Document:

exh-10_2.htm

    
      Exhibit
10.2

      

      2009 BONUS CRITERIA FOR MAXXAM CHIEF EXECUTIVE
OFFICER

      UNDER
THE MAXXAM 1994 EXECUTIVE BONUS PLAN

      

      The
Section 162(m) Compensation Committee (the “Committee”)
of the Board of Directors of MAXXAM Inc. (the “Company”)
has on the 31st day of March 2009 established the following specific targets,
criteria, and bonus opportunities for Charles E. Hurwitz (“CEH”),
Chairman of the Board and Chief Executive Officer of the Company, relating to
the 2009 fiscal year (set forth in Part I), under Sections 3 and 4 of the MAXXAM
Executive Bonus Plan (amended and restated 2008), as amended by an Amendment
thereto dated March 31, 2009 (the “Plan”).  Part
II sets forth bonus opportunities relating to the 2010 fiscal
year.  It is anticipated that additional criteria will be established
relating to the 2010 fiscal year at a later date.  All terms not
defined herein shall have the meanings assigned to them in the
Plan.  As used herein, the term “earn” shall be subject to the
Committee’s absolute discretion, under Section 4.1 of the Plan, to reduce the
actual bonus payable hereunder as the result of any of the criteria being
achieved.  As used herein, the term “base
salary” shall mean CEH’s 2009 base salary from the Company of
$835,000.

      

      PART
I:  BONUS CRITERIA RELATING TO THE 2009 FISCAL YEAR

      

      
        	
                A.

              	
                Improved
      2009 Consolidated Financial Results

              

      

      

      CEH will
earn a bonus equal to 1% of base salary for each full $1.0 million in
improvement (representing a decrease in net loss or an increase in net income)
in 2009 Consolidated Financial Results as compared to the 2008 Consolidated
Financial Results, not to exceed $1,500,000.  2009 Consolidated
Financial Results for this purpose shall be deemed to be the amount of net
income (or loss) shown in the Company’s earnings release with respect to its
2009 results (excluding amounts related to the Company’s net investment in The
Pacific Lumber Company (“Palco”)
and the related tax effects).  2008 Consolidated Financial Results for
this purpose shall be deemed to be the amount of net loss shown in the Company’s
audited financial statements as of December 31, 2008 as same are published in
the Company’s Annual Report on Form 10-K for 2008  (excluding (i)
amounts related to the Company’s net investment in Palco and the related tax
effects, (ii) the $10 million gain by the Company in December 2008 from the FDIC
sanctions motion, and (iii) the December 2008 insurance recoveries by Sam
Houston Race Park, Ltd. (SHRP”)
in respect of Hurricane Ike).

      

      B.            
Business Development Projects

      

      CEH will
earn a bonus for 2009 services, not to exceed an aggregate of 100% of base
salary, based on the following criteria:  331⁄3% of base salary for any
of the business development projects described below.  It is believed
and intended that all of the items described below are substantially uncertain
on the date hereof.  Completion of each of the items described below
shall be deemed to constitute a separate business development project so that
331⁄3% of base salary shall be earned as a bonus for each such project completed,
subject to the overall limitation of 100% of base salary for all criteria under
this section.

      

      
        	
                 
      

              	
                (1)

              	
                The
      undertaking by Palmas del Mar Properties, Inc. and/or an affiliate thereof
      (“Palmas”)
      of a new business opportunity wherein a written commitment is made to
      invest $5 million or more (in cash or property) in connection with tourism
      operations in Puerto Rico.  For purposes of this Plan criterion,
      the undertaking of a condominium or other land development project in
      conjunction with a hotel project shall be considered separate undertakings
      resulting in separate business development
      projects.  Satisfaction of this Plan criterion shall be deemed
      to have occurred upon the approval or ratification of such undertaking by
      the applicable Board of Directors or comparable governing body (“Board”)
      and the execution by all parties to such undertaking of a binding written
      agreement in respect thereto.

              

      

      
        
          
            2009 CEH
162(m) Bonus Criteria final BLB.DOC

          

           

        

        
           

          
            

          

        

        
           

          
            2009 CEH
Section 162(m)

            Bonus
Criteria

            

            

          

        

      

      

      
        	
                 
      

              	
                (2)

              	
                The
      undertaking by the Company and/or an affiliate thereof of a new business
      opportunity wherein a written commitment is made to invest $5 million or
      more (in cash or property) in connection with a new real estate operation
      or development.  Satisfaction of this Plan criterion shall be
      deemed to have occurred upon the approval or ratification of such
      undertaking by the applicable Board and the execution by all parties to
      such undertaking of a binding written agreement in respect
      thereto.

              

      

      

      
        	
                 
      

              	
                (3)

              	
                The
      undertaking by SHRP  and/or an affiliate thereof of a new
      business opportunity wherein a written commitment is made to invest $2.5
      million or more (in cash or property) in connection with racing, gaming or
      other entertainment operations of SHRP, or any related joint venture or
      other arrangement.  Satisfaction of this Plan criterion shall be
      deemed to have occurred upon the approval or ratification of such
      undertaking by the applicable Board and the execution by all parties to
      such undertaking of a binding written agreement in respect
      thereto.

              

      

      

      
        	
                 
      

              	
                (4)

              	
                The
      approval by the Texas Legislature of significant gaming
      legislation.  The term “significant
      gaming legislation” means initial enabling legislation for any or
      all of the following: (a) off-track betting on horse and/or dog racing
      which may be conducted in at least 20 locations in Texas, (b) poker, card
      or other games of skill or chance at any racing facilities owned by the
      Company or a subsidiary thereof, (c) video lottery, slot machines or
      similar gaming devices at or in respect of any racing facilities or
      licenses owned by the Company or a subsidiary thereof, or (d) casino
      gaming (full or partial scale) at any racing facilities owned by the
      Company or a subsidiary thereof.

              

      

      

      
        	
                 
      

              	
                (5)

              	
                The
      receipt, directly, or indirectly through a joint venture or other
      arrangement, by the Company or one of its subsidiaries of a permit,
      license or similar approval to conduct gaming as allowed under any
      significant gaming legislation approved by the Texas Legislature, but
      which does not apply to any racing facilities owned by the
      Company.

              

      

      

      C.            
Extraordinary Transactions

       

      CEH will
earn a bonus of 75% of base salary for completion in 2009 of an Extraordinary
Transaction as such is defined in Section 1.8 of the Plan; provided that any
other items specifically listed under Section B. as a Business Development
Project for 2009 shall not also be considered an Extraordinary Transaction under
this item.  The maximum bonus that can be earned under this provision
is 225% of base salary.  An Extraordinary Transaction shall be deemed
to have occurred upon the approval or ratification of such transaction(s) by the
applicable Board and the execution by all parties to such transaction(s) of a
binding written agreement in respect thereto.  The term
“Extraordinary  Transaction” shall exclude any disposition of any
interest(s) of the Company in its forest products operations.

       

      D.            
Improved 2009 Earnings per Share

      

      CEH will
earn a bonus equal to 1% of base salary for each full $0.15 (fifteen cents)
improvement (representing a decrease in net loss per share or an increase in net
income per share) in the Company’s 2009 Earnings per Share as compared to the
Company’s 2008 Earnings per Share, not to exceed $1,000,000.  2009
Earnings per Share for this purpose shall be deemed to be the earnings (or loss)
per common and common equivalent share of the Company as shown in the Company’s
earnings release with respect to its 2009 results (excluding amounts related to
the Company’s net investment in The Pacific Lumber Company (“Palco”)
and the related tax effects).   2008 Earnings per Share for this
purpose
shall be deemed to be the earnings (or loss) per common and common equivalent
share of the Company as shown in the Company’s audited financial statements as
of December 31, 2008 as same are published in the Company’s Annual Report on
Form 10-K for 2008 (excluding (i) amounts related to the Company’s net
investment in Palco and the related tax effects, (ii) the $10 million gain by
the Company in December 2008 from the FDIC sanctions motion, and (iii) the
December 2008 insurance recoveries by SHRP in respect of Hurricane
Ike).

      
        
          
             

            2009 CEH
162(m) Bonus Criteria final BLB.DOC

          

           

        

        
          2

          
            

          

        

        
           

          
            2009 CEH
Section 162(m)

            Bonus
Criteria

            

            

          

        

      

       

      E.            
Improved Consolidated Liquidity Position

      

      CEH will
earn a bonus equal to 1% of base salary for each full $1.0 million improvement
in the Company’s consolidated liquidity position for the year ended December 31,
2009 as compared to the Company’s consolidated liquidity position for the year
ended December 31, 2008, not to exceed $1,000,000.  Such improvement,
if any, in the Company’s consolidated liquidity position shall be equal to the
sum of (i) the
increase (decrease) in the Company’s consolidated cash and cash equivalents for
the year ended December 31, 2009 as compared to the year ended December 31,
2008, and (ii) the increase (decrease) in available borrowing capacity under the
credit facilities of the Company and its consolidated subsidiaries (“consolidated
borrowing capacity”) as of December 31, 2009 as compared to consolidated
borrowing capacity as of December 31, 2008.

      

      F.            
Achievement of Divisional/Subsidiary Business Plans

      

      CEH will
earn a bonus equal to 331⁄3% of base salary for achievement of the 2009 business
plan with respect to each of (i) the Company’s real estate operations, (ii)
SHRP’s operations, or (iii) the Company’s corporate operations.  The
maximum bonus under this subsection shall be equal to 100% of base
salary.  The 2009 business plan for this purpose shall be the 2009
business plan as approved by the Company’s Board or the Board of the applicable
entities within the business unit.  Achievement of the business plan
for the respective business unit shall be deemed to occur if the actual 2009
before-tax net income or loss computed in accordance with generally accepted
accounting principles in the United States for the unit is equal to or better
than (i.e., a higher net income or lower net loss) the before-tax net income or
loss as provided for in the applicable business plan.

      

      PART II: BONUS CRITERIA RELATING
TO THE 2010 FISCAL
YEAR

      

      
        	
                A.

              	
                In
      the event that any of the criteria set forth above under Sections B and C
      of Part I are satisfied subsequent to December 31, 2009 and prior to
      establishment of the 2010 bonus criteria, the corresponding bonus shall be
      earned by CEH using his 2010 base
salary.

              

      

      

      
        	
                 
      

              	
                [Signature
      page follows]

              

      

      

      
        
          
             

            2009 CEH
162(m) Bonus Criteria final BLB.DOC

          

           

        

        
          3

          
            

          

        

        
           

          
            2009 CEH
Section 162(m)

            Bonus
Criteria

            

            

          

        

      

      In witness
whereof, the undersigned have affixed their signatures hereto as of the
date shown below.

       

      

      
        	
                Dated:                 March
      31, 2009

              	 
      	
                MAXXAM
      INC. SECTION 162(m)

              
	 
      	 
      	
                COMPENSATION
      COMMITTEE

              
	 
      	 
      	 
      
	 
      	 
      	
                /s/
      Robert J. Cruikshank

              
	 
      	 
      	
                Robert
      J. Cruikshank, Chairman

              
	 
      	 
      	 
      
	 
      	 
      	
                /s/
      Stanley D. Rosenberg

              
	 
      	 
      	
                Stanley
      D. Rosenberg

              
	 
      	 
      	 
      
	 
      	 
      	
                /s/
      Michael J. Rosenthal

              
	 
      	 
      	
                Michael
      J. Rosenthal

              

      

      

      

      
        
          
             

            2009 CEH
162(m) Bonus Criteria final BLB.DOC

          

           

        

        
          4exh-10_3.htm

    Exhibit
10.3

    

    2009 BONUS CRITERIA FOR MAXXAM PRESIDENT

    UNDER
THE MAXXAM 1994 EXECUTIVE BONUS PLAN

    

    The
Section 162(m) Compensation Committee (the “Committee”)
of the Board of Directors of MAXXAM Inc. (the “Company”)
has on the 31st day of March 2009 established the following specific targets,
criteria, and bonus opportunities for Shawn M. Hurwitz (“SMH”),
President of the Company, relating to the 2009 fiscal year (set forth in Part
I), under Sections 3 and 4 of the MAXXAM Executive Bonus Plan (amended and
restated 2008), as amended by an Amendment thereto dated March 31, 2009 (the
“Plan”).  Part
II sets forth bonus opportunities relating to the 2010 fiscal
year.  It is anticipated that additional criteria will be established
relating to the 2010 fiscal year at a later date.  All terms not
defined herein shall have the meanings assigned to them in the
Plan.  As used herein, the term “earn” shall be subject to the
Committee’s absolute discretion, under Section 4.1 of the Plan, to reduce the
actual bonus payable hereunder as the result of any of the criteria being
achieved.  As used herein, the term “base
salary” shall mean SMH’s 2009 base salary from the Company of
$525,000.

    

    PART
I:  BONUS CRITERIA RELATING TO THE 2009 FISCAL YEAR

    

    
      	
              A.

            	
              Improved
      2009 Consolidated Financial Results

            

    

    

    SMH will
earn a bonus equal to 1% of base salary for each full $1.0 million in
improvement (representing a decrease in net loss or an increase in net income)
in 2009 Consolidated Financial Results as compared to the 2008 Consolidated
Financial Results, not to exceed $945,000.  2009 Consolidated
Financial Results for this purpose shall be deemed to be the amount of net
income (or loss) shown in the Company’s earnings release with respect to its
2009 results (excluding amounts related to the Company’s net investment in The
Pacific Lumber Company (“Palco”)
and the related tax effects).  2008 Consolidated Financial Results for
this purpose shall be deemed to be the amount of net loss shown in the Company’s
audited financial statements as of December 31, 2008 as same are published in
the Company’s Annual Report on Form 10-K for 2008  (excluding (i)
amounts related to the Company’s net investment in Palco and the related tax
effects, (ii) the $10 million gain by the Company in December 2008 from the FDIC
sanctions motion, and (iii) the December 2008 insurance recoveries by Sam
Houston Race Park, Ltd. (SHRP”)
in respect of Hurricane Ike).

    

    B.             Business
Development Projects

    

    SMH will
earn a bonus for 2009 services, not to exceed an aggregate of 100% of base
salary, based on the following criteria:  331⁄3% of base salary for any
of the business development projects described below.  It is believed
and intended that all of the items described below are substantially uncertain
on the date hereof.  Completion of each of the items described below
shall be deemed to constitute a separate business development project so that
331⁄3% of base salary shall be earned as a bonus for each such project completed,
subject to the overall limitation of 100% of base salary for all criteria under
this section.

    

    
      	
               
      

            	
              (1)

            	
              The
      undertaking by Palmas del Mar Properties, Inc. and/or an affiliate thereof
      (“Palmas”)
      of a new business opportunity wherein a written commitment is made to
      invest $5 million or more (in cash or property) in connection with tourism
      operations in Puerto Rico.  For purposes of this Plan criterion,
      the undertaking of a condominium or other land development project in
      conjunction with a hotel project shall be considered separate undertakings
      resulting in separate business development
      projects.  Satisfaction of this Plan criterion shall be deemed
      to have occurred upon the approval or ratification of such undertaking by
      the applicable Board of Directors or comparable governing body (“Board”)
      and the execution by all parties to such undertaking of a binding written
      agreement in respect thereto.

            

    

    
      
        
          2009 SMH
162(m) Bonus Criteria final BLB.DOC

        

         

      

      
         

        
          

        

      

      
         

        
          2009 SMH
Section 162(m)

          Bonus
Criteria

          

          

        

      

    

    

    
      	
               
      

            	
              (2)

            	
              The
      undertaking by the Company and/or an affiliate thereof of a new business
      opportunity wherein a written commitment is made to invest $5 million or
      more (in cash or property) in connection with a new real estate operation
      or development.  Satisfaction of this Plan criterion shall be
      deemed to have occurred upon the approval or ratification of such
      undertaking by the applicable Board and the execution by all parties to
      such undertaking of a binding written agreement in respect
      thereto.

            

    

    

    
      	
               
      

            	
              (3)

            	
              The
      undertaking by SHRP  and/or an affiliate thereof of a new
      business opportunity wherein a written commitment is made to invest $2.5
      million or more (in cash or property) in connection with racing, gaming or
      other entertainment operations of SHRP, or any related joint venture or
      other arrangement.  Satisfaction of this Plan criterion shall be
      deemed to have occurred upon the approval or ratification of such
      undertaking by the applicable Board and the execution by all parties to
      such undertaking of a binding written agreement in respect
      thereto.

            

    

    

    
      	
               
      

            	
              (4)

            	
              The
      approval by the Texas Legislature of significant gaming
      legislation.  The term “significant
      gaming legislation” means initial enabling legislation for any or
      all of the following: (a) off-track betting on horse and/or dog racing
      which may be conducted in at least 20 locations in Texas, (b) poker, card
      or other games of skill or chance at any racing facilities owned by the
      Company or a subsidiary thereof, (c) video lottery, slot machines or
      similar gaming devices at or in respect of any racing facilities or
      licenses owned by the Company or a subsidiary thereof, or (d) casino
      gaming (full or partial scale) at any racing facilities owned by the
      Company or a subsidiary thereof.

            

    

    

    
      	
               
      

            	
              (5)

            	
              The
      receipt, directly, or indirectly through a joint venture or other
      arrangement, by the Company or one of its subsidiaries of a permit,
      license or similar approval to conduct gaming as allowed under any
      significant gaming legislation approved by the Texas Legislature, but
      which does not apply to any racing facilities owned by the
      Company.

            

    

    

    C.            
Extraordinary Transactions

    

    SMH will
earn a bonus of 75% of base salary for completion in 2009 of an Extraordinary
Transaction as such is defined in Section 1.8 of the Plan; provided that any
other items specifically listed under Section B. as a Business Development
Project for 2009 shall not also be considered an Extraordinary Transaction under
this item.  The maximum bonus that can be earned under this provision
is 225% of base salary.  An Extraordinary Transaction shall be deemed
to have occurred upon the approval or ratification of such transaction(s) by the
applicable Board and the execution by all parties to such transaction(s) of a
binding written agreement in respect thereto.  The term
“Extraordinary  Transaction” shall exclude any disposition of any
interest(s) of the Company in its forest products operations.

    

    D.            Improved
2009 Earnings per Share

    

    SMH will
earn a bonus equal to 1% of base salary for each full $0.15 (fifteen cents)
improvement (representing a decrease in net loss per share or an increase in net
income per share) in the Company’s 2009 Earnings per Share as compared to the
Company’s 2008 Earnings per Share, not to exceed $630,000.  2009
Earnings per Share for this purpose shall be deemed to be the earnings (or loss)
per common and common equivalent share of the Company as shown in the Company’s
earnings release with respect to its 2009 results (excluding amounts related to
the Company’s net investment in The Pacific Lumber Company (“Palco”)
and the related tax effects).   2008 Earnings per Share for this
purpose
shall be deemed to be the earnings (or loss) per common and common equivalent
share of the Company as shown in the Company’s audited financial statements as
of December 31, 2008 as same are published in the Company’s Annual Report on
Form 10-K for 2008 (excluding (i) amounts related to the Company’s net
investment in Palco and the related tax effects, (ii) the $10 million gain by
the Company in December 2008 from the FDIC sanctions motion, and (iii) the
December 2008 insurance recoveries by SHRP in respect of Hurricane
Ike).

    
      
        
           

          2009 SMH
162(m) Bonus Criteria final BLB.DOC

        

         

      

      
        2

        
          

        

      

      
         

        
          2009 SMH
Section 162(m)

          Bonus
Criteria

          

          

        

      

    

    

    E.            
Improved Consolidated Liquidity Position

    

    SMH will
earn a bonus equal to 1% of base salary for each full $1.0 million improvement
in the Company’s consolidated liquidity position for the year ended December 31,
2009 as compared to the Company’s consolidated liquidity position for the year
ended December 31, 2008, not to exceed $630,000.  Such improvement, if
any, in the Company’s consolidated liquidity position shall be equal to the
sum of (i) the
increase (decrease) in the Company’s consolidated cash and cash equivalents for
the year ended December 31, 2009 as compared to the year ended December 31,
2008, and (ii) the increase (decrease) in available borrowing capacity under the
credit facilities of the Company and its consolidated subsidiaries (“consolidated
borrowing capacity”) as of December 31, 2009 as compared to consolidated
borrowing capacity as of December 31, 2008.

    

    F.            
Achievement of Divisional/Subsidiary Business Plans

    

    SMH will
earn a bonus equal to 50% of base salary for achievement of the 2009 business
plan with respect to each of (i) the Company’s real estate operations, or (ii)
SHRP’s operations.  The maximum bonus under this subsection shall be
equal to 100% of base salary.  The 2009 business plan for this purpose
shall be the 2009 business plan as approved by the Company’s Board or the Board
of the applicable entities within the business unit.  Achievement of
the business plan for the respective business unit shall be deemed to occur if
the actual 2009 before-tax net income or loss computed in accordance with
generally accepted accounting principles in the United States for the unit is
equal to or better than (i.e., a higher net income or lower net loss) the
before-tax net income or loss as provided for in the applicable business
plan.

    

    PART II: BONUS CRITERIA RELATING
TO THE 2010 FISCAL
YEAR

    

    
      	
              A.

            	
              In
      the event that any of the criteria set forth above under Sections B and C
      of Part I are satisfied subsequent to December 31, 2009 and prior to
      establishment of the 2010 bonus criteria, the corresponding bonus shall be
      earned by SMH using his 2010 base
salary.

            

    

    

    
      	
               
      

            	
              [Signature
      page follows]

            

    

    

    
      
        
           

          2009 SMH
162(m) Bonus Criteria final BLB.DOC

        

         

      

      
        3

        
          

        

      

      
         

        
          2009 SMH
Section 162(m)

          Bonus
Criteria

          

          

        

      

    

    In witness
whereof, the undersigned have affixed their signatures hereto as of the
date shown below.

    

    
      	
              Dated:     March
      31, 2009

            	 
      	
              MAXXAM
      INC. SECTION 162(m)

            
	 
      	 
      	
              COMPENSATION
      COMMITTEE

            
	 
      	 
      	 
      
	 
      	 
      	
              /s/
      Robert J. Cruikshank

            
	 
      	 
      	
              Robert
      J. Cruikshank, Chairman

            
	 
      	 
      	 
      
	 
      	 
      	
              /s/
      Stanley D. Rosenberg

            
	 
      	 
      	
              Stanley
      D. Rosenberg

            
	 
      	 
      	 
      
	 
      	 
      	
              /s/
      Michael J. Rosenthal

            
	 
      	 
      	
              Michael
      J. Rosenthal

            

    

    

    

    

    
      
        
           

          2009 SMH
162(m) Bonus Criteria final BLB.DOC

        

         

      

      
        4

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