Document:

Form of Development Agreement

 Exhibit 10.7 
 DEVELOPMENT AGREEMENT 
 This Development Agreement (the
“Development Agreement”) by and among Chesapeake Energy Corporation, an Oklahoma corporation, with offices at 6100 North Western Avenue, Oklahoma City, Oklahoma 73118 (“Chesapeake Parent”), Chesapeake Exploration,
L.L.C., an Oklahoma limited liability company and wholly owned subsidiary of Chesapeake Parent with offices at 6100 North Western Avenue, Oklahoma City, Oklahoma 73118 (“Assignor” and, together with Chesapeake Parent,
“Chesapeake”), and Chesapeake Granite Wash Trust, a statutory trust formed under the laws of the State of Delaware (the “Trust”), is dated [—],
2011 but delivered to be effective as of 12:01 a.m., Central Time, July 1, 2011 (the “Effective Time”). 

WHEREAS, Assignor and the Trust have entered into that certain Perpetual Overriding Royalty Interest Conveyance (PUD) to be effective as
of the Effective Time (the “Perpetual PUD Conveyance”); and 
 WHEREAS, Assignor and Chesapeake E&P Holding
Corporation, an Oklahoma corporation and wholly owned subsidiary of Chesapeake Parent (“Chesapeake Sub”), have entered into that certain Term Overriding Royalty Interest Conveyance (PUD) to be effective as of the Effective Time (the
“Term PUD Conveyance,” and together with the Perpetual PUD Conveyance, collectively the “Conveyances”); and 
 WHEREAS, Chesapeake Sub has assigned all of its right, title and interest under the Term PUD Conveyance to the Trust effective as of the Effective Time; and 

WHEREAS, in connection with the Conveyances, Chesapeake has agreed to undertake certain obligations with respect to the drilling and
completion of Development Wells. 
 NOW, THEREFORE, in consideration of the premises and the covenants hereinafter contained and
for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows: 
 ARTICLE I 
 DEFINITIONS; CONSTRUCTION 

Section 1.1 Definitions. This Article I defines certain capitalized words, terms and phrases used in this Development Agreement.
Certain other capitalized words, terms and phrases used in this Development Agreement are defined elsewhere in this Development Agreement. 
 “Additional Interest” is defined in Section 3.1. 

“Additional Lease” is defined in Section 3.1. 

“Adjusted Development Well Amount” means the amount, for each Development Well, equal to the product of (a) the NRI
Factor for such well, multiplied by (b) the Lateral Distance Factor for such well. For example, in the case of a Development Well for which the NRI Factor is 1.5 and the Lateral Distance Factor is 1.0, the Adjusted Development Well
Amount would be 

 
equal to: NRI Factor (1.5000) x Lateral Distance Factor (1.0000) = 1.5000. The Adjusted Development Well Amount shall be rounded to the nearest ten thousandth (i.e., four decimal places
to the right of the decimal point). 
 “Affiliate” means, for any specified Person, another Person that
controls, is controlled by, or is under common control with, the specified Person. “Control”, as used in the preceding sentence, refers to the possession by one Person, directly or indirectly, of the right or power to direct or cause the
direction of the management and policies of another Person, whether through the ownership of voting securities, by contract or otherwise. 
 “AMI Area” means that area described in Exhibit A to this Development Agreement, as such area may be extended pursuant to Article III hereof. 

“Assignee Minerals” means, collectively, the “Assignee Minerals” as defined under each of the Conveyances.

 “Assignor” is defined in the introductory paragraph to this Development Agreement. 

“Assignor’s Net Revenue Interest” means the interest, stated as a decimal, in the Subject Minerals produced from a
Development Well attributable to the Subject Interests in that Development Well, net of Production Burdens. 

“Assignor’s Net Share of Minerals” means the share of Subject Minerals produced from each Development Well that is
attributable to Assignor’s Net Revenue Interest in that Development Well determined prior to giving effect to the Conveyances. 
 “Central Time” means the local time on any given day in Washita County, Oklahoma. 
 “Chesapeake” is defined in the introductory paragraph to this Development Agreement. 
 “Chesapeake Parent” is defined in the introductory paragraph to this Development Agreement. 
 “Chesapeake Sub” is defined in the recitals to this Development Agreement. 
 “Closing Time” means 12:01 a.m., Central Time, on [—], 2011. 

“Conveyances” is defined in the recitals to this Development Agreement. 

“Designated Area” means each governmental section outside the AMI Area but adjacent to a governmental section included
in the AMI Area. 
 “Development Agreement” is defined in the introductory paragraph to this Development
Agreement. 
 “Development Well” means any Mineral well located on the Subject Lands that is spud after
June 30, 2011, and drilled to, and perforated horizontally for completion in, the Target Formation, on or prior to the Drilling Obligation Completion Date. 

  
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 “Drilling Obligation Completion Date” means the date that the Total
Drilling Target is achieved; provided that the “Drilling Obligation Completion Date” shall not be deemed to have been achieved until Chesapeake Parent shall have delivered to the Trustee a certificate substantially in the form of
Exhibit B to this Development Agreement, executed by its Chief Executive Officer, President or any Vice President, certifying that the Total Drilling Target was achieved as of such date and identifying each Development Well, the Adjusted
Development Well Amount for each Development Well and the Lateral Distance Factor and NRI Factor used to calculate the Adjusted Development Well Amount for each Development Well. 

“Effective Time” is defined in the introductory paragraph to this Development Agreement. 

“Exchange Acreage” is defined in Section 3.2. 

“Excluded Assets” means those Mineral wells that are described in Exhibit B to each of the Conveyances. 

“Gas” means natural gas and all other gaseous hydrocarbons or minerals, including helium, but specifically excluding any
Gas Liquids. 
 “Gas Liquids” means those natural gas liquids and other similar liquid hydrocarbons, including
ethane, propane, butane and natural gasoline, and mixtures thereof, that are removed from a gas stream by the liquids extraction process of any field facility or gas processing plant and delivered by the facility or plant as natural gas liquids.

 “Lateral Distance Factor” means, with respect to each Development Well, the fraction (not to exceed 1.0)
obtained by dividing such well’s Perforated Length by 3,500 feet. For example, if the Perforated Length of a Development Well is 3,000 feet, the Lateral Distance Factor for such Development Well would be: 3,000 feet / 3,500 feet = 0.8571. In
the event that the Perforated Length of a Development Well is greater than 3,500 feet, the Lateral Distance Factor shall nevertheless be deemed to be equal to 1.0. The Lateral Distance Factor shall be rounded to the nearest ten thousandth (i.e.,
four decimal places to the right of the decimal point). 
 “Maximum Liability” is defined in Section 4.12.

 “Minerals” means Oil, Gas and Gas Liquids. 

“Mortgage” is defined in Section 2.5(c). 
 “NRI Factor” means with respect to each Development Well other than the last Development Well, the fraction obtained by dividing Assignor’s Net Revenue Interest for such well by 52%;
provided that, with regard to the last Development Well, the Assignor’s Net Revenue Interest used to calculate the NRI Factor shall be reduced to that percentage that will result in an NRI Factor equal to the difference between 118 and
the cumulative sum of the Adjusted Development Well Amounts for all prior Development Wells drilled or caused to be drilled by Assignor. For example, if Assignor’s Net Revenue Interest in a Development Well is 80%, the NRI Factor for such
Development Well would be: 80% / 52% = 1.5385. Additionally, by way of example, if (i) the cumulative sum of all the Adjusted Development Well Amounts for 

  
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all Development Wells drilled or caused to be drilled by Chesapeake equals 117.5, (ii) the Lateral Distance Factor for the next Development Well is 1.0 and (iii) Assignor’s Net
Revenue Interest in the next Development Well is 52%, the Assignor’s Net Revenue Interest used to calculate the NRI Factor shall be 26% resulting in an NRI Factor for the last Development Well of 0.5. The NRI Factor shall be rounded to the
nearest ten thousandth (i.e., four decimal places to the right of the decimal point). 
 “Oil” means crude oil,
condensate and other liquid hydrocarbons recovered by field equipment or facilities, excluding Gas Liquids. 

“Party,” when capitalized, refers to Chesapeake Parent, Assignor or the Trust, as applicable.
“Parties,” when capitalized, refers to Chesapeake Parent, Assignor and the Trust. 
 “Perforated
Length” means the length (in feet) of the perforated segment of a Development Well measured from the first perforation along the measured length to the last perforation along the measured length. 

“Perpetual PUD Conveyance” is defined in the recitals to this Development Agreement. 

“Person” means any natural person, corporation, partnership, limited liability company, trust, estate or other entity,
organization or association. 
 “Production Burdens” means, with respect to any Subject Lands, Subject
Interests or Subject Minerals, all royalty interests, overriding royalty interests, production payments, net profits interests and other similar interests that constitute a burden on, are measured by or are payable out of the production of Minerals
or the proceeds realized from the sale or other disposition thereof; provided, however, that the Royalty Interests shall not be considered Production Burdens for the purposes of this Development Agreement. 

“Reasonably Prudent Operator Standard” means the standard of conduct of a reasonably prudent oil and gas operator under
the same or similar circumstances, acting with respect to its own property and disregarding the existence of the Royalty Interests as a burden on such property. 
 “Royalty Interests” means, collectively, the overriding royalty interests created under the Conveyances. 
 “Subject Interests” means Assignor’s undivided interests in the Subject Lands as described in the Conveyances but before giving effect thereto (or as may be made part of the Subject
Interests pursuant to Section 3.1 or 3.2 of this Development Agreement), whether as lessee under leases, as an owner of the Subject Minerals (or the right to extract such Minerals) or otherwise, by virtue of which undivided interests Assignor
has the right to conduct exploration, drilling, development and Mineral production operations on the Subject Lands, or to cause such operations to be conducted, or to participate in such operations by paying and bearing all or any part of the costs,
risks and liabilities of such operations, to drill, test, complete, equip, operate and produce wells to exploit the Minerals. The “Subject Interests” (a) may be owned by Assignor pursuant to leases, deeds, operating, pooling or
unitization agreements, orders or any other instruments, agreements or documents, recorded or unrecorded, (b) include any and all 

  
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extensions or renewals of leases covering the Subject Lands (or any portion thereof) obtained by Assignor, or any Affiliate thereof, within six (6) months after the expiration or termination
of any such lease, and (c) are subject to the Permitted Encumbrances (as defined in each of the Conveyances). For the avoidance of doubt, the “Subject Interests” do not include: (i) Assignor’s interests in the Excluded
Assets; (ii) Assignor’s rights to substances other than Minerals; (iii) Assignor’s rights to Minerals (other than Assignee Minerals) under contracts for the purchase, sale, transportation, storage, processing or other handling or
disposition of Minerals; (iv) Assignor’s interests in, or rights to Minerals (other than Assignee Minerals) held in pipelines, gathering systems, storage facilities, processing facilities or other equipment or facilities; or (v) any
additional or enlarged interests in the Development Wells, Subject Lands or Subject Minerals acquired by Assignor after the Closing Time, except (1) to the extent any such additional or enlarged interest becomes a part of the Subject Interests
by amendment to the Conveyances pursuant to Section 3.1 or Section 3.2 of this Development Agreement, (2) as may result from the operation of the terms of the instruments creating the Subject Interests, or (3) as may be reflected
in extensions and renewals covered by the preceding sentence. 
 “Subject Lands” means the lands subject to or
covered by the oil and gas leases described in Exhibit A to each of the Conveyances, insofar and only insofar as they are located within the AMI Area and cover the Target Formation, subject to the exceptions, exclusions and reservations set
forth on each such Exhibit A. 
 “Subject Minerals” means all Minerals in and under the Subject Lands, and
that may be produced, saved and sold from the wellbore of a Development Well, insofar and only insofar as such Minerals are produced from the Target Formation, subject to the following exclusions: Minerals that are (a) lost in the production,
gathering or marketing of Minerals; (b) used (i) in conformity with ordinary and prudent operations on the Subject Lands, including drilling and production operations with respect to a Development Well, or (ii) in connection with
operations (whether on or off the Subject Lands) for processing or compressing the Subject Minerals; (c) taken by a Third Person to recover costs, or some multiple of costs, paid or incurred by that Third Person under any operating agreement,
pooling or unitization agreement or order or other agreement in connection with nonconsent operations conducted (or participated in) by that Third Person; and (d) retained by a Third Person for gathering, transportation, processing or marketing
services related to the Subject Minerals in lieu of or in addition to cash payment for such services, to the extent such agreement to retain Minerals is permitted under the Conveyances. 

“Target Formation” means the Colony Granite Wash formation, being defined as the geologic interval between the top of
the Des Moines formation (or top of the Colony Granite Wash ‘A’ formation) and the top of the Prue formation (or base of the Colony Granite Wash ‘C’ formation) between the stratigraphic equivalent of the measured depths of 12,285
feet to 12,862 feet as encountered on the electric log of the Lee Roy 1-24H well located in Section 24, Township 11N, Range 18W in Washita County, Oklahoma (API No. 3514921413), a portion of which log is attached hereto as Exhibit C,
recognizing that the actual depth of the Target Formation will vary from depths of approximately 11,500 feet to 13,000 feet across the AMI Area. 
 “Term PUD Conveyance” is defined in the recitals to this Development Agreement. 

  
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 “Third Person” means a Person other than Chesapeake, the Trust or the
Trustee. 
 “Total Drilling Target” means that number of Development Wells where the cumulative sum of all the
Adjusted Development Well Amounts for such Development Wells equals 118. 
 “Trust” is defined in the
introductory paragraph to this Development Agreement. 
 “Trust Agreement” means the Amended and Restated Trust
Agreement of the Trust, dated as of [—], 2011 (as it may be amended from time to time), among Chesapeake Parent, the Trustee and Corporation Trust Company, as Delaware trustee.

 “Trustee” means The Bank of New York Mellon Trust Company, N.A., a national banking association organized
under the laws of the United States of America with its principal place of business in New York, New York, as trustee, acting not in its individual capacity but solely as trustee of the Trust. 

Section 1.2 Construction. Unless the context requires otherwise: (a) any pronoun used in this Agreement shall include the
corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa; (b) references to Articles and Sections refer to Articles and Sections of this Agreement;
(c) the terms “include,” “includes,” “including” or words of like import shall be deemed to be followed by the words “without limitation;” and (d) the terms “hereof,” “herein” or
“hereunder” refer to this Agreement as a whole and not to any particular provision of this Agreement. The headings contained in this Agreement are for reference purposes only, and shall not affect in any way the meaning or interpretation
of this Agreement. 
 ARTICLE II 
 DEVELOPMENT OF THE SUBJECT LANDS 
 Section 2.1 Drilling Program.

 (a) Obligation to Drill. Chesapeake shall, subject to the terms of this Article II, drill or cause to be drilled,
or participate as a non-operator in the drilling of, such number of Development Wells as is necessary to achieve the Total Drilling Target on or prior to June 30, 2016. 
 (b) Drilling Standard. Chesapeake shall drill or cause to be drilled, at its sole cost and expense (as between the Parties), each of the Development Wells in a diligent manner in accordance with
the Reasonably Prudent Operator Standard, subject to Assignor’s limited rights as a non-operator of those Development Wells of which neither Assignor nor one of its Affiliates is the operator; provided, however, that when and where
neither Assignor nor one of its Affiliates is the operator of a Development Well and Assignor has elected to participate as a non-operator in the drilling of such Development Well, Assignor shall use commercially reasonable efforts to exercise its
contractual rights with respect to the operator of such Development Well to cause such operator to drill such Development Well in accordance with the Reasonably Prudent Operator Standard. 

  
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 Section 2.2 Obligation to Complete and Equip. Chesapeake shall, at its sole cost and
expense (as between the Parties), (a) attempt to complete in the Target Formation each Development Well that reasonably appears to Chesapeake, acting in accordance with the Reasonably Prudent Operator Standard, to be capable of producing
Minerals in quantities sufficient to pay drilling, completion, equipping and operating costs, (b) equip for production each Development Well that is successfully completed, (c) connect such Development Well to a gathering line, pipeline or
other storage or marketing facility and commence production, and (d) plug and abandon all Development Wells that are unsuccessful to the extent required by applicable law; provided, however, that when and where neither Assignor nor one
of its Affiliates is the operator of a Development Well and Assignor has elected to participate as a non-operator in the drilling of such Development Well, Assignor shall use commercially reasonable efforts to exercise its contractual rights with
respect to the operator of such Development Well to cause such operator to comply with Chesapeake’s obligations set forth in this Section 2.2. 
 Section 2.3 Costs and Expenses of Development Wells. All costs and expenses associated with or paid or incurred in connection with the spudding, drilling, testing, completing, equipping and
connecting for production, operating and/or plugging and abandoning of the Development Wells shall be borne solely by Chesapeake (as between the Parties) but Chesapeake may use any Subject Minerals in such operations without any duty to account to
the Trustee or the Trust; provided that Chesapeake’s use of such Subject Minerals shall be in accordance with the Reasonably Prudent Operator Standard. 
 Section 2.4 Title Due Diligence. Prior to commencing the drilling of any Development Well, Chesapeake shall perform such title due diligence and such title curative work as would be performed by an
oil and gas operator drilling a well and acting in accordance with the Reasonably Prudent Operator Standard. 
 Section 2.5
Wells. 
 (a) Prior to the Drilling Obligation Completion Date, Chesapeake shall not, and shall cause its Affiliates not
to, drill and/or complete any well to the Target Formation in the AMI Area other than Development Wells in furtherance of its drilling obligation in Section 2.1 above. 
 (b) Prior to the Drilling Obligation Completion Date, Chesapeake shall not, and shall cause its Affiliates not to, drill and/or complete any well that will have a perforated segment in the Target
Formation that will be within six hundred (600) feet of any perforated interval of a Development Well or any other wells located in the AMI Area in which the Trust has a Royalty Interest. 

(c) Contemporaneously herewith, Assignor has entered into a Mortgage with Power of Sale (the “Mortgage”) by which
Assignor has granted a mortgage lien and security interest creating a valid, first priority lien and security interest in and to the undeveloped portions of the Subject Lands (which shall include any Additional Lease, Additional Interest or Exchange
Acreage that becomes part of the Subject Lands) located in the AMI Area in order to secure the performance of Chesapeake’s drilling obligation under Section 2.1 above. 

  
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 ARTICLE III 
 AMI AREA 
 Section 3.1 Additional Leases and Additional Interests.
In the event that, after the Closing Time and prior to the Drilling Obligation Completion Date, Assignor (a) acquires additional leases covering lands lying within the AMI Area (each, an “Additional Lease”) or (b) acquires
through forced pooling or otherwise by operation of law or pursuant to any applicable contract any rights or interests that increase Assignor’s interest in Minerals located within the AMI Area (each such increase in Assignor’s interest, an
“Additional Interest”), at Assignor’s option and subject to Section 3.3, Assignor may elect to make such Additional Lease and/or Additional Interest part of the Subject Interests and Subject Lands and subject to the
Royalty Interests. In such event Assignor and the Trust shall execute, acknowledge and deliver (i) an instrument that amends the Conveyances so that each such Additional Lease or Additional Interest is subject to the Royalty Interest and
included in the Subject Interests and Subject Lands, and (ii) an instrument that amends the Mortgage so that each such Additional Lease or Additional Interest is subject to the Mortgage. 

Section 3.2 Exchange of Subject Lands. Subject to Section 3.3, at Assignor’s option, at any time prior to the Drilling
Obligation Completion Date, upon notice from Assignor, the Trust shall execute, acknowledge and deliver to Assignor a recordable instrument (reasonably acceptable to Assignor) that reconveys the Royalty Interest to Assignor and releases from the
Mortgage undeveloped portions of the Subject Interests within the AMI Area in connection with Assignor’s exchange of such Subject Interests for other undeveloped acreage outside the AMI Area but within the Designated Area (the “Exchange
Acreage”). Concurrently with such release, Assignor and the Trust shall execute, acknowledge and deliver (a) an instrument that amends the Conveyances so that such Exchange Acreage will be subject to the Royalty Interest and be part of
the Subject Interests and Subject Lands for all purposes and (b) an instrument that amends the Mortgage so that such Exchange Acreage will be subject to the Mortgage. The Designated Area governmental section in which such Exchange Acreage is
located will thereafter be deemed to be part of the AMI Area under this Development Agreement for all purposes and, to the extent the Subject Interests exchanged for the Exchange Acreage constitute all of the Subject Interests within the
governmental section in which such Subject Interests are located, such governmental section shall be deemed to be omitted from the AMI Area under this Development Agreement for all purposes. In no event shall Assignor drill or extend any well into
any Exchange Acreage unless and until the Conveyances are amended to include such Exchange Acreage as part of the Subject Interests and Subject Lands and the Mortgage is amended so that such Exchange Acreage is subject thereto. 

Section 3.3 Limitations. In no event may (i) any Additional Lease or Additional Interest be made subject to the Royalty
Interest pursuant to Section 3.1 or (ii) any exchange involving Exchange Acreage be effected pursuant to Section 3.2, unless Assignor certifies to the Trust that: 

(a) after giving effect to the proposed transaction, the aggregate acreage attributable to all Additional Leases, Additional Interests
and Exchange Acreage since the Closing Time will not exceed 5% of the Subject Interests as such exist as of the Closing Time, measured in net mineral acres; 

  
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 (b) in the case of an Additional Lease only, the reserve profile of such Additional Lease is
consistent with reserve profiles of other portions of the Subject Interests that would, but for the acquisition of the Additional Lease, be tapped from a Development Well having the entire length of all of its perforated laterals located within the
Subject Interests; 
 (c) in the case of Exchange Acreage only, the reasonably projected quantity of proved undeveloped reserves
attributable to the Exchange Acreage does not significantly differ from the reasonably projected quantity of proved undeveloped reserves attributable to the portion of the Subject Interests to be given in exchange therefor; and 

(d) the addition of any Additional Leases, Additional Interests or Exchange Acreage, as applicable, to the Conveyance will not, based
upon an opinion of counsel, cause any adverse federal income tax consequence to the Trust or any unitholder of the Trust. 
 The
Trustee is hereby authorized and directed to rely on any such written certification from Assignor, and shall have no authority or responsibility to exercise any discretion in connection with any transaction authorized by this Article III.

 ARTICLE IV 
 OTHER PROVISIONS 
 Section 4.1 Successors and Assigns. Subject to
the limitation and restrictions on the assignment or delegation by the Parties of their rights and interests under this Development Agreement, all of the covenants and agreements of Chesapeake and the Trust contained herein shall be deemed to be
covenants running with the land and shall be binding upon the successors and assigns of Chesapeake’s interests in the Subject Interests or this Development Agreement and Chesapeake Sub’s and the Trust’s interest in the Royalty
Interests and shall inure to the benefit of Chesapeake Sub and the Trust and their respective successors and permitted assigns. The foregoing notwithstanding, nothing herein is intended to modify or shall have the effect of modifying the
restrictions on assignment set forth in the Conveyances regarding assignments, transfer or pooling of Chesapeake’s interests in the Subject Interests; and the preceding sentence shall not be deemed to permit any assignment or other transfer of
the interest of Chesapeake in any of the Subject Interests that is not specifically permitted by the provisions of the Conveyances. Nothing contained in this Development Agreement or in the Conveyances shall in any way limit or restrict the right of
the Trust, or the Trust’s respective successors and assigns, to sell, convey, assign or mortgage the Royalty Interests in whole or in part. If the Trust, or the Trust’s successors and assigns, at any time shall execute a mortgage, pledge
or deed of trust covering all or any part of the Royalty Interests as security for any obligation, the mortgagee, the pledgee or the trustee therein named or the holder of the obligation secured thereby shall be entitled, to the extent such
mortgage, pledge or deed of trust so provides and upon the occurrence or existence of the event or condition therein stated, if so conditioned, to exercise all of the rights, remedies, powers and privileges herein conferred upon the Trust, and to
give or withhold all consents herein required or permitted to be obtained from the Trust. 
 Section 4.2 Governing Law.
THIS DEVELOPMENT AGREEMENT SHALL BE CONSTRUED UNDER AND GOVERNED BY THE LAWS OF THE STATE OF OKLAHOMA WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW 

  
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PRINCIPLES THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION. 
 Section 4.3 No Waiver. Failure of any Party to require performance of any provision of this Development Agreement shall not affect any Party’s right to require full performance thereof at any
time thereafter, and the waiver by any Party of a breach of any provision hereof shall not constitute a waiver of a similar breach in the future or of any other breach or nullify the effectiveness of such provision. 

Section 4.4 Relationship of Parties. This Development Agreement does not create a partnership, mining partnership, joint venture
or relationship of trust or agency between the Parties. 
 Section 4.5 Further Assurances. Each Party shall execute,
acknowledge and deliver to the other Parties all additional instruments and other documents reasonably required to evidence or effect any transaction contemplated by this Development Agreement. 

Section 4.6 The 12:01 A.M. Convention. Except as otherwise provided in this Development Agreement, each calendar day, month,
quarter, and year shall be deemed to begin at 12:01 a.m. Central Time on the stated day or on the first day of the stated month, quarter or year, and to end at 12:00 a.m. Central Time on the next day or on the first day of the next month, quarter or
year, respectively. 
 Section 4.7 Counterpart Execution. This Development Agreement may be executed in any number of
counterparts with the same effect as if all the Parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument. As among the Parties, any signatures hereto or notices hereunder
delivered by a Party by facsimile or other electronic transmission (including scanned documents delivered by e-mail) shall be deemed original signatures or notices. 
 Section 4.8 Notices. Any and all notices or demands permitted or required to be given under this Development Agreement shall be in writing and shall be validly given or made if (a) personally
delivered, (b) delivered and confirmed by facsimile or other electronic transmission (including scanned documents delivered by email), (c) by Federal Express or other overnight courier delivery service, which shall be effective as of
confirmation of receipt by the courier at the address for notice hereinafter stated or (d) deposited in the United States mail, first class, postage prepaid, certified or registered, return receipt requested, addressed as follows: 

If to the Trust, to: 
 Chesapeake Granite Wash Trust 
 c/o The Bank of New York Mellon Trust Company, N.A.

 Institutional Trust Services 
 919 Congress Avenue, Suite 500 
 Austin, Texas 78701 

Attention: Michael J. Ulrich 
 Facsimile No.: (512) 236-6599 
 Email: michael.ulrich@bnymellon.com

  
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 With a copy to: 
 Andrews Kurth LLP 
 600 Travis, Suite 4200 

Houston, Texas 77002 
 Attention: W. Lance Schuler 
 Facsimile No.: (713) 238-7193 

Email: lanceschuler@andrewskurth.com 
 If to Chesapeake, to: 
 6100 North Western Ave. 

Oklahoma City, OK 73118 
 Attention: Domenic J. Dell’Osso, Jr. 
 Facsimile No.: (405) 849-6125

 Email: nick.dellosso@chk.com 
 With a copy to: 
 Bracewell & Giuliani LLP 

711 Louisiana Street, Suite 2300 
 Houston, Texas 77002 
 Attention: Michael S. Telle 

Facsimile No. (713) 221-2113 
 Email: michael.telle@bgllp.com 
 Section 4.9 Limitation of Liability. It is
expressly understood and agreed by the Parties that (a) this Development Agreement is executed and delivered by the Trustee not individually or personally, but solely as trustee of the Trust in the exercise of the powers and authority conferred
and vested in it and (b) under no circumstances shall the Trustee be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Trust under this Development Agreement. It is further
expressly understood and agreed by the Parties that neither the Trust nor the Trustee, in its capacity as trustee of the Trust or individually, shall have any authority over, or responsibility or liability for, the drilling of the Development Wells
or any of the other business or commercial activities contemplated by this Development Agreement, all of which are hereby agreed to be the sole responsibility of Chesapeake, and Chesapeake hereby agrees to and hereby does indemnify and agree to hold
harmless each of the Trust and the Trustee, in its capacity as trustee of the Trust and individually, from and against any and all damages, liabilities, expenses, fines, judgments, amounts paid in settlement, reasonable attorneys fees and costs of
investigation, and other expenses reasonably incurred by any of them in connection with or as a result of any of the business or commercial activities contemplated by this Development Agreement or any other matter arising out of this Development
Agreement or any such matter. Chesapeake further agrees to advance any such attorneys’ fees, costs of investigation and other expenses described above as they are incurred. 

  
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 Section 4.10 Severability. If any provision of this Development Agreement or the
application thereof to any Party or circumstance shall be held invalid or unenforceable to any extent, the remainder of this Development Agreement and the application of such provision to the other Parties or circumstances shall not be affected
thereby and shall be enforced to the greatest extent permitted by law. 
 Section 4.11 Termination. This Development
Agreement shall terminate and be deemed null and void as of and following the Drilling Obligation Completion Date, other than the provisions of Section 4.9, which shall continue in full force and effect. 

Section 4.12 Remedies. If Chesapeake fails to perform its obligations under Article II of this Development Agreement, Chesapeake
shall be in default and the Trust shall be entitled to pursue, in its sole discretion, any and all remedies available pursuant to Article III of the Mortgage for the occurrence of a default under Article II of this Agreement. Other than as set forth
in the Mortgage, the Trust shall have no separate cause of action for default by Chesapeake under Article II of this Development Agreement. If Chesapeake fails to perform its obligations under this Development Agreement (other than Article II),
Chesapeake shall be in default and the Trust shall be entitled to pursue, in its sole discretion, any and all remedies available at law and equity. Notwithstanding the foregoing, the Trust waives any and all claims or rights of action to compel
specific performance of Chesapeake’s obligations under this Development Agreement. Additionally, the maximum amount recoverable upon the exercise by the Trust of any remedy under the Mortgage for breach of Section 2.1 of this Development
Agreement shall be $262,700,000, and such amount shall automatically be reduced by an amount that is equal to the product of $2,226,271 multiplied by the cumulative total of all Adjusted Development Well Amounts for all Mineral wells drilled or
caused to be drilled by Chesapeake that qualify as Development Wells (such amount, as reduced from time to time, the “Maximum Liability”). In addition, upon Assignor’s request and at Assignor’s expense, the lien and
security interest evidenced by the Mortgage shall be released as to each Development Well as the same is completed or plugged and abandoned as a dry hole in accordance with this Development Agreement. 

Section 4.13 WAIVER OF DAMAGES. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, NO PARTY SHALL BE LIABLE
HEREUNDER FOR EXEMPLARY, PUNITIVE, SPECIAL, INDIRECT, CONSEQUENTIAL, REMOTE OR SPECULATIVE DAMAGES, WHETHER BASED IN CONTRACT, TORT, STRICT LIABILITY, OTHER LAW OR OTHERWISE; PROVIDED THAT SUCH WAIVER OF CONSEQUENTIAL DAMAGES SHALL NOT APPLY TO ANY
LIABILITY OF CHESAPEAKE FOR BREACH OF ITS OBLIGATIONS UNDER SECTION 2.1, PROVIDED THAT, IN NO EVENT SHALL CHESAPEAKE’S LIABILITY FOR BREACH OF ITS OBLIGATIONS UNDER SECTION 2.1 EXCEED THE MAXIMUM LIABILITY. 

[Signature Pages Follow] 

  
 12 

 IN WITNESS WHEREOF, each Party has caused this Development Agreement to be executed in its
name and behalf and delivered on the date or dates stated in the acknowledgment certificates appended to this Development Agreement, to be effective as of the Effective Time. 

 

					
	Chesapeake Energy Corporation
		
	By:	 	  

		 	Name:	 	Domenic J. Dell’Osso, Jr.
		 	Title:	 	 Executive Vice President and

Chief Financial Officer

	
	Chesapeake Exploration, L.L.C.
		
	By:	 	  

		 	Name:	 	Domenic J. Dell’Osso, Jr.
		 	Title:	 	 Executive Vice President and

Chief Financial Officer

	
	Chesapeake Granite Wash Trust
		
	By:	 	 The Bank of New York Mellon Trust
 Company, N.A., as Trustee

		
	By:	 	  

		 	Name:	 	Michael J. Ulrich
		 	Title:	 	Vice President

 Signature Page to Development Agreement 

					
	STATE OF OKLAHOMA	  	§	  	
		  	§	  	
	COUNTY OF OKLAHOMA	  	§	  	

 This instrument was acknowledged before me on
[—], 2011, by Domenic J. Dell’Osso, Jr., as Executive Vice President and Chief Financial Officer of Chesapeake Energy Corporation, an Oklahoma corporation, on behalf of
said corporation. 
 WITNESS my hand and official seal this [—] day of
[—], 2011. 
  

	
	  

	NOTARY PUBLIC,
	State of Oklahoma
	
	  

	(printed name)

  

	
	My commission expires:
	
	  

	[SEAL]

 Acknowledgment Page to Development Agreement 

					
	STATE OF OKLAHOMA	  	§	  	
		  	§	  	
	COUNTY OF OKLAHOMA	  	§	  	

 This instrument was acknowledged before me on
[—], 2011, by Domenic J. Dell’Osso, Jr., as Executive Vice President and Chief Financial Officer of Chesapeake Exploration, L.L.C., an Oklahoma limited liability
company, on behalf of said limited liability company. 
 WITNESS my hand and official seal this
[—] day of [—], 2011. 

 

	
	  

	NOTARY PUBLIC,
	State of Oklahoma
	
	  

	(printed name)

  

	
	My commission expires:
	
	  

	[SEAL]

 Acknowledgment Page to Development Agreement 

							
	STATE OF TEXAS	 		 	§	  	
		 	§	 		  	
	COUNTY OF TRAVIS	 		 	§	  	

 This instrument was acknowledged before me on
[—], 2011, by Michael J. Ulrich, as Vice President of The Bank of New York Mellon Trust Company, N.A., a national banking association organized under the laws of the United
States of America, as Trustee of Chesapeake Granite Wash Trust, a Delaware statutory trust, on behalf of said national banking association, as trustee of said trust. 
 WITNESS my hand and official seal this [—] day of [—], 2011.

  

	
	  

	NOTARY PUBLIC,
	State of Texas
	
	  

	(printed name)

  

	
	My commission expires:
	
	  

	[SEAL]

 Acknowledgment Page to Development Agreement 

 Exhibit A 
 (Description of AMI Area) 

 Exhibit B 
 [Letterhead of Chesapeake Energy Corporation] 
 [Date] 

Reference is made to that certain Development Agreement (the “Development Agreement”), by and among Chesapeake Energy
Corporation (“Chesapeake”), Chesapeake Exploration, L.L.C. and Chesapeake Granite Wash Trust, a Delaware statutory trust, delivered to be effective as of 12:01 Central Time on July 1, 2011. Capitalized terms used but not
defined herein have the meaning given them in the Development Agreement. 
 Chesapeake hereby certifies to the Trust that
Chesapeake achieved the Total Drilling Target on [insert date] and, therefore, such date shall be, for all purposes, established as the Drilling Obligation Completion Date. 
 The Development Wells drilled to achieve the Total Drilling Target (including the API number of each Development Well), the Adjusted Development Well Amount for each Development Well and the Lateral
Distance Factor and NRI Factor used to calculate the Adjusted Development Well Amount for each Development Well are listed in Annex I attached to this letter. 
 Please sign and return an executed copy of this letter to certify that you require no additional documentation to establish Chesapeake’s satisfaction of its drilling obligations under the Development
Agreement and that [insert date] shall be, for all purposes, established as the Drilling Obligation Completion Date. Nothing in this letter agreement shall be deemed a waiver by the Trust of its rights or remedies under the related conveyance
documents (including with respect to any claim the Trust may have for breach of warranty of title). 
  

			
	Chesapeake Energy Corporation
		
	By:	 	  

		 	Name:
		 	Title:

 Acknowledged and agreed: 
  

					
	Chesapeake Granite Wash Trust
		
	By:	 	The Bank of New York Mellon Trust Company, N.A., as Trustee
			
		 	By:	 	  

		 		 	Name:
		 		 	Title:

 Exhibit C 
 (Target Formation Log)Form of Drilling Support Mortgage

 Exhibit 10.9 
 WHEN RECORDED 
 PLEASE RETURN TO: 
 Chesapeake Energy Corporation 
 Attn:
[—]  
 6100 North Western Avenue 

Oklahoma City, OK 73118 
  

							
		 		 		  	  

		 		 		  	Space above for County Recorder’s Use

 MORTGAGE, WITH POWER OF SALE 
 FROM 
 CHESAPEAKE EXPLORATION, L.L.C., 

as MORTGAGOR 
 TO

 CHESAPEAKE GRANITE WASH TRUST, 
 as MORTGAGEE 
 Dated as of
[—], 2011 
 THIS INSTRUMENT IS TO BE FILED AND RECORDED AS A MORTGAGE IN
THE REAL ESTATE RECORDS OF EACH COUNTY IN WHICH THE LANDS DESCRIBED IN EXHIBIT A, OR ANY PORTION THEREOF, ARE LOCATED. 
 A POWER
OF SALE HAS BEEN GRANTED IN THIS MORTGAGE (AS HEREINAFTER DEFINED). IN CERTAIN JURISDICTIONS WHERE THIS INSTRUMENT MAY BE FILED, A POWER OF SALE MAY ALLOW AGENT (AS HEREINAFTER DEFINED) TO TAKE THE MORTGAGED PROPERTIES (AS HEREINAFTER DEFINED) AND
SELL THEM (OR TO CAUSE THE MORTGAGED PROPERTIES TO BE SOLD) WITHOUT GOING TO COURT IN A FORECLOSURE ACTION UPON DEFAULT BY THE MORTGAGOR (AS SUCH TERMS DEFAULT AND MORTGAGOR ARE HEREINAFTER DEFINED) UNDER THIS MORTGAGE. 

THIS MORTGAGE IS A MORTGAGE ON OIL AND GAS LEASES AND LEASEHOLD ESTATES; AS SUCH, NO REAL ESTATE MORTGAGE TAX IS DUE. 

 
  

 MORTGAGE 
 THIS MORTGAGE WITH POWER OF SALE (this “Mortgage”) is entered into as of [—], 2011, by Chesapeake
Exploration, L.L.C., an Oklahoma limited liability company, as mortgagor (“Mortgagor”), whose address for notice is 6100 North Western Avenue, Oklahoma City, Oklahoma 73118, and Chesapeake Granite Wash Trust, a statutory
trust formed under the laws of the State of Delaware, as mortgagee (“Mortgagee”), whose address for notice is c/o The Bank of New York Mellon Trust Company, N.A., 919 Congress Avenue, Suite 500, Austin Texas 78701.

 R E C I T A L S: 

A. By means of (1) a Term Overriding Royalty Interest Conveyance (PUD), effective as of July 1, 2011, from Mortgagor to
Chesapeake E&P Holding Corporation, an Oklahoma corporation (“Chesapeake Sub”), a true and correct copy of which is attached hereto as Annex A-1 and made a part hereof (the “Term Conveyance
(PUD)”), (2) an Assignment of Overriding Royalty Interest, effective as of July 1, 2011, from Chesapeake Sub to Mortgagee, a true and correct copy of which is attached hereto as Annex A-2 and made a part hereof (the
“Assignment”), and (3) a Perpetual Overriding Royalty Interest Conveyance (PUD), effective as of July 1, 2011, from Mortgagor to Mortgagee, a true and correct copy of which is attached hereto as Annex A-3 and
made a part hereof (the “Perpetual Conveyance (PUD)” and, together with the Term Conveyance (PUD), collectively the “Conveyances”), the “Royalty Interest” (as defined in the
Conveyances) has been conveyed and assigned to Mortgagee, as applicable, from Mortgagor and Chesapeake Sub. Capitalized terms used herein and not otherwise defined shall have the meanings given such terms in the Conveyances. 

B. Chesapeake Energy Corporation (“Chesapeake Parent” and together with Mortgagor,
“Chesapeake”), the sole ultimate parent of Mortgagor, has undertaken certain obligations with respect to the properties described in the Conveyances under that certain Development Agreement, dated effective as of July 1,
2011, between Chesapeake Parent, Mortgagor and Mortgagee (the “Development Agreement”), and Mortgagor is executing this Mortgage to secure the obligations of Chesapeake under the Development Agreement. 

C. Mortgagee has conditioned its execution and delivery of the Perpetual Conveyance (PUD), the Assignment and the Development Agreement
upon the execution and delivery by Mortgagor of this Mortgage, and Mortgagor has agreed to enter into this Mortgage. 
 NOW,
THEREFORE, in order to comply with the terms and conditions of the Development Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Mortgagor hereby agrees with Mortgagee as follows:

 ARTICLE I. 
 Granting Clauses; Secured Obligations 
 Section 1.1 Grant and
Mortgage. Mortgagor, in order to secure the payment and performance of the secured obligations hereinafter referred to and the performance of the 

 
obligations, covenants, agreements, warranties and undertakings of Mortgagor hereinafter described, does hereby MORTGAGE, WARRANT, PLEDGE, HYPOTHECATE and CONFIRM to Mortgagee, its successors and
assigns, the following described rights, titles, interests, properties and estates of Mortgagor (sometimes hereinafter collectively referred to as the “Mortgaged Properties”): 

(a) all of Mortgagor’s right, title, interest and estate in, to and under the oil, gas or other mineral leases described in
Exhibit A attached hereto and made a part hereof (the “Leases”); insofar as and only insofar as such Leases are located within the AMI Area and cover the Target Formation, including such rights in and under the Leases
as may be necessary to drill to, complete in and produce and market crude oil, natural gas and natural gas liquids (collectively, “Hydrocarbons”) from the Target Formation within the AMI Area (the “Retained Mineral
Interests”); 
 (b) a concurrent right, together with Mortgagor, to all assignable easements, servitudes,
rights-of-way, surface leases and other surface rights on and over the Subject Lands (the “Surface Rights”) which are now or hereafter used, or held for use, in connection with the Retained Mineral Interests; 

(c) all assignable licenses, permits and other regulatory approvals held by Mortgagor, solely to the extent they relate to the drilling,
development or production of the Retained Mineral Interests (the “Permits”); 
 but specifically excluding, however, all
of Mortgagor’s rights, titles, and interests in and to (i) any oil, gas, water supply, saltwater disposal or other well of any nature whatsoever now or hereafter located on the Subject Lands, including, without limitation any Development
Wells (each a “Well” and collectively, the “Wells”), (ii) all Excluded Assets (as defined below) and (iii) all personal property, fixtures and equipment in or on or acquired or used in
connection with the ownership or operation of the Wells or the Excluded Assets or the production, storage, treating, conditioning, processing, compressing, dehydrating, gathering, transporting or marketing of Hydrocarbons produced from the Wells or
any Excluded Asset, or the disposal of saltwater or other substances, produced therefrom. 
 As used herein the term “Excluded
Assets” shall mean (i) the Excluded Assets, as such term is defined in the Term Conveyance (PUD), and (ii) the Leases to the extent they cover property outside the AMI Area or any geologic interval other than the Target
Formation. 
 As used herein, “Target Formation” means the Colony Granite Wash formation, being defined as the geologic
interval between the top of the Des Moines formation (or top of the Colony Granite Wash ‘A’ formation) and the top of the Prue formation (or base of the Colony Granite Wash ‘C’ formation) between the stratigraphic equivalent of
the measured depths of 12,285 feet to 12,862 feet as encountered on the electric log of the Lee Roy 1-24H well located in Section 24, Township 11N, Range 18W in Washita County, Oklahoma (API No. 3514921413), a portion of which log is attached
hereto as Exhibit B, recognizing that the actual depth of the Target Formation will vary from depths of approximately 11,500 feet to 13,000 feet across the AMI Area. 

  
 - 2 -

 TO HAVE AND TO HOLD the Mortgaged Properties unto Mortgagee, and Mortgagee’s successor
and assigns, upon the terms, provisions and conditions herein set forth. 
 Section 1.2 Development Agreement and Other
Obligations. This Mortgage is made to secure and enforce the payment and performance of the following obligations, indebtedness and liabilities: 
 (a) The full performance of all obligations, covenants, agreements and undertakings of and by Chesapeake from time to time owing to Mortgagee under (i) Section 2.1 of the Development Agreement
and (ii) under Article II of the Development Agreement (other than Section 2.1); 
 (b) Any sums advanced or expenses
or costs incurred or accrued by Mortgagee (or any receiver appointed hereunder) which are made or incurred pursuant to, or permitted by, the terms hereof, plus interest on any such amounts actually paid by Mortgagee at a rate of interest equal to
the lesser of (i) five percent (5%) per annum or (ii) the maximum rate permitted under applicable law (the “Applicable Rate”), from the date of payment of such expenses or costs until reimbursed; and

 (c) Without limiting the generality of the foregoing, all post-petition interest, expenses, and other duties, damages and
liabilities with respect to indebtedness or other obligations described above in this Section 1.2, which would be owed but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization, or
similar proceeding. 
 Section 1.3 Secured Obligations. The obligations referred to in Section 1.2, and all
renewals, extensions and modifications thereof, and all substitutions therefor, in whole or in part, are herein sometimes referred to as the “secured obligations” or the “obligations secured hereby”.
It is contemplated and acknowledged that the secured obligations may include obligations hereafter arising and that this Mortgage shall have effect, as of the date hereof, to secure all secured obligations, regardless of whether any amounts exist on
the date hereof or arise on a later date or, whether having arisen or been advanced, are later repaid in part or in whole and further obligations arise or advances are made at a later date. 

Section 1.4 Limitation on Obligations. The Mortgagor and Mortgagee hereby agree and acknowledge that, as of the date hereof, the
maximum amount recoverable under this Mortgage for any failure by Chesapeake to perform the obligations described in Section 1.2(a)(i) above is $262,700,000; provided, that such amount will be adjusted downward, from time to time,
pursuant to Section 4.12 of the Development Agreement (such amount, as reduced from time to time, the “Maximum Liability”); provided, however, such limitation shall not include interest or attorneys’
fees due or recoverable hereunder. Mortgagor and Mortgagee further agree and acknowledge that pursuant to Section 1.1 above, the mortgage lien created by this Mortgage does not cover or extend to any Wells or Excluded Assets. Accordingly, the
mortgage lien created by this Mortgage shall automatically terminate on a wellbore only basis (as that term is commonly understood in the Oklahoma oil and gas industry) as to each Development Well as the same is completed or is plugged and
abandoned. Upon Mortgagor’s request and at Mortgagor’s expense, Mortgagee shall promptly execute and deliver a partial release, which will evidence the 

  
 - 3 -

 
release in full of the mortgage lien created by this Mortgage with respect to any Development Well. 
 Section 1.5 Maturity Date. The obligations, covenants, agreements and undertakings described in Section 1.2(a) of this Mortgage are due to be performed on or before June 30, 2016 (the
“Maturity Date”); provided, that if the Total Drilling Target (as defined in the Development Agreement) has not been achieved by such date, this Mortgage shall continue in full force and effect. 

Section 1.6 Grant of Security Interest. In order to further secure the payment of the secured obligations hereinafter referred to
and the performance of the obligations, covenants, agreements, warranties, indemnities and undertakings of Mortgagor described herein, Mortgagor does hereby grant to Mortgagee a security interest in and to the Mortgaged Properties (whether now owned
or hereafter acquired by operation of law or otherwise) insofar as any of the Mortgaged Properties consist of personal property of any kind or character defined in and subject to the provisions of Article 9 of the Uniform Commercial Code as in
effect from time to time as part of the laws applicable to this Mortgage (the “Applicable UCC”), and such personal property being the “Collateral”. Except as otherwise expressly provided in this
Mortgage, all terms in this Mortgage relating to the Mortgaged Properties constituting personal property and the grant of the foregoing security interest which are defined in the Applicable UCC shall have the meanings assigned to them in Article 9
(or, absent definition in Article 9, in any other Article) of the Applicable UCC, as those meanings may be amended, revised or replaced from time to time. Notwithstanding the foregoing, the parties intend that the terms used herein which are defined
in the Applicable UCC have, at all times, the broadest and most inclusive meanings possible. If the Applicable UCC shall in the future be amended or held by a court to define any term used herein more narrowly, or less inclusively, than the UCC in
effect on the date of this Mortgage, such amendment or holding shall be disregarded in defining terms used in this Mortgage. 

This Mortgage constitutes a security agreement as such term is used in the Uniform Commercial Code of the State in which the Mortgaged
Property is located (the “OK UCC”). The Mortgagor hereby authorizes Mortgagee to file any financing statements and terminations thereof or amendments or modifications thereto without the signature of the Mortgagor, where
permitted by law; provided, however, this authorization does not release Mortgagor from its general duty under this Mortgage, the Development Agreement or the Conveyances to take all actions necessary to perfect and maintain the perfected interest
of Mortgagee in the Mortgaged Properties. 
 ARTICLE II. 
 Covenants 
 Section 2.1 Mortgagor warrants, represents, covenants and
agrees that the Mortgaged Properties are free and clear of all Encumbrances, subject only to the Permitted Encumbrances and that, to Mortgagor’s knowledge, Mortgagor is lawfully seized of the estates and interests granted to Mortgagor under the
Leases. This Mortgage is subject to (but in no event shall this Mortgage be an assumption of) the Permitted Encumbrances, in each case to the extent and only for so long as the same are valid and subsisting and affect title to the Mortgaged
Properties; provided, that the foregoing is not intended to, and shall not, subordinate the lien 

  
 - 4 -

 
created hereby. 
 Section 2.2 Mortgagor hereby covenants with the
Mortgagee as follows: 
 (a) Further Assurance. Mortgagor will, on request of Mortgagee, (i) promptly correct any
defect, error or omission which may be discovered in the contents of this Mortgage, or in the execution or acknowledgment of this Mortgage; (ii) execute, acknowledge, deliver and record or file such further instruments (including further
mortgages or financing statements) and do such further acts as may be necessary, desirable or proper to carry out more effectively the purposes of this Mortgage; and (iii) execute, acknowledge, deliver, and file or record any document or
instrument (including any financing statements) reasonably requested by Mortgagee to protect the mortgage lien hereunder against the rights or interests of third persons. Mortgagor shall pay all reasonable costs connected with any of the foregoing.

 (b) Name and Place of Business. Mortgagor will not cause or permit any change to be made in its name, identity,
limited liability company structure, federal employer identification number or state of organization (whether by merger or otherwise) unless Mortgagor shall have notified Mortgagee of such change at least ten (10) days prior to the effective
date of such change, and shall have first taken all action required by Mortgagee for the purpose of further perfecting or protecting the mortgage lien in the Mortgaged Properties created hereby. Mortgagor’s exact name is the name set forth in
this Mortgage. Mortgagor is a limited liability company organized under the laws of the State of Oklahoma. 
 Section 2.3 Except
as permitted in Section 11.02 of the applicable Conveyance or Article III of the Development Agreement, Mortgagor will not Transfer any of the Mortgaged Properties without the prior written consent of the Mortgagee. If any Mortgaged Property is
permitted to be Transferred pursuant to Section 11.02 of the applicable Conveyance or Article III of the Development Agreement, the Mortgagee will promptly execute, acknowledge and deliver a release of this Mortgage to the extent applicable to
such Mortgaged Properties proposed to be Transferred pursuant to Section 11.02 of the applicable Conveyance or Article III of the Development Agreement. 
 ARTICLE III. 
 Remedies Upon Default 

Section 3.1 Default. The term “default” as used in this Mortgage means: 

(a) the failure by Chesapeake to perform any obligation required to be performed by it under Section 2.1 of the Development
Agreement on or before the Maturity Date; 
 (b) failure by Chesapeake, within thirty (30) days after written notice
thereof from the Mortgagee, to cure a breach in the due performance or observance of any other covenant or agreement contained in Article II of the Development Agreement other than under Section 2.1 of the Development Agreement; 

(c) failure by the Mortgagor, within thirty (30) days after written notice thereof from the Mortgagee, to cure a breach in the due
performance or observance of any covenant or agreement contained in this Mortgage; or 

  
 - 5 -

 (d) this Mortgage shall fail to constitute a mortgage lien on any material part of the
Mortgaged Properties (subject only to Permitted Encumbrances), excluding those Mortgaged Properties (or any portion thereof) that have been released from this Mortgage pursuant to the terms hereof or the terms of the Development Agreement, and such
failure is not cured within thirty (30) days after written notice to Mortgagor. 
 Section 3.2 Remedies. 

(a) After (i) the occurrence of a default under Section 3.1(a) of this Mortgage or (ii) the occurrence of any other
default by Mortgagor under this Mortgage and during the continuance of such default, the lien evidenced hereby shall be subject to foreclosure, as Mortgagee may elect, in any manner provided for herein or provided for or required by law. The
existence of any default under Section 3.1(a) can be determined only at the Maturity Date. Accordingly, notwithstanding any provision hereof or of law to the contrary, the secured obligations set forth in Section 2.1 of the Development
Agreement are not subject to acceleration. 
 (b) After (i) the occurrence of a default under Section 3.1(a) of this
Mortgage or (ii) the occurrence of any other default by Mortgagor under this Mortgage and during the continuance of such default, Mortgagee is authorized prior or subsequent to the institution of any foreclosure proceedings to enter upon and to
cause its agents to enter upon, the Mortgaged Properties, or any part thereof, and to exercise without interference from Mortgagor any and all rights which Mortgagor has with respect to the management, possession and operation of the Mortgaged
Properties. All costs, expenses and liabilities of every character incurred by Mortgagee in managing such properties shall constitute demand obligations owing by Mortgagor and constitute a portion of the secured obligations. 

(c) After (i) the occurrence of a default under Section 3.1(a) of this Mortgage or (ii) the occurrence of any other
default by Mortgagor under this Mortgage and during the continuance of such default, Mortgagee shall have the right and power to sell, to the extent permitted by law, at one or more sales, as an entirety or in parcels, as Mortgagee may elect, the
Mortgaged Properties, at such place or places and otherwise in such manner and upon such notice as may be required by law, or, in the absence of any such requirement, as Mortgagee may deem appropriate, and to make conveyance to the purchaser or
purchasers. Mortgagee may postpone the sale of all or any portion of the Mortgaged Properties by public announcement at the time and place of such sale and from time to time thereafter may further postpone such sale by public announcement made at
the time of sale fixed by the preceding postponement. The right of sale hereunder shall not be exhausted by one or any sale, and Mortgagee may make other and successive sales until the sooner of the full satisfaction of the secured obligations or
the legal sale of all of the Mortgaged Properties. 
 (d) After the occurrence of a default under Section 3.1(a) of this
Mortgage, Mortgagee, in lieu of or in addition to exercising the power of sale hereinabove and hereafter given, may proceed by a suit or suits in equity or at law, for one or more of the following: (i) a foreclosure hereunder or in aid of the
execution of any power herein granted, (ii) the appointment of a receiver pending any foreclosure hereunder or the sale of the Mortgaged Properties or (iii) the collection of damages from Chesapeake for failure to perform Chesapeake’s
obligations 

  
 - 6 -

 
under Section 2.1 of the Development Agreement on or before the Maturity Date; provided that, in no event shall Chesapeake be personally liable to Mortgagee for failure to perform the
obligations under Section 2.1 of the Development Agreement in excess of the Maximum Liability at the time of determination of such damages. After the occurrence of any default by Mortgagor under this Mortgage other than under
Section 3.1(a) of this Mortgage and during the continuance of such default, Mortgagee, in lieu of or in addition to exercising the power of sale hereinabove and hereafter given, may proceed by a suit or suits in equity or at law, for one or
more of the following: (i) a foreclosure hereunder or in aid of the execution of any power herein granted, (ii) the appointment of a receiver pending any foreclosure hereunder or the sale of the Mortgaged Properties or (iii) the
enforcement of any other appropriate legal or equitable remedy. In addition to all other remedies herein provided for, Mortgagor agrees that after (i) the occurrence of a default under Section 3.1(a) of this Mortgage or (ii) the
occurrence of any other default by Mortgagor under this Mortgage and during the continuance of such default, Mortgagee shall, as a matter of right, be entitled to the appointment of a receiver or receivers to be designated by Mortgagee for all or
any part of the Mortgaged Properties whether such receivership be incident to a proposed sale of such properties (or any of them) or otherwise, and Mortgagor does hereby consent to the appointment of such receiver or receivers, and to the maximum
extent permitted by law, waive any and all rights to notice and hearing regarding such appointment or appointments. 
 (e)
Mortgagee shall have the right to become the purchaser at any sale held by Mortgagee or by any court, receiver or public officer, and shall have the right to credit upon the amount of the bid made therefor the amount payable out of the net proceeds
of such sale to it. 
 (f) Any sale or sales of the Mortgaged Properties, whether under the power of sale herein granted and
conferred or by virtue of judicial proceedings, shall operate to divest all right, title, interest, claim and demand whatsoever either at law or in equity, of Mortgagor of, in and to the premises and the property sold, and shall be a perpetual bar,
both at law and in equity, against Mortgagor, Mortgagor’s successors or assigns, and against any and all Persons claiming or who shall thereafter claim all or any of the property sold from, through or under Mortgagor, or Mortgagor’s
successors or assigns. 
 (g) All costs and expenses (including attorneys’ fees) incurred by Mortgagee in protecting and
enforcing the rights of Mortgagee hereunder shall constitute a demand obligation owing by Mortgagor to Mortgagee, all of which shall constitute a portion of the secured obligations. 

(h) Any sale by Mortgagee of the Mortgaged Properties may be made in any county in which any part of the Mortgaged Properties to be sold
at such sale may be situated. Mortgagee may, from time to time, postpone the sale by public announcement thereof at the time and place noticed therefor. If the Mortgaged Properties consists of several parcels or interests, Mortgagee may designate
the order in which the same shall be offered for sale or sold. Mortgagor waives all rights to direct the order in which any of the Mortgaged Properties will be sold in the event of any sale under this Mortgage, and also any right to have any of the
Mortgaged Properties marshaled upon any sale. 
 (i) Notwithstanding any other provisions of this Mortgage, any lease of
Minerals 

  
 - 7 -

 
covered by this Mortgage which is subject to the Mineral Leasing Act of 1920, as amended, and the regulations promulgated thereunder, shall not be sold or otherwise disposed of to any party other
than the citizens of the United States, or to associations of such citizens or to any corporation organized under the laws of the United States, or any state or territory thereof that are qualified to own or control interests in such leases under
the provisions of such Act and regulations, or to Persons who may acquire ownership or interest in such leases under the provisions of 30 U.S.C. §184(g) if applicable, as such Act or regulations are now or may be from time to time in effect.

 (j) Without limitation of any of the foregoing remedies, Mortgagor hereby grants to and confers on Mortgagee the power to
sell all or any portion of the Mortgaged Properties in the manner and pursuant to the procedures set forth in the “Oklahoma Power of Sale Mortgage Foreclosure Act,” 46 O.S. Supp. §§ 40-49, as the same may be hereafter amended and
in effect from time to time (the “Oklahoma POS Act”) or pursuant to other applicable statutory or judicial authority. If no cure is effected within the time limits set forth in the Oklahoma POS Act, Mortgagee may then proceed
in the manner and subject to the conditions of the Oklahoma POS Act to send to Mortgagor and other necessary parties a notice of sale and may sell and convey the Mortgaged Properties in accordance with the Oklahoma POS Act. Mortgagee may foreclose
this Mortgage by exercising said power of sale or, at Mortgagee’s sole option, by judicial foreclosure proceedings as provided by law. No action of Mortgagee based upon the provisions contained herein or in the Oklahoma POS Act, including,
without limitation, the giving of the notice of intent to foreclose by power of sale or the notice of sale, shall constitute an election of remedies which would preclude Mortgagee from accelerating the secured obligations and pursuing judicial
foreclosure before or at any time after commencement of the power of sale foreclosure procedure. Notwithstanding anything contained in this Mortgage to the contrary, any notices of sale given in accordance with the requirements of the Oklahoma POS
Act shall constitute sufficient notice of sale. The conduct of a sale pursuant to a power of sale shall be sufficient hereunder if conducted in accordance with the requirements of the Oklahoma POS Act and other governmental requirements of the State
of Oklahoma in effect at the time of such sale, notwithstanding any other provision contained in this Mortgage to the contrary. In the event of conflict between the provisions hereof and the Oklahoma POS Act, the Oklahoma POS Act shall control.

 A POWER OF SALE HAS BEEN GRANTED IN THIS MORTGAGE. A POWER OF SALE MAY ALLOW THE MORTGAGEE TO TAKE THE MORTGAGED
PROPERTY AND SELL IT WITHOUT GOING TO A COURT IN A FORECLOSURE ACTION UPON DEFAULT BY MORTGAGOR UNDER THIS MORTGAGE. 
 At any
such sale: (1) it shall not be necessary for the Mortgagee to have physical or constructive possession of the Mortgaged Properties (the Mortgagor hereby covenanting and agreeing to deliver any portion of the Mortgaged Properties not actually or
constructively possessed by the Mortgagee immediately upon the Mortgagee’s demand) and the title to and right of possession of any such property shall pass to the purchaser thereof as completely as if the same had been actually present and
delivered to purchaser at such sale; (2) each instrument of conveyance executed by the Mortgagee shall contain a special warranty of title, binding upon the Mortgagor and its successors and assigns;
(3)

  
 - 8 -

 
each and every recital contained in any instrument of conveyance made by the Mortgagee shall conclusively establish the truth and accuracy of the matters recited therein, including, without
limitation, nonpayment or nonperformance of the secured obligations, advertisement and conduct of such sale in accordance with applicable law; (4) any and all prerequisites to the validity thereof shall be conclusively presumed to have been
performed; (5) the receipt of the Mortgagee or of such other party or officer making the sale shall be a sufficient discharge to the purchaser or purchasers for its purchase money and no such purchaser or purchasers, or its assigns or personal
representatives, shall thereafter be obligated to see to the application of such purchase money, or be in any way answerable for any loss, misapplication or nonapplication thereof; and (6) to the fullest extent permitted by applicable law, the
Mortgagor shall be completely and irrevocably divested of all of its right, title, interest, claim and demand whatsoever, either at law or in equity, in and to the Mortgaged Property sold and such sale shall be a perpetual bar both at law and in
equity against the Mortgagor, and against any and all other persons claiming or to claim the property sold or any part thereof, by, through or under the Mortgagor. 
 (k) NOTWITHSTANDING ANYTHING CONTAINED HEREIN TO THE CONTRARY, MORTGAGEE WAIVES ANY AND ALL CLAIMS OR RIGHTS OF ACTION TO COMPEL SPECIFIC PERFORMANCE OF MORTGAGEE’S OBLIGATIONS UNDER THIS
MORTGAGE OR THE DEVELOPMENT AGREEMENT. 
 (l) NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS MORTGAGE, NO PARTY
HERETO SHALL BE LIABLE HEREUNDER FOR EXEMPLARY, PUNITIVE, SPECIAL, INDIRECT, CONSEQUENTIAL, REMOTE OR SPECULATIVE DAMAGES, WHETHER BASED IN CONTRACT, TORT, STRICT LIABILITY, OTHER LAW OR OTHERWISE; PROVIDED THAT SUCH WAIVER OF CONSEQUENTIAL DAMAGES
SHALL NOT APPLY TO ANY LIABILITY OF MORTGAGOR FOR BREACH OF ITS OBLIGATIONS UNDER SECTION 2.1 OF THE DEVELOPMENT AGREEMENT, PROVIDED THAT, IN NO EVENT SHALL MORTGAGOR’S LIABILITY FOR BREACH OF ITS OBLIGATIONS UNDER SECTION 2.1 OF THE
DEVELOPMENT AGREEMENT EXCEED THE MAXIMUM LIABILITY. 
 Section 3.3 Proceeds of Foreclosure. The proceeds of any sale
held in foreclosure of the mortgage lien evidenced hereby shall be applied as follows, except as otherwise required by applicable law: 
 FIRST, to the payment of all necessary costs and expenses incident to such foreclosure sale, including but not limited to reasonable attorney’s fees, all court costs and charges of every
character in the event foreclosed by suit or any judicial proceeding, if any; 
 SECOND, to be applied to the payment of
the secured obligations described herein up to the amount of the Maximum Liability; and 
 THIRD, the remainder, if any
there shall be, shall be paid to Mortgagor, or to Mortgagor’s successors or assigns, or such other Persons as may be entitled thereto by law. 

  
 - 9 -

 Section 3.4 Discretion as to Security. Mortgagee may resort to any security given by
this Mortgage, in whole or in part, and in such portions and in such order as may seem best to Mortgagee in its sole and uncontrolled discretion, and any such action shall not in any way be considered as a waiver of any of the rights, benefits,
liens or security interests evidenced by this Mortgage. 
 Section 3.5 Mortgagor’s Waiver of Certain Rights. To the
full extent Mortgagor may do so, Mortgagor agrees that Mortgagor will not at any time insist upon, plead, claim or take the benefit or advantage of any law now or hereafter in force providing for any valuation, stay, extension or redemption, and
Mortgagor, for Mortgagor, Mortgagor’s successors and assigns, and for any and all Persons ever claiming any interest in the Mortgaged Properties, to the extent permitted by applicable law, hereby waives and releases all rights of valuation,
stay of execution, redemption, notice of intention to mature or declare due the whole of the secured obligations, notice of election to mature or declare due the whole of the secured obligations and all rights to a marshaling of assets of Mortgagor,
including the Mortgaged Properties, or to a sale in inverse order of alienation in the event of foreclosure of the mortgage lien hereby created; provided, however, that in the event of any foreclosure of this Mortgage with respect to the Mortgaged
Properties, or any part thereof, appraisement of the Mortgaged Properties is hereby waived or not waived, at the option of Mortgagee, such option to be exercised at the time of the entry of the foreclosure judgment or any time prior thereto.
Mortgagor shall not have or assert any right under any statute or rule of law pertaining to the marshaling of assets, sale in inverse order of alienation, the exemption of homestead, the administration of estates of decedents or other matters
whatsoever to defeat, reduce or affect the right under the terms of this Mortgage to a sale of the Mortgaged Properties for the collection of the secured obligations without any prior or different resort for collection, or the right under the terms
of this Mortgage to the payment of the secured obligations out of the proceeds of sale of the Mortgaged Properties in preference to every other claimant whatever. If any law referred to in this section and now in force, of which Mortgagor or
Mortgagor’s successors or assigns or any other Persons claiming any interest in the Mortgaged Properties might take advantage despite this section, shall hereafter be repealed or cease to be in force, such law shall not thereafter be deemed to
preclude the application of this section. 
 Section 3.6 No Release of Obligations. Neither Mortgagor nor any other
Person hereafter obligated for payment of all or any part of the secured obligations shall be relieved of such secured obligations by reason of (a) the failure of Mortgagee or any other Person so obligated to foreclose the lien created by this
Mortgage or to enforce any provision hereunder or under the Development Agreement; or (b) the release, regardless of consideration, of the Mortgaged Properties or any portion thereof or interest therein or the addition of any other property to
the Mortgaged Properties. Mortgagee may release, regardless of consideration, any part of the Mortgaged Properties without, as to the remainder, in any way impairing, affecting, subordinating or releasing the mortgage lien created in or evidenced by
this Mortgage or its stature as a first and prior lien and security interest in and to the Mortgaged Properties. For payment of the secured obligations, Mortgagee may resort to any security therefor held by Mortgagee in such order and manner as
Mortgagee may elect. 
 Section 3.7 Discontinuance of Proceedings. In case Mortgagee shall have proceeded to invoke any
right, remedy or recourse permitted hereunder or under the 

  
 - 10 -

 
Development Agreement and shall thereafter elect to discontinue or abandon same for any reason, Mortgagee shall have the unqualified right to do so and, in such an event, Mortgagor and Mortgagee
shall be restored to their former positions with respect to the secured obligations, this Mortgage, the Development Agreement, the Mortgaged Properties and otherwise, and the rights, remedies, recourses and powers of Mortgagee shall continue as if
same had never been invoked. 
 Section 3.8 Attorney-in-Fact. The Mortgagor hereby irrevocably appoints, effective upon
the occurrence and during the continuance of a default hereunder, the Mortgagee, with full power of substitution, to be the attorney-in-fact of the Mortgagor and in the name and on behalf of the Mortgagor to execute and deliver any deeds, transfers,
conveyances, assignments, assurances and notices which the Mortgagor ought to execute and deliver and do and perform any and all such acts and things which the Mortgagor ought to do and perform under the covenants herein contained and generally, to
use the name of the Mortgagor in the exercise of all or any of the powers hereby conferred on the Mortgagee. 
 Section 3.9
Exercise of Rights under the Applicable UCC. If a default shall occur and be continuing, Mortgagee may exercise its rights of enforcement with respect to the Collateral under the Applicable UCC, or under any other statute in force in any
state to the extent the same is applicable law. Cumulative of the foregoing and the other provisions of this Section 3.9, to the extent permitted by applicable law: 
 (a) upon the occurrence and during the continuance of a default Mortgagee may enter upon the Mortgaged Properties or otherwise upon Mortgagor’s premises to take possession of, assemble and collect
the Collateral; 
 (b) upon the occurrence and during the continuance of a default Mortgagee may require Mortgagor to assemble
the Collateral and make it available at a place Mortgagee designates which is mutually convenient to allow Mortgagee to take possession or dispose of the Collateral; 
 (c) written notice mailed to Mortgagor as provided herein at least ten (10) days prior to the date of public sale of the Collateral or prior to the date after which private sale of the Collateral
will be made shall constitute reasonable notice; 
 (d) in the event of a foreclosure of the liens, privileges or security
interests evidenced hereby, the Collateral, or any part thereof, and the Mortgaged Properties, or any part thereof, may, at the option of Mortgagee, be sold, as a whole or in parts, together or separately (including, without limitation, where a
portion of the Mortgaged Properties is sold, the Collateral related thereto may be sold in connection therewith); 
 (e) the
expenses of sale provided for in clause FIRST of Section 3.3 shall include the reasonable expenses of retaking the Collateral, or any part thereof, holding the same and preparing the same for sale or other disposition; and 

(f) with respect to any sale of real property included in the Mortgaged Properties made under the powers of sale herein granted and
conferred, Mortgagee may, to the extent permitted by applicable law, include in such sale any personal property included in the Collateral and relating to such real property. 

  
 - 11 -

 Section 3.10 Assignment of Operator Rights. In the event Mortgagee forecloses upon
any of the Retained Mineral Interests as to which Mortgagor or any of its Affiliates is the operator, Mortgagor shall, or shall cause its Affiliate to, assign to Mortgagee or the purchaser at foreclosure, upon written request, all rights and
obligations Mortgagor or its Affiliate may have as operator of such Retained Mineral Interests. Any such assignment shall not affect any rights of Mortgagor or its Affiliate in any Lease other than as to the Target Formation. 

ARTICLE IV. 

Miscellaneous 
 Section 4.1 Filing. This Mortgage is to be filed for record in the real property records (including the tract index) of each county where any part of the Mortgaged Properties is situated. The
mailing address of Mortgagor is the address of Mortgagor set forth at the end of this Mortgage and the address of Mortgagee from which information concerning the mortgage lien hereunder may be obtained is the address of Mortgagee set forth at the
end of this Mortgage. Nothing contained in this paragraph shall be construed to limit the scope of this Mortgage. Without limiting any other provision herein, Mortgagor hereby authorizes Mortgagee to file, in any filing or recording office, one or
more financing statements describing the Collateral and any renewal or continuation statements thereof. 
 Section 4.2
Waivers. Mortgagee may at any time and from time to time in writing waive compliance by Mortgagor with any covenant herein made by Mortgagor to the extent and in the manner specified in such writing, or consent to Mortgagor’s doing any
act which hereunder Mortgagor is prohibited from doing, or to Mortgagor’s failing to do any act which hereunder Mortgagor is required to do, to the extent and in the manner specified in such writing, or release any part of the Mortgaged
Properties or any interest therein from the liens and security interests of this Mortgage. Any party liable, either directly or indirectly, for the secured obligations or for any covenant herein or in the Development Agreement may be released from
all or any part of such obligations without impairing or releasing the liability of any other party. No such act shall in any way impair any rights or powers hereunder except to the extent specifically agreed to in such writing. 

Section 4.3 No Impairment of Security. To the extent allowed by applicable law, the lien, privilege, security interest and other
security rights hereunder shall not be impaired by any indulgence, moratorium or release which may be granted including, but not limited to, any renewal, extension or modification which may be granted with respect to any secured obligations, or any
surrender, compromise, release, renewal, extension, exchange or substitution which may be granted in respect of the Mortgaged Properties, or any part thereof or any interest therein, or any release or indulgence granted to any endorser, guarantor or
surety of any secured obligations. 
 Section 4.4 Acts Not Constituting Waiver. Any default may be waived without waiving
any other prior or subsequent default. Any default may be remedied without waiving the default remedied. Neither failure to exercise, nor delay in exercising, any right, power or remedy upon any default shall be construed as a waiver of such default
or as a waiver of the right to exercise any such right, power or remedy at a later date. No single or partial exercise of any right, power or remedy hereunder shall exhaust the same or shall preclude any

  
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other or further exercise thereof, and every such right, power or remedy hereunder may be exercised at any time and from time to time. No modification or waiver of any provision hereof nor
consent to any departure by Mortgagor therefrom shall in any event be effective unless the same shall be in writing and signed by Mortgagee and then such waiver or consent shall be effective only in the specific instances, for the purpose for which
given and to the extent therein specified. No notice nor demand on Mortgagor in any case shall of itself entitle Mortgagor to any other or further notice or demand in similar or other circumstances. Acceptance of any payment in an amount less than
the amount then due on any secured obligations shall be deemed an acceptance on account only and shall not in any way excuse the existence of a default hereunder. 
 Section 4.5 Forbearance or Extension. No forbearance and no extension of the time for the payment of the obligations secured hereby shall operate to release, discharge, modify, change or affect, in
whole or in part, the liability of Mortgagor hereunder for the payment of the obligations or performance of the obligations secured hereby, or the liability of any other Person hereunder or for the payment of the obligations secured hereby.

 Section 4.6 Place of Payment. All secured obligations which may be owing hereunder at any time by Mortgagor shall be
payable at the place designated in the Development Agreement (or if no such designation is made, at the address of Mortgagee indicated at the end of this Mortgage), or at such other place as Mortgagee may designate in writing. 

Section 4.7 Application of Payments to Certain Obligations. If any part of the secured obligations cannot be lawfully secured by
this Mortgage or if any part of the Mortgaged Properties cannot be lawfully subject to the lien, privilege and security interest hereof to the full extent of such obligations, then all payments made shall be applied on said obligations first in
discharge of that portion thereof which is not secured by this Mortgage. 
 Section 4.8 Compliance With Usury Laws. It is
the intent of Mortgagor and Mortgagee to contract in strict compliance with applicable usury law from time to time in effect. In furtherance thereof, it is stipulated and agreed that none of the terms and provisions contained herein, in the
Development Agreement or in the Conveyances shall ever be construed to create a contract to pay, for the use, forbearance or detention of money, interest in excess of the maximum amount of interest permitted to be collected, charged, taken, reserved
or received by applicable law from time to time in effect. 
 Section 4.9 Release of Mortgage. In addition to the partial
releases required pursuant to Section 1.4 hereof, if Mortgagor has satisfied its obligations under Article II of the Development Agreement (as determined in accordance with the Development Agreement), the liens and security interests created by
this Mortgage shall automatically terminate and upon request by Mortgagor, Mortgagee shall promptly cause satisfaction, discharge and release of this Mortgage to be entered upon the record at the expense of Mortgagor and shall execute and deliver or
cause to be executed and delivered such instruments of satisfaction, reassignment and/or release as may be appropriate. 

Section 4.10 Notice. All notices, requests, consents, demands and other communications required or permitted hereunder or under
the Development Agreement shall be 

  
 - 13 -

 
in writing and, unless otherwise specifically provided in the Development Agreement, shall be deemed sufficiently given or furnished if delivered by personal delivery, by telefacsimile, by
delivery service with proof of delivery, or by registered or certified United States mail, postage prepaid, at the addresses specified at the end of this Mortgage (unless changed by similar notice in writing given by the particular party whose
address is to be changed). Any such notice or communication shall be deemed to have been given (a) in the case of personal delivery or delivery service, as of the Business Day of first attempted delivery at the address and in the manner
provided herein, (b) in the case of telefacsimile, upon receipt, and (c) in the case of registered or certified United States mail, three (3) days after deposit in the mail. Notwithstanding the foregoing, or anything else in the
Development Agreement which may appear to the contrary, any notice given in connection with a foreclosure of the mortgage lien created hereunder, or otherwise in connection with the exercise by Mortgagee of its rights hereunder or under the
Development Agreement, which is given in a manner permitted by applicable law shall constitute proper notice; without limitation of the foregoing, notice given in a form required or permitted by statute shall (as to the portion of the Mortgaged
Properties to which such statute is applicable) constitute proper notice. 
 Section 4.11 Invalidity of Certain
Provisions. A determination that any provision of this Mortgage is unenforceable or invalid shall not affect the enforceability or validity of any other provision and the determination that the application of any provision of this Mortgage to
any Person or circumstance is illegal or unenforceable shall not affect the enforceability or validity of such provision as it may apply to other Persons or circumstances. 
 Section 4.12 Gender; Titles; Construction. All references in this Mortgage to articles, sections, subsections and other subdivisions refer to corresponding articles, sections, subsections and other
subdivisions of this Mortgage unless expressly provided otherwise. Titles appearing at the beginning of any of such subdivisions are for convenience only and shall not constitute part of such subdivisions and shall be disregarded in construing the
language contained in such subdivisions. The words “this Mortgage”, “this instrument”, “herein”, “hereof”, “hereunder” and words
of similar import refer to this Mortgage as a whole and not to any particular subdivision unless expressly so limited. Unless the context otherwise requires: “including” and its grammatical variations mean “including
without limitation”; “or” is not exclusive; words in the singular form shall be construed to include the plural and vice versa; words in any gender include all other genders; references herein to any instrument or
agreement refer to such instrument or agreement as it may be from time to time amended or supplemented; and references herein to any Person include such Person’s successors and assigns. All references in this Mortgage to Exhibits and Annexes
refer to Exhibits and Annexes to this Mortgage unless expressly provided otherwise, and all such Exhibits and Annexes are hereby incorporated herein by reference and made a part hereof for all purposes. This Mortgage has been drafted with the joint
participation of Mortgagor and Mortgagee and shall be construed neither against nor in favor of either such party but rather in accordance with the fair meaning hereof. 
 Section 4.13 Recording. Mortgagor will cause this Mortgage and all amendments and supplements thereto and substitutions therefor to be recorded, filed, re-recorded and refiled in such manner and in
such places as Mortgagee shall reasonably request and will pay all such recording, filing, re-recording and refiling taxes, fees and other charges. 

  
 - 14 -

 Section 4.14 Certain Obligations of Mortgagor. Without limiting Mortgagor’s
obligations hereunder, Mortgagor’s liability hereunder and the obligations secured hereby shall extend to and include all post petition interest, expenses and other duties and liabilities with respect to Mortgagor’s obligations hereunder
which would be owed but for the fact that the same may be unenforceable due to the existence of a bankruptcy, reorganization or similar proceeding. 
 Section 4.15 Authority of Mortgagee. All Persons shall be entitled to rely on the releases, waivers, consents, approvals, notifications and other acts of Mortgagee without the joinder of any party
other than Mortgagee in such releases, waivers, consents, approvals, notifications or other acts. 
 Section 4.16
Counterparts. This Mortgage may be executed in several counterparts, all of which are identical, except that, to facilitate recordation, certain counterparts hereof may include only that portion of Exhibit A and the applicable
Exhibit A to the Conveyances which contains descriptions of the properties located in (or otherwise subject to the recording or filing requirements or protections of the recording or filing acts or regulations of) the recording jurisdiction
in which the particular counterpart is to be recorded, and other portions of Exhibit A and the applicable Exhibit A to the Conveyances shall be included in such counterparts by reference only. All of the counterparts hereof together
shall constitute one and the same instrument. An executed counterpart of this Mortgage containing the full text of Exhibit A and Annexes A-1, A-2 and A-3 (although omitting the exhibits and schedules to such
Annexes) is recorded in the real property records of Washita County, Oklahoma. 
 Section 4.17 Successors and Assigns.
The terms, provisions, covenants, representations, indemnifications and conditions hereof shall be binding upon Mortgagor, and the successors and assigns of Mortgagor, and shall inure to the benefit of Mortgagee and its successors and assigns, and
shall constitute covenants running with the Mortgaged Properties. All references in this Mortgage to Mortgagor or Mortgagee shall be deemed to include all such successors and assigns. 

Section 4.18 FINAL AGREEMENT OF THE PARTIES. THE WRITTEN TRANSACTION DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 

Section 4.19 CHOICE OF LAW. WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW THAT MAY CAUSE THE APPLICATION OF LAWS OF ANY
OTHER JURISDICTION, THIS MORTGAGE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF OKLAHOMA. 
 Section 4.20 EXCULPATION PROVISIONS. EACH OF THE PARTIES HERETO SPECIFICALLY AGREES THAT IT HAS A DUTY TO READ THIS MORTGAGE; AND AGREES THAT IT IS CHARGED WITH NOTICE AND KNOWLEDGE OF
THE TERMS OF THIS MORTGAGE; THAT IT HAS IN FACT 

  
 - 15 -

 
READ THIS MORTGAGE AND IS FULLY INFORMED AND HAS FULL NOTICE AND KNOWLEDGE OF THE TERMS, CONDITIONS AND EFFECTS OF THIS MORTGAGE; THAT IT HAS BEEN REPRESENTED BY INDEPENDENT LEGAL COUNSEL OF
ITS CHOICE THROUGHOUT THE NEGOTIATIONS PRECEDING ITS EXECUTION OF THIS MORTGAGE; AND HAS RECEIVED THE ADVICE OF ITS ATTORNEY IN ENTERING INTO THIS MORTGAGE; AND THAT IT RECOGNIZES THAT CERTAIN OF THE TERMS OF THIS MORTGAGE RESULT IN ONE PARTY
ASSUMING THE LIABILITY INHERENT IN SOME ASPECTS OF THE TRANSACTION AND RELIEVING THE OTHER PARTY OF ITS RESPONSIBILITY FOR SUCH LIABILITY. EACH PARTY HERETO AGREES AND COVENANTS THAT IT WILL NOT CONTEST THE VALIDITY OR ENFORCEABILITY OF ANY
EXCULPATORY PROVISION OF THIS MORTGAGE ON THE BASIS THAT THE PARTY HAD NO NOTICE OR KNOWLEDGE OF SUCH PROVISION OR THAT THE PROVISION IS NOT “CONSPICUOUS.” 
 Section 4.21 Release of Trustee. It is expressly understood and agreed by the parties hereto that (a) this Mortgage is executed and delivered for Chesapeake Granite Wash Trust, as Mortgagee
hereunder, by The Bank of New York Mellon Trust Company, N.A. (the “Trustee”) not individually or personally, but solely as Trustee on behalf of Chesapeake Granite Wash Trust in the exercise of the powers and authority conferred and vested
in it and (b) under no circumstances shall the Trustee be liable for any liability of the Trust or for any action taken or not taken by the Trust or Trustee under or in connection with this Mortgage. Mortgagor hereby unconditionally and
irrevocably releases the Trustee from any and all claims of Mortgagor, whether now existing or arising in the future, arising out of, based upon, or otherwise related to, any action taken or not taken by the Trust or Trustee under or in connection
with this Mortgage. 

  
 - 16 -

 IN WITNESS WHEREOF, this Mortgage is executed by Mortgagor on the date set forth in the
acknowledgement below, to be effective immediately after the granting of the Conveyances and the Assignment and simultaneously with the execution and delivery of the Development Agreement. 

 

					
	CHESAPEAKE EXPLORATION, L.L.C.
		
	By:	 	  

		 	Name:	 	Domenic J. Dell’Osso, Jr.
		 	Title:	 	 Executive Vice President and

Chief Financial Officer

 The address of Mortgagor is: 
 Chesapeake Exploration, L.L.C. 
 6100 North Western Avenue 

Oklahoma City, OK 73118 
 Attention: [—] 
 Facsimile No.:
[—] 
 With a copy to: 

Bracewell & Giuliani LLP 
 711
Louisiana Street, Suite 2300 
 Houston, Texas 77002 
 Attention: Michael S. Telle 
 Facsimile No.: (713) 221-2113 

SIGNATURE PAGE TO MORTGAGE 

 
					
	CHESAPEAKE GRANITE WASH TRUST
		
	By:	 	 The Bank of New York Mellon Trust
 Company, N.A., as Trustee

		
	By:	 	  

		 	Name:	 	Michael J. Ulrich
		 	Title:	 	Vice President

 I do hereby certify that the address of Mortgagee is: 
 The Bank of New York Mellon Trust Company, N.A. 
 919 Congress Avenue, Suite 500 

Austin, Texas 78701 
 Attn: Michael J. Ulrich

 SIGNATURE PAGE TO MORTGAGE 

					
	STATE OF OKLAHOMA	  	§	  	
		  	§	  	
	COUNTY OF OKLAHOMA	  	§	  	

 This instrument was acknowledged before me on
[—], 2011, by Domenic J. Dell’Osso, Jr., as Executive Vice President and Chief Financial Officer of Chesapeake Exploration, L.L.C., an Oklahoma limited liability company, on
behalf of said limited liability company. 
 WITNESS my hand and official seal this      day of
            , 2011. 
  

	
	  

	NOTARY PUBLIC,
	State of Oklahoma
	  

	(printed name)

  

	
	My commission expires:
	  

	[SEAL]

					
	STATE OF TEXAS	  	§	  	
		  	§	  	
	COUNTY OF TRAVIS	  	§	  	

 This instrument was acknowledged before me on
[—], 2011, by Michael J. Ulrich as Vice President of The Bank of New York Mellon Trust Company, N.A., a national banking association organized under the laws of the United
States of America, the Trustee of Chesapeake Granite Wash Trust, a Delaware statutory trust, on behalf of said national banking association, as trustee of said trust. 
 WITNESS my hand and official seal this      day of             , 2011. 

 

	
	  

	NOTARY PUBLIC,
	State of Texas
	  

	(printed name)

  

	
	My commission expires:
	  

	[SEAL]

 ANNEX A-1 
 COPY OF TERM ROYALTY CONVEYANCE (PUD) 

 ANNEX A-2 
 COPY OF ASSIGNMENT 

 ANNEX A-3 
 COPY OF PERPETUAL ROYALTY CONVEYANCE (PUD) 

 EXHIBIT A 
 MORTGAGED PROPERTIES 

 EXHIBIT B 
 TARGET FORMATION LOG 
 See Attached

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