Document:

exhibit10-13.htm

    INTELLECTUAL PROPERTY LICENSE
AGREEMENT

     

         This Intellectual Property License Agreement (“Agreement”) is entered into as of July 6, 2010 (the
“Effective Date”), by and between Vishay S.A., a French
company (“Licensee”), and Vishay Measurements Group, Inc. a
Delaware corporation ("Licensor").

     

    RECITALS:

     

         WHEREAS, Licensor is the owner of certain intellectual property formerly
owned by Licensee and used in the manufacture of strain gages (“Licensed IP”);
and

     

         WHEREAS, in order to effect and consummate the separation (the
“Separation”) contemplated by that certain Master
Separation and Distribution Agreement dated June 22, 2010 between Vishay
Intertechnology, Inc., a Delaware corporation and Licensee’s affiliate, and
Vishay Precision Group, Inc., a Delaware corporation and Licensor’s affiliate
(the “Master Separation Agreement”), Licensee desires to secure a non-exclusive
license to the Licensed IP, to manufacture, use and sell Licensed Products (as
defined herein) to its customers.

     

         NOW, THEREFORE, in consideration of the terms and provisions of this
Agreement and the Separation, and for other good and valuable consideration, the
receipt of which is acknowledged by the execution and delivery hereof, Licensor
and Licensee hereby agree as follows:

     

    
      	A.	      	Definitions.
	 
	 	 	1. “Licensed IP” shall have the meaning set forth in
      the Recitals.
	 
	 	 	2. “Licensed Products” shall mean the strain gages specified
      in Schedule A, that were manufactured by Licensee prior to the
      Separation.
	 
	B.	 	License Grant. Subject to the terms and conditions
      set forth in this Agreement, Licensor hereby grants to Licensee, a
      non-exclusive, irrevocable, worldwide right and license to the Licensed IP
      to make, have made, use, sell, offer for sale, export and import Licensed
      Products. Licensee may only sell and offer for sale Licensed Products to
      its customers existing as of the Effective Date.
	 
	C.	 	Improvements. Licensee acknowledges and agrees that
      any modification, change, development, enhancement, derivative or
      improvement (collectively, “Improvements”) made by, or on behalf of, Licensee to
      the Licensed IP or Licensed Product, shall be owned exclusively by
      Licensor, and to the extent that Licensee retains any rights therein,
      Licensee irrevocably assigns all right, title and interest therein to
      Licensor. All Improvements shall be deemed Licensed IP or Licensed
      Products, as appropriate, and shall be subject to the terms of this
      Agreement.
	 
	D.	 	Sublicensing. This Agreement may be assigned, and
      the license may be sublicensed, by Licensee solely to a direct or indirect
      wholly-owned subsidiary of Licensee that succeeds Licensee in the
      manufacture and sale of the Licensed Products; provided that Licensee
      shall be responsible for the compliance by a subsidiary granted a
      sublicense with the terms of this Agreement. Except as provided above, the
      license and this Agreement shall be non-assignable and non-sublicensable
      without the written consent of Licensor. Any purported license or
      assignment in violation of this Agreement shall be
  void.

    

    

    
    

    
      	E.	      	License Fees. For the license and rights granted
      herein, Licensee shall pay Licensor 5% of the gross amount received from
      the sale of Licensed Products, less the amount of any refunds, credits and
      allowances actually given by Licensee, and taxes and shipping cost amounts
      invoiced and paid by Licensee’s customers.
	 
	F.	 	Payment. Licensee shall pay the license fees on
      a quarterly basis, within 60 days of the end of each calendar quarter
      during the term of the Agreement, for Licensed Products sold during such
      quarter, subject to subsequent adjustment for returns and allowances, and
      provided that payment of license fees for the first and last calendar
      quarter of the term shall be paid on those sales occurring in such
      calendar quarters, on and following the Effective Date for the initial
      quarter, and on or before the termination date in the quarter in which the
      Agreement is terminated.
	 
	G.	 	Reporting. During the term of the Agreement,
      Licensee will keep and maintain current and accurate records regarding
      sales of Licensed Products and the calculation of the amounts paid or
      payable by the Licensee to Licensor under this Agreement. Licensor will
      submit quarterly sales and revenue reports for the Licensed Product with
      each license fee payment, and such other reports as the parties may agree
      from time time. Among such other items as the parties may agree, the
      quarterly sales reports shall include sufficient detail regarding the sale
      of Licensed Products to establish the accuracy of the License Fee
      payments.
	 
	H.	 	Records and Audit. Not more than once in any twelve (12)
      month period of the term of the Agreement, upon written request by
      Licensor, Licensee will provide the Licensor and its representative’s
      access to its books and records during Licensee’s normal business hours in
      order to verify the accuracy of the sales reports, and computations of
      amounts due and owing to the Licensor pursuant to this Agreement. In the
      event any such audit reveals that the Licensee has underpaid any amounts
      due to the Licensor pursuant to this Agreement, Licensee will promptly pay
      the deficiency.
	 
	I.	 	Enforcement. Licensee shall cooperate fully and
      promptly with Licensor in the protection of Licensor’s rights in the
      Licensed IP, in such manner and to such extent as Licensor may reasonably
      request, and at Licensor’s expense.
	 
	 	 	1.
      Each party shall promptly notify the other party in writing of any actual
      or potential infringement, or any other unauthorized use of or violation
      of the Licensed IP of which it becomes aware (each an “Infringement”). Licensor may take such action as it,
      in its sole discretion, deems necessary or advisable to stop any
      Infringement. Licensee may request in writing that Licensor institute an
      action to stop an Infringement affecting the Licensed Products. If
      Licensor receives such a written request and does not institute such
      action within thirty (30) days, Licensee shall be entitled to institute
      such action as it deems necessary or advisable to stop such Infringement,
      in which Licensor shall be entitled to join; provided that Licensee shall not compromise or
      settle any claim or action regarding the Licensed IP in any manner that
      would affect the rights of Licensor without the written consent of
      Licensor, which consent shall not be unreasonably withheld or delayed. The
      party not taking the lead in any action shall cooperate fully with the
      other party at the other party’s reasonable request and expense, including
      Licensor joining a suit instituted

    

     

    - 2 -

     

    

    
    

    
      	 	 	
              by Licensee in
      accordance with this Section to the extent necessary for Licensee to have
      standing.

            
	
            	      	           
    	
            
	
            	 	
              2. Any monetary
      recovery or sums obtained in settlement of any action to stop an
      Infringement shall be
      allocated between Licensor and Licensee as shall be fair and equitable,
      taking into account their actual out-of-pocket costs and expenses,
      including reasonable attorneys’ fees, and the damages sustained by each of
      them. Any dispute with respect to the allocation of recoveries shall be
      resolved in accordance with the resolution procedures referred to in
      Section L.16.

            
	
            	 	
            	
            
	J.	 	
              Warranties of the
      Parties. Licensor
      warrants that it has the right and power to enter into this Agreement, and
      that there are no outstanding assignments, grants, licenses, encumbrances,
      obligations or agreements, either written or oral or implied, that prevent
      it from doing so. Licensee warrants that it has the right and power to
      enter into this Agreement,
      and that there are no outstanding assignments, grants, licenses,
      encumbrances, obligations or agreements, either written or oral or
      implied, that prevent it from doing so.

            
	
            	 	
            	
            
	K.	 	
              WARRANTY DISCLAIMER. EXCEPT AS EXPRESSLY SET FORTH IN THIS
      AGREEMENT, NEITHER PARTY MAKES ANY OTHER REPRESENTATION, GUARANTEE OR
      WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR OTHERWISE, UNDER THIS AGREEMENT
      INCLUDING REPRESENTATIONS, GUARANTEES OR WARRANTIES AS TO THE RESULTS TO
      BE EXPECTED FROM USE OF ANY OF THE LICENSED IP, OR FROM MANUFACTURE OR
      SALE OF ANY LICENSED PRODUCT. EXCEPT AS EXPRESSLY SET FORTH IN THIS
      AGREEMENT, LICENSOR SHALL HAVE NO RESPONSIBILITY FOR THE ABILITY OR
      INABILITY OF LICENSEE TO USE THE LICENSED IP; FOR THE CLAIMS OF THIRD
      PARTIES RELATING TO ANY PRODUCTS MANUFACTURED OR SOLD BY LICENSEE; OR FOR ANY FAILURE IN
      PRODUCTION, DESIGN OR
      OPERATION OF ANY PRODUCT MANUFACTURED OR SOLD BY LICENSEE. THE LIMITATIONS
      OF LIABILITY CONTAINED IN THIS AGREEMENT ARE A FUNDAMENTAL PART OF THE
      BASIS OF EACH PARTY’S BARGAIN HEREUNDER, AND NEITHER PARTY WOULD ENTER
      INTO THIS AGREEMENT ABSENT SUCH LIMITATIONS.

            
	
            	 	
            	
            
	L.	 	
              Term / Termination.

            
	
            	 	
            	
            
	
            	 	
              1. Term.

            
	
            	 	
            	
            
	
            	 	
              (a) This Agreement
      shall commence on the Effective Date, and, so long as this Agreement has not been terminated by its
      terms, continue in full force and effect until, subject to clause (b) of
      this Section
      L.1 the date the six (6) year period beginning on the Effective
      Date expires, unless Licensee notifies Licensor prior to expiration of
      such six-year period of its intent to extend the initial term of this
      Agreement by an additional two (2) year period (the “Initial
      Term”).
      Following the Initial Term and subject to clause (b) of this Section L.1,
      this Agreement shall automatically renew for additional successive
      two-year terms (each, a “Renewal Term”) unless
      either party notifies the other party in writing within six (6) months of
      the expiration of the Initial Term or the then current Renewal Term that
      it will not renew this
Agreement.

            

    

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              (b)
      Notwithstanding the foregoing, Licensee shall have the right to continue
      to dispose of its inventory of strain gage products existing as of any
      termination for a period of up to two (2) years from the date of
      termination of this Agreement.

            
	
            	 	           
    	
            
	
            	 	
              2. Termination by
      Licensor. This
      Agreement may be terminated by Licensor by written notice of termination
      if:

            
	
            	 	
            	
            
	
            	 	
              (a) Licensee files
      a petition in bankruptcy; files a petition seeking any reorganization,
      arrangement, composition or similar relief under any law regarding
      insolvency or relief for debtors; or makes an assignment for the benefit
      of creditors;

            
	
            	 	
            	
            
	
            	 	
              (b) a receiver,
      trustee or similar officer is appointed for the Licensee’s business or
      property;

            
	
            	 	
            	
            
	
            	 	
              (c) any
      involuntary petition or proceeding under bankruptcy or insolvency laws is
      instituted against Licensee and not stayed, enjoined, or discharged within
      sixty (60) days; or

            
	
            	 	
            	
            
	
            	 	
              (d) Licensee
      adopts a resolution for, or undertakes to effect, a discontinuance of its
      business or dissolution.

            
	
            	 	
            	
            
	
            	 	
              3. Upon the
      termination of this Agreement, all rights of Licensee granted hereunder
      shall terminate, and Licensee shall return or destroy (and certify such
      destruction in writing to Licensor if requested), at Licensor’s election,
      all embodiments of the Licensed IP. Notwithstanding the foregoing,
      Licensee shall have the right to continue to dispose of its inventory of
      Licensee Products existing as of any termination for a period of up to six
      (6) months from the date of termination of this
  Agreement.

            
	
            	 	
            	
            
	
            	 	
              4. All rights and
      remedies of the parties in respect of any breach of this Agreement
      occurring prior to the effective date of its termination shall survive the
      termination of this Agreement. In addition, the following provisions of
      this Agreement shall explicitly survive its termination: Section F (“Reporting”), Section J (“WARRANTY DISCLAIMER”); Section K.3; and Section L (“Miscellaneous”).

            
	
            	 	
            	
            
	M.	 	
              Miscellaneous.

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

            

    

    - 4 -

     

    

    
    

    
      	If to Licensee:	With a copy to:
	 
	Vishay S.A.	Kramer Levin Naftalis & Frankel LLP
	c/o Vishay Intertechnology, Inc.	1177 Avenue of the Americas
	63 Lancaster Avenue	New York, New York 10036
	Malvern, PA 19355-2120	Attn: Ernest Wechsler, Esq.
	Attention: Dr. Lior
      E. Yahalomi, Chief	Facsimile: (212)
      715-8000
	Financial Officer	Confirm: (212)
      715-9100
	Telephone: 610-644-1300	
            
	Facsimile: 610-889-2161	
            
	 
	If to Licensor:	With a copy to:
	 
	Vishay Measurements Group, Inc.	Pepper Hamilton LLP
	c/o Vishay Precision Group, Inc.	3000 Two Logan Square
	3 Great Valley Parkway	Eighteenth and Arch Streets
	Malvern, PA 19355-1307	Philadelphia, PA 19103-2799
	Attn: William M. Clancy, Chief Financial	Attn: Barry Abelson, Esq.
	Officer	Facsimile: (215)
      981-4750
	Facsimile: (484)-321-5300	Confirm: (215) 981-4000
	Confirm: (484)-321-5300	 

    

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

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

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

            
	
            	 	
            
	
            	 	
              5. Assignability. Subject to Section C, this Agreement shall be binding upon
      and inure to the benefit of the parties and their respective successors
      and permitted assigns.

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

            

    

    - 5 -

     

    

    
    

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

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

            
	
            	 	
            
	
            	 	
              9. Indemnification. Each of the parties shall indemnify,
      defend and hold harmless the other party, each of its respective current
      and former directors, officers and employees, and each of their respective
      heirs, executors, successors and assigns (“Indemnified Parties”), from and against any and all
      liabilities relating to a claim by a third party arising out of or
      resulting from any breach of, or failure to perform or comply with, any
      covenant, undertaking or obligation of, this Agreement by the indemnifying
      party. In addition, Licensee shall indemnify, defend and hold harmless
      Licensor and Licensor’s other Indemnified Parties from and against any and
      all liabilities relating to a claim by a third party arising out of or
      resulting from the manufacture, sale, or use of to the Licensed Products
      manufactured or sold by Licensee, but only to the extent caused by such
      Licensed Products, and not to the extent such liabilities arise out of or
      result from the Licensed IP, or the use thereof, in or in the manufacture
      of, the Licensed Products. All indemnification procedures and payments
      shall be governed by Sections 5.6, 5.7 and 5.8 of the Master Separation
      Agreement, as applicable. The foregoing indemnification obligations shall
      survive any termination or expiration of this
Agreement.

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

            
	
            	 	
            
	
            	 	
              11. Confidential
      Information.
      Licensor and Licensee 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

            

    

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              connection with
      the performance by the parties of their rights and obligations under this
      Agreement. The provisions of Section 4.5 of the Master Purchase Agreement
      shall govern, mutatis mutandis, the confidentiality obligations of the
      parties under this Section.

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

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

            
	
            	 	
            
	
            	 	
              14. Consent to
      Jurisdiction.
      Subject to the provisions referenced in Section L.16, each of the parties irrevocably
      submits to the jurisdiction of the federal and state courts located in
      Philadelphia, Pennsylvania for the purposes of any suit, action or other
      proceeding to compel arbitration, for the enforcement of any arbitration
      award or for specific performance or other equitable relief pursuant to
      Section L.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 L.1 shall be effective service of process
      for any action, suit or other proceeding with respect to any matters for
      which it has submitted to jurisdiction pursuant to this Section. Each of
      the parties irrevocably waives any objection to venue in the federal and
      state courts located in Philadelphia, Pennsylvania of any action, suit or
      proceeding arising out of this Agreement or the transactions contemplated
      hereby.

            
	
            	 	
            
	
            	 	
              15. Specific Performance. The parties hereto agree that the
      remedy at law for any breach of this Agreement may be inadequate, and that
      any party hereto shall be entitled to specific performance in addition to
      any other appropriate relief or remedy. Such party may, in its sole
      discretion, apply to a court of competent jurisdiction for specific
      performance or injunctive or such other relief as such court may deem just
      and proper in order to enforce this Agreement.

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

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

            
	
            	 	
            
	
            	 	
              18. Waiver of Jury Trial. SUBJECT TO SECTION L.16, EACH OF THE PARTIES HEREBY WAIVES TO
      THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY
      JURY WITH RESPECT TO ANY COURT PROCEEDING DIRECTLY OR INDIRECTLY ARISING
      OUT OF AND PERMITTED

            

    

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              UNDER OR IN
      CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS
      AGREEMENT.

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

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

            

    

    [SIGNATURE PAGES
FOLLOW]

     

    - 8 -

     

    

    
    

         IN WITNESS WHEREOF, the parties have caused their duly authorized
representatives to execute this Agreement as of the Effective Date.

     

    
      	
            	VISHAY S.A.
	 
	 
	 
	By:       	/s/ Denis
      Maugest
	
            	Name:	Denis Maugest
	
            	Title:	Directeur General
	 
	 
	 
	
            	VISHAY MEASUREMENTS GROUP,
      INC.
	 
	 
	 
	By:	/s/ William M.
      Clancy
	
            	Name:   	William M.
  Clancy
	
            	Title:	Secretary

    

    - 9 -

     

    

    
    

    SCHEDULE A

     

    LICENSED PRODUCTS

     

    
      	FAM DESIGNATION	PRODUCT
	JAUGES DE CONTRAINTE	JAUGE 21L30 E V 1K N 13 G036
	JAUGES DE CONTRAINTE	JAUGE 21L60 E P 1K R 24 G013
	JAUGES DE CONTRAINTE	JAUGE-G018
	JAUGES DE CONTRAINTE	JAUGE-G036
	JAUGES DE CONTRAINTE	JAUGE-G022
	JAUGES DE CONTRAINTE	JAUGE-G088
	JAUGES DE CONTRAINTE	JAUGE-G096
	JAUGES DE CONTRAINTE	JAUGE-G098
	JAUGES DE CONTRAINTE	JAUGE-G040
	JAUGES DE CONTRAINTE	JAUGE-G1020
	JAUGES DE CONTRAINTE	JAUGE-G1021
	JAUGES DE CONTRAINTE	JAUGE-G079
	JAUGES DE CONTRAINTE	JAUGE-G100
	JAUGES DE CONTRAINTE	JAUGE-G1004
	JAUGES DE CONTRAINTE	JAUGE-G1033
	JAUGES DE CONTRAINTE	JAUGE-G050exhibit10-14.htm

     

     

     

     

     

    Building Lease Agreement

     

     

     

     

     

     

     

    by and between

     

     

     

     

     

     

     

    Lessor: Alpha Electronics
Corporation

     

    and

     

    Lessee: Vishay
Japan
Co., Ltd. 

     

     

     

     

     

     

     

    - 1 - 

     

    

    
    

    Summary of Lease
(Building Lease Agreement) 

     

    
      	(1)	Lessor	Alpha Electronics K.K.
	(2)	Lessee	Vishay Japan Co., Ltd.
	(3)	Building	Name	VJQC
	Location	
              238-1
      Itaizawa, Nakatashiro, Yurihonjo-city, Akita

            
	Structure
      and
Size	
              One
      floor of light steel prefabrication structure

            
	Total area
      of
the building	
              148
      square meters

            
	(4)	Purpose	Products inspection center
	(5)	
            	Rent	Consumption	Sub total
	
            	
            	tax	
            
	Monthly Rent	295,000 yen	14,750 yen	309,750 yen
	Security Deposit
(12
      months worth of
monthly rent)	                    
      3,540,000 yen
	Starting day of 
rent	                    
      April 1st,
      2010
	(6)	Term
      of  lease	5 years from the delivery date
	(7)	Special provisions	
              	5 parking lots within Akita
        Facility (see Article 8 below)
                  
	Use of cafeteria of Akita Facility (see Article 8
        below) 

            

    

    - 2 - 

     

    

    
    

    Building Lease Agreement 

     

    This Building Lease
Agreement (hereinafter referred to as the “Agreement”) is made and entered into by and between
Alpha Electronics Corp. (hereinafter referred to as the “Lessor”) and Vishay Japan Co., Ltd. (hereinafter
referred to as the “Lessee”) relating to the
Building that is to be leased by the Lessor to the Lessee and that is the
subject of the lease set forth in Column (3) of Summary of Lease (marked with
shaded area of the drawing set forth in Exhibit 1) (hereinafter referred to as
the “Building”) in the Akita Facility of the Lessee (“Akita
Facility”), as follows. 

     

    
      	
              Article 1
      (Lease of Building)

            
	
            	
            	
              In accordance
      with the provisions of this Agreement, the Lessor shall lease the Building
      to the Lessee, and the Lessee shall lease the Building from the Lessor.
      

            
	
            	
            	 
	
              Article 2
      (Purpose)

            
	
            	
            	
              The Lessee
      shall use the Building only for the purpose specified in Column (4) of
      Summary of Lease, and it may not use the Building for any other purposes
      unless the Lessee obtains prior written approval from the Lessor.
      

            
	
            	
            	 
	
              Article 3 (Term
      of Lease)

            
	1.	     	The
      term of lease shall be as set forth in Column (6) of Summary of Lease and
      shall be automatically renewed on 5 year basis unless otherwise notified
      in writing by either party at least 6 months prior to the original or any
      extended term of the lease.
	2.	
            	Notwithstanding paragraph 1 above, the Lessee may terminate the
      lease at any time by giving 6 months prior written notice.
	
            	
            	 
	
              Article 4
      (Rent)

            
	
            	
            	
              In
      consideration for the lease, use of the 5 parking lots as set forth in
      Column (5) of Summary of Lease and the availability of the cafeteria in
      Akita Facility for employees of the Lessee and other valuable
      considerations, the Lessee agrees to pay the rent as set forth in Column
      (5) of Summary of Lease, and the payment of the monthly rent shall be made
      in advance before the end of each month immediately preceding the relevant
      month (when the payment day falls on a bank holiday, then on the previous
      business day) by means of bank transfer to the bank account designated by
      the Lessor. Such bank transfer fees shall be borne by the Lessee.
      

            
	
            	
            	 
	
              Article 5
      (Division of Expenses to Be
Borne)

            

    
 

    

    
    

    
      	1.	
            	The Lessor shall be responsible for expenses as listed
    below:
	
            	
            	(1)	
            	Duties
      and taxes imposed on the Building and the premises including, but not
      limited to, the fixed assets tax and the city planning tax (excluding,
      however, those to be charged on facilities or fixtures, etc that the
      Lessee adds to the Building and the premises.);
	
            	
            	(2)	
            	Water
      charges;
	
            	
            	(3)	
            	Costs
      and expenses relevant to repairing works required to maintain and manage
      the Building itself and attached facilities (excluding, however, costs and
      expenses relevant to repairs and maintenance, replacement or renewal of
      fixtures set forth in Article 11);
	
            	
            	(4)	
            	Any and
      all costs and expenses other than those to be borne by the Lessee as set
      forth in the following Paragraph 2;
	2.	
            	The Lessee shall be responsible for expenses as listed
    below:
	
            	
            	(1)	
            	Electricity charges, and for this purpose the Lessee shall install
      a separate meter for electricity;
	
            	
            	(2)	
            	Costs
      and expenses relevant to the repairs and maintenance, replacement or
      renewal of fixtures set forth in Article 11;
	
            	
            	(3)	
            	Costs
      and expenses that are determined to be borne by the Lessee through mutual
      negotiations between the Lessor and the Lessee; and
	
            	
            	(4)	
            	Any and
      all consumption tax and local consumption tax relevant to those set forth
      above.
	 
	
              Article 6
      (Security Deposit)

            
	1.	
            	The Lessee shall furnish the Lessor with a security deposit in the
      amount set forth in Column (5) of Summary of Lease as the initial security
      deposit prior to the first day of the term of the lease by means of bank
      transfer to the Bank Account designated by the Lessor.
	2.	
            	The handling of the security deposit set forth in the preceding
      Paragraph shall be as follows:
	
            	
            	(1)	
            	The
      security deposit does not accrue interest.
	
            	
            	(2)	
            	During
      the term of the lease, the Lessee may not demand to set off its payment
      obligations of the rent, or any other liabilities to the Lessor against
      the security deposit.
	
            	
            	(3)	
            	In the
      event of default or liabilities of the Lessee concerning obligations set
      forth in this Agreement, including, but not limited to, delayed payment of
      the rent, the Lessor may, at any time, after notifying the Lessee thereof,
      appropriate a part or the whole of the security deposit for
  such.
	
            	
            	(4)	     	In
      accordance with the Item (3) above, if the Lessor appropriates the
      security deposit for the liabilities of the Lessee, the Lessee shall make
      the security deposit whole by payment of the shortfall within five (5)
      business days after the receipt of notice of appropriation.
	3.	     	Upon termination of this Agreement and after the completion of
      surrender of the Building by the Lessee pursuant to the provisions of
      Article 15, the Lessor shall immediately repay
the

    

     

    - 2 - 

     

    

    
    

    
      	
            	
            	
              balance of the
      security deposit after appropriating such to fill unpaid rent, restoration
      expenses, and any and all liabilities that the Lessee is responsible for
      and owing to the Lessor under this Agreement up to the completion of
      surrender.

            
	
            	
            	
            	
            	 
	
              Article 7 (Care
      of Good Manager)

            
	
            	
            	
              The Lessee
      shall use the Building with the due care of a good manager.
    

            
	
            	
            	
            	
            	 
	
              Article 8
      (Cafeteria and Parking Lots)

            
	
            	
            	
              During the term
      of the lease the Lessor shall furnish the following services:
    

            
	
            	
            	(1)	
            	Use of and access to the cafeteria
      in the Akita Facility by the employees of the Lessee, and, with a prior
      notice and approval, visitors and other persons concerned ;
  and
	
            	
            	(2)	 	use of 5 parking lots in the Akita
      Facility for the employees of the Lessee, and, with a prior notice and
      approval, temporary use of the parking space by visitors and other persons
      concerned.
	
            	
            	 
	
              Article 9
      (Alternation of Original Conditions)

            
	
            	
            	
              The Lessee
      shall obtain prior written approval of the Lessor to do the following:
      

            
	
            	
            	(1)	
            	Creation, addition, removal, improvement or redecoration, etc. of
      partitions, fittings or other fixtures and facilities;
	
            	
            	(2)	
            	New
      construction, addition or improvement of electrical facilities, plumbing
      and sanitary facilities, air-conditioning, gas, telephone and cable
      broadcasting system, etc.;
	
            	
            	(3)	
            	Display
      or representation of trade names, trade marks and other marks on entrance
      doors, outer walls, windows, etc.;
	
            	
            	(4)	
            	Installation of money safe, and delivery and installation of other
      heavy items;
	
            	
            	(5)	     	Replacement of the key of an entrance door; and
	 
	
              Article 10
      (Cleaning, Etc.)

            
	1.	
            	Cleaning services relevant to the Building shall be made by the
      Lessee at Lessee’s expenses.
	2.	
            	General waste and industrial waste resulting from occupancy of the
      Building shall be disposed of by the Lessee at its expenses and in its
      responsibility.
	
            	
            	 
	
              Article 11
      (Repairs)

            
	1.	     	If a repair is or seemingly will be required because of damages or
      malfunction regarding the Building and the furniture and fixtures, and
      facilities owned by or under management of the Lessor, the Lessee shall
      notify the Lessor of the same promptly. Repairs that the Lessor
      acknowledges necessary upon the receipt of the notice from the Lessee
      shall be carried out by

    

     

    - 3 - 

     

    

    
    

    
      	
            	
            	the Lessor at the Lessor’s expenses.
	2.	
            	Notwithstanding the Paragraph 1 above, the Lessee is responsible
      for and makes the repairs of the Building listed below at its expenses,
      regardless of the amount and the Lessor shall not bear any responsibility
      for any such repairs, monetary or not.
	
            	
            	(1)	
            	Repairs relevant to fittings, lightning appliances, etc. under the
      ownership of the Lessee in the Building;
	
            	
            	(2)	
            	Small
      repairs or normal wear and tear of walls, ceilings, floors, etc. in the
      Building;
	
            	
            	(3)	
            	Repairs of damages attributable to the Lessee;
	
            	
            	(4)	      
      	Repairs regarding fixtures, work pieces or facilities under the
      ownership of the Lessee;
	3.	     	The Lessee shall cooperate with the Lessor in repairs, improvements
      or betterment (including maintenance accompanied by stoppage of power or
      water supply; hereinafter the same) of the Building, its facilities, or
      other maintenance works, etc. carried out by the
  Lessor.

    
 

    
      	
              Article 12
      (Expenses on Assets under the Ownership of the Lessee)

            
	
            	
            	
              The Lessee
      shall be responsible for duties and taxes imposed on fixtures, facilities
      and other assets that the Lessee owns in the Building (regardless of the
      title or name). 

            
	
            	
            	 
	
              Article 13
      (Obligation to Compensate for Damages)

            
	1.	     	If the
      Lessor or any other third party suffers damage or expense (including those
      suffered as a result of a claim from a third party) in connection with
      this Agreement due to willful misconduct or negligence of the Lessee or
      its agent, employee, subcontractor, visitor or other person concerned, the
      Lessee shall immediately notify the Lessor thereof and with respect to the
      matters attributable to the Lessee or its agent, employee, subcontractor,
      visitor or other party concerned, immediately compensate for any such
      damage or expense by restoring the Building to its original status or by
      other method at its own cost in accordance with the Lessor’s
      instructions.
	2.	
            	If the
      Lessee or the Lessor fails to pay the amount payable to the other party
      under this Agreement or agreements incidental to this Agreement by the
      date designated under this Agreement or such agreements, such defaulting
      party shall pay to the other the default interest at an annual rate of
      14.5% until the same is paid in full (calculated on a per diem basis of
      365 days per year; any fraction smaller than one (1) yen shall be rounded
      down). Provided, however, that neither party shall be automatically
      excused from the termination of this Agreement by the other party even if
      such default interest is paid.
	
            	
            	 
	
              Article 14
      (Termination of this Agreement)

            
	1.	
            	
              If either party
      commits a material breach with respect to its obligation to the other
      party set

            

    

     

    - 4 - 

     

    

    
    

    
      	
            	
            	forth in this Agreement (including but not limited to a failure to
      pay the rent) and does not rectify such breach or failure within thirty
      (30) days (or seven (7) days in the case of monetary obligation) after
      receiving the written notice from the other party requiring such breach to
      be remedied, the other party may terminate this Agreement upon written
      notice to the defaulting party.
	2.	
            	The Lessor may immediately terminate this Agreement without the
      requirement of any proceedings such as a notice to the Lessee in the event
      of any of the following acts or facts in respect of the
  Lessee.
	
            	
            	(1)	
            	When
      failing to pay the rent or other obligations for two (2) months or longer
      or delaying the payment several times;
	
            	     	(2)	     	When
      being subject to provisional attachment (kari sashiosae), provisional disposition (kari shobun), compulsory execution (kyosei shikko), disposition for failure to pay tax
      (taino shobun), disposition for the suspension of
      business at a bank (ginko torhiki teishi
      shobun) or similar
      action;
	
            	
            	(3)	
            	When a
      resolution of dissolution is passed, or a petition for the commencement of
      bankruptcy (hasan) proceedings, civil rehabilitation
      (minji saisei) proceedings, corporate reorganization
      (kaisha kosei) proceedings, special liquidation
      (tokubetsu seisan) proceedings or any other similar
      proceeding is filed;
	
            	
            	(4)	
            	If
      there is a fact that causes the social credit to be significantly lost or
      act that is contrary to public order and good
morals.

    
 

    
      	
              Article 15
      (Obligation to Surrender)

            
	1.	     	If this Agreement
      is terminated in accordance with Articles 14 or for any other reason, the
      Lessee shall (1) remove at the Lessee’s cost the fixtures, works or
      facilities installed in or added to the Building or changed by the Lessee
      and furnishings held or used by the Lessee, (2) remove the properties
      installed or added by the Lessor at the request of the Lessee and deliver
      them at the Lessee’s cost, and (3) surrender and return the Building to
      the Lessor after restoring the Building to its original status by
      repairing at the Lessee’s cost any breakage or breakdown or wear or tear
      (excluding normal wear and tear) caused due to special use by the Lessee
      with respect to the Building, fixtures or facilities.
	2.	
            	If the Lessee
      fails to restore the Building to its original status in accordance with
      Articles 15.1, the Lessor or a person designated by the Lessor shall
      remove the fixtures, facilities and furnishings and repair any breakage or
      breakdown or wear or tear caused due to special use by the Lessee with
      respect to the Building, fixtures or facilities and the Lessor may request
      that the Lessee pay the cost thereof.
	3.	
            	If the Lessee
      does not remove its properties in the Building even after this Agreement
      is

    

     

    - 5 - 

     

    

    
    

    
      	 	
            	terminated and the Building is surrendered by the Lessee, the
      Lessor may, at its discretion, dispose of such properties considering that
      the Lessee has assigned such properties to the Lessor for free. In such
      case, the Lessor may request that the Lessee pay the cost for removing
      such properties. If such properties were owned by a third party, the
      Lessee shall indemnify the Lessor for damages claimed by such third party
      and any other expenses borne by the Lessor so long as the Lessor is in
      good faith and without negligence.
	4.	     	Upon
      the surrender of the Building, the Lessee shall not make any claims
      against the Lessor regardless of the reasons or nature of such claims,
      including any claim for the reimbursement of the necessary expenses or
      useful expenses incurred by the Lessee in connection with the Building,
      compensation for moving or removal, or key money. In addition, the Lessee
      shall not request that the Lessor purchase fixtures and facilities
      installed in the Building at the Lessee’s cost.
	
            	
            	 
	
              Article 16
      (Damages Incurred until Completion of Surrender)

            
	
            	
            	
              If the Lessee
      fails to surrender the Building upon termination of this Agreement, the
      Lessee shall pay to the Lessor damages equivalent to twice the amount of
      the rent for the period from the day following the date of termination of
      this Agreement to the date of completion of the
  surrender.

            
	
            	
            	 
	
              Article 17
      (Entry)

            
	1.	
            	Unless otherwise required by law
      or ordinance, the Lessor shall not enter into the Building without prior
      written consent of the Lessee; provided, however, that the Lessee shall
      not unreasonably withhold such approval in case where, in the reasonable
      judgment of the Lessor, there exists any dangerous condition causing
      damage or injury to the Building or neighbors or neighboring Building. If
      any damage occurs due to rejection by the Lessee of such approval, the
      Lessee shall indemnify from and hold the Lessor and any third party
      harmless against any damage suffered thereby.
	2.	
            	If the Lessor or a person
      designated by the Lessor enters the Building in accordance with Article
      17.1, the entering party shall keep any trade secret of the Lessee
      obtained upon the entry in confidence not only during the term of this
      Agreement but also after the termination of this Agreement and shall not
      divulge it to a third party.
	
            	
            	 
	
              Article 18
      (Exemption of Liability)

            
	
            	
            	
              The Lessor
      shall not be liable for any damage incurred by the Lessee due to cause,
      such as force majeure, fire, theft, riot, or damage or operation of the
      Building, equipment for electricity, water or air conditioning, or other
      equipment, unless the Lessor fails to act with
  the

            

    

    - 6 - 

     

    

    
    

    
      	 	
            	
              due care of a
      good manager or commits willful misconduct or gross
      negligence.

            
	    	
            	 
	
              Article 19
      (Confidentiality)

            
	
            	
            	
              Neither the
      Lessor nor the Lessee shall disclose the information about the parties
      concerned obtained under or in connection with this Agreement to a third
      party unless the disclosure is necessary under the Applicable Laws or upon
      request from the governmental authorities or otherwise agreed between the
      parties, or shall use it for any other purpose than the purpose of this
      Agreement.

            
	
            	
            	 
	
              Article 20
      (Amendment to this Agreement)

            
	
            	
            	
              The provisions
      of this Agreement may be amended or modified only with the written consent
      of both parties.

            
	
            	
            	 
	
              Article 21
      (Jurisdiction)

            
	 	
            	
              The Lessor and
      the Lessee agree that any dispute arising in connection with this
      Agreement shall be submitted to the exclusive jurisdiction of the Tokyo
      District Court as the court of first instance.

            
	
            	
            	 
	
              Article 22
      (Good Faith Consultation)

            
	
            	     	
              Any doubts in
      relation to the interpretation or application of the provisions of this
      Agreement or any matters not provided for in this Agreement shall be
      resolved upon consultation in good faith between the Lessor and the Lessee
      in accordance with the related laws and ordinances and
      customs.

            
	
            	
            	 
	
              Article 22
      (Negotiation for the Purchase of the Building)

            
	
            	
            	
              The Lessor
      hereby grants to the Lessee the first refusal right (the “Option”) to buy
      the Building and the underlying land (the “Real Building”) exercisable
      during the term of the lease, subject to the terms and conditions
      mentioned below:

            
	
            	
            	(a)	
            	The Lessor and the Lessee shall
      determine the size of the underlying land and identify the boundaries of
      parcel of such land;
	
            	
            	(b)	
            	The price for the Real Building
      shall be the average market price appraised by two real Building
      appraisers practicing in Akita, each one of them appointed by the Lessor
      and the Lessee, respectively;
	
            	
            	(c)	     	The Lessor and the Lessee shall
      negotiate in good faith the terms and conditions of the Service Agreement
      for the use by the Lessee of the cafeteria and the parking lots in the
      Akita Facility.
	
            	
            	(d)	
            	If the Lessee and the Lessor
      agree to the matters mentioned in (a) to (c) above, the terms
  and

    

     

    - 7 - 

     

    

    
    

    conditions of such sale and purchase shall be those as may be generally
used in the sale and purchase agreements for real properties for factory use in
Akita; Provided, however, that the Lessee may designate a third party nominated
by the Lessee as the buyer from among Migdal Company. 

     

    IN WITNESS WHEREOF,
the parties caused this Agreement to be signed and sealed in duplicate, and each
party shall retain one copy. 

     

    Date: April 1, 2010

     

     

    
      	
              Lessor:   

            	
              /s/ Akio
      Ogasawara

            	 
	
              Name:

            	
              Akio Ogasawara

            
	
              Title:

            	
              Representative Director, Alpha Electronics
      Corp.

            

    

     

     

     

    
      	
              Lessee:   

            	
              /s/ Masaharu
      Ozawa

            	 
	
              Name:

            	
              Masaharu Ozawa

            
	
              Title:

            	
              Representative Director, Vishay Japan Co.,
      Ltd.

            

    

     

     

    - 8 - 

     

    

    
    

    Exhibit 1 

     

     

     

    Drawing of the Leased Space

     

    [Map of the Akita Facility
identifying
the Building that is the subject of the Lease

    Agreement.]

     

     

     

     

     

     

     

     

     

     

     

     

     

    - 9 -

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