Document:

EX-10.5

 Exhibit 10.5 

FORM OF 
 TAX SHARING
AGREEMENT 
 between 

CHESAPEAKE ENERGY CORPORATION 

and 
 CHESAPEAKE
OILFIELD OPERATING, L.L.C. 
 dated as of 

June [    ], 2014 

 TABLE OF CONTENTS 

 

							
	 ARTICLE I DEFINITIONS AND EXAMPLES
	  	 	1	  
			
	 Section 1.1
	 	 Definitions
	  	 	1	  
	 Section 1.2
	 	 Examples
	  	 	6	  
		
	 ARTICLE II ALLOCATION OF TAXES AND TAX ITEMS
	  	 	6	  
			
	 Section 2.1
	 	 General Rules
	  	 	6	  
	 (a)
	 	 Chesapeake Taxes
	  	 	6	  
	 (b)
	 	 SSE Taxes
	  	 	6	  
	 Section 2.2
	 	 Special Rules
	  	 	7	  
	 (a)
	 	 Pro Forma Stand-Alone Basis
	  	 	7	  
	 (b)
	 	 Rules for Determining from which Business a Tax Item Arises
	  	 	8	  
	 (c)
	 	 Preparation of Pro Forma Calculations and Allocations
	  	 	8	  
	 (d)
	 	 Differences Between Taxes Shown on Joint Return and Taxes Computed on a Pro Forma Stand-Alone Basis
	  	 	8	  
		
	 ARTICLE III PREPARATION AND FILING OF TAX RETURNS
	  	 	8	  
			
	 Section 3.1
	 	 Joint Returns
	  	 	8	  
	 Section 3.2
	 	 Separate Returns
	  	 	8	  
	 Section 3.3
	 	 Rules Relating to the Preparation of Tax Returns
	  	 	8	  
	 (a)
	 	 General Rule
	  	 	8	  
	 (b)
	 	 Election to File Joint Returns
	  	 	9	  
	 (c)
	 	 SSE Returns
	  	 	9	  
	 (d)
	 	 Chesapeake Returns
	  	 	9	  
	 (e)
	 	 Returns Affecting Liability of Other Party
	  	 	9	  
	 (f)
	 	 Reimbursement for Costs Incurred by Preparer
	  	 	9	  
	 (g)
	 	 Allocation of Tax Items Between Joint Return and Related Separate Return
	  	 	10	  
	 (h)
	 	 Standard of Performance
	  	 	10	  
		
	 ARTICLE IV TAX PAYMENTS AND INDEMNIFICATION PAYMENTS
	  	 	10	  
			
	 Section 4.1
	 	 Payment of Taxes to Tax Authorities
	  	 	10	  
	 Section 4.2
	 	 Indemnification Payments
	  	 	10	  
	 (a)
	 	 Tax Payments Made by the SSE Group
	  	 	10	  
	 (b)
	 	 Tax Payments Made by the Chesapeake Group
	  	 	10	  
	 (c)
	 	 Credit for Prior Deemed Tax Payments
	  	 	10	  
	 Section 4.3
	 	 Initial Determinations and Subsequent Adjustments
	  	 	10	  
	 (a)
	 	 Initial Determinations of Payments
	  	 	10	  
	 (b)
	 	 Redeterminations of Payments and Additional Payments
	  	 	11	  
	 Section 4.4
	 	 Payments by or to Other Members of the Groups
	  	 	11	  
	 Section 4.5
	 	 Late Payments
	  	 	11	  
	 Section 4.6
	 	 Tax Consequences of Payments
	  	 	11	  
	 Section 4.7
	 	 Payment Notices
	  	 	12	  

  
 i 

							
		
	 ARTICLE V TAX CONTESTS
	  	 	12	  
			
	 Section 5.1
	 	 Notices
	  	 	12	  
	 Section 5.2
	 	 Control of Tax Contests
	  	 	13	  
	 (a)
	 	 General Rule
	  	 	13	  
	 (b)
	 	 Tax Contests Involving Certain Taxes Reported on a Joint Return
	  	 	13	  
	 (c)
	 	 Non-Controlling Party Participation Rights
	  	 	13	  
		
	 ARTICLE VI ASSISTANCE AND COOPERATION
	  	 	14	  
			
	 Section 6.1
	 	 Provision of Information
	  	 	14	  
	 (a)
	 	 Information with Respect to Joint Returns
	  	 	14	  
	 (b)
	 	 Information with Respect Tax Payments
	  	 	14	  
	 (c)
	 	 Information with Respect to Separate Returns
	  	 	15	  
	 (d)
	 	 Information with Respect to Pro Forma Stand-Alone Basis Computations and Allocations
	  	 	15	  
	 (e)
	 	 Information with Respect to Tax Contests
	  	 	15	  
	 Section 6.2
	 	 Reliance on Exchanged Information
	  	 	15	  
	 Section 6.3
	 	 Provision of Assistance and Cooperation
	  	 	16	  
	 (a)
	 	 Assistance with Respect to Joint Returns
	  	 	16	  
	 (b)
	 	 Assistance with Respect to Tax Contests
	  	 	16	  
	 (c)
	 	 Cooperation
	  	 	16	  
	 Section 6.4
	 	 Retention of Tax Records
	  	 	16	  
	 Section 6.5
	 	 Supplemental Rulings and Supplemental Tax Opinions
	  	 	16	  
	 Section 6.6
	 	 Withholding and Reporting
	  	 	17	  
		
	 ARTICLE VII RESTRICTIONS ON CERTAIN ACTIONS
	  	 	17	  
			
	 Section 7.1
	 	 General Restrictions
	  	 	17	  
	 Section 7.2
	 	 Certain SSE Actions Beginning on the Spin-off Date
	  	 	17	  
		
	 ARTICLE VIII GENERAL PROVISIONS
	  	 	18	  
			
	 Section 8.1
	 	 Authority
	  	 	18	  
	 Section 8.2
	 	 Termination
	  	 	18	  
	 Section 8.3
	 	 Entire Agreement
	  	 	19	  
	 Section 8.4
	 	 Binding Effect; No Third-Party Beneficiaries; Assignment
	  	 	19	  
	 Section 8.5
	 	 Amendment
	  	 	19	  
	 Section 8.6
	 	 Failure or Indulgence Not Waiver; Remedies Cumulative
	  	 	19	  
	 Section 8.7
	 	 Notices
	  	 	19	  
	 Section 8.8
	 	 Counterparts
	  	 	19	  
	 Section 8.9
	 	 Severability
	  	 	19	  
	 Section 8.10
	 	 Governing Law
	  	 	20	  
	 Section 8.11
	 	 Specific Performance
	  	 	20	  
	 Section 8.12
	 	 Construction
	  	 	20	  
	 Section 8.13
	 	 Performance
	  	 	21	  
	 Section 8.14
	 	 Change in Law
	  	 	21	  
	 Section 8.15
	 	 Expenses
	  	 	21	  
	 Section 8.16
	 	 Disputes
	  	 	21	  
	 Section 8.17
	 	 Confidentiality
	  	 	21	  

  
 ii 

 TAX SHARING AGREEMENT 

THIS TAX SHARING AGREEMENT (this “Agreement”) is entered into as of
[            ], 2014, between Chesapeake Energy Corporation, an Oklahoma corporation (“Chesapeake”), and Chesapeake Oilfield Operating, L.L.C., an Oklahoma limited
liability company. Unless otherwise indicated, all “Article” and “Section” references in this Agreement are to articles and sections of this Agreement. 

RECITALS 
 WHEREAS, SSE
(as defined below) is an indirect wholly owned subsidiary of Chesapeake that owns and operates the SSE Business (as defined below); 

WHEREAS, the Board of Directors of Chesapeake has determined that it would be appropriate and desirable for Chesapeake to separate (the
“Separation”) the SSE Business from the Chesapeake Business (as defined below); 
 WHEREAS, Chesapeake, in
connection with the Separation, intends to distribute to its shareholders all of the shares of SSE stock in a transaction (the “Spin-off”) intended to qualify as a transaction described under
Sections 368(a)(1)(D) and 355 of the Internal Revenue Code of 1986, as amended (the “Code”); 
 WHEREAS, the Parties
set forth in a Master Separation Agreement the principal arrangements between them regarding the Separation and the Spin-off; and 

WHEREAS, the Parties desire to provide for and agree upon the allocation between the Parties of Taxes and Tax Items arising prior to, as a
result of, and subsequent to the Spin-off, and to provide for and agree upon other matters relating to Taxes. 

NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements set forth below, the Parties agree as follows: 

ARTICLE I 
 DEFINITIONS
AND EXAMPLES 
 Section 1.1 Definitions. For purposes of this Agreement, the following terms have the following meanings:

 “Agreement” has the meaning set forth in the preamble hereto. 

“Chesapeake” has the meaning set forth in the recitals hereto. 

“Chesapeake Business” has the meaning set forth in Section 1.1 of the Master Separation Agreement. 

  
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 “Chesapeake Group” means Chesapeake and each Subsidiary of Chesapeake (but only
while such Subsidiary is a Subsidiary of Chesapeake) other than a Person that is a member of the SSE Group. 
 “Chesapeake
Taxes” has the meaning set forth in Section 2.1(a). 
 “Code” has the meaning set forth in the recitals hereto.

 “Controlling Party” means the Party that has primary responsibility, control and discretion in handling, settling, or
conducting a Tax Contest pursuant to Section 5.2. 
 “Effective Time” means the time at which the Spin-off is effected on the Spin-off Date. 

“Group” means the Chesapeake Group or the SSE Group, as the context requires. 

“IRS” means the Internal Revenue Service. 

“Joint Return” means any Tax Return that Chesapeake determines in its reasonable discretion includes both a Tax Item
attributable to the Chesapeake Business and a Tax Item attributable to the SSE Business. 
 “Master Separation Agreement”
means the Master Separation Agreement dated the date hereof between Chesapeake and Chesapeake Oilfield Operating, L.L.C. 
 “Non-Controlling Party” means the Party that does not have primary responsibility, control, and discretion in handling, settling, or conducting a Tax Contest pursuant to Section 5.2. 

“Non-Controlling Party Item” has the meaning set forth in Section 5.2(c). 

“Non-Preparer” means the Party that is not responsible for the preparation or filing
of a Joint Return or a Separate Return, as applicable, pursuant to Section 3.1 and Section 3.2. 
 “Party” or
“Parties” means Chesapeake, SSE, or both, as the context requires. 
 “Payment Date” means (i) with
respect to any U.S. federal income Tax Return, the due date for any required installment of estimated taxes determined under Code Section 6655, the due date (determined without regard to extensions) for filing the return determined under Code
Section 6072, and the date the return is filed, and (ii) with respect to any other Tax Return, the corresponding dates determined under the applicable Tax Law. 

  
 2 

 “Person” means an individual, a partnership, a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint venture, a union, an unincorporated organization, or a governmental entity or any department, agency, or political subdivision thereof. 

“Preparer” means the Party that is responsible for the preparation and filing of a Joint Return or a Separate Return,
as applicable, pursuant to Section 3.1 and Section 3.2. 
 “Requesting Party” has the meaning set forth in
Section 6.5. 
 “Ruling” means
PLR-137386-13 issued to Chesapeake on March 10, 2014.  

“Ruling Request” means Chesapeake’s request for a ruling filed with the IRS, dated August 23, 2013, and as
supplemented on February 28, 2014, and March 6, 2014 (in each case, including all appendices, schedules, attachments, and exhibits thereto), and any other correspondence (including by email) sent to the IRS in connection with obtaining the
Ruling. 
 “Separate Return” means any Tax Return that is not a Joint Return. 

“Separation” has the meaning set forth in the recitals hereto. 

“Separation Transactions” means the Spin-off and related transactions
described in the Information Statement. 
 “Spin-off” has the
meaning set forth in the recitals hereto. 
 “Spin-off Date” means
the date of the Spin-off. 
 “SSE” means (i) with respect to any
Tax Year, or portion thereof, ending before the date of the conversion of Chesapeake Oilfield Operating, L.L.C. into Seventy Seven Energy Inc., Chesapeake Oilfield Operating, L.L.C., and (ii) with respect to any Tax Year, or portion thereof,
beginning on or after the date of the conversion of Chesapeake Oilfield Operating, L.L.C. into Seventy Seven Energy Inc., Seventy Seven Energy Inc. 

“SSE Business” has the meaning set forth in Section 1.1 of the Master Separation Agreement. 

“SSE Group” means (i) with respect to any Tax Year, or portion thereof, ending before the Spin-off Date, SSE and
each other Subsidiary of Chesapeake that is a Subsidiary of SSE on the Spin-off Date and (ii) with respect to any Tax Year, or portion thereof, beginning on or after the Spin-off Date, SSE and each
Subsidiary of SSE (but only while such Subsidiary is a Subsidiary of SSE). 
 “SSE Taxes” has the meaning set
forth in Section 2.1(b). 

  
 3 

 “Subsidiary” means, with respect to any specified Person, any
corporation, partnership, limited liability company, joint venture or other organization, whether incorporated or unincorporated, of which at least a majority of the securities or interests having by the terms thereof ordinary voting power to elect
at least a majority of the board of directors or others performing similar functions with respect to such corporation or other organization is directly or indirectly owned or controlled by such specified Person or by any one or more of its
Subsidiaries, or by such specified Person and one or more of its Subsidiaries. 
 “Supplemental IRS
Submission” means any request for a Supplemental Ruling, each supplemental submission, and any other correspondence or supplemental materials submitted to the IRS in connection with obtaining any Supplemental Ruling. 

“Supplemental Ruling” means any private letter ruling obtained by Chesapeake or SSE from the IRS which supplements or
otherwise modifies the Ruling. 
 “Supplemental Tax Opinion” means, with respect to a specified action, an
opinion (other than the Tax Opinion) from Tax Counsel to the effect that (subject to any customary assumptions, qualifications, and limitations set forth therein) (i) such action will not preclude the
Spin-off from qualifying for U.S. federal income tax purposes as a Tax-free transaction described under Sections 368(a)(1)(D) and 355 of the Code to Chesapeake, its
shareholders, and SSE (except to the extent such shareholders receive cash in lieu of fractional shares or gain is required to be recognized by Chesapeake under Section 357(c) of the Code) and (ii) such action will not increase the amount
of Tax imposed on any other part of the Separation Transactions. 
 “Tax” or “Taxes” means
all forms of taxation imposed by any governmental entity or political subdivision, agency, commission or authority thereof, whenever created or imposed, and whether of the United States or elsewhere, and whether imposed by a local, municipal, state,
national, federal, or other body, and without limiting the foregoing, shall include any income, gross income, gross receipts, profits, capital stock, franchise, withholding, payroll, social security, workers compensation, unemployment, disability,
property, ad valorem, stamp, excise, severance, occupation, service, sales, use, license, lease, transfer, recording, import, export, value added, alternative minimum, estimated, or other similar tax (including any fee, assessment, or other charge
in the nature of or in lieu of any tax), together with any interest, penalties, additions to tax, or additional amounts in respect of the foregoing. 

“Tax Authority” means, with respect to any Tax, the governmental entity or political subdivision, agency, commission,
or authority thereof that imposes such Tax, or that is charged with the assessment, determination, or collection of such Tax for such entity or subdivision. 

“Tax Benefit” means any credit, deduction, or other attribute that may have the effect of decreasing any Tax. 

  
 4 

 “Tax Contest” means an audit, review, examination, or any other
administrative or judicial proceeding with the purpose or effect of examining, determining, or redetermining Taxes of any member of either Group (including any administrative or judicial review of any claim for a refund of any Tax). 

“Tax Counsel” means (i) with respect to the Tax Opinion, Baker Botts L.L.P. or (ii) with respect to a
Supplemental Tax Opinion, a nationally recognized law firm or accounting firm designated by the Party to whom such opinion is delivered. 

“Tax Detriment” means any income, gain, or other attribute that may have the effect of increasing any Tax. 

“Tax Item” means any Tax Benefit or Tax Detriment. 

“Tax Law” means the law of any governmental entity or political subdivision thereof, and any controlling judicial or
administrative interpretations of such law, relating to any Tax. 
 “Tax Materials” means (i) the
Ruling, (ii) the Ruling Request, (iii) any Supplemental IRS Submission, (iv) the representation letters delivered to Tax Counsel in connection with the delivery of the Tax Opinion or the Supplemental Tax Opinion, and (v) any
other materials delivered or deliverable by Chesapeake, SSE, or others in connection with the rendering by Tax Counsel of the Tax Opinion or the Supplemental Tax Opinion or the issuance by the IRS of the Ruling or any Supplemental Ruling.

 “Tax Opinion” means the opinion to be delivered by Tax Counsel to Chesapeake in connection with the
Separation Transactions substantially to the effect that (subject to the customary assumptions, qualifications, and limitations set forth therein) for U.S. federal income tax purposes the Spin-off will qualify
as a Tax-free transaction described under Sections 368(a)(1)(D) and 355 of the Code to Chesapeake, its shareholders, and SSE (except to the extent such shareholders receive cash in lieu of fractional shares or
gain is required to be recognized by Chesapeake under Section 357(c) of the Code). 
 “Tax Records”
means Tax Returns, Tax Return work papers, documentation relating to any Tax Contests, and any books of account or records required to be maintained under applicable Tax Laws (including but not limited to Section 6001 of the Code) or under any
record retention agreement with any Tax Authority. 
 “Tax Return” means any report of Taxes due, any claims
for refund of Taxes paid, any information return with respect to Taxes, or any other similar report, statement, declaration, election, notice, or other document required to be filed under any applicable Tax Law (whether or not a payment is required
to be made in connection with such filing), including any attachments, exhibits, schedules, or appendices or other materials submitted with any of the foregoing, and including any amendments or supplements to any of the foregoing. 

  
 5 

 “Tax Year” means, with respect to any Tax, the year, or other period, if
applicable, for which the Tax is reported as provided under applicable Tax Law. 
 “Treasury Regulations”
means the regulations promulgated from time to time under the Code as in effect for the relevant Tax Year. 
 Section 1.2
Examples. The operation of various provisions of this Agreement is illustrated by examples in Appendix A hereto, and this Agreement shall be interpreted in accordance with such examples. 

ARTICLE II 
 ALLOCATION
OF TAXES AND TAX ITEMS 
 Section 2.1 General Rules. Except as provided in Section 5.1 (Tax Contests—Notices) and
ARTICLE VI (Assistance and Cooperation), Taxes and Tax Items shall be allocated as follows: 
 (a) Chesapeake Taxes. For any
Tax Year, Chesapeake shall be liable for and indemnify the SSE Group against Chesapeake’s allocable portion of Taxes imposed on the Chesapeake Group and the SSE Group (“Chesapeake Taxes”). Chesapeake’s allocable portion of
such Taxes shall be determined by taking into account the following Tax Items on a pro forma stand-alone basis (as determined pursuant to Section 2.2(a)): 

(i) Chesapeake Business Tax Detriments. Tax Detriments (other than Tax Detriments resulting from the Separation Transactions)
arising from the operation or ownership of the Chesapeake Business,  
 (ii) Chesapeake Business Tax Benefits. Tax
Benefits (other than Tax Benefits resulting from the Separation Transactions) arising from the operation or ownership of the Chesapeake Business,  

(iii) Separation Transactions—Generally. Tax Items resulting from the Separation Transactions, except those Tax Items that
are taken into account by SSE pursuant to Section 2.1(b)(iii), and 
 (iv) SSE Business Tax Benefits. Tax Benefits
(other than Tax Benefits resulting from the Separation Transactions) arising from the operation or ownership of the SSE Business, but only to the extent such Tax Benefits are not taken into account in calculating SSE Taxes under Section
2.1(b)(ii). 
 (b) SSE Taxes. For any Tax Year, SSE shall be liable for and indemnify the Chesapeake Group against
SSE’s allocable portion of Taxes imposed on the Chesapeake Group and the SSE Group (“SSE Taxes”). SSE’s allocable portion of such Taxes shall be determined by taking into account the following Tax Items on a pro forma stand-alone basis (as determined pursuant to Section 2.2(a)): 
 (i) SSE Business Tax
Detriments. Tax Detriments (other than Tax Detriments resulting from the Separation Transactions) arising from the operation or ownership of the SSE Business,  

  
 6 

 (ii) SSE Business Tax Benefits. Tax Benefits (other than Tax Benefits resulting
from the Separation Transactions) arising from the operation or ownership of the SSE Business, but not to the extent of any Tax Detriments described in Section 2.1(b)(iii), 

(iii) Separation Transactions—Breach of Covenants. Tax Items resulting from the Separation Transactions, but only to the
extent such Tax Items are attributable to SSE’s breach of any covenant or representation under ARTICLE VII, and 
 (iv)
Chesapeake Business Tax Benefits. Tax Benefits (other than Tax Benefits resulting from the Separation Transactions) arising from the operation or ownership of the Chesapeake Business, but not to the extent of any Tax Detriments described in
Section 2.1(b)(iii) and only to the extent such Tax Benefits are not taken into account in calculating Chesapeake Taxes under Section 2.1(a)(ii). 

Section 2.2 Special Rules. 

(a) Pro Forma Stand-Alone Basis. For purposes of computing Chesapeake Taxes and SSE Taxes on a
pro forma stand-alone basis, Tax Items shall be taken into account: 
 (i) only to the extent
required or allowable under applicable Tax Law on a pro forma stand-alone basis for such Tax Year, 
 (ii) by assuming that the members of
the SSE Group filed on a consolidated basis with SSE as the common parent, 
 (iii) by using all applicable elections, accounting methods,
and conventions used on the Tax Return on which such Tax Items are actually reported, 
 (iv) by applying the average Tax rate on
such Tax Return (i.e., the Tax rate, expressed as a percentage, equal to the quotient of total Taxes shown on the Tax Return with respect to a particular Tax base and such applicable Tax base), provided, however, if any category
of Tax Items is subject to a different rate of Tax than other categories of Tax Items on such Tax Return, the average Tax rate applicable to such category of Tax Items reported on the Tax Return shall apply with respect to such Tax Items, and

 (v) by treating Tax Benefits as used in the order specified under applicable Tax Law or, to the extent that such Tax Law does not
specify the order of use, as used pro rata. 

  
 7 

 (b) Rules for Determining from which Business a Tax Item Arises. For purposes of
ARTICLE II, Tax Items shall be deemed to arise from the operation or ownership of the Business to which such items are more closely related. Notwithstanding the foregoing, with respect to any Tax Year, Tax Items related to overhead costs and
similar expenses that do not directly relate to either Business shall be allocated between the Businesses in a manner that is consistent with the practice of the Groups that is reflected on the Tax Return relating to such Tax Year. 

(c) Preparation of Pro Forma Calculations and Allocations. Chesapeake shall be responsible for preparing, in its reasonable discretion,
all pro forma stand-alone basis computations and allocations provided for in this ARTICLE II (including, for the avoidance of doubt, the allocations provided for in Section 2.2(b)). Chesapeake shall make available and provide to SSE a
reasonable opportunity to review all such pro forma stand-alone basis computations and allocations and shall use its reasonable discretion in taking into account any comments relating to such computations and allocations that are provided in writing
by SSE, which comments shall be provided no later than thirty days after such computations and allocations are made available to SSE. Chesapeake shall have no obligation to consider any comments that are provided more than thirty days after such
computations and allocations are made available to SSE. 
 (d) Differences Between Taxes Shown on Joint Return and Taxes Computed on a
Pro Forma Stand-Alone Basis. If the sum of Chesapeake Taxes and SSE Taxes relating to a Joint Return is different from the amount of Tax shown on such Joint Return, then the Tax shown on such Joint Return shall be allocated between the Parties
in the same proportion as the amount of Chesapeake Taxes or SSE Taxes, as appropriate, bears to the sum of Chesapeake Taxes and SSE Taxes relating to such Joint Return. 

ARTICLE III 

PREPARATION AND FILING OF TAX RETURNS 

Section 3.1 Joint Returns. Chesapeake shall be responsible for preparing and timely filing all Joint Returns. 

Section 3.2 Separate Returns. Chesapeake shall be responsible for preparing and timely filing all Tax Returns that it determines
in its reasonable discretion are Separate Returns including Tax Items attributable to the Chesapeake Business. SSE shall be responsible for preparing and timely filing all other Separate Returns. 

Section 3.3 Rules Relating to the Preparation of Tax Returns. 

(a) General Rule. Except as otherwise provided in this Agreement, the Preparer of a Tax Return shall have the exclusive right, in its
sole discretion, with respect to such Tax Return to determine (i) the manner in which such Tax Return shall be prepared and filed, including the elections, methods of accounting, positions, conventions, and principles of taxation to be used and
the manner in which any 

  
 8 

 
Tax Item shall be reported, (ii) whether any extensions may be requested, (iii) whether an amended Tax Return shall be filed, (iv) whether any claims for refund shall be made,
(v) whether any refunds shall be paid by way of refund or credited against any liability for the related Tax, and (vi) whether to retain outside firms to prepare or review such Tax Return. 

(b) Election to File Joint Returns. Chesapeake shall have the sole discretion of whether to file a Joint Return on a consolidated,
combined, or joint basis, if the filing of such consolidated, combined, or joint return is elective under the relevant Tax Law. 
 (c)
SSE Returns. Except as required by applicable Tax Law, with respect to any Separate Return for which SSE is the Preparer, SSE shall not take any position that it knows, or reasonably should know, would adversely affect any member of the
Chesapeake Group without the prior written consent of Chesapeake. Without limiting the foregoing, SSE shall not elect under Section 172(b)(3) of the Code to relinquish the carryback period with respect to a net operating loss if such net
operating loss could, absent such an election, be carried back to the Chesapeake Group’s 2014 Joint Return. 
 (d) Chesapeake
Returns. Except as required by applicable Tax Law, with respect to any Separate Return for which Chesapeake is the Preparer, Chesapeake shall not take any position that it knows, or reasonably should know, would adversely affect any member of
the SSE Group without the prior written consent of SSE. 
 (e) Returns Affecting Liability of Other Party. Insofar as a Tax Return
prepared by one Party may affect Taxes for which the other Party is liable pursuant to this Agreement: 
 (i) Tax Accounting
Practices. Except as required by applicable Tax Law, the Tax Return shall be prepared in a manner that is consistent with the tax accounting practice of the Groups in effect for such Tax Year. 

(ii) Review Prior to Filing. The Preparer of such Tax Return shall make the Tax Return or relevant portion thereof available to the Non-Preparer no later than forty-five days before the Tax Return is due, taking into account any extensions that the Preparer files, and shall use its reasonable discretion in taking into account any comments on
such Tax Return that are provided in writing by the Non-Preparer, which comments shall be provided no later than thirty days after such Tax Return is made available to the Non-Preparer. The Preparer shall have
no obligation to consider any comments that are provided more than thirty days after such Tax Return is made available to the Non-Preparer. 

(f) Reimbursement for Costs Incurred by Preparer. The Non-Preparer may request that the
Preparer amend any Tax Return for the benefit of the Non-Preparer. If the Preparer agrees, in its sole discretion, to amend such Tax Return, it shall be entitled to reimbursement from the Non-Preparer for any reasonable third-party costs that are attributable to the Non-Preparer’s request. 

  
 9 

 (g) Allocation of Tax Items Between Joint Return and Related Separate Return.
Notwithstanding Section 3.3(a), if Chesapeake allocates Tax Items between a Joint Return and any related Separate Return for which SSE is the Preparer, SSE shall prepare the related Separate Return in a manner that is consistent with
Chesapeake’s reporting of such Tax Items on the Joint Return. 
 (h) Standard of Performance. Chesapeake shall prepare Joint
Returns with the same general degree of care as it uses in preparing Separate Returns. 
 ARTICLE IV 

TAX PAYMENTS AND INDEMNIFICATION PAYMENTS 

Section 4.1 Payment of Taxes to Tax Authorities. Chesapeake shall be responsible for remitting to the proper Tax Authority all Tax
shown (including Taxes for which SSE is wholly or partially liable pursuant to Section 2.1) on any Tax Return for which it is the Preparer, and SSE shall be responsible for remitting to the proper Tax Authority all Tax shown on any Tax Return
for which it is the Preparer. 
 Section 4.2 Indemnification Payments. 

(a) Tax Payments Made by the SSE Group. If any member of the SSE Group remits a payment to a Tax Authority for any Chesapeake Taxes,
Chesapeake shall remit the amount for which it is liable to SSE pursuant to Section 2.1(a) within thirty days after receiving written notification requesting such amount. 

(b) Tax Payments Made by the Chesapeake Group. If any member of the Chesapeake Group remits a payment to a Tax Authority for any SSE
Taxes, SSE shall remit the amount for which it is liable to Chesapeake pursuant to Section 2.1(b) within thirty days after receiving written notification requesting such amount. 

(c) Credit for Prior Deemed Tax Payments. For purposes of Section 4.2(b), the portion of Taxes paid by the Chesapeake Group to a
Tax Authority for which SSE is wholly or partially liable will be determined by assuming that SSE previously paid the full amount of its allocable share of all Taxes shown on any Tax Return filed before the Spin-off Date with respect to any Tax Year
ending before the Spin-off Date. 
 Section 4.3 Initial Determinations and Subsequent Adjustments. 

(a) Initial Determinations of Payments. The initial determination of the amount of any payment that one Party is required to make to
the other Party under this Agreement shall be made on the basis of the Tax Return to which the payment relates as filed, or, if such Tax is not reported on a Tax Return, on the basis of the amount of Tax initially paid to the Tax Authority. 

  
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 (b) Redeterminations of Payments and Additional Payments. The amounts paid under this
Agreement will be redetermined, and additional payments relating to such redetermination will be made, as appropriate, if as a result of an audit by a Tax Authority, an amended Tax Return, or for any other reason (i) additional Taxes to which
such redetermination relates are subsequently paid, (ii) a refund of such Taxes is received, (iii) the Group to which a Tax Item is allocated changes, or (iv) the amount or character of any Tax Item is adjusted or redetermined. Each
payment required by the immediately preceding sentence (i) as a result of a payment of additional Taxes will be due thirty days after the date on which the additional Taxes were paid or, if later, thirty days after the date of a request from
the other Party for the payment, (ii) as a result of the receipt of a refund will be due thirty days after the refund was received, (iii) as a result of a change in the allocation of a Tax Item will be due thirty days after the date on
which the final action resulting in such change is taken by a Tax Authority or either Party or any member of its Group or (iv) as a result of an adjustment or redetermination of the amount or character of a Tax Item will be due thirty days
after the date on which the final action resulting in such adjustment or redetermination is taken by a Tax Authority or either Party or any member of its Group. 

Section 4.4 Payments by or to Other Members of the Groups. When appropriate under the circumstances to reflect the underlying
liability for a Tax or entitlement to a Tax refund or Tax Benefit, a payment which is required to be made by or to a Party may be made by or to another member of the Group to which that Party belongs, but nothing in this Section 4.4 shall
relieve any Party of its other obligations under this Agreement. 
 Section 4.5 Late Payments. Payments pursuant to this
Agreement that are not made within the period prescribed in this Agreement or, if no period is prescribed, within fifteen days after written demand for payment is made shall bear interest for the period from and including the date immediately
following the last date of such payment period through and including the date of payment at a per annum rate equal to the rate specified in Section 5.5 of the Master Separation Agreement. Such interest will be payable at the same time as the
payment to which it relates and shall be calculated on the basis of a year of 365 days and the actual number of days for which due. If the indemnifying party fails to make a payment to the indemnified party within the time period set forth in this
ARTICLE IV, the indemnifying party shall pay to the indemnified party, in addition to interest that accrues pursuant to this Section 4.5, any costs or expenses incurred by the indemnified party to secure such payment or to satisfy the indemnifying
party’s portion of the obligation giving rise to the indemnification payment. 
 Section 4.6 Tax Consequences of Payments.
For all Tax purposes and to the extent permitted by applicable Tax Law, the Parties shall characterize any payment made pursuant to this Agreement in the same manner as if such payment were a capital contribution or a distribution, as the case may
be, immediately prior to the Effective Time and, accordingly, as not includible in the taxable income of the recipient. The amount of any payment made pursuant to this Agreement shall be (i) grossed up to take into account any additional Taxes
that may be owed by the recipient (or any of the members of its Group) as a result of receiving such payment and (ii) reduced to take into account any 

  
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Tax Benefit realized by the recipient of such payment as a result of making any payment giving rise to the obligation of the payor to pay the recipient, but only to the extent that such Tax
Benefit reduces the liability for Taxes (whether payable to a Tax Authority or to the other Party under this Agreement) of the recipient in the Tax Year during which such payment is received. If the payor reduces any payment by the amount of any Tax
Benefit pursuant to this Section 4.6 and such Tax Benefit subsequently is denied or reduced by any Tax Authority, then the payor shall pay the recipient an amount equal to such reduction or denial. In the event that a Tax Authority asserts that
Chesapeake’s or SSE’s treatment of a payment pursuant to this Agreement should be other than as required pursuant to this Section 4.6, Chesapeake or SSE, as appropriate, shall use its commercially reasonable efforts to contest such
assertion. 
 Section 4.7 Payment Notices. Any notice requesting payment to be made pursuant to this Agreement shall
(i) indicate the amount due and owing, (ii) set forth in reasonable detail the calculation of such amount, and (iii) include any relevant Tax Records, statement, bill, or invoice related to such Taxes, costs, expenses, or other
amounts due and owing. Payments shall be deemed made when received. 
 ARTICLE V 

TAX CONTESTS 

Section 5.1 Notices. Each Party shall provide prompt notice to the other Party of any pending or threatened Tax Contest of which
it becomes aware relating to (i) Taxes for which it is or may be indemnified by the other Party hereunder, (ii) the qualification of the Spin-off, for U.S. federal income tax purposes, as a Tax-free transaction described under Sections 368(a)(1)(D) and 355 of the Code to Chesapeake, its shareholders, and SSE (except to the extent such shareholders receive cash in lieu of fractional shares or gain is
required to be recognized by Chesapeake under Section 357(c) of the Code), or (iii) any change in the Tax treatment of any other part of the Separation Transactions. Such notice shall contain factual information (to the extent known by the
notifying party or its agents or representatives) describing any threatened Tax Contest or asserted Tax liability, if any, in reasonable detail and shall be accompanied by copies of any notice and other documents received from any Tax Authority in
respect of any such matters. If (i) an indemnified Party has knowledge of an asserted Tax liability with respect to a matter for which it is to be indemnified hereunder, (ii) such Party fails to give the indemnifying Party prompt notice of
such asserted Tax liability, and (iii) the indemnifying Party has the right, pursuant to Section 5.2, to control the Tax Contest relating to such Tax liability, then (A) if the indemnifying Party is precluded from contesting the
asserted Tax liability in any forum as a result of the failure to give prompt notice, the indemnifying Party shall have no obligation to indemnify the indemnified Party for any Taxes arising out of such asserted Tax liability and (B) if the
indemnifying Party is not precluded from contesting the asserted Tax liability in any forum, but such failure to give prompt notice results directly in a monetary detriment to the indemnifying Party, then any amount which the indemnifying Party is
otherwise required to pay the indemnified Party pursuant to this Agreement shall be reduced by the amount of such detriment. 

  
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 Section 5.2 Control of Tax Contests. 

(a) General Rule. Except as otherwise provided in this Section 5.2, the Preparer of any Tax Return shall be the Controlling Party with
respect to any Tax Contest involving a Tax reported on such Tax Return. 
 (b) Tax Contests Involving Certain Taxes Reported on a Joint
Return. Chesapeake, in its sole discretion, may allow SSE to be the Controlling Party with respect to that portion of any Tax Contest that involves a Tax Item reported on a Joint Return where SSE is liable for or entitled to take into account
such Tax Item under this Agreement and such Tax Item is separable from all other Tax Items reported on such Joint Return. 
 (c) Non-Controlling Party Participation Rights. With respect to any Tax Contest involving a Tax Item for which the Non-Controlling Party may be liable (either as a
result of an increase in a Tax Detriment or a reduction in a Tax Benefit) or may be entitled to take into account under this Agreement (a “Non-Controlling Party Item”), (i) the Non-Controlling Party shall, at its own cost and expense, be entitled to participate in such Tax Contest, to the extent it relates to a Non-Controlling Party Item,
(ii) the Controlling Party shall keep the Non-Controlling Party reasonably informed and consult in good faith with the Non-Controlling Party and its Tax advisors
with respect to any issue relating to a Non-Controlling Party Item, (iii) the Controlling Party shall provide the Non-Controlling Party with copies of all
correspondence, notices, and other written materials received from any Tax Authority and shall otherwise keep the Non-Controlling Party and its Tax advisors advised of material developments in the Tax Contest
and of material communications involving representatives of the Tax Authority, to the extent related to a Non-Controlling Party Item, (iv) the Non-Controlling Party
may request that the Controlling Party take a position related to a Non-Controlling Party Item in respect of such Tax Contest, and the Controlling Party shall do so provided that (A) there exists
substantial authority for such position (within the meaning of the accuracy-related penalty provisions of Section 6662 of the Code), (B) the adoption of such position would not reasonably be expected
to increase the Taxes for which the Controlling Party is liable, or decrease the Tax Benefits allocated to the Controlling Party under this Agreement (unless the Non-Controlling Party agrees to indemnify and
hold harmless the Controlling Party from such increase in Taxes or reduction in Tax Benefits), and (C) the Non-Controlling Party agrees to reimburse the Controlling Party for any reasonable third-party costs that are attributable to the Non-Controlling Party’s request, (v) the Controlling Party shall provide the
Non-Controlling Party with a copy of any written submission to be sent to a Tax Authority to the extent related to a Non-Controlling Party Item prior to the submission
thereof and shall in its reasonable discretion consider any comments or suggested revisions that the Non-Controlling Party or its Tax advisors may have with respect thereto, and (vi) there will be no
settlement, resolution or closing or other agreement with respect thereto without the consent of the Non-Controlling Party, which consent shall not be unreasonably withheld or delayed. 

  
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 ARTICLE VI 

ASSISTANCE AND COOPERATION 

Section 6.1 Provision of Information. 

(a) Information with Respect to Joint Returns. At the written request of Chesapeake, SSE shall provide Chesapeake with all Tax Records
or other information then in the possession of the SSE Group that Chesapeake reasonably requests in order for Chesapeake to properly and timely file all Joint Returns. SSE shall provide such information no later than thirty days from the date of
Chesapeake’s written request. However, if Chesapeake requests any such information within the thirty day period ending on the due date of such Joint Return, taking into account applicable extensions, SSE shall provide such information as soon
as commercially reasonable. If SSE fails to satisfy the obligation provided for in the preceding three sentences, then, notwithstanding any other provision of this Agreement, SSE shall be liable for, and shall indemnify and hold harmless each member
of the Chesapeake Group from and against, any penalties, interest or additional amounts in respect of Taxes (but excluding any Taxes underlying such amounts) assessed against any member of either Group by reason of any resulting delay in filing such
return, to the extent such penalties, interest or additional amounts in respect of Taxes are directly attributable to the delay in providing such information. If SSE provides such information within the time period described in this Section
6.1(a) in the form reasonably requested by Chesapeake to permit the timely filing of a Joint Return (or if no such information was requested by Chesapeake pursuant to this Section 6.1(a)), then, notwithstanding any other provision of this
Agreement, Chesapeake shall be liable for, and shall indemnify and hold harmless each member of the SSE Group from and against, any penalties, interest, or additional amounts in respect of Taxes (but excluding any Taxes underlying such amounts)
assessed against any member of either Group by reason of any delay in filing such Joint Return, to the extent such penalties, interest, or additional amounts in respect of Taxes are directly attributable to the delay in filing. 

(b) Information with Respect Tax Payments. At the written request of Chesapeake, SSE shall provide Chesapeake with all Tax Records or
other information then in the possession of the SSE Group that Chesapeake reasonably requests in order to determine the amount of Taxes due on any Payment Date with respect to a Joint Return. SSE shall provide such information no later than thirty
days from the date of Chesapeake’s written request. However, if Chesapeake requests any such information within the thirty day period ending on the Payment Date, SSE shall provide such information as soon as commercially reasonable. If SSE
fails to satisfy the obligation provided for in the preceding three sentences, the indemnification principles of Section 6.1(a) shall apply with respect to any penalties, interest, or additional amounts in respect of Taxes (but excluding any
Taxes underlying such amounts) assessed against any member of either Group by reason of any resulting delay in paying such Taxes, to the extent such penalties, interest, or additional amounts in respect of Taxes are directly attributable to the
delay in providing such information. 

  
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 (c) Information with Respect to Separate Returns. At the written request of the Preparer,
the Non-Preparer shall provide the Preparer with all Tax Records or other information then in the possession of the Non-Preparer’s Group that the Preparer
reasonably requests in order to properly and timely file all Separate Returns for which the Preparer is responsible pursuant to Section 3.2. Such information shall be provided within the time period prescribed by Section 6.1(a) for the
provision of information for Joint Returns. If the Non-Preparer fails to satisfy the obligation provided for in the preceding two sentences, the indemnification principles of Section 6.1(a) shall
apply with respect to any penalties, interest, or additional amounts in respect of Taxes (but excluding any Taxes underlying such amounts) assessed against any member of either Group by reason of any resulting delay in filing such return, to the
extent such penalties, interest, or additional amounts in respect of Taxes are directly attributable to the delay in providing such information. 

(d) Information with Respect to Pro Forma Stand-Alone Basis Computations and Allocations. At the written request of Chesapeake, SSE
shall provide Chesapeake with all Tax Records or other information then in the possession of the SSE Group that Chesapeake reasonably requests in order for Chesapeake to prepare the pro forma stand-alone basis computations and allocations provided
for in Section 2.2(c). SSE shall provide such information no later than thirty days from the date of Chesapeake’s written request. 

(e) Information with Respect to Tax Contests. At the written request of the Controlling Party, the
Non-Controlling Party shall provide to the Controlling Party any information then in its possession (including Tax Records) about members of the Non-Controlling
Party’s Group which is reasonably necessary in order to handle, settle or conduct any Tax Contest. The Non-Controlling Party shall provide such information no later than thirty days from the date of the
Controlling Party’s written request. If the Non-Controlling Party fails to satisfy the obligation provided for in the preceding two sentences, the Controlling Party shall have no obligation to indemnify
the Non-Controlling Party for any additional Taxes resulting from such Tax Contest, to the extent such additional Taxes are directly attributable to the Non-Controlling
Party’s failure to provide such information. 
 Section 6.2 Reliance on Exchanged Information. If a member of the SSE Group
supplies Tax Records or other information to a member of the Chesapeake Group, or a member of the Chesapeake Group supplies Tax Records or other information to a member of the SSE Group, and an officer of the requesting Group member intends to sign
a statement or other document under penalties of perjury in reliance upon the accuracy of such Tax Records or other information, then a duly authorized officer of the Group member supplying such Tax Records or other information shall certify, to
such officer’s knowledge and belief, the accuracy and completeness of the Tax Records or other information so supplied. 

  
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 Section 6.3 Provision of Assistance and Cooperation. 

(a) Assistance with Respect to Joint Returns. At the written request of Chesapeake, SSE shall take any action (e.g., filing a ruling
request with the relevant Tax Authority or executing a power of attorney) that is reasonably necessary in order for Chesapeake to prepare, file, amend or take any other action with respect to any Joint Return. If SSE fails to take any such requested
action, the indemnification principles of Section 6.1(a) shall apply with respect to any penalties, interest, or additional amounts in respect of Taxes (but excluding any Taxes underlying such amounts) assessed against any member of either Group by
reason of a failure to take any such requested action, to the extent such penalties, interest, or additional amounts in respect of Taxes are directly attributable to the failure to take such action. 

(b) Assistance with Respect to Tax Contests. At the written request of the Controlling Party, the
Non-Controlling Party shall take any action (e.g., executing a power of attorney) that is reasonably necessary in order for the Controlling Party to handle, settle or conduct a Tax Contest. Each Party shall
assist the other Party in taking any remedial actions that are necessary or desirable to minimize the effects of any adjustment made by a Tax Authority. The Controlling Party shall reimburse the
Non-Controlling Party for any reasonable, third-party, out-of-pocket costs and expenses incurred in connection with this Section 6.3(b). If the Non-Controlling Party
fails to provide assistance in accordance with this Section 6.3(b), the Controlling Party shall have no obligation to indemnify the Non-Controlling Party for any additional Taxes resulting from the Tax
Contest, to the extent such additional Taxes are directly attributable to the Non-Controlling Party’s failure to provide such assistance. 

(c) Cooperation. In addition to the obligations enumerated elsewhere in this ARTICLE VI, Chesapeake and SSE shall cooperate with
each other and with each other’s agents and representatives, including their respective accounting firms and legal counsel, in connection with Tax matters, including, making available to each other, as reasonably requested and available,
personnel (including officers, employees and agents of the Parties or their Subsidiaries) responsible for preparing, maintaining, and interpreting information and documents relevant to Taxes, and personnel reasonably required as witnesses or for
purposes of providing information or documents in connection with any Tax Contest. 
 Section 6.4 Retention of Tax Records. Each
Party shall preserve, and shall cause other members of its Group to preserve, all Tax Records that are in such member’s possession and that could affect the Tax liability of any member of the other Group, for so long as the contents thereof may
become material in the administration of any matter under applicable Tax Law, but in any event until the later of (i) the expiration of any applicable statutes of limitation, as extended, and (ii) seven years after the Spin-off Date. 
 Section 6.5 Supplemental Rulings and Supplemental Tax Opinions. Each
of the Parties agrees that at the reasonable request of the other Party (the “Requesting Party”), such Party shall cooperate and use reasonable efforts to (and shall cause its Subsidiaries to cooperate and use reasonable efforts to)
assist the Requesting Party in obtaining, as expeditiously as reasonably practicable, a Supplemental Ruling 

  
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from the IRS and/or a Supplemental Tax Opinion from Tax Counsel. Within thirty days after receiving an invoice from the other Party therefor, the Requesting Party shall reimburse such Party for
all reasonable costs and expenses incurred by such Party and the members of its Group in connection with assisting the Requesting Party in obtaining any Supplemental Ruling or Supplemental Tax Opinion. Notwithstanding the foregoing, no Party shall
be required to file any Supplemental IRS Submission unless the other Party represents to the filing Party that (i) it has reviewed the Supplemental IRS Submission and (ii) all information and representations, if any, relating to any member
of the other Party’s Group contained in the Supplemental IRS Submissions are true, correct and complete in all material respects. 

Section 6.6 Withholding and Reporting. With respect to any stock of Chesapeake delivered to any Person, Chesapeake and SSE shall
cooperate (and shall cause their respective Subsidiaries to cooperate) so as to permit Chesapeake to discharge any applicable Tax withholding and Tax reporting obligations, including the appointment of SSE or one or more of its Subsidiaries as the
withholding and reporting agent if Chesapeake or one or more of its Subsidiaries is not otherwise required or permitted to withhold and report under applicable Tax Law. 

ARTICLE VII 

RESTRICTIONS ON CERTAIN ACTIONS 

Section 7.1 General Restrictions. Following the Effective Time, SSE shall not take any action that, or fail to take any action the
failure of which to take, (i) would be inconsistent with or preclude the Spin-off from qualifying, for U.S. federal income tax purposes, as a Tax-free transaction
described under Sections 368(a)(1)(D) and 355 of the Code to Chesapeake, its shareholders, and SSE (except to the extent such shareholders receive cash in lieu of fractional shares or gain is required to be recognized by Chesapeake under
Section 357(c) of the Code) or (ii) reasonably could be expected to increase the amount of Tax imposed on any other part of the Separation Transactions, or (iii) would be reasonably likely to be inconsistent with, or cause any Person
to be in breach of, any representation or covenant, or any material statement, made in the Tax Materials. 
 Section 7.2 Certain SSE
Actions Beginning on the Spin-off Date. Without limiting the other provisions of this ARTICLE VII, during the two-year period beginning on the Spin-off Date, SSE shall not take, nor enter into a binding agreement to take, any of the following actions: 

(i) liquidate or sell all or substantially all of the assets that constitute the SSE Business as of the
Spin-off Date to any Person other than SSE or an entity which is and will be wholly-owned, directly or indirectly, by SSE; 

(ii) transfer any assets of SSE or any Subsidiary of SSE in a transaction described in subparagraphs (A), (C), (D), (F), or (G) of
Section 368(a)(1) of the Code to another entity, other than SSE or an entity which is and will be wholly-owned, directly or indirectly, by SSE; 

  
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 (iii) transfer all or substantially all of the assets that constitute the SSE Business as of the
Spin-off Date in a transaction described in Sections 351 or 721 of the Code other than a transfer to a corporation or partnership which is and will be wholly-owned,
directly or indirectly, by SSE; 
 (iv) issue stock of SSE or any Subsidiary of SSE (or any instrument that is convertible or exchangeable
into any such stock) other than an issuance to which Treasury Regulations Section 1.355-7(d)(8) or (9) applies; 

(v) facilitate or otherwise participate in any acquisition (or deemed acquisition) of stock of SSE that would result in any shareholder
owning (or being deemed to own after applying the rules of Sections 355(e)(4)(C) and 355(e)(3)(B) of the Code) forty percent (40%) or more (by vote or value) of the outstanding stock of SSE; or 

(vi) redeem or otherwise repurchase any stock of SSE other than pursuant to open market stock repurchase programs meeting the requirements of
Section 4.05(1)(b) of Rev. Proc. 96-30, 1996-1 C.B. 696, as in effect prior to its amendment by Rev. Proc. 2003-48; 

in each case, without first obtaining and delivering to Chesapeake, at SSE’s own expense, a Supplemental Tax Opinion with respect to such action that is
reasonably satisfactory to Chesapeake. 
 ARTICLE VIII 

GENERAL PROVISIONS 

Section 8.1 Authority. Each of the Parties represents to the other that (a) it has the corporate or other requisite power and
authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement by it have been duly authorized by all necessary corporate or other actions, (c) it has duly and validly executed and
delivered this Agreement to be executed and delivered on or prior to the Spin-off Date, and (d) this Agreement is a legal, valid and binding obligation, enforceable against it in accordance with its terms subject to applicable bankruptcy,
insolvency, reorganization, moratorium, or other similar laws affecting creditors’ rights generally and general equity principles. 

Section 8.2 Termination. This Agreement may be terminated at any time prior to the Effective Time by and in the sole discretion of
Chesapeake without the approval of SSE. In the event of termination pursuant to this Section 8.2, neither Party shall have any liability of any kind to the other Party by reason of this Agreement or such termination. 

  
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 Section 8.3 Entire Agreement. This Agreement, together with the Master Separation
Agreement, the Ancillary Agreements (as defined in the Master Separation Agreement), and the Schedules referenced therein or attached thereto, constitutes the entire agreement and understanding between the Parties with respect to the subject matter
hereof and shall supersede all prior written and oral and all contemporaneous oral agreements and understandings with respect to the subject matter hereof. 

Section 8.4 Binding Effect; No Third-Party Beneficiaries; Assignment. This Agreement shall inure to the benefit of and be binding
upon the Parties and their respective successors and permitted assigns and nothing in this Agreement, express or implied, is intended to confer upon any Person except the Parties and their respective Subsidiaries any rights, benefits or remedies of
any nature whatsoever under or by reason of this Agreement. This Agreement may not be assigned by either Party, except with the prior written consent of the other Party. 

Section 8.5 Amendment. No change or amendment may be made to this Agreement except by an instrument in writing signed on behalf of
both of the Parties. 
 Section 8.6 Failure or Indulgence Not Waiver; Remedies Cumulative. No failure or delay on the part of
either Party in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty, covenant, or agreement contained herein, nor shall any single or partial
exercise of any such right preclude other or further exercise thereof or of any other right. All rights and remedies existing under this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available. 

Section 8.7 Notices. All notices, claims, certificates, requests, demands, and other communications hereunder shall be in writing
and shall be deemed to be duly given (i) when personally delivered, (ii) if mailed by registered or certified mail, postage prepaid, return receipt requested, on the date the return receipt is executed or the letter is refused by the
addressee or its agent, (iii) if sent by overnight courier which delivers only upon the signed receipt of the addressee, on the date the receipt acknowledgment is executed or refused by the addressee or its agent, or (iv) if sent by
facsimile or electronic mail, on the date confirmation of transmission is received (provided that a copy of any notice delivered pursuant to this clause (iv) shall also be sent pursuant to clause (i), (ii), or (iii)), addressed to the attention
of the addressee’s General Counsel at the address of its principal executive office or to such other address or facsimile number for a Party as it shall have specified by like notice. 

Section 8.8 Counterparts. This Agreement may be executed in multiple counterparts, each of which when executed shall be deemed to
be an original but all of which together shall constitute one and the same agreement. 
 Section 8.9 Severability. If any term
or other provision of this Agreement is determined by a nonappealable decision by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law, or

  
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public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner materially adverse to either Party. Upon such determination that any term or other provision is invalid, illegal, or incapable of being enforced, the court, administrative agency, or arbitrator shall interpret
this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the fullest extent possible. If any sentence in this Agreement is so
broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable. 
 Section 8.10 Governing
Law. This Agreement shall be governed by, and construed and enforced in accordance with, the substantive laws of the State of Oklahoma, without regard to conflicts of laws provisions thereof that would result in the application of the laws of
any other jurisdiction. 
 Section 8.11 Specific Performance. In the event of any actual or threatened default in, or breach of,
any of the terms, conditions, and provisions of this Agreement, the Party or the Parties who are or are to be thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief of their rights under this
Agreement, in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that the remedies at law for any breach or threatened breach, including monetary damages,
are inadequate compensation for any loss and that any defense in any action for specific performance that a remedy at law would be adequate is waived. Any requirements for the securing or posting of any bond with such remedy are waived. 

Section 8.12 Construction. This Agreement shall be construed as if jointly drafted by SSE and Chesapeake and no rule of
construction or strict interpretation shall be applied against either Party. The Parties represent that this Agreement is entered into with full consideration of any and all rights which the Parties may have. The Parties have relied upon their own
knowledge and judgment and upon the advice of the attorneys of their choosing. The Parties have had access to independent legal advice, have conducted such investigations they and their counsel thought appropriate, and have consulted with such other
independent advisors as they and their counsel deemed appropriate regarding this Agreement and their rights and asserted rights in connection therewith. The Parties are not relying upon any representations or statements made by any other Party, or
such other Party’s employees, agents, representatives, or attorneys, regarding this Agreement, except to the extent such representations are expressly set forth or incorporated in this Agreement. The Parties are not relying upon a legal duty,
if one exists, on the part of the other Party (or such other Party’s employees, agents, representatives, or attorneys) to disclose any information in connection with the execution of this Agreement or its preparation, it being expressly
understood that neither Party shall ever assert any failure to disclose information on the part of the other Party as a ground for challenging this Agreement. 

  
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 Section 8.13 Performance. Each Party shall cause to be performed, and hereby
guarantees the performance of, all actions, agreements and obligations set forth herein to be performed by any Subsidiary of such Party. 

Section 8.14 Change in Law. Any reference to a provision of the Code or any other Tax Law shall include a reference to any
applicable successor provision or law. 
 Section 8.15 Expenses. Except as otherwise provided herein, each Party and its
Subsidiaries shall bear their own expenses incurred in connection with the preparation of Tax Returns, Tax Contests, and other matters related to Taxes under the provisions of this Agreement. 

Section 8.16 Disputes. The procedures for discussion, negotiation and arbitration set forth in ARTICLE V of the Master
Separation Agreement shall apply to all disputes, controversies, or claims (whether sounding in contract, tort, or otherwise) that may rise out of or relate to, or arise under or in connection with this Agreement, except that, with respect to such
disputes, controversies, or claims, the Applicable Deadline (as defined in Section 5.3(b) of the Master Separation Agreement) shall be sixty days after the later of (i) the applicable statute of limitations with respect to any Tax Item
that is the subject of such dispute, controversy, or claim and (ii) the date that final action is taken by the applicable Tax Authority with respect to a Tax Contest relating to any Tax Item that is the subject of such dispute, controversy, or
claim. 
 Section 8.17 Confidentiality. The provisions of Section 6.11 of the Master Separation Agreement shall govern the
confidentiality, disclosure, and use of Confidential Information (as defined therein) relating to Taxes. 

  
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 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by the respective
officers as of the date set forth above. 
  

			
	CHESAPEAKE ENERGY CORPORATION
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	CHESAPEAKE OILFIELD OPERATING, L.L.C.
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 22 

 APPENDIX A 

The following examples illustrate the operation of various provisions of this Agreement. However, no example is intended to illustrate every
provision of this Agreement that may be relevant thereto. 
 Except as otherwise indicated, each example assumes: 

(i) an average Tax rate of 35%, 

(ii) Chesapeake Oilfield Operating, L.L.C. converts into SSE on June 29, 2014, 

(iii) prior to the conversion Chesapeake Oilfield Operating, L.L.C. is a disregarded entity for U.S. federal income Tax purposes, 

(iv) the Spin-off Date is June 30, 2014, 

(v) Chesapeake recognizes $100x of gain under Section 357(c) of the Code on the Separation Transactions, and 

(vi) for U.S. federal income Tax purposes the Spin-off qualifies as a Tax-free transaction described under Sections 368(a)(1)(D) and 355 of
the Code to Chesapeake, its shareholders, and SSE (except to the extent such shareholders receive cash in lieu of fractional shares or gain is required to be recognized by Chesapeake under Section 357(c) of the Code). 

Example 1. General Tax Allocation on Joint Return. 

On its U.S. federal consolidated income Tax Return for the Tax Year that begins on January 1, 2014, and ends on December 31, 2014,
the Chesapeake consolidated group reports $200x of consolidated net taxable income, no credits, and a Tax liability of $70x (viz., (35%)($200x)). The $200x of consolidated net taxable income reported on such Tax Return consists of $300x in
Tax Detriments and $100x in Tax Benefits. 
 Pursuant to Section 2.2(c), Chesapeake determines in its reasonable discretion that the
Tax Detriments consist of (i) $100x of gain recognized under section 357(c) and attributable to the Separation Transactions, (ii) $100x of income more closely related to the Chesapeake Business, and (iii) $100x of income more closely
related to the SSE Business. Similarly, Chesapeake determines in its reasonable discretion that the Tax Benefits consist of (i) $50x of deductions more closely related to the Chesapeake Business and (ii) $50x of deductions more closely
related to the SSE Business. 
 Pursuant to Section 2.1, each of Chesapeake and SSE will be liable for its allocable portion of the $70x of
Tax shown on the U.S. federal consolidated income Tax Return. Pursuant to Section 2.2(c), each Party’s allocable portion of such Tax is determined by Chesapeake, in its reasonable discretion, by taking into account on a pro forma
stand-alone basis the Tax Items shown on such Tax Return and allocated to such Party pursuant to Section 2.1. 

  
 A-1 

 Thus, Chesapeake determines in its reasonable discretion that its allocable portion of such Tax
is determined by taking into account on a pro forma stand-alone basis: 
 (i) pursuant to Section 2.1(a)(iii), the $100x of Tax Detriments
arising from the Separation Transactions, 
 (ii) pursuant to Section 2.1(a)(i) and 2.2(b), the $100x of Tax Detriments more closely related
to the Chesapeake Business because they are deemed to arise from the operation or ownership of the Chesapeake Business, and 
 (iii)
pursuant to Section 2.1(a)(ii) and 2.2(b), the $50x of Tax Benefits more closely related to the Chesapeake Business because they are deemed to arise from the operation or ownership of the Chesapeake Business. 

Taking into account such Tax Items on a pro forma stand-alone basis, Chesapeake’s allocable portion of the $70x of Tax therefore is
$52.5x (viz., (($100+$100-$50)(35%)). 
 In addition, Chesapeake determines in its reasonable discretion that SSE’s allocable
portion of such Tax is determined by taking into account: 
 (i) pursuant to Section 2.1(b)(i) and 2.2(b), the $100x of Tax Detriments more
closely related to the SSE Business because they are deemed to arise from the operation or ownership of the SSE Business, and 
 (ii)
pursuant to Section 2.1(b)(ii) and 2.2(b), the $50x of Tax Benefits more closely related to the SSE Business because they are deemed to arise from the operation or ownership of the SSE Business. 

Taking into account such Tax Items on a pro forma stand-alone basis, SSE’s allocable portion of the $70x of Tax therefore is $17.5x
(viz., (($100-$50)(35%)). 
 Because Chesapeake determines in its reasonable discretion that the 2014 U.S. federal consolidated
income Tax Return includes Tax Items attributable to the Chesapeake Business and Tax Items attributable to the SSE Business, it will be a Joint Return. Pursuant to Section 3.1, Chesapeake is responsible for preparing and timely filing the Joint
Return. Chesapeake will have the right to make those determinations described in Section 3.3(a) with respect to the Joint Return. Pursuant to Section 3.3(e)(ii), Chesapeake must make the Joint Return available to SSE no later than forty-five
days before the Joint Return is due, taking into account any applicable extensions. Further, Chesapeake must, in its reasonable discretion, take into account any written comments provided by SSE, but only to the extent such comments are provided no
later than thirty days after the Joint Return is made available to SSE. 

  
 A-2 

 Pursuant to Section 4.1, Chesapeake must pay the $70x of Tax to the Tax Authority. Pursuant to
Section 2.2(c), Chesapeake must make available and provide to SSE a reasonable opportunity to review the pro forma stand-alone basis computations and allocations and use its reasonable discretion in taking into account any written comments provided
by SSE with respect to such computations and allocations, but only to the extent such comments are provided no later than thirty days after such computations and allocations have been made available to SSE. 

Pursuant to Section 4.2(b), SSE must remit the amount for which it is liable (viz., $17.5x) to Chesapeake within thirty days after
receiving written notification requesting such amount. If payment is not made within thirty days, SSE must pay interest thereafter on the amount past due at the rate and as determined under Section 4.5. 

Pursuant to Section 4.6, the Parties would ordinarily characterize SSE’s payment of $17.5x in the same manner as if it were a
distribution to Chesapeake immediately prior to the Effective Time. However, under applicable Tax Law (viz., Treasury Regulations Sections 1.1552-1(b)(2) and 1.1502-32(b)(3)(iv)(D)), the Parties are required to treat a portion of such payment
as a payment in satisfaction of indebtedness owed by SSE to Chesapeake. 
 Example 2. Separate Return filed by SSE. 

On its 2014 U.S. federal consolidated income Tax Return, the Chesapeake consolidated group reports $200x of consolidated net taxable income,
no credits, and a Tax liability of $70x (viz., (35%)($200x)). Of the $200x of consolidated net taxable income reported on such Tax Return, $150x consists of Tax Items that are deemed to arise from the operation or ownership of the Chesapeake
Business. The remaining $50x of consolidated net taxable income consists of Tax Items that are deemed to arise from the operation or ownership of the SSE. The SSE Group had total consolidated net taxable income of $125x during the period beginning
January 1, 2014, and ending December 31, 2014. Because Chesapeake’s 2014 U.S. federal consolidated income Tax Return includes Tax Items attributable to the Chesapeake Business and Tax Items attributable to the SSE Business, it will be
a Joint Return. 
 Pursuant to Section 3.2, SSE is responsible for preparing and timely filing a Separate Return for the SSE Group for the
period beginning on July 1, 2014, and ending on December 31, 2014. As a result, SSE will have the right to make those determinations described in Section 3.3(a) with respect to the Separate Return, subject to the limitations in Section
3.3(c), Section 3.3(e), and Section 3.3(g). SSE must, pursuant to Section 3.3(g), prepare its related Separate Return so that its net income is allocated consistently with the Joint Return. 

As a result, $50x of SSE’s 2014 net income is allocated to the Joint Return and the remainder of SSE’s 2014 net income (viz.,
$75x) is allocated to its Separate Return. 

  
 A-3 

 Example 3. Separate Returns and State Taxes. 

On a monthly Pennsylvania sales Tax Return during 2013, $50x of sales Tax must be reported. For purposes of this example, it is assumed that
such Tax Return was not filed prior to the Effective Time of this Agreement. The $50x of sales Tax reported on such Tax Return consists of Tax Detriments that are deemed to arise from the operation or ownership of the SSE Business. 

Because such Tax Return includes Tax Items attributable only to the SSE Business, it will be a Separate Return. Pursuant to Section 3.2,
SSE is responsible for preparing and timely filing such Separate Return and will have the right to make those determinations described in Section 3.3(a) with respect to the Separate Return, subject to the limitations in Section 3.3(c) and Section
3.3(e). Pursuant to Section 4.1, SSE must pay the $50x of sales Tax shown on the Separate Return to the proper Tax Authority. Furthermore, pursuant to Section 5.2(a), SSE will have primary responsibility, control and discretion in handling,
settling, or conducting any Tax Contest with respect to such Tax Return, subject to the limitations in Section 5.2(c). 
 Alternatively, if
the $50x of Taxes shown on the Pennsylvania sales Tax Return described above consists of Tax Detriments arising from the operation or ownership of the SSE Business and Tax Detriments arising from the operation or ownership of the Chesapeake
Business, such Tax Return will be a Joint Return. In such case, pursuant to Section 3.1, Chesapeake will be responsible for preparing and timely filing such Joint Return and will have the right to make those determinations described in Section
3.3(a) with respect to the Joint Return, subject to the limitations in Section 3.3(e) and Section 3.3(e). Pursuant to Section 4.1, Chesapeake must pay the $50x of sales Tax shown on the Joint Return to the proper Tax Authority, but will be entitled
to reimbursement from SSE pursuant to Section 4.2(b) to the extent that SSE is liable for any portion of such Tax pursuant to Section 2.1. 

Furthermore, pursuant to Section 5.2(a), Chesapeake will be the Controlling Party with respect to any Tax Contest involving a Tax reported on
such Tax Return. However, SSE will have Non-Controlling Party participation rights pursuant to Section 5.2(c) with respect to such Tax Contest if such Tax Context could result in the increase of an SSE Tax Detriment or the reduction of an SSE Tax
Benefit. 
 Example 4. NOL Carryback by SSE. 

On its 2014 U.S. federal consolidated income Tax Return, the Chesapeake consolidated group reports $200x of consolidated net taxable income,
no credits, and a Tax liability of $70x (viz., (35%)($200x)). Of the $200x of consolidated net taxable income reported on such Tax Return, $190x consists of Tax Items that are deemed to arise from the operation or ownership of the Chesapeake
Business. The remaining $10x of consolidated net taxable income consists of Tax Items that are deemed to arise from the operation or ownership of the SSE Business. 

In addition, $150x of consolidated net taxable income and no credits arise from the operation or ownership of the SSE Business during the
period beginning on July 1, 2014, and ending on December 31, 2014, but, in 2015, a $150x net operating loss (“NOL”) arises from the operation or ownership of the SSE Business. 

  
 A-4 

 Under applicable Tax Law, SSE’s short Tax Year ending on the Spin-off Date will be
considered the same Tax Year as Chesapeake’s Tax Year ending on December 31, 2014 (and which includes SSE’s short Tax Year), but will be considered a different Tax Year from SSE’s short Tax Year that begins after the Spin-off
Date. Under applicable Tax Law, the carryback period for the NOL includes Chesapeake’s Tax Year ending on December 31, 2014 followed by SSE’s short Tax Year beginning July 1, 2014 and ending on December 31, 2014. Pursuant to
Section 3.3(c), SSE is not permitted to make the election under Section 172(b)(3) of the Code to relinquish the carryback period for the NOL. 

Under applicable Tax Law, the NOL would be carried back to Chesapeake’s 2014 Joint Return and Chesapeake generally would be entitled to
utilize that portion of the NOL equal to the net income generated by the SSE Group during the period SSE was considered a member of the Chesapeake consolidated group. See Treasury Regulations Sections 1.1502-21(c) and 1.1502-21(c)(1)(iii),
Example 3 (illustrating the SRLY limitations on NOL carrybacks from a separate return year to a consolidated return year). Pursuant to Section 2.1(b)(ii) and Section 2.2(a)(i), SSE would be entitled to take such portion of the NOL
into account in determining SSE Taxes for the 2014 Joint Return, but only to the extent that SSE would be allowed to take such portion into account under applicable Tax Law on a pro forma stand-alone basis for such Tax Year. Pursuant to Section
2.1(a)(iv), Chesapeake would be entitled to take the remaining portion of the NOL, as permitted under applicable Tax Law, into account in determining Chesapeake Taxes and would not be required to compensate SSE therefor. 

Any portion of the NOL that was not used on the 2014 Joint Return would be carried forward and utilized as a Tax Benefit by SSE on its 2014
Separate Return (assuming such use was permitted under applicable Tax Law). 
 Example 5. NOL Carryforward as a Tax Benefit on
Joint Return. 
 On its 2014 U.S. federal consolidated income Tax Return, and without taking into account any NOL carryforwards or NOL
carrybacks, the Chesapeake consolidated group reports $150x of consolidated net taxable income, no credits, and a Tax liability of $52.5x (viz., (35%)($150x)). All $150x of consolidated net taxable income reported on such Tax Return consists
of Tax Items that are deemed to arise from the operation or ownership of the Chesapeake Business. In addition, a $200x NOL arose from the operation or ownership of the SSE Business in 2013 and is carried forward to the 2014 Joint Return under
applicable Tax Law. 
 Pursuant to Section 2.1(a)(iv), Chesapeake is entitled to take the NOL carryforward into account as a Tax
Benefit in determining Chesapeake Taxes in 2014, and although the NOL arose from the operation or ownership of the SSE Business, Chesapeake will not be required to compensate SSE therefor. Thus, in 2014, Chesapeake will be obligated to pay Tax of
$0x (viz., (35%)($150x - $150x)) to the Tax Authority and $0x to SSE. 

  
 A-5 

 Under applicable Tax Law, any remaining NOL carryforward may be utilized only by Chesapeake
because such NOL arose while SSE was disregarded as separate from Chesapeake for U.S. federal income Tax purposes. Chesapeake will not be required to compensate SSE for the use of any such NOL carryforward. 

Example 6. Difference Between Tax Shown on Joint Return and Taxes Computed on a Pro Forma Stand-Alone Basis. 

On its 2014 U.S. federal consolidated income Tax Return, the Chesapeake consolidated group reports a total Tax liability of $100x. On a pro
forma stand-alone basis, Chesapeake Taxes would equal $90x, which Taxes would be composed of $70x of “regular tax” and $20x of “alternative minimum tax” imposed under Section 55 of the Code. On a pro forma stand-alone basis,
SSE Taxes would equal $30x, which Taxes would be composed of $30x of “regular tax” and no “alternative minimum tax.” 

Pursuant to Section 2.2(d), because the sum of Chesapeake Taxes and SSE Taxes (viz., $120x or ($90x + $30x)) is different from the
amount of Tax shown on such Joint Return (viz., $100x), the $100x of Tax shown on the Joint Return is allocated $75x (viz., ($100x)($90x/$120x)) to Chesapeake and $25x (viz., ($100x)($30x/$120x)) to SSE. 

Example 7. Average Tax Rate. 

On a 2014 Joint Return, Chesapeake reports $200x of net taxable income and no credits. Assume that, under applicable Tax Law, the first
$50x of net taxable income is subject to a Tax rate of 10%, the next $50x of net taxable income is subject to a Tax rate of 20%, and the remaining $100x of net taxable income is subject to a Tax rate of 25%. As a result, the Joint Return reports a
Tax liability of $40x (viz., (10%)($50x) + (20%)($50x) + (25%)($100x)). The average Tax rate on such Tax Return is 20% (viz., ($40x/$200x)). Accordingly, pursuant to Section 2.2(a)(iv), a 20% Tax rate applies for
purposes of computing Taxes on a pro forma stand-alone basis. 
 Example 8. Breach of Covenants. 

After taking gain under Section 357(c) into account, Chesapeake held the SSE stock with a fair market value of $300x and a basis of $0x
immediately before the Spin-off. In 2015, SSE enters into a merger whereby an acquiring corporation acquires all of the assets and liabilities of SSE and SSE’s shareholders receive stock in the acquiring corporation in exchange for all of their
stock in SSE. Assume that entering into the merger causes the Spin-off to be taxable to Chesapeake under Section 355(e). 
 As a result
of the application of Section 355(e), Chesapeake will be required to recognize all of the realized gain on the Spin-off. Accordingly, ignoring any available NOL, the Separation Transactions result in a net Tax liability of $140x (viz.,
(35%)($300x gain on the Spin-off) + (35%)($100x gain under Section 357(c)). 

  
 A-6 

 Pursuant to Section 2.1(b)(iii), all $105x of the Tax (viz., (35%)($300x)) resulting
from the application of Section 355(e) would be allocated to SSE because entering into the merger is a breach of covenant under Article VII that causes Section 355(e) to apply to the Spin-off. However, the $35x of Tax (viz.,
(35%)($100x)) resulting from the application of Section 357(c) to the Separation Transactions is not attributable to SSE’s breach and is therefore allocated to Chesapeake pursuant to Section 2.1(a)(iii). 

Pursuant to Section 4.2(b), SSE must remit the $105x of Taxes related to application of Section 355(e) to the Spin-off to Chesapeake
within thirty days after receiving written notification requesting such amount. Pursuant to Section 2.1(b)(ii) and (iv), the result would be the same even if an NOL exists that could offset any gain required to be recognized as a result of the
merger. Pursuant to Section 4.6, to the extent permitted by applicable Tax Law, the Parties must characterize SSE’s payment of $105x in the same manner as if it were a distribution to Chesapeake immediately prior to the Effective Time.
Section 4.6 also provides that SSE’s payment must be grossed up for any additional Taxes that may be owed by Chesapeake as a result of such payment. 

Example 9. Redetermination of Tax Detriments Allocated to Chesapeake. 

On its 2014 U.S. federal consolidated income Tax Return, the Chesapeake consolidated group reports no consolidated net taxable income, an NOL
of $100x, and no Tax liability. $50x of the NOL consists of Tax Items that are deemed to arise from the operation or ownership of the Chesapeake Business and the remaining $50x consists of Tax Items that are deemed to arise from the operation or
ownership of the SSE Business. Because no Tax is owed on the Joint Return, no payments are required to be made under this Agreement. 
 In
2016, the Tax Authority initiates a Tax Contest with respect to the 2014 Joint Return. In the Tax Contest, the Tax Authority asserts that an additional $100x of taxable income must be reported on the 2014 Joint Return. Such additional taxable income
arose from the Chesapeake Business. Pursuant to Section 5.2(a), Chesapeake is the Controlling Party with respect to the Tax Contest because it involves a Tax reported on a Tax Return for which Chesapeake is the Preparer. On December 31, 2016, a
date subsequent to the Spin-off Date, Chesapeake agrees to enter into a closing agreement with the Tax Authority and recognize $100x of additional taxable income in 2014 in settlement of the Tax Contest. 

As a result of the closing agreement, Section 4.3(b) requires that the amounts paid under this Agreement be redetermined. Under applicable Tax
Law and pursuant to Section 2.1(a)(ii) and Section 2.1(a)(iv), Chesapeake is entitled to use the $100x NOL as a Tax Benefit to completely offset the additional taxable income recognized as a result of the Tax Contest. Chesapeake is not required to
reimburse SSE for the use of the $50x portion of such NOL that arose from the operation or ownership of the SSE Business. 

  
 A-7 

 Example 10. Redetermination of Tax Detriments Allocated to SSE. 

On its 2013 U.S. federal consolidated income Tax Return, the Chesapeake consolidated group reports no consolidated net taxable income, an NOL
of $100x, and no Tax liability. $50x of the NOL consists of Tax Items that are deemed to arise from the operation or ownership of the Chesapeake Business and the remaining $50x consists of Tax Items that are deemed to arise from the operation or
ownership of the SSE Business. Because no Tax is owed on the Joint Return, no payments are required to be made under this Agreement. 
 In
2015, the Tax Authority initiates a Tax Contest with respect to the 2013 Joint Return. In the Tax Contest, the Tax Authority asserts that an additional $100x of taxable income must be reported on the 2013 Joint Return. Such income arose from the SSE
Business. Pursuant to Section 5.2(b), Chesapeake may, in its sole discretion, permit SSE to be the Controlling Party with respect to the Tax Contest. In such case, pursuant to Section 5.2(c), Chesapeake would have Non-Controlling Party participation
rights with respect to the Tax Contest because such Tax Contest may result in the reduction of a Chesapeake Tax Benefit. 
 On
December 31, 2015, a date subsequent to the Spin-off Date, SSE agrees, with Chesapeake’s consent, to enter into a closing agreement with the Tax Authority to recognize $100x of additional taxable income in 2013 in settlement of the Tax
Contest. 
 As a result of the closing agreement, Section 4.3(b) requires that the amounts paid under this Agreement be redetermined. Under
applicable Tax Law, SSE and Chesapeake are entitled to use the $100x NOL to completely offset the additional taxable income recognized as a result of the Tax Contest. Therefore, no additional Tax is owed as a result of the closing agreement.
Pursuant to Section 2.1(b)(ii) and Section 2.1(b)(iv), SSE is entitled to take the entire $100x NOL into account as a Tax Benefit in calculating SSE Taxes, which results in SSE Taxes of $0x (viz., $100x - $100x). SSE is not required to
reimburse Chesapeake for the use of the $50x portion of such NOL that arose from the operation or ownership of the Chesapeake Business. 

Alternatively, assume that the 2013 Joint Return did not report an NOL. As a result, the closing agreement results in $100x of consolidated
net taxable income, no credits, and a Tax liability of $35x (viz., (35%)($100x)). All $100x of the consolidated net taxable income consists of Tax Items that are deemed to arise from the operation or ownership of the SSE Business. Taking into
account such Tax Items on a pro forma stand-alone basis, SSE’s allocable portion of the $35x of Tax is $35x (viz., ($100x)(35%)). 

Pursuant to Section 4.1, Chesapeake must pay the $35x of Tax to the Tax Authority. Pursuant to Section 4.2(b), SSE must remit the
amount for which it is liable (viz., $35x) to Chesapeake within thirty days after receiving written notification requesting such amount. 

  
 A-8EX-10.6

 Exhibit 10.6 

FORM OF 
 EMPLOYEE
MATTERS AGREEMENT 
 between 

CHESAPEAKE ENERGY CORPORATION 

and 
 SEVENTY SEVEN
ENERGY INC. 
 dated as of 

June [    ], 2014 

 TABLE OF CONTENTS 

 
  

							
	 	 	 	  	PAGE	 
		
	 ARTICLE I DEFINITIONS
	  	 	1	  
			
	 Section 1.1
	 	Definitions	  	 	1	  
	 Section 1.2
	 	Interpretation	  	 	6	  
		
	 ARTICLE II ASSIGNMENT OF EMPLOYEES
	  	 	7	  
			
	 Section 2.1
	 	Active Employees	  	 	7	  
	 Section 2.2
	 	Former Employees	  	 	8	  
	 Section 2.3
	 	Employment Law Obligations	  	 	8	  
	 Section 2.4
	 	Employee Records	  	 	9	  
		
	 ARTICLE III EQUITY AND INCENTIVE COMPENSATION PLANS
	  	 	10	  
			
	 Section 3.1
	 	General Principles	  	 	10	  
	 Section 3.2
	 	Restricted Stock	  	 	11	  
	 Section 3.3
	 	Restricted Stock Units	  	 	12	  
	 Section 3.4
	 	Stock Options	  	 	13	  
	 Section 3.5
	 	CHK Performance Share Units	  	 	14	  
	 Section 3.6
	 	Section 16(b) of the Exchange Act; Code Sections 162(m) and 409A	  	 	15	  
	 Section 3.7
	 	Certain Bonus Payments	  	 	15	  
		
	 ARTICLE IV GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES
	  	 	15	  
			
	 Section 4.1
	 	General Principles	  	 	15	  
	 Section 4.2
	 	Sponsorship and/or Establishment of SSE Plans	  	 	17	  
	 Section 4.3
	 	Service Credit	  	 	17	  
	 Section 4.4
	 	Plan Administration	  	 	17	  
		
	 ARTICLE V THRIFT PLANS
	  	 	18	  
			
	 Section 5.1
	 	General Principles	  	 	18	  
	 Section 5.2
	 	Transfer of Accounts	  	 	18	  
	 Section 5.3
	 	Non-qualified Deferred Compensation Plan	  	 	19	  
		
	 ARTICLE VI WELFARE PLANS
	  	 	20	  
			
	 Section 6.1
	 	Establishment of SSE Welfare Plans	  	 	20	  
	 Section 6.2
	 	Transitional Matters Under SSE Welfare Plans	  	 	20	  
	 Section 6.3
	 	Continuity of Benefits, Benefit Elections and Beneficiary Designations	  	 	21	  
	 Section 6.4
	 	Insurance Contracts	  	 	22	  
	 Section 6.5
	 	Third-Party Vendors	  	 	22	  

  
 i 

							
	 ARTICLE VII WORKERS’ COMPENSATION AND UNEMPLOYMENT COMPENSATION
	  	 	22	  
		
	 ARTICLE VIII EMPLOYMENT AGREEMENTS, SEVERANCE AND OTHER MATTERS
	  	 	23	  
			
	 Section 8.1
	 	Employment Agreements	  	 	23	  
	 Section 8.2
	 	Severance	  	 	23	  
	 Section 8.3
	 	Accrued Time Off	  	 	23	  
	 Section 8.4
	 	Leaves of Absence	  	 	23	  
	 Section 8.5
	 	Restrictive Covenants in Employment and Other Agreements	  	 	23	  
		
	 ARTICLE IX GENERAL PROVISIONS
	  	 	24	  
			
	 Section 9.1
	 	Preservation of Rights to Amend	  	 	24	  
	 Section 9.2
	 	Confidentiality	  	 	24	  
	 Section 9.3
	 	Administrative Complaints/Litigation	  	 	24	  
	 Section 9.4
	 	Reimbursement and Indemnification	  	 	25	  
	 Section 9.5
	 	Costs of Compliance with Agreement	  	 	25	  
	 Section 9.6
	 	Fiduciary Matters	  	 	25	  
	 Section 9.7
	 	Form S-8	  	 	26	  
	 Section 9.8
	 	Entire Agreement	  	 	26	  
	 Section 9.9
	 	Binding Effect; No Third-Party Beneficiaries; Assignment	  	 	26	  
	 Section 9.10
	 	Amendment; Waivers	  	 	26	  
	 Section 9.11
	 	Remedies Cumulative	  	 	27	  
	 Section 9.12
	 	Notices	  	 	27	  
	 Section 9.13
	 	Counterparts	  	 	27	  
	 Section 9.14
	 	Severability	  	 	27	  
	 Section 9.15
	 	Governing Law	  	 	27	  
	 Section 9.16
	 	Performance	  	 	28	  
	 Section 9.17
	 	Construction	  	 	28	  
	 Section 9.18
	 	Effect if Distribution Does Not Occur	  	 	28	  

  
 ii 

 EMPLOYEE MATTERS AGREEMENT 

THIS EMPLOYEE MATTERS AGREEMENT (this “Agreement”) dated as of June [    ], 2014 is by and
between Chesapeake Energy Corporation., an Oklahoma corporation (“CHK”) and Seventy Seven Energy Inc., an Oklahoma corporation (“SSE”). CHK and SSE are sometimes referred to herein, individually, as a
“Party,” and, collectively, as the “Parties.” Capitalized terms used herein and not otherwise defined shall have the respective meanings ascribed to such terms in Article I hereof. 

RECITALS 
 WHEREAS, SSE is
an indirect, wholly-owned subsidiary of CHK; and 
 WHEREAS, the Board of Directors of CHK has determined that it would be appropriate and
in the best interests of CHK and its stockholders to effectuate the Distribution as described in the Master Separation Agreement between CHK and SSE dated as of [            ], 2014 (the
“Master Separation Agreement”); and 
 WHEREAS, the Master Separation Agreement provides, among other things,
subject to the terms and conditions thereof, for the Distribution and for the execution and delivery of certain other agreements, including this Agreement, in order to facilitate and provide for the separation of SSE and its subsidiaries from CHK;
and 
 WHEREAS, in order to ensure an orderly transition under the Master Separation Agreement, it will be necessary for the Parties to
allocate between them assets, liabilities and responsibilities with respect to certain employee compensation, benefit plans and programs, and certain employment matters. 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements herein contained, the Parties, intending to be
legally bound, agree as follows: 
 ARTICLE I 

DEFINITIONS 

Section 1.1 Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1.1:

 (a) “Adjusted CHK Performance Share Unit” has the meaning set forth in Section 3.5(a).

 (b) “Adjusted CHK RSA” has the meaning set forth in Section 3.2(b). 

(c) “Adjusted CHK RSU” has the meaning set forth in Section 3.3(b). 

(d) “Affiliate” means, with respect to any specified Person, any other Person that directly, or
indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the specified Person. For this purpose, “control” of a Person means the possession, directly or indirectly, of the power to direct
or cause the direction of the management or policies of such Person, whether through ownership of voting securities, by contract or otherwise. 

  
 1 

 (e) “Agreement” means this Employee Matters Agreement
together with all Schedules hereto and all amendments, modifications and changes hereto and thereto entered into in accordance with Section 9.10. 

(f) “Ancillary Agreements” has the meaning set forth in the Master Separation Agreement.

 (g) “CHK” has the meaning set forth in the preamble to this Agreement. 

(h) “CHK Common Stock” means the common stock of CHK, par value $0.01 per share. 

(i) “CHK Deferred Compensation Plan” means the Chesapeake Energy Corporation Amended and Restated
Deferred Compensation Plan. 
 (j) “CHK Director” means a member of the board of
directors of CHK as of the day after the Distribution Date. 
 (k) “CHK Employee” means
any individual who is employed by a member of the CHK Group on the Distribution Date and, only for purposes of Article III and any defined terms as used therein, as of the day after the Distribution Date. 

(l) “CHK Entity” means any member of the CHK Group. 

(m) “CHK 401(k) Plan” means the Chesapeake Energy Corporation Savings and Incentive Stock Bonus Plan.
 
 (n) “CHK 401(k) Plan Beneficiaries” has the meaning set forth in Section 5.1.

 (o) “CHK FSA” has the meaning set forth in Section 6.3(b). 

(p) “CHK Group” means, collectively, CHK and each CHK Subsidiary. 

(q) “CHK Legacy Award Holder” means any holder of one or more CHK RSAs, CHK RSUs, CHK Options or
performance-based equity awards under any of the CHK Legacy Equity Plans who will not be a CHK Employee or a SSE Employee (for purposes of Article III and any defined terms as used therein) and will not, as of the Distribution Date, be a CHK
Director or SSE Director. 
 (r) “CHK Legacy Equity Plan” means any equity plan sponsored
or maintained by CHK immediately prior to the Distribution Date, including each of those set forth on Schedule 1.1(r). 

(s) “CHK Option” means an option to purchase shares of CHK Common Stock granted pursuant to any of the
CHK Legacy Equity Plans. 

  
 2 

 (t) “CHK Performance Share Unit” mean a performance-based
unit issued under any of the CHK Legacy Equity Plans. 
 (u) “CHK RSA” means a restricted
stock award issued under any of the CHK Legacy Equity Plans. 
 (v) “CHK RSU” means a
restricted stock unit or deferred stock unit issued under any of the CHK Legacy Equity Plans that is not subject to performance conditions. 

(w) “CHK Subsidiary” means any Subsidiary of CHK as of the Distribution Date; provided, however, that, unless otherwise
expressly stated, no SSE Entity shall be considered a “CHK Subsidiary” for purposes of this Agreement. 
 (x)
“CHK Welfare Plan” means any Welfare Plan sponsored or maintained by any one or more members of the CHK Group on the Distribution Date, including each of those set forth on Schedule 1.1(x). 

(y) “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as codified at Part 6 of
Subtitle B of Title I of ERISA and at Code Section 4980B. 
 (z) “Code” means the
Internal Revenue Code of 1986, as amended. 
 (aa) “Confidential Information” has the
meaning set forth in the Master Separation Agreement. 
 (bb) “Distribution” has the
meaning set forth in the Master Separation Agreement. 
 (cc) “Distribution Date” has the
meaning set forth in the Master Separation Agreement. 
 (dd) “Distribution Ratio” means
the number of shares of SSE Common Stock to be distributed for each share of CHK Common Stock. 
 (ee)
“Employee” means any CHK Employee, Former CHK Employee, SSE Employee or Former SSE Employee. 

(ff) “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

(gg) “FMLA” means the Family and Medical Leave Act, as amended. 

(hh) “Former CHK Employee” has the meaning set forth in Section 2.2(b). 

(ii) “Former SSE Employee” has the meaning set forth in Section 2.2(c). 

(jj) “IRS” means the Internal Revenue Service. 

(kk) “Master Separation Agreement” has the meaning set forth in the recitals to this Agreement.

  
 3 

 (ll) “NYSE” means the New York Stock Exchange.

 (mm) “Participating SSE Employers” has the meaning set forth in Section 6.1.

 (nn) “Participation Period” has the meaning set forth in Section 6.3(b). 

(oo) “Party” or “Parties” has the meaning set forth in the preamble to this
Agreement. 
 (pp) “Person” means an individual, a partnership, a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint venture, a union, an unincorporated organization or a governmental entity or any department, agency or political subdivision thereof. 

(qq) “Post-Distribution CHK Option” has the meaning set forth in Section 3.4(b). 

(rr) “Post-Distribution CHK Share Price” means the volume-weighted average of the trading price on the
NYSE of a share of CHK Common Stock on the three trading days beginning on the next trading day following the Distribution Date. 

(ss) “Pre-Distribution CHK Share Price” means the volume-weighted average of the “regular way”
trading price on the NYSE of a share of CHK Common Stock on the three trading days ending on the Distribution Date. 

(tt) “Privacy Contract” means any contract entered into in connection with applicable privacy protection
laws or regulations. 
 (uu) “Record Date” means 5:00 p.m. New York City time on June
[    ], 2014. 
 (vv) “Registration Statement
Effectiveness Date” means the first date on which the registration statement on Form S-8 (or other appropriate form) contemplated by Section 9.7 shall be effective under the Securities Act of 1933. 

(ww) “Replacement SSE Option” has the meaning set forth in Section 3.4(a). 

(xx) “Replacement SSE RSA” has the meaning set forth in Section 3.2(a). 

(yy) “Replacement SSE RSU” has the meaning set forth in Section 3.3(a). 

(zz) “SSE” has the meaning set forth in the preamble to this Agreement. 

(aaa) “SSE Common Stock” means the common stock of SSE, par value
[$0.01] per share. 
 (bbb) “SSE Deferred Compensation
Plan” means a non-qualified deferred compensation plan adopted by SSE effective as of the Distribution Date. 

(ccc) “SSE Director” means a member of the board of directors of SSE as of the day after the Distribution
Date. 

  
 4 

 (ddd) “SSE Employee” means any individual who is employed
by a member of the SSE Group on the Distribution Date and, only for purposes of Article III and any defined terms as used therein, as of the day after the Distribution Date. 

(eee) “SSE Entity” means any member of the SSE Group (together with each current and former, direct or
indirect, subsidiary of any such member (and of any such former subsidiary)).  
 (fff) “SSE Equity
Plan” means the Seventy Seven Energy Inc. 2014 Incentive Plan adopted by SSE and approved by SSE’s sole stockholder prior to the Distribution under which the SSE equity-based awards described in Article III shall be issued. 

 (ggg) “SSE 401(k) Plan” means the Seventy Seven Energy Inc. Retirement and Savings Plan
adopted by SSE prior to the Distribution. 
 (hhh) “SSE 401(k) Plan Beneficiaries” has
the meaning set forth in Section 5.1.  
 (iii) “SSE FSA” has the meaning set forth
in Section 6.3(b). 
 (jjj) “SSE Group” means, collectively, SSE and each SSE
Subsidiary. 
 (kkk) “SSE Share Price” means the volume-weighted average of the trading
price on the NYSE of a share of SSE Common Stock on the six trading days beginning three trading days prior the Distribution Date, based on the “when-issued” trading price, and ending on the second trading day after the Distribution Date,
based on the “regular-way” trading price. 
 (lll) “SSE Subsidiary” means any
Subsidiary of SSE as of the Distribution Date. 
 (mmm) “SSE Welfare Plan” means any
Welfare Plan sponsored or maintained by any one or more members of the SSE Group on or after the Distribution Date, including each of those set forth on Schedule 1.1(mmm). 

(nnn) “SSE Welfare Plan Participants” has the meaning set forth in Section 6.1. 

(ooo) “Subsidiary” means, with respect to any specified Person, any corporation, partnership, limited
liability company, joint venture or other organization, whether incorporated or unincorporated, of which at least a majority of the securities or interests having by the terms thereof ordinary voting power to elect at least a majority of the board
of directors or others performing similar functions with respect to such corporation or other organization is directly or indirectly owned or controlled by such specified Person or by any one or more of its Subsidiaries, or by such specified Person
and one or more of its Subsidiaries. 
 (ppp) “WARN” means the Worker Adjustment and
Retraining Notification Act, and any applicable state or local law equivalent. 
 (qqq) “Welfare
Plan” means a “welfare plan” as defined in ERISA Section 3(1) and also means a cafeteria plan under Code Section 125 and any benefits offered thereunder, including pre-tax premium conversion benefits, a dependent
care assistance program, contribution funding toward a health savings account and flex or cashable credits. 

  
 5 

 Section 1.2 Interpretation. In this Agreement, unless the context clearly
indicates otherwise: 
 (a) words used in the singular include the plural and words used in the plural include the singular; 

(b) if a word or phrase is defined in this Agreement, its other grammatical forms, as used in this Agreement, shall have a corresponding
meaning; 
 (c) reference to any gender includes the other gender and the neuter; 

(d) the words “include,” “includes” and “including” shall be deemed to be followed by the words “without
limitation;” 
 (e) the words “shall” and “will” are used interchangeably and have the same meaning; 

(f) the word “or” shall have the inclusive meaning represented by the phrase “and/or;” 

(g) relative to the determination of any period of time, “from” means “from and including,” “to” means “to
but excluding” and “through” means “through and including;” 
 (h) all references to a specific time of day in this
Agreement shall be based upon Central Standard Time or Central Daylight Savings Time, as applicable, on the date in question; 
 (i) whenever
this Agreement refers to a number of days, such number shall refer to calendar days unless otherwise specified; 
 (j) accounting terms used
herein shall have the meanings historically ascribed to them by CHK and its Subsidiaries, including SSE for this purpose, in its and their internal accounting and financial policies and procedures in effect immediately prior to the date of this
Agreement; 
 (k) reference to any Article, Section or Schedule means such Article or Section of, or such Schedule to, this Agreement, as the
case may be, and references in any Section or definition to any clause means such clause of such Section or definition; 
 (l) the words
“this Agreement,” “herein,” “hereunder,” “hereof,” “hereto” and words of similar import shall be deemed references to this Agreement as a whole and not to any particular Section or other provision of
this Agreement; 
 (m) reference to any agreement, instrument or other document means such agreement, instrument or other document as
amended, supplemented and modified from time to time to the extent permitted by the provisions thereof and not prohibited by this Agreement; 

(n) reference to any “law” (including statutes and ordinances) means such Law (including any and all rules and regulations
promulgated thereunder) as amended, modified, codified or reenacted, in whole or in part, and in effect at the time of determining compliance or applicability; 

  
 6 

 (o) references to any Person include such Person’s successors and assigns but, if
applicable, only if such successors and assigns are permitted by this Agreement; and any reference to a third party shall be deemed to mean a Person who is not a Party or an Affiliate of a Party; 

(p) if there is any conflict between the provisions of the main body of this Agreement and the Schedules hereto, the provisions of the main
body of this Agreement shall control unless explicitly stated otherwise in such Schedule; 
 (q) unless otherwise specified in this
Agreement, all references to dollar amounts herein shall be in respect of lawful currency of the U.S.; 
 (r) the titles to Articles and
headings of Sections contained in this Agreement, in any Schedule and in the table of contents to this Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of or to affect the meaning or interpretation
of this Agreement; and 
 (s) any portion of this Agreement obligating a Party to take any action or refrain from taking any action, as the
case may be, shall mean that such Party shall also be obligated to cause its relevant Subsidiaries to take such action or refrain from taking such action, as the case may be. 

ARTICLE II 
 ASSIGNMENT
OF EMPLOYEES 
 Section 2.1 Active Employees. 

(a) SSE Employees. Except as otherwise set forth in this Agreement, effective as of the Distribution Date, the employment of the SSE
Employees shall be continued by a member of the SSE Group. Each of the Parties agrees to execute, and to seek to have the applicable employees execute, such documentation as may be necessary to reflect such assignments and transfers. 

(b) CHK Employees. Except as otherwise set forth in this Agreement, effective as of the Distribution Date, the employment of the CHK
Employees shall be continued by a member of the CHK Group. Each of the Parties agrees to execute, and to seek to have the applicable employees execute, such documentation as may be necessary to reflect such assignments and transfers. 

(c) At-Will Status. Notwithstanding the above or any other provision of this Agreement, nothing in this Agreement shall create any
obligation on the part of any member of the CHK Group or any member of the SSE Group to continue the employment of any employee for any period following the date of this Agreement or the Distribution or to change the employment status of any
employee from “at will,” to the extent such employee is an “at will” employee under applicable law. 

  
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 (d) Severance. The Distribution and the assignment, transfer or continuation of the
employment of employees as contemplated by this Section 2.1 shall not be deemed a severance of employment of any employee for purposes of this Agreement and any plan, policy, practice or arrangement of any member of the CHK Group or any member
of the SSE Group. 
 (e) Change of Control/Change in Control. Neither the completion of the Distribution nor any transaction in
connection with the Distribution shall be deemed a “change of control” or “change in control” for purposes of any plan, policy, practice or arrangement relating to directors, employees or consultants of any member of the CHK
Group or any member of the SSE Group. 
 Section 2.2 Former Employees. 

(a) General Principles. Except as otherwise provided in this Agreement, each former employee of any member of the CHK Group or any
member of the SSE Group as of the Distribution Date will be considered a former employee of the CHK Group or the SSE Group based on his employer as of his last day of employment with any CHK Entity or SSE Entity. 

(b) Former CHK Employees. For purposes of this Agreement, former employees of the CHK Group shall be deemed to include all employees
who, as of their last day of employment, were employed by a CHK Entity and will not be either a SSE Employee or a CHK Employee (collectively, the “Former CHK Employees”). 

(c) Former SSE Employees. For purposes of this Agreement, former employees of the SSE Group shall be deemed to include all employees
who, as of their last day of employment, were employed by a SSE Entity and will not be either a SSE Employee or a CHK Employee (collectively, the “Former SSE Employees”). 

Section 2.3 Employment Law Obligations. 

(a) WARN Act. After the Distribution Date, (i) CHK shall be responsible for providing any necessary WARN notice (and meeting any
similar state law notice requirements) with respect to any termination of any CHK Employee and (ii) SSE shall be responsible for providing any necessary WARN notice (and meeting any similar state law notice requirements) with respect to any
termination of any SSE Employee. 
 (b) Compliance With Employment Laws. On and after the Distribution Date, (i) each member of
the CHK Group shall be responsible for adopting and maintaining any policies or practices, and for all other actions and inactions, necessary to comply with employment-related laws and requirements relating to the employment of its CHK Employees and
the treatment of any applicable Former CHK Employees in respect of their former employment, and (ii) each member of the SSE Group shall be responsible for adopting and maintaining any policies or practices, and for all other actions and
inactions, necessary to comply with employment-related laws and requirements relating to the employment of its SSE Employees and the treatment of any applicable Former SSE Employees in respect of their former employment. 

  
 8 

 Section 2.4 Employee Records. 

(a) Records Relating to CHK Employees and Former CHK Employees. All records and data in any form relating to CHK Employees and Former
CHK Employees shall be the property of the CHK Group; provided, however that records and data pertaining to such an employee and relating to any period that such employee was (i) employed by any member of the SSE Group or (ii) covered
under any employee benefit plan sponsored by any member of the SSE Group (to the extent that such records or data relate to such coverage) prior to the Distribution Date shall be shared with appropriate members of the SSE Group by the CHK Group to
the extent such records are reasonably necessary for payroll or employee benefit plan purposes. 
 (b) Records Relating to SSE Employees
and Former SSE Employees. All records and data in any form relating to SSE Employees and Former SSE Employees shall be the property of the SSE Group; provided, however that records and data pertaining to such an employee and relating to any
period that such employee was (i) employed by any member of the CHK Group or (ii) covered under any employee benefit plan sponsored by any member of the CHK Group (to the extent that such records or data relate to such coverage) prior to
the Distribution Date shall be shared with appropriate members of the CHK Group by the SSE Group to the extent such records are reasonably necessary for payroll or employee benefit plan purposes. 

(c) Sharing of Records. The Parties shall use their respective commercially reasonable efforts to provide the other Parties, upon
request, such employee-related records and information as necessary or appropriate to carry out their respective obligations under applicable law (including any relevant privacy protection laws or regulations in any applicable jurisdictions or
Privacy Contract), this Agreement, any other Ancillary Agreement or the Master Separation Agreement, and for the purposes of administering their respective employee benefit plans and policies. All information and records regarding employment,
personnel and employee benefit matters provided to the other Parties shall be accessed, retained, held, used, copied and transmitted in accordance with all applicable laws, policies and Privacy Contracts relating to the collection, storage,
retention, use, transmittal, disclosure and destruction of such records by such receiving Parties. 
 (d) Access to Records. To the
extent not inconsistent with this Agreement and any applicable privacy protection laws or regulations or Privacy Contracts, access to such records, as described in this Section 2.4, after the Distribution Date will be provided to members of the
CHK Group and members of the SSE Group in accordance with the Master Separation Agreement. In addition, notwithstanding anything to the contrary, CHK shall be provided reasonable access to those records necessary for their administration of any
benefit plans, policies, arrangements or programs on behalf of CHK Employees and Former CHK Employees after the Distribution Date as permitted by any applicable privacy protection laws or regulations or Privacy Contracts. CHK shall also be permitted
to retain copies of all restrictive covenant agreements with any SSE Employee or Former SSE Employee in which any member of the CHK Group has a valid business interest. In addition, SSE shall be provided reasonable access to those records necessary
for their administration of any benefit plans, policies, arrangements or programs on behalf of SSE Employees and Former SSE Employees after the Distribution Date as permitted by any applicable privacy protection laws or regulations or Privacy
Contracts. SSE shall also be permitted to retain copies of all restrictive covenant agreements with any CHK Employee or Former CHK Employee in which any member of the SSE Group has a valid business interest. 

  
 9 

 (e) Maintenance of Records. With respect to retaining, destroying, transferring, sharing,
copying and permitting access to all such information, CHK and SSE shall (and shall cause their respective Subsidiaries to) comply with all applicable laws, regulations, Privacy Contracts and internal policies, and shall indemnify and hold harmless
each other from and against any and all liability, claims, actions, and damages that arise from a failure (by the indemnifying party or its Subsidiaries or their respective agents) to so comply with all applicable laws, regulations, Privacy
Contracts and internal policies applicable to such information. 
 (f) No Access to Computer Systems or Files. Except as set forth in
the Master Separation Agreement or any Ancillary Agreement, no provision of this Agreement shall give (i) any member of the CHK Group direct access to the computer systems or other files, records or databases of any member of the SSE Group or
(ii) any member of the SSE Group direct access to the computer systems or other files, records or databases of any member of the CHK Group, unless specifically permitted by the owner of such systems, files, records or databases. 

(g) Relation to Master Separation Agreement. The provisions of this Section 2.4 shall be in addition to, and not in derogation of,
the provisions of the Master Separation Agreement governing Confidential Information, including Sections [    ] of the Master Separation Agreement. 

(h) Confidentiality. Except as otherwise set forth in this Agreement, all records and data relating to Employees shall, in each case, be
subject to the confidentiality provisions of the Master Separation Agreement and any other applicable agreement and applicable law. 
 (i)
Cooperation. Each Party shall use commercially reasonable efforts to cooperate to share, retain and maintain data and records that are necessary or appropriate to further the purposes of this Section 2.4 and for each Party to administer
its respective benefit plans, policies, arrangements or programs to the extent consistent with this Agreement and applicable law, and each Party agrees to cooperate as long as is reasonably necessary to further the purposes of this Section 2.4.
Except as provided under any Ancillary Agreement, no Party shall charge another Party a fee for such cooperation. 
 ARTICLE III 

EQUITY AND INCENTIVE COMPENSATION PLANS 

Section 3.1 General Principles. 

(a) For the avoidance of doubt, the provisions of this Article III shall not apply unless the Distribution and approval by the appropriate
administrators of the applicable plans takes place. CHK and SSE shall take any and all reasonable action as shall be necessary and appropriate to further the provisions of this Article III. 

  
 10 

 (b) Where an award granted under one of the CHK Legacy Equity Plans is replaced by an award under
the SSE Equity Plan in accordance with the provisions of this Article III, such award generally shall be on terms which are in all material respects identical to the terms of the award which it replaces (including any requirements of continued
employment) but subject to any necessary changes to take into account that (i) the award relates to SSE Common Stock, (ii) the SSE Equity Plan is administered by SSE, and (iii) if applicable, the grantee under the award is employed or
affiliated with a new employer or plan sponsor. 
 (c) Following the Distribution, a grantee who has outstanding awards that are replaced
with awards under the SSE Equity Plan (as described in Section 3.1(b) above) shall be considered to have been employed by the applicable plan sponsor before and after the Distribution for purposes of (1) vesting and (2) determining
the date of termination of employment as it applies to any such replacement awards under the SSE Equity Plan. Following the Distribution, service as an employee with SSE will be deemed services to CHK with respect to CHK Performance Share Units held
by SSE Employees immediately after the Distribution Date. 
 (d) No award described in this Article III, whether outstanding or to be issued,
adjusted, substituted or cancelled by reason of or in connection with the Distribution, shall be adjusted, settled, cancelled, or exercisable, until in the judgment of the administrator of the applicable plan or program such action is consistent
with all applicable law, including federal securities laws and the adjustment, settlement, cancellation or exercisability is in a manner consistent with Section 409A of the Code or other applicable law. Any period of exercisability will not be
extended on account of a period during which such an award is not exercisable in accordance with the preceding sentence. 
 Section 3.2
Restricted Stock. 
 (a) Each unvested CHK RSA (that will not become vested as of the Distribution Date) under any of
the CHK Legacy Equity Plans held by a SSE Employee as of the Distribution Date shall receive, effective as of the last to occur of the Distribution Date and the Registration Statement Effectiveness Date, a replacement award in substitution for each
such CHK RSA (which shall be cancelled) for a number of shares of restricted SSE Common Stock under the SSE Equity Plan (each a “Replacement SSE RSA”) having a value (calculated using the SSE Share Price) equal to the value
of the restricted CHK common stock subject to the CHK RSA (calculated using the Pre-Distribution CHK Share Price) and the value of the SSE Common Stock dividend (calculated using the SSE Share Price). In each case the number of restricted shares of
SSE common stock under the Replacement SSE RSA shall be equal to the result of ((X) multiplied by (Y)) divided by (Z), where “X” is equal to the Pre-Distribution CHK
Share Price, “Y” is equal to (A) plus (B), where “A” is equal to the result of (i) the number of restricted shares of CHK Common Stock subject to the CHK RSA being cancelled and
replaced pursuant to this Section 3.2(a), multiplied by (ii) the Distribution Ratio multiplied by (iii) the SSE Share Price, the product of (i)-(iii) is then
divided by the Post-Distribution CHK Share Price and “B” is the number of restricted shares of CHK Common Stock subject to the CHK RSA being cancelled and replaced pursuant to this Section 3.2(a) and
“Z” is the SSE Share Price, with the resulting number being rounded down to the nearest whole share. SSE (or one or more of the SSE Subsidiaries, as designated by SSE) shall be responsible for (i) the satisfaction of all tax reporting
and withholding requirements in respect of the Replacement SSE RSAs and (ii) responsible for remitting the appropriate tax or withholding amounts to the appropriate taxing authorities in respect of the distribution and vesting of all such
restricted shares. Except as  

  
 11 

 
provided in the foregoing provisions of this Section 3.2(a), each Replacement SSE RSA shall retain terms which are in all material respects identical (including with respect to vesting) to
the terms of the original award of the corresponding CHK RSAs that was replaced by the Replacement SSE RSAs. 
 (b) Each
unvested CHK RSA (that will not become vested as of the Distribution Date) under any of the CHK Legacy Equity Plans held by a CHK Employee or CHK Director as of the Distribution Date shall be adjusted, effective as of the last to occur of the
Distribution Date and the Registration Statement Effectiveness Date, under one of the CHK Legacy Equity Plans (in lieu of receiving any SSE Common Stock with respect to such RSA) (each an “Adjusted CHK RSA”). In each case the
number of restricted shares of CHK common stock under the Adjusted CHK RSAs shall be equal the result of (X) divided by (Y), where “X” is (i) the number of restricted shares of CHK Common Stock
subject to the CHK RSA multiplied by (ii) the Distribution Ratio multiplied by (iii) the SSE Share Price and “Y” is equal to the Post-Distribution CHK Share
Price, with the resulting number being rounded down to the nearest whole share. CHK (or one or more of the CHK Subsidiaries, as designated by CHK) shall be responsible for (i) the satisfaction of all tax reporting and withholding requirements
in respect of the Adjusted CHK RSAs and (ii) responsible for remitting the appropriate tax or withholding amounts to the appropriate taxing authorities in respect of the distribution and vesting of all such restricted shares. Except as provided
in the foregoing provisions of this Section 3.2(b), each Adjusted CHK RSA shall retain terms which are in all material respects identical (including with respect to vesting) to the terms of the original award of the corresponding CHK RSAs.
Adjusted CHK RSAs are in addition to and not in lieu of the original award of the CHK RSAs.  
 Section 3.3 Restricted
Stock Units.  
 (a) Each unvested CHK RSU (that will not become vested as of the Distribution Date) under any of the CHK Legacy
Equity Plans held by a SSE Employee as of the Distribution Date shall receive, effective as of the last to occur of the Distribution Date and the Registration Statement Effectiveness Date, a replacement award in substitution for each such CHK RSU
(which shall be cancelled) for a SSE RSU under the SSE Equity Plan (each a “Replacement SSE RSU”) having a value (calculated using the SSE Share Price) equal to the value of the CHK RSU (calculated using the Pre-Distribution
CHK Share Price) and the value of the SSE Common Stock dividend (calculated using the SSE Share Price). In each case the number of restricted stock units with respect to and payable in shares of SSE Common Stock or (if, but only if, provided for
under the terms of the applicable CHK RSU) cash under the Replacement SSE RSU shall be equal to the result of ((X) multiplied by (Y)) divided by (Z), where “X” is equal to the Pre-Distribution CHK Share Price, “Y”
is equal to (A) plus (B), where “A” is equal to the result of (i) the number of restricted shares of CHK Common Stock subject to the CHK RSU being cancelled and replaced pursuant to this Section 3.3(a), multiplied
by (ii) the Distribution Ratio multiplied by (iii) the SSE Share Price, the product of (i)-(iii) is then divided by the Post-Distribution CHK Share Price and “B” is the number of restricted shares of CHK
Common Stock subject to the CHK RSU being cancelled and replaced pursuant to this Section 3.3(a) and “Z” is the SSE Share Price, with the resulting number being rounded down to the nearest whole unit. SSE (or one or more of the SSE
Subsidiaries, as designated by SSE) shall be responsible for (i) the satisfaction of all tax reporting and withholding requirements in respect of the Replacement SSE RSUs and (ii) remitting the appropriate tax or withholding amounts to the
appropriate taxing 

  
 12 

 
authorities in respect of the distribution and vesting of all such restricted stock units. Except as provided in the foregoing provisions of this Section 3.3(a), each Replacement SSE RSU
shall retain terms which are in all material respects identical (including with respect to vesting) to the terms of the original award of the corresponding CHK RSUs that was replaced by the Replacement SSE RSUs. 

(b) Each unvested CHK RSU (that will not become vested as of the Distribution Date) under any of the CHK Legacy Equity Plans
held by a CHK Employee or Director as of the Distribution Date shall be adjusted, effective as of the last to occur of the Distribution Date and the Registration Statement Effectiveness Date, under one of the CHK Legacy Equity Plans (in lieu of
receiving any SSE Common Stock under the CHK RSU) (each an “Adjusted CHK RSU”). In each case the number of Adjusted CHK RSUs shall be equal to the result of (X) divided by (Y), where
“X” is (i) the number of units subject to the CHK RSUs multiplied by (ii) the Distribution Ratio multiplied by (iii) the SSE Share Price and “Y”
is equal to the Post-Distribution CHK Share Price, with the resulting number being rounded down to the nearest whole unit. CHK (or one or more of the CHK Subsidiaries, as designated by CHK) shall be responsible for (i) the satisfaction of all
tax reporting and withholding requirements in respect of the vesting of the Adjusted CHK RSUs or distribution of CHK Common Stock to CHK Employees and (ii) remitting the appropriate tax or withholding amounts to the appropriate taxing
authorities in respect of the distribution and vesting of all such restricted stock units. Except as provided in the foregoing provisions of this Section 3.3(b), each Adjusted CHK RSU shall retain terms which are in all material respects
identical (including with respect to vesting) to the terms of the original award of corresponding CHK RSUs. Adjusted CHK RSUs are in addition to and not in lieu of the original award of the CHK RSUs. 

Section 3.4 Stock Options. 

(a) Each grantee under any of the CHK Legacy Equity Plans (i) who will be a SSE Employee and (ii) who holds as of the Distribution
Date, one or more CHK Options, shall receive, effective as of the last to occur of the Distribution Date and the Registration Statement Effectiveness Date, as a replacement award in substitution for each such CHK Option (which shall be cancelled),
an option to purchase a number of shares of SSE Common Stock under the SSE Equity Plan (each a “Replacement SSE Option”) having a value (calculated using the SSE Share Price) equal to the value of the CHK Common Stock subject
to the CHK Option (calculated using the Pre-Distribution CHK Share Price). The number of shares of SSE Common Stock subject to a Replacement SSE Option shall be equal to the product of (i) the number of shares of CHK Common Stock subject to a
CHK Option as of the Distribution Date multiplied by (ii) a fraction, the numerator of which is the Pre-Distribution CHK Share Price and the denominator of which is the SSE Share Price, with the resulting number being rounded down to the
nearest whole share. Each such Replacement SSE Option shall have the same comparative ratio of the exercise price to the SSE Share Price as the exercise price of each CHK Option to the Pre-Distribution CHK
Share Price as provided under Code Section 424 and the applicable regulations thereunder. SSE shall be responsible for (i) the satisfaction of all tax reporting and withholding requirements in respect of the exercise of Replacement SSE
Options issued in accordance with this Section 3.4(a) and (ii) remitting the appropriate tax or withholding amounts to the appropriate taxing authorities. Replacement SSE Options shall not be exercisable until the Registration Statement
Effectiveness Date. Except as provided in the foregoing provisions of this Section 3.4(a), Replacement SSE Options granted under this Section 3.4(a) shall be granted on terms which are in all material respects identical (including with
respect to vesting) to the terms of the CHK Options with respect to which they replace. 

  
 13 

 (b) Each grantee under any of the CHK Legacy Equity Plans (i) who is a CHK
Legacy Award Holder, will be a CHK Employee or CHK Director and (ii) who will hold one or more CHK Options as of the Distribution Date, shall receive, effective as of the last to occur of the Distribution Date and the Registration Statement
Effectiveness Date, in substitution for each such CHK Option (which shall be cancelled), an option to purchase shares of CHK Common Stock under one of the CHK Legacy Equity Plans (each a “Post-Distribution CHK Option”) having
a value (calculated using the Post-Distribution CHK Share Price) equal to the value of the shares of CHK Common Stock subject to the CHK Option (calculated using the SSE Share Price). The number of shares of
CHK Common Stock subject to a Post-Distribution CHK Option shall be equal to the product of (i) the number of shares of CHK Common Stock subject to a CHK Option as of the Distribution Date multiplied by
(ii) a fraction, the numerator of which is the Pre-Distribution CHK Share Price and the denominator of which is the Post-Distribution CHK Share Price, with the resulting number being rounded down to the nearest whole share. Each such
Post-Distribution CHK Option shall have the same comparative ratio of the exercise price to the Post-Distribution CHK Share Price as the exercise price of each CHK Option to the Pre-Distribution CHK Share
Price as provided under Code Section 424 and the applicable regulations thereunder. CHK (or one or more of the CHK Subsidiaries, as designated by CHK) shall be responsible for (i) the satisfaction of all tax reporting and withholding
requirements in respect of the exercise of Post-Distribution CHK Options issued in accordance with this Section 3.4(b) and (ii) remitting the appropriate tax or withholding amounts to the appropriate taxing authorities. Except as provided
in the foregoing provisions of this Section 3.4(b), Post-Distribution CHK Options shall be granted on terms which are in all material respects identical (including with respect to vesting) to the terms of the CHK Options with respect to which
they are substituted. 
 Section 3.5 CHK Performance Share Units. Each
unvested CHK Performance Share Unit (that will not become vested as of the Distribution Date) under any of the CHK Legacy Equity Plans as of the Distribution Date shall be adjusted, on the last to occur of the Distribution Date and the Registration
Statement Effectiveness Date, under one of the CHK Legacy Equity Plans (in lieu of receiving any SSE Common Stock under the CHK Performance Share Unit) (each an “Adjusted CHK Performance Share Unit”). In each case the target
number of Adjusted CHK Performance Share Units is equal to the result of (X) divided by (Y), where “X” is (i) the number of target units subject to the Adjusted CHK Performance Share Units
multiplied by (ii) the Distribution Ratio multiplied by (iii) the SSE Share Price and “Y” is equal to the Post-Distribution CHK Share Price, with the resulting
number being rounded down to the nearest whole unit. CHK (or one or more of the CHK Subsidiaries, as designated by CHK) shall be responsible for (i) the satisfaction of all tax reporting and withholding requirements in respect of the vesting of
the Adjusted CHK Performance Share Units or distribution of CHK Common Stock and (ii) remitting the appropriate tax or withholding amounts to the appropriate taxing authorities in respect of the distribution and vesting of all such restricted
stock units. Except as provided in the foregoing provisions of this Section 3.5, Adjusted CHK Performance Share Units shall retain terms which are in all material respects identical (including with respect to vesting) to the terms of the
original award of CHK Performance Share Units. Adjusted CHK Performance Share Units are in addition to and not in lieu of the original award of the CHK Performance Share Units. 

  
 14 

 Section 3.6 Section 16(b) of the Exchange Act; Code Sections 162(m) and 409A.
 
 (a) By approving the adoption of this Agreement, the respective boards of directors of CHK and SSE intend to exempt from the
short-swing profit recovery provisions of Section 16(b) of the Exchange Act, by reason of the application of Rule 16b–3 thereunder, all acquisitions and dispositions of equity incentive awards by directors and executive officers of each of
CHK and SSE, and the respective boards of directors of CHK and SSE also intend to expressly approve, in respect of any equity-based award, the use of any method for the payment of an exercise price and the satisfaction of any applicable tax
withholding (specifically including the actual or constructive tendering of shares in payment of an exercise price and the withholding of option shares from delivery in satisfaction of applicable tax withholding requirements) to the extent such
method is permitted under the applicable equity incentive plan and award agreement. 
 (b) Notwithstanding anything in this Agreement to the
contrary, CHK and SSE agree to negotiate in good faith regarding the need for any treatment different from that otherwise provided herein to ensure that (i) a federal income tax deduction for the payment of any annual incentive or
long–term incentive award, or other compensation is not limited by reason of Code Section 162(m), and (ii) the treatment of such annual incentive or long–term incentive award, or other compensation does not cause the imposition
of a tax under Code Section 409A. 
 Section 3.7 Certain Bonus Payments. SSE shall assume responsibility for the
grant of 2014 bonuses and liability for payment of bonuses for all SSE Employees earned under the CHK annual bonus plan, including any transition bonuses for SSE Employees. The 2014 annual incentive plan bonus opportunity of Jerry L. Winchester
under the CHK annual bonus plan shall be cancelled, and SSE or a member of the SSE Group shall be responsible for payment of the 2014 annual bonus to such individual under a plan or arrangement maintained by SSE or a member of the SSE Group.

 ARTICLE IV 

GENERAL PRINCIPLES FOR ALLOCATION OF LIABILITIES 

Section 4.1 General Principles. 

(a) Each member of the CHK Group and each member of the SSE Group shall take any and all reasonable action as shall be necessary or appropriate
so that active participation in the CHK 401(k) Plan, CHK Deferred Compensation Plan and CHK Welfare Plans by all SSE Employees and Former SSE Employees shall terminate in connection with the Distribution effective as of 11:59 p.m. on the
Distribution Date, and each member of the SSE Group shall cease to be a participating employer under the terms of such CHK 401(k) Plan, CHK Deferred Compensation Plan and CHK Welfare Plans as of such time. Except as otherwise provided in this
Agreement, one or more members of the SSE Group (as designated by SSE) shall continue to be responsible for or assume, effective as of the Distribution Date, all employee benefits liabilities for SSE Employees and Former SSE Employees, and the
assets relating to such employee benefits for SSE Employees and Former SSE Employees shall be transferred to or 

  
 15 

 
continue to be held by one or more members of the SSE Group (as designated by SSE); and one or more members of the CHK Group (as designated by CHK) shall continue to be responsible for or assume
all employee benefits liabilities for CHK Employees and Former CHK Employees and the assets relating to such employee benefits for CHK Employees and Former CHK Employees shall be transferred to or continue to be held by one or more members of the
CHK Group (as designated by CHK). 
 (b) Except as otherwise provided in this Agreement, effective as of the day after the Distribution Date,
one or more members of the SSE Group (as determined by SSE) shall assume or continue the sponsorship of, and no member of the CHK Group shall have any further liability for or under, the following agreements, obligations and liabilities, and SSE
shall indemnify each member of the CHK Group, and the officers, directors, and employees of each member of the CHK Group, and hold them harmless with respect to such agreements, obligations or liabilities: 

(i) any and all individual agreements entered into between any member of the CHK Group and any SSE Employee or Former SSE
Employee; 
 (ii) any and all agreements entered into between any member of the CHK Group and any individual who is an
independent contractor providing services primarily for the business activities of the SSE Group; 
 (iii) any and all wages,
salaries, incentive compensation (as the same may be modified by this Agreement), commissions and bonuses payable to any SSE Employees or Former SSE Employees after the Distribution Date, without regard to when such wages, salaries, incentive
compensation, commissions and bonuses are or may have been earned; 
 (iv) any and all moving expenses and obligations
related to relocation, repatriation, transfers or similar items incurred by or owed to any SSE Employees or Former SSE Employees, whether or not accrued as of the Distribution Date (other than such expenses and obligations incurred by CHK on or
prior to the Distribution Date as a result of which there is an existing liability as of the Distribution Date); 
 (v) any
and all immigration-related, visa, work application or similar rights, obligations and liabilities related to any SSE Employees or Former SSE Employees; and 

(vi) any and all liabilities and obligations whatsoever with respect to claims made by or with respect to any SSE Employees or
Former SSE Employees in connection with any employee benefit plan, program or policy not otherwise retained or assumed by any member of the CHK Group pursuant to this Agreement, including such liabilities relating to actions or omissions of or by
any member of the SSE Group or any officer, director, employee or agent thereof on or prior to the Distribution Date. 
 (c) Except as
otherwise provided in this Agreement, effective as of the day after the Distribution Date, no member of the SSE Group shall have any further liability for, and CHK shall indemnify each member of the SSE Group, and the officers, directors, and
employees of each member of the SSE Group, and hold them harmless with respect to any and all liabilities and obligations whatsoever with respect to, claims made by or with respect to any CHK 

  
 16 

 
Employees or Former CHK Employees in connection with any employee benefit plan, program or policy not otherwise retained or assumed by any member of the SSE Group pursuant to this Agreement,
including such liabilities relating to actions or omissions of or by any member of the CHK Group or any officer, director, employee or agent thereof on or prior to the Distribution Date. 

(d) This Agreement is not intended and shall not create any third party rights or provide any SSE Employee, Former SSE Employee, CHK Employee
or Former CHK Employee (or any beneficiary or dependent thereof) with any rights to any specific benefits or, in the case of active employees, continued employment. 

Section 4.2 Sponsorship and/or Establishment of SSE Plans. Except as otherwise provided in this Agreement, sponsorship of
benefit plans that cover solely SSE Employees, and to the extent applicable, Former SSE Employees shall become effective on or before the Distribution Date by the member of the SSE Group as identified in this Agreement, and to the extent necessary
to achieve such sponsorship, each member of the CHK Group and each member of the SSE Group shall take appropriate action, including transfer of sponsorship of each such plan. 

Section 4.3 Service Credit.  

(a) Service for Eligibility and Vesting Purposes. Except as otherwise provided in any other provision of this Agreement, for purposes of
eligibility and vesting under the SSE 401(k) Plan and SSE Welfare Plans, SSE shall, and shall cause each member of the SSE Group to, credit each SSE Employee and Former SSE Employee with service for any period of employment with any member of the
CHK Group on or prior to the Distribution Date to the same extent such service would be credited for the same purpose if it had been performed for a member of the SSE Group. 

(b) Service for Benefit Purposes. Except as otherwise provided in any other provision of this Agreement, (i) for purposes of
benefit levels and accruals and benefit commencement entitlements under the SSE 401(k) Plan and SSE Welfare Plans, SSE shall, and shall cause each member of the SSE Group to, credit each SSE Employee and Former SSE Employee with service for any
period of employment with any member of the CHK Group on or prior to the Distribution Date to the same extent that such service is taken into account for the same purpose pursuant to the terms of the CHK 401(k) Plan and CHK Welfare Plans. 

(c) Evidence of Prior Service. Notwithstanding anything to the contrary, but subject to applicable law, upon reasonable request by one
Party to the other Party, the first Party will provide to the other Party information relating to and confirming service for purposes of seniority (or seniority date) and service date for such Employees for purposes of determining benefit
eligibility, participation, vesting and calculation of benefits with respect to any Employee. 
 Section 4.4 Plan
Administration. 
 (a) Transition Services. The Parties acknowledge that the CHK Group may provide administrative services for
certain of the SSE Group’s benefit programs for a transitional period under the terms of an applicable transition services agreement. The Parties agree to enter into a business associate agreement (if required by applicable health information
privacy laws) in connection with such transition services agreement. 

  
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 (b) Administration. SSE shall use commercially reasonable efforts to, and shall cause each
member of the SSE Group to use commercially reasonable efforts to, administer its benefit plans in a manner that does not jeopardize the tax-favored status of the tax-favored benefit plans maintained by any member of the CHK Group. CHK shall use
commercially reasonable efforts to, and shall cause each member of the CHK Group to use commercially reasonable efforts to, administer its benefit plans in a manner that does not jeopardize the tax-favored status of the tax-favored benefit plans
maintained by any member of the SSE Group. 
 (c) Participant Elections and Beneficiary Designations. All participant elections and
beneficiary designations made under any plan sponsored by a member of the CHK Group prior to the effective date as of which assets or liabilities relating to that plan are transferred or allocated to a member of the SSE Group shall continue in
effect under any plan maintained by any member of the SSE Group to which liabilities are transferred or allocated pursuant to this Agreement until such time as any applicable participant changes his elections or beneficiary designations in
accordance with the procedures of the relevant plan, as the case may be, including deferral, investment, and payment form elections, dividend elections, coverage options and levels, beneficiary designations and the rights of alternate payees under
qualified domestic relations orders. 
 ARTICLE V 

THRIFT PLANS 

Section 5.1 General Principles. Effective on or before the Distribution Date, Seventy Seven Operating, LLC (or another member of
the SSE Group) shall establish and adopt a qualified employee cash or deferred arrangement under Code Section 401(k) (the “SSE 401(k) Plan”) intended to be qualified under Code Section 401(a) and containing
provisions that will provide, among other things, benefits for each SSE Employee and Former SSE Employee who was a participant (or former participant with a remaining account balance) in the CHK 401(k) Plan as of the Distribution Date (and each
beneficiary and alternate payee of such person) (the “SSE 401(k) Plan Beneficiaries”) substantially the same in all material respects provided that no reduction in accrued benefits results (except as provided in this Article
VI) to those in effect for the SSE 401(k) Plan Beneficiaries under the CHK 401(k) Plan as of the date of transfer of assets and liabilities with respect to such plan (as described below). Each SSE Employee who was an active participant in the CHK
401(k) Plan on the Distribution Date shall participate in the SSE 401(k) Plan effective from and after the Distribution Date. SSE Employees and Former SSE Employees shall not make or receive additional contributions under the CHK 401(k) Plan after
the Distribution Date. A CHK Employee or Former CHK Employee shall not participate in the SSE 401(k) Plan. 
 Section 5.2
Transfer of Accounts. On or as soon as practicable after the Distribution Date, CHK shall cause to be transferred from the trust under the CHK 401(k) Plan to the trust under the SSE 401(k) Plan the aggregate amount that was credited to the
accounts of the SSE 401(k) Plan Beneficiaries as of such transfer date. The transfer shall, to the extent reasonably  

  
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possible, be an in-kind transfer, subject to the reasonable consent of the trustee of the SSE 401(k) Plan trust and shall include the transfer of the aggregate assets held in the accounts
relating to each SSE 401(k) Plan Beneficiary under the CHK 401(k) Plan and any participant loan notes held under such plans. 

Section 5.3 Non-qualified Deferred Compensation Plan.  

(a) Deferred Compensation Plan. As of the Distribution Date, SSE shall establish the SSE Deferred Compensation Plan as mirror plan of
the CHK Deferred Compensation Plan. The liabilities attributable to SSE Employees and Former SSE Employees in the CHK Deferred Compensation Plan shall be assumed by a member of the SSE Group which sponsors the SSE Deferred Compensation Plan,
effective as of the Distribution Date. Each member of the SSE Group shall cease to be a participating employer in the CHK Deferred Compensation Plan, and the SSE Employees and the Former SSE Employees shall no longer participate in the CHK Deferred
Compensation Plan effective as of the Distribution Date. 
 (b) Transfer of Assets. On or as soon as practicable after the
Distribution Date, CHK shall cause to be transferred from the trust under the CHK Deferred Compensation Plan to a trust under the SSE Deferred Compensation Plan the aggregate amount that was credited to the accounts of the SSE Employees and Former
SSE Employees under the CHK Deferred Compensation Plan (or accrued with respect to such persons) for periods prior to the transfer date. The transfer shall, to the extent reasonably possible, be an in-kind transfer, subject to the reasonable consent
of the trustee of the SSE Deferred Compensation Plan trust and shall include the transfer of the aggregate assets held in the accounts relating to each SSE Employee and Former SSE Employees (or accrued with respect to such persons) under the CHK
Deferred Compensation Plan. 
 (c) Liability and Responsibility. SSE shall have sole responsibility for the administration of the SSE
Deferred Compensation Plan and the payment of benefits thereunder to or on behalf of SSE Employees and Former SSE Employees, and no member of the CHK Group shall have any liability or responsibility therefor. CHK shall have sole responsibility for
the administration of the CHK Deferred Compensation Plan and the payment of benefits thereunder to or on behalf of CHK Employees and Former CHK Employees, and no member of the SSE Group shall have any liability or responsibility therefor. 

Section 5.4 Third-Party Vendors. Except as provided below, to the extent the CHK 401(k) Plan and/or the CHK Deferred
Compensation Plan is administered by a third-party vendor, CHK and SSE will cooperate and use their commercially reasonable efforts to replicate any contract with such third-party vendor for SSE and to maintain any pricing discounts or other
preferential terms for both CHK and SSE for a reasonable term with respect to such vendors. Neither Party shall be liable for failure to obtain such pricing discounts or other preferential terms for the other Party with respect to any third-party
vendors. Each Party shall be responsible for any additional charges or administrative fees that such Party may incur pursuant to this Section 5.4. 

  
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 ARTICLE VI 

WELFARE PLANS 

Section 6.1 Establishment of SSE Welfare Plans. Except as provided below, the members of the SSE Group who had previously adopted
a CHK Welfare Plan and were participating employers therein on the Distribution Date (“Participating SSE Employers”) shall on or before 11:59 p.m. on that date, withdraw from such participation, and, effective on or after the
Distribution Date, Seventy Seven Operating, LLC and/or the Participating SSE Employers (with Seventy Seven Operating, LLC included in the definition of Participating SSE Employers for purposes of this Article VI) shall assume sponsorship, under
newly established welfare plans, of the coverage and benefits which were offered under such plans to the SSE Employees and the Former SSE Employees (and their eligible spouses and dependents as the case may be) of the Participating SSE Employers
(collectively, the “SSE Welfare Plan Participants”). The appropriate SSE Entity shall ensure that such coverage and benefits are provided to the SSE Welfare Plan Participants on an uninterrupted basis. Except as provided
below, effective as soon as possible after the Distribution Date, liabilities relating to the SSE Welfare Plan Participants shall be spun off from each CHK Welfare Plan and allocated to the corresponding new SSE Welfare Plan. 

As a result of withdrawal from participation in the CHK Welfare Plans by the Participating SSE Employers, the SSE Welfare Plan Participants
ceased to be eligible for coverage as an active employee under the CHK Welfare Plans at 11:59 p.m. on the Distribution Date. SSE Welfare Plan Participants shall not participate in any CHK Welfare Plans after the effective date of the SSE Welfare
Plans. 
 Section 6.2 Transitional Matters Under SSE Welfare Plans. 

(a) Treatment of Claims Incurred. 

(i) Self-Insured Benefits. SSE has assumed and is responsible for the funding of
payment for any unpaid covered claim and eligible expense incurred by any SSE Welfare Plan Participant prior to the Distribution Date under a CHK Welfare Plan that is not described in Section 6.2(a)(ii) below, to the extent such participant has
coverage under such plan as, or through, an employee or former employee of a Participating SSE Employer on the date such claim or expense is incurred. No member of the CHK Group shall be responsible for any liability with respect to any such claims
or expenses. 
 (ii) Insured Benefits. With respect to benefits that, on or prior to the Distribution Date, were
provided for under the CHK Welfare Plans through the purchase of insurance, CHK shall cause the CHK Welfare Plans to fully perform, pay and discharge all claims of SSE Welfare Plan Participants that were incurred prior to the Distribution Date. 

(iii) Claims Incurred. For purposes of this Section 6.2(a), a claim or liability is deemed to be incurred
(A) with respect to medical, dental, vision and/or prescription drug benefits, upon the rendering of health services giving rise to such claim or liability; (B) with respect to life insurance, accidental death and dismemberment and
business travel 

  
 20 

 
accident insurance, upon the occurrence of the event giving rise to such claim or liability; (C) with respect to long-term disability benefits, upon the date of an individual’s
disability, as determined by the disability benefit insurance carrier, giving rise to such claim or liability; and (D) with respect to a period of continuous hospitalization, upon the date of admission to the hospital, unless otherwise provided
under the terms of the applicable CHK Welfare Plan. 
 (b) Credit for Deductibles and Other Limits. With respect to each SSE Welfare
Plan Participant, the SSE Welfare Plans will give credit in plan year 2014 for any amount paid, number of services obtained or visits provided under the comparable type CHK Welfare Plan by such SSE Welfare Plan Participant in plan year 2014 toward
deductibles, number of services or visits, or other similar permissible limitations to the extent such amounts are taken into account under the comparable type CHK Welfare Plan. 

(c) COBRA. Effective as of the Distribution Date, SSE shall be responsible for COBRA with respect to all SSE Employees and Former SSE
Employees. As of the effective date of the SSE Welfare Plan, SSE will satisfy all requirements under COBRA with respect to all SSE Employees under the SSE Welfare Plan. 

Section 6.3 Continuity of Benefits, Benefit Elections and Beneficiary Designations.  

(a) Benefit Elections and Designations. As of the Distribution Date (or such other date provided for under Section 6.3(b)), SSE
shall cause the SSE Welfare Plans to recognize and give effect to all elections and designations (including all coverage and contribution elections and beneficiary designations) made by each SSE Welfare Plan Participant under, or with respect to,
the corresponding CHK Welfare Plan for plan year 2014. 
 (b) Additional Details Regarding Flexible Spending Accounts. Effective as of
the Distribution Date, a Participating SSE Employer will establish under the SSE Welfare Plan a health care flexible spending account and/or dependent care flexible spending account (each a “SSE FSA”) for each SSE Welfare
Plan Participant that has a health care flexible spending account and/or dependent care flexible spending account under the CHK Welfare Plan (each a “CHK FSA”) immediately prior to the Distribution Date. All activity under a
SSE Welfare Plan Participant’s CHK FSA (that is, both contributions to and expenses paid from each account) for plan year 2014 through the Distribution Date shall be treated as activity under the corresponding SSE FSA, such that the SSE Welfare
Plan Participant’s account balance in his SSE FSA on the Distribution Date will be equal to such participant’s CHK FSA balance immediately prior to the Distribution Date. A SSE Welfare Plan Participant’s CHK FSA salary reduction
election will apply with respect to his SSE FSA for the portion of plan year 2014 beginning on the Distribution Date and ending on December 31, 2014 (the “Participation Period”). A SSE Welfare Plan Participant will
continue to have access to his CHK FSA in accordance with its terms and conditions. Thus, the Parties agree that (i) all qualifying expenses incurred by a SSE Welfare Plan Participant during a Participation Period will be reimbursed under the
SSE Welfare Plan Participant’s SSE FSA and (ii) all qualifying expenses incurred by the SSE Welfare Plan Participant for plan year 2014 prior to the Participation Period will be reimbursed under the SSE Welfare Plan Participant’s CHK
FSA (in both cases in accordance with the applicable account’s terms and conditions and to the extent credits are available). Following the Distribution Date, with respect to the portion of plan year 2014 prior to the Participation Period, the
Parties will 

  
 21 

 
determine and agree on the aggregate amount of SSE Welfare Plan Participants’ contributions to the CHK FSA (“Aggregate FSA Contribution Amount”) and the aggregate
amount of SSE Welfare Plan Participants’ expenses incurred and reimbursed from the CHK FSA (“Aggregate FSA Expense Amount”). If the Aggregate FSA Expense Amount exceeds the Aggregate FSA Contribution Amount, SSE shall
reimburse CHK for the total amount of the excess no later than 60 days after the Distribution Date; if the Aggregate FSA Contribution Amount exceeds the Aggregate FSA Expense Amount, CHK shall reimburse SSE for the total amount of the excess no
later than 60 days after the Distribution Date. (For the avoidance of doubt, if the Aggregate FSA Contribution Amount exceeds the Aggregate FSA Expense Amount by $25,000, SSE will reimburse CHK $25,000 no later than 60 days after the Distribution
Date.) After March 31, 2015, the Parties will determine and agree on the total amount of the reimbursements made to SSE Welfare Plan Participants from their CHK FSAs for qualifying expenses incurred prior to the Distribution Date and SSE will
reimburse CHK for such amount as soon as reasonably practicable following March 31, 2015, but in no event later than April 30, 2015. 

(c) Employer Non-elective Contributions. As of the Distribution Date, SSE shall cause any SSE Welfare Plan that constitutes a cafeteria
plan under Section 125 of the Code to recognize and give effect to all non-elective employer contributions payable and paid toward coverage of a SSE Welfare Plan Participant under the corresponding CHK Welfare Plan that is a cafeteria plan
under Section 125 of the Code for the applicable cafeteria plan year. 
 Section 6.4 Insurance Contracts. To the extent any
CHK Welfare Plan is funded through the purchase of an insurance contract or is subject to any stop loss contract, CHK and SSE will cooperate and use their commercially reasonable efforts to replicate such insurance contracts for SSE (except to the
extent changes are required under applicable state insurance laws) and to maintain any pricing discounts or other preferential terms for both CHK and SSE for a reasonable term under such contracts. Neither Party shall be liable for failure to obtain
such pricing discounts or other preferential terms for the other Party under any insurance contracts. Each Party shall be responsible for any additional premiums, charges or administrative fees that such Party may incur pursuant to this
Section 6.4. 
 Section 6.5 Third-Party Vendors. Except as provided below, to the extent any CHK Welfare Plan is
administered by a third-party vendor, CHK and SSE will cooperate and use their commercially reasonable efforts to replicate any contract with such third-party vendor for SSE and to maintain any pricing discounts or other preferential terms for both
CHK and SSE for a reasonable term with respect to such vendors. Neither Party shall be liable for failure to obtain such pricing discounts or other preferential terms for the other Party with respect to any third-party vendors. Each Party shall be
responsible for any additional premiums, charges or administrative fees that such Party may incur pursuant to this Section 6.5. 

ARTICLE VII 

WORKERS’ COMPENSATION AND UNEMPLOYMENT COMPENSATION 

Effective as of the Distribution Date, SSE shall have (and, to the extent it has not previously had such obligations, assume) the obligations
for all claims and liabilities relating to workers’ compensation and unemployment compensation benefits for all SSE Employees and Former SSE Employees. SSE shall use commercially reasonable efforts to provide that workers’ compensation and
unemployment insurance costs are not adversely affected for either of them by reason of the Distribution. 

  
 22 

 ARTICLE VIII 

EMPLOYMENT AGREEMENTS, SEVERANCE AND OTHER MATTERS 

Section 8.1 Employment Agreements. Effective as of the Distribution Date, SSE hereby assumes CHK’s rights and obligations
arising under the employment agreements described in Schedule 8.1(a) and agrees to honor the terms and conditions of those agreements applicable to SSE as a successor under the terms of such agreements. The terms of the employment agreements shall
in all other respects be unaffected. The Parties agree that the SSE Employees who are covered by employment agreements described above are express beneficiaries of this Section 8.1(a). 

Section 8.2 Severance. 

(a) Except as otherwise provided in this Agreement, immediately following the Distribution, CHK shall have no liability or obligation under any
CHK severance plan or policy with respect to SSE Employees or Former SSE Employees. 
 (b) Except as otherwise provided in this Agreement,
effective after the Distribution Date, SSE shall assume and shall be responsible for administering all payments and benefits under the applicable CHK severance policies or any termination agreements with Former SSE Employees whose employment
terminated prior to the Distribution Date for an eligible reason under such policies or in accordance with such agreements. 

Section 8.3 Accrued Time Off. SSE shall recognize and assume all liability for all vacation, holiday, sick leave, flex
days, personal days and paid-time off with respect to SSE Employees, and SSE shall credit each SSE Employee with such accrual. 

Section 8.4 Leaves of Absence. SSE will continue to apply leave of absence policies applicable to inactive SSE Employees
who are on an approved leave of absence as of the Distribution Date that are substantially similar in all material respects to those that were applied by CHK prior to the Distribution Date. Leaves of absence taken by SSE Employees prior to the
Distribution Date shall be deemed to have been taken as employees of a member of the SSE Group. 
 Section 8.5 Restrictive
Covenants in Employment and Other Agreements. 
 (a) To the fullest extent permitted by the agreements described in this
Section 8.5(a) and applicable law, CHK shall assign, or cause any member of the CHK Group to assign, to SSE or a member of the SSE Group, as designated by SSE, all agreements containing restrictive covenants (including confidentiality and
non-competition provisions) between a member of the CHK Group and a SSE Employee or Former SSE Employee, with such assignment effective as of the Distribution Date. To the extent that assignment of such agreements is not permitted, effective as of
the Distribution Date, each member of the SSE Group shall be considered to be a successor to each member of the CHK Group for purposes of, and a third-party beneficiary with 

  
 23 

 
respect to, all agreements containing restrictive covenants (including confidentiality and non-competition provisions) between a member of the CHK Group
and a SSE Employee or Former SSE Employee whom SSE reasonably determines have substantial knowledge of the business activities of the SSE Group, such that each member of the SSE Group shall enjoy all the rights and benefits under such agreements
(including rights and benefits as a third-party beneficiary), with respect to the business operations of the SSE Group; provided, however, that in no event shall CHK be permitted to enforce such restrictive covenant agreements against
SSE Employees or Former SSE Employees for action taken in their capacity as employees of a member of the SSE Group. 
 (b) To the
fullest extent permitted by the agreements described in this Section 8.7(b) and applicable law, SSE shall assign, or cause any member of the SSE Group to assign, to CHK or a member of the CHK Group, as designated by CHK, all agreements
containing restrictive covenants (including confidentiality and non-competition provisions) between a member of the SSE Group and a CHK Employee or Former CHK Employee, with such assignment effective as of the Distribution Date. To the extent that
assignment of such agreements is not permitted, effective as of the Distribution Date, each member of the CHK Group shall be considered to be a successor to each member of the SSE Group for purposes of, and a third-party beneficiary with respect to,
all agreements containing restrictive covenants (including confidentiality and non-competition provisions) between a member of the SSE Group and a CHK Employee or Former CHK Employee whom CHK reasonably determines have substantial knowledge of the
business activities of the CHK Group, such that CHK and each member of the CHK Group shall enjoy all the rights and benefits under such agreements (including rights and benefits as a third-party beneficiary), with respect to the business operations
of the CHK Group; provided, however, that in no event shall SSE be permitted to enforce such restrictive covenant agreements against CHK Employees or Former CHK Employees for action taken in their capacity as employees of a member of the CHK
Group. 
 ARTICLE IX 

GENERAL PROVISIONS 

Section 9.1 Preservation of Rights to Amend. The rights of each member of the CHK Group and each member of the SSE Group to
amend, waive, or terminate any plan, arrangement, agreement, program, or policy referred to herein shall not be limited in any way by this Agreement. 

Section 9.2 Confidentiality. Each Party agrees that any information conveyed or otherwise received by or on behalf of a
Party in conjunction herewith that is not otherwise public through no fault of such Party is confidential and is subject to the terms of the confidentiality provisions set forth in the Master Separation Agreement. 

Section 9.3 Administrative Complaints/Litigation. Except as otherwise provided in this Agreement, on and after the
Distribution Date, SSE shall assume, and be solely liable for, the handling, administration, investigation and defense of actions, including ERISA, occupational safety and health, employment standards, union grievances, wrongful dismissal,
discrimination or human rights and unemployment compensation claims asserted at any time against CHK or any member of the CHK Group by any SSE Employee or Former SSE Employee  

  
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(including any dependent or beneficiary of any such Employee) or any other person, to the extent such actions or claims arise out of or relate to employment or the provision of services (whether
as an employee, contractor, consultant or otherwise) to or with respect to the business activities of any member of the SSE Group, whether or not such employment or services were performed before or after the Distribution. To the extent that any
legal action relates to a putative or certified class of plaintiffs, which includes both CHK Employees (or Former CHK Employees) and SSE Employees (or Former SSE Employees) and such action involves employment or benefit plan related claims,
reasonable costs and expenses incurred by the Parties in responding to such legal action shall be allocated among the Parties equitably in proportion to a reasonable assessment of the relative proportion of Employees included in or represented by
the putative or certified plaintiff class. The procedures contained in the indemnification and related litigation cooperation provisions of the Master Separation Agreement shall apply with respect to each Party’s indemnification obligations
under this Section 9.3. 
 Section 9.4 Reimbursement and Indemnification. CHK and SSE each agree to reimburse the other
Party, within 60 days of receipt from the other Party of reasonable verification, for all costs and expenses which the other Party may incur on its behalf as a result of any of the respective CHK and SSE Welfare Plans (including, but not limited to,
SSE’s reimbursement of CHK for all COBRA liabilities for SSE Employees and Former SSE Employees), 401(k) Plan and, as contemplated by Section 8.2, any termination or severance payments or benefits. All liabilities retained, assumed or
indemnified against by SSE pursuant to this Agreement, and all liabilities retained, assumed or indemnified against by CHK pursuant to this Agreement, shall in each case be subject to the indemnification provisions of the Master Separation
Agreement. Notwithstanding anything to the contrary, (i) no provision of this Agreement shall require any member of the SSE Group to pay or reimburse to any member of the CHK Group any benefit-related cost item that a member of the SSE Group
has previously paid or reimbursed to any member of the CHK Group; and (ii) no provision of this Agreement shall require any member of the CHK Group to pay or reimburse to any member of the SSE Group any benefit-related cost item that a member
of the CHK Group has previously paid or reimbursed to any member of the SSE Group. 
 Section 9.5 Costs of Compliance with
Agreement. Except as otherwise provided in this Agreement or any other Ancillary Agreement, each Party shall pay its own expenses in fulfilling its obligations under this Agreement. 

Section 9.6 Fiduciary Matters. CHK and SSE each acknowledge that actions required to be taken pursuant to this Agreement
may be subject to fiduciary duties or standards of conduct under ERISA or other applicable law, and no Party shall be deemed to be in violation of this Agreement if it fails to comply with any provisions hereof based upon its good faith
determination (as supported by advice from counsel experienced in such matters) that to do so would violate such a fiduciary duty or standard. Each Party shall be responsible for taking such actions as are deemed necessary and appropriate to comply
with its own fiduciary responsibilities and shall fully release and indemnify the other Party for any liabilities caused by the failure to satisfy any such responsibility. 

  
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 Section 9.7 Form S-8. Before the Distribution or as soon as reasonably
practicable thereafter and subject to applicable law, SSE shall prepare and file with the SEC a registration statement on Form S–8 (or another appropriate form) registering under the Securities Act of 1933 the offering of a number of shares of
SSE Common Stock at a minimum equal to the number of shares subject to the Replacement SSE Options, the Replacement SSE RSUs and the Replacement SSE RSAs. SSE shall use commercially reasonable efforts to cause any such registration statement to be
kept effective (and the current status of the prospectus or prospectuses required thereby shall be maintained) as long as any Replacement SSE Options, Replacement SSE RSUs, or Replacement SSE RSAs may remain outstanding. 

Section 9.8 Entire Agreement. This Agreement, together with the documents referenced herein (including the Master
Separation Agreement, the Ancillary Agreements and the plans and agreements referenced herein), constitutes the entire agreement and understanding among the Parties with respect to the subject matter hereof and supersedes all prior written and oral
and all contemporaneous oral agreements and understandings with respect to the subject matter hereof. To the extent any provision of this Agreement conflicts with the provisions of the Master Separation Agreement, the provisions of this Agreement
shall be deemed to control with respect to the subject matter hereof. 
 Section 9.9 Binding Effect; No Third-Party
Beneficiaries; Assignment. This Agreement shall inure to the benefit of and be binding upon the Parties and their respective successors and permitted assigns. Except as otherwise expressly provided in this Agreement, this Agreement is solely for
the benefit of the Parties and should not be deemed to confer upon any third parties any remedy, claim, liability, reimbursement, cause of action or other right in excess of those existing without reference to this Agreement. Nothing in this
Agreement is intended to amend any employee benefit plan or affect the applicable plan sponsor’s right to amend or terminate any employee benefit plan pursuant to the terms of such plan. Except as otherwise provided in Section 8.1(a), the
provisions of this Agreement are solely for the benefit of the Parties, and no current or former Employee, officer, director or independent contractor or any other individual associated therewith shall be regarded for any purpose as a third-party
beneficiary of this Agreement. This Agreement may not be assigned by any Party, except with the prior written consent of the other Parties. 

Section 9.10 Amendment; Waivers. No change or amendment may be made to this Agreement except by an instrument in writing
signed on behalf of each of the Parties. Any Party may, at any time, (i) extend the time for the performance of any of the obligations or other acts of another Party, (ii) waive any inaccuracies in the representations and warranties of
another Party contained herein or in any document delivered pursuant hereto, and (iii) waive compliance by another Party with any of the agreements, covenants or conditions contained herein. Any such extension or waiver shall be valid only if
set forth in an instrument in writing signed by the Party to be bound thereby. No failure or delay on the part of any Party in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any
breach of any representation, warranty, covenant or agreement contained herein, nor shall any single or partial exercise of any such right preclude other or further exercises thereof or of any other right. 

  
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 Section 9.11 Remedies Cumulative. All rights and remedies existing under this
Agreement or the Schedules attached hereto are cumulative to, and not exclusive of, any rights or remedies otherwise available.  

Section 9.12 Notices. Unless otherwise expressly provided herein, all notices, claims, certificates, requests, demands and
other communications hereunder shall be in writing and shall be deemed to be duly given: (i) when personally delivered, (ii) if mailed by registered or certified mail, postage prepaid, return receipt requested, on the date the return
receipt is executed or the letter is refused by the addressee or its agent, (iii) if sent by overnight courier which delivers only upon the executed receipt of the addressee, on the date the receipt acknowledgment is executed or refused by the
addressee or its agent, or (iv) if sent by facsimile or electronic mail, on the date confirmation of transmission is received (provided that a copy of any notice delivered pursuant to this clause (iv) shall also be sent pursuant to clause
(i), (ii) or (iii)), addressed to the attention of the addressee’s General Counsel at the address of its principal executive office or to such other address or facsimile number for a Party as it shall have specified by like notice. 

 Section 9.13 Counterparts. This Agreement, including the Schedules hereto and the other documents referred to
herein, may be executed in multiple counterparts, each of which when executed shall be deemed to be an original but all of which together shall constitute one and the same agreement. 

Section 9.14 Severability. If any term or other provision of this Agreement or the Schedules attached hereto is determined
by a nonappealable decision by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in
full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal or
incapable of being enforced, the court, administrative agency or arbitrator shall interpret this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that transactions contemplated
hereby are fulfilled to the fullest extent possible. If any sentence in this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable. 

Section 9.15 Governing Law. To the extent not preempted by applicable federal law, this Agreement shall be governed by, and
construed and enforced in accordance with, the substantive laws of the State of Oklahoma, without regard to any conflicts of law provisions thereof that would result in the application of the laws of any other jurisdiction. 

  
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 Section 9.16 Performance. Each of CHK and SSE shall cause to be performed, and
hereby guarantees the performance of, all actions, agreements and obligations set forth herein to be performed by any member of the CHK Group and any member of the SSE Group, respectively. The Parties each agree to take such further actions and to
execute, acknowledge and deliver, or to cause to be executed, acknowledged and delivered, all such further documents as are reasonably requested by the other for carrying out the purposes of this Agreement or of any document delivered pursuant to
this Agreement. 
 Section 9.17 Construction. This Agreement shall be construed as if jointly drafted by the
Parties and no rule of construction or strict interpretation shall be applied against any Party. 
 Section 9.18
Effect if Distribution Does Not Occur. Notwithstanding anything in this Agreement to the contrary, if the Master Separation Agreement is terminated prior to the Distribution Date, this Agreement shall be of no further force and effect.

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed in their names by a duly authorized officer as of the date
first written above. 
  

			
	CHESAPEAKE ENERGY CORPORATION
		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	SEVENTY SEVEN ENERGY INC.
		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  
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