Apple 2007 Annual Report Download - page 122

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any transaction with another company at which a related person's only relationship is as an employee (other than an executive
officer or director) or beneficial owner of less than ten percent of that company's equity, if the aggregate amount involved does
not exceed the greater of $1,000,000, or two percent of that company's total annual revenue;
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any charitable contribution, grant or endowment by the Company to a charitable organization, foundation or university at which a
related person's only relationship is as an employee (other than an executive officer or director), if the aggregate amount involved
does not exceed the lesser of $1,000,000, or two percent of the charitable organization's total annual receipts; and
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any transaction where the related person's interest arises solely from the ownership of the Company's common stock and all
holders of the Company's common stock received the same benefit on a pro rata basis, such as dividends.
A summary of new transactions covered by the standing pre-
approvals described above is provided to the Audit Committee for its review at each
regularly scheduled Audit Committee meeting. The related person transactions described below were approved by the Board of Directors before
this policy was adopted.
Transactions with Related Persons
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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 Apple business. The Company recognized a total of $776,000,
$202,000, and $1,100,000 in expenses pursuant to the Reimbursement Agreement during 2007, 2006, and 2005, respectively.
• The Company enters into commercial dealings with The Walt Disney Company, Genentech and Google that it considers arms-
length, including sales arrangements and, in the case of Google, licensing agreements and similar arrangements and, in the case of
The Walt Disney Company, iTunes Store content licensing agreements and similar agreements. The Company enters into these
commercial dealings in the ordinary course of its business. Mr. Jobs is a Director of The Walt Disney Company. Dr. Levinson is
the Chief Executive Officer and a Director of Genentech. Dr. Schmidt is the Chief Executive Officer and a Director of Google
and Mr. Gore is a Senior Advisor to Google. The Company does not believe that any of Messrs. Jobs or Gore or Drs. Levinson or
Schmidt has a material direct or indirect interest in any of such commercial dealings.
The Board has determined all Board members, excluding Steve Jobs, are independent under the applicable NASDAQ rules. The
Board has also determined the members of each committee of the Board are independent under the listing standards of the
NASDAQ Global Select Market. In making these determinations, the Board considered, among other things, the types and
amounts of the commercial dealings between the Company and the companies and organizations with which the directors are
affiliated.
• Tony Fadell's spouse is the Vice President, Human Resources of the Company. She earned $318,467 in salary and $218,750 in
bonus during fiscal year 2007 and participates in the Company's equity award and benefit programs. Her compensation is
commensurate with that of her peers.
Director Independence
The Board has determined all Board members, excluding Steve Jobs, are independent under the applicable NASDAQ rules. The Board has also
determined the members of each committee of the Board are independent under the listing standards of the NASDAQ Global Select Market. In
making these determinations, the Board considered, among other things, the types and amounts of the commercial dealings between the
Company and the companies and organizations with which the directors are affiliated.
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