SBS Technologies FY2006 Executive Incentive Plan

SBS Technologies
FY2006 Executive Incentive Plan

I. Purpose:

The purpose of the FY2006 Executive Incentive Plan (Plan) is to provide designated executives of SBS Technologies with an incentive to achieve goals as set forth under this Plan for the fiscal year ending June 30, 2006 (Plan Year).

II. Philosophy:

The incentive bonus under this Plan for designated executives is based on achievement of thresholds established by the Board of Directors with respect to the performance of SBS Technologies, Inc. (Company), thresholds established by management for Company divisions, and individual performance goals established by management. This Plan's objective is to encourage individual performance by making available the opportunity for designated executives to earn attractive total compensation.

III. Performance Goals: see Figure A

1. Revenue (annual):

Annual Revenue thresholds for the Company as established by the Board of Directors. This Plan rewards achievement (Threshold I) and a maximum overachievement (Threshold II).

2. EBITDA (annual)

As an approximate measure of the Company's operating cash flow, thresholds for earnings before interest expense, income tax, depreciation and amortization (EBITDA) as established for the Company by the Board of Directors.

3. Individual Goals (annual)

Jointly agreed to between each participant and his or her supervisor, these goals reflect operational, task and business issues unique to each participant. Annual Individual Goals will be established and agreed to in writing (signed and dated) for each participant by September 1, 2005. The Management Development and Compensation Committee of the Board of Directors (MDCC) shall establish the individual goals for the Chief Executive Officer. This portion of this Plan is funded and awarded separately from the portion awarded based on Revenue and EBITDA.

4. Division Goals

Financial goals for separate divisions of the Company as established by the Chief Executive Officer.

Division and individual goals shall be established and measured by the CEO, or as delegated by the CEO.

Figure A: Metrics

Performance Goals for FY2006	Revenue	EBITDA	Division Goals	Individual Goals
Threshold I