INDEMNIFICATION AGREEMENT


This Indemnification  Agreement  ("Agreement") is made on April 21, 1999 between
JPE,  Inc.,  a  Michigan  corporation  ("Corporation"),   and  Karen  A.  Radtke
("Officer").

                                    Recitals

A.   Officer is an officer of Corporation  and  Corporation  desires  Officer to
     continue  in such  capacity.  Officer  is  willing  to  continue  Officer's
     employment with Corporation if Officer receives the protections provided by
     this Agreement.

B.   Corporation's Bylaws obligate it to indemnify its directors and officers.

C.   Corporation  believes that (1) litigation  against corporate  directors and
     officers,   regardless   of   whether   meritorious,   is   expensive   and
     time-consuming  to  defend;  (2)  there  is a  substantial  risk of a large
     judgment or  settlement  in  litigation  in which a  corporate  officer was
     neither   culpable  nor  profited   personally  to  the  detriment  of  the
     corporation;  (3) it is  important  for  Officer  to  have  assurance  that
     indemnification  will be  available  if  Officer  acts in  accordance  with
     reasonable  business  standards;  and (4) because  available  directors and
     officers  liability  insurance  and  the  indemnification   available  from
     Corporation  are not adequate to fully protect Officer against the problems
     discussed  above,  it is in the  best  interests  of  Corporation  and  its
     shareholders for Corporation to contractually  obligate itself to indemnify
     Officer pursuant to this Agreement.

D.   Based upon the conclusions  stated in Recital C above, in  consideration of
     Officer's  continued  employment with  Corporation,  Corporation  wishes to
     enter into this Agreement with Officer.

Therefore, Corporation and Officer agree as follows:

l.   INDEMNIFICATION.

     (a)  Corporation  will indemnify  Officer to the fullest  extent  permitted
          under  applicable law if Officer was or is a party or threatened to be
          made a party to any threatened,  pending or completed action,  suit or
          proceeding of any kind,  whether civil,  criminal,  administrative  or
          investigative and whether formal or informal  (including actions by or
          in the right of Corporation  and any  preliminary  inquiry or claim by
          any person or authority), by reason of the fact that Officer is or was
          a  director,   officer,   partner,   trustee,  employee  or  agent  of
          Corporation  or  is or  was  serving  at  Corporation's  request  as a
          director, officer, employee or agent of another corporation (including
          a Subsidiary  (as defined in paragraph 15 below)),  limited  liability
          company,  partnership,  joint venture, trust, employee benefit plan or
          other enterprise,  whether or not for profit, or by reason of anything
          done or not  done  by  Officer  in any  such  capacity  (collectively,
          "Covered Matters").  Such  indemnification will cover all Expenses (as
          defined  in  paragraph  2 below),  liabilities,  judgments  (including
          punitive and exemplary  damages),  penalties,  fines (including excise
          taxes  relating to employee  benefit  plans and civil  penalties)  and
          amounts paid in settlement  which are incurred or imposed upon Officer
          in  connection  with  a  Covered  Matter  (collectively,  "Indemnified
          Amounts").

     (b)  If Officer is entitled  under this  Agreement to  indemnification  for
          less than all of the amounts  incurred by Officer in connection with a
          Covered   Matter,   Corporation   will   indemnify   Officer  for  the
          indemnifiable amount.

2.   ADVANCE OF EXPENSES.  Before final  adjudication of a Covered Matter,  upon
     Officer's request pursuant to paragraph 3 below,  Corporation will promptly
     either advance Expenses  directly or reimburse  Officer for all Expenses to
     the  fullest  extent  permitted  under  applicable  law.  As  used  in this
     Agreement,  "Expenses" means all costs and expenses  (including  attorneys'
     fees,  expert fees,  other  professional  fees and court costs) incurred by
     Officer  in  connection   with  a  Covered  Matter  other  than  judgments,
     penalties, fines and settlement amounts.

3.   CLAIMS FOR INDEMNIFICATION. Officer will give Corporation written notice of
     any claim for indemnification  under this Agreement.  Payment requests will
     include a schedule setting forth in reasonable  detail the amount requested
     and will be  accompanied  (or,  if  necessary,  followed)  by copies of the
     relevant  invoices  or other  documentation.  Upon  Corporation's  request,
     Officer will provide  Corporation  with a copy of the document or pleading,
     if any, notifying Officer of the Covered Matter. To the extent practicable,
     Corporation will pay Indemnified Amounts directly without requiring Officer
     to make any prior payment.

4.   DEFENSE OF CLAIM.

     (a)  Except as provided in paragraph 4(c) below, Corporation,  jointly with
          any other  indemnifying  party, will be entitled to assume the defense
          of any Covered Matter as to which Officer requests indemnification.

     (b)  Counsel  selected by  Corporation to defend any Covered Matter will be
          subject  to  Officer's  advance  written  approval,  which will not be
          unreasonably withheld.

     (c)  Officer may employ  Officer's  own counsel in a Covered  Matter and be
          fully reimbursed therefor if (1) Corporation approves, in writing, the
          employment  of such  counsel or (2) either (A) Officer has  reasonably
          concluded that there may be a conflict of interest between Corporation
          and  Officer or  between  Officer  and other  parties  represented  by
          counsel employed by Corporation to represent Officer in such action or
          (B) Corporation has not employed  counsel  reasonably  satisfactory to
          Officer to assume the defense of such Covered  Matter  promptly  after
          Officer's request.

     (d)  Neither Corporation nor Officer will settle any Covered Matter without
          the other's written consent, which will not be unreasonably withheld.

5.   D&O INSURANCE.  The parties will cooperate to obtain  advances of Expenses,
     indemnification  payments  and  consents  from  insurance  carriers  in any
     Covered Matter to the full extent of any applicable  directors and officers
     liability  insurance  ("D&O  Insurance").  Amounts paid directly to Officer
     with respect to a Covered Matter by D&O Insurance carriers will be credited
     to the amounts payable by Corporation to Officer under this Agreement.

6.   RIGHTS NOT EXCLUSIVE.  The  indemnification  provided to Officer under this
     Agreement will be in addition to any indemnification provided to Officer by
     any  law,  agreement,  Board  resolution,  provision  of  the  Articles  of
     Incorporation or Bylaws of Corporation or otherwise.

7.   SUBROGATION.  Upon payment of any Indemnified  Amount under this Agreement,
     Corporation  will be  subrogated  to the  extent of such  payment to all of
     Officer's rights of recovery  therefor and Officer will take all reasonable
     actions  requested  by  Corporation  (at no cost or penalty to  Officer) to
     secure  Corporation's  rights  under this  paragraph 7 including  executing
     documents.

8.   CONTINUATION  OF INDEMNITY.  All of  Corporation's  obligations  under this
     Agreement  will  continue  as long as  Officer  is subject to any actual or
     possible Covered Matter,  notwithstanding  Officer's termination of service
     as an officer of Corporation.

9.   AMENDMENTS.  Neither Corporation's Articles of Incorporation nor its Bylaws
     will be  changed to  increase  liability  of Officer or to limit  Officer's
     indemnification.  Any repeal or modification of  Corporation's  Articles of
     Incorporation  or Bylaws  or any  repeal or  modification  of the  relevant
     provisions  of any  applicable  law  will  not in any way  diminish  any of
     Officer's rights or Corporation's  obligations  under this Agreement.  This
     Agreement  cannot be amended except with the written consent of Corporation
     and Officer.

10.  GOVERNING LAW. This Agreement will be governed by Michigan Law.

11.  SUCCESSORS.

     (a)  This  Agreement  will be binding  upon and inure to the benefit of the
          parties and their respective heirs, legal representatives and assigns.

     (b)  Corporation will require any successor (whether direct or indirect, by
          purchase, merger,  consolidation or otherwise) to all or substantially
          all of the  business  or assets of the  Corporation  to assume  all of
          Corporation's  obligations under this Agreement.  Such assumption will
          not release Corporation from its obligations under this Agreement.

12.  SEVERABILITY.  The provisions of this  Agreement will be deemed  severable,
     and if any part of any  provision is held  illegal,  void or invalid  under
     applicable  law,  such  provision  may be changed to the extent  reasonably
     necessary to make the provision,  as so changed,  legal, valid and binding.
     If any provision of this Agreement is held illegal,  void or invalid in its
     entirety, the remaining provisions of this Agreement will not in any way be
     affected  or  impaired  but will remain  binding in  accordance  with their
     terms.

13.  NOTICES.  All  notices  given under this  Agreement  will be in writing and
     delivered  either  personally,  by  registered  or  certified  mail (return
     receipt requested,  postage prepaid), by recognized overnight courier or by
     telecopy  (if  promptly  followed  by  a  copy  delivered  personally,   by
     registered or certified mail or overnight courier), as follows:

               If to Officer:            Karen A. Radtke
                                         1918 Lloyd
                                         Royal Oak, Michigan 48073

               If to Corporation:        JPE, Inc.
                                         775 Technology Drive, Suite 200
                                         Ann Arbor, Michigan 48108
                                         Attention:  Secretary

     or to such other address as either party furnishes to the other in writing.

14.  COUNTERPARTS. This Agreement may be signed in counterpart.


15.  SUBSIDIARIES.  As used in this Agreement,  the term "Subsidiary"  means any
     corporation in which Corporation owns a majority interest.

16.  NO CONTRACT OF EMPLOYMENT.  This Agreement does not confer upon Officer any
     right with respect to continued employment with Corporation. Unless Officer
     has a written  employment  agreement  which expressly  provides  otherwise,
     Officer's  employment with  Corporation and its Subsidiaries and affiliates
     is "at will" and may be terminated by either Officer or Corporation (or any
     Subsidiary  or  affiliate)  at any time with or  without  cause,  notice or
     reason.

In witness  whereof,  the parties have executed  this  Agreement on the date set
forth in the introductory paragraph of this Agreement.

                                   JPE, INC.
                                   a Michigan corporation


                                   By:   /s/ Richard R. Chrysler
                                         -------------------------------------
                                         Richard R. Chrysler
                                   Its:  President and Chief Executive Officer


                                         /s/ Karen A. Radtke     ("Officer")
                                         -------------------------------------
                                         Karen A. Radtke