William Lyon Homes 2005 Senior Executive Bonus Plan
This agreement outlines the 2005 bonus plan for senior executives at William Lyon Homes, including the CEO, COO, and Division Presidents. Bonuses are based on a percentage of pre-tax, pre-bonus income and are paid over two years, with 75% paid in the first year and 25% in the second year. Eligibility requires active employment at the time of payment, except in cases of retirement, disability, or death. The plan also ensures compliance with tax regulations and sets minimum bonus amounts for Division Presidents.
Exhibit 10.1
WILLIAM LYON HOMES
2005 SENIOR EXECUTIVE BONUS PLAN
| BONUS PLAN
| %
| DEFERRAL
| PAYMENT CRITERIA
| DESCRIPTION
| PAY DATE
| |||||
| CEO AND COO | 25% | 75% paid Year 1 25% paid Year 2 forfeited if terminated – except retirement, disability or death | 3% of WLS pre-tax, pre-bonus income each | Based on: • Management Level • Position Impact w/ WLS • Competitive Pay Levels • Short-Term Compensation Target for the Position • Current Salary • Individual Performance | After year-end Audit | |||||
| DIVISION PRESIDENTS | 25% | 75% paid Year 1 25% paid Year 2 forfeited if terminated – except retirement, disability or death | 3% of Division’s pre-tax, pre-bonus Income after Corporate allocation
minimum payment equal to 100% of annual salary | Based on: • Management Level • Position Impact w/ WLS • Competitive Pay Levels • Short-Term Compensation Target for the Position • Current Salary • Individual Performance | After year-end Audit |
Note:
| • | Plan requires the employee to be actively employed on the date bonus checks are distributed to qualify for payment except in event of death, disability or retirement. |
| • | WLS represents William Lyon Homes stock symbol. |
| • | Awards to be administered (including no discretion to increase) in order to comply with Section 162(m), if applicable. |
