8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C., 20549

Form 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date Of Report (Date Of Earliest Event Reported):  02/16/2005

Owens Corning

(Exact Name of Registrant as Specified in its Charter)

Commission File Number:  1-3660

DE	34-4323452
(State or Other Jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification No.)

One Owens Corning Parkway, Toledo, OH 43659

(Address of Principal Executive Offices, Including Zip Code)

419-248-8000

(Registrant’s Telephone Number, Including Area Code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act(17CFR240.14a-12)

[  ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act(17CFR240.14d-2(b))

[  ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act(17CFR240.13e-4(c))

Items to be Included in this Report

Item 1.01.    Entry into a Material Definitive Agreement

On February 2, 2005, the Compensation Committee of Owens Corning's Board of Directors approved new annual base salaries for the following Named Executives (as well as for other executive officers) effective February 16, 2005, as follows:

Charles E. Dana, Vice President and President, Composite Solutions Business -         $350,000

George E. Kiemle, Vice President and President, Insulating Systems Business -         $325,000

The Compensation Committee also has approved the funding measures applicable to the Company's Corporate Incentive Plan for the 2005 performance period and for the Company's Long Term Incentive Plan for the 2005-2007 performance period, as follows:

          1. The funding measures applicable to the Corporate Incentive Plan for the 2005 performance period are "income f rom operations" (weighted at 75%) and "cash flow from operations" (weighted at 25%). These funding measures are the same funding measures that were applicable to the Corporate Incentive Plan for the 2004 performance period.

          2. The funding measure applicable to the Long Term Incentive Plan for the 2005-2007 performance period is "average annual return on net assets". This funding measure is the same funding measure that was applicable to the one-year transition performance period cycle for 2004 under the Long Term Incentive Plan.

The Company has now adopted the form of Key Employee Retention Incentive Plan that will be utilized for calendar year 2005 under its Bankruptcy Court-approved retention program. A copy of such form is filed as exhibit 10 hereto and is incorporated herein by reference.

Item 9.01.    Financial Statements and Exhibits

(c) Exhibits

Exhibit 10 - Owens Corning Key Employee Retention Incentive Plan

Signature(s)

Pursuant to the Requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the Undersigned hereunto duly authorized.

		Owens Corning
Date: February 22, 2005.	By:	/s/    Stephen K. Krull
		Stephen K. Krull
		Senior Vice President, General Counsel and Secretary

Exhibit Index

Exhibit No.	Description
EX-10.	Owens Corning Key Employee Retention Incentive Plan

EX-10. 2 rrd69861_4030.htm OWENS CORNING KEY EMPLOYEE RETENTION INCENTIVE PLAN

OWENS CORNING

KEY EMPLOYEE RETENTION INCENTIVE PLAN

1. Purpose. This Owens Corning Key Employee Retention 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.
2. Definitions. For purposes of this Plan:
1. "Board" shall mean the Board of Directors of Owens Corning.
2. "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.
3. "Committee" shall mean the Compensation Committee of the Board.
4. "Company" shall mean Owens Corning, a Delaware Corporation, and each of its subsidiaries and affiliates.
5. "Disability" shall mean the Participant's entitlement to benefits under any long term disability plan or program of the Company.
6. "Effective Date" means January 1, 2005.
7. "Emergence" shall mean the effective date of a Plan of Reorganization confirmed in the Chapter 11 proceedings.
8. "Retention Amount" shall mean, with respect to each Participant, the amount payable under the Plan in accordance with Section 5(a) hereof.
9. "Emergence Date" shall mean the date of Emergence, as defined.
10. "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, 2005, in other than a Qualifying Severance.
11. "Participant" shall mean an employee of the Company who participates in the Plan in accordance with Section 4 hereof.
12. "Plan" shall mean this Owens Corning Key Employee Retention Incentive Plan, as amended from time to time.
13. "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, 2005: (i) by the Company other than for Cause, or (ii) by reason of death or Disability.
3. Administration.
1. The Plan shall be administered by the Committee, which shall have complete authority to determine who shall participate herein and the Retention 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.
2. 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.
3. 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.
4. The Committee may delegate any of its duties hereunder to such person or persons as it may designate from time to time.
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 a document, 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.
5. Payments.
1. In General. Each Participant who remains employed by the Company through December 31, 2005 shall receive a cash payment from the Company equal to the Retention 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 Retention Incentive Plan. There shall be no requirement of uniformity of Retention Amount among Participants.
2. 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 Retention 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 12.
3. Nonqualifying Severance. No payment shall be made under the Plan in respect of a Participant who incurs a Nonqualifying Severance.
4. Payment Upon Emergence. If the Company Emerges prior to December 31, 2005, each participant shall receive a cash payment from the Company equal to his or her Retention 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 Emergence, and the denominator of which is 12.
5. Form and Timing of Payment. In general, payments under this Section 5 shall be made in a lump sum. Such payment shall be made as soon as practicable following the earlier of the Emergence Date or December 31, 2005, but in no case later than March 15, 2006 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 but in no case later than 2.5 months thereafter. Retention amounts are expressed in US dollars, and any payments under this Plan in other currency will be based on the exchange rate in effect at the time of payout.
6. General Provisions.
1. 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.
2. 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.
3. 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."
4. 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.
5. 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.
6. 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.
7. 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.
8. 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.
9. 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, 2005, provided that all amounts not yet paid on the Emergence Date shall be paid thereafter in accordance with the terms hereof.
10. 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.
11. 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.
12. Governing Law. The Plan and all determinations made and actions taken pursuant hereto shall be governed by the laws of the State of Delaware without giving effect to the conflict of laws principles thereof.

-----END PRIVACY-ENHANCED MESSAGE-----

EX-10.

OWENS CORNING

KEY EMPLOYEE RETENTION INCENTIVE PLAN

1. Purpose. This Owens Corning Key Employee Retention 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.
2. Definitions. For purposes of this Plan:
1. "Board" shall mean the Board of Directors of Owens Corning.
2. "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.
3. "Committee" shall mean the Compensation Committee of the Board.
4. "Company" shall mean Owens Corning, a Delaware Corporation, and each of its subsidiaries and affiliates.
5. "Disability" shall mean the Participant's entitlement to benefits under any long term disability plan or program of the Company.
6. "Effective Date" means January 1, 2005.
7. "Emergence" shall mean the effective date of a Plan of Reorganization confirmed in the Chapter 11 proceedings.
8. "Retention Amount" shall mean, with respect to each Participant, the amount payable under the Plan in accordance with Section 5(a) hereof.
9. "Emergence Date" shall mean the date of Emergence, as defined.
10. "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, 2005, in other than a Qualifying Severance.
11. "Participant" shall mean an employee of the Company who participates in the Plan in accordance with Section 4 hereof.
12. "Plan" shall mean this Owens Corning Key Employee Retention Incentive Plan, as amended from time to time.
13. "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, 2005: (i) by the Company other than for Cause, or (ii) by reason of death or Disability.
3. Administration.
1. The Plan shall be administered by the Committee, which shall have complete authority to determine who shall participate herein and the Retention 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.
2. 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.
3. 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.
4. The Committee may delegate any of its duties hereunder to such person or persons as it may designate from time to time.
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 a document, 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.
5. Payments.
1. In General. Each Participant who remains employed by the Company through December 31, 2005 shall receive a cash payment from the Company equal to the Retention 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 Retention Incentive Plan. There shall be no requirement of uniformity of Retention Amount among Participants.
2. 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 Retention 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 12.
3. Nonqualifying Severance. No payment shall be made under the Plan in respect of a Participant who incurs a Nonqualifying Severance.
4. Payment Upon Emergence. If the Company Emerges prior to December 31, 2005, each participant shall receive a cash payment from the Company equal to his or her Retention 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 Emergence, and the denominator of which is 12.
5. Form and Timing of Payment. In general, payments under this Section 5 shall be made in a lump sum. Such payment shall be made as soon as practicable following the earlier of the Emergence Date or December 31, 2005, but in no case later than March 15, 2006 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 but in no case later than 2.5 months thereafter. Retention amounts are expressed in US dollars, and any payments under this Plan in other currency will be based on the exchange rate in effect at the time of payout.
6. General Provisions.
1. 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.
2. 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.
3. 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."
4. 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.
5. 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.
6. 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.
7. 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.
8. 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.
9. 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, 2005, provided that all amounts not yet paid on the Emergence Date shall be paid thereafter in accordance with the terms hereof.
10. 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.
11. 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.
12. Governing Law. The Plan and all determinations made and actions taken pursuant hereto shall be governed by the laws of the State of Delaware without giving effect to the conflict of laws principles thereof.