Pool Corporation Executive Bonus Plan


    Pool
      Corporation Executive Bonus Plan

    


    The
      following is a description of the Pool Corporation Executive Bonus Plan (the
      “Bonus Plan”) provided pursuant to Item 601(b)(10)(iii)(A) of Regulation S-K,
      which requires a written description of a compensatory plan or arrangement
      when
      no formal document contains the compensation information. 

    Under
      the
      terms of each executive officer’s employment agreement, each executive officer
      is eligible to earn incentive bonuses. The purpose of the incentive bonuses
      is
      to promote the interests of our Company and our stockholders by providing key
      employees with financial rewards upon achievement of specified business
      objectives, as well as to help our company attract and retain key employees
      by
      providing attractive compensation opportunities linked to performance results.
      In addition, we utilize annual incentive bonuses to focus corporate behavior
      on
      the achievement of goals for growth, financial performance and other specific
      annual objectives. 

    Our
      Chief
      Executive Officer and the four most-highly-compensated executive officers
      besides our Chief Executive Officer (collectively, our “Named Executive
      Officers”), as well as other officers and certain key employees, are eligible to
      earn annual incentive bonuses in an amount equal to up to 100% of their base
      salary. Bonuses payable to our Named Executive Officers are annually approved
      by
      the Compensation Committee of our Board of Directors.

    The
      annual cash bonuses paid to our Named Executive Officers are paid according
      to
      formulas that are based almost entirely on objective performance criteria with
      a
      small component being discretionary. On February 13, 2005, the Compensation
      Committee of our Board of Directors approved the following objective performance
      measures for calculation of Mr. Perez de la Mesa’s bonus: earnings per share,
      return on total assets, cash flow from operations, strategic planning and
      organizational development. Additionally, the Compensation Committee approved
      the following objective performance measures for calculation of Mr. Joslin’s
      bonus: earnings per share, return on total assets, cash flow from operations,
      expense management and certain operational and organizational objectives
      relating to treasury, investor relations, internal audit, tax, human resources,
      and business support.

    On
      February 13, 2007, the Compensation Committee of our Board of Directors amended
      the objective performance measures for each of the following Named Executive
      Officers as follows: Mr. A. David Cook - earnings per share, operating profit,
      return on assets, complementary sales and gross margin, organization planning
      and development and certain sales and marketing program initiatives; Mr. John
      M.
      Murphy - earnings per share, gross margin, sales, complementary product sales
      and gross profit and certain global sourcing and supply related objectives;
      and
      Mr. Christopher W. Wilson - earnings per share, operating profit, return on
      assets, complementary sales and gross margin, organization planning and
      development and certain sales and marketing program initiatives. 

    These
      same performance measures will continue to be used for future years until
      changed by the Compensation Committee of our Board of Directors. Payment of
      bonuses (if any) is normally made in February after the end of the performance
      period during which the bonuses were earned.