Document:

exhibit10-13.htm

    FORM OF PUT AND CALL
AGREEMENT 

     

         PUT AND CALL AGREEMENT (this “Agreement”) dated as of ________, 2010 between Vishay
Precision Group, Inc., a Delaware corporation (the “Company”), the
Put/Call Agent (as defined herein) and each of the holders of the Notes due
December 13, 2102 (the “Notes”) issued by the
Company. 

     

         WHEREAS, Vishay Intertechnology issued notes
(the “Vishay
Intertechnology Notes”) pursuant to that certain Note Instrument
dated as of December 13, 2002 (the “Vishay Intertechnology Note
Instrument”); and

     

         WHEREAS, Vishay Intertechnology, American
Stock Transfer & Trust Co. and the holders of the Vishay Intertechnology
Notes entered into that certain Put and Call Agreement, dated as of December 13,
2002 (the “Vishay
Intertechnology Put and Call Agreement”);
and

     

         WHEREAS, pursuant to the Vishay
Intertechnology Put and Call Agreement, Vishay Intertechnology agreed that in
case it shall at any time pay a dividend or make a distribution to all holders
of its common stock consisting of the capital stock of any class or series, or
similar interests, of or relating to a subsidiary or other business entity of
Vishay Intertechnology, then Vishay Intertechnology shall take such action and
shall cause the subsidiary or other business entity whose capital stock was paid
as a dividend or distributed by Vishay Intertechnology to take such action so
that each of the notes issued pursuant to the Vishay Intertechnology Note
Instrument shall be deemed exchanged as of the effective date of such
transaction, for a combination of new floating rate unsecured Vishay
Intertechnology loan notes and floating rate unsecured loan notes of the
subsidiary or other business entity whose capital stock was paid as a dividend
or distributed by Vishay Intertechnology; and 

     

         WHEREAS, Vishay Intertechnology and the
Company entered into that certain Master Separation Agreement, dated as of
_______, 2010 (the “Master Separation
Agreement”), providing for the spin-off of the Company by Vishay
Intertechnology in the form of a tax free dividend of the common stock of the
Company to the holders of the common stock of Vishay Intertechnology and the
class B common stock of the Company to the holders of class B common stock of
Vishay Intertechnology; and 

     

         WHEREAS, the Company has agreed under the
terms of the Master Separation Agreement to comply with the obligation under the
Vishay Intertechnology Put and Call Agreement to issue floating rate unsecured
loan notes to the holders of the Vishay Intertechnology Notes; and 

     

    

    
    

         NOW, THEREFORE, in consideration of the
premises and the mutual agreements herein set forth, the parties hereto agree as
follows: 

     

     ARTICLE I

DEFINITIONS 

     

         SECTION 1.01. Definitions. As used
in this Agreement, the following terms, when capitalized, shall have the
meanings assigned below: 

     

        “Assignment Form”
means an assignment form substantially in the form attached hereto as Annex I.

     

         “Business
Day” means any day other than a Saturday, Sunday or legal holiday on
which the commercial banks in the City of New York, Borough of Manhattan, are
required or permitted by law to remain closed. 

     

         “Call”
means the right of the Company to call all of the Notes in exchange for the
issuance of shares of Common Stock or cash in accordance with the provisions of
Article III. 

     

         “Call Exercise Notice”
has the meaning described in Section 3.02. 

     

         “Call
Period” means the period beginning on January 2, 2018 and ending on the
date that is 30 days prior to the Maturity Date. 

     

         “Call Target
Price” means $_____ per share of Common Stock, which price shall be
appropriately adjusted in the event of any stock dividend, stock split, reverse
stock split, combination, recapitalization, reclassification, exchange or
similar transaction with respect to the shares of Common Stock. 

     

         “Common
Stock” means the common stock, par value US$.10 per share, of the Company
and any other security exchanged or substituted for such common stock or into
which such common stock is converted in any recapitalization, reorganization,
merger, consolidation, share exchange or other business combination transaction,
including any reclassification consisting of a change in par value or a change
from par value to no par value or vice versa. 

     

         “Company” has the
meaning set forth in the introduction to this Agreement. 

     

         “Daily Market
Price” for any trading day means the volume-weighted average of the per
share selling prices on the New York Stock Exchange or other principal United
States securities exchange or inter-dealer quotation system on which the
relevant equity security is then listed or quoted or, if there are no reported
sales of the relevant equity security on such trading day, the average of the
high bid and low ask price for the relevant equity security on the last trading
day on which such sale was reported or, if there are no high bid and low ask
prices, the Daily Market Price shall be the per share fair market value of the
relevant equity security as determined by an investment banking firm of national
reputation and standing selected by the Company and reasonably acceptable to a
Majority of the Holders (in which case, only a single determination of value
need be made by an investment banking firm, notwithstanding any provision in the
Agreement requiring an average over more than one (1) trading day).

     

         “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder, as the same may be amended from time to
time. 

     

    - 2 - 

     

    

    
    

         “Holder”
means the Initial Holders and their successors and permitted assigns who become
holders of Notes in a manner permitted thereunder, in each case until the
relevant person ceases to be a holder of Notes in accordance with the provisions
of the Notes and this Agreement. 

     

         “Initial
Holder” means the persons to whom or for whose benefit the Notes are
issued under the terms of the Vishay Intertechnology Put and Call Agreement and
the terms of the Master Separation Agreement and whose names appear on the
signature page to this Agreement, in each case until the relevant person ceases
to be a Holder of Notes in accordance with the provisions hereof. 

     

         “Interest Rate
Hurdle” means the “Target Price” (initially $__ per Common Share), as
defined in Schedule 2 of the Notes which may be adjusted pursuant to the
provisions herein, and whereby (pursuant to Schedule 2, Item 3(c) of the Notes)
the interest rate on the Notes is adjusted for the period commencing on or after
January 1, 2011 based upon certain performance parameters of the shares of
Common Stock. 

     

         “Issue
Date” means the date of this Agreement, which is the date as of which the
Notes are first issued. 

     

         “Majority of
the Holders” means, at any relevant time, the Holders of a majority of
the nominal amount of the Notes that are at any relevant time outstanding.

     

         “Maturity
Date” means December 31, 2102, the final maturity date of the Notes.
“Notes” has the meaning set forth in the introduction to this Agreement.

     

         “person”
means any individual, corporation, partnership, limited liability company,
trust, foundation, joint venture, association, joint stock company,
unincorporated organization, government agency, estate or other entity of any
nature. 

     

         “Put”
means the right of a Holder to require the Company to exchange the Notes, in
whole or in part (as permitted herein), for shares of Common Stock in accordance
with the provisions of Article II. 

     

         “Put/Call
Agent” means American Stock Transfer & Trust Co., a New York
corporation, or any successor as provided in Article V. 

     

         “Put/Call
Rate” means $______ per share, subject to adjustment pursuant to Article
IV herein. 

     

         “Put Exercise
Notice” means the notice of intention to exercise the Put in the form
attached to this Agreement in the form of Annex II. 

     

         “Put
Period” means the period during which the Notes are outstanding, ending
on the Maturity Date. 

     

         “SEC” means the United
States Securities and Exchange Commission. 

     

    - 3 - 

     

    

    
    

         “Securities
Act” means the United States Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder, as the same may be amended from
time to time. 

     

         Where the reference “hereof,” “hereby” or
“herein” appears in this Agreement, such reference shall be deemed to be a
reference to this Agreement as a whole. Whenever the words “include,” “includes”
or “including” are used in this Agreement, they shall be deemed to be followed
by the words “without limitation.” Words denoting the singular include the
plural, and vice versa, and references to it or its or words denoting any gender
shall include all genders. 

     

    ARTICLE II
THE PUT

     

         SECTION 2.01. Put Exercise
Generally. At any time during the Put Period, a Holder may exercise the
Put with respect to (i) the aggregate nominal amount of all Notes held by such
Holder or (ii) a portion of the nominal amount of any Note in integral multiples
of US$2,000,000. The number of shares of Common Stock issuable upon exercise of
the Put shall equal (i) the nominal amount of the Notes for which the Put is
being exercised by the Holders, divided by (ii) the Put/Call Rate as of the Put
Date (as defined below). No adjustment to the Put/Call Rate shall be made in
respect of any accrued but unpaid interest on the Notes, whether before or after
the record date for payment of any such interest. 

     

         SECTION 2.02. Put Exercise
Procedure. To exercise the Put, the Holder must (i) surrender to the
Put/Call Agent (at its office designated for such purpose, the initial address
of such office being listed in Section 6.01 hereof) the certificate or
certificates representing the Notes to be exchanged together with the Put
Exercise Notice duly completed and executed, (ii) deliver a form of transfer in
the form specified by the Notes executed by the Holder with the name of the
transferee left blank and (iii) pay any transfer or similar tax required to be
paid by the Holder pursuant to Section 2.04. 

     

         The date on which the Holder satisfies all the
requirements for exercise of the Put is referred to as the “Put Date.” As soon as
practicable after the Put Date, the Company will cause the Put/Call Agent to
deliver to the Holder in exchange for the Notes (or, pursuant to this Section
2.02, a portion thereof) as to which the Put has been exercised a certificate
(or other evidence of ownership) ,for the number of full shares of Common Stock
issuable upon the exercise of the Put and cash in lieu of any fractional share
determined pursuant to Section 2.03. The person in whose name the certificate is
registered shall be treated as a stockholder of record on and after the Put
Date, and such person, following the exchange of the relevant Note or part
thereof in accordance herewith, shall no longer be a Holder of the Notes as to
which the Put has been exercised as of such date. 

     

         If the Holder exercises the Put for more than
one Note at the same time, the number of shares of Common Stock issuable upon
exchange of the Notes shall be based on the total nominal amount of the Notes
exchanged. 

     

    - 4 - 

     

    

    
    

         Upon surrender of a Note that is exchanged in
part, the Company will execute and deliver to the Holder a Note certificate in
an authorized denomination equal in nominal amount to the unexchanged portion of
the Note surrendered. 

     

         SECTION 2.03. Fractional Shares.
The Company will not issue a fractional share of Common Stock upon exchange of a
Note. Instead, the Company will deliver cash for the fractional share, to the
nearest 1/10,000th of a share, equal to an amount determined by multiplying (i)
such fractional share by (ii) the closing sale price of the Common Stock on the
principal exchange or quotation system on which the Common Stock is then traded
(or if there is no sale of the Common Stock reported on such trading day, the
average of the low ask and high bid prices for the Common Stock on such trading
day) on the last trading day prior to the Put Date and rounding the product to
the nearest whole cent. 

     

         SECTION 2.04. Taxes on Conversion.
If a Holder exercises the Put, the Company shall pay any documentary, stamp or
similar issue or transfer tax due on the issue of shares of Common Stock upon
exchange. However, the Holder shall pay any such tax which is due because the
Holder requests the shares to be issued in a name other than the Holder’s name.
The Put/Call Agent may refuse to deliver the certificates representing the
Common Stock being issued in a name other than the Holder’s name until the
Put/Call Agent receives a sum sufficient to pay any tax which will be due
because the shares are to be issued in a name other than the Holder’s name.
Nothing herein shall preclude any tax withholding required by law or regulations
by the Company. 

     

         SECTION 2.05. Reservation of Stock,
Validity of Shares; Listing. The Company will at all times reserve and
keep available, out of the aggregate of its authorized but unissued shares of
Common Stock or its authorized and issued shares of Common Stock held in its
treasury, for the purpose of enabling it to satisfy any obligation to issue
shares of Common Stock upon exchange of the Notes following exercise of the Put,
the maximum number of shares of Common Stock which may then be deliverable upon
the exchange of all outstanding Notes upon the exercise of the Put. The Company
may in its discretion use such shares of Common Stock reserved for the Put
pursuant to this Section with respect to any Call. The Company or, if appointed,
the transfer agent for the Common Stock (the “Transfer Agent”) and
every subsequent transfer agent for any shares of the Company’s capital stock
issuable upon the exchange of any of the Notes upon exercise of the Put shall be
authorized and directed at all times to reserve such number of authorized
‘shares as shall be required for such purpose. The Company shall keep a copy of
this Agreement on file with the Transfer Agent and with every subsequent
transfer agent for any shares of the Company’s capital stock issuable upon the
exchange of the Notes. The Company will furnish such Transfer Agent a copy of
all notices of adjustments and certificates related thereto, transmitted to each
Holder. 

     

         All shares of Common Stock delivered upon
exchange of the Notes following exercise of the Put shall be newly issued shares
or treasury shares, shall be duly and validly issued and fully paid and
nonassessable and shall be free from preemptive rights and free of any lien or
adverse claim. 

     

    - 5 - 

     

    

    
    

         The Company will list or cause to have quoted
such shares of Common Stock issuable upon exercise of the Put on each securities
exchange or such other market on which the Common Stock is then listed or
quoted. 

     

    ARTICLE III
THE
CALL 

     

         SECTION 3.01. Call Exercise
Generally. At any time during the Call Period, the Company, at its
option, may exercise the Call with respect to all of the Notes, as provided
herein. Upon exercise of the Call, 

     

         (i) if the Common Stock has had a Daily Market
Price at or above the Call Target Price then in effect for 20 or more out of 30
consecutive trading days at any time after the Issue Date, the Company shall
issue to the Holders that number of shares of Common Stock equal to (x) the
nominal amount of the Notes exchanged divided by (y) the Put/Call Rate as of the
Call Date (as defined below) and pay to the Holders an amount in cash equal to
accrued but unpaid interest on the Notes to the Call Date or; 

     

         (ii) if the Common Stock has not had a Market Value
at or above the Call Target Price for 20 or more out of 30 consecutive trading
days at any time after the Issue Date, at the election of the Company, the
Company shall either- 

     

         (1) issue to the Holders that number of shares of
Common Stock equal to (x) the nominal amount of the Notes exchanged divided by
(y) the average of the Daily Market Prices for the ten trading days ending two
trading days prior to the date that the Call Exercise Notice is first sent to
Holders, and pay to the Holders an amount in cash equal to accrued but unpaid
interest on the Notes to the Call Date; or 

     

         (2) pay to the Holders $1.00 for each $1.00
nominal amount of Notes subject to the Call, plus an amount in cash equal to any
accrued but unpaid interest on the Notes to the Call Date. 

     

         No adjustment to the Put/Call Rate shall be
made in respect of any accrued but unpaid interest on the Notes, whether before
or after the record date for payment of any such interest. 

     

         The date that the Company specifies for the
exchange of the Notes pursuant to exercise of the Call as specified herein is
referred to as the “Call Date.”

     

         The Company shall give the notice of a Call to
the Put/Call Agent at least thirty (30) days but not more than sixty (60) days
before the Call Date (unless a shorter notice shall be satisfactory to the
Put/Call Agent). The Company shall accompany such notice with a copy of the
register of the record owners of the Notes then outstanding and shall promptly
furnish the Put/Call Agent with any changes in such register prior to the Call
Date. 

     

    - 6 - 

     

    

    
    

     

         SECTION 3.02. Call Exercise Notice.
At least thirty (30) days but not more than sixty (60) days before a Call Date,
the Company shall send a notice of redemption (“Call Exercise
Notice”), by a method permitted for the delivery of a notice to the
Holders pursuant to Section 6.1 below, to each Holder of Notes at its registered
address. 

     

         The Call Exercise Notice shall
state: 

     

         (1) the Call Date;

     

         (2) whether the Call is for shares or cash; 

     

         (3) if the call is for shares, the Put/Call Rate
(as subject to adjustment pursuant to Article IV prior to the Call Date) or, in
the case of a Call exercised pursuant to clause (ii) (1) of Section 3.01, the
number of shares of Common Stock exchangeable for each $1,000 nominal amount of
Notes; 

     

         (4) if the Call is for cash, that the Company will
pay to the Holders $1.00 for each $1.00 nominal amount of Notes subject to the
Call; 

     

         (5) the accrued but unpaid interest to the Call
Date, to the extent it can be determined; 

     

         (6) the name and address of the Put/Call Agent; 

     

         (7) that the Notes must be surrendered to the
Put/Call Agent to receive the cash or shares of Common Stock issuable in
exchange for the Notes, as applicable; and 

     

         (8) that, unless the Company defaults in issuing
the shares of Common Stock or to pay the cash as the case may be, in exchange
for the Notes called for exchange, such Notes will cease to accrue interest on
and after the Call Date. 

     

         At the Company’s request, the Put/Call Agent
shall give the notice of exercise of the Call in the Company’s name and at the
Company’s expense, provided that the Company makes such request at least fifteen
(15) days (unless a shorter period shall be acceptable to the Put/Call Agent)
prior to the date such notice of redemption must be mailed. 

     

         SECTION 3.03. Competing Notices/Effect of
Notice of Redemption. If, following service of a Call Exercise Notice and
prior to the date falling five (5) days before the relevant Call Date, a Put
Exercise Notice is served by any Holder pursuant to Article II above, then that
Call Exercise Notice shall cease to have effect in relation to the Notes subject
to the Put Exercise Notice. Subject thereto and provided the relevant Notes
remain outstanding on the Call Date, once notice of exercise of the Call is
given pursuant to Section 3.02, the Notes will become mandatorily exchangeable
on the Call Date. Upon surrender to the Put/Call Agent, the Notes shall be
exchanged for shares of Common Stock or cash in accordance with Section 3.01.

     

         SECTION 3.04. Call Date. Subject
only to Section 3.03 above and Section 3.05 below, on the Call Date, -upon
surrender by a Holder to the Put/Call Agent of, and provision to the Put/Call
Agent of a duly executed form of transfer in relation to, the Notes, the Notes
of any Holder shall be exchanged on the Call Date by the Put/Call Agent for the
appropriate number of shares of Common Stock or cash as provided in Section 3.01
above, and the Put/Call Agent shall in addition pay to each Holder its
entitlement of cash in lieu of any fractional share determined pursuant to
Section 3.06 herein and any interest accrued but unpaid.

     

    - 7 - 

     

    

    
    

         SECTION 3.05. Deposit of Redemption
Price. The Company shall make available to the Put/Call Agent sufficient
Common Stock to exchange the Notes on the Call Date, together with cash in lieu
of fractional shares as provided in Section 3.06 and in respect of accrued but
unpaid interest. 

     

         SECTION 3.06. Fractional Shares.
The Company will not issue a fractional share of Common Stock upon exchange of a
Note. Instead, the Company will deliver cash for the fractional share, to the
nearest 1/10,000th of a share, equal to an amount determined by multiplying (i)
such fractional share by (ii) the closing sale price of the Common Stock on the
principal exchange or quotation system on which the Common Stock is then traded
(or if there is no sale of the Common Stock reported on such trading day, the
average of the low ask and high bid prices for the Common Stock on such trading
day) on the last trading day prior to the Call Date and rounding the product to
the nearest whole cent. 

     

         SECTION 3.07. Taxes on Conversion.
If the Company exercises the Call, the Company shall pay any documentary, stamp
or similar issue or transfer tax due on the issue of shares of Common Stock upon
exchange. However, the Holder shall pay any such tax which is due because the
Holder requests the shares to be issued in a name other than the Holder’s name.
The Put/Call Agent may refuse to deliver the certificates representing the
Common Stock being issued in a name other than the Holder’s name until the
Put/Call Agent receives a sum sufficient to pay any tax which will be due
because the shares are to be issued in a name other than the Holder’s name.
Nothing herein shall preclude any tax withholding required by law or regulations
by the Company. 

     

         SECTION 3.08. Validity of Shares,
Listing.

     

         All shares of Common Stock delivered upon
exchange of the Notes following exercise of the Call shall be newly issued
shares or treasury shares, shall be duly and validly issued and fully paid and
nonassessable and shall be free from preemptive rights and free of any lien or
adverse claim. 

     

         The Company will list or cause to have quoted
such shares of Common Stock issuable upon exercise of the Call on each
securities exchange or such other market on which the Common Stock is then
listed or quoted. 

     

    ARTICLE
IV
ADJUSTMENTS TO THE PUT/CALL
RATE 

     

         SECTION 4.01. Adjustments to the Put/Call
Rate. The Put/Call Rate is subject to adjustment from time to time upon
the occurrence of the events enumerated in this Section 4.01. 

     

    
      	(a)	      	Declaration of Stock Dividend, Splits,
      Reverse Splits or Reclassification or Reorganization: other
      Distributions.

    

     

    - 8 - 

     

    

    
    

    
      	      	(i)	      	In
      case the Company shall declare any dividend or other distribution upon its
      outstanding shares of Common Stock payable in Common Stock or shall
      subdivide its outstanding shares of Common Stock into a greater number of
      shares, then the Put/Call Rate, the Call Target Price and the Interest
      Rate Hurdle shall be decreased in inverse proportion to the increase in
      the number of shares of Common Stock outstanding through such dividend,
      other distribution, or subdivision. In case the Company shall at any time
      combine the outstanding shares of its Common Stock into a smaller number
      of shares, the Put/Call Rate, the Call Target Price and the Interest Rate
      Hurdle shall be increased in inverse proportion to the decrease in the
      number of shares of Common Stock outstanding through such combination. The
      Company shall cause a notice to be mailed to each Holder at least ten (10)
      days prior to the applicable record date for the activity covered by this
      Section 4.01(a)(i). The Company’s failure to give the notice required by
      this Section 4.01(a)(i) or any defect therein shall not affect the
      validity of the activity covered by this Section 4.01(a)(i).
      Notwithstanding the foregoing, nothing in this paragraph will prejudice
      the rights of the Holders pursuant to this Agreement.
	
            	 
	
            	(ii)	
            	In
      case the Company shall at any time (including in connection with any
      merger, consolidation or sale of all or substantially all the assets of
      the Company in which Section 4.01(d) hereof is not applicable) (i) issue
      any evidence of indebtedness, shares of its stock or any other securities
      to all holders of shares of Common Stock by reclassification of its shares
      of Common Stock, (ii) distribute any rights, options or warrants to
      purchase or subscribe for any evidence of indebtedness, shares of its
      stock (other than distributions for which adjustment may be made pursuant
      to Section 4.01(b) or Section 4.01(e)) or any other securities to all
      holders of shares of Common Stock, (iii) distribute cash (other than
      regular quarterly or semi-annual cash dividends) or other property to all
      holders of shares of Common Stock, or (iv) issue by means of a capital
      reorganization other securities of the Company in lieu of the Common Stock
      or in addition to the Common Stock, then the Note shall be adjusted as is
      determined to be appropriate so that the Holder of each Note shall be
      entitled to receive the kind and number of shares or other securities of
      the Company or the successor entity or cash or other property that the
      Holder would have owned or have been entitled to receive after the
      happening of the event described above, had such Note been converted
      immediately prior to the happening of such event or any record date with
      respect thereto. The Company shall cause a notice to be mailed to each
      Holder at least ten (10) days prior to the applicable record date for the
      activity covered by this Section 4.01(a)(ii). The Company’s failure to
      give the notice required by this Section 4.01(a)(ii) or any defect therein
      shall not affect the validity of the activity covered by this Section
      4.01(a)(ii). Notwithstanding the foregoing, nothing in this paragraph will
      prejudice the rights of the Holders pursuant to this
  Agreement.
	
            	 
	
            	(iii)	
            	An
      adjustment made pursuant to this Section 4.01(a) shall become effective
      immediately after the effective date of such event retroactive to the
      record date, if any, for such event.

    

     

    - 9 - 

     

    

    
    

    
      	(b)	      	Adjustment for Rights
      Issuance.
	 
	 	
            	      	(i)	      	(A) In
      case the Company shall at any time distribute any rights, options or
      warrants to all holders of Common Stock entitling them, for a period
      expiring within sixty (60) days after the date of determination of the
      stockholders entitled to receive such rights (the “Record Date”)
      (or any longer period resulting from the extension of the exercise period
      which is announced following the time that the rights, options or warrants
      are first issued) for such distribution, to purchase or subscribe for
      shares of Common Stock at a price per share less than ninety percent (90%)
      of the Daily Market Price of the Common Stock on the Record Date, then the
      Put/Call Rate, the Call Target Price and the Interest Rate Hurdle in
      effect immediately prior thereto shall be adjusted as provided
      below:
	
            	
            	
            	
            	
            	 
	
            	
            	
                   Put Call Rate
      Adjustment. The Put
      Call Rate Adjustment shall be determined by the following
      formula:

            

    

    
      	
              R = Ro x

            	
              (O +
      C/M)

            
	
            	
              (O +
      A)

            

    

    
      	         
      	where:	
            	
            	
            
	 	 	
            	
            	
            
	 	R	=	
            	the adjusted Put/Call Rate;
	 	 	
            	
            	
            
	 	Ro	=	 	the Put/Call Rate immediately prior to such
adjustment;
	 	 	
            	
            	
            
	 	0	=	
            	
              the number of
      shares outstanding immediately prior to the issuance of such rights,
      options or warrants as referred to in this Section
      4.01(b)(i)(A);

            
	 	 	
            	
            	
            
	 	A	=	
            	
              the maximum
      number of shares issuable pursuant to such rights, options or warrants as
      referred to in this Section 4.01(b)(i)(A);

            
	 	 	
            	
            	
            
	 	C	=	
            	
              the aggregate
      consideration receivable by the Company for the issuance of Common Stock
      upon exercise of such rights, options or warrants as referred to in this
      Section 4.01(b)(i)(A); and

            
	 	 	
            	
            	
            
	 	M	=	     	
              the average of
      the Daily Market Prices of the Common Stock for the ten (10) consecutive
      trading days immediately preceding the Record
  Date;

            

    

                  Call Target Price Adjustment. The Call Target Price shall be determined in
accordance with the following formula: 

     

    
      	
              T = To x

            	
              (O +
      C/M)

            
	
            	
              (O +
      A)

            

    

     

    
      	         
      	where:	 	 	
            
	 	 	
            	
            	
            
	 	T	=	     	the adjusted Call Target
Price;

    

    - 10 - 

     

    

    
    

    
      	          	To     
      	=	    
	the Call Target Price immediately prior
      to such adjustment;
	
            	 	
            	
            	
            
	
            	
              and the other
      symbols in such formula have the meanings specified under “Put/Call Rate
      Adjustment” above and the preceding paragraph. 

               

                   Interest Rate Hurdle
      Adjustment. The
      Interest Rate Hurdle applicable shall be determined in accordance with the
      following formula: 

            

    

    
      	
              I = Io x

            	
              (O +
      C/M)

            
	
            	
              (O +
      A)

            

    

    
      	
            	where:	 	
            	  
	
            	 	
            	
            	
            
	
            	I	=	
            	the adjusted Interest Rate
    Hurdle;
	
            	 	
            	
            	
            
	          	Io	=	    
	the Interest Rate Hurdle immediately
      prior to such adjustment;

    

    
      	          	
              and the other
      symbols in such formula have the meanings specified under “Put/Call Rate
      Adjustment” above and the preceding paragraph; provided that no
      adjustments shall be made in the event that R would exceed Ro.
      

               

            
	 	
            	
            
	 	
            	 	
            	(B)	      	The
      adjustments shall become effective immediately after the Record Date  for the determination of shareholders entitled to
      receive the rights, warrants or options to which this Section 4.01(b)(i)
      applies. If less than all of such rights, warrants or options have been
      exercised when such rights, warrants or options expire, then the Put/Call
      Rate, the Call Target Price and the Interest Rate Hurdle shall promptly be
      readjusted to the Put/Call Rate, the Call Target Price and the Interest
      Rate Hurdle that would then be in effect had the adjustment upon the
      issuance of such rights, warrants or options been made on the basis of the
      actual number of shares of Common Stock issued upon the exercise of such
      rights, warrants or options.
	 
	 	
            	(ii)	      	In case the Company shall at any time distribute any rights,
      options or warrants to all holders of Common Stock entitling them, for a
      period expiring more than sixty (60) days after the Record Date therefor (excluding any rights, options
      or warrants originally issued with an exercise period of sixty (60) days
      or less, which, by virtue of one or more extensions, expire more than
      sixty (60) days after the Record Date therefor), to purchase or subscribe
      for shares of Common Stock at a price per share less than ninety percent
      (90%) of the Market Price of the Common Stock as of such Record Date, then
      the Company shall similarly distribute such rights, options or warrants to
      the Holders on such Record Date (without any exercise of the Put by
      Holders) as if such Holders had exercised their Put immediately prior to
      the Record Date.

    

     

    - 11 - 

     

    

    
    

    
      	(c)	      	Liquidation,
      Dissolution or Winding Up.
      Notwithstanding any other provisions hereof, in the event of the
      liquidation, dissolution, or winding up of the affairs of the Company
      (other than in connection with a consolidation, merger or sale or
      conveyance of all or substantially all of its assets or a Change or
      Spin-Off), the right to exchange the Notes shall terminate and expire at
      the close of business on the last full Business Day before the earliest
      date fixed for the payment of any distributable amount on the Common
      Stock. The Company shall cause a notice to be mailed to each Holder at
      least ten (10) Business Days prior to the applicable record date for such
      payment stating the date on which such liquidation, dissolution or winding
      up is expected to become effective, and the date on which it is expected
      that holders of record of shares of Common Stock shall be entitled to
      exchange their shares of Common Stock for securities or other property or
      assets (including cash) deliverable upon such liquidation, dissolution or
      winding up, and that each Holder may exercise the Put during such ten (10)
      Business Day period and, thereby, receive consideration in the liquidation
      on the same basis as other previously outstanding shares of the same class
      as the shares acquired upon exercise. The Company’s failure to give notice
      required by this Section 4.01(c) or any defect therein shall not affect
      the validity of such liquidation, dissolution or winding up.
      Notwithstanding the foregoing, nothing in this paragraph will prejudice
      the rights of the Holders pursuant to this Agreement. 
	 
	(d)	
            	
              Merger, Consolidation,
      etc.  In any event when (A) any person (the “ Acquirer”)
      directly or indirectly acquires the Company in a transaction in which the
      Company is merged with or into or consolidated with another person or (B)
      the Company sells or conveys all or substantially all of its assets to
      another person (unless, subsequent to such merger, consolidation or other
      transaction, the Company is the surviving entity and has reporting
      obligations under the Exchange Act as a result of having common equity
      securities outstanding, in which case, this Section shall not apply with
      respect to such merger, consolidation or other transaction) (such merger,
      consolidation or other transaction referred to hereinafter as a “ Change”)),
      then, in the case of each such Change, the following shall
      occur:

            
	 
	 	
            	(i)	      	The
      Company shall give written notice of any Change to each Holder, in
      accordance with Section 6.01 hereof, at least ten (10) Business Days
      immediately preceding but not including the date of effectiveness of the
      Change and shall also include in such written notice whether the Acquirer
      is effecting Section 4.01(d)(ii) or Section 4.01(d)(iii) below. The
      Company’s failure to give notice required by this Section 4.01(d) or any
      defect therein shall not affect the validity of the Change covered by this
      Section 4.01(d). Notwithstanding the foregoing, nothing in this paragraph
      will prejudice the rights of the Holders pursuant to this
    Agreement.
	 
	 	
            	 	
            	In
      addition, at the option of the Acquirer, the Acquirer will effect either
      Section 4.01(d)(ii) or Section 4.01(d)(iii) below, with respect to the
      rights provided to the Holders pursuant to the Notes and the Put and Call
      (provided that, if Section 4.01(d)(ii) below is not available for whatever
      reason, the Acquirer will effect Section 4.01(d)(iii) below).
      Notwithstanding the foregoing, if the Acquirer is not a public company
      with reporting obligations under the Exchange Act (or is a continuing
      public company only by virtue of securities which are not common equity
      securities under the Exchange Act), then the Acquirer will effect the
      steps described in Section 4.01(d)(iii)(A),(B), (C) and (D) below (and
      shall result in the automatic election of Section
  3.01(ii)(2).

    

     

    - 12 - 

     

    

    
    

    
      	
            	(ii)	
            	The Roll-Over Option. 
	
            	 
	
            	 	
            	(A)	
            	The
      Notes shall remain the outstanding obligations of the Company.
  
	
            	 
	
            	 	
            	(B)	      	The
      Company shall procure that the Acquirer provides a full and unconditional
      guarantee on terms reasonably satisfactory to a Majority of the Holders,
      which shall inure for the benefit of all holders of the Notes (the “Guarantee”) of
      the prompt payment when due by the Company of principal and interest under
      or arising out of the Notes. Such Guarantee shall rank pari passu equally
      and ratably without discrimination, subordination or preference as an
      unsecured debt obligation of the Acquirer.
	
            	 
	
            	 	
            	(C)	
            	The
      Company shall procure that the Acquirer executes an agreement supplemental
      hereto that provides that the Acquirer will be bound by this
      Agreement;
	
            	 
	          	 	      	(D)	
            	In the
      case of each such Change, thereafter each Holder shall receive, upon such
      Holder’s exercise of the Put pursuant to this Agreement, shares of the
      Acquirer (the “Acquirer
      Shares”) as opposed to shares of the Company, as provided for prior
      to such Change. In addition, the Put/Call Rate, the Call Target Price, and
      the Interest Rate Hurdle on the Notes shall be determined by the following
      formulae:
	
            	 
	
            	
                   Put/Call Rate
      Adjustment. After
      the Change, the Put/Call Rate shall be adjusted in the following manner:
      

            

    

     

    PC = PCo x (M/Mo)

     

    
      	
            	where:	
            	
            	  
	
            	  
	
            	PC	=	
            	the adjusted Put/Call Rate.
	
            	  
	 	PCo	=	 	the Put/Call Rate immediately prior to
      such adjustment.
	
            	  
	
            	Mo	=	
            	
              the average of
      the Daily Market Prices of the Common Stock for the first ten (10)
      consecutive trading days-immediately preceding but not including the date
      of effectiveness of the Change.

            
	
            	  	
            	
            	  
	          	M	=	     	
              the fair market
      value per share of the Acquirer Shares. As used in this formula, “fair
      market value” shall mean the average Daily Market Price of the Acquirer
      Shares for the ten (10) consecutive trading days immediately preceding but
      not including the date of effectiveness of the Change.

            
	
            	
            	
            	
            	 
	
            	
                   Call Target Price
      Adjustment. After
      the Change, the Call Target Price shall be adjusted in the following
      manner: 

            

    

    T = To x (M/Mo)

     

    - 13 - 

     

    

    
    

    
      	
            	Where:	
            	 	
            
	 	
            	
            	
            	
            
	 	T	=	
            	the adjusted Call Target
  Price.
	
            	
            	
            	 	
            
	          	To	=	     	the Call Target Price immediately prior
      to such adjustment.
	 	
            	
            	
            	
            
	
            	
              and the other
      symbols in such formula have the meanings specified under “Put/Call Rate
      Adjustment” above and the preceding paragraph. 

               

              Interest Rate Hurdle
      Adjustment. After
      the Change, the Interest Rate Hurdle applicable to the Notes shall be
      adjusted in the following manner:

            

    

    I =
Io x (M/Mo) 

     

    
      	
            	Where:	
            	 	
            
	
            	 	
            	
            	
            
	 	I	=	
            	the adjusted Interest Rate Hurdle;
	
            	 	
            	
            	
            
	          	Io	=	     	the Interest Rate Hurdle immediately prior to such
      adjustment.

    

    
      	
            	
              and the other
      symbols in such formula have the meanings specified under “Put/Call Rate
      Adjustment” above and the preceding paragraph. 

            
	 	
            	
            	
            
	          	(iii)	      	
              The Acceleration
      Option. If the
      Acquirer chooses, or if Section 4.01(d)(ii) above is not available, or if
      the Acquirer is required to do so pursuant to Section 4.01(d)(i) above,
      the Acquirer shall provide a notice to the Company to such effect at least
      ten (10) Business Days immediately preceding but not including the date of
      effectiveness of the Change, and the Company shall inform the Holders as
      soon as reasonably practicable thereafter, but in any event not later than
      five (5) Business Days immediately preceding but not including the
      effective date of the Change. In any such case, the following shall
      occur:

            
	
            	 
	
            	 	
            	(A)	
            	The Call Date
      shall be accelerated to be immediately prior to the effectiveness of the
      Change; 
	
            	 
	
            	 	
            	(B)	      	Except as
      provided in (C) below, the terms and conditions under Section 3.01 shall
      apply without the adjustments provided for in Section 4.01(d)(ii) above;
      provided, however, that if the Change is not effected, the provisions of
      this Section 4.01(d)(iii) shall not apply;
	
            	 
	
            	 	
            	(C)	
            	
              If, with respect to this
      Section 4.01(d)(iii), Section 3.01(ii) is applicable, in no event will the
      payment made or fair market value of shares of Common Stock issued by the
      Company to the Holders be less than the fair market value of the Notes. As
      used herein, the “fair market value” of the Notes shall be determined by
      an investment banking firm of national reputation and standing selected by
      the Company and reasonably acceptable to a Majority of the Holders. The
      fair market value shall be determined as of the day immediately preceding
      the first public announcement of the Change, and if payment for purposes
      of this Section 4.01(d)(iii) is in Common Stock, the Common Stock shall be
      valued at the closing price for the Common Stock on the effective date of
      the Change; and

            

    

     

    - 14 - 

     

    

    
    

    
      	          	 	(D)	      	Notwithstanding the provisions of Section 3.02, the Call Notice
      shall be sent as soon as practicable following notice of the Acquirer as
      described above.
	 
	(e)	
            	Spin-Off.
	 
	 	      	(i)      	In case the Company shall at any time pay a dividend or make a
      distribution to all holders of its Common Stock consisting of the capital
      stock of any class or series, or similar interests, of or relating to a
      subsidiary or other business unit of the Company (such transaction, a
      “Spin-Off”; such
      capital stock or other interests, the “Spin-Off
      Shares”; and such subsidiary or business unit, the “Spin-Off
      Company”), then the Company shall take such action, and shall cause
      the Spin- Off Company to take such action, so that the Notes shall be
      deemed exchanged as of the effective date of the Spin-Off, without action
      by any Holder, for a combination of new floating rate unsecured loan notes
      of the Company (the “New Notes”) and
      floating rate unsecured loan notes of the Spin-Off Company (“Spin-Off
      Notes”), as provided in this Section 4.01(e); provided, however, that
      in the event that the distribution of Spin-Off Notes to the Holders would,
      in the reasonable opinion of counsel to the Company, (i) jeopardize the
      tax-free nature of such Spin-Off or (ii) require registration with the SEC
      in circumstances where registration would not otherwise be required, then,
      at the election of the Company, either (y) the Holders shall not receive
      New Notes and Spin-Off Notes pursuant to this Section 4.01(e)(i) and the
      Put/Call Rate shall instead be adjusted pursuant to the terms of Section
      4.01(e)(ii) or (z) the Holders shall receive New Notes and Spin-Off Notes
      as contemplated above in this Section 4.01(e)(i). The terms of the New
      Notes and the Spin-Off Notes shall be identical to the terms of the Notes
      mutatis mutandis, except that the Put/Call Rates, the nominal amounts, the
      Call Target Prices and the Interest Rate Hurdles (subject to adjustment as
      provided therein) of the New Notes and the Spin-Off Notes shall be
      determined as follows:
	
            	
            	
            	 
	
            	
            	
                   Put/Call Rate
      Adjustment. The
      Put/Call Rate of the Spin-Off Notes shall be determined in accordance with
      the following formula: 

            

    

     

    Rs = Ro x Ps / (Pp + (r x Ps)) 

     

    
      	
            	where:	
            	
            	
            
	  	
            	
            	
            	
            
	 	Rs	=	 	the Put/Call Rate of the Spin-Off
      Notes;
	
            	 	
            	
            	
            
	          	Ro	=	     	the Put/Call Rate of the Notes
      immediately prior to adjustment for the Spin-Off pursuant to this Section
      4.01(e)(i);

    

    - 15 - 

     

    

    
    

    
      	
            	Pp	=	
            	
              the average of
      the Daily Market Prices of the Common Stock for the ten (10) consecutive
      trading days following the date on which the Spin-Off is consummated;
      

            
	
            	 	
            	
            	
            
	
            	r	=	
            	
              the number of
      Spin-Off Shares (which may be one or a fraction less than or greater than
      one) distributed pursuant to the Spin-Off in respect of each share of
      Common Stock; and 

            
	 	 	
            	
            	
            
	         	Ps	=	     	
              the fair market
      value per share of the Spin-Off Shares. As used in this section, “fair
      market value” shall mean the average Daily Market Price of the Spin-Off
      shares for the first ten (10) consecutive trading days following the date
      on which the Spin-Off is consummated; provided, however, that if such
      distributed securities do not begin trading within two trading days of the
      consummation of such Spin-Off or if the Spin-Off Shares do not trade for
      at least ten (10) consecutive trading days within twenty (20) days after
      the Spin-Off, then the “fair market value” of such distributed securities
      shall be determined by an investment banking firm of national reputation
      and standing selected by the Company and acceptable to a Majority of the
      Holders on the record date of the Spin-Off. 

            
	 	         	
            	
            	
            
	
            	
                   The Put/Call Rate of the New Notes shall
      be determined in accordance with the following formula:
  

            

    

     

    Rn = Ro x Ps / (Pp + (r x Ps)) 

     

    
      	
            	where	
            	 	
            
	 	 	
            	
            	
            
	         	Rn	=	     	the Put/Call Rate of the New
      Notes,
	
            	 	
            	
            	
            
	
            	
              and the other
      symbols in such formula have the meanings specified in the preceding
      paragraph of this Section 4.01(e)(i). 

               

                   Nominal Amount Adjustment.
      The nominal amount
      of each Spin-Off Note shall be determined in accordance with the following
      formula: 

            

    

     

    As = Ao x (Ps x r)/(Pp + (Ps x r)) 

     

    
      	
            	where:	
            	
            	
            
	
            	 	
            	 	
            
	 	As	=	
            	the nominal amount of the Spin-Off Note issued in exchange for any
      Note;
	
            	  	
            	
            	
            
	         	Ao	=	     	the nominal amount of the Note for which
      the Spin-Off Note is exchanged;
	
            	 	
            	
            	
            
	
            	
              and the other
      symbols in such formula have the meanings specified under “Put/Call Rate
      Adjustment” above in this Section
4.01(e)(i).

            

    

    - 16 - 

     

    

    
    

              The nominal amount of each New Note shall be
determined in accordance with the following formula: 

     

    An =  x Ao x Pp / (Pp + (r x Ps)) 

     

    
      	
            	where:	 	
            	
            
	
            	 	
            	
            	
            
	         	An	=	     	the nominal amount of the New Note
      issued in exchange for any Note;
	 	
            	
            	
            	
            
	
            	
              and the other
      symbols in such formula have the meanings specified under “Put/Call Rate
      Adjustment” above and the preceding paragraph, in each case in this
      Section 4.01(e)(i).

               

                   Call Target Price
      Adjustment. The Call
      Target Price for the Spin-Off Notes shall be determined in accordance with
      the following formula:

            

    

     

    Ts =  To x Ps / (Pp + (r x Ps)) 

     

    
      	
            	Where:	
            	
            	
            
	 	
            	
            	
            	
            
	
            	Ts	=	
            	the adjusted Call Target Price for the
      Spin-Off Notes.
	 	
            	
            	
            	
            
	         	To	=	     	the Call Target Price immediately prior
      to such adjustment.
	 	
            	
            	
            	
            
	
            	
              and the other
      symbols in such formula have the meanings specified under “Put/Call Rate
      Adjustment” above and the preceding paragraph, in each case in this
      Section 4.01(e)(i). 

               

                   The Call Target Price for the New Notes
      shall be determined in accordance with the following formula:
    

            

    

    Tn =  To x Pp / (Pp + (r x Ps)) 

     

    
      	
            	Where:	 	
            	
            
	
            	 	
            	
            	
            
	         	To	=	     	the adjusted Call Target Price for the
      New Notes.
	 	
            	
            	
            	
            
	
            	
              and the other
      symbols in such formula have the meanings specified under “Put/Call Rate
      Adjustment” above and the preceding paragraph, in each case in this
      Section 4.01(e)(i). 

               

                   Interest Rate Hurdle
      Adjustment. The
      Interest Rate Hurdle applicable on the Spin-Off Notes shall be determined
      in accordance with the following formula:

            

    

    Is = Io x Ps / (Pp + (r x Ps)) 

     

    
      	
            	Where:	
            	
            	
            
	
            	
            	 	
            	
            
	         	Is	=	     	the adjusted Interest Rate
    Hurdle;
	 	 	
            	 	
            
	
            	Io	=	
            	the Interest Rate Hurdle immediately
      prior to such adjustment.
	 	
            	
            	
            	
            
	
            	
              and the other
      symbols in such formula have the meanings specified under “Put/Call Rate
      Adjustment” above and the preceding paragraph, in each case in this
      Section 4.01(e)(i). 

            

    

    - 17 - 

     

    

    
    

    
      	
            	
              The Interest
      Rate Hurdle applicable on the New Notes shall be determined in accordance
      with the following formula: 

            
	 	
            	
            	
            	
            
	
              Is = Io x Pp / (Pp + (r x Ps))

            
	 	
            	
            	
            	
            
	
            	Where:	
            	
            	
            
	
            	 	
            	 	
            
	 	In	=	
            	the adjusted Interest Rate
    Hurdle
	
            	 	
            	
            	
            
	         	Io	=	     	the Interest Rate Hurdle immediately
      prior to such adjustment.
	
            	 	
            	
            	
            
	
            	
              and the other
      symbols in such formula have the meanings specified under “Put/Call Rate
      Adjustment” above and the preceding paragraph, in each case in this
      Section 4.01(e)(i). 

            

    

    
      	         	(ii)	      	
              In case the Company shall
      engage in a Spin-Off, and Section 4.01(e)(i) shall not be available to the
      Holders as a result of the proviso in the first paragraph of Section
      4.01(e)(i), then the Holders shall not receive New Notes and Spin-Off
      Notes and immediately prior thereto the following shall be adjusted in
      accordance with the following formulae:

            
	
            	 	
            	
            
	
            	
                   Put/Call Rate
      Adjustment. The
      Put/Call Rate of the Notes shall be determined in accordance with the
      following formula: 

            

    

     

    Rx = Ro x Pp / (Pp + (r x Ps)) 

     

    
      	
            	where:	
            	
            	
            
	 	
            	
            	
            	
            
	
            	Rx	=	
            	
              the adjusted
      Put/Call Rate. 

            
	 	
            	
            	
            	
            
	 	Ro	=	 	
              the Put/Call
      Rate immediately prior to adjustment pursuant to this Section 4.01(e)(ii).
      

            
	 	
            	 	
            	
            
	
            	Pp	=	
            	
              the average of
      the Daily Market Prices of the Common Stock for the ten (10) consecutive
      trading days following the date on which the Spin-Off is consummated.
      

            
	 	
            	
            	
            
	         	Ps	=	     	
              the fair market
      value per share of the Spin-Off Shares. As used in this section, “fair
      market value” shall mean the average Daily Market Price of the Spin-Off
      shares for the first ten (10) consecutive trading days following the date
      on which the Spin-Off is consummated; provided, however, that if such
      distributed securities do not begin trading within two trading days of the
      consummation of such Spin-Off or if the Spin-Off Shares do not trade for
      at least ten (10) consecutive trading days within twenty (20) days after
      the Spin-Off, then the “fair market value” of such distributed securities
      shall be determined by an investment banking firm of national reputation
      and standing selected by the Company and acceptable to a Majority of the
      Holders on the record date of the Spin-Off. 

            
	 	
            	
            	
            	
            
	
            	r	=	
            	the number of Spin-Off
      Shares (which may be one or a fraction less than or greater than one)
      distributed pursuant to the Spin-Off in respect of each share of Common
      Stock.

    

    - 18 - 

     

    

    
    

        Call Target Price Adjustment. The Call Target Price for the Notes shall be
determined in accordance with the following formula: 

     

    Tx = To x Pp / (Pp + (r x Ps)) 

     

    
      	
            	Where:	
            	
            	
            
	 	
            	
            	 	
            
	
            	Tx	=	
            	the adjusted Call Target Price for the Notes.
	 	
            	
            	
            	
            
	          	To	=	     	the Call Target Price for the Notes immediately prior to such
      adjustment.
	 	
            	
            	
            	
            
	
            	
              and the other
      symbols in such formula have the meanings specified immediately above
      under “Put/Call Rate Adjustment”. 

               

                   Interest Rate Hurdle
      Adjustment. The
      Interest Rate Hurdle applicable on the Notes shall be determined in
      accordance with the following formula:

            

    

     

    lx = lo x Pp / (Pp + (r x Ps)) 

     

    
      	
            	Where:	
            	
            	
            
	
            	
            	
            	
            	
            
	 	Ix	=	 	the adjusted Interest Rate Hurdle.
	 	
            	 	
            	
            
	          	Io	=	     	the Interest Rate Hurdle immediately prior to such
    adjustment
	 	
            	
            	
            	
            
	
            	
              and the other
      symbols in such formula have the meanings specified immediately above
      under “Put/Call Rate Adjustment”. 

               

              An adjustment
      made pursuant to this Section 4.01(e)(ii) shall become effective
      immediately after the determination of the adjustments referred to in this
      Section 4.01(e), retroactive to the date for the Spin-Off.
  

            

    

    
      	 	
            	(iii)	      	The
      Company shall give written notice of any Spin-Off, in accordance with
      Section 6.01 hereof, at least ten (10) Business Days prior to the record
      date therefor. The Company’s failure to give notice required by this
      Section 4.01(e)(iii) or any defect therein shall not affect the validity
      of the Spin-Off covered by this Section 4.01(e). Notwithstanding the
      foregoing, nothing in this paragraph will prejudice the rights of the
      Holders pursuant to this Agreement.
	 
	 	
            	 	
            	SECTION 4.02. General Adjustment
      Provisions.
	 
	(a)	      	Notice of
      Adjustment. Whenever the Put/Call Rate is adjusted, or the type of
      securities for which the Notes are exchangeable pursuant to the Put and
      the Call is changed, the Company shall promptly file, in the custody of
      its Secretary or an Assistant Secretary at its principal office and with
      the Put/Call Agent, an officer’s certificate setting forth the adjusted
      Put/Call Rate, Call Target Price and Interest Rate Hurdle, and, if
      applicable, Nominal Amount and the kind or nature of any other securities
      or assets for which the Notes shall become exchangeable, a statement, in
      reasonable detail, of the facts requiring such adjustment and the
      computation by which such adjustment was made. Each such officer’s
      certificate shall be made available at all reasonable times for inspection
      by the Holders at the office of the Put/Call
Agent.

    

     

    - 19 - 

     

    

    
    

    
      	(b)	
            	Good Faith
    Determination.
	 
	 	
            	(i)	
            	Subject to the following clause (ii), any determination as to
      whether an adjustment or limitation of exercise is required pursuant to
      this Section 4.01 (and the amount of any adjustment), shall be binding
      upon the Holders and the Company if made in good faith by the board of
      directors of the Company.
	 
	 	
            	(ii)	
            	If a
      Majority of the Holders shall object to any determination of the board of
      directors of the Company within ten (10) Business Days of receipt of
      notice of such determination, then such determination shall be referred to
      a national independent accounting firm in the United States (the “Accounting
      Firm”) selected by the Company and reasonably acceptable to a
      Majority of the Holders. The determination of the adjustment made by the
      Accounting Firm shall be strictly in accordance with the terms of this
      Agreement and shall be binding upon the Holders and the Company. The
      Accounting Firm shall be instructed to notify the Company and the Holders
      of its determination regarding the adjustment within fifteen (15) Business
      Days of such referral.
	 
	 	
            	(iii)	      	Whenever this Agreement provides for the reasonable approval of a
      Majority of the Holders of any action or determination, such approval
      shall be deemed to be given if a Majority of the Holders do not reasonably
      object to such action or determination by written notice to the Company
      within ten (10) Business Days of the date on which notice thereof is first
      given to the Holders. No objection shall be deemed reasonable if the
      reasons for such objection are not set forth in reasonable detail in the
      notice of objection given to the Company as aforesaid.
	 
	(c)	      	Subsequent
      Adjustments. The adjustment provisions of this Article IV shall be
      applied successively and from time to time as the circumstances requiring
      such adjustments shall occur. If as a result of an adjustment made
      pursuant to this Article IV (except as otherwise specifically provided
      herein) the Holder of any Notes thereafter surrendered for conversion
      shall be entitled to receive any securities other than shares of Common
      Stock into which the Notes were originally convertible, the Put/Call Rate,
      the Call Target Price and the Interest Rate Hurdle shall be subject to
      adjustment, from time to time, in a manner and on terms as nearly
      equivalent as practicable to the provisions with respect to the Common
      Stock contained in this Article IV.

    

     

    - 20 - 

     

    

    
    

    ARTICLE V 
THE
PUT/CALL AGENT 

     

         SECTION 5.01. Appointment. The
Company hereby appoints the Put/Call Agent as its agent to act as set forth
herein, subject to resignation or replacement of the Put/Call Agent as provided
herein. The Put/Call Agent agrees to accept such appointment, subject to the
terms and conditions as set forth herein. 

     

         SECTION 5.02. Duties of the Put/Call
Agent. The Put/Call Agent acts hereunder as agent and in a ministerial
capacity for the Company, and its duties shall be determined solely by the
provisions hereof. The Put/Call Agent shall not by any act hereunder be deemed
to make any representations as to the validity, value or authorization of any
securities or other property delivered upon exercise of the Put or the Call.

     

         Without prejudice to any liability of any
other party hereof, the Put/Call Agent shall not (i) be liable for any recital
or statement of facts contained herein or for any action taken, suffered or
omitted by it in reliance on any document or instrument believed by it in good
faith to be genuine and to have been signed or presented by the proper party or
parties, (ii) be responsible for any failure on the part of the Company to
comply with any of its covenants and obligations contained in this Agreement or
in any Note or (iii) be liable for any act or omission in connection with this
Agreement except for its own gross negligence or willful misconduct.

     

         Any notice, statement, instruction, request,
direction, order or demand of the Company shall be sufficiently evidenced by an
instrument signed by the Company’s Chairman or Vice Chairman of the Board,
President, any Vice President, its Secretary, or Assistant Secretary (unless
other evidence in respect thereof is herein specifically prescribed). Without
prejudice to any liability of any other party hereof, the Put/Call Agent shall
not be liable for any action taken, suffered or omitted by it in accordance with
such notice, statement, instruction, request, direction, order or demand
believed by it to be genuine. 

     

         The Company agrees to pay the Put/Call Agent
reasonable compensation for its services hereunder and to reimburse it for its
reasonable expenses hereunder and further agrees to indemnify the Put/Call Agent
and save it harmless against any and all losses, expenses and liabilities,
including judgments, costs and counsel fees, for anything done or omitted by the
Put/Call Agent in the execution of its duties and powers hereunder, except
losses, expenses and liabilities arising as a result of the Put/Call Agent’s
gross negligence or willful misconduct. 

     

         The Put/Call Agent may resign its duties and
be discharged from all further duties and liabilities hereunder (except
liabilities arising as a result of the Put/Call Agent’s own gross negligence or
willful misconduct), after giving thirty (30) days’ prior written notice to the
Company. At least fifteen (15) days prior to the date such resignation is to
become effective, the Put/Call Agent shall cause a copy of such notice of
resignation to be mailed to the Holder of each Note at the Company’s expense.
Upon such resignation, or any inability of the Put/Call Agent to act as such
hereunder, the Company shall appoint a new Put/Call Agent in writing. The
Company shall have complete discretion in the naming of a new Put/Call Agent,
who may be an affiliate, subsidiary or department of the Company, or any person
used by the Company as transfer agent for the Common Stock. If the Company shall
fail to make such appointment within a period of thirty (30) days after it has
been notified in writing of such resignation by the resigning Put/Call Agent,
then the Holder of any Note may apply to any court of competent jurisdiction for
the appointment of a new Put/Call Agent. 

     

    - 21 - 

     

    

    
    

         The Company may, upon notice to the Holders,
remove and replace the Put/Call Agent if the Put/Call Agent is the transfer
agent for the Company’s Common Stock and the Put/Call Agent ceases to be the
transfer agent for the Company’s Common Stock for any reason. If for any period
no person is acting as Put/Call Agent, then the Company shall discharge the
obligations that would otherwise fail to be discharged by the Put/Call Agent
during such period. 

     

         After acceptance in writing of an appointment
by a new Put/Call Agent is received by the Company, such new Put/Call Agent
shall be vested with the same powers, rights, duties and responsibilities as if
it had been originally named herein as the Put/Call Agent, without any further
assurance, conveyance, act or deed. Any former Put/Call Agent hereby agrees to
cooperate with and deliver all records to the new Put/Call Agent at the
direction of the new agent and the Company. 

     

         Any corporation into which the Put/Call Agent
or any new Put/Call Agent may be converted or merged or any corporation
resulting from any consolidation to which the Put/Call Agent or any new Put/Call
Agent shall be a party or any corporation succeeding to the trust business of
the Put/Call Agent shall be a successor Put/Call Agent under this Agreement
without any further act. Any such successor Put/Call Agent shall promptly cause
notice of its succession as Put/Call Agent to be mailed to the Company and to
each Holder. 

     

         Nothing herein shall preclude the Put/Call
Agent from acting in any other capacity for the Company. 

     

    ARTICLE
VI
MISCELLANEOUS PROVISIONS

     

         SECTION 6.01. Notices. Any notice
or demand authorized by this Agreement to be given or made to or on the Company
or the Put/Call Agent shall be sufficiently given or made when and if delivered
by a recognized international courier service or hand delivery, or by telecopier
with copy sent by first class or registered mail, postage prepaid, to the
applicable address set forth below (until the Holders are otherwise notified in
accordance with this Section by the Company): 

     

         If to the Company, then to:

     

         Vishay Precision Group,
Inc. 
     3 Great Valley
Parkway 
     Malvern, PA
19355-1307 
     Attn.:
Chief Financial Officer 
     Telecopier No.:
(484)-321-5301 
     Confirm No.: (484)-321-5300

     

         If to the Put/Call Agent, then to:

     

         American Stock Transfer & Trust
Co. 
     59 Maiden
Lane 
     New York, NY
10038 
     Attn.: Exchange
Department 
     Telecopier No: 718-234-5001
     Confirm No: 718-921-8200

     

    - 22 - 

     

    

    
    

         Any notice pursuant to this Agreement to be
given to any Holder of Notes shall be sufficiently given when and if delivered
to such Holder at the address appearing on the register maintained for that
purpose by the Company (until the Company and the Put/Call Agent are otherwise
notified in accordance with this Section by such Holder). Any such notice shall
be delivered, by overnight or hand delivery, by telecopier with copy sent by
first class mail, postage prepaid, or by first class or registered mail, postage
prepaid. 

     

         SECTION 6.02. Supplements and
Amendments. The Company and the Put/Call Agent may from time to time
amend or supplement this Agreement in good faith without the approval of any
Holders only in order to cure any ambiguity or to correct or supplement any
provision contained herein which may be defective or inconsistent with any other
provision herein. Any other amendment or supplement to this Agreement shall
require the written consent of the Holders of two-thirds (2/3) in nominal amount
of the Notes then outstanding. 

     

         SECTION 6.03. Assignments/Successors.
All the covenants and provisions of this Agreement by or for the benefit of the
Company or the Put/Call Agent shall bind and inure to the benefit of its
successors and assigns hereunder; provided, however, that any assignment by the
Company shall not relieve the Company of any of its obligations hereunder;
provided, further, that no Holder may assign its rights and obligations except
to an assignee who has executed and delivered to the Company an Assignment Form,
which Assignment Form, when executed by the transferor and transferee
thereunder, shall inure to the benefit of and be binding upon, the Company, the
Put/Call Agent and each of the other Holders. This Agreement shall be binding
upon and inure to the benefit of the successors and registered assigns of the
Initial Holders and all subsequent Holders of Notes. 

     

         SECTION 6.04. Governing Law. THIS
AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF
NEW YORK AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS OF SAID STATE. 

     

         SECTION 6.05. No Third Party
Beneficiaries. Nothing in this Agreement shall be construed to give to
any person other than the Company, the Put/Call Agent and the Holders of the
Notes any legal or equitable right, remedy or claim under this Agreement; but
this Agreement shall be for the sole and exclusive benefit of the Company, the
Put/Call Agent and the Holders of the Notes. 

     

         SECTION 6.06. Registered Holders.
The Company and the Put/Call Agent shall be entitled to treat as the Holders of
the Notes solely those persons in whose names the Notes are registered in the
register maintained for that purpose by the Company. 

     

         SECTION 6.07. Securities Laws. It
is the intention of the parties that the issuance of the shares of Common Stock
upon exercise of the Put or the Call shall be exempt from registration under the
United States securities laws pursuant to Section 3(a)(9) of the Securities Act
or any successor statute. If and to the extent that this exemption is not
available, the parties will take such action as may be required to permit the
delivery of the shares of Common Stock in exchange for the Notes in compliance
with the United States securities laws and the rules and regulations of the SEC
then in effect. 

     

    - 23 - 

     

    

    
    

         SECTION 6.08. Notification of
Delisting. Prior to the occurrence of a Delisting Event, the Company
will, at least ten (10) Business Days before the occurrence thereof, notify each
holder of such event. Any notice will be in writing and shall specify the date
of such Delisting Event. For these purposes “Delisting Event”
means the common stock of the Company being delisted from the principal United
States national or regional securities exchange or national quotation system on
which the shares of common stock are then listed or traded. 

     

         SECTION 6.09. Headings. The
descriptive headings of the several sections and subsections of this. Agreement
are inserted for convenience only, do not constitute a part of this Agreement
and shall not affect in any way the meanings or interpretation of this
Agreement. 

     

         SECTION 6.10. Counterparts. This
Agreement may be executed in counterparts and all such counterparts shall for
all purposes be deemed to be an original, and all such counterparts shall
together constitute but one and the same instrument. 

     

     

     

    [Remainder of this
page left blank.] 

     

    - 24 - 

     

    

    
    

         IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed, as of the day and year first above
written. 

     

    
      	VISHAY PRECISION GROUP, INC
	 	
            
	 	
            
	By:	 
	
            	Name:
	
            	Title:
	 	
            
	 	
            
	AMERICAN STOCK TRANSFER
  &
	TRUST COMPANY
	 	
            
	 	
            
	By:  	 
	
            	Name:
	
            	Title:

    

    - 25 -

     

    

    
    

    
      	[Signatures of
      Initial Holders]
	 	
            
	 	
            
	By:	
            
	 
	 
	By:  	
            
	
            	Name:
	
            	Title:

    

     

     

    [Signature page to Put
and Call Agreement dated as of ____, 2010] 

     

    - 26 -

     

    

    
    

    ANNEX I

Form of Assignment 

     

    THIS ASSIGNMENT dated
[_____ 20______] is supplemental to a Put and Call Agreement (the “Agreement”)
dated _________, 2010 (as amended and restated from time to time) between Vishay
Precision Group, Inc., a Delaware corporation (the “Company”), [__________],
[_____] and [________] each an “Initial Holder”) and _________, a ___________the
(“Put/Call Agent”). 

     

    Unless otherwise
defined in this Assignment, words and expressions defined in the Agreement shall
have the same meaning when used in this Assignment. 

     

    Whereas: 

     

    (A) [_______] (the
“Transferor”) is a Holder of [_________] nominal amount of Notes (the
“Transferred Notes”). 

     

    (B) The Transferor
proposes to transfer the Transferred Notes [(being all the Notes held by it)] to
[_______] (the “Transferee”). 

     

    [(C) The Transferor
proposes to retain [__________] nominal amount of Notes (the “Retained Notes”).]

     

    Assignment 

     

    With effect from the
date on which the transfer of the transferred Notes takes effect in accordance
with the terms of the Notes, in respect of the Agreement and the Transferred
Notes only: 

     

    
      	(a)	      	the Transferor
      shall be released from further undertakings, liabilities and obligations
      to the Company and the Put/Call Agent and each of the other Holders (the
      “Non-transferring Parties”), and each of the Non-transferring Parties
      shall be released from further undertakings, liabilities and obligations
      to the Transferor, and their respective rights shall be cancelled (the
      discharged rights and
      obligations);
      and
	 
	(b)	
            	the Transferee
      shall assume such undertakings, liabilities and obligations towards, and
      acquire rights against, each of the Non-transferring Parties and each of
      the Non-transferring Parties shall assume such undertakings, liabilities
      and obligations towards, and acquire rights against, the Transferee that
      differ from such discharged rights and obligations only insofar as each
      such Non-transferring Party and the Transferee have assumed and acquired
      the same in place of each such Non-transferring Party and the
      Transferor.

    

     

    [For the avoidance of
doubt, this Assignment shall not affect the rights, undertakings, liabilities
and obligations of the Transferor in respect of the Retained Notes.]

     

    - 27 - 

     

    

    
    

    The Transferee hereby
notifies the Company that its address for notices for the purposes of Section
6.01 of the Agreement is: 

     

    
      	
            	
            	
            	
              [______]

            
	
            	 	
            	
            
	
            	
               Fax
      No:

            	
            	
              [______]

            
	
            	 	
            	
            
	                                   
      	
              Attention:

            	         
      	
              [______]

            

    

     

              This Assignment is
governed by the [laws of the State of New York]. 

     

    Signed by

     

    
      	  
	Transferor
	 
	 
	Transferee

    

    - 28 - 

     

    

    
    

    ANNEX II 

     

    PUT EXERCISE NOTICE 

     

         If you, the Holder, want to exercise
the Put, fill in the form below. 

     

         I or we, the registered owner of Notes,
irrevocably Put to the Company Notes in the nominal amount of 

     

    $_________________
(if
less than the aggregate nominal amount of all Notes held by the Holder, must be
in $2,000,000 denominations) 

     

    at the Put/Call Rate
and on the terms and conditions specified in that certain Put and Call
Agreement, dated as of _____________, 2010 by and among the parties thereto, and
request that certificates for the shares of Common Stock hereby exchanged for
the indicated nominal amount being put to the Company (and any securities or
other property issuable or transferable upon such exercise) be issued in the
name of and delivered to: 

     

    
      	 
	 
	 
	
              (Print or type
      name, address and zip code and 
social security or tax ID number of
      owner) 

               

            

    

    and, if such nominal
amount listed above shall be less than the full nominal amount of the Note(s) of
which I am the Holder, that a new Note of like tenor and date for the balance of
the nominal amount thereunder be delivered to the undersigned. 

     

    
      	 	Nominal amount of Note held immediately prior to exercise of the
      Put	
            
	
            	Nominal amount of Note for which this Put is being
    exercised	 
	     	Balance in nominal amount to be issued as a new Note	               
    

    

    
      	Date:  	 	         	Signed:  	 
	
            	(Signed exactly as your name appears on
      the Note)

    

    - 29 -exhibit.htm

    Portions of this exhibit were omitted and filed separately with the
Secretary of the 

    Securities and Exchange Commission pursuant to an application for
confidential treatment 

    filed with the Securities and Exchange Commission pursuant to Rule 24b-2
under the 

    Securities Exchange Act of 1934. Such portions are marked by
[***].

     

     

    FORM OF SUPPLY AGREEMENT

     

    by and
between

     

    Vishay
Dale Electronics, Inc., 
a Delaware corporation,

     

    as
Supplier

     

    and

     

    Vishay
Advanced Technology, Ltd., 

    an
Israeli company,

     

    as
Buyer

     

     

    Dated as
of __________, 2010

     

    

    
    

        This SUPPLY AGREEMENT
(this “Agreement”) is made as of __________, 2010 by and
between Vishay Dale Electronics, Inc., a Delaware corporation (“Supplier”), and Vishay Advanced Technology, Ltd., an
Israeli company (“Buyer”). Supplier and Buyer each may be referred to
herein as a “Party” and collectively, as the “Parties”.

     

        WHEREAS, subject to
the terms, conditions, commitments and undertakings herein provided, Supplier is
willing to manufacture and sell those products as set forth on Exhibit A hereto (as the same may be modified from time
to time pursuant to the provisions hereof, the “Products”) to Buyer, and Buyer desires to purchase the
Products from Supplier, in such quantities as Buyer shall request , as provided
in this Agreement;

     

        NOW, THEREFORE, in
consideration of the mutual covenants and agreements herein contained, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties, intending to be legally bound, agree as
follows:

     

    ARTICLE
I 

    DEFINITIONS

     

        For purposes of this
Agreement, the following terms shall have the meanings specified in this Article
I:

     

        “Affiliate” means, as applied to any Person, any other
Person that, directly or indirectly, controls, is controlled by, or is under
common control with that Person as of the date on which or at any time during
the period for when such determination is being made. For purposes of this
definition, “control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities or
other interests, by contract or otherwise, and the terms “controlling” and “controlled” have meanings correlative to the
foregoing.

     

        “Applicable Law” means any applicable law, statute, rule or
regulation of any Governmental
Authority, or any outstanding order, judgment, injunction, ruling or decree by
any Governmental Authority.

     

        “Buyer” has the meaning set forth in the preamble of
this Agreement.

     

        “Confidential Information” means all proprietary, design or operational
information, data or material including, without limitation: (a) specifications,
ideas and concepts for goods and services; (b) manufacturing specifications and
procedures; (c) design drawings and models; (d) materials and material
specifications; (e) quality assurance policies, procedures and specifications;
(f) customer, client, manufacturer and supplier information; (g) computer
software and derivatives thereof relating to design development or manufacture
of goods; (h) training materials and information; (i) inventions, devices, new
developments, methods and processes, whether patentable or unpatentable and
whether or not reduced to practice; (j) all other know-how, methodology,
procedures, techniques and Trade Secrets; (k) proprietary earnings reports and
forecasts; (l) proprietary macro-economic reports and forecasts; (m) proprietary
marketing, advertising and business plans, objectives and strategies; (n)
proprietary general market evaluations and surveys; (o) proprietary financing
and credit-related information; (p) other copyrightable or patented works; (q)
the terms of this Agreement; and (r) all similar and related information in
whatever form; in each case, of one party which has been disclosed by Supplier
or members of its Group on the one hand, or Buyer or members of its Group, on
the other hand, in written, oral (including by recording), electronic, or visual
form to, or otherwise has come into the possession of, the other
Group.

     

    2

     

    

    
    

        “Firm Order” means Buyer’s non-cancelable purchase order
for Products to be purchased by Buyer from Supplier pursuant to this Agreement
for delivery.

     

        “FOB” has the meaning and usage assigned to such
words in the incoterms rules published by the International Chamber of
Commerce.

     

        “Forecast” means, with respect to any relevant period,
a good faith non-binding forecast, based on information available to Buyer at
the time of such forecast (which information, if reduced to writing, shall be
made available to Supplier upon reasonable request), of the Firm Order for each
Product that Buyer expects to deliver to Supplier for each calendar month during
such period.

     

        “Governmental Authority” means any U.S. or non-U.S. federal, state,
local, foreign or international court, arbitration or mediation tribunal,
government, department, commission, board, bureau, agency, official or other
regulatory, administrative or governmental authority.

     

        “Group” means, with respect to any Person, each
Subsidiary of such Person and each other Person that is controlled directly or
indirectly by such Person.

     

        “Intellectual Property” means all domestic and foreign patents and
patent applications, together with any continuations, continuations-in-part or
divisional applications thereof, and all patents issuing thereon (including
reissues, renewals and re-examinations of the foregoing); design patents;
invention disclosures; mask works; all domestic and foreign copyrights, whether
or not registered, together with all copyright applications and registrations
therefor; all domain names, together with any registrations therefor and any
goodwill relating thereto; all domestic and foreign trademarks, service marks,
trade names, and trade dress, in each case together with any applications and
registrations therefor and all goodwill relating thereto; all Trade Secrets,
commercial and technical information, know-how, proprietary or Confidential
Information, including engineering, production and other designs, notebooks,
processes, drawings, specifications, formulae, and technology; computer and
electronic data processing programs and software (object and source code), data
bases and documentation thereof; all inventions (whether or not patented); all
utility models; all registered designs, certificates of invention and all other
intellectual property under the laws of any country throughout the
world.

     

        “Last-Time Buy Order” has the meaning set forth in Section 4.5.

     

        “Liability” means, with respect to any Person, any and
all losses, claims, charges, debts, demands, Actions, causes of action, suits,
damages, obligations, payments, costs and expenses, sums of money, accounts,
reckonings, bonds, specialties, indemnities and similar obligations, exoneration
covenants, obligations under contracts, guarantees, make whole agreements and
similar obligations, and other liabilities and requirements, including all
contractual obligations, whether absolute or contingent, matured or unmatured,
liquidated or unliquidated, accrued or unaccrued, known or unknown, joint or
several, whenever arising, and including those arising under any Applicable Law,
action, threatened or contemplated action (including the costs and expenses of
demands, assessments, judgments, settlements and compromises relating thereto
and attorneys’ fees and any and all costs and expenses, whatsoever reasonably
incurred in investigating, preparing or defending against any such actions or
threatened or contemplated actions) or order of any Governmental Authority or
any award of any arbitrator or mediator of any kind, and those arising under any
contract, in each case, whether or not recorded or reflected or otherwise
disclosed or required to be recorded or reflected or otherwise disclosed, on the
books and records or financial statements of any Person, including any Liability
for taxes.

     

    

    
    

        “Person” (whether or not initially capitalized) means
any corporation, limited liability company, partnership, firm, joint venture,
entity, natural person, trust, estate, unincorporated organization, association,
enterprise, government or political subdivision thereof, or Governmental
Authority.

     

        “Product” has the meaning set forth in the preamble of
this Agreement.

     

        “Product Warranty” has the meaning set forth in Section 6.1(a).

     

        “Raw Materials Cost” means the direct cost of material used in a
finished Product, including the normal quantity of material wasted in the
production process, purchasing costs, inbound freight charges and any applicable
subcontractor charges.

     

        “Six-Month Forecast” means a forward-looking Forecast for a
period of six consecutive calendar months, beginning on July 1 and January 1 of
each calendar year, or, if earlier with respect to any Product, the last day of
the Term for such Product.

     

       “Subsidiary” of any Person means a
corporation or other organization whether incorporated or unincorporated of
which at least a majority of the securities or interests having by the terms
thereof ordinary voting power to elect at least a majority of the board of
directors or others performing similar functions with respect to such
corporation or other organization is directly or indirectly owned or controlled
by such Person or by any one or more of its Subsidiaries, or by such Person and
one or more of its Subsidiaries; provided, however, that no Person that is not
directly or indirectly wholly-owned by any other Person shall be a Subsidiary of
such other Person unless such other Person controls, or has the right, power or
ability to control, that Person.

     

        “Supplier” has the meaning set forth in the preamble of
this Agreement.

     

        “Supplier’s Other Manufacturing
Obligations” means the
manufacturing obligations and commitments of Supplier to Persons other than
Buyer, including Supplier’s Affiliates.

     

        “Specifications” means, with respect to any Product, the
design, composition, dimensions, other physical characteristics, chemical
characteristics, packaging, unit count and trade dress of such
Product.

     

        “Term” has the meaning set forth in Section 7.1.

     

    

    
    

        “Trade Secrets” means information, including a formula,
program, device, method, technique, process or other Confidential Information
that derives independent economic value, actual or potential, from not being
generally known to the public or to other Persons who can obtain economic value
from its disclosure or use and is the subject of efforts that are reasonable,
under the circumstances, to maintain its secrecy.

     

        “Wholly-Owned Subsidiary” of a Person means a Subsidiary of that
Person substantially all of whose voting securities and outstanding equity
interest are owned either directly or indirectly by such Person or one or more
of its Subsidiaries or by such Person and one or more of its
Subsidiaries.

     

        The terms
“herein”, “hereof”, “hereunder” and like terms, unless otherwise specified,
shall be deemed to refer to this Agreement in its entirety and shall not be
limited to any particular section or provision hereof. The term “including” as used herein shall be deemed to mean
“including, but not limited to.” The term “days” shall refer to calendar days unless
specified otherwise. References herein to “Articles”, “Sections” and “Exhibits” shall be deemed to mean Articles, Sections
of and Exhibits to this Agreement unless otherwise specified.

     

    ARTICLE
II

    PURCHASE AND SALE OF
PRODUCTS

     

        SECTION 2.1
Agreement to Purchase and Sell
Products. (a) During the
Term, Supplier hereby agrees to manufacture and sell to Buyer, and Buyer hereby
agrees to purchase and accept from Supplier, such amounts of Products, as from
time to time shall be ordered by Buyer.

     

       (b) All Products to be sold to Buyer pursuant to this Agreement shall be
manufactured by Supplier or an Affiliate of Supplier; provided, however, that Supplier may
subcontract the manufacture of any Product to a manufacturer that is not an
Affiliate of Supplier with Buyer’s prior written consent, which consent shall
not be unreasonably withheld, provided that any such subcontracting
shall not relieve Supplier of its obligations hereunder.

     

        SECTION 2.2
Product Specifications. (a) Supplier shall manufacture all Products
according to the Specifications in effect as of the date of this Agreement, with
such changes or additions to the Specifications of the Products related thereto
as shall be requested by Buyer in accordance with this Section or as otherwise
agreed in writing by the Parties. All other Products shall be manufactured with
such Specifications as the Parties shall agree in writing.

     

        (b) Buyer may request changed or additional
Specifications for any Product by delivering written notice thereof to Supplier
not less than one hundred twenty (120) days in advance of the first Firm Order
for such Product to be supplied with such changed or additional Specifications.
Notwithstanding the foregoing, if additional advance time would reasonably be
required in order to implement the manufacturing processes for production of a
Product with any changed or additional Specifications, and to commence
manufacture and delivery thereof, Supplier shall so notify Buyer, and Supplier
shall not be required to commence delivery of such Product until the passage of
such additional time.

     

        (c) Supplier shall be required to accommodate any
change of, or additions to, the Specifications for any Product, if and only if (i) in Supplier’s good faith judgment, such
changed or additional Specifications would not require Supplier to violate good
manufacturing practice, (ii) the representation and warranty of Buyer deemed
made pursuant to Subsection (e) below is true and correct, and (iii) Buyer
agrees to reimburse Supplier for the incremental costs and expenses incurred by
Supplier in accommodating the changed or additional Specifications, including
the costs of acquiring any new machinery and tooling. For the avoidance of
doubt, such costs and expenses shall be payable by Buyer separately from the
cost of Products at such time or times as Supplier shall request.

     

    

    
    

        (d) Supplier shall notify Buyer in writing within
thirty (30) days of its receipt of any request for changed or additional
Specifications (i) whether Supplier will honor such changed or additional
Specifications, (ii) if Supplier declines to honor such changed or additional
Specifications, the basis therefor and (iii) if applicable, the estimated costs
and expenses that Buyer will be required to reimburse Supplier in respect of the
requested changes or additions, as provided in Subsection (c) above. Buyer shall
notify Supplier in writing within fifteen (15) days after receiving notice of
any required reimbursement whether Buyer agrees to assume such reimbursement
obligation.

     

        (e) By its request for any changed or additional
Specifications for any Product, Buyer shall be deemed to represent and warrant
to Supplier that the manufacture and sale of the Product incorporating Buyer’s
changed or additional Specifications, as a result of such incorporation, will
not and could not reasonably be expected to (i) violate or conflict with any
contract, agreement, arrangement or understanding to which Buyer and/or any of
its Affiliates is a party, including this Agreement and any other contract,
agreement, arrangement or understanding with Supplier and/or its Affiliates,
(ii) infringe on any trademark, service mark, copyright, patent, trade secret or
other intellectual property rights of any Person, or (iii) violate any
Applicable Law. Buyer shall indemnify and hold Supplier and its Affiliates
harmless (including with respect to reasonable attorneys’ fees and
disbursements) from any breach of this representation and warranty.

     

        SECTION 2.3
New Products. If Buyer shall request in writing that
Supplier manufacture and sell to Buyer an item that is not at the time a
Product, Supplier shall consider such request in good faith, giving due
consideration to Supplier’s available manufacturing capacity, Supplier’s Other
Manufacturing Obligations, existing know-how, technical feasibility, cost,
profitability and other relevant factors. Supplier shall inform Buyer within a
reasonable time of Supplier’s determination in principle whether to manufacture
such Product, and if Supplier has determined not to manufacture such Product,
the reasons therefor. If Supplier shall inform Buyer that it is willing in
principle to manufacture and sell such Product, Buyer and Supplier shall
negotiate in good faith with respect to the terms of such manufacture and sale,
including pricing and the Exhibits to this Agreement shall be modified
accordingly; provided, however, that neither Party shall be bound with
respect to the manufacture and sale of any such Product unless the Parties shall
have so agreed in writing.

     

       SECTION 2.4 Supplier’s Supply
Obligations. Supplier shall be obligated to manufacture and sell Products to Buyer,
in accordance with Buyer’s Firm Orders, to the extent of Supplier’s then
existing manufacturing capacity, taking into account Supplier’s Other
Manufacturing Obligations; provided, however, the Supplier shall give
equal priority to the orders of Buyer, on the one hand, and Supplier’s Other
Manufacturing Obligations, on the other.

     

    

    
    

       SECTION 2.5 Product
Changes.
Supplier shall communicate any change in the Specifications for any Product or
its manufacture in accordance with Supplier’s product change notification
process. Buyer shall be deemed to have accepted such change unless, within
thirty (30) days after receipt of notice from Supplier, Buyer informs Supplier
that such change is not acceptable. If Buyer informs Supplier that such change
is not acceptable, Supplier may by notice to Buyer either (x) continue to supply
the Product in accordance with the original Specifications and manufacturing
procedures or (y) terminate this Agreement with respect to such Product on a
date specified by Supplier in a notice of termination, which date shall not be
earlier than the earlier of (I) one (1) year from the date of Buyer’s
information that it does not accept the change proposed by Supplier and (II) if
such notice of termination is delivered more than ninety (90) days before the
end of the then current Term, the end of such Term; subject to the right of the
Buyer to submit a Last-Time Buy Order in accordance with Section
4.5.

     

       SECTION 2.6 Product
Discontinuation. At any time Supplier may notify Buyer that Supplier is discontinuing
the manufacture and sale of a Product. Such discontinuation shall take effect on
a date specified by Supplier in a notice of discontinuation, which date shall
not be earlier than one (1) year from the date of the notice of discontinuation;
subject to the right of the Buyer to submit a Last-Time Buy Order in accordance
with Section
4.5.

     

        SECTION 2.7
Consultation and Support. At either Party’s reasonable request, the
Parties shall meet and discuss the nature, quality and level of supply services
contemplated by this Agreement. In addition, Supplier will make available on a
commercially reasonable basis and at commercially reasonable times qualified
personnel to provide knowledgeable support service with respect to the Products.
The Parties shall negotiate in good faith with respect to any fees and other
charges incurred by Supplier in providing other than routine product
support.

     

    ARTICLE
III 

    FORECASTS

     

        SECTION 3.1
Forecasts. (a) As soon as possible, but in no event
later than thirty (30) days following the distribution of shares of common stock
of Vishay Precision Group, Inc. (“VPG”) to the shareholders of Vishay
Intertechnology, Inc. (“Vishay Intertechnology”) under that certain Master
Separation and Distribution Agreement between Vishay Intertechnology and VPG
(the “Master Separation Agreement”), Buyer shall provide to Supplier an initial
Forecast for the period ending on December 31, 2010. Beginning on December 1,
2010, and thereafter, on May 31 and December 1 of each calendar year, Buyer
shall provide to Supplier a Six-Month Forecast for the 6-month period beginning
on the immediately following July 1 and January 1, respectively.

     

        (b) If it is commercially impracticable for Buyer
to deliver a Six-Month Forecast for a particular Product, Buyer shall deliver
Forecasts to Supplier at such intervals and for such periods as reasonable under
the circumstances, and Supplier shall in good faith consider such Forecasts
delivered by Buyer.

     

        (c) Supplier shall use all Forecasts delivered by
Buyer under this Agreement for capacity and raw material planning purposes only,
and such Forecasts will not constitute a commitment of any type by Buyer to
purchase any Product.

     

    

    
    

        SECTION 3.2
Forecasts in Excess of
Capacity. Upon receipt of
each Forecast, Supplier shall determine whether it will have the capacity to
manufacture and sell to Buyer the Products in the forecasted amounts. If
Supplier determines that it will not have the capacity to manufacture and
deliver any Product to Buyer as forecasted, Supplier shall so notify Buyer as
promptly as practicable. Supplier and Buyer shall thereafter negotiate in good
faith in order to match Supplier’s manufacturing capacity with Buyer’s
requirements for the specified Product, such as by advancing or deferring the
delivery of the Product to other periods. In the event that Supplier and Buyer
shall agree to accommodate Buyer’s forecasted requirements in a manner that will
require the expenditure by Supplier of unbudgeted costs and expenses in addition
to the costs and expenses that Supplier would otherwise be required to expend in
order to fulfill its obligations under this Agreement, Buyer shall be obligated
to reimburse Supplier for such costs and expenses as have actually been expended
by Supplier, notwithstanding that the manufacture and sale of Products in
accordance with the Firm Orders subsequently delivered by Buyer for the relevant
periods do not require such expenditure.

     

       SECTION 3.3 Firm Orders in Excess of
Forecasts. In the event that the Firm Order for any Product shall exceed the
Forecast contained in the most recent prior Forecast for such Product (as such
Forecast may have been modified by agreement of the Parties in the manner
contemplated in Section
3.2; such
excess being referred to as the “Excess
Order”),
Supplier shall notify Buyer, as promptly as reasonably practicable after receipt
of such Firm Order, whether Supplier has sufficient available capacity to
accommodate the Excess Order, taking into consideration Supplier’s manufacturing
capacity for such Product and Supplier’s Other Manufacturing Obligations. If
Supplier shall not have sufficient available capacity to accommodate the Excess
Order, Supplier and Buyer shall negotiate in good faith in order to match
Supplier’s available manufacturing capacity with Buyer’s requirements for the
specified Product, such as by advancing or deferring the delivery of the Product
to other periods.

     

    ARTICLE
IV 

    ORDERS AND PAYMENT

     

        SECTION 4.1
Purchase Orders. (a) Buyer may place a Firm Order for the
Products with Supplier at any time and from time to time.

     

        (b) Each Firm Order shall specify (i) number of
units of the Product to be purchased and (ii) the requested delivery date,
provided that Buyer shall request a delivery date with a lead delivery time that
is customary for the particular Product, unless otherwise agreed upon by the
Parties. Supplier agrees to provide Buyer prompt notice if it knows it cannot
meet a requested delivery date.

     

        (c) If Buyer requires a Product on an emergency
basis and so informs Supplier, and Supplier has the Product available in its
uncommitted inventory, Supplier agrees to use reasonable commercial efforts to
fill the emergency order as promptly as practicable. Buyer agrees to pay
reasonable incremental expenses related to any emergency order.

     

        SECTION 4.2
Shipment.

     

        (a) Products will be shipped by Supplier to Buyer
FOB shipping point.

     

    

    
    

        (b) Supplier shall package all Products so as to
protect them from loss or damage during shipment, in conformity with good
commercial practice, the Specifications and Applicable Law. Buyer shall be
responsible, at its own cost and expense, for the shipment (including, among
other fees, costs and expenses, transit and casualty insurance and third party
fees) of all processed materials by Buyer. Supplier shall cooperate with Buyer
in assembling and coordinating shipments, as reasonably requested by
Buyer.

     

        (c) For the avoidance of doubt, title to and risk
of loss or damage will pass to Buyer upon Buyer’s pick up for transfer of the
Products ordered.

     

        SECTION 4.3
Prices. Pricing for the Products shall be as set
forth on Exhibit A, as such Exhibit may be modified from time to
time by agreement of the Parties. At least thirty (30) days prior to the
beginning of each calendar year, the parties shall negotiate in good faith
changes to the pricing of the Products to be applicable in the ensuing year.
Such pricing shall take into account changes in the cost of manufacturing the
Products, including labor, manufacturing, utility and other direct costs, and
other ascertainable market inputs. If the Parties cannot in good faith agree on
pricing for the Products, until such time as the Parties do so agree, Supplier
shall have no obligation to honor any Firm Orders submitted by Buyer to the
extent that such Firm Orders are placed following expiration of the then current
calendar year.

     

        SECTION 4.4
Payment Terms. Unless otherwise agreed to by the Parties in
writing, Buyer shall make payment separately for each Firm Order. Buyer shall
pay the net amount of all invoice amounts within sixty (60) days of the date of
Supplier’s invoice unless the terms of Supplier’s invoice permits later payment
or allows for prepayment with a discount. Invoices shall not be sent earlier
than the date on which the Products related thereto are delivered to
Buyer.

     

        SECTION 4.5
Last-Time Buy Order.

     

       (a) Buyer shall have a right to place a written last-time Firm Order for a
Product (a “Last-Time Buy
Order”)
if (i) Supplier delivers to Buyer notice of its intention not to renew the Term
pursuant to Section
7.2; (ii)
Supplier terminates this Agreement in respect of such Product in connection with
Buyer’s choice not to accept a change in such Product under Section
2.5;
(iii) Supplier delivers to Buyer a notice of discontinuation of such Product; or
(iv) Buyer terminates this Agreement in connection with a material breach by
Supplier pursuant to Section
7.3. The
right of the Buyer to submit a Last-Time Buy Order shall entitle Buyer to
purchase the Products at the price in effect for the products as of the time of
Buyer’s exercise of such right.

     

        (b) A Last-Time Buy Order shall specify (i) number
of units of the Product to be purchased and (ii) the requested delivery date or
dates for such units. If Supplier informs Buyer that it cannot honor the
requested delivery dates because of capacity restraints or otherwise, the
Parties shall negotiate in good faith with respect to delivery dates mutually
acceptable to Supplier and Buyer.

     

        (c) The Parties hereby agree to use commercially
reasonable efforts to coordinate forecasting and ordering during the period
between the date the Last-Time Buy Order is delivered to Supplier and the final
delivery date to allow for regular supply of Products during such
period.

     

    

    
    

    ARTICLE
V 

    CONFIDENTIALITY

     

       SECTION 5.1 Supplier and Buyer 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 4.5 of the Master Separation Agreement shall
govern, mutatis
mutandis,
the confidentiality obligations of the parties under this
Section.

     

    ARTICLE
VI

    PRODUCT WARRANTY; LIMITATION OF
LIABILITY

     

       SECTION 6.1 Product Warranty;
Merchantability Warranty. (a) Supplier warrants to
Buyer that the Products shall, at the time of delivery to Buyer in accordance
with Section
4.2: (i)
conform to the Specifications therefor, as provided in Section
2.2; (ii)
be free from material defects; and (iii) be manufactured in accordance with good
manufacturing practice and Applicable Law (such warranty being referred to as
the “Product
Warranty”).

     

        (b) EXCEPT AS
SPECIFICALLY PROVIDED IN THIS AGREEMENT, NO WARRANTIES, OTHER THAN THE PRODUCT
WARRANTY, ARE EXPRESSED OR IMPLIED IN RESPECT OF THE PRODUCTS, INCLUDING ANY
IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE.

     

        SECTION 6.2
Defective or Non-Conforming
Products. (a) Claims by
Buyer relating to the quantity of or damage to any Product or the failure of any
Product to conform to its Specifications must be made within one (1) year of
receipt of such Product and must be in writing, specifying in reasonable detail
the nature and basis of the claim and citing relevant control or lot numbers or
other information to enable identification of the Product in question.
Supplier’s Liability to Buyer for damages for any such claim shall be limited to
a refund for the price of the defective Product plus shipping costs or, at
Buyer’s option, prompt replacement thereof with a Product that complies with the
Product Warranty. Such refund and shipping costs or a replacement shall
constitute Supplier’s sole and exclusive Liability for such claims. For the
avoidance of doubt, nothing shall limit the obligations of Supplier to Buyer in
respect of third party claims against Buyer arising from the failure of any
Product to conform to its Specifications.

     

        (b) Any notifications to either Party pursuant to
this Section 6.2 shall be subject to the confidentiality
provisions of Article V above.

     

        SECTION 6.3
Indemnification. (a) Subject to Section 6.4, Supplier shall indemnify and hold Buyer
harmless from and against any Liability, including reasonable attorney’s fees
and disbursements, arising out of any third party claim for death, injury or
damage to property resulting from (i) Supplier’s breach of this Agreement; or
(ii) any claim that a Product purchased from Supplier infringes any intellectual
property right of a third party.

     

    

    
    

       (b) Buyer shall indemnify and hold harmless Supplier from and against any
Liability, including reasonable attorneys’ fees and disbursements, arising out
of any third party claim for death, injury or damage to property resulting from
use of any of the Products based upon (i) Buyer’s breach of this Agreement; or
(ii) any change in condition of the Products caused by Buyer other than any
change in Specifications requested by Supplier and deemed accepted by Buyer
under Section
2.5.

     

       (c) Any Party seeking indemnification pursuant to this Section 6.3
shall promptly notify
the other Party of the claim as to which indemnification is sought, shall afford
the other Party, at the other Party’s sole expense, the opportunity to defend or
settle the claim (in which case the indemnifying Party shall not be responsible
for the attorneys’ fees of the indemnified Party with respect such claim) and
shall cooperate to the extent reasonably requested by the other Party in the
investigation and defense of such claim; provided, however, that any settlement of any
such claim that would adversely affect the rights of the indemnified Party shall
require the written approval of such indemnified Party; and provided further that an indemnified Party
shall not settle any such claim without the written approval of the indemnifying
Party.

     

        (d) The foregoing indemnification obligations
shall survive any termination or expiration of this Agreement, in whole or in
part, or the expiration or termination of the Term.

     

        SECTION 6.4
Limitation of Liability. In no event shall any Party be liable 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 any breach of this Agreement,
including breach of the Product Warranty, or any other obligations of any Party
hereunder, or any use of the Products, and each Party hereby knowingly and
expressly waives any claims or rights with respect thereto; provided, however, that in the event a Party is required to pay
to a third-party claimant any special, consequential, indirect, collateral,
incidental or punitive damages or lost profits or failure to realize expected
savings or other commercial or economic loss on any claim with respect to which
such Party is indemnified by the other Party pursuant to this Agreement, such
Party shall be entitled to indemnification from the other Party with respect to
such third-party special, consequential, indirect, collateral, incidental or
punitive damages or lost profits or failure to realize expected savings or other
commercial or economic loss to the extent resulting from the indemnifiable acts
or omissions of the other Party.

     

        SECTION 6.5
Insurance. Each of the Parties shall maintain general
liability insurance covering their activities under this Agreement in accordance
with prudent and customary commercial practices, in such amounts as shall be
agreed upon from time to time by the Parties.

     

    ARTICLE
VII

    TERM OF AGREEMENT; RENEWAL TERM;
TERMINATION

     

        SECTION 7.1
Term of Agreement. Unless earlier terminated pursuant to
Section 7.3, the term of this Agreement shall be
perpetual.

     

    

    
    

        SECTION 7.2
Termination. Either Party may terminate this Agreement at
any time upon prior written notice to the other at least one (1) year prior to
the requested date of termination.

     

       SECTION 7.3 Rights Upon
Termination. Following a termination of this Agreement, all further rights and
obligations of the Parties under this Agreement shall terminate. Notwithstanding the
foregoing, the termination of this Agreement shall not affect the rights and
obligations of the Parties arising prior to such expiration or termination;
and provided further that the Parties shall not be
relieved of (i) their respective obligations to pay monies due or which become
due as of or subsequent to the date of expiration or termination, and (ii) any
other respective obligations under this Agreement which specifically survive or
are to be performed after the date of such expiration or termination, including
the provisions of Article V and 6.3. Any Firm Order, including a
Last-Time Buy Order, submitted prior to the expiration or termination of this
Agreement shall be filled by Supplier pursuant to the terms hereof even if the
delivery date is after expiration or termination.

     

    ARTICLE
VIII 

    DISPUTE RESOLUTION

     

       SECTION 8.1 The terms and provisions of Article VIII of
the Master Separation Agreement relating to the procedures for resolution of any
disputes between the parties, shall apply to all disputes, controversies or
claims (whether sounding in contract, tort or otherwise) that may arise out of
or relate to or arise under or in connection with this Agreement, or the
transactions contemplated hereby, mutatis
mutandis.

     

    ARTICLE
IX 

    MISCELLANEOUS

     

        SECTION
9.1 Assignment. This Agreement and the
rights and obligations of a Party hereunder shall be assignable or delegable, in
whole or in part, (i) by Supplier without the consent of Buyer, to a
Wholly-Owned Subsidiary of Supplier that succeeds to the conduct of the foil
resistor business responsible for supplying the Products; (ii) by Buyer without
the consent of Supplier, to a Wholly-Owned Subsidiary of Buyer; or (iii) by
either Party, to any Person who is not a Wholly-Owned Subsidiary of a Party only
with the prior written consent of the other Party; provided, however, that no such assignment
shall relieve the assigning Party of Liability for its obligations hereunder.
The following actions shall not be deemed an assignment of this Agreement: (1)
assignment or transfer of the stock of a Party, including by way of a merger,
consolidation, or other form of reorganization in which outstanding shares of a
Party are exchanged for securities, or (2) any transaction effected primarily
for the purpose of (A) changing a Party’s state of incorporation or (B)
reorganizing a Party into a holding company structure such that, as a result of
any such transaction, such Party becomes a Wholly-Owned Subsidiary of a holding
company owned by the holders of such Party’s securities immediately prior to
such transaction. Any attempted assignment other than as provided herein shall
be void. The provisions of this Agreement shall be binding upon, and shall inure
to the benefit of, the successors and permitted assigns of the
Parties.

     

    

    
    

       SECTION 9.2 Force
Majeure.
The Parties shall not be liable for the failure or delay in performing any
obligation under this Agreement (except pursuant to Section
7.4) if
and to the extent such failure or delay is due to (i) acts of God; (ii) weather,
fire or explosion; (iii) war, invasion, riot or other civil unrest; (iv)
governmental laws, orders, restrictions, actions, embargoes or blockages; (v)
action by any regulatory authority which prohibits the manufacture, sale or
distribution of the Products, except to the extent due to Supplier’s breach of
its obligations hereunder; (vi) regional, national or foreign emergency; (vii)
injunction, strikes, lockouts, labor trouble or other industrial disturbances;
(viii) shortage of adequate fuel, power, materials, or transportation
facilities; or (ix) any other event which is beyond the reasonable control of
the affected Party; provided, however, that the Party affected
shall promptly notify the other Party of the force majeure condition and shall
exert its reasonable commercial efforts to eliminate, cure or overcome any such
causes and to resume performance of its obligations as soon as
possible.

     

        SECTION 9.3
Intellectual Property. All Intellectual Property owned or created
by a Party shall remain its sole and exclusive property, and the other Party
shall not acquire any rights therein by reason of this Agreement.

     

        SECTION 9.4
Entire Agreement. This Agreement and the Exhibits hereto
constitute the entire agreement between the Parties with respect to the subject
matter hereof and thereof and supersede all previous agreements, negotiations,
discussions, understandings, writings, commitments and conversations between the
parties with respect to such subject matter. No agreements or understandings
exist between the parties other than those set forth or referred to herein or
therein. If any provision of this Agreement or the application thereof to any
Party or circumstance shall be declared void, illegal or unenforceable, the
remainder of this Agreement shall be valid and enforceable to the extent
permitted by Applicable Law. In such event, the Parties shall use their best
efforts to replace the invalid or unenforceable provision with a provision that,
to the extent permitted by Applicable Law, achieves the purposes intended under
the invalid or unenforceable provision.

     

        SECTION 9.5
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 9.6 Consent to
Jurisdiction. Subject to the provisions of Article
VIII,
each of the Parties irrevocably submits to the jurisdiction of the federal and
state courts located in Philadelphia, Pennsylvania and the City of New York,
Borough of Manhattan 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
9.16.
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 9.10
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
9.6. Each
of the parties irrevocably waives any objection to venue in the federal and
state courts located in Philadelphia, Pennsylvania and the City of New York,
Borough of Manhattan of any action, suit or proceeding arising out of this
Agreement or the transactions contemplated hereby for which it has submitted to
jurisdiction pursuant to this Section
9.6, and waives
any claim that any such action, suit or proceeding brought in any such court has
been brought in an inconvenient forum.

     

    

    
    

        SECTION 9.7
Independent Contractor. Nothing contained in this Agreement shall
constitute a Party as a partner, employee or agent of the other Party, nor shall
any Party hold itself out as such. Neither Party shall have the right or
authority to incur, assume or create, in writing or otherwise, any warranty,
Liability or other obligation of any kind, express or implied, in the name or on
behalf of the other Party, and each Party is and shall remain an independent
contractor, responsible for its own actions. Except as otherwise explicitly
provided herein, each Party shall be responsible for its own expenses incidental
to its performance of this Agreement.

     

        SECTION 9.8
Set-Off. The obligation of Buyer to pay the purchase
price for Products shall be unconditional, except as provided in this Agreement,
and shall not be subject to any defense, setoff, counterclaim or similar right
against Supplier or any of its Affiliates that could be asserted by Buyer or any
of its Affiliates under any other contract, agreement, arrangement or
understanding or otherwise under Applicable Law.

     

        SECTION 9.9
Waivers. No claim or right arising out of or relating
to a breach of any provision of this Agreement can be discharged in whole or in
part by a waiver or renunciation of the claim or right unless the waiver or
renunciation is supported by consideration and is in writing signed by the
aggrieved Party. Any failure by any Party to enforce at any time any provision
under this Agreement shall not be considered a waiver of that Party’s right
thereafter to enforce each and every provision of this Agreement.

     

        SECTION 9.10
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 personally delivered, sent by a
nationally recognized overnight courier, transmitted by facsimile, or 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 Supplier,
to:

     

        Vishay Dale
Electronics, Inc. 

        c/o Vishay
Intertechnology, Inc. 

        63 Lancaster Avenue

        Malvern, PA
19355-2120 

        Attention: Dr. Lior
E. Yahalomi 

        Telephone:
610-644-1300 

        Facsimile:
610-889-2161

     

        with a copy
to:

     

        Kramer Levin Naftalis
& Frankel LLP 

        1177 Avenue of the
Americas 

        New York, NY
10036

     

    

    
    

        Attention: Ernest S.
Wechsler, Esq. 

        Telephone:
212-715-9100 

        Facsimile:
212-715-8000

     

        If to Buyer,
to:

     

        Vishay Advanced
Technology, Ltd. 

        c/o Vishay Precision
Group, Inc. 

        3 Great Valley
Parkway 

        Malvern, PA
19355-1307 

        Attention: William M.
Clancy 

        Telephone:
484-321-5300 

        Facsimile:
484-321-5300

     

        with a copy
to:

     

        Pepper Hamilton LLP

        3000 Two Logan Square

        Eighteenth and Arch
Streets

        Philadelphia,
Pennsylvania 19103-2799 

        Attention: Barry
Abelson, Esq. 

        Telephone:
215-981-4000 

        Facsimile:
215-981-4750

     

    Any notice, demand or
other communication hereunder shall be deemed given upon the first to occur of:
(i) the fifth (5th) day after deposit thereof, postage prepaid
and addressed correctly, in a receptacle under the control of the United States
Postal Service; (ii) transmittal by facsimile transmission to a receiver or
other device under the control of the party to whom notice is being given; (iii)
actual delivery to or receipt by the party to whom notice is being given or an
employee or agent thereof; or (iv) one (1) day after delivery to an overnight
carrier.

     

        SECTION 9.11
Headings. The headings contained herein are included
for convenience of reference only and do not constitute a part of this
Agreement.

     

        SECTION 9.12
Counterparts. This Agreement may be executed in one or
more counterparts, each of which when so executed and delivered or transmitted
by facsimile, e-mail or other electronic means, shall be deemed to be an
original and all of which taken together shall constitute but one and the same
instrument. A facsimile or electronic signature is deemed an original signature
for all purposes under this Agreement.

     

        SECTION 9.13
Severability. If any provision of this Agreement or the
application thereof to any Person or circumstance is determined by a court of
competent jurisdiction to be invalid, void or unenforceable, the remaining
provisions hereof, or the application of such provision to Persons or
circumstances or in jurisdictions other than those as to which it has been held
invalid or unenforceable, 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 is not affected in any
manner adverse to any party. Upon such determination, the Parties shall
negotiate in good faith in an effort to agree upon such a suitable and equitable
provision to effect the original intent of the Parties.

     

    

    
    

        SECTION 9.14
Waiver of Default. (a) Any term or provision of this Agreement
may be waived, or the time for its performance may be extended, by the party or
the parties entitled to the benefit thereof. Any such waiver shall be validly
and sufficiently given for the purposes of this Agreement if, as to any party,
it is in writing signed by an authorized representative of such
party.

     

        (b) Waiver by any party of any default by the
other party 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 any party hereof or prejudice
the rights of the other party thereafter to enforce each and ever such
provision. 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 preclude any other or further exercise thereof or the
exercise of any other right, power or privilege.

     

        SECTION 9.15
Amendments. No provisions of this Agreement shall be
deemed amended, modified or supplemented by any Party, 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 9.16 Specific Performance. The Parties agree that the remedy at law for
any breach of this Agreement may be inadequate, and that, as between Supplier
and Buyer, any Party by whom this Agreement is enforceable shall be entitled to
seek temporary, preliminary or permanent injunctive or other equitable relief
with respect to the specific enforcement or performance of this Agreement. Such
Party may, in its sole discretion, apply to a court of competent jurisdiction
for such injunctive or other equitable relief as such court may deem just and
proper in order to enforce this Agreement as between Supplier and Buyer, or the
members of their respective Groups, or prevent any violation hereof, and, to the
extent permitted by Applicable Law, as between Supplier and Buyer, each Party
waives any objection to the imposition of such relief.

     

       SECTION 9.17
Waiver of jury
trial. Subject to Article VIII, each of the Parties hereby waives to the
fullest extent permitted by Applicable 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 hereby. Each of the Parties hereby (a) certifies that no
representative, agent or attorney of any other party has represented, expressly
or otherwise, that such other party would not, in the event of litigation, seek
to enforce the foregoing waiver and (b) acknowledges that it has been induced to
enter into this agreement and the transactions contemplated by this agreement,
as applicable, by, among other things, the mutual waivers and certifications in
this Section
9.17.

     

    [SIGNATURE PAGE FOLLOWS]

     

    

    
    

        IN WITNESS WHEREOF,
the Parties have caused this Agreement to be executed by their respective duly
authorized representatives as of the date first written above.

     

    
      	
            	SUPPLIER:
	
            	
            	 
	
            	
            	 
	
            	
            	 
	
            	By:	 
	
            	
            	Name:
	
            	
            	Title:
	
            	
            	  
	
            	
            	  
	
            	
            	 
	
            	
            	 
	
            	BUYER:
	
            	
            	  
	
            	
            	  
	
            	
            	  
	
            	By:	 
	
            	 	Name:
	
            	
            	Title:

    

    

    
    

    EXHIBIT A

     

    
      	  REF P/N	DESCRIPTION	MODEL	VALUE	TOL	PRICE PER QUANTITY
  (USD)
	
            	
            	 	
            	
            	
            	Minimum
	
            	
            	
            	 	
            	All Qty	Order Qty
	  [***]	[***]	[***]	[***]	[***]	[***]	[***]
	 
	 
	  [***]	
            	
            	
            	
            	
            	
            

    

    Portions of this exhibit
were omitted and
filed separately with
the Secretary of
the Securities and
Exchange Commission 

    pursuant to an
application for
confidential treatment filed with
the Securities and
Exchange Commission pursuant to

    Rule 24b-2 under
the Securities Exchange Act of 1934.
Such portions are
marked by
[***].

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