CHEROKEE INTERNATIONAL CORP
EX-10.1
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
10.1</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2005
Cash Incentive Compensation Plan</font></b></p>

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<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On March 14, 2005, the
Compensation Committee of the Board of Directors of Cherokee International
Corporation (&#147;Cherokee&#148;) approved the 2005 cash incentive compensation program
for executive officers and certain other employees. The program ties bonus
compensation payable for 2005 to the achievement of certain sales and operating
margin targets. Performance will be calculated at the end of fiscal 2005, and
any bonus payments will be made early in 2006.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Depending upon the
particular sales and operating margin targets that are achieved, Jeffrey M.
Frank, President and Chief Executive Officer, may earn a bonus of up to 129.5%
of his base salary. Bud Patel, Executive Vice President, Clark Hickock,
Executive Vice President, Global Operations, and Van Holland, Chief Financial
Officer, may earn bonuses of up to 111% of their base salaries. Alex Patel,
Vice President of Engineering, and Denmis Pouliot, Vice President, Global
Accounts, may earn bonuses of up to 60.5% and 53%, respectively, of their base
salaries. Certain other managers and key employees of Cherokee have been
selected by the Compensation Committee to participate in the incentive program.
Such other employees may earn bonuses of up to between 23.5% and 60.5% of their
base salaries.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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