William Lyon Homes 2007 Senior Executive Bonus Plan
This agreement outlines the 2007 bonus plan for senior executives at William Lyon Homes, including the CEO, COO, CFO, EVP, and Region Presidents. Bonuses are based on a percentage of the company's or region's pre-tax, pre-bonus income, with payments split over two years. Eligibility requires active employment at the time of payment, except in cases of retirement, disability, or death. The Compensation Committee may adjust bonuses for extraordinary or substandard performance. The plan is designed to comply with relevant tax regulations.
Exhibit 10.46
WILLIAM LYON HOMES
2007 SENIOR EXECUTIVE BONUS PLAN
| BONUS PLAN PARTICIPANT | % DEFERRED | DEFERRAL CRITERIA | 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 Company’s 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 | |||||
| EVP | 25% | 75% paid Year 1 25% paid Year 2 forfeited if terminated – except retirement, disability or death | 3/4 of 1% of Company’s pre-tax, pre-bonus income | 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 | |||||
| CFO | 25% | 75% paid Year 1 25% paid Year 2 forfeited if terminated – except retirement, disability or death | 0.5% of the Company’s pre-tax, pre-bonus income | 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 | |||||
| REGION PRESIDENTS | 25% | 75% paid Year 1 25% paid Year 2 forfeited if terminated – except retirement, disability or death | 3% of Region’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. |
| • | Awards to be administered (including no discretion to increase) in order to comply with Section 162(m), if applicable. |
| • | The Compensation Committee retains the discretion to increase the bonus of a participant in the event of an extraordinary performance, or decrease it in the case of a substandard performance, and may make this determination on the basis of objective or subjective criteria, including, but not limited to, the pay levels of executives at other major homebuilders. |
