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<SEC-DOCUMENT>0000026058-08-000004.txt : 20080123
<SEC-HEADER>0000026058-08-000004.hdr.sgml : 20080123
<ACCEPTANCE-DATETIME>20080123161333
ACCESSION NUMBER:		0000026058-08-000004
CONFORMED SUBMISSION TYPE:	8-K
CONFIRMING COPY:	
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20080123
ITEM INFORMATION:		Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
FILED AS OF DATE:		20080123
DATE AS OF CHANGE:		20080123

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CTS CORP
		CENTRAL INDEX KEY:			0000026058
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC COMPONENTS & ACCESSORIES [3670]
		IRS NUMBER:				350225010
		STATE OF INCORPORATION:			IN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-04639

	BUSINESS ADDRESS:	
		STREET 1:		905 WEST BOULEVARD NORTH
		CITY:			ELKHART
		STATE:			IN
		ZIP:			46514
		BUSINESS PHONE:		5742937511

	MAIL ADDRESS:	
		STREET 1:		905 W BLVD NORTH
		CITY:			ELKHART
		STATE:			IN
		ZIP:			46514
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k.htm
<DESCRIPTION>FORM 8-K 1-23-2008
<TEXT>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">UNITED
        STATES</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SECURITIES
        AND EXCHANGE COMMISSION</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Washington,
        D.C.&#160;&#160;20549</font></div>
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      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">FORM
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
        Report</font></div>
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        of
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">CTS
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                  Indiana</font></font></div>
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        Telephone Number, Including Area
        Code:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(574)
        523-3800</font></div>
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        the
        appropriate box below if the Form 8-K filing is intended to simultaneously
        satisfy the filing obligation of the Company under any of the following
        provisions:</font></div>
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                  communications pursuant to Rule 425 under the Securities Act (17
                  CFR
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                  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
                  240.14a-12)</font></div>
              </td>
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            <tr>
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                  (17 CFR
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
        5.02&#160;&#160;&#160;&#160;&#160;&#160;&#160;Departure of Directors or Certain
        Officers; Election of Directors; Appointment of CertainOfficers; Compensatory
        Arrangements of Certain Officers.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="LETTER-SPACING: 9pt">&#160;&#160;&#160;&#160;</font>&#160;On
        January 22,
        2008, CTS Corporation, an Indiana corporation (the &#8220;Company&#8221;), entered into a
        severance agreement (the &#8220;Severance Agreement&#8221;) with its Chief Financial
        Officer, Donna L. Belusar (the &#8220;Executive&#8221;), upon terms similar to those in its
        severance agreements with other key Company executives.&#160;&#160;</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Severance Agreement becomes operative only upon a change-in-control of the
        Company.&#160;&#160;A &#8220;change-in-control&#8221; is defined generally as: (1) the
        acquisition by any person of 25% or more of the Company&#8217;s voting stock, subject
        to certain exceptions; (2) the incumbent board members ceasing to constitute
        a
        majority of the board; (3) a reorganization, merger, consolidation, or sale
        of
        all or substantially all of the Company&#8217;s assets, subject to certain exceptions;
        or (4) the approval by the Company&#8217;s shareholders of a complete liquidation or
        dissolution of the Company, subject to certain exceptions.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Executive is entitled to severance compensation if within three years after
        a
        change-in-control, she terminates her employment for good reason or her
        employment is terminated by the Company or its successor for any reason other
        than cause, disability or death; provided, that on each anniversary of a
        change-in-control, such three-year period is automatically extended for one
        year
        unless either party provides notice otherwise.&#160;&#160;&#8220;Good reason&#8221; is
        defined generally as: (1) the failure to maintain the Executive in her office
        or
        position or an equivalent or better office or position; (2) a significant
        adverse change in the nature of the Executive's duties; (3) a reduction in
        the
        Executive's base or incentive pay or an adverse change in any employee benefits;
        (4) the Executive's good faith determination that, as a result of a change
        in
        circumstances following the change-in-control, she is unable to carry out
        or has
        suffered a substantial reduction in the duties she had prior to the
        change-in-control; (5) a successor entity's failure to assume all obligations
        of
        the Company under the Severance Agreement; (6) the Company or its successor
        moves the Executive's principal work location by more than 35 miles or requires
        her to travel at least 20% more; (7) the Company or its successor commits
        any
        material breach of the Severance Agreement; or (8) the Company&#8217;s stock ceases to
        be registered or publicly traded or listed on the New York Stock Exchange
        or the
        Nasdaq Stock Market.&#160;&#160;An Executive who separates from service after
        the commencement of discussions with a third party that ultimately results
        in a
        change-in-control may be treated as separating from service following the
        change-in-control for purposes of the Severance Agreement.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        severance compensation to which the Executive is entitled
        includes:&#160;&#160;(1) a lump sum equal to three times the sum of (A) the
        greater of (i) the Executive's base salary at the time of the change-in-control
        or (ii) her average base salary over the three years prior to termination
        plus
        (B) the greater of (i) her average incentive pay over the three years prior
        to
        the change-in-control or (ii) her target incentive pay for the year in which
        the
        change-in-control occurred; (2) continued availability of medical and dental
        benefits for 36 months following termination at the Executive&#8217;s expense, with
        the Company reimbursing the Executive for the portion of the premium in excess
        of the employee share for such coverage (and if such coverage causes the
        Executive to incur tax because it cannot be provided by a Company plan, the
        Company will reimburse the Executive for such additional tax); provided,
        that
        the obligation to provide these benefits will be reduced to the extent medical
        and dental benefits are provided by another employer; (3) a lump sum payment
        equal to (A) 0.90 times a variable number of months times 1/12<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: super">th</font>
        of the
        Executive&#8217;s average matching contribution percentage under the Company&#8217;s 401(k)
        plan for the three prior years times (B) the lesser of the Executive&#8217;s salary
        and incentive pay or the maximum amount of compensation that may be taken
        into
        account under the 401(k) plan, to compensate for the amounts that the Company
        would have contributed to the Executive&#8217;s 401(k) plan account had she remained
        employed for 36 months following her termination; (4) reimbursement of up
        to
        $30,000 for outplacement services; (5) reimbursement of legal, tax and estate
        planning expense related to the Severance Agreement; (6) a lump sum payment
        equal to the Executive&#8217;s target incentive pay for the year in which the
        termination occurs, prorated based on her number of months of actual service
        during the year; and (7) accelerated vesting, exercise rights and lapse of
        restrictions on all equity-based compensation awards.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        addition, if any payments made to the Executive are subject to excise tax
        under
        the &#8220;golden parachute&#8221; rules of Sections 280G and 4999 of the Internal Revenue
        Code of 1986, as amended (the &#8220;Code&#8221;), she will receive an additional payment to
        put her in the same after-tax position as if no excise tax had been
        imposed.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        payment scheme is designed to comply with Section 409A of the Code; lump
        sum
        payments of severance compensation are generally to be made as soon as
        practicable but not more than ninety days after the Executive separates from
        service; provided, however, that if the Executive is a &#8220;Specified Employee&#8221;
within the meaning of Section 409A of the Code, then the payment shall be
        made
        on the earlier of the first day of the seventh month following the date of
        the
        Executive&#8217;s separation from service or the Executive&#8217;s death.&#160;&#160;Payment
        of severance compensation under the Severance Agreement will be reduced to
        the
        extent of any corresponding payments under any other
        agreement.&#160;&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
        the
        extent that the Executive receives severance benefits under the Severance
        Agreement, the Executive may not, for a period of one year following her
        termination date, participate in the management of any business which engages
        in
        substantial and direct competition with the Company or its
        successor.&#160;&#160;In addition, for a period of three years after separation
        from service, the Executive may not solicit any Company employee to leave
        employment with the Company or any of its subsidiaries, may not hire or engage
        any person who was employed with the Company or any of its subsidiaries,
        and may
        not assist any organization with whom the Executive is associated in taking
        such
        actions.&#160;&#160;The Executive is generally entitled to be reimbursed by the
        Company for legal fees incurred to enforce her rights under the Severance
        Agreement.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        term
        of the Severance Agreement begins January 22, 2008 and ends December 31,
        2011.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div><br>
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        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div><br>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">SIGNATURES</font></font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the requirements of the Securities Exchange Act of 1934, the Company has
        duly
        caused this report to be signed on its behalf by the undersigned hereunto
        duly
        authorized.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 180pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CTS
        CORPORATION</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;&#160;&#160;
<font style="DISPLAY: inline; TEXT-DECORATION: underline">/s/&#160;&#160;&#160;Richard
        G. Cutter, III</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;&#160;&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;&#160;&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;&#160;&#160;</font><font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 180pt"></font>By:&#160;&#160;&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;</font>&#160;
Richard
        G. Cutter,
        III</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB1" style="MARGIN-LEFT: 180pt"></font>&#160;&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;
</font>Vice
        President, Secretary, and
        General Counsel</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:&#160;&#160;January
        23, 2008</font></div><br></div>
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