Document:

ex_10bb.htm

    CTS
Corporation

    Form
10-K

    
      Fourth
Quarter 2008

    

    
      

      

    

    

    EXHIBIT
(10)(bb)

    
      

    

    
      

    

    
      Second
Amendment

    

    
      to
the CTS Corporation Pension Plan

    

    
      (Amended
and Restated Effective May 1, 2006 

      and dated
February 4, 2005)

    

    
      

       

       

      Whereas, CTS Corporation (the
"Company") maintains the CTS Corporation Pension Plan (the "Merged Plan") for
the benefit of its eligible employees;

    

    
       

      Whereas, the Merged Plan has
been amended and restated effective May 1, 2006 and most recently dated February
4, 2005;

    

    
       

      Whereas, under section 9.1 of
the Merged Plan, the Company reserves the right to amend, modify, suspend, or
terminate the Merged Plan at any time by resolution of the Board of Directors;
and

    

    
       

      Whereas, the Electromechanical
Division of the Company maintains the CTS Corporation Retirement Plan as adopted
by the Electromechanical Division (the "Electromechanical Division Plan") (as
amended and restated effective March 1, 2005 and most recently dated February 4,
2005);

    

    
       

      Whereas, the Company maintains
the CTS Corporation Retirement Plan, (the "Corporate Plan") (as amended and
restated effective March 1, 2005 and most recently dated February
4, 2005);

    

    
       

      Whereas, effective December
31, 2008, the Company will merge the Electromechanical Division Plan and the
Corporate Plan into the Merged Plan;

    

    
       

      Whereas, the assets and
liabilities of the Electromechanical Division Plan and the Corporate Plan will
be transferred to the Merged Plan on or about December
31,2008;

    

    
       

      Whereas, under section 9.1 of
the Merged Plan, the Company reserves the right to amend, modify, suspend, or
terminate the Merged Plan at any time by resolution of the Board of Directors;
and

    

    
       

      Whereas, the Company desires
to amend the Merged Plan to reflect the merger and make an amendment to bring
the Merged Plan into documentary compliance.

    

    
       

      Now,
therefore, the Merged
Plan is amended as follows, effective December 31, 2008, unless otherwise
provided:

    

    
       

      
        	
                 1.
      

              	
                Effective
      as of December 31, 2008, Appendix E to the Merged Plan shall be
      established and shall consist of the pre-merger Electromechanical Plan
      document (as amended and restated effective March 1, 2005 and most
      recently dated February 4, 2005) and shall represent a complete set of
      provisions applicable to employees and participants to which Appendix E
      applies.

              

      

    

    
       

      
        	
                2.  

              	
                Effective
      as of December 31,2008, Appendix F to the Merged Plan shall be
      established and shall consist of the pre-merger Corporate Plan
      document (as amended and restated effective March 1, 2005 and most
      recently dated February 4, 2005) and shall represent a complete set
      of provisions applicable to employees and participants to which Appendix
      F applies.

              

      

    

    
       

        
3.  Section
1.1 of the Merged Plan is amended in its entirety as follows:

    

    
      

       

      "1.1
Establishment of the Plan

       

    

    
      
        	
                (a)  

              	
                On
      August 13, 1957, CTS Corporation established a pension plan, and as may
      be amended from time to time, was known as the "CTS Corporation
      Salaried Employees' Pension Plan" (hereinafter referred to as the
      "Plan").

              

      

    

    
       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      
        	
                (b)  

              	
                The
      Company, through its Resistor Network Division, also maintains the CTS
      Corporation Retirement Plan as adopted by the Resistor Network Division
      (the "Resistor Network Division Plan"). The Company, through its Asheville
      Division, Electromechanical Group, further maintains the CTS
      Corporation Retirement Plan, as adopted by the Asheville Division,
      Electromechanical Group (the "Asheville Division Plan"). The Resistor
      Network Division Plan and the Asheville Division Plan was merged into
      the Plan as of December 31, 2002. The assets and liabilities of the
      Resistor Network Division Plan and the Asheville Division Plan were merged
      into this Plan at such time. The post-merger surviving plan was renamed
      the CTS Corporation Pension Plan (the "Plan," effective December 31,
      2002), and applies to certain salaried and hourly employees who satisfy
      the requirements for
participation.

              

      

    

    
       

      
        	
                 (c
      )   

              	
                The
      Company, through its Electromechanical Division, also maintains the CTS
      Corporation Retirement Plan as adopted by the Electromechanical Division
      (the "Electromechanical Division Plan"). The Company, further maintains
      the CTS Corporation Retirement Plan (the "Corporate Plan"). The
      Electromechanical Division Plan and the Corporate Plan will be merged
      into this Plan as of December
      31, 2008. The assets and liabilities of the Electromechanical
      Division Plan and the Corporate Plan will be merged into this Plan at
      such time. The post-merger Plan applies to certain salaried and hourly
      employees who satisfy the requirements for
      participation.

              

      

    

    
       

      Effective
as of the 2008 merger, the Merged Plan document shall contain new Appendix E,
which shall be the prior Electromechanical Division Plan document and shall
represent a complete set of provisions applicable to employees and participants
to which Appendix E applies. Also effective as of the merger, the Merged Plan
document shall contain new Appendix F, which shall be the prior Corporate Plan
document and shall represent a complete set of provisions applicable to
employees and participants to which Appendix F applies.

    

    
       

      Notwithstanding
the foregoing, the Merged Plan contained in this document and Appendix A through
F is intended to be a "single plan" as such term is defined IRS regulation
section 1.414(l)-l(b)(l). All of the assets of the Merged Plan shall be
available to provide benefits under the Merged Plan. In the discretion of the
Administrator, separate accounting may be maintained for various divisions of
the Company participating in the Merged Plan for purposes of cost allocation,
but separate accounting shall not be maintained for purposes of providing
benefit under the Merged Plan."

    

    
       

       4.   Section
1.4 will be added to the Merged Plan as follows:

    

    
       

      "1.4
Appendices to the Plan

       

    

    
      
        	
                (a)  

              	
                Effective
      December 31, 2002, the Plan document shall contain Appendix C which shall
      consist of the prior plan document for the Resistor Network Division Plan
      (as amended and restated effective December 8, 1994 and most
      recently dated June 12, 2002). Appendix A shall represent a complete
      set of provisions for employees and participants to which the
      Appendix applies.

              

      

    

    
       

      
        	
                (b)  

              	
                Effective
      December 31, 2002, the Plan document shall contain Appendix D which
      shall consist of the prior plan document for the Asheville Division Plan
      (as amended and restated effective December 8, 1994 and most recently
      dated June 12, 2002). Appendix B shall represent a complete set of
      provisions for employees and participants to which the Appendix
      applies."

              

      

    

    
       

      
        	
                (c)  

              	
                Effective
      December 31, 2008 the Plan document shall contain Appendix E
      which shall consist of the prior plan document for the
      Electromechanical Division Plan (as amended and restated effective March
      1, 2005 and most recently dated February 5, 2005). Appendix E shall
      represent a complete set of provisions for employees and participants to
      which the Appendix applies.

              

      

    

    
       

      
        	
                (d)  

              	
                Effective
      December 31, 2008, the Plan document shall contain Appendix F
      which. shall consist of the prior plan document for the Corporate
      Plan (as amended and restated effective March 1, 2005 and most recently
      dated February 5, 2005). Appendix F shall represent a complete set of
      provisions for employees and participants to which the Appendix
      applies.

              

      

    

    
       

      5.   Section
1.1 of Appendix E to the Merged Plan shall be amended in its entirety as
follows:

    

    
       

      "1.1
Establishment of the Plan.

    

    
       

      Effective
July 1, 1950, the Electromechanical Division of CTS Corporation (the "Employer")
established the CTS Corporation Retirement Plan as adopted by the
Electromechanical Division (hereinafter referred to as the "Electromechanical
Division Plan") for the benefit of its hourly employees.

    

    
       

      The
Electromechanical Division Plan was amended and restated effective December 8,
1994 to reflect amendments required by GUST (the Uruguay Round Agreements Act,
Pub. L. 103-465; the Uniformed Services Employment and Reemployment Rights Act
of 1994, Pub. L. 103-353; the Small Business Job Protection Act of 1996, Pub. L.
104-188; the Taxpayer Relief Act of 1997, Pub. L. 105-34; the Internal Revenue
Service Restructuring and Reform Act of 1998, Pub. L. 105-206; the Community
Renewal Tax Relief Act of 2000, Pub. L. 106-554), and other changes deemed
necessary by the Employer. Certain amendments adopted herein with effective
dates of January 1,2002 and, thereafter, reflect provisions of the Economic
Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA"). The amendments for
EGTRRA are intended as good faith compliance with the requirements of EGTRRA and
are to be construed in accordance with EGTRRA and guidance issued
thereunder.

    

    
       

      The
Company also maintains the CTS Corporation Pension Plan. Effective as of
December 31, 2008, the Electromechanical Division Plan shall be merged into the
CTS Corporation Pension Plan, and the assets and liabilities of the
Electromechanical Division Plan will be merged into the CTS Corporation Pension
Plan. The provisions of the post-merger Plan that apply to employees of the
Electromechanical Division of CTS Corporation are within this Plan document,
which shall be Appendix E to the post-merger Merged Plan effective 
December 31, 2008."

    

    
       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      6.   Section
1.1 of Appendix F to the Merged Plan shall be amended in its entirety as
follows:

    

    
       

      "1.1
Establishment of the Plan

    

    
       

      On August
16, 1950, CTS Corporation (the "Employer") established the CTS Corporation
Retirement Plan (the "Corporate Plan"), which Corporate Plan has been amended
and restated from time to time.

    

    
       

      The
Corporate Plan was amended and restated effective December 8, 1994 to reflect
amendments required by GUST (the Uruguay Round Agreements Act, Pub. L. 103-465;
the Uniformed Services Employment and Reemployment Rights Act of 1994, Pub. L.
103-353; the Small Business Job Protection Act of 1996, Pub. L. 104-188; the
Taxpayer Relief Act of 1997, Pub. L. 105-34; the Internal Revenue Service
Restructuring and Reform Act of 1998, Pub. L. 105-206; the Community Renewal Tax
Relief Act of 2000, Pub. L. 106-554), and other changes deemed necessary by the
Employer. Certain amendments adopted herein with effective dates of January
1,2002 and, thereafter, reflect provisions of the Economic Growth and Tax Relief
Reconciliation Act of 2001 ("EGTRRA"). The amendments for EGTRRA are intended as
good faith compliance with the requirements of EGTRRA and are to be construed in
accordance with EGTRRA and guidance issued thereunder.

    

    
       

      The
Company also maintains the CTS Corporation Pension Plan. Effective as of
December 31, 2008, the Plan shall be merged into the CTS Corporation Pension
Plan, and the assets and liabilities of the Corporate Plan will be merged into
the CTS Corporation Pension Plan. The provisions of the post-merger Plan that
apply to employees covered by the Corporate Plan are within this Plan document,
which shall be Appendix F to the post-merger Merged Plan effective December 31,
2008."

    

    
       

      
        	
                7.

              	
                Section
      2. l(g) of each of Appendix C, Appendix D, Appendix E, and Appendix F of
      the Merged Plan shall be amended to add the following new subparagraph
      (iii), effective as of January
1,2004:

              

      

    

    
       

      "(iii) In
accordance with the Pension Funding Equity Act of 2004 ("PFEA") and with Code
Section 415(b)(2)(E)(ii) as in effect prior to the Pension Protection Act
of 2006, the interest rate of 5.5 percent shall be substituted for the
Applicable Interest Rate for Plan Years beginning in 2004 and 2005, in the case
of a payment form subject to the minimum present value requirements of Code
section 417(e)(3); provided however, that the transition rule of PFEA
Section 101 (d)(3) and IRS Notice 2004-78 shall be applied. For Plan Years
beginning on or after January 1, 2006, in the case of a payment form
subject to the minimum present value requirements of Code
section 417(e)(3), the interest rate used to the determine the equivalent
straight
life annuity shall be 5.5 percent or such higher interest rate as described
in Code section 415(b)(2)(E)(ii)."

    

    
       

      
        	
                8.

              	
                Section
      7.5(b) of the Merged Plan is amended to add the following as a new
      paragraph 4, effective as of January
  1, 2004:

              

      

    

    
       

      
        	
              	
                       
      "(4)

              	
                Applicable
      Interest Rate: Notwithstanding anything herein to the contrary, in
      accordance with the Pension Funding Equity Act of 2004 ('TFEA") and with
      Code Section 415(b)(2)(E)(ii) as in effect prior to the Pension Protection
      Act of 2006, the interest rate of 5.5 percent shall be substituted for the
      Applicable Interest Rate for Plan Years beginning in 2004 and 2005, in the
      case of a payment form subject to the minimum present value requirements
      of Code section 417(e)(3); provided however, that the transition rule of
      PFEA Section 101(d)(3) and IRS Notice 2004-78 shall be applied. For Plan
      Years beginning on or after January 1, 2006, in the case of a payment form
      subject to the minimum present value requirements of Code section
      417(e)(3), the interest rate used to the determine the equivalent straight
      life annuity shall be 5.5 percent or such higher interest rate as
      described in Code section
415(b)(2)(E)(ii)."

              

      

    

    
      

    

    
      **********

    

    
      

       

      In Witness Whereof, CTS
Corporation has caused this Amendment to be signed on its behalf and attested by
its duly authorized officers this 23rd day of December,
2008.

    

    
      

       

      
        
          	 	 	 	
                   CTS
      Corporation

                   

                	 
	
                  /s/
      Richard G. Cutter

                	 	 	
                  /s/
      James L. Cummins

                	 
	
                  Name:
      Richard G. Cutter

                	 	 	
                  Name:
      James L. Cummins

                	 
	
                  Its
      Secretary

                	 	 	
                  Its
      Sr. Vice President, Administration

                	 

        

    

    
                                                                                            
(Corporate Seal)

       

    

    
      
         

      

      
        3ex_10cc.htm

    
 

    
      CTS
Corporation

      
        Form
10-K 2008

      

      
        

        

      

      ­­­­EXHIBIT (10)(cc)

    CTS
Corporation

    Amended
and Restated 2008-2009

    Performance
Restricted Stock Unit Plan

     

    

    SECTION 1.   SUMMARY AND INTERPRETATION:
The 2008-2009 Performance Restricted Stock Unit Plan (the "Plan") is
intended to provide financial and performance incentives to executive officers
and key employees through the use of Restricted Stock Unit awards tied to
specific performance incentives that management and the Board believe will be
beneficial to the Company and its shareholders over the long-term. The CTS
Corporation 2004 Omnibus Long-Term Incentive Plan (the “2004 Omnibus Long-Term
Incentive Plan”) is the governing document for the Plan.  Capitalized
terms not otherwise defined herein shall have the meanings set forth in the 2004
Omnibus Long-Term Incentive Plan, as amended. The Plan is subject to the terms
and conditions of the 2004 Omnibus Long-term Incentive Plan.  In the
event of any inconsistency between the provisions of the Plan and the 2004
Omnibus Long-Term Incentive Plan, the 2004 Omnibus Long-Term Incentive Plan will
govern.

    

    SECTION 2.   PHILOSOPHY: The Board of
Directors believes that compensation of executive officers and key employees
should be partially “at risk” and variable, based in part on the Company’s
performance against its peers in the marketplace, as well as the Company’s
performance against certain pre-established goals.  The Plan, along
with other compensation plans of the Company, is intended to focus the efforts
of the Participants on achieving those objectives in order to help ensure the
sustained profitability and continual long-term growth of the
Company.  The Plan is structured to provide Participants with
Restricted Stock Unit Awards based upon achievement of objectives that
management and the Board believe are beneficial to the Company and shareholders
over the long term.  Therefore, performance will be measured over a
two (2) year performance period, and Restricted Stock Units under the Plan will
be awarded and earned only after a two (2) year performance period.

    

    SECTION
3.   OBJECTIVES:

    

    
      	
              ·  

            	
              To
      attract and retain highly qualified
personnel.

            

    

    
      	
              ·  

            	
              To
      motivate improved financial performance, enhanced growth and shareholder
      value creation.

            

    

    
      	
              ·  

            	
              To
      align the interests of executive officers and key employees of the Company
      with those of its shareholders.

            

    

    
SECTION 4.   ADMINISTRATION:  The
Compensation Committee of the Board of Directors (the “Committee”) shall
administer the Plan.  The decision of the Committee shall be final as
to the interpretation of the Plan or any rule, procedure or action related
thereto.

    

    SECTION 5.   ELIGIBILITY: Only the
employees designated by the Committee (the “Participants”) are eligible to
participate in the Plan. The Committee has determined that the Participants
identified in Exhibit A, attached hereto and incorporated herein by reference,
are "Covered Employees" under this Plan.  Awards to Covered Employees
shall be subject to the provisions of Section 7 of the 2004 Omnibus Long-Term
Incentive Plan.

    

    To
receive an Award under the Plan, a Participant must be an active, full-time
employee throughout the Performance Period, as defined in Section
8.

    

    SECTION
6.   DEFINITIONS:

    

    Award:  means a grant of Restricted
Stock Units.

    

    Performance Period: means
January 1, 2008 through December 31, 2009.

    

    Performance Goals: means Two
Year Sales Growth and Relative Total Stockholder Return.

    

    Two Year Sales Growth: means
the 2009 Corporate Sales divided by 2007 Corporate Sales, resulting in the
expression of increase or decrease in Corporate Sales as a
percentage.

    

    Corporate Sales: means the
Company's Net Sales as stated in the Company’s Consolidated Statement of
Earnings for the relevant fiscal year.  In determining Awards for
Participants who are not Covered Employees, Corporate Sales may be adjusted for
unusual conditions, factors or events as determined by the Committee, provided
that no such adjustment shall be made for any condition, factor or event which
was specifically included in the 2007 CTS Corporation Business Plan or 2008 or
2009 CTS Corporation Business Plans, as applicable.

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    Total Stockholder
Return:  means the appreciation in price of a share of common
stock, plus reinvested dividends (paid in cash or other property), between
January 1, 2008 and December 31, 2009.

     

    Relative Total Stockholder
Return:  means the total stockholder return of the Company
between January 1, 2008 and December 31, 2009, relative to the total stockholder
return of a Peer Group of 29 entities over that same period.  See
Exhibit B for calculation.

    

    Peer Group:  means a
benchmark group of 29 companies, the names of which are attached hereto as
Exhibit C, as the same may be adjusted from time-to-time in accord with the Peer
Group Adjustment Protocol (Exhibit D).

    

    RSU: means a Restricted Stock
Unit to be settled upon vesting on the basis of one Share for each Restricted
Stock Unit.  

    

    Target RSU Incentive: means
the number of RSUs assigned to each Participant as a function of his or her
position for purposes of calculating Awards.

    

    Award Level: means the
multiplier which is applied in calculating an Award based on the level of
achievement of a Performance Goal.

    

    Weight: means the percentage
of Target RSU Incentive allocated to each Performance Goal.

    

    SECTION
7.   PERFORMANCE GOALS AND CALCULATION OF AWARDS:

    

    The
Target RSU Incentive for each Participant is set forth in the 2008-2009 Target
RSU Incentive Statement provided to each Participant.

    

    The
settlement of an Award for any Participant may be as much as twice the Target
RSU Incentive or as little as zero depending upon achieved
results.  After the 7% Sales Growth threshold is met, Award Levels for
the Two-Year Sales Growth Performance Goal will be interpolated between
established steps or levels.  There will be no interpolation of Awards
for Sales Growth between 0% and 7%.  Award Levels for the Relative
Total Stockholder Return Performance Goal will not be interpolated for
performance achievement between any established steps or levels.

    

    The
Performance Goals, Weight and Award Levels for the Performance Period are as
follows:

    Performance
Goal No. 1: Two Year Sales Growth

    Weight:
40%

    

    Two Year Sales Growth
Achievement                                                                         Award
Level

     

    Two Year
Sales Growth less than
7%                                                                         0%
(No Award)

    

    Two Year
Sales Growth greater than or equal to 7%,

    but less
than
15%                                                                                                           50%
- 99% of Target Award

    

    Two Year
Sales Growth greater than or equal to 15%,

    but less
than
23%                                                                                                           100%
- 149% of Target Award

    

    Two Year
Sales Growth greater than or equal to 23%,

    but less
than
31%                                                                                                           150%
- 199% of Target Award

    

    Two Year
Sales Growth greater than or equal to
31%,                                             200%
of Target Award

     

    
      	
              ·  

            	
              Above
      the 7% threshold (below which there will be no Award) actual awards will
      be interpolated between established sales growth
    measurements.

            

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    Performance
Goal No. 2: Relative Total Stockholder Return (“RTSR”)

    Weight:
60%

    

    Relative Total Stockholder
Return                                                                                 Award
Level

    

    RTSR less
than 30% of Peer
Group                                                                               0%
(No Award)

    

    RTSR
better than or equal to 30% of Peer
Group                                                       50%
of Target Award

    but less
than or equal to 50% of Peer Group

    

    RTSR
better than 50% of Peer
Group                                                                           100%
of Target Award

    but less
than or equal to 70% of Peer Group

    

    RTSR
better than 70% of Peer
Group                                                                           150%
of Target Award

    but less
than or equal to 90% of Peer Group

     

    RTSR
better than 90% of Peer
Group                                                                          
200% of TargetAward

    

    
      	
              ·  

            	
              Awards
      will not be interpolated between established Award
  Levels.

            

    

     

    Example:

    

    Participant has a Target RSU Incentive
of 1,000 shares.

    

    Goal #1:

    
      	
              ·  

            	
              Results
      – Two Year Sales Growth is 15%.

            

    

    
      	
              ·  

            	
              1,000
      Target RSU Incentive times 40% (Weight) times 100% Award Level equals 400
      RSUs.

            

    

    Goal
#2:

    
      	
              ·  

            	
              Results
      – RTSR is 51% of Peer Group.

            

    

    
      	
              ·  

            	
              1,000
      Target RSU Incentive times 60% Weight times 100% Award Level equals 600
      RSUs.

            

    

    

     Participant earns 1,000
RSUs.

    

    The
Committee may, in its discretion, adjust a Participant’s payout of an Award
downward after consideration of other business factors, including overall
performance of the Company and the individual Participant’s contribution to
Company performance. The Committee may adjust a payout of an Award in its
discretion to prevent the enlargement or dilution of the Award because of
extraordinary events or circumstances as determined by the
Committee.  The Committee shall make no such adjustment with respect
to the Award of a Covered Employee, however, if the effect of such adjustment
would be to cause the related compensation to fail to qualify as
"performance-based compensation" within the meaning of Section 162(m) of the
Code.  In no event shall the reduction of any Participant’s potential
Award have the effect of increasing an Award payout payable to a Covered
Employee.  For purposes of Section 7(b) of the CTS Corporation 2004
Omnibus Long-term Incentive Plan, Awards shall constitute awards of Performance
Shares and no Award to a Covered Employee may result in the Covered Employee
receiving more than 125,000 Shares for the Performance Period.

    

    SECTION 8.   APPROVAL AND PAYMENT OF
AWARDS: Participants
must remain in continuous employ of the Company through the end of the
Performance Period in order to earn an Award. Upon completion of Performance
Period, and on or before March 15, 2010, the Compensation Committee shall
certify to what extent the Performance Goals for the Performance Period were met
and determine each Participant's Award. The date of such certification and
determination shall be the "Determination Date".  The Committee's
certification shall be subject to completion of the annual audit and
certification of results by the Company's independent auditor.  Awards
shall be made in the form of a grant of Restricted Stock Units under the terms
and conditions of the form of Restricted Stock Unit Agreement attached hereto as
Exhibit E.  Restricted Stock Units granted under the 2008- 2009
Performance Stock Unit Plan will vest on the Determination Date, and shall be
settled as soon as practicable after the Determination Date, subject to the
exceptions set forth in Exhibit E, but in no event later than March 15,
2010.

    

    SECTION 9.   NO CONTRACT: The Plan is not
and shall not be construed as an employment contract or as a promise or contract
to pay Awards to Participants or their beneficiaries.  The Plan shall
be approved by the Committee and may be amended from time to time by the
Committee without notice.  No Participant or beneficiary may sell,
assign, transfer, discount or pledge as collateral for a loan, or otherwise
anticipate any right to payment of an Award under this Plan.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    EXHIBIT
A

    

    COVERED
EMPLOYEES

    

    

    Vinod M.
Khilnani

    

    Donald R.
Schroeder

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    EXHIBIT
B

    

    Determining
Relative Total Stockholder Return

     

     

    For
purposes of calculating Relative Total Stockholder Return (rounding shall be to
the nearest tenth of a percent, with all hundredths of a percent equal to or
greater than 5 rounded up to the nearest tenth of a percent):

    

    
      	
              ·  

            	
              Company
      Return.  For the Performance Period, the Company’s Total
      Stockholder Return will be a percentage amount determined based on (1) the
      average closing price of the Shares for the 20 business days immediately
      preceding the last trading day of the Performance Period (including
      aggregate dividends for the Performance Period) compared to (2) the
      average closing price of the Shares for the 20 business days immediately
      preceding the first trading day of the Performance
  Period.

            

    

     

    
      	
              ·  

            	
              Peer
      Return.

            

    

     

    
      	
               
      

            	
              For
      the Performance Period, the Total Stockholder Return for each company in
      the Peer Group, (each a “Peer”) will be a percentage amount determined
      based on (1) the closing stock price on the last trading day of the
      Performance Period (including aggregate dividends for the Performance
      Period and adjusted for stock splits) compared to (2) the closing stock
      price on the first trading day of the Performance Period (including
      aggregate dividends for the Performance Period and adjusted for stock
      splits.)

            

    

     

    
      	
              ·  

            	
              Company
      Ranking.  For each Performance Period, the Company’s and
      each Peer’s Total Stockholder Return will be ranked in decreasing
      order.  Relative Total Stockholder Return equals the percentile
      rank (expressed as a percentage) of the Company’s Total Stockholder Return
      when compared to the rankings, from lowest to highest, of the Total
      Stockholder Returns of the Peers comprising the Peer Group for the
      Performance Period.

            

    

     

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    EXHIBIT
C

    

    Peer Group (29
Peers)

     

     

    
 

    
      
        
          
            	NAME	 SYMBOL	 STOCK
      EXCHANGE
	
                    ArvinMeritor,
      Inc.

                  	
                    ARM

                  	
                    New
      York Stock Exchange

                  
	
                    AVX
      Corporation

                  	
                    AVX

                  	
                    New
      York Stock Exchange

                  
	
                    Benchmark
      Electronics, Inc.

                  	
                    BHE

                  	
                    New
      York Stock Exchange

                  
	
                    BorgWarner
      Inc.

                  	
                    BWA

                  	
                    New
      York Stock Exchange

                  
	
                    Celestica
      Inc.

                  	
                    CLS

                  	
                    New
      York Stock Exchange

                  
	
                    EPCOS
      AG

                  	
                    EPC

                  	
                    New
      York Stock Exchange

                  
	
                    Flextronics
      International Ltd.

                  	
                    FLEX

                  	
                    Nasdaq
      Global Select Market

                  
	
                    Frequency
      Electronics, Inc.

                  	
                    FEIM

                  	
                    Nasdaq
      Global Market

                  
	
                    Gentex
      Corporation

                  	
                    GNTX

                  	
                    Nasdaq
      Global Select Market

                  
	
                    Jabil
      Circuit, Inc.

                  	
                    JBL

                  	
                    New
      York Stock Exchange

                  
	
                    KEMET
      Corporation

                  	
                    KEM

                  	
                    New
      York Stock Exchange

                  
	
                    Key
      Tronic Corporation

                  	
                    KTCC

                  	
                    Nasdaq
      Global Market

                  
	
                    Kimball
      International, Inc.

                  	
                    KBALB

                  	
                    Nasdaq
      Global Select Market

                  
	
                    LaBarge,
      Inc.

                  	
                    LB

                  	
                    American
      Stock Exchange

                  
	
                    Lear
      Corporation

                  	
                    LEA

                  	
                    New
      York Stock Exchange

                  
	
                    LittelFuse,
      Inc.

                  	
                    LFUS

                  	
                    Nasdaq
      Global Select Market

                  
	
                    Methode
      Electronics, Inc.

                  	
                    METH

                  	
                    Nasdaq
      Global Select Market

                  
	
                    Molex
      Incorporated

                  	
                    MOLX

                  	
                    Nasdaq
      Global Select Market

                  
	
                    Plexus
      Corp.

                  	
                    PLXS

                  	
                    Nasdaq
      Global Select Market

                  
	
                    RF
      Micro Devices, Inc.

                  	
                    RFMD

                  	
                    Nasdaq
      Global Select Market

                  
	
                    Sanmina-Sci
      Corporation

                  	
                    SANM

                  	
                    Nasdaq
      Global Select Market

                  
	
                    Sparton
      Corporation

                  	
                    SPA

                  	
                    New
      York Stock Exchange

                  
	
                    Spectrum
      Control, Inc.

                  	
                    SPEC

                  	
                    Nasdaq
      Global Market

                  
	
                    Stoneridge,
      Inc.

                  	
                    SRI

                  	
                    New
      York Stock Exchange

                  
	
                    Sypris
      Solutions, Inc.

                  	
                    SYPR

                  	
                    Nasdaq
      Global Market

                  
	
                    Technitrol,
      Inc.

                  	
                    TNL

                  	
                    New
      York Stock Exchange

                  
	
                    Triquint
      Semiconductors, Inc.

                  	
                    TQNT

                  	
                    Nasdaq
      Global Select Market

                  
	
                    Vishay
      Intertechnology, Inc.

                  	
                    VSH

                  	
                    New
      York Stock Exchange

                  
	
                    Williams
      Controls, Inc.

                  	
                    WMCO

                  	
                    Nasdaq
      Global
Market

                  

          

        

      

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    EXHIBIT
D

    

    Peer Group Adjustment
Protocol

     

    If, as of
the last date of the Performance Period, all of the common equity of any Peer
has been delisted from the stock exchange on which any of its common equity was
listed as of the date of this Agreement (and all such common equity (or the
common equity of a successor to all or substantially all of the business of such
Peer) has not been, within 30 days of such delisting, subsequently listed on any
of the New York Stock Exchange, the Nasdaq Stock Market LLC, the London Stock
Exchange or the American Stock Exchange), then:

     

    
      	
              ·  

            	
              such
      Peer will be removed from the Peer Group for purposes of the Performance
      Period; and

            

    

     

    
      	
              ·  

            	
              the
      Relative Total Stockholder Return for the Performance Period will be
      calculated as if such Peer had never been a member of the Peer
      Group.

            

    

     

    For
purposes of this Agreement, Peer includes any successor to all or substantially
all of the business of an entity as set forth on Exhibit B, whether or
not the same legal entity at end of the Performance Period.

    

    If a
company files for bankruptcy or is operating under bankruptcy protection, it
clearly shows bad performance and will, therefore, stay in the Peer Group as a
bottom performer.

    
 

     

    
 

    
      
        
        

      

      
        7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00153-of-00352.parquet"}]]