Apple 2006 Annual Report Download - page 133

(13) Consists of 12,284 shares of Common Stock that Dr. Schmidt holds indirectly. Dr. Schmidt has declined to participate in the 1997
Director Stock Option Plan.
(14) Includes 40,000 shares of Common Stock that Mr. York has the right to acquire by exercise of stock options.
(15)
Includes 3,063,371 shares of Common Stock that executive officers or directors have the right to acquire by exercise of stock options.
Does not include 2.7 million unvested restricted stock units.
* Represents less than 1% of the issued and outstanding shares of Common Stock on the Table Date.
Equity Compensation Plan Information
The following table sets forth certain information, as of September 30, 2006, concerning shares of common stock authorized for issuance under
all of the Company’s equity compensation plans. The table has been adjusted to reflect the Company’s two-for-one stock split in
February 2005.
(1)
This number includes 2,297,225 shares of common stock reserved for issuance under the Employee Stock Purchase Plan, 400,000 shares
available for issuance under the 1997 Director Stock Option Plan, and 54,593,466 shares available for issuance under the 2003 Employee
Stock Plan. The grant of 3,410,000 restricted stock units has been deducted from the number of shares available for future issuance.
Shares of restricted stock and restricted stock units granted after April 2005 count against the shares available for grant as two shares for
every share granted. This amount does not include shares under the 1990 Stock Option Plan that was terminated in 1997. No new options
can be granted under the 1990 Stock Option Plan.
(2) This table does not include 17,266 shares of Common Stock underlying options assumed in connection with a prior acquisition of a
company that originally granted those options. These assumed options have a weighted average exercise price of $4.30 per share. No
additional options may be granted under the assumed plan.
Item 13. Certain Relationships and Related Transactions
In March 2002, the Company entered into a Reimbursement Agreement with its CEO, Steve Jobs, for the reimbursement of expenses incurred
by Mr. Jobs in the operation of his private plane when used for Company business. The Reimbursement Agreement became effective for
expenses incurred by Mr. Jobs for Company business purposes since he took delivery of the plane in May 2001. The Company recognized a
total of $202,000 in expenses pursuant to the Reimbursement Agreement during 2006.
In 2006, the Company entered into an agreement with Pixar to sell certain of Pixar’s short films on the iTunes Store. Mr. Jobs was the CEO,
Chairman, and a large shareholder of Pixar. On May 5, 2006, The Walt Disney Company (“Disney”) acquired Pixar, which resulted in Pixar
becoming a wholly-owned subsidiary of Disney. Upon Disney’s acquisition of Pixar, Mr. Jobs’ shares of Pixar common stock were
132
Number of Securities
to be Issued Upon
Exercise of
Outstanding Options,
Warrants and Rights
(a)
Weighted Average
Exercise Price of
Outstanding Options,
Warrants and Rights
(b)
Number of Securities
Remaining Available for
Future Issuance Under
Equity Compensation Plans
(Excluding Securities
Reflected in Column (a))
(c)
Equity compensation plans approved by
shareholders
34,827,183
$
30.03
57,290,691
(1)
Equity compensation plans not approved
by shareholders
18,137,049
$
10.19
—
Total equity compensation plans (2)
52,964,232
$
23.24
57,290,691