Exhibit 10(B)



 






EXHIBIT 10(b)




LESCO BONUS PLAN




		
	POLICY: 	The purpose of the LESCO Bonus Plan is to promote
the strategic interests of LESCO by providing key
executives with financial incentive awards for
performance that contributes significantly to the
success of the company, as determined by meeting or
exceeding specific strategic goals.






		
	RESPONSIBLE OFFICER: 	President and Chief Executive Officer





PROCEDURE:





	I.  	ELIGIBILITY AND PARTICIPATION






	 	A.  	Eligibility to participate in the Plan shall be limited to key executives and
other associates as recommended by the Vice President Human Resources with final
approval by the President and Chief Executive Officer.
	 
	 	B.  	Following the start of the calendar year, the list of participants for a Plan
year can be revised upon authorization of the President and Chief Executive Officer.
Any associate that is hired or selected to participate after the start of the calendar
year shall participate on a pro-rata basis. This is determined by multiplying the
maximum bonus opportunity by a fraction, the numerator of which shall be the number of
days of his/her participation in the calendar year and the denominator of which shall
be 365.
	 
	 	C.  	Suggested Participation Levels





	 	 	 
	Management Level	 	Target Bonus as % of Base
	CEO
	 	60%
	CFO
	 	60%
	Senior VP / VP
	 	20% — 40%
	Sr. Director / Director
	 	15% — 25%
	Sr. Manager / Manager
	 	10% — 20%







Note: The Board of Directors and the President and Chief Executive Officer must
approve associate’s participation levels.




	 	D.  	Participation in the Plan as recommended and approved is not guaranteed from
one year to the next.






	II.  	PAYMENT OF BONUS AWARD EARNED






	 	A.  	Bonuses are earned after the last day of the calendar year. Associates must be
actively employed at the time of payment to receive prior year’s bonus.





 








 






	 	B.  	Termination due to retirement or death will result in a pro-rata incentive
award upon approval of the President and Chief Executive Officer.
	 
	 	C.  	With respect to Section 1, paragraph B. above, the whole amount of the bonus
earned in the calendar year shall be paid to each eligible associate after the
company’s audited financial results are available, but no later than March
15th of the following year.
	 
	 	D.  	An associate will not receive a bonus when, in the judgement of the Company:






	 	1.  	The associate’s overall performance for the period is
consistently below expectations.
	 
	 	2.  	The associate has failed to achieve agreed upon goals.
	 
	 	3.  	The associate has violated corporate policies or has broken any
Federal, State, or Local Laws.
	 
	 	4.  	Management determines at its discretion, that an award should
not be given.






	 	E.  	Following release of the Company’s audited financial statements, the Board of
Directors and the President and Chief Executive Officer can increase, decrease or
eliminate awards when it is determined that the amount of the awards is unreasonable in
view of any unique circumstances or the Company’s financial performance.
	 
	 	F.  	All payouts for eligible participants shall be at the discretion of the
President and Chief Executive Officer.






	III.  	PLAN YEAR






	 	A.  	The Plan Year is defined as January 1st through December 31st,
or the fiscal year when not a calendar year.






	IV.  	OPERATING RULES






	 	A.  	Each participant will have a Target Bonus that will be the amount earned for
meeting the Plan’s performance measurements. The Target Bonus will be expressed as a
percentage of actual base salary and will be reviewed by the Vice President Human
Resources and approved by the President and Chief Executive Officer.
	 
	 	B.  	Bonus payouts will be calculated based on the attainment of corporate goals of
Basic Earnings Per Share (BEPS), Return of Investment Capital (ROIC), Sales Growth, and
an Individual Performance Goal. Weighting for each goal against total target bonus
percent is outlined in the Bonus Participation Letter.





 








 






	 	C.  	Attainment of the financial Plan measurements are paid out between threshold
and maximum as defined in the Payout Matrix below.




Bonus Plan Payout Matrix



	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	% of	 	 
	 	 	% of	 	Target	 	 
	 	 	Target	 	Dollars	 	 
	 	 	Achieved	 	Payable	 	Definitions
	Threshold

	 	 	90%		 	 	80%	 	 	Threshold performance pays at 80% of
Target Dollars prorated up to Target.
	

	 	 	91%		 	 	82%	 	 	 
	

	 	 	95%		 	 	90%	 	 	 
	Target

	 	 	100%		 	 	100%	 	 	Target pays at 100% of Target Dollars.
	

	 	 	10%5		 	 	110%	 	 	 
	

	 	 	110%		 	 	120%	 	 	 
	

	 	 	115%		 	 	130%	 	 	 
	

	 	 	120%		 	 	140%	 	 	 
	

	 	 	125%		 	 	150%	 	 	 
	

	 	 	130%		 	 	160%	 	 	 
	

	 	 	135%		 	 	170%	 	 	 
	

	 	 	140%		 	 	180%	 	 	 
	

	 	 	145%		 	 	190%	 	 	 
	Maximum

	 	 	150%		 	 	200%	 	 	Above Target pays at a 2:1 ratio up
to maximum of 200% of Target Dollars.







	 	D.  	Attainment of the Individual Performance Achievement measurement is paid based
on your agreed upon goals and performance rating as defined in the Performance Matrix
below.




Bonus Plan Individual Performance Matrix



	 	 	 	 	 	 	 	 	 
	Agreed Upon Goals /	 	% of Target Paid for Personal
	Performance Rating	 	Performance Component
	

	 	Doesn’t Meet
	 	 	(1	)	 	0% — 20%
	

	 	Meets
	 	 	(2	)	 	70% — 100%
	

	 	Exceeds
	 	 	(3	)	 	100% — 120%







	 	E.  	Personalized Bonus Plan documents will be presented to all participants that
detail their approved target percent, target dollars and performance measures or
individual targets for the current Plan year.






	V.  	GUIDELINES






	 	A.  	Bonus Plan participants’ base salary in effect January 1 of the Plan
year will be the basis for calculating target and actual bonus dollars.





 








 





	 	B.  	An associate who is hired or promoted after January 1st and
qualifies for participation during the Plan year will receive a payment for earned
rewards (see section 1, paragraph B) based on prorated salary data in effect with
regard to either date of hire or promotion.
	 
	 	C.  	Only full-time, regular associates are eligible to participate in the Bonus
Plan. When an associate is on a Leave of Absence for any portion of the calendar year,
the associate will participate in the Plan on a pro-rata basis as long as the associate
is on active status for a minimum of ninety (90) days during the calendar year.
	 
	 	D.  	Attainments of goals are based on actual results.
	 
	 	E.  	All percentages will be rounded to the nearest hundredth of a percent.
	 
	 	F.  	Bonus awards are included as compensation for the LESCO, Inc. Stock Investment
and Salary Savings and Trust (401(k) Plan) and the LESCO, Inc. 401(k) Restoration Plan,
but are excluded in calculating all other associate benefits.






	VI.  	RIGHT OF PARTICIPANTS AND FORFEITURE






	 	A.  	Nothing in this Plan shall:






	 	1.  	Confer upon any associate any right with respect to
continuation of employment with LESCO.
	 
	 	2.  	Interfere in any way with the right of the Company to terminate
his or her employment at any time, or
	 
	 	3.  	Confer upon any associate or any person any claim or right to
any distribution under the Plan except in accordance with its terms.






	 	B.  	No right or interest of any Participant in the Plan shall, prior to actual
payment or distribution of such Participant, be assignable or transferable in whole or
part, either voluntarily or by operation of law otherwise, or be subject to payment of
debts of any Participant by execution, levy, garnishment, attachment, pledge,
bankruptcy or in any other manner.






	VII.  	PLAN ADMINISTRATION






	 	A.  	The Plan shall be administered by LESCO. LESCO can at any time amend, suspend,
terminate or reinstate any or all of the provisions of the Plan as may seem necessary
or advisable for the administration of the Plan.
	 
	 	B.  	LESCO interprets this policy for plan administration.
	 
	 	C.  	Any major business and/or organizational transactions that occur during the
course of the Plan year subject the Plan to appropriate changes. When this occurs, the
Plan will be amended accordingly and submitted to the Board of Directors for approval
consistent with the business/organizational transaction.





 








 






	 	D.  	Participants will be provided written communication of Plan changes within 30
days of the effective date of change.




The President and Chief Executive Officer must approve any exceptions to the policy.




	 	 	 	 	 	 	 	 
	Approved:

	 	/s/ Michael P. DiMino
	 	Date:
	 	February 25, 2005	 
	

	 	 
	 	 	 	 	 
	

	 	Michael P. DiMino, President & CEO