Exhibit 10.46

WILLIAM LYON HOMES

2007 SENIOR EXECUTIVE BONUS PLAN



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|BONUS PLANPARTICIPANT |  | % DEFERRED |  | DEFERRALCRITERIA                                                                                 |  | PAYMENT CRITERIA                                                                                                    |  | DESCRIPTION                                                                                                                                                                                              |  | PAY DATE            
|CEO AND
COO           |  | 25%        |  | 75% paid Year 1 25% paid Year 2 forfeited if terminated  except retirement, disability or death |  | 3% of Companys pre-tax, pre-bonus income each                                                                      |  | Based on:       Management Level       Position Impact w/
WLS       Competitive Pay Levels       Short-Term Compensation Target for the Position       Current Salary       Individual
Performance |  | After year-end Audit
|EVP                   |  | 25%        |  | 75% paid Year 1 25% paid Year 2 forfeited if terminated  except retirement, disability or death |  | 3/4of 1% of
Companys pre-tax, pre-bonus income                                                                     |  | Based on:       Management Level       Position Impact w/
WLS       Competitive Pay Levels       Short-Term Compensation Target for the Position       Current Salary       Individual
Performance |  | After year-end Audit
|CFO                   |  | 25%        |  | 75% paid Year 1 25% paid Year 2 forfeited if terminated  except retirement, disability or death |  | 0.5% of the Companys pre-tax, pre-bonus income                                                                     |  | Based on:       Management Level       Position Impact w/
WLS       Competitive Pay Levels       Short-Term Compensation Target for the Position       Current Salary       Individual
Performance |  | After year-end Audit
|REGION
PRESIDENTS     |  | 25%        |  | 75% paid Year 1 25% paid Year 2 forfeited if terminated  except retirement, disability or death |  | 3% of Regions pre-tax, pre-bonus Income after Corporate allocation  minimum payment equal to 100% of annual salary |  | Based on:       Management Level       Position Impact w/
WLS       Competitive Pay Levels       Short-Term Compensation Target for the Position       Current Salary       Individual
Performance |  | After year-end Audit

Note:



| |  |  | Plan requires the employee to be actively employed on the date bonus checks are distributed to qualify for payment except in event of death, disability or
retirement.
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| |  |  | Awards to be administered (including no discretion to increase) in order to comply with Section 162(m), if applicable.
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| |  |  | The Compensation Committee retains the discretion to increase the bonus of a participant in the event of an extraordinary performance, or decrease it in the case of
a substandard performance, and may make this determination on the basis of objective or subjective criteria, including, but not limited to, the pay levels of executives at other major homebuilders.
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