TSR Modifier Percentage. The number of Performance Shares you can receive is subject to adjustment based upon the Company’s TSR performance relative to the following peer companies: Peer Companies B/E Aerospace, Inc. The Boeing Company Cobham plc Embraer X.X. Xxxxxxxxx Technologies Corporation General Dynamics Corporation Hexcel Corporation L-3 Communications Holdings, Inc. Lockheed Xxxxxx Corporation Meggitt plc Northrop Grumman Corporation Raytheon Corporation Spirit AeroSystems, Inc Textron Inc. Triumph Group, Inc. Zodiac Aerospace SA The peer companies are subject to adjustment as described in the Agreement. The first step in determining the TSR Percentage is to calculate the Company’s TSR percentile rank as described on Exhibit B (“How to Calculate TSR Percentile Rank.”). The TSR Percentile Rank will be rounded to nearest whole percentage. Once the TSR percentile rank is determined, the TSR Percentage will be determined in accordance with the following table: TSR Percentile Rank TSR Percent TSR Percentile Rank TSR Percent ≥80% 120% 50% 100% 79% 119% 49% 99% 78% 119% 48% 99% 77% 118% 47% 98% 76% 117% 46% 97% 75% 117% 45% 97% 74% 116% 44% 96% 73% 115% 43% 95% 72% 115% 42% 95% 71% 114% 41% 94% 70% 113% 40% 93% 69% 113% 39% 93% 68% 112% 38% 92% 67% 111% 37% 91% 66% 111% 36% 91% 65% 110% 35% 90% 64% 109% 34% 89% 63% 109% 33% 89% 62% 108% 32% 88% 61% 107% 31% 87% 60% 107% 30% 87% 59% 106% 29% 86% 58% 105% 28% 85% 57% 105% 27% 85% 56% 104% 26% 84% 55% 103% 25% 83% 54% 103% 24% 83% 53% 102% 23% 82% 52% 101% 22% 81% 51% 101% 21% 81% ≤20% 80% EXHIBIT B How to Calculate TSR Percentile Rank The following is an example of how to calculate the TSR percentile using the continuous method. Suppose that Xxxxxxxx Xxxxxxx has 10 peer companies and ranks 6th with TSR of 36%. Rank Company Three Year TSR 1 Peer 1 50% 2 Peer 2 48% 3 Peer 3 43% 4 Peer 4 39% 5 Peer 5 38% 7 Peer 6 31% 8 Peer 7 30% 9 Peer 8 28% 10 Peer 9 25% 11 Peer 10 19% 6 Rockwell Xxxxxxx 36% The first step in calculating Xxxxxxxx Xxxxxxx’ TSR percentile rank is to calculate the percentile ranks of the companies that performed just above (peer 5) and just below (peer 6) Rockwell Xxxxxxx in terms of TSR performances as shown in the first two equations below. The numerator in the first two equations represents the peer’s TSR rank (excluding Rockwell Xxxxxxx) less one and the denominator is the number of peer companies (excluding Rockwell Xxxxxxx) less one. Once these are calculated (56% for peer 5 and 44% for peer 6), the next step is ...
