Supertex Profit-Sharing Bonus Incentive Plan
Supertex, Inc. (“the Company”) maintains a Profit-Sharing Bonus Incentive Plan (the “Plan”) as a part of
its total compensation package for employees. The Plan is a discretionary incentive plan to encourage employees
to perform to the best of their ability and to continue their employment with the Company.
II. Plan Accrual
The Plan is funded by an accrual each fiscal half-year of up to 10% of operating profit before taxes and
other adjustments. To the extent the amount accrued in any fiscal half-year is not distributed, it is carried over
for potential distribution in the future. The Management determines the amount of the accrual each fiscal half-year
and whether unusual events or transactions, including asset sales or write-offs, will be included within operating
III. Plan Components
Funds accrued in the Plan are allocated into three parts: (1) Company matching contributions to the 401(k)
plan (as of 2010 up to approximately $1,000 per employee); (2) a sum to enable the Company to sponsor
functions and activities intended to boost employee morale as well as to cover other expenses benefitting
employees; and (3) bonus incentive distributions to employees for their performance in the relevant half-year and
their continued loyalty to the Company; with any unallocated balance of the accrual carried over for potential use
in the future along with any unspent allocated amount.
A. 401(k) Match
The 401(k) match is typically made at the end of each fiscal quarter in an amount determined and
allocated among Company 401(k) plan participants as provided in the Company’s 401(k) plan.
B. Employee Morale Sum
The sum for employee morale is typically a relatively small component of the Plan and is either distributed
to employees or spent by the Company on behalf of the employees. This sum may be allocated among various
departments or subgroups who have made su