**Building      Materials Holding Corporation**

**2005      Bonus      Program**

**BMC      West      Senior Management**

|   | 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 BMC West senior management will be based on BMC                West                EBITA (33.33%), BMC West lease adjusted RONI (33.33%) and BMHC EBITDA                (33.33%). 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. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 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 managers 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 officer payout dollars by                90% and                multiplying that number by 10%.  The President of BMC West will                determine the distribution of discretionary dollars for those eligible                for                this program subject to oversight by the CEO of                BMHC. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | With                the                approval of the Chairman, President and CEO of BMHC, the President                of BMC                West may establish special bonus plans in addition to those outlined                in                the Region, Area or location guidelines.  Such plans would be                for turnaround situations or other unique situations and established                by                the first quarter of the year unless circumstances warrant                otherwise. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | 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. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. | 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. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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