Document:

Exhibit 10.1

[CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED BY WJ COMMUNICATIONS, INC. CONFIDENTIAL PORTIONS
OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION.]

WJ
COMMUNICATIONS, INC.

401 RIVER OAKS PARKWAY

SAN
JOSE, CALIFORNIA  95134

March 1, 2006

Mr. R. Gregory
Miller

Re: Employment Agreement

Dear Mr. Miller:

This letter
agreement (this “Agreement”) sets forth the terms and conditions of your
employment with WJ Communications, Inc. (the “Company”), effective as of
DATE  (the “Effective Date”). You acknowledge that if the Effective Date
does not occur on or before DATE, the Company shall have no obligation to
employ you and this Agreement shall terminate.

1.           Employment and Services. 
The Company shall employ you as Vice President and Chief Financial Officer of
the Company, for the period beginning on the Effective Date and ending upon
termination pursuant to Section 5 below (the “Employment Period”). 
During the Employment Period, you shall render such services to the Company and
its affiliates and subsidiaries as the Chief Executive Officer and the Board of
Directors of the Company (the “Board”) shall reasonably designate from time to
time, and you shall devote your best efforts and full time and attention to the
business of the Company; provided, however, you may participate in outside
activities as long as such activities do not interfere with your obligations
under this Agreement, are not competitive with the Company, and you receive
prior approval from the Board (which approval will not be unreasonably
withheld).

2.           Compensation.

a.          Annual
Base Salary.  The Company shall pay you an annual base salary (“Annual
Base Salary”) of Two Hundred Thirty Thousand Dollars ($230,000) during the
Employment Period, subject to annual review in each year of the Employment
Period thereafter (for any partial year during the Employment Period, the
Annual Base Salary shall be prorated based on the number of days during such
year in which you are employed by the Company).  The first such annual
review will occur during or about April 2007.  Your Annual Base
Salary may be increased in years following the first year of employment but may
not be decreased.  As used herein, the term “Annual Base Salary” refers to
the Annual Base Salary as so increased.  Such Annual Base Salary shall be
payable in installments in accordance with the Company’s regular payroll
practices.

b.         Bonus. 
In addition, subject to the immediately subsequent Section, you will be
eligible to receive a bonus, calculated and paid based upon the current plan
(but not to exceed yearly), to be

 

paid as soon as practicable after each plan period, but not later than
one hundred twenty (120) days after the end of each such plan period.  In
order to determine the amount of such bonus, the Company shall determine
appropriate business targets and certain individual objectives for you for each
plan period, and your bonus for each such plan period shall be based upon the
extent to which the Company and you attain such targets and objectives. Your
plan period bonus target shall be ***. The determination of appropriate
business targets with respect to each plan period shall take place not later
than thirty (30) days following the receipt by the Board from the Company’s senior
management of the Company’s operating budget with respect to such fiscal
period.

c.          Notwithstanding
anything herein to the contrary, there shall be deducted or withheld from all
amounts payable to you under this Agreement amounts for all federal, state,
city or other taxes required by applicable law to be so withheld or deducted
and any other amounts authorized for deduction by or required by law.

3.           Options.

a.          Options. 
You will be granted as of the Effective Date a non-qualified stock option to
purchase 500,000  shares of Common Stock of the Company, with a per share
exercise price equal to the per share fair market value of the Common Stock of
the Company as of the Effective Date (the “Option Grant”).  The Option
Grant will be in accordance with WJ Communications, Inc. 2000 Employee
Stock Incentive Plan and shall be subject to the terms and conditions set forth
in the attached Executive Time Vesting Stock Option Agreement (the “Option
Agreement”) to be entered into between the Company and you simultaneously with
entering into this Agreement.  Any of the foregoing and the terms and
conditions of the Option Agreement to the contrary notwithstanding, upon the
earlier to occur of (A) the termination of your employment within six
(6) months of the occurrence of a Change in Control (as defined in the
Executive Time Vesting Stock Option Agreement), which termination is
(i) by the Company other than for Cause (as defined below), or
(ii) by you with Good Reason (as defined below), you shall be fully vested
in any then unvested shares under the Option Grant (it being understood that
there shall not be accelerated vesting of the shares under the Option Grant
upon any other termination of your employment).

b.         Performance-Vested
Stock Options.  180,000 Shares of the stock options shall vest based
on performance (“Performance Shares”) subject to the terms and conditions of
the Plan and the applicable Performance Stock Option Agreement (the “Performance
Award”).  The Performance Shares shall vest conditioned on your satisfaction
of certain performance targets and objectives.

c.          Time-Vested
Restricted Stock.  As of the Effective Date, you will be granted
10,000 shares of Restricted Stock .  These shares of Restricted Stock will
vest on the one-year anniversary of the Effective Date.

4.           Benefits.  During the
Employment Period, you shall be entitled to participate in the Company’s fringe
benefit plans for its executives, subject to and in accordance with applicable
eligibility requirements, such as group medical, dental and vision care
insurance, executive medical reimbursement, tax preparation, 401(k), employee
stock purchase program, life and disability insurance plans and all other
benefit plans (other than severance and equity-based plans or arrangements)
generally available to the Company’s executive officers.  In addition, the
Company will reimburse your reasonable out-of-pocket expenses incurred in
connection with the performance of your duties hereunder, consistent with
Company policy.  You shall be entitled to take time off in accordance with
the Company’s top management vacation policy.

***        
CONFIDENTIAL MATERIAL REDACTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

5.           Termination and Severance. 
The Employment Period shall terminate on the first to occur of (i) thirty
(30) days following written notice by you to the Company of your resignation
without Good Reason (it being understood that you will continue to perform your
services hereunder during such thirty (30) day period if requested, but the
Company may terminate your services sooner if it so elects), (ii) thirty
(30) days following written notice by you to the Company of your resignation
with Good Reason (it being understood that you will continue to perform your
services hereunder during such thirty (30) day period provided that the Company
does not elect to terminate your employment sooner if it so elects),
(iii) your death or Disability (as defined below), (iv) a vote of the
Board directing such termination for Cause, (v) a vote of the Board
directing such termination without Cause, or (vi) the third (3rd)
anniversary of the Effective Date (the “Scheduled Expiration Date”); provided,
however, that the Scheduled Expiration Date shall be automatically extended for
successive one-year periods unless, at least ninety (90) days prior to the
then-current Scheduled Expiration Date, either the Company or you shall give
written notice to the other of an intention not to extend the Employment Period. 
In the event of termination of the Employment Period pursuant to clause
(ii) or (v) above, the Company shall pay to you an amount equal to
your Annual Base Salary as in effect immediately prior to the termination of
the Employment Period, such amount to be paid periodically in accordance with
the Company’s regular payroll practices over the twelve (12) month period
immediately following such termination (the “Severance Benefit”).

Notwithstanding
the preceding sentence, the Severance Benefit shall be computed as an amount
equal to one hundred fifty percent (150%) of your Annual Base Salary as in
effect immediately prior to the termination of the Employment Period and shall
be paid periodically in accordance with the Company’s regular payroll practices
over the twelve (12) month period immediately following such termination solely
in a circumstance in which there has occurred a Change in Control (as defined
in the Option Agreement) within six (6) months prior to any termination by
you for Good Reason or by the Company without Cause. Notwithstanding anything
in this Agreement to the contrary, in the event that payment of the Severance
Benefit, either alone or together with other payments (or the value of other
benefits) which you have the right to receive from the Company in connection
with a Change in Control, would not be deductible (in whole or in part) by the
Company as a result of the Severance Benefit or other payments or benefits
constituting a “parachute payment” within the meaning of Section 280G of
the Internal Revenue Code of 1986, as amended (the “Code”), the Severance
Benefit (or, at your election, such other payments and/or benefits, or a
combination of such other payments and/or benefit and/or the Severance Benefit)
shall be reduced to the largest amount as will result in no portion of the
Severance Benefit (or such other payments and/or benefits) not being fully
deductible by the Company as a result of Section 280G of the Code. 
The determination of the amount of any such required reduction pursuant to the
foregoing provision, and the valuation of any non-cash benefits for purposes of
such determination, shall be made exclusively by the firm that was acting as
the Company’s auditors prior to the Change in Control (whose fees and expenses
shall be borne by the Company, and such determination shall be conclusive and
binding).

Except as
otherwise set forth in this Section 5 or pursuant to the terms of employee
benefit plans in which you participate pursuant to Section 4, you shall
not be entitled to any compensation or other payment from the Company in
connection with the termination of your employment hereunder.  In addition
to the Severance Benefit, under circumstances in which the Severance Benefit is
payable, you shall also remain eligible to receive group health insurance
benefits under the Company’s benefit plans for one year following the
termination of your employment with the Company so long as such benefit plans
permit such continued participation (or for three years following the termination
of your employment with the Company in the event that the enhanced Severance
Benefits are payable in connection with a Change in Control pursuant to the
third sentence of the first paragraph of this Section 5) (the “Termination
Benefit”).

Notwithstanding
the Severance Benefit payment schedule described above, if necessary to
comply with Section 409A of the Code, during the first six months after
your termination, your Severance Benefits will accrue and become payable in a
lump sum payment on the second day of the seventh month after termination.

For purposes of
this Agreement, the following definitions will apply:  (a) ”Good
Reason” shall mean the occurrence of any of the following without your consent
which shall remain uncured for a period of not less than thirty (30) days
following your delivery of notice of such occurrence to the Company (it being
understood that your failure to deliver such notice in a timely manner shall
waive your rights to allege Good Reason):  (i) the transfer of your
principal place of employment to a geographic location more than 50 miles from
the current location of the Company’s principal headquarters, (ii) any
material breach of this Agreement by the Company

 

which is not cured or
which the Company is not undertaking to cure within thirty (30) days after the
Company has received written notice from you identifying the breach in
reasonable detail; or (iii) a significant reduction of your duties,
position, or responsibilities (including a change in reporting obligations),
relative to your duties, position, or responsibilities in effect immediately
prior to such reduction; (b) ”Cause” shall mean any of the following acts
or circumstances:  (i) willful destruction by you of Company property
having a material value to the Company, (ii) fraud, embezzlement, theft,
or comparable dishonest activity committed by you against the Company,
(iii) your conviction of or entering a plea of guilty or nolo contendere
to any crime constituting a felony or any misdemeanor involving fraud,
dishonesty or moral turpitude, (iv) your breach, neglect, refusal, or
failure to discharge your duties under this Agreement (other than due to
Disability) or any Company policy or your failure to comply with the lawful
directions of the President, CEO or the Board, in any such case that is not
cured within fifteen (15) days after you have received written notice thereof
from the President, CEO or the Board, or (v) a willful and knowing
material misrepresentation regarding the business or affairs of the Company to
the President, CEO or the Board; and (c) ”Disability” shall mean that for
a period of three (3) consecutive months or an aggregate of four
(4) months in any twelve (12) month period you are incapable of
substantially fulfilling the duties of your positions as set forth in
Section 1 because of physical, mental or emotional incapacity, injury,
sickness or disease to the extent consistent with the Americans with
Disabilities Act of 1990 and/or applicable state law.  With regard to the
definition of “Disability” in clause (c) above, any question as to the
existence or extent of the Disability upon which you and the Company cannot
agree shall be determined by a qualified, independent physician selected by the
Company.  The determination of any such physician shall be final and
conclusive for all purposes; provided, however, that you or your legal
representatives shall have the right to present to such physician such
information as to such Disability as you or they may deem appropriate,
including the opinion of your personal physician.

6.           Confidential Information. 
You acknowledge that information obtained by you while employed by the Company
or any affiliate thereof concerning the business or affairs of (i) the
Company, its affiliates and subsidiaries, including but not limited to trade
secrets, confidential knowledge, data or other proprietary information relating
to products, processes, know-how, designs, formulas, developmental or
experimental work, computer programs, databases, other original works of
authorship, customer lists, business plans, financial information or other
subject matter pertaining to any business of the Company or any of its clients,
consultants or licensees or (ii) any enterprise which is the subject of an
actual or potential transaction (“Potential Transaction”), considered,
evaluated, reviewed or otherwise, made known to Fox Paine & Company,
LLC, the Company, its affiliates or subsidiaries, or you (“Confidential
Information”) is the property of the Company. You shall not, without the prior
written consent of the Board, disclose to any person or use for your own
account any Confidential Information except (i) in the normal course of
performance of your duties hereunder, (ii) to the extent necessary to
comply with applicable laws (provided that you shall give the Company prompt
notice providing a reasonable time for the Company to seek a protective order
prior to any such disclosure), or (iii) to the extent that such
information becomes generally known to and available for use by the public
other than as a result of your acts or omissions to act.  Upon termination
of your employment or at the request of the President, CEO or the Board at any
time, you shall deliver to the President, CEO or the Board all documents
containing Confidential Information or relating to the business or affairs of
the Company, its affiliates and subsidiaries that you may then possess or have
under your control.

7.           Non-Solicitation.

a.          Non-Solicitation. 
As a means reasonably designed to protect the Company’s Confidential Information,
you agree that, for a period of twelve (12) months from the conclusion of the
Employment Period, you will not directly, indirectly or as an agent on behalf
of or in conjunction with any person, firm, partnership, corporation or other
entity (i) hire, solicit, encourage the resignation of or in any other
manner seek to engage or employ any person (other than your personal assistant)
who is then, or within the prior three (3) months had been, an employee of
the Company, whether or not for compensation and whether or not as an officer,
consultant, adviser, independent sales representative, independent contractor
or participant, or (ii) call upon, solicit, divert or take away or attempt
to solicit, divert or take away, any client, customer, business partner,
consultant, patron of the Company, or any other person or entity with whom the
Company has a current business relationship or with whom the Company develops
such a relationship during the Employment Period, and concerning whom you
acquired Confidential Information during the Employment Period.

 

b.         Scope
of Restriction.  If, at the time of enforcement of this
Section 7, a court shall hold that the duration, scope or area
restrictions stated herein are unreasonable under circumstances then existing,
the parties hereto agree that the maximum duration, scope or area reasonable
under such circumstances shall be substituted for the stated duration, scope or
area.

c.          Works
Made For Hire.  You agree that all intellectual property rights,
developments, designs, computer software, inventions, applications and
improvements, including but not limited to trade names, assumed names, service
names, service marks, trademarks, logos, patents, copyrights, licenses,
formulas, trade secrets and technology, whether in design, methods, processes,
formulae, machines or devices and all other applications (collectively, “Inventions”),
whether made, created, invented, devised, acquired, succeeded to (whether by
devise, estate, testamentary disposition or otherwise), or developed for the
Company by you during the Employment Period or prior to the date of this
Agreement, other than Inventions made, created, invented, devised or developed
by you (i) on your own personal time, (ii) without the use of the
Company’s equipment, supplies, facilities and resources and (iii) which
are not related to the sale, manufacture, distribution, marketing development
or provision of products, components, equipment, hardware, other technology or
services (of any sort) in the wireless communications industry (collectively, “Unrelated
Inventions”), are works made for hire and shall be the exclusive property of
the Company without separate compensation to you.  You will, at the
request and expense of the Company made at any time, execute and deliver to the
Company or its nominee such applications and instruments as may be desirable
and appropriate for obtaining for the Company or its nominee, patents,
copyrights, trademarks, know-how and other intellectual property protection of
the United States and all other countries for vesting in the Company or its
nominee, all of your claim, right, title and interest in said Inventions and
for maintaining, enforcing and funding the same, and to otherwise vest in or
evidence the Company’s or its nominee’s exclusive ownership of all of the
rights referred to herein. In the event that, for whatever reason, the results
of your past or future work for the Company should not be deemed to be works
made for hire, you agree to assign, and you hereby do assign, to the Company or
its nominee all claim, right, title and interest, in any country, to each and
every of the inventions that is the result of work done in the course of your
past or future employment by the Company, or that you create or develop, or
that you acquire by whatever means that was created or developed, in whole or
in part by using the Company’s equipment, supplies, resources or
facilities.  Each and every such assignment is and shall be in
consideration of this Agreement with the Company, and no further consideration
therefore is or shall be provided to you by the Company.  You hereby waive
enforcement of any moral or legal rights which might limit the Company’s rights
to exploit any of the foregoing materials in any manner.

d.         Equitable
Relief.  You acknowledge that the provisions contained in Sections 6
and 7 of this Agreement are reasonable and necessary to protect the legitimate
interests of the Company, that any breach or threatened breach of such
provisions will result in irreparable injury to the Company and that the remedy
at law for such breach or threatened breach would be inadequate. 
Accordingly, in the event of the breach by you of any of the provisions of
Sections 6 and 7 of this Agreement, the Company, in addition and as a
supplement to such other rights and remedies as may exist in its favor, may
apply to any court of law or equity having jurisdiction to enforce this
Agreement, and/or may apply for and have the right to injunctive relief against
any act that would violate any of the provisions of this Agreement (without
being required to post a bond).  You further agree that injunctive relief
may be sought and obtained for any breach or threatened breach of
Section 6 or Section 7 without a showing of irreparable injury, in
order to prevent any such breach or threatened breach.  Such right to
obtain injunctive relief may be exercised, at the option of the Company,
concurrently with, prior to, after, or in lieu of, the exercise of any other
rights or remedies that the Company may have as a result of any such breach or
threatened breach.

8.           Survival.  Any
termination of your employment or of this Agreement shall have no effect on the
continuing operation of Sections 5, 6, or 7 for the periods specified therein.

9.           Waiver of Claims.  You
agree as a condition to your receipt of any Termination Benefit or Severance
Benefit pursuant to paragraph 5 hereof, you will agree, as of the date of such
termination, to waive, discharge and release any and all claims, demands and
causes of action, whether known or unknown, against the Company, its affiliates
and subsidiaries, and their respective current and former directors, officers,

 

employers, attorneys and
agents arising out of, connected with or incidental to your employment or other
dealings with the Company, its affiliates or subsidiaries, which you or anyone
acting on your behalf might otherwise have had or asserted and any claim to any
compensation or benefits from your employment with the Company or its
affiliates (other than employee benefits to be provided pursuant to the terms
of paragraph 5 hereof or of any employee benefit plans as set forth in
paragraph 4 hereof). Notwithstanding anything contained herein to the contrary,
no Termination Benefit or Severance Benefit payments shall be made under this
Agreement or otherwise until such time as you have delivered an executed
release of claims and any applicable revocation periods under state or federal
law have expired.  The Company agrees, as further consideration for your
waiver, to concurrently execute a waiver of unknown clams against you on terms
and conditions substantially identical to the waiver provided by you (it being
understood that the Company may specifically reserve claims identified in
writing by the Company at the time that such waiver is provided).

10.         Governing Law.  This
Agreement and all questions concerning the construction, validity and
interpretation of this Agreement shall be governed by and determined in
accordance with the internal law, and not the law of conflicts, of the State of
California.

11.         Notices.  All demands,
notices and communications hereunder shall be in writing and shall be deemed to
have been duly given, if mailed, by registered or certified mail, return
receipt requested, or, if by other means, when received by the other party at
the address set forth herein, or such other address as may hereafter be
furnished to the other party by like notice. Notice or communication hereunder
shall be deemed to have been received on the date delivered to or received at
the premises of the addressee if delivered other than by mail, and in the case
of mail, three days after the depositing of the same in the United States mail
as above stated (or, in the case of registered or certified mail, by the date
noted on the return receipt).  Notices shall be addressed as follows:

	
  If to the Executive:

  	
   

  	
   

  
	
   

  	
   

  	
  Mr. R. Gregory Miller

  
	
   

  	
   

  	
   

  
	
  If to the
  Company:

  	
   

  	
  WJ Communications, Inc.

  
	
   

  	
   

  	
  401 River Oaks Parkway

  
	
   

  	
   

  	
  San Jose, CA 95134

  
	
   

  	
   

  	
  Attention: Chief Executive Officer

  

 

Either party may
change the address to which said notices are to be sent or given by written
notice of such change to the other parties in the manner set forth above.

12.         Separability Clause.  Any
part, provision, representation or warranty of this Agreement which is prohibited
or which is held to be void or unenforceable shall be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof.

13.         Successors and Assigns;
Assignment of Agreement.  This Agreement shall bind and inure to the
benefit of and be enforceable by the parties hereto and the respective
successors and assigns of the parties hereto.  As used in this Agreement, “Company”
shall mean the Company as hereinbefore defined and any successors to its businesses
and/or assets as aforesaid which assume and agree to perform this Agreement by
operation of law, or otherwise.  This Agreement is personal to you and
without the prior written consent of the Company shall not be assignable by you
otherwise than by will or the laws of descent and distribution

14.         Waiver.  The failure of any
party to insist upon strict performance of a covenant hereunder or of any
obligation hereunder, irrespective of the length of time for which such failure
continues, shall not be a waiver of such party’s right to demand strict
compliance in the future. No consent or waiver, express or implied, to or of
any breach or default in the performance of any obligation hereunder, shall
constitute a consent or waiver to or of any other breach or default in the
performance of the same or any other obligation hereunder.  No term or
provision of this Agreement may be waived unless such waiver is in writing and
signed by the party against whom such waiver is sought to be enforced.

 

15.         Entire Agreement.  This
Agreement constitute the entire Agreement between the parties hereto with
respect to the subject matter contemplated herein and supersedes all prior
agreements, whether written or oral, between the parties, relating to the
subject matter hereof.  This Agreement shall not be modified except in
writing executed by all parties hereto.

16.         Captions.  Titles or
captions of Sections and paragraphs contained in this Agreement are inserted
only as a matter of convenience and for reference, and in no way define, limit,
extend or describe the scope of this Agreement or the intent of any provision
hereof.

17.         Counterparts.  For the
purpose of facilitating proving this Agreement, and for other purposes, this
Agreement may be executed simultaneously in any number of counterparts. 
Each counterpart shall be deemed to be an original, and all such counterparts
shall constitute one and the same instrument.

18.         Arbitration.  Any dispute,
controversy or claim arising under or in connection with this Agreement, or the
alleged breach hereof, shall be settled exclusively by private and confidential
arbitration conducted by the American Arbitration Association in accordance
with the Rules of the Commercial Panel of the American Arbitration
Association then in effect (and not the Employment Dispute Resolution
Rules).  Judgment upon the award rendered by the arbitrator(s) may be
entered in any court having jurisdiction thereof.  Any arbitration held
hereunder shall take place in Palo Alto, California.  In addition, any
dispute, controversy or claim arising under or in connection with your rights
or obligations pursuant to any stock option or other equity arrangements
between you and the Company, shall be settled exclusively as provided for by
the terms of the applicable Company plans.

19.         Legal Fees.  In the event
of any dispute hereunder or the enforcement of any right hereunder that
requires recourse to arbitration or litigation, the prevailing party therein
shall be entitled, in addition to other remedies, to recover legal fees and
costs from the non-prevailing party, as determined by the arbitrator(s) or the
court.

20.         Reimbursement of Legal Fees. The
Company will reimburse you up to $3,000 for reasonable legal advice expenses
incurred by you in connection with the negotiation, preparation and execution
of this Agreement.

21.         Certain Conditions to Employment. 
Notwithstanding anything herein to the contrary, your employment and the
Company’s obligations hereunder are conditioned upon your successful passage of
a drug and alcohol screening test, the Company’s verification of your past
employment and educational experience and the Company’s satisfaction in its
sole discretion as to the results of any criminal background investigation or
reference inquiry performed by it.

Please execute a
copy of this letter Agreement in the space below and return it to the
undersigned at the address set forth above to confirm your understanding and
acceptance of the agreements contained herein.

	
  

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WJ COMMUNICATIONS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By :

  	
   

  	
  /s/ BRUCE W.
  DIAMOND

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Bruce W. Diamond

  	
   

  
	
   

  	
   

  	
  Title:

  	
  President and CEO

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Accepted and
  agreed to:

  	
   

  	
   

  	
  /s/ R. GREGORY
  MILLER

  	
   

  
	
   

  	
   

  	
  Name: Mr. R. Gregory Miller

  

 

 

Annex
1

REPRESENTATIONS
AND WARRANTIES

(In
the event that you receive WJ Communications stock)

In connection with
the purchase and sale of WJ Communications Stock hereunder, you represent and
warrant to the Company that:

(a)                                       The
WJ Communications Stock to be acquired by you pursuant to this Agreement shall
be acquired for your own account and not with a view to, or intention of,
distribution thereof in violation of the Securities Act, or any applicable
state securities laws, and the WJ Communications Stock shall not be disposed of
in contravention of the Securities Act or any applicable state securities laws.

(b)                                      You
are an officer of the Company, are sophisticated in financial matters and are
able to evaluate the risks and benefits of the investment in the WJ
Communications Stock.  You are an “accredited investor”, as defined in
Regulation D promulgated under the Securities Act.

(c)                                       To
the extent that any of the securities being purchased by you are not subject to
an effective registration statement, you are able to bear the economic risk of
your investment in such WJ Communications Stock for an indefinite period of
time and you understand that such securities cannot be sold unless subsequently
registered under the Securities Act or an exemption from such registration is
available.

(d)                                      You
have had an opportunity to ask questions and receive answers concerning the
terms and conditions of the offering of WJ Communications Stock and have had
full access to such other information concerning the Company as you have
requested.  You have reviewed, or have had an opportunity to review, a
copy of the Stockholders’ Agreement.

(e)                                       This
Agreement constitutes a legal, valid and binding obligation of yours,
enforceable in accordance with its terms, and the execution, delivery and
performance of this Agreement by you does not and shall not conflict with,
violate or cause a breach of any agreement, contract or instrument to which you
are a party or any judgment, order or decree to which you are subject.

(f)                                         You
are not a party to or bound by any employment agreement, noncompete agreement
or confidentiality agreement with any person or entity other than the Company.

(g)                                      You
have consulted with independent legal counsel regarding your rights and
obligations under this Agreement and you fully understand the terms and
conditions contained herein.  You have obtained advice from persons other
than the Company and its counsel regarding the tax effects of the transaction
contemplated hereby.Exhibit
10.1

FIRST
AMENDMENT TO

WJ COMMUNICATIONS, INC.

AMENDED AND RESTATED

2000 NON-EMPLOYEE DIRECTOR

STOCK COMPENSATION PLAN

This First
Amendment to the WJ Communications, Inc. (the “Company”) Amended and Restated
2000 Non-Employee Director Stock Compensation Plan (the “Non-Employee Director
Plan”) is made pursuant to Section 12 of the Non-Employee Director Plan.

Recitals:

WHEREAS, 
the 2000 Non-Employee Director Stock Compensation Plan was first adopted by the
Company and approved by the stockholders in August 2000;

WHEREAS,
the 2000 Non-Employee Director Stock Compensation Plan was amended and restated
by the Company in 2003 to (i) increase the available shares authorized for
issuance from 570,000 to 800,000 and (ii) provide for restructured director compensation
arrangements;

WHEREAS,
the Non-Employee Director Plan was submitted to and approved by the
stockholders on July 15, 2003;

WHEREAS,
in 2006 in connection with the Company’s annual meeting, the Board of Directors
determined to amend the Non-Employee Director Plan to increase the number of
shares available from 800,000 to 1,000,000 (the “First Amendment”); and

WHEREAS,
the First Amendment was approved by the Company stockholders at the Company’s
annual meeting on July 20, 2006.

NOW
THEREFORE:

Section 5 of the
Non-Employee Director Plan is amended to delete “800,000” and insert “1,000,000”
in its place to reflect an increase in the shares reserved for use under the
Non-Employee Director Plan.

All other terms
and conditions of the Non-Employee Director Plan remain in full force and
effect.

The First
Amendment to the Non-Employee Director Plan was approved by the Board of
Directors on June 1, 2006 and submitted to, and approved by, the Company’s
stockholders in connection with the Company’s July 20, 2006 annual meeting.

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