This AGREEMENT entered into this 24th day of June, 1994, by and between CTS Corporation, an Indiana
corporation ("Company"), and JOSEPH P. WALKER, residing at 56179 Dana Drive, Bristol, Indiana, 46507,
("Employee") to evidence employment of the Employee by the Company under the following terms and
1. EMPLOYMENT TERM. The Company agrees to employ Employee, and Employee accepts employment as
Chairman of the Board, President and Chief Executive Officer of the Company for a term of three years
commencing on June 24, 1994.
2. DUTIES. The Employee shall exert his best efforts and devote substantially all of his time and attention to the
affairs of the Company. The Employee shall be in charge of the operation of the Company, and shall have full
authority and responsibility, subject to the direction, approval, and control of the Board of Directors of the
Company, for formulating policies and operating the Company.
3. SALARY. For all services rendered by the Employee, the Company shall pay the Employee, as regular
compensation, a salary of three hundred nineteen thousand seven hundred twenty-five dollars ($319,725) per
year, payable in equal monthly installments subject to applicable withholdings, commencing on July 1, 1994.
4. ADJUSTMENT OF SALARY. The Board of Directors of CTS may at any time or from time to time change
the regular compensation provided for in the preceding paragraph or otherwise change the benefits receivable by
the Employee under this Employment Contract and the performance of Employee shall be reviewed annually on
or about the anniversary date of this contract for the purpose of considering whether an adjustment should be
made in Employee's regular compensation. In the event that such regular compensation shall be increased, then,
from and after the date of such increase, such regular compensation shall be deemed to be the amount as so
5. VACATION. Employee shall be entitled to four (4) weeks vacation during each y