Chesapeake Energy 1997 Annual Report Download - page 84

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67
Includes 1,846,860 shares held by TLW Investments, Inc., an Oklahoma corporation of which Mr. Ward
is sole shareholder and chief executive officer, and 841,500 shares which may be acquired pursuant to
currently exercisable stock options granted by the Company.
Includes shares purchased on behalf of the executive officer in the Chesapeake Energy Corporation
Savings and Incentive Stock Bonus Plan (Tom L. Ward, 3,522 shares; Aubrey K. McClendon,
1,643 shares; Steven C. Dixon, 937 shares; Marcus C. Rowland, 985 shares; J. Mark Lester, 719 shares
and Henry J. Hood, 776 shares).
Includes 508,560 shares held by Chesapeake Investments, an Oklahoma limited partnership of which
Mr. McClendon is sole general partner, and 526,500 shares which may be acquired pursuant to currently
exercisable stock options granted by the Company.
Based on information provided by Pilgrim Baxter & Associates.
Includes 2,382 shares held by Pearson Street Limited Partnership, an Oklahoma limited partnership of
which Mr. Self is a general partner and the remaining partners are members of Mr. Self s immediate
family sharing the same household; 1,098,600 shares held by Mr. Self as trustee of the Aubrey K.
McClendon Children's Trust, 1,209,100 shares held by Mr. Self as trustee of the Tom L. Ward
Children's Trust and 421,916 shares which Mr. Self has the right to acquire pursuant to currently
exercisable stock options granted by the Company.
Includes 344,750 shares subject to currently exercisable stock options granted to Mr. Heizer by the
Company.
Includes 374,000 shares subject to currently exercisable stock options granted to Mr. Whittemore by the
Company.
Includes 403,647 shares subject to currently exercisable stock options granted to Mr. Dixon by the
Company.
Includes 27,500 shares subject to currently exercisable stock options granted to Mr. Kerr by the
Company.
Includes 248,000 shares subject to currently exercisable stock options granted to Mr. Wilson by the
Company.
Includes 74,250 shares subject to currently exercisable stock options granted to Mr. Rowland by the
Company.
(1) Includes 100,886 shares subject to currently exercisable stock options granted to Mr. Lester by the
Company.
Includes 20,812 shares subject to currently exercisable stock options granted to Mr. Hood by the
Company.
Includes shares subject to options which are currently exercisable.
ITEM 13. Certain Transactions
Legal Counsel. Shannon T. Self, a director of the Company, is a shareholder in the law firm of Self,
Giddens & Lees, Inc., which provides legal services to the Company. During fiscal 1997, the firm billed the
Company approximately $207,000 for such legal services.
Oil and Gas Operations. Prior to 1989, Messrs. McClendon and Ward and their affiliates, as independent
oil producers, acquired various leasehold and working interests. In 1989, Chesapeake Operating, Inc.
("COI"), a wholly-owned subsidiary of the Company, was formed to drill and operate wells in which
Messrs. McClendon and Ward or their affiliates owned working interests. COT entered into joint operating
agreements with Messrs. McClendon and Ward and other working interest owners and billed each for their
respective shares of expenses and fees.
COT continues to operate wells in which directors, executive officers and related parties own working
interests. In addition, directors, executive officers and related parties have acquired working interests directly
and indirectly from the Company and participated in wells drilled by COT on terms no less favorable to the