PEERTRACKER – RADFORD'S PROPRIETARY REAL-TIME TRACKING TOOL FOR Relative TSR PLANS

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Radford Testimonial

PeerTracker

Incentive compensation programs effectively deliver the desired results of attraction, motivation and retention only when employees fully understand and appreciate their value. With traditional performance share awards, the participants often don't have a clear idea how they are tracking versus plan goals until the very end of the performance period. Such a black box approach to communications diminishes the incentive power of the award during the performance period. One of the great benefits of a Relative TSR performance award is that it is readily measurable at any point in time. This feature enables the company to communicate the plan's progress on an ongoing basis.

Radford has developed PeerTracker - a web-based desktop solution - to address both (1) the need for company tools to administer the program and (2) ongoing communication to participants to maximize incentive results.

Links to sample web sites for two hypothetical companies are found below.

PeerTracker Sample #1 – Company ABC (100% Relative TSR)

PeerTracker Sample #2 – Company XYZ (This includes an additional Performance Condition with the Relative TSR market condition. Note that Radford does not calculate Peformance Condition values; these must be supplied to us by the client on an ongoing basis.)

The solution serves four critical functions:

• Provides a direct line of sight between performance and reward
• Motivates employees to put forth their best efforts to drive stock appreciation comparatively against the company's
  peer group
• Supports human resources and finance functions through a resulting auditable calculation of the number of
  awards earned
• Provides necessary financial reporting calculations to support with developing the expected number of awards to vest (for calculating diluted EPS), and calculating dividend equivalents (if applicable), as needed on a quarterly basis

To learn more about the tracking of your Relative TSR performance award, contact Jon Burg at jburg@radford.com or Terry Adamson at tadamson@radford.com.