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<SEC-DOCUMENT>0001206774-08-001968.txt : 20081210
<SEC-HEADER>0001206774-08-001968.hdr.sgml : 20081210
<ACCEPTANCE-DATETIME>20081210083421
ACCESSION NUMBER:		0001206774-08-001968
CONFORMED SUBMISSION TYPE:	8-K/A
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20080730
ITEM INFORMATION:		Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20081210
DATE AS OF CHANGE:		20081210

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			VISHAY INTERTECHNOLOGY INC
		CENTRAL INDEX KEY:			0000103730
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC COMPONENTS & ACCESSORIES [3670]
		IRS NUMBER:				381686453
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-07416
		FILM NUMBER:		081239859

	BUSINESS ADDRESS:	
		STREET 1:		63 LINCOLN HWY
		CITY:			MALVERN
		STATE:			PA
		ZIP:			19355
		BUSINESS PHONE:		6106441300

	MAIL ADDRESS:	
		STREET 1:		63 LINCOLN HIGHWAY
		CITY:			MALVERN
		STATE:			PA
		ZIP:			19355
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K/A
<SEQUENCE>1
<FILENAME>vishay_8ka.htm
<DESCRIPTION>AMENDMENTS - CURRENT REPORT
<TEXT>

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<P align=center><B><FONT face=serif size=2>UNITED STATES<BR></FONT></B><B><FONT face=serif size=2>SECURITIES AND EXCHANGE COMMISSION<BR>Washington, D.C.
20549</FONT></B></P>
<P align=center><B><FONT face=serif>FORM 8-K/A<BR>Amendment No. 1</FONT></B></P>
<P align=center><B><FONT face=serif size=2>CURRENT REPORT<BR></FONT></B><B><FONT face=serif size=2>Pursuant to Section 13&nbsp;OR 15(d) of the Securities
Exchange Act of 1934</FONT></B></P>
<P align=left><FONT face=serif size=2>Date of Report (Date of earliest event
reported)&nbsp;<U>July 30, 2008</U></FONT></P>
<P align=left>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="99%" colSpan=3><B><FONT face=serif size=5>Vishay Intertechnology,
      Inc.<BR>&nbsp;</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="99%" colSpan=3><FONT face=serif size=2>(Exact name
      of registrant as specified in its charter)</FONT></TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="30%"><FONT face=serif size=2>Delaware</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="39%"><FONT face=serif size=2>1-7416</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="30%"><FONT face=serif size=2>38-1686453</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="30%"><FONT face=serif size=2>(State or
      other jurisdiction</FONT>&nbsp;</TD>
    <TD noWrap align=center width="39%"><FONT face=serif size=2>(Commission</FONT>&nbsp;</TD>
    <TD noWrap align=center width="30%"><FONT face=serif size=2>(I.R.S.
      Employer</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="30%"><FONT face=serif size=2>of
      incorporation)</FONT>&nbsp;</TD>
    <TD noWrap align=center width="39%"><FONT face=serif size=2>File
      Number)</FONT>&nbsp;</TD>
    <TD noWrap align=center width="30%"><FONT face=serif size=2>Identification
      No.)</FONT>&nbsp;</TD></TR></TABLE>&nbsp;<BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=center width="50%"><FONT face=serif size=2>63 Lancaster
      Avenue</FONT>&nbsp;</TD>
    <TD noWrap align=left width="49%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="50%"><FONT face=serif size=2>Malvern, PA 19355</FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="49%"><FONT face=serif size=2>19355-2143</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="50%"><FONT face=serif size=2>(Address of
      principal executive offices)</FONT>&nbsp;</TD>
    <TD noWrap align=center width="49%"><FONT face=serif size=2>(Zip
      Code)</FONT>&nbsp;</TD></TR>
  <TR>
    <TD noWrap align=center width="99%" colSpan=2>&nbsp; </TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="99%" colSpan=2>
      <P align=left><FONT face=serif size=2>Registrant&#146;s telephone number,
      including area code 610-644-1300</FONT><FONT face=serif size=2>&nbsp;<FONT size=3>&nbsp;<BR>&nbsp;</FONT></FONT></P></TD></TR>
  <TR>
    <TD noWrap align=center width="99%" colSpan=2><FONT face=serif size=2><FONT size=3>&nbsp;</FONT>(Former name or former address, if
      changed since last report.)</FONT><FONT size=3>&nbsp;</FONT></TD></TR></TABLE>
<P align=left><FONT face=serif size=2>Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions:&nbsp;</FONT><BR><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%"><FONT face=wingdings size=2>o<FONT face="Times New Roman" size=3>&nbsp;</FONT></FONT></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="96%"><FONT face=serif size=2>Written communications pursuant to Rule 425 under the Securities
      Act (17 CFR 230.425)<FONT size=3>&nbsp;</FONT></FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="96%"></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%"><FONT face=wingdings size=2>o<FONT face="Times New Roman" size=3>&nbsp;</FONT></FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="96%"><FONT face=serif size=2>Soliciting material pursuant to Rule 14a-12 under the Exchange Act
      (17 CFR 240.14a-12)<FONT size=3>&nbsp;</FONT></FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="96%"></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%"><FONT face=wingdings size=2>o<FONT face="Times New Roman" size=3>&nbsp;</FONT></FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="96%"><FONT face=serif size=2>Pre-commencement communications pursuant to Rule 14d-2(b) under the
      Exchange Act (17 CFR 240.14d-2(b))<FONT size=3>&nbsp;</FONT></FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=center width="2%">&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="96%"></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=center width="2%"><FONT face=wingdings size=2>o<FONT face="Times New Roman" size=3>&nbsp;</FONT></FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="96%"><FONT face=serif size=2>Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 CFR 240.13e-4(c))<FONT size=3>&nbsp;</FONT></FONT></TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><B><FONT face=serif size=2>Item 5.02 &#150; Departure of Directors or
Certain Officers; Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers </FONT></B></P>
<P align=left><FONT face=serif size=2>(c) Appointment of Certain Officers
</FONT></P>
<P align=left><FONT face=serif size=2>On July 30, 2008, the Company&#146;s Board of
Directors appointed Dr. Lior Yahalomi to be Executive Vice President - Chief
Financial Officer effective September 1, 2008.</FONT></P>
<P align=left><FONT face=serif size=2>As indicated in our current report on Form
8-K filed on August 5, 2008, the Compensation Committee of the Company&#146;s Board
of Directors considered the salary, bonus arrangement, and other incentives of
Dr. Yahalomi and negotiated an employment agreement. </FONT></P>
<P align=left><FONT face=serif size=2>On December 5, 2008, the Compensation
Committee of the Company&#146;s Board of Directors recommended and the Board approved
the terms of Dr. Yahalomi&#146;s compensation arrangements, including a formal
employment agreement. </FONT></P>
<P align=left><FONT face=serif size=2>The principal terms of the employment
agreement are as follows: </FONT></P>
<UL style="FONT-SIZE: 10pt">
  <LI><FONT face=serif size=2>Base salary of $362,500 per year.</FONT>
  <LI><FONT face=serif size=2>Annual performance bonus in an amount up to 50% of
  base salary. The amount of such bonus shall be based upon the achievement of
  individual or company performance goals as the Compensation Committee of the
  Board of Directors and/or the Chief Executive Officer of Vishay shall
  determine. Dr. Yahalomi&#146;s bonus for 2008 will be pro rated based on the
  percentage of the year he served as Chief Financial Officer.</FONT>
  <LI><FONT face=serif size=2>Additional perquisites and other personal benefits
  as the Compensation Committee determines are reasonable and consistent with
  our overall compensation program.</FONT></LI></UL>
<P align=left><FONT face=serif size=2>Dr. Yahalomi&#146;s employment agreement
provides for severance, upon termination without cause, of up to 12 months of
base salary, determined based upon a formula in the employment agreement.
</FONT></P>
<P align=left><FONT face=serif size=2>The foregoing summary is qualified in its
entirety by reference to the employment agreement between Vishay
Intertechnology, Inc. and Dr. Lior E. Yahalomi, incorporated herein as Exhibit
10.1 to this Form 8-K/A.</FONT></P>
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<PAGE>
<P align=left><B><FONT face=serif size=2>Item 9.01 &#150; Financial Statements and
Exhibits</FONT></B></P>
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  <TR>
    <TD noWrap width="3%"><FONT face=serif size=2>(d) Exhibits</FONT></TD>
    <TD width="5%"></TD>
    <TD width="91%" colSpan=2></TD></TR>
  <TR>
    <TD width="3%"></TD>
    <TD width="5%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="91%" colSpan=2></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" width="3%"><FONT size=2>Exhibit No.</FONT></TD>
    <TD width="5%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" width="3%">
      <P align=left><FONT face=serif size=2>Description</FONT><FONT face=serif size=2> </FONT></P></TD>
    <TD width="88%">&nbsp;</TD></TR>
  <TR>
    <TD width="3%" bgColor=#c0c0c0><FONT size=2>10.1</FONT></TD>
    <TD width="5%" bgColor=#c0c0c0></TD>
    <TD align=left width="91%" bgColor=#c0c0c0 colSpan=2>
      <P align=justify><FONT face=serif size=2>Employment agreement, between
      Vishay Intertechnology, Inc. and Dr. Lior E. Yahalomi.</FONT></P></TD></TR>
  <TR>
    <TD width="3%"><FONT size=2>&nbsp;</FONT></TD>
    <TD width="5%"></TD>
    <TD width="91%" colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="3%" bgColor=#c0c0c0><FONT size=2>99</FONT></TD>
    <TD vAlign=top width="5%" bgColor=#c0c0c0></TD>
    <TD vAlign=top align=left width="91%" bgColor=#c0c0c0 colSpan=2>
      <P align=justify><FONT size=2>Press release dated July 31, 2008.
      Incorporated by reference to exhibit 99 to our current report on Form 8-K
      filed August 5, 2008.</FONT></P></TD></TR></TABLE>
<BR>
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<P align=center><B><FONT face=serif size=2>Signature </FONT></B></P>
<P align=left><FONT face=serif size=2>Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly authorized.</FONT></P>
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  <TR>
    <TD align=left width="50%">
      <P align=left><FONT face=serif size=2>Date: December 10, 2008
    </FONT></P></TD>
    <TD align=left width="50%"></TD></TR>
  <TR>
    <TD align=left width="50%">&nbsp;</TD>
    <TD align=left width="50%"></TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%"></TD>
    <TD align=left width="50%"><FONT face=serif size=2>VISHAY INTERTECHNOLOGY,
      INC.</FONT> </TD></TR>
  <TR>
    <TD align=left width="50%"></TD>
    <TD align=left width="50%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%"></TD>
    <TD align=left width="50%"><FONT face=serif size=2>By: </FONT><FONT face=serif size=2><U>/s/ Gerald Paul</U></FONT> </TD></TR>
  <TR>
    <TD align=left width="50%"></TD>
    <TD align=left width="50%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%"></TD>
    <TD align=left width="50%"><FONT face=serif size=2>Name: Dr. Gerald
      Paul</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=left width="50%"></TD>
    <TD align=left width="50%"><FONT face=serif size=2>Title: President and
      Chief Executive Officer</FONT> </TD></TR></TABLE><BR>
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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>exhibit10-1.htm
<DESCRIPTION>EMPLOYMENT AGREEMENT, BETWEEN VISHAY INTERTECHNOLOGY, INC.
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<P align=right><B><FONT face=serif size=2>Exhibit 10.1 </FONT></B></P>
<P align=center><U><FONT face=serif size=2>EMPLOYMENT AGREEMENT</FONT></U><FONT face=serif size=2> </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>THIS
EMPLOYMENT AGREEMENT (this &#147;</FONT><U><FONT face=serif size=2>Agreement</FONT></U><FONT face=serif size=2>&#148;) is made as of December 5,
2008, by and between VISHAY INTERTECHNOLOGY, INC., a Delaware corporation
(&#147;</FONT><U><FONT face=serif size=2>Vishay</FONT></U><FONT face=serif size=2>&#148;),
and DR. LIOR E. YAHALOMI (&#147;</FONT><U><FONT face=serif size=2>Executive</FONT></U><FONT face=serif size=2>&#148;). </FONT></P>
<P align=center><U><FONT face=serif size=2>W</FONT></U><FONT face=serif size=2>
</FONT><U><FONT face=serif size=2>I</FONT></U><FONT face=serif size=2>
</FONT><U><FONT face=serif size=2>T</FONT></U><FONT face=serif size=2>
</FONT><U><FONT face=serif size=2>N</FONT></U><FONT face=serif size=2>
</FONT><U><FONT face=serif size=2>E</FONT></U><FONT face=serif size=2>
</FONT><U><FONT face=serif size=2>S</FONT></U><FONT face=serif size=2>
</FONT><U><FONT face=serif size=2>S</FONT></U><FONT face=serif size=2>
</FONT><U><FONT face=serif size=2>E</FONT></U><FONT face=serif size=2>
</FONT><U><FONT face=serif size=2>T</FONT></U><FONT face=serif size=2>
</FONT><U><FONT face=serif size=2>H</FONT></U><FONT face=serif size=2>:
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
Vishay desires to continue to employ Executive and Executive desires to accept
such continued employment; and </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS,
Vishay and Executive intend for this Agreement to document the terms and
conditions of the employment relationship; </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>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: </FONT></P>
<P align=left><FONT face=serif size=2>1.</FONT><FONT face=sans-serif>
</FONT><U><FONT face=serif size=2>Definitions.</FONT></U><FONT face=serif size=2> </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.1</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Accrued Compensation</FONT></U><FONT face=serif size=2>&#148; means (i) earned but unpaid base salary and (ii) unpaid
expense reimbursements. </FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>1.2</FONT><FONT face=sans-serif>
</FONT><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Board of
Directors</FONT></U><FONT face=serif size=2>&#148; means the Board of Directors of
Vishay. </FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>1.3</FONT><FONT face=sans-serif>
</FONT><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Cause</FONT></U><FONT face=serif size=2>&#148; means any of the following:
</FONT></P>
<P style="PADDING-LEFT: 15pt" align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>Executive&#146;s conviction of a felony or any other crime involving moral
turpitude (whether or not involving Vishay and/or its subsidiaries);</FONT></P>
<P style="PADDING-LEFT: 15pt" align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>any act or failure to act by Executive involving dishonesty, fraud,
misrepresentation, theft or embezzlement of assets from Vishay and/or its
subsidiaries; or&nbsp;</FONT></P>
<P style="PADDING-LEFT: 15pt" align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>Executive&#146;s (i) willful and repeated failure to substantially perform his
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; </FONT><U><FONT face=serif size=2>provided</FONT></U><FONT face=serif size=2>, </FONT><U><FONT face=serif size=2>however</FONT></U><FONT face=serif size=2>, 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. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.4</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Code</FONT></U><FONT face=serif size=2>&#148; means the Internal Revenue Code of 1986, as amended, or any successor
code. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.5</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Common Stock</FONT></U><FONT face=serif size=2>&#148; means the common stock, par value $.10 per share, of Vishay
and any other security exchanged or substituted for such common stock or into
which such common stock is converted in any recapitalization, reorganization,
merger, consolidation, share exchange or other business combination transaction,
including any reclassification consisting of a change in par value or a change
from par value to no par value or vice versa.</FONT></P>
<P align=center><FONT face=serif size=2>- 1 - </FONT></P>
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<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>1.6</FONT><FONT face=sans-serif>
</FONT><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Effective
Date</FONT></U><FONT face=serif size=2>&#148; means September 1, 2008. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.7</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Competing Business</FONT></U><FONT face=serif size=2>&#148; means any business or venture located anywhere in the world
that is engaged in the manufacture and supply of passive and discrete active
electronic components and/or strain gages, strain gage transducers or strain
gage instrumentation to the extent Vishay or any subsidiary or affiliate of
Vishay is engaged in such activities on the Date of Termination. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.8</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Date of Termination</FONT></U><FONT face=serif size=2>&#148; means (i) the effective date on which Executive's employment
by Vishay terminates as specified in a Notice of Termination by Vishay or
Executive, as the case may be or (ii) if Executive's employment by Vishay
terminates by reason of death, the date of Executive&#146;s death.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.9</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Non-Competition Period</FONT></U><FONT face=serif size=2>&#148; means the period while Executive is employed by Vishay or
any of its subsidiaries or affiliates and for twelve 12 months thereafter or
such lesser period as is determined by a court of competent jurisdiction
pursuant to Section 7.5(d). </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.10</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Non-Solicitation
Period</FONT></U><FONT face=serif size=2>&#148; means the period while Executive is
employed by Vishay or any of its subsidiaries or affiliates and for twelve 12
months thereafter or such lesser period as is determined by a court of competent
jurisdiction pursuant to Section 7.5(d). </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.11</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Notice of Intention</FONT></U><FONT face=serif size=2>&#148; means a written notice to Executive signed by a duly
authorized officer of Vishay, which notice shall indicate that it is Vishay&#146;s
intention to terminate Executive&#146;s employment without Cause on a particular
date. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>1.12</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>&#147;</FONT><U><FONT face=serif size=2>Notice of Termination</FONT></U><FONT face=serif size=2>&#148; means a written notice of termination of Executive&#146;s
employment with Vishay, signed by Executive, if to Vishay, or by a duly
authorized officer of Vishay, if to Executive, which notice shall (i) indicate
the specific termination provision in this Agreement relied upon; (ii) to the
extent applicable, set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of Executive's employment under the
provision so indicated; and (iii) specify the Date of Termination. The failure
by Vishay to set forth in such notice any fact or circumstance which contributes
to a showing of Cause shall not waive any right of Vishay hereunder or preclude
Vishay from asserting such fact or circumstance in enforcing its rights
hereunder.</FONT></P>
<P align=left><FONT face=serif size=2>2.</FONT><FONT face=sans-serif>
</FONT><U><FONT face=serif size=2>Employment; Term.</FONT></U><FONT face=serif size=2> </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>2.1</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Employment</FONT></U><FONT face=serif size=2>. Vishay hereby employs
Executive, and Executive hereby accepts employment by Vishay, in accordance with
and subject to the terms and conditions set forth herein. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>2.2</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Term</FONT></U><FONT face=serif size=2>. The &#147;Term&#148; of this Agreement
shall commence on the Effective Date and continue until terminated in accordance
with the provisions of this Agreement. </FONT></P>
<P align=center><FONT face=serif size=2>- 2 - </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=serif size=2>3.</FONT><FONT face=sans-serif>
</FONT><U><FONT face=serif size=2>Duties.</FONT></U><FONT face=serif size=2>
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>3.1</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Position</FONT></U><FONT face=serif size=2>. During the Term, Executive
shall serve as Executive Vice President and Chief Financial Officer of Vishay
and shall report directly to the Chief Executive Officer of Vishay and the Audit
Committee of the Board of Directors; provided, that with respect to merger and
acquisition activities, Executive shall report to the Chairman of the Board of
Directors.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>3.2</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Authority and Responsibility</FONT></U><FONT face=serif size=2>.
Executive shall have authority and responsibility for the cash management,
accounting, tax, merger and acquisition, investor relations and legal functions
of Vishay and shall perform such other duties as may be assigned by the Chief
Executive Officer of Vishay. The Chief Accounting Officer of Vishay shall report
to Executive and also to the Chief Executive Officer of Vishay. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>3.3</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Activities</FONT></U><FONT face=serif size=2>. Excluding any periods of
vacation, personal and sick leave to which Executive is entitled, Executive
shall devote his full professional attention and best efforts during the Term to
the business and affairs of Vishay. It shall not be considered a violation of
the foregoing for Executive to (i) serve as Associated Adjunct Professor at the
Wharton School for about 80 hours per year, (ii) engage in other such activities
approved in advance by the Chief Executive Officer and the Chairman of the Board
or (iii) manage personal investments, so long as such activities would be
permitted under Section 7 and do not interfere with the performance of
Executive&#146;s responsibilities as an employee of Vishay in accordance with this
Agreement. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>3.4</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Place
of Performance</FONT></U><FONT face=serif size=2>. Executive&#146;s employment and
office shall be based at Vishay&#146;s offices in Malvern, Pennsylvania. Executive
recognizes that his duties will require, from time to time and at Vishay&#146;s
expense, travel to domestic and international locations. </FONT></P>
<P align=left><FONT face=serif size=2>4.</FONT><FONT face=sans-serif>
</FONT><U><FONT face=serif size=2>Compensation.</FONT></U><FONT face=serif size=2> </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>4.1</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Base
Salary</FONT></U><FONT face=serif size=2>. Vishay shall pay Executive a base
salary, subject to annual review by the Compensation Committee of the Board of
Directors in consultation with the Chief Executive Officer and the Chairman of
the Board of Vishay, of not less than $362,500 per year. Such base salary shall
be paid in accordance with Vishay&#146;s standard salary policies, subject to such
deductions, if any, as are required by law or elected by Executive (for example,
401(k) contributions). </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>4.2</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Bonus</FONT></U><FONT face=serif size=2>. Executive shall be eligible for
an annual performance bonus, payable in cash on or before March
15</FONT><FONT face=serif size=2><SUP>th</SUP></FONT><FONT face=serif size=2> of
the following year, in an amount up to 50% of Executive&#146;s base salary. The
amount of such bonus shall be based upon the achievement of such individual or
company performance goals as the Compensation Committee of the Board of
Directors and/or the Chief Executive Officer of Vishay shall determine. Until
changed by the Compensation Committee and/or the Chief Executive Officer, the
terms of Executive&#146;s bonus are set for in Exhibit A hereto. Executive&#146;s bonus
under this Agreement for 2008 shall be pro rated based on the percentage of the
year he is employed under this Agreement. For purposes of clarity, unless
otherwise provided by the Compensation Committee or Chief Executive Officer, the
bonus terms set forth in Exhibit A shall cease to apply to Executive if his
position with Vishay changes. In addition, Executive shall cease to be entitled
to a bonus under this Section 4.2 upon his receipt of either a Notice of
Intention or a Notice of Termination. </FONT></P>
<P align=center><FONT face=serif size=2>- 3 - </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=serif size=2>5.</FONT><FONT face=sans-serif>
</FONT><U><FONT face=serif size=2>Benefits.</FONT></U><FONT face=serif size=2>
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>5.1</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Participation in Benefit Plans and Programs</FONT></U><FONT face=serif size=2>. During the Term, Executive shall be entitled to participate in any and
all medical insurance, group health insurance, disability insurance, life
insurance and retirement plans which are generally made available by Vishay to
its senior executives, subject to the eligibility requirements and other
provisions of such plans and programs. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>5.2</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Auto
Allowance</FONT></U><FONT face=serif size=2>. Vishay shall provide Executive
with an $850 per month automobile allowance. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>5.3</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Existing Stock Option Program</FONT></U><FONT face=serif size=2>.
Executive shall continue to be entitled to the stock options provided in
paragraph 6 of the offer letter agreement, dated June 6, 2006, between Vishay
and Executive. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>5.4</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Reimbursement of Expenses</FONT></U><FONT face=serif size=2>. In
accordance with Vishay&#146;s standard reimbursement policies as they exist from time
to time, Vishay shall reimburse Executive for all reasonable and documented
travel, business entertainment and other business expenses incurred by Executive
in connection with the performance of his duties under this Agreement.
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>5.5</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Vacation, Personal and Sick Days</FONT></U><FONT face=serif size=2>.
Executive shall be entitled to paid vacation days, holidays, personal and sick
days in accordance with and subject to Vishay&#146;s policies for Vishay&#146;s senior
executives, as in effect from time to time. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>5.6</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Indemnification</FONT></U><FONT face=serif size=2>. Vishay shall
indemnify Executive to the extent provided in Vishay&#146;s certificate of
incorporation and/or bylaws, as in effect from time to time. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>5.7</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Other</FONT></U><FONT face=serif size=2>. Executive shall be entitled to
such other benefits or perquisites as Vishay generally makes available to its
senior executives. </FONT></P>
<P align=left><FONT face=serif size=2>6.</FONT><FONT face=sans-serif>
</FONT><U><FONT face=serif size=2>Termination of Employment; Compensation Upon
Termination</FONT></U><FONT face=serif size=2>. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>6.1</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Termination</FONT></U><FONT face=serif size=2>. Executive&#146;s employment
with Vishay may be terminated by Executive or by Vishay for any reason, in
either case pursuant to a Notice of Termination. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>6.2</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Compensation Upon Termination</FONT></U><FONT face=serif size=2>. Upon
termination of Executive&#146;s employment with Vishay, Executive shall be entitled
to the following: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(i)</FONT></TD>
    <TD vAlign=top noWrap >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top width="100%"><FONT face=serif size=2>A lump sum cash
      payment equal to all Accrued Compensation, such payment to be made within
      15 days after the Date of Termination.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap ></TD>
    <TD vAlign=top width="100%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(ii)</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD vAlign=top width="100%"><FONT face=serif size=2>Payment of Executive&#146;s
      bonus pursuant to Section 4.2 hereof for the calendar year preceding the
      Date of Termination, if not previously paid, which shall be paid at such
      time as such bonus would have been paid to Executive if not for
      Executive&#146;s termination of employment.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap ></TD>
    <TD vAlign=top noWrap ></TD>
    <TD vAlign=top noWrap ></TD>
    <TD vAlign=top width="100%" >&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap ></TD>
    <TD vAlign=top noWrap ><FONT size=2>(iii)</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD vAlign=top width="100%" ><FONT size=2>All rights
      Executive is entitled to under the terms of Vishay benefit plans or
      arrangements.</FONT></TD></TR></TABLE>
<P align=center><FONT face=serif size=2>- 4 - </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>6.3</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Further Compensation Upon Termination</FONT></U><FONT face=serif size=2>.
Vishay agrees that, in the event it terminates Executive&#146;s employment without
Cause, it shall provide Executive a Notice of Intention three (3) months prior
to the scheduled effective date of its termination of his employment. The period
from the date of the Notice of Intention to the scheduled effective date is
referred to as the &#147;Notice Period&#148;. If Executive remains employed through the
end of the three month Notice Period referred to in the first sentence of this
Section 6.3, Executive shall be entitled to a lump sum payment, payable within
15 days after the date of his employment termination, equal to the product of
(i) his monthly base salary multiplied by (ii) nine (9). If Vishay terminates
Executive&#146;s employment without Cause and fails to provide Executive with a
Notice of Intention three (3) months prior to the scheduled effective date of
its termination of his employment, or if Vishay terminates Executive&#146;s
employment without Cause during the Notice Period, Executive shall be entitled
to a lump sum payment, payable within 15 days after the date of the termination
of his employment, equal to the product of (i) his monthly base salary
multiplied by (ii) the difference between (x) twelve (12) and (y) the number of
whole months in the Notice Period, if any, except that if Executive&#146;s employment
is terminated by Vishay without Cause during the Notice Period, then the number
of whole months in the Notice Period prior to the termination of his employment.
</FONT></P>
<P align=left><FONT face=serif size=2>7.</FONT><FONT face=sans-serif>
</FONT><U><FONT face=serif size=2>Restrictive Covenants.</FONT></U><B><FONT face=serif size=2> </FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>7.1</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Non-Competition</FONT></U><FONT face=serif size=2>. During the
Non-Competition Period, Executive shall not, without the prior written consent
of an authorized officer of Vishay, directly or indirectly, own, manage,
operate, join, control, participate in, invest in or otherwise be connected or
associated with, in any manner, including as an officer, director, employee,
independent contractor, subcontractor, stockholder, member, manager, partner,
principal, consultant, advisor, agent, proprietor, trustee or investor, any
Competing Business; </FONT><U><FONT face=serif size=2>provided</FONT></U><FONT face=serif size=2>, </FONT><U><FONT face=serif size=2>however</FONT></U><FONT face=serif size=2>, that nothing in this Agreement shall prevent Executive from
(i) owning five percent (5%) or less of the stock or other securities of a
publicly held corporation, so long as Executive does not in fact have the power
to control, or direct the management of, and is not otherwise associated with,
such corporation, or (ii) performing services for an investment bank, investment
advisor or investment fund that may, directly or indirectly, own, manage,
operate, join, control, participate in, invest in or otherwise be connected or
associated with, in any manner, any Competing Business, provided that Executive
shall not, directly or indirectly, have any responsibility whatsoever for,
provide any services whatsoever to, or otherwise be connected or associated with
such Competing Business. Notwithstanding the foregoing, if a company has
separate divisions or subsidiaries, some of which conduct a Competing Business
and some of which conduct other businesses which are not Competing Businesses,
then the restrictions imposed hereunder with respect to Competing Businesses
shall apply only to the divisions or subsidiaries of such company that conduct
the Competing Businesses, provided that (x) Executive shall not, directly or
indirectly, have any responsibility whatsoever for, provide any services
whatsoever to, or otherwise be connected or associated with any Competing
Business of the same company, and (y) Executive obtains the prior written consent of the Company, which consent shall not be
unreasonably withheld.</FONT></P>
<P align=center><FONT face=serif size=2>- 5 - </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>7.2</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Non-Solicitation</FONT></U><FONT face=serif size=2>. During the
Non-Solicitation Period, Executive shall not, directly or indirectly:
</FONT></P>
<DIV style="PADDING-LEFT: 15pt">
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>solicit
any customer of Vishay or any of its subsidiaries or affiliates to which
Executive provided (or participated in a proposal to provide) services during
the Term;</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>hire,
solicit for employment, or recruit any person who at the relevant time is or,
within the preceding three (3) months, was, an officer, director, employee,
independent contractor, subcontractor, manager, partner, principal, consultant,
or agent of Vishay or any of its subsidiaries or affiliates, or induce or
encourage any of the foregoing to terminate their employment, contractual or
other relationship (as appropriate) with Vishay or any of its subsidiaries or
affiliates, or attempt to do any of the foregoing either on Executive&#146;s own
behalf or for the benefit of any third person or entity; </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>persuade
or seek to persuade any customer of Vishay or any of its subsidiaries or
affiliates to cease to do business or to reduce the amount of business which the
customer has customarily done or contemplates doing with Vishay or such
subsidiary or affiliate, whether or not the relationship with such customer was
originally established in whole or in part through Executive&#146;s efforts; or
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(d)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>interfere
in any manner in the relationship of Vishay or any of its subsidiaries or
affiliates with any of their respective customers, suppliers, or independent
contractors, whether or not the relationship with such customer, supplier or
independent contractor was originally established in whole or in part through
Executive&#146;s efforts. </FONT></P></DIV>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>7.3</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Confidential Information</FONT></U><FONT face=serif size=2>. Executive
agrees that he shall not, directly or indirectly, use, make available, sell,
disclose or otherwise communicate to any person, other than in the course of
Executive&#146;s assigned duties hereunder and for the benefit of for the benefit of
Vishay and/or its subsidiaries or affiliates, either during the Term or at any
time thereafter, any nonpublic, proprietary or confidential information,
knowledge or data in any form or media, whether documentary, written, oral or
computer generated, relating to Vishay, any of its subsidiaries, affiliated
companies or businesses, which shall have been obtained by Executive during
Executive's employment by Vishay or during the Term. The foregoing shall not
apply to information that (i) was known to the public prior to its disclosure to
Executive; (ii) becomes known to the public subsequent to disclosure to
Executive through no wrongful act of Executive or any representative of
Executive; or (iii) Executive is required to disclose by applicable law,
regulation or legal process (provided that Executive provides Vishay with prior
notice of the contemplated disclosure and reasonably cooperates with Vishay at
its expense in seeking a protective order or other appropriate protection of
such information). Notwithstanding clauses (i) and (ii) of the preceding
sentence, Executive's obligation to maintain such disclosed information in
confidence shall not terminate where only portions of the information are in the
public domain. </FONT></P>
<P align=center><FONT face=serif size=2>- 6 -</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>7.4</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Non-Disparagement</FONT></U><FONT face=serif size=2>. Each of Executive
and Vishay (for purposes hereof, Vishay shall mean only the executive officers
and directors thereof and not any other employees) agrees not to make any public
statements that disparage the other party or, in the case of Vishay, its
respective affiliates, employees, officers, directors, products or services.
Notwithstanding the foregoing, statements made in the course of sworn testimony
in administrative, judicial or arbitral proceedings (including, without
limitation, depositions in connection with such proceedings) shall not be
subject to this Section 7.4. </FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>7.5</FONT><FONT face=sans-serif>
</FONT><U><FONT face=serif size=2>Acknowledgements Respecting Restrictive
Covenants</FONT></U><FONT face=serif size=2>. </FONT></P>
<DIV style="PADDING-LEFT: 15pt">
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>Executive
has carefully read and considered the provisions of this Section 7 and, having
done so, agrees that: </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(i)</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%"><FONT face=serif size=2>the restrictive covenants contained in this Section 7,
      including, without limitation, the scope and time period of such
      restrictions, are reasonable, fair and equitable in light of Executive&#146;s
      duties and responsibilities under this Agreement and the benefits to be
      provided to him under this Agreement; and</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top noWrap ></TD>
    <TD vAlign=top noWrap >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%" ></TD></TR>
  <TR>
    <TD vAlign=top noWrap ></TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(ii)</FONT></TD>
    <TD vAlign=top noWrap ></TD>
    <TD width="100%"><FONT face=serif size=2>such restrictive covenants are reasonably necessary to
      protect the legitimate business interests of
Vishay.</FONT></TD></TR></TABLE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>The
parties acknowledge that it is impossible to measure in money the damages that
will accrue to one party in the event that the other party breaches any of the
restrictive covenants contained in this Section 7 and that any such damages, in
any event, would be inadequate and insufficient. Therefore, if one party
breaches any restrictive covenant contained in this Section 7, the non-breaching
party shall be entitled to an injunction restraining the breaching party from
violating such restrictive covenant; </FONT><U><FONT face=serif size=2>provided</FONT></U><FONT face=serif size=2>, </FONT><U><FONT face=serif size=2>however</FONT></U><FONT face=serif size=2>, that a party must provide the
other party with not less than five (5) days written notice prior to instituting
an action or proceeding to enforce any restrictive covenant contained in this
Section 7. If the non-breaching party shall institute any action or proceeding
to enforce a restrictive covenant contained in this Section 7, the breaching
party hereby waives, and agrees not to assert in any such action or proceeding,
the claim or defense that the non-breaching party has an adequate remedy at law.
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>In the
event of a breach of any of the restrictive covenants contained in this Section
7, the parties agree that the non-breaching party, in addition to any injunctive
relief as described in Section 7.5(b), shall be entitled to any other
appropriate legal or equitable remedy. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(d)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>If any of
the restrictive covenants contained in this Section 7 are deemed by a court of
competent jurisdiction to be unenforceable by reason of their extent, duration
or geographical scope or otherwise, the parties contemplate that the court shall
revise such extent, duration, geographical scope or other provision but only to
the extent required in order to render such restrictions enforceable, and
enforce any such restriction in its revised form for all purposes in the manner
contemplated hereby. </FONT></P></DIV>
<P align=center><FONT face=serif size=2>- 7 -</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>7.6</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Consideration</FONT></U><FONT face=serif size=2>. Executive hereby
acknowledges that Vishay&#146;s obligation to make payments to Executive pursuant to
Section 4 and Section 6 of this Agreement is in consideration of Executive&#146;s
agreement to be bound by and comply with the provisions of this Section 7.
</FONT></P>
<P align=left><FONT face=serif size=2>8.</FONT><FONT face=sans-serif>
</FONT><U><FONT face=serif size=2>Miscellaneous.</FONT></U><FONT face=serif size=2> </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>8.1</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Notices</FONT></U><FONT face=serif size=2>. Any notice, consent, request
or other communication made or given in accordance with this Agreement,
including any Notice of Intention and Notice of Termination, shall be in writing
and shall be sent either by (i) personal delivery to the party entitled thereto,
(ii) facsimile with confirmation of receipt, (iii) registered or certified mail,
return receipt requested, or (iv) Federal Express or similar courier service.
The notice, consent request or other communication shall be deemed to have been
received upon personal delivery, upon confirmation of receipt of facsimile
transmission or courier service, or, if mailed, three (3) days after mailing.
Any notice, consent, request or other communication made or given in accordance
with this Agreement shall be made to those listed below at their following
respective addresses or at such other address as each may specify by notice to
the other: </FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>To
Vishay: </FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Vishay
Intertechnology, Inc.<BR><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>63
Lincoln Highway<BR><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Malvern,
Pennsylvania 19355-2120<BR><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Attention:
Chief Financial Officer </FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>To
Executive: </FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Dr.
Lior E. Yahalomi<BR><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>[Personal
Address Omitted] </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>8.2</FONT><FONT face=sans-serif>
</FONT><U><FONT face=serif size=2>Successors</FONT></U><FONT face=serif size=2>.</FONT></P>
<DIV style="PADDING-LEFT: 15pt">
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>This
Agreement is personal to Executive and, without the prior written consent of
Vishay, shall not be assignable by Executive otherwise than by will or the laws
of descent and distribution. This Agreement shall inure to the benefit of and be
enforceable by Executive&#146;s heirs and legal representatives. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>This
Agreement shall inure to the benefit of and be binding upon Vishay and its
successors and assigns. </FONT></P></DIV>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>8.3</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Complete Understanding; Amendment; Waiver</FONT></U><FONT face=serif size=2>. This Agreement constitutes the complete understanding between the
parties with respect to the employment of Executive and, except as otherwise
provided herein, supersedes all other prior agreements and understandings, both
written and oral, between the parties with respect to the subject matter hereof,
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 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 or Executive of any
such right or remedy shall preclude other or further exercise thereof.
Notwithstanding the foregoing, Executive shall retain his accrued rights, as of
the Effective Date, under the offer letter agreement, dated June 6, 2006,
between Vishay and Executive.</FONT></P>
<P align=center><FONT face=serif size=2>- 8 -</FONT></P>
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<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>8.4</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Withholding Taxes</FONT></U><FONT face=serif size=2>. Vishay may withhold
from all payments due to Executive (or his beneficiary or estate) under this
Agreement all taxes which, by applicable federal, state, local or other law,
Vishay is required to withhold therefrom. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>8.5</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Severability</FONT></U><FONT face=serif size=2>. 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. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>8.6</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Governing Law</FONT></U><FONT face=serif size=2>. This Agreement shall be
governed and construed in accordance with the laws of the State of Delaware,
without regard to the principles of conflicts of law. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>8.7</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Arbitration</FONT></U><FONT face=serif size=2>. Except as provided in
Section 7.5 hereof, any dispute or controversy under this Agreement shall be
settled exclusively by arbitration in Philadelphia, Pennsylvania, in accordance
with the rules of the American Arbitration Association then in effect. Judgment
may be entered on the arbitration award in any court having jurisdiction. The
arbitrator may award legal fees but shall not be obligated to do so. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>8.8</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Titles
and Captions</FONT></U><FONT face=serif size=2>. 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.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>8.9</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Counterparts</FONT></U><FONT face=serif size=2>. 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.
</FONT></P>
<P align=left><FONT face=serif size=2>9.</FONT><FONT face=sans-serif>
</FONT><U><FONT face=serif size=2>Section 409A of the Code</FONT></U><FONT face=serif size=2>. </FONT></P>
<P style="PADDING-LEFT: 15pt" align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>Notwithstanding any provision of this Agreement to the contrary, if
Executive is a &#147;</FONT><U><FONT face=serif size=2>specified
employee</FONT></U><FONT face=serif size=2>&#148; (within the meaning of Section 409A
of the Internal Revenue Code of 1986, as amended, and determined pursuant to
procedures adopted by Vishay) at the time of his &#147;separation from service&#148;
(within the meaning of Section 409A) and if any portion of the payments or
benefits to be received by Executive under this Agreement upon his separation
from service would be considered deferred compensation under Section 409A, then
each portion of such payments and benefits that would otherwise be payable
pursuant to this Agreement during the six-month period immediately following
Executive&#146;s separation from service will instead be paid or made available on
the earlier of (i) the first business day of the seventh month following the
date Executive incurs a separation from service, and (ii) Executive&#146;s
death.</FONT></P>
<P align=center><FONT face=serif size=2>- 9 -</FONT></P>
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<PAGE>
<DIV style="PADDING-LEFT: 15pt">
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>Each
payment under this Agreement will be considered a &#147;separate payment&#148; and not one
of a series of payments for purposes of Section 409A. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>To the
extent any reimbursement or in-kind benefits due to Executive under this
Agreement constitute &#147;deferred compensation&#148; under Section 409A, any such
reimbursement or in-kind benefit shall be paid to Executive in a manner
consistent with Treas. Reg. section 1.409A-3(i)(l)(iv). </FONT></P></DIV>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>IN WITNESS
WHEREOF, Executive has executed this Agreement and, pursuant to the
authorization of the Compensation Committee of the Board of Directors, Vishay
has caused this Agreement to be executed in its name and on its behalf, all as
of the date above written. </FONT></P>
<DIV align=right>
<TABLE cellSpacing=0 cellPadding=0 width="50%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="100%"><FONT face=serif size=2>VISHAY
      INTERTECHNOLOGY, INC.</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="100%">&nbsp; </TD></TR>
  <TR>
    <TD width="100%">&nbsp; </TD></TR>
  <TR>
    <TD width="100%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%"><FONT face=serif size=2>By:
      </FONT><U><FONT face=serif size=2>/s/ Carl Fritz</FONT></U>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%"><FONT face=serif size=2>Name: Carl
      Fritz</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%"><FONT face=serif size=2>Title:
      Administrative President, Americas</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="100%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%"><FONT face=serif size=2>EXECUTIVE:</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="100%">&nbsp; </TD></TR>
  <TR>
    <TD width="100%">&nbsp; </TD></TR>
  <TR>
    <TD width="100%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%"><U><FONT face=serif size=2>/s/ Lior E.
      Yahalomi</FONT></U>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="100%"><FONT face=serif size=2>Dr. Lior E.
      Yahalomi</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=center><FONT face=serif size=2>- 10 -</FONT></P>
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<PAGE>
<P align=center><FONT face=serif size=2>Exhibit A </FONT></P>
<P align=center><FONT face=serif size=2>Employment
Agreement<BR>between<BR></FONT><FONT face=serif size=2>Vishay Intertechnology,
Inc. and Dr. Lior E.Yahalomi</FONT></P>
<P align=center><FONT face=serif size=2>Bonus Plan for Dr. Lior E.
Yahalomi</FONT></P>
<P align=left><FONT face=serif size=2>The plan is defined as follows:</FONT></P>
<DIV style="PADDING-LEFT: 15pt; width: 100%">
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top noWrap width="1%"><FONT size=2>(d)</FONT></TD>
    <TD vAlign=top noWrap width="1%">&nbsp;</TD>
    <TD vAlign=top align=left width="98%"  colSpan=2>
      <P align=left><FONT face=serif size=2>The maximum bonus is 50.0% of
      Executive&#146;s base salary, whereby:</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%" ></TD>
    <TD vAlign=top width="97%" ></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%" ><FONT face=Symbol size=2>&#183;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD vAlign=top width="97%" >
      <P align=left><FONT face=sans-serif></FONT><FONT face=serif size=2>35.0%
      of maximum comes from the Adjusted Net Income of Vishay.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%" ></TD>
    <TD vAlign=top width="97%" ></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%" ><FONT face=Symbol size=2>&#183;</FONT></TD>
    <TD vAlign=top width="97%" >
      <P align=left><FONT face=serif size=2>7.5% maximum comes from Inventory
      Turns.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%" ></TD>
    <TD vAlign=top width="97%" ></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%" ><FONT face=Symbol size=2>&#183;</FONT></TD>
    <TD vAlign=top width="97%" >
      <P align=left><FONT face=serif size=2>7.5% comes from Personal Objectives.
      </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%" ></TD>
    <TD vAlign=top width="97%" ></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ><FONT size=2>(e)</FONT></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top align=left width="98%"  colSpan=2>
      <P align=left><FONT face=serif size=2>For all targets, the accepted budget
      for the business year is the reference point. If required by the
      situation, the budget can be replaced by targets determined by the Chief
      Executive Officer. </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%" ></TD>
    <TD vAlign=top width="97%" ></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ><FONT size=2>(f)</FONT></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top align=left width="98%"  colSpan=2>
      <P align=left><FONT face=serif size=2>For the portion related to Adjusted
      Net Income, the following rules apply:</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%" ></TD>
    <TD vAlign=top width="97%" ></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%" ><FONT face=Symbol size=2>&#183;</FONT></TD>
    <TD vAlign=top width="97%" >
      <P align=left><FONT face=sans-serif></FONT><FONT face=serif size=2>No
      bonus below 80% of budgeted Adjusted Net Income.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%" ></TD>
    <TD vAlign=top width="97%" ></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%" ><FONT face=Symbol size=2>&#183;</FONT></TD>
    <TD vAlign=top width="97%" >
      <P align=left><FONT face=sans-serif></FONT><FONT face=serif size=2>21.0%
      bonus at 100% of budgeted Adjusted Net Income. </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%" ></TD>
    <TD vAlign=top width="97%" ></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%" ><FONT face=Symbol size=2>&#183;</FONT></TD>
    <TD vAlign=top width="97%" >
      <P align=left><FONT face=sans-serif></FONT><FONT face=serif size=2>35.0%
      bonus at 120% and above of budgeted Adjusted Net Income. </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%" ></TD>
    <TD vAlign=top width="97%" ></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%" ><FONT face=Symbol size=2>&#183;</FONT></TD>
    <TD vAlign=top width="97%" >
      <P align=left><FONT face=sans-serif></FONT><FONT face=serif size=2>Linear
      between 80 &#150; 100% and between 100 &#150; 120%.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%" ></TD>
    <TD vAlign=top width="97%" ></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ><FONT size=2>(g)</FONT></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top align=left width="98%"  colSpan=2>
      <P align=left><FONT face=serif size=2>For Inventory Turns below the
      budgeted level, it will be the Chief Executive Officer&#146;s judgment that
      determines the bonus, if any. </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top noWrap align=left width="1%" ></TD>
    <TD vAlign=top width="97%" ></TD></TR>
  <TR>
    <TD vAlign=top noWrap width="1%" ><FONT size=2>(h)</FONT></TD>
    <TD vAlign=top noWrap width="1%" >&nbsp;</TD>
    <TD vAlign=top align=left width="98%"  colSpan=2>
      <P align=left><FONT face=serif size=2>The Personal Objectives shall be
      measurable and must be reconciled for every year between Executive and the
      Chief Executive Officer; provided; however, the Personal Objectives with
      respect to merger and acquisition activities shall be measurable and
      reconciled for every year between Executive and the
  Chairman.</FONT></P></TD></TR></TABLE></DIV>
<P align=center><FONT face=serif size=2>- 11 -</FONT></P>
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