Amendment to MeadWestvaco 2005 Performance Incentive Plan Awards for Long-Service Employees
MeadWestvaco Corporation amended its 2005 Performance Incentive Plan to improve vesting terms for employees aged 55 or older with at least 20 years of service. For these employees, stock options will continue to vest and can be exercised for up to five years after employment ends, within the original ten-year term. Performance-based restricted stock units and cash awards will vest pro-rata based on time served, and service-based restricted stock units will vest in one-year increments, with any unvested portion forfeited. These changes apply to all outstanding equity and cash awards under the plan.
Exhibit 10.47
Amendments to Grants under the MeadWestvaco Corporation 2005 Performance Incentive Plan Amended and Restated Effective February 25, 2013 (2005 Performance Incentive Plan)
On January 27, 2014 the Compensation and Organization Development Committee of the Board of Directors amended the terms and conditions for all outstanding equity and cash awards previously granted under the company’s 2005 Performance Incentive Plan to provide more favorable vesting terms upon termination of employment for any employee age fifty-five or older with twenty or more years of service. In the case of stock options, there would be continued vesting of such awards, with the continued right to exercise such awards for five-years from termination of employment, but not exceeding the original ten year term. In the case of performance-based restricted stock units or cash awards, there would be pro-rata vesting determined by multiplying the amount, if any, earned by attainment of the performance goals attached to such awards by a fraction, the numerator of which is the number of completed full months from the award date to the termination of employment and the denominator of which is 36. In the case of service based restricted stock units, there would be pro rata vesting based on the date of termination of employment in one-year increments from the date of grant and any remaining portion shall be forfeited.
