Document:

EX-10.103 EMPLOYMENT AGREEMENT DATED JULY 12,2004

 

Exhibit 10.103

EMPLOYMENT AGREEMENT

BETWEEN

GOODY’S FAMILY CLOTHING, INC.

AND

DEVIN KEIL

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Exhibit 10.103

TABLE OF CONTENTS

	 	 	 	 	 
	1.
	 	Definitions	 	1
	2.
	 	Employment	 	2
	3.
	 	Term	 	3
	4.
	 	Position and Duties; Business Time	 	3
	5.
	 	Compensation	 	3
	6.
	 	Termination of Employment	 	6
	7.
	 	Obligations of the Company Upon Termination	 	6
	8.
	 	Change of Control.	 	9
	9.
	 	Non-exclusivity of Rights.	 	9
	10.
	 	Full Settlement	 	9
	11.
	 	Arbitration of Disputes	 	9
	12.
	 	Confidential Information and Nonsolicitation	 	9
	13.
	 	Successors	 	10
	14.
	 	Miscellaneous	 	10

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Exhibit 10.103

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the “Agreement”), by and between GOODY’S FAMILY
CLOTHING, INC., a Tennessee corporation (the “Company”), and DEVIN KEIL (the
“Executive”), shall be effective as of the 12th day of July, 2004.

RECITALS:

     The Company plans to hire the Executive as the Senior Vice President of
Real Estate of the Company and the Executive desires to accept such employment,
upon terms and conditions set forth in this Agreement.

     NOW, THEREFORE, in consideration of the promises and mutual covenants
herein contained, and other good and valuable consideration, the Company and
the Executive do hereby agree as follows:

          1. Definitions.

          (a) “Accrued Obligations” shall mean (i) the Executive’s Base Salary
through the Date of Termination, (ii) any amounts deferred by the Executive and
not yet paid by the Company pursuant to a valid election to defer the receipt
of all or a portion of such payments made in accordance with any plan of
deferred compensation sponsored by the Company and any earned but unpaid
vacation pay for the current year, (iii) any amounts or benefits owing to the
Executive or to the Executive’s beneficiaries under the then applicable
employee benefit plans or policies of the Company and (iv) any amounts owing to
the Executive for reimbursement of expenses properly incurred by the Executive
through the Date of Termination and which are reimbursable in accordance with
the reimbursement policy of the Company described in Section 5(e).

          (b) “Base Salary” shall have the meaning set forth in Section 5(a).

          (c) “Board” shall mean the Board of Directors of the Company.

          (d) “Cause” shall mean that the Executive has, in the judgment of a
majority of the Board (i) committed a felony, or committed an act of fraud,
embezzlement or theft in connection with his duties with the Company or in the
course of his employment with the Company; (ii) willfully caused damage to
property of the Company; (iii) been convicted of a criminal offense (either a
misdemeanor involving acts of dishonesty, theft or moral turpitude, or a
felony); or (iv) engaged in a willful and material breach of his obligations
under Section 4 of this Agreement which breach (under this clause iv) has been
communicated to the Executive with specificity by written notice, and which has
not been cured to the reasonable satisfaction of the Board within a reasonable
period of time, which shall not be less than ten (10) days, nor more than
thirty (30) days, following receipt of such written notice by the Executive.
The Board shall provide the
Executive with an opportunity to meet with the Board in order to provide
the Executive an opportunity to refute or

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Exhibit 10.103

explain acts or omissions referred to
in such written notice. For the purpose of this Section, no act or omission
shall be considered willful unless done or omitted to be done in bad faith and
without reasonable belief that such act or omission was done in the best
interest of the Company.

          (e) A “Change of Control” of the Company shall mean and shall be deemed to
have occurred if (i) any person or group (within the meaning of Rule 13d-3 of
the rules and regulations promulgated under the Securities Exchange Act of
1934, as amended (the “1934 Act Rules”)), other than Robert M. Goodfriend,
members of his immediate family, his affiliates, trusts or private foundations
established by or on his behalf, and the heirs, executors or administrators of
Robert M. Goodfriend, shall acquire in one or a series of transactions, whether
through sale of stock or merger, more than 50% of the outstanding voting
securities of the Company or any successor entity of the Company, (ii) all or
substantially all of the Company’s assets are sold or (iii) the shareholders of
the Company approve a complete liquidation or dissolution of the Company.

          (f) “Change of Control Date” shall mean (i) the closing date on which a
Change of Control shall have occurred, (ii) in the case of a sale of all or
substantially all of the Company’s assets, the closing date on which a Change
of Control shall have occurred after shareholder approval is obtained, or (iii)
in the case of complete liquidation or dissolution of the Company, the date on
which shareholder approval is obtained.

          (g) “Date of Termination” shall have the meaning set forth in Section
6(e).

          (h) “Disability” shall mean disability whereby the Executive is unable to
render the services provided for by this Agreement by reason of illness, injury
or incapacity (whether physical, mental, emotional or psychological) for a
period of either (i) ninety (90) consecutive days or (ii) one hundred eighty
(180) days in any consecutive three hundred sixty-five (365) day period.

          (i) “Incentive Bonus” shall have the meaning as set forth in Section 5(b).

          (j) “Incentive Plan” shall have the meaning as set forth in Section 5(b).

          (k) “Notice of Termination” shall have the meaning as set forth in Section
6(d).

          (l) “Qualified Plan” shall mean any retirement plan maintained by the
Company which is intended to meet the requirements of the Internal Revenue Code
of 1986, as amended.

          (m) “Subsidiary” shall mean any majority-owned subsidiary of the Company.

          (n) “Supplemental Payment Date” shall have the same meaning as set forth
in Section 7(c).

          2. Employment. The Company has employed the Executive, and the Executive
has agreed to be employed by the Company as Senior Vice President, Real Estate
of the Company.

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Exhibit 10.103

          3. Term. The Executive shall be considered an at-will employee and his
employment may be terminated by either party subject to the obligations of the
parties upon such termination as set forth in this Agreement.

          4. Position and Duties; Business Time.

          (a) Position and Duties. The Executive shall serve as Senior Vice
President, Real Estate of the Company or another position which shall be either
of comparable rank or a promotion and shall continue to have such
responsibilities and duties as assigned to him by the Chief Executive Officer
of the Company or the Board from time to time.

          (b) Business Time. The Executive agrees to devote his full business time
to the business and affairs of the Company and to use his best efforts to
perform faithfully and efficiently the responsibilities assigned to him
hereunder, to the extent necessary to discharge such responsibilities, except
for:

               (i) time spent in managing his personal, financial and legal affairs and
serving on corporate, civic or charitable boards or committees, in each case
only if and to the extent not substantially interfering with the performance of
such responsibilities, and

               (ii) periods of vacation to which he is entitled, periods of illness and
other absences beyond his control.

It is expressly understood and agreed that the continued service by the
Executive on any boards and committees on which he is serving or with which he
is otherwise associated immediately preceding the date hereof, or his service
on any other boards and committees shall not be deemed to interfere with the
performance of the Executive’s services to the Company; provided, that in the
case of boards or committees on which the Executive is not currently serving
the Executive provides written notice of his intention to serve and the Board
thereafter approves such service (other than non-compensatory positions with
local boards or committees e.g. charitable, chamber of commerce or homeowner
associations which shall not require approval).

          5. Compensation. The Executive shall be entitled to the following
compensation and benefits for as long as the Executive remains an employee of
the Company:

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Exhibit 10.103

          (a) Base Salary. The Executive shall receive a base salary (the “Base
Salary”) payable in equal bi-weekly installments (or such other installments as
are provided by the Company for employees generally) at an annual rate of
$275,000. Subject to approval of the Compensation Committee of the Board of
Directors, in the first quarter of fiscal 2006 the Base Salary will increase to
$290,000. The Company shall review the Base Salary periodically and in light
of such review may, in its sole discretion, increase (but not decrease) the
Base Salary taking into account any change in the Executive’s responsibilities,
increases in compensation of other executives with comparable responsibilities,
performance of the Executive and other pertinent factors, and such adjusted
Base Salary shall then constitute the “Base Salary” for purposes of this
Agreement.

          (b) Short Term Incentive Plan Bonus. The Company has established a “Short
Term Incentive Plan” (the “Incentive Plan”) under which the Executive shall be
eligible to participate for each fiscal year he holds the position stated in
Section 2 and shall be eligible to receive an annual incentive target bonus
equal to a percentage of the Base Salary earned by Executive (as such
percentage level of the target bonus may be approved and available from time to
time to executives of the Company holding comparable positions) during each
fiscal year based on performance and other specific objectives adopted by the
Compensation Committee of the Board (the “Incentive Bonus”). The Executive
must be employed by the Company as of the date any applicable Incentive Bonus
is paid by the Company. For the Company’s fiscal year 2004, the target bonus
will be 60% of the Executive’s Base Salary, prorated to reflect time in
position in fiscal year 2004.

          (c) Incentive and Savings Plans; Retirement and Death Benefit Programs.
The Executive shall be entitled to participate in all incentive and savings
plans and programs, including stock option plans and other equity-based
compensation plans, and in all employee retirement, executive retirement and
executive death benefit plans on a basis no less favorable than that basis
generally available to executives of the Company holding comparable positions
or having comparable responsibilities.

          (d) Other Benefit Plans. The Executive, his spouse and their
eligible dependents (as defined in, and to the extent permitted by, the
applicable plan), as the case may be, shall be entitled to participate in
or be covered under all medical, dental, group disability, group life,
severance plans and programs of the Company to the extent such plans and
programs are generally available to executives of the Company holding
comparable positions or having comparable responsibilities.

          (e) Other Perquisites. The Executive shall also be entitled to:

               (i) prompt reimbursement for all reasonable expenses incurred by the
Executive in accordance with the policies and procedures of the Company;

               (ii) three (3) weeks paid vacation, such paid vacation time to be
increased (but not decreased) in accordance with Company policy;

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Exhibit 10.103

               (iii) an automobile allowance of $500 per month shall be paid by the
Company together with gasoline expenses for such automobile in accordance
with the Company’s policies and procedures with respect thereto. If
Executive’s automobile travel warrants, Executive may chose to be assigned
a Company automobile instead of receiving the above-described automobile
allowance. Such Company automobile would be comparable to the then
current model generally furnished by the Company to other Company
associates with expenses to be paid in accordance with the Company’s
policies and procedures with respect thereto; and

               (iv) an office or offices suitable for an executive officer with
secretarial and other assistance as shall reasonably be required by the
Executive.

          (f) Equity Opportunity. The Executive shall
be granted a non-ualified
stock option under the Company’s 1997 Stock Option Plan to purchase an
aggregate of thirty thousand (30,000) shares of common stock of the
Company at an exercise price equal to the closing sales price of the
common stock on the business day immediately preceding the date of grant,
which option shall vest in annual 20% increments beginning one year from
the date of grant and expire ten (10) years from the date of grant, and
shall be upon such other terms and conditions as contained in the
Company’s standard form of option agreement.

          (g) Sign-On Bonus. As additional compensation, the Company shall pay
the Executive a sign-on bonus of $40,000, payable within five (5) days
after the date his employment with the Company commences.

          (h) Relocation Allowances. The Company will reimburse the Executive
(upon presentation of appropriate vouchers or receipts in accordance with
the Company’s expense reimbursement policies) up to a maximum sum of Sixty
Thousand Dollars ($60,000.00) for the following costs and expenses
relating to his relocation:

               (i) all reasonable expenses of
moving the Executive’s
possessions from his Duluth, GA residence (the “Georgia Residence”) to the
Executive’s new permanent residence in the Knoxville (the “Knoxville
Residence”) metropolitan area;

               (ii) all reasonable standard fees,
commissions, closing costs
and brokerage fees associated with the sale of the Georgia Residence
(including reasonable attorney’s fees); and

          In addition to the reimbursement and maximum payment described in (i)
and (ii) directly above, the Company will also reimburse the Executive all
reasonable standard fees and closing costs associated with the purchase of
the Executive’s Knoxville Residence (including reasonable attorney’s
fees).

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Exhibit 10.103

          6. Termination of Employment.

          (a) Disability; Death. The Company may terminate the Executive’s
employment after having established the Executive’s Disability, by giving
to the Executive written notice of its intention to terminate his
employment, and his employment with the Company shall terminate effective
on the thirtieth (30th) day after receipt of such notice if the Executive
shall fail to return to full-time performance of her duties within thirty
(30) days after such receipt. If the Executive dies during the term of
this Agreement, his employment hereunder shall be deemed to cease as of
the date of his death.

          (b) Voluntary Termination by the Executive. Notwithstanding anything
in this Agreement to the contrary, the Executive may, upon not less than
thirty (30) days’ written notice to the Company, voluntarily terminate
employment for any reason.

          (c) Termination by the Company. The Company at any time may terminate the
Executive’s employment for Cause or without Cause.

          (d) Notice of Termination. Any termination by the Company for Cause or by
the Executive shall be communicated by a written Notice of Termination to the
other party hereto given in accordance with Section 14(c). For purposes of
this Agreement, a “Notice of Termination” means a written notice given in the
case of a termination for Cause which (i) indicates the specific termination
provision in this Agreement relied upon, (ii) sets forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of the
Executive’s employment under the provision so indicated, and (iii) if the
termination date is other than the date of receipt of such notice, specifies
the termination date (which date shall be not more than thirty (30) days after
the receipt of such notice).

          (e) Date of Termination. For the purpose of this Agreement, the term
“Date of Termination” means (i) in the case of a termination for which a Notice
of Termination is required, the date of receipt of such Notice of Termination
or, if later, the date specified therein, as the case may be, and (ii) in all
other cases, the actual date on which the Executive’s employment terminates.

          7. Obligations of the Company Upon Termination. Upon termination of the
Executive’s employment with the Company, the Company shall have the following
obligations:

          (a) Death, Disability and Retirement. If the Executive’s employment is
terminated by reason of the Executive’s death, Disability, or retirement on or
after the attainment of age sixty-five (65), the Company shall have no further
obligations to the Executive’s legal representatives under this Agreement other
than payment of the Accrued Obligations. If the Executive’s employment is
terminated by reason of the Executive’s death or Disability, the Company shall
have the additional obligation, subject to the terms of the

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Exhibit 10.103

Incentive Plan and
further provided that the Executive has been employed by the Company for the
first six (6) months of the then applicable fiscal year, to pay a cash amount
equal to a portion of the Incentive Bonus, the product of a fraction, the
numerator of which is the number of days elapsed since the date the Incentive
Plan began for the applicable fiscal year through the date of the Disability or
the date of death of the Executive, and the denominator of which is the total
number of days of the applicable fiscal year for such Incentive Plan. Unless
otherwise directed by the Executive (or, in the case of the Incentive Plan or a
Qualified Plan, as may be required by such Incentive Plan or Qualified Plan)
all Accrued Obligations shall be paid to the Executive, his beneficiaries or
his estate, as applicable, in a lump sum in cash within thirty (30) days of the
Date of Termination. In the event of the termination of the Executive by
reason of retirement on or after the attainment of age sixty-five (65), death
or Disability, he and/or his named beneficiaries, as the case may be, shall be
entitled to the benefits available through the Company sponsored plans and
programs. With regard to the termination of the Executive’s employment by
reason of the Executive’s death, retirement on or after the attainment of age
sixty-five (65) or Disability, the Company shall, for a period of six (6)
months after the Executive’s Date of Termination, pay the entire COBRA premium
under any Company medical and dental program that the Executive (and his spouse
and eligible dependents) was participating in prior to the termination of
employment. The Company’s premium obligations in the preceding two sentences
shall exclude normal employee contributions paid by the Executive prior to the
Date of Termination. In addition to the foregoing, in the event of termination
of the Executive’s employment by reason of the death or Disability of the
Executive, all unvested stock options held by the Executive shall become fully
vested, effective on the Date of Termination, and shall thereafter be
exercisable in accordance with the provisions of the applicable Option Plan
(including, without limitation, Sections 5 and 6 thereof) and Option Agreement.

          (b) Termination by the Company for Cause and Voluntary Termination by the
Executive. If the Executive’s employment shall be terminated for Cause or
voluntarily terminated by the Executive the Company shall pay the Executive the
Accrued Obligations. The Executive shall be paid all such Accrued Obligations
in a lump sum in cash within thirty (30) days of the Date of Termination and
the Company shall have no further obligations to the Executive under this
Agreement, unless otherwise required by a Qualified Plan or specified pursuant
to a valid election to defer the receipt of all or a portion of such payments
made in accordance with any plan of deferred compensation sponsored by the
Company.

          (c) Other Termination of Employment. If the Company terminates the
Executive’s employment other than for Cause, death or Disability, the Company
shall pay and provide to the Executive the following:

               (i) Severance Payment. The Company shall pay to the Executive in a lump
sum in cash or certified check within fifteen (15) days after the Date of
Termination a severance payment equal to the sum of the following amounts
(other than amounts payable from the Incentive Plan or Qualified Plans,
non-qualified retirement plans and deferred compensation plans, which amounts
shall be paid in accordance with the terms of such plans):

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Exhibit 10.103

                    (A) all Accrued Obligations;

                    (B) a cash amount equal to six (6) months of the Executive’s Base Salary
at the rate in effect as of the date when the Notice of Termination was given;

                    (C) subject to the terms of the Incentive Plan and further provided that
the Executive has been employed by the Company for the first six (6) months of
the then applicable fiscal year, a cash amount equal to a portion of the
Incentive Bonus, the product of a fraction, the numerator of which is the
number of days elapsed since the date the Incentive Plan began for the
applicable fiscal year through the date of such Termination or termination
without Cause, and the denominator of which is the total number of days of the
applicable fiscal year for such Incentive Plan.

In addition, if the Executive has not accepted employment from a subsequent
employer prior to the date which is seven (7) months from the Date of
Termination (the “Supplemental Payment Date”), commencing on the Supplemental
Payment Date the Company shall pay the Executive an amount equal to fifty
percent (50%) of his monthly Base Salary at the rate in effect as of the date
when the Notice of Termination was given in equal monthly installments until
the earlier of (i) the payment of the sixth (6th) monthly installment; or (ii)
the date of the Executive’s acceptance of employment from a subsequent
employer. As a condition of receiving any payment from the Company pursuant to
this paragraph, the Executive agrees to diligently and in good faith pursue
other employment opportunities after the Date of Termination and if requested
by the Company, document such employment pursuits in writing to the Company.
The Executive shall notify the Company immediately upon his acceptance of any
such new employment if secured prior to the payment by the Company of such six
(6) additional monthly installments.

          (d) Release. As a condition precedent to the receipt of any termination
benefits payable to the Executive under this Section 7, the Executive agrees to
execute a general release among other things releasing the Company from any
obligation or liability (other than those contained in Sections 7, 8, 9, 10,
11, 13 and 14 hereof, to the extent an obligation under any such section arose
at or prior to the Date of Termination and remains unfulfilled). Such release
shall exclude the Executive’s rights under any Qualified Plan.

          (e) Discharge of Company’s Obligations. Subject to the performance of its
obligations under Sections 7, 8, 9, 10, 11, 13 and 14 (and then, only to the
extent an obligation under any such section arose at or prior to the Date of
Termination and remains unfulfilled), the Company shall have no further
obligations to the Executive under this Agreement in respect of any termination
of employment.

          8. Change of Control. Upon the occurrence of a Change of Control, the
Company shall pay the Executive, as consideration for assisting the Company in
bringing about a successful transaction, an amount equal to twelve (12) months
of the Executive’s Base Salary

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Exhibit 10.103

at the rate in effect as of the Change of
Control Date. Such amount shall be payable in a lump sum in cash or certified
check within five (5) days after the Change of Control Date.

          9. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or
limit the Executive’s continuing or future participation in any benefit, bonus,
incentive or other plan or program provided by the Company and for which the
Executive may qualify, nor shall anything herein limit or otherwise prejudice
such rights as the Executive may have under any other agreements with the
Company, including, but not limited to stock option agreements. Amounts which
are vested benefits or which the Executive is otherwise entitled to receive
under any plan or program of the Company at or subsequent to the Date of
Termination shall be payable in accordance with such plan or program.

          10. Full Settlement. The Executive shall not be obligated to seek other
employment by way of mitigation of the amounts payable to the Executive under
any of the provisions of this Agreement.

          11. Arbitration of Disputes. In the event that a claim for payment or
benefits under this Agreement is disputed, the Company and the Executive agree
to submit such dispute to final and binding arbitration with United States
Arbitration and Mediation, Inc. (“USAM”) in Knoxville, Tennessee or such other
arbitration firm as the Company and the Executive shall mutually agree. Either
party wishing to arbitrate any claim hereunder shall notify the other party and
USAM in writing whereupon USAM shall select a neutral arbitrator and shall
schedule an arbitration hearing within thirty (30) days of receipt of such
notice of arbitration. The arbitration shall be conducted in accordance with
the rules and procedures of USAM. The parties agree that any arbitrator’s
award may be presented to a court of competent jurisdiction and judgment
entered thereon.

          12. Confidential Information and Nonsolicitation.

          (a) The Executive shall hold in a fiduciary capacity for the benefit of
the Company all secret or confidential information, knowledge or data,
including without limitation all trade secrets,
relating to the Company, and its business, (i) obtained by the Executive
during his employment by the Company, and (ii) which is not otherwise publicly
known (other than by reason of an unauthorized act by the Executive) and is
subject to efforts that are reasonable under the circumstances to maintain its
secrecy. After termination of the Executive’s employment with the Company, the
Executive shall not, without the prior written consent of the Company, unless
compelled pursuant to an order of a court or other body having jurisdiction
over such matter, communicate or divulge any such information, knowledge or
data to anyone other than the Company and those designated by it.

          (b) Upon termination of the Executive’s employment for any reason, the
Executive, for the twelve (12) month period following the Notice of
Termination, shall not, on his own behalf or on behalf of any person or entity,
directly or indirectly solicit or aid in the solicitation of any employees of
the Company to leave their employment. In the event the

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Exhibit 10.103

Executive violates the
terms of Section 12(a) or this Section 12(b), the Employee shall forfeit the
right to all salary and benefits that the Executive and/or his family members
were otherwise entitled pursuant to the terms of Section 7. Also, in the event
that this Section 12 is determined to be unenforceable in part, it shall be
construed to be enforceable to the maximum extent permitted by law.

          (c) The Executive agrees that the covenants of confidentiality and
non-solicitation contained in this Section 12 are reasonable covenants under
the circumstances and necessary to protect the business interests and
properties of the Company. The Executive agrees that irreparable loss and
damage will be suffered by the Company should the Executive breach any of the
covenants contained in this Section 12. Accordingly, the Executive agrees that
the Company, in addition to all remedies provided at law or in equity, shall be
entitled to a temporary restraining order and temporary and permanent
injunctions to prevent a breach or contemplated breach of any of the covenants
contained in this Section 12.

          13. Successors.

          (a) This Agreement is personal to the Executive and, without the prior
written consent of the Company, shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement
shall inure to the benefit of and be enforceable by the Executive’s legal
representatives.

          (b) This Agreement shall inure to the benefit of and be binding upon the
Company and its successors. The Company shall require any successor to all or
substantially all of the business and/or assets of the Company, whether direct
or indirect, by purchase, merger, consolidation, acquisition of stock, or
otherwise, expressly to assume and agree to perform this Agreement in the same
manner and to the same extent as the Company would be required to perform if no
such succession had taken place.

          14 Miscellaneous.

          (a) Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Tennessee, applied without reference
to principles of conflict of laws.

          (b) Amendments. This Agreement may not be amended or modified otherwise
than by a written agreement executed by the parties hereto or their respective
successors and legal representatives.

          (c) Notices. All notices and other communications hereunder shall be in
writing and shall be given by hand delivery to the other party, by overnight
delivery or by registered or certified mail, return receipt requested, postage
prepaid, addressed as follows:

	 	 	 	 	 
	

	 	If to the Executive: at the address listed on the last page hereof
	 	 

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Exhibit 10.103

	 	 	 	 	 
	

	 	If to the Company:
	 	Goody’s Family Clothing, Inc.
	

	 	 	 	400 Goody’s Lane
	

	 	 	 	P.O. Box 22000
	

	 	 	 	Knoxville, Tennessee 37933-2000
	

	 	 	 	Attention: General Counsel

(with a copy to the attention of the Secretary or to such other address as
either party shall have furnished to the other in writing in accordance
herewith). Communications delivered by hand or by overnight delivery shall be
deemed received on the date of delivery and communications sent by registered
or certified mail shall be deemed received three (3) business days after the
sending thereof.

          (d) Tax Withholding. The Company may withhold from any amounts payable
under this Agreement such federal, state or local taxes as shall be required to
be withheld pursuant to any applicable law or regulation.

          (e) Severability. The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

          (f) Captions. The captions of this Agreement are not part of the
provisions hereof and shall have no force or effect.

          (g) Entire Agreement. This Agreement expresses the entire understanding
and agreement of the parties regarding the terms and conditions governing the
Executive’s employment with the Company, and all prior agreements governing the
Executive’s employment with the Company (including, without limitation, the
Existing Severance Contract) shall have no further effect; provided, however,
that except as specifically provided herein, the terms of this Agreement do not
supercede the
terms of any grant or award to the Executive under any stock option
program of the Company except as specifically set forth in Section 7(a) with
respect to the vesting and exercisability of stock options.

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Exhibit 10.103

          IN WITNESS WHEREOF, the Executive has hereunto set his hand and the
Company has caused this Agreement to be executed in its name on its behalf, and
its corporate seal to be hereunto affixed and attested by its Secretary, all
effective as of the day and year first above written.

	 	 	 	 	 
	 	GOODY’S FAMILY CLOTHING, INC.

 	 
	 	By:  	 	 
	 	 	Robert M. Goodfriend 	 
	 	Title: 	Chairman and Chief Executive Officer 	 	 
	 

	 	 	 	 	 
	ATTEST:	 

 	 
	
 	 	 
	Title:	 	 	 
	 	 	 	 	 
	(CORPORATE SEAL)	
 	 
	 

	 	 	 	 	 
	 	EXECUTIVE: Devin Keil

 	 
	 	
 	 
	 	Name:  	Devin Keil 	 
	 	Address: 	 
	 

14<PAGE>

                                                                    EXHIBIT 10.1

                             STOCKHOLDER'S AGREEMENT

      This STOCKHOLDER'S AGREEMENT (this "Agreement") is made and entered into
as of November 16, 2004, by and between CTS Corporation, an Indiana corporation
("Parent") and Thomas M. Wheeler Trust U/T/D 4/9/86, a stockholder of SMTEK
International, Inc., a Delaware corporation (the "Company"), ("Stockholder"").

                                    RECITALS

      A. Concurrently with the execution of this Agreement, Parent, Cardinal
Acquisition, Inc., a Delaware corporation and wholly owned subsidiary of Parent
("Merger Sub"), and the Company are entering into an Agreement and Plan of
Merger, dated the date hereof (as such agreement may hereafter be amended from
time to time, the "Merger Agreement"), which provides for the merger of Merger
Sub with and into the Company (the "Merger"), upon the terms and subject to the
conditions set forth in the Merger Agreement and in accordance with the General
Corporation Law of the State of Delaware. Following the Merger, the Company will
continue as the surviving corporation. In the Merger, each issued and
outstanding share of Company Common Stock (as defined in the Merger Agreement),
other than Dissenting Shares (as defined in the Merger Agreement) and any shares
of Company Common Stock owned by Parent or any direct or indirect subsidiary of
Parent or held in the treasury of the Company, will be converted into the right
to receive the Merger Consideration (as defined in the Merger Agreement) as
provided in the Merger Agreement.

      B. As of the date hereof, Stockholder is the beneficial owner of (as
defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended) and
has the sole right to vote and dispose of such number of shares of Company
Common Stock (the "Shares") listed on Schedule A attached hereto.

      C. Stockholder is entering into this Agreement as a material inducement
and consideration to each of Parent and Merger Sub to enter into the Merger
Agreement.

      NOW, THEREFORE, in consideration of the mutual representations,
warranties, covenants and agreements contained in this Agreement, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and upon the terms and subject to the conditions set forth herein,
the parties hereto agree as follows:

      1. Definitions. Capitalized terms that are used in this Agreement and are
not otherwise defined herein will have the meanings ascribed to such terms in
the Merger Agreement.

            (a) "Termination Date" means the earlier to occur of (i) the
Effective Time; and (ii) the termination of the Merger Agreement in accordance
with its terms.

            (b) "Transfer" with respect to any security means to directly or
indirectly: (i) sell, pledge, encumber, transfer or dispose of, or grant an
option with respect to, such security or any interest in such security; or (ii)
enter into an agreement or commitment providing for the sale, pledge,
encumbrance, transfer or disposition of, or grant of an option with respect to,
such security or any interest therein.

<PAGE>

      2. Representations and Warranties of Stockholder. Subject to the
limitations and covenants on Schedule B hereto, Stockholder hereby represents
and warrants to Parent as follows:

            2.1 Authority; Enforceability. Stockholder has the capacity or
requisite corporate power and authority, as applicable, to enter into this
Agreement and to consummate the transactions contemplated by this Agreement. The
execution and delivery of this Agreement by Stockholder and the consummation by
Stockholder of the transactions contemplated hereby have been duly authorized by
all necessary corporate or other action on the part of Stockholder. This
Agreement has been duly executed and delivered by Stockholder, and, assuming the
due authorization, execution and delivery by Parent, constitutes the legal,
valid and binding obligation of Stockholder, enforceable against Stockholder in
accordance with its terms, except as the enforcement thereof may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
generally affecting the rights of creditors and subject to general equity
principles.

            2.2 Noncontravention; Consents. The execution and delivery of this
Agreement by Stockholder does not, and the consummation of the transactions
contemplated by this Agreement and compliance with the provisions of this
Agreement by Stockholder will not, (i) conflict with the certificate of
incorporation or by-laws (or comparable organizational documents) of
Stockholder, if applicable, (ii) result in any breach, violation or default
(with or without notice or lapse of time, or both) under, or give rise to a
right of termination, cancellation or creation or acceleration of any obligation
or right of a third party or loss of a benefit under, or result in the creation
of any Lien upon any of the properties or assets of Stockholder, any loan or
credit agreement, note, bond, mortgage, indenture, lease or other agreement,
instrument, permit, concession, franchise, license or other authorization
applicable to Stockholder, or its respective properties or assets or (iii)
subject to the governmental filings and other matters referred to in the
following sentence, conflict with or violate any judgment, order, decree or Law
applicable to Stockholder, or its respective properties or assets, other than,
in the case of clauses (ii) and (iii), any such conflicts, breaches, violations,
defaults, rights, losses or Liens that, individually or in the aggregate, would
not materially impair the ability of Stockholder to consummate the transactions
contemplated by this Agreement. No consent, approval, order or authorization of,
action by or in respect of, or registration, declaration or filing with, any
Governmental Entity or any third party is required by Stockholder in connection
with the execution and delivery of this Agreement by Stockholder or the
consummation by Stockholder of the transactions contemplated hereby, except for
the filing with the SEC of such reports under Section 13(a), 13(d), 15(d) or
16(a) of the Exchange Act as may be required in connection with this Agreement
and the transactions contemplated hereby and such consents, approvals, orders,
or authorizations the failure of which to be made or obtained, individually or
in the aggregate, would not materially impair the ability of Stockholder to
consummate the transactions contemplated by this Agreement.

            2.3 Shares Owned. As of the date hereof, Stockholder is the sole
record and beneficial owner of the Shares free and clear of any Liens.
Stockholder holds exclusive power to vote the Shares. The foregoing is subject
to the limitations and covenants set forth on Schedule B hereto.

      3. Representations and Warranties of Parent. Parent hereby represents and
warrants to Stockholder as follows:

            3.1 Authority; Enforceability. Parent has all requisite corporate
power and authority to enter into this Agreement and to consummate the
transactions contemplated by this Agreement. The execution and delivery of this
Agreement by Parent and the consummation by Parent of the transactions
contemplated hereby have been duly authorized by all necessary corporate action
on the part of Parent. This Agreement has been duly executed and delivered by
Parent, and, assuming the due authorization, execution and delivery by the
Stockholders, constitutes the legal, valid and binding obligation of Parent,
enforceable against Parent in accordance with its terms, except as the
enforcement thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws generally affecting the rights of
creditors and subject to general equity principles.

            3.2 Noncontravention; Consents. The execution and delivery of this
Agreement by Parent does not, and the consummation of the transactions
contemplated by this Agreement and compliance with the provisions of this
Agreement by Parent will not, (i) conflict with the certificate of incorporation
or by-laws of

<PAGE>

Parent, (ii) result in any breach, violation or default (with or without notice
or lapse of time, or both) under, or give rise to a right of termination,
cancellation or creation or acceleration of any obligation or right of a third
party or loss of a benefit under, or result in the creation of any Lien upon any
of the properties or assets of Parent under, any loan or credit agreement, note,
bond, mortgage, indenture, lease or other agreement, instrument, permit,
concession, franchise, license or other authorization applicable to Parent or
its properties or assets or (iii) subject to the governmental filings and other
matters referred to in the following sentence, conflict with or violate any
judgment, order, decree or Law applicable to Parent or its properties or assets,
other than, in the case of clauses (ii) and (iii), any such conflicts, breaches,
violations, defaults, rights, losses or Liens that, individually or in the
aggregate, would not materially impair the ability of Parent to consummate the
transactions contemplated by this Agreement. No consent, approval, order or
authorization of, action by or in respect of, or registration, declaration or
filing with, any Governmental Entity or any third party is required by Parent in
connection with the execution and delivery of this Agreement by Parent or the
consummation by Parent of the transactions contemplated hereby, except for the
filing with the SEC of such reports under Section 13(a), 13(d), 15(d) or 16(a)
of the Exchange Act as may be required in connection with this Agreement and the
transactions contemplated hereby and such consents, approvals, orders, or
authorizations the failure of which to be made or obtained, individually or in
the aggregate, would not materially impair the ability of Parent to consummate
the transactions contemplated by this Agreement.

      4. Agreement to Vote.

            4.1 Voting. (a) Subject to the limitations and covenants on Schedule
B hereto, Stockholder hereby covenants and agrees that, prior to the Termination
Date, at any meeting (whether annual or special and whether or not an adjourned
or postponed meeting) of the stockholders of the Company, however called, and in
any action taken by the written consent of stockholders of the Company without a
meeting, Stockholder will appear at the meeting or otherwise cause the Shares to
be counted as present thereat for purposes of establishing a quorum and vote or
consent or cause to be voted or consented the Shares:

            (i) in favor of the adoption and approval of the Merger Agreement,
            the Merger and the other transactions contemplated by the Merger
            Agreement, and, to the extent that a vote is solicited in connection
            with this Agreement or the Merger Agreement, any other action
            required or desirable in furtherance hereof or thereof;

            (ii) to the extent a vote is solicited in connection with the
            approval of any action, agreement or proposal that would result in a
            breach of any representation, warranty, covenant or obligation of
            the Company in the Merger Agreement or that would delay or hinder
            the consummation of the Merger or that would preclude fulfillment of
            a condition precedent to the Closing under the Merger Agreement,
            against the approval of such action, agreement or proposal; and

            (iii) against approval of any action, agreement or proposal made in
            opposition to or in competition with the Merger, including, without
            limitation, any Company Takeover Proposal or Superior Proposal.

            (b) Prior to the Termination Date, Stockholder will not enter into
any agreement or understanding with any person to vote or give instructions in
any manner inconsistent with any provision of this Section 4.1.

            4.2 Irrevocable Proxy. Subject to the limitations and covenants on
Schedule B hereto, contemporaneously with the execution of this Agreement,
Stockholder will deliver to Parent a proxy with respect to Stockholder's Shares
in the form attached hereto as Exhibit 1, which proxy will be irrevocable to the
fullest extent permitted by applicable Law (the "Proxy"), except that the Proxy
shall be automatically revoked upon termination of this Agreement in accordance
with its terms.

            4.3 Transfer and Other Restrictions. Subject to the limitations and
covenants on Schedule B hereto,

<PAGE>

            (a) From the date hereof until the Termination Date, Stockholder
agrees not to, directly or indirectly:

            (i) Transfer any or all of the Shares or any interest therein;

            (ii) grant any proxy, power of attorney, deposit any Shares into a
            voting trust or enter into a voting agreement or arrangement with
            respect to the Shares, except as provided in this Agreement; or

            (iii) take any other action that would make any representation or
            warranty of Stockholder contained herein untrue or incorrect or have
            the effect of preventing or disabling Stockholder from performing
            its obligations under this Agreement.

            (b) Stockholder agrees with, and covenants to, Parent that
Stockholder shall not request that the Company register the Transfer (book-entry
or otherwise) of any certificate or uncertificated interest representing any
Shares.

            4.4 Adjustments. Subject to the limitations and covenants on
Schedule B hereto,

            (a) In the event (i) of any stock dividend, stock split,
recapitalization, reclassification, combination or exchange of shares of capital
stock or other securities of the Company on, of or affecting the Shares, or the
like, or any other action that would have the effect of changing Stockholder's
ownership of the Company's capital stock or other securities or (ii) Stockholder
becomes the beneficial owner of any additional capital stock of the Company or
other securities of the Company, then the terms of this Agreement will apply to
the shares of capital stock held by Stockholder immediately following the
effectiveness of the events described in clause (i) or Stockholder becoming the
beneficial owner thereof, as described in clause (ii), as though they were
Shares of Stockholder hereunder.

            (b) Stockholder hereby agrees to promptly notify the Company and
Parent of the number of any new shares of Company Common Stock or other
securities of the Company acquired by Stockholder after the date hereof.

            4.5 Acquisition Proposals. Subject to the limitations and covenants
on Schedule B hereto,

            (a) Stockholder, shall, and, if applicable, shall cause its
subsidiaries, and its and their officers, directors, employees, financial
advisors, attorneys, accountants and other advisors, investment bankers,
representatives and agents retained by Stockholder or any of its subsidiaries
(collectively, "Representatives") to, immediately cease and cause to be
terminated immediately all existing activities, discussions and negotiations
with any parties conducted heretofore with respect to, or that could reasonably
be expected to lead to, any Company Takeover Proposal.

            (b) Stockholder, shall not, nor shall it permit any of its
subsidiaries and its and their Representatives to, directly or indirectly (i)
solicit, initiate or encourage (including by way of furnishing information) or
take any other action designed to facilitate, any inquiries or the making of any
proposal that constitutes, or would be reasonably likely to lead to, a Company
Takeover Proposal, (ii) enter into any agreement, arrangement or understanding
with respect to any Company Takeover Proposal or enter into any agreement,
arrangement or understanding requiring the Company to abandon, terminate or fail
to consummate the Merger or any other transaction contemplated by the Merger
Agreement, or (iii) initiate or participate in any way in any discussions or
negotiations regarding, or furnish or disclose to any person (other than a party
to this Agreement) any information with respect to, or take any other action to
facilitate or in furtherance of any inquires or the making of any proposal that
constitutes, or could reasonably be expected to lead to, any Company Takeover
Proposal.

<PAGE>

            (c) Stockholder shall promptly (but in any event within one calendar
day) advise Parent in writing of the receipt, directly or indirectly, of any
inquiries, requests, discussions, negotiations or proposals relating to a
Company Takeover Proposal, or any request for nonpublic information relating to
any of the Company Entities by any person that informs Stockholder or its
Representatives that such person is considering making, or has made, a Company
Takeover Proposal, or an inquiry from a person seeking to have discussions or
negotiations relating to a possible Company Takeover Proposal. Such notice shall
be made orally and confirmed in writing, and shall indicate the specific terms
and conditions thereof and the identity of the other party or parties involved
and promptly furnish to Parent a copy of any such written inquiry, request or
proposal and copies of any information provided to or by any third party
relating thereto. Stockholder agrees that it shall keep Parent fully informed of
the status and details (including amendments and proposed amendments) of any
such request or information requested of Stockholder, including by providing a
copy of all material documentation or correspondence relating thereto.

      5. Standstill. Subject to the limitations and covenants on Schedule B
hereto, Stockholder agrees that from the date hereof until the Termination Date
(the "Standstill Period"), except with Parent's prior written consent, neither
the Stockholder, nor any of its respective representatives or affiliates, will
(a) acquire, or offer, propose or agree to acquire, by purchase or otherwise,
any securities of Parent entitled to be voted generally in the election of
directors of Parent or any direct or indirect options or other rights to acquire
any such securities ("Voting Securities) or (b) participate in or encourage the
formation of any partnership, syndicate or other group which owns or seeks or
offers to acquire beneficial ownership of any such Voting Securities.

      6. Miscellaneous.

            6.1 Further Assurances. The parties shall execute such further
instruments and take such further actions as may reasonably be necessary to
carry out the intent of this Agreement. Each party hereto shall cooperate with
the other party hereto, to the extent reasonably requested by such party, to
enforce rights and obligations herein provided.

            6.2 Limitation. Subject to the limitations and covenants on Schedule
B hereto, Stockholder will retain at all times the right to vote Stockholder's
Shares, in Stockholder's sole discretion, on all matters, other than those set
forth in Section 4.1, which are at any time or from time to time presented to
the Company's stockholders generally.

            6.3 Severability. If any term or other provision of this Agreement
is invalid, illegal or incapable of being enforced by any rule of law or public
policy, all other conditions and provisions of this Agreement will nevertheless
remain in full force and effect. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties hereto
shall negotiate in good faith to modify this Agreement so as to effect the
original intent of the parties as closely as possible to the fullest extent
permitted by applicable law in an acceptable manner to the end that the
transactions contemplated hereby are fulfilled to the extent possible.

            6.4 Amendment. This Agreement may not be amended except by an
instrument in writing signed on behalf of each of the parties.

            6.5 Extension; Waiver. Either Parent, on the one hand, or
Stockholder, on the other hand, may (a) extend the time for the performance of
any of the obligations or other acts of the other party, (b) waive any
inaccuracies in the representations and warranties of the other party contained
in this Agreement, or (c) waive compliance by the other party with any of the
agreements contained in this Agreement. Any agreement on the part of a party to
any such extension or waiver will be valid only if set forth in an instrument in
writing signed on behalf of such party. The failure of any party to this
Agreement to assert any of its rights under this Agreement or otherwise will not
constitute a waiver of such rights.

<PAGE>

            6.6 Entire Agreement; No Third Party Beneficiaries. This Agreement
constitutes the entire agreement, and supersedes all prior agreements and
understandings, both written and oral, among the parties with respect to the
subject matter of this Agreement and is not intended to confer upon any person
other than the parties any rights or remedies.

            6.7 Assignment. Neither this Agreement nor any of the rights,
interests or obligations under this Agreement may be assigned, in whole or in
part, by operation of law or otherwise by any of the parties hereto without the
prior written consent of each other party. Any assignment in violation of this
Section 6.7 will be void and of no effect. Subject to the preceding two
sentences, this Agreement is binding upon, inures to the benefit of, and is
enforceable by, the parties and their respective successors and assigns.

            6.8 Governing Law. This Agreement is to be governed by, and
construed in accordance with, the laws of the State of Delaware, regardless of
the laws that might otherwise govern under applicable principles of conflict of
laws thereof.

            6.9 Jurisdiction. Each of the parties hereto (a) consents to submit
itself to the personal jurisdiction of the state and federal courts of the State
of Delaware in the event any dispute arises out of this Agreement or any of the
transactions contemplated by this Agreement, (b) agrees that it will not attempt
to deny or defeat such personal jurisdiction by motion or other request for
leave from any such court and (c) agrees that it will not bring any action
relating to this Agreement or any of the transactions contemplated by this
Agreement in any other court.

            6.10 Notices. All notices, requests, claims, demands and other
communications under this Agreement must be in writing and will be deemed given
if delivered personally, telecopied (which is confirmed) or sent by a nationally
recognized overnight courier service (providing proof of delivery) to the
parties at the following addresses (or at such other address for a party as is
specified by like notice):

      If to Parent:

            CTS Corporation
            905 West Boulevard North
            Elkhart, Indiana 46514
            Telecopy No.:  (574) 294-6151
            Attention: General Counsel

      With a copy (which shall not constitute notice) to:

            Jones Day
            North Point
            901 Lakeside Avenue
            Cleveland, Ohio 44114
            Attention:  Lyle G. Ganske
            Telecopy No.: (216) 579-0212

<PAGE>

      If to Stockholder:

            At the address (or Telecopy Number) set forth on the signature pages
            hereto

      With a copy (which shall not constitute notice) to:

            TMW Enterprises, Inc.
            2120 Austin Avenue
            Rochester Hills, MI 48309
            Attention:  Robert T. Howard
            Telecopy No.: (248) 844-0172

            6.11 Specific Enforcement. The parties agree that irreparable damage
would occur in the event that any of the provisions of this Agreement were not
performed in accordance with their specific terms or were otherwise breached.
The parties accordingly agree that the parties will be entitled to an injunction
or injunctions to prevent breaches of this Agreement and to enforce specifically
the terms and provisions of this Agreement in any federal court located in the
State of Delaware or a Delaware state court, this being in addition to any other
remedy to which they are entitled at law or in equity.

            6.12 Counterparts. This Agreement may be executed in one or more
counterparts, all of which will be considered one and the same agreement and
will become effective when one or more counterparts have been signed by each of
the parties and delivered to the other parties.

            6.13 Interpretation. When a reference is made in this Agreement to
an Article, Section or Exhibit, such reference is to an Article or Section of,
or an Exhibit to, this Agreement unless otherwise indicated. The headings
contained in this Agreement are for reference purposes only and do not affect in
any way the meaning or interpretation of this Agreement. In the event an
ambiguity or question of intent or interpretation, this Agreement shall be
construed as if drafted jointly by the parties and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Agreement. No provision of this Agreement will be
interpreted in favor of, or against any of the parties hereto by reason of the
extent to which any such party or its counsel participated in the drafting
thereof or by reason of the extent to which any such provision is inconsistent
with any prior draft hereof or thereof.

            6.14 Fees and Expenses. All fees and expenses incurred in connection
with this Agreement shall be paid by the party incurring such fees and expenses.

            6.15 Nonsurvival of Representations and Warranties. None of the
representations, warranties, covenants and agreement in this Agreement will
survive the Termination Date; except (a) the covenants and agreements contained
in Section 4.4, Article 5 and Article 6 each of which will survive for the
period set forth in Article 5 and (b) that the termination of this Agreement
shall not relieve any party from any liability for any breach of this Agreement
that has occurred prior to the termination of this Agreement.

                           [Intentionally Left Blank]

<PAGE>

      IN WITNESS WHEREOF, the undersigned parties have executed this Agreement
as of the date first above written.

                                             CTS CORPORATION

                                             By: /s/ Donald K. Schwanz
                                                 -------------------------------
                                                 Name: Donald K. Schwanz
                                                 Title: President and
                                                        Chief Executive Officer

                                             STOCKHOLDER

                                             By:  /s/ Thomas M. Wheeler
                                                  ------------------------------
                                             Name: Thomas M. Wheeler
                                             Title: Trustee, Thomas M. Wheeler
                                                    Trust U/T/D 4/9/86
<PAGE>

                                   SCHEDULE A

<TABLE>
<CAPTION>
NAME                                                 NUMBER OF SHARES
----                                                 ----------------
<S>                                                  <C>
Thomas M. Wheeler, as Trustee of                         881,812
Thomas M. Wheeler Trust U/T/D 4/9/86
</TABLE>

<PAGE>

                                   SCHEDULE B

      Stockholder is the legal owner of the Shares. However, Stockholder has
granted to third parties one or more options to purchase, an aggregate of 97,000
of Stockholder's Shares ("collectively, the "Options"). As of the date of this
Agreement, none of the Options have been exercised.

      The Options obligate Stockholder to deliver unencumbered shares of Company
Common Stock to the Option holders upon their exercise of the Options. As a
result, each of the Option holders may be a beneficial owner of that portion of
Stockholder's Shares which are the subject of their applicable Option.

      With respect to Shares covered by the Options, the parties hereto agree
that Stockholder may transfer and deliver any Shares subject to an Option upon
an Option holder's exercise of such Option, whether before or after the record
date for a stockholder's meeting (including any meeting for the same purpose
after an adjournment thereof) for the purpose of voting on any subject covered
by Section 4.1 of this Agreement (a "Stockholder's Meeting"); provided, however,
that to the extent that Stockholder remains the holder of record for any such
Shares at such Stockholders' Meeting, Stockholder shall vote such Shares in
accordance with the provisions of Section 4.1 of this Agreement.

<PAGE>

                                                                       Exhibit 1

                                IRREVOCABLE PROXY

            The undersigned stockholder (the "Stockholder") of SMTEK
International, Inc., a Delaware corporation (the "Company") hereby irrevocably
(to the fullest extent permitted by applicable law) appoints and constitutes
those officers of CTS Corporation, an Indiana corporation ("Parent") designated
by Parent in writing and each of them (collectively, the "Proxyholders"), the
agents, attorneys and proxies of the undersigned, with full power of
substitution and resubstitution, to the fullest extent of the undersigned's
rights with respect to (i) the shares of capital stock of the Company
beneficially owned (as defined in Rule 13d-3 under the Securities Exchange Act
of 1934, as amended) by the undersigned as of the date of this proxy, which
shares are specified on Schedule A to the Stockholder's Agreement (as defined
below), provided, however, that such proxy shall not apply to any shares of
capital stock of the Company transferred to third parties as contemplated by
Schedule B to the Stockholder's Agreement for which the Stockholder is no longer
the holder of record; (ii) any and all other shares of capital stock of the
Company with respect to which the undersigned shall become the record or
beneficial owner or over which the undersigned shall otherwise exercise voting
power after the date hereof, including, without limitation, in the event of a
dividend or distribution of capital stock of the Company, or any change in the
Company's capital stock by reason of any stock dividend, split-up,
recapitalization, combination, exchange of shares or the like, all shares of the
Company's capital stock issued or distributed pursuant to such stock dividends
and distributions and any shares of the Company's capital stock into which or
for which any or all of the shares otherwise held by the undersigned may be so
changed or exchanged. (The shares of the capital stock of the Company referred
in clauses (i) and (ii) of the immediately preceding sentence are collectively
referred to as the "Shares"). Upon the execution hereof, all prior proxies given
by the undersigned with respect to any of the Shares are hereby revoked, and no
subsequent proxies will be given with respect to any of the Shares until such
time as this proxy shall be terminated in accordance with its terms.

            The Proxyholders named above will be empowered, and may exercise
this proxy, to vote the Shares at any time until the Termination Date (as
defined in the Stockholder's Agreement dated as of the date hereof, between
Parent and the undersigned (the "Stockholder's Agreement")) at any meeting
(whether annual or special and whether or not an adjourned or postponed meeting)
of the stockholders of the Company, however called, and in any action taken by
the written consent of the stockholders of the Company without a meeting with
respect to the following matters and only the following matters:

            (i) in favor of the adoption and approval of the Agreement and Plan
            of Merger Agreement, dated November 16, 2004, by and among Parent,
            the Company and Cardinal Acquisition, Inc. (the "Merger Agreement")
            and the Merger (as defined in the Merger Agreement) and the other
            transactions contemplated by the Merger Agreement, and, to the
            extent that a vote is solicited in connection with the Stockholder's
            Agreement or the Merger Agreement, any other action required or
            desirable in furtherance hereof or thereof;

            (ii) to the extent a vote is solicited in connection with the
            approval of any action, agreement or proposal that would result in a
            breach of any representation, warranty, covenant or obligation of
            the Company in the Merger Agreement or that would delay or hinder
            the consummation of the Merger or that would preclude fulfillment of
            a condition precedent to the Closing under the Merger Agreement,
            against the approval of such action, agreement or proposal; and

            (iii) against approval of any action, agreement or proposal made in
            opposition to or in competition with the Merger, including, without
            limitation, any Company Takeover Proposal (as defined in the Merger
            Agreement) or Superior Proposal (as defined in the Merger
            Agreement).

            The Proxyholders may not exercise this proxy on any other matter.
The Stockholder may vote the Shares on all such other matters. The proxy granted
by the Stockholder to the Proxyholders hereby is granted as of the date of this
Irrevocable Proxy in order to secure the obligations of the Stockholder set
forth in Section 4.1 of the Stockholder's Agreement.

<PAGE>

            This proxy will terminate upon the termination of the Stockholder's
Agreement in accordance with its terms. Any obligation of the undersigned
hereunder shall be binding upon the successors and assigns of the undersigned.
The undersigned Stockholder authorizes the Proxyholders to file this proxy and
any substitution or revocation of substitution with the Secretary of the Company
and with any Inspector of Elections at any meeting of the stockholders of the
Company.

            This proxy is irrevocable, is coupled with an interest, and shall
survive the insolvency, incapacity, death or liquidation of the undersigned and
will be binding upon the heirs, successors and assigns of the undersigned
(including any transferee of any of the Shares).

Dated: November 16, 2004

                                           STOCKHOLDER

                                           By: /s/ Thomas M. Wheeler
                                               --------------------------------
                                                    Thomas M. Wheeler
                                                    Trustee, Thomas M. Wheeler
                                                    Trust U/T/D 4/9/86

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