Apple 2005 Annual Report Download - page 120

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(dd)
“ Optioned Stock ” means the Common Stock subject to an Option, SAR or Stock Purchase Right.
(ee)
“ Participant ” means the holder of an outstanding Award granted under the Plan.
(ff)
“ Parent ” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the
Code.
(gg)
“ Performance Goals ” means the goal(s) (or combined goal(s)) determined by the Committee (in its discretion) to
be applicable to a Participant with respect to an Award. As determined by the Committee, the Performance Goals applicable to an Award may
provide for a targeted level or levels of achievement using one or more of the following measures: (a) Annual Revenue, (b) Cash Position,
(c) Earnings Per Share, (d) Net Income, (e) Operating Cash Flow, (f) Operating Income, (g) Return on Assets, (h) Return on Equity, (i) Return
on Sales, (j) Total Stockholder Return, and (k) Individual Performance Objectives. The Performance Goals may differ from Participant to
Participant and from Award to Award. The Administrator shall appropriately adjust any evaluation of performance under a Performance Goal
to exclude (i) any extraordinary non-recurring items as described in Accounting Principles Board Opinion No. 30 and/or in management’s
discussion and analysis of financial conditions and results of operations appearing in the Company’s annual report to shareholders for the
applicable year, or (ii) the effect of any changes in accounting principles affecting the Company’s or a business units’ reported results.
(hh)
“ Performance Share ” means a performance share Award granted to a Participant pursuant to Section 14.
(ii)
“ Plan ” means this 2003 Employee Stock Plan.
(jj)
“ Restricted Stock ” means shares of Common Stock acquired pursuant to a grant of Stock Purchase Rights under
Section 12 of the Plan.
(kk)
“ Restricted Stock Unit ”
means a bookkeeping entry representing an amount equal to the Fair Market Value of one
Share, granted pursuant to Section 13. Each Restricted Stock Unit represents an unfunded and unsecured obligation of the Company.
(ll)
“ Return on Assets ” means the percentage equal to the Company’s or a business unit’s Operating Income before
incentive compensation, divided by average net Company or business unit, as applicable, assets, determined in accordance with generally
accepted accounting principles.
(mm)
“ Return on Equity ” means the percentage equal to the Company’s Net Income divided by average shareholder’s
equity, determined in accordance with generally accepted accounting principles.
(nn)
“ Return on Sales ” means the percentage equal to the Company’s or a business unit’s Operating Income before
incentive compensation, divided by the Company’s or the business unit’s, as applicable, revenue, determined in accordance with generally
accepted accounting principles.
4