Valpey-Fisher Corporation 2004 Key Employee Bonus Plan

Summary

Valpey-Fisher Corporation established this bonus plan for eight key employees, including executives and directors, for the 2004 fiscal year. To qualify, participants must be full-time employees for the entire year. Bonuses are based on meeting company-wide financial targets and individual objectives, with the total bonus pool starting at $150,000 and potentially reaching $600,000 depending on operating profit. Individual payouts are determined by role and performance, with the CEO eligible for up to 100% of salary. Bonuses may be paid in cash or stock at the discretion of company leadership.

EX-10.6 4 a4840844ex106.txt EXHIBIT 10.6 Exhibit 10.6 Valpey-Fisher Corporation Key Employee Bonus Plan For fiscal year 2004 Purpose of Plan - --------------- To incentive those employees who have a major impact on the profitability of the company. Eligibility - ----------- Must be fulltime employee and be in continued employment of the Company for the entire fiscal year. 2004 Participants - For 2004 the plan participants will include a total of 8 people, 4 more than 2003. The additional people will be with the company for the entire year or have responsibility and authority to significantly impact the plan. 1. Michael Ferrantino Sr. CEO 2. Mike Kroll CFO 3. Roman Boroditsky CTO 4. Michael Ferrantino Jr. VP Sales & Marketing 5. Dan Nehring VP Engineering 6. Joe Pavao VP Operations 7. Sam Gotlib Dir. Manufacturing 8. Robert Dandaraw Dir. New Business Development The 2004 pool is based on meeting the 2004 budget for new orders, sales and the operating profit (loss) amounts. Each participant will have up to four individual objectives based on their particular area of responsibilities. The individual objectives will make up 50% of the individual bonus. The CEO will decide the weights of the individual objective as part of the total payout. In the case of the CEO the compensation committee will decide. The pool will start at the same payout of 2003 or $150,000 upon achieving the 2004 budgeted amounts. The pool will increase based on the levels of operating profit (loss) above the budget as detailed in Schedule 1. The maximum payout will be $600,000. The distribution of the bonus and % of individual participation will be based upon the following potential. CEO up to 100% of salary VP up to 50% of salary Dir. up to 30 % of salary Payout will either be in stock or cash and will be at the sole discretion of the CEO and BOD. Valpey-Fisher Corporation Key Employee Bonus Plan For fiscal year 2004 Schedule 1 The pool will increase by the following table: Operating Profit/(Loss) Bonus Pool ------------- ---------- Omitted in filed document $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $600,000 We will scale all numbers in between.