Document:

exhibit10-4.htm

    FORM OF EMPLOYEE MATTERS
AGREEMENT

     

    by and
between

     

    VISHAY INTERTECHNOLOGY,
INC.

     

    and

     

    VISHAY PRECISION GROUP,
INC.

     

    Dated _____,
2010

     

    

    
    

     

    EMPLOYEE MATTERS AGREEMENT 

     

         This EMPLOYEE MATTERS AGREEMENT (the “Agreement”) is entered into _______, 2010, by and
between Vishay Intertechnology,
Inc., a Delaware
corporation (“Vishay”), and Vishay Precision Group, Inc., a Delaware corporation (“VPG”) (each a “Party” and together the “Parties”).

     

    RECITALS 

     

         WHEREAS, the Board
of Directors of Vishay has determined that it is appropriate and desirable to
separate Vishay and VPG into two publicly-traded companies by separating from
Vishay and transferring to VPG Vishay’s measurement and foil resistor
businesses, and related assets and liabilities; 

     

         WHEREAS, to
effectuate the distribution, the Parties entered into that certain Master
Separation and Distribution Agreement, dated as of , 2010 herewith (the
“Separation Agreement”); and

     

         WHEREAS, pursuant
to the Separation Agreement, Vishay and VPG have agreed to enter into this
Agreement for the purpose of allocating between them assets, liabilities and
responsibilities with respect to employee compensation and benefit plans and
arrangements;

     

         NOW, THEREFORE, in
consideration of the foregoing premises, the mutual promises and covenants
hereinafter set forth, and 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 AND INTERPRETATION

     

         Section 1.1 Definitions. The following terms shall have the meanings
assigned in this Section:

     

         “Account Transfer Date” means, with respect to any Vishay Benefit
Plan, the date on which accounts, assets and liabilities of such Vishay Benefit
Plan are transferred to the corresponding VPG Benefit Plan. 

     

         “Action” means any claim, demand, action, suit,
counter-suit, arbitration, inquiry, proceeding or investigation by or before any
Governmental Authority and shall include any negotiations in settlement of or in
lieu of an Action. 

     

         “Agreement” means this Employee Matters
Agreement.

     

         “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. 

     

    1 

     

    

    
    

     

         “Benefit Plan” means, with respect to an entity, each plan,
program, policy, on-going arrangement, agreement, payroll practice, contract,
insurance policy or commitment that is an employment, consulting,
non-competition or deferred compensation agreement, or an executive
compensation, incentive bonus, pension, profit-sharing, savings, retirement,
supplemental retirement, stock option, restricted stock unit, phantom stock,
other equity-based compensation, severance pay, life, health, hospitalization,
sick leave, vacation pay, disability or accident insurance plan or other
employee benefit plan, program, arrangement, agreement or commitment that covers
employees sponsored or maintained by such entity.

     

         “COBRA” means the continuation coverage requirements
for “group health plans” pursuant to Code Section 4980B and ERISA Sections 601
through 608. 

     

         “COBRA Beneficiary” means an individual who is receiving or who
is entitled to receive COBRA coverage. 

     

         “Code” means the Internal Revenue Code of 1986, as
amended, including any proposed, temporary or final regulation and other
regulatory guidance in force under that provision.

     

         “Contract” means any contract, agreement, lease,
purchase and/or commitment, license, consensual obligation, promise or
undertaking (whether written or oral and whether express or implied) that is
legally binding on any Person or any part of its property under Applicable Law,
including all claims or rights against any Person, choses in action and similar
rights, whether accrued or contingent with respect to any such contract,
agreement, lease, purchase and/or commitment, license, consensual obligation,
promise or undertaking, but excluding this Agreement and the Separation
Agreement, save as otherwise expressly provided in this Agreement or in the
Separation Agreement. 

     

         “Distribution” means the distribution of all of the
outstanding shares of VPG Common Stock and VPG Class B Common Stock to the
holders of Vishay Common Stock and Vishay Class B Common Stock,
respectively.

     

         “Distribution Date” means the date determined by the Board of
Directors of Vishay as the date on which the Distribution shall be effected.

     

         “ERISA” means the Employee Retirement Income
Security Act of 1974, as amended, including any proposed, temporary or final
regulation and other regulatory guidance in force under that
provision.

     

         “Existing VPG Benefit Plans” means the Benefit Plans sponsored or
maintained by members of the VPG Group in the United States as of December 31,
2009 which are listed on Schedule 1 to this Agreement. 

     

         “FSA Plan” means a health care flexible spending
account plan or dependent care flexible spending account plan. 

     

         “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. 

     

    2 

     

    

    
    

     

         “Group” means the Vishay Group or the VPG Group, as
the context requires. 

     

         “Health and Welfare Plans” means benefit plans providing health, life,
dental, vision, prescription drug, short-term disability, long-term disability,
and/or educational assistance coverage. 

     

         “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, controversies, doings, omissions,
variances, 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

     

         “Measurement Group” means Vishay Measurements Group, Inc., a
Wholly-owned Subsidiary of VPG. 

     

         “MGF Business” means the measurements and foil resistor
business owned and operated, indirectly or directly, by Vishay prior to the
Distribution, to be owned and operated, directly or indirectly, by VPG after the
Distribution. 

     

         “Parties” shall have the meaning assigned thereto in
the preamble to this Agreement.

     

         “Per Share Market Value” has the meaning assigned thereto in Section
5.2. 

     

         “Person” means an individual, a partnership, a
corporation, a limited liability company, an association, a joint stock company,
a trust, a joint venture, an unincorporated organization or a Governmental
Authority. 

     

         “QDRO” has the meaning assigned thereto in Section
3.1(c). 

     

         “Separation” means the multi-step process described in
Article II of the Separation Agreement by which the MGF Business shall be
transferred, directly or indirectly, from Vishay and members of the Vishay Group
to VPG and members of the VPG Group. 

     

         “Separation Agreement” has the meaning assigned thereto in the
recitals to this Agreement.

     

    3

     

    

    
    

     

         “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. 

     

         “Taxes” has the meaning set forth in the Tax Sharing
Agreement, substantially in the form set forth as Exhibit E to the Separation
Agreement. 

     

         “Transfer Date” means, with respect to any Vishay Employee,
the date such Vishay Employee becomes a VPG Employee. In the case of employees
of the Measurements Group who participated in any Vishay Benefit Plans and who
cease to participate in such Vishay Benefit Plans and commence participation in
the corresponding VPG Benefit Plans, the date of such transfer to VPG Benefit
Plans shall be treated as such individuals’ Transfer Date 

     

         “Vishay” has the meaning assigned thereto in the
preamble to this Agreement.

     

         “Vishay 401(k) Plan” means the Vishay Employee Savings Plus Plan.

     

         “Vishay Benefit Plan” means, at any relevant time, any Benefit
Plan sponsored, maintained or contributed to by any member of the Vishay Group.

     

         “Vishay Class B Common Stock” means the outstanding shares of Class B
common stock, $0.10 par value of Vishay. 

     

         “Vishay Common Stock” means the outstanding shares of common
stock, $0.10 par value, of Vishay.

     

         “Vishay Employee” means any individual who, at the relevant
time, is, or is expected to be, employed by Vishay or any member of the Vishay
Group, including active employees and employees on vacation and approved leave
of absence (including maternity, paternity, family, sick leave, qualified
military service under the Uniformed Services Employment and Reemployment Rights
Act of 1994, short- or long-term disability leave, leave under the Family
Medical Leave Act and other approved leave).

     

         “Vishay FSA Plan” has the meaning assigned thereto in Section
4.2(a). 

     

         “Vishay Group” means Vishay and each Subsidiary of Vishay
and each other Person that is or is anticipated to be controlled directly or
indirectly by Vishay immediately after the Distribution, provided that the Vishay Group shall not include any
member of the VPG Group. 

     

         “Vishay KEWAP” means the Vishay Intertechnology, Inc.
Deferred Compensation Plan, also referred to as the Vishay Key Employee Wealth
Accumulation Plan. 

     

    4

     

    

    
    

     

         “Vishay NQDB Plan” means the Vishay Non-qualified Retirement
Plan.

     

         “Vishay Participant” means a participant in a Vishay Benefit Plan
who, at the relevant time, is (i) a Vishay Employee, (ii) a former Vishay
Employee who is not a VPG Employee, or (iii) a beneficiary, dependent or
alternate payee of any of the foregoing.

     

         “Vishay Retirement Plan” means The Vishay Retirement Plan, a
qualified, defined benefit plan.

     

         “Vishay Service
Programs/Policies” means,
collectively, the Vishay vacation, short-term disability and other Vishay
programs and policies to the extent eligibility for or the level of benefits
thereunder depends on length of service.

     

         “Vishay Welfare Plan” has the meaning assigned thereto in Section
4.1(a).

     

         “VPG” has the meaning assigned thereto in the
preamble to this Agreement.

     

         “VPG 401(k) Plan” has the meaning assigned thereto in Section
3.1(b).

     

         “VPG Benefit Plan” means any Benefit Plan sponsored, maintained
or contributed to by any member of the VPG Group.

     

         “VPG Class B Common Stock” means the outstanding shares of Class B
common stock, $0.10 par value, of VPG. 

     

         “VPG Common Stock” means the outstanding shares of common
stock, $0.10 par value, of VPG.

     

         “VPG Employee” means any individual who, at the relevant
time, is employed by VPG or any member of the VPG Group, including active
employees and employees on vacation and approved leave of absence (including
maternity, paternity, family, sick leave, qualified military service under the
Uniformed Services Employment and Reemployment Rights Act of 1994, short- or
long-term disability leave, leave under the Family Medical Leave Act and other
approved leave).

     

         “VPG FSA Plans” has the meaning assigned thereto in Section
4.2(b).

     

         “VPG Group” means VPG and each Subsidiary of VPG and
each other Person that is or is anticipated to be controlled directly or
indirectly by VPG immediately after the Distribution. 

     

         “VPG KEWAP” has the meaning assigned thereto in Section
3.2(b).

     

         “VPG NQDP Plan” has the meaning assigned thereto in Section
3.4(b). 

     

         “VPG Participant” means any individual who, at the relevant
time, is (i) a VPG Employee or (ii) a beneficiary, dependent or alternate payee
of a VPG Employee.

     

    5 

     

    

    
    

     

         “VPG Service
Programs/Policies” means,
collectively, the VPG vacation, short-term disability and other VPG programs and
policies to the extent eligibility for or the level of benefits thereunder
depends on length of service.

     

         “VPG Stock Incentive Program” means the Vishay Precision Group, Inc. 2010
Stock Incentive Program, substantially in the form of the attached Exhibit A.

     

         “VPG Welfare Plan” has the meaning assigned thereto in Section
4.1(b). 

     

         “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.

     

    ARTICLE II
GENERAL
PRINCIPLES

     

         Section 2.1 Transfer of Employees. Prior to the Distribution Date, to the
extent not previously transferred, all Vishay Employees that are or as of the
Distribution Date are expected to be, primarily employed in the MGF Business, as
well as any other Vishay Employees that Vishay and VPG determine should become
VPG Employees, shall be transferred to the VPG Group, it being acknowledged that
most such employees who were not previously employed by the VPG Group were
transferred effective January 1, 2010. Notwithstanding the foregoing, any such
employees who are on an approved leave of absence (including maternity,
paternity, family, sick leave, qualified military service under the Uniformed
Services Employment and Reemployment Rights Act of 1994, short-term or long-term
disability leave, leave under the Family Medical Leave Act and other approved
leave) prior to and as of the Distribution Date shall not be transferred to VPG
or a member of the VPG Group unless and until they return to work. Such transfer
shall not be treated as a separation from service for purposes of any Vishay
Benefit Plan or any agreement (or any benefit thereunder) which is subject to
the provisions of Section 409A of the Code.

     

         Section 2.2 Assumption and Retention of
Liabilities. 

     

              (a) As of the Distribution Date, except as otherwise expressly provided for
in this Agreement or any other agreement by and between the Parties, and/or
their Affiliates, Vishay shall, or shall cause one or more other members of the
Vishay Group to, retain and Vishay hereby agrees to pay, perform, fulfill and
discharge, in due course in full: (i) all Liabilities under all Vishay Benefit
Plans with respect to the Vishay Employees; and (ii) any other Liabilities or
obligations expressly assigned to Vishay or any other member of the Vishay Group
under this Agreement.

     

              (b) From time to time after the Distribution Date, VPG shall promptly
reimburse Vishay, upon Vishay’s reasonable request and the presentation by
Vishay of such substantiating documentation as VPG shall reasonably request, for
the cost of any obligations or Liabilities satisfied or assumed by Vishay or the
Vishay Group following the Distribution Date that are, or that have been made
pursuant to this Agreement, the responsibility of VPG or the VPG Group. Except
as otherwise provided in this Agreement, any such request for reimbursement must
be made by Vishay not later than the first anniversary of the Distribution Date,
unless the obligations and Liabilities extend beyond the first
anniversary.

     

    6 

     

    

    
    

     

              (c) From time to time after the Distribution Date, Vishay shall promptly
reimburse VPG, upon VPG’s reasonable request and the presentation by VPG of such
substantiating documentation as Vishay shall reasonably request, for the cost of
any Liabilities satisfied or assumed following the Distribution Date by VPG or
the VPG Group that are, or that have been made pursuant to this Agreement, the
responsibility of Vishay or the Vishay Group. Except as otherwise provided in
this Agreement, any such request for reimbursement must be made by VPG not later
than the first anniversary of the Distribution Date, unless the obligations and
Liabilities extend beyond the first anniversary.

     

         Section 2.3 Existing VPG Benefit Plans. Anything to the contrary in this Agreement
notwithstanding, if a VPG Employee is a participant in an Existing VPG Benefit
Plan, including without limitation any Benefit Plan sponsored or maintained by
Measurements Group, VPG or another member of the VPG Group may either continue
the participation of the VPG Employee in such Existing VPG Benefit Plan or
transfer participation of the VPG Employee, and the assets attributable to the
VPG Employee’s participation in such plan, to a comparable VPG Benefit Plan
contemplated by this Agreement, provided that the comparable VPG Benefit Plan
shall have terms and conditions no less favorable to the VPG Employee than under
the Existing VPG Benefit Plan. Except to the extent of transfers of
participation contemplated in the previous sentence, all Existing VPG Benefit
Plans, including Benefit Plans sponsored or maintained by Measurements Group,
shall continue in effect as of the Distribution Date, and no changes in any such
Benefit Plans shall be made on account of the Distribution. 

     

         Section 2.4 VPG Employee Participation in Vishay Benefit
Plans. Except as otherwise
expressly provided for in this Agreement or as otherwise expressly agreed to in
writing between the Parties, each Vishay Employee who becomes a VPG Employee
shall cease to actively participate in, be covered by, accrue benefits under, be
eligible to contribute to or have any rights as an active participant under any
Vishay Benefit Plan effective as of a date on or after such VPG employee’s
Transfer Date, but in no event later than the Distribution Date. 

     

         Section 2.5 Service Credit. VPG, directly or through one or more other
members of the VPG Group, shall cause the VPG Service Programs/Policies and the
VPG Benefit Plans to provide each Vishay Employee who becomes a VPG Employee
credit for all purposes, including eligibility, vesting, determination of
benefit levels, and benefit accruals under the applicable VPG Service
Programs/Policies and VPG Benefit Plans for such VPG Employee’s service with any
member of the Vishay Group to the same extent such service was recognized by the
corresponding Vishay Service Programs/Policies and Vishay Benefit Plans;
provided that such service shall not be recognized to the extent that such
recognition would result in the duplication of benefits.

     

         Section 2.6 Vacation and Other Time-Off
Benefits. VPG or another
applicable member of the VPG Group shall credit each individual who becomes a
VPG Employee on or before the Distribution Date with the amount of accrued but
unused vacation time and other time-off benefits as such VPG Employee had with
the Vishay Group on the applicable Transfer Date. The VPG Employees for whom VPG
provides vacation and other time-off credits as described above shall not have a
right to a cash payment for their accrued but unused vacation time (including
banked vacation time) or other time-off benefits as a result of their ceasing to
be Vishay Employees.

     

    7 

     

    

    
    

     

         Section 2.7 Measurements Group
Employees. Employees of
the Measurements Group that participated in any Vishay Benefit Plans will cease
to participate in such Vishay Benefit Plans and commence participation in the
corresponding VPG Benefit Plans as of or on a date prior to the Distribution
Date, and such date shall be treated as such individuals’ Transfer Date for the
purpose of this transfer to the VPG Benefit Plans. 

     

    ARTICLE III
RETIREMENT
PLANS

     

         Section 3.1 401(k) Plans. 

     

              (a) Vishay 401(k) Plan. Except as provided in Section 3.1(c) below,
following the Distribution Date the Vishay Group shall retain all obligations
and Liabilities under, or with respect to, the Vishay 401(k) Plan. 

     

              (b) VPG 401(k) Plan. Effective on or about March 1, 2010, VPG
has, or has caused another member of the VPG Group to, establish a qualified
defined contribution retirement plan and trust for the benefit of VPG
Participants (the “VPG 401(k) Plan”). VPG shall be responsible for taking all
necessary, reasonable and appropriate action to maintain and administer the VPG
401(k) Plan so that it is qualified under Code Section 401(a) and the trust
thereunder is and continues to be exempt under Code Section 501(a). VPG (acting
directly or through other members of the VPG Group) shall be responsible for any
and all Liabilities and other obligations with respect to the VPG 401(k) Plan.
As of the date of the establishment of the VPG 401(k) Plan and through the
Distribution Date, the VPG 401(k) Plan shall include terms that are
substantially the same as the terms of the Vishay 401(k) Plan. 

     

              (c) Transfer of Vishay 401(k) Plan
Assets. On an Account
Transfer Date within a reasonable period of time before the Distribution Date,
Vishay shall cause the accounts and underlying assets and Liabilities (including
any outstanding loan balances and any qualified domestic relations orders
(“QDROs”)) in the Vishay 401(k) Plan attributable to
VPG Employees who are employed by VPG as of the Account Transfer Date and all of
the assets in the Vishay 401(k) Plan trust related thereto to be transferred
(based on the investments in place on or as soon as administratively practicable
before the Account Transfer Date) to the VPG 401(k) Plan, and VPG shall cause
the VPG 401(k) Plan and trust to accept such transfer of accounts and underlying
assets, Liabilities, loans and QDROs. Effective as of the date of such transfer,
VPG shall cause the VPG 401(k) Plan to assume and to fully perform, pay and
discharge all obligations of the Vishay 401(k) Plan relating to the accounts of
VPG Participants as of the Account Transfer Date, to the extent the assets,
liabilities, loans and QDROs related to those accounts are actually transferred
from the Vishay 401(k) Plan to the VPG 401(k) Plan, and the VPG 401(k) Plan
shall satisfy all protected benefit requirements under the Code, ERISA and
Applicable Law with respect to the transferred accounts. The transfer of assets
shall be conducted in accordance with Code Section 414(l), Treasury Regulation
Section 1.414(1)-1, and ERISA Section 208. The Vishay 401(k) Plan accounts of
individuals who become VPG Employees after the Account Transfer Date shall be
governed by the terms of the Vishay 401(k) Plan.

     

    8

     

    

    
    

     

              (d) Continuation of Elections. The VPG 401(k) Plan shall recognize and
maintain Vishay 401(k) Plan elections or designations, including participant
deferral elections, investment elections, beneficiary designations, and the
rights of alternate payees under QDROs with respect to VPG Participants, to the
extent such elections or designations are available under the VPG 401(k) Plan
and continued pursuant to procedures adopted under the VPG 401(k)
Plan.

     

              (e) Contributions through the Account Transfer
Date. All contributions,
including employer matching contributions, payable to the Vishay 401(k) Plan
through the applicable Transfer Date with respect to employee deferrals and
contributions for Vishay Employees who become VPG Employees on or before the
Account Transfer Date, determined in accordance with the terms and provisions of
the Vishay 401(k) Plan, ERISA and the Code, shall be paid by Vishay or another
member of the Vishay Group to the Vishay 401(k) Plan prior to the Account
Transfer Date. 

     

         Section 3.2 KEWAPs.

     

              (a) Vishay Key Employee Wealth Accumulation
Plan. Except as provided
in Section 3.2(c) below, following the Distribution Date the Vishay Group shall
retain all obligations and Liabilities under, or with respect to, the Vishay
KEWAP.

     

              (b) VPG Key Employee Wealth Accumulation
Plan. Effective on or
about January 1, 2010, VPG has, or has caused another member of the VPG Group
to, establish a non-qualified deferred compensation plan (the “VPG KEWAP”) and a related rabbi trust to benefit, on a
prospective basis, VPG Employees who participated in the Vishay KEWAP
immediately prior to their transfer to the VPG Group and other eligible VPG
Employees.

     

              (c) Transfer of Vishay KEWAP Accounts and Rabbi
Trust Amounts. On an
Account Transfer Date within a reasonable period of time before the Distribution
Date, Vishay shall cause the accounts in the Vishay KEWAP attributable to VPG
Employees who are employed as of the Account Transfer Date and the amounts in
the Vishay KEWAP rabbi trust related thereto to be transferred (based on the
investments in place on or as soon as administratively practicable before the
Account Transfer Date) to the VPG KEWAP. VPG shall cause the VPG KEWAP and the
VPG KEWAP rabbi trust to accept such transfer of accounts and associated amounts
and, effective as of the Account Transfer Date, to assume and to fully perform,
pay and discharge all obligations of the Vishay KEWAP relating to the accounts
of VPG Participants as of the Account Transfer Date, to the extent the amounts
related to those accounts are actually transferred from the Vishay KEWAP to the
VPG KEWAP. The account balances in the Vishay KEWAP of any Vishay Employee or
former Vishay Employee who becomes a VPG Employee after the Account Transfer
Date, shall remain in the Vishay KEWAP, and shall continue to be governed by the
terms of the Vishay KEWAP. 

     

              (d) Continuation of Elections. The VPG KEWAP will recognize and maintain
Vishay KEWAP elections or designations, including participant deferral elections
(to the extent possible), investment elections, beneficiary designations, and
the rights of alternate payees under QDROs with respect to VPG Employees, to the
extent such elections or designations are available under the VPG KEWAP and
continued pursuant to procedures adopted under the VPG KEWAP.

     

    9 

     

    

    
    

     

              (e) Credits and Contributions through the Transfer
Date. All amounts
scheduled to be credited to the Vishay KEWAP and contributed to the related
rabbi trust through the applicable Transfer Date with respect to Vishay
Employees who become VPG Employees on or before the Account Transfer Date,
determined in accordance with the terms and provisions of the Vishay KEWAP,
ERISA and the Code, shall be credited and paid by Vishay or another member of
the Vishay Group to the Vishay KEWAP and the related rabbi trust prior to the
Account Transfer Date. 

     

         Section 3.3 Vishay Retirement Plan. Following the Distribution Date, the Vishay
Group shall retain all obligations and Liabilities under, or with respect to,
the Vishay Retirement Plan. Any accrued benefits of VPG Employees under Vishay
Retirement Plan shall remain with the Vishay Retirement Plan and shall be
governed by the terms and conditions of the Vishay Retirement Plan. Vishay
Employees who separate from service with the Vishay Group to become VPG
Employees shall become eligible for distribution of their benefits under the
Vishay Retirement Plan in accordance with that plan’s terms and administrative
procedures. The Vishay Group shall be responsible for any notices, forms and
filings that are required to be furnished to a governmental agency as a result
of the Distribution.

     

         Section 3.4 NQDB Plans.

     

              (a) Vishay NQDB Plan. Except as provided in Section 3.4(c) below,
following the Distribution Date the Vishay Group shall retain all obligations
and Liabilities under, or with respect to, the Vishay NQDB Plan.

     

              (b) VPG NQDB Plan. Effective as of January 1, 2010, VPG
established a non-qualified defined benefit retirement plan (the “VPG NQDB
Plan”) and a related rabbi trust to maintain the accounts of VPG Participants
who had accounts in the Vishay NQDB Plan immediately prior to the Distribution
Date. 

     

              (c) Transfer of Vishay NQDB Plan Accounts and
Rabbi Trust Amounts. On an
Account Transfer Date within a reasonable period of time before the Distribution
Date, Vishay shall cause the accounts in the Vishay NQDB Plan attributable to
VPG Employees who are employed by the VPG Group as of the Account Transfer Date
and the amounts in the Vishay NQDB Plan rabbi trust related thereto to be
transferred (based on the investments in place on or as soon as administratively
practicable before the Account Transfer Date) to the VPG NQDB Plan. VPG shall
cause the VPG NQDB Plan and the VPG NQDB Plan rabbi trust to accept such
transfer of accounts and associated amounts and, effective as of the Account
Transfer Date, to assume and to fully perform, pay and discharge all obligations
of the Vishay NQDB Plan relating to the accounts of VPG Participants as of the
Account Transfer Date, to the extent the amounts related to those accounts are
actually transferred from the Vishay NQDB Plan to the VPG NQDB Plan. The account
balances in the Vishay NQDB Plan of Vishay Employees or former Vishay Employees
who become VPG Employees after the Account Transfer Date shall remain in the
Vishay NQDB Plan, and shall continue to be governed by the terms of the Vishay
NQDB Plan.

     

    10 

     

    

    
    

     

    ARTICLE IV
HEALTH AND WELFARE PLANS

     

         Section 4.1 VPG Welfare Plans.

     

              (a) Vishay Welfare Plan. Following the Distribution Date, the Vishay
Group shall retain all obligations and Liabilities under, or with respect to,
the Health and Welfare Benefit Plans maintained for the benefit of Vishay
Employees (the “Vishay Welfare
Plans”). 

     

              (b) Establishment of VPG Welfare
Plans. Effective as of or
before the Distribution Date, VPG will, or will cause or a member of the VPG
Group to, establish one or more Health and Welfare Benefit Plans for the benefit
of eligible VPG Participants (the “VPG Welfare Plans”), who, as of the date of their transfer to
the VPG Group, are participants in the Vishay Welfare Plans. The VPG Welfare
Plans shall provide health, life, dental, vision, prescription drug, short-term
disability, long-term disability, and educational assistance coverage benefits
prior to and as of the Distribution Date on terms substantially the same as are
provided under the Vishay Welfare Plans. 

     

              (c) Terms of Participation in VPG Welfare
Plans. The VPG Welfare
Plans shall (i) waive all limitations as to preexisting conditions, exclusions,
and service conditions with respect to participation and coverage requirements
applicable to VPG Employees, other than limitations that were in effect with
respect to participants as of the applicable Transfer Date under the
corresponding Vishay Welfare Plan, (ii) waive any waiting period limitation or
evidence of insurability requirement that would otherwise be applicable to a VPG
Employee following the applicable Transfer Date to the extent such VPG
Participant had satisfied any similar limitation under the corresponding Vishay
Welfare Plan, and (iii) honor any deductibles, out-of-pocket maximums and
co-payments incurred by VPG Employees under the corresponding Vishay Welfare
Plan in satisfaction of the applicable deductibles, out-of-pocket expenses or
co-payments under such Vishay Welfare Plan for calendar year 2010. 

     

         Section 4.2 FSA Plans. 

     

              (a) Vishay FSA Plans. Except as provided in Section 4.2(c) below,
following the Distribution Date the Vishay Group shall retain all obligations
and Liabilities under, or with respect to, the FSA Plans of the Vishay Group
(the “Vishay FSA Plans”). 

     

              (b) VPG FSA Plans. Effective as of January 1, 2010, VPG has, or
has caused another member of the VPG Group to, establish one or more health care
and dependent care FSA Plans (the “VPG FSA Plans”). The VPG FSA Plans shall provide benefits
prior to and as of the Distribution Date that are substantially the same as
provided under the Vishay FSA Plans. 

     

    11 

     

    

    
    

     

              (c) To the extent that the Transfer Date of a VPG Employee occurs between
January 1, 2010 and the Distribution Date, the VPG FSA Plans shall reimburse
medical expenses incurred by the VPG Employees at any time during the Vishay FSA
Plans’ plan year (including claims incurred but unpaid prior to the Distribution
Date), up to the amount of the individual’s election and reduced by
amounts previously reimbursed by the corresponding Vishay FSA Plan. The debit
and credit account balances, if any, of any such VPG Employee under the Vishay
FSA Plans shall be transferred within a reasonable period prior to the
Distribution Date to the VPG FSA Plans and shall thereafter be administered in
accordance with the terms of the VPG FSA Plans. If a VPG Employee whose account
is transferred to the VPG FSA Plans receives reimbursements that exceed the
amount he or she has contributed under the corresponding Vishay FSA Plan as of
the applicable Transfer Date, irrespective of whether such payment was made
before or after such Transfer Date, VPG or another member of the VPG Group shall
collect that VPG Employee’s payroll contributions in accordance with the VPG FSA
Plans’ procedures and remit them on a monthly basis to Vishay until Vishay has
recouped the total reimbursements paid to or for that VPG Employee under the
applicable Vishay FSA Plan for the year; provided that such contributions and remittances shall
cease upon the VPG Employee’s cessation of participation in the applicable VPG
FSA Plan. Balances in any Vishay FSA Plan of any Vishay Employee who becomes a
VPG Employee after the Distribution Date will not be transferred to the
corresponding VPG FSA Plan and will be treated in accordance with the terms and
procedures of the Vishay FSA Plans. 

     

         Section 4.3 Claims. 

     

              (a) General. Vishay, acting directly or through any other
member of the Vishay Group, shall cause each Vishay Welfare Plan to fully
perform, pay and discharge, within the timeframes applicable under such plan,
all claims that arise with respect to VPG Participants under the Vishay Welfare
Plan until the applicable Transfer Date and (ii) VPG, acting directly or through
any other member of VPG Group, shall cause the corresponding VPG Welfare Plan to
fully perform, pay and discharge, within the timeframes applicable under such
plan, all claims that arise under such VPG Welfare Plan on and after the
applicable Transfer Date.

     

              (b) Claim Arisen Definition. For purposes of this Section 4.3, a claim is
deemed to arise (i) with respect to medical, dental and/or vision benefits, upon
the rendering of health services giving rise to such claim; (ii) with respect to
prescription drug benefits, upon the purchase of the prescription drug; (iii)
with respect to disability benefits, upon the date of an individual’s
disability, as determined by the disability benefit insurance carrier or claim
administrator, giving rise to such claim; (iv) with respect to a period of
continuous hospitalization, upon the date of admission to the hospital; and (v)
with respect to death benefits, on the date of death.

     

         Section 4.4 Advances. VPG shall reimburse Vishay for the amount of
any advances made by Vishay or any other member of the Vishay Group prior to the
applicable Transfer Date under any Benefit Plan or otherwise to the extent that
such advance relates to service on or after the applicable Transfer Date or that
under the terms of the Agreement is a Liability of the VPG Group. 

     

         Section 4.5 Workers’ Compensation
Liabilities. 

     

              (a) Pre-Transfer Claims. The VPG Group shall be responsible for any
workers’ compensation Liability up to the amount accrued on its balance sheet on
the Transfer Date. The VPG Group shall not assume, retain or otherwise be
responsible for any workers' compensation Liability in excess of the amount
accrued relating to, arising out of, or resulting from a compensable injury or
disease of a VPG employee before the applicable Transfer Date.

     

    12

     

    

    
    

     

              (b) Post- Transfer Claims. All workers’ compensation Liabilities
relating to, arising out of, or resulting from any compensable injury or
occupational disease of a VPG Employee occurring on or after the applicable
Transfer Date shall be the responsibility of the VPG Group. 

     

              (c) General. For purposes of this Section 4.6, a
compensable injury shall be deemed to occur upon the occurrence of the event
giving rise to eligibility for workers’ compensation benefits and an occupation
disease shall be deemed to occur when it first becomes manifest. Vishay and VPG
shall cooperate in good faith with respect to the notification to appropriate
Governmental Authorities in order to facilitate the issuance of new, or the
transfer of existing, workers’ compensation insurance policies and claims
handling contracts occasioned by reason of the separation. 

     

    ARTICLE V
EQUITY AWARDS

     

         Section 5.1 Approval of VPG Plan by Vishay as Majority
Shareholder. Effective
prior to the Distribution Date, VPG shall adopt the VPG Stock Incentive Program.
Vishay, as VPG’s sole shareholder, shall approve the VPG Stock Incentive Program
prior to the Distribution Date. Vishay shall, or shall cause VPG to, register
all shares of VPG Common Stock issuable under the VPG Stock Incentive Program on
Form S-8 (or any successor form promulgated by the Securities and Exchange
Commission under the Securities Act of 1933, as amended) prior to the
Distribution Date. 

     

         Section 5.2 Phantom Stock and Restricted Stock
Units. Effective as of the
Separation, Vishay shall amend each outstanding grant of phantom stock granted
pursuant to the Vishay Intertechnology Inc. Senior Executive Phantom Stock Plan
and each outstanding grant of restricted stock units granted pursuant to the
Vishay Intertechnology, Inc. 2007 Stock Incentive Program, as amended and
restated effective April 2008, to increase the number of shares of phantom stock
and the number of restricted stock units applicable to such grants. The
aggregate number of shares of phantom stock and restricted stock units
outstanding following the Separation shall be determined according to the
following formula: 

     

                                               
NVs   =
  NV 
x [1 + r x PMs / PVs],

     

    where

     

    
      	 	NVs	
            	is the number of shares of Vishay Common
      Stock underlying the restricted stock units or phantom shares following
      the Distribution Date;
	      	
            
	
            	NV	
            	is the number of shares Vishay Common
      Stock underlying the restricted stock units or phantom shares prior to the
      Distribution Date;
	
            	
            	     
    	
            
	
            	PMs	
            	is the Per Share Market Value of VPG Common Stock following the
      Distribution Date;

    

    13 

     

    

    
    

     

    
      	
            	PVs	
            	is the Per Share Market Value of Vishay
      Common Stock following the Distribution Date; and
	      	 	      	  
	
            	r	
            	is the distribution ratio for the
Distribution.

    

    “Per Share Market Value” of the VPG Common Stock or the Vishay Common
Stock means the average Daily Market Price of the respective security for the
first ten (10) consecutive trading days following the Distribution Date.
“Daily Market Price” for a security on any trading day means the
volume-weighted average of the per share selling prices of the security on the
New York Stock Exchange or other principal United States securities exchange or
inter-dealer quotation system on which the security is then listed or quoted;
or, if there are no reported sales of the security on a trading day, the average
of the high bid and low ask price for the security on such trading day; or, if
there are no high bid and low ask prices on such trading day, the Daily Market
Price shall be the per share fair market value of the security as determined by
the board of directors of the issuer of the security in good faith.

     

         Section
5.3 Stock Options. 

     

             
(a) Stock Options Held by Vishay
Employees. Effective as of
the Distribution Date, Vishay
will amend each outstanding grant of stock options made pursuant to the Vishay
Intertechnology, Inc. 1998 Stock Option Program, the Vishay Intertechnology,
Inc. 2007 Stock Incentive Program, as amended and restated effective April 2008,
and the Amended and Restated 1998 Long-Term Incentive Plan of General
Semiconductor, Inc. to reduce the exercise price of each of the stock options
and increase the number of shares issuable upon exercise of each of the stock
options according to the following formulas:

     

    
      	EVs	
            	=   EV x
      PVs /
      (PVs + r x PPs)
	
            	
            	  
	and 	     	  
	
            	
            	  
	NVs	
            	=   NV
      x EV / EVs

    

    where 

     

    
      	 	EV	 	is the
      per share exercise price of the Vishay stock option prior to the
      Distribution Date;
	      	  	      	 
	
            	NV	
            	is the
      number of shares of Vishay Common Stock issuable upon exercise of the
      stock option prior to the Distribution Date;
	
            	  
	
            	EVs	
            	is the
      per share exercise price of the Vishay stock option following the
      Distribution Date;
	
            	  
	
            	PVs	
            	is the
      Per Share Market Value of Vishay Common Stock following the Distribution
      Date;
	
            	  	
            	 
	
            	NVs	
            	is the number of shares of Vishay Common
      Stock issuable upon exercise of the stock option following the
      Distribution Date;
	
            	  
	
            	PPs	
            	is the
      Per Share Market Value of VPG Common Stock following the Distribution
      Date; and

    

    14 

     

    

    
    

    
    

     

    
      	      	r	      	is the distribution ratio for the
Distribution.

    

     

    The other terms of the
Vishay stock options, including their remaining vesting schedule if any, shall
remain the same. 

     

              (b) Stock Options Held by VPG
Employees. Effective as of
the separation, VPG shall issue to VPG Employees who hold unvested Vishay stock
options that will be forfeited as a result of the Distribution stock options
under the VPG Stock Incentive Program in lieu of their Vishay stock options. In
addition, VPG shall offer to VPG Employees who hold vested Vishay stock options
the opportunity to replace those options with VPG stock options. In either case,
the exercise price of each of the VPG stock options and the number of shares of
VPG Common Stock issuable upon exercise of each of the stock options shall be
determined according to the following formulas: 

     

    
      	EPs	
            	=   EV x PPs / (PVs + (r x PPs))
	
            	
            	  
	and 	     	  
	
            	
            	  
	NPs	
            	=   NV
      x EV / EPs

    

    where 

     

    
      	 	EPs	
            	is the per share exercise price of the
      option to purchase VPG Common Stock;
	      	  	      	 
	
            	NPs	
            	is the number of shares of VPG Common
      Stock issuable upon exercise of the stock option;
and

    

    the other symbols have
the same values as those assigned above with respect to the formulas for
treatment of Vishay stock options.

     

    The other terms of the
VPG stock options shall be the same as the Vishay stock options that they are
intended to replace. In the case of VPG stock options issued in lieu of
forfeited Vishay stock options, the vesting schedule for the VPG stock options
shall be the same as the remaining vesting schedule of the forfeited Vishay
stock options. If the exercise price of any VPG stock options is less than the
market value of VPG Common Stock on the date the stock options are issued, VPG
may issue the VPG stock options according to a different formula in order to
comply with regulations under Section 409A of the Code. 

     

    ARTICLE VI 
NON-U.S. EMPLOYEES AND BENEFITS 

     

         As of or prior to the Distribution Date, to the extent not previously
transferred, all Vishay Employees that are resident outside of the United States
or otherwise are subject to non-U.S. law that are or as of the Distribution Date
are expected to be primarily employed in the MGF Business, as well as any other
such Vishay Employees that Vishay and VPG determine should become VPG Employees
shall be transferred to the VPG Group. Such transfers, as well as the transfer
of any related liabilities and Benefit Plans or accounts under Benefit Plans,
will be accomplished in accordance with applicable law and custom in each
location where such Vishay Employees are located. To the extent known as of the
date of this Agreement, Schedule A hereto sets forth the actions that shall be
taken in furtherance of the provisions of this Section in each applicable
jurisdiction.

     

    15

     

    

    
    

     

    ARTICLE VII
ADDITIONAL COMPENSATION MATTERS

     

         Section 7.1 Vishay Individual
Arrangements. Vishay
acknowledges and agrees that, except as otherwise provided herein, Vishay (or
another member of the Vishay Group) shall have full responsibility with respect
to any Liabilities and the payment or performance of any obligations arising out
of or relating to any employment, consulting, non-competition, retention or
other compensatory arrangement previously provided by any member of the Vishay
Group to any Vishay Participant, including life insurance policies not held in
any trust and covering any Vishay Participant. The Parties shall transfer or
assign to VPG or another member of VPG Group, and shall use commercially
reasonable efforts to cause their respective employees to consent to the
transfer or assignment of, the rights and Liabilities arising under any
agreements entered into between Vishay or another member of the Vishay Group and
VPG Employees who become VPG Employees prior to the Distribution Date and whose
agreements are not replaced with agreements with members of the VPG
Group.

     

         Section 7.2 Severance Benefits. Vishay and VPG acknowledge and agree that
the Separation and any transfer of employment from the Vishay Group to the VPG
Group by reason thereof will not constitute a termination of employment for
purposes of any policy, plan, program or agreement of Vishay or any member of
the Vishay Group that provides for the payment of severance, separation pay,
salary continuation or similar benefits in the event of a termination of
employment or a change in control. The Parties shall use their reasonable
commercial efforts to cause their respective employees to consent to the
amendment of any agreements entered into between Vishay or any other member of
the Vishay Group and VPG Employees who become VPG Employees prior to the
Distribution Date that are inconsistent with the preceding sentence.

     

         Section 7.3 Not a Change in Control. The Parties hereto acknowledge and agree
that the Separation will not constitute a “change in control” for purposes of
any Vishay Benefit Plan or VPG Benefit Plan.

     

         Section 7.4 COBRA Coverage. Except to the extent provided otherwise on
Schedule B: 

     

              (a) VPG and the VPG Welfare Plan will assume responsibility for compliance
with COBRA with respect to any COBRA Beneficiary who is entitled to COBRA
coverage in respect of an individual who is a participant in a VPG Welfare Plan
on or before the Distribution Date. VPG and the VPG Welfare Plan will assume the
responsibility for such COBRA compliance effective as of the date that the VPG
Employee with respect of whom the COBRA Beneficiary is entitled to COBRA
coverage becomes covered by the applicable VPG Welfare Plan. 

     

    16 

     

    

    
    

     

              (b) VPG and the VPG Welfare
Plan will assume responsibility for compliance with COBRA with respect to any
COBRA Beneficiary who is entitled to COBRA coverage in respect of such COBRA
Beneficiary’s employment with a member of the VPG Group on or before the
Distribution Date. VPG and the VPG Welfare Plan will assume the responsibility
for such COBRA compliance effective as of the date that the VPG Welfare Plan is
established. 

     

              (c) Vishay and the Vishay
Welfare Plan will retain responsibility for compliance with COBRA with respect
to all other individuals who are receiving or who are entitled to receive COBRA
coverage. 

     

         Section 7.5 Tax Matters. 

     

              (a) Tax Deductions in General. Subject to the provisions of Section 7.5(b),
the Parties agree to take the actions that are necessary or desirable to enable
the Party responsible for any payment under this Agreement to receive, to the
extent possible, the benefit of any tax deduction related to such payment. If
one Party receives a tax benefit as a result of any payment or benefit funded by
the other Party under this Agreement, the first Party shall reimburse the other
Party for that tax benefit at the time and to the extent that such tax benefit
is realized. 

     

              (b) Equity-Based Compensation
Deductions.
Notwithstanding the provisions of Section 7.5(a), the Parties agree that, to the
extent permitted by law, tax deductions for equity-based compensation described
in Section 5.3 shall be allocated to and claimed by the member or members of the
Vishay Group or the VPG Group, as the case may be, that employed the individual
receiving the compensation during the relevant vesting period based on the
number of months of such individual’s employment with such entity or
entities.

     

              (c) The member or members of
a Group claiming any tax deduction on account of compensation paid to a VPG
Employee shall be responsible for any tax reporting obligations, including but
not limited to the filing of any required form W-2, and payment of any taxes
imposed upon the employer in respect of the corresponding amounts, in proportion
to the amount claimed as a deduction. The Party in control of the payment of any
such amounts shall be responsible for effecting the withholding of any
applicable income and employment tax withholding required to be effected from
any such payment. The Parties shall cooperate with each other to facilitate any
required tax reporting obligations, including sharing, as relevant, information
regarding amounts withheld from the payments to the employees. To the extent
deductions cannot be claimed in the manner referenced in this Section 7.5(c), or
are disallowed or adjusted on audit, the entity that receives the tax benefit
shall reimburse the entity that would have received such tax benefit pursuant to
the preceding sentence as and when realized. To the extent such reimbursement is
treated as taxable income, the reimbursing party shall gross-up the
reimbursement amount for taxes.

     

              (d) Code Section 409A. Notwithstanding anything in this Agreement
to the contrary, the Parties agree to cooperate to minimize the loss of
deductions and to utilize commercially reasonable best efforts to have the
applicable plans, programs and arrangements comply with Section 409A of the
Code.

     

    17 

     

    

    
    

     

    ARTICLE VIII 

    INDEMNIFICATION

     

         Section 8.1 Indemnification by Vishay. Vishay shall indemnify, defend and hold
harmless VPG, each of other member of the Vishay Group and each of their
respective current and former directors, officers and employees, and each of the
heirs, executors, successors and assigns of any of the foregoing (collectively,
the “VPG Indemnified Parties”),
from and against any and all Liabilities of the VPG Indemnified Parties relating
to, arising out of or resulting from any breach of, or failure to perform or
comply with, any covenant, undertaking or obligation of, this Agreement by
Vishay or any other member of the Vishay Group. 

     

         Section 8.2 Indemnification by VPG. VPG shall indemnify defend and hold harmless
Vishay, each of other member of the Vishay Group and each of their respective
current and former directors, officers and employees, and each of the heirs,
executors, successors and assigns of any of the foregoing (collectively, the
“Vishay Indemnified Parties”) from and against any and all Liabilities of
the Vishay Indemnified Parties relating to, arising out of or resulting from any
breach of, or failure to perform or comply with, any covenant, undertaking or
obligation of, this Agreement by VPG or any other member of the VPG Group.

     

         Section 8.3 Procedures for Indemnification of
Claims. Indemnification of
third party claims shall be governed by the procedures set forth in Section 5.6
of the Separation Agreement. Indemnification for direct claims shall be governed
by the procedures set forth in Section 5.7 of the Separation Agreement. Payment
shall be made in accordance with the provision of Section 5.8 of the Separation
Agreement. For the avoidance of doubt, the provisions of Section 5.5 of the
Separation Agreement shall not be applicable to claims under this Article 8.

     

    ARTICLE IX
GENERAL AND ADMINISTRATIVE

     

         Section 9.1 Sharing of Information. Vishay and VPG, and the members of their
respective Groups, each shall provide to the other Party and its respective
agents and vendors all Information as the other may reasonably request to enable
the requesting Party to administer efficiently and accurately each of its
Benefit Plans and to determine the scope of, as well as fulfill, its obligations
under this Agreement. Such information shall, to the extent reasonably
practicable, be provided in the format and at the times and places requested,
but in no event shall the Party providing such information be obligated to incur
any out-of-pocket expenses not reimbursed by the Party making such request or
make such information available outside of its normal business hours and
premises. Any information shared or exchanged pursuant to this Agreement shall
be subject to the confidentiality requirements set forth in Sections 4.5 and 4.6
of the Separation Agreement. With respect to personal health information
(“PHI”) as defined in the administrative
regulations promulgated pursuant to the Health Insurance Portability and
Accountability Act of 1996, as amended, the Parties agree to comply with such
regulations, including, but not limited to, entering into any business associate
agreements that may be required for the sharing of PHI.

     

         Section 9.2 Reasonable
Efforts/Cooperation. Each
of the Parties hereto will use its commercially reasonable efforts to promptly
take, or cause to be taken, all actions and to do, or cause to be done, all
things necessary, proper or advisable under Applicable Law and regulations to
consummate the transactions contemplated by this Agreement, including adopting
plans or plan amendments. Each of the Parties hereto shall provide reasonable
cooperation on any issue relating to the transactions contemplated by this
Agreement for which the other Party seeks a determination letter or private
letter ruling from the United States Internal Revenue Service, an advisory
opinion from the United States Department of Labor or any other filing, consent
or approval with respect to or by a Governmental Entity.

     

    18 

     

    

    
    

     

         Section 9.3 Employer Rights. Nothing in this Agreement shall prohibit VPG
or any other member of the VPG Group from amending, modifying or terminating any
VPG Benefit Plan at any time after the Distribution Date, within its sole
discretion. In addition, nothing in this Agreement shall prohibit Vishay or any
other member of the Vishay Group from amending, modifying or terminating any
Vishay Benefit Plan at any time, within its sole discretion.

     

         Section 9.4 Effect on Employment. Nothing in this Agreement is intended to
confer upon any employee or former employee of Vishay, VPG or any member of
their respective Group any right to continued employment, or any recall or
similar rights to an individual on layoff or any type of approved
leave.

     

         Section 9.5 Consent of Third Parties. If any provision of this Agreement requires
the consent of any third party, the Parties shall use their commercially
reasonable efforts to obtain such consent. If despite such efforts the consent
cannot be obtained, the Parties shall negotiate in good faith to modify the
applicable provision so as to effect the purposes and intents of this Agreement
to the extent reasonably possible notwithstanding the absence of such
consent.

     

         Section 9.6 Beneficiary Designation/Release of
Information/Right to Reimbursement. To the extent permitted by Applicable Law and except as otherwise
provided for in this Agreement, all beneficiary designations, authorizations for
the release of information and rights to reimbursement made by or relating to
VPG Employees under Vishay Benefit Plans shall be transferred to, and be in full
force and effect under, the corresponding VPG Benefit Plans until such
beneficiary designations, authorizations or rights are replaced or revoked by,
or no longer apply to, the applicable VPG Employee.

     

         Section 9.7 Fiduciary Matter. Vishay and VPG each acknowledge that the
transfer of account balances and assets from the Vishay 401(k) Plan to the VPG
401(k) Plan will be subject to fiduciary duties or standards of conduct under
ERISA or other Applicable Law, and no Party shall be deemed to be in violation
of this Agreement if it fails to comply with any provisions hereof based upon
its good faith determination (as supported by advice from counsel experienced in
such matters) that to do so would violate such a fiduciary duty or standard.
Each Party shall be responsible for taking such actions as are deemed necessary
and appropriate to comply with its own fiduciary responsibilities.

     

    ARTICLE X
MISCELLANEOUS

     

         Section 10.1 Termination. Notwithstanding anything in this Agreement
to the contrary, if the Separation Agreement is not executed on or before
December 31, 2010 or if it terminates without the Separation having occurred,
this Agreement shall automatically terminate without the action of any Party,
and neither Party shall have any Liability or further obligation to the other
Party under this Agreement.

     

    19 

     

    

    
    

     

         Section 10.2 Relationship of Parties. This Agreement shall not be construed to
place the Parties in the relationship of legal representatives, partners, joint
venturers or agents of or with each other. No Party shall have any power to
obligate or bind the other Party in any manner whatsoever, except as
specifically provided herein. 

     

         Section 10.3 Groups. Each of Vishay and VPG shall cause to be
performed, and hereby guarantees the performance of, all actions, agreements and
obligations set forth in this Agreement to be performed by the members of their
respective Groups.

     

         Section 10.4 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, facsimile number or e-mail address set
forth below (or at such other street address, facsimile number or e-mail address
as such Party may designate from time to time by written notice in accordance
with this provision): 

     

         If to Vishay, to:

     

         Vishay Intertechnology,
Inc.
     63 Lancaster Avenue
     Malvern, PA
19355-2120
     Attention: Dr. Lior E. Yahalomi,
Chief Financial Officer
     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: Abbe L.
Dienstag, Esq.
     Telephone:
212-715-9100
     Facsimile:
212-715-8000 

     

         If to VPG, to: 

     

         Vishay Precision Group,
Inc.
     3 Great Valley
Parkway
     Malvern, PA
19355-1307
     Attention: William M. Clancy, Chief Financial
Officer
     Telephone:
484-321-5300
     Facsimile:
484-321-5300

     

    20 

     

    

    
    

     

         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; or
(iii) actual delivery to or receipt by the Party to whom notice is being given
or an employee or agent thereof.

     

         Section 10.5 Entire Agreement. This Agreement and the Exhibits 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 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.

     

         Section 10.6 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 10.7 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 10.8 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.

     

    21 

     

    

    
    

     

         Section 10.9 Dispute Resolution. The procedures set forth in Article VIII of
the Separation Agreement shall apply to this resolution of all disputes arising
under this Agreement, provided, however, that the dispute resolution procedures set
forth in any Benefit Plan shall govern with respect to claims arising under such
Benefit Plan.

     

         Section 10.10 Construction. Any uncertainty or ambiguity with respect to
any provision of this Agreement shall not be construed for or against any Party
based on attribution of drafting by either Party. The headings contained herein
are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. In this Agreement, unless a clear contrary
intention appears: 

     

              (a) the singular number includes the plural number and vice versa;

     

              (b) reference to any Person
includes such Person’s successors and assigns but, if applicable, only if such
successors and assigns are not prohibited by this Agreement, and reference to a
Person in a particular capacity excludes such Person in any other capacity or
individually; 

     

              (c) reference to any gender includes each other gender; 

     

              (d) reference to any
agreement, document or instrument means such agreement, document or instrument
as amended, modified, supplemented or restated, and in effect from time to time
in accordance with the terms thereof subject to compliance with the requirements
set forth herein; 

     

              (e) reference to any
Applicable Law means such Applicable Law as amended, modified, codified,
replaced or reenacted, in whole or in part, and in effect from time to time,
including rules and regulations promulgated thereunder, and reference to any
section or other provision of any Applicable Law means that provision of such
Applicable Law from time to time in effect and constituting the substantive
amendment, modification, codification, replacement or reenactment of such
section or other provision; 

     

              (f) “herein,” “hereby,”
“hereunder,” “hereof,” “hereto” and words of similar import shall be deemed
references to this Agreement as a whole and not to any particular article,
section or other provision hereof or thereof; 

     

              (g) “including” (and with
correlative meaning “include”) means including without limiting the generality
of any description preceding such term; 

     

              (h) the headings are for
convenience of reference only and shall not affect the construction or
interpretation hereof or thereof; 

     

              (i) with respect to the
determination of any period of time, “from” means “from and including” and “to”
means “to but excluding;” and 

     

              (j) references to documents,
instruments or agreements shall be deemed to refer as well to all addenda,
exhibits, schedules or amendments thereto. 

     

    22

     

    

    
    

     

         Section 10.11 Counterparts. This Agreement may be executed in more than
one counterpart, each of which shall be deemed an original instrument and all of
which together shall be considered one and the same agreement, and shall become
effective when one or more such counterparts have been signed by each of the
Parties and delivered to the other Parties. A facsimile or electronic signature
is deemed an original signature for all purposes under this Agreement.

     

         Section 10.12 Assignment. This Agreement shall be binding upon and
inure to the benefit of the Parties, and their respective successors and
permitted assigns; provided, however, that no Party may assign, delegate or
transfer (by merger, operation of law or otherwise) its respective rights or
delegate its respective obligations under this Agreement without the express
prior written consent of the other Party. Notwithstanding the foregoing, either
Party may assign its rights and obligations under this Agreement to any
Wholly-owned Subsidiary; provided, however, that each Party shall at all times remain
liable for the performance of its obligations under this Agreement by any such
Wholly-owned Subsidiary. Any attempted assignment or delegation in violation of
this Section 10.12 shall be void. 

     

         Section 10.13 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 10.14 Specific Performance. The Parties agree that the remedy at law for
any breach of this Agreement may be inadequate, and that, as between Vishay and
VPG, any Party by whom this Agreement is enforceable 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 as between Vishay and
VPG, or prevent any violation hereof, and, to the extent permitted by Applicable
Law, as between Vishay and VPG, each Party waives any objection to the
imposition of such relief. 

     

         Section 10.15 Waiver of Jury Trial. Subject to Section 10.9 and Section 10.14,
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 by this
agreement. 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 10.15. 

     

    23 

     

    

    
    

     

         Section 10.16 Consent to Jurisdiction. Subject to the provisions of Section 10.9,
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 10.14. 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 10.4 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 10.16. 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 10.16, and waives any
claim that any such Action, suit or proceeding brought in any such court has
been brought in an inconvenient forum. 

     

         Section 10.17 Nonrecurring Costs and
Expenses. Notwithstanding
anything herein to the contrary, any nonrecurring costs and expenses incurred by
the Parties to effect the transactions contemplated hereby which are not
allocated pursuant to the terms of this Agreement shall be the responsibility of
the Party which incurs such costs and expenses. 

     

         Section 10.18 Press Releases; Public
Announcements. Neither
Party shall issue any release or make any other public announcement concerning
this Agreement or the transactions contemplated hereby without the prior written
approval of the other Party, which approval shall not be unreasonably withheld,
delayed or conditioned; provided, however, that either Party shall be permitted to make
any release or public announcement that in the opinion of its counsel it is
required to make by law or the rules of any national securities exchange of
which its securities are listed; provided further that it has made efforts that are reasonable
in the circumstances to obtain the prior approval of the other Party.

     

         Section 10.19 No Third-Party
Beneficiaries. Except for
the indemnification rights under this Agreement of any Vishay Indemnified Party
or any VPG Indemnified Party in their respective capacities as such: (i) the
provisions of this Agreement are solely for the benefit of the Parties and their
respective successors and permitted assigns, and are not intended to confer upon
any Person, except the Parties and their respective successors and permitted
assigns, any rights or remedies hereunder; (ii) there are no third party
beneficiaries of this Agreement; and (iii) this Agreement shall not provide any
third party with any remedy, claim, liability, reimbursement, claim of action or
other right in excess of those existing without reference to this Agreement.

     

    24 

     

    

    
    

     

    [SIGNATURE PAGE
FOLLOWS] 

     

    25 

     

    

    
    

     

         WHEREFORE, the
Parties have signed this Agreement effective as of the date first set forth
above. 

     

    
      	
            	VISHAY INTERTECHNOLOGY,
INC.
	
            	  
	
            	  
	
            	By:   	 
	
            	
            	Name:
	
            	 	Title:
	
            	  
	
            	  
	
            	VISHAY PRECISION GROUP,
INC.
	
            	  
	
            	  
	
            	By:	 
	
            	 	Name:
	
            	 	Title:exhibit10-5.htm

    FORM OF TRANSITION SERVICES AGREEMENT

     

         This Transition Services Agreement (this “Services Agreement”) is entered into and effective as of the ___
day of __________, 2010 (the “Effective Date”), by and between Vishay Intertechnology,
Inc., a corporation organized under the laws of the State of Delaware
(“Provider”), and Vishay Precision Group, Inc., a
corporation organized under the laws of the State of Delaware (“Recipient”). Provider and Recipient each may be
referred to herein as a “Party” and collectively, as the “Parties.” 

     

         WHEREAS, the Board of Directors of Provider has determined that it is
appropriate and desirable to separate Recipient and Provider into two
publicly-traded companies by separating Provider from Recipient and transferring
to Recipient Provider’s measurement group and foil business (the “MGF Business”) (such separation, the “Separation”); 

     

         WHEREAS, Provider and Recipient have entered into that certain Master
Separation and Distribution Agreement, dated as of the date hereof (the
“Master Separation Agreement”), in order to carry out, effect and
consummate the Separation; and 

     

         WHEREAS, to facilitate the Separation, Provider and Recipient deem it to
be appropriate and in the best interests of Provider and Recipient that Provider
provide certain services to Recipient pursuant to the terms and conditions set
forth herein. 

     

         NOW, THEREFORE, in consideration of the mutual promises, covenants,
agreements, representations and warranties contained herein, and for other good
and valuable consideration the receipt and adequacy of which are hereby
acknowledged, the Parties hereby agree as follows: 

     

    Article
1
Services

     

         1.1 General. In accordance with the provisions hereof,
Provider, through its Subsidiaries (as defined below) and their respective
employees, agents or contractors, shall provide to Recipient and its
Subsidiaries, and Recipient shall purchase from Provider, the services described
in Schedule A (each a “Service” and collectively, the “Services”). In addition to a description of each
Service, Schedule A shall set forth, where relevant, the maximum
level or amount of each Service, applicable performance times and the pricing
parameters for each Service. Schedule A may be amended from time to time by written
agreement of the Parties. For purposes of this Services Agreement, “Subsidiary” of any Party 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 Party or by any one or more
of its Subsidiaries, or by such Party and one or more of its Subsidiaries;
provided, however, that no person that is not directly or
indirectly wholly-owned by the Party shall be a Subsidiary of such Party unless
such Party controls, or has the right, power or ability to control, that person.

     

         1.2 Quality of Services. Subject to Section 1.3, Provider shall perform each of the Services
(i) in a workmanlike and professional manner, (ii) with the same degree of care
as it exercises in performing its own
functions of a like or similar nature, (iii) utilizing individuals of suitable
experience, training and skill, and (iv) in a timely manner in accordance with
the provisions of this Services Agreement. 

     

    

    
    

         1.3 Forecasts. Recipient shall provide Provider with a
monthly forecast of its requested level of Services not less than fifteen (15)
days prior to the beginning of each calendar month, unless no change in the
existing service levels are forecast for such calendar month. The Service
levels, if any, initially requested by Recipient (the “Initial Service Levels”) shall be as set forth on Schedule A. Service levels may be decreased from the
Initial Service Levels upon Recipient’s delivery to Provider of written notice
of such decrease specified in reasonable detail at least sixty (60) days in
advance of the month to which the decrease forecast relates. Any increase in the
scope of Services, including the addition of any new Services, shall be
negotiated in good faith by the Parties; provided that Provider shall not be required to perform
additional or enhanced services, except to the extent that it has available
resources and receives compensation acceptable in its reasonable discretion. To
the extent any Services are mischaracterized in Schedule A, Provider and Recipient shall negotiate in
good faith to amend Schedule A as appropriate. 

     

         1.4 Third Party Services. Each Party acknowledges and agrees that
certain of the Services to be provided under this Services Agreement may have
been, and may continue to be, provided to Recipient, by third parties designated
by Provider. To the extent so provided, Provider shall use commercially
reasonable efforts to (i) cause such third parties to provide such Services in
accordance with the provisions of this Services Agreement and/or (ii) enable
Recipient and its Subsidiaries to avail itself of such Services; provided, however, that if any such third party is unable or
unwilling to provide any such Services, Provider shall use its commercially
reasonable efforts to determine the manner in which such Services can best be
provided, and, if there is any change to the level or cost of Services provided
as a result, Provider and Recipient shall negotiate in good faith to amend
Schedule A as appropriate. 

     

         1.5 Responsible Personnel. Each Party shall (i) from time to time
designate a senior level manager who shall have overall responsibility for the
administration and operation of this Services Agreement (each, a “Party Representative”) and (ii) upon reasonable request of the
other Party, provide such other Party with a list of key management personnel
who may be contacted by such other Party with respect to each Service.

     

         1.6 Consultation. At either Party’s reasonable request, the
Parties shall meet and discuss the nature, quality and level of Services covered
by this Services Agreement and any modifications a Party may wish to make to the
Services and other matters specified in Schedule A. 

     

         1.7 Recovery Procedures. Provider shall maintain, consistent with
past practices applicable to the MGF Business immediately prior to the
Separation, operational recovery procedures to insure the availability of
systems and the integrity of data relating to the Services at all times. In the
event of the unavailability of any such system or the loss or destruction of any
such data, Provider shall use its commercially reasonable efforts, consistent
with past practices applicable to the MGF Business immediately prior to the
Separation, to restore such systems and recover or replace such data as quickly
and completely as is practicable. 

     

    2 

     

    

    
    

         1.8 Monitoring and Reports; Books and Records;
Audit Right.

     

         (a) Provider shall maintain books and records in
reasonable and customary detail pertaining to the provision of Services pursuant
to this Services Agreement. Provider shall make such books and records available
for inspection by Recipient or its authorized representatives during normal
business hours, upon reasonable notice to Provider, and shall retain such books
and records for periods consistent with the retention policies applicable to the
MGF Business immediately prior to the Separation.

     

         (b) Upon thirty (30) days’ advance notice to
Provider, Recipient may audit (or cause an independent third party auditor to
audit), during regular business hours and in a manner that complies with the
building and security requirements of Provider, the books, records and
facilities of Provider pertaining to the provision of Services pursuant to this
Services Agreement to the extent necessary to determine Provider’s compliance
with this Services Agreement. For any given Service, Recipient shall have the
right to audit such books, records and facilities of Provider once for each
twelve month period during which payment obligations are due. Any audit under
this Section 1.8(b) shall not interfere unreasonably with the
operations of Provider. Recipient shall pay the costs of conducting such audit,
unless the results of an audit reasonably indicate an overpayment by Recipient
of ten percent (10%) or more (such percentage to be determined by reference to
the Services which are subject to the specific audit), in which case, Provider
shall pay the reasonable out-of-pocket costs of Recipient. 

     

         (c) Provider shall provide Recipient, at no cost
to Recipient, with customary reports concerning the performance of the Services
and as Recipient otherwise reasonably requests from time to time.

     

    Article
2
Compensation; Billing 

     

         2.1 Service Fees. In consideration of providing the Services,
Provider will charge Recipient the monthly fees or time and materials fees
indicated for each Service listed on Schedule A (each, a “Service Fee” and collectively, the “Service Fees”). In the event that for any month there
shall be an increase or decrease of the level of any Service by 5% or more
compared to the Initial Service Levels for any Service described on Schedule A for which there is a monthly fee, if any, the
Service Fee for such Service shall be adjusted proportionately. 

     

         2.2 Expenses. Provider shall also be entitled to charge
Recipient for its reasonable documented, out-of-pocket costs and expenses
incurred by Provider in providing the Services, as more particularly provided on
Schedule A (“Expenses”). 

     

         2.3 Invoices. Not later than 30 days after the end of each
calendar month, Provider shall send Recipient an invoice that includes in
reasonable detail the Service Fees and Expenses due for Services provided to
Recipient for such month. Payments of invoices shall be made by wire transfer of
immediately available United States funds to one or more accounts specified in
writing by Provider. Payment shall be made within 30 days after the date of
receipt of Provider’s invoice. All amounts payable to Provider hereunder shall
be paid without setoff, deduction, abatement or counterclaim. 

     

    3 

     

    

    
    

         2.4 Payment Delay. If Recipient fails to make any payment of a
material invoice within 60 days from the date such payment was due, Provider
shall have the right, at its sole option, upon 10 business days’ written notice
(a “Suspension Notice”), to suspend performance of the Services
until payment has been received.

     

         2.5 Finance Charges. With respect to the unpaid amount of any
invoice not paid in full within 30 days of receipt, a finance charge of 1% per
month, payable from the date of the invoice to the date payment is received,
shall be due and payable to Provider. In addition, Recipient shall indemnify
Provider for its costs, including reasonable attorneys’ fees and disbursements,
incurred to collect any unpaid amount. Recipient shall not be liable for the
payment of any finance charges pursuant to this Section 2.5, and Provider shall not be authorized to
suspend performance pursuant to Section 2.4, to the extent, but only to the extent, that
Recipient in good faith is in the process of disputing the fees or expenses to
which such finance charges or performance relates in accordance with
Section 13.2. 

     

    Article
3
Cooperation and Consents 

     

         3.1 General. Each Party shall reasonably cooperate with
and provide assistance to the other Party in carrying out the provisions of this
Services Agreement. Such cooperation shall include, but not be limited to,
exchanging information, providing electronic systems used in connection with the
Services, making adjustments and obtaining all consents, licenses, sublicenses
or approvals necessary to permit each party to perform its obligations
hereunder. 

     

         3.2 Transition. At the request of Recipient in contemplation
of the termination of any Services hereunder, in whole or in part, Provider
shall cooperate with Recipient, at Recipient’s expense, in transitioning such
Services to Recipient or any third-party service provider designated by
Recipient. 

     

         3.3 Consents. Provider will obtain any third-party
consents necessary to enable it to provide the Services as forth on Schedule 3.3 (the “Consents”), provided that Provider shall not be required to pay any
consideration or incur any liability therefor. If any such consent is not
obtained, the parties will reasonably cooperate with one another to achieve a
reasonable alternative arrangement with respect thereto. 

     

    Article
4
Confidentiality 

     

         4.1 Generally. In the course of the performance of the
Services, each Party may become aware of confidential and proprietary
information of the other Party (“Confidential Information”). All Confidential Information disclosed by
a Party during the term of this Services Agreement shall remain the property of
the disclosing Party and shall be used by the receiving Party only in accordance
with the provisions of this Services Agreement.

     

         4.2 Identification; Term. (a) Except in the case of (x) information
that is subject to the confidentiality provisions of Section 4.5 of the Master
Separation Agreement or (y) information exchanged in furtherance of the
performance of the Services hereunder that is of a type that is generally
regarded by the Parties to be confidential information (such as pricing, customer and production information), to which
this subsection (a) shall not apply, if disclosed in written form, Confidential
Information shall be identified as Confidential Information by an appropriate
legend. For a period of 5 years from the date of first receipt thereof, the
receiving Party shall (i) treat all such information in the same manner as it
treats its own confidential information, in any event exercising reasonable
precautions to prevent the disclosure of such information to others; (ii) use
such information only for the purposes set forth herein; and (iii) disclose such
information only to its employees who have a need to know such information in
the performance of their duties hereunder. 

     

    4 

     

    

    
    

         4.3 Exceptions. The obligations of confidential treatment
under this Article 4 shall not apply to any Confidential Information which (i)
is or becomes publicly known through no wrongful act, fault or negligence of the
receiving Party; (ii) was known by the receiving Party prior to disclosure or is
developed by the receiving Party independently of such disclosure; (iii) was
disclosed to the receiving Party by a third party who was not under any
obligation of confidentiality; (iv) is approved for release by written
authorization of the disclosing Party; or (v) is disclosed pursuant to a
requirement of law or by court order, provided that the receiving Party has
provided the disclosing Party with reasonable opportunity to prevent or limit
such legally required disclosure. 

     

         4.4 Injunctive Relief. Each Party acknowledges and agrees that it
would be difficult to measure the damages that might result from any actual or
threatened breach of this Article 4 and that such actual or threatened breach by
it may result in immediate, irreparable and continuing injury to the other Party
and that a remedy at law for any such actual or threatened breach may be
inadequate. Accordingly, the Parties agree that the non-breaching Party, in its
sole discretion and in addition to any other remedies it may have at law or in
equity, shall be entitled to seek temporary, preliminary and permanent
injunctive relief or other equitable relief, issued by a court of competent
jurisdiction, in case of any such actual or threatened breach (without the
necessity of actual injury being proved and with the necessity of posting bond).

     

    Article
5
Intellectual Property 

     

         5.1 Recipient Intellectual
Property. Except as
otherwise agreed by the Parties, all data, software, or other property or assets
owned or created by Recipient shall remain the sole and exclusive property and
responsibility of Recipient. Provider shall not acquire any rights in any such
data, software or other property or assets pursuant to this Services Agreement.

     

         5.2 Provider Intellectual
Property. Except as
otherwise agreed by the Parties, all data, software or other property or assets
which are owned by Provider, including without limitation derivative works
thereof and new data or software created by Provider at Provider’s expense
pursuant to the provision of Services and all intellectual property rights
therein (the “Provider Property”), shall be the sole and exclusive property
and responsibility of Provider. Recipient shall not acquire any rights in any
Provider Property pursuant to this Services Agreement. 

     

    5 

     

    

    
    

    Article
6
Remedies and Limitation of
Liability 

     

         6.1 In the event that any Service performed by
Provider hereunder is not performed in accordance with the provisions of
Article 1, Recipient’s sole remedy shall be, at the
election of Recipient either (i) to require Provider to re-perform such Service
in accordance with Article 1 without obligation on the part of Recipient
to make payment for such performance, (ii) to provide Recipient with a credit in
an equivalent amount towards the future purchase of Services, as contemplated by
this Services Agreement, or (iii) to require Provider to pay the cost of
replacing such Services with a third-party provider, and Provider shall not be
liable for any other loss or damage on account of the performance of any
Service. 

     

         6.2 IN NO EVENT SHALL EITHER PARTY 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, HOWEVER CAUSED AND ON ANY THEORY OF
LIABILITY (INCLUDING NEGLIGENCE) ARISING IN ANY WAY OUT OF THIS SERVICES
AGREEMENT, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF ANY
SUCH DAMAGES; PROVIDED, HOWEVER, THAT THE FOREGOING LIMITATIONS SHALL NOT LIMIT
EITHER PARTY’S INDEMNIFICATION OBLIGATIONS FOR LIABILITIES WITH RESPECT TO THIRD PARTY CLAIMS, AS SET FORTH IN
ARTICLE 7.

     

         6.3 In no event, whether as a result of breach of
contract, indemnity, warranty, tort (including negligence), strict liability, or
otherwise, shall either Party’s liability to the other Party for any loss or
damage arising out of, or resulting from, this Services Agreement or the
furnishing of Services hereunder, in any month exceed three times the monthly
price of the specific Service which gives rise to the claim for such month.

     

    Article
7
Indemnification 

     

         7.1 General. Each Party shall indemnify and hold harmless
the other Party from all claims, liabilities, damages and expenses payable to
third parties arising out of or relating to (i) a breach of this Services
Agreement, (ii) gross negligence, or willful misconduct, or (iii) infringement
of third party intellectual property in the performance of any Service, in each
case, by the indemnifying Party, except to the extent, but only to the extent,
that any such claims, liabilities, damages or expenses are the result of a
breach of this Services Agreement, gross negligence or willful misconduct, or
infringement of third party intellectual property, on the part of the
indemnified Party. 

     

         7.2 Special Recipient Indemnity. Notwithstanding anything to the contrary
herein, Recipient shall indemnify and hold Provider harmless from and against
(i) any tax, penalty, interest, addition to tax, tax surcharge, or other charge
payable by Provider as a result of any sales, use or excise taxes levied or
based on amounts payable pursuant to this Services Agreement, including
privilege or excise taxes based on gross revenues under this Services Agreement
or taxes on the Services rendered to Recipient, provided that Recipient shall
not be responsible for any taxes levied
measured by or based upon the net income of Provider; (ii) claims, liabilities,
damages and expenses arising out of or relating to (a) the content of or defects
in any inventory, material or other property of the Recipient, or (b) the
performance of Services for or on behalf of Recipient hereunder, but only to the
extent such Services have been performed in compliance with this Services
Agreement or otherwise pursuant to the specific written instructions of
Recipient. 

     

    6 

     

    

    
    

         7.3 Indemnification Procedures. Indemnification of Third Party Claims (as
that term is defined in the Master Separation Agreement) shall be governed by
the definitions and procedures set forth in Section 5.6 of the Master Separation
Agreement. Indemnification for direct claims shall be governed by the procedures
set forth in Section 5.7 of the Master Separation Agreement. Payment shall be
made in accordance with the provision of Section 5.8 of the Master Separation
Agreement. For the avoidance of doubt, the provisions of Section 5.5 of the
Master Separation Agreement shall not be applicable to claims under this
Article 7. 

     

    Article
8
Excusable Delays 

     

         Neither Party shall be held liable for any delay or failure in
performance of any part of this Services Agreement by reason of any cause beyond
its reasonable control, including, but not limited to, acts of God, acts of
civil or military authority, government regulations, embargoes, epidemics, war,
terrorist acts, riots, fires, explosions, earthquakes, nuclear accidents,
floods, strikes, power blackouts affecting facilities, inability to secure
products or services of other persons or transportation facilities, or acts or
omissions of transportation common carriers, provided that the Party so affected
shall use reasonable commercial efforts to remove such causes of
non-performance. Upon the occurrence of any event of force majeure, the Party
whose performance is prevented shall promptly give written notice to the other
Party and the Parties shall promptly confer in good faith to agree upon
reasonable action to minimize the impact of such event on the Parties.

     

    Article
9
Independent Contractor 

     

         9.1 Relationship. In its performance of Services hereunder,
Provider is an independent contractor to Recipient and nothing in this Services
Agreement shall be deemed to make a Party a partner, principal, joint venturer,
or fiduciary of the other Party. Neither Provider nor any persons performing any
Service on Provider’s behalf shall be deemed to be employees, agents or legal
representatives of Recipient. Nothing in this Services Agreement shall confer
authority upon any Party to enter into any commitment or agreement binding upon
the other Party. 

     

         9.2 No Assumption of
Obligations. Nothing in
this Services Agreement shall be construed as an assumption by Provider of any
financial obligation of Recipient. 

     

         9.3 Compensation of Employees. Provider shall be responsible for payment of
compensation to its employees and shall be responsible for payment of all
federal, state and local taxes or
contributions imposed or required under unemployment insurance, social security
and income tax laws with respect to such persons. 

     

    7 

     

    

    
    

    Article
10
Compliance With Laws 

     

         In the performance of its duties and obligations under this Services
Agreement, each Party shall comply with all applicable laws. The Parties shall
cooperate fully in obtaining and maintaining in effect all permits and licenses
that may be required for the performance of the Services. 

     

    Article
11
Term and Termination 

     

         11.1 Term. The term of this Services Agreement shall
commence on the Effective Date and end on the eighteen (18) month anniversary of
the Distribution Date (as defined in the Master Separation Agreement), unless
terminated earlier in whole or in part as provided in Section 11.3. 

     

         11.2 [Intentionally omitted.] 

     

         11.3 Termination of this Services
Agreement. This Services
Agreement may be terminated: 

     

         (a) By written agreement of the Parties; 

     

         (b) By Provider in the event an unpaid invoice
resulting in delivery to Recipient of a Suspension Notice under Section 2.4 is not satisfied within sixty (60) days of
the date of delivery of such notice; 

     

         (c) By either Party upon a material breach (other
than non-payment of Services Fees or Expenses) by the other that is not cured
within thirty (30) days after written notice of such breach from the
non-breaching Party, except that where such breach is not capable of being cured
within 30 days, the breaching Party shall be accorded thirty (30) additional
days to cure such breach if it demonstrates that it is capable of curing such
breach within such additional period; 

     

         (d) Upon thirty (30) days’ advance written notice
by either Party to the other where one Party: (i) commences a voluntary case or
other proceeding seeking liquidation, reorganization, or similar relief or seeks
the appointment of a trustee, receiver, liquidator or other similar official of
it or the taking of possession by any such official in any involuntary case or
other proceeding commenced against it, or makes a general assignment for the
benefit of creditors, or fails generally to pay its debts as they become due; or
(ii) has an involuntary case or other proceeding commenced against it seeking
liquidation, reorganization or other relief with respect to it or substantially
all of its debts or seeks the appointment of a trustee, receiver, liquidator,
custodian or other similar official for such Party or any substantial part of
its property, and such involuntary case or other proceeding remains undismissed
for a period of sixty (60) days; or 

     

    8 

     

    

    
    

         (e) Except as may otherwise be set forth on
Schedule A, by Recipient upon not less than sixty (60) days’ advance written
notice, with respect to all or any part of any Service provided pursuant to this
Services Agreement; provided that neither this Services Agreement nor any
Service to performed by Provider hereunder may be terminated earlier than ninety
(90) days after the Distribution Date; and provided further that to the extent there are any break-up
costs (including commitments made to or in respect of personnel or third parties
due to the requirement to provide the Services and prepaid expenses related to
the Services, or costs related to terminating such commitments) incurred by
Provider as a result of such termination, Recipient shall be solely responsible
for such costs. This Section 11.3(e) shall not limit the application of
Section 1.3. 

     

         11.4 Effect. In the event of termination of this Services
Agreement in its entirety pursuant to this Article 11 or upon the expiration of the term (as the
same may be extended pursuant to Section 11.2), this Services Agreement shall cease to have
further force or effect and neither Party shall have any liability to the other
Party with respect to this Services Agreement, provided that: 

     

         (a) Termination or expiration of this Services
Agreement for any reason shall not release a Party from any liability or
obligation which already has accrued as of the effective date of such
termination or expiration, and shall not constitute a waiver or release of, or
otherwise be deemed to adversely affect, any rights, remedies or claims, which a
Party may have hereunder at law, equity or otherwise or which may arise out of
or in connection with such termination or expiration. 

     

         (b) As promptly as practicable following
termination of this Services Agreement in its entirety or with respect to any
Service to the extent applicable, and the payment by Recipient of all amounts
owing hereunder, Provider shall return all reasonably available material,
inventory and other property of Recipient held by Provider and shall deliver
copies of all of Recipient’s records maintained by Provider with regard to the
Services in Provider’s standard format and media. Provider shall deliver such
property and records to such location or locations as reasonably requested by
Recipient. Provider shall be responsible for the packing and preparation for
shipping of all such material, inventory and other property. Arrangements for
shipping, including the cost of freight and insurance, and the reasonable cost
of packing incurred by Provider shall be the responsibility of and shall be paid
by Recipient. 

     

         (c) Articles 4, 5, 6, 7, 10, 12, 13 and 14 and this Section 11.4 shall survive any termination or expiration
of this Services Agreement and remain in full force and effect. 

     

    Article
12
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,
facsimile number or e-mail address set forth below (or at such other street
address, facsimile number or e-mail address as such Party may designate from
time to time by written notice in accordance with this provision): 

     

    9 

     

    

    
    

    If to Provider, to: 

     

    Vishay Intertechnology, Inc.
63 Lancaster Avenue
Malvern, PA
19355-2120
Attention: Dr. Lior
E. Yahalomi, Chief Financial Officer
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: Abbe L. Dienstag,
Esq.
Telephone: 212-715-9100
Facsimile: 212-715-8000 

     

    If to Recipient, to: 

     

    Vishay Precision Group, Inc.
3 Great Valley Parkway
Malvern, PA
19355-1307
Attention: William
M. Clancy, Chief Financial Officer
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; or
(iii) actual delivery to or receipt by the party to whom notice is being given
or an employee or agent thereof. 

     

    Article
13
Governing Law and Dispute
Resolution 

     

         13.1 Governing Law. This Services Agreement and the legal
relations between the parties hereto 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. 

     

    10

     

    

    
    

         13.2 Dispute Resolution. The procedures for discussion and
negotiation set forth in this Section 13.2 shall apply to all disputes, controversies or
claims (whether arising in contract, tort or otherwise) (each, a “Dispute”) that may arise out of or relate to, or
arise under or in connection with this Services Agreement or the transactions
contemplated hereby.

     

         (a) It is the intent of the Parties to use their
respective reasonable best efforts to resolve expeditiously any Dispute between
them with respect to the matters covered hereby that may arise from time to time
on a mutually acceptable negotiated basis. In furtherance of the foregoing, if a
Dispute arises, the respective Party Representatives shall consider the Dispute
for up to seven (7) business days following receipt of a notice from either
Party specifying the nature of the Dispute, during which time the Party
Representatives shall meet in person at least once, and attempt to resolve the
Dispute.

     

         (b) If the Dispute is not resolved by the end of
the seven (7) day period referred to in Section 13.2(a), or if the Party Representatives agree that
the Dispute can not be resolved by them, either Party may deliver a notice (an
“Escalation Notice”) demanding an in-person meeting involving
appropriate representatives of the Parties at a senior level of management of
the Parties (or if the Parties agree, of the appropriate strategic business unit
or division within such entity) (collectively, “Senior Executives”). Thereupon, each of the Party
Representatives shall promptly prepare a memorandum stating (i) the issues in
Dispute and each Party’s position thereon, (ii) a summary of the evidence and
arguments supporting each Party’s positions (attaching all relevant documents),
(iii) a summary of the negotiations that have taken place to date, and (iv) the
name and title of the Senior Executive who shall represent each Party. The Party
Representatives shall each deliver such memorandum to its respective Senior
Executive promptly upon receipt of such memorandum from the other Party
Representative. The Senior Executives shall meet for negotiations (which may be
held telephonically) at a mutually agreed time and place within ten (10) days of
the Escalation Notice, and thereafter as often as the Senior Executives deem
reasonably necessary to resolve the Dispute. 

     

         (c) In the event that the Parties, after complying
with the provisions set forth in Sections 13.2(a) and 13.2(b), are unable to resolve a Dispute that arises
out of or relates to, arises under or in connection with this Services Agreement
or the transactions contemplated hereby, the Parties shall resolve such Dispute
in accordance with the provisions set forth in Article VIII of the Master Separation Agreement.

     

    11 

     

    

    
    

    Article
14
Miscellaneous 

     

         14.1 Amendment. No provisions of this Services Agreement
shall be 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. 

     

         14.2 Waiver.

     

         (a) Any term or provision of this Services
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 Services 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 Services 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 Services Agreement or any Party
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. 

     

         14.3 Assignability. This Services Agreement shall be binding
upon and inure to the benefit of the Parties, and their respective successors
and permitted assigns; provided, however, that no Party may assign, delegate or
transfer (by merger, operation of law or otherwise) its respective rights or
delegate its respective obligations under this Services Agreement without the
express prior written consent of the other Party. Notwithstanding the foregoing,
either Party may assign its rights and obligations under this Services Agreement
to any Wholly-owned Subsidiary; provided, however, that each Party shall at all times remain
liable for the performance of its obligations under this Services Agreement by
any such Wholly-owned Subsidiary. Any attempted assignment or delegation in
violation of this Section 14.3 shall be void. For purposes of this Services
Agreement, “Wholly-owned Subsidiary” of a Party means a Subsidiary of that Party
substantially all of whose voting securities and outstanding equity interest are
owned either directly or indirectly by such Party or one or more of its
Subsidiaries or by such Party and one or more of its Subsidiaries. 

     

         14.4 No Subcontracting. Unless otherwise agreed by Recipient, which
agreement shall not unreasonably be withheld, and except as provided in
Section 1.4, Provider may not subcontract the
performances of any Services hereunder. 

     

         14.5 Third Parties. Except for the indemnification rights under
this Services Agreement of any Party in their respective capacities as such: (i)
the provisions of this Services Agreement are solely for the benefit of the
Parties and their respective successors and permitted assigns, and are not
intended to confer upon any person, except the Parties and their respective
successors and permitted assigns, any rights or remedies hereunder; (ii) there
are no third party beneficiaries of this Services Agreement; and (iii) this
Services Agreement shall not provide any third party with any remedy, claim, liability, reimbursement, claim of
action or other right in excess of those existing without reference to this
Services Agreement. 

     

    12 

     

    

    
    

         14.6 Severability. If any provision of this Services 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. 

     

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

     

         14.8 Counterparts. This Services 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 Services Agreement. 

     

         14.9 DISCLAIMER OF REPRESENTATIONS AND
WARRANTIES. EXCEPT FOR THE
REPRESENTATIONS, WARRANTIES AND COVENANTS EXPRESSLY MADE IN THIS SERVICES
AGREEMENT, PROVIDER HAS NOT MADE AND DOES NOT HEREBY MAKE ANY EXPRESS OR IMPLIED
REPRESENTATIONS, WARRANTIES OR COVENANTS, STATUTORY OR OTHERWISE, OF ANY NATURE,
INCLUDING WITH RESPECT TO THE WARRANTIES OF MERCHANTABILITY, QUALITY, QUANTITY,
SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR THE RESULTS OBTAINED OF THE
CONTINUING BUSINESS. ALL OTHER REPRESENTATIONS, WARRANTIES, AND COVENANTS,
EXPRESS OR IMPLIED, STATUTORY, COMMON LAW OR OTHERWISE, OF ANY NATURE, INCLUDING
WITH RESPECT TO THE WARRANTIES OF MERCHANTABILITY, QUALITY, QUANTITY,
SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR THE RESULTS OBTAINED OF THE
CONTINUING BUSINESS ARE HEREBY DISCLAIMED BY PROVIDER. 

     

         14.10 Remedies. The rights and remedies provided herein
shall be cumulative and not exclusive of any rights or remedies provided by law.

     

         14.11 Specific Performance. The Parties agree that the remedy at law for
any breach of this Services Agreement may be inadequate, and that, as between
Provider and Recipient, any Party by whom this Services Agreement is enforceable
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 Services
Agreement as between Provider and Recipient, or prevent any violation hereof,
and, to the extent permitted by applicable law, as between Provider and Recipient, each Party waives any
objection to the imposition of such relief. 

     

    13 

     

    

    
    

         14.12 Consent to Jurisdiction. Subject to the provisions of Section 13.2, 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 14.11 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 Article 12 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 14.12. 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 Services Agreement or the transactions
contemplated hereby for which it has submitted to jurisdiction pursuant to this
Section 14.12, and waives any claim that any such action,
suit or proceeding brought in any such court has been brought in an inconvenient
forum. 

     

         14.13 Waiver of jury trial. Subject to Section 13.2 and Section 14.11,
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 by this
agreement. 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 14.13. 

     

         14.14 Nonrecurring Costs and
Expenses. Notwithstanding
anything herein to the contrary, any nonrecurring costs and expenses incurred by
the Parties to effect the transactions contemplated hereby which are not
allocated pursuant to the terms of this Agreement shall be the responsibility of
the Party which incurs such costs and expenses. 

     

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

     

         14.16 Construction. Any uncertainty or ambiguity with respect to
any provision of this Agreement shall not be construed for or against any party
based on attribution of drafting by either party. The headings contained herein
are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. In this Agreement, unless a clear contrary
intention appears: 

     

    14 

     

    

    
    

         (a) the singular number includes the plural number and vice versa;

     

         (b) reference to any Person includes such Person’s
successors and assigns but, if applicable, only if such successors and assigns
are not prohibited by this Agreement, and reference to a Person in a particular
capacity excludes such Person in any other capacity or individually;

     

         (c) reference to any gender includes each other gender; 

     

         (d) reference to any agreement, document or
instrument means such agreement, document or instrument as amended, modified,
supplemented or restated, and in effect from time to time in accordance with the
terms thereof subject to compliance with the requirements set forth herein;

     

         (e) reference to any applicable law means such
applicable law as amended, modified, codified, replaced or reenacted, in whole
or in part, and in effect from time to time, including rules and regulations
promulgated thereunder, and reference to any section or other provision of any
applicable law means that provision of such applicable law from time to time in
effect and constituting the substantive amendment, modification, codification,
replacement or reenactment of such section or other provision; 

     

         (f) “herein,” “hereby,” “hereunder,” “hereof,”
“hereto” and words of similar import shall be deemed references to this
Agreement as a whole and not to any particular article, section or other
provision hereof; 

     

         (g) “including” (and with correlative meaning
“include”) means including without limiting the generality of any description
preceding such term; 

     

         (h) the Table of Contents and headings are for
convenience of reference only and shall not affect the construction or
interpretation hereof or thereof; 

     

         (i) with respect to the determination of any
period of time, “from” means “from and including” and “to” means “to but
excluding;” and 

     

         (j) references to documents, instruments or
agreements shall be deemed to refer as well to all addenda, exhibits, schedules
or amendments thereto. 

     

         14.17 Entire Agreement. This Services 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. No agreements or understandings exist between
the Parties other than those set forth or referred to herein. 

     

    {Signatures appear on
the following page}

     

    15 

     

    

    
    

         IN WITNESS WHEREOF, the Parties hereto have caused this Amended and
Restated Transition Services Agreement to be executed by their duly authorized
officers or representatives as of the date first written above. 

     

    
      	VISHAY INTERTECHNOLOGY, INC.	      	VISHAY PRECISION GROUP,
INC.
	
            	
            	 
	By:	 	
            	By:	 
	
            	Name:	 	
            	Name:
	 	Title:	
            	
            	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}]]