Cherokee International Corporation 2005 Cash Incentive Compensation Plan
Cherokee International Corporation established a 2005 cash incentive compensation plan for executive officers and selected employees. Under this plan, bonuses are tied to achieving specific sales and operating margin targets during the 2005 fiscal year. The amount of each bonus depends on the individual's role and the targets met, with top executives eligible for bonuses up to 129.5% of their base salary. Performance is assessed at the end of 2005, and any earned bonuses will be paid in early 2006.
Exhibit 10.1
2005 Cash Incentive Compensation Plan
On March 14, 2005, the Compensation Committee of the Board of Directors of Cherokee International Corporation (“Cherokee”) approved the 2005 cash incentive compensation program for executive officers and certain other employees. The program ties bonus compensation payable for 2005 to the achievement of certain sales and operating margin targets. Performance will be calculated at the end of fiscal 2005, and any bonus payments will be made early in 2006.
Depending upon the particular sales and operating margin targets that are achieved, Jeffrey M. Frank, President and Chief Executive Officer, may earn a bonus of up to 129.5% of his base salary. Bud Patel, Executive Vice President, Clark Hickock, Executive Vice President, Global Operations, and Van Holland, Chief Financial Officer, may earn bonuses of up to 111% of their base salaries. Alex Patel, Vice President of Engineering, and Denmis Pouliot, Vice President, Global Accounts, may earn bonuses of up to 60.5% and 53%, respectively, of their base salaries. Certain other managers and key employees of Cherokee have been selected by the Compensation Committee to participate in the incentive program. Such other employees may earn bonuses of up to between 23.5% and 60.5% of their base salaries.
