Common use of Performance Formula Clause in Contracts

Performance Formula. Fifty-percent (50%) of the Target PSUs for each Performance Period shall be eligible to vest based on achievement of Operating Income Performance Targets and the other fifty percent (50%) shall be eligible to vest based on achievement of Operating Margin Performance Targets. The number of PSUs eligible for vesting for any Performance Period will equal the product of (a) the percentage determined under this paragraph 2 (the “Applicable Percentage”) multiplied by (b) the number of Target PSUs awarded to the Grantee for the Performance Period. To determine the Applicable Percentage for OI PSUs, the Committee will compare (1) the Company’s certified Operating Income for the Performance Period to the Operating Income Performance Target for the Performance Period. To determine the Applicable Percentage for OM PSUs, the Committee will compare the Company’s certified Operating Margin for the Performance Period to the Operating Margin Performance Target for the Performance Period. The table below specifies the Applicable Percentage for each Performance Period if the certified Operating Income and certified Operating Margin equals the percentage of the Performance Target stated in the chart at the applicable Threshold, Target or Maximum payout levels. No Payout Less than 75% 0% Threshold 75% 33.3% Target 100% 100% Intermediate 120% 150% Maximum 140% 200% (Maximum payout) Accordingly, the table below specifies the Applicable Percentage for each Performance Period if the certified Operating Income or certified Operating Margin equals the percentage of the Performance Targets stated in the chart at the applicable Threshold, Target or Maximum payout levels.

Performance Formula. Fifty-percent (50%) of the Target PSUs for each Performance Period shall be eligible to vest based on achievement of Operating Income Performance Targets and the other fifty percent (50%) shall be eligible to vest based on achievement of Operating Margin Performance Targets. The number of PSUs eligible for vesting for any Performance Period will equal the product of (a) the percentage determined under this paragraph 2 (the “Applicable Percentage”) multiplied by (b) the number of Target PSUs awarded to the Grantee for the Performance Period. To determine the Applicable Percentage for OI PSUs, the Committee will compare (1) the Company’s certified Operating Income for the Performance Period to the Operating Income Performance Target for the Performance Period. To determine the Applicable Percentage for OM PSUs, the Committee will compare the Company’s certified Operating Margin for the Performance Period to the Operating Margin Performance Target for the Performance Period. The table below specifies the Applicable Percentage for each Performance Period if the certified Operating Income and certified Operating Margin equals the percentage of the Performance Target stated in the chart at the applicable Threshold, Target or Maximum payout levels. No Payout Less than 7575 % 00 % Threshold 7575 % 33.333.3 % Target 100100 % 100100 % Intermediate 120120 % 150150 % Maximum 140140 % 200200 % (Maximum payout) Accordingly, the table below specifies the Applicable Percentage for each Performance Period if the certified Operating Income or certified Operating Margin equals the percentage of the Performance Targets stated in the chart at the applicable Threshold, Target or Maximum payout levels.