Apple 2005 Annual Report Download - page 127

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11.
Exercise of Option or SAR .
(a)
Procedure for Exercise; Rights as a Shareholder . Any Option or SAR granted hereunder shall be exercisable
according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Award
Agreement. An Option may not be exercised for a fraction of a Share.
An Option or SAR shall be deemed exercised when the Company receives: (i) written or electronic notice of exercise (in accordance
with the terms of the Option or SAR) from the person entitled to exercise the Option or SAR, and (ii) full payment for the Shares with respect
to which the Option is exercised. Full payment may consist of any consideration and method of payment authorized by the Administrator and
permitted by the Award Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Participant or, if
requested by the Participant, in the name of the Participant and his or her spouse. Until the Shares are issued (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other
rights as a shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Company shall issue (or
cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the
record date is prior to the date the Shares are issued, except as provided in Section 17 of the Plan.
Exercising an Option in any manner shall decrease the number of Shares thereafter available, both for purposes of the Plan and for
sale under the Option, by the number of Shares as to which the Option is exercised. Exercise of a SAR in any manner shall, to the extent the
SAR is exercised, result in a decrease in the number of Shares which thereafter shall be available for purposes of the Plan, and the SAR shall
cease to be exercisable to the extent it has been exercised.
(b)
Termination of Continuous Status as Chairman . Upon termination of a Participant’s Continuous Status as
Chairman (other than termination by reason of the Participant’s death), the Participant may, but only within ninety (90) days after the date of
such termination, exercise his or her Option or SAR to the extent that it was exercisable at the date of such termination. Notwithstanding the
foregoing, however, an Option or SAR may not be exercised after the date the Option or SAR would otherwise expire by its terms due to the
passage of time from the date of grant.
(c)
Termination of Continuous Employment . Upon termination of a Participant’s Continuous Status as Employee
(other than termination by reason of the Participant’s death), the Participant may, but only within ninety (90) days after the date of such
termination, exercise his or her Option or SAR to the extent that it was exercisable at the date of such termination. Notwithstanding the
foregoing, however, an Option or SAR may not be exercised after the date the Option or SAR would otherwise expire by its terms due to the
passage of time from the date of grant.
(d)
Death of Participant . If a Participant dies (i) while an Employee or Chairman, the Option or SAR may be
exercised at any time within six (6) months (or such other period of time not exceeding twelve (12) months as determined by the
Administrator) following the date of death by the Participant’
s estate or by a person who acquired the right to exercise the Option by bequest or
inheritance, but only to the extent of the right to exercise that would have accrued had the Participant continued living and terminated his or her
employment six (6) months (or such other period of time
11