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Dell Computer - 1995 Executive Incentive Bonus Plan
DELL COMPUTER CORPORATION
EXECUTIVE INCENTIVE BONUS PLAN
SUMMARY DESCRIPTION
On March 1, 1995, the Board of Directors of Dell Computer Corporation (the "Company") unanimously approved the adoption of the Executive Incentive Bonus Plan (the "Plan"). The Plan was approved by the Company's stockholders at the Company's annual meeting of stockholders held on July 21, 1995. Set forth below is a description of the terms of the plan.
PURPOSE
The purpose of the Plan is to unite strategic objectives and executive staff performance, provide significant cash rewards for continuing profitable growth and motivate short-term performance for each of the fiscal years during the term of the Plan. Key strategic objectives include (a) product leadership, (b) productivity, cost reduction and quality, (c) attracting, developing and retaining exceptional people, (d) improving infrastructure and systems and (e) global expansion.
ADMINISTRATION
The Plan will be administered by the Compensation Committee of the Board of Directors (the "Committee"), which shall consist of two or more members of the Board of Directors who are not employees of the Company and who otherwise qualify as "outside directors" within the meaning of Section 162(m) of the Internal Revenue Code and the regulations thereunder.
ELIGIBILITY
All corporate vice presidents who are members of the Company's executive staff are eligible to participate in the Plan. Plan participants are chosen solely at the discretion of the Committee.
TARGET BONUS
Promptly after the beginning of each fiscal year, the Committee establishes a target bonus opportunity for each participant based on a percentage of the participant's base salary and level of responsibility. The percentage of the target bonus actually paid is based on the extent to which corporate and key strategic objectives are achieved. Corporate objectives may include any or all of the following: profit before tax, profit after tax, return on invested capital, return on equity, return on assets, net income and revenues. With respect to key strategic objectives, the Committee has
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determined that such information is confiden...
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