Ceradyne – 2006 Cash Bonus Plan for Executive Officers of Ceradyne, Inc. (March 9th, 2006)
Executive Officers of Ceradyne, Inc. are entitled to receive a cash bonus for services rendered during 2006 based on a percentage of pre-tax profits as set forth in the following table, except as otherwise noted. Bonuses are calculated on a calendar quarter basis and are paid following completion of the quarter provided that the executive is still employed by the Company as of the date of payment. If there is a pre-tax loss in one quarter, that loss will be subtracted from the pre-tax profit in the subsequent quarter when calculating the bonus earned for the subsequent quarter. In no event will the bonus payable to any executive officer exceed 150% of such officers annual base salary.