Armstrong World Industries 2005 Cash Retention Payment Grant Letter
Armstrong World Industries, Inc. offers a select employee a cash retention payment as part of a special program approved by the U.S. Bankruptcy Court. The payment, calculated as a percentage of the employee's annual base salary, will be made around December 29, 2005, provided the employee remains employed through that date. If employment ends before then, the payment is forfeited. The payment does not count toward other employee benefits and must be kept confidential. The program aims to retain key employees during the company's Chapter 11 reorganization.
| | 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: 2005 Cash Retention Payment
As Armstrong World Industries prepares to emerge 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 2005 cash retention payment program that will apply to a limited number of key employees for this purpose.
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 29, 2005 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 29, 2005, 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 29, 2005, 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).
It is important that you keep the details of this cash retention payment confidential. You should not assume that your manager or associates are participants in this program. Eligibility was not determined solely by grade level.
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 or Scott Webster.
Sincerely,
Armstrong World Industries, Inc.
