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These excerpts taken from the AAPL 10-Q filed May 4, 2005. 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 Committee 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 managements
discussion and analysis of financial conditions and results of operations
appearing in the Companys annual report to shareholders for the applicable
year, or (ii) the effect of any changes in accounting principles affecting
the Companys or a business units reported results.
(u) 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 managements
discussion and analysis of financial conditions and results of operations
appearing in the Companys annual report to shareholders for the applicable year,
or (ii) the effect of any changes in accounting principles affecting the
Companys or a business units reported results.
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