Document:

EXHIBIT
10.16.10

 

ADELPHIA COMMUNICATIONS
CORPORATION

PERFORMANCE RETENTION PLAN

 

 

1.                                      PURPOSE

 

The purpose of this Plan is to attract highly
qualified employees, and to encourage highly qualified employees of the Company
to continue their employment with the Company during the period of the Company’s
restructuring by establishing a plan that provides annual incentive awards
based on the Company’s performance.

 

2.                                      DEFINITIONS

 

The following terms, as used herein, shall
have the following meanings:

 

(a)                                  “Approval
Date” means the date of issuance of an order by the Bankruptcy Court, upon
notice and hearing, approving the Plan, upon which the Plan shall become
effective.

 

(b)                                 “Award”
means an incentive award granted pursuant to this Plan.

 

(c)                                  “Bankruptcy
Code” shall mean The Bankruptcy Reform Act of 1978, as heretofore and hereafter
amended.

 

(d)                                 “Bankruptcy
Court” means the United States Bankruptcy Court for the Southern District of
New York, such court having jurisdiction over Chapter 11 cases currently pending
with respect to the Company.

 

(e)                                  “Base
Salary” means the Participant’s base annual salary as of the date an Award is
granted, excluding any overtime, bonuses, commissions, other special payments
or any other allowance.

 

(f)                                    “Board”
means the Board of Directors of the Company.

 

(g)                                 “Committee”
means the Compensation Committee of the Board.

 

(h)                                 “Company”
means Adelphia Communications Corporation, a corporation organized under the
laws of the State of Delaware, or any successor corporation.

 

(i)                                     “Consummation
of the Restructuring” means the earliest to occur of (A) the date of
consummation of a plan of reorganization of, or involving, the Company in
accordance with Chapter 11 of the Bankruptcy Code that has been confirmed by an
order of the Bankruptcy Court, or (B) the date on which a sale of substantially
all of the assets of the Company is consummated pursuant to a sale in
accordance with §363 of the Bankruptcy Code.

 

(j)                                     “EBITDAR”
means, for any period, the consolidated earnings of the Company, determined
before reduction by, (A) consolidated interest expense, (B) total income tax
expense, (C) total depreciation expense, (D) total amortization expense, and
(E) total restructuring-related fees and expenses, normalized for accounting
adjustments, changes in

 

 

accounting policies and asset sales, in each case determined by the
Company in accordance with GAAP applied on a consistent basis.

 

(k)                                  “EBITDAR
Target” means the EBITDAR target amount established by the Company for its
business plan for each Plan year for purposes of calculating Awards granted
under the Plan; provided that the Plan Administrator shall have discretion to
adjust EBITDAR Targets and associated Awards on an equitable basis for
extraordinary events or other events not within the control of Participants.

 

(l)                                     “Participant”
means a full-time employee of the Company who has received written notice from the Plan Administrator that
he or she has been selected for participation in the Plan for a particular Plan
year.

 

(m)                               “Plan”
means the Adelphia Communications Corporation Performance Retention Plan.

 

(n)                                 “Plan
Administrator” means the Committee, provided that the Committee may delegate
administrative responsibility to corporate officers in its discretion.

 

3.                                      ELIGIBILITY

 

Participation shall be limited to
Participants who have received written notification from the Company that they
have been selected to participate in the Plan. 
Participants shall receive a separate written notification with respect
to each Plan year the Participant is eligible to participate in the Plan, which
shall specify, among other things, the Award grant date, and such Participant’s
target Award.

 

4.                                      TARGET
AWARDS

 

(a)                                  Except
as otherwise provided herein, Participants will be eligible for an annual
target Award, which shall be based on the percentage of the Participant’s Base
Salary, title and job responsibilities. 
Annual target Awards may range from 25% to 200% of a Participant’s Base
Salary, as determined by the Plan Administrator.

 

2

 

(b)                                 The
amount of each annual Award will be determined based on the Company’s financial
performance as compared to the EBITDAR Target, and will equal the product of
(i) the Participant’s target Award for the relevant Plan year based on the table
provided in Section 4(a) above, and (ii) the percentage of the EBITDAR
Target that is achieved for the relevant Plan year.

 

	
  % of

  EBITDAR Target

  achieved for

  Plan Year

  	
   

  	
  Total
  Award

  (as a percentage of the

  Target Award)

  
	
  90%

  	
   

  	
  0%

  
	
  91%

  	
   

  	
  10%

  
	
  92%

  	
   

  	
  25%

  
	
  93%

  	
   

  	
  40%

  
	
  94%

  	
   

  	
  55%

  
	
  95%

  	
   

  	
  70%

  
	
  96%

  	
   

  	
  80%

  
	
  97%

  	
   

  	
  85%

  
	
  98%

  	
   

  	
  90%

  
	
  99%

  	
   

  	
  95%

  
	
  100%

  	
   

  	
  100%

  
	
  101%

  	
   

  	
  105%

  
	
  102%

  	
   

  	
  110%

  
	
  103%

  	
   

  	
  115%

  
	
  104%

  	
   

  	
  120%

  
	
  105%

  	
   

  	
  130%

  
	
  106%

  	
   

  	
  145%

  
	
  107%

  	
   

  	
  160%

  
	
  108%

  	
   

  	
  175%

  
	
  109%

  	
   

  	
  190%

  
	
  110%

  	
   

  	
  200%

  

 

3

 

(c)                                  Participants
shall receive a pro-rata Award for the Plan year during which the Participant
commences participation in the Plan, based on the ratio of number of full
months that the Participant worked at the Company during such Plan year, to 12.

 

(d)                                 Notwithstanding
the foregoing, in the event the Company’s capital expenditures for any Plan
year are greater than or equal to 105%, but less than 110%, of the budgeted
amount of the Company’s capital expenditures for such Plan year, each
Participant’s Award for such Plan year, as determined pursuant to Section 4(b)
herein, shall be reduced by 33.3%.  In
the event capital expenditures for any Plan year are greater than or equal to
110%, but less than 115%, of the budgeted amount of capital expenditures for
such Plan year, each Participant’s Award, as determined pursuant to Section 4
(b) herein, shall be reduced by 66.6%. 
In the event capital expenditures for any Plan year are greater than or
equal to 115% of the budgeted amount of capital expenditures for such Plan
year, no Award shall be payable to any Participant for such Plan year,
regardless of the Award amount determined pursuant to Section 4(b)
herein.  Determinations regarding the
level of capital expenditures in relation to budget for any Plan year shall be made
by the Plan Administrator.

 

5.                                      AWARD VESTING

 

Subject to the provisions of Section 6
herein, (a) the Award granted to a Participant for the Plan year during which
the Participant first commences participation in the Plan will vest in 36 equal
monthly installments (2.777% per month) as of the last day of each month
commencing with the twelfth month following the month in which the Participant
begins participation in the Plan, and (b) any subsequent Awards will vest in 36
equal monthly installments (2.777% per month) commencing as of January 31
of the year immediately following the Plan year with respect to which the Award
was granted.

 

6.                                      TREATMENT
OF AWARDS UPON CONSUMMATION

 

(a)                                  Subject
to Section 6(b) herein, upon the Consummation of the Restructuring, (i)
the portion of each Award that is vested shall be paid in cash, in a lump sum,
on the date of such Consummation of the Restructuring, provided that if less
than 25% of an Award is vested as of such date, an amount equal to 25% of such
Award shall vest and be paid in cash on such date, and (ii) the aggregate
unvested portion of all Awards granted to a Participant shall be payable in the
form of restricted stock of the reorganized Company with an aggregate value
equivalent to such aggregate unvested portion. 
The number of shares of restricted stock so granted shall be determined
by the Committee, with the assistance of a nationally recognized independent
compensation consultant, and shall vest in two equal annual installments as
follows:  50% on each of the first and
second anniversaries of the Consummation of the Restructuring.  The restricted stock shall have such other
terms and conditions as are determined by the Committee, which shall not be
inconsistent with this Section 6(a) and Section 7.

 

(b)                                 If
the Consummation of the Restructuring does not occur on or before the second
anniversary of the date on which the Participant’s Award is granted, subject to
Section 7 herein, 50% of the portion of such Award which is vested on such
date shall be paid in cash, in a lump sum, on the second anniversary of the
date the Award is granted, and the remaining portion of the Award which is
vested on the Consummation of the Restructuring will be paid in cash, in

 

4

 

a lump sum, on the date of such consummation.  The aggregate value of all unvested Awards
granted to a Participant shall be converted to shares of restricted stock, in
the same manner described, and with same terms set forth, in Section 6(a)
herein.

 

(c)                                  Notwithstanding
the foregoing, in the event the Consummation of the Restructuring occurs as
provided in Section 2(i)(B), the Compensation Committee may provide, in
its discretion, that all Awards (both vested and unvested) shall be paid
(without duplication) in cash, in a lump sum, on the date such consummation
occurs.

 

7.                                      TERMINATION
OF EMPLOYMENT

 

(a)                                  In
the event a Participant’s employment with the Company terminates for any reason
other than termination by the Company for Cause prior to the date on which an
Award is scheduled to be paid as provided in Section 6 herein, such
Participant (or his/her beneficiary in the event of death) shall be entitled to
payment of the vested portion of his/her Award as determined by the Plan
Administrator in accordance with the provisions of Sections 5 and 6
herein.  Such pro-rata Award shall be
paid to the Participant at the same time and in the same form as Awards for
such Plan year are paid to other Participants in the Plan.

 

(b)                                 In
the event any Participant’s employment is terminated by the Company for Cause,
all Awards granted to such Participant (vested or unvested) shall be forfeited,
and such Participant shall be ineligible to receive any payment or settlement
of an Award under this Plan.

 

(c)                                  With
respect to any Participant who has entered into an employment agreement with
the Company, “Cause” shall have the meaning ascribed thereto in such employment
agreement.  With respect to any other
Participant, the Company shall have “Cause” to terminate such Participant’s
employment if such Participant has: (i) refused or repeatedly failed to perform
the duties assigned to him/her; (ii) engaged in a willful or intentional act
that has the effect of injuring the reputation or business of the Company in
any material respect; (iii) continually or repeatedly been absent from the
Company, unless due to serious illness or disability; (iv) committed an act of
gross misconduct, fraud, embezzlement or theft against the Company; or (v)
violated a material Company policy.

 

8.                                      GENERAL
PROVISIONS

 

(a)                                  Payments
under this Plan shall not constitute wages and shall be paid by the Company
from the general assets of the Company, as applicable; provided that no
director, officer, agent or employee of the Company shall be personally liable
in the event the Company is unable to make any payments under this Plan due to
a lack of, or inability to access, funding or financing, legal prohibition
(including statutory or judicial limitations) or failure to obtain any required
consent.  Notwithstanding anything in
this Plan to the contrary, any payments to be made hereunder shall only be made
as and to the extent the Company has adequate funding therefor.

 

(b)                                 Payments
under this Plan are subject to Federal, state and local income tax withholding
and all other applicable federal, state and local taxes.  The Company shall withhold, or cause to be
withheld, from any payments made hereunder all applicable Federal, state and

 

5

 

local withholding taxes and may require the employee to file any
certificate or other form in connection therewith.

 

(c)                                  Nothing
contained herein shall give any employee the right to be retained in the
employment of the Company or any successor, or affect the Company’s right to
dismiss any employee at will.

 

(d)                                 This
Plan is not a term or condition of any individual’s employment and no employee
shall have any legal right to payments hereunder except to the extent all
conditions relating to the receipt of such payments have been satisfied in
accordance with the terms of this Plan as set forth herein.

 

(e)                                  Nothing
contained herein shall give an employee any right to any employee benefit upon
termination of employment with the Company, except as required by law or
provided by the terms of another employee benefit plan document relating to the
treatment of former employees generally.

 

(f)                                    No
person having a benefit under this Plan may assign, transfer or in any other
way alienate the benefit, nor shall any benefit under this Plan be subject to
garnishment, attachment, execution or levy of any kind.

 

9.                                      ADMINISTRATION

 

(a)                                  The
Plan shall be administered by the Plan Administrator.  Subject to the express provisions of this
Plan, the Plan Administrator shall have sole authority to interpret the Plan
(including any vague or ambiguous provisions) and to make all other
determinations deemed necessary or advisable for the administration of the
Plan.  All determinations and
interpretations of the Plan Administrator shall be final, binding and
conclusive as to all persons.  The Plan
Administrator may designate the Participants eligible to participate in the
Plan upon, and following, the Approval Date.

 

(b)                                 None
of the Plan Administrator, the Committee nor any employee, officer or director
of the Company shall be personally liable by reason of any action taken with
respect to the Plan for any mistake of judgment made in good faith, and the
Company shall indemnify and hold harmless each employee, officer or director of
the Company, including the Plan Administrator, to whom any duty or power
relating to the administration or interpretation of the Plan may be allocated
or delegated, against any reasonable cost or expense (including counsel fees)
or liability (including any sum paid in settlement of a claim with the approval
of the Board) arising out of any act or omission to act in connection with the
Plan unless arising out of such person’s own fraud, bad faith or gross
negligence.

 

10.                               APPLICABLE
LAW

 

This Plan and all action taken under it shall
be governed as to validity, construction, interpretation and administration by
the laws of the State of Delaware without giving effect to the choice of law
principles thereof.

 

6

 

11.                               AMENDMENT
OR TERMINATION

 

The Board may amend, suspend or terminate the
Plan or any portion thereof at any time; provided, however, that unless
the written consent of a Participant is obtained, no such amendment or
termination shall adversely affect any existing rights of such Participant.

 

7Exhibit 10.16.11

 

AMENDED AND RESTATED

ADELPHIA COMMUNICATIONS CORPORATION

PERFORMANCE RETENTION PLAN

 

 

1.                                       PURPOSE

 

The purpose of this Plan is to attract highly qualified employees, and
to encourage highly qualified employees of the Debtors to continue their
employment with the Debtors during the period of the Debtors’ restructuring by
establishing a plan that provides annual incentive awards based on the Debtors’
performance.

 

2.                                       DEFINITIONS

 

The following terms, as used herein, shall have the following meanings:

 

(a)                                  “Approval
Date” means the date of issuance of an order by the Bankruptcy Court, upon
notice and hearing, approving the Plan, upon which the Plan (and any amendments
thereto) shall become effective.

 

(b)                                 “Award”
means an incentive award granted pursuant to this Plan.

 

(c)                                  “Bankruptcy
Code” shall mean The Bankruptcy Reform Act of 1978, as heretofore and hereafter
amended.

 

(d)                                 “Bankruptcy
Court” means the United States Bankruptcy Court for the Southern District of
New York, such court having jurisdiction over the chapter 11 cases currently pending
with respect to the Debtors.

 

(e)                                  “Bankruptcy
Plan” shall mean the plan or plans of reorganization involving the Debtors in
connection with the chapter 11 cases currently pending with respect to the Debtors.

 

(f)                                    “Base
Salary” means the Participant’s base annual salary as of the date an Award is
granted, excluding any overtime, bonuses, commissions, other special payments
or any other allowance.

 

(g)                                 “Board”
means the Board of Directors of the Company.

 

(h)                                 “Change
in Control” shall mean the occurrence of any of the following events, whether
on, before or following the Emergence Date, in each case pursuant to the terms of
a definitive written agreement with one or more of the Debtors entered into on
or prior to the Emergence Date:

 

 

(i)                                     Consummation of an
acquisition on or after the Emergence Date by any individual, entity or group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”) (a “Person”)) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 50% or more of either (A) the then-outstanding shares of common stock of the
Company issued pursuant to the Bankruptcy Plan (the “Outstanding Company Common
Stock”) or (B) the combined voting power of the then-outstanding voting
securities of the Company issued pursuant to the Bankruptcy Plan entitled to
vote generally in the election of directors (the “Outstanding Company Voting
Securities”); or

 

(ii)           Consummation
of a merger, consolidation or similar corporate transaction involving the
Company or all or substantially all of its subsidiaries or a sale or other disposition
of all or substantially all of the consolidated assets of the Company or all or
substantially all of its subsidiaries in one or more transactions (each, a “Whole
Company Business Combination”); provided, however, a Whole Company Business
Transaction shall not constitute a Change in Control if all of the following
conditions are met: (A) the beneficial owners of the Outstanding Company Stock
and the Outstanding Company Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly, more than 50% of
the then-outstanding shares of common stock and the combined voting power of
the then-outstanding voting securities entitled to vote generally in the
election of directors, as the case may be, of the corporation resulting from
such Business Combination (including, without limitation, a corporation that,
as a result of such transaction, owns the Company or all or substantially all
of the Company’s assets either directly or through one or more subsidiaries) in
substantially the same proportions as their ownership immediately prior to such
Business Combination, (B) no Person (excluding any corporation resulting from
such Whole Company Business Combination or any employee benefit plan (or
related trust) of the Company or such corporation resulting from such Whole
Company Business Combination) beneficially owns, directly or indirectly, 20% or
more of the then-outstanding shares of common stock of the corporation
resulting from such Business Combination or the combined voting power of the
then-outstanding voting securities of such corporation, except to the extent
that such ownership existed prior to the Whole Company Business Combination, and
(C) at least a majority of the members of the board of directors of the
corporation resulting from such Business Combination were members of the Board
at the time of the execution of the initial agreement or of the action of the
Board providing for such Business Combination; or

 

(iii)                               Consummation of a sale
or other disposition to a Person that is not an affiliate of the Company of a “strategic
cluster”, a specific division or business unit of the Company or other Debtor
for which a Participant primarily performs his/her services that is not
described in clause (ii) of this Section 2(h); provided, that “strategic
cluster” shall mean the cable systems operated by the Company or other Debtors
in the following geographic locations: (I) Northern

 

2

 

New England/Eastern New York, (II) Cleveland/Greater Ohio Valley, (III)
Florida/Southeast, (IV) California/Western, (V) Virginia/Maryland/Colorado
Springs/Kentucky, (VI) Pennsylvania, and (VII) Western New York/Connecticut;
provided, further, that no Change in Control shall be deemed to have occurred
for purposes of this Plan unless the Participant eligible to receive an Award
has primarily performed his/her services for the strategic cluster, specific
division or business unit that was involved in such sale or other disposition,
as determined by the Plan Administrator.

 

(i)                                     “Committee”
means the Compensation Committee of the Board.

 

(j)                                     “Company”
means Adelphia Communications Corporation, a corporation organized under the
laws of the State of Delaware, or any successor corporation.

 

(k)                                  “Consummation
of the Restructuring” means the earliest to occur of (i) the Emergence Date, or
(ii) the date of a Change in Control.

 

(l)                                     “Debtors”
means the Company and those of its affiliates that are debtors and debtors in
possession under Chapter 11 the Bankruptcy Code whose cases are jointly administered
under case number 02-41729 (REG).

 

(m)                               “EBITDAR”
means, for any period, the consolidated earnings of the Company, determined
before reduction by, (i) consolidated interest expense, (ii) total income tax expense,
(iii) total depreciation expense, (iv) total amortization expense, and (v)
total restructuring-related fees and expenses, normalized for accounting
adjustments, changes in accounting policies and asset sales, in each case
determined by the Company in accordance with GAAP applied on a consistent
basis.

 

(n)                                 “EBITDAR
Target” means the EBITDAR target amount established by the Company for its
business plan for each Plan year for purposes of calculating Awards granted under
the Plan; provided that the Plan Administrator shall have discretion to adjust
EBITDAR Targets and associated Awards on an equitable basis for extraordinary
events or other events not within the control of Participants.

 

(o)                                 “Emergence
Date” shall mean the date on which the Bankruptcy Plan becomes effective in
accordance with its terms.

 

(p)                                 “Participant”
means a full-time employee of the Debtors who has received written notice from
the Plan Administrator that he or she has been selected for participation in the
Plan for a particular Plan year.

 

(q)                                 “Plan”
means the Amended and Restated Adelphia Communications Corporation Performance
Retention Plan, as amended from time to time.

 

3

 

(r)                                    “Plan
Administrator” means the Committee, provided that the Committee may delegate
administrative responsibility to corporate officers in its discretion.

 

3.                                       ELIGIBILITY

 

Participation shall be limited to Participants who have received
written notification from the Plan Administrator that they have been selected
to participate in the Plan.  Participants
shall receive a separate written notification with respect to each Plan year
the Participant is eligible to participate in the Plan, which shall specify,
among other things, the Award grant date, and such Participant’s target Award.

 

4.                                       TARGET AWARDS

 

(a) Except as otherwise provided herein, Participants will be eligible
for an annual target Award, which shall be based on the percentage of the
Participant’s Base Salary, title and job responsibilities. Annual target Awards
may range from 25% to 200% of a Participant’s Base Salary, as determined by the
Plan Administrator.

 

(b)                                 The
amount of each annual Award will be determined based on the Company’s financial
performance as compared to the EBITDAR Target, and will equal the product of
(i) the Participant’s target Award for the relevant Plan year, and (ii) the
percentage listed next to the percentage of the EBITDAR Target that is achieved
for the relevant Plan year in the following table:

 

	
  % of

  EBITDAR Target

  achieved for

  Plan Year

  	
   

  	
  Total Award

  (as a percentage of the

  Target Award)

  
	
  90%

  	
   

  	
  0%

  
	
  91%

  	
   

  	
  10%

  
	
  92%

  	
   

  	
  25%

  
	
  93%

  	
   

  	
  40%

  
	
  94%

  	
   

  	
  55%

  
	
  95%

  	
   

  	
  70%

  
	
  96%

  	
   

  	
  80%

  
	
  97%

  	
   

  	
  85%

  

 

4

 

	
  % of

  EBITDAR Target

  achieved for

  Plan Year

  	
   

  	
  Total Award

  (as a percentage of the

  Target Award)

  
	
  98%

  	
   

  	
  90%

  
	
  99%

  	
   

  	
  95%

  
	
  100%

  	
   

  	
  100%

  
	
  101%

  	
   

  	
  105%

  
	
  102%

  	
   

  	
  110%

  
	
  103%

  	
   

  	
  115%

  
	
  104%

  	
   

  	
  120%

  
	
  105%

  	
   

  	
  130%

  
	
  106%

  	
   

  	
  145%

  
	
  107%

  	
   

  	
  160%

  
	
  108%

  	
   

  	
  175%

  
	
  109%

  	
   

  	
  190%

  
	
  110%

  	
   

  	
  200%

  

 

(c)                                  Participants
shall receive a pro-rata Award for the Plan year during which the Participant
commences participation in the Plan, based on the ratio of number of full
months that the Participant worked for a Debtor during such Plan year, to 12.

 

(d)                                 Notwithstanding
the foregoing, in the event the Company’s capital expenditures for any Plan
year are greater than or equal to 105%, but less than 110%, of the budgeted
amount of the Company’s capital expenditures for such Plan year, each
Participant’s Award for such Plan year, as determined pursuant to Section 4(b)
herein, shall be reduced by 33.3%. In the event capital expenditures for any
Plan year are greater than or equal to 110%, but less than 115%, of the
budgeted amount of capital expenditures for such Plan year, each Participant’s
Award, as determined pursuant to Section 4 (b) herein, shall be reduced by
66.6%.  In the event capital expenditures
for any Plan year are greater than or equal to 115% of the budgeted amount of
capital expenditures for such Plan year, no Award shall be payable to any Participant
for such

 

5

 

Plan year, regardless of the Award amount determined pursuant to Section 4(b)
herein. Determinations regarding the level of capital expenditures in relation
to budget for any Plan year shall be made by the Plan Administrator.

 

5.                                       AWARD VESTING

 

Subject to the provisions of Section 6 and Section 7 herein,
(a) the Award granted to a Participant for the Plan year during which the
Participant first commences participation in the Plan will vest in 36 equal
monthly installments (2.777% per month) as of the last day of each month
commencing with the twelfth month following the month in which the Participant
begins participation in the Plan, and (b) any subsequent Awards will vest in 36
equal monthly installments (2.777% per month) commencing as of January 31
of the year immediately following the Plan year with respect to which the Award
was granted.

 

6.                                       TREATMENT OF AWARDS UPON CONSUMMATION

 

(a)                                  Subject
to Section 6(b) and (c) herein, upon the Consummation of the Restructuring,
(i) the portion of each Award that is vested shall be paid in cash, in a lump
sum, on the date of such Consummation of the Restructuring, provided that if
less than 25% of an Award is vested as of such date, an amount equal to 25% of
such Award shall vest and be paid in cash on such date, and (ii) the aggregate
unvested portion of all awards granted to a Participant shall be payable in the
form of restricted stock of the reorganized Company with an aggregate value
equivalent to such aggregate unvested portion. The number of shares of
restricted stock so granted shall be determined by the Committee, with the
assistance of a nationally recognized independent compensation consultant, and
shall vest in two equal annual installments as follows:  50% on each of the first and second
anniversaries of the Consummation of the Restructuring.  The restricted stock shall have such other
terms and conditions as are determined by the Committee, which shall not be
inconsistent with this Section 6(a) and Section 7.

 

(b)                                 If
the Consummation of the Restructuring does not occur on or before the second
anniversary of the date on which the Participant’s Award is granted, subject to
Section 7 herein, 50% of the portion of such Award which is vested on such
date shall be paid in cash, in a lump sum, on the second anniversary of the
date the Award is granted, and the remaining portion of the Award which is
vested on the Consummation of the Restructuring will be paid in cash, in a lump
sum, on the date of such consummation. The aggregate value of all unvested
Awards granted to a Participant shall be converted to shares of restricted
stock, in the same manner described, and with same terms set forth, in Section 6(a)
herein.

 

(c)                                  Notwithstanding
the foregoing, in the event the Consummation of the Restructuring occurs as
provided in Section 2(k)(ii), the Committee may provide, in its discretion,
that all Awards (both vested and unvested) shall be paid (without duplication)
in cash, in a lump sum, on the date such consummation occurs. In the event the
Committee makes such determination, the unvested portion of all Awards shall be
paid

 

6

 

(without duplication) based upon either the value established for each
annual grant based on performance if so established, or 100% achievement for
any unvalued grants.

 

7.                                       TERMINATION OF EMPLOYMENT

 

(a)                                  In
the event a Participant’s employment with the Debtors terminates for any reason
other than termination by the Debtors for Cause prior to the date on which an
Award is scheduled to be paid as provided in Section 6 herein, such
Participant (or his/her beneficiary or estate in the event of death) shall be
entitled to payment of the vested portion of his/her Award as determined by the
Plan Administrator in accordance with the provisions of Sections 5 and 6 herein,
at the same time and in the same form as Awards for such Plan year are paid to
other Participants in the Plan; provided, however that, if such termination is
in connection with a Change in Control, in addition to payment of the vested
portion of the Awards, the Committee may provide, in its discretion, that the
unvested portion of such Participant’s Awards shall be paid (without
duplication) based upon either the value established for each annual grant
based on performance, if so established, or 100% achievement for any unvalued
grants.

 

(b)                                 In
the event any Participant’s employment is terminated by the Company for Cause,
all Awards granted to such Participant (vested or unvested) shall be forfeited,
and such Participant shall be ineligible to receive any payment or settlement
of an Award under this Plan.

 

(c)                                  With
respect to any Participant who has entered into an employment agreement with
one of the Debtors, “Cause” shall have the meaning ascribed thereto in such employment
agreement. With respect to any other Participant, the Debtors shall have “Cause”
to terminate such Participant’s employment if such Participant has: (i) refused
or repeatedly failed to perform the duties assigned to him/her; (ii) engaged in
a willful or intentional act that has the effect of injuring the reputation or
business of the Debtors in any material respect; (iii) continually or
repeatedly been absent from the Debtors, unless due to serious illness or
disability; (iv) committed an act of gross misconduct, fraud, embezzlement or
theft against the Debtors; or (v) violated a material policy of the Debtors.

 

8.                                       GENERAL PROVISIONS

 

(a)                                  Payments
under this Plan shall not constitute wages and shall be paid by one or more of
the Debtors from the general assets of the Debtors, as applicable; provided
that no director, officer, agent or employee of the Debtors shall be personally
liable in the event the Debtors are unable to make any payments under this Plan
due to a lack of, or inability to access, funding or financing, legal
prohibition (including statutory or judicial limitations) or failure to obtain
any required consent. Notwithstanding anything in this Plan to the contrary,
any payments to be made hereunder shall only be made as and to the extent the
Debtors have adequate funding therefor.

 

7

 

(b)                                 Payments
under this Plan are subject to Federal, state and local income tax withholding
and all other applicable federal, state and local taxes. The Debtors shall
withhold, or cause to be withheld, from any payments made hereunder all
applicable Federal, state and local withholding taxes and may require the
employee to file any certificate or other form in connection therewith.

 

(c)                                  Nothing
contained herein shall give any employee the right to be retained in the
employment of any Debtor, or any successor, or affect the right of the Debtors
to dismiss any employee at will.

 

(d)                                 This
Plan is not a term or condition of any individual’s employment and no employee
shall have any legal right to payments hereunder except to the extent all conditions
relating to the receipt of such payments have been satisfied in accordance with
the terms of this Plan as set forth herein.

 

(e)                                  Nothing
contained herein shall give an employee any right to any employee benefit upon
termination of employment with any Debtor, except as required by law or provided
by the terms of another employee benefit plan document relating to the
treatment of former employees generally.

 

(f)                                    No
person having a benefit under this Plan may assign, transfer or in any other
way alienate the benefit, nor shall any benefit under this Plan be subject to
garnishment, attachment, execution or levy of any kind.

 

9.                                       ADMINISTRATION

 

(a)                                  The
Plan shall be administered by the Plan Administrator. Subject to the express
provisions of this Plan, the Plan Administrator shall have sole authority to
interpret the Plan (including any vague or ambiguous provisions) and to make
all other determinations deemed necessary or advisable for the administration
of the Plan. All determinations and interpretations of the Plan Administrator
shall be final, binding and conclusive as to all persons.  The Plan Administrator may designate the
Participants eligible to participate in the Plan upon, and following, the
Approval Date.

 

(b)                                 None
of the Plan Administrator, the Committee nor any employee, officer or director
of the Debtors shall be personally liable by reason of any action taken with
respect to the Plan for any mistake of judgment made in good faith, and one or
more of the Debtors shall indemnify and hold harmless each employee, officer or
director of the Debtors, including the Plan Administrator, to whom any duty or
power relating to the administration or interpretation of the Plan may be
allocated or delegated, against any reasonable cost or expense (including counsel
fees) or liability (including any sum paid in settlement of a claim with the
approval of the Board) arising out of any act or omission to act in connection
with the Plan unless arising out of such person’s own fraud, bad faith or gross
negligence.

 

8

 

10.                                 APPLICABLE LAW

 

This Plan and all action taken under it shall be governed as to
validity, construction, interpretation and administration by the laws of the
State of Colorado without giving effect to the choice of law principles
thereof.

 

11.                                 AMENDMENT OR TERMINATION

 

The Board may amend, suspend or terminate the Plan or any portion
thereof at any time; provided, however, that unless the written consent of a
Participant is obtained, no such amendment or termination shall adversely
affect any existing rights of such Participant.

 

 

Implementation
Approved Following

Court Approval

 

ADELPHIA
COMMUNICATIONS CORPORATION

 

	
  By:

  	
  /s/ David
  Brunick

  	
   

  
	
   

  	
  Name: David
  Brunick

  
	
   

  	
  Title:
  Senior Vice President - Human Resources

  
	
   

  	
   

  
	
  Date: September 23,
  2004

  
	
  (approving
  the Amended and Restated Plan; the Plan was

  originally approved by the Bankruptcy Court on May 5, 2003)

  

 

9

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