Exhibit 10.3
EAGLE MATERIALS INC.
CONCRETE AND AGGREGATES COMPANIES
SALARIED INCENTIVE COMPENSATION PROGRAM
FOR FISCAL YEAR 2009
1. Bonus Pool
To insure reasonableness and
affordability the available funds for bonus payments are determined
as a percent of earnings of Eagle Materials Inc.’s concrete
and aggregate companies. The actual percentage may vary from year
to year.
For Fiscal Year 2009, the bonus pool
for each concrete and aggregate company shall be equal to 2.25% of
each company’s operating profit.
Participants must be employed at
fiscal year-end to be eligible for any bonus award. Awards may be
adjusted for partial year participation for participants added
during a year.
Eagle Materials CEO retains the final
right of interpretation and administration of the plan and to amend
or terminate the plan at any time.
2. Eligibility
The Eagle Materials Concrete and
Aggregate EVP, the subsidiary concrete/aggregates company
Presidents, V.P. Sales and Plant Managers will be in the plan.
Additional participants who have management responsibilities or are
in a professional capacity that can measurably impact earnings may
be recommended by subsidiary company presidents subject to the
approval of the Eagle Materials Concrete and Aggregate EVP and
Eagle Materials CEO. The addition of new participants will not
affect the total pool available but will in effect dilute the
potential bonuses of the original participants.
A participant must be an exempt
salaried manager or professional. No hourly or non-exempt employee
may participate. Participants in this plan may not participate in
any other company incentive plan with monetary awards, except for
the Concrete and Aggregate Companies’ Long-Term Compensation
Program, the Eagle Materials Long- Term Compensation Program and
the Eagle Materials Special Situation Program.
3. Allocation of Pool
The subsidiary concrete/aggregates
company Presidents will each be eligible for 20% — 40% of the
pool funded from their respective subsidiary company. The
subsidiary concrete/aggregates company Presidents will recommend
the distribution of the remainder of their subsidiary company pool.
The participants in the plan and their percentage of the pool will
require approval of the Eagle Materials Concrete and Aggregate EVP
and Eagle Materials CEO at the beginning of the fiscal year for
which the bonus is being earned.
The subsidiary concrete/aggregates
company President’s bonus opportunity will be 50% specific,
objective goals and 50% discretionary as determined by Eagle
Materials Concrete and Aggregate EVP taking into consideration
overall job performance and compliance with Eagle Materials
Policies and Code of Ethics. All participants in the plan must have
the ability to significantly affect the performance of the
subsidiary company by achieving measurable, quantifiable,
objectives. The subsidiary company Presidents will determine the
objective and discretionary balance of bonus opportunities for the
participants in their companies subject to approval by Eagle
Materials Concrete and Aggregate EVP and Eagle Materials CEO.
4. Objective Criteria
Objective
