Annual Performance Incentive Plan for 2016 (2016 APIP)

Under the 2016 APIP, executive officers of the Company are eligible to receive performance related cash payments. Payments are, in general, only made if performance objectives established by the Compensation Committee of the Board of Directors (the “Committee”) are met.

The Committee previously approved an incentive target opportunity for 2016, expressed as a percentage of base salary, for each participating officer. The Committee also established overall threshold, target and maximum performance metrics for the 2016 APIP. Certain additional goals were established for some officers based on business unit measures. Additionally, the Committee had established an opportunity for an individual performance component whereby the Committee has the authority to increase or decrease the award, subject to the limitations of Section 162(m) of the Internal Revenue Code. The performance measures and weightings were adjusted earnings per share (weighted at 20%), operating cash flow (weighted at 20%), constant currency revenue growth (adjusted to exclude the impact of changes in the translation of foreign currencies into U.S. dollars) (weighted at 20%) and an assessment by the CEO and the Compensation Committee of the Board of Directors of the completion of the Company’s separation (weighted at 40%).

The performance against the 2016 APIP goals was as follows: adjusted earnings per share was below target, operating cash flow was below target, constant currency revenue growth was below target and completion of the separation was at target.