On January 1, 2008, Test Company 1 issued Performance Awards that vest dependent on Total Shareholder Return ("TSR") relative to a Peer Group at the end of a 3 year Performance Period with the following schedule:
| Relative TSR | Payout as a Percent of Target |
|---|---|
| 75th percentile and above | 200% |
| 50th percentile | 100% |
| 25th percentile and below | 0% |
Interpolation shall be used between the above thresholds. The peer group consists of those companies that continuously comprise the Standard & Poor's 500 (S&P 500) during the restriction period, which is the 20 days preceding January 1, 2008 through the 20 days preceding December 31, 2010.