THREE-YEAR PERFORMANCE STOCK UNIT AWARD
The following sets forth the performance goals and performance periods to be used with your Performance Restricted Stock Unit (PSU) award. Capitalized terms used but not defined herein shall have the meaning set forth in the Amended and Restated 2012 Equity Incentive Plan (the 2012 Plan).
This PSU shall include two performance periods as follows: June 15, 2020 through June 15, 2022 (Performance Period 1) and June 15, 2020 through June 15, 2023 (Performance Period 2) (together, the Performance Periods).
This PSU shall be administered by the Committee (as defined in the 2012 Plan) in accordance with Section 7.2 of the 2012 Plan.
Average Market Value shall mean the average closing trading price of 8x8, Inc.s (the Company) or the Peer Groups (as defined below) shares on the principal exchange on which such shares are then traded, during the 30-calendar day period ending on a specified date for which such closing trading price is reported by the applicable exchange or such other authoritative source as the Administrator (as defined in the 2012 Plan) may determine.
Peer Group shall mean the companies comprising the S&P Software & Services Index as of the last day of the applicable Performance Period.
TSR shall mean the compound annual total shareholder return of the Company (or of the Peer Group, as applicable), as measured by the change in the price of a share of Stock (or the publicly traded securities of the Peer Group, as applicable) over the applicable Performance Period (positive or negative), calculated using the Average Market Value as of the first day of the applicable Performance Period as the beginning stock price and using the Average Market Value as of the last day of the applicable Performance Period as the ending stock price and assuming dividends (if any) are reinvested based on the price of a share of Stock (or the publicly traded securities of Peer Group, as applicable) in accordance with the gross or total return methodology as defined by the S&P Software & Services Index.
Performance Goals shall mean 8x8, Inc.s TSR as measured against the Peer Groups TSR.
8x8 Performance Stock Plan Summary:
For Performance Period 1 and Performance Period 2, the number of shares of the Companys common stock issuable upon vesting of the PSU shall be determined by multiplying the Achievement Factor (as defined below) by one-half (1/2) of the total number of PSUs granted (rounded down to the nearest whole share of common stock, if applicable).