Chesapeake Energy 2012 Annual Report Download - page 132

CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
122
Under Chesapeake's 2003 Stock Incentive Plan, restricted stock and incentive and nonqualified stock options to
purchase our common stock may be awarded to employees and consultants of Chesapeake. Subject to any adjustments
as provided by the plan, the aggregate number of shares available for awards under the plan may not exceed 10,000,000
shares. The maximum period for exercise of an option may not be more than ten years from the date of grant and the
exercise price may not be less than the fair market value of the shares underlying the option on the date of grant.
Restricted stock and options granted become vested at dates determined by a committee of the Board of Directors.
No awards may be granted under the plan after April 14, 2013. The plan has been approved by our shareholders.
There were a nominal amount, 0.4 million and 0.1 million restricted shares, net of forfeitures, issued during 2012, 2011
and 2010, respectively, from the plan. As of December 31, 2012, there were approximately 82,500 shares remaining
available for issuance under the plan.
Under Chesapeake's 2003 Stock Award Plan for Non-Employee Directors, 10,000 shares of Chesapeake's
common stock are awarded to each newly appointed non-employee director on his or her first day of service. Subject
to any adjustments as provided by the plan, the aggregate number of shares which may be issued may not exceed
100,000 shares. This plan has been approved by our shareholders. In each of 2012, 2011 and 2010, 30,000, 10,000
and 10,000 shares of common stock were awarded to new directors from the plan, respectively. As of December 31,
2012, there were no shares remaining available for issuance under the plan.
In addition to the plans described above, we have stock options outstanding to employees under a number of
employee stock option plans which are described below. All outstanding options under these plans were at-the-money
when granted, with an exercise price equal to the closing price of our common stock on the date of grant and have a
ten-year exercise period. These plans were terminated in prior years and therefore no shares remain available for
stock option grants under the plans.
Name of Plan
Eligible
Participants
Type
of
Options
Shares
Covered
Shareholder
Approved
Outstanding
Options at
December 31, 2012
2002 and 2001
Stock Option Plans ..
Employees
and
consultants
Incentive and
nonqualified
3,000,000/
3,200,000 Yes 84,584
2002 and 2001
Nonqualified
Stock Option Plans ..
Employees
and
consultants Nonqualified
4,000,000/
3,000,000 No 175,466
2000 and 1999
Employee
Stock Option Plans ..
Employees
and
consultants Nonqualified
3,000,000
(each Plan) No 22,163
1996 and 1994
Stock Option Plans ..
Employees
and
consultants
Incentive and
nonqualified
6,000,000/
4,886,910 Yes 16,049