Document:

exhibit10-1.htm

     

     

     

     

     

     

     

     

     

     

    TAX MATTERS AGREEMENT

     

    BY AND AMONG

     

    VISHAY INTERTECHNOLOGY, INC.
AND

     

    VISHAY PRECISION GROUP,
INC.

     

    July 6, 2010

     

     

     

     

     

     

     

     

     

     

     

    

    
    

    TAX MATTERS AGREEMENT

     

         WHEREAS, Vishay Intertechnology, Inc. (“VSH”) and Vishay Precision Group,
Inc. (“VPG”), collectively the “Parties” entered into the Master Separation and
Distribution Agreement dated as of June 22, 2010 (the “Distribution Agreement”), pursuant to which (i) VSH will distribute to its stockholders all of
the stock of VPG (the “Distribution”); 

     

         WHEREAS, it is the intention of VSH and VPG that the Distribution
qualifies as a tax-free transaction described in Section 355 of the Internal
Revenue Code of 1986, as amended (the “Code”);

     

         WHEREAS, VSH has received a private letter ruling from the IRS regarding
certain tax aspects of the Distribution; and 

     

         WHEREAS, in contemplation of the Distribution pursuant to which VPG and
certain of its direct and indirect Subsidiaries will cease to be members of the
VSH Affiliated Group of which VSH is the common parent corporation, the Parties
desire to set forth their agreement on the rights and obligations with respect
to handling and allocating Taxes and related matters. 

     

         NOW, THEREFORE, in consideration of the foregoing and the terms,
conditions, covenants and provisions of this Agreement and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties, intending to be legally bound, hereby agree as
follows: 

     

    ARTICLE I
DEFINITIONS

     

         Section 1.1. Defined Terms. Capitalized terms used in this Agreement and
not defined herein shall have the meanings set forth in the Distribution
Agreement. For purposes of this Agreement, the following terms have the
following meanings: 

     

         “Affiliated Group”
means an affiliated group of corporations (as defined in Section 1504(a) of the
Code). 

     

         “Final Determination” means any final determination of liability in respect of a Tax that,
under Applicable Law, is not subject to further appeal, review or modification
through proceedings or otherwise (including the expiration of a statute of
limitations or a period for the filing of claims for refunds, amended returns or
appeals from adverse determinations), including a “determination” as defined in
Section 1313(a) of the Code or execution of an IRS Form 870AD. 

     

         “Income Tax” means
any U.S. federal, state, local or non-U.S. (i) Tax on or measured by net income
or (ii) franchise Tax. 

     

         “Interest” means
interest at a rate per annum equal to the Prime Rate as published in the
Wall Street Journal, Eastern Edition in effect
from time to time during the period such interest accrues. 

     

    

    
    

         “IRS” means the United States Internal Revenue
Service. 

     

         “Israeli Tax Returns”
means the Income Tax
Returns of VATL, Tedea Huntleigh
International, Tedea Huntleigh Technology and Tedea Huntleigh Industrial
Properties for 2008 and 2009 that are not filed prior to the Effective Time.

     

         “Post-Closing Tax Period” means any Tax period beginning after the Distribution Date; and, with
respect to a Tax period that begins on or before the Distribution Date and ends
thereafter, the portion of such Tax period beginning after the Distribution
Date. 

     

         “Pre-Closing Non-Income Taxes” means any Taxes of a VPG Entity other than
Income Taxes that are attributable to a Pre-Closing Tax Period, provided,
however, that it shall not include any such Taxes other than Transaction Taxes
that are accrued as a current liability (net of any prepaid taxes) on the
balance sheet of the VPG Entity at the Effective Time. 

     

         “Pre-Closing Tax Period” means any Tax period ending on or before the Distribution Date; and,
with respect to a Tax period that begins on or before the Distribution Date and
ends thereafter, the portion of such Tax period ending on the Distribution Date.

     

         “Proceeding” means
any claim, examination, suit, action, litigation, assessment or proceeding
(including any Tax audit), whether administrative or judicial. 

     

         “Tax” or “Taxes” means all U.S.
federal, state, local, or non-U.S. net or gross income, gross receipts, net
proceeds, sales, use, ad valorem, value added, franchise, , withholding,
payroll, employment, excise, property, deed, stamp, alternative or add-on
minimum, environmental, profits, windfall profits, license, lease, service, use,
occupation, severance, energy, unemployment, social security, worker’s
compensation, capital, or other taxes, assessments, , or other similar
governmental charges, together with any interest, penalties, additions to tax,
or additional amounts with respect thereto. 

     

         “Tax Asset” means
any net operating loss, net capital loss, investment tax credit, foreign tax
credit, charitable deduction or any other credit or tax attribute that could be
carried forward or back to reduce Taxes (including without limitation deductions
and credits related to alternative minimum Taxes). 

     

         “Tax Item” means,
with respect to any Income Tax, any item of income, gain, loss, deduction or
credit. 

     

         “Transaction Tax” means a Tax attributable to the Distribution or any
transaction taken to facilitate the Distribution. 

     

         “Treasury Regulations” means the U.S. federal income Tax regulations, as amended, including
temporary regulations, promulgated under the Code. 

     

         “VATL” means Vishay Advanced Technologies, Ltd and
its Subsidiaries after the Effective Time. 

     

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         “VIL Assets” means the assets of Vishay Israel Limited
that are sold to VATL that are described in agreements between the parties that
refer to the transfer of the (i) Foil and Thermal Shroud business and (ii) the
Bonding business. 

     

         “VIL” means Vishay Israel Limited 

     

         “VPG Capital Stock”
means all classes or series of stock of VPG and all options, warrants,
derivatives, rights to acquire stock, and other interests and instruments taken
into account for purposes of determining a “50-percent or greater interest”
within the meaning of Section 355(d)(4) of the Code. 

     

         “VPG Entity” means
any member of the VPG Group that was also a Subsidiary of VSH prior to the
Distribution Date. 

     

         “VPG Group” means VPG and its Subsidiaries after the
Effective Time. 

     

         “VPG Group Relief Loss” means an income tax loss of a VPG Entity that could be surrendered to a
member of the VSH Group pursuant to the group relief system in place in the
United Kingdom. 

     

         “VPG Separate Tax Return” means with respect to a VPG Entity, any state or local Income Tax Return
for periods that end prior to or on the Distribution Date that are not filed on
an affiliated, consolidated, combined or unitary basis with one or more members
of the VSH Group. 

     

         “VPG Straddle Period Tax Return” means any Income Tax Return required to be
filed that includes both a Pre-Closing Tax Period and a Post-Closing Tax Period
of any VPG Entity. 

     

         “VPG Tax Return”
means any Income Tax Return required to be filed by a member of the VPG Group,
other than a VSH Income Tax Return. 

     

         “VPG Taxes” mean
all Taxes of any member of the VPG Group that are attributable to a Post-Closing
Tax Period.

     

         “VSH Consolidated Group” means, with respect to U.S. federal Income Taxes, the Affiliated Group
of which VSH is a member, and with respect to any other Income Tax, any
affiliated, consolidated, combined or unitary group of which any member of the
VSH Group is a member. 

     

         “VSH Group” means
VSH and its Subsidiaries other than the VPG Entities. 

     

         “VSH Income Tax Return” means (i) any U.S. federal Income Tax Return and any state or local
Income Tax Return that has been or will be filed by or with respect to any VSH
Consolidated Group on an affiliated, consolidated, combined or unitary basis for
a period that ends prior to or on or includes the Distribution Date, and (ii)
any VPG Separate Tax Returns. 

     

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         “VSH Income Taxes” means all Income Taxes of any member of the VSH Group and any VPG Entity
attributable to a Pre-Closing Tax Period, including, without limitation, (i) all
Transaction Taxes that are Income Taxes, (ii) all Income Taxes resulting from
the removal of the VPG Entities from any consolidated, unitary or combined
Income Tax Return pursuant to the Distribution, and (iii) any Income Taxes
(after reduction for any foreign tax credit utilized with
respect to the inclusion) resulting from the inclusion by a VPG Entity of income
pursuant to Section 951(a)(1)(A) of the Code for income of a non-U.S. VSH Group
member or a VPG Entity that is attributable to a Pre-Closing Tax Period;
provided, however, that VSH Income Taxes shall not include any Income
Taxes(other than Transaction Taxes) for which there
was an accrual for current taxes (net of any prepaid taxes) on the balance sheet
of the VPG Entity at the Effective Time; and provided further that for purposes
of this definition, the inclusion under Section 951(a)(1)(A) of the Code shall
include only those amounts incurred through the normal operations of the
business and shall not include amounts attributable to extraordinary events or
to material changes in business operations. 

     

    ARTICLE II
ADMINISTRATIVE AND COMPLIANCE MATTERS

     

         Section 2.1. Sole Tax Sharing Agreement. Any and all existing Tax Sharing Agreements,
whether written or unwritten, between any member of the VSH Group, on the one
hand, and any member of the VPG Group, on the other hand, shall be terminated as
of the Distribution Date as between such Parties. As of the Distribution Date,
neither the members of the VPG Group nor the members of the VSH Group shall have
any further rights or liabilities under any such agreement, and this Agreement
shall be the sole Tax Matters Agreement between the members of the VPG Group and
the members of the VSH Group. 

     

         Section 2.2. Designation of Agent. VPG and each member of the VPG Group, in
each case with respect to any VSH Consolidated Group of which such Person was a
member on or prior to the Distribution Date, hereby irrevocably authorizes VSH
to designate a member of VSH Group, or a successor of such member, as its agent,
coordinator, and administrator, for the purpose of taking any and all actions
(including the execution of waivers of applicable statutes of limitation) with
respect to any VSH Income Tax Return which are necessary or incidental to the
filing of any Tax Return, any amended Tax Return, or any claim for refund,
credit or offset of Tax (even where an item or Tax Asset giving rise to an
amended Tax Return or refund claim arises in a Post-Closing Tax Period) or to
any Proceedings, and for the purpose of making payments to, or collecting
refunds from, any Taxing Authority, in each case relating to any Pre-Closing Tax
Period.

     

         Section 2.3. Preparation of VSH Income Tax
Returns. VSH and the
members of the VSH Group shall prepare or cause to be prepared, with assistance
as needed from the members of the VPG Group, and file or cause to be filed all
VSH Income Tax Returns. Such Tax Returns shall be prepared in a manner that is
consistent with the prior practice of the members of the VSH Group and the VPG
Entities, provided that an inconsistent position may be taken if such position
would not adversely impact any VPG Entity or is required by law, as reasonably
determined by VSH in good faith; provided however, for the avoidance of doubt,
the consolidated tax return that includes the Distribution Date shall include a
calculation of the overall foreign loss, as that term is defined in Section
904(d)(f), (“OFL”) for the group. 

     

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         (a) VSH shall provide to VPG for its comments a
draft of (i) the calculation of the OFL no later than 30 days prior to the due
date for filing the 2010 U.S. federal consolidated Tax Return, including any
extensions thereof, for the review and comment by VPG, and (ii) all VPG Separate
Tax Returns and the portions of each other VSH Income Tax Return that relate to
the VPG Entities (or, at VSH’s option, a pro forma Tax Return that relates
solely to the VPG Entities) no later than 15 days prior to the due date for
filing such Tax Return, including any extensions thereof, for the review and
comments of VPG, which comments shall be given due regard, provided that any
final decision with respect to the reporting of any item on such Tax Return
shall be made by VSH 

     

         Section 2.4. General Allocation of VSH and VPG
Income. VSH will determine
the items of income, gain, loss, deduction and credit of the VPG Entities to be
included on each VSH Income Tax Return filed by a VSH Consolidated Group for any
taxable year in which any VPG Entity ceases to be a member of the VSH
Consolidated Group in good faith in accordance with Treasury Regulations Section
1.1502-76(b) (or any comparable provision of state or local law).
VPG and its Affiliates shall file their respective
Tax Returns for the taxable period beginning on the first day after the
Distribution Date consistently with such determinations, except as otherwise
required by law.

     

         (a) Transaction Treated as Extraordinary
Items. For purposes of
preparing any federal, state or local Income Tax Return that is filed on a
consolidated, combined or unitary basis for a period that ends on the
Distribution Date, or starts on the day after the Distribution Date, in
determining the apportionment of income and Taxes between any Pre-Closing Tax
Period and Post-Closing Tax Period, any Tax Items relating to the Distributions
shall be treated as extraordinary items described in Treasury Regulations
Section 1.1502-76(b)(2)(ii)(C) and shall (to the extent occurring on or prior to
the Distribution Date) be allocated to Pre-Closing Tax Periods, and any Income
Taxes related to such items shall be treated under Treasury Regulations Section
1.1502-76(b)(2)(iv) as relating to such extraordinary item and shall (to the
extent occurring on or prior to the Distribution Date) be allocated to
Pre-Closing Tax Periods. 

     

         (b) Apportionment of Earnings and Profits and Tax
Attributes. VSH and VPG
shall jointly determine the portion, if any, of any earnings and profits, Tax
Asset, or other consolidated, combined or unitary attribute to be allocated or
apportioned to the VPG Entities under applicable law and in accordance with the
private letter ruling received with respect to the Distribution from the IRS.
VPG and all members of the VPG Group shall prepare all Tax Returns in accordance
with such determination. In the event that any temporary or final amendments to
Treasury Regulations are promulgated after the date of this Agreement that
provide for any election to apply such regulations retroactively, then any such
election shall be made only to the extent that VSH and VPG collectively agree to
make such election 

     

         Section 2.5. VPG Tax Returns. VPG and the members of the VPG Group shall
prepare or cause to be prepared, with the assistance of the members of the VSH
Group (to the extent necessary) and file or cause to be filed, all VPG Tax
Returns. VPG shall provide to VSH a draft of each VPG Straddle Period Tax Return
(and any VPG Tax Return with respect to a Pre-Closing Tax Period) (with copies
of any relevant schedules, work papers and other documentation then available)
no later than 15 days prior to the due date, including extensions, for the
filing of such Tax Return, for VSH’s review and approval, which approval shall
not be 

     

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    unreasonably withheld,
delayed or conditioned. Any VPG Straddle Period Tax Return (and any VPG Tax
Return with respect to a Pre-Closing Tax Period) shall be prepared in a manner
consistent with the prior practice of the VSH Group and the VPG Entities, unless
otherwise required by law.

     

         Section 2.6. Preparation of other Tax
Returns. Except as limited
by Section 2.7 below, any Tax Return required to be filed by VSH or its
Subsidiaries, or VPG or its Subsidiaries for which responsibility is not
specifically allocated in this Article II shall be prepared and filed by the
entity that is required to file the Tax Return; provided, however,
that (i) such Tax Returns shall be prepared in a
manner consistent with past practice except to the extent otherwise required by
law and (ii) at the request of VPG, VSH shall prepare the Israeli Income Tax
Returns for filing in a timely manner by VPG as mutually agreed by VSH and VPG
(iii) and provided, further however, that, at the request of VSH, VPG shall
provide to VSH a copy of each such Tax Return that is prepared by VPG with
respect to Taxes for which VSH is liable hereunder (with copies of any relevant
schedules, work papers and other documentation then available), and if
practically feasible such Tax Return shall be provided to VSH prior to the
filing of such Tax Returns. 

     

         Section 2.7. Amended Returns. VPG shall not, and shall not permit any of
its Subsidiaries to, with respect to any VPG Entity, file an amended Tax Return,
or file a Tax Return in a jurisdiction in which the VPG Entity has not
previously filed a Tax Return for a Pre-Closing Period without the prior written
consent of VSH, which shall not be unreasonably withheld, delayed or
conditioned, except as required by law. 

     

         Section 2.8. U.K. Group Relief
Procedures 

     

         (a) With respect to the Income Tax period ending
December 31, 2009, VPG shall cause the VPG Group Relief Loss for the period to
be surrendered to VSH, or its appropriate affiliate to permit the full use of
the loss for such period. 

     

         (b) With respect to the Income Tax period
beginning on January 1, 2010, to the extent permitted by law, the parties shall
allocate a VPG Group Relief Loss for the year 2010 on a closing of the books of
the books basis (as opposed to an allocation based on numbers of days) for the
period January 1, 2010 through the date of the Distribution (the “Pre-Closing
Period”). A VPG Group Relief Loss that is allocated to the Pre-Closing Period
shall be first surrendered to any other VPG Entity, up to the taxable income of
such entity for the Pre-Closing Period, determined on a closing of the books
basis. VPG will cause the remainder of a VPG Group Relief Loss that is allocated
to the Pre-Closing Period to be surrendered to VSH or its appropriate affiliate
(the “VSH Loss Amount”). If based on advice of its tax advisors, VSH reasonably
determines that the VPG Group Relief Loss for 2010 cannot be allocated on a
closing of the books basis, and must be allocated based on the number of days in
the Pre-Closing Period as compared to the number of days in 2010, VPG will
nonetheless first cause an amount of the VPG Group Relief Loss equal to the VSH
Loss Amount to be surrendered to VSH or its appropriate affiliate for 2010, to
the extent permitted by law, and the remainder of the VPG Group Relief Loss for
the year may be surrendered to a VPG Entity. 

     

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         (c) With respect to other Pre-Closing Tax Periods
not addressed in 2.8(a) or 2.8(b), (i) if with respect to U.K. Income Taxes a
member of the VSH Group is audited in the U.K. or files an amended U.K. Income
Tax return and as a result has an Income Tax liability, which could have been
offset by a VPG Group Relief Loss in those years, VPG shall cause the VPG Group
Relief Loss for such period to be surrendered to VSH or it appropriate
affiliate, but only to the extent a VPG Entity has not used the loss, and only
to the extent permitted by Law and (ii).if with respect to U.K. Income Taxes a
VPG Entity is assessed a U.K. Income Tax for which VSH would be responsible
under this Agreement and the amount could have been offset by a VPG Group Relief
Loss in the respective year, VPG shall cause a VPG Group Relief Loss for such
period to be surrendered to such VPG Entity to the extent the VPG Group Relief
Loss has not been utilized. 

     

    ARTICLE III
LIABILITY FOR TAXES

     

         Section 3.1. Responsibility for Income
Taxes. Subject to the
indemnification provided for in Section 6.1 of this Agreement, VSH shall be
liable for and shall timely pay, or cause to be paid, to VPG, or at VPG’s
request, the applicable Taxing Authority all VSH Income Taxes, whether payable
at the time of the filing of the Tax Return, pursuant to an audit, or otherwise.
The tax liability for a period that begins before and ends after the
Distribution Date, shall be apportioned between VPG and VSH in a manner that
reasonably reflects the portion of such tax liability attributable to VPG for
the Post-Closing Tax Period, and the VPG Entities for the Pre-Closing Tax
Period, respectively, as if there had been a closing of the books on the date of
the Distribution. With respect to the apportionment of Income Taxes, any amounts
that are determined on an annual basis, such as depreciation, Section
951(a)(1)(A) inclusions, etc., shall be apportioned between VSH and VPG based on
the number of days in each of the Pre-Closing Tax Periods and the Post Closing
Tax Periods, respectively. Within 15 days prior to the filing of a VPG Straddle
Period Tax Return, VPG shall provide to VSH for its review and approval (which
shall not be unreasonably withheld, delayed or conditioned) written notice of
the Taxes allocable to VSH pursuant to this Section 3.1 and VSH shall promptly
reimburse VPG for such amounts to the extent the Income Taxes attributable to
the Pre-Closing Tax Periods constitute VSH Income Taxes.

     

         Section 3.2. Responsibility for Non-Income
Taxes. VPG and VSH will
each be responsible for one half of any Pre-Closing Non-Income Taxes that are
required to be paid after the Effective Time, other than Transaction Taxes.

     

         Section 3.3. Responsibility for the Taxes that are
Accrued. VPG shall be
liable for all Taxes that are accrued as a current liability (net of any prepaid
taxes) on the balance sheet of the VPG Entity at the Effective Time, other than
Transaction Taxes. 

     

    ARTICLE IV
REFUNDS AND OTHER MATTERS

     

         Section 4.1. Refunds and Tax Benefits for
VSH. Except as otherwise
provided in Section 4.2, VSH shall be entitled to all refunds and credits of any
VSH Income Taxes, and one half of any refund or credit for any Pre-Closing
Non-Income Taxes, including any interest 

     

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    thereon, received by a
VPG Entity. VPG shall promptly pay or cause to be paid to VSH all such refunds
received by a VPG Entity. If in lieu of receiving any such refund a VPG Entity
reduces a Tax liability with respect to a Post-Closing Tax Period VPG shall
promptly pay or cause to be paid to VSH the amount of such reduction in Tax
liability when such reduction occurs. It is agreed that any amounts included as
prepaid taxes on the balance sheet of a VPG Entity on the Distribution Date,
whether separately stated or included in the accrual for current income taxes,
shall not constitute a tax refund or credit or benefit for purposes of this
Agreement. 

     

         Section 4.2. Carryforwards and
Carrybacks. To the extent
permitted by Applicable Law, VPG
shall (or shall cause or permit the members of the VPG Group to) elect to
relinquish any carryback of a Tax Asset to any Pre-Closing Tax Period. No Party
shall be obligated to compensate any other Party for the carryforward of Tax
Assets from a Pre-Closing Tax Period to a Post-Closing Tax Period or for the
carryback of Tax Assets from a Post-Closing Tax Period to a Pre-Closing Tax
Period. For the avoidance of doubt, if a Tax Asset arises in a Post-Closing Tax
Period on a non-U.S separate company Tax Return, and it is required by law that
it be carried back to a Pre-Closing Tax Period, such carryback will be
permitted, and any resulting refund, credit or other benefit
shall inure to VPG. 

     

    ARTICLE V
COVENANTS AND REPRESENTATIONS

     

         Section 5.1. Representations of VSH. VSH represents that as of the date hereof,
and covenants that on the Distribution Date, it has no plan or intention to (i)
become a controlling shareholder or a ten-percent shareholder of VPG after the
Distribution Date within the meaning of Treasury Regulations Sections
1.355-7(d)(7) and (h) or (ii) take any action that would reasonably be expected
to prevent the Distribution from qualifying as a transaction described in
Section 355(a) of the Code, including any action inconsistent with the
information and representations furnished to the IRS in connection with the
request for a private letter ruling with respect to the Distributions or to Tax
counsel in connection with the preparation of the Tax Opinion. 

     

         Section 5.2. Representations of VPG. VPG and the other members of the VPG Group
represent that as of the date hereof, and covenants that on the Distribution
Date, it has no plan or intention to take any action that would reasonably be
expected to prevent the Distribution from qualifying as a transaction described
in Section 355(a) of the Code or the VPG Common Stock from being treated as
“qualified property” for purposes of Section 355(c)(2) or Section 361(c)(2) of
the Code, including any action inconsistent with the information and
representations furnished to the IRS in connection with the request for a
private letter ruling with respect to the Distributions or to Tax counsel in
connection with the preparation of the Tax Opinion. 

     

         Section 5.3. Covenant of VSH. VSH covenants that during the two-year period
following the Distribution Date it will not take any action that could prevent
the Distribution from qualifying as a transaction described in Section 355(a) of
the Code. 

     

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         Section 5.4. Covenants of VPG Relating to the
Distribution.

     

         (a) VPG covenants and agrees that: (i) during the
two-year period following the Distribution Date, no member of the VPG Group
conducting an active trade or business relied upon in connection with the
Distribution and Separation, which members are Tedea-Huntleigh International
Ltd. and Vishay PM Onboard Ltd., will liquidate, merge or consolidate with any
other Person except for the merger of Tedea-Huntleigh International Ltd. with
its two wholly owned subsidiaries in which Tedea-Huntleigh International Ltd. is
the surviving entity, (ii) during the two-year period following the Distribution
Date, no member of the VPG Group will sell or otherwise dispose of any of its
assets, except in the ordinary course of business, (iii) during the two-year
period following the Distribution Date, VPG will continue (independently from
VSH and with separate employees, officers and directors from VSH) the active
conduct of the historic businesses relied upon in connection with the
Distribution and Separation that were conducted by VPG throughout the five-year
period prior to the Distributions, (iv) it will not take, nor will it permit any
member of the VPG Group to take, any action inconsistent with the information
and representations furnished to the IRS in connection with the request for a
private letter ruling with respect to the Distribution and Separation or to Tax
counsel pursuant to Section 4.3 of the Distribution Agreement, (v) during the
two-year period following the Distribution Date, it will not, and will not
permit any member of the VPG Group, to purchase VPG Capital Stock, (vi) during
the two-year period following the Distribution Date, it will not issue VPG
Capital Stock to any Person, other than pursuant to the exercise of employee,
director or consultant stock options, stock awards, stock purchase rights or
other employment related arrangement under any stock incentive plan in existence
immediately after the Mergers, provided in each case that such stock issuance
meets the requirements for the safe harbor contained in Treasury Regulations
Section 1.355-7(d)(8), (vii) it will not enter into any transaction or, to the
extent it has the right to prohibit any such transaction, permit such
transaction to occur, or enter into negotiations to enter into any transaction
that may cause the Distribution or any Separation Transaction to be treated as
part of a plan or series of related transactions pursuant to which one or more
persons acquire directly or indirectly VPG Capital Stock representing a
“50-percent or greater interest” within the meaning of Section 355(d)(4) of the
Code, and (viii) it will not take any other action that would reasonably be
expected to prevent (i) the Distribution from qualifying as a transaction
described in Section 355(a) of the Code or (ii) the VPG Common Stock from being
treated as “qualified property” for purposes of Section 355(c)(2) or Section
361(c)(2) of the Code. 

     

         (b) Notwithstanding the foregoing, a member of the
VPG Group may take actions inconsistent with the covenants contained in Section
5.04(a), if: 

     

              (i) VPG obtains a ruling from
the IRS to the effect that such actions will not result in the Distribution
being taxable to VSH or their shareholders, or 

     

              (ii) VPG obtains an opinion of
counsel reasonably acceptable to VSH to the same effect as Section 5.04(b)(i),
provided that such opinion is reasonably acceptable to VSH. 

     

         Section 5.5. Other Covenants of VPG. VPG covenants and agrees that (i) it will
not, and will not cause or permit any member of the VPG Group to (A) take any
action on the 

     

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    Distribution Date other
than in the ordinary course of business or (B) make or change any Tax election,
take any Tax position on any Income Tax Return, or take or omit to take any
other action that results in any increased Tax liability or reduction of any Tax
Asset of the VSH or the VPG Entities in respect of any Pre-Closing Tax Period or
Post-Closing Tax Period. 

     

    ARTICLE VI
INDEMNIFICATION

     

         Section 6.1. Indemnification of VSH by
VPG. VPG shall indemnify
the members of the VSH Group, and hold them harmless from and against any and
all damages, losses, liabilities and expenses (including reasonable expenses of
investigation and reasonable attorneys’ fees and expenses in connection with any
action, suit or proceeding) arising out of, without duplication: 

     

         (a) Any Tax for which any member of the VPG Group
is liable under this Agreement; and 

     

         (b) Any Tax attributable to a misrepresentation or
a breach of any warranty, covenant or obligation in this Agreement by any member
of the VPG Group. 

     

         Section 6.2. Indemnification of VPG by
VSH. VSH shall indemnify
the members of the VPG Group, and hold them harmless from and against any and
all damages, losses, liabilities and expenses (including reasonable expenses of
investigation and reasonable attorneys’ fees and expenses in connection with any
action, suit or proceeding) arising out of, without duplication: 

     

         (a) Any Tax for which any member of the VSH Group
is liable under this Agreement; 

     

         (b) any Tax attributable to a misrepresentation or
a breach of any warranty, covenant or obligation in this Agreement by any member
of the VSH Group. 

     

    ARTICLE VII
PAYMENTS

     

         Section 7.1. Payments under this
Agreement. Any payment
required to be made pursuant to this Agreement by one Party to another Party or
Person shall be made according to this Section 7.01. 

     

         (a) In General. All payments shall be made within the time
prescribed for payment in this Agreement, or if no period is prescribed, within
twenty days after delivery of written notice of the payment due and owing (and
to the extent applicable, approval of the amount of such payment), together with
a schedule calculating in reasonable detail the amounts that are due and owing.
Payments shall be deemed made when received. Any payment that is not made when
due shall bear Interest, provided, however, to the extent the amount due and owing is
Taxes, such amount shall not begin to accrue Interest pursuant to this Section
7.01(a) until the later of the time prescribed for payment pursuant to this
Agreement or the time such Taxes are actually paid by the indemnified Party.

     

    -10-

     

    

    
    

         (b) Treatment of Payments. 

     

              (i) Payments made pursuant to
this Agreement by any member of the VPG Group to or on behalf of any member of
the VSH Group shall be treated for all Tax purposes as distributions by VPG to
VSH occurring immediately before the Distribution, and none of the Parties shall
take any position inconsistent with such treatment, except to the extent that a
Final Determination with respect to the recipient Party causes any such payment
to not be so treated. 

     

              (ii) Payments made pursuant to
this Agreement by any member of the VSH Group to or on behalf of any member of
the VPG Group shall be treated for all Tax purposes as a reduction in the
distribution occurring before the Distribution, or a contribution to VPG by VSH
immediately prior to the Distribution and none of the Parties shall take any
position inconsistent with such treatment, except to the extent that a Final
Determination with respect to the recipient Party causes any such payment to not
be so treated. 

     

         (c) Except as provided in Article 9 of this
Agreement, in calculating amounts payable to an indemnified Party, the amount of
indemnification payable pursuant to this Agreement shall be computed net of any
Tax benefit actually realized by the indemnified Party or any of its Affiliates
that is related or attributable to such indemnification. 

     

         (d) If any amount paid by an indemnifying Party
pursuant to this Agreement results in any increase in Tax liability or any
reduction of a Tax Asset of the indemnified Party, the indemnifying Party shall
indemnify the indemnified Party and hold it harmless from any interest or
penalty attributable to such increased Tax liability or reduced Tax Asset and
shall pay to the indemnified Party, in addition to amounts otherwise owed, an
additional amount necessary to reflect the Tax consequences of the receipt or
accrual of the relevant payment. 

     

    ARTICLE VIII
PROCEEDINGS

     

         Section 8.1. Notice. Within ten Business Days after a Party
receives a written notice or other information from a Taxing Authority of the
existence of a Tax issue relating to the application of Section 355(e) to the
Distributions, relating to the qualification of the Distribution as tax-free
transactions described in Section 355 of the Code or that may require
indemnification pursuant to this Agreement (a “Tax Claim”) such
Party shall notify the other Party to this Agreement of such issue, and
thereafter shall promptly forward to the other Parties copies of notices and
material communications with any Taxing Authority relating to the Tax Claim. The
failure of one Party to notify the other Party of any Tax matter shall not
relieve such other Party of any liability and/or obligation which it may have
under this Agreement with respect to such Tax matter, except to the extent that
the indemnifying Party’s rights under this Agreement are materially prejudiced
by such failure. 

     

         Section 8.2. Proceedings Generally. 

     

         (a) Proceedings Relating to Income Taxes for
Pre-Closing Tax Periods. VSH, at its
expense, shall control the defense and settlement of any Proceeding relating to
Income Taxes attributable to a Pre-Closing Tax Period, provided however, that
VPG shall be entitled to 

     

    -11-

     

    

    
    

    participate in the
defense of such Proceeding at its own cost and expense, including the right to
attend (or participate in), any meetings (or material conference calls with
respect to which VSH has reasonable advance notice) with Taxing Authorities or
before any judicial authorities in connection with such Proceeding; VSH shall in
good faith keep VPG informed of all developments relating to such Proceeding on
a timely basis, shall in good faith afford VPG the opportunity to review any
submissions related to such Proceeding, shall provide VPG with final copies of
any submissions, and, to the extent such Proceeding could reasonably result in
adverse tax consequences to the VPG Group with respect to Post-Closing Tax
Periods, shall not unreasonably reject any suggestions made by VPG with respect
to such Proceeding, and VSH shall not settle or compromise such Proceeding
without the consent of VPG, which consent shall not be unreasonably withheld,
delayed or conditioned. VPG will fully cooperate and assist VSH in a Proceeding
that VSH controls pursuant to this Section 8.2(a), including making available
personnel and books and records as reasonably requested by VSH. The Parties
shall in good faith cooperate with each other in connection with such Proceeding
and provide such information to each other as may be necessary or useful with
respect to such Proceeding in a timely manner. 

     

         (b) Proceedings Relating to Non-Income Taxes for
Pre-Closing Periods. VPG,
at its expense, shall control the defense and settlement of
any Proceeding relating to any Pre-Closing Non-Income Taxes, provided, however,
that VSH shall be entitled to participate in the defense of such Proceeding at
its own cost and expense including the right to attend (or participate in), any
meetings (or material conference calls with respect to which VPG has reasonable
advance notice) with Taxing Authorities or before any judicial authorities in
connection with such Proceeding; VPG shall keep VSH informed of all developments
relating to such Proceeding on a timely basis, shall in good faith afford VSH
the opportunity to review any submissions related to such Proceeding, shall not
unreasonably reject any suggestions made by VSH with respect to such Proceeding,
and shall provide VSH with final copies of any submissions; and VPG shall not
settle or compromise such Proceeding without the consent of VSH , which consent
shall not be unreasonably withheld, delayed or conditioned. VSH will fully
cooperate and assist VPG in a Proceeding that VPG controls pursuant to this
Section 8.2(a), including making available personnel and books and records as
reasonably requested by VPG. The Parties shall in good faith cooperate with each
other in connection with such Proceeding and provide such information to each
other as may be necessary or useful with respect to such Proceeding in a timely
manner. 

     

         (c) If, with respect to any Proceeding described
in this Article 8 the Party responsible for controlling the Proceeding (the
“Defaulting Party”) fails to diligently prosecute, manage and defend the Tax
Claim by failing to respond in a timely manner to inquires by a Taxing
Authority, or failing to meet a material filing deadline or by a similar action
or inaction and either the other Party (the “Defending Party”)
could reasonably be subject to adverse tax consequences if such Tax Claim is not
prosecuted, the Defending Party shall thereafter have the right (but not the
obligation) to defend or prosecute, at the sole cost, expense and risk of the
Defaulting Party, such Tax Claim. The Defending Party shall have full control of
such defense or prosecution and such Proceedings, including any settlement or
compromise thereof. If requested by the Defending Party, the Defaulting Party
shall cooperate in good faith with the Defending Party and its authorized
representatives in order to contest effectively such claim. In the case of any
claim with respect to Taxes that is defended or prosecuted by the Defending
Party pursuant to this Section 8.2(c), the Defending Party shall, from time to
time, be entitled to current 

     

    -12-

     

    

    
    

    payment from the
Defaulting Party with respect to costs and expenses incurred by the Defending
Party in connection with such defense or prosecution (including, without
limitation, reasonable attorneys’, accountants’, and experts’ fees and
disbursements, settlement costs, court costs, and any other costs or expenses
for investigating, defending or prosecuting such claim, in each case on an after
tax basis. 

     

    ARTICLE IX
SPECIFIC COVENANT WITH RESPECT TO ASSET SALE

     

         Section 9.1. Transaction. It is expected that the sale of the VIL
Assets to VATL (the “VIL Asset Sale”)
will not create any cash tax liability for VIL in Israel in the tax year of the
sale because of the ability to offset the any gain on the transaction against
the existing net operating loss (“NOL”) in
VIL.

     

         Section 9.2. Filing of Tax Return. VSH will actively pursue obtaining an opinion
or other acceptable form of advice from its Israeli tax advisors that confirms
at a “more likely than not” or higher level of comfort that the NOL may be used
by VIL to offset any gain on the sale of the VIL Assets (the “Advice”). Provided
that VSH receives such Advice, VSHagrees that the Tax Return for VIL that
includes the VIL Asset Sale shall be prepared and filed on the assumption that
the NOL of VIL offsets the gain on the VIL Asset Sale and VSH shall not and
shall not permit any member of the VSH Group to take a different position on any
Tax Return or in any discussion, whether written or oral, with any Tax
Authorities. 

     

         Section 9.3. Impact of Transaction. If a Final Determination is reached that the
NOL cannot be used to offset the gain, (as opposed to a determination that the
NOL is not sufficiently large to offset the gain, or some other reason), then
VATL shall make a payment to VSH as follows: 

     

         (a) To the extent VATL has been able to amortize
or depreciate the VIL Assets and realize a reduction in its tax, the aggregate
amount of such reduction actually realized by the time of the Final
Determination shall be paid by VATL to VSH within 15 days of the Final
Determination. 

     

         (b) To the extent the VIL Assets at the time of
the Final Determination have not been fully amortized or depreciated for tax
purposes by VATL, and a deferred tax asset is recorded on the books of VATL for
the future tax benefit of the amortization or depreciation of the VIL Assets and
there is no valuation allowance or similar impairment taken against the deferred
tax asset, within 30 days after the Final Determination VATL shall pay to VSH
the net present value of the deferred tax benefit. The net present value shall
be determined using a discount rate equal to the rate of Interest in effect on
the date of the Final Determination.

     

         (c) In no event shall the amount payable by VPG
pursuant to this Section 9.3 exceed the Tax liability of VIL that arises solely
by virtue of the inability to apply its NOL to offset the gain recognized on the
VIL Asset Sale. 

     

         Section 9.4. Advice Not Received If the Israeli tax advisors are unable to
render the Advice, and because of that the VIL Tax Return does not offset the
gain on the sale of the VIL Assets with the NOL, VATL shall make a payment to
VSH as follows: 

     

    -13-

     

    

    
    

         (a) If a deferred tax asset is recorded on the
books of VATL for the future tax benefit of the amortization or depreciation of
the VIL Assets and there is no valuation allowance or similar impairment taken
against the deferred tax asset, within 30 days after VSH pays the Taxes due on
the VIL Asset Sale VATL shall pay to VSH the net present value of the deferred
tax benefit. The net present value shall be determined using a discount rate
equal to the rate of Interest in effect on the date of the payment.

     

         (b) In no event shall the amount payable by VPG
pursuant to this Section 9.4 exceed the Tax liability of VIL that arises solely
by virtue of the inability to apply its NOL to offset the gain recognized on the
VIL Asset Sale. 

     

         Section 9.5. Audit Management. Notwithstanding anything to the contrary in
the this Agreement, if VSH or a VSH Group member receives notice, whether
written or otherwise, that the Israeli tax authorities may challenge the ability
to offset the gain on the VIL asset sale with the NOL, VSH shall promptly notify
VPG. The control of such Proceedings and the settlement shall be handled as
provided in section 8.2(a) of this Agreement.

     

    ARTICLE X
MISCELLANEOUS PROVISIONS

     

         Section 10.1. Cooperation. The Parties shall each cooperate fully (and
each shall cause its respective Affiliates to cooperate fully) with all
reasonable requests from the other Parties, or from an agent, representative or
advisor to such Parties, including the delivery of information, documents access
to employees etc, in connection with the preparation and filing of Tax Returns,
claims for refund, Proceedings, and other matters, in each case, related to
Taxes covered by this Agreement, and with respect to the preparation by VPG of a
claim for an R&D credit (as provided by Section 41 of the Code) with respect
to the first or second Post-Closing Tax Period following the Distribution
Date.

     

         Section 10.2. Notices. All notices, requests and other
communications to any Party hereunder shall be in writing (including facsimile
transmission) and shall be given, 

     

       if to VSH, to: 

     

         Vishay Intertechnology, Inc.
     63 Lancaster Avenue
     Malvern, PA
19355-2120
     Attention: Dr. Lior E. Yahalomi, Chief
Financial Officer
     Facsimile: 610.889.2161

     

       with a copy (which shall not constitute notice)
to:

     

         Kramer Levin Naftalis & Frankel
LLP
     1177 Avenue of the
Americas
     New York, NY
10036
     Attention:
Ernest S. Wechsler,
Esq.
     Facsimile: 212.715.8000

     

    -14-

     

    

    
    

       if to VPG,
to: 

     

         Vishay Precision Group, Inc.
     3 Great Valley Parkway
     Suite 150 Malvern, Pa.
19355
     Attention: William M. Clancy, Chief Financial Officer
     Telephone: 484.321.5306
     Facsimile: 484.321.5301

     

       with a copy (which shall not constitute notice)
to:

     

         Pepper Hamilton LLP
     3000 Two Logan Square
     18th & Arch Streets
     Philadelphia, PA
19103
     Attention: Barry M. Abelson, Esq.
     Facsimile No.: 215.689.4803

     

    or to such other address
or facsimile number as such Party may hereafter specify for the purpose by
notice to the other Parties hereto. All such notices, requests and other
communications shall be deemed received on the date of receipt by the recipient
thereof if received prior to 5:00 p.m. on a Business Day in the place of
receipt. Otherwise, any such notice, request or communication shall be deemed to
have been received on the next succeeding Business Day in the place of receipt.

     

         Section 10.3. Changes in Law. 

     

         (a) Any reference to a provision of the Code,
Treasury Regulations, or a law of another jurisdiction shall include a reference
to any applicable successor provision or law. 

     

         (b) If, due to any change in Applicable Law or
regulations or their interpretation by any court of law or other governing body
having jurisdiction subsequent to the date hereof, performance of any provision
of this Agreement or any transaction contemplated hereby shall become
impracticable or impossible, the Parties hereto shall use their commercially
reasonable best efforts to find and employ an alternative means to achieve the
same or substantially the same result as that contemplated by such provision.

     

         Section 10.4. Binding Effect; Benefit;
Assignment. 

     

         (a) The provisions of this Agreement shall be
binding upon and inure to the benefit of the Parties hereto and their respective
successors and assigns. No provision of this Agreement is intended to confer any
rights, benefits, remedies, obligations or liabilities hereunder upon any Person
other than the Parties hereto and their respective successors and assigns.

     

         (b) No Party may assign, delegate or otherwise
transfer any of its rights or obligations under this Agreement without the
consent of each other Party hereto. 

     

    -15-

     

    

    
    

         Section 10.5. Authority. Each of the Parties hereto represents to
each of the other Parties that (a) it has the corporate power (corporate or
otherwise) and authority to execute, deliver and perform this Agreement, (b) the
execution, delivery and performance of this Agreement by it have been duly
authorized by all necessary corporate or other action, (c) it has duly and
validly executed and delivered this Agreement, and (d) this Agreement is a
legal, valid and binding obligation, enforceable against it in accordance with
its terms subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors’ rights generally and
general equity principles. 

     

         Section 10.6. Entire Agreement. This Agreement, the Distribution Agreement,
and the other Ancillary Agreements constitute the entire agreement between the
Parties with respect to the subject matter of this Agreement and supersede all
prior agreements and understandings, both oral and written, between the Parties
with respect to the subject matter of this Agreement. 

     

         Section 10.7. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to the conflicts of law rules of such state. 

     

         Section 10.8. Counterparts; Effectiveness. This Agreement may be signed in any number
of counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument. This Agreement
shall become effective when each Party hereto shall have received a counterpart
hereof signed by all of the other Parties hereto. Until and unless each Party
has received a counterpart hereof signed by the other Party hereto, this
Agreement shall have no effect and no Party shall have any right or obligation
hereunder (whether by virtue of any other oral or written agreement or other
communication). 

     

         Section 10.9. Severability. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction or
other Governmental Authority to be invalid, void or unenforceable, the remainder
of the terms, provisions, covenants and restrictions of this Agreement shall
remain in full force and effect and shall in no way be affected, impaired or
invalidated so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner materially adverse to any
Party. Upon such a determination, the Parties shall negotiate in good faith to
modify this Agreement so as to affect the original intent of the Parties as
closely as possible in an acceptable manner in order that the transactions
contemplated hereby are consummated as originally contemplated to the fullest
extent possible. 

     

         Section 10.10. Waiver and Amendment. 

     

         (a) Any provision of this Agreement may be amended
or waived prior to the Effective Time if, but only if, such amendment or waiver
is in writing and is signed, in the case of an amendment, by each Party to this
Agreement or, in the case of a waiver, by each Party against whom the waiver is
to be effective. 

     

         (b) No failure or delay by any Party in exercising
any right, power or privilege hereunder shall operate as a waiver thereof nor
shall any single or partial exercise thereof 

     

    -16-

     

    

    
    

    preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.
The rights and remedies herein provided shall be cumulative and not exclusive of
any rights or remedies provided by Applicable Law. 

     

         Section 10.11. Interpretation. 

     

         (a) When a reference is made in this Agreement to
an Article or Section, such reference shall be to an Article or Section of or to
this Agreement unless otherwise indicated. 

     

         (b) Whenever the words “include,” “includes” or
“including” are used in this Agreement, they shall be deemed to be followed by
the words “without limitation.” 

     

         (c) Unless the context requires otherwise, the
terms “hereof,” “herein,” “hereby,” “hereto” and derivative or similar words in
this Agreement refer to this entire Agreement. 

     

         (d) Unless the context requires otherwise, words
in this Agreement using the singular or plural number also include the plural or
singular, respectively, and the use of any gender herein shall be deemed to
include the other gender. 

     

         (e) Except as otherwise specifically provided
herein, where any action is required to be taken on a particular day and such
day is not a Business Day and, as a result, such action cannot be taken on such
day, then this Agreement shall be deemed to provide that such action shall be
taken on the first Business Day after such day. 

     

         (f) This Agreement was prepared jointly by the
Parties and no rule that it be construed against the drafter will have any
application in its construction or interpretation. 

     

         Section 10.12. Headings. The headings contained in this Agreement are
inserted for convenience only and shall not be considered in interpreting or
construing any of the provisions contained in this Agreement. 

     

         Section 10.13. Exclusivity. Except as otherwise explicitly provided in
the Distribution Agreement, all matters related to Taxes or Tax Returns of the
Parties shall be governed by this Agreement. In the event of a conflict, this
Agreement shall govern and control. Notwithstanding any other provision of this
Agreement, in no event shall any Party or any other Person be liable for any
Taxes, expenses or any other losses or damages of any kind pursuant to this
Agreement or otherwise except as expressly set forth herein or in the
Distribution Agreement. 

     

         Section 10.14. Dispute Resolution. Any disputes arising under this Agreement
shall be resolved by applying Sections 8.2 and 8.3 of the Distribution
Agreement, provided however, that to the extent the dispute is to an amount of
Tax, or an amount or allocation of a Tax Asset, the mediator referenced in
Section 8.2(d) shall, to the extent possible, be a person with a national
reputation as an expert in U.S. federal income tax. 

     

         Section 10.15. Survival. The covenants and agreements of the Parties
hereunder (including indemnification of the Parties) shall survive until 90 days
following the expiration of 

     

    -17-

     

    

    
    

    the applicable statute
of limitations (taking into account all extensions thereof), if any, of the
claim that gave rise to the indemnification. Notwithstanding the foregoing, in
the event of notice for indemnification has been given within the applicable
survival period, such indemnification shall survive until such time as such
claim is finally resolved.

     

    -18- 

     

    

    
    

         IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the day and year
first above written. 

     

    
      	VISHAY INTERTECHNOLOGY, INC.
	 
	/s/ Lior E.
  Yahalomi
	Name:	  Lior E. Yahalomi
	Title:	Executive Vice
      President and Chief Financial Officer
	 
	 
	VISHAY PRECISION GROUP, INC.
	 
	/s/ William M.
  Clancy
	Name:	  William M. Clancy
	Title:	Executive Vice
      President and Chief Financial Officervishay_8k.htm

    TRADEMARK LICENSE
AGREEMENT

     

         This
Trademark License Agreement (this “Agreement”) is entered into as of July 6,
2010 (the “Effective Date”), by and between Vishay Intertechnology, Inc., a
corporation organized under the laws of the State of Delaware (“VSH”) and Vishay
Precision Group, Inc., a corporation organized under the laws of the State of
Delaware (“VPG”).

     

    RECITALS

     

         WHEREAS, VSH owns all right, title
and interest in and to the Name (as hereinafter defined) and Mark (as
hereinafter defined) VISHAY, used alone or in connections with other
terms;

     

         WHEREAS, VPG desires to use the
Licensed Marks (as hereinafter defined) on and in connection with the design,
development, manufacture, marketing, provision and performance of VPG Products
and Services (as hereinafter defined);

     

         WHEREAS, VSH is willing to grant to
VPG, and VPG is willing to accept, the right to use the Licensed Marks in
accordance with and subject to the terms of this Agreement.

     

         NOW, THEREFORE, in consideration of
the mutual promises, covenants, agreements, representations and warranties
contained herein, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the parties hereto hereby agree,
intending to be legally bound, as follows:

     

    ARTICLE 1
LICENSE
OF RIGHTS

     

         Section 1.1. Rights Licensed.
Subject to the terms of this Agreement, VSH hereby grants to VPG, and VPG hereby
accepts, a limited, exclusive, royalty-free right and license, to use, directly
or indirectly through subcontractors, the Marks (as defined below) and Names (as
defined below) listed on Schedule A (the “Licensed Marks”) in connection with
the design, development, manufacture, marketing, provision and performance of
the products and services of VPG listed on Schedule B (the “VPG Products and
Services”). Any use of the Licensed Marks on products other than those on
Schedule B is subject to advance written approval by VSH. As used herein, “Mark”
shall mean any trademark, service mark or logo, and “Name” shall mean any entity
name or trade name.

     

         Section 1.2. Special ‘Mil’ Rights and
SCDs (Customer Source Control Drawings) Licensed. In
recognition of the cost, difficulty and bureaucracy involved in attempting to
change the voluminous documentation and specifications related to foil resistor
products qualified to the Mil spec system used by the military and other special
needs customers, this Mil rights license grant is made. Subject to the terms of
this Agreement, VSH hereby grants to VPG, and VPG hereby accepts, a limited,
exclusive, royalty-free right and license, to display VISHAY alone (i.e. without
any other terms) (the “Licensed Mil Mark”) as a marking on foil resistor
products qualified to the Mil spec system, i.e. built on “Mil Qualified” product
lines or SCDs (Customer Source Control Drawings), existing as of the Effective
Date or referred to in Mil drawings or

     

    

    
    

    SCDs (Customer Source
Control Drawings) existing as of the Effective Date, and on Mil drawings and
SCDs relating thereto.

     

         Section 1.3. Term and Territory. The licenses granted hereby shall be in
perpetuity so long as this Agreement has not been terminated by its terms (the
“Term”) and shall apply throughout the world (the “Territory”). In the event the
Term terminates, VPG agrees that within twenty-four (24) months thereafter, VPG
will change its corporate name so as not to include the term
VISHAY.

     

         Section 1.4. Rights in VPG. For the avoidance of doubt, this Agreement
shall not restrict VPG from using the acronym “VPG” in any Name, or in any Mark,
so long as such Name or Mark does not contain VISHAY (except as otherwise
permitted pursuant hereto).

     

         Section 1.5. Document and Part Numbers. VPG shall be permitted to use any document
number on data sheets, package drawings, instructions or other materials posted
to the internet (each a “Document Number”) or any SKU number, part number, or
other number and/or letter sequence printed on or identified with any part (each
a “Part Number”) on or in connection with VPG Products and Services, so long as
such Document Number or Part Number does not contain the prefix or suffix
VSH.

     

         Section 1.6. VPG Acknowledgement. VPG acknowledges and agrees that: (i) VSH is
the sole and exclusive owner of all right, title and interest in and to the
Licensed Marks; (ii) all goodwill associated with the Licensed Marks shall inure
to the sole and exclusive benefit of VSH; and (iii) nothing in this Agreement or
any related agreement, instrument or document shall be construed to give VPG any
legal or beneficial ownership interest in or title to the Licensed
Marks.

     

         Section 1.7. Absence of VSH
Representations. VPG
agrees and acknowledges that VSH makes no representation or warranty with
respect to: (i) VSH’s right, title and interest in and to the Licensed Marks,
(ii) the absence of any action related to or concerning the Licensed Marks, the
outcome of which could be materially adverse to the rights granted to VPG under
this Agreement; or (iii) the absence of any claim, or basis for any claim, that
the use of the Licensed Marks by VPG under this Agreement violates the rights of
any person.

     

         Section 1.8. Restrictions.

     

              (a) During the Term, and subject to section 1.8(e), VSH shall not, under a
Mark or Name which includes the term VISHAY immediately followed by the term
PRECISION: (i) directly or indirectly, design, develop, manufacture, market or
provide any products, except to the extent such usage exists (and limited to
those products with respect to which such usage exists) immediately following
the Effective Date; or (ii) use such Mark or Name in connection with any aspect
of its business, operations or affairs, whether conducted directly or
indirectly, and whether or not such usage would otherwise require permission of
VPG, except to the extent such usage is not otherwise prohibited by clause (i)
of this paragraph. Without limitation, the foregoing restriction shall apply to
the legal name or fictitious name (“d/b/a”) of any subsidiary of VSH or any
other entity under the control of VSH.

     

    -2-

     

    

    
    

              (b) During the Term, VSH shall not, under a
Mark or Name which includes the acronym “VPG”: (i) directly or indirectly,
design, develop, manufacture, market or provide any products that overlap (i.e.
compete) with any products within the product range of VPG or any of its
subsidiaries as constituted immediately following the Effective Date; or (ii)
use such acronym in connection with any aspect of its business, operations or
affairs, whether conducted directly or indirectly, and whether or not such usage
would otherwise require permission of VPG, except to the extent such usage is
not otherwise prohibited by clause (i) of this paragraph. Without limitation,
the foregoing restriction shall apply to the legal name or fictitious name
(“d/b/a”) of any subsidiary of VSH or any other entity under the control of
VSH.

     

              (c) During the Term, except as otherwise
permitted pursuant to this Agreement, VPG shall not, under a Mark or Name which
includes the term VISHAY INTERTECHNOLOGY or VISHAY, or under the acronym VSH:
(i) directly or indirectly, design, develop, manufacture, market or provide any
products that overlap (i.e. compete) with any products within the product range
of VSH or any of its subsidiaries as constituted immediately following the
Effective Date; or (ii) use such Mark, Name or acronym in connection with any
aspect of its business, operations or affairs, whether conducted directly or
indirectly, and whether or not such usage would require permission of VSH,
unless the term VISHAY is immediately followed by the term PRECISION (so long as
the term PRECISION has no less prominence than the term VISHAY and such Name
does not include the term VISHAY together with the term INTERTECHNOLOGY), except
to the extent such usage is not otherwise prohibited by clause (i) of this
paragraph. Without limitation, the foregoing restriction shall apply to the
legal name or fictitious name (“d/b/a”) of any subsidiary of VPG or any other
entity under the control of VPG.

     

              (d) For the avoidance of doubt, nothing in
this Section 1.8 shall be construed to impose any restriction on the right of
VPG to use the corporate name “Vishay Precision Group, Inc.” (i) in association
with its business with respect to the VPG Products and Services, or (ii) with
respect to the design, development, manufacture, marketing, provision or
performance of goods and services other than the VPG Products and Services, so
long as such other goods and services are not designed, developed, manufactured,
marketed, provided or performed under a Mark containing the term
VISHAY.

     

              (e) For the avoidance of doubt, nothing in
this Section 1.8 shall be construed to impose any restriction on the right of
VSH to use the term PRECISION in a descriptive manner (but not as a Mark or
Name) in connection with the design, development, manufacture, marketing,
provision or performance of any goods or services, so long as the term PRECISION
does not immediately follow the term VISHAY. A non-exhaustive, representative
list of descriptive uses of the term PRECISION permissible by VSH, in marketing
materials, engineering documents, data handbooks and packaging and similar
materials, is shown on Schedule C.

     

    -3-

     

    

    
    

    ARTICLE
2
STANDARDS AND
COMPLIANCE

     

         Section 2.1. Standards. All VPG Products and Services designed,
developed, manufactured, marketed, provided or performed under the Licensed
Marks, as applicable, shall be of high quality, free of material defects and
performed with integrity and in a professional manner and shall be in compliance
with applicable law (the “Standards”).

     

         Section 2.2. Compliance Procedures.

     

              (a) VPG shall maintain appropriate process and quality controls with respect
to the VPG Products and Services designed, developed, manufactured, marketed,
provided or performed under the Licensed Marks to assure compliance with the
Standards.

     

              (b) VSH, itself or through its representatives, shall have the right to
request and receive from VPG, from time to time at reasonable intervals and upon
payment to VPG of its reasonable charges, representative samples of VPG Products
and copies of all marketing materials for VPG Products and Services designed,
developed, manufactured, marketed, provided or performed under the Licensed
Marks (“Promotional Materials”). If, in the commercially reasonable judgment of
VSH, any VPG Products and Services or Promotional Materials do not conform to
the Standards or are not otherwise in accord with this Agreement, VSH shall so
notify VPG, and the parties shall work together in good faith in order that VPG
will remedy such non-conformity or non-compliance. Any dispute under this
Section shall be resolved in accordance with the resolution procedures referred
to in Section 5.16.

     

         Section 2.3. Transition Period
Activities.
Notwithstanding anything to the contrary herein, VPG shall be permitted to use
the Licensed Marks in the manner and for the periods set forth
below.

     

              (a) Products: From the Effective Date until December 31, 2012 (the “Initial
Period”), VPG shall have the right to display VISHAY alone (i.e. without any
other terms) as a marking on foil resistor products provided to any and all
customers, and in drawings relating thereto. For a subsequent period of
twenty-four (24) months following the Initial Period, i.e. until December 31,
2014, VPG shall have the right to sell existing inventory of foil resistor
product displaying the marking VISHAY to VPG customers in existence as of the
last day of the Initial Period. Beginning January 1, 2015, VPG shall have no
right, other than as permitted by Section 1.2, to display VISHAY alone as a
marking on any product or in any drawings.

     

              (b) Literature: For a period of twelve (12) months following the Effective
Date, VPG shall have the right to distribute marketing materials, Data sheets,
business cards, letter heads and forms displaying the term VISHAY in the manner
such term in displayed in such materials as of the Effective Date. After that
time, all marking of VPG literature shall comply with the terms of the license
grants hereunder.

     

              (c) Signage: For a period of twelve (12) months following the Effective Date,
VPG shall have the right to display the term VISHAY on office signage in
the

     

    -4-

     

    

    
    

    manner such term is
displayed as of the Effective Date. After that time, all VPG signage shall
comply with the terms of the license grants hereunder.

     

    ARTICLE
3
ADDITIONAL MARKS;
REGISTRATION OF MARKS; ENFORCEMENT

     

         Section 3.1. Additional Licensed
Marks. If VPG proposes to use any Mark or Name containing VISHAY that is
not on Schedule A, prior to such use, VPG shall notify VSH in advance in
writing, unless the term PRECISION immediately follows the term VISHAY in such
Mark or Name (with the term PRECISION having no less prominence than the term
VISHAY) and such Mark or Name does not include the term VISHAY together with the
term INTERTECHNOLOGY. If VSH does not object in writing within thirty (30)
business days after receipt of such notice, VSH shall be deemed to have approved
the use of such Mark for the VPG Products and Services only, such Mark shall be
deemed to be a Licensed Mark and such Mark shall be added to Schedule A. If VSH
shall object to the use of a Mark by VPG, the parties shall resolve their
dispute with respect to such objection in accordance with the resolution
procedures referred to in Section 5.16. During the Term, VPG shall be permitted
to use any Mark or Name in which the term VISHAY is immediately followed by the
term PRECISION (so long as the term PRECISION has no less prominence than the
term VISHAY and such Mark or Name does not contain the term VISHAY together with
the term INTERTECHNOLOGY), on or in connection with the VPG Products and
Services, without the need to seek consent to such use by VSH, and upon
notification by VPG to VSH of any such use, such Mark or Name shall be added to
Schedule A.

     

         Section 3.1. Registration of Licensed
Marks. At VPG’s reasonable request and expense, VSH shall: (i) take all
reasonably necessary steps to procure registration of any of the Licensed Marks
for the VPG Products and Services; and (ii) maintain any and all such
registrations in full force and effect during the Term so long as such Licensed
Mark is being used by VPG, and VPG shall, at its sole expense, cooperate with
VSH in connection with the forgoing. VPG shall not seek to register any of the
Licensed Marks or any similar Marks, unless authorized by VSH in writing, and
such registration shall be held by VPG on behalf of VSH.

     

         Section 3.2. Domain Names. VSH
hereby licenses to, and approves of the use by VPG of the internet domain names
containing the term VISHAY listed on Schedule D (“Licensed Domain Names”). VPG
agrees that, in securing the registration of such domain names, it has acted as
agent of VSH. If VPG proposes to secure the registration of any additional
domain name containing the term VISHAY, it shall notify VSH in advance in
writing, unless the term PRECISION immediately follows the term VISHAY in such
domain name and such domain name does not include the term VISHAY together with
the term INTERTECHNOLOGY. If VSH does not object in writing within thirty (30)
business days after receipt of such notice, VSH shall be deemed to have approved
VPG’s registration of such any such domain name, such domain name shall be
deemed to be a Licensed Domain Name and such domain name shall be added to
Schedule D. If VSH shall object to the registration of a domain name by VPG, the
parties shall resolve their dispute with respect to such objection in accordance
with the resolution procedures referred to in Section 5.16. Without the written
consent of VSH, under no circumstances shall VPG transfer or assign the
registration of any Licensed Domain

     

    -5-

     

    

    
    

    Name to any person other
than a wholly-owned subsidiary without the written consent of VSH or any other
person to whom VPG is permitted to assign sublicense or otherwise transfer its
rights under this Agreement pursuant to Section 5.5.

     

         Section 3.3. Display of Marks. The parties agree that it is in their mutual
best interest that, and shall cooperate so that, subject to Section 1.2, the
Licensed Marks utilized by VPG shall appear distinctive from Marks utilized by
VSH, and the Marks utilized by VSH shall appear distinctive from the Licensed
Marks utilized by VPG. Any dispute with respect to the appearance of a Licensed
Mark or a VSH Mark shall be resolved in accordance with the resolution
procedures referred to in Section 5.16.

     

         Section 3.4. Legal Notices. VPG shall, to the extent commercially
practicable, place appropriate notices (e.g. ® or TM) to designate the Licensed
Marks as trademarks or service marks.

     

         Section 3.5. Enforcement.

     

              (a) VPG shall, at its own reasonable expense, cooperate fully and promptly
with VSH in the protection of VSH’s rights in the Licensed Marks, in such manner
and to such extent as VSH may reasonably request.

     

              (b) Each party shall promptly advise the other party in writing of any actual
or potential infringement, or any other unauthorized use of or violation of any
of the Licensed Marks of which it becomes aware (each an “Infringement”). VSH
may take such action as it, in its sole discretion, deems necessary or advisable
to stop any Infringement. VPG may request in writing that VSH institute an
action to stop an Infringement. If VSH receives such a written request and does
not institute such action within thirty (30) days, VPG shall be entitled to
institute such action as it deems necessary or advisable to stop the
Infringement, in which VSH shall be entitled to join. The party not taking the
lead in any action shall cooperate fully with the other party at the other
party’s reasonable request and expense.

     

              (c) Any monetary recovery or sums obtained in settlement of any action to
stop an Infringement shall be allocated between VSH and VPG as shall be fair and
equitable, taking into account their actual out-of-pocket costs and expenses,
including reasonable attorneys’ fees, and the damages sustained by each of them.
Any dispute with respect to the allocation of recoveries shall be resolved in
accordance with the resolution procedures referred to in Section
5.16.

     

    ARTICLE
4
TERMINATION

     

         Section 4.1. Termination by VSH.

     

              (a) This Agreement may be terminated by VSH if:

     

                   (i) VPG shall (x) willfully, intentionally and in bad faith breach any
material provision of this Agreement or (y) willfully, intentionally and in
bad

     

    -6-

     

    

    
    

    faith fail to cure any
other breach, (A) if under clause (x), such breach is not capable of cure; or
(B) if under either clause (x) or (y), such breach is capable of cure, VSH has
given written notice of such breach to VPG, and such breach has not been cured,
or VSH has not commenced taking (and is not continuing to take) reasonable bona
fide steps to cure such breach, within sixty (60) days of such notice;
or

     

                   (ii) subject to and except as otherwise provided in Section 5.5, VPG shall,
without the written consent of VSH, willfully and intentionally and in bad faith
purport to assign, delegate or otherwise transfer any of its rights, benefits,
powers, duties responsibilities or obligations under this Agreement in violation
of this Agreement; or

     

                   (iii) VPG shall abandon the use of the Licensed Marks; or

     

                   (iv) VPG shall file a petition under Chapter 7 of the U.S. Bankruptcy Code, or
a petition under Chapter 7 of the U.S. Bankruptcy Code shall be filed
involuntarily against VPG and shall not be dismissed within 90 days after VPG
receives notice of such filing.

     

              (b) To effect the termination of this Agreement, VSH shall deliver to VPG a
written notice of termination, which notice shall specify the basis therefor in
reasonable detail and an effective date of termination not less than ninety (90)
days after the date of delivery to VPG of the notice. If VPG disputes the right
of VSH to terminate this Agreement under any of clauses (i), (ii) or (iii) of
Section 4.1(a) and invokes the dispute resolution procedures referenced in
Section 5.16 no later than fifteen (15) days after VPG has received notice of
termination from VSH, and within such fifteen (15) day period provides notice
thereof to VSH in writing, then if and only so long as VPG is in compliance with
the procedures referenced in Section 5.16, termination shall not be deemed
effective until (i) it shall be determined in accordance with the procedures
referenced in Section 5.16 that VSH is entitled to terminate this Agreement or
(ii) the parties shall otherwise agree.

     

              (c) If VPG in good faith disputes that VSH has a valid basis for termination,
the parties shall resolve such dispute in accordance with the resolution
procedures referred to in Section 5.16.

     

              (d) Nothing in this Section shall relieve VPG of liability for breach of this
Agreement, whether or not VSH is entitled to terminate this Agreement on account
of such breach.

     

         Section 4.2. Termination of Rights. Upon the termination of this Agreement, all
rights of VPG granted hereunder shall terminate, and any registration of the
foregoing by VPG shall, at VSH’s discretion, be abandoned or transferred to VSH.
Notwithstanding the foregoing, VPG shall have the right to dispose of its then
existing inventory of VPG Products and/or Promotional Materials bearing the
Licensed Marks for a period of up to one (1) year from the date of termination
of this Agreement. All costs associated with the foregoing shall be borne by
VPG.

     

    -7-

     

    

    
    

         Section 4.3. Survival. All rights and remedies of the parties in
respect of any breach of this Agreement occurring prior to the effective date of
its termination shall survive the termination of this Agreement. In addition,
the following provisions of this Agreement shall explicitly survive its
termination: Section 1.6 (“VPG Acknowledgment”); Section 1.7 (“Absence of VSH
Representations”); Section 4.1(d) (“Termination by VSH”); Section 4.2
(“Termination of Rights”); this Section 4.3 (“Survival”); and Article 5
(“Miscellaneous”).

     

    ARTICLE
5
MISCELLANEOUS

     

         Section 5.1. Notices. All notices, demands and other
communications required to be given to a party hereunder shall be in writing and
shall be deemed to have been duly given if and when personally delivered; one
business day after being sent by a nationally recognized overnight courier; when
transmitted by facsimile and actually received; or five (5) days after being
mailed by registered or certified mail (postage prepaid, return receipt
requested) to such party at the relevant street address or facsimile number set
forth below (or at such other street address or facsimile number as such party
may designate from time to time by written notice in accordance with this
provision):

     

    
      	If to VSH: 	 	With a copy to:
	   
	Vishay Intertechnology, Inc.	 	Kramer Levin Naftalis & Frankel LLP
	63 Lancaster Avenue	 	1177 Avenue of the Americas
	Malvern, PA 19366	 	New York, New York 10036
	Attn: Dr. Lior Yahalomi, Chief Financial Officer	 	Attn: Abbe Dienstag, Esq.
	Facsimile: (610) 889-2161	 	Facsimile: (212) 715-8000
	Confirm: (610) 644-1300	     	Confirm: (212) 715-9100

    

    -8-

     

    

    
    

    
      	If to VPG:	With a copy to:
	   
	Vishay Precision Group, Inc.	Pepper Hamilton LLP
	3 Great Valley Parkway	3000 Two Logan Square
	Malvern, PA 19355-1307	Eighteenth and Arch Streets
	Attn: William M. Clancy,	Philadelphia, PA 19103-2799
	Chief Financial Officer	Attn: Barry Abelson, Esq.
	Facsimile: (484)-321-5300	Facsimile: (215) 981-4750
	Confirm: (484)-321-5300	Confirm: (215) 981-4000

    

         Section 5.2. Further Assurances. In addition to the actions specifically
provided for elsewhere in this Agreement, VSH and VPG agree to execute or cause
to be executed and to record or cause to be recorded such other agreements,
instruments and other documents, and to take such other action, as reasonably
necessary or desirable to fully effectuate the intents and purposes of this
Agreement.

     

         Section 5.3. Relationship of the Parties. This Agreement shall not be construed to
place the parties in the relationship of legal representatives, partners, joint
venturers or agents of or with each other. No party shall have any power to
obligate or bind the other party in any manner whatsoever, except as
specifically provided herein.

     

         Section 5.4. Third Party Beneficiaries. Except for the indemnification rights under
this Agreement of any Indemnified Parties (as hereafter defined), the provisions
of this Agreement are solely for the benefit of the parties hereto and their
respective successors and permitted assigns, and are not intended to confer upon
any person, except the parties hereto and their respective successors and
permitted assigns, any rights or remedies hereunder.

     

         Section 5.5. Assignment and Sublicense.

     

              (a) The license shall be assignable or sublicenseable to any direct or
indirect Majority Owned Subsidiary of VPG, provided that VPG shall be
responsible for the compliance by any such Majority Owned Subsidiary with the
terms of this Agreement. As used herein, “Majority Owned Subsidiary of VPG”
means any subsidiary of VPG (x) of which both over 50% of the voting securities
and over 50% of the outstanding equity interests, whether voting or non-voting,
are owned by VPG or by one or more of Majority-Owned Subsidiaries of VPG or by
VPG and one or more of its Majority-Owned Subsidiaries, and (y) which is engaged
in the design, development, manufacture, marketing, provision and performance of
VPG Products and Services as part of the business of VPG under the management
and control of VPG.

     

              (b) If VPG shall sell or transfer its business of the design, development,
manufacture, marketing, provision and performance of VPG Products and Services
substantially as an entirety, to a single purchaser or other single transferee,
whether such sale or other transfer is structured as a sale of stock, assets or
otherwise, and thereafter VPG shall cease to be engaged in such business, the
purchaser or other transferee shall succeed to the rights and obligations of VPG
under this Agreement; provided such purchaser or other transferee shall execute
documentation in form and substance reasonably satisfactory to VSH agreeing to
be

     

    -9-

     

    

    
    

    bound by the terms of
this Agreement. For the avoidance of doubt, the following actions shall not be
deemed an assignment, delegation or other transfer of VPG’s rights, benefits,
powers, duties, responsibilities or obligations under this Agreement or the
license granted hereby or any interest therein: (1) assignment or transfer of
the stock of VPG, including by way of a merger, consolidation, or other form of
reorganization in which outstanding shares of VPG are exchanged for securities,
or (2) any transaction effected primarily for the purpose of (A) changing VPG’s
state of incorporation or (B) reorganizing VPG into a holding company structure
such that, as a result of any such transaction, VPG becomes a wholly-owned
subsidiary of a holding company owned by the holders of VPG’s securities
immediately prior to such transaction.

     

              (c) Except as provided in this Section, the license granted hereby shall be
non-assignable and non- sublicenseable. Any purported license or assignment in
violation of this Agreement shall be void.

     

              (d) This Agreement shall be binding upon and inure to the benefit of the
parties and their respective successors and permitted assigns.

     

         Section 5.6. Press Releases; Public
Announcements. Neither
party shall issue any release or make any other public announcement concerning
this Agreement or the transactions contemplated hereby without the prior written
approval of the other party, which approval shall not be unreasonably withheld,
delayed or conditioned; provided, however, that either party shall be permitted
to make any release or public announcement that in the opinion of its counsel it
is required to make by law or the rules of any national securities exchange of
which its securities are listed; provided further that it has made efforts that
are reasonable in the circumstances to obtain the prior approval of the other
party.

     

         Section 5.7. Waiver of Defaults. Waiver by any party hereto of any default by
the other party hereto of any provision of this Agreement shall not be construed
to be a waiver by the waiving party of any subsequent or other default, nor
shall it in any way affect the validity of this Agreement or prejudice the
rights of the other party thereafter to enforce each and ever such provision. No
failure or delay by any party hereto in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege.

     

         Section 5.8. Severability. If any provision of this Agreement is
determined by a court of competent jurisdiction to be invalid, void or
unenforceable, the remaining provisions hereof shall remain in full force and
effect and shall in no way be affected, impaired or invalidated thereby, so long
as the economic or legal substance of the transactions contemplated hereby, as
the case may be, is not affected in any manner adverse to any party hereto or
thereto. Upon such determination, the parties hereto shall negotiate in good
faith in an effort to agree upon a suitable and equitable provision to effect
the original intent of the parties hereto.

     

         Section 5.9. Indemnification. Each of the parties shall indemnify, defend
and hold harmless the other party, each of its respective current and former
directors, officers and employees, and each of their respective heirs,
executors, successors and assigns (“Indemnified

     

    -10-

     

    

    
    

    Parties”), from and
against any and all liabilities relating to, arising out of or resulting from
any breach of, or failure to perform or comply with, any covenant, undertaking
or obligation of, this Agreement by the indemnifying party. In addition, VPG
shall indemnify, defend and hold harmless VSH and its other Indemnified Parties
from and against any and all liabilities relating to, arising out of or
resulting from the sale and/or provision of VPG Products and Services under the
Licensed Marks. All indemnification procedures and payments shall be governed by
Sections 5.6, 5.7 and 5.8 of the Master Separation Agreement between the
parties, dated June 22, 2010 (the “Master Separation Agreement”), as
applicable.

     

         Section 5.10. LIMITATION OF LIABILITY. IN NO EVENT SHALL VSH OR VPG BE LIABLE TO
THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, COLLATERAL, INCIDENTAL OR
PUNITIVE DAMAGES OR LOST PROFITS OR FAILURE TO REALIZE EXPECTED SAVINGS OR OTHER
COMMERCIAL OR ECONOMIC LOSS OF
ANY KIND, ARISING OUT OF THIS AGREEMENT; PROVIDED, HOWEVER, THAT THE FOREGOING
LIMITATIONS SHALL NOT LIMIT EITHER PARTY’S INDEMNIFICATION OBLIGATIONS WITH
RESPECT TO THIRD PARTY CLAIMS.

     

         Section 5.11. Confidential Information. VSH and VPG shall hold and shall cause each
of their respective affiliates, directors, officers, employees, agents,
consultants, advisors and other representatives to hold, in strict confidence
and not to disclose or release without the prior written consent of the other
party, any and all proprietary or confidential information, material or data of
the other party that comes into its possession in connection with the
performance by the parties of their rights and obligations under this Agreement.
The provisions of Section 4.6 of the Master Purchase Agreement shall govern,
mutatis mutandis, the confidentiality obligations of the parties under this
Section.

     

         Section 5.12. Attorneys’ Fees. In any action hereunder to enforce the
provisions of this Agreement, the prevailing party shall be entitled to recover
its reasonable attorneys’ fees in addition to any other recovery
hereunder.

     

         Section 5.13. Governing Law. This Agreement and the legal relations
between the parties shall be governed by and construed in accordance with the
laws of the State of New York, without regard to the conflict of laws rules
thereof to the extent such rules would require the application of the law of
another jurisdiction.

     

         Section 5.14. Consent to Jurisdiction. Subject to the provisions referenced in
Section 5.16, each of the parties irrevocably submits to the jurisdiction of the
federal and state courts located in Philadelphia, Pennsylvania for the purposes
of any suit, action or other proceeding to compel arbitration, for the
enforcement of any arbitration award or for specific performance or other
equitable relief pursuant to Section 5.15. Each of the parties further agrees
that service of process, summons or other document by U.S. registered mail to
such parties address as provided in Section 5.1 shall be effective service of
process for any action, suit or other proceeding with respect to any matters for
which it has submitted to jurisdiction pursuant to this Section. Each of the
parties irrevocably waives any objection to venue in the federal and state
courts located in Philadelphia, Pennsylvania of any action, suit or proceeding
arising out of this Agreement or the transactions contemplated
hereby.

     

    -11-

     

    

    
    

         Section 5.15. Specific Performance. The parties hereto agree that the remedy at
law for any breach of this Agreement may be inadequate, and that any party
hereto shall be entitled to specific performance in addition to any other
appropriate relief or remedy, if and to the extent that the remedy of specific
performance is available in accordance with Section 8.2(g) of the Master
Separation Agreement. Such party may, in its sole discretion, to the extent
necessary to prevent serious and irreparable harm as contemplated by Section
8.2(g) of the Master Separation Agreement, apply to a court of competent
jurisdiction for specific performance or injunctive or such other relief as such
court may deem just and proper in order to enforce this Agreement.

     

         Section 5.16. Dispute Resolution. The procedures set forth in Article VIII of
the Master Separation Agreement shall apply to the resolution of all disputes
arising under this Agreement, except that all proceedings provided for therein
shall be conducted in Philadelphia, Pennsylvania.

     

         Section 5.17. Entire Agreement.
This Agreement and the Schedules hereto, as well as any other agreements and
documents referred to herein, constitute the entire agreement between the
parties with respect to the subject matter hereof and supersede all previous
agreements, negotiations, discussions, understandings, writings, commitments and
conversations between the parties with respect to such subject
matter.

     

         Section 5.18. Waiver of Jury Trial. Subject to Section 5.16, EACH OF THE PARTIES
HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY WITH RESPECT TO ANY COURT PROCEEDING DIRECTLY OR INDIRECTLY
ARISING OUT OF AND PERMITTED UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

     

         Section 5.19. Amendments. No provisions of this Agreement shall be
deemed amended, modified or supplemented by any party hereto, unless such
amendment, supplement or modification is in writing and signed by the authorized
representative of the party against whom it is sought to enforce such amendment,
supplement or modification.

     

         Section 5.20. Counterparts. This Agreement may be executed in any number
of counterparts, including by facsimile or electronic signature, and each such
counterpart shall be deemed an original instrument, and all of such counterparts
together shall constitute but one agreement. A facsimile or electronic signature
is deemed an original signature for all purposes under this
Agreement.

     

    [SIGNATURE PAGES
FOLLOW]

     

    -12-

     

    

    
    

         IN WITNESS WHEREOF, the parties hereto have caused their duly authorized
representatives to execute this Agreement as of the date first above
written.

     

    
      	VISHAY INTERTECHNOLOGY,
INC.
	
            	
            	  
	
            	
            	  
	
            	
            	  
	
            	
            	  
	By:	  	/s/ Lior E. Yahalomi
	Name:	
            	Lior E. Yahalomi
	Title:	
            	Executive Vice President and
    Chief
	 	
            	Financial Officer
	
            	
            	  
	
            	
            	
            
	
            	
            	   
	VISHAY PRECISION GROUP,
INC.
	
            	
            	  
	
            	
            	  
	
            	
            	  
	By:	
            	/s/ William M. Clancy 

	Name:	
            	William M. Clancy  
	Title:	
            	Executive Vice President and
    Chief
	
            	
            	Financial
      Officer

    

    -13-

     

    

    
    

    SCHEDULE
A*

     

    LICENSED
MARKS

     

    1. Trademarks and Trade
Names

     

    VISHAY (with respect to
Section 1.2 only)

     

    VISHAY
PRECISION

     

    VISHAY FOIL
RESISTORS

     

    2. Entity
Names

     

    Vishay - PM Belgium
N.V.
Vishay - Waste Collection
Systems Belgium N.V.
Vishay Tedea-Huntleigh (Beijing) Electronics Co.,
Ltd
Vishay Precision Measurement Trading (Shanghai) Co., Ltd.
Vishay
Celtron Technologies (Tianjin) Co., Ltd
Vishay PME France
SARL
Vishay Measurements Group
France, S.A.S.
Vishay Precision Foil GmbH
Vishay Measurement Group GmbH
Vishay
Transducers India Limited
Vishay Precision Transducers India Private Limited
Vishay PM Onboard
(Ireland) Limited

    Vishay Precision Israel
Ltd.
Vishay Advanced
Technologies, Ltd.
Vishay Precision Foil K.K.
Vishay Precision Holdings B.V.
Vishay -
Waste Collection Systems B.V.
Vishay Revere Transducers Europe B.V.
Vishay
Nobel AS
Vishay Precision Asia
Investments Pte. Ltd.
Vishay Precision España S.L.
Vishay Nobel AB
Vishay Celtron Technologies, Inc.
Vishay
Measurements Group UK Limited
Vishay PM Group Limited
Vishay PM Onboard
Limited
Vishay Precision Group, Inc.
Vishay Measurements Group, Inc.
Vishay
Transducers Ltd.

     

    A-1

     

    

    
    

    Vishay Precision Foil,
Inc.
Vishay BLH, Inc.

     

    * Note that this
Schedule A does not include the Marks set forth on Attachment 1 to Schedule 1.3
or the entity names set forth on Schedule 2.4(a)(iii) (which are not otherwise
listed on this Schedule A) to the Master Separation Agreement, inasmuch as those
Marks and entity names are owned by VPG and no license from VSH is required for
VPG’s use of such Marks and entity names.

     

    A-2

     

    

    
    

    SCHEDULE B

     

    VPG PRODUCTS AND SERVICES

     

    	Foil resistor strain
  gages
 
        
	Transducers (a/k/a load cells) utilizing foil resistor strain
  gages
 
        
	Electronic instruments that
  measure and control output of transducers utilizing foil resistor strain
  gages, and instruments to measure strain
 
        
	Systems for process and force
  measurement control and on-board weighing
 
        
	Foil resistors and current sensors
 
        
	Design, planning, testing,
  troubleshooting, technical assistance, engineering assistance, training and
  similar services provided or performed by VPG on behalf of its customers in
  connection with any of the foregoing
 
        
	Any additional products as long as
  such products do not overlap (i.e. compete) with any products within the
  product range of VSH or any of its subsidiaries as constituted immediately
  following the Effective Date. 

    B-1

     

    

    
    

    SCHEDULE
C

     

    NON-EXHAUSTIVE LIST
OF
PERMISSIBLE USES OF PRECISION BY VSH

     

    
      	1.	
            	“Vishay” and
      “precision” separated, other than by a blank, e.g.
	
            	     	
            
	
            	
            	
              	Vishay’s precision ...
                  
	Vishay – precision ...
                  
	Vishay: precision ...
                  
	... Vishay. Precision .... (end
        and start of sentences) 

            
	
            	
            	 
	2.	
            	Vishay Logo followed with “Precision” in
      text.
	
            	
            	 
	3.	
            	“Vishay + brand + precision”,
  e.g.
	
            	
            	 
	
            	
            	
              	Vishay Sfernice Precision
        ...
                  
	Vishay Sfernice precision
        pots
                  
	Vishay Sfernice precision
        metal film resistors
                  
	Vishay Sfernice precision
        wire wound resistors
                  
	Vishay Dale Precision ....
                  
	Vishay Spectrol precision
        ....
                  
	Vishay Spectrol precision
        pots
                  
	Vishay BCcomponents
        Precision ....
                  
	Vishay Spectrol Ultra
        Precision Hall effect Rotary position sensor
                  
	Vishay Dale Precision Wire
        Wound Resistors

            
	
            	
            	 
	4.	
            	“Vishay + technology + precision”,
      e.g.
	
            	
            	 
	
            	
            	
              	Vishay Film capacitors
        precision
                  
	Vishay Thin film precision
        resistors (Dale TFNA, Sfernice)
                  
	Vishay Thin Film Precision
        Networks 

            
	
            	
            	 
	5.	
            	“Precision...” at the beginning of a sentence
      (i.e. preceded by no word), e.g.
	
            	
            	 
	
            	
            	
              	Precision wire wound
        resistors (Dale)
                  
	Precision power
        (Dale)
                  
	Precision film (Dale)
                  
	Precision Thin Film (Dale -
        TFNA)
                  
	Precision Thin Film
        Technology (Dale - TFNA)
                  
	Precision Low TCR Thin Film
        (Dale - TFNA)
Precision Non Magnetic Thin Film Resistors (Dale -
        TFNA)
 
                  
	Precision Automotive Thin
        Film (Dale - TFNA)
                  
	Precision Matched Pair
        resistors SOT-23
                  
	Precision Ultra Frequency
        Resistors (FC series in Thin Film)

            

    

     

    C-1

     

    

    
    

    
      	
            	
            	
              	Precision MKP 416...20 (film
        capacitors)
                  
	Precision Thin Film Chip Resistor Arrays (Draloric
        Beyschlag)
                  
	Precision Thin Film Chip Resistors (Draloric
        Beyschlag)
                  
	Precision Wire wound Cemented Resistors (Draloric
        Beyschlag)
                  
	Precision film capacitors
                  
	Precision 1% to 2%...KP 1830 (film capacitors)
                  
	Precision Feel Rotary Potentiometers (Spectrol 21P)
        

            
	
            	     	  
	6.	
            	Other uses of word “precision” where
      preceded by various words, e.g.
	
            	
            	 
	
            	
            	
              	KP Polypropylene film / foil
        precision capacitors
                  
	High Precision Thin Film
        Chip Resistor
                  
	High Precision MELF
        Resistor
                  
	High Precision MINI-MELF
        Resistor
                  
	High Precision Thin Film
        Leaded Resistor
                  
	High Precision Metal Film
        Leaded Resistor
                  
	High Precision Thin Film
        Chip Resistor Arrays
                  
	High precision
        ...(Dale)
                  
	Very High Precision Thin
        Film Chip Resistor
                  
	Very High Precision MELF
        Resistor
                  
	Very High Precision
        MINI-MELF Resistor
                  
	Very High Precision Thin
        Film Leaded Resistor
                  
	Very High Precision Metal
        Film Leaded Resistor
                  
	Very High Precision Thin
        Film Chip Resistor Arrays
                  
	Ultra Precision Thin Film
        Chip Resistor Arrays
                  
	Ultra Precision Thin Film
        Chip Resistor
                  
	Ultra Precision MELF
        Resistor
                  
	Ultra Precision MINI-MELF
        Resistor
                  
	Ultra Precision Thin Film
        Leaded Resistor
                  
	Ultra-Precision Thin Film
        Flat Chip Resistors
                  
	Ultra Precision Metal Film
        Leaded Resistor
                  
	Ultra Precision Silicon
        Based RF Capacitors
                  
	Cemented Wirewound Precision
        Resistors
                  
	Semi Precision Thick Film
        Chip Resistors
                  
	Frequency Precision Surface
        mount Inductors
                  
	ACAC 0612 Precision Thin
        Film Chip Resistor Arrays
                  
	ACAS 0612 AT Precision Thin
        Film Chip Resistor Arrays
                  
	ACAS 0606 AT Precision Thin
        Film Chip Resistor Arrays 

            
	
            	
            	 
	7.	
            	“Precision ...” in a sentence following
      “Vishay Intertechnology Inc.”, e.g.
	
            	
            	 
	
            	
            	
              	“Vishay Intertechnology Inc. Precision ...”
      

            

    

    
    

     

    C-2

     

    

    
    

    SCHEDULE
D

     

    LICENSED DOMAIN
NAMES

     

    vishayprecision
vishayfoilresistors
vishaymeasurementsgroup
vishaymg
vishaynobel
vishaypg
vishaypgloadcells

     

    D-1

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