Apple 1994 Annual Report Download - page 40

Stock Option Plans
The Company has in effect a 1990 Stock Option Plan (the 1990 Plan) and a 1987 Executive Long Term Stock Option Plan (the 1987 Plan). The
1981 Stock Option Plan terminated in October 1990. Options granted before that date remain outstanding in accordance with their terms.
Options may be granted under the 1990 Plan to employees, including officers and directors who are employees, at not less than the fair market
value on the date of grant. These options generally become exercisable over varying periods, based on continued employment, and generally
expire ten years after the grant date. The 1990 Plan permits the granting of incentive stock options, nonstatutory stock options, and stock
appreciation rights.
The 1987 Plan permits the granting of nonstatutory options to certain officers of the Company to purchase Apple common stock at prices not
less than 75% of the fair market value on the date of grant. Options under the 1987 Plan are generally not exercisable for 18 months after the
date of grant, and then become exercisable at varying rates over the subsequent seven years, based on continued service to the Company.
Summarized information regarding the Company's stock option plans as of September 30, 1994, is as follows:
Restricted Stock Plan
On April 1, 1993, the Company's Board of Directors approved a Restricted Stock Plan for officers of the Company (the RSP), which became
effective July 1, 1993. The RSP was subsequently ratified by the shareholders on January 26, 1994. The RSP is designed to provide an
incentive for officers to continue to own shares of the Company's common stock acquired upon exercise of options under any of the Company's
Stock Option Plans, thus more closely aligning officers' financial interests with those of the shareholders. The RSP provides that officers who
exercise stock options and continue to hold the exercised shares for at least three years will receive up to three Awards of shares of restricted
stock. Each such Award is for one-third the number of shares held for the requisite retention period. Each restricted stock Award granted
pursuant to the plan becomes fully vested three years after the grant date, provided that the officer maintains continuous employment with the
Company and that other vesting requirements are met.
Employee Stock Purchase Plan
The Company has an employee stock purchase plan (the Purchase Plan) under which substantially all employees may purchase common stock
through payroll deductions at a price equal to 85% of the lower of the fair market values as of the beginning or end of the offering period. Stock
purchases under the Purchase Plan are limited to 10% of an employee's compensation, up to a maximum of $25,000 in any calendar year. As of
September 30, 1994, approximately 1 million shares were reserved for future issuance under the Purchase Plan.
Stock Repurchase Programs
In November 1992, the Board of Directors authorized the purchase of up to 10 million shares of the Company's common stock in the open
market. No shares were repurchased under this authorization in 1994, while approximately 3.4 million shares were repurchased under this
authorization in 1993. In September 1990, the Board of Directors authorized the purchase of up to 10 million shares of the Company's common
stock in the open market. During 1993 and 1992, the Company repurchased the remaining shares under this authorization, which approximated
to 1.6 million and 4.0 million shares, respectively.
37
Number of Price Per
Shares Share
Outstanding at September 24, 1993 13,096 $ 7.50- $ 68.00
Granted 4,705
Exercised (2,223) $ 23.50-$ 38.25
Expired or canceled (2,167)
Outstanding at September 30, 1994 13,411 $ 7.50- $ 68.00
Exercisable 5,475
Reserved for issuance 19,286
Available for future grant 5,879