Apple 2005 Annual Report Download - page 123

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discretion, shall determine; provided, however, that with respect to Shares of Restricted Stock subject to Stock Purchase Rights, Performance
Shares or Restricted Stock Units vesting solely based on continuing as an Employee or Chairman, they will vest in full no earlier (except if
accelerated pursuant to Sections 17 or 4(b)(ix) hereof) than the three (3) year anniversary of the grant date; provided, further, that if vesting is
not solely employment- or Chairmanship-based, they will vest in full no earlier (except if accelerated pursuant to Sections 17 or 4(b)
(ix) hereof) than the one (1) year anniversary of the grant date;
(vi)
the Administrator may not “reprice” Options, SARs or Stock Purchase Rights, including 6-months-plus-1-
day option exchange programs, without shareholder approval;
(vii)
to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan;
(viii)
to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations
relating to sub-plans established for the purpose of qualifying for preferred tax treatment under foreign tax laws;
(ix)
to modify or amend each Award (subject to Section 19(c) of the Plan), including the discretionary
authority to extend the post-termination exercisability period of Options and SARs longer than is otherwise provided for in the Plan; however,
the Administrator may not extend the post-
termination exercisability period beyond the earlier of the date the Award would otherwise expire by
its terms due to the passage of time from the date of grant or seven (7) years;
(x)
to allow Participants to satisfy withholding tax obligations by electing to have the Company withhold
from the Shares to be issued upon exercise of an Option, SAR or Stock Purchase Right or upon vesting or payout of another Award, that
number of Shares or cash having a Fair Market Value equal to the amount required to be withheld. The Fair Market Value of the Shares to be
withheld shall be determined on the date that the amount of tax to be withheld is to be determined. All elections by a Participant to have Shares
or cash withheld for this purpose shall be made in such form and under such conditions as the Administrator may deem necessary or advisable;
(xi)
to determine whether Awards will be adjusted for Dividend Equivalents;
(xii)
to authorize any person to execute on behalf of the Company any instrument required to effect the grant of
an Award previously granted by the Administrator; and
(xiii)
to make all other determinations deemed necessary or advisable for administering the Plan.
(c)
Effect of Administrator’s Decision . The Administrator’s decisions, determinations and interpretations shall be
final and binding on all Participants and any other holders of Awards.
5.
Eligibility . Awards may be granted to Employees and the Chairman. Incentive Stock Options may be granted only to
Employees.
7