Adelphia Communications 2005 Performance Retention Plan Grant Letter to Executive
Adelphia Communications confirms the recipient's participation in its 2005 Performance Retention Plan (PRP) as part of their executive compensation. The grant is based on a percentage of the executive's salary and is tied to company financial performance. The award vests monthly over three years after a one-year waiting period, with payment in cash or restricted equity depending on the company's emergence from bankruptcy. Additional details are provided in the PRP plan document. The grant may be prorated if a new incentive plan is adopted after bankruptcy.
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Exhibit 10.2
[ADELPHIA LOGO]
DATE
Executive Name
Dear Nickname,
We are pleased to confirm your eligibility and participation in the Performance Retention Plan (PRP) as part of your executive compensation package. Congratulations! This letter highlights the terms of your 2005 PRP grant.
Under the Performance Retention Plan (PRP), you are awarded, in the form of a grant, an amount equal to xxx% of your salary at target. The 2005 grant is effective January 1, 2005, and is based upon your salary rate in effect at that time.
Awards earned under this plan will be based on company EBITDAR and capital expense results and have the potential to be earned at a value above or below the target grant value. After a one-year waiting period, this grant will vest on a monthly basis in 36 equal installments. Upon emergence from bankruptcy, the vested portion of this PRP award or a 25% minimum amount will be paid in cash. Any unvested portion or the balance will be payable in the form of restricted common equity or units of the reorganized company. The restricted stock or units will vest 50% on the first anniversary of the reorganization and 50% on the second anniversary of the reorganization. Please refer to the PRP plan document previously furnished to you for additional information on the operation of the Plan. If you have questions please call Jerry Rybin on ###-###-####.
Should we emerge from bankruptcy as a stand-alone company, we contemplate having in place a new long-term incentive equity plan. Please be aware that, subject to timing of bankruptcy emergence, your 2005 PRP grant may be prorated in anticipation of the new plan.
It is important that we continue a sharp focus on our operating strategy and deliver superior results. Thank you for your continued dedication and commitment to Adelphia Communications.
Sincerely,
| Bill Schleyer | Ron Cooper | |
| Chairman and CEO | President and COO |
Attachment
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- Exhibit 10.2
