Document:

EX-10.1

 Exhibit 10.1 

16 June 2014 
 Serge Dupuis 

3630 Thurloe Drive 
 Rockledge, Florida 32955 

Dear Serge: 
 We are pleased to invite you to
join our Leadership Team and to offer you the full-time position of Chief Financial Officer and Treasurer of Breeze-Eastern Corporation (the “Company”) in accordance with the following terms: 

 

			
	 Position:
	  	Chief Financial Officer and Treasurer, effective date of June 16, 2014 (your “Company Hire Date”). In this capacity, you shall devote your best efforts and your full business time and attention to the performance of
the services customarily incident to such office and position and to such other services of a senior executive nature as may be reasonably requested by the Chief Executive Officer, other Officers, or the Board of Directors (the “Board”) of
the Company, which may include services for one or more subsidiaries or affiliates of the Company. You shall report to the Chief Executive Officer of the Company. You will not be a member of the Board of Directors but will be asked to attend most
meetings of the Board.
		
	 Salary:
	  	$275,000 per year, effective starting on your Company Hire Date. Your salary will be paid biweekly. You will be eligible for periodic salary increases subject to the Company’s policies on employee evaluation and compensation
and the approval of the Board.
		
	 Bonus:
	  	Also effective on your Company Hire Date you shall become eligible to receive a one-time cash signing bonus of $75,000 which shall be paid to you less applicable taxes and other withholdings, on the first pay period following your
Company Hire Date. If you leave before one year of continuous employment, you are required to return the total amount of this bonus. You will also participate as provided herein in the Breeze-Eastern Incentive Compensation Plan (“Annual
Plan”), as amended from time to time with a target award of 50% of your base salary as of the end of the corresponding Fiscal Year. In accordance with the Plan, all awards are paid out in a percentage of cash and restricted stock in the
Company.
		
	 Stock:
	  	You will be eligible to purchase two hundred thousand (200,000) shares of Breeze-Eastern common stock, terms and details of which are outlined in Appendix ‘A’.
		
	 Severance:
	  	In the event you are terminated by the Company without cause at any time after the first ninety (90) days of employment, you will receive severance pay equal to six month’s annual salary in effect at the time of
termination, but exclusive of bonuses, and the continuation of employee benefits for the same period.
		
	 Change of

Control:
	  	In the event of a change of control, which shall be defined as set out in the Stock Option Agreement, and your termination or resignation for good reason, as hereinafter defined, within 24 months of the change of control, you
would receive a cash payment equal to one year’s base pay and the average of your bonuses for prior two years (or one year if you have not yet received two bonuses). In addition, the vesting of all stock options and restricted shares would
accelerate upon a change in control. Payments received upon a change of control and your termination or

			
		  	resignation for good reason would be in lieu of any and all payments you would receive upon severance. “Termination” shall mean a termination that is not voluntary or is other than for cause and “resignation for good
reason” shall mean a resignation following a reduction in compensation, benefits or responsibilities, reporting to anybody other than the CEO, or failure by the Company to obtain an agreement from any successor or assignee legal entity to
assume and perform the obligations set out in this paragraph.
		
	401(k):	  	As a Company employee, you will be eligible to participate in the Breeze-Eastern Retirement Savings Plan in accordance with the provisions of the plan.
		
	Health:	  	You will be entitled to the normal benefits accorded the Company’s salaried employees, which currently include major medical, hospitalization, vision, dental and prescriptions and are eligible day one of employment. The
specifics of these benefits are subject to modification or termination at any time.
		
	Vacation:	  	Four (4) weeks. You will also receive personal days and sick days in accordance with Company policies and are eligible day one of employment.
		
	Relocation:	  	The Company will, subject to the Company’s prior approval of expenses, pay for relocation expenses for commission on sale of home, packing, shipping household goods, and unpacking at your new residence. The Company will also
pay for two (2) house hunting trips as well as up to four months of storage to accommodate move-in dates. The Company will also pay for four months of temporary housing accommodations along with flights to and from Florida until the final move not
to exceed four months. The Company will “gross up” taxable expenses upon reimbursement so that there is no out-of-pocket cost to you. If you leave before one year of continuous employment, you are required to return the total amount of
relocation assistance provided.
		
	Other:	  	The Company’s Employee Handbook contains illustrations of other benefits, such as tuition reimbursement, etc., which are available to all Company employees.

 The Company maintains an employment at will policy, and by acceptance of employment with the Company you
acknowledge and agree to such policy. The Company reserves the right to amend or change any of its benefit programs at its discretion. Terms of your employment, including the at-will policy, may not be modified by any oral or implied agreement with
any officer of the Company or by a writing unless approved by the Board. As an officer of Breeze-Eastern Corporation, you will be subject to certain SEC requirements and restrictions upon your ability to buy and sell securities of the Company. You
will be considered a Section 16(b) employee, subject to SEC reporting of your holdings, and changes thereto, of Company stock. 
 As a
condition of your employment, you agree to become familiar with and comply with the provisions of the Company’s policies and procedures and you agree to sign and agree to comply with any non-disclosure of confidential information/trade secret
agreements and any patent and invention assignment agreements specified in such policies and procedures. These policies may be, and are, modified from time to time. It is your responsibility to maintain an up to date knowledge of these policies and
procedures. 

 In recognition of the risks and obligations you will undertake in accepting a position as an
officer in the Company, Breeze-Eastern Corporation will enter into an indemnification agreement with you relative to claims brought against you in your capacity as an officer of the Company. This agreement will be provided under separate cover. The
Company maintains a Directors and Officers Insurance policy as added protection. 
 If the above offer is acceptable to you, please sign
both copies of this letter, keep one copy for your files and return the other copy to me. If you have any questions about any of the items noted above, please do not hesitate to call me. 

We are very enthusiastic about having you join our team. 

Very truly yours, 
 /s/ Brad
Pedersen 
 Brad Pedersen 
  

	
	Agreed and Accepted
	
	/s/ Serge Dupuis
	Serge Dupuis

 APPENDIX A 

BREEZE-EASTERN CORPORATION 

INCENTIVE STOCK OPTION AGREEMENT 

Agreement dated as of June 16, 2014 between Breeze-Eastern Corporation, a Delaware corporation
(the “Company”), and Serge Dupuis (“Optionee”), residing at 3630 Thurloe Drive, Rockledge, Florida 32955. 
 Whereas,
pursuant to the 2012 Incentive Plan of the Company (the “Plan”), the Incentive & Compensation Committee of the Board of Directors has authorized the granting to Optionee of a stock option to purchase shares of common stock of the
Company upon the terms and conditions hereinafter stated. The option granted herein is intended to qualify as an incentive stock option within the meaning of Section 422 of the Code. Terms not defined herein shall have the meanings ascribed
thereto under the Plan. 
 NOW THEREFORE, in consideration of the covenants herein set forth, the parties agree as follows: 

 

	 	1.	Shares & Price. The Company grants to Optionee the right to purchase (“Option”), upon and subject to the terms and conditions herein stated and the terms and conditions of the Plan, all or any
part of 200,000 shares of common stock ($.01 par value) of the Company (the “Shares”), for cash at the price of $12.78 per share (the “Exercise Price”), which represents the opening Fair Market Value per share of the
Company’s common stock as of the date first written above, which shall be referred to herein as the “Grant Date.” Except for stock splits and similar transactions, as set forth in Section 3 of the Plan and Treasury Regulation
Section 1.409A-1(b)(5)(v)(H), the Exercise Price never shall be reduced such that it is less than the Fair Market Value per share of the Company’s common stock as of the Grant Date. 

 

	 	2.	Term of Option. This Option shall expire on June 16, 2024. 

  

	 	3.	Vesting. The Option shall vest as follows: 

  

	 	(i)	options to purchase twenty five thousand (25,000) Shares will vest immediately upon the grant hereof; 

  

	 	(ii)	options to purchase twenty five thousand (25,000) will vest when the average closing price of the Common Stock for the preceding thirty (30) days (the “Trailing Price”) exceeds ten dollars and
seventy-five cents ($10.75); 

  

	 	(iii)	at any time after the first anniversary of the Options Issue Date, (A) options to purchase twenty five thousand(25,000) Shares will vest when the Trailing Price exceeds eleven dollars and seventy-five cents
($11.75), and (B) options to purchase twenty five thousand(25,000) Shares will vest when the Trailing Price exceeds twelve dollars and seventy-five cents ($12.75); 

 

	 	(iv)	at any time after the second anniversary of the Option Issue Date, (A) options to purchase twenty five thousand (25,000) Shares will vest when the Trailing Price exceeds thirteen dollars and seventy-five cents
($13.75), and (B) options to purchase twenty five thousand (25,000) Shares will vest when the Trailing Price exceeds fourteen dollars and seventy-five cents ($14.75); and 

	 	(v)	at any time after the third anniversary of the Option Issue Date, (A) options to purchase twenty five thousand (25,000) Shares will vest when the Trailing Price exceeds fifteen dollars and seventy-five cents
($15.75), and (B) options to purchase twenty five thousand (25,000) Shares will vest when the Trailing Price exceeds sixteen dollars and seventy-five cents ($16.75). 

 

	 	4.	Exercise. This Option may only be exercised by delivery to the Company of (i) a written notice of exercise, in form acceptable to the Company, stating the number of Shares then being purchased hereunder, and
(ii) a check or cash, in the amount of the “Aggregate Exercise Price” (the number of Shares being purchased multiplied by Exercise Price) of such Shares (or, at the discretion of the Board of Directors, with previously acquired shares
of common stock of Company with a Fair Market Value, as of the date of exercise, equal to the Aggregate Exercise Price. To the extent that the aggregate Fair Market Value of stock with respect to which incentive stock options are exercisable for the
first time by the Optionee during any calendar year exceeds (under all plans of the Employer) $100,000, such options shall be treated as options that are not incentive stock options. The rule in the immediately preceding sentence shall be applied by
taking options into account in the order in which they were granted. 

  

	 	5.	Termination of Employment. If Optionee ceases to be employed by the Company or any parent corporation (as defined in Section 424(e) of the Code) or subsidiary corporation (as defined in Section 424(f)
of the Code) thereof (collectively, the “Employer”) for any reason other than his death, disability or Retirement (as defined in Paragraph 7(a) below), Optionee shall have the right, at any time within three (3) months after such
termination of employment and prior to the expiration of this Option pursuant to Paragraph 2 hereof, to exercise this Option to the extent, but only to the extent, that this Option was exercisable and had not previously been exercised at the date of
such termination of employment; provided, however, that all rights under this Option shall expire in any event on the day specified in Paragraph 2 hereof or three (3) months after Optionee terminates employment, whichever first occurs.

  

	 	6.	Death of Optionee & No Assignment. The Option shall not be assignable or transferable except by will or by the laws of descent and distribution and shall be exercisable during his lifetime only by the
Optionee. If Optionee shall become disabled or die while in the employ of any entity comprising the Employer, the Optionee or the person entitled to succeed to his rights hereunder may exercise this Option until the first to occur of (i) the
date one year from the date of the Optionee’s disability or death, or (ii) the date such Option expires pursuant to Paragraph 2 hereof to the extent that Optionee was entitled to exercise this Option at the date of his disability or death.
For purposes of this Agreement, “disability” shall have the meaning ascribed thereto in Section 22(e)(3) of the Code. 

  

	 	7.	Retirement. 

 (a) “Retirement” and “Retire(s)” are
defined to mean that the Optionee ceases to be employed by the Company for other than Cause after reaching sixty (60) years of age and having not less than ten (10) Years of Service with any entity comprising the Employer. 

(b) Notwithstanding any other provision of this Agreement, if Optionee Retires, then if this Option was granted to Optionee
more than six (6) months prior to Optionee’s Retirement, this Option shall be deemed to be fully vested and immediately exercisable at the date of Retirement. 

 (c) Optionee, or any person entitled to succeed to his rights hereunder, shall
have the right, at any time within three (3) months after Retirement and prior to the expiration of this Option, to exercise this Option to the extent, but only to the extent, that this Option was exercisable and had not previously been
exercised at the date of Retirement (after giving effect to the provisions of Paragraph 7(b) above). 
 (d) Provided,
however, that all rights under this option shall expire in any event on the day specified herein as the date of Option expiration or three (3) months after the date of Optionee’s Retirement, whichever first occurs. 

 

	 	8.	Employment of Optionee. In consideration of the granting of this Option by the Company, the Optionee agrees to render faithful and efficient services to the Employer, with such duties and responsibilities as the
Employer shall from time to time prescribe, for a period of at least one year from the date this Option is granted or until Optionee Retires as defined in Paragraph 7(a) above, whichever first occurs. Nothing in this Agreement or in the Plan shall
confer upon the Optionee any right to continue in the employ of the Employer thereof or shall interfere with or restrict in any way the rights of the Employer, which are hereby expressly reserved, to discharge the Optionee at any time for any reason
whatsoever, with or without good Cause. 

  

	 	9.	No Rights as Stockholder. Optionee shall have no rights as a stockholder with respect to the Shares covered by the Option until the date of the issuance of stock certificates to him. No adjustment will be made
for dividends or other rights for which the record date is prior to the date such stock certificates are issued pursuant to the exercise of the Option granted hereunder. 

 

	 	10.	Modification and Termination. The rights of Optionee are subject to modification and termination in certain events as provided in the Plan. 

 

	 	11.	Shares Purchased for Investment. Optionee represents and agrees that if he exercises this Option in whole or in part, he shall acquire the shares upon such exercise for the purpose of investment and not with a
view to their resale or distribution. The Company reserves the right to include a legend on each certificate representing shares subject to this Option, stating in effect that such shares have not been registered under the Securities Act of 1933, as
amended. 

  

	 	12.	This Agreement Subject to Plan. This Agreement is made pursuant to all of the provisions of the Plan, and is intended, and shall be interpreted in a manner, to comply therewith. Any provision hereof inconsistent
with the Plan shall be superseded and governed by the Plan. 

  

	 	13.	Gender. Unless the context otherwise requires, the masculine gender includes the feminine. 

  

	 	14.	Notices. Any notices or other communication required or permitted hereunder shall be sufficiently given if delivered personally or sent by registered or certified mail, postage prepaid, to the Company at its
corporate headquarters, and to the Optionee at the address above, or to such other address as shall be furnished in writing by either party to the other party, and shall be deemed to have been given as of the date so delivered or deposited in the
United States mail, as the case may be. 

 IN WITNESS WHEREOF, the parties hereto have executed this agreement. 

 

			
	 BREEZE-EASTERN CORPORATION

(“COMPANY”)

		
		 	 /s/ Brad Pedersen

	Name:	 	Brad Pedersen
	Title:	 	President and Chief Executive Officer
		
		 	 /s/ Serge Dupuis

		 	Optionee

 Grant Number:EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 
 between

 CHESAPEAKE OILFIELD OPERATING, L.L.C. 

and 
 Karl Blanchard 

Effective June 9, 2014 

 EMPLOYMENT AGREEMENT 

THIS AGREEMENT is made effective June 9, 2014 (the “Effective Date”) between CHESAPEAKE OILFIELD OPERATING, L.L.C., an Oklahoma
limited liability company (the “Company”) and Karl Blanchard an individual (the “Executive”). 
 W I T N E S S E T H:

 WHEREAS, the Company desires to retain the services of the Executive and the Executive desires to make the Executive’s services
available to the Company. 
 NOW, THEREFORE, in consideration of the mutual promises herein contained, the Company and the Executive agree
as follows: 
  

	1.	Employment. The Company hereby employs the Executive and the Executive hereby accepts such employment subject to the terms and conditions contained in this Agreement. The Executive is engaged as an Executive of
the Company, and the Executive and the Company do not intend to create a joint venture, partnership or other relationship which might impose a fiduciary obligation on the Executive or the Company in the performance of this Agreement.

  

	2.	Executive’s Duties. The Executive is employed on a full-time basis. Throughout the term of this Agreement, the Executive will use the Executive’s best efforts and due diligence to assist the Company in
achieving the most profitable operation of the Company and the Company’s affiliated entities consistent with developing and maintaining a quality business operation. The Executive shall also devote all of Executive’s working time,
attention and energies to the performance of Executive’s duties and responsibilities under this Agreement. 

  

	 	2.1	Specific Duties. The Executive will serve as Chief Operating Officer for the Company, and in such other positions as might be mutually agreed upon by the parties. The Executive shall perform all of the duties
required to fully and faithfully execute the office and position to which the Executive is appointed, and such other duties as may be reasonably requested by the Executive’s supervisor. During the term of this Agreement, the Executive may be
nominated for election or appointed to serve as a director or officer of any of the Company’s affiliated entities as determined in such affiliates’ Board of Directors’ sole discretion. The services of the Executive will be requested
and directed by the Chief Executive Officer of the Company. 

	 	2.2	Rules and Regulations. The Company has issued various policies and procedures applicable to employees and the Executive including an Employment Policies Manual which sets forth the general human resources
policies of the Company and addresses frequently asked questions regarding the Company. The Executive agrees to comply with such policies and procedures except to the extent inconsistent with this Agreement. Such policies and procedures may be
changed or adopted in the sole discretion of the Company without advance notice. 

  

	3.	Other Activities. Except as provided in this Agreement or approved by the Compensation Committee, or its designee, as applicable, in writing, the Executive agrees not to: (a) engage in other operating
business activities independent of the Company; (b) serve as a general partner, officer, executive, director or member of any corporation, partnership, company or firm; or (c) directly or indirectly invest, participate or engage in the Oil
and Gas Business. For purposes of this Agreement the term “Oil and Gas Business” means: (i) producing oil and gas; (ii) drilling, owning or operating an interest in oil and gas leases or wells; (iii) providing material or
services to the Oil and Gas Business; (iv) refining, processing, gathering, compressing, transporting or marketing oil or gas; or (v) owning an interest in or assisting any corporation, partnership, company, entity or person in any of the
foregoing. The foregoing will not prohibit: (v) ownership of publicly traded securities; (w) ownership of royalty interests where the Executive owns or previously owned the surface of the land covered in whole or in part by the royalty
interest and the ownership of the royalty interest is incidental to the ownership of such surface estate; (x) ownership of royalty interests, overriding royalty interests, working interests or other interests in oil and gas owned prior to the
Executive’s date of first employment with the Company and disclosed to the Company in writing; (y) ownership of royalty interests, overriding royalty interests, working interests or other interests in oil and gas acquired by the Executive
through a bona fide gift or inheritance subject to disclosure by Executive to the Company in writing; or (z) service as an officer or director of a not-for-profit organization so long as such activity does not materially interfere with
Executive’s obligations under this Agreement. If the Executive serves as a director or officer of a not-for-profit organization, the Executive shall disclose the name of the organization and their involvement in an annual disclosure statement,
the form of which shall be provided by the Company. 

  

	4.	Executive’s Compensation. The Company agrees to compensate the Executive as follows: 

  

	 	4.1	Base Salary. A base salary (the “Base Salary”), at the initial annual rate of not less than Four Hundred Twenty-Five Thousand ($425,000.00) will be paid to the Executive in regular installments in
accordance with the Company’s designated payroll schedule, increasing to not less than Four Hundred Seventy-Five Thousand Dollars ($475,000.00) not later than June 9. 2015 and increasing to not less than Five Hundred Twenty-Five Thousand
Dollars ($525,000.00) not later than June 9, 2016 assuming the Executive’s continued employment with the Company at the time of any salary increase. 

	 	4.2	Bonus. In addition to the Base Salary described in paragraph 4.1 of this Agreement, the Executive shall be eligible for an annual bonus for each fiscal year during the Term on the same basis as other executive
officers under the Company’s then current annual incentive plan which shall be payable in accordance with the terms of such plan; provided that the Company will pay to the Executive bonus compensation of not less than Five Hundred Twenty-Five
Thousand Dollars ($525,000.00), payable not later than March 15, 2015, bonus compensation of not less than Six Hundred Thousand Dollars ($600,000.00), payable not later than March 15, 2016, and bonus compensation of not less than Seven Hundred
Thousand Dollars ($700,000.00), payable not later than March 15, 2017. In order to be eligible to receive the bonus compensation set forth herein and any future bonuses, the Executive must be an active full-time Executive of the Company on the
bonus payment date(s) selected by the Company. Additionally, in the event the Executive’s employment is terminated for any reason, the Executive shall not be eligible for any bonus compensation that may have otherwise been payable after notice
of termination. 

  

	 	4.3	 Equity Compensation. In addition to the compensation set forth in paragraphs 4.1 and 4.2 of this Agreement, the Executive may periodically
receive grants of restricted stock units, options, performance units or other awards from the Chesapeake Energy Corporation’s various equity compensation plans, or in the event the Company sponsors an equity compensation plan, under the
Company’s equity compensation plan, (generally referred to as “Equity Compensation Plans”); provided that, in respect of fiscal year 2014, such grant shall (i) be made on or within 30 days after the Effective Date,
(ii) have an aggregate grant date fair value of One Million Six Hundred Thousand Dollars ($1,600,000.00), and (iii) consist of restricted stock units (with the Compensation Committee being authorized to adjust for rounding and the grant of
awards denominated in whole shares). The restricted stock units granted in respect of fiscal year 2014 shall vest in equal installments on the first, second and third anniversaries of the grant date, subject to the Executive’s continued
employment on each applicable vesting date other than as set forth in this Agreement, and have such other terms and conditions as are set forth in a separate restricted stock unit agreement. For years subsequent to fiscal year 2014, the Executive
will be granted restricted stock units or awards, as determined by the Compensation Committee, under the Equity Compensation Plans with a minimum value of One Million Six Hundred Fifty Thousand Dollars ($1,650,000.00) not later than the last
business day of June 9, 2015, and a minimum value of One Million Seven Hundred Fifty Thousand Dollars ($1,750,000.00) not later than the last business day of June 9, 2016. The corresponding number of shares or units to be awarded will be
calculated using the closing stock price as of the grant date of the award. Vesting for all equity will occur over a three (3) year period (at 33 1/3% per year in arrears) under the terms of the Equity Compensation Plans and any

	 	
applicable award agreement. Such equity compensation shall be awarded on the regularly scheduled dates selected by the Company for the granting of such equity compensation to other executives. In
order to be entitled to the equity compensation set forth herein, the Executive must be an active full time Executive of the Company on the equity grant dates. 

  

	 	4.4	Signing Bonus. The Company shall grant to Executive a cash signing bonus of Two Hundred Thousand Dollars ($200,000.00), payable thirty (30) days following the Effective Date, which shall be repayable by the
Executive if he is terminated by the Company for Cause (as described in Section 6.1.3 of this Agreement) or resigns without Good Reason (as described in Section 6.2 of this Agreement) prior to June 9, 2015. 

 

	 	4.5	Benefits. The Company will provide the Executive such retirement benefits, and such other benefits as are customarily provided to similarly situated executives of the Company and as are set forth in and governed
by the Company’s Employment Policies Manual. Additionally, the Company will provide paid time off (“PTO”) to the Executive, the amount of which will be determined in accordance with the Company’s PTO policy. No additional
compensation will be paid for failure to take PTO. The Company will also provide the Executive the opportunity to apply for coverage under the Company’s medical, life and disability plans, if any. If the Executive is accepted for coverage under
such plans, the Company will make such coverage available to the Executive on the same terms as is customarily provided by the Company to the plan participants as modified from time to time. The Executive is subject to all of the terms and
provisions of the Company’s benefit plans or policies. Executive will be entitled to receive reimbursement for all reasonable business expenses incurred by Executive in accordance with the Company’s expense reimbursement policy. All
payments for reimbursement under this Section 4.5 shall be paid promptly but in no event later than the last day of Executive’s taxable year following the taxable year in which Executive incurred such expenses. 

 

	5.	Term. The term of Executive’s employment under the provisions of this Agreement shall be for a period commencing on the Effective Date and ending on the third anniversary of the Effective Date (the
“Term”) provided, however, if during the Term of this Agreement a Change of Control occurs, the Term of this Agreement shall be extended to the later of the original expiration date of the Term or the expiration of the Change of Control
Period. For purposes of this Agreement, a “Change of Control” means the occurrence of any of the following: 

 (a)
the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of thirty percent (30%) or more of either (i) the then outstanding shares of Chesapeake Energy Corporation common stock (the “Outstanding CHK

 
Common Stock”) or (ii) the combined voting power of the then outstanding voting securities of Chesapeake Energy Corporation entitled to vote generally in the election of directors (the
“Outstanding CHK Voting Securities”). For purposes of this paragraph, the following acquisitions by a Person will not constitute a Change of Control: (i) any acquisition by Chesapeake Energy Corporation; (ii) any redemption,
share acquisition or other purchase of shares directly or indirectly by Chesapeake Energy Corporation; (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by Chesapeake Energy Corporation or any
corporation controlled by Chesapeake Energy Corporation; or (iv) any acquisition by any corporation pursuant to a transaction which complies with clauses (i), (ii) and (iii) of paragraph (c) below; 

(b) during any period of not more than twenty-four (24) months, the individuals who constitute the Board of Directors (the “Incumbent
Board”) of Chesapeake Energy Corporation as of the beginning of the period cease for any reason to constitute at least a majority of the Board of Directors. Any individual becoming a director whose election, or nomination for election by
Chesapeake Energy Corporation’s shareholders, is approved by a vote of at least a majority of the directors then comprising the Incumbent Board will be considered a member of the Incumbent Board, but any such individual whose initial assumption
of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Incumbent
Board will not be deemed a member of the Incumbent Board. 
 (c) the consummation of a reorganization, merger, consolidation or sale or other
disposition of all or substantially all of the assets of Chesapeake Energy Corporation (a “Business Combination”), unless following such Business Combination: (i) all or substantially all of the individuals and entities who were the
beneficial owners, respectively, of the Outstanding CHK Common Stock and Outstanding CHK Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than sixty percent (60%) of, respectively,
the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business
Combination (including, without limitation, a corporation which as a result of such transaction owns Chesapeake Energy Corporation or all or substantially all of Chesapeake Energy Corporation’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding CHK Common Stock and Outstanding CHK Voting Securities, as the case may be, (ii) no Person (excluding any
corporation resulting from such Business Combination or any employee benefit plan (or related 

 
trust) of Chesapeake Energy Corporation or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, thirty percent (30%) or more of,
respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership
existed prior to the Business Combination and (iii) at least a majority of the members of the Board of Directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the
initial agreement, or of the action of the Incumbent Board, providing for such Business Combination; or, 
 (d) the approval by the
shareholders of Chesapeake Energy Corporation of a complete liquidation or dissolution of Chesapeake Energy Corporation. 
 For purposes of
this Agreement, “Change of Control Period” means the twenty four (24) month period commencing on the effective date of a Change of Control. 
  

	6.	Termination. This Agreement will continue in effect until the expiration of the term stated in Section 5 of this Agreement unless earlier terminated pursuant to this Section 6. For purposes of
this Agreement, “Termination Date” shall mean: (a) if Executive’s employment is terminated by death, the date of death; (b) if Executive’s employment is terminated pursuant to Section 6.4 due to a disability,
thirty (30) days after notice of termination is provided to Executive in accordance with Section 6.4; (c) if Executive’s employment is terminated by Company without Cause or by Executive for Good Reason pursuant to Section 6.1.1
or 6.1.2, on the effective date of termination specified in the notice required by Section 6.1.1 or 6.1.2 respectively; (d) if Executive’s employment is terminated by Company for Cause pursuant to Section 6.1.3, the date on which
the notice of termination required by Section 6.1.3 is given; or (e) if Executive’s employment is terminated by Executive pursuant to Section 6.2, on the effective date of termination specified by Executive in the notice of
termination required by Section 6.2 unless the Company rejects such date as allowed by Section 6.2, in which case it would be the date specified by the Company. 

 

	 	6.1	Termination by Company. The Executive’s employment under this Agreement may be terminated prior to the expiration of the Term under the following circumstances: 

 

	 	6.1.1	Termination without Cause or for Good Reason Outside of a Change of Control Period. 

  

	 	(a)	Termination by the Companv without Cause. The Company may terminate the Executive’s employment without Cause at any time by the service of written notice of termination to the Executive specifying an
effective date of such termination not sooner than thirty (30) business days after the date of such notice. 

	 	(b)	Termination by the Executive for Good Reason. Executive may terminate employment with the Company for “Good Reason” and such termination will not be a breach of this Agreement by Executive. For purposes
of this paragraph 6.1.1(b), Good Reason shall mean the occurrence of one of the events set forth below: 

  

	 	(i)	elimination of the Executive’s job position or material reduction in duties and/or reassignment of the Executive to a new position of materially less authority; or 

 

	 	(ii)	a material reduction in the Executive’s Base Salary. 

 Notwithstanding the foregoing, the
Executive will not be deemed to have terminated for Good Reason unless: (A) the Executive provides written notice to the Company of the existence of one of the conditions described above within ninety (90) days after the Executive has
knowledge of the initial existence of the condition; (B) the Company fails to remedy the condition so identified within thirty (30) days after receipt of such notice (if capable of correction); (C) the Executive provides a notice of
termination to the Company within thirty (30) days of the expiration of the Company’s period to remedy the condition specifying an effective date for the Executive’s termination; and (D) the effective date of the Executive’s
termination of employment is within ninety (90) days after the Executive provides written notice to the Company of the existence of the condition referred to in clause (A). 

 

	 	(c)	 Obligations of the Company. In the event the Executive is Terminated without Cause or terminates employment for Good Reason outside of a Change
of Control Period, the Executive will receive as termination compensation within thirty (30) days of the Termination Date: (a) a payment of one (1) times the sum of Base Salary and Annual Bonus in a lump sum payment; (b) pro rata
vesting through the last day of the month in which the Termination Date occurs of all unvested awards granted Jo Executive under the Equity Compensation Plans (provided performance share units shall only be payable subject to the attainment of the
performance measures for the applicable performance period as provided under the terms of the applicable award agreement); (c) any Supplemental Matching Contributions to the Chesapeake Energy Corporation Amended and Restated Deferred
Compensation Plan (the “401(k) 

	 	
Make-Up Plan”) shall be immediately vested; and (e) a lump sum payment of any PTO pay accrued but unused through the Termination Date. For purposes of this Agreement “Annual
Bonus” shall be defined as the average of the annual bonus payments the Executive has received during the immediately preceding three (3) calendar years unless the Executive has been employed by the Company or held the position listed in
section 2.1 for less than fifteen (15) months prior to the Termination Date, in which case, “Annual Bonus” shall be defined as the greater of (i) the Executive’s target bonus for the year in which the Termination Date occurs
or (ii) the average of the annual bonus payments the Executive has received during the immediately preceding three (3) calendar years. The right to the foregoing termination compensation described under clauses (a), (b) and
(c) above is subject to the Executive’s execution of the Company’s severance agreement which will operate as a release of all legally waivable claims against the Company and the Executive’s compliance with all of the provisions
of this Agreement, including all post-employment obligations. 

  

	 	6.1.2	Termination without Cause or for Good Reason During a Change of Control Period. 

  

	 	(a)	Termination by the Company without Cause. The Company may terminate the Executive’s employment without Cause during a Change of Control Period at any time by the service of written notice of termination to
the Executive specifying an effective date of such termination not sooner than thirty (30) business days after the date of such notice. 

  

	 	(b)	Termination by the Executive for Good Reason. Executive may terminate employment with the Company for “Good Reason” and such termination will not be a breach of this Agreement by Executive. For purposes
of this paragraph 6.1.2(b), Good Reason during a Change of Control Period shall mean the occurrence of one of the events set forth below: 

  

	 	(i)	elimination of the Executive’s job position or material reduction in duties and/or reassignment of the Executive to a new position of materially less authority; 

 

	 	(ii)	a material reduction in Executive’s Base Salary; or 

	 	(iii)	a requirement that the Executive relocate to a location outside of a fifty (50) mile radius of the location of his/her office or principal base of operation immediately prior to the effective date of a Change of
Control. 

 Notwithstanding the foregoing, Executive will not be deemed to have terminated for Good Reason unless:
(A) Executive provides written notice to the Company of the existence of one of the conditions described above within ninety (90) days after Executive has knowledge of the initial existence of the condition; (B) the Company fails to
remedy the condition so identified within thirty (30) days after receipt of such notice (if capable of correction); (C) Executive provides a Notice of Termination to the Company within thirty (30) days of the expiration of the
Company’s period to remedy the condition specifying an effective date for the Executive’s termination; and (D) the effective date of the Executive’s termination of employment is within ninety (90) days after Executive
provides written notice to the Company of the existence of the condition referred to in clause (A). 
  

	 	(c)	Obligations of the Company. In the event the Executive is Terminated without Cause or terminates employment for Good Reason during a Change of Control Period, the Executive will receive as termination
compensation within thirty (30) days of the Termination Date: (a) a payment of two (2) times the sum of Base Salary and Annual Bonus in a lump sum payment; (b) all unvested awards granted under the Equity Compensation Plans shall
be immediately vested (provided performance share units shall only be payable subject to the attainment of the performance measures for the applicable performance period as provided under the terms of the applicable award agreement); (c) any
Supplemental Matching Contributions to the Chesapeake Energy Corporation Amended and Restated Deferred Compensation Plan (the “401(k) Make-Up Plan”) shall be immediately vested; and (d) a lump sum payment of any PTO pay accrued but
unused through the Termination Date. The right to the foregoing termination compensation described under clauses (a), (b) and (c) above is subject to the Executive’s execution of the Company’s severance agreement which will
operate as a release of all legally waivable claims against the Company and the Executive’s compliance with all of the provisions of this Agreement, including all post-employment obligations.

	 	6.1.3	Termination for Cause. The Company may terminate the employment of the Executive hereunder at any time for Cause (as hereinafter defined) (such a termination being referred to in this Agreement as a
“Termination For Cause”) by giving the Executive written notice of such termination. As used in this Agreement, “Cause” means: 

(i) the willful and continued failure of the Executive to perform substantially the Executive’s duties with the Company or one of its
affiliates (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to the Executive by the Board or the Chief Executive Officer of the Company which
specifically identifies the manner in which the Board or Chief Executive Officer believes that the Executive has not substantially performed the Executive’s duties, 

(ii) the willful engaging by the Executive in illegal conduct or gross misconduct which is materially and demonstrably injurious to the
Company. For purposes of this provision, no act, or failure to act, on the part of the Executive shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the
Executive’s action or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the instructions of the Chief Executive Officer or based
upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company, 

(iii) the failure of the Executive to relocate his primary residence to the Oklahoma City, Oklahoma metropolitan area not later than
December 31, 2014, or 
 (iv) a material breach by Executive of any of the representations in Section 14.12 of this Agreement.

 In the event this Agreement is terminated for Cause, the Company will not have any obligation to provide any further payments or benefits
to the Executive after the Termination Date other than a lump sum payment within thirty (30) days of the Termination Date of any PTO pay accrued but unused through the Termination Date. 

	 	6.2	Termination by Executive. The Executive may voluntarily terminate employment under this Agreement for any reason by the service of written notice of such termination to the Company specifying an effective date of
termination no sooner than thirty (30) days and no later than sixty (60) days after the date of such notice; provided, however, if less than thirty (30) days remain in the Term, the minimum notice required from Executive under this
Section 6.2 shall be reduced from thirty (30) to seven (7) days. The Company reserves the right to end the employment relationship at any time after the date such notice is given to the Company and to pay Executive through the
Termination Date. 

  

	 	6.3	Retirement by Executive. In the event the Executive has at least five (5) years of continuous service and is sixty (60) years of age or older and the Executive’s employment is terminated under
Sections 6.1.1 or 6.2 of this Agreement, the Executive will be: (a) eligible for continued post-retirement vesting of the unvested awards granted to the Executive under the Equity Compensation Plans (provided performance share units shall only
be payable subject to the attainment of the performance measures for the applicable performance period as provided under the terms of the applicable award agreement) and (b) eligible for accelerated vesting of the unvested Supplemental Matching
Contributions to the Chesapeake Energy Corporation Amended and Restated Deferred Compensation Plan (the “401(k) Make-Up Plan”). The right to continued vesting is subject to the Executive’s execution of the Company’s severance
agreement which will include a release of all legally waivable claims between the parties as of the effective date of the release except for the Company’s obligation to pay the foregoing severance compensation and the Executive’s
obligation to comply with all post-employment obligations under this Agreement. 

  

	 	6.4	Disability. If the Executive suffers from a physical or mental condition which in the reasonable judgment of the Company’s management prevents the Executive from being able to perform the duties specified
herein for a period of twelve (12) consecutive weeks, the Executive may be terminated by the Company. In the event the Executive is terminated due to Disability (a) all unvested awards granted to the Executive under the Equity Compensation
Plans shall be immediately vested (provided performance share units shall only be payable subject to the attainment of the performance measures for the applicable performance period as provided under the terms of the applicable award agreement); and
(b) any Supplemental Matching Contributions to the Chesapeake Energy 401(k) Make-Up Plan shall be immediately vested. Executive shall also receive a lump sum payment within thirty (30) days of the Termination Date of any PTO pay accrued
but unused through the Termination Date. The right to the foregoing compensation due under clauses (a) and (b) above is subject to the execution by the Executive or the Executive’s legal representative of the Company’s severance
agreement which will operate as a release of all legally waivable claims against the Company. In applying this Section 6.4, the Company will comply with any applicable legal requirements, including the Americans with Disabilities Act.

	 	6.5	Death of Executive. If the Executive dies during the term of this Agreement, the Company may thereafter terminate this Agreement without compensation. In the event of the Executive’s death the Company will
(a) immediately vest all unvested awards granted to the Executive under the Equity Compensation Plans (provided performance share units shall only be payable subject to the attainment of the performance measures for the applicable performance
period as provided under the terms of the applicable award agreement); and (b) immediately vest any Supplemental Matching Contributions to the Chesapeake Energy 401(k) Make-Up Plan. Executive’s beneficiaries/estate shall also receive a
lump sum payment within thirty (30) days of death of any PTO pay accrued but unused through the Termination Date. Amounts payable under this Section 6.5 shall be paid to the beneficiary designated on the Company’s universal
beneficiary designation form in effect on the date of the Executive’s death. If the Executive fails to designate a beneficiary or if such designation is ineffective, in whole or in part, any payment that would otherwise have been paid under
this Section 6.5 shall be paid to the Executive’s estate. The right to the foregoing compensation due under clauses (a) and (b) above is subject to the execution by the beneficiary, or as applicable, the administrator of the
Executive’s estate of the Company’s severance agreement which will operate as a release of all legally waivable claims against the Company. 

  

	 	6.6	 Effect of Termination. The termination of this Agreement, when accompanied by the termination of Executive’s employment with the Company,
will terminate all obligations of the Executive to render services on behalf of the Company from and after the Termination Date, provided that upon termination of this Agreement and termination of employment for any reason (other than by reason of
Executive’s death), the Executive will maintain the confidentiality of all information acquired by the Executive during the term of Executive’s employment in accordance with the terms and provisions of the Company’s Confidentiality
Agreement and the Executive shall comply with all other post employment requirements including Section 6.6 and Sections 7, 8, 9, 10, 11, 12 and 13. Except as otherwise provided in Sections 4.5 and 6 of this Agreement and payment of any PTO pay
accrued but unused through the Termination Date, no accrued bonus, severance pay or other form of compensation will be payable by the Company to the Executive by reason of the termination of this Agreement. All keys, entry cards, credit cards,
files, records, financial information, Confidential Information, research, results, test data, instructions, drawings, sketches, specifications, product data sheets, products, books, DVDs, disks, memory devices, business plans, marketing plans,
documents, correspondence, furniture, furnishings, equipment, 

	 	
supplies and other items relating to the Company in the Executive’s possession will remain the property of the Company. Upon termination of employment, the Executive will have the right to
retain and remove all personal property and effects which are owned by the Executive and located in the offices of the Company at a time determined by the Company. All such personal items will be removed from such offices no later than two
(2) days after the Termination Date, and the Company is hereby authorized to discard any items remaining and to reassign the Executive’s office space after such date. Prior to the Termination Date, the Executive will render such services
to the Company as might be reasonably required to provide for the orderly termination of the Executive’s employment. Notwithstanding the foregoing and without discharging any obligations to pay compensation to the Executive under this
Agreement, after notice of the termination, the Company may request that the Executive not provide any other services to the Company and not enter the Company’s premises before or after the Termination Date. In the event that the Executive
separates employment with the Company, Executive hereby grants consent to notification by the Company to Executive’s new employer about Executive’s rights and obligations under this Agreement. Upon such termination of employment, the
Executive further agrees to acknowledge compliance with this Agreement in a form reasonably provided by the Company. 

 If this
Agreement is not terminated pursuant to any of the preceding provisions of Section 6 or extended by mutual written agreement of the parties prior to the expiration of the Term, this Agreement and Executive’s employment under this Agreement
will end and Company will have no further obligation to provide any further payments or benefits to Executive under this Agreement after the expiration of the Term other than any PTO pay accrued but unused through the expiration of the Term. Upon
expiration of this Agreement, Executive will continue to be employed with Company on an at will basis until such employment is terminated by either party, with or without any reason. 

 

	7.	Non-Competition. For a period of one (1) year after the Executive is no longer employed by the Company for any reason, the Executive will not knowingly acquire, attempt to acquire or aid another in the
acquisition or attempted acquisition of an interest in oil and gas assets, oil and gas production, oil and gas leases, mineral interests, oil and gas wells or other such oil and gas exploration, development or production activities within any
spacing unit in which the Company owns an oil and gas interest on the date of the resignation or termination of the Executive. 

  

	8.	Non-Solicitation. The Executive agrees that during his/her employment hereunder, and for the one (1) year period immediately following the termination of employment for any reason, the Executive shall not
solicit or contact any established client or customer of the Company with a view to inducing or encouraging such established client or customer to discontinue or curtail any business relationship with the Company. The Executive further agrees that
the Executive will not request or advise any established clients, customers or suppliers of the Company to withdraw, curtail or cancel its business with the Company. 

	9.	Non-Solicitation of Employees. The Executive covenants that during the term of employment and for the one (1) year period immediately following the termination of employment for any reason, Executive will
neither directly nor indirectly induce nor attempt to induce any executive or employee of the Company to terminate his or her employment with the Company to go to work for any other company. 

 

	10.	Reasonableness. The Company and the Executive have attempted to specify a reasonable period of time and reasonable restrictions to which this Agreement shall apply. The Company and Executive agree that if a court
or administrative body should subsequently determine that the terms of this Agreement are greater than reasonably necessary to protect the Company’s interest, the Company agrees to waive those terms which are found by a court or administrative
body to be greater than reasonably necessary to protect the Company’s interest and to request that the court or administrative body reform this Agreement specifying a reasonable period of time and such other reasonable restrictions as the court
or administrative body deems necessary. 

  

	11.	Equitable Relief. The Executive acknowledges that the services to be rendered by Executive are of a special, unique, unusual, extraordinary, and intellectual character, which gives them a peculiar value, and the
loss of which cannot reasonably or adequately be compensated in damages in an action at law; and that a breach by the Executive of any of the provisions contained in this Agreement will cause the Company irreparable injury and damage. The Executive
further acknowledges that the Executive possesses unique skills, knowledge and ability and that any material breach of the provisions of this Agreement would be extremely detrimental to the Company. By reason thereof, the Executive agrees that the
Company shall be entitled, in addition to any other remedies it may have under this Agreement or otherwise, to injunctive and other equitable relief to prevent or curtail any breach of this Agreement by him/her. 

 

	12.	Continued Litigation Assistance. The Executive will cooperate with and assist the Company and its representatives and attorneys as requested, during and after the Term, with respect to any litigation, arbitration
or other dispute resolutions by being available for interviews, depositions and/or testimony in regard to any matters in which the Executive is or has been involved or with respect to which the Executive has relevant information. The Company will
reimburse the Executive for any reasonable business expenses the Executive may have incurred in connection with this obligation. 

  

	13.	 Arbitration. Any disputes, claims or controversies between the Company and Executive including, but not limited to those arising out of or
related to this Agreement or out of the parties’ employment relationship (together, “Employment Matter”), shall be settled by arbitration as provided herein. This agreement shall

	 	
survive the termination or rescission of this Agreement. All arbitration shall be in accordance with Rules of the American Arbitration Association, including discovery, and shall be undertaken
pursuant to the Federal Arbitration Act. Arbitration will be held in Oklahoma City, Oklahoma unless the parties mutually agree to another location. The decision of the arbitrator will be enforceable in any court of competent jurisdiction. The
parties, however, agree that the Company shall be entitled to obtain injunctive or other equitable relief to enforce the provisions of this Agreement in a court of competent jurisdiction. The parties further agree that this arbitration provision is
not only applicable to the Company but its affiliates, officers, directors, employees and related parties. Executive agrees that he/she shall have no right or authority for any dispute to be brought, heard or arbitrated as a class or collective
action, or in a representative or a private attorney general capacity on behalf of a class of persons or the general public. No class, collective or representative actions are thus allowed to be arbitrated Executive agrees that he/she must pursue
any claims that he/she may have solely on an individual basis through arbitration. The Company will reimburse the Executive for all legal fees and expenses reasonably incurred (provided such legal fees are calculated on an hourly, and not on a
contingency fee basis), as well as costs and expenses reasonably incurred in connection with an Employment Matter. Reimbursement by the Company shall be made as soon as practicable following final resolution of the Employment Matter to the extent
the Company receives appropriate documentation of such attorney’s fees, costs and expenses which shall be provided no later than December 31 of the year in which the Employment Matter is resolved, provided, however, the Executive will only
be entitled to reimbursement if the Executive is successful in respect of one or more material claims or defenses brought, raised or pursued in connection with such Employment Matter. Payment of reimbursement for such fees and expenses shall be made
no later than December 31 of the year immediately following the year of resolution. 

  

	14	Miscellaneous. The parties further agree as follows: 

  

	 	14.1	Time. Time is of the essence of each provision of this Agreement. 

  

	 	14.2	Notices. Any notice, payment, demand or communication required or permitted to be given by any provision of this Agreement will be in writing and will be deemed to have been given when delivered personally or by
express mail to the party designated to receive such notice, or on the date following the day sent by overnight courier, or on the third business day after the same is sent by certified mail, postage and charges prepaid, directed to the following
address or to such other or additional addresses as any party might designate by written notice to the other party: 

  

							
		 	To the Company:	 		  	Chesapeake Energy Corporation
		 		 		  	 6100 N. Western Ave.
 Oklahoma City, OK
73118

		 		 		  	Attn: Jay Hawkins

					
	 	 	To the Executive:            	  	The most recent home address
		 		  	in the records of the Company.
		 		  	

  

	 	14.3	Assignment. Neither this Agreement nor any of the parties’ rights or obligations hereunder can be transferred or assigned without the prior written consent of the other parties to this Agreement; provided,
however, the Company may assign this Agreement to any wholly owned affiliate or subsidiary of Chesapeake Energy Corporation without Executive’s consent as well as to any purchaser of the Company. 

 

	 	14.4	Construction. If any provision of this Agreement or the application thereof to any person or circumstances is determined, to any extent, to be invalid or unenforceable, the remainder of this Agreement, or the
application of such provision to persons or circumstances other than those as to which the same is held invalid or unenforceable, will not be affected thereby, and each term and provision of this Agreement will be valid and enforceable to the
fullest extent permitted by law. Except as provided for in Section 13, this Agreement is intended to be interpreted, construed and enforced in accordance with the laws of the State of Oklahoma. 

 

	 	14.5	Entire Agreement. This Agreement, any documents executed in connection with this Agreement, any documents specifically referred to in this Agreement and the Employment Policies Manual constitute the entire
agreement between the parties hereto with respect to the subject matter herein contained, and no modification hereof will be effective unless made by a supplemental written agreement executed by all of the parties hereto. 

 

	 	14.6	Binding Effect. This Agreement will be binding on the parties and their respective successors, legal representatives and permitted assigns. In the event of a merger, consolidation, combination, dissolution or
liquidation of the Company, the performance of this Agreement will be assumed by any entity which succeeds to or is transferred the business of the Company as a result thereof, and the Executive waives the consent requirement of Section 14.3 to
effect such assumption. 

  

	 	14.7	Supersession. On execution of this Agreement by the Company and the Executive, the relationship between the Company and the Executive will be bound by the terms of this Agreement, any documents executed in
connection with this Agreement, any documents specifically referred to in this Agreement and the Employment Policies Manual. In the event of a conflict between the Employment Policies Manual and this Agreement, this Agreement will control in all
respects. 

	 	14.8	Third-Party Beneficiary. The Company’s affiliated entities and partnerships are beneficiaries of all terms and provisions of this Agreement and entitled to all rights hereunder. 

 

	 	14.9	Section 409A. This Agreement is intended to be exempt from Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and related U.S. Treasury regulations or official
pronouncements (“Section 409A”) and any ambiguous provision will be construed in a manner that is compliant with such exemption; provided, however, if and to the extent that any compensation payable pursuant to this Agreement is determined
to be subject to Section 409A, this Agreement will be construed in a manner that will comply with Section 409A. Notwithstanding any provision to the contrary in this Agreement, if the Executive is deemed on his/her Termination Date to be a
“specified employee” within the meaning of that term under Section 409A, then any payments and benefits under this Agreement that are subject to Section 409A and paid by reason of a termination of employment shall be made or
provided on the later of (a) the payment date set forth in this Agreement or (b) the date that is the earliest of (i) the expiration of the six-month period measured from the date of the Executive’s termination of employment or
(ii) the date of the Executive’s death (the “Delay Period”). Payments and benefits subject to the Delay Period shall be paid or provided to the Executive without interest for such delay. Termination of employment as used
throughout this Agreement shall refer to a separation from service within the meaning of Section 409A. To the extent required to comply with Section 409A, references to a “resignation,” “termination,” “termination of
employment” or like terms throughout this Agreement shall be interpreted consistent with the meaning of “separation from service” as defined in Section 409A. 

 

	 	14.10 	Dodd-Frank Act. Notwithstanding anything in this Agreement or any other agreement between the Company and/or its related entities and Executive to the contrary, Executive acknowledges that the Dodd-Frank Wall
Street Reform and Consumer Protection Act (“Act”) may have the effect of requiring certain executives of the Company and/or its related entities to repay the Company, and for the Company to recoup from such executives, erroneously awarded
amounts of incentive-based compensation. If, and only to the extent, the Act, any rules and regulations promulgated by thereunder by the Securities and Exchange Commission or any similar federal or state law requires the Company to recoup any
erroneously awarded incentive-based compensation that the Company has paid or granted to Executive, Executive hereby agrees, even if Executive has terminated his employment with the Company, to promptly repay such erroneously awarded incentive
compensation to the Company upon its written request. This Section shall survive the termination of this Agreement. 

	 	14.11 	Maximum Payments by the Company. 

  

	 	(a)	It is the objective of this Agreement to maximize Executive’s Net After-Tax Benefit (as defined herein) if payments or benefits provided under this Agreement are subject to
excise tax under Section 4999 of the Code. Notwithstanding any other provisions of this Agreement, in the event that any payment or benefit by the Company or otherwise to or for the benefit of Executive, whether paid or payable or distributed
or distributable pursuant to the terms of this Agreement or otherwise, including, by example and not by way of limitation, acceleration by the Company or otherwise of the date of vesting or payment or rate of payment under any plan, program,
arrangement or agreement of the Company (all such payments and benefits, including the payments and benefits under Section 6 hereof, being hereinafter referred to as the “Total Payments”), would be subject (in whole or in part) to the
excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the cash severance payments shall first be reduced, and the non-cash severance payments shall thereafter be reduced, to the extent necessary so that no portion of
the Total Payments shall be subject to the Excise Tax, but only if (i) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments and after
taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments), is greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting
the net amount of federal, state and local income taxes on such Total Payments and the amount of Excise Tax to which Executive would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized
deductions and personal exemptions attributable to such unreduced Total Payments). 

  

	 	(b)	The Total Payments shall be reduced by the Company in the following order: (i) reduction of any cash severance payments otherwise payable to Executive that are exempt from Section 409A of the Code,
(ii) reduction of any other cash payments or benefits otherwise payable to Executive that are exempt from Section 409A of the Code, but excluding any payments attributable to the acceleration of vesting or payments with respect to any equity
award with respect to the Company’s common stock that is exempt from Section 409A of the Code, (iii) reduction of any other payments or benefits otherwise payable to Executive on a pro-rata basis or such other manner that complies
with Section 409A of the Code, but excluding any payments attributable to the acceleration of vesting and payments with respect to any equity award with respect to the Company’s common stock that are exempt from Section 409A of the
Code, and (iv) reduction of any payments attributable to the acceleration of vesting or payments with respect to any other equity award with respect to the Company’s common stock that are exempt from Section 409A of the Code.

	 	(c)	For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax, (i) no portion of the Total Payments the receipt or enjoyment of which Executive shall have waived
at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code shall be taken into account, (ii) no portion of the Total Payments shall be taken into account which, in the
written opinion of independent auditors of nationally recognized standing (“Independent Advisors”) selected by the Company, does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code
(including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments shall be taken into account which, in the opinion of Independent Advisors, constitutes reasonable compensation for
services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base amount” (as defined in Section 280G(b)(3) of the Code) allocable to such reasonable compensation, and (iii) the value of
any non-cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Independent Advisors in accordance with the principles of Sections 280G(d)(3) and (4) of the Code. The costs of obtaining such
determination shall be borne by the Company. 

  

	 	14.12 	Executive’s Representation. Executive represents and warrants as of the date hereof that: (i) he is not subject to any contract, arrangement, policy or understanding, or to any statute, governmental
rule or regulation, that in any way limits his ability to enter into and fully perform his obligation under this Agreement and (ii) he is not otherwise unable to enter into and fully perform his obligations under this Agreement.

 IN WITNESS WHEREOF, the undersigned have executed this Agreement effective the date first above written. 

 

					
	 CHESAPEAKE OILFIELD OPERATING, L.L.C.,

a limited liability company

		
	By:	 	/s/ James R. Webb
		 	James R. Webb
		 	Executive Vice President – General Counsel and Corporate Secretary
		
	By:	 	/s/ Karl W. Blanchard
		 	Karl W. Blanchard, Individually

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