Document:

Exhibit 10.2

APPLE INC.

AMENDED EMPLOYEE STOCK PURCHASE PLAN

(Effective as of May 10, 2007)

On April 9,
2007 the Board adopted this amended Employee Stock Purchase Plan, which shall
govern all grants of Options made after this amendment and restatement, and
which shall become effective upon its approval by the Company’s stockholders
(the “Effective Date”). For the terms and conditions of the Plan applicable to
Option granted before the Effective Date, refer to the version of the Plan in
effect as of the date such Option was granted.

1.     Purpose of
the Plan. The purpose of this Employee Stock Purchase Plan is to
encourage and enable Eligible Employees of the Company and certain of its
Subsidiaries to acquire proprietary interests in the Company through the ownership
of Shares. It is the intention of the Company to have this Plan and the Options
granted pursuant to this Plan satisfy the requirements for “employee stock
purchase plans” that are set forth under Section 423 of the Code, although
the Company makes no undertaking nor representation to maintain the qualified
status of this Plan or such Options. In addition, Options that do not satisfy
the requirements for “employee stock purchase plans” that are set forth under
Section 423 of the Code may be granted under this Plan pursuant to the
rules, procedures or sub-plans adopted by the Board for non-U.S. Eligible
Employees.

2.     Definitions.
Unless otherwise provided in the Plan, capitalized terms, when used
herein, shall have the following respective meanings:

(a)   “Account” shall
mean a bookkeeping account established and maintained to record the amount of
funds accumulated pursuant to the Plan with respect to a Participant for the
purpose of purchasing Shares under this Plan.

(b)   “Administrator” shall mean the Board, the Compensation
Committee of the Board or any other committee appointed by the Board.

(c)   “Applicable Laws” shall mean all applicable laws, rules,
regulations and requirements, including, but not limited to, U.S. state
corporate laws, U.S. federal and state securities laws, the Code, the
rules of any stock exchange or quotation system on which the Shares are
listed or quoted and the applicable laws, rules, regulations and requirements
of any other country or jurisdiction where Options are granted under the Plan
or where Eligible Employees reside or provide services, as such laws, rules,
regulations and requirements shall be in effect from time to time.

(d)   “Board”
shall mean the Company’s Board of Directors.

(e)   “Code”
shall mean the U.S. Internal Revenue Code of 1986, as amended, and the
regulations and interpretations promulgated thereunder.

(f)    “Common Stock”
shall mean the Company’s common stock.

(g)   “Company”
shall mean Apple Inc., a California corporation.

(h)   “Designated
Subsidiaries” shall mean any Subsidiary designated by the
Administrator from time to time, in its sole discretion, whose employees may
participate in the Plan, if such employees otherwise qualify as Eligible
Employees. The Administrator may provide that the non U.S. Eligible Employees
of any Designated Subsidiary shall only be eligible to participate in the
Non-Section 423(b) Plan.

(i)    “Eligible
Compensation” shall mean and refer to the Participant’s cash
compensation paid through the Company’s or a Designated Subsidiary’s payroll system
for personal services actually rendered in the course of employment. “Eligible
Compensation” shall be limited to amounts received by the Participant during
the period he or she is participating in the Plan and includes salary, wages
and other incentive payments, amounts contributed by the Participant to any
benefit plan maintained 

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by the Company or any Designated Subsidiary (including any
401(k) plan, 125 plan, or any other deferred compensation plan), overtime
pay, commissions, draws against commissions, shift premiums,
sick pay, vacation pay, holiday pay, and shutdown pay, except to the extent
that the exclusion of any such item (or a sub-set of any such item) is
specifically directed by the Administrator for all Eligible Employees.
“Eligible Compensation” does not include any remuneration paid in a form other
than cash, fringe benefits (including car allowances and relocation payments),
employee discounts, expense reimbursement or allowances, long-term disability
payments, workmen’s compensation payments, welfare benefits, and any
contributions that the Company or any Designated Subsidiary makes to any
benefit plan (including any 401(k) plan or any other welfare or retirement
plan).

(j)            “Eligible Employee” shall mean any person, including an
officer, who is regularly employed by the Company or any Designated Subsidiary
except for those persons whose customary employment is for less than 20 hours
per week or for not more than five months in any calendar year (unless
otherwise specified by the Administrator).

(k)           “Enrollment Agreement” means an agreement between the Company
and an Eligible Employee, in such form as may be established by the
Administrator from time to time, pursuant to which an Eligible Employee elects
to participate in this Plan, or elects to make changes with respect to such
participation as permitted by this Plan.

(l)            “Enrollment Period” shall mean that period of time prescribed
by the Administrator during which Eligible Employees may elect to participate
in an Offering Period. The duration and timing of Enrollment Periods may be
changed or modified by the Administrator from time to time.

(m)          “Fair Market
Value” shall mean, unless otherwise determined or provided by the
Administrator in the circumstances, the last price (in regular trading) for a
share of Common Stock as furnished by the National Association of Securities
Dealers, Inc. (the “NASD”)
through the NASDAQ Global Market Reporting System (the “Global Market”) for the date in question or, if no sales of
Common Stock were reported by the NASD on the Global Market on that date, the
last price (in regular trading) for a share of Common Stock as furnished by the
NASD through the Global Market for the next preceding day on which sales of
Common Stock were reported by the NASD. The Administrator may, however, provide
with respect to one or more Options that the Fair Market Value shall equal the
last price for a share of Common Stock as furnished by the NASD through the
Global Market on the last trading day preceding the date in question or the
average of the high and low trading prices of a share of Common Stock as
furnished by the NASD through the Global Market for the date in question or the
most recent trading day. If the Common Stock is no longer listed or is no
longer actively traded on the Global Market as of the applicable date, the Fair
Market Value of the Common Stock shall be the value as reasonably determined by
the Administrator for purposes of the Award in the circumstances. The
Administrator also may adopt a different methodology for determining Fair
Market Value with respect to one or more Options if a different methodology is
necessary or advisable to secure any intended favorable tax, legal or other
treatment for the particular Option(s) (for example, and without limitation,
the Administrator may provide that Fair Market Value for purposes of one or
more Options will be based on an average of closing prices (or the average of
high and low daily trading prices) for a specified period preceding the
relevant date).

(n)           “Maximum Offering” shall mean the maximum number of Shares
that may be issued pursuant to the Plan during any given time period. Unless
otherwise designated by the Administrator, the Maximum Offering shall be
3,000,000 Shares over any two consecutive Offering Periods where the first such
Offering Period begins on the first business day of the Company’s second fiscal
quarter. With respect to some or all Participants in any Non-423(b) Plan
adopted for Participants in specified countries, locations or Designated Subsidiaries,
it may also mean a maximum number or value of Shares made available for
purchase during a specified period (e.g., a 12 month period) as the 

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Administrator
deems necessary or appropriate to avoid securities filings, to achieve tax
objectives or to meet other Company objectives.

(o)   “Non-423(b) Plan”
shall mean the rules, procedures or sub-plans, if any, adopted by the
Administrator as a part of this Plan, pursuant to which Options that do not
satisfy the requirements for “employee stock purchase plans” that are set forth
under Section 423 of the Code may be granted to non-US Eligible Employees.

(p)   “Offering
Date” shall mean the first business day of each Offering Period as
designated by the Administrator.

(q)   “Offering
Period” shall mean the period established in advance by the
Administrator during which payroll deductions shall be collected to purchase
Shares pursuant to an offering made under this Plan. Unless otherwise
established by the Administrator prior to the start of an Offering Period, each
Offering Period shall consist of two fiscal quarters of the Company, with each
such Offering Period beginning on the first business day of the second and
fourth fiscal quarter of each year, and ending on the last business day of the
fiscal quarter that immediately follows each such second and fourth fiscal
quarter.

(r)    “Option”
shall mean the right granted to Participants to purchase Shares pursuant to an
offering made under this Plan.

(s)   “Outstanding
Election” shall mean a Participant’s then-current election to
purchase Shares in an Offering Period, or that part of such an election which
has not been cancelled (including any voluntary cancellation under
Section 9 and deemed cancellation under Section 14) prior to the
close of business on the last Trading Day of the Offering Period or such other
date as determined by the Administrator.

(t)    “Participant”
shall mean an Eligible Employee who has elected to participate in the Plan
pursuant to Section 6.

(u)   “Plan”
shall mean this Apple Inc. Employee Stock Purchase Plan, as it may be amended
from time to time.

(v)   “Purchase
Price Per Share” shall be the lower of (i) eighty-five percent
(85%) of the Fair Market Value on the Offering Date or (ii) eighty-five
percent (85%) of the Fair Market Value on the last Trading Day of the Offering
Period.

(w)  “Shares”
shall mean one share of Common Stock.

(x)    “Subsidiary”
shall mean any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company if each of the corporations other than
the last corporation in the unbroken chain owns stock possessing fifty percent
(50%) or more of the total combined voting power of all classes of stock in one
of the other corporations in such chain. 
A corporation that attains the status of a Subsidiary on a date after
the adoption of the Plan shall be considered a Subsidiary commencing as of such
date.

(y)   “Termination
of Service” means, in the case of an Employee, a cessation of the
employee-employer relationship between the Employee and the Company or a Subsidiary
for any reason, including but not by way of limitation, a termination by
resignation, discharge, death, disability, retirement or the disaffiliation of
a Subsidiary but excluding such termination where there is a simultaneous
reemployment by the Company or a Subsidiary, and excluding any bona fide and
Company approved leave of absence such as family leave, medical leave, personal
leave and military leave.

(z)    “Trading Day”
shall mean a day on which the NASDAQ is open for trading.

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3.     Shares
Reserved for Plan. Subject to adjustment pursuant to
Section 17, a maximum of 76,000,000 Shares may be delivered pursuant to
Options granted under this Plan. The Shares reserved for issuance pursuant to
this Plan shall be authorized but unissued Shares. If any Option granted under
the Plan shall for any reason terminate without having been exercised, the
Shares not purchased under such Option shall again become available for
issuance under the Plan.

If the number of Shares to be purchased by
Participants on the last day of an Offering Period exceeds (i) the total
number of Shares then available under the Plan, or (ii) the Maximum
Offering, then the Administrator shall make a pro-rata allocation of any Shares
that may be issued pursuant to the Plan in as uniform and equitable a manner as
is reasonably practicable, as determined in the Administrator’s sole
discretion. In such event, the Company shall provide written notice to each
affected Participant of the reduction of the number of Shares to be purchased
under the Participant’s Option.

If the Administrator determines that some or
all of the Shares to be purchased by Participants on the last day of an
Offering Period would not be issued in accordance with Applicable Laws or any
approval by any regulatory body as may be required, or the Shares would not be
issued pursuant to an effective Form S-8 registration statement or that
the issuance of some or all of such Shares pursuant to a Form S-8
registration statement is not advisable due to the risk that such issuance will
violate Applicable Laws, the Administrator may, without Participant consent,
terminate any outstanding Offering Period and the Options granted pursuant
thereto and refund in cash all affected Participants’ entire Account
balances for such Offering Period as soon as practicable thereafter.

4.     Administration of the Plan.   The Administrator shall have the authority and responsibility for
the day-to-day administration of the Plan, which, to the extent permitted by
Applicable Laws, it may delegate to a sub-committee. Subject to the provisions
of the Plan, the Administrator shall have full authority, in its sole
discretion, to take any actions it deems necessary or advisable for the
administration of the Plan, including, but not limited to:

(a)   Interpreting the Plan and
adopting rules and regulations it deems appropriate to implement the Plan
including amending any outstanding Option as it may deem advisable or necessary
to comply with Applicable Laws, and making all other decisions relating to the
operation of the Plan;

(b)   Establishing the timing and
length of Offering Periods;

(c)   Establishing minimum and
maximum contribution rates;

(d)   Establishing new or changing
existing limits on the number of Shares an Eligible Employee may elect to
purchase with respect to any Offering Period if such limits are announced prior
to the first Offering Period to be affected;

(e)   Adopting such rules or
subplans as may be deemed necessary or appropriate to comply with the laws of
other countries, allow for tax-preferred treatment of the Options or otherwise
provide for the participation by Eligible Employees who reside outside of the
U.S., including determining which Eligible Employees are eligible to
participate in the Non-423(b) Plan
or other subplans established by the Administrator.

(f)    Establishing the exchange
ratio applicable to amounts withheld in a currency other than U.S. dollars and
permit payroll withholding in excess of the amount designated by a Participant
in order to adjust for delays or mistakes in the processing of properly
completed enrollment forms.

The
Administrator’s determinations under the Plan shall be final and binding on all
persons.

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5.     Grant
of Option; Limitations.

(a)   Grant of Option.   On each
Offering Date, each Participant shall automatically be granted an Option to
purchase as many whole Shares as the Participant will be able to purchase with
the payroll deductions credited to the Participant’s Account during the
applicable Offering Period.

(b)   Limit on Number of Shares Purchased.   Notwithstanding
the above, the maximum number of Shares a Participant may purchase shall be
limited by the Maximum Offering as described in Section 3.

(c)   Limit on Value of Shares Purchased.   Any provisions of the Plan to the contrary
notwithstanding, excluding Options granted pursuant to any Non-423(b) Plan,
no Participant shall be granted an Option to purchase Shares under this Plan
which permits the Participant’s rights to purchase Shares under all employee
stock purchase plans (described in Section 423 of the Code) 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 such Shares (determined at the
time such Options are granted) for each calendar year in which such Options are
outstanding at any time.

(d)   5% Owner Limit.   Any provisions of the Plan to the contrary
notwithstanding, no Participant shall be granted an Option to purchase Shares
under this Plan if such Participant (or any other person whose stock would be
attributed to such Participant pursuant to Section 424(d) of the
Code), immediately after such Option is granted, would own or hold options to
purchase Shares possessing five percent (5%) or more of the total combined
voting power or value of all classes of Shares or any of its Subsidiaries.

(e)   Other Limitation.   The Administrator may determine, as to any Offering
Period, that the offer will not be extended to highly compensated Eligible
Employees within the meaning of Section 414(q) of the Code.

6.     Participation in the Plan.   An Eligible Employee may become a Participant for an
Offering Period by completing the prescribed enrollment agreement and
submitting such form to the Company (or the Company’s designee), or by
following an electronic or other enrollment process as prescribed by the
Company, during the Enrollment Period prior to the commencement of the Offering
Period to which it relates. Such enrollment agreement shall contain the payroll
deduction authorization described in Section 8. A payroll deduction
authorization will be effective for the first Offering Period following the
submission of the enrollment agreement and all subsequent Offering Periods as
provided by Section 7 until it is terminated in accordance with Sections 9
or 14, it is modified by filing another enrollment agreement in accordance with
this Section 6 or an election is made to decrease payroll deductions in
accordance with Section 8 or until the Participant’s employment terminates
or the Participant is otherwise ineligible to participate in the Plan.

7.     Automatic Re-Enrollment.   Following the end of each Offering Period, each
Participant shall be automatically re-enrolled in the next Offering Period at
the applicable rate of payroll deductions in effect on the last Trading Day of
the prior Offering Period or otherwise as provided under Section 8, unless
the Participant has elected to withdraw from the Plan in accordance with
Section 9, the Participant’s employment terminates or the Participant is
otherwise ineligible to participate in the next Offering Period. Notwithstanding
the foregoing, the Administrator may require current Participants to complete
and submit a new enrollment agreement at any time it deems necessary or
desirable to facilitate Plan administration or for any other reason.

8.     Payroll Deductions.   Each Participant’s enrollment agreement shall contain
a payroll deduction authorization pursuant to which he or she shall elect to
have a designated whole percentage of Eligible Compensation between 1% and 10%
deducted on each payday during the Offering Period and credited to the
Participant’s Account for the purchase of Shares pursuant to the offering.
Payroll deductions shall 

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commence on the
Offering Date of the first Offering Period to which the enrollment agreement
relates (or as soon as administratively practicable thereafter) and shall
continue through subsequent Offering Periods pursuant to Section 7.
Participants shall not be permitted to make any separate cash payments into
their Account for the purchase of Shares pursuant to an offering. Notwithstanding
the foregoing, if local law prohibits payroll deductions, a Participant may
elect to participate in an Offering Period through contributions to his or her
Account in a form acceptable to the Administrator. In such event, any such
Participant shall be deemed to participate in a sub-plan to the Plan, unless
the Administrator otherwise expressly provides that such Participant shall be
treated as participating in the Plan.

If in any payroll period, a Participant has no pay or
his or her pay is insufficient (after other authorized deductions) to permit
deduction of the full amount of his or her payroll deduction election, then
(i) the payroll deduction election for such payroll period shall be
reduced to the amount of pay remaining, if any, after all other authorized
deductions, and (ii) the percentage or dollar amount of Eligible
Compensation shall be deemed to have been reduced by the amount of the
reduction in the payroll deduction election for such payroll period. Deductions
of the full amount originally elected by the Participant will recommence as
soon as his or her pay is sufficient to permit such payroll deductions;
provided, however, no additional amounts will be deducted to satisfy the
Outstanding Election.

A Participant may elect to decrease, but not increase,
the rate of his or her payroll deductions during an Offering Period by
submitting the prescribed form to the Company (or the Company’s designee) at
any time prior to the first day of the last calendar month of such Offering
Period. Any such payroll deduction change will be effective as soon as
administratively practicable thereafter and will remain in effect for
successive Offering Periods as provided in Section 7 unless the
Participant submits a new enrollment agreement for a later Offering Period, the
Participant elects to decrease his or her payroll deductions, the Participants
elects to withdraw from the Plan in accordance with Section 9, or the
Participant is withdrawn from the Plan in accordance with Section 14 or is
otherwise ineligible to participate in the Plan. A Participant may only
increase his or her rate of payroll deductions to be effective for the next
Offering Period by completing and filing with the Company a new enrollment
agreement authorizing the payroll deductions.

Notwithstanding the foregoing, the Company may adjust
a Participant’s payroll deductions at any time during an Offering Period to the
extent necessary to comply with Section 423(b)(8) of the Code and the
limitations of Section 5. Payroll deductions will recommence and be made
in accordance with the Outstanding Election prior to such Company adjustment
starting with the first Offering Period that begins in the next calendar year
(or such other time as is determined by the Administrator) unless the
Participant withdraws in accordance with Section 9, is withdrawn from the
Plan in accordance with Section 14 or is otherwise ineligible to
participate in the Plan.

9.     Withdrawal from Offering Period After
Offering Date.   An
Eligible Employee may withdraw from any Offering Period after the
applicable Offering Date, in whole but not in part, at any time prior to the
date specified by the Administrator or, if no such date is specified by the
Administrator, the last Trading Day of such Offering Period, by submitting the
prescribed withdrawal notice to the Company (or the Company’s designee). If a
Participant withdraws from an Offering Period, the Participant’s Option for
such Offering Period will automatically be terminated, and the Company will
refund in cash the Participant’s entire Account balance for such Offering
Period as soon as practicable thereafter. A Participant’s withdrawal from a
particular Offering Period shall be irrevocable. If a Participant wishes to
participate in a subsequent Offering Period, he or she must re-enroll in the
Plan by timely submitting a new enrollment agreement in accordance with
Section 6.

10.   Purchase of Stock.   On the last Trading Day of each Offering Period, the
Administrator shall cause the amount credited to each Participant’s Account to
be applied to purchase as many Shares pursuant to the Participant’s Option as
possible at the Purchase Price Per Share, subject to limitations of 

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Sections 3 and 5.
In no event may Shares be purchased pursuant to an Option more than 27 months
after the Offering Date of such Option. The amount applied to purchase Shares
pursuant to the Option shall be deducted from the Participant’s Account. Any
amounts remaining credited to the Participant’s Account on the last Trading Day
of the Offering Period shall be retained in the Participant’s Account and
rolled forward to the next Offering Period.

11.   Interest on Payments.   No interest shall be paid on sums withheld from a
Participant’s pay for the purchase of Shares under this Plan unless otherwise
determined necessary by the Administrator for Participants in the Non-423(b) Plan.

12.   Rights as Shareholder.   A Participant will not be a shareholder with respect
to Shares subject to the Participant’s Options issued under the Plan until the
Shares are purchased pursuant to the Options and such Shares are transferred
into the Participant’s name on the Company’s books and records.

13.   Options Not Transferable.   A Participant’s Options under this Plan may not be sold, pledged,
assigned, or transferred in any manner. If a Participant sells, pledges,
assigns or transfers his or her Options in violation of this Section 13,
such Options shall immediately terminate, and the Participant shall immediately
receive a refund of the amount then credited to the Participant’s Account.

14.   Deemed Cancellations.

(a)   Termination of Employment.   In
the event of a Participant’s Termination of Service, any outstanding Option
held by the Participant shall immediately terminate, the Participant shall be
withdrawn from the Plan and the Participant shall receive a refund of the
amount then credited to the Participant’s Account.

(b)   Death of a Participant.   If a
Participant dies, any outstanding Option held by the Participant shall
immediately terminate and the Participant shall be withdrawn from the Plan. As
soon as administratively practicable after the Participant’s death, the amount
then credited to the Participant’s Account shall be remitted to the executor,
administrator or other legal representative of the Participant’s estate or, if
the Administrator permits a beneficiary designation, to the beneficiary or
beneficiaries designated by the Participant if such designation has been filed
with the Company or the Company’s designee before such Participant’s death. If
such executor, administrator or other legal representative of the Participant’s
estate has not been appointed (to the knowledge of the Company) or if the
beneficiary or beneficiaries are no longer living at the time of the
Participant’s death, the Company, in its discretion, may deliver the
outstanding Account balance to the spouse or to any one or more dependents or
relatives of the Participant or to such other person as the Company may
designate.

15.   Application of Funds.   All funds received by the Company in payment for
Shares purchased under this Plan and held by the Company at any time may be
used for any valid corporate purpose.

16.   No Employment/Service Rights.   Neither the action of the Company in establishing the
Plan, nor any action taken under the Plan by the Board or the Administrator,
nor any provision of the Plan
itself, shall be construed so as to grant any person the right to remain in the
employ of the Company or any Subsidiary for any period of specific duration,
and such person’s employment may be terminated at any time, with or without
cause.

17.   Adjustments.   Subject
to Section 18, upon (or, as may be necessary to effect the adjustment,
immediately prior to): any reclassification, recapitalization, stock split
(including a stock split in the form of a stock dividend) or reverse stock
split; any merger, combination, consolidation, or other reorganization; any
spin-off, split-up, or similar extraordinary dividend distribution in respect
of the Common Stock; or any exchange of Common Stock or other securities of the
Company, or any similar, unusual or extraordinary corporate transaction in
respect of the Common Stock; then the Administrator shall equitably and
proportionately adjust (1) the number and type of Shares of Common Stock
(or other 

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securities) that
thereafter may be made the subject of Options (including the specific Share
limits, maximums and numbers of Shares set forth elsewhere in the Plan),
(2) the number, amount and type of Shares of Common Stock (or other
securities or property) subject to any outstanding Options, (3) the
Purchase Price Per Share of any outstanding Options, and/or (4) the
securities, cash or other property deliverable upon exercise or payment of any
outstanding Options, in each case to the extent necessary to preserve (but not
increase) the level of incentives intended by the Plan and the then-outstanding
Options.

It is intended that, if possible, any adjustments
contemplated by the preceding paragraph be made in a manner that satisfies
applicable legal, tax (including, without limitation and as applicable in the
circumstances, Section 424 of the Code and Section 409A of the Code)
and accounting (so as to not trigger any charge to earnings with respect to
such adjustment) requirements.

Without limiting the generality of Section 4, any
good faith determination by the Administrator as to whether an adjustment is
required in the circumstances pursuant to this Section 17, and the extent
and nature of any such adjustment, shall be conclusive and binding on all
persons.

18.   Merger
or Liquidation of Company.   In the event the Company or its shareholders
enter into an agreement to dispose of all or substantially all of the assets or
outstanding capital stock of the Company by means of a sale, merger or
reorganization in which the Company will not be the surviving corporation
(other than a reorganization effected primarily to change the State in which
the Company is incorporated, a merger or consolidation with a wholly-owned
Subsidiary, or any other transaction in which there is no substantial change in
the shareholders of the Company or their relative stock holdings, regardless of
whether the Company is the surviving corporation) or in the event the Company
is liquidated, then all outstanding Options under the Plan shall automatically
be exercised immediately prior to the consummation of such sale, merger,
reorganization or liquidation (deemed the end of the Offering Period in such
case) by causing all amounts credited to each Participant’s Account to be
applied to purchase as many Shares pursuant to the Participant’s Option as
possible at the Purchase Price Per Share, subject to the limitations of
Sections 3 and 5.

19.   Acquisitions
and Dispositions.   The Administrator may, in its sole and
absolute discretion and in accordance with principles under Section 423 of
the Code, create special Offering Periods for individuals who become Eligible
Employees solely in connection with the acquisition of another company or
business by merger, reorganization or purchase of assets and, notwithstanding
Section 14(b), may provide for special purchase dates for Participants who
will cease to be Eligible Employees solely in connection with the disposition
of all or a portion of any Designated Subsidiary or a portion of the Company,
which Offering Periods and purchase rights granted pursuant thereto shall,
notwithstanding anything stated herein, be subject to such terms and conditions
as the Administrator considers appropriate in the circumstances.

20.   Government Approvals or Consents.   This Plan and any offering and sales of Shares or
delivery of Shares under this Plan to Eligible Employees under it are subject
to any governmental or regulatory approvals or consents that may be or become
applicable in connection therewith.

21.   Plan Amendment; Plan Termination.   The
Board may from time to time amend or terminate the Plan in any manner it deems
necessary or advisable; provided, however, that no such action shall adversely
affect any then outstanding and vested Options under the Plan unless such
action is required to comply with Applicable Laws; and provided, further, that
no such action of the Board shall be effective without the approval of the
Company’s shareholders if such approval is required by Applicable Laws.  Upon the termination of the Plan, any balance in a
Participant’s Account shall be refunded to him or her as soon as practicable
thereafter.

22.   Governing Law.   The
Plan shall be governed by, and construed in accordance with the laws of the
State of California (except its choice-of-law provisions) and applicable U.S.
Federal Laws.

 8Exhibit 10.3

APPLE INC.

1997 DIRECTOR
STOCK OPTION PLAN

(Effective as of
May 10, 2007)

On April 9,
2007 the Board adopted this amended 1997 Director Stock Option Plan (the “Plan”),
which shall govern all grants of Options made after this amendment and restatement,
and which shall become effective upon its approval by the Company’s
shareholders (the “Effective Date”). For the terms and conditions of the Plan
applicable to Options granted before the Effective Date, refer to the version
of the Plan in effect as of the date such Option was granted.

1.     PURPOSES.   The purposes of the Plan are to retain
the services of qualified individuals who are not employees of the Company to
serve as members of the Board and to secure for the Company the benefits of the
incentives inherent in increased Common Stock ownership by such individuals by
granting such individuals Options to purchase shares of Common Stock.

2.     ADMINISTRATION.   The Administrator will be responsible
for administering the Plan. The Administrator will have authority to adopt such
rules as it may deem appropriate to carry out the purposes of the Plan,
and shall have authority to interpret and construe the provisions of the Plan
and any agreements and notices under the Plan and to make determinations
pursuant to any Plan provision. Each interpretation, determination or other
action made or taken by the Administrator pursuant to the Plan shall be final
and binding on all persons. The Administrator shall not be liable for any
action or determination made in good faith, and shall be entitled to
indemnification and reimbursement in the manner provided in the Company’s
Articles of Incorporation and By-Laws as such documents may be amended from
time to time.

3.     SHARES
AVAILABLE.   Subject
to the provisions of Section 7(b) of the Plan, the maximum number of
shares of Common Stock which may be issued under the Plan shall not exceed
1,600,000 shares (the “SECTION 3 LIMIT”). Either authorized and unissued
shares of Common Stock or treasury shares may be delivered pursuant to the Plan.
If Options are forfeited or are terminated for any reason before vesting or
being exercised, then the shares underlying such Options shall again become
available for Options under the Plan. Shares that are exchanged by a
Non-Employee Director or withheld by the Company as full or partial payment in
connection with any Option under the Plan shall not be available for subsequent
Options under the Plan.

4.     OPTIONS.   Each Non-Employee Director shall
receive grants of Options under the Plan as follows:

(a)   OPTION GRANTS.

(i)   INITIAL GRANT.   Non-Employee Directors who were members
of the Board on the day prior to the Effective Date shall be granted an Initial
Option to purchase 15,000 shares of Common Stock as of August 14, 1997 (“INITIAL
GRANT DATE”), PROVIDED that such individual continues to serve as a
Non-Employee Director through the Initial Grant Date. Non-Employee Directors
who were elected or appointed to the Board on the Effective Date shall be
granted an Initial Option to purchase 30,000 shares of Common Stock on the
Initial Grant Date, PROVIDED that such individual continues to serve as a
Non-Employee Director through the Initial Grant Date. Non-Employee Directors
who are elected or appointed to the Board after the Effective Date shall be
granted an Initial Option to purchase 30,000 shares of Common Stock as of the
date of their election or appointment to the Board. The provisions of this Section 4(a)(i) shall
not apply to any member of the Board who first becomes a Non-Employee Director
by reason of such member’s ceasing to be an employee of the Company and its
Subsidiaries.

 1
 

(ii)   ANNUAL
GRANTS.   Each
Non-Employee Director shall receive an Annual Option to purchase 10,000 shares
of Common Stock on the fourth anniversary of the Non-Employee Director’s
initial election or appointment to the Board and on each subsequent anniversary
thereof, PROVIDED that the individual has remained in continuous service as a
director of the Company through such anniversary date and is a Non-Employee
Director on the applicable anniversary date.

(b)   EXERCISE
PRICE.   The
per share exercise price of each Option shall be the Fair Market Value of a
share of Common Stock as of the date of grant of the Option determined in
accordance with the provisions of the Plan.

(c)   VESTING.   Initial Options shall vest and become
exercisable in equal annual installments on each of the first through third
anniversaries of the date of grant, PROVIDED that the Non-Employee Director has
remained in continuous service as a director of the Company through each such
anniversary date. Annual Options shall be fully vested and immediately
exercisable on their date of grant.

(d)   TERM OF OPTIONS.

(i)    TEN-YEAR
TERM.   Each
Option shall expire ten (10) years from its date of grant, subject to
earlier termination as provided herein.

(ii)   EXERCISE
FOLLOWING TERMINATION OF SERVICE DUE TO DEATH.   If a Non-Employee Director ceases to be
a member of the Board by reason of such Non-Employee Director’s death, the
Options granted to such Non-Employee Director may be exercised by such
Non-Employee Director’s Beneficiary, but only to the extent the Option was
exercisable at the time of the Non-Employee Director’s death, at any time within
three (3) years after the date of such termination of service, subject to
the earlier expiration of such Options as provided for in Section 4(d)(i) above.  At the end of such three-year period, the vested portion of
the Option shall expire. The unvested portion of the Option shall expire on the
date of the Non-Employee Director’s death.

(iii)  TERMINATION
OF OPTIONS IF A NON-EMPLOYEE DIRECTOR IS REMOVED FROM THE BOARD FOR CAUSE.   In the event a Non-Employee Director is
removed from the Board for “cause,” all Options granted to such Non-Employee
Director (whether or not then vested and exercisable) shall immediately
terminate and be of no further force and effect as of the effective date of
such removal from the Board. Whether a Non-Employee Director is removed by the
Board for “cause” shall be determined by the Board in accordance with the
By-Laws of the Company.

(iv)  EXERCISE
FOLLOWING OTHER TERMINATIONS OF SERVICE.   If a Non-Employee Director ceases to be
a member of the Board for any reason other than death or removal from the Board
for cause, the Options granted to such Non-Employee Director may be exercised
by such Non-Employee Director, but only to the extent the Option was
exercisable at the time of the Non-Employee Director’s termination, at any time
within ninety (90) days after the date of such termination of service, subject
to the earlier expiration of such Options as provided for in Section 4(d)(i) above.
At the end of such ninety-day period, the vested portion of the Option shall
expire. The unvested portion of the Option shall expire on the date of the
Non-Employee Director’s termination of service with the Board.

(e)   TIME AND
MANNER OF EXERCISE OF OPTIONS.

(i)   NOTICE OF EXERCISE.   Subject to the other terms and
conditions hereof, a Non-Employee Director may exercise any Option, to the
extent such Option is vested, by giving 

 2
 

written notice of
exercise to the Company; PROVIDED, HOWEVER, that in no event shall an Option be
exercisable for a fractional share. The date of exercise of an Option shall be
the later of (A) the date on which the Company receives such written
notice and (B) the date on which the conditions provided in Section 4(e)(ii) are
satisfied.

(ii)   METHOD
OF PAYMENT.   The
consideration to be paid for the shares to be issued upon exercise of an Option
may consist of (A) cash, (B) check, (C) other shares which have
a Fair Market Value on the date of surrender equal to the aggregate exercise
price of the shares as to which the Option shall be exercised and which have
been owned by the Non-Employee Director for at least six (6) months at the
time of exercise, (D) delivery of a properly executed exercise notice
together with irrevocable instructions to a broker to promptly deliver to the
Company the amount of proceeds required to pay the exercise price, or (E) any
combination of the foregoing methods of payment.

(iii)  STOCKHOLDER
RIGHTS.   A
Non-Employee Director shall have no rights as a stockholder with respect to any
shares of Common Stock issuable upon exercise of an Option until a certificate
evidencing such shares shall have been issued to the Non-Employee Director
pursuant to Section 4(e)(v), and no adjustment shall be made for dividends
or distributions or other rights in respect of any share for which the record
date is prior to the date upon which the Non-Employee Director shall become the
holder of record thereof.

(iv)  LIMITATION
ON EXERCISE.   No
Option shall be exercisable unless the Common Stock subject thereto has been
registered under the Securities Act and qualified under applicable state “blue
sky” laws in connection with the offer and sale thereof, or the Company has
determined that an exemption from registration under the Securities Act and
from qualification under such state “blue sky” laws is available.

(v)   ISSUANCE
OF SHARES.   Subject
to the foregoing conditions, as soon as is reasonably practicable after its
receipt of a proper notice of exercise and payment of the exercise price of the
Option for the number of shares with respect to which the Option is exercised,
the Company shall deliver to the Non-Employee Director (or following the
Non-Employee Director’s death, the Beneficiary entitled to exercise the
Option), at the principal office of the Company or at such other location as
may be acceptable to the Company and the Non-Employee Director (or such
Beneficiary), one or more stock certificates for the appropriate number of
shares of Common Stock issued in connection with such exercise. Shares sold in
connection with a “cashless exercise” described in clause C of Section 4(e)(ii) shall
be delivered to the broker referred to therein in accordance with the
procedures established by the Company from time to time.

(f)    RESTRICTIONS
ON TRANSFER.   An
Option may not be transferred, pledged, assigned, or otherwise disposed of,
except by will or by the laws of descent and distribution; PROVIDED, HOWEVER,
that an Option may be, with the approval of the Administrator, transferred to a
Non-Employee Director’s family members or to one or more trusts established in
whole or in part for the benefit of one or more of such family members. The
Option shall be exercisable, during the Non-Employee Director’s lifetime, only
by the Non-Employee Director or by the individual or entity to whom the Option
has been transferred in accordance with the previous sentence. No assignment or
transfer of the Option, or of the rights represented thereby, whether voluntary
or involuntary, by operation of law or otherwise, except by will or the laws of
descent and distribution, shall vest in the assignee or transferee any interest
or right in the Option, but immediately upon any attempt to assign or transfer
the Option the same shall terminate and be of no force or effect.

 3

5.     DESIGNATION
OF BENEFICIARY.

(a)   BENEFICIARY DESIGNATIONS.   Each Non-Employee Director may
designate a Beneficiary to exercise an Option upon the Non-Employee Director’s
death by executing a Beneficiary Designation Form.

(b)  CHANGE OF BENEFICIARY DESIGNATION.   A Non-Employee Director may change an
earlier Beneficiary designation by executing a later Beneficiary Designation
Form and delivering it to the Administrator. The execution of a
Beneficiary Designation Form and its receipt by the Administrator will revoke
and rescind any prior Beneficiary Designation Form.

6.     ADJUSTMENTS.

(a)   Subject to Section 7,
upon (or, as may be necessary to effect the adjustment, immediately prior to):
any reclassification, recapitalization, stock split (including a stock split in
the form of a stock dividend) or reverse stock split; any merger, combination,
consolidation, or other reorganization; any spin-off, split-up, or similar
extraordinary dividend distribution in respect of the Common Stock; or any
exchange of Common Stock or other securities of the Company, or any similar,
unusual or extraordinary corporate transaction in respect of the Common Stock;
then the Committee shall equitably and proportionately adjust (1) the
number and type of shares of Common Stock (or other securities) that thereafter
may be made the subject of Options (including the Section 3 Limit), (2) the
number, amount and type of shares of Common Stock (or other securities or
property) subject to any outstanding Options, (3) the exercise price of
any outstanding Options, and/or (4) the securities, cash or other property
deliverable upon exercise or payment of any outstanding Options, in each case
to the extent necessary to preserve (but not increase) the level of incentives
intended by the Plan and the then-outstanding Options. Any good faith
determination by the Administrator as to whether an adjustment is required in
the circumstances pursuant to this Section 6(a), and the extent and nature
of any such adjustment, shall be conclusive and binding on all persons.

(b)   It is intended that, if
possible, any adjustments contemplated by the preceding two paragraphs be made
in a manner that satisfies applicable legal, tax (including, without limitation
and as applicable in the circumstances, Section 409A of the Code) and
accounting (so as to not trigger any charge to earnings with respect to such
adjustment) requirements.

7.     CORPORATE TRANSACTIONS.

(a)   Upon the occurrence of any
of the following: any merger, combination, consolidation, or other
reorganization; any exchange of Common Stock or other securities of the
Company; a sale of all or substantially all the business, stock or assets of
the Company; a dissolution of the Company; or any other event in which the
Company does not survive (or does not survive as a public company in respect of
its Common Stock); then the Administrator may make provision for a cash payment
in settlement of, or for the assumption, substitution or exchange of any or all
outstanding Options or the cash, securities or property deliverable to the
holder of any or all outstanding Options, based upon, to the extent relevant
under the circumstances, the distribution or consideration payable to holders
of the Common Stock upon or in respect of such event. Upon the occurrence of
any event described in the preceding sentence, then, unless the Administrator
has made a provision for the substitution, assumption, exchange or other
continuation or settlement of the Option or the Option would otherwise continue
in accordance with its terms in the circumstances, each Option shall terminate
upon the related event; provided that the holders of such Options shall be
given reasonable advance notice of the impending termination and a reasonable
opportunity to exercise their outstanding vested Options in accordance with
their terms before the termination of such Options (except that in no case
shall more than ten days’ notice of the impending termination be required.

 4
 

(c)   The Administrator may adopt
such valuation methodologies for outstanding Options as it deems reasonable in
the event of a cash or property settlement and, without limitation on other
methodologies, may base such settlement solely upon the excess if any of the
per share amount payable upon or in respect of such event over the exercise
price of the Option. In any of the events referred to in this Section 7,
the Administrator may take such action contemplated by this Section 7
prior to such event (as opposed to on the occurrence of such event) to the
extent that the Administrator deems the action necessary to permit the
Non-Employee Director to realize the benefits intended to be conveyed with
respect to the underlying shares. Without limiting the generality of Section 2,
any good faith determination by the Administrator pursuant to its authority under
this Section 7 shall be conclusive and binding on all persons.

8.     TERMINATION AND AMENDMENT OF THE PLAN.

(a)   TERMINATION.   Unless
earlier terminated by the Board, the Plan shall terminate on May 10, 2012.
Following such date, no further grants of Options shall be made pursuant to the
Plan.

(b)   GENERAL POWER OF BOARD.   Notwithstanding
anything herein to the contrary, the Board may at any time and from time to
time terminate, modify, suspend or amend the Plan in whole or in part or,
subject to Sections 8(c) and 8(d), amend the terms of any outstanding
Option; PROVIDED, HOWEVER, that no such termination, modification, suspension or
amendment shall be effective without shareholder approval if such approval is
required to comply with any applicable law or stock exchange rule; and PROVIDED
FURTHER that the Board may not, without shareholder approval, increase the
maximum number of shares issuable under the Plan except as provided in Section 6
above.

(c)   WHEN NON-EMPLOYEE DIRECTORS’
CONSENTS REQUIRED.   The Board may not
alter, amend, suspend, or terminate the Plan or amend the terms of any
outstanding Option without the consent of any Non-Employee Director to the
extent that such action would adversely affect his or her rights with respect
to Options that have previously been granted.

(d)   NO REPRICING.   Notwithstanding
any other provision herein or in any agreement evidencing any Option, in no
case (except due to an adjustment contemplated by Section 6 or any
repricing that may be approved by shareholders) shall any action be taken with
respect to the Plan or any Option hereunder that would constitute a repricing
(by amendment, substitution, cancellation and regrant, exchange or other means)
of the per share exercise price of any Option.

9.     MISCELLANEOUS.

(a)   NO RIGHT TO REELECTION.   Nothing
in the Plan shall be deemed to create any obligation on the part of the Board
to nominate any of its members for reelection by the Company’s shareholders,
nor confer upon any Non-Employee Director the right to remain a member of the
Board for any period of time, or at any particular rate of compensation.

(b)   SECURITIES LAW RESTRICTIONS.   The
Administrator may require each Non-Employee Director or any other person
purchasing or acquiring shares of Common Stock pursuant to the Plan to agree
with the Company in writing that such Non-Employee Director is acquiring the
shares for investment and not with a view to the distribution thereof or
provide such other assurances and representations to the Company as the
Administrator may deem necessary or desirable to assure compliance with all
applicable legal and accounting requirements. All certificates for shares of
Common Stock delivered under the Plan shall be subject to such stock-transfer
orders and other restrictions as the Administrator may deem advisable under the
rules, regulations, and other requirements of the Securities and Exchange
Commission or any exchange upon which the Common Stock is then listed, and any
applicable federal or state securities law, and the Administrator may cause a
legend or legends to be put on any such certificates to make appropriate
reference to such 

 5
 

restrictions. No shares of Common Stock shall be issued hereunder
unless the Company shall have determined that such issuance is in compliance
with, or pursuant to an exemption from, all applicable federal and state
securities laws.

(c)   EXPENSES.   The
costs and expenses of administering the Plan shall be borne by the Company.

(d)   APPLICABLE LAW.   Except
as to matters of federal law, the Plan and all actions taken thereunder shall be
governed by and construed in accordance with the laws of the State of
California without giving effect to conflicts of law principles.

(e)   AUTHORITY OF THE COMPANY AND
SHAREHOLDERS.   The existence of
the Plan shall not affect or restrict in any way the right or power of the
Company or the shareholders of the Company to make or authorize any adjustment,
recapitalization, reorganization or other change in the Company’s capital
structure or its business, any merger or consolidation of the Company, any
issue of stock or of options, warrants or rights to purchase stock or of bonds,
debentures, preferred or prior preference stocks whose rights are superior to
or affect the Common Stock or the rights thereof or which are convertible into
or exchangeable for Common Stock, or the dissolution or liquidation of the
Company, or any sale or transfer of all or any part of its assets or business,
or any other corporate act or proceeding, whether of a similar character or
otherwise.

10.   DEFINITIONS.   Capitalized
words not otherwise defined in the Plan have the meanings set forth below:

“ADMINISTRATOR” means the
Board. The Board may delegate ministerial, non-discretionary functions to
individuals who are officers or employees of the Company or any of its
Subsidiaries or to third parties.

“ANNUAL MEETING” means an
annual meeting of the Company’s shareholders.

“ANNUAL OPTION” means an
Option granted to a Non-Employee Director pursuant to Section 4(a)(ii) of
the Plan.

“BENEFICIARY” or “BENEFICIARIES”
means an individual or entity designated by a Non-Employee Director on a
Beneficiary Designation Form to exercise Options in the event of the
Non-Employee Director’s death; PROVIDED, HOWEVER, that, if no such individual
or entity is designated or if no such designated individual is alive at the
time of the Non-Employee Director’s death, Beneficiary shall mean the
Non-Employee Director’s estate.

“BENEFICIARY DESIGNATION
FORM” means a document, in a form approved by the Administrator to be used by
Non-Employee Directors to name their respective Beneficiaries. No Beneficiary
Designation Form shall be effective unless it is signed by the
Non-Employee Director and received by the Administrator prior to the date of
death of the Non-Employee Director.

“BOARD” means the Board
of Directors of the Company.

“CODE” means the Internal
Revenue Code of 1986, as amended, and the applicable rules and regulations
promulgated thereunder.

“COMMON STOCK” means the
common stock of the Company, no par value per share.

“COMPANY” means Apple
Inc., a California corporation, or any successor to substantially all of its
business.

“EFFECTIVE DATE” has the
meaning given to such term in the preamble.

 6
 

“EXCHANGE ACT” means the
Securities Exchange Act of 1934, as amended, and the applicable rules and
regulations promulgated thereunder.

“FAIR MARKET VALUE”
means, unless otherwise determined or provided by the Administrator in the
circumstances, the last price (in regular trading) for a share of Common Stock
as furnished by the National Association of Securities Dealers, Inc. (the “NASD”)
through the NASDAQ Global Market Reporting System (the “GLOBAL MARKET”) for the
date in question or, if no sales of Common Stock were reported by the NASD on
the Global Market on that date, the last price (in regular trading) for a share
of Common Stock as furnished by the NASD through the Global Market for the next
preceding day on which sales of Common Stock were reported by the NASD. The
Administrator may, however, provide with respect to one or more Options that
the Fair Market Value shall equal the last price for a share of Common Stock as
furnished by the NASD through the Global Market on the last trading day
preceding the date in question or the average of the high and low trading
prices of a share of Common Stock as furnished by the NASD through the Global
Market for the date in question or the most recent trading day. If the Common
Stock is no longer listed or is no longer actively traded on the Global Market
as of the applicable date, the Fair Market Value of the Common Stock shall be
the value as reasonably determined by the Administrator for purposes of the
Option in the circumstances. The Administrator also may adopt a different
methodology for determining Fair Market Value with respect to one or more
Options if a different methodology is necessary or advisable to secure any
intended favorable tax, legal or other treatment for the particular Option(s) (for
example, and without limitation, the Administrator may provide that Fair Market
Value for purposes of one or more Options will be based on an average of
closing prices (or the average of high and low daily trading prices) for a
specified period preceding the relevant date).

“INITIAL OPTION” means an
Option granted to a Non-Employee Director pursuant to Section 4(a)(i) of
the Plan.

“NON-EMPLOYEE DIRECTOR”
means a member of the Board who is not an employee of the Company or any of its
Subsidiaries.

“OPTION” means an option
to purchase shares of Common Stock awarded to a Non-Employee Director pursuant
to the Plan and includes Initial Options and Annual Options.

“PLAN” has the meaning
given to such term in the preamble.

“SECTION 3 LIMIT”
shall have the meaning set forth in Section 3 of the Plan.

“SUBSIDIARY” means any
corporation or other entity a majority of whose outstanding voting stock or
voting power is beneficially owned directly or indirectly by the Company. An
entity that attains the status of a Subsidiary on a date after the adoption of
the Plan shall be considered a Subsidiary commencing as of such date.

 7

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