Apple 2005 Annual Report Download - page 118

(k)
“ Committee ” means a committee of Directors appointed by the Board in accordance with Section 4 of the Plan.
(l) “ Common Stock ” means the common stock of the Company.
(m) “ Company ” means Apple Computer, Inc., a California corporation.
(n) “ Continuous Status as Chairman ” unless determined otherwise by the Administrator, means the absence of any
interruption or termination as Chairman of the Board with the Company. Continuous Status as Chairman shall not be considered interrupted in
the case of medical leave, military leave, family leave, or any other leave of absence approved by the Administrator, provided, in each case,
that such leave does not result in termination as Chairman with the Company. Neither service as a Director nor payment of a director’s fee by
the Company shall be sufficient to constitute status as “Chairman” by the Company.
(o) “ Continuous Status as an Employee ” means the absence of any interruption or termination of the employment
relationship with the Company or any Subsidiary. Continuous Status as an Employee shall not be considered interrupted in the case of
(i) medical leave, military leave, family leave, or any other leave of absence approved by the Administrator, provided, in each case, that such
leave does not result in termination of the employment relationship with the Company or any Subsidiary, as the case may be, under the terms of
the respective Company policy for such leave; however, vesting may be tolled while an employee is on an approved leave of absence under the
terms of the respective Company policy for such leave; or (ii) in the case of transfers between locations of the Company or between the
Company, its Subsidiaries, or its successor. For purposes of Incentive Stock Options, no such leave may exceed ninety days, unless
reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence
approved by the Company is not so guaranteed, on the 91st day of such leave any Incentive Stock Option held by the Participant shall cease to
be treated as an Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory Stock Option. Neither service as a Chairman
nor as a Director nor payment of a director’s fee by the Company shall be sufficient to constitute “employment” by the Company.
(p) “ Director ” means a member of the Board.
(q) “ Dividend Equivalent ” means a credit, payable in cash, made at the discretion of the Administrator, to the account
of a Participant in an amount equal to the cash dividends paid on one Share for each Share represented by an Award held by such Participant.
(r) “ Earnings Per Share ” means as to any Fiscal Year, the Company’s or a business unit’s Net Income, divided by a
weighted average number of common shares outstanding and dilutive common equivalent shares deemed outstanding, determined in
accordance with generally accepted accounting principles.
(s) “ Fiscal Year ” means a fiscal year of the Company.
(t) “ Individual Performance Objective ” means any individual Company business-related objective that is objectively
determinable within the meaning of Code Section 162(m) and the Treasury Regulations promulgated thereunder. Individual Performance
Objectives shall include, but not be limited to, improvement in customer satisfaction, opening of additional retail stores, and
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