Cincinnati Bell 2006 Annual Report Download - page 91

(i) net income;
(j) return on sales;
(k) return on assets;
(l) return on equity; and
(m) corporate performance indicators (indices based on the level of certain services provided to
customers).
13.2 Method By Which Performance Criteria Can Be Measured.
(a) Any performance criteria described in subsection 13.1 hereof that is used to determine the
performance goals applicable to an award granted under the Plan shall be measured or determined on the
basis of a period of such duration (for purposes of this subsection 13.2, a “performance period”), which
period may be of any length, but not less than one year or in excess of ten years, as is set by the Committee
either prior to the start of such period or within its first 90 days (provided that the performance criteria is not
in any event set after 25% or more of the applicable performance period has elapsed) and shall be criteria
that will be able to be objectively determined by the Committee.
(b) Further, the Committee may provide in the terms of an award granted under the Plan that any
factor used to help determine any performance criteria identified in subsection 13.1 hereof shall be taken
into account only to the extent it exceeds or, conversely, is less than a certain amount. The Committee may
also provide in the terms of an award granted under the Plan that, in determining whether any performance
criteria identified in subsection 13.1 hereof has been attained, certain special or technical factors shall be
ignored or, conversely, taken into account, in whole or in part, including but not limited to any one or more
of the following factors:
(1) a gain, loss, income, or expense resulting from changes in generally accepted accounting
principles that become effective during the applicable performance period or any previous period;
(2) a gain, loss, income, or expense that is extraordinary in nature;
(3) an impact of other specified nonrecurring events;
(4) a gain or loss resulting from, and the direct expense incurred in connection with, the
disposition of a business, in whole or in part, the sale of investments or non-core assets, or discontinued
operations, categories, or segments of businesses;
(5) a gain or loss from claims and/or litigation and insurance recoveries relating to claims or
litigation;
(6) an impact of impairment of tangible or intangible assets;
(7) an impact of restructuring activities, including, without limitation, reductions in force;
(8) an impact of investments or acquisitions made during the applicable performance period or
any prior period;
(9) a loss from political and legal changes that impact operations, as a consequence of war,
insurrection, riot, terrorism, confiscation, expropriation, nationalization, deprivation, seizure, business
interruption, or regulatory requirements;
(10) retained and uninsured losses from natural catastrophes;
(11) currency fluctuations;
(12) an expense relating to the issuance of stock options and/or other stock-based compensation;
(13) an expense relating to the early retirement of debt; and/or
(14) an impact of the conversion of convertible debt securities.
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Proxy Statement