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<SEC-DOCUMENT>0000950123-10-002034.txt : 20100112
<SEC-HEADER>0000950123-10-002034.hdr.sgml : 20100112
<ACCEPTANCE-DATETIME>20100112165719
ACCESSION NUMBER:		0000950123-10-002034
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20100106
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
FILED AS OF DATE:		20100112
DATE AS OF CHANGE:		20100112

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHESAPEAKE UTILITIES CORP
		CENTRAL INDEX KEY:			0000019745
		STANDARD INDUSTRIAL CLASSIFICATION:	NATURAL GAS TRANSMISSION & DISTRIBUTION [4923]
		IRS NUMBER:				510064146
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1211

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-11590
		FILM NUMBER:		10523169

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

	MAIL ADDRESS:	
		STREET 1:		909 SILVER LAKE BLVD
		CITY:			DOVER
		STATE:			DE
		ZIP:			19904
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>c94601e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<TITLE>Form 8-K</TITLE>
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<P style="font-size: 14pt" align="center"><B>UNITED STATES<BR>
SECURITIES AND
EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P style="font-size: 18pt" align="center"><B>FORM 8-K</B>

<P style="font-size: 12pt" align="center"><B>CURRENT REPORT<BR>
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P style="font-size: 10pt" align="center"><B>Date of Report (Date of earliest
event reported): January 6, 2010</B>



<P style="font-size: 24pt" align="center"><B>Chesapeake Utilities
Corporation<BR>
</B><FONT style="font-size: 10pt">(Exact name of registrant as
specified in its charter) </FONT>
<TABLE style="font-size: 10pt; text-align: center" cellspacing="0"
cellpadding="0" width="100%" border="0">

 <TR>
  <TD width="32%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="33%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="32%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>Delaware</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>001-11590</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>51-0064146</B></TD>
 </TR>
 <TR valign="top">
  <TD>(State or other Jurisdiction of Incorporation)</TD>
  <TD>&nbsp;</TD>
  <TD>(Commission File Number)</TD>
  <TD>&nbsp;</TD>
  <TD>(IRS Employer Identification No.)</TD>
 </TR>

</TABLE>
<TABLE style="font-size: 10pt; text-align: center" cellspacing="0"
cellpadding="0" width="100%" border="0">

 <TR>
  <TD width="49%">&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="49%">&nbsp;</TD>
 </TR>
 <TR valign="bottom">
  <TD style="border-bottom: #000000 1px solid"><B>909 Silver Lake Boulevard,
Dover, Delaware <BR>
</B></TD>
  <TD>&nbsp;</TD>
  <TD style="border-bottom: #000000 1px solid"><B>19904</B></TD>
 </TR>
 <TR valign="top">
  <TD>(Address of Principal Executive Offices)</TD>
  <TD>&nbsp;</TD>
  <TD>(Zip Code)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="center">Registrant&#8217;s telephone number,
including area code: <B>(302) 734-6799</B>
<TABLE style="font-size: 10pt; text-align: center" cellspacing="0"
cellpadding="0" width="30%" border="0">

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  <TD width="100%">&nbsp;</TD>
 </TR>
 <TR>
  <TD style="border-bottom: #000000 1px solid" nowrap><B>&nbsp;</B></TD>
 </TR>
 <TR>
  <TD nowrap>(Former name or former address if changed since last report.)</TD>
 </TR>

</TABLE>


<P style="font-size: 10pt" align="left">Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions:

<P style="font-size: 10pt" align="left"><FONT face="Wingdings">o</FONT> Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)<BR>
<BR>
<FONT face="Wingdings">o</FONT> Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR>
<BR>
<FONT
face="Wingdings">o</FONT> Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>



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<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">1
</DIV>

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<P style="font-size: 10pt" align="left"><b>Item 5.02 Compensatory Arrangements of Certain Officers</b>

<P style="font-size: 10pt" align="left">On January&nbsp;6, 2010, the
Compensation Committee (the &#8220;Committee&#8221;) of the Board of Directors
of Chesapeake Utilities Corporation (the &#8220;Company&#8221;) approved the
following compensation arrangements for certain executive officers of the
Company.

<P style="font-size: 10pt" align="left"><B>Performance Incentive Awards</B>

<P style="font-size: 10pt" align="left">Pursuant to its authority under the
Company&#8217;s Performance Incentive Plan, the Committee approved equity-based
awards to John R. Schimkaitis, President and Chief Executive Officer; Michael
P. McMasters, Executive Vice President and Chief Operating Officer; Stephen C.
Thompson, Senior Vice President; and Beth W. Cooper, Senior Vice President and
Chief Financial Officer. The award grant to each above-named executive officer
will cover the three-year award period from January&nbsp;1, 2010 through
December&nbsp;31, 2012 (&#8220;2012 Performance Period&#8221;). The Committee
established the following target equity-based awards for the 2012 Performance
Period: Mr.&nbsp;Schimkaitis &#8211; 9,600 shares; Mr.&nbsp;McMasters &#8211;
5,500 shares; Mr. Thompson &#8212; 4,000 shares; and Mrs.&nbsp;Cooper &#8211;
4,000 shares. The Committee set as the threshold and maximum equity-based
awards for each executive officer, 50% and 125% of the target equity-based
awards. The remaining terms of these equity-based awards are materially
consistent with previously disclosed terms and are substantially similar to the
terms set forth below for Mr.&nbsp;Cummiskey for the 2012 Performance Period.

<P style="font-size: 10pt" align="left">To transition his
participation into the
long-term bonus program, the Committee approved two equity-based awards for
Joseph Cummiskey, Vice President of Unregulated Energy Operations. The first
equity-based award grant will cover a two-year award period from
January&nbsp;1, 2010 through December&nbsp;31, 2011 (&#8220;2011 Performance
Period&#8221;), and will include twice the normal award level of shares. The
second equity-based award grant will cover the 2012
Performance Period. The Committee established target equity-based awards of
6,400 shares and 3,200 shares for Mr.&nbsp;Cummiskey for the 2011 Performance
Period and 2012 Performance Period, respectively. The Committee set as the
threshold and maximum equity-based awards for Mr.&nbsp;Cummiskey, 50% and 125%
of the target equity-based awards.

<P style="font-size: 10pt" align="left">According to the terms of the 2011
award, Mr.&nbsp;Cummiskey has the opportunity to earn shares of the
Company&#8217;s common stock (&#8220;Contingent Performance Shares&#8221;),
including a portion of the target award, depending on the extent to which
pre-established performance goals (the &#8220;Performance Goals&#8221;) are
achieved by the Company during the 24&nbsp;months ended December&nbsp;31, 2011.
Likewise, according to the terms of the 2012 award, Mr.&nbsp;Cummiskey has the
opportunity to earn Contingent Performance Shares, including a portion of the
target award, depending on the extent to which the Performance Goals are
achieved by the Company during the 36&nbsp;months ended December&nbsp;31,
2012.&nbsp;&nbsp;

<P style="font-size: 10pt" align="left">To earn these equity-based awards, the
Company&#8217;s performance is evaluated against three pre-established
performance metrics. These metrics consider: (1)&nbsp;total shareholder return,
defined as the cumulative total return to shareholders for the respective
performance period (&#8220;Shareholder Value&#8221;), (2)&nbsp;growth in
long-term earnings, defined as the growth in total capital expenditures as a
percentage of total capitalization for the respective performance period
(&#8220;Growth&#8221;) and (3)&nbsp;earnings performance, defined as average
return on equity (&#8220;RoE&#8221;) for the respective performance
period.&nbsp;&nbsp;Both the Shareholder Value and the Growth performance
metrics will be compared to the same metrics of the peer group consisting of
gas utility companies listed in the Edward Jones Natural Gas Distribution Group
for the respective Performance Period and awards will be determined according
to the Company&#8217;s ranking among these peers.&nbsp;&nbsp;The potential
payout ranges from 50% to 125% for each of these performance metrics, after
achieving threshold performance.&nbsp;&nbsp;For the average RoE performance
metric, the Company&#8217;s performance will be compared to pre-determined RoE
thresholds established by the Committee, with the payout ranging from 50% to
125%, upon achieving the threshold RoE, based upon the actual average RoE.

<P style="font-size: 10pt" align="left">If, during the 2011 Performance Period
or the 2012 Performance Period, Mr.&nbsp;Cummiskey is separated from
employment, due to voluntary termination, termination by the Company for just
cause, or retirement, all unearned equity-based awards shall be forfeited
immediately.&nbsp;&nbsp;If Mr.&nbsp;Cummiskey separates from employment by
reason of death or total and permanent disability, the equity-based awards that
would otherwise have been earned at the end of the respective Performance
Periods shall be reduced by pro rating such equity-based awards based on the
proportion of the Performance Periods during which he was employed by the
Company, subject to the Committee&#8217;s discretion to award a larger number
of shares.

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">2
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<P style="font-size: 10pt" align="left">In the event of a Change in Control
during the 2011 Performance Period or the 2012 Performance Period, in
accordance with the Performance Incentive Plan, Mr.&nbsp;Cummiskey may earn the
maximum equity-based awards, as if all performance criteria were satisfied,
without any pro ration.

<P style="font-size: 10pt" align="left"><B>2010 Short-Term Bonus Awards</B>

<P style="font-size: 10pt" align="left">Under the Company&#8217;s Cash Bonus
Incentive Plan, the Committee approved performance targets and target cash
bonus awards, measured as a percentage of base salary, for each of
Messrs.&nbsp;Schimkaitis, McMasters, Thompson, Cummiskey and Mrs. Cooper. The
approved performance targets, which vary according to the applicable executive
officer, are based on the following performance criteria:
(1)&nbsp;earnings per share, (2)&nbsp;pre-tax return on average
investment of the Company&#8217;s regulated natural gas operations, (3)&nbsp;earnings before interest and taxes of the Company&#8217;s unregulated
energy operations, and (4)&nbsp;individual goals. The amount of each executive officer&#8217;s cash bonus for
2010 will vary depending on the extent to which the applicable performance
targets are achieved.

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">3
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<P style="font-size: 10pt" align="center"><B>SIGNATURE</B>

<P style="font-size: 10pt" align="left">Pursuant to the requirements of the
Securities Exchange Act of 1934, the Registrant has duly caused this Report to
be signed on its behalf by the undersigned hereunto duly authorized.

<P style="font-size: 10pt" align="left"><FONT
style="font-variant: small-caps">Chesapeake Utilities Corporation </FONT>

<P style="font-size: 10pt" align="left"><u>/s/ Beth W. Cooper&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
Beth W. Cooper <BR>
Senior Vice President and Chief Financial Officer

<P style="font-size: 10pt" align="left">Date: January&nbsp;12, 2010

<P style="font-size: 10pt" align="center">&nbsp;

<P style="display: none; font-size: 10pt" align="center">4
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