Document:

Employment Agreement between Martha A. Burger and Chesapeake

 
EXHIBIT
10.2.9 
 
EMPLOYMENT AGREEMENT 
 
between 
 
MARTHA A. BURGER 
 
and 
 
CHESAPEAKE ENERGY CORPORATION 
 
Effective April 1, 2003 

 
TABLE OF
CONTENTS 
 

	 	 	 	 	 	 	 	  	 Page

	 1.
	 	 Employment
	  	 1

	
	 2.
	 	 Executive’s Duties
	  	 1

	 	 	 2.1
	 	 Specific Duties
	  	 1

	 	 	 2.2
	 	 Supervision
	  	 1

	 	 	 2.3
	 	 Rules and Regulations
	  	 1

	 	 	 2.4
	 	 Stock Investment
	  	 2

	
	 3.
	 	 Other Activities
	  	 2

	
	 4.
	 	 Executive’s Compensation
	  	 2

	 	 	 4.1
	 	 Base Salary
	  	 2

	 	 	 4.2
	 	 Bonus
	  	 2

	 	 	 4.3
	 	 Equity Compensation
	  	 2

	 	 	 4.4
	 	 Benefits
	  	 2

	 	 	 	 	 4.4.1
	 	 Vacation
	  	 3

	 	 	 	 	 4.4.2
	 	 Membership Dues
	  	 3

	 	 	 4.5
	 	 Change of Control Payment
	  	 3

	 	 	 4.6
	 	 Compensation Review
	  	 5

	
	 5.
	 	 Term
	  	 5

	
	 6.
	 	 Termination
	  	 5

	 	 	 6.1
	 	 Termination by Company
	  	 5

	 	 	 	 	 6.1.1
	 	 Termination without Cause
	  	 5

	 	 	 	 	 6.1.2
	 	 Termination for Cause
	  	 5

	 	 	 6.2
	 	 Termination by Executive
	  	 6

	 	 	 6.3
	 	 Incapacity of Executive
	  	 6

	 	 	 6.4
	 	 Death of Executive
	  	 6

	 	 	 6.5
	 	 Effect of Termination
	  	 6

	
	 7.
	 	 Confidentiality
	  	 7

	
	 8.
	 	 Noncompetition
	  	 7

	
	 9.
	 	 Proprietary Matters
	  	 8

 
TABLE OF
CONTENTS (continued) 

	
	 10.
	  	 Arbitration
	  	 8

	
	 11.
	  	 Miscellaneous
	  	 9

	 	  	 11.1
	 	 Time
	  	 9

	 	  	 11.2
	 	 Notices
	  	 9

	 	  	 11.3
	 	 Assignment
	  	 9

	 	  	 11.4
	 	 Construction
	  	 9

	 	  	 11.5
	 	 Entire Agreement
	  	 9

	 	  	 11.6
	 	 Binding Effect
	  	 10

	 	  	 11.7
	 	 Legal Fees
	  	 10

	 	  	 11.8
	 	 Supersession
	  	 10

 

 
EMPLOYMENT
AGREEMENT 
 
THIS AGREEMENT is made effective
April 1, 2003, between CHESAPEAKE ENERGY CORPORATION, an Oklahoma corporation (the “Company”), and MARTHA A. BURGER, an individual (the “Executive”) and replaces and supersedes that certain Employment Agreement between Company
and Executive dated July 1, 2000. 
 
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 employee 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.

 

	 	2.1	 	Specific Duties. The Executive will serve as Treasurer and Senior Vice President—Human Resources for the Company. The Executive will perform all of the
services required to fully and faithfully execute the office and position to which the Executive is appointed and such other services 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 the Company’s subsidiaries as determined in the board of directors’ sole discretion. 

 

	 	2.2	 	Supervision. The services of the Executive will be requested and directed by the Chief Financial Officer and Executive Vice President, Mr. Marcus C. Rowland,
and the Chief Executive Officer, Mr. Aubrey K. McClendon.  

 

	 	2.3	 	Rules and Regulations. The Company currently has 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 the Employment Policies Manual except to the extent inconsistent with this Agreement. The 

 

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Employment Policies Manual is subject to change without notice in the sole discretion of
the Company at any time. 
 

	 	2.4	 	Stock Investment. The Executive agrees to hold not less than one thousand (1,000) shares of the Company’s common stock during the term of this Agreement.

 
3. Other Activities. Unless the Executive
has obtained the prior written approval of the board of directors of the Company, the Executive will not: (a) engage in business independent of the Executive’s employment by the Company; (b) serve as an officer, general partner or member in any
corporation, partnership, company, or firm; (c) directly or indirectly invest in, participate in or acquire an interest in any oil and gas business, including, without limitation, (i) producing oil and gas, (ii) drilling, owning or operating oil and
gas leases or wells, (iii) providing services or materials to the oil and gas industry, (iv) marketing or refining oil or gas, or (v) owning any interest in any corporation, partnership, company or entity which conducts any of the foregoing
activities. The limitation in this paragraph 3 will not prohibit an investment by the Executive in publicly traded securities; or the continued direct ownership and operation of oil and gas interests and leases to the extent such interests were
owned by the Executive on the Executive’s first date of employment with the Company. The Executive agrees not to directly or indirectly acquire any additional oil and gas interests or increase ownership of any oil and gas interests owned by the
Executive on the Executive’s first date of employment with 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 Two Hundred Seventy Five Thousand Dollars ($275,000.00)
will be paid to the Executive in equal semi-monthly installments beginning April 15, 2003 during the term of this Agreement. 

 

	 	4.2	 	Bonus. In addition to the Base Salary described at paragraph 4.1 of this Agreement, the Company may periodically pay bonus compensation to the Executive. Any
bonus compensation will be at the absolute discretion of the Company in such amounts and at such times as the board of directors of the Company may determine. 

 

	 	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
stock options or awards from the Company’s various equity compensation plans, subject to the terms and conditions thereof. 

 

	 	4.4	 	Benefits. The Company will provide the Executive such retirement benefits, reimbursement of reasonable expenditures for dues, travel and entertainment and
such other benefits as are customarily provided by the Company and as are set forth in and governed by the Company’s Employment Policies Manual. The Company will also provide the Executive 

 

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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 following specific benefits will also be provided to the Executive at the expense of the Company: 
 

	 	4.4.1	 	Vacation. The Executive will be entitled to take three (3) weeks of paid vacation each twelve months during the term of this Agreement. No additional
compensation will be paid for failure to take vacation and no vacation may be carried forward from one twelve month period to another. 

 

	 	4.4.2	 	Membership Dues. The Company will reimburse the Executive for: (a) the monthly dues necessary to maintain a full membership in a country club in the Oklahoma
City area selected by the Executive in an amount not to exceed Five Hundred Dollars ($500.00) per month; and (b) the reasonable cost of any approved business entertainment at such country club. All other costs, including, without implied limitation,
any initiation costs, initial membership costs, personal use and business entertainment unrelated to the Company will be the sole obligation of the Executive and the Company will have no liability with respect to such amounts.

 

	 	4.5	 	Change of Control Payment. If, during the term of this Agreement, there is a “Change of Control” the Executive will be entitled to a payment (in
addition to any other amounts payable to the Executive under this Agreement or otherwise) in an amount equal to the Executive’s then current Base Salary under paragraph 4.1 of this Agreement plus the actual bonuses paid to the Executive during
the twelve (12) calendar months preceding the Change of Control under paragraph 4.2 of this Agreement or its predecessor. The right to such compensation is subject to the Executive’s continued compliance with each of the provisions of this
Agreement. If the foregoing amount is not paid within thirty (30) days after a Change of Control the unpaid amount will bear interest at the per annum rate equal to twelve percent (12%). For the purpose 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 20% or more of either (i) the then outstanding shares of common stock of the Company (the “Outstanding Company Common
Stock”) or (ii) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”). For purposes of this paragraph,
the following acquisitions by a Person will not constitute a 
 

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Change of Control: (i) any acquisition directly from the Company; (ii) any acquisition by
the Company; (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company; or (iv) any acquisition by any corporation pursuant to a transaction which
complies with clauses (i), (ii) and (iii) of paragraph (c) below; 
 
(b) the individuals who, as of the date hereof, constitute the board of directors (the “Incumbent Board”) cease for any reason to constitute at least a majority of the board of directors. Any individual becoming a
director subsequent to the date hereof whose election, or nomination for election by the Company’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 as of the date hereof, 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 as of the date hereof; 
 
(c) the consummation of a reorganization, merger, consolidation or sale or other disposition of all or
substantially all of the assets of the Company (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 Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 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 the Company or all or substantially all of the Company’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 Company Common Stock and Outstanding Company 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 the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 20% 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 
 

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Incumbent Board at the time of the execution of the initial agreement, or of the action of
the Board, providing for such Business Combination; or, 
 
(d) the approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. 
 

	 	4.6	 	Compensation Review. The compensation of the Executive will be reviewed not less frequently than annually by the board of directors of the Company.

 
5. Term. The employment relationship
evidenced by this Agreement is an “at will” employment relationship and the Company reserves the right to terminate the Executive at any time with or without cause. In the absence of such termination, this Agreement will extend for a term
of three (3) years commencing on April 1, 2003, and ending on June 30, 2006 (the “Expiration Date”). 
 
6. Termination. This Agreement will continue in effect until the expiration of the term stated at paragraph 5 of this Agreement unless earlier terminated pursuant to this paragraph 6.

 

	 	6.1	 	Termination by Company. The Company will have the following rights to terminate this Agreement: 

 

	 	6.1.1	 	Termination without Cause. The Company may terminate this Agreement 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 sixty (60) business days after the date of such notice (the “Termination Date”). In the event the Executive is terminated without cause, or the Company elects not to renew
this Agreement, the Executive will receive as termination compensation: (a) Base Salary for a period of ninety (90) days; (b) any benefits payable by operation of paragraph 4.4 of this Agreement; and (c) any vacation pay accrued through the
Termination Date. The right to the foregoing termination compensation under clause (a) above: (i) is subject to the Executive’s execution of the Company’s standard termination agreement releasing all legally waivable claims against the
Company and the Executive’s compliance with each of the provisions of this Agreement; and (ii) will be reduced by the number of days remaining in the one year period after any change of control payment under paragraph 4.5 of this Agreement.

 

	 	6.1.2	 	Termination for Cause. The Company may terminate this Agreement for cause if the Executive: (a) misappropriates the property of the Company or commits any
other act of dishonesty; (b) engages in personal misconduct which materially injures the Company; (c) willfully violates any law or regulation relating to the business of the Company which results in injury to the Company; or (d) willfully and
repeatedly fails to perform the Executive’s 

 

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duties hereunder. 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. 
 

	 	6.2	 	Termination by Executive. The Executive may voluntarily terminate this Agreement with or without cause by the service of written notice of such termination to
the Company specifying a Termination Date no sooner than thirty (30) days after the date of such notice. In the event this Agreement is terminated by the Executive, neither the Company nor the Executive will have any further obligations hereunder
including, without limitation, any obligation of the Company to provide any further payments or benefits to the Executive after the Termination Date. 

 

	 	6.3	 	Incapacity of Executive. If the Executive suffers from a physical or mental condition which in the reasonable judgment of the Company’s management
prevents the Executive in whole or in part from performing the duties specified herein for a period of three (3) consecutive months, the Executive may be terminated. Although the termination may be deemed as a termination for cause, any compensation
payable under paragraph 4 of this Agreement will be continued for ninety (90) days following the Termination Date. Notwithstanding the foregoing, the Executive’s Base Salary specified in paragraph 4.1 of this Agreement will be reduced by any
benefits payable under any disability plans. 

 

	 	6.4	 	Death of Executive. If the Executive dies during the term of this Agreement, the Company may thereafter terminate this Agreement without compensation to the
Executive’s estate except: (a) the obligation to continue the Base Salary payments under paragraph 4.1 of this Agreement for ninety (90) days following the date of the Executive’s death; and (b) the benefits described in paragraph 4.4 of
this Agreement accrued through the date of the Executive’s death. 

 

	 	6.5	 	Effect of Termination. The termination of this Agreement will terminate all obligations of the Executive to render services on behalf of the Company from and
after the Termination Date, provided that the Executive will maintain the confidentiality of all information acquired by the Executive during the term of Executive’s employment in accordance with paragraph 7 of this Agreement. Except as
otherwise provided in paragraph 6 of this Agreement, 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, furniture, furnishings, equipment, supplies and other items relating to the Company in the Executive’s possession will remain the property of the Company. 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. All such personal items will be removed from such offices no later than two (2) days after the Termination

 

6 

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.

 
7. Confidentiality. The Executive recognizes that the
nature of the Executive’s services are such that the Executive will have access to information which constitutes trade secrets, is of a confidential nature, is of great value to the Company or is the foundation on which the business of the
Company is predicated. The Executive agrees not to disclose to any person other than the Company’s employees or the Company’s legal counsel nor use for any purpose, other than the performance of this Agreement, any confidential information
(“Confidential Information”). Confidential Information includes data or material (regardless of form) which is: (a) a trade secret; (b) provided, disclosed or delivered to Executive by the Company, any officer, director, employee, agent,
attorney, accountant, consultant, or other person or entity employed by the Company in any capacity, any customer, borrower or business associate of the Company or any public authority having jurisdiction over the Company of any business activity
conducted by the Company; or (c) produced, developed, obtained or prepared by or on behalf of Executive or the Company (whether or not such information was developed in the performance of this Agreement) with respect to the Company or any assets oil
and gas prospects, business activities, officers, directors, employees, borrowers or customers of the foregoing. However, Confidential Information shall not include any information, data or material which at the time of disclosure or use was
generally available to the public other than by a breach of this Agreement, was available to the party to whom disclosed on a non-confidential basis by disclosure or access provided by the Company or a third party, or was otherwise developed or
obtained independently by the person to whom disclosed without a breach of this Agreement. On request by the Company, the Company will be entitled to the return of any Confidential Information in the possession of the Executive. The Executive also
agrees that the provisions of this paragraph 7 will survive the termination, expiration or cancellation of this Agreement for a period of three (3) years. The Executive will deliver to the Company all originals and copies of the documents or
materials containing Confidential Information. For purposes of paragraphs 7, 8, and 9 of this Agreement, the Company expressly includes any of the Company’s affiliated corporations, partnerships or entities. 
 
8. Noncompetition. For a period of twelve (12) months after Executive
is no longer employed by the Company as a result of either the resignation by the Executive pursuant to paragraph 6.2 above or termination for cause pursuant to paragraph 6.1.2 above, the Executive will not solicit, induce, entice or attempt to
entice any employee, contractor, customer, vendor or subcontractor to terminate or breach any relationship with the Company or the Company’s affiliates for the Executive’s own account or for the benefit of another party. The Executive
further agrees that the Executive will not circumvent or attempt to circumvent the foregoing agreements by any future arrangement or through the actions of a third party. 
 
9. Proprietary Matters. The Executive expressly understands and agrees that any and all improvements, inventions,
discoveries, processes, know-how or intellectual property that are generated or conceived by the Executive during the term of this Agreement, whether 
 

7 

generated or conceived during the Executive’s regular working hours or otherwise, will be the sole
and exclusive property of the Company. Whenever requested by the Company (either during the term of this Agreement or thereafter), the Executive will assign or execute any and all applications, assignments and or other instruments and do all things
which the Company deems necessary or appropriate in order to permit the Company to: (a) assign and convey or otherwise make available to the Company the sole and exclusive right, title, and interest in and to said improvements, inventions,
discoveries, processes, know-how, applications, patents, copyrights, trade names or trademarks; or (b) apply for, obtain, maintain, enforce and defend patents, copyrights, trade names, or trademarks of the United States or of foreign countries for
said improvements, inventions, discoveries, processes or know-how. However, the improvements, inventions, discoveries, processes or know-how generated or conceived by the Executive and referred to above (except as they may be included in the
patents, copyrights or registered trade names or trademarks of the Company, or corporations, partnerships or other entities which may be affiliated with the Company) shall not be exclusive property of the Company at any time after having been
disclosed or revealed or have otherwise become available to the public or to a third party on a non-confidential basis other than by a breach of this Agreement, or after they have been independently developed or discussed without a breach of this
Agreement by a third party who has no obligation to the Company or its affiliates. 
 
10. Arbitration. The parties will attempt to promptly resolve any dispute or controversy arising out of or relating to this Agreement or termination of the Executive by the Company. Any negotiations pursuant to this
paragraph 10 are confidential and will be treated as compromise and settlement negotiations for all purposes. If the parties are unable to reach a settlement amicably, the dispute will be submitted to binding arbitration before a single arbitrator
in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association. The arbitrator will be instructed and empowered to take reasonable steps to expedite the arbitration and the arbitrator’s judgment will be final
and binding upon the parties subject solely to challenge on the grounds of fraud or gross misconduct. Except for damages arising out of a breach of paragraphs 7, 8 or 9 of this Agreement, the arbitrator is not empowered to award total damages
(including compensatory damages) which exceed 200% of compensatory damages and each party hereby irrevocably waives any damages in excess of that amount. The arbitration will be held in Oklahoma County, Oklahoma. Judgment upon any verdict in
arbitration may be entered in any court of competent jurisdiction and the parties hereby consent to the jurisdiction of, and proper venue in, the federal and state courts located in Oklahoma County, Oklahoma. Each party will bear its own costs in
connection with the arbitration and the costs of the arbitrator will be borne by the party who the arbitrator determines did not prevail in the matter. Unless otherwise expressly set forth in this Agreement, the procedures specified in this
paragraph 10 will be the sole and exclusive procedures for the resolution of disputes and controversies between the parties arising out of or relating to this Agreement. Notwithstanding the foregoing, a party may seek a preliminary injunction or
other provisional judicial relief if in such party’s judgment such action is necessary to avoid irreparable damage or to preserve the status quo. 
 
11. Miscellaneous. The parties further agree as follows: 
 

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

 

8 

 

	 	11.2	 	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 telefacsimile to the party designated to receive such notice, or on the date following the day sent by overnight courier, or on the third (3rd) 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

	 	  	 Post Office Box 18496

	 	  	 Oklahoma City, OK 73154-0496

	 	  	 Attn: Aubrey K. McClendon

	
	 To the Executive:
	  	 Martha A. Burger

	 	  	 2608 West Country Club Drive

	 	  	 Oklahoma City, OK 73116

 

	 	11.3	 	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 the Company without Executive’s consent. 

 

	 	11.4	 	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. This Agreement is intended to be interpreted, construed and enforced in accordance with the laws of the State of Oklahoma and any litigation relating to this
Agreement will be conducted in a court of competent jurisdiction located in Oklahoma County, Oklahoma. 

 

	 	11.5	 	Entire Agreement. This Agreement constitutes 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. 

 

	 	11.6	 	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 paragraph 11.3 to effect such assumption. 

 

9 

 

	 	11.7	 	Legal Fees. If any party institutes an action or proceeding against any other party relating to the provisions of this Agreement or any default hereunder, the
unsuccessful party to such action or proceeding will reimburse the successful party therein for the reasonable expenses of any legal fees incurred by the successful party, except with respect to any arbitration proceeding conducted pursuant to
paragraph 10 above. 

 

	 	11.8	 	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 and the Employment Policies Manual and not by any other agreements or otherwise. In the event of a conflict between the Employment Policies Manual and this Agreement, this Agreement will control in all respects.

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

	 CHESAPEAKE ENERGY CORPORATION, an
 Oklahoma corporation

	
	 By:
	 	  

	 	 	 Aubrey K. McClendon, Chief Executive Officer
 (the “Company”)

	
	 By:
	 	  

	 	 	 Martha A. Burger, Individually
 (the “Executive”)

 

10Exhibit 10.1

                         CASS INFORMATION SYSTEMS, INC.

                      Director'S Indemnification Agreement

      This Director's Indemnification Agreement is entered into by and between
Cass Information Systems, Inc., a Missouri corporation ("Corporation") and
____________________ ("Indemnitee"), a member of the Board of Director of the
Corporation, as of this 15th day of April, 2003.

                                   WITNESSETH:

      WHEREAS, it is essential to the success of the Corporation to retain and
attract highly competent people as Directors, and such people have become more
reluctant to serve as directors or in other capacities unless they are provided
with adequate protection through insurance and/or adequate indemnification
against inordinate risks of claims and actions against them arising out of their
service to and activities on behalf of the Corporation; and

      WHEREAS, the uncertainties relating to Directors' liability insurance and
indemnification have increased the difficulty of attracting and retaining such
highly competent Directors; and

      WHEREAS, the Corporation has determined that the increased difficulty in
attracting and retaining such persons is detrimental to the best interests of
the Corporation's stockholders and that the Corporation should act to assure
such Directors that there will be increased certainty of such protection in the
future; and

      WHEREAS, it is reasonable, prudent and necessary for the Corporation to
contractually obligate itself to indemnify, and to advance expenses on behalf
of, such Directors to the fullest extent permitted by applicable law so that
they will serve or continue to serve the Corporation free from undue concern
that they will not be so indemnified; and

      WHEREAS, this Agreement is a supplement to and in furtherance of the
Articles of Incorporation and Bylaws of the Corporation and any resolutions
adopted pursuant thereto, and shall not be deemed a substitution therefor, nor
to diminish or abrogate any rights of Indemnitee thereunder.

      NOW, THEREFORE, in consideration of the mutual premises and covenants set
forth herein and the Indemnitee's continued service as a Director of the
Corporation, the Corporation and Indemnitee do hereby agree as follows:

      1. Agreement to Serve. Indemnitee agrees to continue to serve as a
Director of the Corporation for so long as he or she is duly elected or
appointed or until such time as he or she tenders his or her resignation in
writing.

      2. Definitions. As used in this Agreement:

<PAGE>

            (a) The term "Proceeding" shall include any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative or
investigative, by reason of the fact that Indemnitee (i) is or was a Director of
the Corporation (or any predecessor or subsidiary of the Corporation), or (ii)
is or was serving at the request of the Corporation as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust or
other enterprise.

            (b) The term "Expenses" shall mean expenses (including attorneys'
fees and amounts paid in settlement by Indemnitee) which are actually and
reasonably incurred by Indemnitee in connection with a Proceeding against
Indemnitee; provided, however, the term "Expenses" shall not include amounts of
judgments, fines, or penalties assessed against Indemnitee or incurred in
relation thereto.

            (c) The term "other enterprise" shall include employee benefit
plans; the term "fines" shall include any excise taxes assessed on a person with
respect to an employee benefit plan; and the term "serving at the request of the
Corporation" shall include any service as a director or officer of the
Corporation which imposes duties on, or involves services by, such director or
officer with respect to an employee benefit plan, its participants or
beneficiaries; and a person who acted in good faith and in a manner he
reasonably believed to be in the interest of the participants and beneficiaries
of an employee benefit plan shall be deemed to have acted in a manner "not
opposed to the best interests of the Corporation" as referred to in this
Agreement.

      3. Indemnity in Third-Party Proceedings. The Corporation shall indemnify
Indemnitee in accordance with the provisions of this Paragraph 3, against all
Expenses, judgments, fines, and penalties actually and reasonably incurred by
Indemnitee in connection with the defense or settlement of any Proceeding
against Indemnitee, other than a Proceeding by or in the right of the
Corporation to procure a judgment in its favor against Indemnitee, but only if
Indemnitee acted in good faith and in a manner which he or she 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 that his or her conduct was unlawful. The termination of any such
Proceeding by judgment, order, settlement, conviction, or upon a plea of nolo
contendere or its equivalent, shall not, in and of itself, create a presumption
that Indemnitee did not act in good faith in a manner which he or she reasonably
believed to be in or not opposed to the best interests of the Corporation; and,
with respect to any criminal proceeding, that Indemnitee had reasonable cause to
believe that his or her conduct was unlawful.

      4. Indemnity in Proceedings By or In the Right of the Corporation. The
Corporation shall indemnify Indemnitee in accordance with the provisions of this
Paragraph 4, against all Expenses actually and reasonably incurred by Indemnitee
in connection with the defense or settlement of any Proceeding by or in the
right of the Corporation to procure a judgment in its favor against Indemnitee
by reason of the fact that Indemnitee (i) is or was a Director of the
Corporation, or (ii) is or was serving at the request of the Corporation as a
Director or officer of another corporation, partnership, joint venture, trust or
other enterprise while a Director of the Corporation, but only if Indemnitee
acted in good faith and in a manner which he or she reasonably believed to be in
or not opposed to the best interests of the Corporation, except that no
indemnification for Expenses shall be made under this Paragraph in respect of
any claim, issue, or matter as to which Indemnitee shall have been adjudged to
be liable to the Corporation for negligence or misconduct in the performance of
his or her duty to the Corporation, unless and only to the extent that the court
in which such Proceeding was brought shall determine upon application that,
despite the adjudication of liability but in view of all the circumstances of
the case, Indemnitee is fairly and reasonably entitled to indemnity for such
Expenses which such court shall deem proper.

                                       2
<PAGE>

      5. Indemnification of Expenses of Successful Party. Notwithstanding any
other provision of this Agreement, to the extent that Indemnitee has been
successful on the merits or otherwise, in defense of any Proceeding against
Indemnitee, or in defense of any claim, issue, or matter therein, Indemnitee
shall be indemnified against all Expenses actually and reasonably incurred by
Indemnitee in connection therewith.

      6. Advances of Expenses. At the written request of Indemnitee, the
Expenses incurred by Indemnitee in any Proceeding against Indemnitee shall be
paid by the Corporation in advance of the final disposition of such Proceeding;
provided, however, that Indemnitee hereby agrees to promptly repay such amount
to the Corporation to the extent that it is ultimately determined that
Indemnitee is not entitled to indemnification. If the Corporation makes an
advance of expenses pursuant to this Paragraph 6, the Corporation shall be
subrogated to every right of recovery Indemnitee may have against any insurance
carrier from whom the Corporation has purchased insurance for such purpose.

      7. Right of Indemnitee to Indemnification Upon Application; Procedure Upon
Application.

            (a) Any indemnification under Paragraphs 3 and 4 or advance under
Paragraph 6, unless ordered by a court, shall be paid no later than 45 days
after receipt of the written request of Indemnitee, unless a determination is
made within said 45-day period by (i) the Board of Directors, (ii) independent
legal counsel in a written opinion, or (iii) the shareholders of the Corporation
that indemnification of the Director is not proper in the circumstances because
he has not met the applicable standard of conduct set forth in the foregoing
Paragraphs. Any such determination shall be made by the Board of Directors by a
majority vote of a quorum of the Directors who were not parties to the
Proceeding, or if such a quorum is not obtainable, a quorum of disinterested
Directors; or by written opinion of independent legal counsel, selected by the
majority vote of a quorum of the Directors who were not parties to the
Proceeding, or if such a quorum is not obtainable, a quorum of disinterested
Directors; or by the shareholders.

            (b) The right to indemnification or advancement of Expenses as
provided by this Agreement shall be enforceable by Indemnitee in any court of
competent jurisdiction. The burden of proving that indemnification or advances
are not appropriate shall be on the Corporation. Neither the failure of the
Corporation, including its Board of Directors or independent legal counsel or
shareholders, to have made a determination prior to the commencement of such
action that Indemnitee has met the applicable standard of conduct nor an actual
determination by the Corporation, including its Board of Directors or
independent legal counsel or shareholders, that Indemnitee has not met such
standard shall be a defense to the action or create a presumption that
Indemnitee has not met the applicable standard of conduct. Indemnitee's Expenses
actually and reasonably incurred in connection with successfully establishing
his or her right to indemnification or advances, in whole or in part, shall also
be indemnified by the Corporation.

                                       3
<PAGE>

            (c) With respect to any Proceeding for which indemnification is
requested, the Corporation will be entitled to participate therein at its own
expense and, except as otherwise provided below, the Corporation may assume the
defense thereof, with counsel satisfactory to Indemnitee. After notice from the
Corporation to Indemnitee of its election to assume the defense of a Proceeding,
the Corporation will not be liable to Indemnitee under this Agreement for any
Expenses subsequently incurred by Indemnitee in connection with the defense
thereof, other than as provided below. The Corporation shall not settle any
Proceeding in any manner that would impose any penalty or limitation on
Indemnitee without Indemnitee's written consent. Indemnitee shall have the right
to employ counsel in any Proceeding but the fees and expenses of such counsel
incurred after notice from the Corporation of its assumption of the defense of
the Proceeding shall be at the expense of Indemnitee, unless (i) the employment
of counsel by Indemnitee has been authorized by the Corporation; (ii) Indemnitee
shall have reasonably concluded that there may be a conflict of interest between
the Corporation and Indemnitee in the conduct of the defense of a Proceeding; or
(iii) the Corporation shall not in fact have employed counsel to assume the
defense of a Proceeding, in each of which cases the fees and expenses of
Indemnitee's counsel shall be advanced by the Corporation. Notwithstanding the
foregoing, the Corporation shall not be entitled to assume the defense of any
Proceeding brought by or in the right of the Corporation.

      8. Limitation on Indemnification. No payment pursuant to this Agreement
shall be made by the Corporation:

            (a) if such payments are prohibited by any applicable bank or bank
holding company law or regulation;

            (b) to indemnify or advance funds to Indemnitee for Expenses with
respect to Proceedings initiated or brought voluntarily by Indemnitee and not by
way of defense, except with respect to Proceedings brought to establish or
enforce a right to indemnification under this Agreement; provided, however, such
indemnification or advancement of Expenses may be provided by the Corporation in
specific cases if the Board of Directors by a majority vote of a quorum of the
Directors who were not parties to the Proceeding, or if such quorum is not
obtainable, a quorum of disinterested Directors, finds it to be appropriate;

            (c) to indemnify Indemnitee for any Expenses, judgments, fines, or
penalties sustained in any Proceeding for which payment is actually made to
Indemnitee under a valid and collectible insurance policy, except in respect of
any excess beyond the amount of payment under such insurance;

            (d) to indemnify Indemnitee for any Expenses, judgments, fines or
penalties resulting from Indemnitee's conduct which is finally adjudged to have
been fraudulent, deliberately dishonest or willful misconduct; or

                                       4
<PAGE>

            (e) if a court of competent jurisdiction finally determines that
such payment hereunder is unlawful.

      9. Indemnification Hereunder Not Exclusive. The indemnification provided
by this Agreement shall not be deemed exclusive of any other rights to which
Indemnitee may be entitled under the Articles of Agreement or the Bylaws of the
Corporation, any agreement, any vote of shareholders or disinterested Directors,
the laws of the State of Missouri, or otherwise, both as to action in his or her
official capacity and as to action in another capacity while holding such
office. The indemnification provided by this Agreement shall continue as to
Indemnitee even though he or she may have ceased to be a Director and shall
inure to the benefit of the heirs, executors and administrators of Indemnitee.

      10. Partial Indemnification. If Indemnitee is entitled under any provision
of this Agreement to indemnification by the Corporation for a portion of the
Expenses, judgments, fines, or penalties actually and reasonably incurred by him
or her in any Proceeding but not, however, for the total amount thereof, the
Corporation shall nevertheless indemnify Indemnitee for the portion of such
Expenses, judgments, fines, or penalties to which Indemnitee is entitled.

      11. Maintenance of Liability Insurance.

            (a) The Corporation hereby covenants and agrees that, as long as
Indemnitee continues to serve as a Director of the Corporation, and thereafter
as long as Indemnitee may be subject to any Proceeding, the Corporation, subject
to subsection (c) below, shall maintain in full force and effect Directors' and
Officers' liability insurance ("D&O Insurance") in reasonable amounts from
established and reputable insurers.

            (b) In all D&O Insurance policies, Indemnitee shall be named as an
insured in such a manner as to provide the Indemnitee the same rights and
benefits as are accorded to the most favorably insured of the Corporation's
Directors and Officers.

            (c) Notwithstanding the foregoing, the Corporation shall have no
obligation to obtain or maintain D&O Insurance if the Corporation determines in
good faith that such insurance is not reasonably available, the premium costs
for such insurance are disproportionate to the amount of coverage provided, the
coverage provided by such insurance is so limited by exclusions that it provides
an insufficient benefit, or Indemnitee is covered by similar insurance
maintained by a subsidiary of the Corporation.

      12. Savings Clause. If this Agreement or any portion hereof is invalidated
on any ground by any court of competent jurisdiction, the Corporation shall
nevertheless indemnify Indemnitee to the extent permitted by any applicable
portion of this Agreement that has not been invalidated or by any other
applicable law.

      13. Notice. Indemnitee shall, as a condition precedent to his or her right
to be indemnified under this Agreement, give to the Corporation notice in
writing as soon as practicable of any Proceeding for which indemnity will or
could be sought under this Agreement. Notice to the Corporation shall be
directed to:

                                       5
<PAGE>

                           Cass Information Systems, Inc.
                           Attn: Chairman of the Board
                           13001 Hollenberg Drive
                           Bridgeton, Missouri 63044

      (or such other address as the Corporation shall designate in writing to
Indemnitee). Notice shall be deemed received three days after the date
postmarked if sent by prepaid mail, properly addressed. In addition, Indemnitee
shall give the Corporation such information and cooperation as it may reasonably
require and as shall be within Indemnitee's power.

      14. Counterparts. This Agreement may be executed in any number of
counterparts, all of which shall be deemed to constitute one and the same
instrument.

      15. Applicable Law. This Agreement shall be governed by, and construed and
interpreted in accordance with, the law of the State of Missouri without regard
to its laws governing conflicts of laws.

      16. Successors and Assigns. This Agreement shall be binding upon the
Corporation and its successors and assigns, and shall inure to the benefit of
Indemnitee and his or her heirs, executors or administrators.

      17. Amendments. No amendment, waiver, modification, termination, or
cancellation of this Agreement shall be effective unless in writing signed by
both parties hereto. The indemnification rights afforded to Indemnitee hereby
are contract rights and may not be diminished, eliminated, or otherwise affected
by amendments to the Articles of Incorporation or By-Laws of the Corporation or
by other agreements.

      IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement
as of the date first written above.

Cass Information Systems, Inc.
                                              __________________________________
"Corporation"                                 "Indemnitee"

By:_________________________________
Name:_______________________________          __________________________________
Title:______________________________          Signature

                                       6

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