Document:

exhibit10-1.htm

    Exhibit 10.1 

     

    CONSENT AND THIRD AMENDMENT TO
VISHAY INTERTECHNOLOGY, INC.
FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

     

         THIS CONSENT AND THIRD AMENDMENT
(“Third
Amendment”) is made as of this June 11, 2010, by and among the financial
institutions signatory hereto (individually a “Lender,” and any and all such
financial institutions collectively, the “Lenders”), Comerica Bank, as
Administrative Agent for the Lenders (in such capacity, the “Agent”), Vishay
Intertechnology, Inc. (“Vishay”) and the other Permitted Borrowers as defined
therein (together with Vishay, the “Borrowers”). 

     

    RECITALS 

     

         A. The Borrowers have entered into that
certain Fourth Amended and Restated Credit Agreement dated as of June 24, 2008
(as amended, supplemented, amended and restated or otherwise modified from time
to time, the “Credit Agreement”) with each of the Lenders and the Agent pursuant
to which the Lenders agreed, subject to the satisfaction of certain terms and
conditions, to extend or to continue to extend financial accommodations to the
Borrowers, as provided therein, which has been previously amended by that
certain First Amendment dated as of December 12, 2008 and that certain Second
Amendment dated as of July 31, 2009. 

     

         B. Vishay has notified the Agent and
the Lenders that it and certain of its Subsidiaries intend to transfer their
measurement and foil resistor and related assets (“Measurement and Foil Resistor
Assets”), which will be more particularly described in a Master Separation and
Distribution Agreement (“Separation and Distribution Agreement”) to be entered
into between Vishay and Vishay Precision Group Inc. (“VPG”) substantially in the
form of the draft delivered to Agent on May 19, 2010 (with any material changes
to be acceptable to Agent), to VPG and certain foreign and domestic Subsidiaries
of VPG (collectively, the “VPG Entities”) pursuant to the transaction steps
outlined in Annex A to this Third Amendment
(“Transaction Steps”), and subsequently to spin-off the VPG Entities to the
owners of the Equity Interests of Vishay (“Vishay Shareholders”) by a dividend
of the Equity Interests of the VPG Entities (“VPG Spin-Off”).

     

         C. The Agent and the Lenders have
agreed to consent to the foregoing transactions and to make certain amendments
and modifications to the Credit Agreement in each case as described below, but
only on the terms and conditions set forth in this Third Amendment.

     

         NOW THEREFORE, in consideration of the foregoing
and for other good and valuable consideration the receipt and sufficiency of
which is hereby acknowledged, Borrowers, Agent and the Lenders agree:

     

    1. The Agent and the requisite Lenders hereby:
(a) consent to (i) the transfer or contribution of the Measurement and Foil
Resistor Assets to the VPG Entities (whether through direct

     

    1

     

    

    
    

    transfers
or contributions or through a series of transfers and contributions by and among
the VPG Entities), (ii) the merger or consolidation of any Subsidiaries that own
any Measurement and Foil Resistor Assets into or with any of the VPG Entities in
order to facilitate the VPG Spin-Off, which such Subsidiaries are identified in
the Separation and Distribution Agreement or the Transaction Steps or otherwise
approved by Agent and (iii) the performance of the other Transaction Steps, all
provided that (x) at the time of any such merger or consolidation, substantially
all of the assets owned by such Subsidiaries consist of Measurement and Foil
Resistor Assets (such Subsidiaries shall be referred to herein as the “Permitted
Spin-Off Subsidiaries”) and (y) the aggregate net book value of the Measurement
and Foil Resistor Assets at the time of the consummation of the VPG Spin-Off
(meaning “total assets” on the date of the VPG Spin-Off, measured in accordance
with GAAP, and presented in a manner consistent with the combined and
consolidated financial statements which appear in VPG’s registration statement
on Form 10 filed with the U.S. Securities and Exchange Commission on March 31,
2010) shall not exceed $250,000,000, all such consents to be given retroactive
effect to the date such actions were taken, (b) consent to the cash payment by
Vishay to VPG, as a capital contribution deemed to have been made immediately
prior to the VPG Spin-Off under Section 2.17 of the Separation and Distribution
Agreement in respect of VPG Net Cash (as defined therein), provided that, (i) at
the time of such payment, no Event of Default under Sections 9.1(a), 9.1(b) or
9.1(j) of the Credit Agreement has occurred and is continuing and (ii) if the
amount of such cash payment had been added to the aggregate net book value of
the Measurement and Foil Resistor Assets at the time of the consummation of the
VPG Spin-Off (as determined above), such aggregate amount would still not have
exceeded $250,000,000; (c) consent to the dividend of the Equity Interests of
the VPG Entities to the Vishay Shareholders, provided that the VPG Entities do
not own any assets other than the Measurement and Foil Resistor Assets and the
Equity Interests of the Permitted Spin-Off Subsidiaries, (d) consent to the
release of the Guaranties of any Permitted Spin-Off Subsidiaries and to the
release of Liens granted to the Agent over the Equity Interests of the Permitted
Spin-Off Subsidiaries and the Measurement and Foil Resistor Assets upon the
receipt by Agent of satisfactory evidence of the consummation of the VPG
Spin-Off in compliance with this Third Amendment, which releases shall be deemed
to occur simultaneously with the consummation of the VPG Spin-Off, (e) agree to
amend Section 7.4 as set forth in this Third Amendment, such amendment to become
effective as of the last day of the fiscal quarter during which the VPG Spin-Off
shall have been consummated and (f) agree (i) that the distributions,
contributions and other transfers (including any sales) of the Measurement and
Foil Assets as part of the Transaction Steps shall not constitute Asset Sales
under the Credit Agreement, (ii) that the transfer of assets, as consented to in
clause (a) above, shall be excluded from the calculation of the limits set forth
in Section 8.2(f) of the Credit Agreement and (iii) that any intercompany loans
made as part of the Transaction Steps (other than any such loans made by Company
or a Domestic Subsidiary (other than VPG) which remain outstanding after the VPG
Spin-Off) shall not be required to be evidenced by Intercompany Notes or
encumbered under any of the Collateral Documents; in each case as to clauses (a)
through (f) hereof, provided that (X) the conditions set forth in Section 19 of
this Third Amendment have been satisfied, (Y) the VPG Spin-Off is consummated on
or before December 31, 2010 and (Z) no Default or Event of Default exists at the
time the VPG Spin-Off is consummated after giving effect to this Third
Amendment. If the VPG Spin-Off is not consummated on or before December 31,
2010, the Company agrees promptly to deliver, or cause to be delivered, to
Agent, with respect to each VPG Entity, the applicable Pledge 

     

    2

     

    

    
    

    Agreements,
Guaranties, other Collateral Documents and other documents that would be
required to be delivered with respect to such entity under Section 7.16.

     

    2. Section 1 of the Credit Agreement is hereby
amended as follows: 

     

    
      	     	
                   (a) The following definitions are
      hereby added to Section 1 of the Credit Agreement: 

               

                   “Israeli-Owned Subsidiaries”
      shall mean each Subsidiary of the Company which is owned, directly or
      indirectly, by an Israeli Subsidiary and which is not, itself, an Israeli
      Subsidiary.

               

                   “Third Amendment” shall mean
      the Consent and Third Amendment to Vishay Intertechnology, Inc. Fourth
      Amended and Restated Credit Agreement dated as of June 11,
      2010.

               

                   “VPG Spin-Off” is defined in
      Section 1 of the Third Amendment. 

               

                   “VPG Spin-Off Effective Date”
      shall mean the date that the VPG Spin-Off has been
      consummated.

               

                   (b) The definition of “Equity
      Offering”
      is amended to add the following sentence to the end of such definition:
      

               

                   “For avoidance of doubt, the
      VPG Spin-Off shall not be deemed to be an Equity Offering.”
      

               

                   (c) The following definition is
      amended and restated in its entirety, as follows: 

               

                   “Wholly Owned Subsidiary(ies)”
      shall mean any of Company’s direct or indirect Subsidiaries whose Equity
      Interests (other than directors’ or qualifying shares to the extent
      required under applicable law) are owned entirely by any other Wholly
      Owned Subsidiary and/or Company, and for the avoidance of doubt, shall
      include the Israeli Subsidiaries and the Israeli-Owned Subsidiaries.
      

            	     

    

     

    3. Section 7.3(h) of the Credit Agreement is
hereby amended and restated as follows:

     

    
      	     	
                   “(h) promptly following the
      consummation of the VPG Spin-Off, deliver to Agent evidence satisfactory
      to Agent that the VPG Spin-Off has been consummated; and”
      

            	     

    

     

    4. Section 7.4 of the Credit Agreement is
hereby amended and restated (such amendment and restatement not to become
effective unless and until the occurrence of the VPG Spin-Off, as set forth
above), as follows: 

     

    3

     

    

    
    

    
      	     	
              “7.4 Tangible New
      Worth. Maintain, on a Consolidated
      basis, as of the last day of each fiscal quarter, (i) beginning with the
      fiscal quarter ending December 31, 2006 to but not including the fiscal
      quarter during which the VPG Spin-Off Effective Date occurs, Tangible Net
      Worth in an amount not less than One Billion Dollars ($1,000,000,000),
      plus the sum of the Net Income Adjustment and the Equity Offering
      Adjustment and (ii) beginning with the fiscal quarter during which the VPG
      Spin-Off occurs, Tangible Net Worth in an amount not less than One Billion
      Dollars ($1,000,000,000), plus the Equity Offering Adjustment for each
      fiscal quarter commencing with such fiscal quarter and, commencing with
      the fiscal quarter ending March 31, 2011, the Net Income Adjustment for
      each fiscal quarter ending after December 31, 2010.”
    

            	     

    

     

    5. Section 7.16 of the Credit Agreement
is amended to replace the period at the end of subparagraph (a) with a
semicolon, and to insert after semicolon, the following proviso: 

     

    
      	     	
              “provided, however, that,
      notwithstanding the foregoing clauses (i) through (iv), above, each
      Israeli-Owned Subsidiary shall only be required under this Section 7.16 to
      execute and deliver pledges over any Equity Interests owned by it to the
      extent that it is also a Foreign Permitted Borrower and then only to the
      extent of any Advances made under this Agreement to it (but not securing
      any Advances to the Company or any of the other Permitted
      Borrowers).”

            	     

    

     

    6. Section 7.16 of the Credit Agreement is
amended to replace the period of the end of subparagraph (b) with a semicolon,
and to insert after the semicolon, the following proviso: 

     

    
      	     	
              “provided, however, that
      notwithstanding the foregoing clauses (i) through (v), above, no
      Subsidiary which is an Israeli-Owned Subsidiary shall be required to
      execute and deliver a Guaranty.” 

            	     

    

     

    7. Section 7.16 of the Credit Agreement is
amended to add the following as new subparagraph (c) immediately following the
end of subparagraph (b): 

     

    
      	     	
              “(c) Collateral
      Documents. With respect to each Person
      which becomes a Significant Domestic Subsidiary subsequent to June 11,
      2010, within thirty days of the date such Person becomes a Significant
      Domestic Subsidiary, cause such new Significant Domestic Subsidiary to
      execute and deliver to Agent such security agreements and other collateral
      loan documents (or, if appropriate, joinder agreements to any such
      existing documents), in each case in form and substance reasonably
      acceptable to the Agent (but subject to similar limitations and exclusions
      as those contained in the existing Collateral Documents), as Agent may
      reasonably require to perfect its lien over such assets as may be
      perfected against by the filing of Uniform Commercial Code financing
      statements in the appropriate filing offices and by the filing of
      appropriate evidences of Lien in the United States Patent and Trademark
      Office and the United States Copyright Office, (i) excluding, however, for
      the avoidance of doubt, (X) any Liens over the following assets: any fee
      and leasehold interests in real property, domestic assets registered
      and/or located abroad, assets which by their terms expressly prohibit
      

            	     

    

     

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              Vishay or any of its
      Significant Domestic Subsidiaries from granting a Lien over such assets
      (unless Article 9 of the Uniform Commercial Code specifies that a lien
      over such asset may be perfected regardless of such prohibition), bank
      accounts, securities accounts and certain other types of assets which, in
      the Agent’s sole determination, are of de minimis or limited value) and
      (Y) any requirement that Vishay and its Significant Domestic Subsidiaries
      execute and deliver, or cause to be executed and delivered, any account
      control agreements, landlord collateral access agreement and/or bailee
      waivers and (ii) subject only to such Liens as are permitted under the
      Credit Agreement, together with such authority documents, opinions and
      other related documents as the Agent may reasonably
      request.”

            	     

    

     

    8. Section 8.2(a) of the Credit
Agreement is amended and restated in its entirety, as follows:

     

    
      	     	
              “(a) any Subsidiary may be
      merged or consolidated with or into Company (so long as Company shall be
      the continuing or surviving corporation); any Domestic Subsidiary may be
      merged or consolidated with or into any Wholly-Owned Domestic Subsidiary
      (so long as such Wholly-Owned Domestic Subsidiary shall be the continuing
      or surviving entity); and any Foreign Subsidiary may be merged or
      consolidated with or into any Wholly Owned Domestic Subsidiary or into any
      Wholly Owned Foreign Subsidiary (excluding the Israeli Subsidiaries and
      the Israeli-Owned Subsidiaries) so long as such Wholly-Owned Domestic
      Subsidiary or such Wholly Owned Foreign Subsidiary shall be the continuing
      or surviving entity); provided that if the merging or consolidating
      Foreign Subsidiary is a Permitted Borrower, the survivor shall satisfy the
      requirements for becoming a Permitted Borrower hereunder or, if it does
      not become a Permitted Borrower, it shall execute and deliver the
      documents required pursuant to Sections 2.1(a)(ii) and (iii) as though it
      were becoming a Permitted Borrower (subject to the other terms and
      conditions hereof);” 

            	     

    

     

    9. Section 8.2(b) of the Credit Agreement is
amended and restated in its entirety, as follows:

     

    
      	     	
              “(b) (i) any Israeli
      Subsidiary owned directly by Company or any Domestic Subsidiary may merge
      with or into another such Israeli Subsidiary or sell, lease, transfer or
      otherwise dispose of any or all of its assets (upon voluntary liquidation
      or otherwise) to such Subsidiary and (ii) any Israeli Subsidiary not owned
      directly by Company or any Domestic Subsidiary may merge with or into
      another such Israeli Subsidiary or sell, lease, transfer or otherwise
      dispose of any or all of its assets (upon voluntary liquidation or
      otherwise) to such Subsidiary and (iii) any Israeli-Owned Subsidiary may
      merge or consolidate with any other such Israeli-Owned Subsidiary or sell,
      lease, transfer or otherwise dispose of any or all of its assets (upon
      voluntary liquidation or otherwise) to such Subsidiary (provided that, in
      the case of each of clause (i), (ii) and (iii) hereof, if the merging or
      transferor Subsidiary is a Permitted Borrower, the surviving entity or
      transferee shall also satisfy the requirements for becoming a Permitted
      Borrower, subject to the other terms and conditions hereof).”
      

            	     

    

     

    5

     

    

    
    

    10. Section 8.2(d) of the Credit
Agreement is amended and restated in its entirety, as follows:

     

    
      	     	
              “(d) (i) any Domestic
      Subsidiary may sell, lease, transfer or otherwise dispose of any or all of
      its assets (upon voluntary liquidation or otherwise) to any other Domestic
      Subsidiary; and (ii) any Foreign Subsidiary may sell, lease, transfer or
      otherwise dispose of any or all of its assets (upon voluntary liquidation
      or otherwise) to any Domestic Subsidiary or to any other Foreign
      Subsidiary, provided, in each case under this clause (ii), that (x) such
      Subsidiary is a Wholly Owned Subsidiary, and (y) if the transferor Foreign
      Subsidiary is a Permitted Borrower, then the transferee Subsidiary must
      also satisfy the requirements for becoming a Permitted Borrower or a
      Significant Foreign Subsidiary that has executed and delivered the
      documents required pursuant to Sections 2.1(a)(ii) and (iii), as though it
      were becoming a Permitted Borrower, subject to the other terms and
      conditions hereof, and 7.16 hereof;” 

            	     

    

     

    11. Section 8.4(i) of the Credit Agreement is
amended to add, at the end of such section (following the words, “pursuant to Section
8.2(f)” but
before the semi-colon), the words “and the representations, warranties
and indemnification provisions given pursuant to the Separation and Distribution
Agreement and any related documents, instruments or other
agreements;”.

     

    12. Section 8.7(d) of the Credit Agreement is
amended and restated in its entirety, as follows:

     

    
      	     	
              “(d) Intercompany Loans,
      Advances, or Investments made on or after the Effective Date hereunder to
      Company or any Wholly Owned Domestic Subsidiary, or by Company or any
      Subsidiary to Company or any other Wholly Owned Subsidiary (excluding the
      Israeli Subsidiaries and the Israeli-Owned Subsidiaries), provided that
      (i) any such Intercompany Loan (other than a guaranty) made by Company or
      Domestic Subsidiary be evidenced by and funded under an Intercompany Note,
      (ii) both before and after giving effect to any such loans, advances or
      investments, no Default or Event of Default has occurred and is continuing
      under this Agreement (or would result from the making of such Intercompany
      Loan, Advance or Investment), (iii) in the case of Intercompany Loans from
      a Domestic Subsidiary or Company to a Domestic Subsidiary or Company and
      Intercompany Loans from a Foreign Subsidiary to a Foreign Subsidiary, no
      notice has been given by Agent (upon the direction of the Required
      Lenders) suspending the right to make such Intercompany Loans, (iv) no
      repayments of such Intercompany Loan shall be made while a Default or
      Event of Default has occurred and is continuing, or could reasonably be
      expected to result from such payment, and (v) the terms governing each
      such loan or advance to Company or any Subsidiary shall specifically state
      that no payments shall be made thereunder if a Default or Event of Default
      under this Agreement has occurred and is continuing, or could reasonably
      be expected to result therefrom unless Agent otherwise consents in
      writing.” 

            	     

    

     

    13. Section 8.7(e) of the Credit Agreement is
amended and restated in its entirety as follows:

     

    6

     

    

    
    

    
      	     	
              “(e) Intercompany Loans,
      Advances or Investments made on or after the Effective Date by Company or
      any Subsidiary to the Israeli Subsidiaries, the Israeli-Owned Subsidiaries
      or to any Subsidiary which does not constitute a Wholly Owned Subsidiary
      (provided (i) that any such Intercompany Loan (other than a guaranty) made
      by Company or a Domestic Subsidiary be evidenced by and funded under an
      Intercompany Note), (ii) that at the time any such loan, advance or
      investment is made (before and after giving effect thereto) no Default or
      Event of Default has occurred and is continuing, (iii) that the aggregate
      amount of all such loans, advances and investments shall not exceed, at
      any time outstanding, 15% of Tangible Net Worth and (iv) that the terms
      governing each such loan or advance to any Subsidiary shall specifically
      state that no payments shall be made thereunder if a Default or Event of
      Default under this Agreement has occurred and is continuing, or could
      reasonably be expected to result therefrom unless Agent otherwise consents
      in writing;” 

            	     

    

     

    14. Section 8.7(f) of the Credit
Agreement is amended and restated in its entirety as follows:

     

    
      	     	“(f) Intercompany
      Loans, Advances or Investments made on or after the Effective Date by one
      Israeli Subsidiary to another such Subsidiary or to an Israeli-Owned
      Subsidiary or by an Israeli-Owned Subsidiary to another such Subsidiary or
      to an Israeli Subsidiary (provided (i) that at the time any such loan,
      advance or investment is made (before and after giving effect thereto) no
      Default or Event of Default has occurred and is continuing, and (ii) that
      the terms governing each such loan or advance shall specifically state
      that no payments shall be made thereunder if a Default or Event of Default
      under this Agreement has occurred and is continuing, or could reasonably
      be expected to result therefrom unless Agent otherwise consents in writing
      and (iii) if the Subsidiary making such loan, advance or investment is a
      Permitted Borrower, the Equity Interests of any Subsidiary of such
      Permitted Borrower receiving such loan, advance or investment shall be
      pledged to Agent, for and on behalf of the Banks (subject to the other
      terms and conditions hereof), to secure the obligations of such Permitted
      Borrower under this Agreement;”	     

    

     

    15. Section 8.9 of the Credit Agreement is
amended to replace the word “and” (in the fifth line thereof,
preceding clause (ii)) with a comma and to add new clause (iii), as
follows:

     

    
      	     	
              “(iii) transactions effected
      pursuant to the Transition Services Agreements entered into under the
      Separation and Distribution Agreement, or otherwise to comply with its
      obligations under the Separation and Distribution Agreement.”
      

            	     

    

     

    16. Section 8.13 is amended to change the
caption thereof to “Amendment of Subordinated
Debt and Other Debt Documents,
Permitted Securitizations and Documents Related to the VPG
Spin-Off” and to add, after the words
“any Permitted
Securitization”
(in the fifth line thereof, preceding the comma) the words “or the Separation and Distribution
Agreement or any material documents, agreements or instruments related
thereto.”

     

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    17. Section 12.15 of the Credit
Agreement is amended to add, at the end of subparagraph (b) thereof (immediately
following clause (iv)), new clause (v), as follows:

     

    
      	     	
              “Furthermore, (x) the Lenders
      agree to release or not require the delivery of, and hereby irrevocably
      authorize Agent to release or not require the delivery of, any Guaranty by
      the Israeli-Owned Subsidiaries or any Pledge Agreement over the Equity
      Interests of any Foreign Significant Subsidiary by any Israeli-Owned
      Subsidiary, except to the extent such Israeli-Owned Subsidiary is a
      Foreign Permitted Borrower and then only to the extent of any Advances
      made under this Agreement to it (but not securing any Advances to the
      Company or any of the other Permitted Borrowers), (y) the Lenders agree
      that, notwithstanding the terms and conditions set forth in paragraph
      17(b) of the Second Amendment, (i) Vishay Europe Sales GmbH shall not be
      required to execute and deliver a pledge of its accounts receivable and
      (ii) Vishay Europe shall not be required to execute and deliver a pledge
      over the Intercompany Loans outstanding from its material Subsidiaries and
      (z) nothing in this Section 12.15 shall be deemed to require the release,
      and the Lenders shall not be obligated to release, any Lien over the
      Equity Interests of Vishay Israel.” 

            	     

    

     

    18. Schedule 4.1 attached to the Credit
Agreement is hereby deleted and Schedule 4.1 attached hereto as Annex B is inserted in its
place.

     

    19. This Third Amendment shall become
effective (according to the terms hereof) on the date (the “Third Amendment
Effective Date”) that the following conditions have been fully satisfied by the
Borrowers:

     

    
      	     	
                   (a) Agent shall have received
      counterpart copies (by facsimile or email) of (i) this Third Amendment (in
      form and substance acceptable to Agent), duly executed and delivered by
      the Borrowers and the requisite Lenders, and (ii) that certain
      Reaffirmation of Guaranty by the Significant Domestic Subsidiaries, in
      each case with original signatures to follow promptly thereafter.
      

               

                   (b) Agent shall have received such
      resolutions, authority documents and opinions of counsel as Agent may
      reasonably require, in form and substance reasonably satisfactory to
      Agent.

               

                   (c) Agent shall have received such
      other documentation as it may reasonably request within a reasonable time
      period following such request, giving consideration to the extent and
      nature of the information so requested.

               

                   (d) Borrowers shall have paid to
      the Agent, for distribution to each Lender that approved and executed this
      Third Amendment (“Approving Lender”), a nonrefundable amendment fee in an
      amount equal to seven and one half (7.50) basis points on such Approving
      Lender’s Percentage of the Revolving Credit Aggregate Commitment and the
      Term Loan, immediately prior to giving effect to the Third Amendment and
      to the Agent all fees and other amounts, if any, that are due and owing to
      the Agent as of the Third Amendment Effective Date.
  

            

    

     

    8

     

    

    
    

    20. Each of the Borrowers hereby
represents and warrants that, after giving effect to any amendments, consents
and waivers contained herein, execution and delivery of this Third Amendment and
the performance by each of them of their respective obligations under the Credit
Agreement as amended hereby (herein, as so amended, the “Amended Credit
Agreement”) are within its company powers, have been duly authorized, are not in
contravention of law or the terms of its operating agreement or other
organizational documents, as applicable, and except as have been previously
obtained, do not require the consent or approval, material to the amendments set
forth herein, of any governmental body, agency or authority, and the Amended
Credit Agreement will constitute the valid and binding obligations of the
Borrowers, as applicable, enforceable in accordance with its terms, except as
enforcement thereof may be limited by applicable bankruptcy, reorganization,
insolvency, moratorium, fraudulent conveyance, ERISA or similar laws affecting
the enforcement of creditors’ rights generally and by general principles of
equity (whether enforcement is sought in a proceeding in equity or at
law).

     

    21. Except as specifically set forth herein,
this Third Amendment shall not be deemed to amend or alter in any respect the
terms and conditions of the Credit Agreement (including without limitation all
conditions and requirements for Advances and any financial covenants) or any of
the other Loan Documents, or to constitute a waiver or release by any of the
Lenders or the Agent of any right, remedy, Collateral, Default or Event of
Default under the Credit Agreement or any of the other Loan Documents, except to
the extent specifically set forth herein. Each of the Borrowers hereby
acknowledges and agrees that this Third Amendment and the amendments contained
herein do not constitute any course of dealing or other basis for altering any
obligation of the Borrowers, any other Credit Party or any other party or any
rights, privilege or remedy of the Lenders under the Credit Agreement, any other
Loan Document, any other agreement or document, or any contract or instrument
except as expressly set forth herein. Furthermore, this Third Amendment shall
not affect in any manner whatsoever any rights or remedies of the Lenders or the
Agent with respect to any other non-compliance by the Borrowers with the Credit
Agreement or the other Loan Documents not waived or otherwise amended hereby,
whether in the nature of a Default or Event of Default, and whether now in
existence or subsequently arising, and shall not apply to any other transaction.

     

    22. Each of the Borrowers hereby acknowledges
and confirms that it does not possess any claim, cause of action, demand,
defense, and other right of action whatsoever, in law or equity against the
Agent or any of the Lenders (collectively, the “Lender Parties”), prior to or as
of the date of this Third Amendment by reason of any cause or matter of any kind
or nature whatsoever, including, but not limited to, any cause or matter arising
from, relating to, or connected with, in any manner the Credit Agreement, any of
the Loan Documents, any related document, instrument or agreement or this Third
Amendment (including, without limitation, any payment, performance, validity or
enforceability of any or all of the indebtedness, covenants, agreements, rights,
remedies, obligations and liabilities under the Credit Agreement, any of the
Loan Documents, any related document, instrument or agreement or this Third
Amendment) or any transactions relating to any of the foregoing, or any or all
actions, courses of conduct or other matters in any manner whatsoever relating
to or otherwise connected with any of the foregoing. 

     

    9

     

    

    
    

    23. Each of the Borrowers hereby
reaffirms, confirms, ratifies and agrees to be bound by each of its covenants,
agreements and obligations under the Credit Agreement, as amended as of the date
hereof, and each other Loan Document previously executed and delivered by it, or
executed and delivered in accordance with this Third Amendment. Each reference
in the Credit Agreement to “this Agreement” or “the Credit Agreement” shall be
deemed to refer to Credit Agreement as amended by this Third Amendment and each
previous amendment thereto.

     

    24. Unless otherwise defined to the contrary
herein, all capitalized terms used in this Third Amendment shall have the
meanings set forth in the Credit Agreement.

     

    25. This Third Amendment shall be a contract
made under and governed by the internal laws of the State of Michigan, and may
be executed in counterpart, in accordance with the Credit
Agreement.

     

    26. Each of the Borrowers and the Agent agrees
that any copy of this Third Amendment (or any other Loan Document) signed by
them and transmitted by facsimile, email or any other delivery method shall be
admissible in evidence as the original itself in any judicial or administrative
proceeding, whether or not the original is in existence.

     

    10

     

    

    
    

         IN WITNESS WHEREOF, the Borrowers, the Lenders and
Agent have each caused this Third Amendment to be executed by their respective
duly authorized officers or agents, as applicable, all as of the date first set
forth above. 

     

    
      	
            	
              AGENT: 

            
	
            	 	
            
	
            	
              COMERICA BANK,
      as Agent,
      Swing Line Lender, Issuing Lender and Lender 

            
	
            	 	
            
	
            	By:  	
              /s/

            
	
            	 	
            
	
            	Its:	Vice
      President
	
            	 	
            
	
            	COMPANY: 
	
            	 	
            
	
            	
              VISHAY INTERTECHNOLOGY,
      INC.
      

            
	
            	 	
            
	
            	
              By:

            	
              /s/ Peter G. Henrici 

            
	
            	 	
            
	
            	Its:	
              Secretary

            
	
            	 	
            
	
            	
              PERMITTED BORROWERS: 

            
	
            	 	
            
	
            	
              SILICONIX INCORPORATED
      

            
	
            	 	
            
	
            	By:	
              /s/
      Peter G. Henrici 

            
	
            	 	
            
	
            	Its:	
              Secretary 

            
	
            	 	
            
	
            	
              SILICONIX TECHNOLOGY
      C.V.

            
	
            	 	
            
	
            	By:	
              /s/
      Peter G. Henrici

            
	
            	
            	
              Peter
      G. Henrici of Siliconix Semiconductor, Inc., a General Partner of
      Siliconix Technology, C.V. 

            
	 	 	   
	
            	Its:	
              Secretary 

            

    

     

    

    
    

    CONSENT TO THIRD AMENDMENT
TO FOURTH AMENDED
AND RESTATED
CREDIT AGREEMENT

     

         The undersigned Lender hereby
consents and agrees to the amendments, terms and conditions set forth in that
certain Third Amendment to Fourth Amended and Restated Credit Agreement dated
June 11, 2010. 

     

    Dated: June
11, 2010 

     

    
      	
            	
              JPMorgan Chase Bank, N.A.

            
	
            	(Lender)
      
	
            	 	
            
	
            	By:  	
              /s/
      

            
	
            	 	
            
	
            	Its: 	
              Vice
      President 

            
	
            	 	
            
	
            	
              Bank
      of America, N.A.

            
	
            	(Lender)
      
	
            	 	
            
	
            	By:	
              /s/
      

            
	
            	 	
            
	
            	Its:	
              Senior Vice President 

            
	
            	 	
            
	
            	
              Bank
      Leumi U.S.A.

            
	
            	(Lender)
      
	
            	 	
            
	
            	By:	
              /s/
      

            
	
            	 	
            
	
            	Its:	
              Vice
      President 

            
	
            	 	
            
	
            	
              Wells
      Fargo Bank, N.A

            
	
            	(Lender)
	
            	 	
            
	
            	By:	
              /s/
      

            
	
            	 	
            
	
            	Its:	
              Director 

            

    

     

    

    
    

    
      	
            	
              Bank
      of Tokyo-

            
	
            	Mistubishi UFJ Trust Company
	
            	(Lender)
      
	
            	 	
            
	
            	By:  	
              /s/
      

            
	
            	 	
            
	
            	Its: 	
              Vice
      President 

            
	
            	 	
            
	
            	
              Bank
      Hapoalim B.M.

            
	
            	(Lender)
      
	
            	 	
            
	
            	By:	
              /s/
      

            
	
            	 	
            
	
            	Its:	
              Senior Vice President 

            
	
            	 	
            
	
            	
              Intesa
      Sanpaolo S.p.A.

            
	
            	(Lender)
      
	
            	 	
            
	
            	By:	
              /s/
      

            
	
            	 	
            
	
            	Its:	
              Vice
      President 

            
	
            	 	
            
	
            	
              PNC
      Bank, N.A.

            
	
            	(Lender)
	
            	  	
            
	
            	By:	
              /s/
      

            
	
            	  	
            
	
            	Its:	
              Vice
      President

            
	
            	 	
            
	
            	
              TD
      Bank, N.A. 

            
	
            	(Lender)
	
            	 	
            
	
            	By:	
              /s/
      

            
	
            	 	
            
	
            	Its:	
              Senior Vice President 

            
	
            	 	
            
	
            	
              HSBC
      Bank U.S.A., N.A.

            
	
            	(Lender)
	
            	 	
            
	
            	By:	
              /s/
      

            
	
            	 	
            
	
            	Its:	
              Vice
      Presidentf10q0430ex10i_idt.htm

 

Exhibit 10.1

 

 

TERMINATION OF AMENDED AND RESTATED CONSULTING AGREEMENT

This Termination of the Amended and Restated Consulting Agreement (“Termination Agreement”) dated April 21, 2010 (the “Effective Date”), is hereby made between IDT Corporation, a Delaware corporation with its principle place of business at 550 Broad Street, Newark, New Jersey 07102 (the “Company”), Credit Freedom Fighters, LLC, a New York limited liability company, with its principle place of business at 39 Oak Ave, Cedarhurst, New York 11516 (“Consultant”) and Stephen Brown (“Brown”).  The Consultant, Brown, and the Company are hereinafter referred to individually as a “Party” and collectively as the “Parties.”

WHEREAS, the Company and Brown executed a Consulting Agreement (the “Initial Consulting Agreement”), effective January 2, 2009, and Brown’s rights and obligations thereunder were subsequently assigned to the Consultant, pursuant to an Amended and Restated Consulting Agreement effective August 1, 2009 (the “Consulting Agreement”);

 

WHEREAS, Brown is the owner of the Consultant;

 

WHEREAS, the Consulting Agreement terminated the Initial Consulting Agreement;

 

WHEREAS, on January 9, 2009, Brown executed a promissory note acknowledging a debt to the Company in the amount of $375,000, which accrued interest and which now has an outstanding principal amount due of $380,234.61 (the “Debt”);

 

WHEREAS, the Parties desire to terminate the Consulting Agreement and the Company has agreed to make certain lump sum payments to Consultant in exchange for termination of the Consulting Agreement as of the Effective Date;

 

WHEREAS, Brown desires to prepay the Debt in full;

 

WHEREAS, pursuant to that certain Restricted Stock Grant Agreement by and between the Company and Brown, effective October 28, 2008 (the “RSA”), Brown received a certain number of restricted shares of Class B common stock of the Company (the “IDT Restricted Shares”), with respect to which the risk of forfeiture was to lapse over time.  As of the date hereof, pursuant to the terms of the RSA, Nine Thousand, One Hundred and Sixty-six (9,166) of such IDT Restricted Shares remain subject to forfeiture under the conditions set forth in the RSA (the “IDT Unvested Shares”);

 

WHEREAS, in connection with the spin-off of CTM Media Holdings, Inc. (“CTM”) from the Company to its shareholders on September 14, 2009 (the “Spin-Off”), Brown, as a result of his then ownership of the IDT Restricted Shares, received a certain number of restricted shares of Class B common stock of CTM which are subject to the same restrictions and terms as the IDT Restricted Shares under the RSA (the “CTM Restricted Shares”). As of the Effective Date, pursuant to the terms of the RSA, Three Thousand and Fifty-Five (3,055) of such CTM Restricted Shares remain subject to forfeiture under the conditions set forth in the RSA and a Restricted Stock Agreement (the “CTM RSA”) by and between CTM and Brown, effective with the consummation of the Spin-Off (the “CTM Unvested Shares”); and

 

WHEREAS, in consideration of the other provisions hereof, Brown has agreed to forfeit the IDT Unvested Shares.

 

NOW, THEREFORE, with the intent to be legally bound, and in consideration of the foregoing and the mutual promises contained herein, and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, it is hereby agreed as follows:

 

 

  

1

  

 

1. Termination of Amended and Restated Consulting Agreement.  This Termination Agreement hereby terminates the Consulting Agreement as of the Effective Date.  The Consultant shall have no further obligation to provide the Services (as defined in the Consulting Agreement) and other than as set forth below, the Company shall have no further obligations to make the payments set forth in, or have any further obligations under, the Consulting Agreement.

 

2. Payments by the Company to Consultant.  The Company will make the following payments to the Consultant:

 

	
(a)  

	
$354,167.00 within five business days of the complete execution of this Termination Agreement; and

 

	
(b)  

	
$182,265.39 on or before February 1, 2011.

 

3. Prepayment of the Debt.  Upon execution of this Termination Agreement, the Debt will be deemed paid in full and the promissory note will be cancelled.

 

4. Forfeiture of Unvested Restricted Stock.  In consideration for the payments received by the Consultant and Brown from the Company and the other provisions hereunder, effective immediately, Consultant hereby forfeits and waives any and all ownership, right and interest in, under and to all IDT Unvested Shares, which shares shall revert to the Company.

 

Brown acknowledges that upon the termination of the Consulting Agreement, all CTM Unvested Shares will be forfeit and will revert to CTM, in accordance with the terms of the RSA and the CTM RSA.

 

5. Payment of all Outstanding Amounts Owed.  Except for those obligations specifically set forth in this Termination Agreement, as of the Effective Date, any and all agreements or arrangements (whether oral or written) between the Parties related to ownership or other interests in any entities or assets, payments and/or compensation of any kind are deemed null and void without any continuing obligation or liability of any party thereunder.  The Consultant and Brown hereby agree that the payments described in Section 2 above will satisfy any and all of the Company’s obligations to Consultant and Brown, regardless of the terms of any previous agreements between the Parties.  The Parties agree that the payments being made by the Company and the prepayment of the Debt by Brown are in exchange for Brown forfeiting the IDT and CTM Unvested Shares and for the early termination of the Consulting Agreement.

6. Termination of Consulting Relationship.  The Consultant and Brown acknowledge and agree that the consulting relationship and any other relationship with either of them and the Company will terminate on the Effective Date and that the Consulting Agreement is hereby terminated by the express mutual agreement of the Parties.

7. Equipment.  On or before February 1, 2011, Brown shall return any and all Company property and equipment in his possession, including, but not limited to, any and all IDT identification cards, card key passes, keys, pagers, computers (laptops or desktops), cellular telephones, BlackBerry or similar personal digital assistant devices, corporate credit cards, corporate calling cards, and any other property or equipment in his possession that IDT may not know.

 

  

2

  

 

 

8. Proprietary and Confidential Information.  Notwithstanding anything contained herein to the contrary, Consultant’s obligations with respect to the Company’s proprietary and confidential information shall survive the termination of the Consulting Agreement.

9. Indemnification.  Notwithstanding anything contained herein to the contrary, the Consultant’s indemnification obligations (pursuant to Section 7 of the Consulting Agreement) in connection with the Consulting Agreement shall survive the termination of the Consulting Agreement.

10. Notices.  Any notice given in connection with this Termination Agreement shall be given in writing and shall be delivered by either overnight mail, or regular mail, return receipt requested, to the Parties as follows:

If to the Company:

IDT Corporation

550 Broad Street, 17th Floor

Newark, New Jersey 07102

Attention:  Chief Financial Officer

with a copy to:

IDT Legal Dept.

550 Broad Street, 17th Floor

Newark, New Jersey 07102

If to the Consultant or Brown:

Credit Freedom Fighters LLC

390 Oak Ave

Cedarhurst, NY  11516

Attention:  Stephen Brown

11. Assignment.  This Termination Agreement may not be assigned, in whole or in part, by the Consultant without the express written consent of the Company.

12. Choice of Law.  Any dispute under this Termination Agreement or related to this Termination Agreement shall be decided in accordance with the laws of the State of New Jersey, without regard to conflicts of law, and the Consultant agrees to consent to the jurisdiction of the courts of competent jurisdiction located in the State of New Jersey, except as otherwise specifically set forth herein.

13. Entire Agreement.  The Parties acknowledge that this document represents the entire agreement between the Parties and supersedes any and all pre-existing agreement, written or oral, between the Parties (with the exception of the Separation and General Release Agreement between Brown and the Company).

 

 

  

3

  

 

14. Severability.  If any provision of this Termination Agreement shall be held to be invalid, it shall not affect the validity or enforceability of any other provision of this Termination Agreement but shall remain in full force and effect.

15. Amendment.  This Termination Agreement may be supplemented, amended or revised only in writing by agreement of the Parties.

16. Breach.  The Consultant and Brown agree and acknowledge that if it/he breaches any representation, covenant, promise or undertaking made pursuant to this Agreement, the Company is authorized to pursue all rights and remedies available in law or in equity, which rights and remedies may include, but are not limited to, the Consultant’s obligation to promptly return to the Company all amounts paid under this Agreement

17. Confidentiality.  The Parties agree that the consideration furnished under this Termination Agreement, the discussions and correspondence that led to this Termination Agreement, and the terms and conditions of this Termination Agreement are confidential.  The Parties agree to keep confidential and refrain forever from disclosing to anyone not a party hereto any and all of the terms of this Termination Agreement, except that disclosure of such matters may be made: (i) to Consultant’s or Brown’s accountant, financial advisor, legal counsel, and members of Brown’s immediate family (provided such individuals are advised of the confidential nature of this Termination Agreement and agree to keep it confidential); (ii) by the Company to its respective officers, directors, employees, accountants and counsel who have a business need to know; and (iii) to the extent required by applicable law or regulation of any jurisdiction, in connection with any regulatory, administrative, judicial or legal proceeding, any disciplinary or law enforcement inquiry, investigation or process, or the rules of any stock exchange upon which the Company’s shares are listed; or (iv) as otherwise required by law or regulation (and, in the case of disclosure pursuant to clause (iii) or (iv), after first providing notice to the Company).

18. Arbitration.  The Parties agree that any claim, controversy or dispute between the Consultant, Brown, and/or the Company (including, without limitation, their respective affiliates, stockholders, directors, officers, employees, representatives or agents) arising out of or relating to this Termination Agreement shall be submitted to and be settled by commercial arbitration in a forum of the American Arbitration Association (“AAA”) located in the State of New Jersey.  In such arbitration: (a) the arbitrator shall agree to treat as confidential all evidence and other information presented by the Parties to the same extent as Confidential Information under the Consulting Agreement must be held confidential by the Consultant, (b) the arbitrator shall have no authority to amend or modify any of the terms of this Termination Agreement, and (c) the arbitrator shall have ten (10) business days from the closing statements or submission of post-hearing briefs by the Parties to render his or her decision.  Any arbitration award shall be final and binding upon the Parties, and any court (state or federal) having jurisdiction may enter a judgment on the award.  The foregoing requirement to arbitrate claims, controversies, and disputes applies to all claims or demands by the Consultant (or its affiliates, stockholders, directors, officers, employees, representatives or agents) or Brown.  Each Party shall bear its/his own costs of participating in any arbitration proceedings.

 

 

  

4

  

 

IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the date first written above.

IDT Corporation

By: /s/ Abilio Pereira                              

Name: Abilio Pereira

Title: Chief Financial officer

Credit Freedom Fighters LLC

By: /s/ Stephen Brown                           

Name: Stephen Brown

Title:  President

Stephen Brown

/s/ Stephen Brown                                 

 

 

 

5

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