Filed by Bowne Pure Compliance





Exhibit 10.1




Form and Summary of Executive Compensation Notification

Chairman and Chief Executive Officer




2009 Fiscal Year Compensation Program of Chairman and Chief Executive Officer.



2009 Fiscal Year Base Salaries: Table I below sets for the 2009 fiscal year base salaries for
Mr. Horton and Mr. Tomnitz. For the 2009 fiscal year, the Compensation Committee did not change
the base salaries of either Mr. Horton or Mr. Tomnitz beyond the base salaries approved at the
beginning of the prior fiscal year.



Table I




	 	 	 	 	 	 	 	 	 
	 	 	 	 	Annual Base Salary	 	 	Performance Bonus
	Name	 	Office	 	(2009 Fiscal Year)	 	 	(2009 Fiscal Year)
	 
	 	 	 	 	 	 	 	 
	Donald R. Horton
	 	Chairman of the Board	 	$	400,000	 	 	See Below
	 
	 	 	 	 	 	 	 	 
	Donald J. Tomnitz
	 	Vice Chairman, President and CEO	 	$	300,000	 	 	See Below






2000 Amended and Restated Incentive Bonus Plan.




2009 Fiscal Year (Annual) Performance Bonus: The Compensation Committee approved
performance-based goals for measuring short-term performance bonuses that may be earned by Mr.
Horton and Mr. Tomnitz during the 2009 fiscal year. The 2009 performance goals were established
under the Company’s 2000 Amended and Restated Incentive Bonus Plan (the “2000 Restated Plan”). The
2009 fiscal year performance goals for Mr. Horton and Mr. Tomnitz relate to (i) adjusted pre-tax
income, (ii) operating cash flow, and (iii) selling, general and administrative
expense (“SG&A”) containment. These performance goals were further categorized into two components, referred to as the
“First Cash Component” and the “Second Cash and Equity Component” as described below.




First Cash Component — Performance related to Adjusted Pre-Tax Income.



Under the First Cash Component, each of Mr. Horton and Mr. Tomnitz shall have the opportunity
to earn the following cash performance-based bonus:




	 	(1)	 	6.0% of Adjusted Pre-Tax Income of the Company for the month of December 2008
(but not below $0).
	 
	 	(2)	 	2.0% of Adjusted Pre-Tax Income of the Company for the quarter ending March 31,
2009 (but not below $0).
	 
	 	(3)	 	2.0% of Adjusted Pre-Tax Income of the Company for the quarter ending June 30,
2009 (but not below $0).
	 
	 	(4)	 	2.0% of Adjusted Pre-Tax Income of the Company for the quarter ending September
30, 2009 (but not below $0).




 


 









 





“Adjusted Pre-Tax Income” shall mean income before income taxes, excluding inventory
impairments and land option cost write-offs and goodwill impairments, as publicly reported by the
Company in its financial statements prepared in accordance with generally accepted accounting
principles. The financial statements shall mean the consolidated financial statements of the
Company.




Second Cash and Equity Component — Performance based on “Cash Flow” and “SG&A” Containment.



Under the Second Cash and Equity Component, each of Mr. Horton and Mr. Tomnitz may earn a
performance bonus for achieving goals based on relative cash flow and relative SG&A containment
depending upon the ranking of the Company’s performance against the Company’s peer group
performance on the same performance metrics.



For the 2009 fiscal year, the maximum amount that may be earned under a top tier ranking is $4
million, the target amount that may be earned under a middle tier ranking is $2 million and the
minimum amount that may be earned under the bottom tier ranking is $0. After the end of the 2009
fiscal year and upon determination by the Compensation Committee, the performance based bonuses
under the Second Cash and Equity Component may be paid in cash or equity or a combination of both.
Actual amounts earned will depend on the ranking as determined by the Compensation Committee at the
end of the performance period.



2008 Performance Unit Plan.




On November 20, 2008, the Compensation Committee approved an award of long-term performance
units (“Performance Units”) under the 2008 Performance Unit Plan in the amount of 500,000 units to
Donald R. Horton and 400,000 to Donald J. Tomnitz. The award will be made on the first NYSE
trading day following January 1, 2009.



The final payout value of these Performance Units will be determined after the performance
period (January 1, 2009 to September 30, 2011, the “Performance Period”) is completed, after the
Compensation Committee evaluates the achievement of the performance goals and based on the closing
price of the Company’s common stock on the NYSE on September 30, 2011. The performance goals
established for the Performance Units are relative “return on investment” (“ROI”) and relative “net
sales gains percentage” (units) (“NSG%”), as compared to the same metrics of the Company’s peer
group, which consists of ten other publicly traded homebuilding companies.



The
two performance goals for the Performance Units were weighted 50% on the Company’s
relative ROI, and 50% on the Company’s relative NSG%. In
addition, the Performance Units may be adjusted upward (up to 200%) or downward (to 0) from the
initial award amount depending upon the relative ranking of the Company’s performance against the
Company’s peer group performance. The adjusted number of Performance Units will then be multiplied
by the closing price of the Company’s common stock on the last day of the Performance Period and
the final payout amount may be paid in cash, equity or a combination of both. The performance
targets, rankings (minimum, target and maximum), hurdle rates (i.e., must rank better than
9th, 10th or 11th place or the payout will be $0), definitions and
other terms and conditions of the award of the Performance Units are set forth in the form of award
filed herewith as Exhibit 10.4, which is incorporated herein by reference.


 


 









 





Other Long-Term Benefits.




Consistent with prior years, Mr. Horton and Mr. Tomnitz 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 retirement benefits to the executive.
Furthermore, if the executive is employed by the Company on the last day of the current fiscal
year (for example September 30, 2009), then the Company will establish a liability to him equal to
10% of his annual base salary as of first day of the current fiscal year (for example October 1,
2008). This liability will accrue earnings in future years at a rate established by the
administrative committee.