Stock Option Exchange Program To Employees

EXHIBIT 10(i)


TERMS OF RESTRICTED STOCK FOR STOCK OPTION EXCHANGE
PROGRAM OFFERED TO EMPLOYEES.


On behalf of the Management Development and Compensation Committee of the Board of Directors, we are extending a one-time opportunity for you to exchange your stock options with exercise prices above $50 per share for shares of Armstrong stock and restricted stock. This will be done at either a 6 to 1 or an 11 to 1 conversion ratio depending on the exercise price of the option.


You will have to decide which of these stock options, if any, you want to exchange. The shares of Armstrong stock will be granted to you with the following conditions:


. 1/3 of the shares will be issued as a stock award on 9/18/00. For
individuals subject to United States income tax, the value of these
shares will be considered taxable income to you on the date of grant.


. 1/3 of the shares will be issued as a restricted stock award which
will become free of restrictions on 9/18/01.


. 1/3 of the shares will be issued as a restricted stock award which
will become free of restrictions on 9/18/02.


ILLUSTRATIVE EXAMPLE
--------------------
------------------- ------------------ ----------------- ----------------- ----------------- ------------------
# of Shares of Value at
Grant Date Exercise Price # of Options Conversion Ratio Stock $16/Share
------------------- ------------------ ----------------- ----------------- ----------------- ------------------
2/22/99 $50.9375 1,200 6:1 200 $3,200
------------------- ------------------ ----------------- ----------------- ----------------- ------------------
2/28/98 73.125 1,100 11:1 100 1,600
------------------- ------------------ ----------------- ----------------- ----------------- ------------------
2/23/97 69.875 1,100 11:1 100 1,600
------------------- ------------------ ----------------- ----------------- ----------------- ------------------
2/25/96 59.875 1,210 11:1 110 1,760
------------------- ------------------ ----------------- ----------------- ----------------- ------------------
2/24/94 54.625 550 11:1 50 800
------------------- ------------------ ----------------- ----------------- ----------------- ------------------
TOTAL 5,160 560 $8,960
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