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Exhibit 10.1
 
Description of Senior Management Bonus Program
 
(as amended on December 8, 2014)
 
The following is a description of the senior management bonus program, as
adopted by the compensation committee (the “Committee”) of the board of
directors of Houston Wire & Cable Company (the “Company”) on December 8,
2014.  The bonus program provides for the payment of discretionary annual cash
bonuses to employees who are considered senior management level.  The bonus
program is administered by the Committee, which has full authority to select
participants, set bonus amounts and fix performance targets.  The Company’s
board of directors receives a report from the Committee of all awards granted
and targets established.
 
Beginning in 2015, the bonus is based on a single performance incentive measure:
EBITDA (net income, plus interest expense, income tax provision, depreciation
and amortization).  For each participant, the potential bonus award is based on
the employee’s salary for the year with respect to which the bonus is payable
(the “Bonus Year”) and the Company’s performance as against three EBITDA
measures set by the Committee for the Bonus Year – “threshold,” “target” and
“stretch.” If the Company achieves the EBITDA “threshold” amount, then the
participant qualifies to receive a cash bonus equal to 10% of his or her salary;
if the Company achieves the EBITDA “target” amount, the bonus will increase to
25% of base salary, and if the Company achieves the “stretch” amount, the bonus
will be 50% of base salary, which is the maximum bonus payable under the
program.  EBITDA performance between specified amounts will result in a bonus
calculated on a straight line basis between the percentages that would apply at
the specified amounts.  If the Company’s EBITDA is less than the threshold
amount for the Bonus Year, no cash bonus will be payable under the program.  All
bonuses are payable the year following the Bonus Year, after receipt of (and
subject to) the audit of the financial statements for the Bonus Year.
 
The Committee retains full discretion to adjust the EBITDA amounts for a
particular Bonus Year in the event the Company makes an acquisition during the
Bonus Year or to reflect unusual items.
 
No award will be paid for any full or partial year to a participant whose
employment with the Company terminates prior to the time the bonus is paid.  In
all cases the payment is in the discretion of the Committee, and the Committee
retains the right to terminate a participant’s participation in the bonus
program at any time, in which case no bonus will be paid.
 
The Chief Executive Officer’s bonus, as described in his employment contract, is
based on performance targets established by the Committee and board of directors
each year.
 
 
 

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