Document:

Exhibit 10.26

                         CITIZENS COMMUNICATIONS COMPANY

                  NON-EMPLOYEE DIRECTORS' COMPENSATION SUMMARY
           Non-Employee Directors' Equity Incentive Plan (the "Plan")
                       Approved and effective May 25, 2006

SIGN-ON OPTIONS
---------------
As approved by the Compensation  Committee and subject to Section 3 of the Plan,
upon  commencement  of service on the board each  non-employee  director will be
awarded a grant of 10,000 options to purchase the Company's common stock.  These
options are exercisable six months after their grant. The price of these options
is the Fair Market Value  (closing  price) of the Company's  common stock on the
day of the director's election to the board.  Options expire ten years after the
Grant Date or, if earlier, on the first anniversary of a director's  termination
of service with respect to options granted after May 25, 2006.

FORMULA PLAN AWARDS
-------------------
Pursuant to Section 4.1(a) of the Plan, each non-employee  director will receive
a grant of 3,500 stock units on the first business day of each Plan Year.

QUARTERLY RETAINER FEE
----------------------
A  non-employee  director  may elect to  receive  an annual  retainer  of either
$40,000  cash  or  5,760  stock  units,   in  each  case  payable  in  quarterly
installments as of the first business day of each calendar  quarter  ($10,000 or
1,440 stock units per quarter).

QUARTERLY MEETING FEES AND STIPENDS
-----------------------------------
A  non-employee  director may elect to receive  meeting fees and stipends,  when
applicable,  in cash or  stock  units,  or a  combination  of the two  forms  of
compensation.

Each  in-person  board and  committee  meeting  is  valued  at  $2,000  and each
telephonic board and committee meeting is valued at $1,000.

Each Committee Chair and the Lead Director will also receive quarterly  stipends
as follows:
<TABLE>
<CAPTION>

          Non-Employee Director Stipends                            Qtrly      Annualized
          --------------------------------------------------------------------------------
<S>                                                                 <C>         <C>
          Lead Director                                             $3,750      $15,000
          Audit Committee Chair                                     $6,250      $25,000
          Compensation Committee Chair                              $3,750      $15,000
          Nominating and Corporate Governance Committee Chair       $1,875       $7,500
          Retirement Plan Committee Chair                           $1,250       $5,000
</TABLE>

Meeting  fees and  stipends  are paid on the last  business  day of the calendar
quarter in which they were earned.

<PAGE>

VALUATION OF STOCK UNITS
------------------------

Fees: The number of units to be awarded to a director who elects to defer all or
part of his or her fees and/or stipends in stock units is determined as follows:

     The cash value of the fees  and/or  stipends  payable to the  director  are
     divided  by 85%  of the  Fair  Market  Value  (the  closing  price)  of the
     Company's  common stock on the last business day of the calendar quarter in
     which the fees or stipends were earned.

Dividends:  As of the date of any payment of a stock  dividend or stock split by
the Company,  a director's  Stock Unit Account will be credited with Stock Units
equal to the  number  of  shares of Common  Stock  (including  fractional  share
entitlements)  which are  payable by the Company  with  respect to the number of
shares (including  fractional share  entitlements)  equal to the number of Stock
Units credited to the director's  Stock Unit Account on the record date for such
stock  dividend  or  stock  split.  As of the  date of any  dividend  in cash or
property  or  other  distribution  payable  to  holders  of  Common  Stock,  the
director's  Stock Unit Account  shall be credited  with  additional  Stock Units
equal to the  number  of  shares of Common  Stock  (including  fractional  share
entitlements) that could have been purchased at the Fair Market Value as of such
payment  date with the amount  which  would have been  received as a dividend or
distribution on the number of shares (including  fractional share  entitlements)
equal to the Stock Units credited to the director's Stock Unit Account as of the
record date.

ELECTION RULES AND PROCEDURES
-----------------------------

Each director must elect by December 31 of the preceding year (or within 30 days
after the individual  becomes a director)  whether he or she will receive his or
her meeting  fees,  stipends,  and retainer in cash or stock units,  or an equal
combination  of  the  two  forms  of   compensation.   All  elections  made  are
irrevocable.

DISTRIBUTION UPON TERMINATION OF SERVICE
----------------------------------------

Upon termination of service as a director, a director's stock unit account shall
be paid out in the form of cash  (valuing  each  stock  unit at the Fair  Market
Value  [closing  price]  of a  share  of  the  Company's  common  stock  on  the
termination  date) or Company common stock, at the election of the director (one
share of common stock shall be distributed for each stock unit in the director's
stock unit account).  Absent a valid election,  stock units shall be paid out in
common stock.ex_10hh.htm

    CTS
Corporation

    
      Form 10-K
2007

    

    
      

      

    

    EXHIBIT (10)(hh)

    
 

     

    SEVERANCE
AGREEMENT

     

    This
SEVERANCE AGREEMENT (this “Agreement”), dated as of December 5, 2007, is made
and entered by and between CTS Corporation, an Indiana corporation (the
“Company”), and _____________________ (the “Executive”).(1)

     

    W I T N E S S E T
H:

     

    WHEREAS,
the Executive is a senior executive or a key employee of the Company or one or
more of its Subsidiaries and has made and is expected to continue to make major
contributions to the short- and long-term profitability, growth and financial
strength of the Company;

     

    WHEREAS,
the Company recognizes that, as is the case for most publicly held companies,
the possibility of a Change in Control (as defined below) exists;

     

    WHEREAS,
the Company desires to assure itself of both present and future continuity of
management and desires to establish certain minimum severance benefits for
certain of its senior executives and key employees, including the Executive,
applicable in the event of a Change in Control;

     

    WHEREAS,
the Company wishes to ensure that its senior executives and key employees are
not practically disabled from discharging their duties in respect of a proposed
or actual transaction involving a Change in Control;

     

    WHEREAS,
the Company desires to provide additional inducement for the Executive to
continue to remain in the ongoing employ of the Company; and

     

    WHEREAS,
the Company and the Executive previously entered into a Severance Agreement
dated as of (the “Prior Agreement”), and wish to amend and completely restate
the Prior Agreement as set forth below.

     

    NOW,
THEREFORE, the Company and the Executive agree as follows:

     

    
      	
              1.  

            	
              Certain Defined
      Terms.  In addition to terms defined elsewhere herein,
      the following terms have the following meanings when used in this
      Agreement with initial capital
letters:

            

    

     

    
      	
              (a)  

            	
              “Base
      Pay” means the Executive’s annual base salary at a rate not less than the
      Executive’s annual fixed or base compensation as in effect for the
      Executive immediately prior to the occurrence of a Change in Control or
      such higher rate as may be determined from time to time by the Board or a
      committee thereof.

            

    

     

     (b) “Board”
means the Board of Directors of the Company.

     

    
      	
              (c)  

            	
              “Cause”
      means that, prior to any termination pursuant to Section 3(b), the
      Executive:

            

    

     

    
      	
              (i)  

            	
              has
      been convicted of a criminal violation involving fraud, embezzlement or
      theft in connection with his duties or in the course of his employment
      with the Company or any Subsidiary;

            

    

     

    
      	
              (ii)  

            	
              has
      intentionally and wrongfully damaged property of the Company or any
      Subsidiary;

            

    

     

    
      	
              (iii)  

            	
              has
      intentionally and wrongfully disclosed secret processes, trade secrets or
      confidential information of the Company or any Subsidiary;
    or

            

    

     

    
      	
              (iv)  

            	
              has
      intentionally and wrongfully engaged in any Competitive
      Activity;

            

    

     

    
      	
               
      

            	
              and
      any such act has been demonstrably and materially harmful to the
      Company.  For purposes of this Agreement, no act or failure to
      act on the part of the Executive will be deemed to be “intentional” if it
      was due primarily to an error in judgment or negligence, and will be
      deemed to be “intentional” only if done or omitted to be done by the
      Executive not in good faith and without reasonable belief that his action
      or omission was in the best interest of the
      Company.  Notwithstanding the foregoing, the Executive will not
      be deemed to have been terminated for “Cause” hereunder unless and until
      there is delivered to the Executive a copy of a resolution duly adopted by
      the affirmative vote of not less than two-thirds of the Board then in
      office at a meeting of the Board called and held for such purpose, after
      reasonable notice to the Executive and an opportunity for the Executive,
      together with his counsel (if the Executive chooses to have counsel
      present at such meeting), to be heard before the Board, finding that, in
      the good faith opinion of the Board, the Executive committed an act
      constituting “Cause” as herein defined and specifying the particulars
      thereof in detail.  Nothing herein will limit the right of the
      Executive or his beneficiaries to contest the validity or propriety of any
      such determination.

               

               

            

    

    _______________________________________

    (1) Two different
“tiers” of Executives will be eligible to enter into Severance Agreements, with
each tier providing for different levels of severance benefits.

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      	
              (d)  

            	
              “Change
      in Control” means the occurrence during the Term of any of the following
      events:

            

    

     

    
      	
              (i)  

            	
              the
      acquisition by any individual, entity or group (within the meaning of
      Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of
      aggregate beneficial ownership (within the meaning of Rule 13d-3
      promulgated under the Exchange Act) of 25% or more of the combined voting
      power of the then outstanding Voting Stock of the Company (including, for
      this purpose, any Voting Stock of the Company acquired prior to the Term);
      provided, however, that
      for purposes of this Section 1(d)(i), the following will not be deemed to
      result in a Change in Control:  (A) any acquisition of
      Voting Stock of the Company directly from the Company that is approved by
      the Incumbent Board (as defined below), (B) any acquisition of Voting
      Stock of the Company by the Company or any Subsidiary and any change in
      the percentage ownership of Voting Stock of the Company that results from
      such acquisition, (C) any acquisition of Voting Stock of the Company by
      any employee benefit plan (or related trust) sponsored or maintained by
      the Company or any Subsidiary, or (D) any acquisition of Voting Stock of
      the Company by any Person pursuant to a Business Combination that complies
      with clauses (I), (II) and (III) of Section ­­1(d)(iii);
      or

            

    

     

    
      	
              (ii)  

            	
              individuals
      who, as of the date hereof, constitute the Board (the “Incumbent Board”)
      cease for any reason to constitute at least a majority of the Board; provided, however, that
      any individual becoming a Director subsequent to the date hereof whose
      election, or nomination for election by the Company’s shareholders, was
      approved by a vote of at least a majority of the Directors then comprising
      the Incumbent Board (either by a specific vote or by approval of the proxy
      statement of the Company in which such person is named as a nominee for
      director, without objection to such nomination) will be deemed to have
      been a member of the Incumbent Board, but excluding, for this purpose, any
      such individual becoming a Director as a result of an actual or threatened
      election contest (as described in Rule 14a-12(c) of the Exchange Act) with
      respect to the election or removal of Directors or other actual or
      threatened solicitation of proxies or consents by or on behalf of a Person
      other than the Board (collectively, an “Election Contest”);
    or

            

    

     

    
      	
              (iii)  

            	
              consummation
      of (A) a reorganization, merger or consolidation of the Company, or
      (B) a sale or other disposition of all or substantially all of the
      assets of the Company, (such reorganization, merger, consolidation or sale
      each, a “Business Combination”), unless, in each case, immediately
      following such Business Combination, (I) all or substantially all of the
      individuals and entities who were the beneficial owners of Voting Stock of
      the Company immediately prior to such Business Combination beneficially
      own, directly or indirectly, more than 75% of the then outstanding shares
      of common stock and the combined voting power of the then outstanding
      Voting Stock of the Company entitled to vote generally in the election of
      Directors of the entity resulting from such Business Combination
      (including, without limitation, an entity which as a result of such
      transaction owns the Company or all or substantially all of the Company’s
      assets either directly or through one or more subsidiaries), (II) no
      Person (other than the Company, such entity resulting from such Business
      Combination, or any employee benefit plan (or related trust) sponsored or
      maintained by the Company, any Subsidiary or such entity resulting from
      such Business Combination) beneficially owns, directly or indirectly, 15%
      or more of the then outstanding shares of Voting Stock of the entity
      resulting from such Business Combination, and (III) at least a majority of
      the members of the Board of the entity resulting from such Business
      Combination were members of the Incumbent Board at the time of the
      execution of the initial agreement or of the action of the Board providing
      for such Business Combination; or

            

    

     

    
      	
              (iv)  

            	
              approval
      by the shareholders of the Company of a complete liquidation or
      dissolution of the Company, except pursuant to a Business Combination that
      complies with clauses (I), (II) and (III) of
      Section 1(d)(iii).

            

    

     

    (e) “Code”
means the Internal Revenue Code of 1986, as amended.

     

    
      	
              (f)  

            	
              “Competitive
      Activity” means the Executive’s participation, without the written consent
      of an officer of the Company, in the management of any business enterprise
      if such enterprise engages in substantial and direct competition with the
      Company and such enterprise’s sales of any product or service competitive
      with any product or service of the Company amounted to 25% of such
      enterprise’s net sales for its most recently completed fiscal year and if
      the Company’s net sales of said product or service amounted to 25% of the
      Company’s net sales for its most recently completed fiscal
      year.  “Competitive Activity” does not include (i) the mere
      ownership of securities in any such enterprise and the exercise of rights
      appurtenant thereto or (ii) participation in the management of any
      such enterprise other than in connection with the competitive operations
      of such enterprise.

            

    

     

    
      	
              (g)  

            	
              “Employee
      Benefits” means the perquisites, benefits and service credit for benefits
      as provided under any and all employee benefit, including retirement
      income and welfare benefit, policies, plans, programs or arrangements in
      which the Executive is entitled to participate, including without
      limitation any stock option, performance share, performance unit, stock
      purchase, stock appreciation, restricted stock, savings, pension,
      supplemental executive retirement, or other retirement income or welfare
      benefit, deferred compensation, incentive compensation, group or other
      life, health, medical/hospital or other insurance (whether funded by
      actual insurance or self-insured by the Company), disability, salary
      continuation, expense reimbursement and other employee benefit policies,
      plans, programs or arrangements that may now exist or any equivalent
      successor policies, plans, programs or arrangements that may be adopted
      hereafter by the Company, providing perquisites, benefits and service
      credit for benefits at least as great in the aggregate as are payable
      thereunder prior to a Change in
Control.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (h) “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

     

    
      	
              (i)  

            	
              “Incentive
      Pay” means an annual amount equal to not less than the greater of:
      (i) the average aggregate annual bonus, incentive or other payments
      of cash compensation, in addition to Base Pay, made or to be made in
      regard to services rendered during the three consecutive fiscal years
      immediately preceding the fiscal year in which the Change in Control
      occurred pursuant to any bonus, incentive, profit-sharing, performance,
      discretionary pay or similar agreement, policy, plan, program or
      arrangement (whether or not funded) of the Company, or any successor
      thereto (including, without limitation, any matching cash payment made
      with respect to restricted stock awards vesting during such three-year
      period), providing benefits at least as great as the benefits payable
      thereunder prior to a Change in Control or (ii) the Target Annual
      Incentive Pay.  “Target Annual Incentive Pay” means the target
      incentive pay for the Executive’s position as set forth in the CTS
      Corporation Management Incentive Plan for the fiscal year in which the
      Change in Control occurred (without regard to any amendment to such Plan
      made subsequent to a Change in Control which adversely affects in any
      manner the benefits or amounts payable thereunder) and calculated with
      respect to the Executive’s Base Pay or, if the Management Incentive Plan
      is no longer in effect, the target annual cash incentive compensation, in
      addition to Base Pay, to be paid in regard to services rendered during the
      fiscal year in which the Change in Control occurred as set forth in the
      Company’s annual budget for such fiscal
year.

            

    

     

    
      	
              (j)  

            	
              “Retirement
      Plans” means the [CTS Corporation Pension Plan, the CTS Corporation 1996
      Excess Retirement Benefit Plan, the CTS Corporation Retirement Plan, the
      CTS Corporation Retirement Plan as Adopted by Electromechanical Division,
      the Retirement Plan for Employees of Dynamics Corporation of America, and
      the CTS Corporation Individual Excess Retirement Benefit Plan with respect
      to the Executive adopted by the Company as of December 5, 2007,]2 and any successor plan
      thereto.

            

    

     

    
      	
              (k)  

            	
              “Separation
      from Service” means the Executive’s separation from service within the
      meaning of Section 409A of the
Code.

            

    

     

    
      	
              (l)  

            	
              “Severance
      Period” means the period of time commencing on the date of the first
      occurrence of a Change in Control during the Term and continuing until the
      earlier of (i) the [TIER 1: third/ TIER 2:
      second] anniversary of the occurrence of the Change in Control, or
      (ii) the Executive’s death [TIER 1 ONLY:; provided,
      however, that on each
      anniversary of the Change in Control, the Severance Period will
      automatically be extended for an additional year unless, not later than 90
      calendar days prior to such anniversary date, either the Company or the
      Executive gives written notice to the other that the Severance Period is
      not to be so extended].

            

    

     

    
      	
              (m)  

            	
              “Specified
      Employee” means a specified employee within the meaning of Section 409A of
      the Code.

            

    

     

    
      	
              (n)  

            	
              “Subsidiary”
      means an entity in which the Company directly or indirectly beneficially
      owns 50% or more of the outstanding Voting
  Stock.

            

    

     

    
      	
              (o)  

            	
              “Term”
      means the period commencing as of the date hereof and expiring as of the
      later of (i) the close of business on [December 31, 2011], or
      (ii) the expiration of the Severance Period; provided, however, that, subject to the last sentence
      of Section 9, if, prior to a Change in Control, the Executive incurs a
      Separation from Service for any reason, thereupon without further action
      the Term will be deemed to have expired and this Agreement will
      immediately terminate and be of no further
  effect.

            

    

     

    
      	
              (p)  

            	
              “Voting
      Stock” means securities entitled to vote generally in the election of
      directors.

               

            

    

     

    
    

    
      	
              2.  

            	
              Operation of
      Agreement.  This Agreement will be effective and binding
      immediately upon its execution, but, anything in this Agreement to the
      contrary notwithstanding, this Agreement will not be operative unless and
      until a Change in Control occurs.  Upon the occurrence of a
      Change in Control at any time during the Term, without further action,
      this Agreement will become immediately operative, including without
      limitation, for purposes of the last sentence of Section 9 notwithstanding
      that the Term may have theretofore
expired.

            

    

     

    
    

    3. Separation Following a
Change in Control.

     

    
      	
              (a)  

            	
              In
      the event of the occurrence of a Change in Control, the Company may
      terminate Executive’s employment during the Severance Period and, provided
      such termination of employment constitutes a Separation from Service, the
      Executive will be entitled to the severance compensation provided by
      Section 4 unless such Separation is the result of the occurrence of
      one or more of the following
events:

            

    

     

      
(i) The
Executive’s death;

     

    
      	
              (ii)  

            	
              The
      Executive becoming permanently disabled within the meaning of, and
      beginning to actually receive disability benefits pursuant to, the
      Company’s long-term disability plan in effect for, or applicable to, the
      Executive immediately prior to the Change in
  Control;

            

    

     

     (iii) Cause.

     

    
      _________________      

      
        (2) Adjust as
appropriate for individual executive.

      

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	
              (b)  

            	
              In
      the event of the occurrence of a Change in Control, the Executive may
      terminate employment with the Company during the Severance Period upon the
      occurrence of one or more of the following events (regardless of whether
      any other reason, other than Cause as hereinabove provided, for such
      termination exists or has occurred, including without limitation other
      employment) and, provided such termination of employment constitutes a
      Separation from Service will be entitled to severance compensation as
      provided in Section 4:

            

    

     

    
      	
              (i)  

            	
              Failure
      to elect or reelect or otherwise to maintain the Executive in the office
      or the position, or a substantially equivalent or better office or
      position, of or with the Company and/or a Subsidiary, as the case may be,
      which the Executive held immediately prior to a Change in Control, or the
      removal of the Executive as a member of the Board of Directors of the
      Company (or any successor thereto) if the Executive was a Director of the
      Company immediately prior to the Change in
  Control;

            

    

     

    
      	
              (ii)  

            	
              (A) A
      significant adverse change in the nature or scope of the authorities,
      powers, functions, responsibilities or duties attached to the position
      with the Company and any Subsidiary which the Executive held immediately
      prior to the Change in Control, (B) a reduction in the aggregate of
      the Executive’s Base Pay and Incentive Pay received from the Company and
      any Subsidiary, or (C) the termination or denial of the Executive’s
      rights to Employee Benefits or a reduction in the scope or value thereof,
      any of which is not remedied by the Company within 10 calendar days after
      receipt by the Company of written notice from the Executive of such
      change, reduction or termination, as the case may
  be;

            

    

     

    
      	
              (iii)  

            	
              A
      determination by the Executive (which determination will be conclusive and
      binding upon the parties hereto provided the determination was made in
      good faith and, in all events, will be presumed to have been made in good
      faith unless otherwise shown by the Company by clear and convincing
      evidence) that a change in circumstances has occurred following a Change
      in Control, including, without limitation, a change in the scope of the
      business or other activities for which the Executive was responsible
      immediately prior to the Change in Control, which has rendered the
      Executive substantially unable to carry out, has substantially hindered
      Executive’s performance of, or has caused Executive to suffer a
      substantial reduction in, any of the authorities, powers, functions,
      responsibilities or duties attached to the position held by the Executive
      immediately prior to the Change in Control, which situation is not
      remedied within 10 calendar days after written notice to the Company from
      the Executive of such
determination;

            

    

     

    
      	
              (iv)  

            	
              The
      liquidation, dissolution, merger, consolidation or reorganization of the
      Company or transfer of all or substantially all of its business and/or
      assets unless the successor or successors (by liquidation, merger,
      consolidation, reorganization, transfer or otherwise) to which all or
      substantially all of its business and/or assets have been transferred
      (directly or by operation of law) assumed all duties and obligations of
      the Company under this Agreement pursuant to Section
  11(a);

            

    

     

    
      	
              (v)  

            	
              The
      Company requires the Executive to have his principal location of work
      changed to any location that is in excess of 35 miles from the location
      thereof immediately prior to the Change in Control, or requires the
      Executive to travel away from his office in the course of performing his
      responsibilities or duties attached to his position at least 20% more (in
      terms of aggregate days in any calendar year or in any calendar quarter
      when annualized for purposes of comparison to any prior year) than was
      required of Executive in any of the three full years immediately prior to
      the Change in Control without, in either case, his prior written
      consent;

            

    

     

    
      	
              (vi)  

            	
              Without
      limiting the generality or effect of the foregoing, any material breach of
      this Agreement by the Company or any successor thereto which is not
      remedied by the Company within 10 calendar days after receipt by the
      Company of written notice from the Executive of such breach;
      or

            

    

     

    
      	
              (vii)  

            	
              Without
      limiting the generality or effect of the foregoing, any Change in Control
      that results in (A) the Company’s Voting Stock ceasing to be
      (x) registered under Section 12 of the Exchange Act or
      (y) listed on the New York Stock Exchange or (z) authorized for
      quotation on the Nasdaq National Market System, or (B) the Company no
      longer being required to file periodic reports with the Securities and
      Exchange Commission pursuant to Sections 13(a) or 15(d) of the Exchange
      Act, shall be conclusively presumed to give rise to the Executive’s right
      to terminate employment pursuant to subsections (ii) and (iii) of this
      Section 3(b).

            

    

     

    
      	
              (c)  

            	
              A
      Separation from Service pursuant to Section 3(a) or Section 3(b) that
      entitles the Executive to the benefits provided by Section 4 will not
      affect any rights that the Executive may have pursuant to any agreement,
      policy, plan, program or arrangement of the Company providing Employee
      Benefits, which rights will be governed by the terms thereof; provided, however, that
      if the Executive also becomes entitled to receive severance payments under
      any employment or severance agreement (other than this Agreement) in
      existence prior to the date hereof, then the Executive’s termination
      payments under this Agreement shall be reduced by any corresponding
      payments made to the Executive under such other
      agreement.  [FOR TIER 1 ONLY: For the
      avoidance of doubt, payments made as reimbursement or for outplacement
      advice of the type described in Paragraphs (5) and (6) of Annex A to this
      Agreement shall not be considered as corresponding to severance payments
      calculated with respect to Base Pay or Incentive Pay, or any multiple
      thereof.]

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    4. Severance
Compensation.

     

    
      	
              (a)  

            	
              If
      the Executive incurs a Separation from Service pursuant to
      Section 3(a) or Section 3(b) that entitles the Executive to severance
      benefits hereunder, the Company will pay to the Executive (or other Person
      as appropriate) as severance benefits the appropriate amounts described on
      Annex A and will continue to provide to the Executive the continuing
      and other benefits described on Annex A at the times and for the
      periods described therein.

            

    

     

    
      	
              (b)  

            	
              Without
      limiting the rights of the Executive at law or in equity, if the Company
      fails to make any payment or provide any benefit required to be made or
      provided hereunder on a timely basis, the Company will pay interest on the
      amount or value thereof at an annualized rate of interest equal to the
      so-called composite “prime rate” as quoted from time to time during the
      relevant period in the Midwest Edition of The Wall Street
      Journal.  Any change in such prime rate will be effective
      on and as of the date of such
change.

            

    

     

    
      	
              (c)  

            	
              If
      the Executive incurs a Separation from Service pursuant to
      Section 3(a) or Section 3(b) that entitles the Executive to severance
      benefits hereunder, notwithstanding anything to the contrary contained in
      this Agreement or in the CTS Corporation Management Incentive Plan, the
      Company will pay in cash to the Executive a lump sum amount equal to
      (a) the Executive’s target incentive pay for Executive’s position
      under the CTS Corporation Management Incentive Plan for the year in which
      the Executive’s Separation from Service occurs, and (b) prorated on
      the basis of the ratio of the number of months of the Executive’s
      participation during the applicable performance period to which the
      incentive pay related to the aggregate number of months in such
      performance period, taking into account service rendered through the date
      of the Executive’s Separation from Service.  Such payment shall
      be made as soon as practicable but not more than 90 days after the date of
      the Executive’s Separation from Service; provided, however, that
      if the Executive is a Specified Employee such payment shall be made on the
      first day of the seventh month following the date of the Executive’s
      Separation from Service.

            

    

     

    
      	
              (d)  

            	
              Notwithstanding
      anything to the contrary contained in this Agreement or in any applicable
      plan, program or agreement, immediately upon the occurrence of a Change in
      Control, all equity awards (including restricted stock awards, stock
      options and appreciation rights) held by the Executive will become fully
      vested and any risk of forfeiture and prohibitions or restrictions on
      transfer pertaining to any restricted shares granted to the Executive will
      lapse and all stock options held by the Executive will become fully
      exercisable.

            

    

     

    
      	
              (e)  

            	
              Notwithstanding
      any provision of this Agreement to the contrary, the parties’ respective
      rights and obligations under this Section 4 and under Sections 5, 7
      and 8 will survive any termination or expiration of this Agreement or the
      Executive’s Separation from Service following a Change in Control for any
      reason whatsoever.

            

    

     

    5. [FOR TIER 1 ONLY] Certain Additional Payments
by the Company.

     

    
      	
              (a)  

            	
              Anything
      in this Agreement to the contrary notwithstanding, in the event that this
      Agreement becomes operative and it is determined (as hereafter provided)
      that any payment or distribution by the Company or any of its affiliates
      to or for the benefit of the Executive, whether paid or payable or
      distributed or distributable pursuant to the terms of this Agreement or
      otherwise pursuant to or by reason of any other agreement, policy, plan,
      program or arrangement, including without limitation any stock option,
      performance share, performance unit, stock appreciation right or similar
      right, or the lapse or termination of any restriction on, or the vesting
      or exercisability of, any of the foregoing (a “Payment”), would be subject
      to the excise tax imposed by Section 4999 of the Code (or any successor
      provision thereto) by reason of being considered “contingent on a change
      in ownership or control” of the Company, within the meaning of Section
      280G of the Code (or any successor provision thereto) or to any similar
      tax imposed by state or local law, or any interest or penalties with
      respect to such tax (such tax or  taxes, together with any such
      interest and penalties, being hereafter collectively referred to as the
      “Excise Tax”), the Executive will be entitled to receive an additional
      payment or payments (collectively, a “Gross-Up Payment”); provided, however, that
      no Gross-up Payment will be made with respect to the Excise Tax, if any,
      attributable to (i) any incentive stock option, as defined by
      Section 422 of the Code (“ISO”) granted prior to the execution of
      this Agreement, or (ii) any stock appreciation or similar right,
      whether or not limited, granted in tandem with any ISO described in clause
      (i).  The Gross-Up Payment will be in an amount such that, after
      payment by the Executive of all taxes (including any interest or penalties
      imposed with respect to such taxes), including any Excise Tax imposed upon
      the Gross-Up Payment, the Executive retains an amount of the Gross-Up
      Payment equal to the Excise Tax imposed upon the
  Payment.

            

    

     

    
      	
              (b)  

            	
              Subject
      to the provisions of Section 5(f), all determinations required to be made
      under this Section 5, including whether an Excise Tax is payable by the
      Executive and the amount of such Excise Tax and whether a Gross-Up Payment
      is required to be paid by the Company to the Executive and the amount of
      such Gross-Up Payment, if any, will be made by a nationally recognized
      accounting firm (the “Accounting Firm”) selected by the Executive in his
      sole discretion.  The Executive will direct the Accounting Firm
      to submit its determination and detailed supporting calculations to both
      the Company and the Executive within 30 calendar days after the date of
      Executive’s Separation from Service, if applicable, and any such other
      time or times as may be requested by the Company or the
      Executive.  If the Accounting Firm determines that any Excise
      Tax is payable by the Executive, the Company will pay the required
      Gross-Up Payment to the Executive within five business days after receipt
      of such determination and calculations with respect to any Payment to the
      Executive.  If the Accounting Firm determines that no Excise Tax
      is payable by the Executive, it will, at the same time as it makes such
      determination, furnish the Company and the Executive an opinion that the
      Executive has substantial authority not to report any Excise Tax on his
      federal, state or local income or other tax return.  As a result
      of the uncertainty in the application of Section 4999 of the Code (or any
      successor provision thereto) and the possibility of similar uncertainty
      regarding applicable state or local tax law at the time of any
      determination by the Accounting Firm hereunder, it is possible that
      Gross-Up Payments which will not have been made by the Company should have
      been made (an “Underpayment”), consistent with the calculations required
      to be made hereunder.  In the event that the Company exhausts or
      fails to pursue its remedies pursuant to Section 5(f) and the Executive
      thereafter is required to make a payment of any Excise Tax, the Executive
      will direct  the Accounting Firm to determine the amount of the
      Underpayment that has occurred and to submit its determination and
      detailed supporting calculations to both the Company and the Executive as
      promptly as possible.  Any such Underpayment will be promptly
      paid by the Company to, or for the benefit of, the Executive within five
      business days after receipt of such determination and
      calculations.

               

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	
              (c)  

            	
              The
      Company and the Executive will each provide the Accounting Firm access to
      and copies of any books, records and documents in the possession of the
      Company or the Executive, as the case may be, reasonably requested by the
      Accounting Firm, and otherwise cooperate with the Accounting Firm in
      connection with the preparation and issuance of the determinations and
      calculations contemplated by Section 5(b).  Any determination by
      the Accounting Firm as to the amount of the Gross-Up Payment will be
      binding upon the Company and the
Executive.

            

    

     

    
      	
              (d)  

            	
              The
      federal, state and local income or other tax returns filed by the
      Executive will be prepared and filed on a consistent basis with the
      determination of the Accounting Firm with respect to the Excise Tax
      payable by the Executive.  The Executive will make proper
      payment of the amount of any Excise Payment, and at the request of the
      Company, provide to the Company true and correct copies (with any
      amendments) of his federal income tax return as filed with the Internal
      Revenue Service and corresponding state and local tax returns, if
      relevant, as filed with the applicable taxing authority, and such other
      documents reasonably requested by the Company, evidencing such
      payment.  If prior to the filing of the Executive’s federal
      income tax return, or corresponding state or local tax return, if
      relevant, the Accounting Firm determines that the amount of the Gross-Up
      Payment should be reduced, the Executive will, within five business days,
      pay to the Company the amount of such
reduction.

            

    

     

    
      	
              (e)  

            	
              The
      fees and expenses of the Accounting Firm for its services in connection
      with the determinations and calculations contemplated by Section 5(b) will
      be borne by the Company.  If such fees and expenses are
      initially paid by the Executive, the Company will reimburse the Executive
      the full amount of such fees and expenses within five business days after
      receipt from the Executive of a statement therefor and reasonable evidence
      of his payment thereof.

            

    

     

    
      	
              (f)  

            	
              The
      Executive will notify the Company in writing of any claim by the Internal
      Revenue Service or any other taxing authority that, if successful, would
      require the payment by the Company of a Gross-Up Payment.  Such
      notification will be given as promptly as practicable but no later than
      10 business days after the Executive actually receives notice of such
      claim and the Executive will further apprise the Company of the nature of
      such claim and the date on which such claim is requested to be paid (in
      each case, to the extent known by the Executive).  The Executive
      will not pay such claim prior to the earlier of (i) the expiration of
      the 30-calendar-day period following the date on which he gives such
      notice to the Company and (ii) the date that any payment of amount
      with respect to such claim is due.  If the Company notifies the
      Executive in writing prior to the expiration of such period that it
      desires to contest such claim, the Executive
  will:

            

    

     

    
      	
              (i)  

            	
              provide
      the Company with any written records or documents in his possession
      relating to such claim reasonably requested by the
  Company;

            

    

     

    
      	
              (ii)  

            	
              take
      such action in connection with contesting such claim as the Company
      reasonably requests in writing from time to time, including without
      limitation accepting legal representation with respect to such claim by an
      attorney competent in respect of the subject matter and reasonably
      selected by the Company;

            

    

     

    
      	
              (iii)  

            	
              cooperate
      with the Company in good faith in order effectively to contest such claim;
      and

            

    

     

    
      	
              (iv)  

            	
              permit
      the Company to participate in any proceedings relating to such
      claim;

            

    

     

    
      	
               
      

            	
              provided, however, that
      the Company will bear and pay directly all costs and expenses (including
      interest and penalties) incurred in connection with such contest and will
      indemnify and hold harmless the Executive, on an after-tax basis, for and
      against any Excise Tax or income tax, including interest and penalties
      with respect thereto, imposed as a result of such representation and
      payment of costs and expenses pursuant to Section 5(g).  Without
      limiting the foregoing provisions of this Section 5(f), the Company will
      control all proceedings taken in connection with the contest of any claim
      contemplated by this Section 5(f) and, at its sole option, may pursue or
      forego any and all administrative appeals, proceedings, hearings and
      conferences with the taxing authority in respect of such claim (provided, however, that
      the Executive may participate therein at his own cost and expense) and
      may, at its option, either direct the Executive to pay the tax claimed and
      sue for a refund or contest the claim in any permissible manner, and the
      Executive agrees to prosecute such contest to a determination before any
      administrative tribunal, in a court of initial jurisdiction and in one or
      more appellate courts, as the Company determines; provided, however, that
      any extension of the statute of limitations relating to payment of taxes
      for the taxable year of the Executive with respect to which the contested
      amount is claimed to be due is limited solely to such contested
      amount.  Furthermore, the Company’s control of any such
      contested claim will be limited to issues with respect to which a Gross-Up
      Payment would be payable hereunder and the Executive will be entitled to
      settle or contest, as the case may be, any other issue raised by the
      Internal Revenue Service or any other taxing
  authority.

            

    

     

    
      	
              (g)  

            	
              Notwithstanding
      any other provision of this Section 5 to the contrary, any Gross-Up
      Payment, Underpayment or other payment or reimbursement made pursuant to
      this Section 5 shall be paid or reimbursed no later than December 31st of
      the year following the year in which the applicable taxes are remitted or,
      in the case of reimbursement of expenses incurred due to a tax audit or
      litigation to which there is no remittance of taxes, no later than the end
      of the year following the year in which the audit is completed or there is
      a final and nonappealable settlement or other resolution of the litigation
      in accordance with Treasury Regulation Section
      1.409A-3(i)(1)(v).

               

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              5.

            	
              [FOR TIER 2
      ONLY]  Limitation on Payments
      and Benefits.  Notwithstanding any provision of this
      Agreement to the contrary, if any amount or benefit to be paid or provided
      under this Agreement would be an “Excess Parachute Payment,” within the
      meaning of Section 280G of the Code (or any successor provision thereto),
      but for the application of this sentence, then the payments and benefits
      to be paid or provided under this Agreement will be reduced to the minimum
      extent necessary (but in no event to less than zero) so that no portion of
      any such payment or benefit, as so reduced, constitutes an Excess
      Parachute Payment; provided, however, that
      the foregoing reduction will be made only if and to the extent that such
      reduction would result in an increase in the aggregate payment and
      benefits to be provided, determined on an after-tax basis (taking into
      account the excise tax imposed pursuant to Section 4999 of the Code,
      or any successor provision thereto, any tax imposed by any comparable
      provision of state law, and any applicable federal, state and local income
      and employment taxes).  Whether requested by the Executive or
      the Company, the determination of whether any reduction in such payments
      or benefits to be provided under this Agreement or otherwise is required
      pursuant to the preceding sentence will be made at the expense of the
      Company by the Company’s independent accountants.  The fact that
      the Executive’s right to payments or benefits may be reduced by reason of
      the limitations contained in this Section 5 will not of itself limit
      or otherwise affect any other rights of the Executive other than pursuant
      to this Agreement.  The Company shall effect such reduction in
      the order in which payments are due to be paid or provided, beginning with
      the latest payment.

            

    

     

    
      	
              6.  

            	
              No Mitigation
      Obligation.  The Company hereby acknowledges that it will
      be difficult and may be impossible for the Executive to find reasonably
      comparable employment following the Executive’s Separation from Service
      and that the non-competition covenant contained in Section 8 will further
      limit the employment opportunities for the
      Executive.  Accordingly, the payment of the severance
      compensation by the Company to the Executive in accordance with the terms
      of this Agreement is hereby acknowledged by the Company to be reasonable,
      and the Executive will not be required to mitigate the amount of any
      payment provided for in this Agreement by seeking other employment or
      otherwise, nor will any profits, income, earnings or other benefits from
      any source whatsoever create any mitigation, offset, reduction or any
      other obligation on the part of the Executive hereunder or otherwise,
      except as expressly provided in Paragraph 2 set forth on
      Annex A.

            

    

     

    
      	
              7.  

            	
              Legal Fees and
      Expenses.  It is the intent of the Company that the
      Executive not be required to incur legal fees and the related expenses
      associated with the interpretation, enforcement or defense of the
      Executive’s rights under this Agreement by litigation or otherwise because
      the cost and expense thereof would substantially detract from the benefits
      intended to be extended to the Executive
      hereunder.  Accordingly, if it should appear to the Executive
      that the Company has failed to comply with any of its obligations under
      this Agreement or in the event that the Company or any other person takes
      or threatens to take any action to declare this Agreement void or
      unenforceable, or institutes any litigation or other action or proceeding
      designed to deny, or to recover from, the Executive the benefits provided
      or intended to be provided to the Executive hereunder, the Company
      irrevocably authorizes the Executive from time to time to retain counsel
      of the Executive’s choice, at the expense of the Company as hereafter
      provided, to advise and represent the Executive in connection with any
      such interpretation, enforcement or defense, including without limitation
      the initiation or defense of any litigation or other legal action, whether
      by or against the Company or any Director, officer, stockholder or other
      person affiliated with the Company, in any
      jurisdiction.  Notwithstanding any existing or prior
      attorney-client relationship between the Company and such counsel, the
      Company irrevocably consents to the Executive’s entering into an
      attorney-client relationship with such counsel and, in that connection,
      the Company and the Executive agree that a confidential relationship will
      exist between the Executive and such counsel.  Without respect
      to whether the Executive prevails, in whole or in part, in connection with
      any of the foregoing, the Company will pay and be solely financially
      responsible for or will reimburse any and all attorneys’ and related fees
      and expenses incurred by the Executive in connection with any of the
      foregoing, regardless of amount.  Any such payment or
      reimbursement shall be for expenses incurred by the Executive during his
      lifetime, and such payment or reimbursement shall be made not later than
      December 31st of the year following the year in which the Executive incurs
      the expense; provided, that in no
      event will the amount of expenses eligible for payment or reimbursement in
      one year affect the amount of expenses to be paid or reimbursed in any
      other taxable year.

            

    

     

    
      	
              8.  

            	
              Competitive
      Activity.  During a period ending one year following the
      Executive’s Separation from Service, if the Executive has received or is
      receiving benefits under Section 4, the Executive will not, without the
      prior written consent of the Company, which consent will not be
      unreasonably withheld, engage in any Competitive
  Activity.

            

    

     

    
      	
              9.  

            	
              Employment
      Rights.  Nothing expressed or implied in this Agreement
      will create any right or duty on the part of the Company or the Executive
      to have the Executive remain in the employment of the Company or any
      Subsidiary prior to or following any Change in Control.  Any
      Separation from Service of the Executive or the removal of the Executive
      from the office or position in the Company or any Subsidiary that follows
      the commencement of any discussion with a third person that ultimately
      results in a Change in Control will be deemed to be a Separation from
      Service or removal of the Executive following the Change in Control for
      purposes of this Agreement; provided, however, that
      for purposes of determining the timing of any payments to be made pursuant
      to Section 4(c) or Paragraphs (1) through (5) of Annex A, the schedules of
      payments described therein shall be measured from the date of the Change
      in Control rather than from the date of the Executive’s Separation from
      Service.

            

    

     

    
      	
              10.  

            	
              Withholding of
      Taxes.  The Company may withhold from any amounts payable
      under this Agreement all federal, state, city or other taxes as the
      Company is required to withhold pursuant to any law or government
      regulation or ruling.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     11. Successors and Binding
Agreement.

     

    
      	
              (a)  

            	
              The
      Company will require any successor (whether direct or indirect, by
      purchase, merger, consolidation, reorganization or otherwise) to all or
      substantially all of the business or assets of the Company, by agreement
      in form and substance satisfactory to the Executive, expressly to assume
      and agree to perform this Agreement in the same manner and to the same
      extent the Company would be required to perform if no such succession had
      taken place.  This Agreement will be binding upon and inure to
      the benefit of the Company and any successor to the Company, including
      without limitation any persons acquiring directly or indirectly all or
      substantially all of the business or assets of the Company whether by
      purchase, merger, consolidation, reorganization or otherwise (and such
      successor will thereafter be deemed the “Company” for the purposes of this
      Agreement), but will not otherwise be assignable, transferable or
      delegable by the Company.

            

    

     

    
      	
              (b)  

            	
              This
      Agreement will inure to the benefit of and be enforceable by the
      Executive’s personal or legal representatives, executors, administrators,
      successors, heirs, distributees and
legatees.

            

    

     

    
      	
              (c)  

            	
              This
      Agreement is personal in nature and neither of the parties hereto will,
      without the consent of the other, assign, transfer or delegate this
      Agreement or any rights or obligations hereunder except as expressly
      provided in Sections 11(a) and 11(b).  Without limiting the
      generality or effect of the foregoing, the Executive’s right to receive
      payments hereunder is not assignable, transferable or delegable, whether
      by pledge, creation of a security interest, or otherwise, other than by a
      transfer by Executive’s will or by the laws of descent and distribution
      and, in the event of any attempted assignment or transfer contrary to this
      Section 11(c), the Company will have no liability to pay any amount
      so attempted to be assigned, transferred or
  delegated.

            

    

     

    12. Section 409A of the
Code.

     

    
      	
               
      

            	
              (a)

            	
              To
      the extent applicable, it is intended that the compensation arrangements
      under this Agreement be in full compliance with Section 409A of the
      Code.  This Agreement shall be construed in a manner to give
      effect to such intention.  Reference to Section 409A of the Code
      includes any proposed, temporary or final regulations, or any other
      guidance, promulgated with respect to such Section by the U.S. Department
      of the Treasury or the Internal Revenue
Service.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Notwithstanding
      any provision of this Agreement to the contrary, in light of the
      uncertainty with respect to the proper application of Section 409A of the
      Code, the Company reserves the right to make amendments to this Agreement
      as the Company deems necessary or desirable to avoid the imposition of
      taxes or penalties under Section 409A of the Code.  In any case,
      the Executive shall be solely responsible and liable for the satisfaction
      of all taxes and penalties that may be imposed on the Executive or for the
      Executive’s account in connection with this Agreement (including any taxes
      and penalties under Section 409A of the Code), and neither the Company nor
      any of its affiliates shall have any obligation to indemnify or otherwise
      hold the Executive harmless from any or all such taxes or
      penalties.

            

    

     

    
      	
              13.  

            	
              Notices.  For
      all purposes of this Agreement, all communications, including without
      limitation notices, consents, requests or approvals, required or permitted
      to be given hereunder will be in writing and will be deemed to have been
      duly given when hand delivered or dispatched by electronic facsimile
      transmission (with receipt thereof orally confirmed), or five business
      days after having been mailed by United States registered or certified
      mail, return receipt requested, postage prepaid, or one business day after
      having been sent by a nationally recognized overnight courier service such
      as Federal Express, UPS, or Purolator, addressed to the Company (to the
      attention of the Secretary of the Company) at its principal executive
      office and to the Executive at his principal residence, or to such other
      address as any party may have furnished to the other in writing and in
      accordance herewith, except that notices of changes of address will be
      effective only upon receipt.

            

    

     

    
      	
              14.  

            	
              Governing
      Law.  The validity, interpretation, construction and
      performance of this Agreement will be governed by and construed in
      accordance with the substantive laws of the State of Indiana, without
      giving effect to the principles of conflict of laws of such
      State.

            

    

     

    
      	
              15.  

            	
              Validity.  If
      any provision of this Agreement or the application of any provision hereof
      to any person or circumstances is held invalid, unenforceable or otherwise
      illegal, the remainder of this Agreement and the application of such
      provision to any other person or circumstances will not be affected, and
      the provision so held to be invalid, unenforceable or otherwise illegal
      will be reformed to the extent (and only to the extent) necessary to make
      it enforceable, valid or legal.

            

    

     

    
      	
              16.  

            	
              Miscellaneous.  No
      provision of this Agreement may be modified, waived or discharged unless
      such waiver, modification or discharge is agreed to in writing signed by
      the Executive and the Company.  No waiver by either party hereto
      at any time of any breach by the other party hereto or compliance with any
      condition or provision of this Agreement to be performed by such other
      party will be deemed a waiver of similar or dissimilar provisions or
      conditions at the same or at any prior or subsequent time.  No
      agreements or representations, oral or otherwise, expressed or implied
      with respect to the subject matter hereof have been made by either party
      which are not set forth expressly in this Agreement.  References
      to Sections are to references to Sections of this
    Agreement.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
                        17.

            	
              Non-solicitation.
      Executive agrees that beginning on the date of Separation from Service and
      continuing until the first anniversary of the last day of the Severance
      Period, he/she shall not, either alone or in association with others (i)
      solicit, or facilitate any organization with which the Executive is
      associated in soliciting, any employee of the Company or any of its
      subsidiaries to leave the employ of the Company or any of its
      subsidiaries; (ii) solicit for employment, hire or engage as an
      independent contractor, or facilitate any organization with which the
      Executive is associated in soliciting for employment, hire or engagement
      as an independent contractor, any person who was employed by the Company
      or any of its subsidiaries at any time during the term of the Executive's
      employment with the Company or any of its subsidiaries; provided, however that
      this clause shall not apply to any individual whose employment with the
      Company or any of its subsidiaries has been terminated for a minimum of
      one year preceding any such
solicitation.

            

    

     

    
      	
               
      

            	
              18.

            	
              Counterparts.  This
      Agreement may be executed in one or more counterparts, each of which will
      be deemed to be an original but all of which together will constitute one
      and the same agreement.

            

    

     

    [FOR
EXECUTIVES WHO ARE PARTIES TO SEVERANCE AGREEMENTS:

     

    
      	
               
      

            	
              19.

            	
              Prior
      Agreement.  This Agreement
      amends and restates the Prior Agreement, which will, without further
      action, be superseded as of the date first above
      written.]

            

    

     

    
 

     

     

     

     

    
 

    IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and
delivered as of the date first above written.

     

    
      
        	 	CTS
CORPORATION	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	 	Name 	 
	 	 	
                Title 

                 

                 

                 

                 

              	 

      

    

    

    
      
        	
                 

              	
                 

              	 	 
	 	 	Executive	 
	 	 	 	 
	 	 	 	 

      

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    

    Annex
A

     

    Severance
Compensation

     

    
      	
              (1)  

            	
              A
      lump sum payment in an amount equal to [TIER 1: 3/
      TIER 2: 1.5] times the sum of (A) Base Pay (at
      the rate in effect immediately prior to the Change in Control or, if
      greater, the average Base Pay over the three years prior to the date of
      the Executive’s Separation from Service), plus (B) Incentive Pay
      (determined in accordance with Section 1(i)).  Such payment
      shall be made as soon as practicable after the Executive’s Separation from
      Service, but not more than 90 days after the date of the Executive’s
      Separation from Service; provided, however, that
      if the Executive is a Specified Employee, such payment shall be made on
      the earlier of (a) the first day of the seventh month following the
      date of the Executive’s Separation from Service, or (b) the
      Executive’s death.

            

    

     

    
      	
              (2)  

            	
              For
      a period of [TIER 1: 36/ TIER 2:
      12] months following the date of the Executive’s Separation
      from Service (the “Continuation Period”), the Company will make available
      to the Executive at the Executive’s expense the medical and dental
      benefits (but not long-term or short-term disability benefits) that the
      Executive was eligible to receive as of the date of the Executive’s
      Separation from Service (or, if greater, immediately prior to the
      reduction, termination or denial described in Section
      3(b)(ii)).  The Company will reimburse the Executive, on a
      taxable basis, for the amount of the premiums paid for such coverage that
      is in excess of the contribution rate established by the Company for
      active employees necessary to maintain such coverage for such period,
      provided that the Executive makes a payment to the Company in an amount
      equal to the full monthly premium payments (taking into account employer
      and employee contributions) required to maintain such coverage on the
      first day of each calendar month commencing with the first calendar month
      following the date of the Executive’s Separation from
      Service.  If and to the extent that the coverage described in
      this Paragraph 2 is not or cannot be paid or provided under any policy,
      plan, program or arrangement of the Company or any Subsidiary, as the case
      may be, then the Company will itself pay or provide for such coverage to
      the Executive, his dependents and beneficiaries.  In the case of
      any benefit described in this Paragraph 2 which is subject to tax
      only because it is not or cannot be paid or provided under any such
      policy, plan, program or arrangement of the Company or any Subsidiary,
      Company shall reimburse Executive or his dependents or beneficiaries, as
      the case may be, an amount equal to the additional amount of income taxes
      incurred by the Executive, dependents or beneficiaries therefor; provided, however, that
      any such reimbursement shall be made no later than December 31st of the
      year following the year in which the applicable taxes are
      remitted.  All payments of benefits or reimbursements of
      premiums under the Company’s medical and dental programs or other
      reimbursements shall be made no later than December 31 of the year
      following the year in which the Executive incurs the related
      expenses.  In no event will the benefits and reimbursements
      provided by the Company in one taxable year affect the amount of expenses
      or reimbursements that the Company is obligated to pay, or in-kind
      benefits to be provided in any other taxable year.  The
      Executive’s right to reimbursements of premiums and benefits shall not be
      subject to liquidation or exchange for another
      benefit.  Notwithstanding the foregoing, or any other provision
      of the Agreement, for purposes of determining the period of continuation
      coverage to which the Executive or any of his dependents is entitled
      pursuant to Section 4980B of the Code under the Company’s medical,
      dental and other group health plans, or successor plans, the Executive’s
      “qualifying event” will be the termination of the Continuation Period and
      for such purpose the Executive will be considered to have remained
      actively employed on a full-time basis through that
      date.  Without otherwise limiting the purposes or effect of
      Section 6, the medical and dental benefit coverage otherwise available to
      the Executive pursuant to this Paragraph 2 will be terminated to the
      extent that the Executive is covered under a comparable welfare benefit
      plan maintained by another employer during the Continuation Period
      following the Executive’s Separation from Service.  The
      Executive agrees to notify the Company within 14 days of becoming covered
      under a medical or dental plan maintained by another employer. [In addition to
      the medical and dental benefit coverage made available under this
      Paragraph 2, the Executive will be deemed to have completed an additional
      period of service equal to the Continuation Period for purposes of
      determining eligibility service under the CTS Post-Retirement Life
      Insurance Benefit.]3

            

    

     

    
      	
              (3)  

            	
              In
      addition to the retirement, supplemental executive retirement, and other
      benefits, if any, to which the Executive is entitled under the Company’s
      Retirement Plans, a lump sum payment in an amount equal to the excess of
      (x) the actuarial present value of the retirement benefits to which
      the Executive would have been entitled under the Retirement Plans, without
      regard to any amendment to the Retirement Plans made subsequent to a
      Change in Control which affects in any way the computation of retirement
      benefits thereunder in a manner adverse to the Executive, if the Executive
      had continued to be employed, and had been credited with age and service
      credits for all purposes under the Retirement Plans, through the
      Continuation Period, and to have received during such Continuation Period
      the Executive’s Base Pay (as determined in Paragraph 1 of this Annex A)
      and Incentive Pay (as determined in Paragraph 1 of this Annex A); and
      provided that (i) to the extent that a cash bonus earned under the
      1988 Restricted Stock and Cash Bonus Plan (as amended and restated on
      May 9, 1997) and payable upon a Change in Control is not otherwise
      included in determining the Executive’s compensation for purposes of
      calculating the amount of the Executive’s aggregate benefits under the CTS
      Corporation Pension Plan and the Executive’s Individual Excess Retirement
      Benefit Plan, the amount of such cash bonus shall be included in
      determining compensation for purposes of such plans in the calculations
      under this subparagraph (x), and (ii) the calculations under this
      subparagraph (x) shall be made as if the Executive were fully vested in
      such benefits, over (y) the actuarial present value of the retirement
      benefits that the Executive is entitled to receive (either immediately or
      on a deferred basis) under the Retirement Plans.  For purposes
      of this subsection, “actuarial present value” will be determined as of the
      date of payment by applying a discount factor equal to the annual rate of
      interest provided by applying a discount factor equal to the annual rate
      of interest provided by 30-year Treasury securities, determined for the
      second calendar month preceding the first day of the Plan Year which
      includes the date on which the distribution is paid, and by using the
      mortality table as prescribed in Revenue Ruling 2001-62.  Such payment
      shall be made as soon as practicable after the Executive’s Separation from
      Service, but not more than 90 days after the date of the Executive’s
      Separation from Service; provided, however, that
      if the Executive is a Specified Employee, such payment shall be made on
      the earlier of (a) the first day of the seventh month following the
      date of the Executive’s Separation from Service, or (b) the
      Executive’s death.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
      	
              (4)  

            	
              A
      lump sum payment in an amount equal to [TIER 1: [0.90]/TIER 2:
      [0.96]] multiplied by the number of months in the Continuation
      Period multiplied by 1/12th
      of the product of (x) the annual average of the portion of the Executive’s
      actual contribution percentage (within the meaning of Section 401(m) of
      the Code) under the CTS Corporation Retirement Savings Plan (the “401(k)
      Plan”) that is attributable to Company matching contributions for the
      three plan years preceding the date of the Executive’s Separation from
      Service (or, if less, for the number of plan years that the Executive was
      eligible to participate in the 401(k) Plan) and (y) the lesser of (i) the
      sum of the Executive’s Base Pay (as determined in Paragraph 1 of this
      Annex A) and Incentive Pay (as determined in Paragraph 1 of this Annex A)
      and (ii) the maximum amount of compensation permitted to be taken into
      account under the 401(k) Plan for the year containing the date of the
      Executive’s Separation from Service under Section 401(a)(17) of the
      Code.  Such payment shall be made as soon as practicable after
      the Executive’s Separation from Service, but not more than 90 days after
      the date of the Executive’s Separation from Service; provided, however, that
      if the Executive is a Specified Employee, such payment shall be made on
      the earlier of (a) the first day of the seventh month following the
      date of the Executive’s Separation from Service, or (b) the
      Executive’s death.

            

    

    
    

    
      	
               
      

            	
                      
      (5)

            	
              Reimbursement
      of an amount up to [TIER 1: $30,000/ TIER 2:
      $15,000] for outplacement services that are obtained during the
      Continuation Period by a firm selected by the Executive; provided, however, that
      in no event shall expenses incurred after December 31 of the second
      year following the year in which the Executive’s Separation from Service
      occurs be eligible for reimbursement hereunder, and all reimbursements
      hereunder shall be paid to Executive no later than December 31 of the
      third year following the year in which the Executive’s Separation from
      Service occurs.

            

    

     

    
      	
               
      

            	
                      
      (6)

            	
              [FOR TIER 1 ONLY]
      Reimbursement for fees and expenses incurred during the Continuation
      Period by the Executive in seeking legal, tax and estate planning advice
      in connection with the regular operation of this Agreement and the payment
      of benefits and amounts hereunder.  Any such reimbursement shall
      be made not later than December 31 of the calendar year following the
      calendar year in which the Executive incurs the expense.  In no
      event may the amount of expenses reimbursed by the Company in one calendar
      year affect the amount of expenses eligible for reimbursement in any other
      calendar year.

            

    

     

    
 

     _____________________________

    3
Include where applicable – coordinate with insurer.

     

    
      
        
        

      

      
        11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]