Common use of Vesting Formula Clause in Contracts

Vesting Formula. Target Number of mPRSUs x (100% + ((LRCX TSR % – Index TSR %) x 2)) = mPRSUs vested (subject to the maximum in the Payout Range) • Target Number of mPRSUs is vested if the LRCX TSR % equals the Index TSR % • Number of mPRSUs vested increases by 2% of target for each 1% that the LRCX TSR % exceeds the Index TSR % • Number of mPRSUs vested decreases by 2% of target for each 1% that the LRCX TSR % trails the Index TSR % • The result of the Vesting Formula is rounded down to the nearest whole number • LRCX TSR % (LRCX 50-trading day average closing price as of the last trading day of the Performance Period – LRCX 50-trading day average closing price on the trading day immediately prior to the beginning of the Performance Period) ÷ (LRCX 50-trading day average closing price on the trading day immediately prior to the beginning of the Performance Period) x 100 • Index TSR % (Index 50-trading day average closing price as of the last trading day of the Performance Period – Index 50-trading day average closing price on the trading day immediately prior to the beginning of the Performance Period) ÷ (Index 50-trading day average closing price on the trading day immediately prior to the beginning of the Performance Period) x 100 • Notes: • The LRCX TSR % calculation excludes any dividends paid on the Company’s common stock. • All Index TSR % calculations are based on the companies traded on the Index as of the applicable dates