CTS Corporation
Form 10-Q
Second Quarter 2006
EXHIBIT (10)(b)
DIRECTOR AND NAMED EXECUTIVE OFFICER COMPENSATION
Director Compensation
Employee directors receive no additional compensation for serving on the Board of Directors or Board
Committees. The non-employee director fees established by the Board on June 7, 2006 are as follows: annual
board retainer — $30,000; annual retainer for each Audit Committee member — $5,000; annual retainer for
each Compensation Committee member — $5,000: annual retainer for each Finance and Nominating and
Governance Committee member — $3,000; annual retainer for each Leadership Continuity Committee member
— $4,000; additional annual retainer for Audit Committee Chairman — $5,000; additional annual retainer for
Compensation Committee Chairman — $5,000; additional annual retainer for Finance and Nominating and
Governance Chairman — $3,000; additional annual retainer for Leadership Continuity Committee Chairman —
$4,000; meeting fee for each Board or Committee Meeting — $1,500. All committee meetings, including special
meetings called by the committee chairman, are compensated at the regular meeting fee rate. Special activity by
the committee chairman, as well as any special activity by another committee member that is requested or
approved by the committee chairman, is also compensated at the regular meeting fee rate. Non-employee
directors are reimbursed by the corporation for reasonable travel expenses related to their performance of
services and for director education programs.
In 1990, CTS adopted the Stock Retirement Plan for Non-Employee Directors. Under that plan, a deferred
stock unit account was established for each non-employee director. Through January 2004, 800 common stock
units and additional units representing dividends on CTS common stock paid were credited annually to each non-
employee director’s account. When a non-employee director retires from the Board, he or she receives one
share of CTS common stock for each deferred