Common use of ROIC Clause in Contracts

ROIC. As to 60% of the Target Award, the Performance Measure shall be the average rate of return on invested capital (“ROIC”) over the Performance Period, as measured against the Peer Group. ROIC for each of the three years will be calculated individually, and then averaged to make the final calculation. For purposes of calculating ROIC in any particular year: if a Peer Group company has a provision for income taxes (or equivalent) at a rate which is below 0%, its tax rate will be deemed to be zero; if a Peer Group company has a provision for income taxes (or equivalent) at a rate which is above 50% in any year, its tax rate will be deemed to be 50%. At the end of the Performance Period, Peer Group companies will be ranked from highest to lowest by their average rate of ROIC over the Performance Period as calculated under this Section 3.2(i).

ROIC. As to 60% of the Target Award, the Performance Measure shall be the average rate of return on invested capital (“ROIC”) over the Performance Period, as measured against the Peer Group. ROIC for each of the three years will be calculated individually, and then averaged to make the final calculation. For purposes of calculating ROIC in any particular year: , if a Peer Group company has a provision for income taxes (or equivalent) at a rate which is below 0%, its tax rate will be deemed to be zero; if a Peer Group company has a provision for income taxes (or equivalent) at a rate which is above 50% in any year, its tax rate will be deemed to be 50%. At the end of the Performance Period, Peer Group companies will be ranked from highest to lowest by their average rate of ROIC over the Performance Period as calculated under this Section 3.2(i).