Armstrong World Industries 2006 Cash Retention Payment Grant Letter
Armstrong World Industries, Inc. offers a cash retention payment to select key employees as part of a program approved by the U.S. Bankruptcy Court during its Chapter 11 reorganization. Eligible employees will receive a specified cash payment, calculated as a percentage of their annual base salary, if they remain employed through December 28, 2006. If employment ends before this date, the payment is forfeited. The retention payment does not count toward other company benefit plans. The letter confirms participation and outlines the main conditions for receiving the payment.
 | ARMSTRONG WORLD INDUSTRIES, INC. | |
| 2500 COLUMBIA AVE., P.O. BOX 3001 | ||
| LANCASTER, PA 17604 | ||
| 717 ###-###-#### www.armstrong.com |
Exhibit 10.1
PERSONAL & CONFIDENTIAL
<NAME>
<TITLE>
Dear <FIRSTNAME>:
Subject: 2006 Cash Retention Payment
As Armstrong World Industries works toward emerging from its Chapter 11 bankruptcy reorganization, we recognize the importance of retaining those key employees who are vital to the Company’s current and future success. Recently, the U.S. Bankruptcy Court approved a 2006 cash retention payment program that will apply to a limited number of key employees.
I am very pleased to offer you participation in this special retention program with a cash retention payment of <AMOUNT> which represents <PERCENT> of your current annualized base salary. This payment will be made to you on or about December 28, 2006 as long as you continue your employment with Armstrong until this scheduled payment date. If Armstrong World Industries emerges from Chapter 11 reorganization prior to December 28, 2006, you will remain eligible for the full cash retention payment at year end contingent on your continued employment. If your employment is terminated for any reason, voluntarily or involuntarily, prior to December 28, 2006, you will be ineligible for the retention payment.
This retention payment will not be counted for purposes of benefit determination under the Company’s employee benefit plans (pension, savings, life insurance).
On behalf of the Office of the Chairman, we congratulate you on your participation in this special retention program. We are confident that you will continue to make significant contributions to Armstrong’s success and provide the leadership necessary to achieve our future goals.
If you have any questions regarding this information, please contact me.
Sincerely,
