Common use of Individual Performance Goals Clause in Contracts

Individual Performance Goals. PERFORMANCE RATING INDIVIDUAL PERFORMANCE AS A % OF TARGET AWARDS ------- -------------------------------------------------------------- ---------------------------------------------- ------- -------------------------------------------------------------- ---------------------------------------------- 4 - Leading Edge - Performance is the very best we can expect of an employee in a given position. The employee has consistently performed far beyond expectations and has 150% demonstrated outstanding skill, knowledge and initiative in the job. This rating recognizes truly outstanding contribution to the organization, within and sometimes outside the scope of the position. The individual's job accomplishments have made significant impact on the mission of the department and company. ------- -------------------------------------------------------------- ---------------------------------------------- ------- -------------------------------------------------------------- ---------------------------------------------- 3 - Out in Front - The employee consistently demonstrates -------------- performance at levels which exceed position requirements. The employee can be counted on to achieve high quality results on even the most difficult and complex parts of the 125% job. The employee does advanced planning, anticipates problems, and takes appropriate action. Each work assignment or project is done thoroughly and completely. ------- -------------------------------------------------------------- ---------------------------------------------- ------- -------------------------------------------------------------- ---------------------------------------------- 2 - With the Pack - Performance is full, complete, and satisfactory. It is what is expected of a fully qualified and experienced person in the assigned position. This rating indicates no serious deficiency in any major element 100% of the job. The employee works with a minimum of supervision. This is a good rating; it does not imply mediocrity. ------- -------------------------------------------------------------- ---------------------------------------------- ------- -------------------------------------------------------------- ---------------------------------------------- 1 - Needs to Improve - Performance is generally satisfactory, but sometimes falls below an acceptable performance level. Close supervision and coaching are required particularly in areas where results have been insufficient. Some 50% improvement is necessary to meet job requirements. ------- -------------------------------------------------------------- ---------------------------------------------- ------- -------------------------------------------------------------- ---------------------------------------------- 0 - Doesn't Get It - Performance clearly fails to meet requirements and serious performance deficiencies exists. Immediate corrective action must be taken by the employee and supervisor to improve the performance level. An overall 0% ------- rating at this level indicates that further employment is contingent upon immediate and significant improvement. The employee should consult with his/her supervisor to discuss alternatives and actions required. ------- -------------------------------------------------------------- ---------------------------------------------- EXHIBIT D Long-Term Stock Award Goals TNPE vs. S&P 500 (__% weighting)

Individual Performance Goals. PERFORMANCE RATING INDIVIDUAL PERFORMANCE AS A % OF TARGET AWARDS ------- -------------------------------------------------------------- ---------------------------------------------- ------- -------------------------------------------------------------- ---------------------------------------------- 4 - Leading Edge - Performance is the very best we can expect of an employee in a given positionParticipant's individual performance Goals are classified into three categories: Company financial performance, Functional area financial performance, and MBO performance. The employee has consistently performed far beyond expectations Company Financial Performance Goals are determined for each quarter and has 150for the year as a whole, with each quarterly Goal and the total annual Goal representing, on a stand alone basis, 20% demonstrated outstanding skillof each Participant's target for the Company Financial Performance component of his or her program. The Functional Financial Performance Goal and the MBO Performance Goal evaluation and analysis will be on an annual basis. The PIP award payouts and the Super Bonus award payouts corresponding to levels of achievement of Company Financial Performance Goals are set forth on Exhibits A1 - A5. The PIP award payouts for meeting or exceeding Functional Area Financial Goals and each Participant's individualized MBO Performance Goals are set forth on Exhibits B and C, knowledge respectively. The CEO and initiative in the jobperson to whom the Participant reports ("Manager") will determine the Participant's Goals at the start of each year. This rating recognizes truly outstanding contribution A review of these Goals will be an ongoing process. Any changes during the year must be approved by the Manager and, if appropriate, by the CEO. Each Participant and his or her Manager are encouraged to have performance evaluations during the organizationyear to monitor progress and, within and sometimes outside if necessary, to modify Goals (with the scope approval of the positionCEO, if appropriate) for the balance of the year. The individual's job accomplishments have made significant impact following table illustrates performance Goals for different types of management positions: ------------------------------------------------------------------------------------------------------------------------- Performance Goals Based on the mission of the department Position and company. ------- -------------------------------------------------------------- ---------------------------------------------- ------- -------------------------------------------------------------- ---------------------------------------------- 3 Role ------------------------------------------------------------------------------------------------------------------------- g. Finance, Supply Chain TSM's, etc) ------------------------------------------------------------------------------------------------------------------------- Major Business 50% - Out in Front 60% 15% - The employee consistently demonstrates -------------- performance at levels which exceed position requirements. The employee can be counted on 30% 20% - 30% Unit Participants (e.g. Dental Group, Medical Group, Veterinary Group TSM's, etc.) ------------------------------------------------------------------------------------------------------------------------- Supporting Corporate Function Participants (e.g. 20% - 30% 15% - 30% 40% - 50% Legal Department, Human Resources Department TSM's, etc.) ------------------------------------------------------------------------------------------------------------------------- Note: This schedule is intended to achieve high quality results on even the most difficult and complex parts of the 125% job. The employee does advanced planning, anticipates problems, and takes appropriate action. Each work assignment or project is done thoroughly and completely. ------- -------------------------------------------------------------- ---------------------------------------------- ------- -------------------------------------------------------------- ---------------------------------------------- 2 - With the Pack - Performance is full, complete, and satisfactory. It is what is expected provide guidelines for development of a fully qualified and experienced person in the assigned positionspecific performance plan for each Participant. This rating indicates no serious deficiency in any major element 100% Final weighting of the job. The employee works with a minimum of supervision. This is a good rating; it does not imply mediocrity. ------- -------------------------------------------------------------- ---------------------------------------------- ------- -------------------------------------------------------------- ---------------------------------------------- 1 - Needs to Improve - Performance is generally satisfactory, but sometimes falls below an acceptable performance level. Close supervision and coaching are required particularly in areas where results have been insufficient. Some 50% improvement is necessary to meet job requirements. ------- -------------------------------------------------------------- ---------------------------------------------- ------- -------------------------------------------------------------- ---------------------------------------------- 0 - Doesn't Get It - Performance clearly fails to meet requirements and serious performance deficiencies exists. Immediate corrective action must Goals for each Participant will be taken determined by the employee and supervisor to improve Participant's Manager and, if appropriate, approved by the performance level. An overall 0% ------- rating at this level indicates that further employment is contingent upon immediate and significant improvement. The employee should consult with his/her supervisor to discuss alternatives and actions required. ------- -------------------------------------------------------------- ---------------------------------------------- EXHIBIT D Long-Term Stock Award Goals TNPE vs. S&P 500 (__% weighting)CEO.