<SEC-DOCUMENT>0001193125-12-014747.txt : 20120118
<SEC-HEADER>0001193125-12-014747.hdr.sgml : 20120118
<ACCEPTANCE-DATETIME>20120118080407
ACCESSION NUMBER:		0001193125-12-014747
CONFORMED SUBMISSION TYPE:	424B3
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20120118
DATE AS OF CHANGE:		20120118

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHESAPEAKE UTILITIES CORP
		CENTRAL INDEX KEY:			0000019745
		STANDARD INDUSTRIAL CLASSIFICATION:	NATURAL GAS TRANSMISSION & DISTRIBUTION [4923]
		IRS NUMBER:				510064146
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-178678
		FILM NUMBER:		12530915

	BUSINESS ADDRESS:	
		STREET 1:		909 SILVER LAKE BLVD
		STREET 2:		PO BOX 615
		CITY:			DOVER
		STATE:			DE
		ZIP:			19903-0615
		BUSINESS PHONE:		3027346799

	MAIL ADDRESS:	
		STREET 1:		909 SILVER LAKE BLVD
		CITY:			DOVER
		STATE:			DE
		ZIP:			19904
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>d278265d424b3.htm
<DESCRIPTION>PROSPECTUS
<TEXT>
<HTML><HEAD>
<TITLE>Prospectus</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Filed Pursuant to Rule 424(b)(3) </B></FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Registration No. 333-178678 </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>PROSPECTUS </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center">


<IMG SRC="g278265g78g43.jpg" ALT="LOGO">
 </P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="4"><B>DIVIDEND REINVESTMENT AND DIRECT STOCK PURCHASE PLAN </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="5"><B>546,343 SHARES OF COMMON STOCK </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="3"><B>(PAR VALUE $0.4867 PER SHARE) </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center>
<P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">This Prospectus
relates to shares of common stock, par value $0.4867 per share (including the associated Rights) of Chesapeake Utilities Corporation, a Delaware corporation (&#147;Chesapeake&#148; or the &#147;Corporation&#148;), which may be offered and sold from
time to time pursuant to the terms of Chesapeake&#146;s Dividend Reinvestment and Direct Stock Purchase Plan (the &#147;Plan&#148;). Chesapeake common stock is traded on the New York Stock Exchange under the symbol &#147;CPK.&#148; </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The material provisions of the Plan are set forth in this Prospectus in a question and answer format. References hereinafter to
&#147;common stock&#148; are to Chesapeake common stock (including the associated Rights) and references to a &#147;stockholder&#148; are to individuals or entities that hold Chesapeake common stock. The term &#147;new investor&#148; refers to an
individual or entity who is not a stockholder of Chesapeake common stock immediately prior to becoming a participant in the Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">The Plan has two components: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">a Dividend Reinvestment component which permits Plan participants to elect to invest all or a portion of the dividends on their shares of Chesapeake
common stock, when paid, in additional shares of Chesapeake common stock. </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">a Direct Stock Purchase component which permits Plan participants, other registered stockholders and new investors to purchase shares of Chesapeake
common stock in a convenient manner without incurring brokerage commissions or transaction/processing fees. </FONT></P></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">In the event that shares of common stock are purchased under the Plan from Chesapeake, the proceeds will be used by Chesapeake for
general corporate purposes. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:6px;margin-bottom:0px; text-indent:5%"><FONT STYLE="font-family:Times New Roman" SIZE="3"><B>Investing in our securities involves a high degree of risk. See &#147; <U><A HREF="#424278265_3">Risk Factors</A> </U>&#148; beginning
on page 4 of this Prospectus for a discussion of information that should be considered in connection with an investment in our securities. </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2">NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center>
<P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>The date of this Prospectus is January&nbsp;18, 2012 </B></FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>You should rely only on the information contained in this Prospectus or to which we refer you. We have
not authorized anyone to provide you with information that is different. This document may only be used where it is legal to sell these securities. The information in this Prospectus may be accurate only on the date of this Prospectus.
</B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>TABLE OF CONTENTS </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE" ALIGN="center">


<TR>
<TD WIDTH="95%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD></TD>
<TD></TD>
<TD></TD></TR>
<TR>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom" COLSPAN="2" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="1">PAGE</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD></TR>


<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_1"><U>Forward-Looking Statements</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">3</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_2"><U>Prospectus Summary</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">3</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_3"><U>Risk Factors</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">4</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_4"><U>Use of Proceeds</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">4</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_5"><U>Determination of Offering Price</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">4</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_6"><U>Description of the Plan</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">4</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_7"><U>Fees Associated with the Plan</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">4</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_8"><U>Purpose</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">4</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_9"><U>Advantages</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">5</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_10"><U>Administration</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">5</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_11"><U>Eligibility and Enrollment</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">6</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_12"><U>Dividend Reinvestment Options</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">7</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_13"><U>Direct Deposit of Cash Dividends</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">8</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_14"><U>Optional Cash Investments Up To $100,000 Per Calendar Year</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">8</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_15"><U>Requests For Waiver For Optional Cash Investments In Excess of $100,000</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">9</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_16"><U>Methods of Payment</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">11</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_17"><U>Optional Cash Investments Through Payroll Deductions</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">12</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_18"><U>Purchases of Shares Under the Plan</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">13</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_19"><U>Reports and Other Communications To Participants</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">14</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_20"><U>Safekeeping of Certificates</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">14</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_21"><U>Certificates For Shares</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">14</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_22"><U>Sale of Shares</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">15</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_23"><U>Termination of Participation</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">15</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_24"><U>Other Information</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">16</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:3.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_25"><U>Federal Income Tax Consequences</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">17</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_26"><U>Description of Securities</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">18</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_27"><U>Legal Opinion</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">19</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_28"><U>Experts</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">19</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_29"><U>Where You Can Find More Information</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">19</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_30"><U>Incorporation of Certain Information by Reference</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">19</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
<TR BGCOLOR="#cceeff">
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2"><A HREF="#424278265_31"><U>Indemnification</U></A></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;</FONT></TD>
<TD VALIGN="bottom" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">20</FONT></TD>
<TD NOWRAP VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">&nbsp;&nbsp;</FONT></TD></TR>
</TABLE>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">2 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_1"></A>FORWARD-LOOKING STATEMENTS </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>This Prospectus and the documents incorporated by reference in this Prospectus contain forward-looking statements. These forward-looking statements
are based on our current expectations, estimates and projections about our industry, management&#146;s beliefs and certain assumptions made by us. Words such as &#147;anticipates,&#148; &#147;expects,&#148; &#147;intends,&#148; &#147;plans,&#148;
&#147;believes,&#148; &#147;seeks,&#148; &#147;estimates&#148; and variations of these words or similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to
certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results could differ materially from those expressed or forecasted in any forward-looking statements as a result of a variety of factors, including those
set forth in &#147;Risk Factors&#148; below and elsewhere in, or incorporated by reference into, this Prospectus. We undertake no obligation to update publicly any forward-looking statements for any reason, even if new information becomes available
or other events occur in the future. </I></FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_2"></A>PROSPECTUS SUMMARY </B></FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Company Overview </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px;padding-bottom:0px;"><FONT STYLE="font-family:Times New Roman" SIZE="2">Chesapeake is a diversified utility company engaged in various energy and other businesses. We were incorporated in the State of
Delaware in 1947. On October&nbsp;28, 2009, we completed a merger with Florida Public Utilities Company (&#147;FPU&#148;), pursuant to which FPU became a wholly-owned subsidiary of Chesapeake. We operate regulated energy businesses through our
natural gas distribution divisions in Delaware, Maryland and Florida, natural gas and electric distribution operations in Florida through FPU, and natural gas transmission operations on the Delmarva Peninsula and Florida through our subsidiaries,
Eastern Shore Natural Gas Company and Peninsula Pipeline Company, Inc., respectively. Our unregulated energy businesses include our natural gas marketing operation through Peninsula Energy Services Company, Inc.; propane distribution operations
through Sharp Energy, Inc. and its subsidiary Sharpgas, Inc. and FPU&#146;s propane distribution subsidiary, Flo-Gas Corporation; and our propane wholesale marketing operation through Xeron, Inc. We also have an advanced information services
subsidiary, BravePoint <FONT STYLE="font-family:Times New Roman" SIZE="1"><SUP STYLE="vertical-align:baseline; position:relative; bottom:.8ex">&reg;</SUP></FONT>, Inc. Our principal executive office is located at 909 Silver Lake Boulevard, Dover,
Delaware 19904, and our telephone number is 302.734.6799. Our website address is <U>www.chpk.com</U>. Unless expressly incorporated by reference, information contained on or made available through our website is not a part of this Prospectus or any
accompanying Prospectus supplement. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Overview of Offering </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">This Prospectus is part of a registration statement that we filed with the Securities and Exchange Commission (the &#147;SEC&#148;) relating to the offer and sale of up to 546,343 shares of our common
stock under our Dividend Reinvestment and Direct Stock Purchase Plan (the &#147;Plan&#148;). You should read this Prospectus together with additional information described under the headings, &#147;Where You Can Find More Information&#148; and
&#147;Incorporation of Certain Information by Reference.&#148; </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><U>Key features of the Plan include: </U></B></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dividends on both shares of Chesapeake common stock held through the Plan and shares registered in the name of a participant can be fully reinvested or
partially reinvested in additional shares of Chesapeake common stock. </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Plan participants may have cash dividends that are not reinvested, deposited directly into a designated account with a U.S. bank or other approved
financial institution. </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Plan participants and registered Chesapeake stockholders who are not Plan participants may purchase additional shares of Chesapeake common stock by
making optional cash investments through the Direct Stock Purchase component of the Plan in the minimum amount of $100 per investment, up to a maximum aggregate amount of $100,000 per calendar year. </FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">A new investor who does not own shares of Chesapeake common stock may purchase shares through the Direct Stock Purchase component of the Plan by making
an initial investment of at least $500, up to a maximum amount of $100,000. </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Plan participants, other registered stockholders and new investors may, at Chesapeake&#146;s sole discretion, make optional cash investments in excess
of the maximum annual limit of $100,000, if Chesapeake grants a &#147;Request for Waiver.&#148; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Plan participants may elect to have funds for optional cash investments automatically deducted on a one-time or a monthly basis from a designated
account with a U.S. bank or other approved financial institution. </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">A stockholder may deposit any or all of the certificates registered in the stockholder&#146;s name with the Plan Administrator for safekeeping.
</FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Employees of Chesapeake and its subsidiaries may participate in the Plan through payroll deductions. </FONT></P></TD></TR></TABLE>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Unless otherwise indicated or unless the context requires otherwise, all references in this Prospectus to &#147;we,&#148; &#147;us,&#148;
&#147;our,&#148; the &#147;Corporation,&#148; the &#147;Registrant&#148; or &#147;Chesapeake&#148; mean Chesapeake Utilities Corporation and all entities owned or controlled by Chesapeake Utilities Corporation. When we refer to our &#147;Certificate
of Incorporation,&#148; we mean Chesapeake Utilities Corporation&#146;s Restated Certificate of Incorporation, and when we refer to our &#147;Bylaws,&#148; we mean Chesapeake Utilities Corporation&#146;s Amended and Restated Bylaws. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">3 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_3"></A>RISK FACTORS </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Investing in our securities involves risks. You should carefully consider the risks described under &#147;Risk Factors&#148; in Item&nbsp;1A of our
Annual Report on Form 10-K for the year ended December&nbsp;31, 2010 and in the other documents incorporated by reference into this prospectus (which risk factors are incorporated by reference herein), as well as the other information contained or
incorporated by reference in this prospectus, or in any prospectus supplement hereto, before making a decision to invest in our securities. See &#147;Where You Can Find More Information,&#148; in the Table of Contents. </FONT></P>
<P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_4"></A>USE OF PROCEEDS </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">In the event that shares of common stock are purchased under the Plan, we will use the proceeds for general corporate purposes. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_5"></A>DETERMINATION OF OFFERING PRICE </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The purchase price per share of
common stock purchased from Chesapeake (other than purchases pursuant to Requests for Waiver as defined below in the section titled &#147;Description of the Plan&#148;) will be equal to 100% of the average of the high and low sales prices of the
common stock, based on the New York Stock Exchange Composite Transactions by 4:00 p.m. Eastern Time as reported on the investment date, but in no event will we sell shares of common stock under the Plan at less than the par value per share.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The price per share of our common stock purchased in the open market or in negotiated transactions will be the weighted average purchase
price of all shares of common stock purchased with funds to be invested as of the particular investment date. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_6">
</A>DESCRIPTION OF THE PLAN </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">To enroll in the Plan, a stockholder must complete and return to the Plan Administrator an Enrollment Form. A
new investor must complete and submit an Initial Enrollment Form. For further enrollment information, please refer to the Eligibility and Enrollment section of this Prospectus beginning with Question No.&nbsp;5 below or contact the Plan
Administrator. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_7"></A>Fees Associated With the Plan </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">The following is a list of the principal transactions and services provided to participants in the Plan and the associated fees. Participants are responsible only for those fees not paid by Chesapeake.
</FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE" ALIGN="center">


<TR>
<TD WIDTH="50%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="48%"></TD></TR>


<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Initial Investment</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">$10 Enrollment Fee</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dividend Reinvestment</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Paid by Chesapeake</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Direct Deposit of Dividends</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Paid by Chesapeake</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Optional Cash Investments</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Paid by Chesapeake</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Automatic Debiting for Optional Cash Investments</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Paid by Chesapeake</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Sale of Stock/Termination</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Convenience Fee of $0.15/share (Convenience Fees cover any applicable brokerage commissions the Plan Administrator is required to pay)</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Safekeeping</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Paid by Chesapeake</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Book Transfers</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Paid by Chesapeake</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Request for Certificate</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Paid by Chesapeake</FONT></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT STYLE="font-family:Times New Roman" SIZE="2">Returned Check or Failed Electronic Payment</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">$25 per occurrence</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The following is a statement in question and answer format of the provisions of the Plan as approved by our Board of
Directors and as currently in effect. The Plan first became effective on April&nbsp;27, 1989, and has been amended from time to time thereafter through the date of this Prospectus. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_8"></A>Purpose </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>1. What is the purpose of the Plan? </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The purpose of the Dividend Reinvestment component of the Plan is to provide Chesapeake stockholders with a convenient and economical method of
reinvesting cash dividends in additional shares of common stock. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">4 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The purpose of the Direct Stock Purchase component of the Plan is to provide Plan participants and
registered stockholders who are not participants in the Plan with a convenient and economical method of purchasing additional shares of common stock without payment of brokerage commissions or transaction/processing fees. A new investor may become a
stockholder by making an initial minimum investment of $500. The waiver provision of the Direct Stock Purchase component of the Plan enables Plan participants to make optional cash investments in excess of the maximum annual limit of $100,000 if
Chesapeake grants a &#147;Request for Waiver.&#148; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Plan also provides a stockholder with the opportunity to deposit with the Plan
Administrator for safekeeping, certificates for shares of Chesapeake common stock registered in the stockholder&#146;s name. Chesapeake may direct the Plan Administrator to purchase shares either in the open market or from Chesapeake to satisfy the
requirements of the Plan. Shares purchased from Chesapeake will provide Chesapeake with funds, which it intends to use for general corporate purposes. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_9"></A>Advantages </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>2. What are some of the advantages of the Plan?
</B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Participants have flexibility to reinvest all, a portion or none of their dividends in additional shares of Chesapeake common stock.
</FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Participants may direct that cash dividends that are not reinvested be deposited into a designated account with a U.S. bank or other approved financial
institution. </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">No fees or commissions are charged to the participant on purchases of Chesapeake common stock. </FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Participants and registered stockholders who are not participants in the Plan can purchase additional shares of Chesapeake common stock by making
optional cash investments in the minimum amount of $100 per investment, up to a maximum aggregate amount of $100,000 per calendar year. </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Investors who currently do not own shares of Chesapeake common stock can become Plan participants by making an initial investment of at least $500, up
to a maximum amount of $100,000. </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Payments for the purchase of shares can be made by check or through the automatic debiting of a designated account with a U.S. bank or other approved
financial institution. </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Participants may deposit Chesapeake common stock certificates registered in their name with the Plan Administrator for safekeeping.
</FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Plan shares can be transferred or given as gifts at no charge to the participant. </FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Plan shares can be sold through the Plan Administrator. </FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">Employees of Chesapeake and its subsidiaries may participate in the Plan through payroll deductions. </FONT></P></TD></TR></TABLE>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_10"></A>Administration </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>3. Who administers the Plan? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Plan is
administered by Computershare Trust Company, N.A., (the &#147;Plan Administrator&#148; or &#147;Computershare&#148;), a federally chartered trust company (formerly known as EquiServe Trust Company). The Plan Administrator&#146;s responsibilities
include effecting Chesapeake common stock purchases on behalf of the Plan, maintaining participants&#146; accounts, keeping the necessary records, sending statements of account to participants and performing other administrative duties relating to
the operation of the Plan. The Plan Administrator&#146;s contact information is shown below. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">All questions concerning participation in the
Plan or with regard to a participant&#146;s account under the Plan should be directed to the Plan Administrator. The Plan Administrator may be contacted in writing, by telephone or via the Internet as indicated below. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The following address for the Plan Administrator should be used for Plan-related correspondence including, but not limited to, inquiries concerning
dividend reinvestment and optional cash investments, assistance with becoming a stockholder through the Direct Stock Purchase component of the Plan, the delivery of stock certificates for the safekeeping of shares and the submission of enrollment
forms (except, as more fully described below, where the Enrollment Form is accompanied by a check). <B>Please note that cash, third party checks, traveler&#146;s checks and money orders will not be accepted.</B> </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Computershare Trust Company, N.A. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">c/o Chesapeake Utilities Corporation </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">P.O. Box 43078 </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Providence, RI 02940-3078 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Telephone: 877.498.8865 (U.S. and Canada) </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">781.575.2879 (outside of the U.S. and
Canada) </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Internet: <U>www.computershare.com/investor</U> </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">5 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">In the case of registered stockholders who are not Plan participants, the Enrollment Form should be sent to
the address headed <B>Optional Cash Investments</B> below. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">All checks representing initial cash investments of new investors, along with the
Initial Enrollment Form, should be sent to the address headed <B>Initial Investments</B> below. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="75%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE" ALIGN="center">


<TR>
<TD WIDTH="51%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="48%"></TD></TR>


<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Optional Cash Investments</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Initial Investments</B></FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Computershare Trust Company, N.A.</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Computershare Trust Company, N.A.</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">c/o Chesapeake Utilities Corporation</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">c/o Chesapeake Utilities Corporation</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">P.O. Box 6006</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">P.O. Box 43078</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Carol Stream, IL 60197-6006</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Providence, RI 02940-3078</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Checks for both optional cash investments and new investments should be made payable to: &#147;<B>Computershare &#150;
Chesapeake Utilities Corporation</B>.&#148; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">For information relating to payment, please refer to the Methods of Payment section in this
prospectus beginning with Question No.&nbsp;19. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">All shares of Chesapeake common stock purchased under the Plan or deposited for safekeeping
will be registered in the name of the Plan Administrator or its nominee as the agent for the Plan participants. As record holder of shares held for participants&#146; accounts, the Plan Administrator will receive and reinvest for the account of a
Plan participant dividends both on shares held for the participant by the Plan and on shares held by the participant in certificate form that the participant does not elect to receive in cash. The Plan Administrator will hold all shares of common
stock purchased for each participant or deposited for safekeeping under the Plan until directed otherwise by a notice received from the participant. The Plan Administrator also acts as dividend disbursing agent, transfer agent and registrar for
Chesapeake. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>4. What are the limitations on the responsibilities of Chesapeake and the Plan Administrator under the Plan? </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Neither Chesapeake nor the Plan Administrator will be liable for any good faith act or for any good faith omission to act in connection with the
administration of the Plan, including, without limitation, with respect to the prices or times at which shares of common stock are purchased or sold under the Plan or any claim or liability arising out of failure to cease reinvestment of dividends
for a participant&#146;s account upon the participant&#146;s death prior to receipt of written notice of death from the appropriate fiduciary. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">A participant should recognize that neither Chesapeake nor the Plan Administrator can assure the participant of a profit or protect the participant
against a loss from an investment in shares of Chesapeake common stock purchased under the Plan. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_11"></A>Eligibility
and Enrollment </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>5. Who is eligible to participate in the Plan? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Any person or entity, whether or not a stockholder, is eligible to participate in the Plan. A registered Chesapeake stockholder or a person or entity that is not a Chesapeake stockholder can become a
participant in the Plan by completing the appropriate Enrollment Form. A person or entity who is the beneficial owner of Chesapeake common stock through an account with a broker, bank or other nominee must make appropriate arrangements with the
broker, bank or other nominee to become a participant in the Plan (including the payment of any associated fees that may be charged by the broker, bank or other nominee), or the beneficial owner must become a registered stockholder by having the
shares transferred into the beneficial owner&#146;s name. To have shares registered in his or her name, a beneficial owner must request the issuance of a certificate for the shares from the broker, bank or other nominee. Alternatively, a beneficial
owner may become a participant in the Plan by purchasing additional shares of Chesapeake common stock in accordance with the instructions set forth below for new investors. See Question No.&nbsp;7. A new investor residing outside of the United
States, or its territories and possessions, should determine whether he or she is subject to any governmental regulation that prohibits participation in the Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Chesapeake reserves the right to restrict the participation in the Plan of any participant who, in Chesapeake&#146;s opinion, is misusing the Plan or is causing undue expense to Chesapeake. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>6. How does a registered stockholder become a participant in the Plan? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">A registered stockholder may become a participant in the Plan at any time by completing an Enrollment Form and returning it to the Plan Administrator at the address indicated in Question No.&nbsp;3. Where
the stock to be enrolled in the Plan is registered in more than one name (i.e., joint tenants, etc.), all registered stockholders must sign the Enrollment Form. An Enrollment Form may be obtained at any time by contacting the Plan Administrator. A
registered stockholder also may become a participant in the Plan by accessing the Plan Administrator&#146;s website, authenticating his or her online account and completing an online Enrollment Form. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">6 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><I>Prospective Plan participants are urged to read this Prospectus in its entirety before deciding to
enroll in the Plan. </I></B></FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>7. How does a new investor become a participant in the Plan? </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">An investor who is not a stockholder may become a participant in the Plan at any time by completing an Initial Enrollment Form, returning it to the Plan
Administrator and making an initial investment of at least $500, up to a maximum amount of $100,000. New investors also can make optional cash investments in excess of the $100,000 maximum if Chesapeake initiates a Request for Waiver. See Question
No.&nbsp;18. Any amounts of less than $500 tendered for an initial investment will be returned to the investor. Payments for an initial investment can be made either by check or by authorizing the debit of a designated account with a U.S. bank or
other approved financial institution as more fully described in Question No.&nbsp;19. <B>Cash, traveler&#146;s checks, money orders and third-party checks will not be accepted.</B> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">The Initial Enrollment Form may be obtained at any time by contacting the Plan Administrator. A new investor also can become a participant in the Plan by enrolling online at
<U>www.computershare.com/investor</U> and following the instructions provided. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><I>Prospective Plan participants are urged to read this
Prospectus in its entirety before making an investment decision to purchase shares of Chesapeake common stock. </I></B></FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>8. What are the
fees associated with an initial investment by a new investor? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">A new investor will be charged a one-time $10 enrollment fee to establish a
Plan account. The $10 fee will be subtracted from the payment delivered for the purchase of shares (i.e., a new investor is required to send an initial minimum investment of $500, from which the $10 fee will be subtracted, leaving $490 to be
invested). </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>9. When does participation in the Plan by a registered stockholder or new investor become effective? </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">A registered stockholder or new investor can, at any time, submit the required Enrollment Form to become a participant in the Plan. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">In the case of the enrollment in the Plan of shares owned by a registered stockholder, participation in the Plan will commence upon delivery to the Plan
Administrator of the required Enrollment Form. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">In the case of the enrollment in the Plan by a new investor, participation in the Plan will
commence upon delivery to the Plan Administrator of the required Enrollment Form and the initial cash investment amount followed by the subsequent purchase by the Plan Administrator of the shares of Chesapeake common stock for the participant&#146;s
account. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">When participation in the Plan commences on or prior to any cash dividend record date, the dividends paid on the enrolled shares on
the corresponding dividend payment date will be reinvested in accordance with the participant&#146;s instructions. If participation commences after a cash dividend record date, the reinvestment of dividends, in accordance with the option selected by
the participant, will commence with the next following dividend payment. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_12"></A>Dividend Reinvestment Options
</B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>10. What dividend reinvestment options are available to participants in the Plan? </B></FONT></P>
<P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" STYLE="BORDER-COLLAPSE:COLLAPSE" ALIGN="center">


<TR>
<TD WIDTH="32%"></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="66%"></TD></TR>


<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Full Dividend Reinvestment</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Directs the Plan Administrator to reinvest automatically, in accordance with the terms of the Plan, dividends on (i)&nbsp;all shares of common stock registered in the
participant&#146;s name and (ii)&nbsp;all shares of common stock credited to the participant&#146;s account under the Plan.</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Partial Dividend Reinvestment</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Directs the Plan Administrator to distribute to the Plan participant in cash the dividends on that portion of the participant&#146;s shares (including both (i) shares of common
stock registered in the participant&#146;s name and (ii)&nbsp;shares of common stock credited to the participant&#146;s account under the Plan) designated by the participant, and to reinvest automatically, in accordance with the terms of the Plan,
dividends on the remainder of the participant&#146;s shares.</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>All Cash (no dividend reinvestment)</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT STYLE="font-family:Times New Roman" SIZE="2">Directs the Plan Administrator to distribute to the participant in cash the dividends on all of the participant&#146;s shares whether registered in the participant&#146;s name or
credited to the participant&#146;s account under the Plan.</FONT></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Regardless of the dividend reinvestment option selected, any dividends that a participant elects to receive in cash will
be paid to the participant by check or, if the participant so elects, the dividend may be deposited directly into an account designated by the participant with a U.S. bank or other approved financial institution. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">7 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Under each of the three dividend reinvestment options, a Plan participant may elect to make optional cash
investments at any time or to deposit shares with the Plan Administrator for safekeeping. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>11. Can a participant change his or her dividend
reinvestment option? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Yes. A participant at any time may change his or her dividend reinvestment election to any of the other dividend
reinvestment options by accessing his or her account online at the Plan Administrator&#146;s website, by contacting the Plan Administrator or by completing a new Enrollment Form and returning it to the Plan Administrator. Any change received by the
Plan Administrator on or prior to the record date for a dividend payment will become effective for that dividend payment. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>12. When will
the dividend reinvestment purchases be made? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The investment date for the reinvestment of cash dividends is the dividend payment date. If a
dividend payment date falls on a weekend, holiday or another day on which the New York Stock Exchange is closed, the investment date will be the next trading day. Shares of common stock acquired from Chesapeake will be purchased on the investment
date and will be credited to participants&#146; accounts on that day or as soon as practicable thereafter. The purchase of shares acquired in the open market or in negotiated transactions will begin on the investment date and will be completed as
soon as practicable and will be credited to participants&#146; accounts upon the completion of all purchases. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_13"></A>Direct Deposit of Cash Dividends </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>13.&nbsp;May a participant have cash dividends deposited directly into a designated U.S. bank account? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Yes. Direct deposit of dividends is available to any Plan participant who is receiving cash dividends on all or a portion of his or her shares of Chesapeake common stock, whether registered in the
participant&#146;s name or credited to the participant&#146;s account under the Plan. A Plan participant may elect to have all cash dividends paid by electronic transfer of funds to a designated account with a U.S. bank or other approved financial
institution by sending a completed Authorization for Electronic Direct Deposit Form to the Plan Administrator. This form is available by contacting the Plan Administrator. A stockholder may change the designated account or discontinue receiving
direct deposit of dividends at any time by contacting the Plan Administrator. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_14"></A>Optional Cash Investments up to
$100,000 Per Calendar Year </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>14. How does the optional cash investment feature work for investments up to $100,000 per year?
</B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Both Plan participants and registered stockholders of Chesapeake who are not Plan participants are permitted to purchase additional shares
of Chesapeake common stock through optional cash investments. Each optional cash investment must be a minimum of $100 and, in the aggregate, cannot exceed $100,000 in any calendar year. Funds tendered that are less than the minimum investment amount
or in excess of the maximum annual amount will be returned to the investor. There is no obligation to make an optional cash investment nor is there a requirement that the same amount be invested each time an optional cash investment is made.
Payments for optional cash investments can be made by check or by online authorization of a one-time debit or automatic monthly debits from a designated account with a U.S. bank or other approved financial institution as more fully described in
Question No.&nbsp;19. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">A registered stockholder who is not a Plan participant at the time of an optional cash investment, as a condition to
the investment, must enroll in the Plan by completing an Enrollment Form and returning it to the Plan Administrator at the address indicated in Question No.&nbsp;3. An Enrollment Form may be obtained by contacting the Plan Administrator. A
stockholder also may enroll in the Plan online by accessing the Plan Administrator&#146;s website, authenticating his or her online account and completing an online Enrollment Form. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">All shares of common stock purchased with optional cash investments will be credited to a participant&#146;s account under the Plan (or in the case of a registered stockholder who prior to the purchase
was not a Plan participant, shares will be credited to a newly-established account under the Plan). Thereafter, all dividends on such shares will either be reinvested or paid to the participant in cash, depending on the participant&#146;s dividend
reinvestment election. See Question No.&nbsp;10. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>15. When will optional cash investment purchases be made? </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The investment date for optional cash investments (other than purchases pursuant to Requests for Waiver as described below) is the fifth day of each
month, except months in which the fifth day falls on a weekend, holiday or another day when the New York Stock Exchange is closed, in which case the investment date will be the next trading day. Funds for optional cash investments received by the
Plan Administrator on or before the second business day prior to an investment date will be used to purchase shares of common stock on or beginning on the investment date. Funds for optional cash investments received later than the second business
day prior to an investment date will be held by the Plan Administrator until the next monthly investment date, unless a request for the return of the funds is received by the Plan Administrator at least two business days prior to the next monthly
investment date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Shares of common stock acquired from Chesapeake will be purchased on the investment date and will be credited to
participants&#146; accounts on that date or as soon as practicable thereafter. The purchase of shares acquired in the open market or in negotiated transactions will begin on the investment date and will be completed as soon as practicable and will
be credited to participants&#146; accounts upon the completion of all purchases. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">8 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>16. Is interest paid on funds tendered for optional cash investments that are received prior to an
investment date? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">No. Under no circumstances will interest be paid on funds for optional cash investments tendered at any time prior to the
investment date. Participants are therefore urged to time the transmittal of funds for optional cash investments so that they are received by the Plan Administrator as close as possible to, but no later than two business days in advance of, an
investment date. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>17. Under what circumstances may a participant rescind an optional cash investment request? </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Funds for optional cash investments (including payroll deductions) received by the Plan Administrator will be returned to the participant upon request if
received by the Plan Administrator at least two business days prior to the next monthly investment date. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_15"></A>Requests for Waiver for Optional Cash Investments in Excess of $100,000 </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>18. Under what circumstances may stockholders and new investors make cash investments in excess of $100,000 per calendar year? </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Optional cash investments in Chesapeake common stock in excess of $100,000, including initial investments in excess of $100,000, may be made by current
stockholders (including Plan participants) and new investors only if a waiver of the $100,000 limit is granted by Chesapeake. Chesapeake, in its sole discretion, may elect, from time to time or on a periodic schedule as determined by Chesapeake, to
initiate the procedures by which stockholders and new investors can request a waiver of the $100,000 limit (a &#147;Request for Waiver&#148;). All shares purchased pursuant to a Request for Waiver will be sold by Chesapeake. Chesapeake has
established the following procedures governing Requests for Waiver. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Submitting a Request for Waiver </I></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">On the first business day of each month, Chesapeake will post a prerecorded telephone message (telephone number: 302.734.6019) either (i)&nbsp;announcing
that Chesapeake is or is not receiving Requests for Waiver for that month or (ii)&nbsp;providing a specified date for prospective investors to call back for an announcement of whether Chesapeake will be accepting Requests for Waiver for that month.
If in the initial or a subsequent announcement Chesapeake indicates that it is receiving Requests for Waiver for that month, the announcement will specify (in each case as more fully described below): </FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">the commencement date of the pricing period and the number of trading days in the pricing period or the date on which Chesapeake will announce the
commencement date and number of trading days in the pricing period; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">the threshold price, if Chesapeake determines that the proposed sale of shares will be subject to a threshold price, or the date on which Chesapeake
will announce whether the proposed sale of shares will be subject to a threshold price; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">whether the offering will include the pricing period extension feature, or the date on which Chesapeake will announce whether the offering will include
the pricing period extension feature; and </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">whether shares are being offered at a discount to the market price and, if so, what percentage, or the date on which Chesapeake will announce whether
shares are being offered at a discount to the market price and, if so, what percentage. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">All announcements by Chesapeake
regarding Requests for Waiver will be made by a prerecorded telephone message (telephone number: 302.734.6019) that is posted no later than 9:00 a.m. Eastern Time on the day in question. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">A stockholder or new investor wishing to purchase common stock on the terms specified by Chesapeake must complete and submit a Request for Waiver form to Chesapeake indicating the dollar amount proposed
to be invested. All Requests for Waiver must be received by Chesapeake via facsimile at 302.734.6750 no later than 2:00 p.m. Eastern Time on the third business day prior to the commencement of the pricing period. A Request for Waiver form may be
obtained by contacting the Plan Administrator. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Chesapeake will decide whether to accept any or all of the Requests for Waiver received, and
will notify any investors whose Requests for Waiver have been accepted, by 9:00 a.m. Eastern Time on the second business day prior to the commencement of the pricing period. Requests for Waiver may be accepted by Chesapeake in whole or in part, in
its sole discretion. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Plan Administrator must receive the funds for the purchase of shares pursuant to an accepted Request for Waiver by
wire transfer no later than 2:00 p.m. Eastern Time on the business day prior to the commencement of the pricing period. Wire transfer instructions may be obtained by contacting the Plan Administrator. Once funds are received by the Plan
Administrator for the purchase of shares pursuant to a Request for Waiver, the obligation of a stockholder or new investor to purchase the shares becomes legally binding, and the funds will only be returned as directed by Chesapeake. If sufficient
funds to cover the full amount of an accepted Request for Waiver are not received by the 2:00 p.m. Eastern Time deadline, Chesapeake may, in its sole discretion, elect either to revoke its acceptance of the Request for Waiver or to deem the Request
for Waiver accepted as to the lesser amount of funds. Any funds received in respect of a revoked Request for Waiver will be returned without interest. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">9 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">If Requests for Waiver are submitted for a total amount greater than the amount Chesapeake is willing to
accept for any investment date, Chesapeake may honor the requests received on any basis that Chesapeake, in its sole discretion, considers appropriate. Chesapeake has sole and absolute discretion to accept or reject any or all Requests for Waiver
and has no obligation to disclose the reasons for its decision. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Aside from posting recorded telephone messages, neither Chesapeake nor the
Plan Administrator is required to provide written or other notice of the decision of Chesapeake to receive the submission of Requests for Waiver or the terms on which shares of common stock are being offered. However, Chesapeake may, if it so
elects, provide such further or alternative notices of a decision to receive Requests for Waiver as it determines to be appropriate. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Without
limitation on its right to accept or reject Requests for Waiver in its sole discretion, Chesapeake reserves the right to terminate any account or deny any Request for Waiver if Chesapeake believes a purchaser is making excessive optional cash
investments through multiple stockholder accounts, is engaging in arbitrage activities or is otherwise engaging in activities under the Plan in a manner which is not in the best interest of Chesapeake or which may cause the participant to be treated
as an underwriter under the Federal securities laws. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Pricing Period </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Chesapeake will specify in the prerecorded message announcing whether it is receiving Requests for Waiver for a particular month or in a subsequent prerecorded message for that month the number of
consecutive trading days (generally between five and ten days) over which the purchase price of Chesapeake common stock pursuant to accepted Requests for Waiver will be calculated (the &#147;pricing period&#148;). The purchase price of shares will
be calculated based upon the unsolicited volume weighted average price, rounded to three decimal places, of Chesapeake common stock obtained from Bloomberg, LP for the trading hours from 9:30 a.m. to 4:00 p.m. Eastern Time (the &#147;trading
price&#148;) for each trading day during the designated pricing period, calculated pro-rata on a daily basis. For example, assume Chesapeake has established a ten-day pricing period and has granted a Request for Waiver for an investment of $100,000.
To calculate the number of shares of common stock to be purchased, a hypothetical number of shares will be deemed purchased on each day of the pricing period, which will be determined by dividing a pro rata portion of the entire optional cash
investment amount, in this case $10,000 (1/10 of the entire investment amount), by the trading price on that day. On the last day of the pricing period, the entire optional cash investment amount of $100,000 will be divided by the total number of
hypothetical shares deemed purchased over the ten-day pricing period to establish the purchase price (rounded to three decimal places) for the $100,000 investment. That purchase price will then be reduced by the amount of the waiver discount (as
described below), if any. The actual number of shares purchased from Chesapeake will be calculated by dividing the total investment amount, $100,000, by the purchase price (or discounted purchase price, if applicable). </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The investment date for the purchase of shares of Chesapeake common stock pursuant to a Request for Waiver will be the last day of the pricing period
(or, if applicable, the extended pricing period, as described below). On the investment date, the Plan Administrator will apply all funds submitted pursuant to accepted Requests for Waiver (or a lesser amount if, as more fully described below, a
threshold price is established, but not satisfied on one or more days during the pricing period) to the purchase of shares of Chesapeake common stock from Chesapeake. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><I>Threshold Price </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Chesapeake may, in its sole discretion, establish for any pricing period,
a &#147;threshold price&#148; applicable to optional cash investments made pursuant to Requests for Waiver. The threshold price will be the minimum price used for the determination of the purchase price of Chesapeake common stock pursuant to
Requests for Waiver during the pricing period. The establishment of a threshold price will be announced either in the prerecorded message announcing the receipt of Requests for Waiver for a particular month or in a subsequent prerecorded message
(posted no later than three business days prior to the first day of the pricing period) for that month. Chesapeake will establish the threshold price in its sole discretion, based on any factors that it considers relevant. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">If a threshold price is established for any pricing period, the unsolicited volume weighted average price obtained from Bloomberg, LP (rounded to three
decimal places), for the trading hours from 9:30 a.m. to 4:00 p.m. Eastern Time, must equal or exceed the threshold price in order to be taken into account in establishing the purchase price of the shares of Chesapeake common stock pursuant to
accepted Requests for Waiver. In the event the threshold price is not satisfied for one or more trading days in the pricing period or there are no trades of Chesapeake common stock reported by the New York Stock Exchange for one or more trading days
in the pricing period (and assuming Chesapeake has not announced the activation of the optional pricing period extension feature, as described below), then (i)&nbsp;those trading days will be excluded from the pricing period and (ii)&nbsp;the amount
to be invested pursuant to each accepted Request for Waiver will be reduced in proportion to the number of days in the pricing period on which the threshold price was not satisfied or there were no trades in Chesapeake common stock reported by the
New York Stock Exchange. For example, assume Chesapeake has established a ten-day pricing period and has granted a Request for Waiver for an investment of $100,000. Further, assume that Chesapeake has established a threshold price of $24, which is
satisfied on eight of the ten days in the pricing period. As a consequence, the pricing period will be reduced to eight days and the amount permitted to be invested pursuant to the Request for Waiver will be reduced to $80,000. To calculate the
number of shares of Chesapeake common stock to be purchased, a hypothetical number of shares will be deemed purchased on each day of the eight days in the pricing period, which will be determined by dividing a pro rata portion of the permitted
optional cash investment, in this case $10,000 (1/8 of the permitted investment amount) by the trading price on that day. On the last day of the pricing period, the permitted optional cash investment amount of $80,000 will be divided by the total
number of hypothetical shares deemed purchased over the eight-day pricing period to establish the purchase price (rounded to three decimal places) for the $80,000 investment. That purchase price will then be reduced by the amount of the waiver
discount (as described below), if any. The actual number of shares purchased from Chesapeake will be calculated by dividing the permitted investment amount, $80,000, by the purchase price (or discounted purchase price, if applicable). </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">10 </FONT></P>



<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The portion of the funds tendered that are not used to purchase shares of Chesapeake common stock will be
returned, without interest, to the stockholder or new investor as soon as reasonably practicable after the end of the pricing period. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Optional Pricing Period Extension Feature </I></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Chesapeake may elect in connection with purchases pursuant to Requests for Waiver during any pricing period whether to activate the optional pricing
extension feature. Chesapeake will announce whether it has elected to activate this feature in the prerecorded message announcing whether it is receiving Requests for Waiver for a particular month or in a subsequent prerecorded message (posted no
later than three business days prior to the first day of the pricing period) for that month. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">If activated, the optional pricing period
extension feature provides for an extension of the initial pricing period by the number of days (up to a maximum of five days) during the initial pricing period on which the threshold price is not met or there are no reported trades of Chesapeake
common stock on the New York Stock Exchange. If the threshold price is satisfied on any day during the extended pricing period, that day will be included as a trading day for the pricing period in lieu of the day on which the threshold price was not
met or there were no reported trades. For example, if the pricing period is to be ten trading days, and the threshold price is not satisfied for three out of those ten days, and Chesapeake had previously announced that the optional pricing period
extension feature has been activated, then the pricing period will automatically be extended for an additional three trading days, and if the threshold price is satisfied on two of the next three trading days, then those two trading days will be
included in the pricing period in lieu of two of the three days on which the threshold price was not met or there are no reported trades of Chesapeake common stock on the New York Stock Exchange. As a result, the purchase price will be based upon
the nine trading days of the initial and extended pricing period on which the threshold price was satisfied and 90% of the funds for optional cash investments pursuant to Requests for Waiver will be invested (as opposed to a pricing period of seven
days had the optional pricing period extension feature not been activated, which would have resulted in 30% of the amount tendered for investment pursuant to Requests for Waiver being returned to the stockholder or new investor). </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Any portion of the funds tendered that are not used to purchase shares of Chesapeake common stock will be returned, without interest, to the stockholder
or new investor as soon as reasonably practicable after the end of the extended pricing period. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Waiver Discount </I></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Chesapeake may elect, in its sole discretion, in connection with purchases pursuant to Requests for Waiver during any pricing period whether to establish
a &#147;waiver discount&#148; of up to 2% of the purchase price that otherwise would apply. Chesapeake will announce this decision in the prerecorded message announcing whether it is accepting Requests for Waiver for a particular month or at a
subsequent prerecorded message (posted no later than three business days prior to the first day of the pricing period) for that month. The waiver discount may vary from month to month, but will apply uniformly to all optional cash investments made
pursuant to Requests for Waiver with respect to a particular month. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Chesapeake will determine, in its sole discretion, whether to establish a
waiver discount after a review of current market conditions and Chesapeake&#146;s current and projected capital needs and any other factors that Chesapeake considers relevant. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_16"></A>Methods of Payment </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>19. What payment methods are accepted by
the Plan Administrator? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Plan participants, registered stockholders who are not Plan participants and new investors purchasing shares of
Chesapeake common stock through optional cash investments are required to deliver payment for the shares to the Plan Administrator. <B>Payments should not be mailed or otherwise delivered to Chesapeake.</B> </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Plan Administrator will accept the following methods of payment for optional cash investments of $100,000 or less. Instruction for the submission of
payment for investments pursuant to Requests for Waiver has been previously discussed in Question No.&nbsp;18. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>By Check </I></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Plan Administrator will accept personal checks in U.S. funds and drawn against a U.S. bank or other approved financial institution for payment of
optional cash investments by stockholders and new investors. All such checks should be made payable to &#147;Computershare &#150; Chesapeake Utilities Corporation.&#148; Cash, traveler&#146;s checks, money orders and third-party checks will not be
accepted. If the stockholder making the optional cash investment is not a participant in the Plan, the check must accompany the Enrollment Form, which can be obtained by mail or online, or by calling the Plan Administrator. If a new investor is
making an initial investment, the check must accompany the Initial Enrollment Form, which can be obtained by mail or online, or by calling the Plan Administrator. All checks and the appropriate form(s) should be mailed to the Plan Administrator at
the address specified in Question No.&nbsp;3. Checks received without the required accompanying form(s) may be returned by the Plan Administrator. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">11 </FONT></P>



<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">If a check for an optional cash investment or an initial investment is dishonored, refused or otherwise
returned unpaid, any credit of shares of Chesapeake common stock to the participant&#146;s account in anticipation of receiving the funds will be reversed and the Plan Administrator may immediately sell any shares purchased for the account of the
investor. In addition, the investor will be assessed a fee of $25 and will be responsible for any other associated costs of the Plan Administrator. This fee and any other associated costs of the Plan Administrator will be deducted from any cash
balance in the participant&#146;s account or, if sufficient funds are not available, the Plan Administrator may sell shares from the participant&#146;s Plan account to satisfy the uncollected balance. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>By One-Time Debit From a Designated Account </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">As an alternative to payment for an optional cash investment by check, a Plan participant or registered stockholder may authorize a one-time debit from a checking or savings account maintained with a U.S.
bank or other approved financial institution by accessing his or her account online at the Plan Administrator&#146;s website and following the instructions provided. Likewise, a new investor can give online authorization of a one-time debit of a
checking or savings account maintained with a U.S. bank or other approved financial institution to fund his or her initial investment. This can be facilitated by accessing the Plan Administrator&#146;s website and following the instructions
provided. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>By Automatic Monthly Debits From a Designated Account </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">A Plan participant or registered stockholder may authorize optional cash investments on a monthly basis by electing to have funds automatically debited once each month from a checking or savings account
maintained with a U.S. bank or other approved financial institution. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">A Plan participant can authorize automatic monthly debits by:
</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">accessing the participant&#146;s Plan account online with the Plan Administrator and following the instructions provided; or
</FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">completing and signing a Direct Debit Authorization Form and returning it to the Plan Administrator, together with a voided blank check or savings
deposit slip for the bank account from which the funds are to be withdrawn. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">A registered stockholder who is not a Plan
participant can authorize automatic monthly debits by: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">accessing his or her account online with the Plan Administrator and following the instructions provided; or </FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">completing an Enrollment Form and a Direct Debit Authorization Form. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Once automatic monthly debits begin, funds will be withdrawn from the participant&#146;s designated account on the first of each month or the next business day if the first is not a banking business day.
A participant may change the amount debited or discontinue automatic debits by calling the Plan Administrator, completing and submitting to the Plan Administrator a new Direct Debit Authorization Form or by accessing his or her Plan account online
and following the instructions provided. To be effective for a particular investment date, the Plan Administrator must receive the new instructions at least six business days before the investment date. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>Online Payment </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Plan participants,
registered stockholders, or new investors may also make online payments by accessing the Plan Administrator&#146;s website, if they choose to purchase shares online. Plan participants and registered stockholders will be required to authenticate his
or her online account with the Plan Administrator by accessing the Plan Administrator&#146;s website at <U>www.computershare.com/investor</U>. New investors must first enroll online with the Plan Administrator at
<U>www.computershare.com/investor</U>. Once an online account has been established or authenticated, a Plan participant, registered stockholder, or new investor may purchase his or her initial shares or additional shares by following the
instructions provided on the Plan Administrator&#146;s website. Any questions regarding the online purchase of shares should be directed to the Plan Administrator. See Question No.&nbsp;3. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_17"></A>Optional Cash Investments Through Payroll Deductions </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>20. Can
an employee of Chesapeake or its subsidiaries make optional cash investments through payroll deductions? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Yes. Any employee of Chesapeake
or its subsidiaries is eligible to participate in the Plan through payroll deductions. To participate, an employee must obtain a Payroll Deduction Authorization Form from the Human Resources Department. The Payroll Deduction Authorization Form
authorizes Chesapeake to deduct the amount specified by the employee (of not less than $50 per calendar quarter) from the employee&#146;s after-tax earnings. Payroll deductions may not at any time exceed the employee&#146;s after-tax earnings nor
may the total of all optional cash investments (including investments other than by payroll deduction) during a calendar year exceed $100,000. The initial purchase minimum amount of $500 and subsequent investment minimum amount of $100 per
investment are waived for employees who participate in the Plan through payroll deductions. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">12 </FONT></P>



<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">In order to initiate payroll deductions, the Payroll Deduction Authorization Form must be completed and
received by the Human Resources Department at least two weeks before the beginning of the first pay period for the commencement of deductions. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>21. When will the payroll deductions be received and invested by the Plan Administrator? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Chesapeake will submit to the Plan Administrator accumulated payroll deductions for each month no later than two business days prior to the investment date in the next month. See Question No.&nbsp;15. The
Plan Administrator will apply these funds to the purchase of Chesapeake common stock as of the investment date. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>22. Can an employee change
the amount of his or her payroll deductions? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Yes. An employee for whom payroll deductions have commenced may change the amount of his or
her deductions by submitting a new Payroll Deduction Authorization Form to the Human Resources Department. The Payroll Deduction Authorization Form must be received at least two weeks before the beginning of the pay period as of which the change in
the amount of deduction is to take effect. The change will take effect within two weeks of receipt of the Payroll Deduction Authorization Form by the Human Resources Department. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>23. What happens when a pay period does not coincide with the end of the month? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">All
deductions made after the last pay period of a month will be held by Chesapeake and invested with the payroll deductions for the next month. The payroll deductions transferred to the Plan Administrator for any month will consist of the deductions
made for each payroll period that ended during the month. No interest will be paid on payroll deductions held for investment. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>24. Can an
employee elect to discontinue payroll deductions? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Yes. An employee for whom payroll deductions are being made may direct that Chesapeake
discontinue such deductions by submitting a new Payroll Deduction Authorization Form to the Human Resources Department. The Payroll Deduction Authorization Form must be received at least two weeks before the beginning of the pay period as of which
the employee wishes to cease such deductions. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>25.&nbsp;May an employee discontinue payroll deductions and still remain in the Plan?
</B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Yes. A participant who discontinues payroll deductions may retain his or her Plan account. Dividends paid on shares held in the
participant&#146;s Plan account will continue to be reinvested or paid in cash in accordance with the participant&#146;s reinvestment election. See Question No.&nbsp;10. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_18"></A>Purchases of Shares Under the Plan </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>26. What is the source of
the shares of common stock purchased under the Plan? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Shares of Chesapeake common stock acquired under the Plan (other than purchases
pursuant to Requests for Waiver) will be purchased by the Plan Administrator, at Chesapeake&#146;s discretion, (i)&nbsp;from Chesapeake (in which event the shares will be either authorized but unissued shares or shares held in the treasury of
Chesapeake), (ii)&nbsp;in the open market or in one or more negotiated transactions or (iii)&nbsp;a combination of the foregoing. All shares of Chesapeake common stock purchased pursuant to Requests for Waiver will be purchased from Chesapeake.
</FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>27. What will be the price of shares of common stock purchased under the Plan? </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The purchase price per share of Chesapeake common stock purchased from Chesapeake (other than purchases pursuant to Requests for Waiver) will be equal to
100% of the average of the high and low sales prices of the common stock, based on the New York Stock Exchange Composite Transactions by 4:00 p.m. Eastern Time as reported on the investment date, but in no event will shares of common stock be sold
by Chesapeake under the Plan at less than the par value per share. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The price per share of Chesapeake common stock purchased in the open
market or in negotiated transactions will be the weighted average purchase price of all shares of common stock purchased with funds to be invested as of the particular investment date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">No one will have any authority or power to direct the time or price at which shares for the Plan are purchased, and no one, other than the Plan Administrator will select the broker through or from whom
purchases are to be made. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>28. How many shares of common stock will be purchased for participants? </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The number of shares purchased on any particular investment date will depend upon (i)&nbsp;the amount of dividends to be invested or optional cash
investments to be made and (ii)&nbsp;the applicable purchase price per share. Each participant&#146;s account will be credited with that number of shares (including a fraction computed to six decimal places) equal to the participant&#146;s total
amount to be invested divided by the applicable purchase price per share. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">13 </FONT></P>



<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Because the purchase price of the shares will be based on market conditions existing at the time that
investments are made, participants will not know the precise number of shares to be purchased for their accounts either at the time they elect to participate in the Plan or at the time they make optional cash investments. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_19"></A>Reports and Other Communications to Participants </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>29. How will a participant be advised of the purchase of shares of common stock? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Each Plan
participant who reinvests dividends through the Plan will receive a quarterly statement following each dividend reinvestment. Each participant who makes optional cash investments also will receive a statement of account for any month in which an
optional cash investment is made. A new investor who makes an initial investment also will receive a statement of account for the month in which the investment is made. These statements show any cash dividends reinvested and any investments made,
the number of shares purchased, the purchase price, the number of shares held for the participant by the Plan after giving effect to the reported purchases, the number of shares registered in the name of the participant, and a report of each
transaction for the current calendar year to date. Statements of account are mailed to participants as soon as practicable after each investment date. For shares acquired in the Plan after January&nbsp;1, 2011, specific cost information has and will
be included in a Plan participant&#146;s statement in accordance with applicable law. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>These statements are a participant&#146;s continuing
record of the cost of shares of Chesapeake common stock purchased under the Plan, and should be retained. </B></FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>30. What other
communications does a Plan participant receive? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Each participant will also receive future prospectuses for the Plan and copies of other
communications sent to Chesapeake&#146;s stockholders, which typically include annual reports, annual meeting notices and proxy statements, as well as other financial materials and income tax information for reporting dividends paid by Chesapeake.
</FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_20"></A>Safekeeping of Certificates </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>31. How does the arrangement for the safekeeping of stock certificates work? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The
safekeeping arrangement for stock certificates gives a participant the opportunity to deposit Chesapeake common stock certificates registered in the participant&#146;s name with the Plan Administrator. When the shares are on deposit with the Plan
Administrator, the participant is relieved of the safekeeping responsibility. This feature protects the stockholder from the risk of loss, theft or destruction of the certificates. Shares represented by certificates deposited with the Plan
Administrator will be credited in book-entry form to the participant&#146;s account under the Plan. Dividends on shares deposited with the Plan Administrator will be reinvested or paid in cash in accordance with the participant&#146;s dividend
payment election. See Question No.&nbsp;10. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">To deposit a stock certificate with the Plan Administrator for safekeeping, a participant must
mail the certificate by registered or certified mail, with return receipt requested, or by some other form of traceable mail, and properly insured, to the Plan Administrator at the address set forth in Question No.&nbsp;3. <B>DO NOT ENDORSE THE
STOCK CERTIFICATE.</B> </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_21"></A>Certificates for Shares </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>32. Will stock certificates automatically be issued for shares of common stock purchased under the Plan? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">No. Shares of common stock purchased under the Plan will be credited to a participant&#146;s account under the Plan and will be shown on the participant&#146;s statement of account. Certificates will not
be issued unless a participant requests a certificate. Upon request of a participant, certificates for any number of shares up to the total number of whole shares credited to the participant&#146;s account under the Plan will be issued. Requests for
certificates can be made by contacting the Plan Administrator by any of the means specified in Question No.&nbsp;3. Any remaining whole shares and any fractional share will continue to be held in the participant&#146;s account. Certificates for
fractional shares will not be issued under any circumstances. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Shares credited to the account of a participant under the Plan may not be
pledged or assigned and any purported pledge or assignment will be void. A participant who wishes to pledge or assign shares credited to his or her account must request that the Plan Administrator issue a certificate for such shares registered in
the participant&#146;s name. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>33. Can a certificate be issued in a name other than the participant&#146;s? </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Yes. An account will be maintained in each participant&#146;s name as shown on the stockholder records at the time the participant enrolls in the Plan.
Unless a participant otherwise requests, certificates for whole shares, when issued, will be registered in that name of the participant exactly as it appears on his or her Plan account. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Upon written request to the Plan Administrator, certificates can be registered and issued in a name other than the name in which an account is maintained, provided that the request bears the signature(s)
of the participant(s) and the signature(s) is Medallion guaranteed by a commercial bank or member firm of a national securities exchange participating in the Medallion program. This constitutes re-registration of the shares and is subject to
compliance with any applicable laws and to the payment by the Plan participant of any applicable stock transfer taxes. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">14 </FONT></P>



<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_22"></A>Sale of Shares </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>34. Can a participant sell shares credited to his or her account under the Plan? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Yes. A
participant can request the sale of all or a portion of the shares credited to the participant&#146;s account under the Plan by contacting the Plan Administrator. As soon as practicable after receipt of a sale request, the Plan Administrator will
place a sell order with a brokerage firm selected by the Plan Administrator. The sale generally will be effected within five trading days after the receipt of a sale request. The participant will receive the proceeds of the sale, less a brokerage
commission of $0.15 per share and any transfer tax payable by the seller. The Plan Administrator will send the sale proceeds to the Plan participant by check after the sale transaction has settled. All requests for a sale of shares having an
aggregate market value of $100,000 or more are expected to be submitted in writing to the Plan Administrator. Also, all sale requests within 30&nbsp;days after a reported change of address are expected to be submitted in writing to the Plan
Administrator. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>35. What happens if a participant sells or transfers some of the shares for which the participant has elected dividend
reinvestment? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">If a participant is reinvesting the cash dividends on all of the shares registered in the participant&#146;s name and on all
shares of common stock credited to the participant&#146;s account under the Plan (i.e., if the participant elected the &#147;Full Dividend Reinvestment&#148; option described in Question No.&nbsp;10) and the participant disposes of a portion of
those shares, regardless of whether the shares are registered in the participant&#146;s name or held by the Plan for the account of the participant, the Plan Administrator will continue to reinvest the dividends on the remainder of the
participant&#146;s shares. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">If a participant has elected to receive in cash the dividend on a portion of shares registered in the
participant&#146;s name and/or held by the Plan for the account of the participant, and the participant disposes of a portion of those shares, the Plan Administrator will continue to distribute in cash the dividend on the number of shares that the
participant previously elected to receive in cash and continue to reinvest the dividends received on the balance of the participant&#146;s shares. If the number of shares sold or transferred exceeds the number of shares on which dividends are being
paid in cash, no dividends will be reinvested. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">For example, assume a participant owns 250 shares and directs the Plan Administrator to
distribute in cash the dividends on 100 shares and to reinvest the dividends on the balance. If the participant disposed of 50 shares, the Plan Administrator would continue to distribute in cash the dividend on the 100 shares and would reinvest the
dividend on the remaining 100 shares. If instead the participant sells 200 shares, then the Plan Administrator will distribute in cash the dividend on all of the participant&#146;s remaining shares. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_23"></A>Termination of Participation </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>36. Can Chesapeake terminate a participant&#146;s participation in the Plan? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Yes.
Chesapeake reserves the right to terminate the participation of a participant who, in Chesapeake&#146;s opinion, is misusing the Plan or is causing undue expense to Chesapeake. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>37.&nbsp;May a participant terminate participation in the Plan? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Yes. The Plan is entirely
voluntary and a participant may request termination of his or her participation in the Plan at any time. If a termination request is received by the Plan Administrator on or prior to the record date for a cash dividend, that dividend and all
subsequent dividends on the participant&#146;s shares (both registered shares and shares held for the account of the participant under the Plan) will be paid to the participant in cash. If the request is received after the record date for a cash
dividend, the dividend, at the election of the Plan Administrator, either will be reinvested for the participant&#146;s account on the corresponding dividend payment date or distributed to the withdrawing participant by the Plan Administrator in
cash and all dividends thereafter will be paid in cash. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">After a termination request is received, any funds for an optional cash investment
held by the Plan Administrator will be invested as of the next investment date, unless a request for the return of the funds is received by the Plan Administrator at least two business days prior to the investment date. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">In order to terminate participation in the Plan, a participant must notify the Plan Administrator by accessing his or her Plan account online and
following the instructions provided or by notifying the Plan Administrator by telephone or in writing as described in Question No.&nbsp;3. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>38. Upon termination, what happens to the shares held for a participant&#146;s account? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">If a participant terminates his or her participation in the Plan, generally not later than two business days thereafter, the Plan Administrator will issue to the participant a certificate for the whole
number of shares credited to a participant&#146;s account under the Plan and will make a cash payment to the participant for any fractional share based on the then current market price of Chesapeake common stock. In lieu of receiving a certificate
for the shares held by the Plan, a participant may request, at the time of the submission of his or her notification of termination, that all or a portion of the whole shares credited to his or her account under the Plan be sold. As soon as
practicable after receipt of notice of termination and instructions to sell, the Plan Administrator will place a sell order with a brokerage firm selected by the Plan Administrator. The sale generally will be effected within five trading days after
the receipt of notice of termination. The participant will receive the proceeds of the sale less a brokerage commission of $0.15 per share and any applicable transfer taxes. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">15 </FONT></P>



<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_24"></A>Other Information </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>39. How is a participant&#146;s Plan account handled when a participant dies? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Plan
Administrator will continue to maintain the participant&#146;s Plan account and cash dividends will continue to be reinvested in accordance with the participant&#146;s reinvestment election until the Plan Administrator receives certain information
from a legal representative of the participant&#146;s estate such as a death certificate, official written confirmation regarding the disposition of the estate, and written instructions to withdraw the shares of common stock. No optional cash
investments may be made in the name of the participant after the participant&#146;s death if the Plan Administrator has received notice of the participant&#146;s death. These procedures also will be followed in the event the Plan Administrator is
notified that a participant has been adjudicated incompetent. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>40. If Chesapeake engages in a rights offering, how will the rights on
shares of common stock held by the Plan be handled? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">In the event that rights are issued to existing Chesapeake stockholders to subscribe
to additional shares of common stock, debentures, or other securities, the Plan Administrator will distribute to Plan participants the rights issued in respect of the shares of Chesapeake common stock held for participants&#146; accounts under the
Plan, thereby enabling each Plan participant to exercise or transfer such rights in the same manner and to the same extent as rights issued in respect of any shares registered in the participant&#146;s name. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>41. What happens if Chesapeake pays a stock dividend or effects a stock split? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Any additional shares of Chesapeake common stock issued as the result of a stock dividend or a stock split in respect of both shares of common stock held by the Plan for the account of a participant and
shares registered in the name of a Plan participant, will be credited to the participant&#146;s Plan account. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>42. How will a
participant&#146;s shares held under the Plan be voted at meetings of stockholders? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">In connection with each meeting of Chesapeake&#146;s
stockholders, a participant will receive either a paper copy of Chesapeake&#146;s proxy statement, together with a proxy card, or a Notice of Internet Availability of Proxy Materials. If a participant receives a proxy card, it will allow a
participant to vote his or her shares by telephone, via the Internet or by mail. If a participant receives a Notice of Internet Availability of Chesapeake&#146;s Proxy Materials, it will include instructions on how to access Chesapeake&#146;s proxy
materials and vote his or her shares via the Internet. The Notice will also include instructions on how a participant may request delivery at no cost to him or her of a paper or email copy of Chesapeake&#146;s proxy materials. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>43.&nbsp;May Chesapeake amend or discontinue the Plan? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Yes. Notwithstanding any other provision of the Plan, Chesapeake reserves the right at any time or from time to time to make modifications to any provisions of the Plan or to suspend or terminate the Plan
in its entirety. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Upon termination of the Plan, any cash held pending investment as an optional cash investment will be returned, a
certificate will be issued to the participant for the whole number of shares credited to the participant&#146;s account, and a cash payment will be made to the participant for any fractional share credited to the participant&#146;s account.
</FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>44. What is sufficient notice to a participant under the Plan? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Any notice which by any provision of the Plan is required to be given by the Plan Administrator to a participant shall be in writing and shall be deemed to have been sufficiently given for all purposes if
mailed by first class mail, postage prepaid, to the participant at the participant&#146;s address as it shall last appear on the Plan Administrator&#146;s records. The Plan Administrator will be fully protected in relying on such records.
</FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>45. Can successor Plan Administrators be named? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Yes. Chesapeake may replace the Plan Administrator at any time upon written notice to the Plan Administrator and may designate another qualified administrator as successor Plan Administrator for all or a
part of the Plan Administrator&#146;s functions under the Plan. All participants would be notified of any such change. If Chesapeake changes the Plan Administrator, references in this Prospectus to Plan Administrator shall be deemed to be references
to the successor Plan Administrator, unless the context requires otherwise. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">16 </FONT></P>



<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>46. Who bears the risk of fluctuations in the market price of common stock? </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">A participant&#146;s investment in shares of Chesapeake common stock credited to the participant&#146;s account under the Plan is no different from a risk
standpoint than an investment in Chesapeake common stock held in certificate form. A participant bears the full risk of loss (and receives the benefit of any gain) occurring by reason of fluctuations in the market price of Chesapeake common stock
credited to the participant&#146;s Plan account. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>47. Who governs and interprets the Plan? </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Chesapeake has full authority, in its sole discretion, to adopt such rules and regulations as it shall deem necessary or desirable for operation of the
Plan and to interpret the Plan and such rules and regulations. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>48. Can purchases or sales of common stock under the Plan be curtailed or
suspended? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Yes. Purchases or sales of Chesapeake common stock under the Plan may be curtailed or suspended at any time if such purchases
or sales would, in Chesapeake&#146;s judgment, contravene or be restricted by applicable law of the rules, regulations, interpretations or orders of the SEC, any other governmental agency, commission or instrumentality, any court or any securities
exchange. Neither Chesapeake nor the Plan Administrator shall be accountable, or otherwise liable, for failure of the Plan to make purchases or sales at such times and under such circumstances. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_25"></A>Federal Income Tax Consequences </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B>49. What are the Federal income tax consequences of participation in the Plan? </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">In general,
stockholders who participate in the Plan will be subject to the same Federal income tax consequences, with respect to the dividends payable to them, as nonparticipating stockholders of Chesapeake. A participant will be treated for Federal income tax
purposes as having received, on each quarterly dividend payment date, a dividend equal to the full amount of the cash dividend payable for the quarter with respect to the participant&#146;s shares of Chesapeake common stock, even if that amount is
not actually received in cash, but instead is applied to the purchase of shares of Chesapeake common stock for the participant&#146;s account. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">In addition, the amount of any brokerage fees paid for a participant by Chesapeake or the Plan Administrator in connection with the purchase of shares
will be taxed as a dividend to the participant. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">An employee who makes optional cash investments through payroll deductions is subject to the
same Federal income tax consequences as if the employee had received the funds deducted for the purchase of shares of Chesapeake common stock. Thus, an employee&#146;s purchase of shares through payroll deductions does not decrease the amount of the
employee&#146;s taxable income. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The participant&#146;s tax basis for shares of Chesapeake common stock purchased with reinvested dividends or
optional cash investments under the Plan will depend upon the source of the shares. The tax basis of shares purchased from Chesapeake will be equal to the purchase price of the shares. The tax basis of shares purchased in the open market or in
negotiated transactions will be equal to the purchase price of the shares increased by a pro rata share of any brokerage and other fees paid for the participant by Chesapeake. The holding period for shares of common stock acquired pursuant to the
Plan will begin on the day following the day the shares are credited to the participant&#146;s account. Plan participants are responsible for maintaining a record of the cost basis for shares in certificate form and held for the participant&#146;s
account under the Plan. In the event the shares are ever sold, whether a participant is required to pay taxes on the sale will depend on the cost basis of the shares. Chesapeake strongly recommends that stockholders keep the last quarterly Plan
account statement for each calendar year which details all of that year&#146;s Plan activity. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">A Plan participant who purchases shares of
Chesapeake common stock pursuant to a Request for Waiver at a price that reflects a waiver discount may be treated as having received a dividend distribution equal to the excess of the fair market value of the shares acquired over the purchase
price. If such excess is treated as a dividend, the participant&#146;s basis in the shares acquired will include the amount of such dividend. Persons making purchases at a waiver discount should consult their tax advisors regarding the tax
consequences of such purchases. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">A Plan participant will not realize taxable income when he or she receives certificates for whole shares
previously credited to the participant&#146;s account, either upon the request of the participant for the issuance of a certificate or upon withdrawal from or termination of the Plan. However, participants must generally recognize any gain or loss
when whole shares acquired under the Plan are sold or exchanged either by the Plan Administrator at the request of a participant or following the withdrawal of the shares from the Plan by the participant. A participant also must recognize any gain
or loss when the participant receives a cash payment for a fractional share credited to the participant&#146;s account under the Plan upon withdrawal from or termination of the Plan. The amount of such gain or loss will be the difference between the
proceeds received by the participant from the sale of the shares or fractional share and the cost basis of the shares. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">THE DISCUSSION ABOVE
IS A SUMMARY OF THE IMPORTANT U.S. FEDERAL INCOME TAX CONSEQUENCES OF PARTICIPATION IN THE PLAN. THE SUMMARY IS BASED ON THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, U.S. TREASURY REGULATIONS, ADMINISTRATIVE RULINGS AND COURT DECISIONS, AS IN
EFFECT AS OF THE DATE OF THIS DOCUMENT, ALL OF WHICH ARE SUBJECT TO CHANGE AT ANY TIME, POSSIBLY WITH RETROACTIVE EFFECT. THIS </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">17 </FONT></P>



<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
SUMMARY IS NOT A COMPLETE DESCRIPTION OF ALL OF THE TAX CONSEQUENCES OF PARTICIPATION IN THE PLAN, FOR EXAMPLE, IT DOES NOT ADDRESS ANY STATE, LOCAL OR FOREIGN TAX CONSEQUENCES OF PARTICIPATION.
ALL PARTICIPANTS ARE URGED TO CONSULT THEIR OWN TAX ADVISORS TO DETERMINE THE PARTICULAR TAX CONSEQUENCES THAT MAY RESULT FROM THEIR PARTICIPATION IN THE PLAN AND THE SUBSEQUENT SALE OR OTHER TRANSFER BY THEM OF SHARES ACQUIRED PURSUANT TO THE PLAN.
</FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>50. Is the Plan Administrator required to withhold Federal income tax on the payment of dividends under the Plan? </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Yes. Under current Federal income tax laws, the Plan Administrator (in its capacity as the dividend disbursing agent for Chesapeake) may be required to
withhold a certain percentage (called &#147;backup withholding&#148;) from the amount of dividends that would otherwise be made available to the participant or reinvested under the Plan. This withholding is required if any participant has failed to
furnish a valid taxpayer identification number, failed to report interest or dividends properly on his or her tax return or failed, when required, to certify that the participant is not subject to backup withholding. Should backup withholding be
required as to any dividends, the Plan Administrator will endeavor to notify the participant of this requirement when withholding begins. The amount withheld will be deducted from the amount of the dividend and only the remaining amount will be
reinvested or paid in cash, as elected by the participant. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">If a participant is a nonresident foreign stockholder whose dividends are subject
to U.S. Federal income tax withholding, the amount of the tax to be withheld will be deducted from the gross amount of dividends to determine the amount of dividends to reinvest or pay in cash, as elected by the participant. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="3"><B><A NAME="424278265_26"></A>DESCRIPTION OF SECURITIES </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Chesapeake&#146;s authorized capital stock consists of 25,000,000 shares of common stock, par value $0.4867 per share, and 2,000,000 shares of preferred stock, par value $0.01 per share. </FONT></P>
<P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Common Stock </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Stockholders are entitled
to one vote for each share held of record on all matters submitted to a vote of stockholders and are entitled to receive dividends when and as declared by the Board of Directors out of funds legally available therefore for distribution to
stockholders and to share ratably in the assets legally available for distribution to stockholders in the event of the liquidation or dissolution, whether voluntary or involuntary, of Chesapeake. Stockholders do not have cumulative voting rights in
the election of directors and have no preemptive, subscription or conversion rights. The common stock is not subject to redemption by Chesapeake. Each outstanding share of our common stock currently has associated with it one preferred stock
purchase Right issued under Chesapeake&#146;s shareholder rights plan, which is summarized below. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Preferred Stock </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Shares of preferred stock may be issued by Chesapeake from time to time, by authorization of the Board of Directors and without the necessity of further
action or authorization by Chesapeake&#146;s stockholders, in one or more series and with such voting powers, designations, preferences and relative, participating, optional or other special rights and qualifications as the Board may, in its
discretion, determine, including, but not limited to (a)&nbsp;the distinctive designation of such series and the number of shares to constitute such series; (b)&nbsp;the dividend rights, if any, for such series; (c)&nbsp;the voting power, if any, of
shares of such series; (d)&nbsp;the terms and conditions (including price), if any, upon which shares of such stock may be converted into or exchanged for shares of stock of any other class or any other series of the same class or any other
securities or assets; (e)&nbsp;the right, if any, of Chesapeake to redeem shares of such series and the terms and conditions of such redemption; (f)&nbsp;the retirement or sinking fund provisions, if any, of shares of such series and the terms and
provisions relative to the operation thereof; (g)&nbsp;the amount, if any, that the stockholders of such series shall be entitled to receive in case of a liquidation, dissolution, or winding up of Chesapeake; (h)&nbsp;the limitations and
restrictions, if any, upon the payment of dividends or the making of other distributions on, and upon the purchase, redemption, or other acquisition by Chesapeake of, Chesapeake common stock; and (i)&nbsp;the conditions or restrictions, if any, upon
the creation of indebtedness or upon the issuance of any additional stock of Chesapeake. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Certificate of Incorporation Provisions Relating
to a Change in Control </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Under Chesapeake&#146;s Certificate of Incorporation, the affirmative vote of not less than 75% of the total voting
power of all outstanding shares of its capital stock is required to approve a merger or consolidation of Chesapeake with, or the sale of substantially all of its assets or business to, any other corporation (other than a corporation 50% or more of
the common stock of which is owned by Chesapeake), if such corporation or its affiliates singly or in the aggregate own or control directly or indirectly 5% or more of the outstanding shares of Chesapeake common stock, unless the transaction is
approved by the Board of Directors of Chesapeake prior to the acquisition by such corporation or its affiliates of ownership or control of 5% or more of the outstanding shares of common stock. In addition, Chesapeake&#146;s Certificate of
Incorporation provides for a classified Board of Directors under which one-third of the members are elected annually for three-year terms. The supermajority voting requirement for certain mergers and consolidations and the classified Board of
Directors may have the effect of delaying, deferring or preventing a change in control of Chesapeake. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">18 </FONT></P>



<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Shareholder Rights Plan </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">The Board of Directors of Chesapeake has adopted a shareholder rights plan (the &#147;Rights Plan&#148;) to protect against abusive or coercive takeover tactics that are contrary to the best interests of
our stockholders. To implement the Rights Plan, the Board declared a dividend of one preferred stock purchase Right for each outstanding share of Chesapeake common stock held of record on September&nbsp;3, 1999, and directed the issuance of a Right
along with each share of Chesapeake common stock issued thereafter for so long as provided for under the terms of the Rights Plan. Unless and until the Rights become exercisable, the Rights trade with Chesapeake&#146;s common stock and are evidenced
by the certificates for the common stock. The Rights will become exercisable and trade independently from Chesapeake common stock upon either (i)&nbsp;a public announcement that a person or entity has acquired beneficial ownership of 15% or more of
the outstanding Chesapeake common stock, other than in a tender or exchange offer for all of the outstanding shares of Chesapeake common stock at a price and on terms that a majority of the disinterested members of the Board of Directors determines
to be adequate and in the best interests of Chesapeake and its stockholders (an &#147;Acquiring Person&#148;), or (ii)&nbsp;ten days after the announcement or commencement of a tender or exchange offer that would result in a person or entity
becoming an Acquiring Person. Each Right, if it becomes exercisable, initially entitles the holder to purchase one-fiftieth of a share (a &#147;Unit&#148;) of Chesapeake Series&nbsp;A Participating Cumulative Preferred Stock, par value $0.01 per
share, at a price of $105 per Unit, subject to anti-dilution adjustments. Upon a person or entity becoming an Acquiring Person, each Right (other than the Rights held by the Acquiring Person) will become exercisable to purchase a number of shares of
Chesapeake common stock having a market value equal to two times the exercise price of the Right. If Chesapeake is acquired in a merger or other business combination transaction by an Acquiring Person, each Right (other than the Rights held by the
Acquiring Person) will become exercisable to purchase a number of the acquiring company&#146;s shares of common stock having a market value equal to two times the exercise price of the Right. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">The Rights expire on August&nbsp;20, 2019 unless they are redeemed earlier by Chesapeake at the redemption price of $0.01 per Right. Chesapeake may redeem the Rights at any time before they become
exercisable and thereafter only in limited circumstances. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Delaware Anti-Takeover Statute </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Chesapeake is subject to Section&nbsp;203 of the Delaware General Corporation Law, which, subject to certain exceptions, prohibits a Delaware corporation
from engaging in any business combination with any interested stockholder for a period of three years following the date that such stockholder became an interested stockholder, unless: (i)&nbsp;the corporation&#146;s Board of Directors approved
either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder, (ii)&nbsp;upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the
interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced or (iii)&nbsp;the business combination is approved by the Board of Directors and authorized at an annual or special
meeting of stockholders by the affirmative vote of the stockholders of at least 66 2/3% of the outstanding voting stock that is not owned by the interested stockholder. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_27"></A>LEGAL OPINION </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The validity of the shares of Chesapeake common
stock offered hereby that are purchased from Chesapeake has been passed upon by Baker&nbsp;&amp; Hostetler LLP, Orlando, Florida. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_28"></A>EXPERTS </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The financial statements and schedules as of
December&nbsp;31, 2010 and 2009 and for each of the three years in the period ended December&nbsp;31, 2010 and management&#146;s assessment of the effectiveness of internal control over financial reporting as of December&nbsp;31, 2010 incorporated
by reference in this Prospectus have been so incorporated in reliance on the reports of ParenteBeard LLC, an independent registered public accounting firm, incorporated herein by reference, given on the authority of said firm as experts in auditing
and accounting. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_29"></A>WHERE YOU CAN FIND MORE INFORMATION </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Chesapeake is subject to the informational requirements of the Exchange Act and in accordance with the Exchange Act files reports and other information
with the SEC. Annual, quarterly and special reports, proxy statements and other information filed by Chesapeake with the SEC may be read and copied at the SEC&#146;s Public Reference Room in Washington, D.C. at 100 F Street, N.E., Washington, D.C.
20549. Information on the operation of the SEC&#146;s Public Reference Room may be obtained by calling the SEC at 1.800.SEC.0330. Chesapeake&#146;s SEC filings are also accessible online at the SEC&#146;s website at <U>www.sec.gov</U>. Information
about us, including our filings, is also available on our website at <U>www.chpk.com</U>. Unless expressly incorporated by reference, information contained on or made available through our website is not a part of this Prospectus. </FONT></P>
<P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_30"></A>INCORPORATION OF CERTAIN INFORMATION BY REFERENCE </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">The SEC allows us to &#147;incorporate by reference&#148; the information contained in documents we file with the SEC, which means that we can disclose
important information to you by referring to these documents. The information incorporated by reference is an important part of this </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">19 </FONT></P>



<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">
Prospectus. Any statement contained in a document that is incorporated by reference in this Prospectus is automatically updated and superseded if information contained in this Prospectus, or
information that we later file with the SEC, modifies or replaces that information. Any statement made in this Prospectus or any prospectus supplement concerning the contents of any contract, agreement or other document is only a summary of the
actual contract, agreement or other document. If we have filed or incorporated by reference any contract, agreement or other document as an exhibit to the registration statement, you should read the exhibit for a more complete understanding of the
document or matter involved. Each statement regarding a contract, agreement or other document is qualified in its entirety by reference to the actual document. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">We incorporate by reference the following documents we filed with the SEC under the Exchange Act: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">(a)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Chesapeake&#146;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2010; </FONT></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">(b)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Chesapeake&#146;s Quarterly Reports on Form 10-Q for the quarters ended March&nbsp;31, 2011,&nbsp;June&nbsp;30, 2011, and September&nbsp;30, 2011;
</FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">(c)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Chesapeake&#146;s Current Reports on Form 8-K dated January&nbsp;21, 2011, May&nbsp;4, 2011,&nbsp;May&nbsp;9, 2011,&nbsp;May&nbsp;18, 2011,&nbsp;June&nbsp;29,
2011,&nbsp;August&nbsp;4, 2011,&nbsp;November&nbsp;4, 2011,&nbsp;November&nbsp;15, 2011,&nbsp;November&nbsp;22, 2011, December&nbsp;13, 2011, December&nbsp;22, 2011 and January 10, 2012; </FONT></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">(d)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">The description of Chesapeake&#146;s common stock and preferred stock purchase rights contained in Chesapeake&#146;s registration statements filed pursuant to
Section&nbsp;12 of the Exchange Act, including any amendment or reports filed for the purpose of updating the description. </FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">All
reports and other documents filed pursuant to Sections&nbsp;13(a), 13(c), 14 or 15(d) of the Exchange Act (i)&nbsp;on or after the date of the filing of this registration statement and prior to its effectiveness and (ii)&nbsp;on or after the
effective date of this registration statement and prior to the sale of all shares of common stock to which this Prospectus relates or the termination of the offering of the shares of Chesapeake common stock offered hereby shall be deemed to be
incorporated by reference into this Prospectus and to be a part hereof from the date of the filing of the documents. Any statement contained herein or in an incorporated document shall be deemed to be modified or superseded for purposes of this
Prospectus to the extent that a statement contained herein or in any other incorporated document subsequently filed modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or
superseded, to constitute a part of this Prospectus. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Any person to whom a copy of this Prospectus is delivered may obtain without charge,
upon written or oral request, a copy of any of the documents incorporated by reference herein, except for the exhibits to such documents. Requests for copies of documents should be directed to the Investor Relations Administrator, Chesapeake
Utilities Corporation, P.O. Box 615, Dover, Delaware 19903-0615, telephone numbers: 302.734.6716 or toll-free 888.742.5275. </FONT></P>
<P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B><A NAME="424278265_31"></A>INDEMNIFICATION </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Under Chesapeake&#146;s Bylaws, each person who was or is made a party or is threatened to be made a party to any action, suit or proceeding by reason of the fact he or she is or was a director or officer
of Chesapeake, or is or was serving at the request of Chesapeake as a director or officer of another corporation or of a partnership, joint venture, trust or other enterprise, is entitled to indemnification by Chesapeake to the fullest extent
permitted by the Delaware General Corporation Law against all expense, liability and loss (including attorneys&#146; fees, judgments, fines or penalties and amounts paid in settlement) reasonably incurred or suffered by such person in connection
therewith. These indemnification rights continue as to such person who has ceased to be a director or officer and inure to the benefit of the person&#146;s heirs, executors and administrators. These indemnification rights include the right to be
paid by Chesapeake the expenses incurred in defending any action, suit or proceeding in advance of its final disposition, subject to the receipt by Chesapeake of an undertaking by or on behalf of such person to repay all amounts so advanced if it is
ultimately determined that he or she is not entitled to be indemnified. These indemnification rights under the Bylaws are not exclusive of any other indemnification right which any person may have or acquire under any law, provision of
Chesapeake&#146;s Certificate of Incorporation, Bylaws, agreement, vote of stockholders or disinterested directors or otherwise. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Section&nbsp;145 of the Delaware General Corporation Law permits indemnification of a director, officer, employee or agent of a corporation who acted in
good faith in a manner he reasonably believed to be in or not opposed to the best interests of the corporation and, with respect to any criminal action or proceeding, had no reasonable cause to believe the person&#146;s conduct was unlawful. In all
proceedings other than those by or in the right of Chesapeake, this indemnification covers expenses (including attorneys&#146; fees), judgments, fines, and amounts paid in settlement actually and reasonably incurred by the indemnified person. In
actions brought by or in the right of Chesapeake (such as derivative actions), Section&nbsp;145 provides for indemnification against expenses only and, unless a court determines otherwise, only in respect of a claim as to which the person is not
judged liable to the corporation. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Chesapeake has in effect liability insurance policies covering certain claims against any of its directors
or officers by reason of certain breaches of duty, neglect, error, misstatement, omission or other act committed by such person in the person&#146;s capacity as director or officer. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">20 </FONT></P>



<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Article Eleven of Chesapeake&#146;s Certificate of Incorporation provides that a director of Chesapeake
shall not be personally liable to Chesapeake or its stockholders for monetary damages for breach of fiduciary duty as a director, except for liability (i)&nbsp;for breach of the director&#146;s duty of loyalty to Chesapeake or its stockholders,
(ii)&nbsp;for acts or omissions not in good faith or which involve intentional misconduct or knowing violation of law, (iii)&nbsp;under Section&nbsp;174 of the Delaware General Corporation Law, or (iv)&nbsp;for any transaction from which the
director derived any improper personal benefit. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers or persons controlling us pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act is therefore
unenforceable. </FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">21 </FONT></P>



<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center">


<IMG SRC="g278265g78g43.jpg" ALT="LOGO">
 </P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="4"><B>DIVIDEND REINVESTMENT AND DIRECT STOCK PURCHASE PLAN </B></FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="5"><B>546,343 SHARES OF COMMON STOCK </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
STYLE="font-family:Times New Roman" SIZE="3"><B>(PAR VALUE $0.4867 PER SHARE) </B></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center>
<P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">Prospectus
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">January&nbsp;18, 2012 </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center>
<P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <p STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT STYLE="font-family:Times New Roman" SIZE="2">22 </FONT></P>


</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>g278265g78g43.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 g278265g78g43.jpg
M_]C_X0`817AI9@``24DJ``@``````````````/_L`!%$=6-K>0`!``0````\
M``#_X0,9:'1T<#HO+VYS+F%D;V)E+F-O;2]X87`O,2XP+P`\/WAP86-K970@
M8F5G:6X](N^[OR(@:60](E<U33!-<$-E:&E(>G)E4WI.5&-Z:V,Y9"(_/B`\
M>#IX;7!M971A('AM;&YS.G@](F%D;V)E.FYS.FUE=&$O(B!X.GAM<'1K/2)!
M9&]B92!835`@0V]R92`U+C`M8S`V,"`V,2XQ,S0W-S<L(#(P,3`O,#(O,3(M
M,3<Z,S(Z,#`@("`@("`@("(^(#QR9&8Z4D1&('AM;&YS.G)D9CTB:'1T<#HO
M+W=W=RYW,RYO<F<O,3DY.2\P,B\R,BUR9&8M<WEN=&%X+6YS(R(^(#QR9&8Z
M1&5S8W)I<'1I;VX@<F1F.F%B;W5T/2(B('AM;&YS.GAM<$U-/2)H='1P.B\O
M;G,N861O8F4N8V]M+WAA<"\Q+C`O;6TO(B!X;6QN<SIS=%)E9CTB:'1T<#HO
M+VYS+F%D;V)E+F-O;2]X87`O,2XP+W-4>7!E+U)E<V]U<F-E4F5F(R(@>&UL
M;G,Z>&UP/2)H='1P.B\O;G,N861O8F4N8V]M+WAA<"\Q+C`O(B!X;7!-33I$
M;V-U;65N=$E$/2)X;7`N9&ED.C-&03!$-#DR-#$U13$Q13$Y-D9"1D,Y.#4Q
M-D%$.$0U(B!X;7!-33I);G-T86YC94E$/2)X;7`N:6ED.C-&03!$-#DQ-#$U
M13$Q13$Y-D9"1D,Y.#4Q-D%$.$0U(B!X;7`Z0W)E871O<E1O;VP](D%D;V)E
M(%!H;W1O<VAO<"!#4S4@5VEN9&]W<R(^(#QX;7!-33I$97)I=F5D1G)O;2!S
M=%)E9CII;G-T86YC94E$/2(P-#0Q14(S.$%!-T8X,D$P,3-%-T8V0T0V1$5$
M,D$R,2(@<W12968Z9&]C=6UE;G1)1#TB,#0T,45",SA!03=&.#)!,#$S13=&
M-D-$-D1%1#)!,C$B+SX@/"]R9&8Z1&5S8W)I<'1I;VX^(#PO<F1F.E)$1CX@
M/"]X.GAM<&UE=&$^(#P_>'!A8VME="!E;F0](G(B/S[_[@`.061O8F4`9,``
M```!_]L`A``&!`0$!00&!04&"08%!@D+"`8&"`L,"@H+"@H,$`P,#`P,#!`,
M#@\0#PX,$Q,4%!,3'!L;&QP?'Q\?'Q\?'Q\?`0<'!PT,#1@0$!@:%1$5&A\?
M'Q\?'Q\?'Q\?'Q\?'Q\?'Q\?'Q\?'Q\?'Q\?'Q\?'Q\?'Q\?'Q\?'Q\?'Q\?
M'Q__P``1"``B`1T#`1$``A$!`Q$!_\0`K`````<!`0```````````````0,$
M!08'"`(``0`"`P$!`0`````````````#!0$"!``&!Q```0,"!`,$!@0,!P$!
M`````0(#!!$%`!(&!R$Q,D%A$S-1@2)"%`C!@C05<9&AT?%28G(C@S46L9+"
M0Y-E%W,V$0`!`P(#!@0%`0@#`0`````!``(#$00A,1)!46&!,@4B0H(3<<%2
M,Q1BD:&QX?$C0R3PT7(5_]H`#`,!``(1`Q$`/P#1^KM7V/2EF=NUX?#,='!"
M1Q6XOL0A/:<%@@=([2U4DD#!4K-VK/F8UE<GG&[$ANT0JT:7E#CY'8234<?0
M!A_#VF-O5XBEDEZXY8)JCW_Y@KF@2F%75UM0S)<\/(".=0*#!3%:MP.E4U3'
M>ISI_6>Y5EVOU1?M43)+<UM2(EG;DMI0XAQ7`K3PX\\8I((7S-:P"F96ALCV
MQDN58M;R;LNK:8;U"^7G5);1[*.*E'*/=].&)L8!CI67\B3>M57N\R].;<R+
ME-DYY\.!G6^NE5/Y.'=7,<>;C8)):`8$IJYVEE3N64O_`&S=7P\YU"_4BM,J
M.WC3IQZ7_P"?#]*5?DR;U;6Y>O=::7VUTNTFZK3J2XA+LR6`G.49<QX$4[:8
M5VEM'),[#P!:YI7-8,<2JSM>Z>]%VF)A6N[RYDM0*DL-(0I1`YGIY##%]G;M
M%7``+*V>4F@*>_OKYF?^S_XD?FP#V[/]*OKGXJ?:-UWK#2>AKMJ3<-V2[++X
M8MEO?"4+60.&4`>\>9QBGMXY9`R*E-I6B.5S&ESU6=XW^W0ODY+=NDBWAY61
MB)$0DJ45'@G,JI)PQ9VV%@Q%5F==2.."<%1?F8#8D%-PH1F'M(K^+%-5GE@I
MI-Q5G[#S-SISEV=UD])\%@H9BL2FP@YC[2E)(`J.S"[N+813VZ+7:EYKJ3]O
M)N6QHK32U1UI5>YH+=N9YD$\W"/0G`+&T,S\>D9HES-H'%9O8W=W?>8??:OD
MEQF*$JDNA",J`LT3F.7A4X?FR@!II"6_D2;U(ML-XM<R=>V>)>[T[)MDITLO
M-+"`"5"B>0';@%W8QB(EK<0B07#B\5*U'>+@U;K5,GND!$5E;I)Y>PDG'G&-
MU.`WIHXT%5CB1O?N@Z^\ZW?GFFEK4I#82BB4D\$CAV8]4.WPTZ4F-R_>GY6I
M?F/3;4W/QK@J"M'BI?2VVKV.>:@%<!]JTK3"J)KFI7%,]NWXW2A242%7@S$(
M-51Y"$%"AZ#0`X*[MT)%*45!=2#:KCU[O!-.SUOU':5FWW2[K0RT4T);6#_$
MRUY\L*K:Q'OECL6M6R6X/M@C,JFH.[>\,^6U#@WN5)EO'*TPVA!4H]PRX;.L
MK=HJ6BBQB>0X`I_^^OF:_P"S_P")'YL9_;L_TJ^N?BK0V-<W7ESKG)UJ_)$9
MI"&XL:2E*<RU&I6*`<@*87]P$``$=*K7:F0DZD][T;FM:*TXI$1Q)OT\%N`U
MP)3Z75#T)P&PM/=?CTC-7N9]`PS6<F=WMWW(STAN^2EQXV7XA\(1D05&B<QR
M]N'QLH*TTA+?R)-ZE&U&[VNY^X-HM]XO+DNWS5J9<9<"`FI3[)J`.W&>\L8F
MQ$M;0A&@N'%X!*T?K.^)L6EKG=BK*8D=;B#^W3V?RX001ZWAN],I7:6DK(2M
M[-U,I4-0O\:D#*CMY#IQZG\"'Z4G_)DWJY]0[R2]&Z!M4.1*^]-:SHR77,]#
MX/B"H6Z$\J`\$X4Q6(EE)`I&"MC[@L8!FXJKM-;B;WZFN[5KL]XDR9;JO;(0
M@-MI/-2SEHE(PQEM;:-NIP%%F9-*XT!5S:\NNIM`;4OO2[X]<-225(:1/6$C
M*XL\0VFE*)&%-NQDT]`VC%LE<Z.//%43%W?W=E2&HL6^R7Y+R@AII"$%2E'D
M``G#EUC`!4M%%@%Q(=JD?WU\S/\`V?\`Q(_-@'MV?!$US<4<FY_,L8+LDN7$
M.(>;:#/AHS$+2M14.').0#UXKHM*TP4ZIZ;5[YG[S,E:WBVI:B(<".E;;7NE
MQWB5T]/9B>T1@1EVTE=>N)?3<F?Y?++8[KN&VB[!#@C,J>B1W:95O#EP//+S
MI@O<Y'-B\*K:-!?BM?@)2`!0)'``<!3'EDX5`_-9?\D"SV%M?&0XJ2^D?JMB
MB:^O#OL\>)<E]^_(+/\`:[==;A-0Q:H[LJ:!XB&V$E2QE]X`>C#M[FM%7'!+
MV@DX)UU!_?\`$C)8U"JX,Q9!HAJ65!"RGN/.F!Q>T3X*5X*S]8SJB-&6<WK5
MMHM83F$F4V%I'ZB59E?D&)GDT1EVX*(VU<`IS\QMX1,W`3;F55C6>,B.E/8E
M9%5#&/M;*15^HH]XZKZ;E%="V_<3XEVZ:+C2E2&067945.8I"^::]^--PZ*F
MF0CFA1A]:M4T,KYGCP'WL">%<@X5X5Y8R4L_TH]9^*MG</:^^ZQV\M4!R=FU
M#;TH?4X^>#KI3[:5D<CWX66MVV*4FGA*URP%[`-JSY=-H]S;*YXKUED$M',)
M$7^($D>\%(P\9>PO\W[4N=`]NQ<6O=O<RT+"&+[(6&C0L2:.)!'80>..?90N
M\JYMP\;5I/;[=MJ\[=R-4WUM,,VXK1+4GH6I`X%%>U7*F$%S9:)0QN-4RBN*
MLU'8LN:\UG<=8ZFDWN82E*SX<-BO!ID'V4CO[3CT=M`(F!H2N60O=4J40-<Z
M'M^UT_2L:#)5>+DD+ESB$Y%/)55/;7*D<L9G6\CI@\D:0BB5HC+=I4"L\SX"
M[V^:3]EDM.D_NJ&-LC=32."`TT(*UAOQJ=$+:Q]QI>5V[I:89`YE+M%*I]7'
MFNW0UF_\IK=/I'\5D5(2"G,,R002GTT-:8].4H5N77YD-5R;$;-;[6S;VBP(
MP?25+6E`3D]D$4K3"QG:F!VHFJV&\<10"B@>D-O]4:LN#4&U0G?"<4`_,<24
MM-(]Y2E'_#&V>Y9$*DH$<3GF@4ZW_3%LR]-Z+@KS1;)#SN@=KKG#,>\C&+MM
M7ZI#FXHUUX:-&Q0/1MOUG(NXEZ2CR';I!!6'8R<RFPKA7UXVSOC#:29%`C#J
M^'-3XR_F=`/]6_R#\V,5+/\`2CUGXJ]].WFY:8VR8NVM92UW".PIZ<MZF?.2
M<K8[^0PEE8))M,8PV)@QQ;'5RR1K?5]RU?J25?)IHIXY8S)/!ID="!]./46\
M`B8&A*))"]U2I:C7>A8NU4K2$*!(^])V1V5.6$Y5/H4%`UK7**4&,OXTAF$A
M(H$42L$>D#%0.PS%0;[;)@5E,>4RLJ'8`L5QMD;5I'!`::$+37S*ZE$;;V-$
M87QO+S:10\?"`\0G\'`8\]VJ*LM3Y4SO7^"F]9AMEOG7">S#@-%Z8Y53+:>9
M*!F-/4,>B>X-%3DE8!)P1,I^2^^Z](6IR2HT<6X:JJGA0U]&)``&&2XE:^V$
M9T?_`&)%DZ?8#3[@RW-2J%XR$]><\Z5XI[L>6[B9/=(=R3>T#=&"KOYK;\5S
M++86UU2@+EOH'8>E%<;^SQX.=R6>_?B`J;TG;]52[RV[I>.\_=H?\9I4=.9;
M=.&;\N&LSF!OCZ2L3`XGPYJPS+^9VA_JW^0?FQAI9_I6FL_%6C\+NQ_XMXOQ
M4O\`O7/X^7AX^7/3PJ4_4XX6U@_(R'MK523VMNI&;U[,N:T\*[VEY+%[C(\,
MMN>6\V.(!/8H=AQUA?\`M>%W25-S;:\1FL_2MK=T;++2Y]RRVGVS5J3&4%&H
M[4J0:C#MMY"\=02XPO:<E)[19OF"O;\6$\JZ-6\NMI?><=\+*WF&8DU"CPQG
M>^U8"?#5%:V5V&*<][-#[@7_`%N7+98Y,JVP(S42-(!31S(/:6*GM.!V%Q$R
M/Q.`)-5:YC<YV`4@^73;;45DO]RN^H+:Y`<0PEB%XA%3G-7*4/[(P#NETQ[0
MUIJB6<)#B2$5\Q.E]>:EU/!9L]H?FVR"Q4.ME(077#4\SS&)[9-%&PEQH2NN
MV.<[`)OV&VOU9;-:JO%_M3L&-!CK+'B93G=7P&6AY@5P3N-VQT>EIK4JMK"X
M.J0H9JK;G=6]:FNEV=T])6J9(<<"JHZ:T3V^C&J&Z@8P-U#`($D3RXFB4Z?T
MWO\`:=BN1;);IT%AY?B.MMEOBJE*GCBLDUK(:N(*EK)6Y53[;$?,O(N<-B2J
MX,1G7FTOO*+>5#>;VB?5@+S9AI(I5$;[Q.U/>ZL/>]&NI-RTXS-3:F&6F(SD
M=P%*PE/M+4V3S*N[`K-UO[8#Z51)Q)JJ*J*.:F^9!YM492;C18*31E"30_M`
M8TB&T&."#KFXI'I[Y?MR;W+"KC&%JCNJSO2I*@M?'B2$I/$_AQ:7N43!@=2A
MEH]V>")W1U):X<.+M_IETKL-F4?CI->,J9[ZE4X$).)LXB297]3OW!1,\`:&
MY!.^P^T435KK][OS*G+$P2U'9J4A]WM-10Y4]V!]QO3%X6]2O:V^O$Y*U-5;
M`Z"3IRXJLMGRW4,+,(I<<)\0#V:!2J86P]REUC4?"M4EHS2:#%9Z5M!NCDI_
M;DFH[T<QZ\//SH?J"7^P_<K-W5T_N-J'2FC[9%L4AU4.-XEP2"FJ'TCPTH5Q
M_5XX76<L3'O)=F<%IG:]S6BB9-I=HM7MZ]MTG4-C<8M47.ZZI_*IM2@*)!%3
M7C@U[>QF(ACL2J6\#M8J,%IK^V=.5K]UQ:__`!;_`#8\_P"Z_>4TT-W)<Q'C
MQVPVPTAIL<D(2$C\0Q0DE2!19/W0T)N9J/7MVNK.GI#D9;@:BK!31338HDBI
M[<>EM+B&.(-+@E,\;W/)HF[3VC]]=.+>78[5,@KD4#RFRW503RK4X)+/;2=1
M!561RMR3V@_,\M:$4N*`M025%3=`">9P'_3X*_\`>XI]WEM^ZNI/@+#!L\N3
M:K<TV94FJ1\5*R#.L\>236F`V+H(ZN)&H_N"O<![J"F`2#:'8.?/N,F9K>VN
M1K>PG)'A.*H75GFHE!KE3B][W(-`$9Q46]J2:NR4^UGL%H9&E[DNP6:EX0RI
M4+*XLJ+@Y`!2J<<8H.Y2:QJ=X5HEM&Z308K/ZMH-TBC_`/.2<WX4<_QX=_G0
M_4$O]A^Y6'NUI;<;4D?2\>)89+HMMM0F404T#ZJ)*>)Y@)QALIHHRXEPQ*T3
ML>ZF&00[%;6:NM^OFKK?K4[`BP65J96X4D*=5[(`H3V8[N-Y&Z+2TUJNM8'!
M]2$T[I;*ZNCZUG/:=M+LZTS5?$M+:*0$+7Q6@U([<$L[^,QC6:."K/;.#C08
M)[V-M&Y^C]4!B?89*+%<Z-S"2DAI8Z':5]1P'N#X968.&H*]LU['8C`IMWET
M3N-J7<.XW"%8)#\%H(CQ7DE.5:&QUBI[<$L+B*.(`N%56XC>YY("CVG]$[X:
M>D.2+):)D%]Y.1QQLMU*1QIQ.#RW%L\4<04)L<K<@GTK^:`\`BX@G@#5OA7`
M?]/@B?WN*T+\#J3_`,^^$^)<_N+X#[149_BLE>?+KX81ZF>[7RU_<F-':/U4
M3LBXG[S?CNE+;+24E!5P*B>>//,[D?RGQO(:QH%*[2MAB\`(S*[@3'Y+\E12
M!&0H(85^M3F<7[?>23R2'_$TT;QWE1*P-`W[44[)EBYMPVW`0I!<<5EZ16@Q
MGEGG%TV!KLVEQ-,MRLUK=!<0C+C+?BQV@W1;[KB6TDCAQ/$X/W&ZDMXFAOBD
M<X-_:JQ,#B:Y!!=)RXJ8Z4$>(\X$55R"?>..[K?.@#`TC4]P&.[:IACU5X!*
MTOMJ;4M"@I*:U([L,6W#'-+FD$!"+36B2VJ5(EP_'<H@K4KPP!R2#08P=KNI
M;B`R.PU$T^&Q$F8&NH$7'D37I\B.'!X+`2,^7B5'F,9;>>XEN'QAWACIC3:K
M.:T-!IB4;*EO(G18K5"7<RG2>Q*1C3=7<C9XH6>:I=\`JL8"TN.Q$W*Y/,3(
M\9D`EP%3A-.`'+GC/W3N3XIF1,\P)*O#$'-)*51W7512ZL@*()&:E!^$C&ZV
MF>82]QQX_P`D)S1JHD4&Y2')2(\DY75`J`0`I!`_:'+"RQ[C*^81R&CCNQ;^
MU&DB`;4*N=_MSG=-686.TJ5]]7-!!<0"2PP>"E\.T\ACVW;;3W':G=(2F[GT
MB@S*SGH/1%SUAJ6-98R%H;<.>;)4#1MD'VU$GM/9A]<W#8F%Q2Z*,O=1;)@P
MX>G(5OL-K93&A,MY$.J%$@)_Q4K'SCNO=)&SM9EKS><AP^*]%!`W1\-B=XRE
M*43XX=`[``*8/:N+B?[@?R4/%-E$D^\77)K[!6F.VS0`JZEU[17LPO/<7OG?
M'41-9OS=_)%]H!H.=5W"F2'9KK%0['0D$2$B@S$]."V-[(^=T?7&!UC?N59(
MP&@Y'<BYUPEHN"(L9O.`V7'B.8'92N!7_<)FW`BB%:-U.WJT<32S44=:)C\N
M,77:<5$)`X*`'8H>G&GL]W)<1%[Z9X;^?%4G8&F@13\Z4JXKBL)JAIL*6H"I
MS'D..,UQ?3&Y,4?2UM305QW*[8VZ-1VE*X*IBHX,M(0]4^RGCP[*X96#IS'6
M8`/X;D*0-KX<DC8N+LAUX*<3&2TLH2A0JLT]XUPKA[B^9[ZN$0:ZE#F>**Z(
M-`PK5&6Z9(??D-K`6RT0&I`%`NO,4[L:>VWLDKWM=XF-R?O59HPT`C,[%Q.G
MS$3VXT9O.G(7'J<P.0I7`;^^F;<-BB%?"7.W\%:.)I:7%&6>8_+CJ==H/;*4
M)Y*`'ZP].#]GO)+B,O?3JH-_/BJ3L#30+F;="AWX>,DN.U_B+`)2V.^G;BE]
MW72[VXAJ?M-*AOQ_Z5HX:BIR0VJXKDAUI])1(9510(IF3V*%?3BW:>XNG#F2
M"DC#CLJ-A431!M",BO725)C^%X"@5O.);0@BO/F:_@Q3NMS-"6^V<7N#0*+H
M6-=6NQ+6DN)'MKSGTTIAI"Q[1XG:N5$%Q&Q)+?-=E/RJ@!AI?AM'M-![6,';
M[U\\DM>ACM+?FBRQAH&\KB3<'4W!,049;R9R^OD>Y.`W7<7BX$(HQM*ZC_`*
MS(AIU9KE$Z1]X-1VU"2TL$NK2*>'3E^/%([Z47+8FD2M/4?I4F,:"3@?XHZ[
M3'HT=/@`%]U:6VP>(JKM.-7=[Q\$8]OK>X-'-4@C#CCD$C<N\Q"VHBFPF<IP
M(4/=*.U:<+9.[SM+82`)RX#@6_4$40--7`^&B><>G61(YO6GR?YG/"N^ZA]O
MU9HL>6U*6O+3T\O=Y>K&^'H&7+)#=F@'GGIZ?K_HP,?=/3EZOZ*=B\[U(Z>K
MWO\`3WXF?-O3GM^7%<$5-Z4^5S/F_1@%_D.CU?)6CYKT3R%>7V]'3Z\1:?;/
M1Z<N:Y^>U&L>4GI^IT^K&JWZ!ERR579KS74YT]7N\_K=^*P]3NG/9GS7.R"`
M_:!T=)Y]?J[L0?NCIR]7]%VQ)YO6/)Y?[G/&.]Z_\?JS1(\MJ.1]D]SD>71@
M\?V/)EZ50]2+@]OE?R^>!V&W[?I5I.:8K_\`U(_TCI'V[SOT8=1Y>;DL;\]B
M/TU]I>_I?0/Z?U\_>_9Q$N7FYJT?+DGN5Y1Z/YG3A;>='E]62T,SVHN#TJ\K
M^5].`V&1Z/2K2<US.ZD^3_,YX'?=0^WZLU,?-*&/*'1]3IQMMNCR^G)#=F@3
M]H5T<A^_Z^[$-^Z>G+U+MB\Q[_1U'H^GOQ%KYNG/R_/BN<O-^<YT=G3U?6Q,
M7W'=/+/FN.01N-*JD,OS1Y'U^K">\Z_\?JS1X\MJ5M>6GI^IR]6&</0,N62"
M[-<CSST<A^]^C`Q]T].7J_HIV((_^YT=1Z/I[\1;9NZ>KR_/BN=L0L<W.CJ]
MS_5WXZV\W3GL^?%2[8O#[0KHY#]_U]V)'WCTY>I1L0N];?3S][G]7OQ,W4WI
MSV_+BN:C,:%5%L=*NCJ/1R]??C-;Y'ISV?\`,U9R*F^6/*Y_[O+U8#?](Z/5
M\E://;R0P_+/E_R^6)L>GR>E=)GM1CW-OHZO>^COP:?-O3GM^7%5:N'/M#?E
6]O5U_5Q27[K>CGU<E(R.:/QK5%__V3\_
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
