**Building      Materials Holding Corporation**

**2005      Bonus      Program**

**BMC      Construction Management**

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

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

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

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

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

|   | 1. | 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                earnings 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.  In                addition, the committee reserves the right to determine if an excessive                “windfall” would be created due to factors beyond what would be                appropriate, given the circumstances that exist, and make necessary                adjustments to the pool. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | A                discretionary pool will be made available for distribution by the                BMCC 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                ten percent (10%) of the total pool. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The                bonus                pool generated in Section III-1 will be paid out in February for                those                eligible employees still employed on December 31.  An interim                pay out will be made for non-officers on August 1st                of                the                current year based on 75% of that earned through the first half of                the                year.  **An                employee must still be employed and eligible as of 6-30-05 in order                to                receive a mid-year pay out.  Employees terminating during the                balance of the year after 6-30-05 will not be eligible for any additional                payouts except as provided in                I-1.  ** |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | **Reallocation                of such forfeited payouts to other employees, as noted in paragraph                #3,                will not be allowed unless specifically approved by the Chairman                and CEO                of BMHC.** |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | With                the                approval of the Chairman, CEO and President of BMHC, special bonus                plans                may be established.  Such plans would be for turnaround                situations or other unique situations and established by the first                quarter                of the year unless circumstances warrant                otherwise. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 6. | Payments                under the program formulas may be subject to adjustment under the                provisions of the wage guidelines and/or laws in effect on the date                of                distribution. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | Discretionary                Payout |
|--------|----|-------------------------------------|

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|   | 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 |
|--------|-----|---------------|

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