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Exhibit 10.1  


 
 

Adelphia Communications Corporation
  2005 Short-Term Incentive Plan    
    


1.     Purpose  


        The purpose of the Adelphia Communications Corporation 2005 Short-Term Incentive Plan (the "STIP") is to attract, retain and motivate highly-qualified
employees by providing appropriate short-term incentive awards that link each employee's compensation to the business objectives of Adelphia Communications Corporation (the "Company"). By
placing a portion of the employee's compensation at risk, the Company can reward performance based on the satisfaction of Company and individual performance goals. 


2.     Effective Date  


        The effective date of the STIP is January 1, 2005. No awards will be granted or paid under the STIP with respect to any plan year other than the plan year
beginning January 1, 2005 and ending December 31, 2005. 


3.     Eligibility and Participation  



        a.     Except as provided in Section 3(b), Company employees at the General Manager level (who lead the operations of a
local system or systems) or hold a higher position or title with the Company are generally eligible to participate in the STIP. Employees must be notified in writing by the Chief Executive Officer or
the President of the Company to be eligible to receive an award under the STIP. 


        b.     The following employees are not eligible to participate in the STIP: 




	i.
	Employees on a sales commission plan or sales incentive plan;



	ii.
	Temporary, term and leased employees, contract workers and interns; or



	iii.
	Employees not on the Company payroll on the date that STIP awards are paid. 





        c.     Eligible employees who are on the Company payroll or serving in an eligible position for only a portion of 2005 or for
whom the STIP is effective after January 1, 2005, will have their STIP award pro-rated to reflect the portion of the year such employee participated in the STIP. Employees
performing below a satisfactory level may forfeit their right to receive a STIP award. 


        d.     Eligible employees are covered under one of the following two STIP arrangements based on the location of the employee's
principle place of employment: 




	i.
	Corporate Plan—covers employees who work in the Company's headquarters in Greenwood
Village, Colorado or one of the Company's centralized operations; or



	ii.
	Region Plan—covers employees who are employed with respect to a specific region of
the country, as designated by the Compensation Committee of the Company's Board of Directors (the "Compensation Committee") or its designee (each, a "Region"), and who are not covered under the
Corporate Plan. 





        e.     Except as provided in an individual employment agreement with an employee, the STIP is the sole short-term
incentive arrangement under which employees of the Company are entitled and eligible to participate. 


        f.      No employee will have any claim to be granted any award under the STIP, and there is no obligation for uniformity of
treatment among employees participating in the STIP. In addition, nothing in the STIP or in any award granted shall confer on any employee the right to continue in the employ of the Company or its
affiliates or to be entitled to any remuneration or benefits not

 
set forth in the STIP or to interfere with or limit in any way the right of the Company to terminate such employee's employment. 




4.     Company Performance Criteria  



        a.     Target awards under the STIP will be awarded based on a percentage of the employee's base pay,
depending upon the employee's job title. Actual awards may be less (or more) than the target award amounts, depending on satisfaction of Company, Region
and individual performance goals. 


        b.     Under the Corporate Plan, subject to adjustment based on the satisfaction of individual performance goals (as provided in
section 4(d)), an eligible employee's bonus will first be determined based on the Company's operating and financial performance. The Company's performance goals or measures will be weighted
based on percentages determined by the Compensation Committee or its designee, in its sole discretion. The Company's performance will be measured using the following criteria: 



	•
	Basic
Subscribers;



	•
	Revenue;



	•
	Operating
Cash Flow;



	•
	Capital
Expenditures;



	•
	Customer
Care; and



	•
	Internal
Controls. 




        c.     Under the Region Plan, subject to adjustment based on the satisfaction of individual performance goals (as provided in
section 4(d)), an eligible employee's bonus will first be determined based: 




	i.
	75% on the financial and operating performance for the relevant Region, as determined by the Compensation Committee or its
designee, in its sole discretion, and



	ii.
	25% on the Company's operating and financial performance (as described above in section 4(b)). 






        The
performance goals for each Region will be based on the same performance measures and weightings used for the Corporate Plan, as provided in section 4(b). 



        d.     Once the Company and Region performance results are determined, as provided in Sections 4(b) and 4(c), an eligible
employee's estimated award may be revised, upward or downward, based on individual performance/results achieved, as determined by such employee's supervisor(s), subject to review and approval, as
necessary, by the Compensation Committee or its designee. However, a supervisor may not make overall bonus recommendations for his/her Region or the Company as a whole that exceed the sum of each
individual in his/her Region's total eligible award. 




5.     Payment of Awards  


        During the 1st quarter of 2006, the Chief Executive Officer and the President of the Company will determine if the Company and each Region has
achieved their previously established performance targets and goals, subject to approval by the Compensation Committee. Unless otherwise determined by the Compensation Committee or except as provided
under Sections 3(b)(iii) and 3(c), awards, if earned, will be paid to all eligible employees by March 14, 2006. All awards shall be made in cash.

 


6.     Administration, Miscellaneous  



        a.     The Plan will be administered by the Compensation Committee. The Compensation Committee shall have the authority in its
sole discretion, subject to and not inconsistent with the express provisions of the STIP, to administer the STIP and to exercise all the powers and authorities either specifically granted to it under
the STIP or necessary or advisable in the administration of the STIP, including without limitation, the authority to grant awards; to determine the persons to whom and the time or times at which
awards shall be granted; to determine the terms and conditions, restrictions and performance goals and criteria relating to any award (including whether such performance goals and criteria have been
attained); and to make adjustments to performance goals in response to changes in applicable laws, regulations or accounting principles. 



        b.     The Company shall deduct from all payments made under the STIP any distributions or taxes required to be made or withheld
by federal, state or local governments. 


        c.     The grant of an award under the STIP is by no means a guarantee that an award will be paid, but is based on the
satisfaction of the performance criteria, as determined by the Compensation Committee. 












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Adelphia Communications Corporation 2005 Short-Term Incentive Plan