EX-10.1



 Exhibit 10.1 

Executive Compensation Notification 

Chairman, Chief Executive Officer and Chief Operating Officer 

Fiscal 2017 Compensation Program of Chairman, Chief Executive Officer and Chief Operating Officer. 

Fiscal 2017 Base Salaries: Table I below sets forth the fiscal 2017 base salaries for Mr. Horton, Mr. Auld and
Mr. Murray. 
 Table I 
  

									
	 Name
	  	Office	  	Annual Base Salary
Fiscal 2017	 	  	Incentive Bonus
Fiscal 2917
	 Donald R. Horton
	  	Chairman of the Board	  	$	1,000,000	  	  	See Below
	 David V. Auld
	  	President and CEO	  	$	700,000	  	  	See Below
	 Michael J. Murray
	  	Executive Vice
President and COO	  	$	500,000	  	  	See Below

 Fiscal 2017 Annual Incentive Bonus: The Compensation Committee approved performance-based goals
for measuring short-term performance bonuses that may be earned by Mr. Horton, Mr. Auld and Mr. Murray during fiscal 2017. The 2017 performance goals were established under the Company’s 2000 Amended and Restated Incentive Bonus
Plan. The fiscal 2017 performance goal for Mr. Horton, Mr. Auld and Mr. Murray relates to achieving positive consolidated pre-tax income as set forth below. 

Annual Incentive Bonus – Performance Related to Pre-Tax Income: 

Mr. Horton. Under the fiscal 2017 incentive bonus program, Mr. Horton has the opportunity to earn the following
performance-based bonus: 
  

	 	(1)	Up to 0.6% of Pre-Tax Income of the Company for the six-month period ending March 31, 2017 (but not below $0), and 

  

	 	(2)	Up to 0.6% of Pre-Tax Income of the Company for the six-month period ending September 30, 2017 (but not below $0). 








 Mr. Auld. Under the fiscal 2017 incentive bonus program, Mr. Auld has the
opportunity to earn the following performance-based bonus: 
  

	 	(1)	Up to 0.35% of Pre-Tax Income of the Company for the six-month period ending March 31, 2017 (but not below $0), and 

  

	 	(2)	Up to 0.35% of Pre-Tax Income of the Company for the six-month period ending September 30, 2017 (but not below $0). 


Mr. Murray. Under the fiscal 2017 incentive bonus program, Mr. Murray has the opportunity to earn the following
performance-based bonus: 
  

	 	(1)	Up to 0.1% of Pre-Tax Income of the Company for the six-month period ending March 31, 2017 (but not below $0), and 

  

	 	(2)	Up to 0.1% of Pre-Tax Income of the Company for the six-month period ending September 30, 2017 (but not below $0). 


“Pre-Tax Income” shall mean income before income taxes, as publicly reported by the Company in its quarterly or annual
financial statements, as applicable, prepared in accordance with generally accepted accounting principles. The financial statements shall mean the consolidated financial statements of the Company. 

At the end of fiscal 2017, the Committee may use its sole discretion to adjust downward, in part or in whole, the Annual Incentive Bonus based
on performance of the Company, including the annual amount of Pre-Tax Income earned and performance of the participant. Provided that, for the fiscal year ending September 30, 2017 no more than 0.6% of Pre-Tax Income for the year shall be paid
to Mr. Horton, no more than 0.35% of Pre-Tax Income for the year shall be paid to Mr. Auld and no more than 0.1% of Pre-Tax Income for the year shall be paid to Mr. Murray. 

Other Long-Term Benefits. 

Mr. Horton, Mr. Auld and Mr. Murray may participate in two separate deferred compensation plans. The first plan allows the
executive to make voluntary income deferrals. The second plan is a promise by the Company to pay benefits to the executive. If the executive is employed by the Company on the last day of the current fiscal year (for example September 30, 2017),
then the Company will establish a liability to him equal to 10% of his annual base salary as of the first day of the current fiscal year (for example October 1, 2016). This liability will accrue earnings in future years at a rate established by
the administrative committee.