IEH Corporation (QX)【IEHC】株式ニュース

IEHC.. $4.15.. Latest Filing..

14 TYPE OF REPORTING PERSON

LP

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The following constitutes the Schedule 13D filed by the undersigned
(the "Schedule 13D").

ITEM 1 SECURITY AND ISSUER

Title of Class of Securities

Common Shares, par value $.01 per share

(the "Shares")

Name and Address of Issuer
IEH CORPORATION

(the "Company"or the "Issuer")
140 58th Street, Suite 8E, Brooklyn, New York 11220

ITEM 2 IDENTITY AND BACKGROUND

(a)This statement is filed by:
(i)Hummingbird Value Fund, L.P., a Delaware limited partnership
("Hummingbird Value"), with respect to the Shares directly and
beneficially owned by it;

(ii)Tarsier Nanocap Value Fund, L.P., a Delaware limited partnership
("Tarsier"), with respect to the Shares directly and beneficially owned by it;

(iii)Hummingbird Management, LLC, a Delaware limited liability company
("Hummingbird Management"), who serves as the investment manager of each of
Hummingbird Value and Tarsier;

(iv)Hummingbird Capital, LLC, a Delaware limited liability company
("Hummingbird Capital"), who serves a
s the general partner of each of
Hummingbird Value and Tarsier; and
(v)Paul D. Sonkin ("Mr. Sonkin"), who serves as the managing
member of each of Hummingbird Management and Hummingbird Capital and
as the investment manager to certain managed accounts (the "Managed Accounts");
Each of the foregoing is referred to as a "Reporting Person" and
collectively as the "Reporting Persons." Each of the Reporting
Persons is party to that certain Joint Filing Agreement, as further
described in Item 6. Accordingly, the Reporting Persons are hereby filing
a joint Schedule 13D.
(b)The address of the principal office of each of the Reporting
Persons is 145 East 57th Street, 8th Floor, New York, New York 10022.
(c)The principal business of each of Hummingbird Value and
Tarsier is serving as a private investment fund. The principal
business of Hummingbird Management is serving as the investment
manager of each of Hummingbird Value and Tarsier. The principal
business of Hummingbird Capital is serving as the general partner of each
of Hummingbird Value and Tarsier. The principal occupation of Mr. Sonkin is
serving as the managing member of each of Hummingbird
Management and Hummingbird
Capital and as the investment manager to the Managed Accounts.
(d)No Reporting Person has, during the last five years,
been convicted in a criminal proceeding (excluding traffic violations
or similar misdemeanors).
(e)No Reporting Person has, during the last five years,
been party to a civil proceeding of a judicial or administrative
body of competent jurisdiction and as a result of such proceeding was or is
subject to a judgment, decree or final order enjoining future violations of,
or prohibiting or mandating activities subject to, federal or state securities
laws or finding any violation with respect to such laws.
(f)Mr. Sonkin is a citizen of the United States of America.

ITEM 3 SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
The Shares purchased by Hummingbird Value and Tarsier were purchased with
working capital (which may, at any given time, include margin loans made
by brokerage firms in the ordinary course of business) in open market
purchases, except as otherwise noted, as set forth in Schedule A,
which is incorporated by reference herein. The aggregate purchase
cost of the 231,589 Shares beneficially owned in the aggregate by
Hummingbird Value and Tarsier is approximately $77,582,
excluding brokerage commissions.

As of April 21, 2010, Mr. Sonkin has caused the Managed Accounts to
invest approximately $52,197 in the Shares of the Issuer using
working capital.

ITEM 4 PURPOSE OF TRANSACTION

The Reporting Persons purchased the Shares based on their belief
that the Shares, when purchased, were undervalued and represented an
attractive investment opportunity. Depending upon overall market
conditions, other investment opportunities available to the Reporting
Persons, and the availability of Shares at prices that would make
the purchase of additional Shares desirable, the Reporting Persons
may endeavor to increase their respective positions in the Issuer
through, among other things, the purchase of Shares on the open
market or in private transactions or otherwise, on such terms and
at such times as the Reporting Persons may deem advisable.
No Reporting Person has any present plan or proposal which
would relate to or result in any of the matters set forth in
subparagraphs (a) - (j) of Item 4 of Schedule 13D except as
set forth herein or such as would occur upon completion of any
of the actions discussed above. The Reporting Persons intend to
review their respective investments in the Issuer on a continuing
basis and engage in discussions with management, the Board of
Directors, shareholders and franchisees of the Issuer concerning
the business, operations and future plans of the Issuer. Depending
on various factors including, without limitation, the Issuer's
financial position and investment strategy, the price levels of the
Shares, conditions in the securities markets and general economic
and industry conditions, the Reporting Persons may in the future
take such actions with respect to their respective investments in
the Issuer as they deem appropriate including, without limitation,
communications with management and the Board of the Issuer,
engaging in discussions with third parties about the Issuer
and the Reporting Persons' investment, seeking Board
representation, making proposals to the Issuer concerning
changes to the capitalization, ownership structure or
operations of the Issuer, purchasing additional Shares,
selling some or all of their Shares, engaging in short
selling of or any hedging or similar transaction with
respect to the Shares or changing their intention with
respect to any and all matters referred to in Item 4.

ITEM 5 INTEREST IN SECURITIES OF THE ISSUER

(a)The aggregate percentage of Shares reported
owned by each person named herein is based upon 2,613,861
Shares outstanding as of December 25, 2009 which is the total number
of Shares outstanding as reported in the Issuer's quarterly report
on Form 10Q, filed with the Securities and Exchange
Commission on February 16, 2010.
As of the close of business on April 21, 2010, Hummingbird Value
directly owned 194,444 Shares, constituting approximately
8.44% of the Shares outstanding. As the investment
manager of Hummingbird Value, Hummingbird Management may
be deemed to beneficially own the 194,444 Shares owned
by Hummingbird Value, constituting approximately 8.44%
of the Shares outstanding. As the general partner of
Hummingbird Value, Hummingbird Capital may be deemed to
beneficially own the 194,444S hares owned by Hummingbird
Value, constituting approximately 8.44% of the Shares outstanding.
As of the close of business on April 21, 2010, Tarsier directly
owned 97,162 Shares, constituting approximately 4.22%
of the Shares outstanding. As the investment manager of
Tarsier, Hummingbird Management may be deemed to
beneficially own the 97,162 Shares owned by Tarsier,
constituting approximately 4.22% of the Shares outstanding.
As the general partner of Tarsier, Hummingbird Capital may
be deemed to beneficially own the 194,444 Shares owned by
Hummingbird Value, constituting approximately 8.44% of the
Shares outstanding.

Mr. Sonkin, as the managing member of each of Hummingbird
Management and Hummingbird Capital, who serve as the
investment manager and general partner, respectively,
of each of Hummingbird Value and Tarsier, may be deemed
to beneficially own the 304,422 Shares owned in the
aggregate by Hummingbird Value and Tarsier, constituting
approximately 13.22% of the Shares outstanding. Mr. Sonkin,
as the investment manager to the Managed Accounts, may be
deemed to beneficially own the 12,816 Shares owned by the
Managed Accounts, constituting approximately .56% of the
Shares outstanding.

(b)By virtue of his position with Hummingbird
Management and Hummingbird Capital, Mr. Sonkin has the
sole power to vote and dispose of the Shares beneficially
owned by Hummingbird Value and Tarsier. Mr. Sonkin has
sole power to vote and dispose of the Shares beneficially
owned by the Managed Accounts.

(c)Schedule A annexed hereto lists all transactions
in securities of the Issuer during the past sixty days by
the Reporting Persons. All of such transactions were
effected in the open market, unless indicated otherwise.

(d)No person other than the Reporting Persons is
known to have the right to receive, or the power to
direct the receipt of dividends from, or proceeds
from the sale of, the Shares, except for the clients
of Mr. Sonkin with respect to the Shares held in the Managed Accounts.

(e)Not applicable.

The filing of this Schedule 13D shall not be construed
as an admission that the Reporting Persons are, for purposes
of Section 13(d) of the Securities Exchange Act of 1934, as
amended, the beneficial owners of any of the Shares reported
herein. Each of the Reporting Persons specifically disclaims
beneficial ownership of the Shares reported herein that are
not directly owned by such Reporting Person, except to the
extent of its or his pecuniary interest therein.

ITEM 6 Inapplicable

ITEM 7 MATERIAL TO BE FILED AS EXHIBITS

Exhibit Exhibit
No. Description
--- ---------------------------------------------------------------

1 Joint Filing Agreement dated April 22, 2010 by and among
Hummingbird Management, LLC, Hummingbird Value Fund, L.P.,
The Tarsier Nanocap Value Fund LP, Hummingbird Capital, LLC,
and Paul Sonkin.

SIGNATURES

After reasonable inquiry and to the best of our knowledge and belief,
we certify that the information set forth in this statement is true, complete
and correct.

Dated: April 22, 2010 HUMMINGBIRD MANAGEMENT, LLC

By: /s/ Paul D. Sonkin
---------------------------------
Name: Paul D. Sonkin
Title: Managing Member

/s/ Paul D. Sonkin
-------------------------------------
PAUL D. SONKIN

HUMMINGBIRD VALUE FUND, L.P.

By: Hummingbird Capital, LLC

By: /s/ Paul D. Sonkin
---------------------------------
Name: Paul D. Sonkin
Title: Managing Member

The Tarsier Nanocap Value Fund, L.P.

By: Hummingbird Capital, LLC

By: /s/ Paul D. Sonkin
---------------------------------
Name: Paul D. Sonkin
Title: Managing Member

HUMMINGBIRD CAPITAL, LLC

By: /s/ Paul D. Sonkin
---------------------------------
Name: Paul D. Sonkin
Title: Managing Member

By: /s/ Paul D. Sonkin
---------------------------------
Name: Paul D. Sonkin

JOINT FILING AGREEMENT

In accordance with Rule 13d-1(k)(1)(iii) under the Securities Exchange
Act of 1934, as amended, the persons named below agree to the joint filing on
behalf of each of them of a Statement
on Schedule 13D dated April 22, 2010,
(including amendments thereto) with respect to the Common Stock of
Meade Instrument Corp. This Joint Filing Agreement shall be filed as an Exhibit
to such Statement.

Dated: April 22, 2010 HUMMINGBIRD MANAGEMENT, LLC

By: /s/ Paul D. Sonkin
---------------------------------
Name: Paul D. Sonkin
Title: Managing Member

/s/ Paul D. Sonkin
-------------------------------------
PAUL D. SONKIN

HUMMINGBIRD VALUE FUND, L.P.

By: Hummingbird Capital, LLC

By: /s/ Paul D. Sonkin
---------------------------------
Name: Paul D. Sonkin
Title: Managing Member

The Tarsier Nanocap Value Fund, L.P.

By: Hummingbird Capital, LLC

By: /s/ Paul D. Sonkin
---------------------------------
Name: Paul D. Sonkin
Title: Managing Member

By: Hummingbird Capital, LLC

By: /s/ Paul D. Sonkin
---------------------------------
Name: Paul D. Sonkin
Title: Managing Member

HUMMINGBIRD CAPITAL, LLC

By: /s/ Paul D. Sonkin
---------------------------------
Name: Paul D. Sonkin
Title: Managing Member

By: /s/ Paul D. Sonkin
---------------------------------
Name: Paul D. Sonkin

IEHC.. $4.35

Operating revenues for the six months ended September 25, 2009 amounted to $5,864,724 reflecting a 12.13% increase versus the six months ended September 26, 2008 revenues of $5,230,328. The sharp increase in revenues can be attributed to a dramatic increase in commercial aerospace spending, new customers in the medical device manufacturing sector as well as internal production efficiencies.

9-Nov-2009

Quarterly Report

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Forward Looking Statements

This report contains forward looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended (the "1934 Act") and
Section 27A of the Securities Act of 1933 (the "1933 Act"). Statements contained in this report which are not statements of historical facts may be considered forward-looking information with respect to plans, projections, or future performance of the Company as defined under the Private Securities litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those projected. The words "anticipate", "believe", "estimate", "expect", "objective", and "think" or similar expressions used herein are intended to identify forward-looking statements. The forward-looking statements are based on the Company's current views and assumptions and involve risks and uncertainties that include, among other things, the effects of the Company's business, actions of competitors, changes in laws and regulations, including accounting standards, employee relations, customer demand, prices of purchased raw material and parts, domestic economic conditions, including housing starts and changes in consumer disposable income, and foreign economic conditions, including currency rate fluctuations. Some or all of the facts are beyond the Company's control.

Except as may be required by applicable law, we do not undertake or intend to update or revise our forward-looking statements, and we assume no obligation to update any forward-looking statements contained in this report as a result of new information or future events or developments. Thus, you should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. You should carefully review and consider the various disclosures we make in this report and our other reports filed with the SEC that attempt to advise interested parties of the risks, uncertainties and other factors that m ay affect our business. The following discussion and analysis should be read in conjunction with the financial statements and related footnotes which provide additional information concerning the Company's financial activities and condition.

Critical Accounting Policies

The Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which require the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Financial Statements, and revenues and expenses during the periods reported. Actual results could differ from those estimates. The Company believes the following are the critical accounting policies, which could have the most significant effect on the Company's reported results and require the most difficult, subjective or complex judgments by management.

o Impairment of Long-Lived Assets:
The Company reviews its long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the expected cash flows, undiscounted and without interest, is less than the carrying amount of the asset, an impairment loss is recognized as the amount by which the carrying amount of the asset exceeds its fair value. The Company makes estimates of its future cash flows related to assets subject to impairment review.

o Inventory Valuation:
Raw materials and supplies are valued at the lower of first-in, first-out cost or market. Finished goods and work in process are valued at the lower of actual cost, determined on a specific identification basis, or market. The Company estimates which materials may be obsolete and which products in work in process or finished goods may be sold at less than cost, and adjusts their inventory value accordingly. Future periods could include either income or expense items if estimates change and for differences between the estimated.........

IEH CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (continued)
Critical Accounting Policies (continued)

actual amount realized from the sale of inventory.

o Income Taxes:
The Company records a liability for potential tax assessments based on its estimate of the potential exposure. Due to the subjectivity and complex nature of the underlying issues, actual payments or assessments may differ from estimates. Income tax expense in future periods could be adjusted for the difference between actual payments and the Company's recorded liability based on its assessments and estimates.

o Revenue Recognition:
Revenues are recognized at the shipping date of the Company's products. The Company has historically adopted the shipping terms that title merchandise passes to the customer at the shipping point (FOB Shipping Point). At this juncture, title has passed, the Company has recognized the sale, inventory has been relieved, and the customer has been invoiced. The Company does not offer any discounts, credits or other sales incentives.

The Company's policy with respect to customer returns and allowances as well as product warranty is as follows:

The Company will accept a return of defective product within one year from shipment for repair or replacement at the Company's option. If the product is repairable, the Company at its own cost will repair and return it to the customer. If unrepairable, the Company will either offer an allowance against payment or will reimburse the customer for the total cost of the product.

Most of the Company's products are custom ordered by customers for a specific use. The Company provides engineering services as part of the relationship with its customers in developing the custom product. The Company is not obligated to provide such engineering service to its customers. The Company does not charge separately for these services.

o Research & Development:
The Company provides personalized engineering services to its customers by designing connectors for specific customer applications. The employment of electromechanical engineers is the anticipated cornerstone of the Company's future growth. The Company maintains a testing laboratory where its engineers experiment with new connector designs based on changes in technology and in an attempt to create innovative, more efficient connector designs.

IEH CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (continued)
Results of Operations

Comparative Analysis-Six Months Ended September 25, 2009 and September 26, 2008

The following table sets forth for the periods indicated, percentages for certain items reflected in the financial data as such items bear to the revenues of the Company:

Relationship to Total Revenues

Sept. 25, Sept. 26,
2009 2008
------------ ----------
Operating Revenues (in thousands) $ 5,865 $ 5,230

Operating Expenses:
(as a percentage of Operating Revenues)

Costs of Products Sold 65.99% 69.05%
Selling, General and Administrative 14.38% 14.25%
Interest Expense .45% .74%
Depreciation and amortization 1.51% 1.72%
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TOTAL COSTS AND EXPENSES 82.33% 85.76%
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Operating Income (loss) 17.67% 14.24%

Other Income -- .01%
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Income (loss) before Income Taxes 17.67% 14.25%

Income Taxes (5.38%) (.80%)
------------ ------------

Net Income (loss) 12.29% 13.45%
============ ============

Operating revenues for the six months ended September 25, 2009 amounted to $5,864,724 reflecting a 12.13% increase versus the six months ended September 26, 2008 revenues of $5,230,328. The sharp increase in revenues can be attributed to a dramatic increase in commercial aerospace spending, new customers in the medical device manufacturing sector as well as internal production efficiencies.

Cost of products sold amounted to $3,870,207 for the six months ended September 25, 2009, or 65.99% of operating revenues. This reflected a $258,457 or 7.16% increase in the cost of products sold from $3,611,750 or 69.05% of operating revenues for the six months ended September 26, 2008. The increase in cost of product sold is due primarily to costs necessary to support the increase in revenue.

IEH CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (continued)
Comparative Analysis-Six Months Ended September 25, 2009 and September 26, 2008
(continued)

Selling, general and administrative expenses were $843,517 or 14.38% of operating revenues for the six months ended September 25, 2009 compared to $745,294 or 14.25% of operating revenues for the six months ended September 26, 2008. This category of expenses increased by $98,223 or 13.18% from the prior year. The increase can be attributed to an increase in salaries to sales personnel, commissions and travel expenses.

Interest expense was $26,175 for the six months ended September 25, 2009 or .45% of operating revenues. For the fiscal six months ended September 26, 2008, interest expense was $38,486 or .74% of operating revenues. The decrease of $12,311 or 31.99% reflects primarily management's commitment to apply revenues to reduce the Company's debt.

Depreciation and amortization of $88,314 or 1.51% of operating revenues was reported for the six months ended September 25, 2009. This reflects a decrease of $1,846 from the comparable six month period ended September 26, 2008 of $90,160 or 1.72% of operating revenues. The reduction in depreciation is the result of assets being written off during the six months ended September 25, 2009.

The Company reported net income of $721,033 for the six months ended September 25, 2009 representing basic earnings of $.31 per share as compared to net income of $702,914 or $.31 per share for the six months ended September 26, 2008. The increase in net income for the current six month period can be attributed primarily to the increased revenue recorded during the current quarter.

IEH CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (continued)
Comparative Analysis-Three Months Ended September 25, 2009 and September 26, 2008

The following table sets forth for the periods indicated, percentages for certain items reflected in the financial data as such items bear to the revenues of the Company:

Relationship to Total Revenues

Sept. 25, Sept. 26,
2009 2008
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Operating Revenues (in thousands) $ 2,987 $ 2,653
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Operating Expenses:
(as a percentage of Operating Revenues)

Costs of Products Sold 66.18% 71.90%
Selling, General and Administrative 14.25% 14.27%
Interest Expense .49% .65%
Depreciation and amortization 1.43% 1.67%
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TOTAL COSTS AND EXPENSES 82.35% 88.49%
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Operating Income (loss) 17.65% 11.51%

Other Income -- --
------------- -----------

Income (loss) before Income Taxes 17.65% 11.51%

Income Taxes ((5.29)%) (.68%)
------------- -----------

Net Income (loss) 12.36% 10.83%
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Operating revenues for the three months ended September 25, 2009 amounted to $2,987,024 reflecting a 12.60% increase versus the three months ended September 26, 2008 revenues of $2,652,855. The increase in revenues is due to an increase in commercial sales orders including aerospace and medical devices as well as internal production efficiencies during the current quarter.

Cost of products sold amounted to $1,976,674 for the three months ended September 25, 2009, or 66.18% of operating revenues. This reflected a $69,315 or 3.63% increase in the cost of products sold from $1,907,359 or 71.90% of operating revenues for the three months ended September 26, 2008. The increase in product sold is due primarily to costs necessary to support the increase in revenues during the quarter.

IEH CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (continued)
Comparative Analysis-Three Months Ended September 25, 2009 and September 26, 2008 (continued)

Selling, general and administrative expenses were $425,628 or 14.25% of operating revenues for the three months ended September 25, 2009 compared to $378,464 or 14.27% of operating revenues for the three months ended September 26, 2008. This category of expenses increased by $47,164 or 12.46% from the prior year. The increase can be attributed to an increase in salaries to sales personnel, commissions and travel.

Interest expense was $14,595 for the three months ended September 25, 2009 or .49% of operating revenues. For the fiscal three months ended September 26, 2008, interest expense was $17,277 or .65% of operating revenues. The decrease of $2,682 or 15.52% reflects primarily management's commitment to apply revenues to reduce the Company's debt.

Depreciation and amortization of $42,600 or 1.43% of operating revenues was reported for the three months ended September 25, 2009. This reflects a decrease of $1,680 or 3.79% from the prior three months ended September 26, 2008 of $44,280 or 1.67% of operating revenues.

The Company reported net income of $369,759 for the three months ended September 25, 2009 representing basic earnings of $.16 per share as compared to a net income of $287,694 or $.13 per share for the three months ended September 26, 2008. The increase in net income for the current three month period can be attributed primarily to the increased revenue recorded during the current quarter.

Liquidity and Capital Resources

The Company reported working capital of $3,388,105 as of September 25, 2009
compared to a working capital of $2,715,072 as of March 27, 2009. The increase
in working capital of $673,033 was attributable to the following items:

Net income $ 721,033
Depreciation and amortization 88,314
Capital expenditures (126,153)
Other transactions (10,161)

As a result of the above, the current ratio (current assets to current liabilities) was 3.97 to 1 at September 25, 2009 as compared to 2.74 to 1 at March 27, 2009. Current liabilities at September 25, 2009 were $1,139,752 compared to $1,558,972 at March 27, 2009.

The Company reported $126,153 in capital expenditures for the six months ended September 25, 2009 and reported depreciation of $88,314 for the same six month period.

The net income of $721,033 for the six months ended September 25, 2009 resulted in an increase in stockholders' equity to $4,576,921 as compared to stockholders' equity of $3,855,888 at March 27, 2009.

The Company has an accounts receivable financing agreement with a factor, which bears interest at 2 1/2 % above prime. However, the agreement does stipulate that the minimum interest rate is 12% per annum. At September 25, 2009 the amount outstanding with the factor was $117,732 as compared to $454,723 at March 27, 2009. The loan is secured by the Company's accounts receivables and inventories.

IEH CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (continued)
Liquidity and Capital Resources (continued)

The factor provides discounted funds to the Company based upon the Company's accounts receivables. These funds provide the primary source of working capital for operations.

In the past two fiscal years, management has been reviewing its collection practices and policies for outstanding receivables and has revised its collection procedures to a more aggressive collection policy. As a consequence of this new policy the Company's experience is that its customers have been remitting payments on a more consistent and timely basis. The Company reviews the collectability of all accounts receivable on a monthly basis. The reserve is less than 2% of average gross accounts receivable and is considered to be conservatively adequate.

The Company has the Multi-Employer Plan with the UAW. Contributions are made by the Company in accordance with a negotiated labor contract and are based on the number of covered employees employed per month. With the passage of the 1990 Act, the Company may become subject to liabilities in excess of contributions made under the collective bargaining agreement. Generally, these are contingent upon termination, withdrawal, or partial withdrawal from the Multi-Employer Plan. The Company has not taken any action to terminate, withdraw or partially withdraw from the Multi-Employer Plan, nor does it intend to do so in the future. Under the 1990 Act, liabilities would be based upon the Company's proportional share of the Multi-Employer Plan's unfunded vested benefits which is currently not available. The amount of accumulated benefits and net assets of such Plan also is not currently available to the Company. The total contributions charged to operations under the provisions of the Multi-Employer Plan were $55,692 and $45,281 for the six months ended September 25, 2009 and September 26, 2008, respectively.

On September 21, 2001 the Company's shareholders approved the adoption of the 2002 Plan to provide for the grant of options to purchase up to 750,000 shares of the Company's common stock to all employees, including senior management. No options have been granted under the Employee Option Plan to date.

Options granted to employees under the 2002 Plan may be designated as options which qualify for incentive stock option treatment under Section 422A of the Internal Revenue Code, or option which do not so qualify.

Under the 2002 Plan, the exercise price of an option designated as an incentive stock option shall not be less than the fair market value of the Company's common stock on the day the option is granted. In the event an option designated as an incentive stock option is granted to a ten percent (10%) shareholder, such exercise price shall be at least 110 Percent (110%) of the fair market value or the Company's common stock and the option must not be exercisable after the expiration of five years from the day of the grant. Exercise prices of non-incentive stock options may be less than the fair market value of the Company's common stock. The aggregate fair market value of shares subject to options granted to its participants, which are designated as incentive stock options, and which become exercisable in any calendar year, shall not exceed $100,000. As of September 25, 2009, no options had been granted under the 2002 Plan.

In 1987, the Company adopted the Cash Bonus Plan for executive officers. Contributions to the Cash Bonus Plan are made by the Company only after pre-tax operating profits exceed $150,000 for a fiscal year, and then to the extent of 10% of the excess of the greater of $150,000 or 25% of pre-tax operating profits.

IEH CORPORATION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (continued)
Liquidity and Capital Resources (continued)

The Company accrued $60,000 for the six months ended September 25, 2009. For the year ended March 27, 2009, the contribution was $121,000.