**Building      Materials Holding Corporation**

**2005      Bonus      Program**

**BMHC      OFFICERS**

|   | I. | Eligibility                for Participation |
|--------|----|----------------------------------------------|

|   | 1. | Eligibility                for Participation in the Bonus                Program |
|--------|----|----------------------------------------------------------------------------------|

|   | 2. | Participation                in the Program |
|--------|----|---------------------------------------------|

|   | II. | Creation                of a Bonus Pool |
|--------|-----|-----------------------------------------|

|   | III. | Payout                of                the Bonus Pool |
|--------|------|--------------------------------------------------------|

|   | 1. | The                payout of                the bonus pool for BMHC officers will be based on company EBITDA                (70%) and                RONI (30%).  The compensation committee of the Board of                Directors retains the right to review any material extraordinary                credits                or charges to company earnings, including charges under the impairment                of                asset review, to determine if they should or should not be included                in                determining the appropriate net income after tax for bonus computation                purposes.  In January, prior to the bonus calculations, any                charges that may be included in this section will be submitted to                the                committee for such review. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 2. | The                bonus                pool generated in Section III-1 will be paid out in February for                those                eligible employees still employed on December 31.  An additional                pool will be made available for distribution by the Chairman, President                and CEO to those key employees who merit such consideration through                the                achievement of their objectives, unique accomplishments as well as                their                overall performance and that of the company.  This pool will be                determined by dividing the total of the other than CEO officer payout                dollars by 90% and multiplying that number by                10%. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Payments                under the program formula may be subject to adjustment under the                provisions of the wage guidelines and/or laws in effect on the date                of                distribution. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | Discretionary                Payout |
|--------|----|-------------------------------------|

|   | 1. | The                degree of                financial success achieved by the                corporation. |
|--------|----|-----------------------------------------------------------------------------------------------------------|

|   | 2. | The                degree to                which participants manage their responsibilities and the resulting                effect                on profitability, i.e., the management, positive or negative, of                circumstances substantially beyond their control.  This includes                major market fluctuations, strikes, or major changes in economic                conditions. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | IV. | Communication |
|--------|-----|---------------|

|   | V. | Reporting |
|--------|----|-----------|

|   | VI. | Authorization |
|--------|-----|---------------|

----