This excerpt taken from the HAS DEF 14A filed Apr 6, 2009.
90% achievement of each target under the contingent stock performance awards was established as a threshold to that metric contributing to the ultimate award payout. Each stock performance award has a target number of shares of common stock, a portion of which may be earned by the recipient if the Company achieves at least 90% of the stated EPS and/or Revenue targets over the Performance Period. For example, 90% achievement of both of the performance metrics corresponds with a planned payout of 85% of the target number of shares. The actual number of shares to be received at the end of the Performance Period can be below or above the target number based on the actual levels of the target performance achieved against the two metrics. In all cases the Committee retains the right to reduce the number of actual shares received pursuant to any award to any level, including 0%, to the extent it believes the actual payout should be below the number called for by the award agreements.
For the first grant of contingent stock performance awards, which were made in July of 2006, the performance period ended in December 2008. The table set forth below shows how the Company performed against the net revenues and EPS performance metrics set forth in the 2006 contingent stock performance awards. The revenue performance of 109% of target, and the EPS performance of 116% of target, together resulted in a payout under these contingent stock performance awards of 115% of target.