Document:

Exhibit 10.10

A.T. Cross Company

Incentive Compensation Plan - 2007

Introduction

The following Incentive Plan (the "Plan") will be implemented for 2007.  The purpose of the Plan is to drive participants towards achievement of Quality Writing Instrument's Segment (QWI) goals, and to motivate, retain and reward participants.  For 2007, the Plan will calculate incentive awards for all participants based on the achievement of annual QWI financial and individual objectives.  For 2007, the QWI financial objective will be operating income before taxes (OIBT) as defined below.  All other performance objectives and weighting of the QWI and individual bonus segments will be determined based on individual responsibilities (including but not limited to net sales, profit, programs and/or projects), and agreed upon by the President and CEO with the appropriate Vice President.

Performance Measures

OIBT is the sole driver of the award.  The QWI incentive award will be established based on the achievement matrix (example on page 2) of OIBT.

Determination of Bonus Amounts

As indicated above, each participant is assigned a bonus weighting that is split between QWI objectives and individual objectives.  The QWI weighting can range from 0 to 100 percent, considering the role of the individual participant, the company's annual objectives and the Company's long term strategy.  For 2007, most participants who are at the director level or above will have a 100 percent weighting on achievement of QWI objectives.

The two segments of the bonus (QWI objectives and individual objectives) are calculated as follows:

Individual Objectives bonus for participants with an individual objectives weighting

Each individual objective will be evaluated on the following scale:

	
	
Modifier for Achievement of Individual Objectives

	
	
	

	
	
Objective Rating
	
Multiplier

	
	
	

	
	
Did Not Achieve
	
0.00

	
	
Achieved Most Results
	
0.50

	
	
Achieved All Results
	
1.00

	
	
Exceeded Some Results
	
1.20

	
	
Exceeded All*
	
1.40

*The "Exceeded All" rating will be reserved for use by the President/CEO and responsible Vice President

For each participant, a rating and associated multiplier is assigned to each objective.  A weighted average multiplier is then calculated.  Once the weighted average multiplier is determined, the individual objective segment bonus is calculated as follows:

	
Calculation
	
Example

	
Base Pay of Participant
	
$80,000

	
X
	
X

	
Target Bonus Percentage of Participant
	
15 %

	
X
	
X

	
Weighting of Individual Objective Segment of Participant
	
25%

	
X
	
X

	
Weighted Average Multiplier
	
1.00

	
	
$3,000

QWI Objectives bonus for participants with QWI weighting

The QWI incentive pool is created when certain levels of OIBT are achieved.  Based on the level of QWI achievement, and considering the achievement matrix (payout multiples will be interpolated), participant bonuses are calculated as follows:

	
Calculation
	
Example

	
Base Pay of Participant
	
$80,000

	
X
	
X

	
Target Bonus Percentage of Participant
	
15 %

	
X
	
X

	
Weighting of QWI Objective Segment of Participant
	
75%

	
X
	
X

	
Payout Multiple from QWI 

Objectives Achievement Matrix
	
100%

	
X
	
X

	
Individual Objective Weighted Average Multiplier 

(as previously described)
	
1.00

	
	
$12,000

 

Example Only:

	
QWI Objectives Achievement Matrix

	
Pre-Bonus
	
Less than $15MM
	
0%
	
Percent

	
OIBT
	
$15MM - $25MM
	
50%
	
of

	
Achievement
	
$25MM - $35MM
	
80%
	
Pool

	
of Plan
	
$35 MM +
	
110%
	
Funded

For all participants, the Individual Objectives bonus and the QWI Objectives bonus are combined to calculate the total bonus payout. Payments under the QWI bonus segment will only be paid to participants with Individual Objectives when the ratio of actual bonus to target bonus for 100% QWI Objectives  bonus segment participants exceeds the ratio that was paid to participants under the Individual Bonus Segment.

Eligibility

All executives and exempt staff with base pay greater than $60,000 who are actively employed on fiscal year end of the plan year are eligible to participate.  The eligibility criteria are based on competitive market review.

Target Bonus Levels

Target bonus incentives will be expressed as a percentage of base salary earned during the year.  Target Bonus Percentages are based on market data regarding competitive compensation levels.  Minimum and maximum incentive levels will be determined by the size of the QWI incentive pool and performance on business unit/territory/region and individual/other goals.  Incentive percentage levels at threshold achievement will be approximately 10 percent of target and approximately 150 percent at maximum levels of achievement.

	
	
	
Base Salary Range ($000)
	
Target Bonus Percentage 

(as a % of base pay)*

	
	
	
	

	
	
Level A1
	
Greater than $250
	
45%

	
	
Level A
	
$170 - $250
	
35%

	
	
Level B
	
$130 - $170
	
25%

	
	
Level C
	
$100 - $130
	
20%

	
	
Level D
	
  $80 - $100
	
15%

	
	
Level E
	
$60 - $80
	
10%

* Participants grandfathered under a previous plan may have different Target Bonus Percentages.

Payout of Plan Awards

Annual Incentive Awards will be distributed as soon as is practicable after the close of the fiscal year.  Awards, if earned, will be a percent of base salary paid for such fiscal year.  Base salary does not include any bonus payable under this Plan or any other incentive plan, any life insurance premiums, special compensation, pension benefits, or Crossaver savings plan matching allocations.

Changes in Employment Status

Employees who are participants in the Plan for only part of a fiscal year may participate in the Plan for the period or periods of membership on a pro rata basis.  Bonuses will be prorated for employees who participate in more than one bonus level during the year, considering all bonus levels.  However, participants must be actively employed by the Company as of the end of the fiscal year to be eligible for incentive awards relating to that year.

Disability or Death

For participants who become disabled (i.e., eligible for Company LTD benefits) or die while a member of the Plan, awards will be determined in a prorated manner to reflect the period of time the participant was an active member of the Plan.  Payout will be made at the time the normal payout would have been made to the participant or participant's beneficiary(ies) if on file; otherwise, payment will be made to the participant's estate.

Administration

The Compensation Committee of the Board of Directors of A. T. Cross Company, whose decisions in all matters will be final, will administer the Plan.  The Committee reserves the right, subject to the full Board's approval, to modify, amend, or discontinue this Plan at any time.  Any changes or amendments to the Plan will not affect a participant's rights prior to the modification unless the participant provides written consent.

Participation in this Plan does not confer any right to continued employment by A. T. Cross.  Similarly, selection for participation in any one year does not necessarily guarantee participation in future years.  No member of the Compensation Committee shall have any personal liability in connection with the administration of the Plan.  

Definitions

Operating Income Before Taxes (OIBT) Under This Plan

OIBT is defined as the pretax operating income excluding any adjustment for LIFO inventories, restructuring or other non-recurring items, and before allowance for bonus payment under this plan.  The QWI target will be approved by the Board of Directors considering the annual operating plan.

QWI Targets

QWI targets include operations of A.T. Cross Company and subsidiaries, branches and divisions that exist as of January 1, 2007 including Cross retail stores and excluding Costa del Mar.

International Calculations

Participants who are located internationally will have their targets and actual results determined utilizing budgeted exchange rates.  By utilizing budgeted exchange rates, there will be neither a favorable nor unfavorable impact as a result of fluctuations in foreign exchange.  Also, participants who operate in a single country will be measured using local currency, while participants who operate in multiple countries will be measured in United States dollars (utilizing budgeted exchange rates) on a consolidated basis.Exhibit 10.a

    EXHIBIT
      10(a)

    

      

        FIRST
          AMENDMENT AND WAIVER TO CREDIT AGREEMENT

         

        First
          Amendment and Waiver
          to
          Credit Agreement dated as of March 13, 2007 (this “Amendment”),
          among
          CTS CORPORATION, an Indiana corporation (the “Borrower”),
          the
          guarantors party hereto, the financial institutions listed on the signature
          pages hereof as Lenders and HARRIS N.A. (“Harris”),
          as
          administrative agent (in such capacity, the “Administrative
          Agent”).

         

        W
          I T N E
          S S E T H:

         

        WHEREAS,
          the Borrower, the guarantors party thereto (the “Guarantors”),
          the
          financial institutions listed on the signature pages thereof as Lenders
          and the
          Administrative Agent have heretofore entered into that certain Credit Agreement,
          dated as of June 27, 2006 (as amended, the “Credit
          Agreement”),
          among
          the Borrower, the Guarantors party thereto, the Lenders party thereto,
          and
          Harris, as L/C Issuer and Administrative Agent; and

         

        WHEREAS,
          the Borrower has requested an amendment and waiver to certain provisions
          of the
          Credit Agreement and the Lenders and the Administrative Agent are willing
          to do
          so on the terms and conditions set forth in this Amendment.

         

        NOW,
          THEREFORE, in consideration of the premises set forth above, the terms
          and
          conditions contained herein and other good and valuable consideration,
          the
          receipt and sufficiency of which are hereby acknowledged, the parties hereto
          agree as follows:

         

        

        ARTICLE
          I.

        DEFINITIONS

         

        SECTION
          1.1     Use
          of
          Defined Terms.
          Unless
          otherwise defined or the context otherwise requires, terms for which meanings
          are provided in the Credit Agreement shall have such meanings when used
          in this
          Amendment.

         

        ARTICLE
          II.

        AMENDMENT

         

        SECTION
          2.1     Section 9.1(f)(ii)
          of the Credit Agreement is hereby amended by deleting the proviso appearing
          at
          the end thereof and inserting in its place the following:

         

        provided
          that
          the
          redemption, purchase or conversion of the Notes by the Borrower under
          sections 3, 4 or 12 of the Subordinated Indenture shall not constitute an
          Event of Default hereunder;

         

        

         

        ARTICLE
          III. 

        WAIVER

         

        Notwithstanding
          anything to the contrary contained in Sections 8.5(a), (b) and (c) of the
          Credit Agreement, the Lenders hereby waive the requirement for the Borrower
          to
          deliver the (w) quarterly financial statements as set forth in
          Section 8.5(a), (x) annual financial statements as set forth in
          Section 8.5(b), (y) auditor certifications as set forth in
          Section 8.5(c) and (z) compliance certificate as set forth in
          Section 8.5(j), in each case as required to be delivered pursuant to
          Section 8.5 of the Credit Agreement for the fiscal quarter of the Borrower
          ending April 1, 2007 and for the fiscal year of the Borrower ended December
          31, 2006 until June 30, 2007. 

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        

         

        ARTICLE
          IV.

        REPRESENTATIONS
          AND WARRANTIES

         

        In
          order
          to induce the Lenders and the Administrative Agent to enter into this Amendment,
          the Borrower hereby reaffirms, as of the date hereof, its representations
          and
          warranties contained in Section 6 of the Credit Agreement, except to the
          extent qualified by the Borrower’s Current Report on Form 8-K filed with
          the Securities and Exchange Commission on February 9, 2007, and
          additionally represents and warrants to the Administrative Agent and each
          Lender
          as set forth in this Article
          III.

         

        SECTION
          4.1     Due
          Authorization, Non-Contravention, etc.
          The
          execution, delivery and performance by the Borrower of this Amendment are
          within
          the Borrower’s powers, have been duly authorized by all necessary corporate
          action, and do not:

         

        (a)
          contravene the Borrower’s constituent documents;

         

        (b)
          contravene any contractual restriction, law or governmental regulation
          or court
          decree or order
          binding on or affecting the Borrower; or

         

        (c)
          result in, or require the creation or imposition of, any Lien on any of
          the
          Borrower’s properties.

         

        SECTION
          4.2     Government
          Approval, Regulation, etc.
          No
          authorization or approval or other action by, and no notice to or filing
          with,
          any governmental authority or regulatory body or other Person is required
          for
          the due execution, delivery or performance by the Borrower of this
          Amendment.

         

        SECTION
          4.3     Validity,
          etc.
          This
          Amendment constitutes the legal, valid and binding obligation of the Borrower
          enforceable in accordance with its terms.

         

        

         

        ARTICLE
          V.

        CONDITIONS
          PRECEDENT

         

        SECTION
          5.1     Effectiveness.
          The
          effectiveness of this Amendment is subject to the execution and delivery
          of this
          Amendment by the Borrower, the Guarantors, the Administrative Agent, and
          the
          Required Lenders. 

         

        

         

        ARTICLE
          VI.

        MISCELLANEOUS
          PROVISIONS

         

        SECTION
          6.1     Ratification
          of and References to the Credit Agreement.
          The
          Credit Agreement is hereby ratified, approved and confirmed in each and
          every
          respect.

         

        SECTION
          6.2     Headings.
          The
          various headings of this Amendment are for convenience of reference only,
          are
          not part of this Amendment and shall not affect the construction of, or
          be taken
          into consideration in interpreting, this Amendment.

         

        SECTION
          6.3     Execution
          in Counterparts.
          This
          Amendment may be executed in counterparts (and by different parties hereto
          on
          different counterparts), each of which shall constitute an original, but
          all of
          which when taken together shall constitute a single agreement.

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        SECTION
          6.4      No
          Other Amendment.
          Except
          for the amendment and waiver expressly set forth above, the text of the
          Credit
          Agreement and the other Loan Documents shall remain unchanged and in full
          force
          and effect, and the Lenders and the Administrative Agent expressly reserve
          the
          right to require strict compliance with the terms of the Credit Agreement
          and
          the other Loan Documents.

         

        SECTION
          6.5     Governing
          Law; Entire Agreement.
          THIS
          AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW
          OF THE
          STATE OF ILLINOIS. 

         

        [THE
          REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        IN
          WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
          executed and delivered by their respective officers thereunto duly authorized
          as
          of the day and year first above written.

         

        “Borrower”

        

        CTS
          Corporation,

        an
          Indiana corporation

        

        

        By  /s/
          Matthew W. Long       

        Name:
          Matthew W. Long

        Title:
          Treasurer

         

        “Guarantors”

        

        CTS
          Corporation,

        a
          Delaware corporation

        

        

        By  /s/
          Matthew W. Long       

        Name:
          Matthew W. Long

        Title:
          Treasurer

         

        CTS
          Electronic Components, Inc.

         

        By  /s/
          Richard G. Cutter       

        Name:
          Richard G. Cutter

        Title:
          Vice President and Secretary

         

        Dynamics
          Corporation of America

         

        By  /s/
          Matthew W. Long       

        Name:
          Matthew W. Long

        Title:
          Vice President and Treasurer

         

        LTB
          Investment Corporation

         

        By  /s/
          Matthew W. Long       

        Name:
          Matthew W. Long

        Title:
          Vice President and Treasurer

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        CTS
          Electronics Manufacturing Solutions, Inc. 

         

        By  /s/
          Richard G. Cutter       

        Name:
          Richard G. Cutter

        Title:
          Vice President and Secretary

         

        CTS
          Electronics Manufacturing Solutions (Santa
          Clara), Inc.

         

        By  /s/
          Richard G. Cutter       

        Name:
          Richard G. Cutter

        Title:
          Vice President and Secretary

         

        CTS
          Electronics Manufacturing Solutions
          (Moorpark), Inc.

         

        By  /s/
          Richard G. Cutter           

        Name:
          Richard G. Cutter

        Title:
          Vice President and Secretary

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        “Lenders”

         

        Harris
          N.A.,
          in its
          individual capacity as a Lender, as L/C Issuer, and as Administrative
          Agent

         

        By  /s/
          Thad D. Rasche       

        Name:
          Thad D. Rasche

        Title:
          Director

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        National
          City Bank of Indiana

         

        By  /s/
          Chris D. Thornton           

        Name:
          Chris D. Thornton

        Title:
          Vice President

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        The
          Northern Trust Company

         

        By  /s/
          Jared T. Hall            

        Name:
          Jared T. Hall

        Title:
          Vice President

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        Comerica
          Bank

         

        By  /s/
          Catherine M. Young      

        Name:
          Catherine M. Young

        Title:
          Vice President

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        LaSalle
          Bank National Association

         

        By  /s/
          John  Beardslee        

        Name:
          John  Beardslee

        Title:
          Senior Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}]]