Apple offered to amend Employees' Stock Options to correct Errors and to pay the Difference

In a filing to the Securities and Exchange Commission (SEC), Apple reported a tender offer to employees. The offer is to correct the date and value of stock options granted to employees with a date and value that is different from the date that the stock options were granted under Apple's 1997 Employee Stock Option Plan that meet these conditions:

(i) that had original exercise prices per share that were less than the fair market value per share of the common stock underlying the option on the date that the grant was finalized,

(ii) that were unvested, either in whole or in part, as of December 31, 2004,

(iii) that are outstanding as of the last date on which the Offer remains open for acceptance, and

(iv) that are held by individuals who are subject to taxation in the United States.

According to the SEC filing, employees will get a cash payment equal to the value of the adjustment for unvested shares, the options meeting these conditions have an aggregate fair value of $67,142 as of March 13, 2007, and none of the members of Apple's Board of Directors or its executive officers may participate in the offer.