Apple 1999 Annual Report Download - page 104

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In that case, to the extent Section 423 requires such individual to be treated as retroactively eligible to have participated in the Plan, such
individual shall be treated as an "Employee" during an offering period only to the extent that he or she satisfies the criteria set forth in the next
sentence as of the start of the offering period. The two criteria are that: (A) the individual must be employed by the Company at least two years
and (B) the individual is not a "highly compensated employee" within the meaning of Section 414(q) of the Internal Revenue Code of 1986.
For the purpose of computing years of service, all service prior to a break in service shall be ignored to the extent permitted by Section 423. For
the purpose of determining an individual's status as a "highly compensated employee", the rules in the Company's Savings and Investment Plan
shall apply.
(g) "PLAN" shall mean this Employee Stock Purchase Plan.
(h) "SECTION 16 PERSON" shall mean any person participating in the Plan who has been designated by the Board of Directors as having
authority to carry out policy-making functions such that the person is subject to the reporting and short-swing profit regulations of Section 16
of the Securities Exchange Act of 1934.
(i) "SUBSIDIARY" shall mean a corporation, domestic or foreign, of which not less than 50% of the voting shares are held by the Company or
a Subsidiary, whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary.
(j) "1934 ACT SECTION 16" shall mean Section 16 of the Securities Exchange Act of 1934 and the rules and regulations promulgated
thereunder.
3. ELIGIBILITY.
(a) Any Employee as defined in Section 2 who shall be employed by the Company or one of its Designated Subsidiaries on the date his or her
participation in the Plan is effective shall be eligible to participate in the Plan, subject to the limitations imposed by Section 423(b) of the
Internal Revenue Code of 1986, as amended.
(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
2