# OWENS CORNING KEY EMPLOYEE
EMERGENCE INCENTIVE PLAN

|1. | Purpose. This Owens Corning Key Employee Emergence Incentive Plan has
          been established by Owens Corning for designated key employees of the Company.
          The purpose of the Plan is to provide an incentive to Participants to remain in
          the employ of the Company through the date of the Companys emergence from
          Chapter 11 bankruptcy, and to expedite its emergence to the greatest extent
          possible.
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|2. | Definitions. For purposes of this Plan:
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|a. | Board shall mean the Board of Directors of Owens Corning.
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|b. | Cause shall mean acts of gross misconduct, gross insubordination,
          embezzlement, fraud, misappropriation of funds, property or trade secrets (in
          each case as determined by the Committee), or the commission of any felony under
          state or federal law.
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|c. | Committee shall mean the Compensation Committee of the Board.
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|d. | Company shall mean Owens Corning, a Delaware Corporation, and each
          of its subsidiaries.
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|e. | Disability shall mean the Participants entitlement to benefits
          under any long term disability plan or program of the Company.
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|f. | Effective Date means January 1, 2002.
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|g. | Emergence shall mean the effective date of a Plan of Reorganization
          confirmed in the Chapter 11 proceedings.
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|h. | Emergence Amount shall mean, with respect to each Participant, the
          amount payable under the Plan in accordance with Section 5(a) hereof.
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|i. | Emergence Date shall mean the date of Emergence, as defined.
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|j. | Nonqualifying Severance shall mean any termination of a
          Participants employment with the Company after the Effective Date and
          before the earlier of the Emergence Date or December 31, 2003, in other than a
          Qualifying Severance.
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|k. | Participant shall mean an employee of the Company who participates
          in the Plan in accordance with Section 4 hereof.
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|l. | Plan shall mean this Owens Corning Key Employee Emergence Incentive
          Plan, as amended from time to time.
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|m. | Qualifying Severance shall mean the termination of a
          Participants employment with the Company after the Effective Date and
          before the earlier of the Emergence Date or December 31, 2003: (i) by the
          Company other than for Cause, or (ii) by reason of death or Disability.
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|3. | Administration.
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|a. | The Plan shall be administered by the Committee, which shall have complete
          authority to determine who shall participate herein and the Emergence Amount
          applicable to each Participant, to interpret the Plan, to prescribe, amend and
          rescind rules and regulations relating to it, and to make all other
          determinations necessary or advisable for the administration of the Plan.
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|b. | The Committee is authorized, on behalf of the Plan, to engage accountants, legal
          counsel and such other personnel as it deems necessary or advisable to assist it
          in the performance of its duties under the Plan. All reasonable expenses thereof
          shall be borne by the Company.
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|c. | All decisions made by the Committee pursuant to the provisions of the Plan shall
          be final, conclusive and binding on all persons, including the Company and the
          Participants. No member of the Board or the Committee, nor any officer or
          employee of the Company acting on behalf of the Board or the Committee, shall be
          personally liable for any action, determination, or interpretation taken or made
          in good faith with respect to the Plan, and all members of the Board or the
          Committee and each and any officer or employee of the Company acting on their
          behalf shall, to the extent permitted by law, be fully indemnified and protected
          in respect of any such action, determination or interpretation.
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|d. | The Committee may delegate any of its duties hereunder to such person or persons
          as it may designate from time to time.
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|4. | Participation. The Committee shall, in its sole discretion, select the
          employees of the Company who shall participate in the Plan. As a condition to
          participation in the Plan, each such employee shall execute an agreement, in
          such form as the Committee may require, acknowledging his or her participation
          in the Plan and his or her intent to remain employed by the Company through the
          Emergence Date.
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|5. | Payments.
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|a. | In General. Each Participant who remains employed by the Company through
          the earlier of the Emergence Date or December 31, 2003 shall receive a cash
          payment from the Company equal to the Emergence Amount established by the
          Committee for the Participant, as set forth in the letter informing the
          Participant of his or her participation in the Key Employee Emergence Incentive
          Plan (dated May 29, 2001). There shall be no requirement of uniformity of
          Emergence Amount among Participants.
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|b. | Qualifying Severance. Each Participant who terminates employment with the
          Company under a Qualifying Severance shall receive a cash payment from the
          Company equal to his or her Emergence Amount multiplied by a fraction, the
          numerator of which is the number of calendar months (including fractional
          months) from the Effective Date until the date of the Qualifying Severance, and
          the denominator of which is 24.
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|c. | Nonqualifying Severance. No payment shall be made under the Plan in
          respect of a Participant who incurs a Nonqualifying Severance.
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|d. | Form and Timing of Payment. In general, payments under this Section 5
          shall be made in a lump sum. In the case of a payment pursuant to subsection (a)
          above, such payment shall be made as soon as practicable following the earlier
          of the Emergence Date or December 31, 2003 (but in any case not sooner than
          January 1, 2003), and in the case of a payment pursuant to subsection (b) above,
          such payment shall be made as soon as practicable following the date of the
          Qualifying Severance.
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|6. | General Provisions.
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|a. | Compliance with Legal Requirements. The Plan, the payment of amounts
          hereunder, and the other obligations of the Company under the Plan shall be
          subject to all applicable federal and state laws, rules and regulations, and to
          such approvals by any regulatory or governmental agency as may be required.
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|b. | Nontransferability. No Participant shall have the right to alienate,
          anticipate, commute, pledge, encumber or assign any of the benefits or payments
          which he or she may expect to receive, contingently or otherwise, under this
          Plan.
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|c. | No Right To Continued Employment. Nothing in the Plan shall confer upon
          any Participant the right to continue in the employ of the Company or to be
          entitled to any remuneration or benefits not set forth in the Plan or to
          interfere with or limit in any way the right of the Company to terminate such
          Participants employment, which remains at will.
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|d. | Effect on Other Benefits. Amounts paid or payable hereunder shall not be
          treated as compensation for purposes of determining benefit amounts or accruals
          under any employee pension or benefit plan, program or arrangement maintained by
          the Company.
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|e. | Severability. If any provision of this Plan shall be held invalid or
          unenforceable, such invalidity or unenforceability shall not affect any other
          provisions hereof, and this Plan shall be construed and enforced as if such
          provisions had not been included.
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|f. | Successors. This Plan shall be binding upon the heirs, executors,
          administrators, successors and assigns of the parties, including each
          Participant and any successor to the Company.
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|g. | Construction. The headings and captions herein are provided for reference
          and convenience only, shall not be considered part of the Plan, and shall not be
          used in the construction of the Plan.
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|h. | Withholding Taxes. All amounts to be paid hereunder to Participants shall
          be paid net of any taxes that the Company may be required to withhold therefrom
          in respect of any federal, state, local or other taxes.
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|i. | Amendment, Termination and Duration of the Plan. The Committee may at any
          time and from time to time alter, amend, suspend, or terminate the Plan in whole
          or in part. The Plan shall terminate on the earlier of the Emergence Date or
          December 31, 2003, provided that all amounts not yet paid on the Emergence Date
          shall be paid thereafter in accordance with the terms hereof.
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|j. | Unfunded Plan. The Plan is intended to constitute an unfunded
          plan for incentive compensation. With respect to any payments not yet made to a
          Participant hereunder, nothing contained in the Plan shall give any such
          Participant any rights in any assets of the Company that are greater than those
          of a general creditor of the Company.
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|k. | Beneficiary. A Participant may file with the Committee a written
          designation of a beneficiary on such form as may be prescribed by the Committee
          and may, from time to time, amend or revoke such designation. If no designated
          beneficiary survives the Participant, the executor or administrator of the
          Participants estate shall be deemed to be the Participants
          beneficiary.
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|l. | Governing Law. The Plan and all determinations made and actions taken
          pursuant hereto shall be governed by the laws of the State of Delawarewithout giving effect to the conflict of laws principles thereof.
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