Document:

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 (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) 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:

    

    

    
    

    SCHEDULE A 

     

    TO 

     

    TRANSITION SERVICES AGREEMENT

     

    This Schedule A is
comprised of Schedule A-1, Schedule A-2 and Schedule A-3. The Services to be
provided by Provider under Schedule A-1 are referred to generally as the
Corporate Website Services, the EDI Services and the Partners Services. The
Services to be provided by Provider under Schedule A-2 are referred to generally
as the SAP Services. The Services to be provided by Provider under Schedule A-3
are referred to generally as the Finance Support Services. In accordance with
the Services Agreement, the Services to be provided hereunder will be provided
by Provider through its Subsidiaries and their respective employees, agents or
contractors. 

     

    Capitalized terms
used but not defined herein have the meaning given to them in that certain
Transition Services Agreement, dated the ___ day of __________, 2010, by and
between Vishay Intertechnology, Inc., as Provider, and Vishay Precision Group,
Inc., as Recipient (the “Services Agreement”). 

     

    For the avoidance of
doubt, any migration services, whether based on a change of provider, a change
of application or otherwise, are considered additional services, the terms of
which shall be negotiated in good faith by Provider and Recipient; provided that Provider shall not be required to perform
such migration services, except to the extent that it has available resources
and receives compensation acceptable in its reasonable discretion. 

     

    Vishay Precision
Group, Inc., as Recipient may terminate any Service under this Schedule A by
giving Vishay Intertechnology, Inc., as Provider, at least (30) days’ advance
written notice. 

     

    The parties do not
anticipate total payments under the Transition Services Agreement and this
Schedule A to exceed $300,000 in the first twelve months or $500,000 in the
aggregate. 

     

    

    
    

    Schedule A-1

     

    IT SUPPORT SERVICES FOR CORPORATE WEBSITE, EDI AND
PARTNERS

     

    
      	        	I.	        	Terms and IT services
      provided by Vishay Global Web Services
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	1.	Transition Services for
      Corporate Website
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	        	a.	        	The subject “Corporate Website”
      comprises the relevant web applications and components of the Provider’s
      website which are applicable to the business units transferred to
      Recipient.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	b.	
            	Provider will only provide support for website components and
      applications developed by Provider IT.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	c.	
            	Provider will not be responsible to support any
      modification/enhancement performed by or on behalf of Recipient any time
      after execution of the Services Agreement.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	d.	
            	Provider will provide Corporate Website support services
      (“Corporate Website Services”) for a period, not to exceed 18 months,
      starting on the Distribution Date, subject to extension on the terms set
      forth in the Services Agreement. Upon expiration or termination of the
      Services Agreement, all support for the website and related programs will
      be the sole responsibility of Recipient.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	e.	
            	The
      Corporate Website Services cover 80 man-hours per month of maintenance
      support to include non-core modifications and software bug corrections,
      constituting the Initial Service Level with respect to the Corporate
      Website Services. Provider IT will allocate proper programmer resources
      for the website components turned over to Recipient. Unused hours from the
      previous month will not be carried over to the succeeding month. In the
      event the Initial Service Level (i.e. the budgeted 80 man-hours) is
      exceeded, Recipient will be charged on a time and material basis at the
      Standard Support Rate set forth in Section III.4 of this Schedule
      A-1.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	f.	
            	All
      of Provider’s website custom programs and applications are proprietary to
      Provider and are provided to Recipient for Recipient’s use only. Recipient
      will not copy these programs and will not provide any copy to any third
      party, unless it is needed to support Recipient’s operation as it and
      approved in advance in writing by Provider.

    

     

    18 of 23

     

    

    
    

    
      	
            	
            	
            	2.	Transition Services for EDI
      Services
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	        	a.	        	The subject “EDI Services” comprises the
      electronic data interchange services for FOILS sales operation on
      Recipient’s SAP system hosted in Malvern.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	b.	
            	The
      EDI Services will include operational support, setup of new customers on
      EDI, and setup of new EDI message types.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	c.	
            	The
      EDI Services will not include, and Provider will not be responsible to
      support, any modification or enhancement performed by or on behalf of
      Recipient any time after execution of the Services Agreement.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	d.	
            	Provider will provide EDI Services for a period not to exceed 18
      months, starting on the Distribution Date, subject to extension on the
      terms set forth in the Services Agreement. Upon expiration or termination of the
      Services Agreement, all support for the EDI infrastructure and related
      programs will be the sole responsibility of Recipient.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	e.	
            	The
      EDI Services cover 40 man-hours per month of maintenance support to
      include non-core modifications and software bug corrections, constituting
      the Initial Service Level with respect to the EDI Services. Provider IT
      will allocate proper programmer resources. Unused hours from the previous
      month will not be carried over to the succeeding month. In the event the
      Initial Service Level (i.e. the budgeted 40 man-hours) is exceeded,
      Recipient will be charged on a time and material basis at the Standard
      Support Rate set forth in Section III.4 of this Schedule A-1.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	3. 	Transition Services for
      Partners Services
	
            	
            	
            	
            	
            	
            	  
	
            	
            	
            	
            	a.	
            	The subject
      “Partners” comprises the web SAP-based Internet Transaction Services for
      FOILS sales operation on the Recipient’s SAP system hosted in Malvern.
      “Internet Transaction Services”
      means SAP’s method of extending business applications to a web
      browser.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	b.	
            	Provider will
      provide operational support for the seven transactions currently available
      in Partners (the “Partners Services”). Addition of new transactions other
      that the seven currently available in Partners is not covered in this
      Schedule A.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	c.	
            	The Partners
      Services will not include, and Provider will not be responsible to
      support, any modification or enhancement performed by or on behalf of
      Recipient any time after execution of the Services Agreement. In addition,
      the Partners Services will not include the setup, migration, or
      preparation for any similar Partners implementation other than the
      interface with Recipient’s SAP system.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	d.	
            	Provider will
      provide Partners Services for a period not to exceed 18 months, starting
      on the Distribution Date, subject to extension on the terms set forth in
      the Services Agreement. Upon expiration or termination of the Services
      Agreement, all support for the Partners infrastructure and related
      programs will be the sole responsibility of Recipient.
	
            	
            	
            	
            	
            	
            	 
	        	   	        	        	e.	
            	The Partners
      Services cover 40 man-hours per month of maintenance support to include
      non-core modifications and software bug corrections, constituting the
      Initial Service Level with respect to the Partners Services. Provider IT
      will allocate proper programmer resources. Unused hours from the previous
      month will not be carried over to the succeeding month. In the event the
      Initial Service Level (i.e. the budgeted 40 man-hours) is exceeded,
      Recipient will be charged on a time-and-material basis at the Standard
      Support Rate set forth in Section III.4 of this Schedule
A-1.

    

     

    19 of
23

     

    

    
    

    
      	
            	II.	        	Recipient’s
      Responsibilities
	
            	
            	
            	
            	
            	
            	 
    
	
            	
            	
            	
            	a.	
            	Recipient Marcom will be responsible for concept and content of
      the Recipient’s website.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	b.	
            	Recipient, at its sole cost and expense, shall be responsible
      for the registration and subsequent renewal of its website and Partners
      domain.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	c.	
            	Recipient agrees to adopt a key user support community concept,
      where all issues are first escalated to the assigned Recipient key user
      for verification and resolution.
	
            	
            	
            	
            	
            	
            	 
	        	
            	
            	        	d.	        	Recipient at its sole cost and expense, shall be responsible for
      all operating expenses associated with the operation of all the systems,
      including but not limited to, hardware maintenance, software maintenance,
      communication lines, VAN services and usage charges for EDI mailbox ,
      annual license fees where applicable, system supplies etc. This includes
      the operating expenses during the system setup and testing period after
      execution of the Services Agreement.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	e.	
            	Recipient, at its sole cost and expense, shall be responsible
      for providing necessary secured network access, whether on-site or remote
      access, to allow Provider to perform the services set forth herein.
	
            	
            	
            	
            	
            	
            	 
	
            	III.	
            	Services Fees and
      Costs
	
            	
            	
            	
            	
            	
            	 
    
	
            	
            	
            	1.	Corporate Website
      Services
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	USD
      4,000 per month for the Corporate Website Services plus any out of pocket
      expenses for licenses, equipment, hardware, IT infrastructure additions to
      support additional hardware at Recipient, transportation of hardware to
      Recipient sites, and travel-related costs (if required for Provider
      personnel to travel) if not already paid for directly by Recipient.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	2.	EDI Services
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	USD
      3,200 per month for EDI Services plus any out of pocket expenses for
      licenses, equipment, hardware, IT infrastructure additions to support
      additional hardware at Recipient, transportation of hardware to Recipient
      sites, and travel-related costs (if required for Provider personnel to
      travel) if not already paid for directly by Recipient.
	
            	
            	
            	
            	 
    
	
            	
            	
            	3.	Partners Services
	
            	
            	
            	
            	 
	
            	
            	
            	
            	USD
      3,200 per month for Partners Services plus any out of pocket expenses for
      licenses, equipment, hardware, IT infrastructure additions to support
      additional hardware at Recipient, transportation of hardware to Recipient
      sites, and travel-related costs (if required for Provider personnel to
      travel) if not already paid for directly by Recipient.
	
            	
            	
            	
            	 
    
	
            	
            	
            	4.	Hourly Support
  Rates
	 	 	 	 	 
	 	 	 	 	Standard Website Support
      Rate        – USD 50/hour
	
            	
            	
            	
            	 
	
            	
            	
            	
            	Standard
      EDI/Partners Support Rate – USD 80/hour
	
            	
            	
            	
            	 
	
            	
            	
            	
            	The
      Standard Website Support Rate applies to hours exceeding the Initial
      Service Level for Corporate Website Services as outlined in III.1.
	
            	
            	
            	
            	 
	
            	
            	
            	
            	
              The Standard EDI/Partners Support Rate applies to hours exceeding
      the Initial Service Level for EDI Services and Partners Services as
      outlined in III.2 and III.3 of this Schedule A-1,
      respectively.

            

    

     

    20 of 23

     

    

    
    

    Schedule A-2

     

    IT SUPPORT SERVICES FOR SAP SYSTEMS AND
APPLICATIONS

     

    
      	        	I.	        	Terms and IT services
      provided by Vishay Global Business Applications
      Services
	
            	
            	
            	
            	
            	
            	
            	
            	 
    
	
            	
            	
            	1.	Transition Services for FOILS
      Sales operation on SAP
	
            	
            	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	        	a.	        	Provider will provide operating and
      application maintenance support, including non-core modifications and bug
      fixes for FOILS sales operation on SAP system/client co-hosted on the
      platform (all such support, the “SAP Services”). Operational functions
      within the SAP Services include: 
	
            	
            	
            	
            	
            	
            	
            	        	 
	
            	
            	
            	
            	
            	
            	
            	i.	Order
      Management (three selling companies),
	
            	
            	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	
            	
            	
            	ii.	Shipping
      (three selling companies), 
	
            	
            	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	
            	
            	
            	iii.	Invoicing (three selling companies),
	
            	
            	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	
            	
            	
            	iv.	Finished
      Goods Inventory Management (one manufacturing company), 
	
            	
            	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	
            	
            	
            	v.	Accounts
      Receivable (three selling companies), 
	
            	
            	
            	
            	
            	
            	
            	
            	 
    
	
            	
            	
            	
            	
            	
            	
            	vi.	General
      Ledger (three selling companies), and
	
            	
            	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	
            	
            	
            	vii.	Warehousing,
	
            	
            	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	
            	
            	as
      implemented as of the Distribution Date.
	
            	
            	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	b.	
            	The SAP Services will be provided during 8 work-hours on 5
      work-days EST for routine work. Emergencies will be attended 24 hours per
      day, 7 days a week, on a reasonable best efforts basis.
	
            	
            	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	c.	
            	The SAP Services cover 160 man-hours per month starting from the
      Distribution Date. Provider IT will allocate the respective qualified
      resources for the services, constituting the Initial Service Level with
      respect to the SAP Services. Unused hours from the previous month will not
      be carried over to the succeeding month. In the event the Initial Service
      Level (i.e. the budgeted 160 man-hours) is exceeded, Recipient will be
      charged on a time and material basis at the Standard Support Rate set
      forth in Section III.2 of this Schedule A-2.
	
            	
            	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	d.	
            	Any additional out of pocket costs incurred by providing the SAP
      Services will be charged to Recipient. Any costs expected to be above 1000
      USD will be sent to Recipient for approval before. Provider assumes no
      responsibility for service failures due to delayed approvals or
      rejections.
	
            	
            	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	e.	
            	Provider will provide the SAP Services for a period, not to exceed
      18 months, starting from the Distribution Date, subject to extension on
      the terms set forth in the Services Agreement. Upon expiration or termination of the
      Services Agreement, Provider will stop all SAP
  services.
	
            	
            	
            	
            	
            	
            	        	
            	
            
	
            	
            	
            	
            	f.	
            	Provider
      will hand over all business data to Recipient in electronic data files
      within no later than one week after expiration or termination of the
      Service Agreement. Recipient shall specify to Provider in writing the
      business data to be archived within 90 days prior to expiration or
      termination of the Services Agreement, whichever comes first. In the
      event Recipient does not so
      specify the business data to be archived within such 90-day period,
      Recipient may alternatively receive upon request a complete database copy
      of the applications listed in Section I.1.g of this Schedule
  A-2.
	
            	
            	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	g.	
            	The
      application hosting will include a productive and a test environment on
      non-mirrored IBM servers (ERP instances) and HP servers (warehouse
      instances) in Vishay corporate datacenter. Backup will be done daily.
      Service level parameters are:
	
            	
            	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	
            	
            	
            	i.	Annual
      Uptime: 98%
	
            	
            	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	
            	
            	
            	ii.	Recovery
      Time Objective (RTO): 5 work days 
	
            	
            	
            	
            	
            	
            	
            	
            	 
    
	
            	
            	
            	
            	
            	
            	
            	iii.	Recovery
      Point Objective (RPO): 24 hours 

    

     

    21 of 23

     

    

    
    

     

    
      	        	II.	        	Recipient’s
      Responsibilities
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	        	a.	        	Provider will be able to use its own
      licenses to operate the SAP systems for FOILS. Recipient will pay the
      respective license depreciation and maintenance costs on a per user basis.
      Any additional costs that should be incurred by such a solution will also
      be charged to Recipient.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	b.	
            	Recipient will pay any costs for additional third party software
      that is used for the FOILS interim system. This may include, but is not
      limited to, the WSW Speedi consignment package.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	c.	
            	Recipient will provide the specification of the business data to be
      archived to Provider three months before expiration or termination of the
      Services Agreement. The specification has to list the required business
      objects and record formats.
	
            	
            	
            	
            	
            	
            	 
	
            	III.	
            	Services Fees and
      Costs
	
            	
            	
            	
            	
            	
            	  
	
            	
            	
            	1.	SAP
Services
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	a.	
            	USD
      8,000.00 per month for the SAP Services outlined in Section I.1.a.-b of
      this Schedule A-2. 
	
            	
            	
            	
            	
            	
            	  
	
            	
            	
            	
            	b.	
            	USD 7,400.00 per
      month for the SAP Services outlined in Section I.1.g of this Schedule
    A-2.
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	c.	
            	Any time and
      material and out of pocket expenses as outlined in Section I.1.c.-f of
      this Schedule A-2. 
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	d.	
            	USD 47.00 per month for each active user
      in FOILS interim system on the first day of such month. Any third party
      licensing and maintenance costs as outlined in II.a.-b
	
            	
            	
            	
            	
            	
            	  
	
            	
            	
            	2.	Hourly Support
  Rates
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	a.	
            	Standard Support
      Rate: USD 50/hour 
	
            	
            	
            	
            	
            	
            	For purposes of
      this Schedule A-2, the Standard Support Rate applies to hours exceeding
      the Initial Service Level for the SAP Services
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	b.	
            	Development
      support rate USD 80/hour
	
            	
            	
            	
            	
            	
            	The development
      support rate applies to any development not covered by Section I.1.a of
      this Schedule A-2. This includes but is not limited to any major
      application change requests, the migration support to another system
      within the Provider during the term of the Services Agreement, and the
      archiving of the business data created in the FOILS interim
  system.

    

     

    22 of 23

     

    

    
    

    Schedule A-3

    FINANCE SUPPORT SERVICES

     

    
      	        	I.	        	Terms and Finance
      Support Services to be Provided
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	1.	Finance Support
    Services
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	        	a.	        	This Schedule A-3 refers to the
      provision of finance and accounting support from Provider to support the
      closing of SAP Foil for the VPG four selling entities located in US,
      Germany, Israel and Japan (the “Selling Entities”). Provider personnel
      will sit with the Recipient personnel and assist Recipient in closing the
      books for the new companies and in recording all accounts and transactions
      in SAP and otherwise will provide additional financial and accounting
      support services as may be reasonably requested by the Selling Entities
      (the “Finance Support Services”). 
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	
            	b.	
            	Provider will provide Finance Support Services to the Recipient
      until the books of the Selling Entities have been closed for the second
      quarter ending after the Distribution Date.
	
            	
            	
            	
            	
            	
            	 
	
            	II.	
            	Services Fees and
      Costs :
	
            	
            	
            	
            	
            	
            	 
	
            	
            	
            	Provider will provide the Finance Support Services at an average of
      $50 per hour per person, $250 per person for each half-day (i.e. each
      4-hour increment) and $500 per person for each full day (i.e. each 8-hour
      increment), in each case, based upon such person receiving $100,000 in
      annual compensation, working 200 calendar days per year, or as the parties
      may otherwise agree. Recipient will reimburse Provider for reasonable
      business travel expenses incurred by Provider and its personnel in
      connection with the provision of the Finance Support Services. 

    

     

    23 of 23exhibit10-10.htm

    Form of Vishay Precision Group, Inc. 2010
Stock Incentive Program 

     

    1. Purpose 

     

    The Vishay Precision
Group Inc. 2010 Stock Incentive Program (the “Program”) provides for the grant
of stock options, restricted stock and stock units to executive officers, key
employees and directors of Vishay Precision Group Inc. (the “Company”) and its
subsidiaries. The purpose of the Program is to enhance the long-term performance
of the Company and to provide the selected individuals with an incentive to
improve the growth and profitability of the Company by acquiring a proprietary
interest in the success of the Company. 

     

    2. Definitions 

     

    Whenever used in the
Program, the masculine pronoun shall be deemed to include the feminine, the
singular to include the plural, unless the context clearly indicates otherwise,
and the following capitalized words and phrases shall have the meaning set forth
below unless the context plainly requires a different meaning: 

     

    
      	
            	(a)	
            	“Agreement” means the written agreement between the Company and a
      Participant, or other documentation, evidencing an Award.
	      	
            	      	
            
	
            	(b)	
            	“Award” means a Stock Option, Restricted Stock, Unrestricted Stock
      or Stock Unit.
	
            	 
	
            	(c)	
            	“Board” means the Board of Directors of the Company.
	
            	 
	
            	(d)	
            	“Cause” means conduct by a Participant amounting to (1) fraud or
      dishonesty against the Company, (2) willful misconduct, repeated refusal
      to follow the reasonable directions of the Board of Directors of the
      Company, or knowing violation of law in the course of performance of the
      duties of Participant's employment with the Company, (3) repeated absences
      from work without a reasonable excuse, (4) intoxication with alcohol or
      drugs while on the Company's premises during regular business hours, (5) a
      conviction or plea of guilty or no contest to a felony or a crime
      involving dishonesty, or (6) a breach or violation of any Company policies
      regarding employee conduct, or a breach or violation of the terms of any
      employment or other agreement between Participant and the
    Company.
	
            	 
	
            	(e)	
            	“Class
      B Common Stock” means the Class B common stock, $0.10 par value per share,
      of the Company.
	
            	 
	
            	(f)	
            	“Code”
      means the Internal Revenue Code of 1986, as amended.
	
            	 
	
            	(g)	
            	“Committee” means the Compensation Committee of the Board of
      Directors of the Company. 
	
            	 

    

    

    
    

    
      	
            	(h)	
            	“Common Stock” means the common stock, par value $0.10 per share of
      the Company, other than Class B Common Stock.
	      	
            	      	 
	
            	(i)	
            	“Company” means Vishay Precision Group Inc. a Delaware corporation,
      or any successor organization.
	
            	 
	
            	(j)	
            	“Consent” has the meaning prescribed in Section 13
  below.
	
            	 
	
            	(k)	
            	“Disability” means a physical or mental condition which, in the
      judgment of the Committee, permanently prevents a Participant from
      performing his usual duties for the Company or such other position or job
      which the Company makes available to him and for which the Participant is
      qualified by reason of his education, training and experience. In making
      its determination, the Committee may, but is not required to, rely on
      advice of a physician competent in the area to which such Disability
      relates. The Committee may make the determination in its sole discretion
      and any decision of the Committee shall be binding on all
    parties.
	
            	 
	
            	(l)	
            	“Employee” means a full-time, nonunion, salaried employee, as that
      term is understood under the common law, of the Company.
	
            	 
	
            	(m)	
            	“Exercise Price” means the price per share at which Common Stock
      may be purchased upon exercise of a Stock Option.
	
            	 
	
            	(n)	
            	“Expiration Date” means the last date upon which a Stock Option can
      be exercised, as described in Section 6(b).
	
            	 
	
            	(o)	
            	“Fair
      Market Value” means, for any particular date, the last sale price of the
      Common Stock on the New York Stock Exchange or, if no reported sales take
      place on the applicable date, the average of the high bid and low asked
      price of the Common Stock as reported for such date or, if no such
      quotation is made on such date, on the next preceding day on which there
      were quotations, provided that such quotations shall have been made within
      the ten (10) business days preceding the applicable date. In the event
      that the Fair Market Value cannot be thus determined, it shall be
      determined in good faith by the Committee.
	
            	 
	
            	(p)	
            	“Involuntary Termination” means a Termination of Employment but
      does not include a Termination of Employment for Cause or a Voluntary
      Resignation.
	
            	 
	
            	(q)	
            	“Participant” means an individual to whom an Award is granted
      pursuant to the Program.
	
            	 
	
            	(r)	
            	“Program” means the 2010 Vishay Precision Group Inc. Stock
      Incentive Program.
	
            	 
	
            	(s)	
            	“Program Action” has the meaning prescribed in Section 13
      below.
	
            	 
	
            	(t)	
            	“Restricted Stock” means restricted shares of Common Stock that,
      until vested, may not be transferred and are
  forfeitable.

    

     

    2 

     

    

    
    

    
      	      	(u)	      	“Retirement” means a Termination of Employment from the Company or
      a Subsidiary, with the consent of the Company, on or after the earliest
      “normal retirement age” defined under any tax qualified retirement plan
      maintained by the Company.
	
            	 
	
            	(v)	
            	“Stock
      Option” or “Option” means a right to purchase shares of Common Stock
      granted pursuant to Section 6 of this Program, which shall not be treated
      as an incentive stock option under section 422 of the Code.
	
            	 
	
            	(w)	
            	“Stock
      Unit” means the right to receive a share of Common Stock on a date
      determined by the Committee and set forth in the applicable
      Agreement.
	
            	 
	
            	(x)	
            	“Subsidiary” means any corporation (other than the Company) in an
      unbroken chain of corporations beginning with the Company if, at the time
      of the granting of the Award, each of the corporations other than the last
      corporation in the unbroken chain owns stock equal to 50% or more of the
      total combined voting power of all classes of stock in one of the other
      corporations in the chain.
	
            	 
	
            	(y)	
            	“Termination of Employment” means the termination of the
      employee-employer relationship between an Employee and the Company or a
      Subsidiary, or the termination of service as a member of the Board,
      regardless of the fact that severance or similar payments are made to the
      Participant, for any reason, including, but not limited to, a Voluntary
      Resignation, Involuntary Termination, termination for Cause, death,
      Disability or Retirement. The Committee shall, in its absolute discretion,
      determine the effect of all matters and questions relating to a Termination of Employment, including,
      but not by way of limitation, the question of whether a leave of absence
      constitutes a Termination of Employment, or whether a Termination of
      Employment is for Cause. If a Participant is both an Employee and a member
      of the Board or if a Participant ceases to be an Employee or Board member
      and immediately commences service in the other capacity, then a Termination of Employment shall occur
      when the Participant` is neither an Employee nor a member of the
      Board.
	
            	 
	
            	(z)	
            	“Unrestricted Stock” means unrestricted shares of Common
      Stock.
	
            	 
	
            	(aa)	
            	“Voluntary Resignation” means a Termination of Employment as a
      result of the Participant's resignation.

    

     

    3. Administration 

     

         a) The Program shall be administered by the
Committee, which shall consist of at least two directors who are not Employees
of the Company or a Subsidiary. The members of the Committee shall be appointed
by, and serve at the pleasure of, the Board. To the extent required for
transactions under the Program to qualify for the exemptions available under
Rule 16b-3 promulgated under the Securities Exchange Act of 1934, the members of
the Committee shall be “non-employee directors” within the meaning of Rule
16b-3. To the extent required for compensation realized from Awards to be
deductible by the Company pursuant to section 162(m) of the Code, the members of
the Committee shall be “outside directors” within the meaning of section 162(m).
Notwithstanding the foregoing, no grant of an Award shall be invalidated if the
Committee is not so constituted. If the Committee does not exist, or for any
other reason determined by the Board, the Board may take any action under the
Program that would otherwise be the responsibility of the
Committee.

     

    3 

     

    

    
    

         b) The Committee shall have full authority, in
its discretion, (a) to determine the Employees of the Company or any Subsidiary
to whom Awards shall be granted and the terms and provisions of each Award,
subject to the provisions of this Program, (b) to exercise all of the powers
granted to it under this Program, (c) to construe, interpret and implement the
Program and any Agreement, (d) to prescribe, amend and rescind rules and
regulations relating to this Program, including rules governing its own
operations, (e) to determine the terms and provisions of the respective
Agreement with each Participant, (f) to make all determinations necessary or
advisable in administering the Program, and (g) to correct any defect, supply
any omission and reconcile any inconsistency in the Program. The Committee's
determinations under the Program need not be uniform and may be made by it
selectively among persons who receive, or are eligible to receive, Awards under
the Program (whether or not such persons are similarly situated). The
Committee's decisions shall be final and binding on all Participants.

     

         c) Action of the Committee shall be taken by the
vote of a majority of its members. The determination of the Committee on all
matters relating to the Program or any Agreement (including, without limitation,
the determination as to whether an event has occurred resulting in a forfeiture
or a termination or reduction of the Company's obligations in accordance with
the terms of this Program) shall be final, binding and conclusive. No member of
the Committee shall be liable for any action or determination made in good faith
with respect to the Program or any award thereunder. 

     

         d) Notwithstanding any other provision of the
Program, the Committee (or the Board acting instead of the Committee), may
delegate to one or more officers of the Company the authority to designate the
individuals (other than such officer(s) or any member of the Board), among those
eligible to receive awards pursuant to the terms of the Program, who will
receive Awards and the size of each such grant, to the fullest extent permitted
by Section 157 of the Delaware General Corporation Law (or any successor
provision thereto). 

     

         e) With respect to Awards granted to members of
the Board who are not employees of the Company, the Program shall be
administered (as otherwise set forth in this Section 3), including determining
which individuals shall receive Awards and the terms of any such Awards, solely
by the Board. 

     

    4. Shares Available 

     

          a) Subject to adjustment in
accordance with Section 4(b), the number of shares of Common Stock for which
Awards may be granted under this Program is 500,000, which may consist of
treasury shares or authorized but unissued shares. The maximum number of shares
of Common Stock subject to Awards granted under this Program to any
participating Employee for any year shall not exceed 250,000 shares, subject to
adjustment in accordance with Section 4(b), below. To the extent permitted by
law, any shares of Common Stock attributable to the unexercised or otherwise
unsettled portion of any Award that is forfeited, canceled, expires or
terminates for any reason without being exercised or otherwise settled in full
shall again be available for the grant of Awards under this Program, and any
shares of Common Stock tendered to the Company in payment of the Exercise Price
of a Stock Option shall also be available for the grant of Awards under this
Program, provided that no more than 250,000 shares of Common Stock cumulatively
shall be available under this Program at any time. 

     

    4 

     

    

    
    

         b) If there is any change in the outstanding
shares of Common Stock by reason of a stock dividend or distribution, or stock
split-up, or by reason of any merger, consolidation, spinoff or other corporate
reorganization in which the Company is the surviving corporation, the number of
shares that may be delivered under the Program and the number of shares subject
to each outstanding Award, and, if appropriate, the Exercise Price under each
such Option, shall be equitably adjusted by the Committee, whose determination
shall be final, binding and conclusive. After any adjustment made pursuant to
this Section 4(b), the number of shares subject to each outstanding Award shall
be rounded down to the nearest whole number. 

     

    5. Eligibility 

     

    Officers, other
Employees of the Company or a Subsidiary, and members of the Board, who are
responsible for or contribute to the management, growth, and profitability of
the business of the Company or a Subsidiary are eligible for participation in
this Program. The selection of individuals for participation in the Program
shall be made by the Committee, based on a subjective evaluation of each
individual's performance and expected future contribution to the Company and its
Subsidiaries, and may take into account the recommendations of the Chief
Executive Officer of the Company. 

     

    6. Granting of Stock Options 

     

         a) Grant of Stock Options. The Committee, in its discretion, may grant
Stock Options during any year that this Program is in effect to any eligible
Employee. The terms of each Stock Option shall be contained in an Agreement,
which shall contain the number of shares of Common Stock covered by the Option,
the period during which the Option may be exercised, the Exercise Price, and any
additional terms and conditions not inconsistent with this Program that the
Committee deems to be appropriate. The Committee shall have complete discretion
in determining the number of shares of Common Stock subject to each Option grant
(subject to the share limitations set forth in Section 4(a)) and, consistent
with the provisions of this Program, the terms, conditions and limitations
pertaining to each Option. The terms of Options need not be uniform among
Participants. By accepting a Stock Option, a Participant thereby agrees that the
Option shall be subject to all of the terms and conditions of this Program and
the applicable Agreement. 

     

         b) Option Term. The duration of each Option shall be
specified in the Agreement and shall not exceed ten (10) years. 

     

         c) Option Price. The Exercise Price of the Common Stock
purchasable under any Stock Option shall be determined by the Committee and set
forth in each Agreement, subject to adjustment in accordance with Section 4(b).
The Exercise Price shall not be less than the Fair Market Value of a share of
Common Stock on the date the Option is granted. 

     

    5 

     

    

    
    

         d) Exercise of Stock Options. Each Agreement shall contain a vesting
schedule, which shall specify when the Stock Option shall become vested and thus
exercisable; provided, however, that subsequent to the grant of an Option, the
Committee, at any time before complete termination of such Option, may
accelerate the time or times at which such Option may be exercised in whole or
in part, and may permit the Participant or any other designated person acting
for the benefit of the Participant to exercise all or any part of the Option
during all or part of the remaining Option term specified in Section 6(a),
notwithstanding any provision of the Agreement to the contrary. 

     

         e) Termination of Employment. 

     

              (i)
Death or Disability. If a Participant has a Termination of
Employment as a result of death or Disability, the time at which the unexercised
portion of any Option becomes exercisable may be accelerated, including to make
the Option immediately exercisable in full. Except as otherwise provided in an
applicable Agreement, the Option, to the extent that it is not exercisable on
the date of termination, shall expire and terminate on such date of termination
and the Option, to the extent that it is exercisable (including after any
acceleration of vesting) on such date of termination, shall expire and terminate
on the earlier of the Expiration Date or first anniversary of the Participant's
death or disability. Any exercise of an Option following a Participant's death
shall be made only by the Participant's executor or administrator, unless the
Participant's will specifically disposes of such award, in which case such
exercise shall be made only by the recipient of such specific disposition. If a
Participant's personal representative or the recipient of a specific disposition
shall be entitled to exercise an Option pursuant to the preceding sentence, such
representative or recipient shall be bound by all the terms and conditions of
the Program and the applicable Agreement which would have applied to the
Participant. 

     

              (ii)
Retirement. If a Participant has a Termination of
Employment due to Retirement, the time at which the unexercised portion of an
Option becomes exercisable may be accelerated, including to make the Option
immediately exercisable in full. Except as otherwise provided in an applicable
Agreement, the Option, to the extent that it is not exercisable on the date of
Retirement, shall expire and terminate on such date of Retirement and the
Option, to the extent that it is exercisable (including after any acceleration
of vesting) on such date of retirement, shall expire and terminate on the
earlier of the Expiration Date of the Option term or the first anniversary of
the Participant's Retirement. 

     

              (iii)
Other Termination. Except as otherwise provided in an
applicable Agreement, if a Participant has a Termination of Employment for
reasons other than as provided in subsections (i) and (ii) above, the Option, to
the extent that it is not exercisable on the date of termination, shall expire
and terminate on such date of termination and the Option, to the extent that it
is exercisable (including after any acceleration of vesting) on such date of
termination, shall expire and terminate on the earlier of the Expiration Date of
the Option or on the 60th day after the Participant's termination; provided,
however, that the unexercised portion of any Option (including any vested
portion) shall expire and terminate immediately upon a Termination of Employment
for Cause.

     

    6 

     

    

    
    

              (iv) In the event that the
Company in its sole discretion determines that the Participant has, at any time
during the 12-month period following Termination of Employment violated the
terms of any agreement with the Company or a Subsidiary regarding (i) engaging
in a business that competes with the business of the Company or any Subsidiary,
(ii) interfering in any material respect with any contractual or business
relationship of the Company or any Subsidiary, or (iii) soliciting the
employment of any person who was during such 12-month period, a director,
officer, partner, Employee, agent or consultant of the Company or a Subsidiary,
then (x) all outstanding unexercised Stock Options issued to the holder pursuant
to the Program shall be forfeited and (y) upon written request from the Company,
the Participant shall pay to the Company any gain realized upon the exercise of
an Option within the 12-month period preceding the violation or such other
period as may be set forth in the applicable Agreement. 

     

         f) Transfer of Option. Unless the Committee determines otherwise at
the time an Option is granted, no Option granted under the Program shall be
assignable or transferable other than by will or by the laws of descent and
distribution, and all Options shall be exercisable during the life of the
Participant only by the Participant or his legal representative. 

     

         g) Substituted Options. Notwithstanding anything to the contrary in
this Section 6, any Option issued in substitution for an option previously
issued by another entity, which substitution occurs in connection with a
transaction to which Code section 424(a) is applicable, may provide for an
exercise price computed in accordance with such Code section and the regulations
thereunder and may contain such other terms and conditions as the Committee may
prescribe to cause such substitute Option to contain as nearly as possible the
same terms and conditions (including the applicable vesting and termination
provisions) as those contained in the previously issued option being replaced
thereby. 

     

    7. Exercise of Stock Options 

     

    A Stock Option shall be
exercised by the delivery of a written notice of exercise to the Vice President
and Secretary of the Company, or such other person specified by the Committee,
setting forth the number of shares of Common Stock with respect to which the
Option is to be exercised, accompanied by full payment of the Exercise Price
and, pursuant to Section 16, any required withholding taxes. Payment of the
Exercise Price for the shares of Common Stock being purchased shall be made: (a)
by certified or official bank check (or the equivalent thereof acceptable to the
Company), or (b) at the discretion of the Committee and to the extent permitted
by law, by such other provision as the Committee may from time to time
prescribe. The Committee may allow exercises to be made by means of a “brokered
cashless exercise,” with the delivery of payment as permitted under Federal
Reserve Board Regulation T, subject to applicable securities law restrictions,
or by any other means which the Committee determines to be consistent with the
Program's purpose and applicable law. Payment shall be made on the date that the
Option or any part thereof is exercised, and no shares shall be issued or
delivered upon exercise of an Option until full payment has been made by the
Participant. Promptly after receiving payment of the full Exercise Price, the
Company shall, subject to the provisions of Section 13, deliver to the
Participant, or to such other person as may then have the right to exercise the
Option, a certificate for the shares of Common Stock for which the Option has
been exercised. 

     

    7 

     

    

    
    

    8. Employees Based Outside of the United
States 

     

    Notwithstanding any
provision of this Program to the contrary, in order to foster and promote the
achievement of the purposes of the Program, or to comply with these provisions
in other countries in which the Company or any Subsidiary operates or has
Employees, the Committee, in its sole discretion, shall have the power and
authority to (i) determine which Employees employed outside the United States
are eligible to participate in the Program, (ii) modify the terms and conditions
of any options granted to Employees who are employed outside the United States
(including the grant of stock appreciation rights, as described in the following
paragraph, in lieu of Stock Options), and (iii) establish subprograms, modified
Option exercise procedures and other terms and procedures to the extent such
actions may be necessary or advisable. 

     

    The Committee in its
discretion may grant stock appreciation rights in lieu of Stock Options to
Employees employed outside the United States. A stock appreciation right shall
provide an Employee the right to receive in cash the difference between the Fair
Market Value of a share of Common Stock on the grant date and the exercise date,
and otherwise shall have the same terms and conditions as a Stock Option granted
hereunder. Stock appreciation rights granted under this Section 8 shall be
considered as Stock Options for the application of the limitations in Section
4(a) of the Program. 

     

    9. No Rights as a Stockholder 

     

    No Participant (or other
person having the right to exercise an Option) shall have any of the rights of a
stockholder of the Company with respect to shares subject to an Option until the
issuance of a stock certificate to such person for such shares or the
establishment of an account evidencing ownership of such shares in
uncertificated form, except as otherwise provided in Section 4(b). 

     

    10. Restricted Stock 

     

         a) Restricted Stock Grants. The Committee may grant Restricted Stock to
such key persons, in such amounts, and subject to such vesting and forfeiture
provisions and other terms and conditions as the Committee shall determine in
its sole discretion, subject to the provisions of the Program. The terms of a
grant of Restricted Stock shall be contained in an Agreement, which shall
contain the number of shares of Restricted Stock granted, when the Restricted
Stock vests and any additional terms and conditions not inconsistent with this
Program that the Committee deems to be appropriate If the Restricted Stock is
newly issued by the Company, the Participant must make payment to the Company or
its exchange agent in an amount at least equal to the par value of the shares as
required by the Committee and in accordance with the Delaware General
Corporation Law. 

     

         b) Issuance of Stock
Certificate(s). Promptly
after the Committee grants Restricted Stock to a Participant, the Company or its
exchange agent shall issue to the Participant a stock certificate or stock
certificates for the shares of Common Stock covered by the Award or shall
establish an account evidencing ownership of the stock in uncertificated form.
Upon the issuance of such stock certificate(s) or establishment of such account,
the Participant shall have the rights of a stockholder with respect to the
restricted stock, subject to: (i) the nontransferability restrictions and
forfeiture provision described in Sections 10(d) and 10(e); (ii) in the
Committee’s discretion, a requirement that any dividends paid on such shares
shall be held in escrow until all restrictions on such shares have lapsed; and
(iii) any other restrictions and conditions contained in the applicable
Agreement.

     

    8 

     

    

    
    

         c) Custody of Stock
Certificate(s). Unless the
Committee shall otherwise determine, any stock certificates issued evidencing
shares of restricted stock shall remain in the possession of the Company until
such shares are free of any restrictions specified in the applicable Agreement.
The Committee may direct that such stock certificate(s) bear a legend setting
forth the applicable restrictions on transferability or, if the Restricted Stock
is in book entry form, that such book entry or account be subject to electronic
coding or stop order indicating that such shares of Restricted Stock are
restricted by the terms of the Program. Such legend, electronic coding or stop
order shall not be removed until such shares of Restricted Stock vest.

     

         d) Nontransferability. Restricted Stock may not be sold, assigned,
transferred, pledged or otherwise encumbered or disposed of except as otherwise
specifically provided in this Program or the applicable Agreement. The Committee
at the time of grant shall specify the date or dates (which may depend upon or
be related to a period of continued employment with the Company, the attainment
of performance goals or other conditions or a combination of such conditions) on
which the nontransferability of the restricted stock shall laps. 

     

         e) Termination of Employment. Except as may otherwise be provided by the
Committee at any time prior to a Participant’s Termination of Employment, a
Participant’s Termination of Employment for any reason (including death) shall
cause the immediate forfeiture of all Restricted Stock that has not yet vested
as of the date of such Termination of Employment. Unless the Board or the
Committee determines otherwise, all dividends paid on such shares also shall be
forfeited, whether by termination of any escrow arrangement under which such
dividends are held, by the Participant’s repayment of dividends received
directly, or otherwise. 

     

    11. Unrestricted Stock 

     

    The Committee may grant
(or sell at a purchase price at least equal to par value) shares of Common Stock
free of restrictions under the Program, to such key persons and in such amounts
as the Committee shall determine in its sole discretion. Shares may be thus
granted or sold in respect of past services or other valid consideration.

     

    12. Stock Units 

     

         a) Stock Unit Grants. The Committee may grant Stock Units to such
key persons, in such amounts, and subject to such terms and conditions as the
Committee shall determine in its discretion, subject to the provisions of the
Program. The terms of a grant of Stock Units shall be contained in an Agreement,
which shall contain the number of Stock Units granted, whether the Stock Unit is
subject to vesting and, to the extent applicable, when the Stock Units vest,
when the shares of Common Stock will be issued and any additional terms and
conditions not inconsistent with this Program that the Committee deems to be
appropriate. Unless the applicable Agreement provides otherwise, a share of
Common Stock will be issued immediately upon vesting of a Stock Unit. Stock
Units may be awarded independently of or in connection with any other Award
under the Program.

     

    9 

     

    

    
    

         b) Nontransferability. Stock Units may not be sold, assigned,
transferred, pledged or otherwise encumbered or disposed of except as otherwise
specifically provided in this Program or the applicable Agreement.

     

         c) Vesting. Stock Units may be granted fully vested or
subject to vesting. If a Stock Units is subject to vesting, the Committee at the
time of grant shall specify the date or dates (which may depend upon or be
related to a period of continued employment with the Company, the attainment of
performance goals or other conditions or a combination of such conditions) on
which the Stock Units shall vest. 

     

         d) Termination of Employment. Except as may otherwise be provided by the
Committee at any time prior to a Participant’s Termination of Employment, a
Participant’s termination of employment for any reason (including death) shall
cause the immediate forfeiture of all Stock Units that have not yet vested as of
the date of such Termination of Employment. 

     

    13. Consents and Approvals 

     

    If the Committee shall
at any time determine that any Consent (as hereinafter defined) is necessary or
desirable as a condition of, or in connection with, the issuance of shares under
the Program or the taking of any other action thereunder (each such action being
hereinafter referred to as a “Program Action”), then such Program Action shall
not be taken, in whole or in part, unless and until such Consent shall have been
effected or obtained to the full satisfaction of the Committee. The term
“Consent” as used herein with respect to any Program Action means (a) any and
all listings, registrations or qualifications in respect thereof upon any
securities exchange or under any federal, state or local law, rule or
regulation, (b) any and all written agreements and representations by the
Participant with respect to the disposition of shares, or with respect to any
other matter, which the Committee shall deem necessary or desirable to comply
with the terms of any such listing, registration or qualification or to obtain
an exemption from the requirement that any such listing, qualification or
registration be made and (c) any and all consents, clearances and approvals in
respect of a Program Action by any governmental or other regulatory bodies.

     

    14. Change in Control 

     

         a) Change in Control Defined. A “Change in Control” shall be deemed to
have occurred at such time as: 

     

              (i) a “person” or “group”
within the meaning of Section 13(d) of the Securities Exchange Act of 1934 (the
“Exchange Act”) (other than the Company or any of its Subsidiaries or any
employee benefit plans of the Company or any of its Subsidiaries or any
Permitted Holders) becomes the direct or indirect “beneficial owner”, as defined
in Rule 13d-3 under the Exchange Act, of 50% or more, in the aggregate, of the
voting power of the (x) Common Stock and Class B Common Stock then outstanding
or (y) other capital stock into which the Common Stock or Class B Common Stock
is reclassified or changed; 

     

    10 

     

    

    
    

              (ii)
the consummation of any share
exchange, consolidation or merger of the Company pursuant to which the Common
Stock will be converted into cash, securities or other property or any sale,
lease or other transfer in one transaction or a series of transactions of all or
substantially all of the consolidated assets of the Company and its
Subsidiaries, taken as a whole, to any person other than to a Subsidiary of the
Company; provided, however, that a transaction where the holders of the Common
Stock and the Class B Common Stock immediately prior to such transaction own,
directly or indirectly, more than 50% of aggregate voting power of all classes
of common equity of the continuing or surviving corporation or transferee
entitled to vote generally in the election of directors immediately after such
event shall not be a Change in Control; 

     

              (iii)
the Continuing Directors cease to
constitute at least a majority of the Company’s board of directors; or

     

              (iv)
the stockholders of the Company
approve any plan or proposal for the liquidation or dissolution of the Company.

     

              “Permitted Holder” means each of Dr. Felix
Zandman or his wife, children or lineal descendants, the Estate of Mrs. Luella
B. Slaner or her children or lineal descendants, any trust established for the
benefit of such persons, or any “person” (as such term is used in Section 13(d)
or 14(d) of the Exchange Act), directly or indirectly, controlling, controlled
by or under common control with any such person mentioned in this paragraph or
any trust established for the benefit of such persons or any charitable trust or
non-profit entry established by a Permitted Holder, or any group in which such
Permitted Holders hold more than a majority of the voting power of the Common
Stock and Class B Common Stock deemed to be beneficially owned by such group.

     

              “Continuing Director” means a director who
either was a member of the Board of Directors on April 1, 2008 or who becomes a
member of the Board of Directors subsequent to that date and whose election,
appointment or nomination for election by the stockholders of the Company is
duly approved by a majority of the Continuing Directors on the Board of
Directors at the time of such approval, either by a specific vote or by approval
of the proxy statement issued by the Company on behalf of the Board of Directors
in which such individual is named as nominee for director. 

     

    b) Effect of a Change in
Control.

     

              (i)
Upon the occurrence of a Change
in Control, the Committee may cause all or some of the Awards outstanding under
the Program to be fully vested as of the effective date of the Change in
Control. 

     

    11 

     

    

    
    

         (ii) Upon the occurrence of a Change in Control that results in (i) a
dissolution or liquidation of the Company, (ii) a sale of all or substantially
all of the Company’s assets, (iii) a merger or consolidation involving the
Company in which the Company is not the surviving corporation or (iv) a merger
or consolidation involving the Company in which the Company is the surviving
corporation but the holders of shares of Common Stock receive securities of
another corporation and/or other property, including cash, the Committee shall,
in its absolute discretion (which may include not treating all Options
uniformly), elect to either:

     

    
      	
            	1.	
            	amend each Stock
      Option so that it becomes exercisable in full at least two weeks before
      the occurrence of such event and expires upon the occurrence of such
      event;
	           	
            	     	 
	
            	2.	
            	cancel, effective
      immediately prior to the occurrence of such event, each Stock Option
      outstanding immediately prior to such event (whether or not then
      exercisable), and, in full consideration of such cancellation, pay to the
      Participant an amount in cash, for each share of Common Stock subject to
      such Stock Option equal to the excess of (x) the value, as determined by
      the Committee in its absolute discretion, of the property (including cash)
      received by the holder of a share of Common Stock as a result of such
      event over (y) the exercise price of such Stock Option; or
	
            	 
	
            	3.	
            	provide for the
      exchange of each Stock Option outstanding immediately prior to such event
      (whether or not then exercisable) for an option on some or all of the
      property which a holder of the number of shares of Common Stock subject to
      such Stock Option would have received and, incident thereto, make an
      equitable adjustment as determined by the Committee in its absolute
      discretion in the exercise price of the Stock Option, or the number of
      shares or amount of property subject to the Stock Option or, if
      appropriate, provide for a cash payment to the Participant in partial
      consideration for the exchange of the Stock
Option.

    

     

               (iii) The Committee shall appropriately adjust outstanding grants of Stock
Units to reflect any dividend, stock split, reverse stock split,
recapitalization, merger, consolidation, combination, exchange of shares or
similar corporate change in order to prevent the enlargement or dilution of
rights of Participants.

     

    15. Limitations Imposed by Section
162(m)

     

         a) Qualified Performance-Based
Compensation. The
Committee may make the granting and/or vesting of an Award subject to the
attainment of one or more pre-established objective performance goals during a
performance period, as set forth below. It is intended that the compensation
realized by the Participant from such Awards would qualify as “qualified
performance-based compensation” within the meaning of Code section
162(m).

     

    12

     

    

    
    

              (i)
Performance Goals. Prior to the ninety-first (91st) day of the
applicable performance period or during such other period as may be permitted
under section 162(m) of the Code, the Committee shall establish one or more
objective performance goals with respect to such performance period. Such
performance goals shall be expressed in terms of one or more of the following
criteria: (a) earnings (either in the aggregate or on a per-share basis,
reflecting dilution of shares as the Committee deems appropriate and, if the
Committee so determines, net of or including dividends); (b) adjusted net income
(meaning net income, excluding  specified items of income, expense, gain or
loss, including, without limitation,  restructuring and related severance
costs, fixed asset or inventory write-downs and related purchase commitment
charges, impairment charges for goodwill or indefinite-lived intangible assets,
and individually material one-time gains and charges, all net of their related
tax effects); (c) adjusted operating income (meaning operating income, excluding
 specified items of income, expense, gain or loss, including, without
limitation,  restructuring and related severance costs, fixed asset or inventory
write-downs and related purchase commitment charges, impairment charges for
goodwill or indefinite-lived intangible assets, and individually material
one-time gains or charges); (d) gross or net sales; (e) cash flow(s) (including
either operating or net cash flows); (f) financial return ratios; (g) total
shareholder return, shareholder return based on growth measures or the
attainment by the shares of a specified value for a specified period of time,
share price or share price appreciation; (h) value of assets, return or net
return on assets, net assets or capital (including invested capital); (i)
adjusted pre-tax margin; (j) margins, profits and expense levels; (k) dividends;
(l) market share, market penetration or other performance measures with respect
to specific designated products or product groups and/or specific geographic
areas; (m) reduction of losses, loss ratios or expense ratios; (n) reduction in
fixed costs; (o) operating cost management; (p) cost of capital; (q) debt
reduction; (r) productivity improvements; (s) inventory turnover measurements;
or (t) customer satisfaction based on specified objective goals or a
Company-sponsored customer survey. Each such performance goal (A) may be
expressed (1) with respect to the Company as a whole or with respect to one or
more divisions or business units, (2) on a pre-tax or after-tax basis, (3) on an
absolute and/or relative basis, and (B) may employ comparisons with past
performance of the Company (including one or more divisions) and/or the current
or past performance of other companies, and in the case of earnings-based, net
income-based or operating income-based measures, may employ comparisons to net
revenue, capital, stockholders’ equity and shares
outstanding. 

     

    To the extent
applicable, the measures used in performance goals set under the Program shall
be determined in accordance with generally accepted accounting principles
(“GAAP”) and in a manner consistent with the methods used in the Company's
regular reports on Forms 10-K and 10-Q, without regard to any of the following,
unless otherwise determined by the Committee consistent with the requirements of
section 162(m)(4)(C) and the regulations thereunder:

     

    
      	
            	1.	
            	all
      items of gain, loss or expense for a fiscal year that are related to
      special, unusual or non-recurring items, events or circumstances affecting
      the Company or the financial statements of the Company;
	           	
            	     	 
	
            	2.	
            	all
      items of gain, loss or expense for a fiscal year that are related to (i)
      the disposal of a business or discontinued operations or (ii) the
      operations of any business acquired by Company during the fiscal year;
      and
	
            	 
	
            	3.	
            	all
      items of gain, loss or expense for a fiscal year that are related to
      changes in accounting principles or to changes in applicable law or
      regulations.
	
            	 
	
            	4.	
            	To the
      extent any objective performance goals are expressed using any earnings or
      sales-based measures that require deviations from GAAP, such deviations
      shall be at the discretion of the Committee and established at the time
      the applicable performance goals are
established.

    

     

               (ii) Performance Period. The Committee in its sole discretion shall
determine the length of each performance period.

     

    13

     

    

    
    

     

         b) Nonqualified Deferred
Compensation.
Notwithstanding any other provision hereunder, if and to the extent that the
Committee determines the Company’s federal tax deduction in respect of an Award
may be limited as a result of section 162(m) of the Code, the Committee may take
the following actions:

     

              (i) With respect to Options,
the Committee may delay the exercise or payment, as the case may be, in respect
of such Options until a date that is within 30 days after the date that
compensation paid to the grantee no longer is subject to the deduction
limitation under section 162(m) of the Code. In the event that a Participant
exercises an Option at a time when the grantee is a 162(m) covered employee, and
the Committee determines to delay the exercise or payment, as the case may be,
in respect of such Option, the Committee shall credit a cash amount equal to the
Fair Market Value of the Common Stock payable to the Participant to a book
account. The amount credited to the book account shall be paid to the
Participant within 30 days after the date that compensation paid to the grantee
no longer is subject to the deduction limitation under section 162(m) of the
Code. The Participant shall have no rights in respect of such book account and
the amount credited thereto shall not be transferable by the Participant other
than by will or laws of descent and distribution. The Committee may credit
additional amounts to such book account as it may determine in its sole
discretion. Any book account created hereunder shall represent only an unfunded,
unsecured promise by the Company to pay the amount credited thereto to the
Participant in the future. 

     

              (ii) With respect to
Restricted Stock or Stock Units, the Committee may require the Participant to
surrender to the Committee any certificates with respect to Restricted Stock and
agreements with respect to Stock Units, in order to cancel the awards of such
Restricted Stock or Stock Units. In exchange for such cancellation, the
Committee shall credit to a book account a cash amount equal to the Fair Market
Value of the shares of Common Stock subject to such Awards. The amount credited
to the book account shall be paid to the Participant within 30 days after the
date that compensation paid to the grantee no longer is subject to the deduction
limitation under section 162(m) of the Code. The Participant shall have no
rights in respect of such book account and the amount credited thereto shall not
be transferable by the Participant other than by will or laws of descent and
distribution. The Committee may credit additional amounts to such book account
as it may determine in its sole discretion. Any book account created hereunder
shall represent only an unfunded, unsecured promise by the Company to pay the
amount credited thereto to the Participant in the future. 

     

    16. Tax Withholding 

     

    The Company shall
withhold any taxes required to be withheld by federal, state or local government
in connection with an Award. The Company shall have the right to require a
Participant to remit to the Company an amount sufficient to satisfy any federal,
state and local withholding tax requirements prior to the delivery of any
certificate or certificates for shares. A Participant may pay the withholding
tax in cash, or, if the Agreement provides, a Participant may also elect to have
the number of shares of Common Stock he is to receive reduced by the smallest
number of whole shares of Common Stock which, when multiplied by the Fair Market
Value of the shares determined as of the date on which the amount of tax to be
withheld is determined, is sufficient to satisfy federal, state and local, if
any, withholding taxes arising from the Award. Any such election must be made on
or before the date on which the amount of tax required to be withheld is
determined. 

     

    14 

     

    

    
    

    17. Right of Discharge Reserved 

     

    Nothing in the Program
or in any Agreement shall confer upon any Participant the right to continue as
an Employee or executive officer of the Company or any Subsidiary, or affect any
right which the Company may have to terminate such Employee or executive
officer. 

     

    18. Amendment 

     

    The Board may amend the
Program, and the Committee may amend any outstanding Agreement, in any respect
whatsoever, except that, other than pursuant to Section 14(b), no amendment to
an outstanding Agreement shall materially impair any rights or materially
increase any obligations of any Participant under any Award without the consent
of the Participant (or, after the Participant's death, the person succeeding to
the Participant’s interests with respect to the Award). An amendment shall be
subject to stockholder approval to the extent necessary for compliance with Code
section 162(m) and other applicable law or regulation. 

     

    19. Term of the Program 

     

    This Program shall be
effective as of _______, subject to approval by the stockholders of the Company.
The Program shall terminate upon the earlier of (i) the date on which all Common
Stock available under this Program have been issued, (ii) the tenth anniversary
of the effective date, or (iii) the termination of this Program by the Committee
subject to approval of the Board of Directors of the Company. No Award may be
granted after the termination of the Program. Any outstanding Awards as of the
date the Program terminates shall remain in full force and effect, subject to
the terms of the Program and the relevant Agreement relating to such Award.

     

    20. Indemnification 

     

    Each person who is or
shall have been a member of the Committee, or of the Board of Directors, shall
be indemnified and held harmless by the Company from and against any loss, cost,
liability or expense that may be imposed upon or reasonably incurred by such
person in connection with or resulting from any claim, action, suit or
proceeding to which such person may be a party or in which such person may be
involved by reason of any action taken or failure to act under the Program and
against and from any and all amounts paid by such person in settlement thereof
with the Company's approval, or paid by such person in satisfaction of any
judgment in any such action, suit or proceeding against such person, provided
such person shall give the Company an opportunity, at its own expense, to handle
and defend the same before such person undertakes to handle and defend it on
such person's own behalf. The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which such persons may be
entitled from the Company, as a matter of law, or otherwise. 

     

    21. Successors 

     

    All obligations of the
Company under the Program, with respect to any Award granted hereunder, shall be
binding on any successor to the Company, whether the existence of such successor
is the result of a direct or indirect purchase, merger consolidation or
otherwise, of all or substantially all of the business and/or assets of the
Company. 

     

    15 

     

    

    
    

    22. Severability 

     

    In the event any
provision of the Program shall be held illegal or invalid for any reason, such
illegality or invalidity shall not affect the remaining parts of the Program,
and the Program shall be construed and enforced as if the illegal or invalid
provision had not been included. 

     

    23. Governing Law 

     

    This Program and any
grant of Awards made and any action taken hereunder shall be subject to and
construed and interpreted in accordance with the laws of the State of Delaware,
without giving effect to principles of conflict of laws. 

     

    16

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