements in appropriate form for filing in order to perfect the Liens created
under the Tranche A Incremental Collateral Documents that name any Loan Party as debtor, each in form and substance reasonably acceptable to the Administrative Agent and the Tranche A Incremental Term Loan Lenders; provided that, the Tranche
A Incremental Collateral Documents shall be in all material respects the same forms of documents as the First Lien Collateral Documents other than with respect to the first lien and the junior lien nature of the liens and security interests
thereunder; 
 4) executed counterparts of Tranche A Incremental Guaranty, which shall be in all material respects the same form of
document as the Term Loan Guaranty; 

  
 13 

 5) if requested by any Tranche A Incremental Term Loan Lender, a Note duly executed by the
Borrower in favor of such Tranche A Incremental Term Loan Lender, which Note shall contain the legend set forth in Section 14 below; 

6) a favorable opinion of (i) McAfee & Taft, Oklahoma counsel for the Loan Parties, and (ii) Baker Botts L.L.P., counsel
to the Loan Parties, each in form and substance reasonably acceptable to the Administrative Agent and the Tranche A Incremental Term Loan Lenders; 

7) a certificate signed by a Responsible Officer of the Borrower certifying that the conditions specified in Section 12(a)(ii),
(iii), (iv), and (v) have been satisfied; 
 8) copies of the audited financial statements of the Parent and its
subsidiaries for the fiscal years ended December 31, 2012, 2013 and 2014 and interim financial statements of the Parent and its subsidiaries dated the end of the most recent fiscal quarter for which financial statements are available; 

9) results of Lien searches in respect of the Loan Parties reasonably requested by the Administrative Agent showing no Liens other than
Permitted Liens and other Liens approved by the Administrative Agent and the Tranche A Incremental Term Loan Lenders; 
 10) copies of
insurance certificates or insurance binders evidencing liability, casualty, and property insurance meeting the requirements set forth in the Tranche A Incremental Collateral Documents or other Loan Documents; 

11) a certificate substantially in the form of Exhibit B hereto certifying as to the matters set forth in Section 2(a),
(b), (c) and (d) hereof; 
 12) a Loan Notice relating to the Tranche A Incremental Term Loans consistent
with the requirements of the Credit Agreement; 
 13) a duly executed amendment in respect of the ABL Credit Agreement in form and
substance reasonably acceptable to the Administrative Agent and the Tranche A Incremental Term Loan Lenders permitting entry into the transactions contemplated by this Supplement and the incurrence of Indebtedness hereunder and such amendment shall
be in full force and effect on the Incremental Term Facility Closing Date; and 
 14) evidence satisfactory to the Administrative Agent and
the Tranche A Incremental Term Lenders related to the matters described in items (ii) – (vii) below. 
 ii. there shall not
have occurred since December 31, 2014, any event or condition that has had or could be reasonably expected, either individually or in the aggregate, to have a Material Adverse Effect; 

  
 14 

 iii. the absence of any action, suit, investigation or proceeding pending or, to the knowledge
of the Loan Parties, threatened in any court or before any arbitrator or governmental authority that could reasonably be expected to have a Material Adverse Effect; 

iv. each Loan Party shall have received all governmental, partner and third party consents and approvals necessary for their consummation of
the transaction contemplated by this Supplement, which consents and approvals are in full force and effect; 
 v. no order, decree,
judgment, ruling or injunction exists which restrains the consummation of the transactions contemplated by this Supplement; 
 vi. the
Administrative Agent, the Tranche A Incremental Term Loan Lenders and the Lead Arranger shall have received all fees and expenses (including the reasonable and documented fees and expenses of counsel (including any local counsel) for the
Administrative Agent and counsel for the Tranche A Incremental Term Loan Lenders, to the extent invoiced two Business Days prior to the Incremental Term Facility Closing Date); 

vii. such date not being later than the Termination Date; and 

viii. such date being not earlier than the date specified in the written notice from the Administrative Agent to each Lender requesting
Incremental Term Commitments and Incremental Term Loans under the Tranche A Incremental Term Loan Facility as being the date by which each Lender is requested to respond thereto (which specified response date must be at least ten Business Days after
the date of delivery of such notice to the Lenders by the Administrative Agent). 
 (b) If the Incremental Term Facility Closing Date does
not occur on or prior to the Termination Date, the Tranche A Incremental Term Commitments hereunder shall automatically terminate. 
 (c) No
later than 30 days after the Incremental Term Facility Closing Date (or such later date as the Administrative Agent may agree in its sole discretion (after consultation with the Tranche A Incremental Term Loan Lenders)) the Borrower shall provide to
the Administrative Agent (i) copies of declaration pages and endorsements of insurance meeting the requirements set forth in the Tranche A Incremental Collateral Documents or other Loan Documents and (ii) Mortgaged Property Support
Documents (as defined in Schedule 6.16 to the Credit Agreement) as required by the Administrative Agent, to create in favor of the Administrative Agent for the benefit of the Tranche A Incremental Term Loan Lenders, a legal valid and enforceable
junior priority Lien in the Mortgaged Property; provided, that the Tranche A Incremental Term Loan Lenders hereby irrevocably consent and agree to the indefinite extension of time for the delivery of such documents that the Administrative
Agent has previously granted to the Borrower with respect to the properties located at 40 Lamoka Road, Sayre, PA 18840, 6221 Mile Line Road, Sayre, PA 18840 and 3715 S. Radio Road, El Reno, OK, 73036. 

Section 13. Governing Law. This Supplement shall be governed by, and construed in accordance with, the laws of the State of New
York, and shall be subject to the provisions of Sections 10.14 and 10.15 of the Credit Agreement and such provisions are incorporated herein by reference, mutatis mutandis. 

  
 15 

 Section 14. OID Legend. Upon the request of a Tranche A Incremental Term Loan
Lender, the Borrower shall execute and deliver to such Lender a promissory note, which shall evidence the Tranche A Incremental Term Loans to the Borrower by such Lender. Any promissory note issued to a Tranche A Incremental Term Loan Lender shall
bear the following legend: 
 THIS NOTE HAS BEEN ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR UNITED STATES FEDERAL INCOME TAX PURPOSES. FOR
INFORMATION REGARDING THE ISSUE PRICE, THE TOTAL AMOUNT OF ORIGINAL ISSUE DISCOUNT, THE ISSUE DATE, AND THE YIELD TO MATURITY OF THE NOTE, PLEASE CONTACT SEVENTY SEVEN OPERATING LLC, 777 N.W. 63RD ST., OKLAHOMA CITY, OKLAHOMA 73116, ATTENTION: CHIEF
FINANCIAL OFFICER. 
 Section 15. Entire Agreement. THIS SUPPLEMENT, THE TRANCHE A INCREMENTAL COLLATERAL DOCUMENTS,
THE TRANCHE A INCREMENTAL GUARANTY AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN
ORAL AGREEMENTS AMONG THE PARTIES. 
 [Signature Pages Follow] 

  
 16 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplement to be duly executed as of the
date first written above. 
  

			
	SEVENTY SEVEN ENERGY INC. (formerly known as CHESAPEAKE OILFIELD OPERATING, L.L.C.), as Parent
		
	By:		 /s/ Cary D. Baetz

	Name:		Cary D. Baetz
	Title:		Chief Financial Officer and Treasurer
	
	SEVENTY SEVEN OPERATING LLC,
	as Borrower
		
	By:		 /s/ Cary D. Baetz

	Name:		Cary D. Baetz
	Title:		Chief Financial Officer and Treasurer

  
 Signature Page to
Incremental Term Supplement (Tranche A) 

 
			
	SEVENTY SEVEN ENERGY INC.
	GREAT PLAINS OILFIELD RENTAL, L.L.C.
	HODGES TRUCKING COMPANY, L.L.C.
	MID-STATES OILFIELD SUPPLY LLC
	NOMAC DRILLING, L.L.C.
	OILFIELD TRUCKING SOLUTIONS, L.L.C.
	PERFORMANCE TECHNOLOGIES, L.L.C.
	PTL PROP SOLUTIONS, L.L.C.
	SEVENTY SEVEN LAND COMPANY LLC,
	each as Guarantors
		
	By:		 /s/ Cary D. Baetz

	Name:		Cary D. Baetz
	Title:		Chief Financial Officer and Treasurer

  
 Signature Page to
Incremental Term Supplement (Tranche A) 

 
			
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:		 /s/ Cindy Jordan

	Name:		Cindy Jordan
	Title:		Assistant Vice President

  
 Signature Page to
Incremental Term Supplement (Tranche A) 

 
			
	BLUEMERIDIAN CAPITAL, LLC, as Tranche A Incremental Term Loan Lender
		
	By:		 /s/ John Fuans

	Name:		John Fuans
	Title:		CFO

  
 Signature Page to
Incremental Term Supplement (Tranche A) 

 SCHEDULE I 

TO 
 INCREMENTAL TERM
SUPPLEMENT (TRANCHE A) 
  

					
	 Tranche A Incremental Tem Loan Lender
	  	Tranche A
Incremental Term
Commitment	 
	 BlueMeridian Capital, LLC
	  	$	100,000,000.00	  
		  			
		  			
		  			
		  			
		  			
		  			
		  			
		  			
		  			
		  			
		  	  
	  
	 
	 Total
		$	100,000,000.00	  
		  	  
	  
	 

  
 Schedule I to
Incremental Term Supplement (Tranche A) 

 SCHEDULE II 

TO 
 INCREMENTAL TERM
SUPPLEMENT 
 TRANCHE A INCREMENTAL COLLATERAL DOCUMENTS 
  

	1.	Junior Tranche A Incremental Security Agreement among the Borrower, the Guarantors and the Administrative Agent for the benefit of the Tranche A Incremental Term Loan Lenders. 

 

	2.	Junior Tranche A Incremental Pledge Agreement among the Parent, the Borrower, Great Plains Oilfield Rental, L.L.C., Performance Technologies, L.L.C., PTL Prop Solutions, L.L.C. and the Administrative Agent for the
benefit of the Tranche A Incremental Term Loan Lenders. 

  

	3.	Junior Tranche A Incremental Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Filing from Seventy Seven Land Company LLC to Administrative Agent for the Tranche A Incremental Term Loan Lenders
for the property located at 777 NW 63rd Street, Oklahoma City, OK 73116. 

  

	4.	Junior Tranche A Incremental Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Filing from Seventy Seven Land Company LLC to Administrative Agent for the Tranche A Incremental Term Loan Lenders
for the property located at 3401 S. Radio Road, El Reno, OK 73036. 

  

	5.	Junior Tranche A Incremental Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Filing from Seventy Seven Land Company LLC to Administrative Agent for the Tranche A Incremental Term Loan Lenders
for the property located at 4050 W. I-40, Oklahoma City, OK 73108. 

  

	6.	Junior Tranche A Incremental Open-End Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Filing from Seventy Seven Land Company LLC to Administrative Agent for the Tranche A Incremental Term Loan
Lenders for the property located at 171 Locust Avenue, Mt. Morris, PA 15349. 

  

	7.	Junior Tranche A Incremental Deed of Trust, Security Agreement, Assignment of Leases and Rents and Fixture Filing from Seventy Seven Land Company LLC to PRLAP, Inc. for the benefit of Administrative Agent for the
Tranche A Incremental Term Loan Lenders for the properties located at 9022 Chesapeake Way, Pearsall, TX 78061 and 9029 Chesapeake Way, Pearsall, TX 78061. 

  

	8.	Any other Mortgage in favor of the Administrative Agent for the benefit of the Tranche A Incremental Term Loan Lenders for each of the properties listed in the proviso of Section 12(c) of the Supplement,
subject to the extension provided therein. 

  
 Schedule II to
Incremental Term Supplement (Tranche A) 

 EXHIBIT A 

Officer’s Certificate 

SEVENTY SEVEN ENERGY INC. 

SECRETARY’S CERTIFICATE 

May 13, 2015 
 I, David C.
Treadwell, do hereby certify that I am the duly elected, qualified and acting Secretary of Seventy Seven Energy Inc. (the “Parent”), and as such Secretary, I have custody of the limited liability company records of the
Parent. Reference is made to that certain Incremental Term Supplement (Tranche A) (the “Supplement”) dated as of even date herewith, among Seventy Seven Operating LLC, an Oklahoma limited liability company (the
“Borrower”), the Parent, formerly known as Chesapeake Oilfield Operating, L.L.C., each of the Subsidiary Guarantors party thereto, each lender party thereto, and Bank of America, N.A., as administrative agent (or sub-agent
thereof) under the Credit Agreement, as defined herein (the “Administrative Agent”). The Supplement supplements that certain Credit Agreement dated as of June 25, 2014 (the “Credit Agreement”), by
and among the Borrower, the Parent, the Lenders (as defined therein) from time to time party thereto and the Administrative Agent. Unless the context requires otherwise, capitalized terms used herein but not defined herein have the meanings assigned
to such terms in the Supplement. Pursuant to Section 12(a)(i)(2) of the Supplement, I hereby certify in my capacity as the Secretary of the Parent and not in my individual capacity, as of the date hereof, that: 

1. Attached hereto as Exhibit A is a copy of a certificate of the Secretary of State of the State of Oklahoma dated as of a recent date
with respect to the good standing of the Parent in the State of Oklahoma. 
 2. Attached hereto as Exhibit B is a copy of the
Certificate of Incorporation of the Parent (including any and all amendments thereto), certified as of a recent date by the Secretary of State of the State of Oklahoma. Such Certificate of Incorporation is in full force and effect on the date
hereof. 
 3. Attached hereto as Exhibit C is a true and complete copy of the Bylaws of the Parent (including any and all amendments
thereto) as in full force and effect on the date hereof. 
 4. Attached hereto as Exhibit D is a true and complete copy of certain
resolutions duly adopted by the Board of Directors of the Parent, authorizing the execution, delivery and performance of the Supplement, Tranche A Incremental Collateral Documents, Tranche A Incremental Guaranty and the other Loan Documents to which
the Parent is a party. Such resolutions have not been rescinded or modified in any manner and are on the date hereof still in full force and effect. 

5. The persons whose names, titles and signatures appear on Exhibit E are duly elected or appointed, qualified and acting officers of
the Parent and hold, on the date hereof, the 

  
 Exhibit A to
Incremental Term Supplement (Tranche A) 

 
offices set opposite their respective names on Exhibit E, and the signatures therein appearing opposite their respective names are the genuine signatures of such officers. Each such
officer is duly authorized by the Resolutions attached as Exhibit D to execute and deliver the Supplement, Tranche A Incremental Collateral Documents, Tranche A Incremental Guaranty and the other Loan Documents on behalf of the Parent. 

6. McAfee & Taft A Professional Corporation may rely on this Certificate for all purposes related to its legal opinion, dated the
date hereof and delivered to the Administrative Agent pursuant to Section 12(a)(i)(6) of the Supplement. 
 [Signature page
follows.] 

  
 Exhibit A to
Incremental Term Supplement (Tranche A) 

 IN WITNESS WHEREOF, I have signed this Secretary’s Certificate as of the date first above
written. 
  

					
	By:		 /s/ David C. Treadwell

			Name:		David C. Treadwell
			Title:		Secretary

 I, Cary Baetz the Chief Financial Officer of the Parent, hereby certify that David C. Treadwell is the
duly elected and qualified Secretary of the Parent and that the signature set forth above is his signature. 
 IN WITNESS WHEREOF, I have
hereunto set my hand as of the date first above written. 
  

					
	By:		 /s/ Cary Baetz

			Name:		Cary Baetz
			Title:		Chief Financial Officer

  
 Exhibit A to
Incremental Term Supplement (Tranche A) 

 EXHIBIT B 

Closing Certificate 
 May 13, 2015

 This Certificate is given by a Responsible Officer of Seventy Seven Energy Inc., an Oklahoma corporation formerly known as Chesapeake
Oilfield Operating, L.L.C. (“Parent”) and Seventy Seven Operating LLC, an Oklahoma limited liability company (the “Borrower”). 

Reference is made to that certain Incremental Term Supplement (Tranche A) (the “Supplement”) dated as of the date hereof,
among the Borrower, the Parent, each of the Subsidiary Guarantors party thereto, each lender party thereto, and Bank of America, N.A., as administrative agent (or a sub-agent thereof) under the Credit Agreement, as defined herein (the
“Administrative Agent”). The Supplement supplements that certain $400 Million Term Loan Credit Agreement dated as of June 25, 2014 (the “Credit Agreement”), among the Borrower, the Administrative Agent, the
Parent, as a Guarantor, and the several lenders from time to time parties thereto. Terms that are defined in the Supplement and that are used but not defined herein have the meanings given them in the Supplement. Pursuant to
Section 12(a)(i)(11) of the Supplement the undersigned, Chief Financial Officer and Treasurer of Parent and Borrower, does hereby certify that he has made a thorough inquiry into all matters certified herein and, based upon such inquiry and
experience, does hereby further certify that: 
 1. He is the duly elected, qualified, and acting Chief Financial Officer and Treasurer of
Parent and Borrower. 
 2. No Default has occurred and is continuing on and as of the Incremental Term Facility Closing Date or would result
from the addition of the Tranche A Incremental Term Facility. 
 3. The Parent has disclosed to the Administrative Agent and the Tranche A
Incremental Term Loan Lenders all agreements, instruments and corporate or other restrictions to which it or any of its Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected
to result in a Material Adverse Effect. No report, financial statement, certificate or other information furnished in writing by or on behalf of and at the direction of any Loan Party to the Administrative Agent or any Tranche A Incremental Term
Loan Lender in connection with the transactions contemplated by the Supplement and the negotiation of the Supplement or delivered thereunder or under any other Tranche A Incremental Collateral Document or other Loan Document (in each case as
modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not
misleading; provided that, with respect to projected information, the Parent represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time. 

4. Except as expressly contemplated by the Tranche A Incremental Collateral Documents, the provisions of the Tranche A Incremental Collateral
Documents are effective to create in favor of the Administrative Agent for the benefit of the Administrative Agent and the 

  
 Exhibit B to
Incremental Term Facility Supplement (Tranche A) 

 
Tranche A Incremental Term Loan Lenders a legal, valid and enforceable Lien (subject to Permitted Liens) on all right, title and interest of the respective Loan Parties in the Collateral
described therein. 
 5. The representations and warranties of the Borrower contained in Article V of the Credit Agreement (other
than Section 5.15, which is replaced by Section 2(b) of the Supplement, and Section 5.21, which is replaced by Section 2(c) of the Supplement) are true and correct in all material respects on and as of
the Incremental Term Facility Closing Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date, and
except that (i) for purposes of Section 2(d) of the Supplement, the representations and warranties contained in Sections 5.05(a) and (b) of the Credit Agreement shall be deemed to refer to the most recent
statements furnished pursuant to Sections 6.01(a) and (b), respectively, of the Credit Agreement, (ii) the reference to the first priority nature of the security interests created with respect to the Collateral in
Section 5.03 of the Credit Agreement shall instead be a reference to a junior lien and the reference to Collateral Documents in Section 5.03 of the Credit Agreement shall instead be a reference to the Tranche A Incremental
Collateral Documents, (iii) the reference in Section 5.02(b)(i) of the Credit Agreement shall be deemed to exclude any representation that no new Liens or payment obligations are created under the Supplement and the other documents
executed in connection therewith, (iv) the representation and warranty in Section 5.03 of the Credit Agreement shall exclude any approvals, consents, exemptions, authorizations or other actions by, or notice to, or filing with,
(A) the notice to the Administrative Agent and the Lenders being provided pursuant to Section 12(a)(ix) or (B) any Governmental Authority in respect of the creation or perfection of any Lien or in respect of routine
organizational and tax matters, and (v) the references in Sections 5.08(c), (d)(i) and (d)(ii) to Schedules 5.08(c), (d)(i) and (d)(ii), respectively, shall be deemed to refer instead to Annexes
A, B and C of the Supplement, respectively, and each reference to “the date hereof” in such Sections shall be deemed to refer instead to the date of the Supplement. 

[Remainder of page intentionally left blank.] 

  
 Exhibit B to
Incremental Term Facility Supplement (Tranche A) 

 IN WITNESS WHEREOF, this instrument is executed by the undersigned as of the date first written
above. 
  

	
	 /s/ Cary D. Baetz

	Cary D. Baetz
	Chief Financial Officer and Treasurer

  
 Exhibit B to
Incremental Term Facility Supplement (Tranche A)Exhibit 10.1

 

 

Master Repurchase

Agreement

September 1996 Version

 

Dated as of           January 22, 2015

 

Between:               Richard H. Pickup, as Trustee of the RHP Trust dated May 31,2011, as amended and restated

 

and                         IMPAC MORTGAGE CORP.

 

1. Applicability

 

From time to time the parties hereto may enter into transactions in which one party (“Seller”) agrees to transfer to the other (“Buyer”) securities or other assets (“Securities”) against the transfer of funds by Buyer, with a simultaneous agreement by Buyer to transfer to Seller such Securities at a date certain or on demand, against the transfer of funds by Seller. Each such transaction shall be referred to herein as a “Transaction” and, unless otherwise agreed in writing, shall be governed by this Agreement, including any supplemental terms or conditions contained in Annex I hereto and in any other annexes identified herein or therein as applicable hereunder.

 

2. Definitions

 

(a) “Act of Insolvency”, with respect to any party, (i) the commencement by such party as debtor of any case or proceeding under any bankruptcy, insolvency, reorganization, liquidation, moratorium, dissolution, delinquency or similar law, or such party seeking the appointment or election of a receiver, conservator, trustee, custodian or similar official for such party or any substantial part of its property, or the convening of any meeting of creditors for purposes of commencing any such case or proceeding or seeking such an appointment or election, (ii) the commencement of any such case or proceeding against such party, or another seeking such an appointment or election, or the filing against a party of an application for a protective decree under the provisions of the Securities Investor Protection Act of 1970, which (A) is consented to or not timely contested by such party, (B) results in the entry of an order for relief, such an appointment or election, the issuance of such a protective decree or the entry of an order having a similar effect, or (C) is not dismissed within 15 days, (iii) the making by such party of a general assignment for the benefit of creditors, or (iv) the admission in writing by such party of such party’s inability to pay such party’s debts as they become due;

 

(b) “Additional Purchased Securities”, Securities provided by Seller to Buyer pursuant to Paragraph 4(a) hereof;

 

(c) “Buyer’s Margin Amount”, with respect to any Transaction as of any date, the amount obtained by application of the Buyer’s Margin Percentage to the Repurchase Price for such Transaction as of such date;

 

 

(d) “Buyer’s Margin Percentage”, with respect to any Transaction as of any date, a percentage (which may be equal to the Seller’s Margin Percentage) agreed to by Buyer and Seller or, in the absence of any such agreement, the percentage obtained by dividing the Market Value of the Purchased Securities on the Purchase Date by the Purchase Price on the Purchase Date for such Transaction;

 

(e) “Confirmation”, the meaning specified in Paragraph 3(b) hereof;

 

(f) “Income”, with respect to any Security at any time, any principal thereof and all interest, dividends or other distributions thereon;

 

(g) “Margin Deficit”, the meaning specified in Paragraph 4(a) hereof; (h) “Margin Excess”, the meaning specified in Paragraph 4(b) hereof;

 

(i) “Margin Notice Deadline”, the time agreed to by the parties in the relevant Confirmation, Annex I hereto or otherwise as the deadline for giving notice requiring same-day satisfaction of margin maintenance obligations as provided in Paragraph 4 hereof (or, in the absence of any such agreement, the deadline for such purposes established in accordance with market practice);

 

(j) “Market Value”, with respect to any Securities as of any date, the price for such Securities on such date obtained from a generally recognized source agreed to by the parties or the most recent closing bid quotation from such a source, plus accrued Income to the extent not included therein (other than any Income credited or transferred to, or applied to the obligations of, Seller pursuant to Paragraph 5 hereof ) as of such date (unless contrary to market practice for such Securities);

 

(k) “Price Differential”, with respect to any Transaction as of any date, the aggregate amount obtained by daily application of the Pricing Rate for such Transaction to the Purchase Price for such Transaction on a 360 day per year basis for the actual number of days during the period commencing on (and including) the Purchase Date for such Transaction and ending on (but excluding) the date of determination (reduced by any amount of such Price Differential previously paid by Seller to Buyer with respect to such Transaction);

 

(l) “Pricing Rate”, the per annum percentage rate for determination of the Price Differential; (m)”Prime Rate”, the prime rate of U.S. commercial banks as published in The Wall Street Journal (or, if more than one such rate is published, the average of such rates);

 

(n) “Purchase Date”, the date on which Purchased Securities are to be transferred by Seller to Buyer;.

 

(o) “Purchase Price”, (i) on the Purchase Date, the price at which Purchased Securities are transferred by Seller to Buyer, and (ii) thereafter, except where Buyer and Seller agree otherwise, such price increased by the amount of any cash transferred by Buyer to Seller pursuant to Paragraph 4(b) hereof and decreased by the amount of any cash transferred by Seller to Buyer pursuant to Paragraph 4(a) hereof or applied to reduce Seller’s obligations under clause (ii) of Paragraph 5 hereof;

 

(p) “Purchased Securities”, the Securities transferred by Seller to Buyer in a Transaction hereunder, and any Securities substituted therefor in accordance with Paragraph 9 hereof. The term “Purchased Securities” with respect to any Transaction at any time also shall include Additional Purchased Securities delivered pursuant to Paragraph 4(a) hereof and shall exclude Securities returned pursuant to Paragraph 4(b) hereof;

 

(q) “Repurchase Date”, the date on which Seller is to repurchase the Purchased Securities from Buyer, including any date determined by application of the provisions of Paragraph 3(c) or 11 hereof;

 

(r) “Repurchase Price”, the price at which Purchased Securities are to be transferred from Buyer to Seller upon termination of a Transaction, which will be determined in each case (including Transactions terminable upon demand) as the sum of the Purchase Price and the Price Differential as of the date of such determination;

 

2

 

(s) “Seller’s Margin Amount”, with respect to any Transaction as of any date, the amount obtained by application of the Seller’s Margin Percentage to the Repurchase Price for such Transaction as of such date;

 

(t) “Seller’s Margin Percentage”, with respect to any Transaction as of any date, a percentage (which may be equal to the Buyer’s Margin Percentage) agreed to by Buyer and Seller or, in the absence of any such agreement, the percentage obtained by dividing the Market Value of the Purchased Securities on the Purchase Date by the Purchase Price on the Purchase Date for such Transaction.

 

3. Initiation; Confirmation; Termination

 

(a) An agreement to enter into a Transaction may be made orally or in writing at the initiation of either Buyer or Seller. On the Purchase Date for the Transaction, the Purchased Securities shall be transferred to Buyer or its agent against the transfer of the Purchase Price to an account of Seller.

 

(b) Upon agreeing to enter into a Transaction hereunder, Buyer or Seller (or both), as shall be agreed, shall promptly deliver to the other party a written confirmation of each Transaction (a “Confirmation”). The Confirmation shall describe the Purchased Securities (including CUSIP number, if any), identify Buyer and Seller and set forth (i) the Purchase Date, (ii) the Purchase Price, (iii) the Repurchase Date, unless the Transaction is to be terminable on demand, (iv) the Pricing Rate or Repurchase Price applicable to the Transaction, and (v) any additional terms or conditions of the Transaction not inconsistent with this Agreement. The Confirmation, together with this Agreement, shall constitute conclusive evidence of the terms agreed between Buyer and Seller with respect to the Transaction to which the Confirmation relates, unless with respect to the Confirmation specific objection is made promptly after receipt thereof. In the event of any conflict between the terms of such Confirmation and this Agreement, this Agreement shall prevail.

 

(c) In the case of Transactions terminable upon demand, such demand shall be made by Buyer or Seller, no later than such time as is customary in accordance with market practice, by telephone or otherwise on or prior to the business day on which such termination will be effective. On the date specified in such demand, or on the date fixed for termination in the case of Transactions having a fixed term, termination of the Transaction will be effected by transfer to Seller or its agent of the Purchased Securities and any Income in respect thereof received by Buyer (and not previously credited or transferred to, or applied to the obligations of, Seller pursuant to Paragraph 5 hereof ) against the transfer of the Repurchase Price to an account of Buyer.

 

4. Margin Maintenance

 

(a) If at any time the aggregate Market Value of all Purchased Securities subject to all Transactions in which a particular party hereto is acting as Buyer is less than the aggregate Buyer’s Margin Amount for all such Transactions (a “Margin Deficit”), then Buyer may by notice to Seller require Seller in such Transactions, at Seller’s option, to transfer to Buyer cash or additional Securities reasonably acceptable to Buyer (“Additional Purchased Securities”), so that the cash and aggregate Market Value of the Purchased Securities, including any such Additional Purchased Securities, will thereupon equal or exceed such aggregate Buyer’s Margin Amount (decreased by the amount of any Margin Deficit as of such date arising from any Transactions in which such Buyer is acting as Seller).

 

(b) If at any time the aggregate Market Value of all Purchased Securities subject to all Transactions in which a particular party hereto is acting as Seller exceeds the aggregate Seller’s Margin Amount for all such Transactions at such time (a “Margin Excess”), then Seller may by notice to Buyer require Buyer in such Transactions, at Buyer’s option, to transfer cash or Purchased Securities to Seller, so that the aggregate Market Value of the Purchased Securities, after deduction of any such cash or any Purchased Securities so transferred, will thereupon not exceed such aggregate Seller’s Margin Amount (increased by the amount of any Margin Excess as of such date arising from any Transactions in which such Seller is acting as Buyer).

 

3

 

(c) If any notice is given by Buyer or Seller under subparagraph (a) or (b) of this Paragraph at or before the Margin Notice Deadline on any business day, the party receiving such notice shall transfer cash or Additional Purchased Securities as provided in such subparagraph no later than the close of business in the relevant market on such day. If any such notice is given after the Margin Notice Deadline, the party receiving such notice shall transfer such cash or Securities no later than the close of business in the relevant market on the next business day following such notice.

 

(d) Any cash transferred pursuant to this Paragraph shall be attributed to such Transactions as shall be agreed upon by Buyer and Seller.

 

(e) Seller and Buyer may agree, with respect to any or all Transactions hereunder, that the respective rights of Buyer or Seller (or both) under subparagraphs (a) and (b) of this Paragraph may be exercised only where a Margin Deficit or Margin Excess, as the case may be, exceeds a specified dollar amount or a specified percentage of the Repurchase Prices for such Transactions (which amount or percentage shall be agreed to by Buyer and Seller prior to entering into any such Transactions).

 

(f) Seller and Buyer may agree, with respect to any or all Transactions hereunder, that the respective rights of Buyer and Seller under subparagraphs (a) and (b) of this Paragraph to require the elimination of a Margin Deficit or a Margin Excess, as the case may be, may be exercised whenever such a Margin Deficit or Margin Excess exists with respect to any single Transaction hereunder (calculated without regard to any other Transaction outstanding under this Agreement).

 

5. Income Payments

 

Seller shall be entitled to receive an amount equal to all Income paid or distributed on or in respect of the Securities that is not otherwise received by Seller, to the full extent it would be so entitled if the Securities had not been sold to Buyer. Buyer shall, as the parties may agree with respect to any Transaction (or, in the absence of any such agreement, as Buyer shall reasonably determine in its discretion), on the date such Income is paid or distributed either (i) transfer to or credit to the account of Seller such Income with respect to any Purchased Securities subject to such Transaction or (ii) with respect to Income paid in cash, apply the Income payment or payments to reduce the amount, if any, to be transferred to Buyer by Seller upon termination of such Transaction. Buyer shall not be obligated to take any action pursuant to the preceding sentence (A) to the extent that such action would result in the creation of a Margin Deficit, unless prior thereto or simultaneously therewith Seller transfers to Buyer cash or Additional Purchased Securities sufficient to eliminate such Margin Deficit, or (B) if an Event of Default with respect to Seller has occurred and is then continuing at the time such Income is paid or distributed.

 

6. Security Interest

 

Although the parties intend that all Transactions hereunder be sales and purchases and not loans, in the event any such Transactions are deemed to be loans, Seller shall be deemed to have pledged to Buyer as security for the performance by Seller of its obligations under each such Transaction, and shall be deemed to have granted to Buyer a security interest in, all of the Purchased Securities with respect to all Transactions hereunder and all Income thereon and other proceeds thereof.

 

7. Payment and Transfer

 

Unless otherwise mutually agreed, all transfers of funds hereunder shall be in immediately available funds. All Securities transferred by one party hereto to the other party (i) shall be in suitable form for transfer or shall be accompanied by duly executed instruments of transfer or assignment in blank and such other documentation as the party receiving possession may reasonably request, (ii) shall be transferred on the book-entry system of a Federal Reserve Bank, or (iii) shall be transferred by any other method mutually acceptable to Seller and Buyer.

 

4

 

8. Segregation of Purchased Securities

 

To the extent required by applicable law, all Purchased Securities in the possession of Seller shall be segregated from other securities in its possession and shall be identified as subject to this Agreement. Segregation may be accomplished by appropriate identification on the books and records of the holder, including a financial or securities intermediary or a clearing corporation. All of Seller’s interest in the Purchased Securities shall pass to Buyer on the Purchase Date and, unless otherwise agreed by Buyer and Seller, nothing in this Agreement shall preclude Buyer from engaging in repurchase transactions with the Purchased Securities or otherwise selling, transferring, pledging or hypothecating the Purchased Securities, but no such transaction shall relieve Buyer of its obligations to transfer Purchased Securities to Seller pursuant to Paragraph 3, 4 or 11 hereof, or of Buyer’s obligation to credit or pay Income to, or apply Income to the obligations of, Seller pursuant to Paragraph 5 hereof.

 

Required Disclosure for Transactions in Which the Seller

Retains Custody of the Purchased Securities

 

Seller is not permitted to substitute other securities for those subject to this Agreement and therefore must keep Buyer’s securities segregated at all times, unless in this Agreement Buyer grants Seller the right to substitute other securities. If Buyer grants the right to substitute, this means that Buyer’s securities will likely be commingled with Seller’s own securities during the trading day. Buyer is advised that, during any trading day that Buyer’s securities are commingled with Seller’s securities, they [will]* [may]** be subject to liens granted by Seller to [its clearing bank]* [third parties]** and may be used by Seller for deliveries on other securities transactions. Whenever the securities are commingled, Seller’s ability to resegregate substitute securities for Buyer will be subject to Seller’s ability to satisfy [the clearing]* [any]** lien or to obtain substitute securities.

 

* Language to be used under 17 C.F.R. ß403.4(e) if Seller is a government securities broker or dealer other than a financial institution.

 

** Language to be used under 17 C.F.R. ß403.5(d) if Seller is a financial institution.

 

9. Substitution

 

(a) Seller may, subject to agreement with and acceptance by Buyer, substitute other Securities for any Purchased Securities. Such substitution shall be made by transfer to Buyer of such other Securities and transfer to Seller of such Purchased Securities. After substitution, the substituted Securities shall be deemed to be Purchased Securities.

 

(b) In Transactions in which Seller retains custody of Purchased Securities, the parties expressly agree that Buyer shall be deemed, for purposes of subparagraph (a) of this Paragraph, to have agreed to and accepted in this Agreement substitution by Seller of other Securities for Purchased Securities; provided, however, that such other Securities shall have a Market Value at least equal to the Market Value of the Purchased Securities for which they are substituted.

 

10.Representations

 

Each of Buyer and Seller represents and warrants to the other that (i) it is duly authorized to execute and deliver this Agreement, to enter into Transactions contemplated hereunder and to perform its obligations hereunder and has taken all necessary action to authorize such execution, delivery and performance, (ii) it

 

5

 

will engage in such Transactions as principal (or, if agreed in writing, in the form of an annex hereto or otherwise, in advance of any Transaction by the other party hereto, as agent for a disclosed principal), (iii) the person signing this Agreement on its behalf is duly authorized to do so on its behalf (or on behalf of any such disclosed principal), (iv) it has obtained all authorizations of any governmental body required in connection with this Agreement and the Transactions hereunder and such authorizations are in full force and effect and (v) the execution, delivery and performance of this Agreement and the Transactions hereunder will not violate any law, ordinance, charter, by-law or rule applicable to it or any agreement by which it is bound or by which any of its assets are affected. On the Purchase Date for any Transaction Buyer and Seller shall each be deemed to repeat all the foregoing representations made by it.

 

11.Events of Default

 

In the event that (i) Seller fails to transfer or Buyer fails to purchase Purchased Securities upon the applicable Purchase Date, (ii) Seller fails to repurchase or Buyer fails to transfer Purchased Securities upon the applicable Repurchase Date, (iii) Seller or Buyer fails to comply with Paragraph 4 hereof, (iv) Buyer fails, after one business day’s notice, to comply with Paragraph 5 hereof, (v) an Act of Insolvency occurs with respect to Seller or Buyer, (vi) any representation made by Seller or Buyer shall have been incorrect or untrue in any material respect when made or repeated or deemed to have been made or repeated, or (vii) Seller or Buyer shall admit to the other its inability to, or its intention not to, perform any of its obligations hereunder (each an “Event of Default”):

 

(a) The nondefaulting party may, at its option (which option shall be deemed to have been exercised immediately upon the occurrence of an Act of Insolvency), declare an Event of Default to have occurred hereunder and, upon the exercise or deemed exercise of such option, the Repurchase Date for each Transaction hereunder shall, if it has not already occurred, be deemed immediately to occur (except that, in the event that the Purchase Date for any Transaction has not yet occurred as of the date of such exercise or deemed exercise, such Transaction shall be deemed immediately canceled). The nondefaulting party shall (except upon the occurrence of an Act of Insolvency) give notice to the defaulting party of the exercise of such option as promptly as practicable.

 

(b) In all Transactions in which the defaulting party is acting as Seller, if the nondefaulting party exercises or is deemed to have exercised the option referred to in subparagraph (a) of this Paragraph, (i) the defaulting party’s obligations in such Transactions to repurchase all Purchased Securities, at the Repurchase Price therefor on the Repurchase Date determined in accordance with subparagraph (a) of this Paragraph, shall thereupon become immediately due and payable, (ii) all Income paid after such exercise or deemed exercise shall be retained by the nondefaulting party and applied to the aggregate unpaid Repurchase Prices and any other amounts owing by the defaulting party hereunder, and (iii) the defaulting party shall immediately deliver to the nondefaulting party any Purchased Securities subject to such Transactions then in the defaulting party’s possession or control.

 

(c) In all Transactions in which the defaulting party is acting as Buyer, upon tender by the nondefaulting party of payment of the aggregate Repurchase Prices for all such Transactions, all right, title and interest in and entitlement to all Purchased Securities subject to such Transactions shall be deemed transferred to the nondefaulting party, and the defaulting party shall deliver all such Purchased Securities to the nondefaulting party.

 

(d) If the nondefaulting party exercises or is deemed to have exercised the option referred to in subparagraph (a) of this Paragraph, the nondefaulting party, without prior notice to the defaulting party, may:

 

(i) as to Transactions in which the defaulting party is acting as Seller, (A) immediately sell, in a recognized market (or otherwise in a commercially reasonable manner) at such price or prices as the nondefaulting party may reasonably deem satisfactory, any or all Purchased Securities subject to such Transactions and apply the proceeds thereof to the aggregate unpaid Repurchase Prices

 

6

 

and any other amounts owing by the defaulting party hereunder or (B) in its sole discretion elect, in lieu of selling all or a portion of such Purchased Securities, to give the defaulting party credit for such Purchased Securities in an amount equal to the price therefor on such date, obtained from a generally recognized source or the most recent closing bid quotation from such a source, against the aggregate unpaid Repurchase Prices and any other amounts owing by the defaulting party hereunder; and

 

(ii) as to Transactions in which the defaulting party is acting as Buyer, (A) immediately purchase, in a recognized market (or otherwise in a commercially reasonable manner) at such price or prices as the nondefaulting party may reasonably deem satisfactory, securities (“Replacement Securities”) of the same class and amount as any Purchased Securities that are not delivered by the defaulting party to the nondefaulting party as required hereunder or (B) in its sole discretion elect, in lieu of purchasing Replacement Securities, to be deemed to have purchased Replacement Securities at the price therefor on such date, obtained from a generally recognized source or the most recent closing offer quotation from such a source.

 

Unless otherwise provided in Annex I, the parties acknowledge and agree that (1) the Securities subject to any Transaction hereunder are instruments traded in a recognized market, (2) in the absence of a generally recognized source for prices or bid or offer quotations for any Security, the nondefaulting party may establish the source therefor in its sole discretion and (3) all prices, bids and offers shall be determined together with accrued Income (except to the extent contrary to market practice with respect to the relevant Securities).

 

(e) As to Transactions in which the defaulting party is acting as Buyer, the defaulting party shall be liable to the nondefaulting party for any excess of the price paid (or deemed paid) by the nondefaulting party for Replacement Securities over the Repurchase Price for the Purchased Securities replaced thereby and for any amounts payable by the defaulting party under Paragraph 5 hereof or otherwise hereunder.

 

(f) For purposes of this Paragraph 11, the Repurchase Price for each Transaction hereunder in respect of which the defaulting party is acting as Buyer shall not increase above the amount of such Repurchase Price for such Transaction determined as of the date of the exercise or deemed exercise by the nondefaulting party of the option referred to in subparagraph (a) of this Paragraph.

 

(g) The defaulting party shall be liable to the nondefaulting party for (i) the amount of all reasonable legal or other expenses incurred by the nondefaulting party in connection with or as a result of an Event of Default, (ii) damages in an amount equal to the cost (including all fees, expenses and commissions) of entering into replacement transactions and entering into or terminating hedge transactions in connection with or as a result of an Event of Default, and (iii) any other loss, damage, cost or expense directly arising or resulting from the occurrence of an Event of Default in respect of a Transaction.

 

(h) To the extent permitted by applicable law, the defaulting party shall be liable to the nondefaulting party for interest on any amounts owing by the defaulting party hereunder, from the date the defaulting party becomes liable for such amounts hereunder until such amounts are (i) paid in full by the defaulting party or (ii) satisfied in full by the exercise of the nondefaulting party’s rights hereunder. Interest on any sum payable by the defaulting party to the nondefaulting party under this Paragraph 11(h) shall be at a rate equal to the greater of the Pricing Rate for the relevant Transaction or the Prime Rate.

 

(i) The nondefaulting party shall have, in addition to its rights hereunder, any rights otherwise available to it under any other agreement or applicable law.

 

7

 

 

12.Single Agreement

 

Buyer and Seller acknowledge that, and have entered hereinto and will enter into each Transaction hereunder in consideration of and in reliance upon the fact that, all Transactions hereunder constitute a single business and contractual relationship and have been made in consideration of each other. Accordingly, each of Buyer and Seller agrees (i) to perform all of its obligations in respect of each Transaction hereunder, and that a default in the performance of any such obligations shall constitute a default by it in respect of all Transactions hereunder, (ii) that each of them shall be entitled to set off claims and apply property held by them in respect of any Transaction against obligations owing to them in respect of any other Transactions hereunder and (iii) that payments, deliveries and other transfers made by either of them in respect of any Transaction shall be deemed to have been made in consideration of payments, deliveries and other transfers in respect of any other Transactions hereunder, and the obligations to make any such payments, deliveries and other transfers may be applied against each other and netted.

 

13.Notices and Other Communications

 

Any and all notices, statements, demands or other communications hereunder may be given by a party to the other by mail, facsimile, telegraph, messenger or otherwise to the address specified in Annex II hereto, or so sent to such party at any other place specified in a notice of change of address hereafter received by the other. All notices, demands and requests hereunder may be made orally, to be confirmed promptly in writing, or by other communication as specified in the preceding sentence.

 

14.Entire Agreement; Severability

 

This Agreement shall supersede any existing agreements between the parties containing general terms and conditions for repurchase transactions. Each provision and agreement herein shall be treated as separate and independent from any other provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any such other provision or agreement.

 

15.Non-assignability; Termination

 

(a) The rights and obligations of the parties under this Agreement and under any Transaction shall not be assigned by either party without the prior written consent of the other party, and any such assignment without the prior written consent of the other party shall be null and void. Subject to the foregoing, this Agreement and any Transactions shall be binding upon and shall inure to the benefit of the parties and their respective successors and assigns. This Agreement may be terminated by either party upon giving written notice to the other, except that this Agreement shall, notwithstanding such notice, remain applicable to any Transactions then outstanding.

 

(b) Subparagraph (a) of this Paragraph 15 shall not preclude a party from assigning, charging or otherwise dealing with all or any part of its interest in any sum payable to it under Paragraph 11 hereof.

 

16.Governing Law

 

This Agreement shall be governed by the laws of the State of New York without giving effect to the conflict of law principles thereof.

 

17.No Waivers, Etc.

 

No express or implied waiver of any Event of Default by either party shall constitute a waiver of any other Event of Default and no exercise of any remedy hereunder by any party shall constitute a waiver of its right to exercise any other remedy hereunder. No modification or waiver of any provision of this Agreement and no consent by any party to a departure herefrom shall be effective unless and until such shall be in writing and duly executed by both of the parties hereto. Without limitation on any of the foregoing, the failure to give a notice pursuant to Paragraph 4(a) or 4(b) hereof will not constitute a waiver of any right to do so at a later date.

 

8

 

18.Use of Employee Plan Assets

 

(a) If assets of an employee benefit plan subject to any provision of the Employee Retirement Income Security Act of 1974 (“ERISA”) are intended to be used by either party hereto (the “Plan Party”) in a Transaction, the Plan Party shall so notify the other party prior to the Transaction. The Plan Party shall represent in writing to the other party that the Transaction does not constitute a prohibited transaction under ERISA or is otherwise exempt therefrom, and the other party may proceed in reliance thereon but shall not be required so to proceed.

 

(b) Subject to the last sentence of subparagraph (a) of this Paragraph, any such Transaction shall proceed only if Seller furnishes or has furnished to Buyer its most recent available audited statement of its financial condition and its most recent subsequent unaudited statement of its financial condition.

 

(c) By entering into a Transaction pursuant to this Paragraph, Seller shall be deemed (i) to represent to Buyer that since the date of Seller’s latest such financial statements, there has been no material adverse change in Seller’s financial condition which Seller has not disclosed to Buyer, and (ii) to agree to provide Buyer with future audited and unaudited statements of its financial condition as they are issued, so long as it is a Seller in any outstanding Transaction involving a Plan Party.

 

19.Intent

 

(a) The parties recognize that each Transaction is a “repurchase agreement” as that term is defined in Section 101 of Title 11 of the United States Code, as amended (except insofar as the type of Securities subject to such Transaction or the term of such Transaction would render such definition inapplicable), and a “securities contract” as that term is defined in Section 741 of Title 11 of the United States Code, as amended (except insofar as the type of assets subject to such Transaction would render such definition inapplicable).

 

(b) It is understood that either party’s right to liquidate Securities delivered to it in connection with Transactions hereunder or to exercise any other remedies pursuant to Paragraph 11 hereof is a contractual right to liquidate such Transaction as described in Sections 555 and 559 of Title 11 of the United States Code, as amended.

 

(c) The parties agree and acknowledge that if a party hereto is an “insured depository institution,” as such term is defined in the Federal Deposit Insurance Act, as amended (“FDIA”), then each Transaction hereunder is a “qualified financial contract,” as that term is defined in FDIA and any rules, orders or policy statements thereunder (except insofar as the type of assets subject to such Transaction would render such definition inapplicable).

 

(d) It is understood that this Agreement constitutes a “netting contract” as defined in and subject to Title IV of the Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”) and each payment entitlement and payment obligation under any Transaction hereunder shall constitute a “covered contractual payment entitlement” or “covered contractual payment obligation”, respectively, as defined in and subject to FDICIA (except insofar as one or both of the parties is not a “financial institution” as that term is defined in FDICIA).

 

9

 

20.Disclosure Relating to Certain Federal Protections

 

The parties acknowledge that they have been advised that:

 

(a) in the case of Transactions in which one of the parties is a broker or dealer registered with the Securities and Exchange Commission (“SEC”) under Section 15 of the Securities Exchange Act of 1934 (“1934 Act”), the Securities Investor Protection Corporation has taken the position that the provisions of the Securities Investor Protection Act of 1970 (“SIPA”) do not protect the other party with respect to any Transaction hereunder;

 

(b) in the case of Transactions in which one of the parties is a government securities broker or a government securities dealer registered with the SEC under Section 15C of the 1934 Act, SIPA will not provide protection to the other party with respect to any Transaction hereunder; and

 

(c) in the case of Transactions in which one of the parties is a financial institution, funds held by the financial institution pursuant to a Transaction hereunder are not a deposit and therefore are not insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund, as applicable.

 

 

	
Richard H. Pickup, as Trustee of the RHP Trust, dated   May 31,2011, as amended and restated
    	
 
    	
IMPAC MORTGAGE CORP.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:   
    	
/s/   Richard H. Pickup
    	
 
    	
By:   
    	
/s/   Joseph Tomkinson
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Name:   Richard H. Pickup
    	
 
    	
 
    	
Name:   Joseph Tomkinson
    
	
 
    	
Title:   Trustee
    	
 
    	
 
    	
Title:   CEO
    
	
 
    	
Date:   January 22, 2015
    	
 
    	
 
    	
Date:   1/22/15
    

 

10

 

ANNEX I

 

SUPPLEMENTAL TERMS AND CONDITIONS TO MASTER REPURCHASE AGREEMENT (THE “REPURCHASE AGREEMENT”), DATED AS OF JANUARY 22, 2015 BETWEEN RICHARD H. PICKUP, AS TRUSTEE OF THE RHP TRUST, DATED MAY 31,2011, AS AMENDED AND RESTATED (“BUYER”) AND IMPAC MORTGAGE CORP. (“SELLER”)

 

1.             APPLICABILITY.  These Supplemental Terms and Conditions to Master Repurchase Agreement (the “Supplemental Terms,” and collectively with the Repurchase Agreement, the “Agreement”) modify the terms and conditions of the Repurchase Agreement and the terms under which the parties hereto may, from time to time, enter into Transactions.  The Agreement shall be read, taken and construed as one and the same instrument.  Capitalized terms used in these Supplemental Terms and not otherwise defined herein shall have the meanings set forth in the Repurchase Agreement or if not defined therein, in the Confirmation.  If there is a conflict between the terms of the Repurchase Agreement on the one hand and this Supplemental Terms on the other hand, the terms in this Supplemental Terms shall govern.

 

2.                                      OVERVIEW.

 

(a)                                 The Agreement embodies the agreement of the parties to enter into transactions pursuant to which the Seller may sell, and Buyer will purchase, certain Eligible Securities (for purposes of the Agreement, each Eligible Security shall constitute a “Purchased Security”).  The term “Eligible Securities” shall mean the excess servicing income (the “Excess Servicing Income”) otherwise payable to the Seller with respect to certain pools of mortgage loans securitized in connection with securities guaranteed by the Government National Mortgage Association (“Ginnie Mae”) and related solely to the following transactions:

 

See Exhibit A hereto

 

(b)           The Repurchase Date for all Transactions subject to the Agreement shall be March 23, 2015 (the “Final Repurchase Date”) or such earlier date as shall be agreed to by the Buyer and the Seller or as otherwise provided for in the Agreement; provided, however, Seller shall have the right to repurchase the Purchased Securities without penalty prior to the Final Repurchase Date.  The Agreement shall terminate on the Final Repurchase Date, unless extended in writing by each of the parties hereto.

 

(c)           Pricing Rate: shall mean 15.00% per annum.  The Pricing Rate shall be calculated on a 360-day-per-year basis for the actual number of days during the period commencing on the Purchase Date and ending on (but excluding) the date of determination with respect to such Transaction.

 

(d)           Purchase Price:  For the Purchased Assets, an amount equal to $5,000,000.00.

 

1

 

(e)           Income:  100% of all Income on the Excess Servicing Income shall be distributed to Buyer.  Seller shall remit 100% of all Income it receives with respect to the Excess Servicing Income to Buyer (in accordance with the wiring instructions provided by Buyer) on the same distribution date Seller receives such Income.

 

(f)            Monthly Payment:  100% of all Income on the Excess Servicing Income shall be distributed to Buyer and applied upon receipt to reduce the Repurchase Price.

 

3.             MODIFICATIONS TO DEFINITIONS.  The definitions set forth in Section 2(b)-(d), (g)-(i), (s) and (t) are hereby deleted in their entirety.

 

4.             MARGIN MAINTENANCE (SECTION 4).  Section 4 of the Repurchase Agreement is hereby deleted in their entirety.

 

5.             INCOME PAYMENT (SECTION 5).  The last sentence under Section 5 of the Repurchase Agreement is hereby deleted in its entirety.

 

6.             COSTS AND EXPENSES.  Each of Seller and Buyer shall be responsible for its closing costs and expenses (including that of Buyer’s counsel) incurred by it in connection with the Agreement, except as otherwise agreed.  In addition, Seller shall pay Buyer a structuring fee of $50,000 in connection with the first Transaction on or before the Purchase Date.

 

7.             BUYER AS ATTORNEY-IN-FACT.  Buyer is hereby appointed to act after the occurrence and during the continuation of an Event of Default as the attorney-in-fact of Seller for the purpose of carrying out the provisions of the Agreement and taking any action and executing any documents and instruments that Buyer may deem necessary or advisable to accomplish the purposes hereof, which appointment as attorney-in-fact is irrevocable and coupled with an interest.  Without limiting the generality of the foregoing, Buyer shall have the right and power after the occurrence and during the continuation of any Event of Default to receive, endorse and collect all checks made payable to the order of Seller representing any payment on account of the principal of or interest on any of the Purchased Securities and to give full discharge for the same.  The powers conferred on the Buyer hereunder are solely to protect its interest in the Purchased Securities and shall not impose any duty upon the Buyer to exercise any such powers.

 

8.             VOTING RIGHTS.  Prior to the occurrence of an Event of Default, Seller shall continue to exercise any voting rights in connection with the Purchased Securities in its sole discretion but in the name of the Buyer.  Following an Event of Default, Buyer shall exercise any voting rights in connection with the Purchased Assets.

 

9.             FURTHER ASSURANCES.  Seller agrees to do such further acts and things and to execute and deliver to Buyer such additional assignments, acknowledgments, agreements, powers and instruments as are reasonably required by Buyer to carry into effect the purposes of the Agreement, to protect the interests of Buyer in the Purchased Securities and to better assure and confirm unto Buyer its rights, powers and remedies under the Agreement.

 

2

 

10.          COUNTERPARTS.  The Agreement may be executed in any number of counterparts, each of which counterparts shall be deemed to be an original, but such counterparts shall together constitute one and the same instrument.

 

3

 

SIGNATURE PAGE TO ANNEX I

 

 

	
 
    	
Richard H. Pickup, as   Trustee of the RHP TRUST dated May 31,2011, as amended and restated
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Richard H. Pickup
    
	
 
    	
 
    	
Name: Richard H. Pickup
    
	
 
    	
 
    	
Title:      Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
IMPAC MORTGAGE CORP.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joseph Tomkinson
    
	
 
    	
 
    	
Name: Joseph Tomkinson
    
	
 
    	
 
    	
Title:     CEO
    

 

 

Annex II

 

Names and Addresses for Communications Between Parties

 

Richard H. Pickup, as Trustee of the RHP Trust, dated May 31, 2011, as amended and restated:

 

2532 Dupont Drive

Irvine, Ca. 92612

 

To Impac Mortgage Corp:

 

Impac Mortgage Corp.

19500 Jamboree Rd.

Irvine, CA  92612

Attn: General Counsel

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00245-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00245-of-00352.parquet"}]]