Document:

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                                                                    Exhibit 10.1

                             SYPRIS SOLUTIONS, INC.
                         DIRECTORS COMPENSATION PROGRAM
                          ADOPTED ON SEPTEMBER 1, 1995

                    AMENDED AND RESTATED ON FEBRUARY 25, 2003

                           Description of the Program

     Name. The name of this benefit program shall be the "Directors Compensation
Program."

     Purpose. The purpose of the Directors Compensation Program is to enable
Sypris Solutions, Inc. (the "Company") to attract, retain and motivate
experienced directors by providing compensation that is competitive with
compensation offered to directors of other similarly-situated public
corporations in the United States.

     Eligibility and Participation. Only "Eligible Directors," defined as those
members of the Board of Directors of the Company (the "Board") who are not
otherwise employed by the Company, its subsidiaries or any affiliate of the
Company in any other capacity, are eligible to participate in the Directors
Compensation Program. Any Eligible Director on the Board as of September 1, 1995
(the "Effective Date") and thereafter shall be eligible for compensation under
the Directors Compensation Program.

     Compensation. Eligible Directors shall be compensated as set forth below:

          (a) Initial Election Grants and Annual Grants of Stock Options. The
Company shall grant each Eligible Director a nonqualified stock option for the
purchase of: (i) up to 10,000 shares of the Company's common stock, $.01 par
value (the "Common Stock") at the time the Eligible Director is initially
elected to serve on the Board (the "Initial Election Grant"); and (ii) up to
6,000 shares of the Company's Common Stock at each annual stockholders' meeting
thereafter (the "Annual Grant"), so long as a Director is continuing to serve as
a Director on the date of said annual stockholders' meeting. In the event that
an Eligible Director is initially elected to the Board at a time other than the
date of the Company's annual stockholders' meeting, he or she shall receive an
Annual Grant at the subsequent annual stockholders' meeting for a pro rated
number of shares to be determined by multiplying 6,000 by a fraction, the
numerator of which shall be the number of full months which have elapsed since
the date of the Director's initial election and the next annual stockholders'
meeting and the denominator of which shall be 12. All such stock options shall
be granted by the Company to the Eligible Directors pursuant to the Company's
Independent Directors' Stock Option Plan (the "Option Plan"). Each of the
options shall be: (i) granted on the dates each of the respective Eligible
Directors is initially elected and on the date of each annual stockholders'
meeting; (ii) priced at the fair market value of the Company's common stock, as
determined in accordance with Section 7.C. of the Option Plan, on the respective
date of grant; (iii) immediately exercisable by each of the Eligible Directors
on the respective dates of grant; and (iv) subject to the terms and conditions
of the Option Plan and any other terms and conditions which, in accordance with
the Option Plan, are specified in the applicable Stock Option Agreement entered
into by and between the Company and each of the Eligible Directors.

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          (b)  Annual Retainer.

               (i) Amount. Each Eligible Director shall receive an annual
retainer in the amount of $18,000 (the "Annual Retainer"). In the event that an
Eligible Director is initially elected to the Board at a time other than the
date of the Company's annual stockholders' meeting, he or she shall receive a
prorated Annual Retainer (the "Prorated Annual Retainer") the amount of which is
to be determined by multiplying $18,000 by a fraction, the numerator of which
shall be the number of full months which have elapsed since the date of the
Director's initial election to the Board and the next annual stockholders'
meeting and the denominator of which shall be 12.

               (ii) Payment. The Annual Retainer or the Prorated Annual
Retainer, as applicable, shall be earned by the Eligible Directors and paid by
the Company in equal quarterly installments for each Eligible Director. The
quarterly installments of the Annual Retainer or Prorated Annual Retainer shall
be payable, together with any attendance fees (defined below), in arrears by
checks issued to each Eligible Director no later than the 15th calendar day
following the end of each of the Company's fiscal quarters during which the
respective Eligible Director served on the Board. Alternatively, pursuant to
Paragraph (d) below, each Eligible Director may elect to receive his or her
Annual Retainer or Prorated Annual Retainer, together with any attendance fees,
in the form of nonqualified stock options in lieu of cash.

          (c)  Attendance Fees.

               (i) Board Meetings. Each Eligible Director shall receive the sum
of $1,200 for each meeting of the Board he or she attends in person or,
alternatively, the sum of $300 for each meeting of the Board in which he or she
participates by telephone (collectively, the "Board Meeting Attendance Fees").
For purposes of the Directors Compensation Program, "attendance" shall not
include execution of an action by written consent of the Board. Board Meeting
Attendance Fees earned by each Eligible Director during a fiscal quarter shall
be payable, together with the quarterly installment of the Annual Retainer or
Prorated Annual Retainer, by a check issued no later than the 15th calendar day
following the end of the fiscal quarter. Alternatively, pursuant to Paragraph
(d) below, each Eligible Director may elect to receive his or her Board Meeting
Attendance Fees in the form of nonqualified stock options in lieu of cash.

               (ii) Committee Meetings. Eligible Directors are entitled to
compensation for attending or participating in meetings of committees of the
Board. Each Eligible Director who attends a committee meeting in person and
serves as the chairperson of the meeting shall receive the sum of $1,400 per
meeting, and each of the other Eligible Directors who attend such a committee
meeting in person shall receive the sum of $1,000 per meeting. Alternatively,
each Eligible Director who, as the chairperson or as a committee member,
participates by telephone in committee meetings of the Board shall receive the
sum of $300 per meeting. (All of the aforementioned fees in this subparagraph
shall hereafter be collectively referred to as the "Committee Meeting Attendance
Fees"). For purposes of the Directors Compensation Program, "attendance" shall
not include execution of an action by written consent for any committee.
Committee Meeting Attendance Fees earned by each Eligible Director during a
fiscal quarter shall be payable, together with the Annual Retainer or Prorated
Annual Retainer and the Board Meeting Attendance Fees, by a check issued to the
Eligible Director no later than the 15th calendar day following the end of the
fiscal quarter. Alternatively, pursuant to Paragraph (d) below, each Eligible
Director may elect to receive his or her Committee Meeting Attendance Fees in
the form of nonqualified stock options in lieu of cash.

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          (d) Form of Payment. Each Eligible Director may elect to receive his
or her Annual Retainer or Prorated Annual Retainer, Board Meeting Attendance
Fees and Committee Meeting Attendance Fees in the form of nonqualified stock
options in lieu of cash. The election to receive stock options in lieu of cash
must be made by the Eligible Director before each January 1 and shall apply to
the sum of the Annual Retainer, Prorated Annual Retainer, Board Meeting
Attendance Fees and Committee Meeting Attendance Fees (collectively, the "Fees")
earned during the following calendar year. Eligible Directors initially elected
to the Board other than at an annual stockholders' meeting shall make the
election no later than 10 calendar days after being elected to the Board and
such election shall apply to Fees earned during the remainder of such calendar
year. An Eligible Director who fails to make a timely election for the first
calendar year such director is eligible to make an election shall be deemed to
have elected to receive Fees in cash. An Eligible Director who fails to make an
election for any subsequent calendar year shall be deemed to have made the same
election such director made for the immediately preceding calendar year. Such
elections, including deemed elections, shall be irrevocable for the calendar
year for which made.

           Any stock options issued to an Eligible Director in lieu of cash
compensation shall be granted to the respective Eligible Director pursuant to
the Option Plan on a quarterly basis, with each grant to be made on the first
day following the end of each of the Company's fiscal quarters (the "Date of
Grant"). The number of shares to be granted under such options shall be
determined by dividing the total of the quarterly installment of the Annual
Retainer or Prorated Annual Retainer, as applicable, plus any Board Meeting
Attendance Fees and any Committee Meeting Attendance Fees earned by the
respective Eligible Director during the previous fiscal quarter by 33% of the
fair market value of the Company's Common Stock, as determined in accordance
with Section 7.C. of the Option Plan, on the Date of Grant. The options shall
be: (i) priced at the fair market value of the Company's Common Stock, as
determined in accordance with Section 7.C. of the Option Plan, on the Date of
Grant; (ii) immediately exercisable by each of the Eligible Directors on the
respective date of grant; and (iii) subject to the terms and conditions of the
Option Plan and any other terms and conditions which, in accordance with the
Option Plan, are specified in the applicable Stock Option Agreement entered into
by and between the Company and each of the Eligible Directors.

     Expense Reimbursement. Each Eligible Director shall be reimbursed for
travel and other expenses incurred in the performance of his or her duties.

     Administration. The Directors Compensation Program is administered by the
Compensation Committee of the Board. The Committee members are selected by the
Board and have no specific term of office.

     Resignation from the Board of Directors. The resignation of any Eligible
Director shall cause such director to be ineligible to receive any amount of the
Annual Retainer or Prorated Annual Retainer installments not yet paid to him or
her as of the date of resignation. Any attendance fees which have been earned by
the Eligible Director in accordance with Paragraph (c) above prior to the date
of resignation shall be paid in the same form and according to the same
timetables described in Paragraph (c) above.

     Program Termination or Modification. The Compensation Committee shall
review the Directors Compensation Program on at least an annual basis and may
make changes, alterations or modifications to the program which are deemed to be
in the Company's best interest. Any change, alteration or modification shall be
made by a written instrument consented to by the Board. The Board may similarly

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terminate the Directors Compensation Program at any time if, in the judgment of
the Board, such termination is in the Company's best interest.

     IN WITNESS WHEREOF, the Company has caused this Directors Compensation
Program to be executed in its name and on its behalf on February 25, 2003.

                                       SYPRIS SOLUTIONS, INC.

                                       By: /s/ Jeffrey T. Gill
                                           -------------------
                                           Jeffrey T. Gill
                                           President and CEO

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                                                                   Exhibit 10.2

                              SYPRIS SOLUTIONS INC.
                              EXECUTIVE BONUS PLAN
                                2003 FISCAL YEAR

1.   Establishment of Plan.

     Sypris Solutions Inc., a Delaware corporation (the "Company"), established
this executive bonus plan effective as of January 1, 2003 (the "Plan"), to
provide a financial incentive for employees of the Company to advance the growth
and prosperity of the Company.

2.   Eligibility.

     Officers of the Company who are specifically designated by the Compensation
Committee of the Board of Directors of the Company (the "Compensation
Committee") for participation during the current year shall be eligible to
participate in the Plan.

3.   Bonus Potential.

     The bonus potential for each participant will be established and approved
by the Compensation Committee at the beginning of each Plan year. Each
participant will be provided with a copy of this Plan, which will include an
exhibit that lists the participant's full name, salary, effective date, cash
bonus potential, stock option bonus potential, the Company's (and the
subsidiary's, in the case of a subsidiary president) financial plan benchmarks
and management objectives for the current year.

     The base Plan for 2003 will consist of two components, with 70% of the
participant's bonus potential tied to the achievement of specific profit targets
and the remaining 30% tied to the achievement of specific revenue targets. These
targets will be established for each of the four quarters of the Plan year.

     In order for a participant to earn a bonus for any given quarter, the
profit target must be achieved. Should the profit target and/or revenue target
fail to be achieved during a quarter, the participant will still have the
opportunity to earn the bonus associated with that quarter based upon the future
achievement of the respective profit and revenue targets, as the case may be, on
a year-to-date basis. Once a bonus component has been earned, it will remain
available for future payment regardless of any subsequent shortfall in financial
performance.

     In addition to the base Plan, there will also be a full year bonus that is
specifically designed to reward those participants who achieve the profit and
revenue targets for the full Plan year. The full year bonus will increase the
amount a participant would otherwise qualify to receive by an additional 25%.
The key targets for the 2003 Plan are as follows:

     (a) Profit Target Bonus. Objectives will be established for profit before
bonus and tax for each quarter of the Plan year (the "Profit Targets"). The
achievement of the Profit Target for a specific quarter, or on a year-to-date
basis, must be achieved in order for a participant to qualify for the
corresponding bonus award. The bonus potential will consist of cash and stock
options.

     (b) Revenue Target Bonus. Objectives will be established for revenue for
each quarter of the Plan year (the "Revenue Targets"). The achievement of the
Revenue Target for a specific quarter, or on a year-to-date basis, must be
accompanied by the achievement of the companion Profit Target in order for a
participant to qualify for the bonus associated with the achievement of the
Revenue Target. The bonus potential will consist of cash and stock options.

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     (c) Full Year Target Bonus. Should the Profit Targets and Revenue Targets
be achieved for the full Plan year, the participant will qualify for the Full
Year Target bonus. The bonus potential will consist of cash and stock options.

     Participants who serve in the capacity of president of a Company subsidiary
will derive 20% of their bonus potential from the performance of the Company and
80% of their bonus potential from the performance of the individual subsidiary
for which they are responsible. All final bonus payments will be subject to the
provisions of Section 4, including the participant's performance to objectives,
which could result in bonus payments that are less than the potential amounts
listed on Exhibit A.

4.   Bonus Award.

     Each eligible participant will be entitled to an amount equal to the sum of
the cash award components and the sum of the shares represented by the stock
option award components that have been activated during the Plan year, subject
to the provisions of Sections 7(a), 7(b) and the following:

     (a) Management Objectives. Each participant will have up to five Management
Objectives for the Plan year, each of which will be specific with regard to (i)
the expected outcome, (ii) the expected financial impact on the Company and
(iii) the date or dates by which the objective must be achieved. Each objective
will receive a weighting, the total of which for all objectives will be equal to
100%. The chief executive officer of the Company will have the responsibility to
review and determine each participant's performance to objectives and to assign
each individual a percentage that will be used as a factor to determine the
actual amount of the awards to be distributed.

     (b) Discretionary Review. The chief executive officer of the Company will
have the discretion to increase the actual amount of the awards to be
distributed by up to 20% of the participant's Bonus Potential, based upon the
individual's specific performance and contribution to the Company. Such
discretion will be used sparingly and will generally be limited to the
recognition of extenuating circumstances and/or exceptional accomplishments that
may or may not have been captured by the Management Objectives.

     (c) Approval of the Compensation Committee. The Bonus Award for each
participant will be subject to the review of and approval by the Compensation
Committee. As a matter of policy, the Compensation Committee will not approve
the award of any bonus that would otherwise lead or contribute to an operating
loss as reported on the consolidated financial statements of Sypris Solutions
Inc.

     (d) Qualification. Awards will be payable to each eligible participant as
soon as administratively practicable after release of the audited annual
financial statements of the Company and the approval of the Compensation
Committee; provided, however, that the Plan shall be in effect as of the date of
payment and such employee shall be employed by the Company as of the date of
payment. NO EMPLOYEE SHALL HAVE ANY RIGHT TO PAYMENT OF AN AWARD UNLESS THE PLAN
IS IN EFFECT AND THE EMPLOYEE IS EMPLOYED BY THE COMPANY AS OF THE DATE OF
PAYMENT.

5.   Method of Distribution.

     Cash awards shall be payable by check in lump sum. All such payments will
be subject to withholding for income, social security or other such payroll
taxes as may be appropriate. Stock option grants will be granted under and
subject to the Sypris Solutions Inc. 1994 Stock Option Plan for Key Employees
and will contain an option price that will be equal to the closing price of the
common stock on the over-the-counter market, as reported by the Nasdaq Stock
Market, on the date of grant.

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6.   Administration.

     The Compensation Committee shall administer this Plan. The decisions of the
Compensation Committee in interpreting and applying the Plan shall be final.

7.   Miscellaneous.

     (a) Employment Rights. The adoption and maintenance of this Plan is not an
employment agreement between the Company and any employee. Nothing herein
contained shall be deemed to give any employee the right to be retained in the
employ of the Company nor to interfere with the right of the Company to
discharge any employee at any time.

     (b) Acquisitions and Divestitures. The Profit Targets and Revenue Targets
will be adjusted to reflect the expected impact of any acquisitions and/or
divestitures that are completed during the current Plan year at the time of such
acquisition or divestiture.

     (c) Amendment and Termination. The Company may, without the consent of any
employee or beneficiary, amend or terminate the Plan at any time and from
time-to-time.

     (d) Governing Law. This Plan shall be governed by and construed in
accordance with the laws of the State of Delaware.

     (e) Construction. The headings and subheadings of this Plan have been
inserted for convenience for reference only and are to be ignored in any
construction of the provisions hereof. The masculine shall be deemed to include
the feminine, the singular shall include the plural, and the plural shall
include the singular unless the context otherwise requires. The invalidity or
unenforceability of any provision hereunder shall not affect the validity or
enforceability of the balance hereof. This Plan represents the entire
undertaking by the Company concerning its subject matter and supersedes all
prior undertakings with respect thereto. No provision hereof may be waived or
discharged except by a written document approved by the Compensation Committee
and signed by a duly authorized representative of the Company.

     The parties indicate their acknowledgement of the terms and conditions this
Plan as of the date first written above.

         SYPRIS SOLUTIONS INC.                   PARTICIPANT

         ------------------------                ------------------------
         Robert E. Gill
         Chairman

         ------------------------
         Henry F. Frigon
         Chairman
         Compensation Committee

         ------------------------
         Jeffrey T. Gill
         President and CEO

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