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KOMAG
INCORPORATED
 BONUS PLAN




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TABLE OF CONTENTS
 PageSECTION 1
    
    BACKGROUND, PURPOSE AND DURATION
    
    
    11.1
    
    Effective Date
    
    
    11.2
    
    Purpose of the Plan
    
    
    1SECTION 2
    
    DEFINITIONS
    
    
    12.1
    
    Affiliate
    
    
    12.2
    
    Award
    
    
    12.3
    
    Base Pay
    
    
    12.4
    
    Board
    
    
    12.5
    
    Bonus Pool
    
    
    12.6
    
    Committee
    
    
    12.7
    
    Company
    
    
    22.8
    
    Corporate Operating Income
    
    
    22.9
    
    Disability
    
    
    22.10
    
    Participant
    
    
    22.11
    
    Payout Percentage
    
    
    22.12
    
    Performance Period
    
    
    22.13
    
    Plan
    
    
    22.14
    
    Supplemental Target Percentage
    
    
    22.15
    
    Target Percentage
    
    
    22.16
    
    Termination of Service
    
    
    3SECTION 3
    
    DETERMINATION OF AWARDS
    
    
    33.1
    
    Selection of Participants
    
    
    33.2
    
    Determination of Target Awards
    
    
    33.3
    
    Bonus Pool
    
    
    43.4
    
    Employment Status Affect on Award
    
    
    43.5
    
    Discretion to Modify Awards
    
    
    43.6
    
    Discretion to Determine Criteria
    
    
    5SECTION 4
    
    PAYMENT OF AWARDS
    
    
    54.1
    
    Funding of Plan
    
    
    54.2
    
    Timing of Payment
    
    
    54.3
    
    Form of Payment
    
    
    5SECTION 5
    
    ADMINISTRATION
    
    
    55.1
    
    Committee
    
    
    55.2
    
    Committee Authority
    
    
    65.3
    
    Decisions Binding
    
    
    65.4
    
    Delegation by the Committee
    
    
    6




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PageSECTION 6
    
    GENERAL PROVISIONS
    
    
    66.1
    
    Tax Withholding
    
    
    66.2
    
    No Effect on Employment or Service
    
    
    66.3
    
    Participation
    
    
    76.4
    
    Successors
    
    
    76.5
    
    Nontransferability of Awards
    
    
    7SECTION 7
    
    AMENDMENT, TERMINATION AND DURATION
    
    
    77.1
    
    Amendment, Suspension or Termination
    
    
    77.2
    
    Duration of the Plan
    
    
    7SECTION 8
    
    LEGAL CONSTRUCTION
    
    
    88.1
    
    Gender and Number
    
    
    88.2
    
    Severability
    
    
    88.3
    
    Requirements of Law
    
    
    88.4
    
    Bonus Plan
    
    
    88.5
    
    Governing Law
    
    
    88.6
    
    Captions
    
    
    8




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KOMAG, INC.
BONUS PLAN
 SECTION 1
BACKGROUND, PURPOSE AND DURATION
 1.1
    
    Effective Date
  1.2
    
    Purpose of the Plan
  SECTION 2
DEFINITIONS
  2.1
    
    Affiliate
  2.2
    
    Award
  2.3
    
    Base Pay
  2.4
    
    Board
  2.5
    
    Bonus Pool
  2.6
    
    Committee




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2.7
    
    Company
  2.8
    
    Corporate Operating Income
  2.9
    
    Disability
  2.10
    
    Participant
  2.11
    
    Payout Percentage
  2.12
    
    Performance Period
  2.13
    
    Plan
  2.14
    
    Supplemental Target Percentage
 -2-




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2.15
    
    Target Percentage
  2.16
    
    Termination of Service
  SECTION 3
DETERMINATION OF AWARDS
 3.1
    
    Selection of Participants
  3.2
    
    Determination of Target Awards
  Annual Performance Period Annual Award
  -3-




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Interim Award
  3.3
    
    Bonus Pool
  3.4
    
    Employment Status Affect on Award
   3.5
    
    Discretion to Modify Awards
 -4-




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3.6
    
    Discretion to Determine Criteria
  SECTION 4
PAYMENT OF AWARDS
 4.1
    
    Funding of Plan
  4.2
    
    Timing of Payment
  4.3
    
    Form of Payment
  SECTION 5
ADMINISTRATION
 5.1
    
    Committee
  -5-




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5.2
    
    Committee Authority
  5.3
    
    Decisions Binding
  Delegation by the Committee
  SECTION 6
GENERAL PROVISIONS
 6.1
    
    Tax Withholding
  6.2
    
    No Effect on Employment or Service
  6.3
    
    Participation
  -6-




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6.4
    
    Successors
  6.5
    
    Nontransferability of Awards
  SECTION 7
AMENDMENT, TERMINATION AND DURATION
 7.1
    
    Amendment, Suspension or Termination
  7.2
    
    Duration of the Plan
  SECTION 8
LEGAL CONSTRUCTION
 8.1
    
    Gender and Number
  8.2
    
    Severability
  8.3
    
    Requirements of Law
 -7-




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8.4
    
    Bonus Plan.
  8.5
    
    Governing Law
  8.6
    
    Captions
  -8-