a5961052ex10-1.htm


    Exhibit
10.1

     

     

    Valpey-Fisher
Corporation Key Employee Bonus Plan For

    Fiscal
Year 2009

    


    Purpose
of Plan

    To provide
an incentive to those employees who have a major impact on the profitability of
the company.

    


    Eligibility

    Must be a
full time employee and be in continued employment of the Company for the entire
fiscal year, unless a waiver of this provision is approved in advance of hiring
by the Compensation Committee. In the event the Company is sold before the end
of the year, the bonuses earned through the sale date would be
prorated.

    


    Participants

    The plan
participants will include the CEO and the Management Staff.

    


    Bonus
Pool

    The 2009
bonus pool is based on achieving certain pre-tax operating profit amounts before
the bonus amount, other income/expense, extraordinary income/expense and the
effects of SFAS 123R ("adjusted operating profit") listed below:

     

    
      
        
          
            
              
                
                  
                    
                      	
                              Adjusted Operating Profit

                            	 
      	
                              Cumulative Bonus Amount

                            
	 
      	 
      	 
      
	
                                 500,000

                            	 
      	
                                75,000

                            
	
                              1,000,000

                            	 
      	
                              150,000

                            
	
                              1,250,000

                            	 
      	
                              200,000

                            
	
                              1,500,000

                            	 
      	
                              275,000

                            
	
                              1,750,000

                            	 
      	
                              325,000

                            
	
                              2,000,000

                            	 
      	
                              375,000

                            
	
                              2,250,000

                            	 	
                              450,000

                            
	
                              2,500,000

                            	 	
                              500,000

                            


                    

                  

                

              

            

          

        

      

    

    


     For
adjusted operating profit amounts between the listed amounts, the bonus amount
will be prorated.

    


    For
adjusted operating profit in excess of $2,500,000 the Board of Directors will
determine the bonus amount.

    


    The
Compensation Committee will recommend the bonus payout amount for the CEO to the
Board of Directors for their approval. The CEO will recommend the payout amount
for the remaining participants, which will then be reviewed by the Compensation
Committee and recommended to the Board of Directors for approval.  A
performance review will be furnished by the Chairman for the CEO and by the CEO
for the other participants.

    


    The
distribution of the bonus and percentage of individual participation will range
from 0% to 100% of salary.

    


    The bonus
amount includes a profit sharing contribution for the year ended December 31,
2009 as determined by the Board of Directors and shall be limited to a maximum
of 10% of the total bonus payout.

     

     

     

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