CATALYST SEMICONDUCTOR INC
EX-10.91
<DOCUMENT>
<TYPE>EX-10.91
<SEQUENCE>2
<FILENAME>a07-22010_1ex10d91.htm
<DESCRIPTION>EX-10.91
<TEXT>
<html>

<head>






</head>

<body lang="EN-US">

<div>

<p align="right" style="margin:0pt 0pt .0001pt;text-align:right;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.91</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FY 2008 Bonus Plan Proposal</font></u></b></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company&#146;s (non-executive)
compensation philosophy is to pay a combination of base salary and bonus that
in aggregate is competitive to market rates, but which gives the Company
flexibility during industry down cycles to retain key employees while managing
costs.&#160; The non-executive bonuses are in
the form of profit sharing and spot bonuses determined by the CEO.&#160;&#160; The Company&#146;s executive compensation is to
pay a combination of base salary and bonuses that are in aggregate competitive
to market rates, and to reward executives for corporate financial performance
and the achievement of individual personal goals important to implementing the
corporate operating or strategic plans.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Outline of 2008 Bonus Plan:</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160; Non executive bonuses in the form of profit
sharing and spot bonuses for extraordinary contributions or efforts.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160; The non executive spot bonus pool is at the
discretion of the CEO (based on recommendations from his executives) and
consists of a fixed portion ($100K/quarter).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160; The total variable bonus pool depends upon
Company performance</font></p>

<p style="margin:0pt 0pt .0001pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a. Size of bonus pool starts
growing at a minimum threshold (e.g., 2.5% ROE) and reaches the target level at
a target threshold (e.g., 5% ROE)</font></p>

<p style="margin:0pt 0pt 12.0pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b. If the Company performance exceeds the target
threshold, then the executive bonus pool will continue to grow, at a slower
rate (e.g., bonus pool increases 1/5 for every 1% increase in ROE, up to&#160; a maximum of 2X target at 10% ROE).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160; The total bonus pool consists of the executive
bonus pool, the non executive spot bonus pool, and profit sharing.&#160; For example on an annual basis:</font></p>

<p style="margin:0pt 0pt .0001pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a)&#160; Executive Bonus Pool:&#160; Currently set as a % base salary and totals
to a target of about $700K / yr at 5% ROE.&#160;
Grows from zero at 2.5% ROE to target at 5% ROE.&#160; Above 5% ROE grows at half that rate to 2x
target at 10% ROE.</font></p>

<p style="margin:0pt 0pt .0001pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b)&#160; Non executive spot Bonus Pool:&#160; $100K&#160;
per quarter.&#160; At the discretion of
the CEO the un-awarded portion of the non-executive spot bonus pool may be
carried forward from quarter to quarter in a fiscal year, or left as net
profit.</font></p>

<p style="margin:0pt 0pt 12.0pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c)&#160; Profit
Sharing:&#160; Growing from zero at 2.5% ROE
to a target and cap of 10% non executive salary base at 5% ROE (Approximately
$600K at 5% ROE)</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160; After tax profit (PAT) will be used to
calculate the bonus pool and will be net of the CEO Non Executive Spot Bonus
Pool, the Profit Sharing Bonus Pool above, and the Executive Bonus Pool.&#160; The ROE (= PAT / $58.2M) for each quarter
will be year-to-date.</font></p>

<p style="margin:0pt 0pt .0001pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a)&#160; At 5% ROE, the PAT will be about 0.05x$58.2M
= $2.91M.</font></p>

<p style="margin:0pt 0pt .0001pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b)&#160; At 5% ROE the target executive bonus pool is
approx. $0.7M,</font></p>

<p style="margin:0pt 0pt .0001pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c)&#160; At 5% ROE, the total non executive bonus pool
is approx. $1M ($400K + $600K)</font></p>

<p style="margin:0pt 0pt 12.0pt 63.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(This does not have to be reported unless PWC believes
it to be a material liability.)</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160; Bonuses to each executive are to be paid
based on performance against quantifiable and measurable personal goals with
specific target completion dates during the quarter</font></p>

<p style="margin:0pt 0pt .0001pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a) Prior to each quarterly
Compensation Committee Meeting, the CEO will submit a report to the Compensation
Committee for each executive:&#160; measurable
goals that quarter; accomplishments against each goal; score for each goal and
recommended bonus.&#160; The Committee will
review the</font></p>

<br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\105460\07-22010-1\task2352020\22010-1-ka-01.htm',USER='105460',CD='Aug 15 19:52 2007' -->
<br clear="all" style="page-break-before:always;">


<p style="margin:0pt 0pt .0001pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">proposal and make its
recommendation to the entire board which will review the proposal and make the
final decision regarding the bonus for each executive.</font></p>

<p style="margin:0pt 0pt .0001pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b)&#160; Within 3 weeks after the beginning of each
quarter, The CEO will set quarterly goals for each executive and submit them to
the Compensation Committee, and the Compensation Committee will agree with the
CEO on goals for the CEO.&#160; The goals for
the CEO and CFO shall be reviewed by the Compensation Committee and then entire
Board at the quarterly meeting.&#160;
Typically each executive will be measured against 3-5 key goals per
quarter, but it could be as few as 1 or as many as 10.&#160; Each goal will be absolutely measurable with
a specific completion date within the quarter.&#160;
If the goals for an executive are not set and agreed to within one week
after the quarterly board meeting, the Compensation Committee may vote to have
that executive disqualified from participating in all or part of the bonus pool
for that quarter.</font></p>

<p style="margin:0pt 0pt 12.0pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c)&#160; Prior to the
quarterly Compensation Committee meeting the CEO will recommend to the
Committee the distribution of up to 100% of the Executive Bonus Pool, for the
quarter most recently completed, that is determined by ROE (item 5.) and
Additions (item 6.)&#160; The CEO may
recommend to the Compensation Committee that unused portions of the executive
Bonus Pool remain as net profits, remain in the executive bonus pool for future
quarters in that fiscal year, or be transferred to the non-executive bonus
pool.&#160; The Committee will make a final
determination for the disposition of the unused portion of the executive bonus
pool.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160; Executive bonuses are to be earned quarterly
but paid out in a non linear profile used in the 2005 bonus plan, in the ratios
of&#160; (12, 15, 23, 50).&#160; Actual
Quarterly bonuses payouts are based on cumulative achievements and year-to-date
ROE.</font></p>

<p style="margin:0pt 0pt .0001pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a)&#160; After the end of the first quarter, the YTD
annualized ROE and to the YTD annualized executive bonus pool are
calculated.&#160; Up to 12% of the YTD
annualized executive bonus pool may be paid out according to the achievement of
individual personal goals.</font></p>

<p style="margin:0pt 0pt .0001pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b)&#160; After the end of the second quarter, the
annualized ROE and the YTD annualized executive bonus pool are calculated.&#160; Up to 27% of the YTD annualized executive
bonus pool less the amount paid out for quarter 1, may be paid out according to
the achievement of individual personal goals.</font></p>

<p style="margin:0pt 0pt .0001pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c)&#160; After the end of the third quarter, the YTD
annualized ROE and the YTD annualized executive bonus pool are calculated.&#160; Up to 50% of the executive bonus pool, less
the amounts paid out for quarter 1 and quarter 2, may be paid out according to
the achievement of individual personal goals</font></p>

<p style="margin:0pt 0pt .0001pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d)&#160; After the end of the fourth quarter, the YTD
annualized ROE and the YTD annualized executive bonus pool are calculated.&#160; Up to 100% of the executive bonus pool, less
the amounts paid out for quarter 1, quarter 2 and quarter 3, may be paid out
according to the achievement of individual personal goals</font></p>

<p style="margin:0pt 0pt .0001pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e)&#160; If after any quarter the calculated executive
bonus pool less the amounts paid out in previous quarters is negative, then no
executive bonuses may be paid under this plan.</font></p>

<p style="margin:0pt 0pt 12.0pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">f)&#160;&#160; If at the end of the fiscal year the net
income and/or revenue meets or exceeds the plan net income and revenue, then
the executive bonus pool may be increased according to section 6.</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8. Guidelines for
distribution of the personal goals portion of the executive bonus pool:</font></p>

<p style="margin:0pt 0pt .0001pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a)&#160; The goals
accomplishment percentages are to be between 0 and 100%.</font></p>

<p style="margin:0pt 0pt .0001pt 34.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b)&#160; The following guidelines allow the CEO
latitude in utilizing the un-awarded portion of the executive bonus pool, for
growth of shareholder value:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Additional
bonus to executives who demonstrated extraordinary performance (this
accommodates those situations where an executive&#146;s goal is unachievable by
forces outside his control, or where the executive accomplish something very
important to the Company (e.g., a key development that is important long term),
that isn&#146;t in their quarterly goals (which tend to be more short-term focused
on ROE).</p>

<br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\105460\07-22010-1\task2352020\22010-1-ka-01.htm',USER='105460',CD='Aug 15 19:52 2007' -->
<br clear="all" style="page-break-before:always;">


<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt .0001pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Ability
to move some or all of the unused executive pool to the non executive pool.
&nbsp;This could be especially useful when the Company is in a down cycle where
the non executive bonus pool is shrinking, and the CEO is trying to build and
incentive reservoir for key no-executive performers.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-18.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Allowing for some
or all of the un-awarded portion of the executive bonus pool and the non
executive spot bonus pool to be carried over from quarter to quarter within a
fiscal year, to allow further flexibility for incentives</p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Below is a graphic sample of
how the quarterly bonus pool (executive bonus pool and the profit sharing pool,
to a cap of 10%)&#160;&#160; will be
calculated.&#160; It grows linearly from 2.5%
to 5% ROE, and then the executive bonus pool continues to grow linearly at half
that slope to 10% ROE, with the executive bonus pool cap being 2X the target
bonus pool cap at 5% ROE.</font></p>

<br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\105460\07-22010-1\task2352020\22010-1-ka-01.htm',USER='105460',CD='Aug 15 19:52 2007' -->
<br clear="all" style="page-break-before:always;">


<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="5" face="Times New Roman" style="font-size:16.0pt;font-weight:bold;">Total Bonus Pool vs. ROE</font></b></p>

<p style="margin:0pt 0pt .0001pt 72.0pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Total Bonus Pool = Spot Bonus
Pool (fixed at $100K/qtr) + Executive Bonus Pool (variable from zero at 2.5%
ROE to target at 5% ROE to 2X target at 10% ROE) + Profit Sharing (variable
from zero at 2.5% ROE to target and cap at 5% ROE)</font></b></p>

<p style="margin:0pt 0pt .0001pt;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p style="margin:0pt 0pt .0001pt 18.0pt;"><b><font size="3" face="Times New Roman" style="font-weight:bold;"><img width="587" height="400" src="g220101ka01i001.jpg"></font></b></p>

</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\105460\07-22010-1\task2352020\22010-1-ka-01.htm',USER='105460',CD='Aug 15 19:52 2007' -->


</body>

</html>
</TEXT>
</DOCUMENT>
