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EXHIBIT(10)

| A. | Eligibility.  CTS’      President and Chief Executive Officer is eligible for Severance Benefits      under the terms of this policy.  In addition, he may recommend,      and CTS’ Board of Directors will designate from time-to-time through Board      action, those other officers and executives who are eligible for severance      under this policy at the Tier 1 and the Tier 2 severance      levels.  (The President and CEO, and designated officers and      executives are collectively referred to herein as      “Executive(s).”)  An eligible Executive will be paid Severance      Benefits unless his or her termination was due to one of the events listed      in paragraph A(1) below, provided also that the eligible Executive      executes and delivers the release required by this  policy. |
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|   | 1. | Ineligibility.  Terminations      not eligible for Severance Benefitsare: |
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| ·   | Terminations      for Cause or resulting from Gross or Willful  Misconduct; |
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| ·   | Resignations      (other than a resignation that qualifies as an “involuntary separation      from service” within the meaning of Section 409A of the Internal Revenue      Code of 1986 (the “Code”); |
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| ·   | Layoffs/      furloughs, unless the layoff or furlough is subsequently converted to a      termination; |
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| ·   | Deaths      or transfers to a disabilitystatus; |
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| ·   | Retirements,      except as provided in paragraph D(6)below; |
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| ·   | Inability      to return from a medical leave even though unable to meet Disability      status requirements unless the cause for the medical leave was covered by      Worker’s Compensation; |
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| ·   | The      sale of a CTS facility, division, or operation when the Executive has been      offered employment in a comparable position by the successor organization      as a part of the sale.  Executives who do not elect to accept      employment by the new employer and who desire to seek employment elsewhere      within CTS shall not be eligible for Severance Benefits if such employment      cannot be provided. |
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| ·   | In      the event of a change in control, as defined by the agreement, if the      Executive is the beneficiary of a change-in-control Severance Agreement      and eligible for payment under thatagreement. |
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|   | 2. | Separation      from Service.  For purposes of this policy, Executive      will not be considered to have a termination of employment unless the      termination qualifies as a separation from service within the meaning of      Section 409A of the Internal Revenue Code of 1986, as amended from      time-to-time (“Separation fromService”). |
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| B. | Tier      2 Severance Benefits.  Tier 2 Executives shall be      eligible for the following SeveranceBenefits: |
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|   | 1. | Severance      Pay. Severance pay      equal to 9 months of his or her base salary in effect immediately prior to      termination.  Such payment will be paid in a single lump sum      cash payment on the 60th      day after the date of the Executive’s Separation from    Service. |
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|   | 2. | Health      and Dental Insurance. For a period of 9      months following the date of the Executive’s termination, CTS will make      available to the Executive the medical and dental benefits (but not      long-term or short-term disability benefits) that the Executive had      elected and was eligible to receive as of the date of the Executive’s      termination.  The cost of such coverage will be shared by CTS      and the Executive on the same basis as in effect prior to the Executive’s      termination, with the Executive required to make monthly premium      payments.  If the coverage described in this paragraph is not or      cannot be paid or provided under any policy, plan, program or arrangement      by CTS or any subsidiary, then CTS will itself pay or provide for such      equivalent coverage to the Executive, and his or her dependents and      beneficiaries.  All payments of benefits under the CTS’ medical      and dental programs or other reimbursements shall be made no later than      December 31 of the year following the year in which the Executive      incurs the related expenses.  In no event will the benefits and      reimbursements provided by CTS in one taxable year affect the amount of      expenses or reimbursements that CTS is obligated to pay, or in-kind      benefits to be provided in any other taxable  year. |
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|   | 3. | Outplacement      Assistance. Reimbursement of      an amount up to $15,000 for outplacement      services that are obtained following Executive’s termination, by a firm      selected by the Executive; provided, however, that in no event shall      expenses incurred after December 31 of the second year following the      year in which the Executive’s Separation from Service occurs be eligible      for reimbursement hereunder, and all reimbursements hereunder shall be      paid to Executive no later than December 31 of the third year      following the year in which the Executive’s Separation from Service      occurs. |
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| C. | Tier      1 Severance Benefits. Tier 1 Executives      shall be eligible for the following Severance  Benefits: |
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|   | 1. | Severance      Pay. Severance Pay      equal to 12 months of his or her base salary in effect immediately prior      to termination, payable in accord with the provisions of paragraph B(1)      above. |
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|   | 2. | Health      and Dental Insurance. The continuing      availability of medical and dental benefits for a period of 12 months      following the date of the Executive’s termination, otherwise on the same      terms of paragraph B(2) above. |
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|   | 3. | Outplacement      Assistance. Reimbursement of      an amount up to $30,000 for outplacement      services that are obtained following Executive’s termination, otherwise on      the same terms of paragraph B(3)above. |
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| D. | President      and Chief Executive Officer Severance Benefits. The President and      Chief Executive Officer shall be eligible for the following Severance      Benefits: |
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|   | 1. | Severance      Pay. Two times the sum      of (a) Executive’s base salary in effect at the time of termination      of employment and (b) an amount equal to Executive’s target annual      incentive compensation for the calendar year ending prior to the date of      termination of employment under this subparagraph.   Such      payment will be paid in a single lump sum cash payment on the 60th      day after the date of the Executive’s Separation from    Service. |
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|   | 2. | Health      and Dental Insurance. The continuing      availability of medical and dental benefits for a period of twenty four      (24) months following the date of the Executive’s termination, otherwise      on the same terms of paragraph B(2)above. |
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|   | 3. | Outstanding      Time-Based Equity Awards. To the extent      permitted by CTS’ equity plans, the vesting of any outstanding unvested      time-based restricted stock units or other equity awards granted to      Executive under CTS’ equity plans will be accelerated and such equity      awards will be fully vested as of the date of the Executive’s termination      of employment and payable in accordance with their existing      terms. |
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|   | 4. | Outstanding      Performance-Based Equity Awards.  For any outstanding      unvested performance-based restricted stock units, outstanding unvested      performance shares, or any other outstanding unvested equity incentive      available under any then-current performance-based equity program, to the      extent permitted by CTS’ equity plans, such awards will become      non-forfeitable as of the date of the Executive’s termination of      employment.  At the end of the applicable performance period,      CTS shall calculate the degree to which the awards were earned based on      actual performance, and then settle any earned awards on a pro-rata basis,      in accordance with the portion of the actual performance period that      elapsed prior to the Executive’s termination, in accordance with the      existing terms of such awards. |
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|   | 5. | Outplacement      Assistance. Reimbursement of      an amount up to $30,000 for outplacement      services that are obtained following Executive’s termination, otherwise on      the same terms of paragraph B(3)above. |
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|   | 6. | Notice      of Retirement.  In the event the President and Chief      Executive Officer gives the Board of Directors at least twelve (12) months      formal notice of his intent to terminate his employment voluntarily due to      his retirement and maintains continuous employment through such twelve      month period, upon retirement, the Executive will be entitled to the      Severance Benefits described in paragraphs (2), (3), and (4) of this      Section.  |
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| E. | No      Duplication of Benefits.  In general,      it is the intent of the parties that Severance Benefits under this policy      shall not duplicate substantially similar payments under any other      agreement, policy, plan or arrangement.  Executive shall not be      eligible for benefits under CTS' Severance Pay-Exempt Salaried Employees      Policy or any successor policy. |
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| F. | Section      409A. |
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|   | 1. | The      provisions of this paragraph F shall apply notwithstanding any provision      to the contrary in this policy.  In the event of any      inconsistency between a provision in this paragraph F and another      provision in this policy, the provision in this paragraph F shall be the      controlling provision. |
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|   | 2. | The      intent of the parties is that payments and benefits under this policy      comply with or be exempt from Section 409A and, accordingly, to the      maximum extent permitted, this policy shall be interpreted to be in      compliance therewith.  To the extent that there is a material      risk that any payments under this policy may result in the imposition of      an additional tax to the Executive under Section 409A, CTS will reasonably      cooperate with the Executive to amend this policy such that payments      hereunder comply with Section 409A without materially changing the      economic value of this policy to either party.  Notwithstanding      the foregoing, CTS does not guarantee to the Executive any specific tax      consequences relating to entitlement to or receipt of payments or benefits      pursuant to the policy.  The Executive shall be solely      responsible for payment of any taxes or penalties in connection with this      policy. |
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|   | 3. | Each      payment and benefit to be made or provided to the Executive pursuant to      this policy will be considered to be a separate payment and not one of a      series of payments for purposes of Section 409A.  Coverages      provided during one taxable year will not affect the degree to which      coverages will be provided in any other taxable  year. |
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|   | 4. | If      the Executive is a “specified employee” (within the meaning of Section      409A and determined pursuant to the identification methodology selected by      CTS from time to time) on the Executive’s Separation from Service and if      any portion of the payments or benefits to be received by the Executive      upon Separation from Service would be considered deferred compensation      (within the meaning of Section 409A) the payment or provision of which is      required to be delayed pursuant to the six-month delay rule set forth in      Section 409A in order to avoid taxes or penalties under Section 409A, then      CTS will not pay or provide the amount or benefit on the otherwise      scheduled date, but such payments or benefits will instead be accumulated      and paid or made available on the earlier of (a) the first day of the      seventh month following the Executive’s Separation from Service and (b)      the Executive’s death.  Any remaining payments and benefits due      under this policy shall be paid or provided in accordance with the normal      payment dates specified for themherein. |
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|   | 5. | Any      reimbursement provided under this policy will be made no later than      December 31 of the calendar year following the calendar year in which the      related expense was incurred; provided, however, that in no event will the      reimbursements in one taxable year affect the amount of reimbursements in      any other taxable year, nor shall the right to reimbursement be subject to      liquidation or exchange for another benefit.  |
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| G. | Release.  In      order to receive the Severance Benefits contemplated by this policy, the      Executive must execute and return to CTS a valid and binding      release.  The release shall contain such terms and conditions as      are satisfactory to CTS, including, but not limited to, the release of any      and all claims that the Executive may then have, as of the signing of such      release, against the corporation, its employees, officers, and      directors.  The Executive generally shall have up to twenty one      (21) days following the date the release is given to the Executive to sign      and return the release to CTS.  Further, the Executive shall      have seven (7) calendar days after delivery of the release to CTS to      revoke the release by sending written notice to that effect to the      corporation’s Secretary, Vice President, and General    Counsel. |
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| H. | Competitive      Activity and Non-solicitation.  During a period ending      one year following the Executive’s Separation from Service, if the      Executive has received severance benefits under this policy, the Executive      will not, without the prior written consent of CTS, which consent will not      be unreasonably withheld, engage in the management of any business      enterprise if such enterprise engages in substantial and direct      competition with CTS.  In addition, for such one year period,      the Executive shall not, either alone or in association with others (i)      solicit, or facilitate any organization with which the Executive is      associated in soliciting, any CTS employee or any of its subsidiaries to      leave the employ of the company or any of its subsidiaries; (ii) solicit      for employment, hire or engage as an independent contractor, or facilitate      any organization with which the Executive is associated in soliciting for      employment, hire or engagement as an independent contractor, any person      who was employed by CTS or any of its subsidiaries at any time during the      term of the Executive's employment with the Company or any of its      subsidiaries;      provided, however that      this clause shall not apply to any individual whose employment with CTS or      any of its subsidiaries has been terminated for a minimum of one year      preceding any such solicitation. |
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| I. | Amendment      and Termination.  CTS’ Board of Directors has the right      in its sole and absolute discretion to amend this policy or terminate it      prospectively, provided that this policy may not be amended by the Board      in any manner which is materially adverse to any named executive officers      without the Executive’s written consent.  Notwithstanding the      foregoing, CTS’ Board may amend this policy at any time to reflect changes      required by the Internal Revenue Code, or other federal or state      laws.    Notwithstanding any provision of this policy      to the contrary, this policy will remain in effect until, and will not be      revoked or earlier terminated prior to three (3) years from its effective      date.   |
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| J. | Excess      Parachute Payments- All payments and benefits under this policy are      subject to the Excess Parachute Payment limitation described in Addendum A      of this policy. |
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|                                      |   |   |   |   |
|-------------------------------------------|--------|--------|--------|--------|
| /s/      James L. Cummins                 |   |   |   |   |
| James      L. Cummins                     |   |   |   |   |
| Senior      Vice President Administration |   |   |   |   |

|                                                 |   |   |                                             |   |
|------------------------------------------------------|--------|--------|--------------------------------------------------|--------|
| /s/      Vinod M. Khilnani                           |   |   | /s/      Patricia K.Collawn                      |   |
| Vinod      M. Khilnani                               |   |   | Patricia      K. Collawn                         |   |
| Chairman,      President and Chief Executive Officer |   |   | ChairpersonCTS CorporationCompensation Committee |   |

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|   | “Cause”      means that the Executive: |
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|   | (i)  has      been convicted of a criminal violation involving fraud, embezzlement or      theft in connection with his duties or in the course of his employment      with CTS or any Subsidiary; |
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|   | (ii)  has      intentionally and wrongfully damaged property of CTS or any      Subsidiary; |
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|   | (iii)  has      intentionally and wrongfully disclosed secret processes, trade secrets or      confidential information of CTS or any Subsidiary;  or |
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|   | (iv)  has      intentionally and wrongfully engaged in any Competitive      Activity. |
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|   | “Change      in Control” has the meaning ascribed to such term in CTS’ prototype      Severance Agreement. |
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|   |   | “Code”      means the Internal Revenue Code of 1986, as  amended. |
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|   | “Disability”      means that the Executive has become permanently disabled within the      meaning of, and has begun to actually receive disability benefits pursuant      to, CTS’ long-term disability plan in effect for, or applicable to, the      Executive.  A conclusive determination of the Executive's      permanent disability shall occur when the Executive is placed on Permanent      Inactive Disability Status under the CTS Corporation Pension Plan or a      similar plan in which Executive is then a  participant. |
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|   | “Gross      or Willful Misconduct” means willful neglect by the Executive of the      duties of the Executive or the Executive's gross dishonesty which      materially prejudices the interests ofCTS. |
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|   | “Section      409A” means Section 409A of the Code.  References in this policy      to Section 409A are intended to include any proposed, temporary, or final      regulations, or any other guidance, promulgated with respect to Section      409A by the U.S. Department of the Treasury or the Internal Revenue      Service. |
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|   | “Subsidiary”      means an entity in which CTS directly or indirectly beneficially owns 50%      or more of the outstanding securities entitled to vote generally in the      election of directors. |
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