Apple 1998 Annual Report Download - page 72

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OPTION GRANTS IN LAST FISCAL YEAR
The following table provides information about option grants to the Named Executive Officers during fiscal year 1998.
OPTION GRANTS IN LAST FISCAL YEAR
(1) Based on an aggregate of 13,879,349 options granted to all employees during fiscal year 1998, including 4,707,220 options granted in
exchange for the cancellation of the same number of outstanding options as of December 19, 1997 on a one-for-one basis pursuant to the stock
option exchange program. Options typically vest in four equal annual installments commencing on the first anniversary of the date of grant.
(2) All options were granted at an exercise price equal to the fair market value based on the closing market value of Common Stock on the
Nasdaq National Market on the date of grant.
(3) Potential gains are net of exercise price, but before taxes associated with exercise. These amounts represent certain assumed rates of
appreciation only, based on SEC rules, and do not represent the Company's estimate or projection of the price of the Company's stock in the
future. Actual gains, if any, on stock option exercises depend upon the actual future price of Common Stock and the continued employment of
the option holders throughout the vesting period. Accordingly, the potential realizable values set forth in this table may not be achieved.
(4) Grants of stock options pursuant to the stock option exchange program in exchange for the cancellation of outstanding stock options.
Messrs. Anderson, Mandich and Rubinstein did not receive any new grants of stock options in fiscal 1998.
OPTIONS EXERCISED AND YEAR-END OPTION HOLDINGS
The following table provides information about stock option exercises by the Named Executive Officers during fiscal year 1998 and stock
options held by each of them at fiscal year-end.
69
POTENTIAL REALIZABLE
INDIVIDUAL GRANTS VALUE AT ASSUMED
------------------------------------ ANNUAL RATES OF
NUMBER OF PERCENT OF TOTAL STOCK PRICE
SECURITIES OPTIONS GRANTED APPRECIATION FOR
UNDERLYING TO EMPLOYEES IN OPTION TERM (3)
OPTIONS GRANTED FISCAL YEAR EXERCISE OR EXPIRATION --------------------
NAME (#) (1) ($/SH)(2) BASE PRICE DATE 5% ($) 10% ($)
--------------------------------- ----------------- ----------------- ----------- ----------- --------- ---------
Steven P. Jobs................... -- 0.00% -- -- -- --
Fred D. Anderson................. 250,000(4) 1.80% 13.6875 12/19/07 2,151,999 5,453,587
Timothy D. Cook.................. 700,000 5.04% 17.6875 2/02/08 7,786,502 19,732,524
Jonathan Rubinstein.............. 300,000(4) 2.16% 13.6875 12/19/07 2,582,399 6,544,305
Mitchell Mandich................. 224,250(4) 1.61% 13.6875 12/19/07 1,930,343 4,891,868
200,000 1.44% 13.125 12/29/07 1,650,848 4,183,574