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% Maximum 125% 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. Percentage of OI PSUs earned for the performance period 0% 33.33% 100% 200% — — — — Percentage of OM PSUs earned for the performance period — — — — 0% 33.33% 100% 200% If the certified Operating Income or Operating Margin achieved is between the Threshold and Target payout levels for the relevant Performance Target, then the Applicable Percentage will be prorated between the specified Applicable Percentage for the Threshold payout level and the specified Applicable Percentage for the Target payout level. If the certified Operating Income or Operating Margin achieved is between the Target and Maximum payout levels for the relevant Performance Target, then the Applicable Percentage will be prorated between the specified Applicable Percentage for the Target payout level and the specified Applicable Percentage for the Maximum payout level. If the certified Operating Income or Operating Margin achieved is below the applicable Threshold payout level, then the Applicable Percentage will be 0%. If the certified Operating Income and Operating Margin achieved are at or above the Maximum payout levels, then the Applicable Percentage will be capped at 200%.

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 Shares 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 PSUsPercentage, 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% Maximum 125% 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. Percentage of OI PSUs earned for the performance period 0% 33.33% 100% 200% — — — — Percentage of OM PSUs earned for the performance period — — — — 0% 33.33% 100% 200% If the certified Operating Income or Operating Margin achieved is between the Threshold and Target payout levels for (as set forth in the relevant Performance Targetsecond column of the table below), then the Applicable Percentage will be prorated between the specified Applicable Percentage for the Threshold payout level and the specified Applicable Percentage for the Target payout levellevel (as set forth in the last column of the table below). If the certified Operating Income or Operating Margin achieved is between the Target and Maximum payout levels for (as set forth in the relevant Performance Targetsecond column of the table below), then the Applicable Percentage will be prorated between the specified Applicable Percentage for the Target payout level and the specified Applicable Percentage for the Maximum payout levellevel (as set forth in the last column of the table below). If the certified Operating Income or Operating Margin achieved is below the applicable Threshold payout level, then the Applicable Percentage will be 0%. If the certified Operating Income and Operating Margin achieved are is at or above the Maximum payout levelslevel, then the Applicable Percentage will be capped at 200%.. No Payout Less than 75% 0% Threshold 75% 33.3% Target 100% 100% Maximum 125% 200 % (Maximum payout)