SYPRIS SOLUTIONS, INC.
INCENTIVE BONUS PLAN
JANURY 1, 2007 – DECEMBER 31, 2007
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1.
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Establishment of
Plan .
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Sypris
Solutions, Inc., a Delaware corporation (the
“Company”), established this corporate bonus plan
effective as of January 1, 2007 (the “Plan”), to
provide a financial incentive for employees of the Company and
its subsidiaries to advance the growth and prosperity of the
Company.
2.
Eligibility
.
Employees
of the Company and its subsidiaries 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.
Participant’s
Bonus Target .
The
bonus target for each participant will be established and
approved by the Compensation Committee. Each
participant will be provided with a copy of this Plan, which
will include an exhibit that lists the participant’s
full name, salary, bonus potential based upon the current
operating budget, and his or her objectives for the current
year.
4.
Bonus
Pool .
4.1
PBT
Contribution . Bonus dollars will begin to
accumulate once the consolidated financial result of the
company achieves eighty percent (80%) of the PBT target in its
annual operating plan. For each percentage point of
achievement greater than eighty percent (80%) of the PBT
target in its annual operating plan, the bonus pool will be
increased in accordance with the attached
schedule.
4.2
FCF
Contribution . Additional bonus dollars will
begin to accumulate once the consolidated financial result of
the company achieves eighty percent (80%) of the FCF target in
its annual operating plan. For each percentage
point of achievement greater than eighty (80%) of the FCF
target in its annual operating plan, the bonus pool will be
increased in accordance with the attached
schedule.
5.
Bonus
Award .
Each
qualified participant will be eligible for a Bonus Award that
is equal to the bonus target, subject to the provisions of
Sections 8.1, 8.2, 8.3 and the following:
5.1
Management
Objectives . Each participant will have
Management Objectives for the Plan year, each of which will be
specific with regard to (i) the expected outcome, (ii) the
date or dates by which the objective must be achieved and a
weighting, the total of which for all objectives will be equal
to one hundred percent (100%). The chief executive
officer of the Company will have the responsibility to review
and
