Document:

1

	LEASE
    AGREEMENT

SUNWEST
OFFICE PARK, LLC.

 

ARTICLE
1- LEASE OF PREMISES

 

THIS
LEASE AGREEMENT (the “Lease”) is executed this 23rd day of May, 2017, by and between SUNWEST OFFICE
PARK, LLC, a Florida limited liability company (“Landlord”), and ANU LIFE SCIENCES, INC., a Florida Corporation
(“Tenant”).

 

Section
1.01. Basic Lease Provisions and Definitions.

(a)
Leased Premises (shown outlined on Exhibit A attached hereto): Bay 408 of the building commonly known as Building D (the “Building”),
located at 15491 SW 12th St, Sunrise, FL 33326, within Sunwest Commerce Center. (The “Park”).

(b)
Rentable Area: Approximately 3,500 rentable square feet.

(c)
Tenant’s Proportionate Share (Operating Expenses): $4.75/SF ANNUALLY Currently

(d)
Minimum Annual Rent:

Year
1 $$66,395.00

Year
2 $73,395.00

Year
3 $85,400.04

Year
4 $87,954.96

Year
5 $90,579.96

(Note:
Minimum Annual Rent does not include applicable Florida State Sales Tax, or Additional Rent, which sums shall be the sole responsibility
of Tenant.)

 

(e)
Monthly Rental Installments:

(Note:
Monthly Rental Installments do not include applicable Florida State Sales Tax, or Additional Rent, which sums shall be the sole
responsibility of Tenant.)

Year
1 $6,116.25 (Months 1 and 2 at $ $2,616.25)

Year
2 $6,116.25

Year
3 $7,116.67

Year
4 $7,329.58

Year
5 $7,548.33

	 	(f)	Commencement
    Date: July 1, 2017
	 	(g)
    	Lease
    Term: Sixty (60) Months 
	 	(h)
    	Option
    Term: Tenant has two (2) options to renew of five (5) years each.  Rental rates in the option term to increase
    at three (3%) per annum.
	 	(i)
    	Security
    Deposit: $37,275.00; After month 24 of the lease, so long as tenant is in Good Standing and has been during the prior
    twenty-four (24) months, security deposit to be reduced to $18,637.50 for the remainder of the initial lease term, and any
    exercised option term thereafter. Refunded security deposit to be applied towards future rents and additional rents until
    exhausted. 
	 	(j)
    	Broker(s):
    Colliers International South Florida, LLC has represented the Landlord and Tenant in this transaction. 
	 	(k)	Permitted
    Use: Office, Laboratory, Research, Processing, Manufacturing, Storage and Distribution of Biologics and other human tissue
    derived products and for no other purpose.
	 	 	(I)
    Address for notices and payments are as follows:
	 	 	Landlord:
    Sunwest Office Park, LLC.
	 	 	15481
    SW 12th Street # 309
	 	 	Sunrise,
    FL 33326

 

EXHIBITS

Exhibit
A: Leased Premises

Exhibit
B: Rent Breakdown’s

Exhibit
C: Rules and Regulations

  

    	 

    	 

    

 

	2	LEASE
    AGREEMENT

SUNWEST
OFFICE PARK, LLC.

 

Section
1.02. Lease of Premises. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the Leased Premises,
under the terms and conditions herein, together with a non-exclusive right, in common with others, to use the following (collectively,
the “Common Areas”): the areas of The Park and the underlying land and improvements thereto that are designed for
use in common by all tenants of the Park and their respective employees, agents, customers, invitees and others.

 

ARTICLE
2 - TERM AND POSSESSION

 

Section
2.01. Term. The Commencement Date and Lease Term shall be as set forth in Sections 1.01(f) and 1.01(g) above.

 

Section
2.02. Construction of Tenant Improvements.

 

(a)
Landlord’s Obligations.

 

(b)
Early Occupancy. If and to the extent permitted by applicable laws, rules and ordinances, Tenant shall have the right to
enter the Leased Premises at least 15 days prior to the Commencement Date in order to prepare the Leased Premises for occupancy
(including moving all lab equipment, supplies and inventory from Tenant’s prior facility to the Leased Premises, which right
shall expressly exclude making any structural modifications. During any entry prior to the Commencement Date (i) Tenant shall
comply with all terms and conditions of this Lease other than the obligation to pay rent or additional rent, (ii) Tenant shall
not interfere with Landlord’s completion of the Tenant Improvements, (iii) Tenant shall cause its personnel and contractors
to comply with the terms and conditions of Landlord’s rules of conduct (which Landlord agrees to furnish to Tenant upon
request), and (iv) Tenant shall not begin operation of its business. Tenant acknowledges that Tenant shall be responsible for
obtaining all applicable permits and inspections relating to any such entry by Tenant.

 

Section
2.03. Surrender of the Leased Premises. Upon the expiration or earlier termination of this Lease, Tenant shall, at its
sole cost and expense, immediately (a) surrender the Leased Premises to Landlord in broom-clean condition and in good order, condition
and repair, (b) remove from the Leased Premises or where located (i) Tenant’s Property (as defined in Section 8.01 below),
(ii) all external data and communications equipment, and (iii) any alterations required to be removed pursuant to Section 7.03
below, and (c) repair any damage caused by any such removal and restore the Leased Premises to the condition existing upon the
Commencement Date, reasonable wear and tear excepted. All of Tenant’s Property that is not removed within ten (10) days
following Landlord’s written demand therefor shall be conclusively deemed to have been abandoned and Landlord shall be entitled
to dispose of such property at Tenant’s cost without incurring any liability to Tenant. This Section 2.03 shall survive
the expiration or any earlier termination of this Lease.

 

Section
2.04. Holding Over. If Tenant retains possession of the Leased Premises after the expiration or earlier termination of
this Lease, Tenant shall be a tenant at sufferance at two hundred percent (200%) of the Monthly Rental Installments and Annual
Rental Adjustment (as hereinafter defined) for the Leased Premises in effect upon the date of such expiration or earlier termination,
and otherwise upon the terms, covenants and conditions herein specified, so far as applicable. Acceptance by Landlord of rent
after such expiration or earlier termination shall not result in a renewal of this Lease, nor shall such acceptance create a month-to-month
tenancy. In the event a month-to-month tenancy is created by operation of law, either party shall have the right to terminate
such month-to-month tenancy upon thirty (30) days’ prior written notice to the other, whether or not said notice is given
on the rent paying date. This Section 2.04 shall in no way constitute a consent by Landlord to any holding over by Tenant upon
the expiration or earlier termination of this Lease, nor limit Landlord’s remedies in such event.

 

ARTICLE
3 - RENT

 

Section
3.01. Base Rent. Tenant shall pay to Landlord the Minimum Annual Rent in the Monthly Rental Installments, plus Florida
State Sales Tax, in advance, without demand, deduction or offset, on the Commencement Date and on or before the first day of each
and every calendar month thereafter during the Lease Term. The Monthly Rental Installments for partial calendar months shall be
prorated. Tenant shall be responsible for delivering the Monthly Rental Installments to the payment address set forth in Section
1.01(l) above in accordance with this Section 3.01.

 

Section
3.02. Annual Rental Adjustment Definitions.

 

(a)
“Annual Rental Adjustment” shall mean the amount of Tenant’s Proportionate Share of Operating Expenses for
a particular calendar year.

 

(b)
“Operating Expenses” shall mean the amount of all of Landlord’s costs and expenses paid or incurred in operating,
repairing, replacing and maintaining the Buildings and the Common Areas in good condition and repair for a particular calendar
year including by way of illustration and not limitation, the following: all Real Estate Taxes (as hereinafter defined), insurance
premiums and deductibles; water, sewer, electrical and other utility charges other than the separately billed electrical and other
charges paid by Tenant as provided in this Lease (or other tenants in the Building); service and other charges incurred in the
repair, replacement, operation and maintenance of the heating, ventilation and air-conditioning system; repair costs; landscape
maintenance costs; access patrols; license, permit and inspection fees; management fees; association dues; administrative fees;
supplies, costs, wages and related employee benefits payable for the management, maintenance and operation of the Building; maintenance,
repair and replacement of the driveways, parking and sidewalk areas, landscaped areas, and lighting; and maintenance and repair
costs, dues, fees and assessments incurred under any covenants or charged by any owners association. Operating Expenses shall
not include direct costs or repairs that are specific to a particular leased or leasable unit. The cost of any Operating Expenses
that are capital in nature shall be amortized over the useful life of the improvement (as reasonably determined by Landlord),
and only the amortized portion shall be included in Operating Expenses.

 

(c)
“Tenant’s Proportionate Share of Operating Expenses” shall mean an amount equal to the product of Tenant’s
Proportionate Share times the Operating Expenses. Tenant’s Proportionate Share of Operating Expenses is determined as outlined
within Exhibit B. Controllable expenses are not to exceed a 4% increases year over year.

 

(d)
“Real Estate Taxes” shall mean any form of real estate tax or assessment or service payments in lieu thereof,
and any license fee, commercial rental tax, improvement bond or other similar charge or tax (other than inheritance, personal
income or estate taxes) imposed upon the Building or Common Areas, or against Landlord’s business of leasing the Building,
by any authority having the power to so charge or tax, together with costs and expenses of contesting the validity or amount of
the Real Estate Taxes. This shall not include penalties or late fees incurred by the Landlord.

 

Section
3.03. Payment of Additional Rent.

 

(a)
Any amount required to be paid by Tenant hereunder (in addition to Minimum Annual Rent) and any charges or expenses incurred by
Landlord on behalf of Tenant under the terms of this Lease shall be considered “Additional Rent” payable in the same
manner and upon the same terms and conditions as the Minimum Annual Rent reserved hereunder, except as set forth herein to the
contrary. Any failure on the part of Tenant to pay such Additional Rent when and as the same shall become due shall entitle Landlord
to the remedies available to it for non-payment of Minimum Annual Rent. Notwithstanding the foregoing, Landlord and Tenant acknowledge
and agree that (i) any excess costs incurred by Tenant and payable to Landlord in connection with the construction and installation
of the Tenant Improvements (the “Excess Costs”) shall not be considered Additional Rent under this Lease, (ii) neither
party shall record Excess Costs as rental income or rental expense on its respective books and records, (iii) Tenant is not obligated
to incur Excess Costs under this Lease, and (iv) the portion of the Tenant Improvements related to the Excess Costs are solely
for Tenant’s own use and benefit and the Excess Costs are in addition to, not in lieu of, the market rental rate charged
by Landlord to Tenant under this Lease.

 

    	 

    	 

    

 

	3	LEASE
    AGREEMENT

SUNWEST
OFFICE PARK, LLC.

 

(b)
In addition to the Minimum Annual Rent specified in this Lease, commencing as of the Commencement Date, Tenant shall pay to Landlord
as Additional Rent for the Leased Premises, in each calendar year or partial calendar year during the Lease Term, an amount equal
to the Annual Rental Adjustment for such calendar year. Landlord shall estimate the Annual Rental Adjustment annually, and written
notice thereof shall be given to Tenant prior to the beginning of each calendar year. Tenant shall pay to Landlord each month,
at the same time the Monthly Rental Installment is due, an amount equal to one-twelfth (1/12) of the estimated Annual Rental Adjustment.
Tenant shall be responsible for delivering the Additional Rent to the payment address set forth in Section 1.01(1) above in accordance
with this Section 3.03. If Operating Expenses increase during a calendar year, Landlord may increase the estimated Annual Rental
Adjustment during such year by giving Tenant written notice to that effect, and thereafter Tenant shall pay to Landlord, in each
of the remaining months of such year, an amount equal to the amount of such increase in the estimated Annual Rental Adjustment
divided by the number of months remaining in such year. Within a reasonable time after the end of each calendar year, Landlord
shall prepare and deliver to Tenant a statement showing the actual Annual Rental Adjustment. Within thirty (30) days after receipt
of the aforementioned statement, Tenant shall pay to Landlord, or Landlord shall credit against the next rent payment or payments
due from Tenant, as the case may be, the difference between the actual Annual Rental Adjustment for the preceding calendar year
and the estimated amount paid by Tenant during such year. This Section 3.03 shall survive the expiration or any earlier termination
of this Lease.

 

(c)
Landlord agrees that the Additional Rental Adjustment will not ever exceed 100% of the base operating expenses per Exhibit B.

 

Section
3.04. Late Charges. Tenant acknowledges that Landlord shall incur certain additional unanticipated administrative and
legal costs and expenses if Tenant fails to pay timely any payment required hereunder. Therefore, in addition to the other remedies
available to Landlord hereunder, if any payment required to be paid by Tenant to Landlord hereunder shall become overdue, by 10
days but not more than 19 days, 5% of the monthly rent shall be charged as a late fee. If any payment by Tenant to Landlord shall
become overdue by 20 days or more, 10% of the monthly rent shall be charged as a late fee. Any and all late fees shall be charged
as additional rent.

 

ARTICLE
4 - SECURITY DEPOSIT

 

Prior
to occupying the Leased Premises, Tenant shall have deposited the full amount of the Security Deposit with Landlord (Tenant shall
deposit with Landlord 50% upon execution and delivery of this Lease by Tenant), as security for the performance by Tenant of all
of Tenant’s obligations contained in this Lease. In the event of a default by Tenant, Landlord may apply all or any part
of the Security Deposit to cure all or any part of such default; provided, however, that any such application by Landlord shall
not be or be deemed to be an election of remedies by Landlord or considered or deemed to be liquidated damages. Tenant agrees
promptly, upon demand, to deposit such additional sum with Landlord as may be required to maintain the full amount of the Security
Deposit. All sums held by Landlord pursuant to this Article 4 shall be without interest and may be commingled by Landlord. After
considering the return of certain portions of the Security Deposit provided for in Section 1.01, at the end of the Lease Term,
provided that there is then no uncured default or any repairs required to be made by Tenant pursuant to Section 2.03 above or
Section 7.03 below, Landlord shall return the remaining portion of the Security Deposit to Tenant.

 

ARTICLE
5 - OCCUPANCY AND USE

 

Section
5.01. Use. Tenant shall use the Leased Premises for the Permitted Use and for no other purpose without the prior written
consent of Landlord.

 

Section
5.02. Covenants of Tenant Regarding Use.

 

(a)
Tenant shall (i) use and maintain the Leased Premises and conduct its business thereon in a safe, careful, reputable and lawful
manner, (ii) comply with all covenants that encumber the Building and all laws, rules, regulations, orders, ordinances, directions
and requirements of any governmental authority or agency, now in force or which may hereafter be in force, including, without
limitation, those which shall impose upon Landlord or Tenant any duty with respect to or triggered by a change in the use or occupation
of, or any improvement or alteration to, the Leased Premises, and (iii) comply with and obey all reasonable directions, rules
and regulations of Landlord, including the Building Rules and Regulations attached hereto as Exhibit D and made a part hereof,
as may be modified from time to time by Landlord on reasonable notice to Tenant.

 

(b)
Tenant shall not do or permit anything to be done in or about the Leased Premises that will in any way cause a nuisance, obstruct
or interfere with the rights of other tenants or occupants of the Building or injure or annoy them. Landlord shall not be responsible
to Tenant for the non-performance by any other tenant or occupant of the Building of any of Landlord’s directions, rules
and regulations, but agrees that any enforcement thereof shall be done uniformly. Tenant shall not use the Leased Premises, nor
allow the Leased Premises to be used, for any purpose or in any manner that would (i) invalidate any policy of insurance now or
hereafter carried by Landlord on the Building, or (ii) increase the rate of premiums payable on any such insurance policy unless
Tenant reimburses Landlord for any increase in premium charged.

 

Section
5.03. Landlord’s Rights Regarding Use. Without limiting any of Landlord’s rights specified elsewhere in this
Lease (a) Landlord shall have the right at any time, without notice to Tenant, to control, change or otherwise alter the Common
Areas in such manner as it deems necessary or proper, and (b) Landlord, its agents, employees and contractors and any mortgagee
of the Building shall have the right to enter any part of the Leased Premises at reasonable times upon reasonable notice (except
in the event of an emergency where no notice shall be required) for the purposes of examining or inspecting the same (including,
without limitation, testing to confirm Tenant’s compliance with this Lease), showing the same to prospective purchasers,
mortgagees or tenants, and making such repairs, alterations or improvements to the Leased Premises or the Building as Landlord
may deem necessary or desirable. Landlord shall incur no liability to Tenant for such entry, nor shall such entry constitute an
eviction of Tenant or a termination of this Lease, or entitle Tenant to any abatement of rent therefor.

 

ARTICLE
6 - UTILITIES AND OTHER BUILDING SERVICES

 

Section
6.01. Services to be Provided. Landlord shall furnish, electric and water to the leasehold space. Trash disposal is available
at designated locations on the Park premises. It is the responsibility of the Tenant for payment of electrical services (Unit
is individually metered for Tenant’s location and will billed directly to Tenant), janitorial services, telephonic and other
communication services, hazardous waste disposal and disposing of general trash to designated Trash disposal areas at the Park.
Water and trash will be included within Operating Expenses.

 

Section
6.02. Additional Services.

 

(a)
Not Applicable

 

Section
6.03. Interruption of Services. Tenant acknowledges and agrees that any one or more of the utilities or other services
identified in Sections 6.01 or 6.02 or otherwise hereunder may be interrupted by reason of accident, emergency or other causes
beyond Landlord’s control, or may be discontinued or diminished temporarily by Landlord or other persons until certain repairs,
alterations or improvements can be made. Landlord shall not be liable in damages or otherwise for any failure or interruption
of any utility or service and no such failure or interruption shall entitle Tenant to terminate this Lease or withhold sums due
hereunder.

  

    	 

    	 

    

 

	4	LEASE
    AGREEMENT

SUNWEST
OFFICE PARK, LLC.

 

ARTICLE
7 - REPAIRS, MAINTENANCE AND ALTERATIONS

 

Section
7.01. Repair and Maintenance of Building. Landlord shall make all necessary repairs and replacements to the roof, exterior
walls, exterior doors, windows, and other Common Areas, and Landlord shall keep the Building in a clean and neat condition and
use reasonable efforts to keep all equipment used in common with other tenants in good condition and repair. The cost of such
repairs, replacements and maintenance shall be included in Operating Expenses to the extent provided in Section 3.02; provided
however, to the extent any such repairs, replacements or maintenance are required because of the negligence, misuse or default
of Tenant, its employees, agents, contractors, customers or invitees, Landlord shall make such repairs at Tenant’s sole
expense.

 

Section
7.02. Repair and Maintenance of Leased Premises. Landlord shall keep and maintain the Leased Premises in good condition
and repair. The cost of such repairs and maintenance to the Leased Premises shall be included in Operating Expenses; provided
however, to the extent any repairs or maintenance are required in the Leased Premises because of the negligence, misuse or default
of Tenant, its employees, agents, contractors, customers or invitees or are made at the specific request of Tenant, Landlord shall
make such repairs or perform such maintenance at Tenant’s sole expense. Notwithstanding the above, Tenant shall be solely
responsible for any repair or replacement with respect to Tenant’s Property (as defined in Section 8.01 below) located in
the Leased Premises, the Building or the Common Areas. Nothing in this Article 7 shall obligate Landlord or Tenant to repair normal
wear and tear to any paint, wall covering or carpet in the Leased Premises.

 

Section
7.03. Alterations. Tenant shall not permit alterations in or to the Leased Premises unless and until Landlord has approved
the plans therefor in writing. As a condition of such approval, Landlord may require Tenant to remove the alterations and restore
the Leased Premises upon termination of this Lease; otherwise, all such alterations shall at Landlord’s option become a
part of the realty and the property of Landlord, and shall not be removed by Tenant. Tenant shall ensure that all alterations
shall be made in accordance with all applicable laws, regulations and building codes, in a good and workmanlike manner and of
quality equal to or better than the original construction of the Building. No person shall be entitled to any lien derived through
or under Tenant for any labor or material furnished to the Leased Premises, and nothing in this Lease shall be construed to constitute
Landlord’s consent to the creation of any lien. If any lien is filed against the Leased Premises for work claimed to have
been done for or material claimed to have been furnished to Tenant, Tenant shall cause such lien to be discharged of record within
thirty (30) days after filing. Tenant shall indemnify Landlord from all costs, losses, expenses and attorneys’ fees in connection
with any construction or alteration and any related lien. Tenant agrees that at Landlord’s option, PV Construction, LLC
or a subsidiary or affiliate of Landlord, who shall receive a fee as Landlord’s construction manager or general contractor,
shall perform all work on any alterations to the Leased Premises.

 

Section
7.04 Compliance Landlord will be responsible for ensuring that the Leased Premises at all times is in compliance with
all local, state, federal and other applicable ordinances, laws and/or regulations for the Leased Premises, including building
construction, electrical and water supply, public area facilities, flood prevention, fire safety and other applicable matters.
Landlord will furnish evidence of related permits and inspections as may be requested from time to time for Tenant’s insurance
providers and agrees that the Leased Premises shall remain in full compliance for the during the term of the Lease.

 

ARTICLE
8 — INDEMNITY AND INSURANCE

 

Section
8.01. Release. All of Tenant’s trade fixtures, merchandise, inventory, special fire protection equipment, telecommunication
and computer equipment, supplemental air conditioning equipment, kitchen equipment and all other personal property in or about
the Leased Premises, the Building or the Common Areas, which is deemed to include the trade fixtures, merchandise, inventory and
personal property of others located in or about the Leased Premises or Common Areas at the invitation, direction or acquiescence
(express or implied) of Tenant (all of which property shall be referred to herein, collectively, as “Tenant’s Property”),
shall be and remain at Tenant’s sole risk. Landlord shall not be liable to Tenant or to any other person for, and Tenant
hereby releases Landlord (and its affiliates, property managers and mortgagees) from (a) any and all liability for theft or damage
to Tenant’s Property, and (b) any and all liability for any injury to Tenant or its employees, agents, contractors, guests
and invitees in or about the Leased Premises, the Building or the Common Areas, except to the extent of personal injury caused
directly by the negligence or willful misconduct of Landlord, its agents, employees or contractors. Nothing contained in this
Section 8.01 shall limit (or be deemed to limit) the waivers contained in Section 8.06 below. In the event of any conflict between
the provisions of Section 8.06 below and this Section 8.01, the provisions of Section 8.06 shall prevail. This Section 8.01 shall
survive the expiration or earlier termination of this Lease.

 

Section
8.02. Indemnification by Tenant. Tenant shall protect, defend, indemnify and hold Landlord, its agents, employees and
contractors of all tiers harmless from and against any and all claims, damages, demands, penalties, costs, liabilities, losses,
and expenses (including reasonable attorneys’ fees and expenses at the trial and appellate levels) to the extent (a) arising
out of or relating to any act, omission, negligence, or willful misconduct of Tenant or Tenant’s agents, employees, contractors,
customers or invitees in or about the Leased Premises, the Building or the Common Areas, (b) arising out of or relating to any
of Tenant’s Property, or (c) arising out of any other act or occurrence within the Leased Premises, in all such cases except
to the extent of personal injury caused directly by the negligence or willful misconduct of Landlord, its agents, employees or
contractors. Nothing contained in this Section 8.02 shall limit (or be deemed to limit) the waivers contained in Section 8.06
below. In the event of any conflict between the provisions of Section 8.06 below and this Section 8.02, the provisions of Section
8.06 shall prevail. This Section 8.02 shall survive the expiration or earlier termination of this Lease.

 

Section
8.03. Indemnification by Landlord. Landlord shall protect, defend, indemnify and hold Tenant, its agents, employees and
contractors of all tiers harmless from and against any and all claims, damages, demands, penalties, costs, liabilities, losses
and expenses (including reasonable attorneys’ fees and expenses at the trial and appellate levels) to the extent arising
out of or relating to any act, omission, negligence or willful misconduct of Landlord or Landlord’s agents, employees or
contractors. Nothing contained in this Section 8.03 shall limit (or be deemed to limit) the waivers contained in Section 8.06
below. In the event of any conflict between the provisions of Section 8.06 below and this Section 8.03, the provisions of Section
8.06 shall prevail. This Section 8.03 shall survive the expiration or earlier termination of this Lease.

 

Section
8.04. Tenant’s Insurance.

 

(a)
During the Lease Term (and any period of early entry or occupancy or holding over by Tenant, if applicable), Tenant shall maintain
the following types of insurance, in the amounts specified below:

 

(i)
Liability Insurance. Commercial General Liability Insurance, ISO Form CG 00 01, or its equivalent, covering Tenant’s
use of the Leased Premises against claims for bodily injury or death or property damage, which insurance shall be primary and
non-contributory and shall provide coverage on an occurrence basis with a per occurrence limit of not less than $1,000,000 for
each policy year, which limit may be satisfied by any combination of primary and excess or umbrella per occurrence policies.

(ii)
Property Insurance. Special Form Insurance in the amount of the full replacement cost of Tenant’s Property (including,
without limitation, alterations or additions performed by Tenant.

(iii)
Worker’s Compensation Insurance. Worker’s Compensation insurance in amounts required by applicable law; provided,
if there is no statutory requirement for Tenant, Tenant shall still obtain Worker’s Compensation insurance coverage.

(iv)
Automobile Insurance. Comprehensive Automobile Liability Insurance insuring bodily injury and property damage arising from
all owned, non-owned and hired vehicles, if any, with minimum limits of liability of $1,000,000 combined single limit, per accident.

  

    	 

    	 

    

 

	5	LEASE
    AGREEMENT

SUNWEST
OFFICE PARK, LLC.

 

(b)
All insurance required to be carried by Tenant hereunder shall (i) be issued by one or more insurance companies reasonably acceptable
to Landlord, licensed to do business in the State in which the Leased Premises is located and having an AM Best’s rating
of A IX or better, and (ii) provide that said insurance shall not be materially changed, canceled or permitted to lapse on less
than thirty (30) days’ prior written notice to Landlord. In addition, Tenant shall name Landlord, Property Owners Association,
Landlord’s managing agent, if any, and any mortgagee requested by Landlord, as additional insureds under its commercial
general liability, excess and umbrella policies (but only to the extent of the limits required hereunder). On or before the
Commencement Date (or the date of any earlier entry or occupancy by Tenant), and thereafter, within thirty (30) days prior to
the expiration of each such policy, Tenant shall furnish Landlord with certificates of insurance in the form of ACORD 25 (or other
evidence of insurance reasonably acceptable to Landlord), evidencing all required coverages, and that with the exception of Workers
Compensation insurance, such insurance is primary and non-contributory. Upon Tenant’s receipt of a request from Landlord,
Tenant shall provide Landlord with copies of all insurance policies, including all endorsements, evidencing the coverages required
hereunder. If Tenant fails to carry such insurance and furnish Landlord with such certificates of insurance or copies of insurance
policies (if applicable), Landlord may obtain such insurance on Tenant’s behalf and Tenant shall reimburse Landlord upon
demand for the cost thereof as Additional Rent. Landlord reserves the right from time to time to require Tenant to obtain higher
minimum amounts or different types of insurance if it becomes customary for other landlords of similar buildings in the area to
require similar sized tenants in similar industries to carry insurance of such higher minimum amounts or of such different types.

 

Section
8.05. Landlord’s Insurance. During the Lease Term, Landlord and/or Property Owners Association shall maintain the
following types of insurance, in the amounts specified below (the cost of which shall be included in Operating Expenses):

 

(a)
Liability Insurance. Commercial General Liability Insurance, ISO Form CG 00 01, or its equivalent, covering the Common Areas
against claims for bodily injury or death and property damage, which insurance shall be primary and non-contributory and shall
provide coverage on an occurrence basis with a per occurrence limit of not less than $2,000,000 for each policy year, which limit
may be satisfied by any combination of primary and excess or umbrella per occurrence policies.

(b)
Property Insurance. Special Form Insurance in the amount of the full replacement cost of the Building, including, without
limitation, any improvements, if any, made pursuant to Section 2.02 above, but excluding Tenant’s Property and any other
items required to be insured by Tenant pursuant to Section 8.04 above.

 

Section
8.06. Waiver of Subrogation. Notwithstanding anything contained in this Lease to the contrary, Landlord (and its affiliates,
property managers and mortgagees) and Tenant (and its affiliates) hereby waive any rights each may have against the other on account
of any loss of or damage to their respective property, the Leased Premises, its contents, or other portions of the Building or
Common Areas arising from any risk which is required to be insured against by Sections 8.04(a)(ii), 8.04(a)(iii), and 8.05(b)
above. The special form property insurance policies and worker’s compensation insurance policies maintained by Landlord
and Tenant as provided in this Lease shall include an endorsement containing an express waiver of any rights of subrogation by
the insurance company against Landlord and Tenant, as applicable.

 

ARTICLE
9 – CASUALTY

 

In
the event of total or partial destruction of the Building or the Leased Premises by fire or other casualty, Landlord agrees promptly
to restore and repair same; provided, however, Landlord’s obligation hereunder with respect to the Leased Premises shall
be limited to the reconstruction of such of the leasehold improvements as were originally required to be made by Landlord pursuant
to Section 2.02 above, if any. Rent shall proportionately abate during the time that the Leased Premises or part thereof are unusable
because of any such damage. Notwithstanding the foregoing, if the Leased Premises are (a) so destroyed that they cannot be repaired
or rebuilt within one hundred and twenty (120) days from the casualty date; or (b) destroyed by a casualty that is not covered
by the insurance required hereunder or, if covered, such insurance proceeds are not released by any mortgagee entitled thereto
or are insufficient to rebuild the Building and the Leased Premises; then, in case of a clause (a) casualty, either Landlord or
Tenant may, or, in the case of a clause (b) casualty, then Landlord may, upon thirty (30) days’ written notice to the other
party, terminate this Lease with respect to matters thereafter accruing. Tenant waives any right under applicable laws inconsistent
with the terms of this paragraph.

 

ARTICLE
10 - EMINENT DOMAIN

 

If
all or any substantial part of the Building or Common Areas shall be acquired by the exercise of eminent domain, Landlord may
terminate this Lease by giving written notice to Tenant on or before the date possession thereof is so taken. If all or any part
of the Leased Premises shall be acquired by the exercise of eminent domain so that the Leased Premises shall become impractical
for Tenant to use for the Permitted Use, Tenant may terminate this Lease by giving written notice to Landlord as of the date possession
thereof is so taken. All damages awarded shall belong to Landlord; provided, however, that Tenant may claim dislocation damages
if such amount is not subtracted from Landlord’s award.

 

ARTICLE
11- ASSIGNMENT AND SUBLEASE

 

Section
11.01. Assignment and Sublease. (a)Tenant shall not assign this Lease or sublet the Leased Premises in whole or in part
without Landlord’s prior written consent. In the event of any permitted assignment or subletting, Tenant shall remain primarily
liable hereunder, and any extension, expansion, rights of first offer, rights of first refusal or other options granted to Tenant
under this Lease shall be rendered void and of no further force or effect. The acceptance of rent from any other person shall
not be deemed to be a waiver of any of the provisions of this Lease or to be a consent to the assignment of this Lease or the
subletting of the Leased Premises. Any assignment or sublease consented to by Landlord shall not relieve Tenant (or its assignee)
from obtaining Landlord’s consent to any subsequent assignment or sublease. (b) By way of example and not limitation, Landlord
shall be deemed to have reasonably withheld consent to a proposed assignment or sublease if in Landlord’s opinion (i) the
Leased Premises are or may be in any way adversely affected; (ii) the business reputation of the proposed assignee or subtenant
is unacceptable; (iii) the financial worth of the proposed assignee or subtenant is insufficient to meet the obligations hereunder,
or (iv) the prospective assignee or subtenant is a current tenant at the Park or is a bona-fide third-party prospective tenant.
Landlord further expressly reserves the right to refuse to give its consent to any subletting if the proposed rent is publicly
advertised to be less than the then current rent for similar premises in the Building. If Landlord refuses to give its consent
to any proposed assignment or subletting, Landlord may, at its option, within thirty (30) days after receiving a request to consent,
terminate this Lease by giving Tenant thirty (30) days prior written notice of such termination, whereupon each party shall be
released from all further obligations and liability hereunder, except those which expressly survive the termination of this Lease.
(c) If Tenant shall make any assignment or sublease, with Landlord’s consent, for a rental in excess of the rent payable
under this Lease, Tenant shall pay to Landlord all of any such excess rental upon receipt. Tenant agrees to pay Landlord $500.00
upon demand by Landlord for reasonable accounting and attorneys’ fees incurred in conjunction with the processing and documentation
of any requested assignment, subletting or any other hypothecation of this Lease or Tenant’s interest in and to the Leased
Premises as consideration for Landlord’s consent.

 

Section
11.02. Permitted Transfer. Notwithstanding anything to the contrary contained in Section 11.01 above, Tenant shall have
the right, without Landlord’s consent, but upon ten (10) days prior notice to Landlord, to (a) sublet all or part of the
Leased Premises to any related corporation or other entity which controls Tenant, is controlled by Tenant or is under common control
with Tenant; (b) assign all or any part of this Lease to any related corporation or other entity which controls Tenant, is controlled
by Tenant, or is under common control with Tenant, or to a successor entity into which or with which Tenant is merged or consolidated
or which acquires substantially all of Tenant’s assets or property; or (c) effectuate any public offering of Tenant’s
stock on the New York Stock Exchange or in the NASDAQ over the counter market, provided that in the event of a transfer pursuant
to clause (b), the tangible net worth after any such transaction is not less than the tangible net worth of Tenant as of the date
hereof and provided further that such successor entity assumes all of the obligations and liabilities of Tenant (any such entity
hereinafter referred to as a “Permitted Transferee”). For the purpose of this Article 11, (i) “control”
shall mean ownership of not less than fifty percent (50%) of all voting stock or legal and equitable interest in such corporation
or entity, and (ii) “tangible net worth” shall mean the excess of the value of tangible assets (i.e. assets excluding
those which are intangible such as goodwill, patents and trademarks) over liabilities. Any such transfer shall not relieve Tenant
of its obligations under this Lease. Nothing in this paragraph is intended to nor shall permit Tenant to transfer its interest
under this Lease as part of a fraud or subterfuge to intentionally avoid its obligations under this Lease (for example, transferring
its interest to a shell corporation that subsequently files a bankruptcy), and any such transfer shall constitute a Default hereunder.
Any change in control of Tenant resulting from a merger, consolidation, or a transfer of partnership or membership interests,
a stock transfer, or any sale of substantially all of the assets of Tenant that do not meet the requirements of this Section 11.02
shall be deemed an assignment or transfer that requires Landlord’s prior written consent pursuant to Section 11.01 above.

  

    	 

    	 

    

 

	6	LEASE
    AGREEMENT

SUNWEST
OFFICE PARK, LLC.

 

ARTICLE
12 - TRANSFERS BY LANDLORD

 

Section
12.01. Sale of the Building. Landlord shall have the right to sell the Building, or any individual bay/unit, at any time
during the Lease Term, subject only to the rights of Tenant hereunder; and such sale shall operate to release Landlord from liability
hereunder after the date of such conveyance.

 

Section
12.02. Estoppel Certificate. Within ten (10) days following receipt of a written request from Landlord, Tenant shall execute
and deliver to Landlord, without cost to Landlord, an estoppel certificate in such form as Landlord may reasonably request certifying
(a) that this Lease is in full force and effect and unmodified or stating the nature of any modification, (b) the date to which
rent has been paid, (c) that there are not, to Tenant’s knowledge, any uncured defaults or specifying such defaults if any
are claimed, and (d) any other matters or state of facts reasonably required respecting the Lease. Such estoppel may be relied
upon by Landlord and by any purchaser or mortgagee of the Building.

 

Section
12.03. Subordination. This Lease is and shall be expressly subject and subordinate at all times to the lien of any present
or future mortgage or deed of trust encumbering fee title to the Leased Premises. If any such mortgage or deed of trust be foreclosed,
upon request of the mortgagee or beneficiary, as the case may be, Tenant will attorn to the purchaser at the foreclosure sale.
The foregoing provisions are declared to be self-operative and no further instruments shall be required to effect such subordination
and/or attornment; provided, however, that subordination of this Lease to any present or future mortgage or trust deed shall be
conditioned upon the mortgagee, beneficiary, or purchaser at the foreclosure, as the case may be agreeing that Tenant’s
occupancy of the Leased Premises and other rights under this Lease shall not be disturbed by reason of the foreclosure or such
mortgage or trust deed, as the case may be, so long as Tenant is not in default under this Lease. Within ten (10) days following
receipt of a written request from Landlord, Tenant shall execute and deliver to Landlord, without cost, any instrument that Landlord
deems reasonably necessary to confirm the subordination of this Lease.

 

ARTICLE
13 – DEFAULT AND REMEDY

 

Section
13.01. Default. The occurrence of any of the following shall be a “Default”, provided however that a Default
under the Lease cannot occur unless Tenant has received a minimum of 5 days written notice from the Landlord (or as expressly
indicated herein if notice period is greater):

 

(a)
Tenant fails to pay any Monthly Rental Installments or Additional Rent within five (5) days after the same is due..

 

(b)
Tenant fails to perform or observe any other term, condition, covenant or obligation required under this Lease for a period of
fifteen (15) days after written notice thereof from Landlord; provided, however, that if the nature of Tenant’s default
is such that more than fifteen (15) days are reasonably required to cure, then such default shall be deemed to have been cured
if Tenant commences such performance within said fifteen (15) day period and thereafter diligently completes the required action
within a reasonable time.

 

(c)
Tenant shall vacate or abandon the Leased Premises, or fail to occupy the Leased Premises or any substantial portion thereof for
a period of thirty (30) days.

 

(d)
Tenant shall assign or sublet all or a portion of the Leased Premises in contravention of the provisions of Article 11 of this
Lease.

 

(e)
All or substantially all of Tenant’s assets in the Leased Premises or Tenant’s interest in this Lease are attached
or levied under execution (and Tenant does not discharge the same within sixty (60) days thereafter); a petition in bankruptcy,
insolvency or for reorganization or arrangement is filed by or against Tenant (and Tenant fails to secure a stay or discharge
thereof within sixty (60) days thereafter); Tenant is insolvent and unable to pay its debts as they become due; Tenant makes a
general assignment for the benefit of creditors; Tenant takes the benefit of any insolvency action or law; the appointment of
a receiver or trustee in bankruptcy for Tenant or its assets if such receivership has not been vacated or set aside within thirty
(30) days thereafter; or, dissolution or other termination of Tenant’s corporate charter if Tenant is a corporation.

 

 

Section
13.02. Remedies. Upon the occurrence of any Default, Landlord shall have the following rights and remedies, in addition
to those stated elsewhere in this Lease and those allowed by law or in equity, any one or more of which may be exercised without
further notice to Tenant:

 

(a)
Landlord may re-enter the Leased Premises and cure any Default of Tenant, and Tenant shall reimburse Landlord as Additional Rent
for any costs and expenses that Landlord thereby incurs; and Landlord shall not be liable to Tenant for any loss or damage that
Tenant may sustain by reason of Landlord’s action.

 

(b)
Landlord may terminate this Lease by giving Tenant notice of termination, in which event this Lease shall expire and terminate
on the date specified in such notice of termination and all rights of Tenant under this Lease and in and to the Leased Premises
shall terminate. Tenant shall remain liable for all obligations under this Lease arising up to the date of such termination, and
Tenant shall surrender the Leased Premises to Landlord on the date specified in such notice. Furthermore, Tenant shall be liable
to Landlord for the unamortized balance of any leasehold improvement allowance and brokerage fees paid in connection with the
Lease.

 

(c)
Without terminating this Lease, Landlord may terminate Tenant’s right to possession of the Leased Premises, and thereafter,
neither Tenant nor any person claiming under or through Tenant shall be entitled to possession of the Leased Premises. In such
event, Tenant shall immediately surrender the Leased Premises to Landlord, and Landlord may re-enter the Leased Premises and dispossess
Tenant and any other occupants of the Leased Premises by any lawful means and may remove their effects, without prejudice to any
other remedy that Landlord may have. Upon termination of possession, Landlord may re-let all or any part thereof as the agent
of Tenant for a term different from that which would otherwise have constituted the balance of the Lease Term and for rent and
on terms and conditions different from those contained herein, whereupon Tenant shall be immediately obligated to pay to Landlord
an amount equal to (i) the difference between the rent provided for herein and that provided for in any lease covering a subsequent
re-letting of the Leased Premises, for the period which would otherwise have constituted the balance of the Lease Term had this
Lease not been terminated (said period being referred to herein as the “Remaining Term”), (ii) the costs of recovering
possession of the Leased Premises and all other expenses, loss or damage incurred by Landlord by reason of Tenant’s Default
(“Default Damages”), which shall include, without limitation, expenses of preparing the Leased Premises for re-letting,
demolition, repairs, tenant finish improvements, brokers’ commissions and attorneys’ fees, and (iii) all unpaid Minimum
Annual Rent and Additional Rent that accrued prior to the date of termination of possession, plus any interest and late fees due
hereunder (the “Prior Obligations”). Neither the filing of any dispossessory proceeding nor an eviction of personalty
in the Leased Premises shall be deemed to terminate the Lease.

 

    	 

    	 

    

 

	7	LEASE
    AGREEMENT

SUNWEST
OFFICE PARK, LLC.

 

(d)
Landlord may terminate this Lease and recover from Tenant all damages Landlord may incur by reason of Tenant’s default,
including, without limitation, an amount which, at the date of such termination is equal to the sum of the following: (i) the
value of the excess, if any, discounted at the prime rate of interest (as reported in the Wall Street Journal), of (A) the Minimum
Annual Rent, Additional Rent and all other sums that would have been payable hereunder by Tenant for the Remaining Term, less
(B) the aggregate reasonable rental value of the Leased Premises for the Remaining Term, as determined by a real estate broker
licensed in the State of Florida who has at least ten (10) years of experience, (ii) all of Landlord’s Default Damages,
and (iii) all Prior Obligations. Landlord and Tenant acknowledge and agree that the payment of the amount set forth in clause
(i) above shall not be deemed a penalty, but shall merely constitute payment of liquidated damages, it being understood that actual
damages to Landlord are extremely difficult, if not impossible, to ascertain. It is expressly agreed and understood that all of
Tenant’s liabilities and obligations set forth in this subsection (d) shall survive termination.

 

(e)
With or without terminating this Lease, Landlord may declare immediately due and payable the sum of the following: (i) the present
value (discounted at the prime rate of interest, as reported in the Wall Street Journal) of all Minimum Annual Rent and Additional
Rent due and coming due under this Lease for the entire Remaining Term (as if by the terms of this Lease they were payable in
advance), (ii) all Default Damages, and (iii) all Prior Obligations, whereupon Tenant shall be obligated to pay the same to Landlord;
provided, however, that such payment shall not be deemed a penalty or liquidated damages, but shall merely constitute payment
in advance of all Minimum Annual Rent and Additional Rent payable hereunder throughout the Remaining Term, and provided further,
however, that upon Landlord receiving such payment, Tenant shall be entitled to receive from Landlord all rents received by Landlord
from other assignees, tenant and subtenants on account of said Leased Premises during the Remaining Term (but only to the extent
that the monies to which Tenant shall so become entitled do not exceed the entire amount actually paid by Tenant to Landlord pursuant
to this subsection (e)), less all Default Damages of Landlord incurred but not yet reimbursed by Tenant.

 

(f)
Landlord may sue for injunctive relief or to recover damages for any loss resulting from the Default.

 

Section
13.03. Landlord’s Default and Tenant’s Remedies. Landlord shall be in default if it fails to perform any term,
condition, covenant or obligation required under this Lease for a period of thirty (30) days after written notice thereof from
Tenant to Landlord; provided, however, that if the term, condition, covenant or obligation to be performed by Landlord is such
that it cannot reasonably be performed within thirty (30) days, such default shall be deemed to have been cured if Landlord commences
such performance within said thirty-day period and thereafter diligently undertakes to complete the same. Upon the occurrence
of any such default, Tenant may sue for injunctive relief or to recover damages for any loss directly resulting from the breach,
but Tenant shall not be entitled to terminate this Lease or withhold, offset or abate any sums due hereunder. In no event, however,
shall Landlord be liable to Tenant for any consequential or punitive damages.

 

Section
13.04. Limitation of Landlord’s Liability. If Landlord shall fail to perform any term, condition, covenant or obligation
required to be performed by it under this Lease and if Tenant shall, as a consequence thereof, recover a money judgment against
Landlord, Tenant agrees that it shall look solely to Landlord’s right, title and interest in and to the Building for the
collection of such judgment; and Tenant further agrees that no other assets of Landlord shall be subject to levy, execution or
other process for the satisfaction of Tenant’s judgment.

 

Section
13.05. Nonwaiver of Defaults. Neither party’s failure or delay in exercising any of its rights or remedies or other
provisions of this Lease shall constitute a waiver thereof or affect its right thereafter to exercise or enforce such right or
remedy or other provision. No waiver of any default shall be deemed to be a waiver of any other default. Landlord’s receipt
of less than the full rent due shall not be construed to be other than a payment on account of rent then due, nor shall any statement
on Tenant’s check or any letter accompanying Tenant’s check be deemed an accord and satisfaction. No act or omission
by Landlord or its employees or agents during the Lease Term shall be deemed an acceptance of a surrender of the Leased Premises,
and no agreement to accept such a surrender shall be valid unless in writing and signed by Landlord.

 

Section
13.06. Attorneys’ Fees. If either party defaults in the performance or observance of any of the terms, conditions,
covenants or obligations contained in this Lease and the non-defaulting party obtains a judgment against the defaulting party,
then the defaulting party agrees to reimburse the non-defaulting party for reasonable attorneys’ fees incurred in connection
therewith. In addition, if a monetary Default shall occur and Landlord engages outside counsel to exercise its remedies hereunder,
and then Tenant cures such monetary Default, Tenant shall pay to Landlord, on demand, all expenses incurred by Landlord as a result
thereof, including reasonable attorneys’ fees, court costs and expenses actually incurred.

 

ARTICLE
14 - LANDLORD’S RIGHT TO RELOCATE TENANT

 

Landlord
shall have the right, not more than one (1) time during the initial Lease Term and during each extensions thereof, upon at least
thirty (30) days’ prior written notice to Tenant, to relocate Tenant to another unit owned by Landlord, or an affiliated
entity of Landlord, in the vicinity containing at least as much square footage as the Leased Premises. Prior to any relocation,
Landlord shall improve such substituted space, at its expense, with improvements at least equal in quantity and quality to those
in the Leased Premises, to be reasonably approved by Tenant. Landlord shall reimburse Tenant for all reasonable third party expenses
incurred in connection with, and caused by, such relocation. In no event shall Landlord be liable to Tenant for any consequential
damages as a result of any such relocation, including, but not limited to, loss of business income or opportunity.

 

ARTICLE
15 - TENANT’S RESPONSIBILITY REGARDING

 

ENVIRONMENTAL
LAWS AND HAZARDOUS SUBSTANCES

 

Section
15.01. Environmental Definitions.

 

(a)
“Environmental Laws” shall mean all present or future federal, state and municipal laws, ordinances, rules and regulations
applicable to the environmental and ecological condition of the Leased Premises, and the rules and regulations of the Federal
Environmental Protection Agency and any other federal, state or municipal agency or governmental board or entity having jurisdiction
over the Leased Premises.

 

(b)
“Hazardous Substances” shall mean those substances included within the definitions of “hazardous substances,”
“hazardous materials,” “toxic substances” “solid waste” or “infectious waste”
under Environmental Laws and petroleum products.

 

Section
15.02. Restrictions on Tenant. Tenant shall not cause or permit the use, generation, release, manufacture, refining, production,
processing, storage or disposal of any Hazardous Substances on, under or about the Leased Premises, or the transportation to or
from the Leased Premises of any Hazardous Substances, except as necessary and appropriate for its Permitted Use in which case
the use, storage or disposal of such Hazardous Substances shall be performed in compliance with the Environmental Laws and the
highest standards prevailing in the industry.

 

Section
15.03. Notices, Affidavits, Etc. Tenant shall immediately (a) notify Landlord of (i) any violation by Tenant, its employees,
agents, representatives, customers, invitees or contractors of any Environmental Laws on, under or about the Leased Premises,
or (ii) the presence or suspected presence of any Hazardous Substances on, under or about the Leased Premises, and (b) deliver
to Landlord any notice received by Tenant relating to (a)(i) and (a)(ii) above from any source. Tenant shall execute affidavits,
representations and the like within five (5) days of Landlord’s request therefor concerning Tenant’s best knowledge
and belief regarding the presence of any Hazardous Substances on, under or about the Leased Premises.

 

Section
15.04. Tenant’s Indemnification. Tenant shall indemnify Landlord and Landlord’s managing agent from any and
all claims, losses, liabilities, costs, expenses and damages, including attorneys’ fees, costs of testing and remediation
costs, incurred by Landlord in connection with any breach by Tenant of its obligations under this Article 15. The covenants and
obligations under this Article 15 shall survive the expiration or earlier termination of this Lease.

 

    	 

    	 

    

 

 

	8	LEASE
    AGREEMENT

SUNWEST
OFFICE PARK, LLC.

 

Section
15.05. Existing Conditions. Notwithstanding anything contained in this Article 15 to the contrary, Tenant shall not have
any liability to Landlord under this Article 15 resulting from any conditions existing, or events occurring, or any Hazardous
Substances existing or generated, at, in, on, under or in connection with the Leased Premises prior to the Commencement Date of
this Lease (or any earlier occupancy of the Leased Premises by Tenant) except to the extent Tenant exacerbates the same.

 

ARTICLE
16 – MISCELLANEOUS

 

Section
16.01. Benefit of Landlord and Tenant. This Lease shall inure to the benefit of and be binding upon Landlord and Tenant
and their respective successors and assigns.

 

Section
16.02. Governing Law. This Lease shall be governed in accordance with the laws of the State of Florida.

 

Section
16.03. Force Majeure. Landlord and Tenant (except with respect to the payment of any monetary obligation) shall be excused
for the period of any delay in the performance of any obligation hereunder when such delay is occasioned by causes beyond its
control, including but not limited to work stoppages, boycotts, slowdowns or strikes; shortages of materials, equipment, labor
or energy; unusual weather conditions; or acts or omissions of governmental or political bodies.

 

Section
16.04. Examination of Lease. Submission of this instrument by Landlord to Tenant for examination or signature does not
constitute an offer by Landlord to lease the Leased Premises. This Lease shall become effective, if at all, only upon the execution
by and delivery to both Landlord and Tenant. Execution and delivery of this Lease by Tenant to Landlord constitutes an offer to
lease the Leased Premises on the terms contained herein. The offer by Tenant will be irrevocable until 6:00 p.m. EST, fifteen
(15) days after the date Landlord receives the Lease executed by Tenant.

 

Section
16.05. Indemnification for Leasing Commissions. The parties hereby represent and warrant that the only real estate brokers
involved in the negotiation and execution of this Lease is the Broker and that no other party is entitled, as a result of the
actions of the respective party, to a commission or other fee resulting from the execution of this Lease. Each party shall indemnify
the other from any and all liability for the breach of this representation and warranty on its part and shall pay any compensation
to any other broker or person who may be entitled thereto. Landlord shall pay any commissions due Broker based on this Lease pursuant
to separate agreements between Landlord and Broker. There are no other brokers involved in the leasing of the premises other than
those specifically named in Section 1 of the lease.

 

Section
16.06. Notices. Any notice required or permitted to be given under this Lease or by law shall be deemed to have been given
if it is written and delivered posted at the premises, in person or by overnight courier or mailed by certified mail, postage
prepaid, to the party who is to receive such notice at the address specified in Section 1.01(1). If sent by overnight courier,
the notice shall be deemed to have been given one (1) day after sending. If mailed, the notice shall be deemed to have been given
on the date that is three (3) business days following mailing. Either party may change its address by giving written notice thereof
to the other party.

 

Section
16.07. Partial Invalidity; Complete Agreement. If any provision of this Lease shall be held to be invalid, void or unenforceable,
the remaining provisions shall remain in full force and effect. This Lease represents the entire agreement between Landlord and
Tenant covering everything agreed upon or understood in this transaction. There are no oral promises, conditions, representations,
understandings, interpretations or terms of any kind as conditions or inducements to the execution hereof or in effect between
the parties. No change or addition shall be made to this Lease except by a written agreement executed by Landlord and Tenant.

 

Section
16.08. Financial Statements. During the Lease Term and any extensions thereof, Tenant shall provide to Landlord on an
annual basis, within ninety (90) days following the end of Tenant’s fiscal year, a copy of Tenant’s most recent financial
statements prepared as of the end of Tenant’s fiscal year. Such financial statements shall be signed by Tenant or an officer
of Tenant, if applicable, who shall attest to the truth and accuracy of the information set forth in such statements, or if the
Minimum Annual Rent hereunder exceeds $100,000.00, said statements shall be certified and audited. All financial statements provided
by Tenant to Landlord hereunder shall be prepared in conformity with generally accepted accounting principles, consistently applied.

 

Section
16.09. Representations and Warranties.

 

(a)
Tenant hereby represents and warrants that (i) Tenant is duly organized, validly existing and in good standing (if applicable)
in accordance with the laws of the State under which it was organized; (ii) Tenant is authorized to do business in the State where
the Building is located; and (iii) the individual(s) executing and delivering this Lease on behalf of Tenant has been properly
authorized to do so, and such execution and delivery shall bind Tenant to its terms.

 

(b)
Landlord hereby represents and warrants that (i) Landlord is duly organized, validly existing and in good standing (if applicable)
in accordance with the laws of the State under which it was organized; (ii) Landlord is authorized to do business in the State
where the Building is located; and (iii) the individual(s) executing and delivering this Lease on behalf of Landlord has been
properly authorized to do so, and such execution and delivery shall bind Landlord to its terms.

 

Section
16.11. Parking. Tenant shall be entitled to the non-exclusive use of the parking spaces designated for the Building by
Landlord. Tenant agrees not to overburden the parking facilities and agrees to cooperate with Landlord and other tenants in the
use of the parking facilities. Landlord reserves the right in its absolute discretion to determine whether parking facilities
are becoming crowded and, in such event, to allocate parking spaces between Tenant and other tenants. There will be no assigned
parking unless Landlord, in its sole discretion, deems such assigned parking advisable. No vehicle may be repaired or serviced
in the parking area and any vehicle brought into the parking area by Tenant, or any of Tenant’s employees, contractors or
invitees, and deemed abandoned by Landlord will be towed and all costs thereof shall be borne by Tenant. All driveways, ingress
and egress, and all parking spaces are for the joint use of all tenants. There shall be no parking permitted on any of the streets
or roadways located within the Park.

 

Section
16.12. Consent or Approval. Where the consent or approval of a party is required, such consent or approval will not be
unreasonably withheld, conditioned or delayed.

 

Section
16.13. Time. Time is of the essence of each term and provision of this Lease.

 

Section
16.14. Patriot Act. Each of Landlord and Tenant, each as to itself, hereby represents its compliance and its agreement
to continue to comply with all applicable anti-money laundering laws, including, without limitation, the USA Patriot Act, and
the laws administered by the United States Treasury Department’s Office of Foreign Assets Control, including, without limitation,
Executive Order 13224 (“Executive Order”). Each of Landlord and Tenant further represents (such representation to
be true throughout the Lease Term) (a) that it is not, and it is not owned or controlled directly or indirectly by any person
or entity, on the SDN List published by the United States Treasury Department’s Office of Foreign Assets Control and (b)
that it is not a person otherwise identified by government or legal authority as a person with whom a U.S. Person is prohibited
from transacting business. As of the date hereof, a list of such designations and the text of the Executive Order are published
under the website address www.ustreas.gov/offices/enforcement/ofac.

 

    	 	 	 

    	 		 

    

 

	9	LEASE
    AGREEMENT

SUNWEST
OFFICE PARK, LLC.

 

Section
16.15. Radon Gas. Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient
quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state
guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from
your county public health unit.

 

ARTICLE
17 - SPECIAL STIPULATIONS

 

Section
17.01. Option to Extend.

 

		(a)	Grant
                                         and Exercise of Option. Provided that (i) no default has occurred and is then continuing,
                                         (ii) the creditworthiness of Tenant is then reasonably acceptable to Landlord, and (iii)
                                         Tenant originally named herein remains in possession of and has been continuously operating
                                         in the entire Leased Premises throughout the Lease Term, Tenant shall have two (2) options
                                         to extend the Lease Term for two (2) additional periods of five (5) years (the “Extension
                                         Term”). The Extension Term shall be upon the same terms and conditions contained
                                         in the Lease except (x) Tenant shall not have any further option to extend, (y) any improvement
                                         allowances or other concessions applicable to the Leased Premises under the Lease shall
                                         not apply to the Extension Term, and (z) the Minimum Annual Rent shall be adjusted as
                                         set forth herein (“Rent Adjustment”).

 

Tenant
shall exercise such option by delivering to Landlord, no later than ninety (90) days prior to the expiration of the current Lease
Term, written notice of Tenant’s desire to extend the Lease Term. Tenant’s failure to properly exercise such option
shall be deemed a waiver of such option. If Tenant properly exercises its option to extend, Landlord shall notify Tenant of the
Rent Adjustment no later than ninety (90) days prior to the commencement of the Extension Term. Tenant shall be deemed to have
accepted the Rent Adjustment if it fails to deliver to Landlord a written objection thereto within five (5) business days after
receipt thereof If Tenant properly exercises its option to extend, Landlord and Tenant shall execute an amendment to the Lease
(or, at Landlord’s option, a new lease on the form then in use for the Building) reflecting the terms and conditions of
the Extension Term within thirty (30) days after Tenant’s acceptance (or deemed acceptance) of the Rent Adjustment.

 

		(b)	Rent
                                         Adjustment. The Minimum Annual Rent for the Extension Term shall be an amount equal three-
                                         percent (3%) of the Minimum Annual Rent per square foot for the period immediately preceding
                                         the Extension Term for the first twelve (12) months of the Extension Term, with an increase
                                         of three percent (3%) for each successive twelve (12) month period of the Extension Term.
                                         The Monthly Rental Installments shall be an amount equal to one-twelfth (1/12) of the
                                         Minimum Annual Rent for the Extension Term and shall be paid at the same time and in
                                         the same manner as provided in the Lease.

 

[SIGNATURES
FOLLOW ON NEXT PAGE]

 

    	 	 	 

    	 		 

    

 

	10	LEASE
    AGREEMENT

SUNWEST
OFFICE PARK, LLC.

 

IN
WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year first above written.

 

		 	LANDLORD:
	 	 	 	 
	WITNESSES:
    	 	SUNWEST
    OFFICE PARK, LLC, a Florida limited liability corporation.
		 	 	 
	Printed
    Name:____________________________________	 	 	 
	 	 	By:	/s/
    Michael Coverh
		 	Printed
    Name: Michael Coverh
	Printed
    Name:____________________________________	 	Its:	VP
    of Operations
	 	 	 	 
	 	 	Date
    of Execution: 05/23/17
	 	 	 	 
	 	 	TENANT:
	 	 	 	 
	 	 	ANU
    LIFE SCIENCES, INC. 
	 	 	 	 
	 	 	 
	WITNESSES:
    ____________________________________	 	
		 	 	 
	Printed
    Name:____________________________________	 	 	 
	 	 	By:	/s/
    Bruce Werber
	 	 	Printed
    Name: Bruce Werber 
	 	 	Its:	Chief
    Executive Officer 
	 	 	 	 
	 	 	Date
    of Execution: 05/23/17

 

    	 	 	 

    	 		 

    

 

	11	LEASE
    AGREEMENT

SUNWEST
OFFICE PARK, LLC.

 

Exhibit
A

LEASED
PREMISES

 

 

    	 	 	 

    	 		 

    

 

	12	LEASE
    AGREEMENT

SUNWEST
OFFICE PARK, LLC.

 

Exhibit
B 

RENT
BREAKDOWN’ S 

 

 

 

 

    	 	 	 

    	 		 

    

 

	13	LEASE
    AGREEMENT

SUNWEST
OFFICE PARK, LLC.

 

EXHIBIT
C

RULES
AND REGULATIONS

 

A.
GENERAL RULES

 

	 	1.	Passenger
    automobiles, sport/utility vehicles, mini-trucks, vans and motorcycles (used for personal transportation and not commercially)
    that do not exceed the size of one parking space may be parked in the areas provided for that purpose. No Tenant or Occupant
    may park more than the number of vehicles in the common area as the number permitted by law, unless additional spaces have
    been assigned to the unit. Trucks (Except for pick-up trucks), campers, motor homes, trailers, boats, and boat trailers are
    prohibited. Bicycles and mopeds will be parked only in areas designated by the Association. Vehicle maintenance is not permitted
    on the Common Areas. All vehicles must be currently licensed and no inoperable or unsightly vehicles may be kept on the Common
    Areas. The developer is exempt from this regulation for vehicles engaged in any activity relating to construction, maintenance,
    or marking of units, as are commercial vehicles used by vendors of the Association while engaged in work at the Building.
	 	 	 
	 	2.	No
    exterior radio, television, or data reception antennas or any exterior wiring for any purpose may be installed without the
    written consent of the Landlord and Association
	 	 	 
	 	3.	To
    maintain harmony of exterior appearance, no one will make any changes to, place anything on, affix anything to, or exhibit
    anything from any part of the Common Areas or their Unit that is visible from the exterior of the Building or from the Common
    Areas without prior written consent of the Landlord and Association. All window treatments must be approved in writing by
    the Landlord and Association prior to installation. Any tenant or legal occupant of a Unit shall submit a written proposal
    with a sample of the window treatment to the Landlord and Association. The Landlord and Association shall respond in writing
    within ten (10) days to the application. 
	 	 	 
	 	4.	All
    common areas outside the Buildings will be used for their designated purposes only, and nothing belonging to Tenants, their
    clients or invitees, will be kept therein or thereon without the approval of the Landlord and Association. Such areas will
    at all times be kept free of obstruction. Tenants are financially responsible to the Landlord for damage to the Common Areas
    caused by themselves, their clients and invitees. 
	 	 	 
	 	5.	 Tenants
    or legal occupants of Units are not permitted to have pets on the Common Areas except for sight or hearing impaired guide
    dogs recognized by the Landlord and Association. The Landlord and Association has the authority and discretion to make exceptions
    to the limitations in this regulation in individual cases and to impose conditions concerning the exceptions
	 	 	 
	 	6.	Disposal
    of garbage and trash will only be in those areas designated by the Landlord and Association. The landlord will not provide
    trash removal from the individual Units
	 	 	 
	 	7.	All
    tenants will provide the Landlord with a contact person whom can be reached 24 hours a day, 365 days a year in case of emergency
    with the Unit. However, the Landlord and Association reserves the right to forcibly enter a unit should there be an emergency
    situation in a Unit such as but not limited to fire or broker water pipes. 
	 	 	 
	 	8.	Loud
    and disturbing noises are prohibited. All radios, televisions, tape machines, compact disc players, stereos, singing, and
    playing of musical instruments, etc., shall not be heard outside the Unit
	 	 	 
	 	9.	Illegal
    and immoral practices are prohibited.
	 	 	 
	 	10.	Lawns,
    shrubbery or other exterior plantings will not be altered, moved, or added to without permission of the Landlord and the Association
    
	 	 	 
	 	11.	No
    nuisance of any type or kind will be maintained or permitted on the Common Area
	 	 	 
	 	12.	Nothing
    will be done or kept in any Unit or in Common Areas that will increase the rate of insurance on the Building or contents of
    the Building without prior written consent of the Landlord and Association. No owner or tenant will permit anything to be
    done or kept in the Unit or in the Common Areas that will result in the cancellation of the insurance on the Building of the
    contents of the Building, or that would be in violation of any law, regulation or building code. 
	 	 	 
	 	13.	Persons
    moving furniture and other equipment into and out of the Units must notify the landlord. All such moving must take place Mondays
    through Saturdays between the hours of 8AM and 5PM only, unless the Landlord grants permission otherwise. Moving vans and
    trucks used for this purpose will remain on the Common Areas only when actually in use. A violation of this provision will
    result in a $100 fine.
	 	 	 
	 	14.	Repair,
    construction, decorating or remodeling work will be done so as to minimize the impact on the building occupants. The landlord
    reserves the right to restrict the hours to non-business hours for such activity to protect the peaceable enjoyment of the
    units. 
	 	 	 
	 	15.	The
    sinks, toilets and other plumbing fixtures shall not be used for any purpose other than those for which they are constructed,
    and no sweepings, rubbish, rags or other substances shall be thrown therein. All damages resulting from any misuse of the
    fixtures shall be borne by the tenant.Exhibit

Exhibit 10.1
CHESAPEAKE ENERGY CORPORATION
$750,000,000 8.000% Senior Notes due 2027
PURCHASE AGREEMENT
May 22, 2017
Citigroup Global Markets Inc.

As Representative (the “Representative”) of the Several Purchasers
c/o Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York 10013
Ladies and Gentlemen:
1.  Introductory. Chesapeake Energy Corporation, an Oklahoma corporation (the “Company”), proposes, subject to the terms and conditions stated herein, to issue and sell to the several initial purchasers named in Schedule A hereto (the “Purchasers”) $750,000,000 principal amount of its 8.000% Senior Notes due 2027 (the  “Offered Securities”). The Offered Securities will be unconditionally guaranteed on a senior unsecured basis (the “Guarantees”) by each subsidiary of the Company named in Schedule B hereto (collectively, the “Subsidiary Guarantors”), and subject to certain exceptions, by subsequently acquired domestic subsidiaries of the Company in accordance with the terms of the Indenture (as defined below). The Offered Securities are to be issued under an indenture dated as of April 24, 2014, among the Company, the Subsidiary Guarantors and Deutsche Bank Trust Company Americas, a New York banking corporation, as trustee (the “Trustee”), as supplemented by the seventh supplemental indenture to be dated June 6, 2017, among the Company, the Subsidiary Guarantors and the Trustee (the “Indenture”).  References to the “Offered Securities” shall include the Guarantees, unless the context otherwise requires.
The Offered Securities will be sold to the Purchasers in a transaction not registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon an exemption therefrom. The Company has prepared a preliminary offering circular dated May 22, 2017 (the “Preliminary Offering Circular”) and will prepare an offering circular dated the date hereof (the “Offering Circular”) setting forth information concerning the Company and the Offered Securities. Copies of the Preliminary Offering Circular have been, and copies of the Offering Circular will be, delivered by the Company to the Purchasers pursuant to the terms of this Agreement.  Capitalized terms used but not defined herein shall have the respective meanings given to such terms in the Preliminary Offering Circular.  References herein to the Preliminary Offering Circular, the Time of Sale Information and the Offering Circular shall be deemed to refer to and include all of the Incorporated Documents (as defined below).  The “Time of Sale” means 4:05 p.m. New York City Time, on May 22, 2017. The “Time of Sale Information” means the Preliminary Offering Circular together with the pricing term sheet substantially in the form of Schedule C hereto and the written communications listed on Schedule D hereto. The “Offering Documents” means the Time of Sale Information and the Offering Circular.
Holders of the Offered Securities (including the Purchasers and their direct and indirect transferees) will be entitled to the benefits of a Registration Rights Agreement, to be dated as of the Closing Date (as defined below) (the “Registration Rights Agreement”), pursuant to which the Company and each Subsidiary Guarantor will agree to file, under the circumstances set forth therein, one or more registration statements with the Securities and Exchange Commission (the “Commission”) providing for the registration under the Securities Act of the Offered Securities, including the Guarantees, or the Exchange Securities, including the related Guarantees, referred to (and as defined) in the Registration Rights Agreement.

2

The Company and each Subsidiary Guarantor hereby agree with the several Purchasers as follows:
2.      Representations and Warranties of the Company and the Subsidiary Guarantors. The Company and each Subsidiary Guarantor, jointly and severally, represent and warrant to, and agree with, the several Purchasers that:
(a)      The Preliminary Offering Circular, as of its date, did not, the Time of Sale Information, as of the Time of Sale, did not, and as of the Closing Date will not, any road-show materials, when considered together with the Time of Sale Information at the Time of Sale, did not, and the Offering Circular, as of its date and in the form first used by the Purchasers to confirm sales of the Securities and as of the Closing Date, will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The preceding sentence does not apply to statements in or omissions from the Offering Documents or any road-show materials based upon written information furnished to the Company by any Purchaser through the Representative specifically for use therein, it being understood and agreed that the only such information is that described as such in Section 6(b) hereof. Except as disclosed in the Offering Documents, the documents incorporated by reference or deemed to be incorporated by reference in each of the Time of Sale Information and the Offering Circular (the “Incorporated Documents”), when filed with the Commission, do not or will not, as the case may be, contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. Such documents, when filed with the Commission, conformed or will conform, as the case may be, in all material respects with the applicable requirements of the Exchange Act and the rules and regulations of the Commission thereunder.
(b)      The Company has been duly incorporated and is an existing corporation in good standing under the laws of the State of Oklahoma, with power and authority (corporate and other) to own its properties and conduct its business as described in the Offering Documents; and the Company is duly qualified to do business as a foreign corporation in good standing in all other jurisdictions in which its ownership or lease of property or the conduct of its business requires such qualification, except where the failure to be so qualified would not reasonably be expected to, individually or in the aggregate, have a material adverse effect on the condition (financial or other), business, prospects, properties or results of operations of the Company and its subsidiaries taken as a whole (“Material Adverse Effect”).
(c)      Each subsidiary of the Company has been duly organized and is in good standing under the laws of the jurisdiction of its organization, with power and authority (corporate and other) to own its properties and conduct its business as described in the Offering Documents; and each subsidiary of the Company is duly qualified to do business and is in good standing in all other jurisdictions in which its ownership or lease of property or the conduct of its business requires such qualification, except where the failure to be so qualified would not reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect; all of the issued and outstanding capital stock or similar equity interests of each subsidiary of the Company has been duly authorized and validly issued and is fully paid and nonassessable; and, except as otherwise disclosed in the Offering Documents, the capital stock or similar equity interests of each subsidiary owned by the Company, directly or through subsidiaries, is owned free from liens, encumbrances and defects.
(d)      The Indenture has been duly authorized by the Company and each Subsidiary Guarantor; the Guarantees have been duly authorized by each Subsidiary Guarantor; the Offered Securities have been duly authorized by the Company; when the 

3

Offered Securities are delivered and paid for in accordance with this Agreement on the Closing Date (as defined below), the Indenture will have been duly executed and delivered, such Offered Securities will have been duly executed, authenticated, issued and delivered and will conform to the description thereof contained in the Offering Documents and the Indenture and, in the case of the Company, such Offered Securities, and, in the case of the Subsidiary Guarantors, such Guarantees, will constitute valid and legally binding obligations of the Company and each Subsidiary Guarantor, as applicable, enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles (collectively, the “Enforceability Exceptions”).
(e)      On the Closing Date, the Exchange Securities (including the related Guarantees) will have been duly authorized by the Company and each of the Subsidiary Guarantors and, when duly executed, authenticated, issued and delivered in connection with the exchange offer as contemplated by the Registration Rights Agreement, will be duly and validly issued and outstanding and will constitute valid and legally binding obligations of the Company, as issuer of such Exchange Securities, and each of the Subsidiary Guarantors, as guarantor of such Exchange Securities, enforceable against the Company and each of the Subsidiary Guarantors, as applicable, in accordance with their terms, subject to the Enforceability Exceptions, and will be entitled to the benefits of the Indenture.  
(f)      Except as disclosed in the Offering Documents, there are no contracts, agreements or understandings between the Company and any person that would give rise to a valid claim against the Company or any Purchaser for a brokerage commission, finder’s fee or other like payment in connection with the offering of the Offered Securities.  
(g)      No consent, approval, authorization, or order of, or filing with, any court or other governmental or regulatory authority or agency is required for the execution, delivery and performance of this Agreement, the Registration Rights Agreement and the Indenture by the Company and the Subsidiary Guarantors, or the issuance and delivery of the Offered Securities and the Exchange Securities (including the related Guarantees) or the consummation of the transactions contemplated hereby and by the Offering Documents, except such as (i) have been obtained or made by the Company and the Subsidiary Guarantors and are in full force and effect, (ii) may be required by applicable securities laws of the several states of the United States with respect to the Offered Securities and (iii) pursuant to the Securities Act, the Trust Indenture Act and applicable securities laws of the several states as contemplated by the Registration Rights Agreement.
(h)      None of the execution, delivery and performance of this Agreement, the Registration Rights Agreement and the Indenture, the issuance of the Exchange Securities (including the related Guarantees), the issuance and sale of the Offered Securities and compliance with the terms and provisions hereof and thereof, will result in a breach or violation of (i) any of the terms and provisions of, or constitute a default under, any statute, rule, regulation or order of any governmental agency or body or any court, domestic or foreign, having jurisdiction over the Company or any subsidiary of the Company or any of their properties, (ii) any agreement or instrument to which the Company or any such subsidiary is a party or by which the Company or any such subsidiary is bound or to which any of the properties of the Company or any such subsidiary is subject, or (iii) the charter or by-laws (or similar organizational documents) of the Company or any such subsidiary except, in the case of (ii), as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse 

4

Effect. The Company and the Subsidiary Guarantors have full power and authority to authorize, issue and sell the Offered Securities as contemplated by this Agreement.
(i)      This Agreement has been duly authorized, executed and delivered by the Company and each Subsidiary Guarantor. The Registration Rights Agreement has been duly authorized by the Company and each Subsidiary Guarantor, and on the Closing Date will be duly executed and delivered by the Company and each Subsidiary Guarantor and, when duly executed and delivered in accordance with its terms by each of the other parties thereto, will constitute a valid and legally binding obligation of each of the Company and the Subsidiary Guarantors, enforceable in accordance with its terms, subject to the Enforceability Exceptions. 
(j)      Except as otherwise disclosed or incorporated by reference in the Offering Documents, each of the Company and its subsidiaries has (i) good and defensible title to its oil and gas properties, (ii) good and marketable title to all other real property owned by it to the extent necessary to carry on its business, (iii) good and marketable title to all personal property owned by it, and (iv) good and defensible title to the easements, leases and subleases material to the business of the Company and its subsidiaries, in each case free and clear of all liens, encumbrances and defects that materially affect the value of the properties of the Company and its subsidiaries, considered as one enterprise, and do not interfere in any material respect with the use made and proposed to be made of such properties, by the Company and its subsidiaries, considered as one enterprise.
(k)      The Company and its subsidiaries possess adequate certificates, authorities or permits issued by appropriate governmental agencies or bodies necessary to conduct the business now operated by them and have not received any notice of proceedings relating to the revocation or modification of any such certificate, authority or permit that, if determined adversely to the Company or any of its subsidiaries, would reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect.
(l)      No labor dispute with the employees of the Company or any subsidiary of the Company exists or, to the knowledge of the Company, is imminent that would reasonably be expected to have a Material Adverse Effect.
(m)      The Company and its subsidiaries own, possess or can acquire on reasonable terms, adequate trademarks, trade names and other rights to inventions, know-how, patents, copyrights, confidential information and other intellectual property (collectively, “intellectual property rights”) necessary to conduct the business now operated by them, or presently employed by them, and have not received any notice of infringement of, or conflict with, asserted rights of others with respect to any intellectual property rights that, if determined adversely to the Company or any of its subsidiaries, would reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect.
(n)      Except as disclosed in the Offering Documents, neither the Company nor any of its subsidiaries is in violation of any statute, rule, regulation, decision or order of any governmental agency or body or any court, domestic or foreign, relating to the use, disposal or release of hazardous or toxic substances or relating to the protection or restoration of the environment or human exposure to hazardous or toxic substances  (collectively, “environmental laws”), owns or operates any real property contaminated with any substance that is subject to any environmental laws, is liable for any off-site disposal or contamination pursuant to any environmental laws, or is subject to any claim relating to any environmental laws, which violation, contamination, liability or claim would reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect; and the Company is not aware of any pending investigation which might lead to such a claim.

5

(o)      Except as otherwise disclosed in the Offering Documents, there are no pending actions, suits, governmental or regulatory inquiries or investigations, or other proceedings against or affecting the Company, any of its subsidiaries or any of their respective properties that, if determined adversely to the Company or any of its subsidiaries, would reasonably be expected to, individually or in the aggregate, have a Material Adverse Effect, or would materially and adversely affect the ability of the Company or any Subsidiary Guarantor to perform its obligations under the Indenture, the Registration Rights Agreement or this Agreement, or which are otherwise material in the context of the sale of the Offered Securities pursuant to the Offering Documents; and no such actions, suits, inquiries, investigations or proceedings are, to the Company’s knowledge, threatened or contemplated.
(p)      The financial statements included or incorporated by reference in the Offering Documents present fairly the financial position of the Company and its consolidated subsidiaries as of the dates shown and their results of operations and cash flows for the periods shown, and such financial statements have been prepared in conformity with the generally accepted accounting principles in the United States applied on a consistent basis throughout the periods involved. The interactive data in eXtensible Business Reporting Language included in the Incorporated Documents fairly presents the information called for in all material respects and have been prepared in accordance with the Commission’s rules and guidelines applicable thereto.
(q)      Except as otherwise disclosed in the Offering Documents, since the date of the latest audited financial statements incorporated by reference in the Offering Documents, there has been no material adverse change, nor any development or event involving a prospective material adverse change, in the condition (financial or other), business, properties or results of operations of the Company and its subsidiaries taken as a whole, and, except as disclosed in the Offering Documents, there has been no dividend or distribution of any kind declared, paid or made by the Company on any class of its capital stock.
(r)      None of the Company and the Subsidiary Guarantors is, and after giving effect to the offering and sale of the Offered Securities and the application of the proceeds thereof as described in the Offering Documents, will be, an “investment company” within the meaning of the Investment Company Act of 1940, as amended (the “Investment Company Act,” which term, as used herein, includes the rules and regulations of the Commission promulgated thereunder).
(s)      At any Closing Date, the Offered Securities will not be of the same class as securities listed on a national securities exchange registered under Section 6 of the Exchange Act or quoted in a U.S. automated interdealer quotation system; and each of the Preliminary Offering Circular, the Time of Sale Information and the Offering Circular, as of its respective date, contains or will contain all the information that, if requested by a prospective purchaser of the Securities, would be required to be provided to such prospective purchaser pursuant to Rule 144A(d)(4) under the Securities Act.
(t)      Assuming the accuracy of the representations and warranties of the Purchasers, and compliance with the agreements of the Purchasers, contained in this Agreement, it is not necessary in connection with the issuance and sale of the Offered Securities to the Purchasers and the offer, resale and delivery of the Offered Securities by the Purchasers in the manner contemplated by this Agreement, the Time of Sale Information and the Offering Circular, to register the Offered Securities under the Securities Act or to qualify the Indenture under the Trust Indenture Act of 1939 (the “Trust Indenture Act,” which term, as used herein, includes the rules and regulations of the Commission promulgated thereunder).

6

(u)      During the six-month period preceding the date of the Offering Circular, none of the Company, its affiliates (as such term is defined in Rule 501(d) under the Securities Act) (each, an “Affiliate”), or any person acting on its or any of their behalf (other than the Purchasers, as to whom the Company and the Subsidiary Guarantors make no representation or warranty) has, directly or indirectly, solicited any offer to buy or offered to sell, or will, directly or indirectly, solicit any offer to buy or offer to sell, in the United States or to any United States citizen or resident, any security which is or would be integrated with the sale of the Offered Securities in a manner that would require the Offered Securities to be registered under the Securities Act.  None of the Company, its Affiliates, or any person acting on its or any of their behalf (other than the Purchasers, as to whom the Company and the Subsidiary Guarantors make no representation or warranty) has engaged or will engage, in connection with the offering of the Offered Security, (i) in any form of general solicitation or general advertising within the meaning of Rule 502(c) under the Securities Act or (ii) in any directed selling efforts within the meaning of Regulation S under the Securities Act (“Regulation S”), and all such persons have complied with the offering restrictions requirement of Regulation S.
(v)      The Company is subject to the reporting requirements of either Section 13 or 15(d) of the Exchange Act and files reports with the Commission on the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) System.
(w)      The statistical and market related data and forward looking statements included in the Offering Documents are based on or derived from sources that the Company believes to be reliable and accurate in all material respects and represents its good faith estimates that are made on the basis of data derived from such sources.
(x)      Neither the Company nor any of its subsidiaries has any liability for any prohibited transaction or accumulated funding deficiency (within the meaning of Section 412 of the Internal Revenue Code of 1986, as amended) or any complete or partial withdrawal liability (within the meaning of Sections 4203 and 4205 of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), respectively), with respect to any pension, profit sharing or other plan which is subject to ERISA, to which the Company or any of its subsidiaries makes or ever has made a contribution and in which any employee of the Company or any subsidiary is or has ever been a participant. With respect to such plans, the Company and each of its subsidiaries is in compliance in all material respects with all applicable provisions of ERISA.
(y)      The Company has established and maintains disclosure controls and procedures (as such term is defined in Rule 13a-15 under the Exchange Act); such disclosure controls and procedures are designed to ensure that material information relating to the Company and its subsidiaries is made known to the chief executive officer and chief financial officer of the Company by others within the Company or any subsidiary, and such disclosure controls and procedures are reasonably effective to perform the functions for which they were established subject to the limitations of any such control system; the Company’s auditors and the audit committee of the board of directors of the Company have been advised of: (A) any significant deficiencies in the design or operation of internal controls which could adversely affect the Company’s ability to record, process, summarize, and report financial data; and (B) any fraud, whether or not material, that involves management or other employees who have a role in the Company’s internal controls; any material weaknesses in internal controls have been identified for the Company’s auditors; and, except as disclosed in the Offering Documents, since the date of the most recent evaluation of such disclosure controls and procedures, there have been no significant changes in internal controls or in other factors that could significantly affect internal controls, including any corrective actions with regard to significant deficiencies and material weaknesses. The Company makes and keeps accurate books and records and maintains a system of “internal control over 

7

financial reporting” (as defined in Rule 13a-15(f) of the Exchange Act) to provide reasonable assurance that (A) transactions are executed in accordance with management’s authorization, (B) transactions are recorded as necessary to permit preparation of its financial statements in conformity with generally accepted accounting principles and to maintain accountability for assets, (C) access to its financial assets is permitted only in accordance with management’s general or specific authorization, (D) the reported accountability for its assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences and (E) the interactive data in eXtensible Business Reporting Language incorporated in the Offering Documents is, in all material respects, prepared in accordance with the Commission’s rules and guidelines applicable thereto. The Company made available to the Purchasers or their counsel for review true and complete copies of all minutes or draft minutes of meetings, or resolutions adopted by written consent, of the board of directors of the Company and each subsidiary and each committee of each such board in the past three years, and all agendas for each such meeting for which minutes or draft minutes do not exist.
(z)      Except as disclosed in the Offering Documents, (i) all stock options granted under any stock option plan of the Company (the “Stock Plans”) have been granted in compliance with the terms of applicable law and the applicable Stock Plans and (ii) the Company has properly accounted for all stock options granted under the Stock Plans in conformity with generally accepted accounting principles in the United States applied on a consistent basis.
(aa)      The Company has not received any written comments from the Commission staff in connection with the Company’s reports under the Exchange Act that remain unresolved, other than such written comments from the Commission staff, true and complete copies of which have been provided by the Company to the Representative prior to the date hereof.
(bb)      The Company has been informed of the existence of the United Kingdom Financial Services Authority stabilizing guidance contained in Section MAR 2, Ann 2G of the Handbook of rules and guidance issued by the Financial Services Authority; and none of the Company or any Subsidiary Guarantor has taken any action or omitted to take any action (such as issuing any press release relating to any Offered Securities without an appropriate legend) which may result in the loss by any of the Purchasers of the ability to rely on any stabilization safe harbor provided under the Financial Services and Markets Act 2000 (“FSMA”).
(cc)      Neither the Company nor any of the Subsidiary Guarantors has distributed and, prior to the later to occur of (i) the Closing Date and (ii) the completion of the distribution of the Offered Securities, will not distribute any material in connection with the offering and sale of the Offered Securities other than the Offering Documents or other materials, if any, permitted by the Securities Act and FSMA (or regulation promulgated pursuant to the Securities Act or FSMA) and approved by the parties to this Agreement.
(dd)      Neither the Company nor any of its subsidiaries, nor, to the knowledge of the Company, any director, officer, employee, agent, affiliate or other person acting on behalf of the Company or any of its subsidiaries, has taken any action, directly or indirectly, that would violate the Foreign Corrupt Practices Act of 1977. 
(ee)      The operations of the Company and its subsidiaries are and have been conducted at all times in material compliance with all applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, and the applicable money laundering statutes of all jurisdictions where the Company or any of its subsidiaries conduct business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered 

8

or enforced by any governmental agency (collectively, the “Anti-Money Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Company, threatened.
(ff)      Neither the Company or any of its subsidiaries, nor, to the knowledge of the Company, any director, officer, employee, agent or affiliate of the Company or any of its subsidiaries, is currently the subject of any sanctions administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”), and the Company will not directly or indirectly use the proceeds of the offering of the Offered Securities hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity currently subject to sanctions administered by OFAC.
Any certificate signed by any officer of the Company or any of the Subsidiary Guarantors and delivered to the Purchasers or counsel for the Purchasers in connection with the offering of the Offered Securities shall be deemed to be a representation and warranty by the Company or such Subsidiary Guarantor to the Purchasers as to matters set forth therein.
3.      Purchase, Sale and Delivery of Offered Securities.  (a)  On the basis of the representations, warranties and agreements herein contained, but subject to the terms and conditions herein set forth, the Company agrees to sell to the Purchasers, and each Purchaser agrees, severally and not jointly, to purchase from the Company the respective principal amounts of Offered Securities set forth opposite the names of the several Purchasers in Schedule A hereto (which shall be in minimum denominations of $2,000 and an integral multiple of $1,000 in excess thereof) at a purchase price of 99.00% of the principal amount thereof, plus accrued interest from June 6, 2017 to the Closing Date (as hereinafter defined).
The Company will deliver against payment of the purchase price the Offered Securities in the form of one or more permanent global securities in definitive form (the “Global Securities”) deposited with the Trustee as custodian for The Depository Trust Company (“DTC”) and registered in the name of Cede & Co., as nominee for DTC. Interests in any permanent Global Securities will be held only in book-entry form through DTC, except in the limited circumstances described in the Offering Documents. Payment for the Offered Securities shall be made by the Purchasers in federal (same day) funds by wire transfer to an account at a bank acceptable to Citigroup Global Markets Inc. (“Citi”)  drawn to the order of Chesapeake Energy Corporation at the offices of Baker Botts L.L.P., New York, New York, at 10:00 A.M. (New York time), on June 6, 2017 or at such other time not later than seven full business days thereafter as Citi and the Company determine, such time being herein referred to as the “Closing Date,” against delivery to the Trustee as custodian for DTC of the Global Securities representing all of the Offered Securities. The Global Securities will be made available for checking at the above office at least 24 hours prior to the Closing Date.
(b)      The Company understands that the Purchasers intend to offer the Offered Securities for resale on the terms set forth in the Time of Sale Information. Each Purchaser, severally and not jointly, represents and warrants to, and agrees with, the Company and the Subsidiary Guarantors that:
(i)      it is a “qualified institutional buyer” (“QIB”), as defined in Rule 144A under the Securities Act, and an accredited investor within the meaning of Rule 501(a) of Regulation D under the Securities Act (“Regulation D”);
(ii)      it has not solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Offered Securities by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act; and

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(iii)      it has not solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Offered Securities as part of their initial offering except (x) within the United States to persons whom it reasonably believes to be QIBs in transactions pursuant to Rule 144A and in connection with each such sale, it has taken or will take reasonable steps to ensure that the purchaser of the Offered Securities is aware that such sale is being made in reliance on Rule 144A or (y) in accordance with the restrictions set forth in Exhibit C hereto.
(c)      Each Purchaser acknowledges and agrees that the Company and, for purposes of the “no registration” opinions to be delivered to the Purchasers pursuant to Sections 5(c) and 5(f), counsel for the Company and counsel for the Purchasers, respectively, may rely upon the accuracy of the representations and warranties of the Purchasers, and compliance by the Purchasers with their agreements, contained in paragraph (b) above, and each Purchaser hereby consents to such reliance.
4.      Certain Agreements of the Company.  The Company agrees with the several Purchasers that:
(a)      The Company will advise the Representative promptly of any proposal to amend or supplement the Offering Documents and will not effect such amendment or supplement without the Representative’s consent. If, at any time prior to the completion of the resale of the Offered Securities by the Purchasers, the Offering Documents or any road-show materials as then amended or supplemented include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, the Company promptly will notify the Representative of such event and promptly will prepare, at its own expense, an amendment or supplement which will correct such statement or omission. Neither the Representative’s consent to, nor the Purchasers’ delivery to offerees or investors of, any such amendment or supplement shall constitute a waiver of any of the conditions set forth in Section 5.
(b)       The Company will furnish to the Representatives copies of the Offering Documents and all amendments and supplements to such documents, in each case as soon as available and in such quantities as the Representative reasonably requests.  While the Offered Securities remain outstanding and are “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act, the Company will, during any period in which the Company is not subject to Section 13 or 15(d) of the Exchange Act, for the benefit of holders and beneficial owners from time to time of the Offered Securities, furnish, at its expense, upon request, to holders and beneficial owners of the Offered Securities and prospective purchasers of the Offered Securities designated by such holders the information satisfying the requirements of Rule 144A(d)(4).
(c)      The Company will arrange for the qualification of the Offered Securities for sale and the determination of their eligibility for investment under the laws of such jurisdictions as the Representative designates and will continue such qualifications in effect so long as required for the resale of the Offered Securities by the Purchasers, provided that none of the Company or the Subsidiary Guarantors will be required to qualify as a foreign entity or to file a general consent to service of process in any such state.
(d)      During the period of one year after the Closing Date, the Company will, upon request, furnish to the Representative, each of the other Purchasers and any holder of Offered Securities a copy of the restrictions on transfer applicable to the Offered Securities.
(e)      During the period of one year after the Closing Date, the Company will not, and will not permit any of its affiliates (as defined in Rule 144 under the Securities Act) to, resell any of the Offered Securities so long as they constitute “restricted securities”

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under Rule 144 that have been reacquired by any of them, except for Offered Securities purchased by the Company or such affiliates and resold in a transaction registered under the Securities Act.
(f)      The Company will pay all expenses incidental to the performance of its obligations under this Agreement, the Registration Rights Agreement and the Indenture, including (i) the fees and expenses of the Trustee and its professional advisers; (ii) all expenses in connection with the execution, issue, authentication, packaging and initial delivery of the Offered Securities and any other document relating to the issuance, offer, sale and delivery of the Offered Securities and the preparation and printing of the Offering Documents and amendments and supplements thereto, if any; (iii) the cost of any advertising approved by the Company in connection with the issue of the Offered Securities; (iv) any expenses (including fees and disbursements of counsel) incurred in connection with qualification of the Offered Securities for sale under the laws of such jurisdictions as the Representative designates and the printing of memoranda relating thereto; (v) any fees charged by investment rating agencies for the rating of the Offered Securities; and (vi) expenses incurred in distributing the Offering Documents (including any amendments and supplements thereto) to the Purchasers.  Except as set forth in this Section 4(f) and in Sections 6 and 8, the Purchasers shall pay their own expenses incidental to the performance of their obligations under this Agreement.
(g)      In connection with the offering, until the Representative shall have notified the Company and the other Purchasers of the completion of the resale of the Offered Securities, neither the Company nor any of its affiliates has or will, either alone or with one or more other persons, bid for or purchase for any account in which it or any of its affiliates has a beneficial interest any Offered Securities or attempt to induce any person to purchase any Offered Securities; and neither it nor any of its affiliates will make bids or purchases for the purpose of creating actual, or apparent, active trading in, or of raising the price of, the Offered Securities.
(h)      Neither the Company nor its subsidiaries will at any time offer, sell, contract to sell, pledge or otherwise dispose of, directly or indirectly, any securities under circumstances where such offer, sale, pledge, contract or disposition would cause the exemption afforded by Section 4(a)(2) of the Securities Act to cease to be applicable to the offer and sale of the Offered Securities as contemplated by this Agreement.
(i)      Before using, authorizing, approving or referring to any written communication that constitutes an offer to sell or a solicitation to buy the Offered Securities (other than the Offering Documents), the Company will furnish to the Purchasers and counsel for the Purchasers a copy of such written communication for review and will not use, authorize, approve or refer to any such written communication to which the Representative reasonably objects.
(j)      The Company will apply the net proceeds of the offering and the sale of the Offered Securities in a manner consistent with the description contained in the Offering Documents under the caption “Use of Proceeds.”
(k)      None of the Company or its subsidiaries or any other person acting on its or their behalf (other than the Purchasers, as to which no covenant is given) will (i) solicit offers for, or offer or sell, the Offered Securities by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act or (ii) engage in any directed selling efforts within the meaning of Regulation S, and all such persons will comply with the offering restrictions requirement of Regulation S.

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5.      Conditions of the Obligations of the Purchasers.  The obligations of the several Purchasers to purchase and pay for the Offered Securities on the Closing Date will be subject to the accuracy of the representations and warranties on the part of the Company and each Subsidiary Guarantor herein, to the accuracy of the statements of officers of the Company and each Subsidiary Guarantor made pursuant to the provisions hereof, to the performance by the Company and each of the Subsidiary Guarantors of their respective obligations hereunder and to the following additional conditions precedent:
(a)      The Purchasers shall have received a letter, dated the date of this Agreement, of PricewaterhouseCoopers LLP, independent public accountants for the Company, in form and substance reasonably satisfactory to the Representative and PricewaterhouseCoopers LLP.
(b)      Subsequent to the execution and delivery of this Agreement, there shall not have occurred (i) any change, or any development or event involving a prospective change, in the condition (financial or other), business, properties or results of operations of the Company and its subsidiaries taken as one enterprise which, in the judgment of the Representative, is material and adverse and makes it impractical or inadvisable to proceed with completion of the offering or the sale of and payment for the Offered Securities pursuant to this Agreement; (ii) any downgrading in the rating of any debt securities of the Company by any “nationally recognized statistical rating organization” (as defined for purposes of Section 3(a)(62) of the Exchange Act), or any public announcement that any such organization has under surveillance or review its rating of any debt securities of the Company (other than an announcement with positive implications of a possible upgrading, and no implication of a possible downgrading, of such rating) or any announcement that the Company has been placed on negative outlook; (iii) any change in U.S. or international financial, political or economic conditions or currency exchange rates or exchange controls as would, in the judgment of the Representative, be likely to prejudice materially the success of the proposed issue, sale or distribution of the Offered Securities, whether in the primary market or in respect of dealings in the secondary market; (iv) any material suspension or material limitation of trading in securities generally on the New York Stock Exchange, or any setting of minimum prices for trading on such exchange, or any suspension of trading of any securities of the Company on any exchange or in the over-the-counter market; (v) any banking moratorium declared by U.S. Federal or New York authorities; (vi) any major disruption of settlements of securities or clearance services in the United States; or (vii) any attack on, outbreak or escalation of hostilities or acts of terrorism involving the United States, any declaration of war by Congress or any other national or international calamity or emergency if, in the judgment of the Representative, the effect of any such attack, outbreak, escalation, act, declaration, calamity or emergency makes it impractical or inadvisable to proceed with completion of the offering or the sale of and payment for the Offered Securities pursuant to this Agreement.
(c)      Baker Botts L.L.P., counsel to the Company, shall have furnished to the Representative, as of the Closing Date, its opinion, dated the Closing Date, as applicable, substantially to the effect set forth in Exhibit A. In rendering such opinion, Baker Botts L.L.P. may rely as to the incorporation of the Company and all other matters governed by Oklahoma law upon the opinion of Derrick & Briggs, L.L.P.
(d)      On the Closing Date, the Representative shall have received, in form and substance reasonably satisfactory to them, the favorable opinion of Derrick & Briggs, L.L.P., counsel to the Company and certain of the Subsidiary Guarantors, dated the Closing Date, substantially to the effect set forth in Exhibit B.
(e)      The Purchasers shall have received from Cravath, Swaine & Moore LLP, counsel for the Purchasers, such opinion or opinions, dated the Closing Date, in form and substance reasonably satisfactory to the Representative, and the Company shall have

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furnished to such counsel such documents as they request for the purpose of enabling them to pass upon such matters. In rendering such opinion, Cravath, Swaine & Moore LLP may rely as to all matters governed by Oklahoma law upon the opinion of Derrick & Briggs, L.L.P., referred to above.
(f)      The Purchasers shall have received a certificate, dated the Closing Date, of the Chief Financial Officer, Treasurer or any Vice President of the Company, acting in such capacity (and not individually), shall state that the representations and warranties of the Company in this Agreement are true and correct as if made on and as of such date, that the Company has performed in all material respects all covenants and agreements and satisfied all conditions on its part to be performed or satisfied at or prior to such date (after giving effect to the offering and sale of the Offered Securities), and that, subsequent to the date as of which information is given in the Offering Documents (as amended or supplemented), as of the date of such certificate, there has not been any change in such information that would have a Material Adverse Effect.
(g)      The Purchasers shall have received a letter, dated such Closing Date, of PricewaterhouseCoopers LLP which meets the requirements of subsection (a) of this Section, except that the specified date referred to in such subsection will be a date not more than three days prior to such Closing Date for the purposes of this subsection.
(h)      The Purchasers shall have received (i) a copy of the certificate or articles of incorporation, including all amendments thereto, of the Company, certified as of a recent date by the Secretary of State of the State of Oklahoma, (ii) a certificate of good standing for the Company, dated as of a recent date, from such Secretary of State and (iii) a certificate, dated as of a recent date, of the Secretary of State of each state in which the Company is qualified to do business as a foreign corporation under the laws of such state.
(i)      The Purchasers shall have received (i) a copy of the certificate or articles of incorporation (or similar organizational document), including all amendments thereto, of each of the Subsidiary Guarantors, certified as of a recent date by the Secretary of State of the state in which such subsidiary is organized, (ii) a certificate of good standing for each of the Subsidiary Guarantors, certified as of a recent date by the Secretary of State of the state in which such subsidiary is organized and (iii) a certificate, dated as of a recent date, of the Secretary of State of each state in which each such subsidiary is qualified to do business as a foreign corporation (or similar entity) under the laws of each such state.
(j)      The Purchasers shall have received a counterpart of the Registration Rights Agreement that shall have been executed and delivered by a duly authorized officer of the Company and each Subsidiary Guarantor.
The Company will furnish the Purchasers with such conformed copies of such opinions, certificates, letters and documents as the Purchasers reasonably request. The Representative may in its sole discretion waive on behalf of the Purchasers compliance with any conditions to the obligations of the Purchasers hereunder.
6.      Indemnification and Contribution. 
(a)      Each of the Company and the Subsidiary Guarantors, jointly and severally, will indemnify and hold harmless each Purchaser, its affiliates and their respective partners, members, directors, officers, employees and agents and each person, if any, who controls such Purchaser within the meaning of Section 15 of the Securities Act, against any losses, claims, damages or liabilities, joint or several, to which such Purchaser may become subject, under the Securities Act or the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) 

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arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the Offering Documents, or any amendment or supplement thereto, or the Exchange Act Reports or road-show materials, or arise out of or are based upon the omission or alleged omission to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, including any losses, claims, damages or liabilities arising out of or based upon the Company’s failure to perform its obligations under Section 4(a) of this Agreement, and will reimburse each Purchaser for any legal or other expenses reasonably incurred by such Purchaser in connection with investigating or defending any such loss, claim, damage, liability or action as such expenses are incurred; provided, however, that the Company and the Subsidiary Guarantors will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement in or omission or alleged omission from any of such documents in reliance upon and in conformity with written information furnished to the Company by a Purchaser specifically for use therein, it being understood and agreed that the only such information consists of the information described as such in subsection (b) below.
(b)      Each Purchaser will severally and not jointly indemnify and hold harmless the Company, its directors, officers, employees and agents and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act, against any losses, claims, damages or liabilities to which the Company may become subject, under the Securities Act or the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the Offering Documents, or any amendment or supplement thereto, or arise out of or are based upon the omission or the alleged omission to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company by such Purchaser specifically for use therein, and will reimburse any legal or other expenses reasonably incurred by the Company in connection with investigating or defending any such loss, claim, damage, liability or action as such expenses are incurred, it being understood and agreed that the only such information furnished by any Purchaser consists of the following information in the Offering Circular furnished on behalf of each Purchaser: under the caption “Plan of Distribution” paragraphs 6, 7 and 8.
(c)      Promptly after receipt by an indemnified party under this Section of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under subsection (a) or (b) above, notify the indemnifying party in writing of the commencement thereof; but the omission so to notify the indemnifying party will not relieve it from any liability which it may have under subsection (a) or (b) above except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided further that the failure to notify the indemnifying party shall not relieve it from any liability that it may have to any indemnified party otherwise than under subsection (a) or (b) above. In case any such action is brought against any indemnified party and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent that it may wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party will not be liable to such indemnified party under this Section for any legal or other expenses subsequently incurred by such indemnified party 

14

in connection with the defense thereof other than reasonable costs of investigation; provided, however, if such indemnified party shall have been advised by counsel that there are one or more defenses available to it that are in conflict with those available to the indemnifying party (in which case the indemnifying party shall not have the right to direct the defense of such action on behalf of the indemnified party), the reasonable fees and expenses of such indemnified party’s counsel shall be borne by the indemnifying party. In no event shall the indemnifying party be liable for the fees and expenses of more than one counsel (together with appropriate local counsel) at any time for any indemnified party in connection with any one action or separate but substantially similar or related actions arising in the same jurisdiction out of the same general allegations or circumstances. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened action in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party unless such settlement includes an unconditional release of such indemnified party from all liability on any claims that are the subject matter of such action and does not include a statement as to or an admission of fault, culpability or failure to act by or on behalf of any indemnified party.
(d)      If the indemnification provided for in this Section is unavailable or insufficient to hold harmless an indemnified party under subsection (a) or (b) above, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of the losses, claims, damages or liabilities referred to in subsection (a) or (b) above (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Purchasers on the other from the offering of the Offered Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and the Purchasers on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Purchasers on the other shall be deemed to be in the same proportion as the total net proceeds from the offering (before deducting expenses) received by the Company bear to the total discounts and commissions received by the Purchasers from the Company under this Agreement. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or the Purchasers and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The amount paid by an indemnified party as a result of the losses, claims, damages or liabilities referred to in the first sentence of this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any action or claim which is the subject of this subsection (d). Notwithstanding the provisions of this subsection (d), no Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Offered Securities purchased by it were resold exceeds the amount of any damages which such Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.  The Purchasers’ obligations in this subsection (d) to contribute are several in proportion to their respective purchase obligations and not joint.
(e)      The obligations of the Company under this Section shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each person, if any, who controls any Purchaser within the 

15

meaning of the Securities Act or the Exchange Act; and the obligations of the Purchasers under this Section shall be in addition to any liability which the respective Purchasers may otherwise have and shall extend, upon the same terms and conditions, to each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act.
7.      Default of Purchasers.  If any Purchaser or Purchasers default in their obligations to purchase Offered Securities hereunder on the Closing Date and the aggregate principal amount of Offered Securities that such defaulting Purchaser or Purchasers agreed but failed to purchase does not exceed 10% of the total principal amount of Offered Securities that the Purchasers are obligated to purchase on such Closing Date, the Representative may make arrangements satisfactory to the Company for the purchase of such Offered Securities by other persons, including any of the Purchasers, but if no such arrangements are made by such Closing Date, the non-defaulting Purchasers shall be obligated severally, in proportion to their respective commitments hereunder, to purchase the Offered Securities that such defaulting Purchasers agreed but failed to purchase on such Closing Date. If any Purchaser or Purchasers so default and the aggregate principal amount of Offered Securities with respect to which such default or defaults occur exceeds 10% of the total principal amount of Offered Securities that the Purchasers are obligated to purchase on such Closing Date and arrangements satisfactory to the Representative and the Company for the purchase of such Offered Securities by other persons are not made within 36 hours after such default, this Agreement will terminate without liability on the part of any non-defaulting Purchaser or the Company, except as provided in Section 8. As used in this Agreement, the term “Purchaser” includes any person substituted for a Purchaser under this Section. Nothing herein will relieve a defaulting Purchaser from liability for its default.
8.      Survival of Certain Representations and Obligations.  The respective indemnities, agreements, representations, warranties and other statements of the Company and the Subsidiary Guarantors or their respective officers and of the several Purchasers set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation, or statement as to the results thereof, made by or on behalf of any Purchaser, the Company or any of their respective representatives, officers or directors or any controlling person, and will survive delivery of and payment for the Offered Securities. If this Agreement is terminated pursuant to Section 7 or if for any reason the purchase of the  Offered Securities by the Purchasers is not consummated, the Company shall remain responsible for the expenses to be paid or reimbursed by it pursuant to Section 4 and the respective obligations of the Company, the Subsidiary Guarantors and the Purchasers pursuant to Section 6 shall remain in effect, and if any Offered Securities have been purchased hereunder the representations and warranties in Section 2 and all obligations under Section 4 shall also remain in effect. If the purchase of the Offered Securities by the Purchasers is not consummated for any reason other than solely because of the termination of this Agreement pursuant to Section 7 or as a result of the failure of the condition in Section 5(b) in connection with the occurrence of any event specified in clause (iii), (iv) (other than any suspension of trading of any securities of the Company on any exchange or in the over-the-counter market), (v), (vi), or (vii) of Section 5(b), the Company will reimburse the Purchasers for all out-of-pocket expenses (including fees and disbursements of counsel) reasonably incurred by them in connection with the offering of the Offered Securities.
9.      Research Independence.  In addition, the Company acknowledges that the Purchasers’ research analysts and research departments are required to be independent from their respective investment banking divisions and are subject to certain regulations and internal policies, and that the Purchasers’ research analysts may hold and make statements or investment recommendations and/or publish research reports with respect to the Company and/or the offering that differ from the views of their investment bankers.  The Company hereby waives and releases, to the fullest extent permitted by law, any claims that the Company may have against the Purchasers with respect to any conflict of interest that may arise from the fact that the views expressed by the Purchasers’ independent research analysts and research departments may be different from or inconsistent with the views or advice communicated to the Company by the Purchasers’ investment banking divisions.  The Company acknowledges that the Purchasers are full service securities firms and as such from time to time, subject to applicable securities laws, may effect transactions for their 

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own accounts or the accounts of their customers and hold long or short positions in debt or equity securities of the companies that may be the subject of the transactions contemplated by this Agreement.
10.      No Fiduciary Duty.  Each of the Company and the Subsidiary Guarantors acknowledges and agrees that in connection with the offering and sale of the Offered Securities or any other services the Purchasers may be deemed to be providing hereunder, notwithstanding any preexisting relationship, advisory or otherwise, between the parties or any oral representations or assurances previously or subsequently made by the Purchasers: (i) no fiduciary or agency relationship between the Company, the Subsidiary Guarantors and any other person, on the one hand, and the Purchasers, on the other, exists; (ii) the Purchasers are not acting as advisors, experts or otherwise, to the Company or the Subsidiary Guarantors, including, without limitation, with respect to the determination of the public offering price of the Offered Securities, and such relationship between the Company and the Subsidiary Guarantors, on the one hand, and the Purchasers, on the other, is entirely and solely commercial, based on arm’s-length negotiations; (iii) any duties and obligations that the Purchasers may have to the Company and the Subsidiary Guarantors shall be limited to those duties and obligations specifically stated herein; and (iv) the Purchasers and their respective affiliates may have interests that differ from those of the Company and the Subsidiary Guarantors.  Each of the Company and the Subsidiary Guarantors hereby waives any claims that it may have against the Purchasers with respect to any breach of fiduciary duty in connection with the offering.
11.      Notices.  All communications hereunder will be in writing and, if sent to the Purchasers will be mailed, delivered or telegraphed and confirmed to the Purchasers c/o Citigroup Global Markets Inc., 388 Greenwich Street, New York, New York 10013, Attention: General Counsel, facsimile number: (646) 291-1469, or, if sent to the Company, will be mailed, delivered or telegraphed and confirmed to it at Chesapeake Energy Corporation, 6100 North Western Avenue, Oklahoma City, Oklahoma 73118, Attention:  Corporate Secretary; provided, however, that any notice to a Purchaser pursuant to Section 6 will be mailed, delivered or telecopied and confirmed to such Purchaser.
12.      Successors.  This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and the officers and directors and controlling persons referred to in Section 6, and no other person will have any right or obligation hereunder, except that holders of Offered Securities shall be entitled to enforce the agreements for their benefit contained in the second sentence of Section 4(b) hereof against the Company as if such holders were parties thereto.
13.      Representation of Purchasers.  The Representative will act for the several Purchasers in connection with this purchase, and any action under this Agreement taken by the Representative will be binding upon all the Purchasers.
14.      Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same Agreement.
15.      Applicable Law.  This Agreement and any claim, controversy or dispute arising under or related to this Agreement shall be governed by, and construed in accordance with, the laws of the State of New York without regard to principles of conflicts of laws.
The Company and each Subsidiary Guarantor hereby submit to the non-exclusive jurisdiction of the federal and state courts in the Borough of Manhattan in The City of New York in any suit or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.
Each of the Purchasers, the Company (on its behalf and, to the extent permitted by applicable law, on behalf of its stockholders and affiliates) and each Subsidiary Guarantor waives all right to trial by jury in any action, proceeding or counterclaim (whether based upon contract, tort or otherwise) in any way arising out of or relating to this Agreement.

If the foregoing is in accordance with the Purchasers’ understanding of our agreement, kindly sign and return to us one of the counterparts hereof, whereupon it will become a binding agreement among the Company, the Subsidiary Guarantors and the several Purchasers in accordance with its terms.
Very truly yours,
	
		
	CHESAPEAKE ENERGY CORPORATION

	 

	By:
	/s/ Domenic J. Dell'Osso, Jr.

	 
	Name:  Domenic J. Dell’Osso, Jr.

	 
	Title:    Executive Vice President and Chief Financial Officer

	
		
	SUBSIDIARY GUARANTORS:

CHESAPEAKE ENERGY LOUISIANA CORPORATION,
CHESAPEAKE ENERGY MARKETING, L.L.C.,
CHESAPEAKE E&P HOLDING L.L.C.,
CHESAPEAKE NG VENTURES CORPORATION,
CHESAPEAKE OPERATING, L.L.C.,
CHESAPEAKE PLAINS, LLC,
CHK ENERGY HOLDINGS, INC.,
SPARKS DRIVE SWD, INC.,
WINTER MOON ENERGY CORPORATION,
CHESAPEAKE AEZ EXPLORATION, L.L.C., 
CHESAPEAKE APPALACHIA, L.L.C.,
CHESAPEAKE-CLEMENTS ACQUISITION, L.L.C.,
CHESAPEAKE EXPLORATION, L.L.C.,
CHESAPEAKE LAND DEVELOPMENT COMPANY, L.L.C.,
CHESAPEAKE MIDSTREAM DEVELOPMENT, L.L.C.,
CHESAPEAKE ROYALTY, L.L.C.,
CHESAPEAKE VRT, L.L.C.,
CHK UTICA, L.L.C.,
COMPASS MANUFACTURING, L.L.C.,
EMLP, L.L.C.,
EMPRESS, L.L.C.,
GSF, L.L.C.,
MC LOUISIANA MINERALS, L.L.C.,
MC MINERAL COMPANY, L.L.C.,
MIDCON COMPRESSION, L.L.C.,
NOMAC SERVICES, L.L.C.,
NORTHERN MICHIGAN EXPLORATION COMPANY, L.L.C.,
CHESAPEAKE LOUISIANA, L.P.,
                By: Chesapeake Operating, L.L.C., its General Partner
EMPRESS LOUISIANA PROPERTIES, L.P.
                By: EMLP, L.L.C., its General Partner

	 

	By:
	/s/ Domenic J. Dell'Osso, Jr.

	 
	Name: Domenic J. Dell’Osso, Jr.

	 
	Title:   Executive Vice President and Chief Financial Officer

	 
	 

The foregoing Purchase Agreement is hereby confirmed and accepted as of the date first above written.
Acting on behalf of itself and as the Representative of the several Purchasers

	
			
	By: CITIGROUP GLOBAL MARKETS INC.

	 
	 
	 

	 
	 
	 

	By:
	/s/ Mohammed S. Baabde

	 
	Name:
	Mohammed S. Baabde

	 
	Title:
	Director

SCHEDULE A
	
					
	Purchaser
	 
	Principal Amount of
Offered Securities

	Citigroup Global Markets Inc.   
	 
	

	$187,500,000
	

	Credit Agricole Securities (USA) Inc.   
	 
	

	$75,000,000
	

	J.P. Morgan Securities LLC   
	 
	

	$75,000,000
	

	Deutsche Bank Securities Inc.   
	 
	

	$37,500,000
	

	Goldman Sachs & Co. LLC   
	 
	

	$37,500,000
	

	Merrill Lynch, Pierce, Fenner & Smith
                     Incorporated   
	 
	

	$37,500,000
	

	Morgan Stanley & Co. LLC   
	 
	

	$37,500,000
	

	MUFG Securities Americas Inc.   
	 
	

	$37,500,000
	

	Wells Fargo Securities, LLC   
	 
	

	$75,000,000
	

	Barclays Capital Inc.   
	 
	

	$25,000,000
	

	BNP Paribas Securities Corp.   
	 
	

	$25,000,000
	

	DNB Markets, Inc.   
	 
	

	$25,000,000
	

	Mizuho Securities USA LLC   
	 
	

	$25,000,000
	

	Natixis Securities Americas LLC   
	 
	

	$25,000,000
	

	Scotia Capital (USA) Inc.   
	 
	

	$25,000,000
	

	Total   
	 
	

	$750,000,000
	

SCHEDULE B
Chesapeake Energy Louisiana Corporation
Chesapeake Energy Marketing, L.L.C.
Chesapeake E&P Holding L.L.C.
Chesapeake NG Ventures Corporation
Chesapeake Operating, L.L.C.
Chesapeake Plains, LLC
CHK Energy Holdings, Inc.
Sparks Drive SWD, Inc.
Winter Moon Energy Corporation
Chesapeake AEZ Exploration, L.L.C.
Chesapeake Appalachia, L.L.C.
Chesapeake-Clements Acquisition, L.L.C.
Chesapeake Exploration, L.L.C.
Chesapeake Land Development Company, L.L.C.
Chesapeake Midstream Development, L.L.C.
Chesapeake Royalty, L.L.C.
Chesapeake VRT, L.L.C.
CHK Utica, L.L.C.
Compass Manufacturing, L.L.C.
EMLP, L.L.C.
Empress, L.L.C.
GSF, L.L.C.
MC Louisiana Minerals, L.L.C.
MC Mineral Company, L.L.C.
Midcon Compression, L.L.C.
Nomac Services, L.L.C.
Northern Michigan Exploration Company, L.L.C.
Chesapeake Louisiana, L.P.
Empress Louisiana Properties, L.P.

SCHEDULE C

Form of Term Sheet

CONFIDENTIAL
Pricing Term Sheet
May 22, 2017
Chesapeake Energy Corporation
$750,000,000 aggregate principal amount of 8.000% Senior Notes due 2027
The information in this pricing term sheet supplements Chesapeake Energy Corporation’s preliminary offering circular, dated May 22, 2017 (the “Preliminary Offering Circular”), and supersedes the information in the Preliminary Offering Circular to the extent inconsistent with the information in the Preliminary Offering Circular. In all other respects, this term sheet is qualified in its entirety by reference to the Preliminary Offering Circular. Terms used herein but not defined herein shall have the respective meanings as set forth in the Preliminary Offering Circular.

	
			
	Issuer:
	Chesapeake Energy Corporation

	Aggregate principal amount offered:
	$750,000,000 principal amount 8.000% Senior Notes due 2027

	Distribution:
	144A/Reg S with registration rights

	Ranking:
	Senior unsecured

	Coupon:
	8.000%

	Maturity:
	June 15, 2027

	Issue price:
	100.000% of principal amount

	Gross Proceeds to Issuer:
	$750,000,000

	Yield to Maturity:
	8.000%

	Spread to Benchmark Treasury:
	+575 bps

	Benchmark Treasury:
	2.375% UST due May 15, 2027

	Interest payment dates:
	June 15 and December 15 of each year, commencing December 15, 2017

	Record dates:
	June 1 and December 1

	Equity clawback
	Up to 35% at 108.000% prior to June 15, 2020

	Optional redemption:
	Make-whole call @ T+50 basis points at any time prior to June 15, 2022, plus accrued and unpaid interest to the redemption date, then:

	 
	On or after:
	Price:

	June 15, 2022
	104.000%

	June 15, 2023
	102.667%

	June 15, 2024
	101.333%

	June 15, 2025 and thereafter
	100.000%

	
		
	Joint Book-Running Managers:
	Citigroup Global Markets Inc.
Credit Agricole Securities (USA) Inc. 
J.P. Morgan Securities LLC

	Senior Co-Managers:
	Deutsche Bank Securities Inc.
Goldman Sachs & Co. LLC
Merrill Lynch, Pierce, Fenner & Smith
                     Incorporated
Morgan Stanley & Co. LLC
MUFG Securities Americas Inc.
Wells Fargo Securities, LLC

	Co-Managers:
	Barclays Capital Inc.
BNP Paribas Securities Corp.
DNB Markets, Inc.
Mizuho Securities USA LLC
Natixis Securities Americas LLC
Scotia Capital (USA) Inc.

	 
	If any of the initial purchasers or their affiliates have a lending relationship with us, then certain of those initial purchasers or their affiliates routinely hedge, certain other of those initial purchasers or their affiliates currently hedge and are likely to hedge in the future and certain other of those initial purchasers or their affiliates may hedge or otherwise reduce, their credit exposure to us consistent with their customary risk management policies. Typically, the initial purchasers and their affiliates would hedge such exposure by entering into transactions which consist of either the purchase of credit default swaps or the creation of short positions in our securities, including potentially the notes. Any such credit default swaps or short positions could adversely affect future trading prices of the notes offered hereby.

	Trade date:
	May 22, 2017

	Settlement date:
	June 6, 2017 (T+10)
We expect to deliver the notes against payment for the notes on the tenth business day following the pricing of the notes (“T+10”). Under Rule 15c6-1 of the Exchange Act, trades in the secondary market generally are required to settle in three business days, unless the parties to a trade expressly agree otherwise. Accordingly, purchasers who wish to trade notes on the date of pricing or the next six succeeding business days will be required, by virtue of the fact that the notes initially will settle in T+10, to specify alternative settlement arrangements to prevent a failed settlement.

	CUSIP:
	144A: 165167 CV7
Reg S: U16450 AV7

	ISIN:
	144A:  US165167CV76 
Reg S: USU16450AV72

	Denominations:
	$2,000 x $1,000

__________________

This material is confidential and is for your information only and is not intended to be used by anyone other than you. This information does not purport to be a complete description of these notes or the offering. Please refer to the Preliminary Offering Circular for a complete description.

This communication is being distributed in the United States solely to Qualified Institutional Buyers, as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States solely to Non-U.S. persons as defined under Regulation S.  The notes and the related guarantees have not been registered with the Securities and Exchange Commission under the Securities Act or any state or foreign securities laws. The notes and the related guarantees may not be offered or sold in the United States or to any U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make such offer or solicitation in such jurisdiction.

Any disclaimer or other notice that may appear below is not applicable to this communication and should be disregarded. Such disclaimer or notice was automatically generated as a result of this communication being sent by Bloomberg or another email system.

SCHEDULE D

Time of Sale Information in addition to Preliminary Offering Circular

Term Sheet dated May 22, 2017

EXHIBIT A
Form of Opinion of Baker Botts
1.      Each of the Covered Guarantors1 is validly existing and in good standing as a corporation, limited partnership or limited liability company, as applicable, in each jurisdiction set forth in an exhibit to such opinion, with corporate, limited partnership or limited liability company power and authority, as the case may be, to execute and deliver, and perform its obligations under, the Opinion Documents2 to which it is a party.
2.      Each Covered Guarantor has taken all requisite corporate, limited liability company or limited partnership, as applicable, action necessary to authorize the issuance and sale of the Guarantee to be issued by it and to execute and deliver each of the Opinion Documents to which it is a party and perform its obligations thereunder.
3.      Each of the Opinion Documents has been duly authorized by all requisite corporate, limited liability company or limited partnership, as applicable, action on behalf of each of the Covered Guarantors party thereto.
4.      Each of the Purchase Agreement and the Registration Rights Agreement has been duly executed and delivered by each of the Covered Guarantors. Assuming the due authorization, execution and delivery of the Registration Rights Agreement by the parties thereto other than the Covered Guarantors, the Registration Rights Agreement is a valid and binding agreement of the Company and each of the Guarantors, enforceable against the Company and each of the Guarantors in accordance with its terms.
5.      The Indenture and the Guarantees have been duly executed and delivered by each of the Covered Guarantors.  Assuming the due authorization, execution and delivery thereof by the parties thereto other than the Covered Guarantors, the Indenture is a valid and binding agreement of the Company and each of the Guarantors, enforceable against the Company and each of the Guarantors in accordance with its terms.
6.      When the Notes are duly executed by the Company and duly authenticated by the Trustee in accordance with the provisions of the Indenture (assuming the due authorization, execution and delivery of the Notes and the Indenture by the parties thereto other than the Covered Guarantors) and delivered to and paid for by the Purchasers in accordance with the terms of the Purchase Agreement, the Notes will constitute valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, and will be entitled to the benefits of the Indenture.
7.      When the Offered Securities (including the Guarantees) have been duly authenticated by the Trustee as provided in the Indenture (assuming the due authorization, execution and delivery of the Offered Securities and the Indenture by the parties thereto other than the Covered Guarantors) and delivered to and paid for by the Purchasers in accordance with the terms of the Purchase Agreement, the Guarantee of each Guarantor will constitute the valid and binding obligation of such Guarantor, enforceable against such Guarantor in accordance with its terms.
	
					
	 
	 
	 
	 
	 

1 Sparks Drive SWD, Inc. (Delaware), CHK Energy Holdings, Inc. (Texas), CHK Utica, L.L.C. (Delaware) and Empress Louisiana Properties, L.P. (Texas).
2 NTD: The Purchase Agreement, the Indenture (including the form of note) and the Registration Rights Agreement.

8.      When the Exchange Securities (including the Guarantees) have been duly authenticated by the Trustee as provided in the Indenture (assuming the due authorization, execution and delivery of the Exchange Securities and the Indenture by the parties thereto other than the Covered Guarantors) and delivered in exchange for the Offered Securities as contemplated by the Registration Rights Agreement, the Guarantee of each Guarantor will constitute the valid and binding obligation of such Guarantor, enforceable against such Guarantor in accordance with its terms.
9.      None of the execution and delivery by the Company and the Covered Guarantors of each of the Opinion Documents to which it is party, the consummation on the Closing Date by the Company and the Subsidiary Guarantors of the transactions contemplated by the Purchase Agreement and the Offering Documents, including the issuance and sale of the Offered Securities, or the issuance of the Exchange Securities by the Company and the Subsidiary Guarantors in exchange for the Offered Securities in accordance with the terms of the Registration Rights Agreement will (a) constitute or result in a breach or violation of any of the terms and provisions of, or constitute a default under, (i) the charter or bylaws (or similar organizational documents) of any of the Covered Guarantors or (ii) the Reviewed Agreements3 or (b) violate Applicable Law, except in the case of clause (b) as would not result in a Material Adverse Effect.  “Applicable Law” means the laws of the State of New York, the Delaware Limited Liability Company Act, the Delaware Revised Uniform Limited Partnership Act, the General Corporation Law of the State of Delaware, Texas law and the federal laws or regulations of the United States of America, in each case other than federal or state securities or blue sky laws or regulations, antifraud laws and rules and regulations of the Financial Industry Regulatory Authority, Inc.
10.      No consent, approval, authorization or order of, or filing with, any governmental agency or body or any court is required to be obtained or made by the Company under Applicable Law for (i) the due execution and delivery of the Purchase Agreement, (ii) the issuance or sale of the Offered Securities or (iii) the issuance of the Exchange Securities in exchange for the Offered Securities in accordance with the terms of the Registration Rights Agreement.
11.      The statements set forth in the Time of Sale Information and the Offering Circular under the caption “Description of Notes” and “Registration Rights,” insofar as such statements purport to constitute a summary of the Offered Securities, the Indenture and the Registration Rights Agreement, are accurate in all material respects.
12.      The statements set forth in the Time of Sale Information and the Offering Circular under the caption “Certain United States Federal Income Tax Considerations,” insofar as they purport to constitute a summary of United States federal income tax law and regulations or legal conclusions with respect thereto, are accurate in all material respects, subject to the assumptions and qualifications set forth therein.
13.      None of the Company or the Subsidiary Guarantors is, and, after giving effect to the offering and sale of the Offered Securities pursuant to the Purchase Agreement and the application of the net proceeds therefrom, will be, required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended.
14.      Assuming without independent investigation, (a) the accuracy of the representations and warranties of the Company and each Subsidiary Guarantor set forth in the Purchase Agreement and in those certain certificates delivered pursuant thereto on the date hereof; (b) the accuracy of the representations and warranties of the Purchasers set forth in the Purchase Agreement; (c) the due performance and compliance by the Company and the Purchasers of their respective covenants and agreements set forth in the Purchase Agreement; and (d) the Purchasers’ and the Company’s compliance with the Offering Circular and the transfer procedures and restrictions described therein, it is not necessary to register the issuance and sale of the Offered Securities by the Company to the Purchasers or the initial offer and resale of the Offered Securities by the Purchasers, in each case in the manner contemplated by the Purchase Agreement and the 
	
					
	 
	 
	 
	 
	 

3 The Company's principal debt documents.

Offering Circular, under the Securities Act of 1933, as amended, or to qualify the Indenture in respect thereof under the Trust Indenture Act of 1939, as amended, it being expressly understood that we express no opinion in this paragraph 14 as to any subsequent offer or resale of any of the Offered Securities.
Such counsel shall also include a statement substantially to the following effect:
We have reviewed the Time of Sale Information and the Offering Circular and have participated in conferences with officers and other representatives of the Company, with representatives of the Company’s independent registered public accounting firm and independent petroleum engineer or other expert, and with your representatives and your counsel, at which the contents of the Time of Sale Information, the Offering Circular and related matters were discussed.  The purpose of our professional engagement was not to establish or confirm factual matters set forth in the Time of Sale Information or the Offering Circular, and we have not undertaken to verify independently any of the factual matters in such documents.  Moreover, many of the determinations required to be made in the preparation of the Time of Sale Information and the Offering Circular involve matters of a non-legal nature.  Accordingly, we are not passing upon, and do not assume any responsibility for, the accuracy, completeness or fairness of the statements included in the Time of Sale Information and the Offering Circular (except to the extent stated in paragraphs 11 and 12 above).  Subject to the foregoing, and on the basis of the information we gained in the course of performing the services referred to above, we advise you that nothing came to our attention that caused us to believe that:
(A)    the Time of Sale Information, as of the Time of Sale, included an untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or
(B)    the Offering Circular, as of its date or as of the date hereof, included or includes an untrue statement of a material fact or omitted or omits to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading;
it being understood that in each case we have not been asked to, and do not, express any belief with respect to (a) the financial statements and schedules or other financial or accounting information included or incorporated by reference therein or omitted therefrom, (b) the summary reserve report of the independent petroleum engineer and reserve information included or incorporated by reference therein, (c) reserve information included or incorporated by reference therein or omitted therefrom or (d) representations and warranties and other statements of fact contained in the exhibits to documents.
The foregoing is subject to customary qualifications, assumption and exceptions. In giving such opinions, such counsel may rely, to the extent it deems proper, without independent investigation, upon the certificates, statements and other representations of officers and other representatives of the Company and the Covered Guarantors and of governmental and public officials with respect to the accuracy and completeness of the material factual matters contained therein or covered thereby.  In making its examination, such counsel may assume that all signatures on documents examined by it are genuine, all documents submitted to it as originals are authentic and complete, all documents submitted to us as certified or photostatic copies are true and correct copies of the originals of such documents and such original copies are authentic and complete.  Such opinions may be limited in all respects to the laws of the State of New York, the Delaware Limited Liability Company Act, the Delaware Revised Uniform Limited Partnership Act, the General Corporation Law of the State of Delaware, the laws of the State of Texas and the federal laws or regulations of the United States of America, each as in effect on the date hereof.
In giving the opinion expressed in paragraph 1 above as to the existence and good standing of CHK Energy Holdings, Inc. and Empress Louisiana Properties, L.P., such counsel may rely upon a 

certificate issued by the Office of the Secretary of State of the State of Texas and a statement of Franchise Tax Account Status, dated as of June 6, 20174, obtained through the website of the Office of the Comptroller of Public Accounts of Texas, which statement expressly states that, as of the date thereof, the right of CHK Energy Holdings, Inc. and Empress Louisiana Properties, L.P., to transact business in Texas is “active.” 
The opinions set forth in paragraphs 4, 5, 6, 7 and 8 above are subject to the qualification that the enforcement of the agreements and instruments referred to therein may be limited by (a) applicable bankruptcy, insolvency, fraudulent conveyance or transfer, reorganization, moratorium or similar laws of general applicability relating to or affecting creditors’ rights and remedies and to general principles of equity (whether considered in a proceeding in equity or at law) and comity and (b) public policy, applicable law relating to fiduciary duties and indemnification and contribution and an implied covenant of good faith and fair dealing. 
The opinion in paragraph 9(a)(ii) is limited in that such counsel need express no opinion with respect to any breach or violation of, or default under, any of the Reviewed Agreements (i) not readily ascertainable from the face of any such Reviewed Agreement, (ii) arising under or based on any cross-default provision insofar as it relates to a default under an agreement that is not a Reviewed Agreement or (iii) arising under or based on any covenant of a financial or numerical nature or requiring computation.
Capitalized terms used, but not defined, herein shall have the meanings ascribed to them by the Purchase Agreement of which this exhibit is a part.
	
					
	 
	 
	 
	 
	 

4 Date of closing.

EXHIBIT B
Form of Opinion of Derrick & Briggs L.L.P.
June 6, 2017

Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York 10013

Ladies and Gentlemen:
We serve as Oklahoma counsel to Chesapeake Energy Corporation, an Oklahoma corporation (“Issuer”), and the direct or indirect wholly-owned subsidiaries of the Issuer domiciled in Oklahoma, which are listed on the attached Exhibit A (the “Subsidiary Guarantors” and together with the Issuer, each, the “Company” and, collectively, the “Companies”).  The Companies and other direct or indirect wholly-owned subsidiaries of the Issuer have entered into a Purchase Agreement dated as of May 22, 2017 (the “Purchase Agreement”), with Citigroup Global Markets Inc., acting on behalf of itself and as the representative of the Purchasers, for the sale and delivery of an aggregate principal amount of up to $750,000,000 of the Issuer’s 8.000% Senior Notes due 2027 (the “Notes”).  We are providing this Opinion Letter to you under Section 5(d) of the Purchase Agreement.
We have set forth expressly the assumptions upon which we rely.  We are appending a glossary of terms that lists certain capitalized terms not otherwise defined in this Opinion Letter and their definitions.  Capitalized terms not otherwise defined in this Opinion Letter or the appended glossary are defined in the Purchase Agreement.  The law covered by the opinions expressed within this Opinion Letter is limited to the Law of the Opining Jurisdiction (Oklahoma) and the Law of the United States of America. 
For the following opinions, we investigated such questions of law and examined such information from officers and representatives of the Companies as we deemed necessary or appropriate for the purposes of this Opinion Letter.  We are relying upon factual representations made by the Companies in the Officer’s Certificates (defined below) and in Section 2 of the Purchase Agreement, and by Purchasers in Section 3(b) of the Purchase Agreement.
In addition, we examined the following documents: 
		
	(i)
	The Preliminary Offering Circular dated May 22, 2017;

		
	(ii)
	The Offering Circular dated May 22, 2017 (the “Final Offering Circular”);

		
	(iii)
	The Purchase Agreement;

		
	(iv)
	The Registration Rights Agreement (as defined in the Purchase Agreement);

		
	(v)
	The Indenture (as defined in the Purchase Agreement);

		
	(vi)
	The Notes (as defined in the Indenture);

Citigroup Global Markets Inc.
June 6, 2017

		
	(vii)
	Certificates of Good Standing, each dated June 6, 20175, issued by the Secretary of State of the State of Oklahoma with respect to each of the Companies (the “Good Standing Certificates”); and 

		
	(viii)
	A certificate of an officer, manager or general partner of each of the Companies, as applicable (the “Officer’s Certificates”), certifying to us (A) copies of the certificate of incorporation, articles of organization, or certificate of limited partnership, as applicable, and the bylaws, operating agreement, or limited partnership agreement, as applicable, of each Company (collectively, the “Constituent Documents”) and (B) resolutions of the governing body or person of such Company.

We refer to the Purchase Agreement, the Registration Rights Agreement, the Indenture and the Notes as the “Transaction Documents”.  “Offering Documents” has the meaning ascribed in the Purchase Agreement.  
Based on the foregoing and subject to the assumptions and qualifications set forth in this Opinion Letter, we opine that:
1.Each Company is an entity of the type specified for such Company on Exhibit A and exists in good standing in Oklahoma.
2.Each Company has the limited liability company, limited partnership, or corporate power and authority (a) to execute, deliver and perform its obligations under the Transaction Documents to which it is a party, (b) to issue and sell the Offered Securities as contemplated by the Offering Documents, and (c) to issue the Exchange Securities as contemplated in the Registration Rights Agreement.
3.Each Company has duly authorized the execution, delivery and performance of the Transaction Documents to which it is a party.  Each Company has duly authorized the issuance and sale of the Offered Securities and the Exchange Securities.  Each Company has duly executed and delivered each Transaction Document to which it is a party.
4.Each Company’s execution, delivery and performance of the Transaction Documents to which it is a party and the issuance and sale of the Offered Securities (a) will not violate any provisions of the Constituent Documents of such Company, (b) are not prohibited by applicable Laws of the Opining Jurisdiction and do not subject such Company to any fine, penalty or any other similar sanctions under the Laws of the Opining Jurisdiction, and (c) do not require any filing or registration by such Company with, or approval, consent or authorization of, any governmental authority under the Laws of the Opining Jurisdiction.
	
					
	 
	 
	 
	 
	 

5 NTD:  Will reference the bring down good standing certificate. Good standings to be brought down on date of closing.

Citigroup Global Markets Inc.
June 6, 2017

In addition to the assumptions described elsewhere in this Opinion Letter, the opinions set forth above are also subject to the following qualifications:
(a)All natural persons who are involved on behalf of the Companies have sufficient legal capacity to enter into and perform the transactions contemplated by the applicable Transaction Documents and to carry out their roles in the transactions.
(b)Each party other than the Companies has satisfied those legal requirements applicable to it that are necessary to make the Transaction Documents signed by it enforceable against it in accordance with its terms.
(c)Each party other than the Companies has complied with all legal requirements pertaining to its status as such status relates to its rights to enforce the applicable Transaction Documents against the Companies.
(d)Each document submitted to us for review is accurate and complete, each document that is an original is authentic, each document that is a copy conforms to an authentic original, and all signatures on each document are genuine.
(e)Our opinions in paragraph 1 concerning the existence and good standing of the Companies are based solely on the Good Standing Certificates. 
(f)We assume that each Company delivered the executed Transaction Documents to which it is a party to its counterparty or parties without condition and with the intention to be immediately bound by that Transaction Document.  We further assume that delivery was made physically or by electronic means and, if the latter, that the parties to the applicable the Transaction Document had agreed to delivery by electronic means. 
(g)There has been no mutual mistake of fact or misunderstanding, fraud, duress or undue influence with respect to, or affecting any of, the parties.
(h)The parties have dealt with one another in good faith and with fair dealing and conscionability.
(i)The Purchasers have acted in good faith and without notice of any defense against the enforceability of any rights created by the Notes.
(j)There are no agreements or understandings among the parties, written or oral, and there is no usage of trade or course of prior dealing among the parties that would, in either case, define, supplement or qualify the terms of the Transaction Documents.
(k)The constitutionality or validity of the relevant statute, rule, regulation or agency action is not in issue unless a reported decision in the Opining Jurisdiction has specifically addressed but not resolved, or has established, its unconstitutionality or invalidity.
(l)All parties will act in accordance with, and will refrain from taking any action that is forbidden by, the terms and conditions of the Transaction Documents.

Citigroup Global Markets Inc.
June 6, 2017

(m)None of the foregoing opinions include any implied opinion unless such implied opinion is both essential to the legal conclusion reached by the express opinions set forth above and based upon prevailing norms and expectations among experienced lawyers in the State, reasonable in the circumstances.  Unless explicitly addressed in this Opinion Letter, the foregoing opinions do not address any of the following legal issues, and we specifically express no opinion with respect to:
	
		
	(i)
	Federal securities laws and regulations administered by the Securities and Exchange Commission, state “blue sky” laws and regulations, and laws and regulations relating to commodity (and other) futures and indices and other similar instruments, except for our opinion in paragraph 4 concerning availability of an exemption from registration under the Oklahoma Securities Act for the issuance and sale of the Notes;

	(ii)
	Federal Reserve Board margin regulations;

	(iii)
	Federal Reserve Board margin regulations;

	(iv)
	Federal and state antitrust and unfair competition laws and regulations;

	(v)
	Federal and state laws and regulations concerning filing and notice requirements (e.g., Hart-Scott-Rodino and Exon-Florio), other than requirements applicable to charter-related documents such as a certificate of merger;

	(vi)
	Compliance with fiduciary duty requirements;

	(vii)
	Local Law;

	(viii)
	Fraudulent transfer and fraudulent conveyance laws;

	(ix)
	Federal and state environmental laws and regulations;

	(x)
	Federal and state land use and subdivision laws and regulations;

	(xi)
	Federal and state tax laws and regulations;

	(xii)
	Federal patent, copyright and trademark, state trademark, and other Federal and state intellectual property laws and regulations;

	(xiii)
	Federal and state racketeering, anti-bribery, anti-corruption laws, anti-money laundering and anti-terrorism laws and regulations;

	(xiv)
	Federal and state health and safety laws and regulations;

	(xv)
	Federal and state labor laws and regulations;

	(xvi)
	Federal, state or tribal gaming laws and regulations;

	(xvii)
	The Dodd Frank Wall Street Reform and Consumer Protection Act or its regulations; 

	(xviii)
	Federal and state laws, regulations and policies concerning (A) national and local emergency, (B) possible judicial deference to acts of sovereign states, and (C) criminal and civil forfeiture laws; 

Citigroup Global Markets Inc.
June 6, 2017

	
		
	(xix)
	Other Federal and state statutes of general application to the extent they provide for criminal prosecution (e.g., mail fraud and wire fraud statutes); and 

	(xx)
	Tribal government laws and regulations.

(o)We prepared this Opinion Letter based on customary practices for the preparation and interpretation of closing opinions of this type, with which we assume you are familiar.
(p)We assume no obligation to supplement this Opinion Letter if any applicable laws change after the date of this Opinion Letter, or if we become aware of any facts that might change the opinions expressed above after the date of this Opinion Letter.
This Opinion Letter is rendered for the sole benefit of the current Opinion Recipients, and no other person or entity is entitled to rely hereon, except for any successor and assigns of the Opinion Recipients, and any underwriter, placement agent or principal of and any rating agency rating any securities evidencing ownership interests in the Notes.  Copies of this Opinion Letter may not be made available, and this Opinion Letter may not be quoted or referred to in any other document made available, to any other person or entity, except to any governmental or other regulatory authority and any rating agency auditing, monitoring or evaluating investments of the Purchasers or compliance by the Purchasers with investment grading or evaluation and any accountant or attorney for any person or entity entitled to rely on this Opinion Letter or to whom or which this Opinion Letter may be disclosed under this paragraph, or as otherwise provided by law.
Very truly yours,
DERRICK & BRIGGS, LLP

GLOSSARY
As used in the Opinion Letter to which this Glossary is attached, except as otherwise defined in such Opinion Letter, the following terms (whether used in the singular or the plural) shall have the meanings indicated:
Law:  the statutes, the judicial and administrative decisions, and the rules and regulations of the governmental agencies of the Opining Jurisdiction, excluding its Local Law and the other laws and regulations excepted in paragraph (m).
Local Law:  the statutes and ordinances, the administrative decisions, and the rules and regulations of counties, towns, municipalities and special political subdivisions (whether created or enabled through legislative action at the Federal, state or regional level, such as water agencies, joint power districts, the Oklahoma Turnpike Authority, the Central Oklahoma Transit and Parking Authority), and judicial decisions to the extent that they deal with any of the foregoing.
Opining Jurisdiction:  Oklahoma. 
Opinion Letter:  the document setting forth the Opinion that is delivered to and accepted by the Opinion Recipient.
Opinion Recipient:  the addressee or addressees of the Opinion Letter.

EXHIBIT C

Restrictions on Offers and Sales Outside the United States

In connection with offers and sales of Offered Securities outside the United States: 

(a) Each Purchaser acknowledges that the Offered Securities have not been registered under the Securities Act and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in transactions not subject to, the registration requirements of the Securities Act.

(b) Each Purchaser, severally and not jointly, represents, warrants and agrees that:

(i) Such Purchaser has offered and sold the Offered Securities, and will offer and sell the Offered Securities, (A) as part of their distribution at any time and (B) otherwise until 40 days after the later of the commencement of the offering of the Offered Securities and the Closing Date, only in accordance with Regulation S or Rule 144A or any other available exemption from registration under the Securities Act.

(ii) None of such Purchaser or any of its affiliates or any other person acting on its or their behalf has engaged or will engage in any directed selling efforts with respect to the Offered Securities, and all such persons have complied and will comply with the offering restrictions requirement of Regulation S.

(iii) At or prior to the confirmation of sale of any Offered Securities sold in reliance on Regulation S, such Purchaser will have sent to each distributor, dealer or other person receiving a selling concession, fee or other remuneration that purchases Offered Securities from it during the distribution compliance period a confirmation or notice to substantially the following effect:

The Offered Securities covered hereby have not been registered under the Securities Act, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (i) as part of their distribution at any time or (ii) otherwise until 40 days after the later of the commencement of the offering of the Offered Securities and the date of original issuance of the Offered Securities, except in accordance with Regulation S or Rule 144A or any other available exemption from registration under the Securities Act.  Terms used above have the meanings given to them by Regulation S.

(iv) Such Purchaser has not and will not enter into any contractual arrangement with any distributor with respect to the distribution of the Offered Securities, except with its affiliates or with the prior written consent of the Company. Terms used in paragraph (a) and this paragraph (b) and not otherwise defined in this Agreement have the meanings given to them by Regulation S.

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