Document:

EXHIBIT 10.1

 

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this "Agreement") is made as of February 15, 2018 (the "Effective Date"), by and between Vishay Europe GmbH, a company with limited liability organized under the laws of Germany ("Vishay Europe"), Vishay Intertechnology, Inc., a Delaware corporation ("Vishay"), and LORI LIPCAMAN (the "Executive").

W I T N E S S E T H:

WHEREAS, Vishay Europe desires to continue to employ Executive and Executive desires to accept such continued employment; and

WHEREAS, Vishay Europe and Executive intend for this Agreement to document the terms and conditions of the employment relationship.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.   Definitions.

	
1.1.

	
"Accrued Compensation" means (a) earned but unpaid Base Salary (as defined below) and (b) unpaid expense reimbursements.

	
1.2.

	
"Board of Directors" means the Board of Directors of Vishay.

	
1.3.

	
"Cause" means any of the following:

	
(a)

	
Executive's conviction of a felony or any other crime involving moral turpitude (whether or not involving Vishay and/or its subsidiaries);

	
(b)

	
any act or failure to act by Executive involving dishonesty, fraud, misrepresentation, theft or embezzlement of assets from Vishay and/or its subsidiaries; or

	
(c)

	
Executive's (i) willful and repeated failure to substantially perform her duties under this Agreement (other than as a result of total or partial incapacity due to physical or mental illness or injury) or (ii) willful and repeated failure to substantially comply with any policy of Vishay and/or its subsidiaries applicable to Executive; provided, however, that a termination pursuant to this clause (c) will not become effective unless Executive fails to cure such failure to perform or comply within twenty (20) days after written notice thereof from Vishay Europe.

 

                For avoidance of doubt, a termination due to Disability will not constitute a termination without Cause.

	
1.4.

	
"Change in Control" has the meaning defined in the Stock Incentive Program and for the avoidance of doubt refers to a change in control of Vishay.

	
1.5.

	
"Compensation Committee" means the Compensation Committee of the Board of Directors.

	
1.6.

	
"Date of Termination" means the effective date of the cessation of Executive's employment by Vishay Europe.

	
1.7.

	
"Disability" means a disability entitling Executive to long-term disability benefits under a plan of Vishay (or a subsidiary or affiliate of Vishay).

	
1.8.

	
"Good Reason" means:

	
(a)

	
without Executive's express written consent, the occurrence of any of the following events:

	
(i)

	
any material and adverse change in Executive's titles, offices, duties or responsibilities (including reporting responsibilities) with respect to Vishay Europe or Vishay from those set forth in this Agreement;

	
(ii)

	
a material reduction in Executive's annual Base Salary (as the same may be increased from time to time after the Effective Date);

	
(iii)

	
relocation of Executive's principal place of performance by more than 50 kilometers from [Address Redacted] (excluding for this purpose reasonable travel from to time); or

	
(iv)

	
a material breach of this Agreement by Vishay Europe;

 

provided however, that none of the foregoing events or conditions will constitute Good Reason unless Executive provides Vishay Europe with written objection to the event or condition within 30 days following the initial occurrence thereof, Vishay Europe does not reverse or otherwise cure the event or condition within 30 days of receiving that written objection, and Executive resigns her employment within 90 days following the expiration of that cure period.

	
(b)

	
In addition, if there occurs a Change in Control that also constitutes a "change in control event" as described in Treas. Reg. § 1.409A-3(i)(5)(i), then any resignation by Executive (other than a resignation when Cause exists) for which notice is given after that change in control event and that is effective during the 12 month period beginning four months after that change in control event, will constitute a resignation for Good Reason solely for purposes of Section 6.1.

	
1.9.

	
"Stock Incentive Program" means the Vishay Intertechnology 2007 Stock Incentive Program.

2.   Employment; Term.

	
2.1.

	
Employment.  Vishay Europe hereby continues to employ Executive, and Executive hereby accepts continued employment by Vishay Europe, in accordance with and subject to the terms and conditions set forth herein.

	
2.2.

	
Term.  Executive's employment pursuant to this Agreement shall commence on the Effective Date and continue for an indefinite term, until terminated in accordance with the terms of this Agreement.  Either party may terminate the employment relationship by delivery of written notice of termination to the other (a) at least seven months in advance of the Date of Termination, where notice of termination is given after a Change in Control that also constitutes a "change in control event" as described in Treas. Reg. § 1.409A-3(i)(5)(i) and the Date of Termination occurs during the sixteen month period after that change in control event, or (b) at least one year in advance of the effective Date of Termination, in any other case.  The Date of Termination will in any case occur on the last day of a calendar month.

3.   Duties.

	
3.1.

	
Position.  During the Term, Executive shall serve as Executive Vice President and Chief Financial Officer (CFO) of Vishay, or any other position which will be agreed by the parties, reporting directly to the Chief Executive Officer of Vishay or such other individual as may be designated by the Chief Executive Officer of Vishay from time to time.

	
3.2.

	
Authority and Responsibility.  Executive shall have authority and responsibility customarily applicable to the positions described in Section 3.1, and shall perform such other duties as may be assigned by Vishay or Vishay Europe from time to time.

	
3.3.

	
Activities.  Excluding any periods of vacation, personal, sick leave and other permitted absences to which Executive is entitled according to this Agreement and applicable law, Executive shall devote her full professional attention and best efforts during the Term to the business and affairs of Vishay and its subsidiaries and affiliates.  It shall not be considered a violation of the foregoing for Executive to (a) provide services to Vishay or any of its subsidiaries or affiliates, (b) serve on corporate, industry, civic or charitable boards or committees, or (c) manage personal investments, so long as such activities do not violate Executive's fiduciary duties and do not interfere with the performance of Executive's responsibilities as an employee of Vishay Europe in accordance with this Agreement.

4.   Compensation.

	
4.1.

	
Base Salary.  Vishay Europe shall pay Executive a base salary of not less than €402,367 per year (the "Base Salary"), which shall be reviewed annually by the Compensation Committee.  Such Base Salary shall be paid in accordance with Vishay Europe's standard salary policies as they exist from time to time, subject to such deductions, if any, as are required by law or elected by Executive.

	
4.2.

	
Bonus.  For each fiscal year ending both during the Term and prior to the time that notice of termination is given by either party, Executive shall be eligible to earn an annual performance bonus ("Bonus"), payable in cash, with a target and maximum opportunity equal to 100% of her Base Salary. The actual amount of Bonus payable to Executive shall be determined by the Compensation Committee, and shall be based upon Vishay's achievement of certain corporate and/or individual performance goals to be established by the Compensation Committee in its sole discretion.

4.3. Annual Equity Grant.

	
(a)

	
On or about each January 1st occurring both during the Term and prior to the time that notice of termination is given by either party, Vishay shall grant Executive an annual equity award under the Stock Incentive Program (or any successor plan or arrangement thereof) having a grant date fair value approximately equal to 40% of Executive's Base Salary on such date. Subject to Executive's continued service, such equity awards shall vest on January 1 of the third year following their grant, provided that the vesting of up to 75% of the equity awards granted in any year (determined as a percentage of grant date fair value) may also be subject to the achievement of performance goals established by the Compensation Committee.

	
(b)

	
With respect to equity awards granted to Executive on or after January 1, 2017 and prior to the Effective Date, and equity awards granted to Executive pursuant to this Section 4.3, if Executive's service ceases due to (i) termination by Vishay Europe without Cause, (ii) resignation by Executive with Good Reason (or for any reason after Executive attains age 62, unless Cause then exists), or (iii) her death or Disability, then subject in each case (other than death) to Executive's execution of a release of claims in favor of Vishay and its subsidiaries and affiliates in accordance with Section 6.2, any service-based vesting criteria applicable to such equity awards will be deemed satisfied and any performance-based vesting criteria applicable to such equity awards will remain in effect.

	
(c)

	
In the event of a Change in Control, all then outstanding equity awards granted pursuant to this Section 4.3 shall immediately vest.

	
(d)

	
If Executive's service ceases at any time due to her termination by Vishay Europe with Cause or by the Executive without Good Reason, except as provided under Section 4.3(b), all unvested equity awards will then immediately and automatically be forfeited.

 

	
5.1.

	
Health and Nursing Care Allowance.  Executive shall receive a monthly allowance equivalent to half of the contributions for adequate health and nursing care insurance for herself, her spouse and her dependent children. This allowance shall be limited in amount to half of the general contribution rate of the state health and nursing care insurance system.

	
5.2.

	
Reimbursement of Expenses.  In accordance with Vishay Europe's standard reimbursement policies as they exist from time to time, Vishay Europe shall reimburse Executive for all reasonable and documented travel, business entertainment and other business expenses incurred by Executive in connection with the performance of her duties under this Agreement.

	
5.3.

	
Vacation, Personal and Sick Days.  Executive shall be entitled to vacation days, holidays, military reserve service, personal and sick days ("Entitled Leave") according to German law and Vishay Europe's policies for its senior executives, as in effect from time to time.  Executive shall be entitled to carry forward or to redeem her unused vacation days in accordance with and subject to Vishay Europe's policies for its senior executives, as in effect from time to time, ("Outstanding Entitled Leave").

	
5.4.

	
Indemnification.  Vishay Europe shall indemnify Executive to the extent provided in Vishay Europe's organizational documents, as in effect from time to time.

	
5.5.

	
Other.  Executive shall be entitled to such other benefits or perquisites, including contributions to Managers' Insurance and the like, as is customary in Germany and as Vishay Europe generally makes available to its senior executives.

 

 

 

6.   Compensation Upon Termination.

	
6.1.

	
Termination by Vishay Europe Without Cause; Termination by Executive With Good Reason.  In the event Executive's employment with Vishay Europe is terminated by Vishay Europe without Cause or by Executive with Good Reason, Executive shall be entitled to the following:

	
(a)

	
continued payment of Executive's then current Base Salary from the Date of Termination until the third anniversary of the Date of Termination, deducting the applicable notice period subject to continued salary payment in accordance with Section 2.2(b), to be paid in equal installments in accordance with Vishay Europe's standard payroll practices as in effect from time to time, but no less frequently than monthly, and which shall commence in accordance with Section 6.2; provided, however, that if the Date of Termination occurs within 16 months following a Change in Control that also constitutes "change in control event" described in Treas. Reg. § 1.409A-3(i)(5)(i), then in lieu of the installments payments otherwise due under this Section 6.1(a), Executive will instead receive a single lump sum payment equal to 29 months' Base Salary at the time specified in Section 6.2;

	
(b)

	
payment of any earned but unpaid Bonus for any fiscal year ending prior to the date that notice of termination is given, payable in the same manner and at the same time as such Bonus would have been paid in the absence of such termination; and

	
(c)

	
payment of a pro-rata Bonus for the fiscal year in which notice of termination is given, determined and paid in the same manner and at the same time as such Bonus would have been determined and paid in the absence of such termination.  The pro-ration of such Bonus will be determined based on the number of days of the applicable fiscal year that have transpired prior to the date that notice of termination is given relative to the total number of days contained in that fiscal year.

	
6.2.

	
Release.  Notwithstanding any provision of this Agreement, Executive shall not be entitled to receive any payments after the Date of Termination pursuant to Section 6.1 unless Executive has executed and delivered to Vishay Europe and Vishay a release of all claims in the form prescribed by Vishay Europe ("Release"), and such Release has become irrevocable within 60 days following the Date of Termination.  The severance benefits described in Section 6.1(a) will be paid or begin to be paid, as applicable, as soon as practicable after the Release becomes irrevocable; provided, that if the 60-day period described in the previous sentence begins in one taxable year and ends in the next succeeding taxable year, such payments shall not be paid or begin to be paid, as applicable, until the succeeding taxable year.

	
6.3.

	
Death and Disability.  In the event that Executive's employment with Vishay Europe ceases due to her death or Disability, Executive will be entitled to receive:

	
(a)

	
payment of any earned but unpaid Bonus for any fiscal year ending prior to the Date of Termination, payable in the same manner and at the same time as such Bonus would have been paid in the absence of such termination; and

	
(b)

	
payment of a pro-rata Bonus for the fiscal year in which the Date of Termination occurs, determined and paid in the same manner and at the same time as such Bonus would have been determined and paid in the absence of such termination.  The pro-ration of such Bonus will be determined based on the number of days of the applicable fiscal year that have transpired prior to the Date of Termination relative to the total number of days contained in that fiscal year;

provided, in the case of a cessation of employment due to Disability, such Bonus payments will be conditioned on Executive's execution of a release of claims in favor of Vishay and its subsidiaries and affiliates in accordance with Section 6.2.

7.   Garden Leave.

	
7.1.

	
In connection with a termination of employment, especially following notice of termination pursuant to Section 2.2 above or in connection with the conclusion of a separation agreement, or prior to retirement pursuant to Section 7.3 below, Vishay Europe reserves the right to release Executive in whole or in part from the obligation to work, while continuing to pay her remuneration ("Garden Leave").  To the extent Executive has any Outstanding Entitled Leave at the time of Termination, the amount of Outstanding Entitled Leave, if any, will be deducted from the duration of Executive's Garden Leave and all Outstanding Entitled Leave shall then be deemed settled.

	
7.2.

	
Garden Leave shall initially be irrevocable for the duration of any Outstanding Entitled Leave, if applicable.  Garden Leave remaining after any Outstanding Entitled Leave has been satisfied shall remain in effect and be revocable in case questions arise regarding the winding up of the contractual relationship or temporary work becomes necessary for operational reasons.  This shall not affect the remaining provisions of this Agreement or any restrictive covenant agreement between Vishay or any of its subsidiaries and the Executive.  In this respect, all terms of any restrictive covenant agreement, including but not limited to, terms regarding confidentiality and duty not to compete, shall remain in effect.  Any income earned elsewhere during Garden Leave shall be deducted pursuant to Sec. 615 sentence 2 of the Civil Code, however, this provision does not apply during any Outstanding Entitled Leave.

	
7.3.

	
The Pension Promise (Versorgungszusage) as of October 10, 2000, as amended March 3, 2017, remains in full force and effect.

	
7.4.

	
Except as otherwise provided in Sections 1.8(b), 4.3(c) and 6.1(a) above, it is the understanding of the parties hereto that no payments under this Agreement are contingent upon or related to a change in control of Vishay or Vishay Europe and all such payments are to be paid without regard to the occurrence of a change in control of Vishay or Vishay Europe.

7.5. Section 409A.

	
(a)

	
Notwithstanding any other provision of this Agreement to the contrary or otherwise, to the extent any expense, reimbursement or in-kind benefit provided to Executive constitutes a "deferral of compensation" within the meaning of section 409A of the Internal Revenue Code of 1986, as amended (the "Code") and its implementing regulations and guidance (collectively, "Section 409A"); (i) the amount of expenses eligible for reimbursement or in-kind benefits provided to Executive during any calendar year will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided to Executive in any other calendar year; (ii) the reimbursements for expenses for which Executive is entitled to be reimbursed shall be made on or before the last day of the calendar year following the calendar year in which the applicable expense is incurred; and (iii) the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit.

	
(b)

	
For purposes of Section 409A, each payment in a series of payments provided to Executive pursuant to this Agreement will be deemed a separate payment.

	
(c)

	
Notwithstanding any other provision of this Agreement to the contrary or otherwise, any payment or benefit to Executive described in Section 6 that represents a "deferral of compensation" within the meaning of Section 409A shall only be paid or provided to Executive upon her "separation from service" within the meaning of Treas. Reg. §1.409A-1(h) (or any successor regulation).  To the extent compliance with the requirements of Treas. Reg. §1.409A-3(i)(2) (or any successor provision) is necessary to avoid the application of an additional tax under Section 409A to payments due to Executive upon or following her "separation from service," then notwithstanding any other provision of this Agreement (or any otherwise applicable plan, policy, agreement or arrangement), any such payments that are otherwise due within six months following Executive's "separation from service" will be deferred (without interest) and paid to Executive in a lump sum immediately following that six month period.  In the event Executive dies during that six month period, the amounts deferred on account of Treas. Reg. §1.409A-3(i)(2) (or any successor provision) shall be paid to the personal representatives of the Executive's estate within sixty (60) days following Executive's death. To the extent permitted by Treas. Reg. § 1.409A-1(b)(9)(or any successor provision), this provision shall not be construed as preventing payments to Executive pursuant to Section 6 in the first six months following Executive's "separation from service" equal to an amount up to two (2) times the lesser of: (i) Executive's annualized compensation for the year prior to the "separation from service;" and (ii) the maximum amount that may be taken into account under a qualified plan pursuant to section 401(a)(17) of the Code.

	
(d)

	
All benefits or payments provided by Vishay or Vishay Europe to Executive that would be deemed to constitute "nonqualified deferred compensation" within the meaning of Section 409A are intended to comply with or be exempt from Section 409A and this Agreement will be interpreted accordingly.  Nonetheless, no guaranty is made with respect to the tax treatment of any amount paid or payable to Executive.

8.   Miscellaneous.

	
8.1.

	
Complete Understanding; Amendment; Waiver.  This Agreement constitutes the complete understanding between the parties with respect to the employment of Executive and supersedes all other prior agreements and understandings, both written and oral, between the Executive, Vishay, and Vishay Europe (and/or any Vishay subsidiary or affiliate) with respect to the subject matter hereof, including without limitation the prior Compensation Matters Agreement, dated as of August 23, 2011, and as amended from time to time, and no statement, representation, warranty or covenant has been made by either party with respect thereto except as expressly set forth herein.  This Agreement shall not be altered, modified, amended or terminated except by a written instrument signed by each of the parties hereto.  Any waiver of any term or provision hereof, or of the application of any such term or provision to any circumstances, shall be in writing signed by the party charged with giving such waiver.  Waiver by either party hereto of any breach hereunder by the other party shall not operate as a waiver of any other breach, whether similar to or different from the breach waived.  No delay on the part of Vishay, Vishay Europe, or Executive in the exercise of any of their respective rights or remedies shall operate as a waiver thereof, and no single or partial exercise by Vishay, Vishay Europe, or Executive of any such right or remedy shall preclude other or further exercise thereof.

	
8.2.

	
Withholding Taxes.  Vishay Europe may withhold from all payments due to Executive (or her beneficiary or estate) under this Agreement all taxes which, by applicable law, Vishay Europe is required to withhold therefrom.

	
8.3.

	
Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.  If any provision of this Agreement shall be held invalid or unenforceable in part, the remaining portion of such provision, together with all other provisions of this Agreement, shall remain valid and enforceable and continue in full force and effect to the fullest extent consistent with law.

	
8.4.

	
Other Conditions of Service.  Executive's service will also be subject to all policies of Vishay and Vishay Europe in effect from time to time with respect to its executives generally, including (without limitation) any policies regarding clawbacks, securities trading or hedging or pledging of securities.

	
8.5.

	
Governing Law and Jurisdiction.  This Agreement shall be governed by and construed in accordance with the laws of Germany, without regard to the principles of conflicts of law.

	
8.6.

	
Titles and Captions.  All Section titles or captions in this Agreement are for convenience only and in no way define, limit, extend or describe the scope or intent of any provision hereof.

	
8.7.

	
Collective Bargaining Agreements.  The parties hereto acknowledge and confirm that the Executive does not fall within the scope of any tariff regulations and that this Agreement shall not be governed by any collective bargaining agreement.

	
8.8.

	
Counterparts.  This Agreement may be signed in one or more counterparts, each of which shall be deemed an original, and all such counterparts shall constitute but one and the same instrument.

        IN WITNESS WHEREOF, Executive has executed this Agreement and Vishay Europe and Vishay have each caused this Agreement to be executed in its name and on its behalf, on the date(s) below indicated.

  

	February 15, 2018	 	
By:

	
VISHAY EUROPE GMBH

 

/s/ Werner Gebhardt

	
Date

	 	 	
Name: Werner Gebhardt

Title: Managing Director

	February 15, 2018	 	
By:

	
 

VISHAY INTERTECHNOLOGY, INC.

 

/s/ Gerald Paul

	
Date

	 	 	
Name: Dr. Gerald Paul

Title: Chief Executive Officer

	February 15, 2018 	 	 	
 

EXECUTIVE

 

/s/ Lori Lipcaman

	
Date

	 	 	
Lori LipcamanEXHIBIT 10.2

 

Third Amendment to the Terms & Conditions Regarding the Appointment of Mr. Vandoorn as Chief Technology Officer

This third amendment to Terms & Conditions Regarding the Appointment of Mr. Vandoorn as Chief Technology Officer (the "Third Amendment"), made as of February 15, 2018, by and between Vishay Capacitors Belgium N.V., a Belgian company ("Vishay Belgium") and Johan Vandoorn ("Executive") (collectively, the "Parties").

WHEREAS, Executive is providing services to Vishay Belgium and is a Party to the Terms & Conditions Regarding the Appointment of Mr. Vandoorn as Chief Technology Officer (the "Terms & Conditions") made between the Parties dated January 16, 2012, as amended by the Amendment as of March 4, 2014 and the Second Amendment as of March 3, 2015.

WHEREAS, Vishay Belgium and Executive may amend the Terms & Conditions by mutual agreement in writing; and

WHEREAS, Vishay Belgium and Executive desire to amend the Terms & Conditions as set forth in this Third Amendment.

   NOW THEREFORE, in consideration of the premises and the mutual benefits to be derived herefrom and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

	
1.

	
Clause 2 of the Terms & Conditions ("Duration") is hereby deleted and replaced with the following:

Clause 2 – Definitions

	
2.1.

	
 "Cause" means any of the following:

	
(a)

	
Executive's conviction of a felony or any other crime involving moral turpitude (whether or not involving Vishay and/or its subsidiaries);

	
(b)

	
any act or failure to act by Executive involving dishonesty, fraud, misrepresentation, theft or embezzlement of assets from Vishay and/or its subsidiaries; or

	
(c)

	
Executive's (i) willful and repeated failure to substantially perform his duties under the Terms & Conditions (other than as a result of total or partial incapacity due to physical or mental illness or injury) or (ii) willful and repeated failure to substantially comply with any policy of Vishay and/or its subsidiaries applicable to Executive; provided, however, that a termination pursuant to this clause (c) will not become effective unless Executive fails to cure such failure to perform or comply within twenty (20) days after written notice thereof from Vishay Belgium.

For avoidance of doubt, a termination due to a condition entitling Executive to long-term disability benefits under a Vishay plan will not constitute a termination without Cause.

	
2.2.

	
"Change in Control" has the meaning defined in the Stock Incentive Program and for avoidance of doubt refers to a change in control of Vishay.

	
2.3.

	
"Good Reason" means:

	
(a)

	
Without Executive's express written consent, the occurrence of any of the following events:

	
(i)

	
any material and adverse change in Executive's titles, offices, duties, or responsibilities (including reporting responsibilities) with respect to Vishay Belgium or Vishay from those set forth in the Terms & Conditions, as amended from time to time;

	
(ii)

	
a material reduction in Executive's annual Fixed Fee (as the same may be increased from time to time);

	
(iii)

	
relocation of Executive's principal place of provision of services by more than 50 kilometers from [Address Redacted] (excluding for this purpose reasonable travel from time to time); or

	
(iv)

	
a material breach of the Terms & Conditions, as amended from time to time, by Vishay Belgium;

provided however, that none of the foregoing events or conditions will constitute Good Reason unless Executive provides Vishay Belgium with written objection to the event or condition within 30 days following the initial occurrence thereof, Vishay Belgium does not reverse or otherwise cure the event or condition within 30 days of receiving that written objection, and Executive resigns within 90 days following the expiration of that cure period.

	
(b)

	
In addition, if there occurs a Change in Control that also constitutes a "change in control event" as described in Treas. Reg. § 1.409A-3(i)(5)(i), then solely for the 12 month period beginning four months after that "change in control event," any resignation by Executive (other than a resignation when Cause exists) will constitute a resignation for Good Reason solely for purposes of Clause 13.2(a).

	
2.

	
Clause 7.4 of the Terms & Conditions ("Fees and benefits") is hereby deleted and replaced with the following:

		7.4.	
For each fiscal year ending both during the term and prior to the time of that notice of termination is given by either party, Executive shall be eligible to earn an annual performance bonus ("Bonus"), payable in cash, with a target and maximum opportunity equal to 100% of his Fixed Fee. The actual amount of the Bonus payable to Executive shall be determined by the Compensation Committee, and shall be based upon the achievement of certain corporate and/or individual performance goals to be established by the Compensation Committee in its sole discretion.

	
3.

	
The last sentence of subparagraph (a) of Clause 7.7 of the Terms & Conditions ("Fees and benefits") is hereby deleted and replaced with the following:

		(a)	
[...] Subject to Clause 7.7(b) and (e), the RSUs and PBRSUs shall vest on January 1 of the third year following their grant, provided that, in the case of the PBRSUs, only to the extent the performance criteria applicable to PBRSUs are realized.

	
4.

	
Subparagraph (b) of Clause 7.7 of the Terms & Conditions ("Fees and benefits") is hereby deleted and replaced with the following:

		(b)	
With respect to the equity awards granted to Executive before January 1, 2017, the RSUs shall immediately vest in full and the PBRSUs shall vest in accordance with their normal schedule and criteria upon (i) termination of the Appointment by Vishay Belgium without Cause, (ii) termination of the Appointment by Executive for Good Reason; or (iii) the death or disability of Executive. For the purpose of this Clause, disability means a disability entitling Executive to long-term disability benefits under a plan of Vishay Belgium or any other company of the Vishay group.

	
5.

	
A subparagraph (e) is hereby added to Clause 7.7 of the Terms & Conditions ("Fees and benefits"):

		(e)	
With respect to the equity awards granted to Executive on or after January 1, 2017 and prior to the date of entry into force of this Third Amendment, and equity awards granted to Executive pursuant this Clause 7.7, if Executive's service ceases due to (i) termination by Vishay Belgium without Cause, (ii) resignation by Executive with Good Reason (or for any reason after Executive attains age 62, unless Cause then exists), or (iii) his death or disability, then subject in each case (other than death) to Executive's execution of a release of claims in favor of Vishay and its subsidiaries and affiliates in accordance with Clause 13.2(c), any service-based vesting criteria applicable to such equity awards will be deemed satisfied and any performance-based vesting criteria applicable to such equity awards will remain in effect. For the purpose of this Clause, disability means a disability entitling Executive to long-term disability benefits under a plan of Vishay Belgium or any other company of the Vishay group.

	
6.

	
Clause 13 of the Terms & Conditions ("Termination") is hereby deleted and replaced with the following:

Clause 13 – Termination

	
13.1.

	
Termination.

   Executive's service with Vishay Belgium may be terminated by Executive or by Vishay Belgium for any or no reason.

	
13.2.

	
Compensation Upon Termination.

	
(a)

	
Termination by Vishay Belgium without Cause; Termination by Executive With Good Reason.  In the event Executive's service with Vishay Belgium is terminated by Vishay Belgium without Cause or by Executive with Good Reason, Executive shall be entitled to the following:

	
(i)

	
A lump sum cash payment equal to all accrued Fixed Fee and unpaid expense reimbursement, such payment to be made within 15 days after the effective date of termination.

	
(ii)

	
Payment of any otherwise earned but unpaid Bonus for any fiscal year ending prior to the effective date of termination, payable in the same manner and at the same time as such Bonus would have been paid in the absence of such termination.

	
(iii)

	
Payment of a pro-rata Bonus for the fiscal year in which the effective date of termination occurs, determined and paid in the same manner and at the same time as such Bonus would have been determined and paid in the absence of such termination. The proration of such Bonus will be determined based on the number of days of the applicable fiscal year that have transpired prior to the effective date of termination relative to the total number of days contained in that fiscal year.

	
(iv)

	
Continued payment of Executive's then current gross Fixed Fee from the effective date of termination until the third anniversary of the effective date of termination, to be paid in equal installments in accordance with Vishay Belgium standard payroll practices, as in effect from time to time, but no less frequently than monthly, and which shall commence in accordance with Clause 13.2(c); provided, however, that if such termination without Cause or resignation for Good Reason occurs within 16 months following a Change in Control that also constitutes "change in control event" described in Treas. Reg. § 1.409A-3(i)(5)(i), the amounts otherwise payable under this Clause (iv) will instead be paid in a single lump sum at the time specified in Clause 13.2(c).

	
(v)

	
All rights that Executive is entitled to under the terms of Vishay Belgium's benefit plans or arrangements (other than severance benefit plans).

	
(b)

	
Termination for any other reason (including for Cause). In the event Executive's service with Vishay Belgium is terminated for any reason other than as specified in Clause 13.2(a), Executive shall be entitled to (i) a lump sum cash payment equal to all accrued Fixed Fee and unpaid expense reimbursement, such payment to be made within 15 days after the effective date of termination; (ii) all rights that Executive is entitled to under the terms of Vishay Belgium's benefit plans or arrangements; and (iii) in the case of cessation of services due to Executive's death or disability, the Bonus payments described above in Clauses 13.2(a)(ii) and (iii); provided, in the case of cessation due to disability, such Bonus payments will be conditioned on Executive's execution of a release of claims in favor of Vishay and its subsidiaries and affiliates in accordance with Clause 13.2(c). For the purpose of this Clause, disability means a disability entitling Executive to long-term disability benefits under a plan of Vishay Belgium or any other company of the Vishay group.

	
(c)

	
Release.  Notwithstanding any provision of the Terms & Conditions, as amended from time to time, (i) Executive shall not be entitled to receive any payments pursuant to Clauses 13.2(a)(ii), (iii) and (iv) unless Executive has executed and delivered to Vishay Belgium a release of all claims in the form prescribed by Vishay Belgium ("Release"), and such Release becomes irrevocable within 60 days following the effective date of termination, and (ii) Executive shall be entitled to receive such payments only so long as Executive has not breached the provisions of Clause 13.3 hereof. The severance benefits described in Clauses 13.2(a)(ii), (iii) and (iv) will be paid or begin to be paid, as applicable, as soon as practicable after the Release becomes irrevocable (or, in the case of the payments described in Clauses 13.2(a)(ii) and (iii), at such later time as such Bonuses would have otherwise been payable in the absence of such termination).

	
13.3.

	
Non-Compete.

	
(a)

	
During the term of the Appointment and until the first anniversary of the termination date, Executive agrees that he will not, directly or indirectly, (i) own, manage, operate, join, control, participate in, invest in or otherwise be connected or associated with, in any manner, any business anywhere in the world that is engaged in any business activities to the extent Vishay or any subsidiary of Vishay is engaged in such activities or has significant plans to enter into such activities on the date of termination of the Appointment; (ii) solicit any customer of Vishay or its subsidiaries; hire or solicit for employment any person who within the preceding three (3) months was an officer, director or employee of Vishay or its subsidiaries, or encourage anyone to terminate employment with Vishay or its subsidiaries; seek to persuade any customer of Vishay or its subsidiaries to cease to do business or reduce business with Vishay or its subsidiaries; or (iii) interfere in any manner in the relationship of Vishay or its subsidiaries with any third person.

	
(b)

	
Executive agrees that the restrictive covenants herein are reasonable in light of his responsibilities and undertaken in consideration of the benefits provided to him under the Appointment; and such restrictive covenants are reasonably necessary to protect the legitimate interest of Vishay. Executive acknowledges that it is impossible to measure in money the damages that will accrue in the event he breaches any of the restrictive covenant contained in this Terms & Conditions and that any such damages would be inadequate and insufficient. Therefore, if Executive breaches any restrictive covenant therein, Vishay shall be entitled to an injunction restraining him from violating such restrictive covenant. If any of the restrictive covenants contained herein are judicially deemed to be unenforceable, Executive agrees that the court shall revise the restrictive covenants to the extent required in order to render such restrictions enforceable.

	
7.

	
The amendments to the Terms & Conditions made by this Third Amendment shall be effective as of February 15, 2018.

	
8.

	
Except as set forth in this Third Amendment, all other terms and conditions of the Terms & Conditions shall remain unchanged and in full force and effect.

	
9.

	
This Third Amendment will be executed in two counterparts, each of which shall for all purposes be deemed to be an original.

IN WITNESS WHEREOF, each of the Parties hereto has causes this Third Amendment to be executed in its name and on its behalf, on the date(s) indicated below.

	
Date: February 15, 2018

	
VISHAY CAPACITORS BELGIUM N.V.:

 

  

/s/ Hans Labeeuw

	By:

Name: Hans Labeeuw

Title: Managing Director

	 	 
	
Date: February 15, 2018

	
 

EXECUTIVE:

 

 

  

/s/ Johan Vandoorn

	
Johan Vandoorn

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