WILLIAM LYON HOMES 2007 SENIOR EXECUTIVE BONUS PLAN
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. |
