Document:

<PAGE>

                                                                   EXHIBIT 10(v)

                                 USG CORPORATION
                           KEY EMPLOYEE RETENTION PLAN
                         (JULY 1, 2001 - JUNE 30, 2004)

GENERAL PROGRAM DESCRIPTION

The USG Corporation Key Employee Retention Program (KERP) provides eligible
participants with a cash payment equal to a specified percentage of their annual
Base Salary payable in semi-annual installments in return for continued
employment with USG Corporation or one of its participating subsidiaries. To be
eligible for payment of an award for any semi-annual period, the participant
must continue to be an employee in good standing (as defined below) on the last
day of the semi-annual period. The initial Plan was implemented May 16, 2001 and
will continue in effect through June 30, 2004 subject to annual approval by the
Compensation and Organization Committee of the USG Corporation Board of
Directors, or until the bankruptcy court confirms plans of reorganization for
USG Corporation and its subsidiaries, whichever comes first. USG Corporation
retains the right to propose a subsequent retention plan to begin following the
conclusion of the current KERP.

ELIGIBILITY

To be eligible for the Key Employee Retention Program, you must be employed by
USG Corporation or a participating subsidiary, and be eligible to participate in
the USG Corporation Long Term Equity Program.

AWARD AMOUNTS

Awards under the Key Employee Retention Program are computed as a percentage of
annual Base Salary in effect on the first day of the semi-annual award period.
Individual KERP award percentages and projected dollar awards are provided to
each participant in the form of a Statement of Acceptance. Salary increases or
position changes during a semi-annual period will not affect the award during
that period. Such changes will be factored into the award amount effective with
the next semi-annual award period.

                                       90
<PAGE>

AWARD QUALIFICATION

The participant must be an "employee in good standing" of USG Corporation or one
of its participating subsidiaries throughout and including the last day of any
semi-annual period to receive that installment of the KERP award. The first
semi-annual period of the KERP ends on December 31, 2001 and the last ends on
June 30, 2004.

An "employee in good standing" means that the participant is employed by USG or
a participating subsidiary throughout and including the last day of the
semi-annual period in an eligible regular full-time or part-time position that
is not temporary and is actively fulfilling the duties of that position, is on
an approved paid leave from that position, or is on an unpaid leave protected by
statute. This does not include employees on continuing payrolls, unpaid leave
(not protected by statute), or suspension.

AWARD PAYMENT

Awards earned under the plan shall become a liability of USG Corporation or the
appropriate subsidiary as of the last day of any semi-annual period and will be
paid in the next month or as soon as practical. Awards are taxable to the
eligible participant when paid and are considered benefit eligible for the USG
Corporation Retirement Plan, the USG Corporation Investment Plan, and any
supplemental plans that complement these plans, in accordance with the
provisions of those plans.

TERMINATION BY DISABILITY, DEATH, RETIREMENT OR DISCHARGE WITHOUT CAUSE

In the event that an eligible participant in the KERP dies, becomes disabled,
retires or is discharged without cause, that participant may be recommended for
a pro rated award for the current semi-annual period based on the number of full
months worked.

ALL OTHER TERMINATIONS AND VOLUNTARY RESIGNATIONS

Participants whose employment is terminated for any reason other than those
listed above, including voluntary resignation, will not be eligible for a KERP
pro rated award payment for the semi-annual period in which they terminate
employment.

NEWLY ELIGIBLE PARTICIPANTS

Participants who become eligible for the KERP during a semi-annual period
through promotion or who are hired into a position that is eligible to
participate in the USG Corporation Long Term Equity Program may be recommended
for a pro rated award payment for that semi-annual period provided they remain
an "employee in good standing" through the last day of the period. The pro rated
award payment would be based on the number of full months

                                       91
<PAGE>

worked. A participant must be in an eligible position for two full months to
earn a pro rated award.

SPECIAL AWARDS

In addition to the KERP award provided by this program, special awards may be
recommended for any participant (other than Officers of the Corporation) or
non-participant who has made an extraordinary contribution to USG Corporation or
its subsidiaries' welfare or earnings.

GENERAL PROVISIONS

The KERP and its provisions have been approved by the Compensation and
Organization Committee of the USG Corporation Board of Directors, subject to
annual approval by that Committee. Program eligibility, award amounts, award
payments and administrative rules are interpreted, determined and approved by
the Vice President Human Resources, USG Corporation. In the event that the
bankruptcy court confirms plans of reorganization for USG Corporation and its
subsidiaries prior to the end of the plan on June 30, 2004, a pro rata award
will be determined for the current semi-annual period and paid to participants.
In addition, for Corporation officers, a pro-rata portion of the June 30, 2004
award would be paid. For all other participants excluding those with a 30%
annual KERP award, a pro rata portion of the December 31,2002 award would be
paid if the reorganization occurs before that date. Otherwise, a pro rata
portion of the June 30, 2004 KERP award would be paid.

Nothing herein contained shall limit or affect in any manner or degree the
normal and usual powers of management, exercised by the officers and the Board
of Directors or committees thereof, to change the duties or the character of
employment of any employee or to remove the individual from the employment of
the Corporation at any time, all of which rights and powers are expressly
reserved.

                                       92<PAGE>

                                                                   EXHIBIT 10(w)

                                 USG CORPORATION

                         SENIOR EXECUTIVE SEVERANCE PLAN

You are a key member of senior executive team of USG Corporation (hereinafter,
together with its participating subsidiaries, including in particular the
business entity which pays your salary and benefits and which will be primarily
responsible for the performance of the Corporation's obligations under this
Plan, collectively referred to as the "Corporation") The Corporation,
accordingly has an interest in creating and preserving an environment that will
permit you to give undivided attention to your duties and responsibilities. That
interest would be especially strong during the potentially distracting
circumstances created by the current business environment and asbestos
litigation.

The USG Corporation Senior Executive Severance Plan (the "Plan") addresses the
above needs. It is intended to provide you with ongoing compensation and
benefits or a lump sum payment in the event you are involuntarily terminated
between May 16, 2001 and December 31, 2004. The Plan, of course, asks something
of you as well, since in any agreement each party has to promise to do or to
give up something.

Please read the provisions of the Plan that follow. If you find them acceptable
and agree to be bound by them, please so indicate by signing the enclosed
Statement of Acceptance and returning it to the office indicated. You will not
be covered by the Plan until you have taken these steps.

You are under no obligation to participate in the Plan and should feel no
pressure to do so. The Corporation believes the Plan is in both its and your
best interests. Whether you participate, however, is ultimately your decision.
If you do elect to receive severance benefits under this Plan, you will not be
eligible to also receive severance benefits under any other USG severance plan,
employment agreement or termination compensation agreement.

                                       93

<PAGE>

1. IMPORTANT DEFINITIONS

Under this Plan, "employment loss" means:

A.       any actual termination by the Corporation of the Senior Executive's
         employment between May 16, 2001 and December 31, 2004 which is not due
         to voluntary resignation (except as in subsection B below), voluntary
         retirement, death or disability and does not constitute termination for
         "cause" (as defined below); or

B.       a resignation of employment by you due to 1) any reduction in Base
         Salary as in effect on May 16, 2001 or as increased thereafter; or 2)
         any material reduction in title, responsibilities, or authority as in
         effect on May 16, 2001.

"Employment loss" shall not include 1) termination based on "cause," which for
this Plan shall mean continued failure by the Senior Executive to substantially
perform his or her duties after a demand for substantial performance has been
delivered by the Senior Executive's manager specifically identifying the manner
in which it is believed the Senior Executive has not substantially performed his
or her duties; or 2) willful misconduct by the Senior Executive which is
materially injurious to the Corporation or any related or affiliated company.

"Base Salary - Option A" means the sum of the Senior Executive's annual salary
and the par award opportunity for the applicable fiscal year under the annual
incentive portion of the Corporation's Management Incentive Compensation Program
(or any similar annual program in which the Senior Executive then participates)
at the value in effect at the time of termination or May 16, 2001, whichever is
higher. Such sum shall be divided by fifty-two if a weekly figure is desired and
by twelve if a monthly figure is desired.

"Base Salary - Option B" means the Senior Executive's annual salary in effect at
the time of termination. It does not include the par award opportunity for the
applicable fiscal year under the annual incentive portion of the Corporation's
Management Incentive Compensation Program (or any similar annual program in
which the Senior Executive then participates). Such sum shall be divided by
fifty-two if a weekly figure is desired and by twelve if a monthly figure is
desired.

2. INITIAL ELIGIBILITY AND COMMITMENTS

All Senior Executives (as defined herein) are eligible to participate in this
Plan. A "Senior Executive" is an employee who between May 16, 2001 and December
31, 2004 has an in-force two year Employment Agreement with the Corporation or
one of its domestic subsidiaries.

Under this Plan, the Senior Executive agrees to remain in the employ of the
Corporation through the close of business on December 31, 2004, except as may be
permitted by other provisions of this Plan or any employment agreement. It is
understood that nothing in this document shall be construed as limiting the
Corporation's right to terminate employment at any time, subject only to
providing the compensation and benefits to which the Senior Executive would be
entitled under this Plan or under any employment agreement in effect at the time
of termination. Payment of compensation and benefits to which the Senior
Executive is entitled under this Plan or under any employment agreement shall
constitute the Senior

                                       94
<PAGE>

Executive's sole remedy in the event of employment loss regardless of whether
compensation and benefits are payable under this Plan or under the provisions of
any employment agreement.

3. COMMITMENTS OF THE CORPORATION

Compensation and benefits shall become due and payable under this Plan if the
Senior Executive suffers an employment loss as defined under this plan between
May 16, 2001 and December 31, 2004 in which case the Senior Executive may elect
to receive either Option A or Option B but not both.

                                    Option A

The Corporation shall be obligated to pay and provide the Senior Executive for
twenty-four full months the following:

         -        Base Salary - Option A as defined above in this Plan, plus

         -        Participation in all benefits to which the Senior Executive
                  would normally be entitled including, but not limited to, all
                  retirement and investment plans, all life, health and
                  disability insurance, and all salary continuation plans,
                  together with bonuses and such other grants of additional
                  compensation or supplemental benefits as may be granted from
                  time to time (subject to periodic changes in such benefits as
                  are applicable generally to all Senior Executives in the
                  plans). This participation would not include continued
                  participation in the Key Employee Retention Plan, the
                  retention of a company vehicle, computer and office equipment,
                  or company paid club memberships.

The Corporation also shall be obligated to pay to the Senior Executive an amount
equal to all legal fees and expenses incurred by the Senior Executive to enforce
any right or benefit under this Plan. The Corporation shall not have an
obligation to pay such amount, however, if a court has decided that there has
been no "employment loss" as defined under this plan.

Any stock option granted to the Senior Executive under any long-term equity plan
of the Corporation ("Equity Plan") but not yet exercisable, any restricted stock
granted to the Senior Executive under any Equity Plan and not yet freed of
restrictions, and any other equity awards or incentives shall be dealt with, for
time and performance vesting and all other purposes as if the Senior Executive
continued as an employee of the Corporation during the period of payments under
this Option A.

The compensation and benefits paid under this Option A shall be subject to
deductions required by law or authorized by the Senior Executive.

During the twenty four full months of payments under Option A of this Plan the
Senior Executive will not engage or participate, directly or indirectly, as a
partner, officer, director, employee, advisor, or otherwise, in any corporation,
business, or activity which competes with

                                       95
<PAGE>

the Corporation or any of its subsidiary companies in the manufacture or sale of
any line of products in any state of the United States, any province of Canada
and any state of Mexico where the Corporation manufactures or sells its
products. Further the Senior Executive will not directly or indirectly through
another entity; induce or attempt to induce any employee of the Corporation to
leave the employ of the Corporation, or in any way interfere with the
relationship between the Corporation and any employee thereof; hire any person
who was an employee of the Corporation at any time during the Senior Executive's
period of employment with the Corporation, or induce or attempt to induce any
customer, supplier, licensee, licensor, franchisee or other business relation of
the Corporation to cease doing business with the Corporation or in any way
interfere with the relationship between any such customer, supplier, licensee,
licensor, franchisee or business relation and the Corporation, including,
without limitation, by making any negative statements or communications about
the Corporation or its products, services or business opportunities. The Senior
Executive acknowledges that the Corporation's agreement to pay the compensation
and benefits set forth in this Plan is conditioned upon the Senior Executive's
faithful performance of obligations under this paragraph. If the Senior
Executive fails to do so, the Senior Executive agrees that the Corporation will
be relieved of any obligation to make any further payments under the Plan.

                                    Option B

The Corporation shall, within thirty days of receipt of a signed and unaltered
Agreement and General Release, be obligated to pay the Senior Executive a lump
sum equal to:

         -        one and one half (1.5) weeks of Base Salary - Option B as
                  defined above in this Plan for each full year of continuous
                  service with the Corporation or any of its subsidiaries at the
                  rate in effect immediately prior to such termination subject
                  to a minimum of two months Base Salary - Option B, plus

         -        two weeks of Base Salary - Option B at the rate in effect
                  immediately prior to such termination date, for each full
                  $15,000 of annualized Base Salary - Option B at the same rate,
                  plus

         -        a lump sum cash payment equal to the cost of continuation of
                  the Senior Executive's current level of medical, vision and
                  dental benefits for a period equal to the total number of
                  whole weeks provided under the preceding service and
                  compensation components, plus

         -        career counseling and job search assistance selected by and
                  fully paid for by the Corporation.

The benefit under Option B shall not exceed twenty-four months of Base Salary -
Option B at the rate in effect at the date of termination and of course shall be
subject to deductions required by law or authorized by the Senior Executive. The
benefit under Option B shall not include the benefits under the Key Employee
Retention Plan. No such payment under Option B of this Plan shall be considered
as pay for purposes of the USG Corporation Retirement Plan or the USG
Corporation Investment Plan.

                                       96
<PAGE>

4. NO MITIGATION

The Senior Executive will not be required to mitigate the amount of the above
pay-out by seeking other employment or otherwise, nor shall such amount be
reduced by any compensation received from other employment. The Corporation, of
course, shall also be obligated to pay full salary through the date of
termination plus accrued unused vacation.

5. BINDING ON SUCCESSORS

The Corporation shall be obligated to require any successor (whether direct or
indirect, by purchase, merger, consolidation, or otherwise) to all or
substantially all of the business and/or assets of the Corporation or the
appropriate subsidiary, by a written agreement which is part of such
transaction, to assume and perform in their entirety all provisions of this
Plan.

6. CERTAIN TERMINATION PROCEDURES

Any claims of employment loss under this plan must be communicated in writing to
the Vice President Human Resources, USG Corporation within one hundred-eighty
(180) days of the employment loss and shall indicate the specific provisions of
this Plan relied on and shall set forth in reasonable detail all relevant facts
and circumstances to support a claim of employment loss under this plan.

The Senior Executive's failure to assert a claim of employment loss under this
Plan within one hundred eighty (180) days of the employment loss shall be deemed
a waiver of such claim.

7. EFFECTIVE PERIOD OF THE PLAN

This plan will be in effect from May 16, 2001 through the close of business on
December 31, 2004, at which time it shall terminate.

This Plan shall not be terminated earlier or otherwise amended without the prior
written consent of both the Senior Executive and the Corporation.

8. ADMINISTRATIVE RULES AND DETERMINATIONS

Administrative guidelines for the Senior Executive Severance Plan are developed
and administered by the Vice President - Human Resources, USG Corporation, who
shall have full power to interpret the rules and regulations and to determine
and distribute awards.

Nothing herein contained shall limit or affect in any manner or degree the
normal and usual powers of management, exercised by the officers and the Boards
of Directors or committees thereof, to change the duties or the character of
employment of any employee of the Corporation or to remove the individual from
the employment of the Corporation at any time, all of which rights and powers
are expressly reserved.

                                       97

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]