Common use of Interpolation of ROIC and Free Cash Flow Metrics Clause in Contracts

Interpolation of ROIC and Free Cash Flow Metrics. If the Corporation’s ROIC or Free Cash Flow falls above or below Target and between the two percentages of Target listed in the applicable table in Section 4.1 or 4.2, the appropriate performance factor will be interpolated on a linear basis. Notwithstanding the foregoing, the ROIC Performance Factor will always be zero if the ROIC for the Performance Period is less than 90% of the ROIC Target and the Free Cash Flow Performance Factor will always be zero if the aggregate Free Cash Flow for the Performance Period is less than 85% of the Free Cash Flow Target.

Appears in 5 contracts

Samples: Award Agreement (Lockheed Martin Corp), Award Agreement (Lockheed Martin Corp), Award Agreement (Lockheed Martin Corp)

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Interpolation of ROIC and Free Cash Flow Metrics. If the Corporation’s ROIC or Free Cash Flow falls above or below Target and between the two percentages of Target listed in the applicable table in Section 4.1 or 4.2, the appropriate performance factor will be interpolated on a linear basis. Notwithstanding the foregoing, the ROIC Performance Factor will always be zero if the ROIC for the Performance Period is less than 90% of the ROIC Target and the Free Award Date: February 22, 2023 Cash Flow Performance Factor will always be zero if the aggregate Free Cash Flow for the Performance Period is less than 85% of the Free Cash Flow Target.

Appears in 1 contract

Samples: Award Agreement (Lockheed Martin Corp)

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