Apple 1996 Annual Report Download - page 45

Summarized information regarding the Company's stock option plans as of September 27, 1996, 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 and 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 27, 1996, approximately 400,000 shares were reserved for future issuance under the Purchase Plan. In
December 1996, the Board of Directors adopted an amendment to the Purchase Plan to increase the number of shares reserved for issuance by
3.5 million, subject to shareholder approval at the Company's Annual Meeting of Shareholders scheduled for February 1997. In July 1995, the
Board of Directors adopted an amendment to the Purchase Plan to increase the number of shares reserved for issuance by 3 million. In
December 1995, the Board of Directors adopted a new amendment to reduce this increase to 1.5 million shares. This new amendment was
approved by the Company's shareholders in January 1996.
Chief Executive Officer Performance Shares
In February of 1996, the Board of Directors approved the issuance of up to 1 million shares of common stock (the "Performance Shares") to the
Chief Executive Officer of the Company, subject to shareholder approval at the Company's Annual Meeting of Shareholders scheduled for
February 1997. The Company may issue up to 200,000 Performance Shares for each full fiscal year during the five-year term of the Chief
Executive Officer's employment agreement, which began on February 2, 1996. For each partial fiscal year during the term of this agreement,
the number of shares that may be issued shall be prorated to reflect that partial year. The issuance of the Performance Shares is subject to the
achievement of certain performance goals established by the Board of Directors at the beginning of the employment agreement and at the
beginning of each subsequent fiscal year during the term of the employment agreement. As these Performance Shares are pending shareholder
approval, they are not included as outstanding on the accompanying balance sheet. However, the related estimated compensation expense is
included in the 1996 results of operations and is immaterial. The Performance Shares for years after 1996 will become part of the Senior
Officers Restricted Performance Share Plan (refer to discussion below) upon approval of the Senior Officers Restricted Performance Share Plan
by the Company's shareholders at the Annual Meeting of Shareholders scheduled for February 1997.
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Number of Shares Price per Share
Outstanding at September 29, 1995 13,877 $ 7.50- $68.00
Granted 8,873
Exercised (450) $ 7.50- $37.00
Expired or canceled (8,188)
Outstanding at September 27, 1996 14,112 $14.83- $68.00
Exercisable 4,284
Reserved for issuance 20,598
Available for future grant 6,486