Common use of Payment Formula Clause in Contracts

Payment Formula. The number of PSUs that may vest (the “Earned Percentage”) shall be determined after the end of the Performance Period in accordance with this Section, except as otherwise provided in Section 1.5 and Section 1.6. The Earned Percentage is the “EBITDA Percentage,” multiplied by the “Relative TSR Factor” multiplied by the PSUs granted pursuant to Section 1.1. Notwithstanding the result of the foregoing calculation, the Earned Percentage shall not exceed 200.0%. The EBITDA Percentage is based on achievement of the Performance Criteria with respect to Three-Year Cumulative EBITDA from Continuing Operations, as determined under the following table: EBITDA Percentage 50.0% 100.0% 200.0% Three-Year Cumulative EBITDA from Continuing Operations ($ millions) [$XXXX] [$XXXX] [$XXXX] For Three-Year Cumulative EBITDA from Continuing Operations below Threshold Performance, the EBITDA Percentage shall be zero percent (0%). For Three-Year Cumulative EBITDA from Continuing Operations in excess of Maximum Performance, the EBITDA Percentage shall be two hundred percent (200%). For Three-Year Cumulative EBITDA from Continuing Operations between any two successive points illustrated in the table above, the EBITDA Percentage shall be interpolated on a straight-line basis. The EBITDA Percentage shall be determined and certified by the Committee after the end of the Performance Period, but prior to payment to Participant. The “Relative TSR Factor” will be 75% if Relative TSR is at or below the 20th percentile. The Relative TSR Factor will be 125% if the Relative TSR is at or above the 80th percentile. Relative TSR between the 20th and 80th percentiles results in a Relative TSR Factor between 75% and 125%, based on straight line interpolation between the 20th and 80th percentiles.