Document:

Exhibit 10.24

PHARMERICA CORPORATION

SUMMARY OF

2014 LONG-TERM INCENTIVE PROGRAM

2014 Long-Term Incentive Program

On March 11, 2014, the Board of Directors of the Corporation, upon recommendation of the Compensation Committee, adopted the 2014 Long-Term Incentive Program (the “LTIP”) under the Omnibus Plan to provide, restricted stock units and performance share unit awards to the Corporation’s executives and certain other officers and employees based on pre-established performance objectives and goals. The LTIP advances the Corporation’s commitment to performance-based compensation practices by providing participants an opportunity to earn equity-based awards upon the achievement of certain pre-established long-term performance objectives. The LTIP also is designed to drive consistent growth of the Corporation over a multiple-year performance period.

Performance Cycle. LTIP performance cycle begins on January 1, 2014 and ends on December 31, 2016.

Award Targets. The amount of the awards under the LTIP are based on individual participant bonus targets and company performance criteria. Individual participant bonus targets are established by the Compensation Committee for each participant based upon the Compensation Committee’s determination of the appropriate bonus target amounts that will enable the Corporation to remain competitive and retain and recruit top employees.

The Compensation Committee established the bonus targets under the LTIP for the Corporation’s principal executive officer, principal financial officer, and other fiscal 2013 Named Executive Officers as follows:

	
Executive

	
 

	
Title

	
 

	
Bonus Target

	
Gregory S. Weishar

	
 

	
Chief Executive Officer

	
 

	
299% of base salary

	
David Froesel

	
 

	
Executive Vice President, Chief Financial Officer and Treasurer

	
 

	
175% of base salary

	
Robert McKay

	
 

	
Senior Vice President of Purchasing and Trade Relations

	
 

	
115% of base salary

	
Thomas Caneris

	
 

	
Senior Vice President, General Counsel, Chief Compliance Officer and Secretary

	
 

	
138% of base salary

The Compensation Committee established the 2014 LTIP awards for the fiscal 2013 Named Executive Officers in the following amounts as a percentage of the bonus target: 50% restricted stock units and 50% performance share units.

 

On March 11, 2014, the Board of Directors, upon recommendation of the Compensation Committee, awarded restricted stock units under the LTIP for the Corporation’s principal executive officer, principal financial officer, and other fiscal 2013 Named Executive Officers as follows:

	
Executive

	
 

	
Title

	
 

	
Restricted Stock Units

(50%  of Bonus Target)

	
 

	
Gregory S. Weishar

	
 

	
Chief Executive Officer

	
 

	
 

	
50,798

	
 

	
David Froesel

	
 

	
Executive Vice President, Chief Financial Officer and Treasurer

	
 

	
 

	
17,316

	
 

	
Robert McKay

	
 

	
Senior Vice President of Purchasing and Trade Relations

	
 

	
 

	
6,803

	
 

	
Thomas Caneris

	
 

	
Senior Vice President, General Counsel, Compliance Officer and Secretary

	
 

	
 

	
8,961

	
 

Performance Criteria. The LTIP performance criteria for the performance share units are tied to company performance. Company performance will be measured for purposes of the performance share units by comparing the Corporation’s Adjusted EBITDA at the end of the performance cycle to a target end-of-performance cycle Adjusted EBITDA set by the Compensation Committee and by comparing the Corporation’s adjusted diluted earnings per share (“Adjusted Diluted EPS”) at the end of the performance cycle to a target end-of-performance cycle Adjusted Diluted EPS set by the Compensation Committee. With respect to all Named Executive Officers, the Adjusted EBITDA target accounts for 70% of their respective performance target and the remaining 30% is determined by achievement of a target measure of Adjusted Diluted EPS.

Award Payouts. Award payouts for the performance share units are based on the percentage of the performance target achieved. Generally, the percentage of the award earned at the end of the performance cycle based on the performance target, excluding the Adjusted Diluted EPS component, shall be determined according to the following schedule; however the actual LTIP award payout will be interpolated between the percentages set forth in the chart based on actual results:

	
Performance Level

	
 

	
Payout Level

	
< 85.0% of Performance Target

	
 

	
0.0% of Award Target

	
85.0% of Performance Target

	
 

	
50.0% of Award Target

	
91.0% of Performance Target

	
 

	
70.0% of Award Target

	
100.0% of Performance Target

	
 

	
100.0% of Award Target

	
109.0% of Performance Target

	
 

	
130.0% of Award Target

	
115.0% of Performance Target

	
 

	
150.0% of Award Target

	
> 115.0% of Performance Target

	
 

	
150.0% of Award Target

 

Generally, the percentage of the award earned at the end of the performance cycle based on the based on the percentage of the Adjusted Diluted EPS performance target achieved shall be determined according to the following schedule; however the actual LTIP award payout will be interpolated between the percentages set forth in the chart based on actual results:

	
Performance Level

	
 

	
Payout Level

	
< 85.0% of Performance Target

	
 

	
0.0% of Award Target

	
85.0% of Performance Target

	
 

	
50.0% of Award Target

	
91.0% of Performance Target

	
 

	
70.0% of Award Target

	
100.0% of Performance Target

	
 

	
100.0% of Award Target

	
109.0% of Performance Target

	
 

	
130.0% of Award Target

	
115.0% of Performance Target

	
 

	
150.0% of Award Target

	
> 115.0% of Performance Target

	
 

	
150.0% of Award Target

Award Agreements. Awards of restricted stock units and performance share units are made under the LTIP pursuant to award agreements with each recipient on the terms described in this Current Report on Form 8-K.

Payment of Awards. Performance share unit awards will be distributed on a specific date by which the Compensation Committee reasonably expects it will be able to determine whether and the extent that the performance target applicable to such award was met. The Corporation will make the distribution of the performance share unit awards to participants as soon as administratively practicable following the date of the award determination.

Vesting and Forfeiture. Recipients of LTIP awards generally must remain continuously employed full-time by the Corporation until the date designated for payout under the applicable award agreement for the LTIP period. Exceptions may be provided for termination of employment by reason of death, disability, without cause, retirement and change in control. The restricted stock units will generally vest in three equal annual installments beginning on the first anniversary of the grant date.

 

Change in Control. In the event of a change in control (“CIC”), acceleration of vesting of restricted stock units will occur if an employee is terminated by the Company without “cause” or the employee voluntarily terminates employment with “good reason” during the 24 month period following a CIC (“Qualifying Termination”). Vesting of restricted stock units will accelerate immediately regardless of a Qualifying Termination if the acquirer does not assume the restricted stock unit awards. If the acquirer assumes the restricted stock unit awards, restricted stock units will continue to vest according to their original vesting schedules; provided that vesting will subsequently accelerate upon a Qualifying Termination within 24 months after the CIC, and unvested restricted stock units would be forfeited upon any other termination (unless otherwise specified by the terms of an employment agreement). With respect to performance share units, in the event of a Qualifying Termination, performance shares units will be converted to time-based restricted stock units at the CIC assuming achievement of 100% the performance targets. Such restricted stock units will have the same terms of the restricted stock units granted pursuant to the 2014 LTIP and shall be deemed to have been granted as of March 11, 2014.

Other Terms & Provisions. Participants are not permitted to transfer LTIP awards, except by will or the laws of descent and distribution. The Corporation is entitled to withhold from any payments of awards under the LTIP or the Omnibus Plan any and all amounts required to be withheld for federal, state and local withholding taxes. The Compensation Committee has the discretion to change terms and conditions of LTIP awards as it deems necessary to ensure that the LTIP awards satisfy all requirements for “performance-based compensation” within the meaning of Section 162(m)(4)(c) of the Internal Revenue Code. In addition to the above conditions, payment of any incentive award is contingent upon the participant executing a written agreement to protect company assets.TG-EX10.21_201412.31-10K

Exhibit 10.21
Summary of Director Compensation for Fiscal 2014
Each member of the Board of Directors who is not an employee of Tredegar or any of its subsidiaries receives the following annual retainers, payable in equal quarterly installments in arrears:
	
				
	Non-Employee Director
	$
	113,000
	

	Chairman of the Board
	$
	65,000
	

	Audit Committee Chairperson
	$
	16,000
	

	Non-Chair Member of the Audit Committee
	$
	9,500
	

	Executive Compensation Committee Chairperson
	$
	11,000
	

	Non-Chair Member of the Executive Compensation Committee
	$
	7,000
	

	Nominating and Governance Committee Chairperson
	$
	7,500
	

	Non-Chair Member of the Nominating and Governance Committee
	$
	4,500
	

	Strategic Finance Committee Chairperson
	$
	11,000
	

	Non-Chair Member of the Strategic Finance Committee Committee
	$
	7,000
	

	Member of the Investment Policy Committee
	$
	625
	

The retainer paid to non-employee directors is paid in cash of $56,500 and in the form of a stock award of $56,500.  The retainer paid to the Chairman of the Board is paid in cash of $32,500 and in the form of a stock award of $32,500.  The stock award is determined based on the closing price of Tredegar common stock as reported on the New York Stock Exchange composite on the date of grant.

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