Performance and Payout Calculations
At the end of the Performance Period, the number of Target Share Units will be adjusted based on the Company’s TSR relative to the Company’s peer group over the threeyear period. The Company’s TSR is ranked among the TSR of all peer companies and the percentile rank is calculated based on the Company’s position in the ranking (e.g. if the Company’s TSR ranks 13^{th} out of 25 companies, the Company is at the 50^{th} percentile). The performance scale is detailed in the following table, with interpolation between the 30^{th} and 90^{th} Percentile Ranks.

 
Company’s Percentile Rank in Peer Group  Shares Earned as Percent of Target (Performance %) 
90^{th} Percentile or Above  200% 
70^{th} Percentile  150% 
50^{th} Percentile  100% 
30^{th} Percentile  50% 
Below 30^{th} Percentile  0% 
Notwithstanding the foregoing, in the event the Company’s TSR is between negative 25% and 0% on an absolute cumulative basis over the Performance Period, then the Performance Percentage for this performance measure will not be more than 150%, and in the event the Company’s TSR is less than negative 25% on an absolute cumulative basis over the Performance Period, then the Performance Percentage for this performance measure will not be more than 100% (i.e., the Performance Percentage for this performance measure is capped at 150% if the Company’s shareholders experience a negative return over the Performance Period and it is capped at 100% if the total negative return over the Performance Period is worse than negative 25%). In addition, notwithstanding the foregoing, if QEP’s average annualized TSR over the Performance Period is equal to or greater than 15% (assuming annual compounding), then the Performance Percentage for this performance measure will not be less than 50% (i.e., there is a 50% floor on the Performance Percentage if the Company’s shareholders earn at least a 15% annualized return over the Performance Period).
If the earned Target Share Units are being paid in cash, the Target Share Units will be converted into cash based on the average closing Company stock price for the fourth quarter of 2020. The actual payout under the Plan at the end of the Performance Period, as set forth in Section 3, is calculated using the following formula, which assumes 100% cash settlement of earned awards:

 
Payout =  (number of Target Share Units awarded) x (performance percentage) x (average closing Company stock price in the fourth quarter of the final year of the Performance Period) 