Sample Business Contracts


Employment Agreement [Amendment] - Birch Telecom Inc. and Gary L. Chesser

Employment Forms

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                        AMENDMENT TO EMPLOYMENT AGREEMENT

         THIS AMENDMENT TO EMPLOYMENT AGREEMENT (the "Amendment") is entered
into this 5th day of August, 1999 by and between BIRCH TELECOM, INC., a Delaware
corporation (the "Corporation"), and GARY L. CHESSER ("Employee").

         The Corporation and Employee entered into an Employment Agreement dated
February 10, 1998 (the "Employment Agreement") which contains the terms and
conditions of the Corporation's employment of the Employee. The Corporation and
Employee now desire to amend certain provisions of the Employment Agreement. The
Employment Agreement may be amended by the Corporation and Employee in
accordance with section 9.8 of the Employment Agreement upon the mutual consent
of the Corporation and Employee.

         NOW, THEREFORE, in consideration of the following promises and mutual
covenants, and intending to be legally bound, the parties agree as follows:

         1. DEFINED TERMS. Except as otherwise specifically provided in this
Amendment, the capitalized terms used in this Amendment and defined in the
Employment Agreement shall have the same meanings as provided in the Employment
Agreement.

         2. AMENDMENT OF SECTION 6.4. Section 6.4 of the Employment Agreement is
amended by deleting the terms of that section in their entirety and substituting
the following in their place, reading in their entirety as follows:

         For purposes of Section 6.1, the term "Good Reason" shall mean (a) a
         substantial reduction in the Employee's duties or responsibilities, (b)
         any reduction in Employee's Salary, or (c) relocation of the Employee's
         primary workplace to a location that is greater than 35 miles from the
         Employee's current workplace, in each case which is not cured within 30
         days following the Company's receipt of written notice from the
         Employee describing the event constituting Good Reason.

         3. AMENDMENT OF SUBSECTION 6.5(A). Subsection 6.5(a) of the Employment
Agreement is amended by deleting the terms of that subsection in their entirety
and substituting the following in their place, reading in their entirety as
follows:

         If the Employee terminates this Agreement for Good Reason, or if the
         Company terminates this Agreement other than for Cause (but not because
         of the Disability or death of the Employee), or if the Company notifies
         the Employee in accordance with Section 2.2 that this Agreement will
         not be renewed as of an applicable expiration date, the Company will
         pay the Employee (i) the Employee's Salary for the remainder, if any,
         of the calendar month in which such termination is effective and for
         twelve consecutive calendar months thereafter, (ii) the amount of the
         Employee's targeted incentive compensation for the year during which
         the termination is effective (prorated for the period from the
         beginning of the year until the effective date of


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         termination), and (iii) with respect to the Post-Employment Period, an
         additional amount equal to the full amount of the Employee's targeted
         incentive compensation for the year in which the termination was
         effective (such amount to be determined as if the Employee had been
         employed for the entire year and not prorated as described in clause
         (ii) above), payable in equal monthly installments over the
         Post-Employment Period. Notwithstanding the preceding sentence, if the
         Employee obtains other employment prior to the end of the twelve
         months following the month in which the termination or expiration is
         effective, he must promptly give notice thereof to the Company, and
         the payments under this Agreement for any period after the Employee
         obtains other employment will be reduced by the amount of the cash
         compensation received and to be received by the Employee from the
         Employee's other employment for services performed during such period.

         4. EFFECT OF AMENDMENT ON EMPLOYMENT AGREEMENT. All provisions of this
Amendment shall be deemed to be incorporated in, and made part of, the
Employment Agreement, and the Employment Agreement, as amended and supplemented
by this Amendment, shall be read, taken, and construed as one and the same
agreement. Other than as expressly set forth herein, this Amendment shall not
constitute a consent or waiver to or modification of any term or condition of
the Employment Agreement. Subject to the express modifications made by this
Amendment, all terms, provisions, covenants, representations, warranties,
agreements, and conditions contained in the Employment Agreement shall remain in
full force and effect.

         IN WITNESS WHEREOF, the Company has caused this Amendment to be signed
by a duly authorized officer and Employee has executed this Amendment, both as
of the day and year first written above.


BIRCH TELECOM, INC.



By: /s/ David E. Scott                          /s/ Gary L. Chesser
   ---------------------------------            --------------------------------
   David E. Scott, President                    Gary L. Chesser






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