Exhibit 10.1

 

U.S. Concrete, Inc. and Subsidiaries

2005 Annual Salaried Team Member Incentive Plan

 

Purpose

 

The purpose of this Plan is to motivate and reward successful company, business
unit, and individual performance with awards that are commensurate with the
level of performance attained.

 

Eligibility

 

Each salaried team member employed by U.S. Concrete and its subsidiary companies
is a Participant in the Plan, and must be an active team member or on an
approved leave of absence in order to receive any payout. Team members hired in
2005 will receive a pro-rata incentive payout for any award they are eligible to
receive under the provisions of the Plan. In order to receive a payout, a
performance review form for each team member must be completed by the team
member’s supervisor and submitted by January 31, 2006.

 

Bonus Eligibility

 

The amount of each team member’s bonus eligibility for Threshold, Target, and
Optimum levels of performance is based on their April 1, 2005 grade level (as
displayed in Exhibit I) and expressed as a percentage of their April 1, 2005
annual base pay. For 2005, the Bonus Pool at the budgeted EBITDA equals 80% of
the sum of the Target bonus percentage eligibilities multiplied by the
respective base pay of each team member.

 

Bonus Pool

 

The amount of the Bonus Pool available to be paid out is based on the Company’s
actual EBITDA performance compared to budgeted EBITDA for 2005. At 85% or below
of budgeted EBITDA the Bonus Pool relative to the first two payout weightings
described below (U.S. Concrete’s EBITDA performance compared to budget and
individual business unit EBITDA performance compared to budget) is equal to $0
(as displayed in Exhibit II); however, at or below that level of budgeted EBITDA
an amount up to $1.2 million will be available to be paid out based on
individual Team Member performance as proposed by the Plan Administrator. At
120% of budgeted EBITDA, the Bonus Pool is equal to the Optimum (twice the
Target) bonus percentage.

 

Bonus Pool Payout

 

The payout of the bonus pool to Participants is weighted as follows:

 

  1. 50% is based on the U.S. Concrete’s EBITDA performance compared to budget,

 

  2. 25% is based on individual business unit EBITDA performance compared to
budget, and

 

  3. 25% is based on individual Team Member performance.

 

Company and business unit EBITDA budgets may be adjusted periodically throughout
the year by the Plan Administrator to reflect the effect of acquisitions,
internal growth projects and major profit generating capital expenditures that
are not already included in the original budget.

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Individual Bonus Calculation

 

The individual Target bonus percentage is allocated between the Company,
business unit, and individual performance according to the weightings described
above. For example, an individual with a grade level 15 will have a target bonus
opportunity equal to 20% of base pay (see Exhibit I). Accordingly, 50% of their
target bonus or 10% of the base pay is potentially paid out according to company
EBITDA performance, 25% of their target bonus or 5% of the base pay is
potentially paid out according to business unit EBITDA performance and 25% of
their target bonus or 5% of base pay is potentially paid out according to
individual performance. The schedule for measuring the percentage of Target
bonus paid out for the level of actual company and business unit EBITDA
performance compared to budgeted EBITDA is included in Exhibit II.

 

The payout schedule for the individual piece of the bonus (in the example, 25%
of the Target bonus potential or 5% of the base pay) based on the individual
performance rating is:

 

Individual Rating

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Individual Bonus Portion

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0 (Below Threshold)    0% 1 (Threshold)    50% of the individual bonus portion 2
(Target)    100% of the individual bonus portion 3 (Optimum)    200% of the
individual bonus portion

 

The individual performance rating will be based on supervisory assessment
relative to the accomplishment of individual goals and behaviors exhibited as
evaluated on the team member annual performance evaluation form. The supervisory
assessment will be validated by the department head with all other departmental
supervisors in meetings during the 4th quarter of 2005 facilitated by the Human
Resources Manager at each business unit.

 

Bonus Payment

 

All Plan bonus payments are contingent on the approval by the Compensation
Committee of the Board of Directors of U.S. Concrete, Inc. The payments will be
paid as soon as administratively feasible after the previous year’s performance
results are final and the Compensation Committee has approved the bonus payouts.
An individual rating of “Below Threshold” performance will generally disqualify
any Participant from receipt of a bonus payout under the Plan.

 

Bonus Plan Administration

 

The Chief Executive Officer, Chief Operating Officer, Chief Financial Officer,
and Vice President of Human Resources, are referred to collectively hereafter as
the “Plan Administrator,” and shall act under the direction of the Compensation
Committee.

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The Plan Administrator, under the direction of the Compensation Committee, shall
have the authority to construe and interpret the Plan, to establish, amend, and
rescind rules and regulations relating to the Plan, to exercise discretion in
interpolating performance levels and award payouts outside of or between
designated benchmarks, and to take all such steps and make all such
determinations in connection with the Plan and bonus payouts granted hereunder
as it may deem necessary or advisable, which determination shall be final and
binding upon all Participants and eligible team members. Notwithstanding the
foregoing, all award payouts must be approved by the Compensation Committee.

 

Bonus Plan Communication

 

A copy of the Plan, including an exhibit specifying the Team Member’s job title,
grade level, Target and Optimum bonus percentages, and performance review form
will be distributed to each eligible Team Member.

 

Retirement, Termination, Death and Disability

 

The Plan Administrator may recommend a prorated bonus payout for 2005 as it
deems advisable to a Participant (or beneficiary in the event of death) who
terminated employment due to retirement, involuntary termination not for cause,
or disability. Payment of this pro-rated bonus will be made at the same time
payment is made to other Plan participants in accordance with the terms and
conditions of this Plan, and is contingent upon the signing of an agreement and
release.

 

No Right to Continued Employment

 

The payout of a bonus pursuant to the Plan shall not create any contractual or
other right to receive payouts or other benefits in the future. The Team
Member’s participation in the Plan shall not create a right to further
employment with his or her employer nor interfere with the ability of his or her
employer to terminate his or her employment with or without cause.

 

Termination

 

The Plan is in effect for the 2005 calendar year. The Plan Administrator may at
any time suspend the operation of or terminate the Plan.

 

U.S. Concrete, Inc. By:  

 

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    President and Chief Executive Officer

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Exhibit I

2005 Salaried Team Member Bonus Opportunity

 

Grade Level

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   Target %

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19

   45 %

18

   40 %

17

   35 %

16

   30 %

15

   20 %

14

   15 %

13

   12.50 %

12

   10 %

11

   5 % 10 and below    5 %

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Exhibit II

Bonus Pool Creation and Business Unit Payout Schedule

 

EBITDA

Variance to

Budget

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Bonus Adjustment

Factor

% of Target Bonus*

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-15.0%

   0 %

-13.5%

   10 %

-12.0%

   20 %

-10.5%

   30 %

  -9.0%

   40 %

  -7.5%

   50 %

  -6.0%

   60 %

  -4.5%

   70 %

  -3.0%

   80 %

  -1.5%

   90 %

    0.0%

   100 %

    1.0%

   105 %

    2.0%

   110 %

    3.0%

   115 %

    4.0%

   120 %

    5.0%

   125 %

    6.0%

   130 %

    7.0%

   135 %

    8.0%

   140 %

    9.0%

   145 %

  10.0%

   150 %

  11.0%

   155 %

  12.0%

   160 %

  13.0%

   165 %

  14.0%

   170 %

  15.0%

   175 %

  16.0%

   180 %

  17.0%

   185 %

  18.0%

   190 %

  19.0%

   195 %

  20.0%

   200 %

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* The “% of Target Bonus” must be multiplied by the target bonus % and the
respective weighting for the company and business unit portions of the bonus,
and then multiplied by the individual’s annual base pay, to derive the amount of
the bonus attributable to the company and business unit performance.