Apple 1996 Annual Report Download - page 77

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(b) Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan (i) if, immediately after
the grant, such Employee would own shares and/or hold outstanding options to purchase stock possessing five percent (5%) or more of the total
combined voting power or value of all classes of shares of the Company or of any Subsidiary of the Company, or (ii) which permits his or her
rights to purchase shares under all employee stock purchase plans of the Company and its Subsidiaries to accrue at a rate which exceeds
Twenty-Five Thousand Dollars ($25,000) of the fair market value of the shares (determined at the time such option is granted) for each
calendar year in which such stock option is outstanding at any time.
4. Offering Dates. The Plan shall be implemented by one offering during each six-month period of the Plan, commencing on or about January
1, 1981 and continuing thereafter until terminated in accordance with Section 19 hereof. The Board of Directors of the Company shall have the
power to change the duration of offering periods with respect to future offerings without shareholder approval if such change is announced at
least fifteen (15) days prior to the scheduled beginning of the first offering period to be affected.
5. Participation.
(a) An eligible Employee may become a participant in the Plan by completing a subscription agreement authorizing payroll deductions on the
form provided by the Company and filing it with the Company's payroll office prior to the applicable offering date. Once filed, the subscription
agreement shall remain effective for all subsequent offering periods until the participant withdraws from the Plan as provided in Section 10
hereof or files another subscription agreement.
(b) Payroll deductions for a participant shall commence on the first payroll following the commencement offering date and shall continue at the
same rate until such time as the participant withdraws from the Plan as provided in Section 10 hereof or another subscription agreement is filed
which changes the rate of payroll deductions.
6. Payroll Deductions.
(a) At the time a participant files his or her subscription agreement, he or she shall elect to have payroll deductions made on each payday during
subsequent offering periods at a rate not exceeding ten percent (10%) of the Compensation which he or she received on such payday, and the
aggregate of such payroll deductions during any offering period shall not exceed ten percent (10%) of his or her aggregate Compensation
during said offering period.
(b) All payroll deductions made by a participant shall be credited to his or her account under the Plan. A participant may not make any
additional payments into such account.
(c) A participant may discontinue his or her participation in the Plan as provided in Section 10, or may lower, but not increase, the rate of his or
her payroll deductions (within the limitations set forth in subsection (a) above) during an offering period by completing and filing with the
Company a new authorization for payroll deductions. The change in rate shall be effective within fifteen (15) days following the Company's
receipt of the new authorization.
(d) A participant may increase his or her rate of payroll deductions (within the limitations set forth in subsection (a) above) to be effective for
the next offering period by completing and filing with the Company a new authorization for payroll deductions at least fifteen (15) days before
the beginning of said offering period.
7. Grant of Option.
(a) At the beginning of each six-month offering period, each eligible Employee participating in the Plan shall be granted an option to purchase
(at the per share option price) up to a number of shares of the Company's Common Stock determined by dividing the Employee's accumulated
payroll deductions (not to exceed an amount equal to ten percent (10%) of his or her Compensation during the applicable offering period) by
the lower of (i)eighty-five percent (85%) of the fair market value of a share of the Company's Common Stock on the date of the
commencement of said offering period, or (ii)eighty-
five percent (85%) of the fair market value of a share of the Company's Common Stock on
the date of the expiration of the offering period, subject to the limitations set forth in Sections 3(b) and 12 hereof, and subject to the following
limitation: The number of shares of the Company's Common Stock subject to any option granted to an Employee pursuant to this Plan shall not
exceed two hundred percent (200%) of the number of shares of the Company's Common Stock determined by dividing an amount equal to ten
percent (10%) of the Employee's semi-annual Compensation as of the date of the commencement of the applicable offering period by eighty-
five percent (85%) of the fair market value of a share of the Company's Common Stock on the date of the commencement of said offering
period. Fair market value of a share of the Company's Common Stock shall be determined as provided in Section 7(b) herein.
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