EXHIBIT 10.22
 
RETENTION INCENTlVE PLAY DESCRIPTION FOR TIERS I-III
 
Participation: 6 key employees.
 
Payment Amount: Each Participating Employee is eligible for a Retention
Incentive Payment equal to an annualized percentage of their base salary as
follows:
 
Teir

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Participating Employee
(Number of Participation)

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Retention Incentive Payment
(Annualized Percentage of Base Salary)

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I
  
Chief Executive Officer(1)
  
120%
II
  
Senior Vice Presidents(2)
  
110%
III
  
Division Presidents(3)
  
85%

 
Time-Based Retention Incentive Payments
 

 
•
 
Two-thirds of the Retention Incentive Payments (the “Time-Based Payments”) for
Participating Employees in Tiers I-III will be paid as follows.

 

 
•
 
Each Participating Employee’s Time-Based Payment will be paid in installments on
March 15, 2002, July 15, 2002, November 15, 2002 and Emergence.

 

 
•
 
In addition, if Emergence has not occurred on or before November 15, 2002, each
Participating Employee will be entitled to an additional payment equal to 25% of
the Participating Employee’s Time-Based Payment, payable on February 15, 2003.

 
Performance-Based Retention Incentive Payments
 

 
•
 
The remaining one-third of the Retention Incentive Payments for Participating
Employees in Tiers I-III will be paid in equal installments upon the achievement
of certain performance targets agreed upon by the Debtors, the Creditors’
Committee and the Secured Lenders.

 
Termination Provisions:
 

 
•
 
Any Participating Employee who voluntarily leaves or is terminated for cause
will forfeit the unpaid portion of their Retention Incentive Payment. Forfeited
portions of Retention Incentive Payments will remain available for distribution
to new participants in the Retention Incentive Plan.

 

 
•
 
Any Participating Employee terminated without cause will receive a pro-rata
portion of the earned but unpaid portion of the Retention Incentive Payment or
the full unearned portion of the Retention Incentive Payment in the event of a
Change of Control.

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SEVERANCE PLAN DESCRIPTION
 
Eligibility: All Participating Employees who are involuntarily terminated, other
than for cause, by the Debtors.
 
Severance Benefits Without Change of Control
 

 
•
 
Severance Pay:

 
Ø
 
Based on base salary plus target annual bonus for Tiers I-IV, base salary only
for Tiers V and VI.

 
Ø
 
No mitigation of cash benefits.

 
Ø
 
Paid as salary continuation.

 

 
•
 
Health Benefits:

 
Ø
 
Tiers I-IV will receive group medical benefits for period equal to severance
period, subject to mitigation.

 
Ø
 
Tiers V and VI will have group medical benefits available to them, at their own
expense through COBRA.

 
Severance Benefits In Event of Change of Control
 

 
•
 
Severance Pay:

 
Ø
 
Based on base salary plus target annual bonus for Tiers I-IV, base salary only
for Tiers V and VI.

 
Ø
 
Paid in lump sum

 

 
•
 
Health Benefits:

 
Ø
 
Tiers I-IV will receive group medical benefits for period equal to severance
period, subject to mitigation.

 
Ø
 
Tiers V and VI will have group medical benefits available to them, at their own
expense through COBRA.

 
Duration of Severance Benefits
 
Tiers

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Severance Plan
(Without Change of Control)

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Severance Plan
(With Change of Control)

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I
  
24 Months
  
36 Months
II
  
18 Months
  
36 Months
III, IV
  
12 Months
  
24 Months
V,VI
  
Greater of (a) 6 months or (b) duration entitled to under prepetition salaried
severance program.
  
Same