Apple 1995 Annual Report Download - page 35

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employees, at not less than the fair market value on the date of grant. These options generally become exercisable over a period of three years,
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.
In July 1995, the Board of Directors adopted an amendment to the 1990 Plan to increase the number of shares reserved for issuance by 8.6
million shares, subject to shareholder approval at the Company's Annual Meeting of Shareholders scheduled for January 1996. Concurrently,
the Board of Directors also resolved to terminate the 1987 Plan and transfer all unused shares remaining under the 1987 Plan to the 1990 Plan,
subject to shareholder approval of the aforementioned amendment to the 1990 Plan.
Summarized information regarding the Company's stock option plans as of September 29, 1995, is as follows:
(In thousands, except per share amounts)
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 29, 1995, approximately 18,000 shares were reserved for future issuance under the Purchase Plan. In June 1995, the Board of
Directors adopted an amendment to the Purchase Plan to increase the number of shares reserved for issuance by 3 million shares, subject to
shareholder approval at the Company's Annual Meeting of Shareholders scheduled for January 1996.
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 1995 or in 1994; 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, the Company repurchased the remaining shares under this authorization, which approximated 1.6
million shares.
33
Number of
Shares Price per Share
Outstanding at September 30, 1994 13,411 $ 7.50 - $ 68.00
Granted 4,249
Exercised (2,442) $ 7.50 - $ 57.50
Expired or canceled (1,341)
Outstanding at September 29, 1995 13,877 $ 7.50 - $ 68.00
Exercisable 5,535
Reserved for issuance 16,848
Available for future grant 2,971