Document:

EX-4.3

 Exhibit 4.3 
  

 
 CHESAPEAKE ENERGY CORPORATION 

as Issuer, 
 THE SUBSIDIARY
GUARANTORS PARTY HERETO 
 as Subsidiary Guarantors, 

and 
 DEUTSCHE BANK TRUST COMPANY
AMERICAS 
 as Trustee 
  

 
 SECOND
SUPPLEMENTAL INDENTURE 
 Dated April 24, 2014 

to 
 Indenture dated as of
April 24, 2014 
  
  

$1,500,000,000 
 4.875% Senior
Notes due 2022 
  
  

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
		
	 ARTICLE 1 THE NOTES
	  	 	2	  
		
	 Section 1.1 Form
	  	 	2	  
		
	 Section 1.2 Title, Issuance
	  	 	2	  
		
	 Section 1.3 Amount, Authentication
	  	 	2	  
		
	 Section 1.4 Registrar and Paying Agent
	  	 	2	  
		
	 Section 1.5 Guarantee of the Notes
	  	 	3	  
		
	 Section 1.6 Defeasance and Discharge
	  	 	3	  
		
	 Section 1.7 Redemption
	  	 	3	  
		
	 ARTICLE 2 MISCELLANEOUS PROVISIONS
	  	 	3	  
		
	 Section 2.1 Counterpart Originals
	  	 	3	  
		
	 Section 2.2 Governing Law
	  	 	3	  
		
	 Section 2.3 Severability
	  	 	4	  
		
	 Section 2.4 Confirmation of Indenture
	  	 	4	  

  
 i 

 THIS SECOND SUPPLEMENTAL INDENTURE dated as of April 24, 2014 (this “Supplemental
Indenture”), is among Chesapeake Energy Corporation, an Oklahoma corporation (the “Company”), the Subsidiary Guarantors party hereto and Deutsche Bank Trust Company Americas, a New York banking corporation, as trustee (the
“Trustee”). Each capitalized term used but not defined herein shall have the meaning assigned to such term in the Base Indenture (as defined below). 

RECITALS: 
 WHEREAS, the Company,
the Subsidiary Guarantors and the Trustee are parties to an Indenture, dated as of April 24, 2014 (the “Base Indenture,” as supplemented by this Supplemental Indenture, the “Indenture”), providing for the
issuance by the Company from time to time of its debentures, notes, bonds and other evidences of indebtedness, issued and to be issued in one or more series unlimited as to principal amount (the “Securities”), and the guarantee by
each Subsidiary Guarantor of each such series of such Securities (the “Guarantee”); 
 WHEREAS, the Company has duly
authorized and desires to cause to be issued pursuant to the Indenture a new series of Securities designated the 4.875% Senior Notes due 2022 (the “Notes”), all of such Notes to be guaranteed by the Subsidiary Guarantors as provided
in Article Ten of the Base Indenture; 
 WHEREAS, the Company desires to cause the issuance of the Notes pursuant to Sections 2.01
and 2.03 of the Base Indenture, which sections permit the execution of supplemental indentures thereto to establish the form and terms of Securities of any series; 

WHEREAS, pursuant to Section 9.01 of the Base Indenture, the Company and the Subsidiary Guarantors have requested that the Trustee join
in the execution of this Supplemental Indenture to establish the form and terms of the Notes; 
 WHEREAS, all things necessary have been
done to make the Notes, when executed by the Company and authenticated and delivered hereunder and under the Base Indenture by or on behalf of the Trustee and duly issued by the Company, and the Guarantee of the Subsidiary Guarantors, when the Notes
are duly issued by the Company, the legal, valid and binding obligations of the Company and the Subsidiary Guarantors, respectively, and to make this Supplemental Indenture a legal, valid and binding agreement of the Company and the Subsidiary
Guarantors enforceable in accordance with its terms. 
 NOW THEREFORE, for and in consideration of the premises, the Company, the Subsidiary
Guarantors and the Trustee hereby agree, for the equal and proportionate benefit of the respective holders from time to time of the Notes, that the following provisions shall supplement the Base Indenture: 

 ARTICLE 1 

THE NOTES 

Section 1.1 Form.  

The Notes and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit A to this Supplemental
Indenture (the “Form of Note”). The terms and provisions contained in the Form of Note shall constitute, and are hereby expressly made, a part of this Supplemental Indenture and to the extent applicable, the Company, the Subsidiary
Guarantors and the Trustee, by their execution and delivery of this Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby. 

Section 1.2 Title, Issuance.  

(a) The Notes shall be entitled the “4.875% Senior Notes due 2022”. The Notes shall be issued initially in the form of one or more
Global Securities in definitive, fully registered form and shall be deposited on behalf of the purchasers of the Notes with the Trustee, at the Corporate Trust Office, as custodian for The Depository Trust Company, which is hereby appointed
Depositary for the Global Securities (the “Depositary”). The Notes shall be registered in the name of the Depositary or a nominee of the Depositary, duly executed by the Company and authenticated by the Trustee as hereinafter
provided. The aggregate principal amount of the Global Securities may from time to time be increased or decreased by adjustments made on the records of the Trustee and the Depositary or its nominee as hereinafter provided. 

(b) Except as provided in Section 2.13 of the Indenture, owners of beneficial interests in Global Securities shall not be entitled to
receive physical delivery of certificated Notes. The Notes shall be issued in denominations of $2,000 and integral multiples of $1,000 in excess thereof. 

(c) The transfer and exchange of Global Securities or beneficial interests therein shall be effected through the Depositary, in accordance with
Section 2.13 of the Base Indenture and the rules and procedures of the Depositary therefor. 
 Section 1.3 Amount,
Authentication. 
 The Trustee shall authenticate and deliver (i) on the date hereof (the “Issue Date”),
$1,500,000,000 in aggregate principal amount of the Notes and (ii) from time to time after the Issue Date, additional Notes (“Additional Notes”) in such principal amounts as may be specified in a Company Order described in this
Section 1.3, in each case upon a Company Order for the authentication and delivery thereof and satisfaction of the other provisions of Section 2.05 of the Base Indenture. Such order shall specify the amount of the Notes to be
authenticated, the date on which the Notes are to be authenticated, and the name or names of the initial Holder or Holders. 

Section 1.4 Registrar and Paying Agent. 

(a) The Company confirms the appointment of the Trustee as Registrar and Paying Agent with respect to the Notes pursuant to Section 2.06
of the Base Indenture. 

  
 2 

 (b) The Company may remove, appoint and change any Paying Agent or Registrar without notice to
the Holders, but with written notice to the Trustee. 
 Section 1.5 Guarantee of the Notes. 

In accordance with Article Ten of the Base Indenture, the Notes will be fully, unconditionally and absolutely guaranteed on a senior
basis, jointly and severally, by the Subsidiary Guarantors. 
 Section 1.6 Defeasance and Discharge. 

The Notes shall be subject to satisfaction and discharge and to both Legal Defeasance and Covenant Defeasance as contemplated by
Articles Eight and Twelve of the Base Indenture. 
 Section 1.7 Redemption.  

(a) The Company shall have no obligation to redeem, purchase or repay the Notes pursuant to any mandatory redemption, sinking fund or analogous
provisions or at the option of a Holder thereof. 
 (b) Except as set forth in the next sentence and in paragraph 4 of the Form of Note, the
Company shall not be entitled to redeem the Notes prior to April 15, 2017. At any time prior to April 15, 2017, the Company will be entitled at its option to redeem the Notes, in whole or in part, at a redemption price equal to 100% of the
principal amount of the Notes to be redeemed plus the Make-Whole Premium (as defined in the Form of Note) as of, and accrued and unpaid interest, if any, to the redemption date in accordance with paragraph 4 of the Form of Note. 

(c) At any time on or after April 15, 2017, the Company may redeem the Notes, in whole or in part, at its option, at the redemption
prices set forth in paragraph 5 of the Form of Note, plus accrued and unpaid interest, if any, to the redemption date in accordance with paragraph 5 of the Form of Note. 

(d) The Trustee shall have no responsibility or obligation whatsoever to calculate the Make-Whole Premium in connection with any redemption
hereunder. Such responsibility shall be solely that of the Company. 
 ARTICLE 2 

MISCELLANEOUS PROVISIONS 

Section 2.1 Counterpart Originals. 

The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together
represent the same instrument. 
 Section 2.2 Governing Law. 

THIS SUPPLEMENTAL INDENTURE AND THE NOTES AND THE GUARANTEES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS TO THE EXTENT THAT THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY, EXCEPT TO THE EXTENT THAT THE LAWS OF THE STATE OF NEW YORK WOULD REQUIRE THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION REGARDING THE VALIDITY OF THE NOTES AND THE GUARANTEES. 

  
 3 

 Section 2.3 Severability. 

In case any provision of this Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 Section 2.4 Confirmation of
Indenture. 
 (a) The Base Indenture, as supplemented by this Supplemental Indenture, is in all respects ratified and confirmed,
and to the extent applicable, the Company, the Subsidiary Guarantors and the Trustee, by their execution and delivery of this Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby. This Supplemental Indenture
shall be deemed to be part of the Base Indenture in the manner and to the extent herein and therein provided. 
 (b) The Trustee accepts the
amendments of the Indenture effected by this Supplemental Indenture, but on the terms and conditions set forth in the Indenture, including the terms and provisions defining and limiting the liabilities and responsibilities of the Trustee. Without
limiting the generality of the foregoing, the Trustee shall not be responsible in any manner whatsoever for or with respect to any of the recitals or statements contained herein, all of which recitals or statements are made solely by the Company and
the Subsidiary Guarantors, or for or with respect to (i) the validity or sufficiency of this Supplemental Indenture or any of the terms or provisions hereof, (ii) the proper authorization hereof by the Company or the Subsidiary Guarantors
by action or otherwise, (iii) the due execution hereof by the Company and the Subsidiary Guarantors or (iv) the consequences of any amendment herein provided for, and the Trustee makes no representation with respect to any such matters.

  
 4 

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

			
	COMPANY:
	
	CHESAPEAKE ENERGY CORPORATION
		
	By:	 	 /s/ Elliot J. Chambers

	Name:	 	Elliot J. Chambers
	Title:	 	Vice President and Treasurer

  

  
 Signature Page to
Second Supplemental Indenture 

  

					
	 SUBSIDIARY GUARANTORS:

		
		 	 ARKANSAS MIDSTREAM GAS SERVICES CORP.

CHESAPEAKE ENERGY LOUISIANA CORPORATION
 CHESAPEAKE
ENERGY MARKETING, INC.
 CHESAPEAKE E&P HOLDING CORPORATION

CHESAPEAKE NG VENTURES CORPORATION
 CHESAPEAKE OPERATING, INC.

CHK ENERGY HOLDINGS, INC.
 SPARKS DRIVE SWD, INC.

WINTER MOON ENERGY CORPORATION
 AMGS, L.L.C.

ATRIUM TOWERS, L.L.C.
 CHESAPEAKE AEZ EXPLORATION, L.L.C.

CHESAPEAKE APPALACHIA, L.L.C.

CHESAPEAKE-CLEMENTS ACQUISITION, L.L.C.

CHESAPEAKE EQUIPMENT FINANCE, L.L.C.
 CHESAPEAKE EXPLORATION,
L.L.C.
 CHESAPEAKE LAND DEVELOPMENT COMPANY, L.L.C.

CHESAPEAKE MIDSTREAM DEVELOPMENT, L.L.C.,
 CHESAPEAKE MIDSTREAM
HOLDINGS, L.L.C.,
 CHESAPEAKE MIDSTREAM MANAGEMENT, L.L.C.,

CHESAPEAKE PLAZA, L.L.C.
 CHESAPEAKE ROYALTY, L.L.C.

CHESAPEAKE VRT, L.L.C.
 CHESAPEAKE WEST TEXAS GATHERING,
L.L.C.
 EMLP, L.L.C.
 CHK-MAC, L.L.C.

CHK UTICA PREFERRED HOLDINGS, L.L.C.
 EMPRESS, L.L.C.

GSF, L.L.C.
 MC LOUISIANA MINERALS, L.L.C.

MC MINERAL COMPANY, L.L.C.
 MIDCON COMPRESSION, L.L.C.

NORTHERN MICHIGAN EXPLORATION COMPANY, L.L.C.
 CHESAPEAKE
LOUISIANA, L.P.

		 		 	By: Chesapeake Operating, Inc., its General Partner
		 	EMPRESS LOUISIANA PROPERTIES, L.P.
		 		 	By: EMLP, L.L.C., its General Partner
			
		 	By:	 	 /s/ Elliot J. Chambers

		 	Name:	 	Elliot J. Chambers
		 	Title:	 	Vice President and Treasurer

  
 Signature Page to
Second Supplemental Indenture 

 
			
	TRUSTEE:
	
	 DEUTSCHE BANK TRUST COMPANY AMERICAS,

         as Trustee

	
	         By:     Deutsche Bank National Trust Company
		
	                By:	 	 /s/ Annie Jaghatspanyan

		 	Name: Annie Jaghatspanyan
		 	Title: Vice President
		
	                By:	 	 /s/ Wanda Camacho

		 	Name: Wanda Camacho
		 	Title: Vice President

  
 Signature Page to
Second Supplemental Indenture 

 Exhibit A 

FORM OF NOTE 
 [FACE OF
NOTE] 
 [UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED
TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH
IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.]1 
  

	1 	To be included in a Global Security 

  
 A-1 

			
	Certificate No.	  	CUSIP NO. 165167 CN5
	$	  	ISIN NO. US165167CN50

 4.875% Senior Notes due 2022 

Chesapeake Energy Corporation, an Oklahoma corporation, promises to pay to
            , or registered assigns, the principal sum of                     Dollars on
April 15, 2022. 
 Interest Payment Dates: April 15 and October 15 (commencing October 15, 20142) 
 Record Dates: April 1 and October 1 

Additional provisions of this Note are set forth on the other side of this Note. 

Dated:                      

 

							
		 		 	CHESAPEAKE ENERGY CORPORATION
				
		 		 	    By	 	  

		 		 		 	Name:
		 		 		 	Title:

  

							
		 		 	
		 		 	    By	 	  

		 		 		 	Name:
		 		 		 	Title:

 TRUSTEE’S CERTIFICATE OF 

AUTHENTICATION 
 This is one of the Securities of
the Series designated therein referred to in the within-mentioned Indenture. 
  

							
		 		 	 DEUTSCHE BANK TRUST COMPANY AMERICAS

As Trustee

				
	Date:                     	 		 	By:	 	  

		 		 		 	Authorized Signatory
		 		 		 	

  

	2 	Or such later date as is appropriate in the case of Additional Notes. 

  
 A-2 

 [REVERSE SIDE OF NOTE] 

4.875% Senior Note due 2022 
  

	1.	Interest 

 Chesapeake Energy Corporation, an Oklahoma corporation (such corporation, and
its successors and assigns under the Indenture hereinafter referred to, being herein called the “Company”), promises to pay interest on the principal amount of this Note at the rate per annum shown above. The Company shall pay interest
semiannually on April 15 and October 15 of each year, commencing October 15, 20143. Interest on the Note shall accrue from the most recent date to which interest has been paid or,
if no interest has been paid, from April 24, 20144. Interest shall be computed on the basis of a 360-day year consisting of twelve 30-day months. 

 

	2.	Method of Payment 

 The Company shall pay interest on the Notes (except defaulted
interest) to the Persons who are registered holders of Notes at the close of business on the April 1 or October 1 next preceding the interest payment date even if Notes are canceled after the record date and on or before the interest
payment date. Holders must surrender Notes to a Paying Agent to collect principal payments. The Company shall pay principal and interest in money of the United States that at the time of payment is legal tender for payment of public and private
debts. Payments in respect of the Notes represented by a Global Security (including principal, premium and interest) shall be made by wire transfer of immediately available funds to the accounts specified by The Depository Trust Company. The Company
shall make all payments in respect of a certificated Note (including principal, premium and interest) by mailing a check to the registered address of each Holder thereof; provided, however, that payments on a certificated Note shall be
made by wire transfer to a U.S. dollar account maintained by the payee with a bank in the United States if such Holder elects payment by wire transfer by giving written notice to the Trustee or the Paying Agent to such effect designating such
account no later than 30 days immediately preceding the relevant due date for payment (or such other date as the Trustee may accept in its discretion). 

If any interest payment date, Maturity Date or redemption date falls on a day that is not a Business Day, the applicable payment to be made on
such payment date will be made on the next Business Day with the same force and effect as if made on the relevant interest payment date, Maturity Date or redemption date. No interest will accrue on such payment for the period from and after the
applicable interest payment date, Maturity Date or redemption date. 
  

	3.	Indenture 

 The Company issued the Notes under an Indenture dated as of April 24,
2014, among the Company, the Subsidiary Guarantors and the Trustee, as supplemented by that Second Supplemental Indenture dated as of April 24, 2014, among the Company, the Subsidiary Guarantors and the Trustee (as so supplemented, the
“Indenture”). The terms of the Notes 
  
  

	3 	Or such later date as is appropriate in the case of Additional Notes. 

	4 	Or such later date as is appropriate in the case of Additional Notes. 

  
 A-3 

 include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture
Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the date of the Indenture (the “Act”). Terms defined in the Indenture and not defined herein have the meanings ascribed thereto in the Indenture. The Notes are
subject to all such terms, and Holders are referred to the Indenture and the Act for a statement of those terms. 
 The Company shall be
entitled to issue Additional Notes pursuant to Section 2.03 of the Indenture. The Notes issued on the Issue Date and any Additional Notes shall be treated as a single series for all purposes under the Indenture. 

 

	4.	Make-Whole Redemption 

 Except as set forth below, the Company shall not be entitled to
redeem the Notes prior to April 15, 2017. 
 At any time prior to April 15, 2017, the Company shall be entitled at its option to
redeem the Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus the Make-Whole Premium as of, and accrued and unpaid interest, if any, to the redemption date (subject to the right
of Holders on the relevant record date to receive interest due on the relevant interest payment date). Any redemption pursuant to this paragraph 4 shall be made, to the extent applicable, pursuant to the provisions of Sections 3.02 through 3.07 of
the Indenture. 
 The Trustee shall have no responsibility or obligation whatsoever to calculate the Make-Whole Premium in connection with
any redemption hereunder. Such responsibility shall be solely that of the Company. 
 For the purposes of this paragraph 4, the following
terms shall have the meaning indicated: 
 “Adjusted Treasury Rate” means, with respect to any redemption date, the yield, under
the heading which represents the average for the immediately preceding week, appearing in the most recently published Federal Reserve Statistical Release H.15 (519) or any successor publication which is published weekly by the Board of
Governors of the Federal Reserve System (or, if such release (or any successor release) is not published, any publicly available source of similar market data) and which establishes yields on actively traded United States Treasury securities
adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after April 15, 2017, yields for the two
published maturities most closely corresponding to the Comparable Treasury Issue shall be determined and the Adjusted Treasury Rate shall be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month),
calculated on the third Business Day immediately preceding the redemption date, plus 50 basis points. 
 “Comparable Treasury
Issue” means the United States Treasury security selected by the Company as having a maturity comparable to the remaining term of the Notes from the redemption date to April 15, 2017 that would be utilized, at the time of selection and in

  
 A-4 

 
accordance with customary financial practice, in pricing new issues of corporate debt securities of a maturity most nearly equal to April 15, 2017. 

“Make-Whole Premium” means with respect to a Note at any redemption date, the excess of (i) the present value at such
redemption date of (A) the redemption price of such Note on April 15, 2017 (such redemption price being described in paragraph 5 below) exclusive of any accrued interest plus (B) all required remaining scheduled interest payments due
on such Note through April 15, 2017 (but excluding accrued and unpaid interest to the redemption date), computed using a discount rate equal to the Adjusted Treasury Rate, over (ii) the principal amount of such Note on such redemption
date. 
  

	5.	Optional Redemption 

 At any time on or after April 15, 2017, the Company may redeem
the Notes, in whole or in part, at its option, at the following redemption prices (expressed as percentages of the principal amount thereof), plus accrued and unpaid interest, if any, to the redemption date (subject to the right of Holders of record
on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the 12-month period (or, in the case of the period commencing April 15, 2020, such 12-month period and thereafter) commencing on
April 15 of the years set forth below: 
  

					
	 Year
	  	Percentage	 
	 2017
	  	 	103.656	% 
	 2018
	  	 	102.438	% 
	 2019
	  	 	101.219	% 
	 2020 and thereafter
	  	 	100.000	% 

 Any redemption pursuant to this paragraph 5 shall be made, to the extent applicable, pursuant to the
provisions of Sections 3.02 through 3.07 of the Indenture. 
  

	6.	Notice of Redemption 

 At least 30 days but not more than 60 days before a redemption
date, the Company shall mail a notice of redemption by first class mail (or otherwise give such notice in accordance with the Base Indenture) to each Holder of Notes to be redeemed at such Holder’s registered address. If less than all of the
Notes are redeemed at any time, the Trustee shall select the Notes to be redeemed on a pro rata basis or by lot, in each case, in accordance with the procedures of the Depositary, or, if the Notes are listed on any securities exchange, by any other
method that complies with the requirements of such exchange; provided, however, that no Notes with a principal amount of $1,000 or less shall be redeemed in part. Unless the Company defaults in payment of the applicable redemption
price, interest on the Notes to be redeemed shall cease to accrue on the applicable redemption date, whether or not such Notes are presented for payment. 
  

	7.	Net Proceeds Offer 

  
 A-5 

 In the event of certain Sale/Leaseback Transactions, the Company may be required to make a Net
Proceeds Offer to purchase all or any portion of each Holder’s Notes, at 100% of the principal amount thereof, plus accrued and unpaid interest to the Net Proceeds Payment Date. 

 

	8.	Restrictive Covenants 

 The Indenture imposes certain limitations on, among other things,
the ability of the Company to merge or consolidate with any other Person or sell and lease back certain of its properties or assets and the ability of the Company or the Subsidiaries to incur encumbrances securing funded debt against certain
property, all subject to certain limitations described in the Indenture. 
  

	9.	Ranking and Guarantees 

 The Notes are general senior unsecured obligations of the
Company. The Company’s obligation to pay principal, premium, if any, and interest with respect to the Notes is unconditionally guaranteed on a senior basis, jointly and severally, by the Subsidiary Guarantors pursuant to Article Ten of the
Indenture. Certain limitations to the obligations of the Subsidiary Guarantors are set forth in further detail in the Indenture. 
  

	10.	Denominations; Transfer; Exchange 

 The Notes are in registered form without coupons in
denominations of $2,000 principal amount and integral multiples of $1,000 in excess thereof. A Holder may transfer or exchange Notes in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate
endorsements or transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Registrar need not register the transfer of or exchange of any Notes selected for redemption (except, in the case of a Note to be
redeemed in part, the portion of the Note not to be redeemed) or any Notes for a period of 15 Business Days before the mailing of a notice of an offer to repurchase or redeem Notes or 15 Business Days before an interest payment date. 

 

	11.	Persons Deemed Owners 

 The registered Holder of this Note may be treated as the owner
of it for all purposes. 
  

	12.	Unclaimed Money 

 If money for the payment of principal or interest remains unclaimed for
two years, the Trustee or Paying Agent shall pay the money back to the Company at its request unless an abandoned property law designates another Person. After any such payment, Holders entitled to the money must look only to the Company and not to
the Trustee for payment. 
  

	13.	Discharge and Defeasance 

 Subject to certain conditions, the Company at any time shall
be entitled to terminate some or all of its obligations under the Notes and the Indenture if the Company deposits with the 

  
 A-6 

 
Trustee money or U.S. Government Securities for the payment of principal and interest on the Notes to redemption or maturity, as the case may be. 

 

	14.	Amendment, Supplement, Waiver 

 The amendment, supplement and waiver provisions are set
forth in the Indenture. Subject to certain exceptions, the Indenture or the Notes may be amended or supplemented with the consent of the Holders of at least a majority of the outstanding principal amount of the Notes, and any past default or
noncompliance with any provision may be waived with the consent of the Holders of a majority in principal amount of the Notes. Without the consent of any Holder, the Company may amend or supplement the Indenture or the Notes to, among other things,
cure any ambiguity, defect or inconsistency or to make any change that does not adversely affect the rights of any Holder in any material respect. 
  

	15.	Successor Obligor 

 When a successor obligor assumes all the obligations of its
predecessor under the Notes and the Indenture, the predecessor obligor shall be released from those obligations. 
  

	16.	Defaults and Remedies 

 The defaults, events of default and remedies provisions are set
forth in the Indenture. An Event of Default generally is: default by the Company or any Subsidiary Guarantor for 30 days in payment of interest on the Notes; default by the Company or any Subsidiary Guarantor in payment of principal of, or premium,
if any, on the Notes; default by the Company or any Subsidiary Guarantor in the deposit of any optional redemption or repurchase payment when due and payable; defaults resulting in acceleration prior to maturity of certain other Indebtedness or
resulting from payment defaults under certain other Indebtedness; failure by the Company or any Subsidiary Guarantor for 60 days after notice to comply with any of its other agreements in the Indenture; a failure of any Guarantee of a
Subsidiary Guarantor to be in full force and effect or denial by any Subsidiary Guarantor of its obligations with respect thereto; and certain events of bankruptcy or insolvency. Subject to certain limitations in the Indenture, if an Event of
Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the then outstanding Notes may declare all the Notes to be due and payable immediately, except that in the case of an Event of Default arising from
certain events of bankruptcy, insolvency or reorganization, all outstanding Notes shall become due and payable immediately without further action or notice. Holders may not enforce the Indenture or the Notes except as provided in the Indenture. The
Trustee may require indemnity satisfactory to it before it enforces the Indenture or the Notes. Subject to certain limitations, Holders of a majority in principal amount of the Notes may direct the Trustee in its exercise of any trust or power. The
Company must furnish an annual compliance certificate to the Trustee. 
  

	17.	Trustee Dealings with Company and Subsidiary Guarantors 

 The Trustee under the
Indenture, in its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with the Company, the Subsidiary Guarantors or their respective Subsidiaries or Affiliates with the same rights it would have if it
were not Trustee. 

  
 A-7 

	18.	No Recourse Against Others 

 A director, officer, employee or stockholder, as such, of
the Company, any Subsidiary Guarantor or the Trustee shall not have any liability for any obligations of the Company, any Subsidiary Guarantor or the Trustee under the Notes or the Indenture or for any claim based on, in respect of or by reason of,
such obligations or their creation. Each Holder by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for the issue of this Note. 

 

	19.	Authentication 

 This Note shall not be valid until the Trustee or an authenticating
agent signs the certificate of authentication on the other side of this Note. 
  

	20.	Abbreviations 

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

 

	21.	CUSIP Numbers 

 Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company shall cause CUSIP numbers to be printed on the Notes as a convenience to Holders of the Notes. No representation is made as to the accuracy of such numbers as printed on the Notes and reliance may be
placed only on the other identification numbers printed hereon. 
  

	22.	Governing Law 

 THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY, EXCEPT TO THE EXTENT THAT THE LAWS OF THE
STATE OF NEW YORK WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION REGARDING THE VALIDITY OF THE NOTES. 

  
 A-8 

 The Company shall furnish to any Holder upon written request and without charge to the Holder a
copy of the Indenture. Requests may be made to: 
 Chesapeake Energy Corporation 

6100 North Western Avenue 
 Oklahoma City, OK 73118 

Attention: Treasurer 

  
 A-9 

 NOTATION OF GUARANTEE 

The Subsidiary Guarantors (which term includes any successor Persons under the Indenture), have fully, unconditionally and absolutely
guaranteed on a senior basis, jointly and severally, to the extent set forth in the Indenture and subject to the provisions in the Indenture, the due and punctual payment of the principal of, and premium, if any, and interest on the Notes and all
other amounts due and payable under the Indenture and the Notes by the Company. 
 The obligations of each Subsidiary Guarantor to the
Holders of Notes and to the Trustee pursuant to its Guarantee and the Indenture are expressly set forth in Article Ten of the Base Indenture and reference is hereby made to the Indenture for the precise terms of the Guarantee. 

(signature page follows) 

  
 A-10 

  

			
	 SUBSIDIARY GUARANTORS:
  

ARKANSAS MIDSTREAM GAS SERVICES CORP.
 CHESAPEAKE ENERGY LOUISIANA
CORPORATION
 CHESAPEAKE ENERGY MARKETING, INC.
 CHESAPEAKE
E&P HOLDING CORPORATION
 CHESAPEAKE NG VENTURES CORPORATION

CHESAPEAKE OPERATING, INC.
 CHK ENERGY HOLDINGS, INC.

SPARKS DRIVE SWD, INC.
 WINTER MOON ENERGY CORPORATION AMGS,
L.L.C.
 ATRIUM TOWERS, L.L.C.
 CHESAPEAKE AEZ EXPLORATION,
L.L.C.
 CHESAPEAKE APPALACHIA, L.L.C.
 CHESAPEAKE-CLEMENTS
ACQUISITION, L.L.C.
 CHESAPEAKE EQUIPMENT FINANCE, L.L.C.

CHESAPEAKE EXPLORATION, L.L.C.
 CHESAPEAKE LAND DEVELOPMENT
COMPANY, L.L.C.
 CHESAPEAKE MIDSTREAM DEVELOPMENT, L.L.C.,

CHESAPEAKE MIDSTREAM HOLDINGS, L.L.C.,
 CHESAPEAKE MIDSTREAM
MANAGEMENT, L.L.C.,
 CHESAPEAKE PLAZA, L.L.C.
 CHESAPEAKE
ROYALTY, L.L.C.
 CHESAPEAKE VRT, L.L.C.
 CHESAPEAKE WEST TEXAS
GATHERING, L.L.C.
 EMLP, L.L.C.
 CHK-MAC, L.L.C.

CHK UTICA PREFERRED HOLDINGS, L.L.C.
 EMPRESS, L.L.C.

GSF, L.L.C.
 MC LOUISIANA MINERALS, L.L.C.

MC MINERAL COMPANY, L.L.C.
 MIDCON COMPRESSION, L.L.C.

NORTHERN MICHIGAN EXPLORATION COMPANY, L.L.C.
 CHESAPEAKE
LOUISIANA, L.P.

	            By: Chesapeake Operating, Inc., its General Partner
	EMPRESS LOUISIANA PROPERTIES, L.P.
	            By: EMLP, L.L.C., its General Partner
	By:	 	          

	Name:
	Title:

  
 A-11 

  
  

ASSIGNMENT FORM 
 To assign this Note, fill in
the form below: 
 I or we assign and transfer this Note to 
  

 
 (Print or type assignee’s name,
address and zip code) 
  
  

(Insert assignee’s social security or tax I.D. No.) 

and irrevocably appoint             agent to transfer this Note on the books of the Company.
The agent may substitute another to act for him. 
  
  

 

									
	 Dated:
	 	  
	 		 	Your Signature:	 	  

  
  

Sign exactly as your name appears on the other side of this Note. 

Signature Guarantee: 
 ____________________________ 

Signature must be guaranteed 
 Signatures must
be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other
“signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 

  
 A-12 

 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY 

The following increases or decreases in this Global Security have been made: 
  

									
	 Date of

Exchange
	 	 Amount of decrease in

Principal amount of
 this Global
Security
	 	 Amount of increase in

Principal amount of
 this Global
Security
	 	 Principal amount of

this Global Security
 following
such
 decrease or increase
	 	 Signature of

authorized signatory
 of
Trustee

  
 A-13 

 OPTION OF HOLDER TO ELECT PURCHASE 

If you want to elect to have this Note purchased by the Company pursuant to Section 4.10 of the Indenture, check the box: 

 
  ̈ 

If you want to elect to have only part of this Note purchased by the Company pursuant to Section 4.10 of the Indenture, state the amount
in principal amount: $                          
  

									
	Dated:	 	  
	 	Your Signature:	 		 	  

		 		 		 		 	 (Sign exactly as your name appears
 on the other
side of this Note.)

  

			
	 Signature Guarantee:
	 	 
	  
	 	
	 (Signature must be guaranteed)
	 	

 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the
Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in
substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended. 

  
 A-14exhibit_10-1.htm

EXHIBIT 10.1

 

 

PURCHASE AGREEMENT

 

This Purchase Agreement ("Agreement") is made as of April 21, 2014 by and between SW China Imports, Inc.., a Nevada corporation ("Buyer"), The Individuals and/or Companies signing as the Sellers on the signature page herein,  ("Sellers").

 

PRELIMINARY STATEMENT

 

Sellers desires to sell, and Buyer desires to purchase, the shares ("Shares") of LOE  & ASSOCIATES LLC. (“The Company”) that Sellers own in The Company”, a Washington corporation, organized under the laws of Washington, on the terms and subject to the conditions set forth in this Agreement.

 

AGREEMENT

 

The parties, intending to be legally bound, agree as follows:

 

ARTICLE 1

 

DEFINITIONS

 

For the purposes of this Agreement, the following terms and variations on them have the meanings specified in this Article 1:

 

"Buyer" is defined in the first paragraph of this Agreement.

 

"Buyer Shares" means newly issued shares of Buyer common stock, par value $.001 per share.

 

"Closing" means the consummation and completion of the purchase and sale of the Shares.

 

"Closing Date" means the date on which the Closing actually takes place.

 

"Company" is defined in the Preliminary Statement.

 

"Company Contract" means any Contract (a) under which the Company has or may acquire rights, (b) under which the Company is or may become subject to Liability or (c) by which the Company or any of its assets is or may become bound.

 

"Consent" means any approval, consent, ratification, waiver or other authorization.

 

"Contemplated Transactions" means all of the transactions to be carried out in accordance with this Agreement, including the purchase and sale of the Shares, the performance by the parties of their other obligations under this Agreement.

 

  

1

  

"Contract" means any contract, agreement, commitment, understanding, lease, license, franchise, warranty, guaranty, mortgage, note, bond or other instrument or consensual obligation (whether written or oral and whether express or implied) that is legally binding.

 

"Contravene" -- an act or omission would "Contravene" something if, as the context requires:

 

(a)           the act or omission would conflict with it, violate it, result in a breach or violation of or failure to comply with it, or constitute a default under it;

 

(b)           the act or omission would give any Governmental Body or other Person the right to challenge, revoke, withdraw, suspend, cancel, terminate or modify it, to exercise any remedy or obtain any relief under it, or to declare a default or accelerate the maturity of any obligation under it; or

 

(c)           the act or omission would result in the creation of an Encumbrance on the stock or assets of the Company.

 

"Encumbrance" means any charge, claim, mortgage, servitude, easement, right of way, community or other marital property interest, covenant, equitable interest, license, lease or other possessory interest, lien, option, pledge, security interest, preference, priority, right of first refusal or similar restriction.

 

"Financial Statements" is defined in Section 3.4.

 

"GAAP" means generally accepted accounting principles for financial reporting in the United States.

 

"Governing Document" means any charter, articles, bylaws, certificate, statement, statutes or similar document adopted, filed or registered in connection with the creation, formation or organization of an entity, and any Contract among all equityholders, partners or members of an entity.

 

"Governmental Authorization" means any Consent, license, permit or registration issued, granted, given or otherwise made available by or under the authority of any Governmental Body or pursuant to any Law.

 

"Governmental Body" means any (a) nation, region, state, county, city, town, village, district or other jurisdiction, (b) federal, state, local, municipal, foreign or other government, (c) governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department or other entity and any court or other tribunal), (d) multinational organization, (e) body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power of any nature, or (f) official of any of the foregoing.

 

"Knowledge" means, with respect to Seller, the actual knowledge after reasonable investigation of Seller or of the Company's directors, officers or senior managerial employees.

 

  

2

  

"Law" means any constitution, law, statute, treaty, rule, regulation, ordinance, code, binding case law, principle of common law or notice of any Governmental Body.

 

"Liabilities" includes liabilities or obligations of any nature, whether known or unknown, whether absolute, accrued, contingent, choate, inchoate or otherwise, whether due or to become due, and whether or not required to be reflected on a financial statement prepared in accordance with GAAP.

 

"Order" means any order, injunction, judgment, decree, ruling, assessment or arbitration award of any Governmental Body or arbitrator and any Contract with any Governmental Body pertaining to compliance with Law.

 

"Ordinary Course of Business" refers to actions taken in the Company's normal operation, consistent with its past practice and having no material adverse effect on the financial or other condition, results of operations, assets, Liabilities, equity, business or prospects of the Company.

 

"Person" refers to an individual or an entity, including a corporation, share company, limited liability company, partnership, trust, association, Governmental Body or any other body with legal personality separate from its equityholders or members.

 

"Proceeding" means any action, arbitration, audit, examination, investigation, hearing, litigation or suit (whether civil, criminal, administrative, judicial or investigative, whether formal or informal, and whether public or private) commenced, brought, conducted or heard by or before, or otherwise involving, any Governmental Body or arbitrator.

 

"Purchase Price" is defined in Section 2.2.

 

"Securities Act" means the Securities Act of 1933.

 

"Securities Exchange Act" means the Securities Exchange Act of 1934.

 

"Seller Release" is defined in Section 2.4(a)(ii).

 

"Seller" is defined in the first paragraph of this Agreement.

 

"Seller's Disclosure Schedule" means the disclosure schedule delivered pursuant to Article 3 by Seller to Buyer concurrently with the execution of the Agreement.

 

"Shares" is defined in the Preliminary Statement.

 

  

3

  

ARTICLE 2

 

SALE AND TRANSFER OF SHARES; CLOSING

 

	
2.1

	
SHARES

 

Upon the terms and subject to the conditions set forth in this Agreement, at the Closing, Sellers will sell and transfer the Shares to Buyer, and Buyer will purchase and acquire the Shares from Sellers.

 

	
2.2

	
PURCHASE PRICE

 

The purchase price for the Shares (the "Purchase Price") will be paid by delivery of Common Stock of Purchaser (Buyer) in an amount to equal to 126,000,000 shares for 100 % of the shares in the Company. After the closing the Townsend shareholders will own 60% of the outstanding stock of the total common stock issued in Buyer.

 

	
2.3

	
CLOSING

 

The Closing will take place at the offices of Seller, at 10:00 a.m. (local time) on the date that is two business days following the satisfaction or waiver of each of the conditions set forth in Articles 5 and 6, and the audit of Townsend (The Company) unless Buyer and Sellers agree otherwise.

 

CLOSING DELIVERIES

 

At the Closing:

 

(a)           Seller will deliver to Buyer:

 

(i)           certificates representing the Shares, duly endorsed in blank (or accompanied by duly executed stock powers in blank);

 

(ii)           a release in the form of Exhibit 2.4(a)(ii) executed by Sellers (the "Seller Release");

 

(iii)           a certificate executed by Seller as to the accuracy of Seller's representations and warranties as of the date of this Agreement and as of the Closing in accordance with Section 6.1 and as to their compliance with and performance of its covenants and obligations to be performed or complied on or before the Closing Date in accordance with Section 6.2.

 

(b)           Buyer will deliver:

 

(i)           Common Stock certificates in the amount agreed to by Buyer and Sellers of the Buyers stock.

 

(ii)           a certificate executed by the President of Buyer as to the accuracy of Buyer's representations and warranties as of the date of this Agreement and as of the Closing in accordance with Section 7.1 and as to its compliance with and performance of its covenants and obligations to be performed or complied with on or before the Closing Date in accordance with Section 7.2.

 

  

4

  

ARTICLE 3

 

REPRESENTATIONS AND WARRANTIES OF SELLER

 

Seller represents and warrants to Buyer that:

 

	
3.1

	
ORGANIZATION AND GOOD STANDING

 

The Company is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, with full corporate power and authority to conduct its business as presently conducted, to own or use the properties and assets that it purports to own or use, and to perform all its obligations under all its Company Contracts.

 

	
3.2

	
ENFORCEABILITY; NO CONFLICT

 

(a)           Sellers and the Company have the absolute and unrestricted right, power, authority and capacity to execute and deliver this Agreement and to perform their obligations under this Agreement.  Assuming due authorization, execution and delivery of this Agreement by Buyer, this Agreement constitutes the legal, valid and binding obligation of Seller and the Company, enforceable against Seller and the Company in accordance with its terms.

 

(b)           Sellers and the Company are not and will not be required to give any notice to any Person or obtain any Consent or Governmental Authorization in connection with the execution and delivery of this Agreement or the consummation or performance of any of the Contemplated Transactions.

 

(c)           Neither the execution and delivery of this Agreement nor the consummation or performance of any of the Contemplated Transactions will directly or indirectly (with or without notice or lapse of time) (i) Contravene any provision of the Governing Documents of the Company, (ii) Contravene any Company Contract, Governmental Authorization, Law or Order to which Company or Seller, or any of the assets owned or used by the Company, may be subject, or (iii) result in the imposition or creation of any Encumbrance upon or with respect to any of the assets owned or used by the Company.

 

	
3.3

	
CAPITALIZATION AND OWNERSHIP

 

The authorized equity securities of the Company consist of ___________ shares of common stock, par value $____.001____ per share, of which  _________ shares are issued and outstanding.  The Shares represent all of the issued and outstanding shares in the Company.  Seller is and will be on the Closing Date the record holders and beneficial owners of the Shares, free and clear of all Encumbrances.  All of the outstanding equity securities of the Company have been duly authorized and validly issued and are fully paid and nonassessable.  There are no Contracts relating to the issuance, sale or transfer of any equity securities or other securities of the Company.

 

  

5

  

	
3.4 

	
FINANCIAL STATEMENTS

 

Seller will furnished to Buyer (at Closing) financial statements as of December 31, 2013 (collectively, the "Financial Statements"), which is in the form of a listing of assets and liabilities.  The Financial Statements were prepared in accordance with the books and records of the Company.  The Financial Statements and notes thereto are complete and fairly present the assets, liabilities and financial condition of the Company as of the date thereof. There will be no liabilities owed to Seller or Seller’s family.

 

	
3.5

	
NO UNDISCLOSED LIABILITIES

 

The Company has no Liabilities except for Liabilities reflected or reserved against in the Financial Statements, and current Liabilities incurred in the Ordinary Course of Business since the respective dates thereof.

 

	
3.6

	
CONTRACTS; NO DEFAULTS

 

(a)           Section 3.6 of Seller's Disclosure Schedule contains an accurate and complete list of:

 

(i)           each Company Contract that involves performance of services or delivery of goods or materials by the Company of an amount or value in excess of $10,000;

 

(ii)           each Company Contract that involves performance of services for or delivery of goods or materials to the Company of an amount or value in excess of $10,000; and

 

(iii)           each Company Contract that was not entered into in the Ordinary Course of Business and that involves the expenditure or receipt by the Company of an amount or value in excess of $10,000.

 

	
3.7

	
LEGAL PROCEEDINGS; ORDERS

 

(a)           There exists no pending Proceedings (i) by or against the Company or that otherwise relate to or may affect the business of, or any of the assets owned or used by, the Company or (ii) that challenge, or that may have the effect of preventing, delaying, making illegal or otherwise interfering with, any of the Contemplated Transactions.  To Seller's Knowledge, no other such Proceeding has been threatened, and no event has occurred or circumstance exists that may give rise to or serve as a basis for the commencement of any such Proceeding.

 

(b)           There exists no pending Order to which the Company, or any of the assets owned or used by the Company, is or has been subject.

 

  

6

  

	
3.8 

	
SECURITIES LAW MATTERS

 

         NONE

 

	
3.9

	
BROKERS OR FINDERS

 

Seller has not incurred any Liability for brokerage or finders' fees or agents' commissions or other similar payment in connection with the Contemplated Transactions.

 

ARTICLE 4

 

REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer represents and warrants to Seller that:

 

	
4.1

	
ORGANIZATION

 

Buyer is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of organization.

 

	
4.2

	
ENFORCEABILITY; NO CONFLICT

 

(a)           Buyer has the absolute and unrestricted right, power and authority to execute and deliver this Agreement and to perform its obligations under this Agreement, which actions have been duly authorized and approved by all necessary corporate action of Buyer.  Assuming the execution and delivery of this Agreement by Seller, this Agreement constitutes the legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms.

 

(b)           Buyer is not and will not be required to obtain any Consent or Governmental Authorization in connection with the execution and delivery of this Agreement or the consummation or performance of any of the Contemplated Transactions.

 

(c)           Neither the execution and delivery of this Agreement by Buyer nor the consummation or performance of any of the Contemplated Transactions by Buyer will give any Person the right to prevent, delay or otherwise interfere with any of the Contemplated Transactions pursuant to (i) any provision of Buyer's Governing Documents, (ii) any resolution adopted by the board of directors or the stockholders of Buyer, (iii) any Law, Order or Governmental Authorization to which Buyer may be subject or (iv) any Contract to which Buyer is a party or by which Buyer may be bound.

 

	
4.3

	
BROKERSOR FINDERS

 

Buyer has not incurred any Liability for brokerage or finders' fees or agents' commissions or other similar payment in connection with the Contemplated Transactions.

 

  

7

  

ARTICLE 5

 

COVENANTS OF THE PARTIES BEFORE CLOSING

 

	
5.1

	
ACCESS AND INVESTIGATION

 

Between the date of this Agreement and the Closing Date and upon reasonable advance notice from Buyer, Seller will, and will cause the Company to, (a) afford Buyer full and free access to Company’s personnel, properties, Contracts, books and records, and other documents and data, (b) furnish such Persons with copies of all such Contracts, books and records, and other documents and data as Buyer may reasonably request, and (c) furnish such Persons with such additional financial, operating and other data and information as Buyer may reasonably request.

 

	
5.2

	
OPERATION OF THE BUSINESS OF THE COMPANY

 

Between the date of this Agreement and the Closing Date, Seller will, and will cause the Company to, (a) conduct its business only in the Ordinary Course of Business, (b) use their Best Efforts to preserve intact the current business organization of the Company, keep available the services of the current officers, employees and agents of the Company, and maintain relations and goodwill with suppliers, customers, landlords, creditors, employees, agents and others having business relationships with the Company, (c) confer with Buyer concerning operational matters of a material nature and (d) otherwise report periodically to Buyer concerning the status of the business, operations and finances of the Company.

 

	
5.3

	
REQUIRED APPROVALS

 

As promptly as practicable after the date of this Agreement, Buyer and Seller will, and Seller will cause the Company to, make all filings that they are required by Law to make to consummate the Contemplated Transactions.  Between the date of this Agreement and the Closing Date, Buyer and Seller will, and Seller will cause the Company to, (a) cooperate with the other Party with respect to all filings that such Party elects to make or that such Party is required by Law to make in connection with the Contemplated Transactions, and (b) cooperate with Buyer in obtaining any Governmental Authorizations.

 

	
5.4

	
SHAREHOLDER APPROVAL

 

Buyer does not require shareholder approval

 

 

ARTICLE 6

 

CONDITIONS PRECEDENT TO BUYER'S OBLIGATION TO CLOSE

 

Buyer's obligation to purchase the Shares and to take the other actions required to be taken by Buyer at the Closing is subject to the satisfaction, on or before the Closing Date, of each of the following conditions (any of which may be waived by Buyer, in whole or in part):

 

  

8

  

	
6.1 

	
ACCURACY OF REPRESENTATIONS

 

All of Seller's representations and warranties in this Agreement (considered both collectively and individually) must have been accurate in all material respects as of the date of this Agreement, and must be accurate in all material respects as of the Closing Date as if then made.

 

	
6.2

	
SELLERS’ AND COMPANY’S PERFORMANCE

 

All of the covenants and obligations that Seller and Company is required to perform or to comply with under this Agreement on or before the Closing Date (considered both collectively and individually) must have been duly performed and complied with in all material respects.

 

	
6.3

	
STOCKHOLDER APPROVAL

 

The Buyer’s stockholders if required by the Bylaws of Buyer shall have approved the Contemplated Transactions.

ARTICLE 7

 

CONDITIONS PRECEDENT TO SELLER'S OBLIGATION TO CLOSE

 

Seller's obligation to sell the Shares and to take the other actions required to be taken by Seller at the Closing is subject to the satisfaction, on or before the Closing Date, of each of the following conditions (any of which may be waived by Seller, in whole or in part):

 

	
7.1

	
ACCURACY OF REPRESENTATIONS

 

All of Buyer's representations and warranties in this Agreement (considered both collectively and individually) must have been accurate in all material respects as of the date of this Agreement and must be accurate in all material respects as of the Closing Date as if then made.

 

	
7.2

	
BUYER’S PERFORMANCE

 

All of the covenants and obligations that Buyer is required to perform or to comply with under this Agreement on or before the Closing Date (considered both collectively and individually) must have been performed and complied with in all material respects.

 

ARTICLE 8

 

TERMINATION

 

	
8.1

	
TERMINATION EVENTS

 

Subject to Section 8.2, this Agreement may, by notice given before or at the Closing, be terminated:

 

  

9

  

(a)           by mutual consent of Buyer and Seller;

 

(b)           by Buyer if the satisfaction of any condition in Article 6 is or becomes impossible (other than through the failure of Buyer to comply with its obligations under this Agreement) and Buyer has not waived such condition;

 

(c)           by Seller if the satisfaction of any condition in Article 7 is or becomes impossible (other than through the failure of Seller to comply with its obligations under this Agreement) and Seller has not waived such condition; and

 

(d)           by either Buyer or Seller if the Closing has not occurred (other than through the failure of any party seeking to terminate this Agreement to comply fully with its obligations under this Agreement) on or before August 31, 2014, or such later date as Buyer and Seller may agree upon.

 

	
8.2

	
EFFECT OF TERMINATION

 

Each party's right of termination under Section 8.1 is in addition to any other rights it may have under this Agreement or otherwise, and the exercise of such right of termination will not be an election of remedies.  If this Agreement is terminated pursuant to Section 8.1, all obligations of the parties under this Agreement will terminate; provided, however, that if this Agreement is terminated by a party because of the breach of the Agreement by another party or because one or more of the conditions to the terminating party's obligations under this Agreement is not satisfied as a result of any other party's failure to comply with its obligations under this Agreement, the terminating party's right to pursue all legal remedies will survive such termination unimpaired.

 

ARTICLE 9

 

INDEMNIFICATION; REMEDIES

 

	
9.1

	
SURVIVAL

 

All representations, warranties, covenants and obligations in this Agreement, and any other certificate or document delivered pursuant to this Agreement will survive the Closing and the consummation of the Contemplated Transactions.

 

ARTICLE 10

 

GENERAL PROVISIONS

 

	
10.1

	
EXPENSES

 

Except as otherwise expressly provided in this Agreement, each party to this Agreement will bear its respective expenses incurred in connection with the preparation, execution and performance of this Agreement and the Contemplated Transactions, including all fees and expenses of its Representatives.

 

 

 

  

10

  

	
10.2 

	
FURTHER ACTIONS

 

Upon the request of any party to this Agreement, the other parties will (a) furnish to the requesting party any additional information, (b) execute and deliver, at their own expense, any other documents and (c) take any other actions as the requesting party may reasonably require to more effectively carry out the intent of this Agreement and the Contemplated Transactions.

 

	
10.3

	
ENTIRE AGREEMENT AND MODIFICATION

 

This Agreement supersedes all prior agreements among the parties with respect to its subject matter a complete and exclusive statement of the terms of the agreement between the parties with respect to its subject matter.  This Agreement may not be amended, supplemented or otherwise modified except in a written document executed by the party against whose interest the modification will operate.

 

	
10.4

	
SEVERABILITY

 

If a court of competent jurisdiction holds any provision of this Agreement invalid or unenforceable, the other provisions of this Agreement will remain in full force and effect.  Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

 

	
10.5

	
GOVERNINGLAW

 

This Agreement will be governed by and construed under the laws of California without regard to conflicts of laws principles that would require the application of any other law.

 

	
10.6

	
COUNTERPARTS

 

This Agreement may be executed in two or more counterparts.

 

  

11

  

The parties have executed and delivered this Agreement as of the date indicated in the first sentence of this Agreement.

 

  

	 	SW China Imports, Inc.	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 
	 By:	
/s/ Graciela Moreno 

	 	
By: 

	/s/ James Loe	 
	 	  President	 	 	James Loe	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 LOE ASSOCIATES LLC.	 
	 	 	 	 	 	 
	 	 	 	 By:	 /s/ James Loe	 
	 	 	 	 	 President	 

 

 

 12

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