**Exhibit10.2.7**

France OptionAgreement Revised December 2006

**VERIGY LTD.2006 EQUITY INCENTIVE PLANNOTICE OF SHARE OPTION GRANT**

**ForAwardees located in France**

You have beengranted an option to purchase Ordinary Shares of Verigy Ltd. (the “Company”).  Your option is summarized on the AwardSummary page of your Smith Barney account.

This optionbecomes vested and exercisable with respect to all of the Shares subject tothis option when you complete 4 years of continuous “Service” (as defined inthe U.S. Plan) as an “Awardee Eligible to Vest” (as defined in the U.S. Plan)from the date of this award.  You and theCompany agree that this option is granted under and governed by the terms andconditions of the Verigy Ltd. 2006 Equity Incentive Plan (the “U.S. Plan”)and the Verigy Ltd. 2006 Equity Incentive Plan for Options Granted to Employeesin France (the “French Option Plan”)(together, the “Plan”)  and the Share Option Agreement, both of whichare attached to and made a part of this document.

You further agreethat the Company shall cause the shares issued upon exercise of the option tobe deposited in your Smith Barney Account and, further, that the Company maydeliver electronically all documents relating to the Plan or your option(including, without limitation, prospectuses required by the Securities andExchange Commission) and all other documents that the Company is required todeliver to its security holders (including, without limitation, annual reportsand proxy statements).  You also agreethat the Company may deliver these documents by posting them on a web sitemaintained by the Company or by a third party under contract with theCompany.  If the Company posts thesedocuments on a web site, it will notify you regarding such posting.

Your option grant isintended to qualify for favorable tax and social security contributionstreatment in France under Sections L. 225-177 to L. 225-186 of the FrenchCommercial Code, as subsequently amended.

 
| **OPTIONEE:** | ** ** | **VERIGY LTD.** |
|---------------|------------|----------------------|
|          |       |                 |   |   |
|          |       | By:                  |   |   |
|          |       |                 |   |   |
|          |       | Title:               |   |   |

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**VERIGY LTD.2006 EQUITY INCENTIVE PLANSHARE OPTION AGREEMENT**

**ForAwardees located in France**
| **Tax Treatment**       |       | This option is intended to be a nonstatutory stock  option, as provided in the Notice of Share Option Grant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-------------------------|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** **              |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| **Term**                |       | This option expires in any event at the close of  business at Company headquarters on the day before the date that is 7 years  after the Date of Grant, as shown in the Notice of Share Option Grant. (It  may expire earlier if your Service terminates, as described below.)                                                                                                                                                                                                                                                                                                                                                                                                                 |
| ** **              |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| **Vesting**             |       | This option becomes exercisable during the Option  term, as shown in the Notice of Share Option Grant, as long as you remain an  Awardee Eligible to Vest (as defined in the U.S. Plan).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| ** **              | ** ** | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| ** **              |       | This option will in no event become exercisable for  additional shares after your Service has terminated for any reason, except as  otherwise provided in the Plan and this Share Option Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| ** **              |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| **Regular Termination** |       | If your Service terminates for any reason except  death, disability (as defined below), or retirement due to age, in accordance  with the Company’s or a Subsidiary’s or Affiliate’s retirement policy, then  this option will expire at the close of business at Company headquarters on  the date three months after your termination date, or, if earlier, the  expiration of the term of this option. The Company determines when your  Service terminates for this purpose.                                                                                                                                                                                                |
| ** **              |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| **Death**               |       | If you die before your Service terminates, this  option will become immediately vested and exercisable in full and will expire  at the close of business at Company headquarters on the date 6 months after  the date of death.

 

In the event of your death after cessation of  employment but prior to the termination of the option, your heirs may  exercise the vested options for 6 months following your death. In these  circumstances, all unvested options will lapse upon your death.

 

All vested options that are not exercised within 6  months of your death will be forfeited. The 6-month exercise period will  apply without regard to the term of the option. |
| ** **              |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| **Disability**          |       | If your Service terminates because of your  disability which is defined as disability under categories 2 or 3 under  Section L. 341-4 of the French Social Security Code, then this option will  become immediately vested and exercisable in full and expire at the close of  business at Company headquarters on the date 12 months after your termination  date, or, if earlier, the expiration of the term of this option.                                                                                                                                                                                                                                                                 |
| ** **              |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| **Retirement**          |       | If your Service terminates because of retirement due  to age, the options will continue to vest for 12 months following the date of  termination, the option shall terminate as to the shares that do not vest in  such 12-month period and the option shall be exercisable as to the vested  shares for one year after the date you cease to be an Awardee Eligible to  Vest or, if                                                                                                                                                                                                                                                                                                           |

 

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|                                             |   | earlier, the expiration of the term of the option.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** **                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| **Leaves of Absence and Part-Time Work**    |   | For purposes of this option, your Service does not terminate  when you go on a military leave, a sick leave or another Company approved  leave of absence, and if continued crediting of Service is required by the  terms of the leave or by applicable law. But your Service terminates when the  approved leave ends, unless you immediately return to active work.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| ** **                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| ** **                                  |   | Your status as an Awardee Eligible to Vest (as  defined in the U.S. Plan) will always cease upon termination of employment  with the Company or a Subsidiary or Affiliate except as provided in Article 5  of the U.S. Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| ** **                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| ** **                                  |   | If you commence working on a part-time basis, then  the vesting schedule specified in the Notice of Share Option Grant may be  adjusted in accordance with the Company’s part-time work policy or the terms  of an agreement between you and the Company pertaining to your part-time  schedule.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| **Restrictions on Exercise**                |   | The Company will not permit you to exercise this  option if the issuance of shares at that time would violate any law or  regulation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| ** **                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| **Notice of Exercise**                      |   | You may exercise this option from time to time for  any number of shares for which the option is then exercisable, by notice in  writing, electronically or by other means to, and as prescribed by, the  Company’s equity incentive administration service provider (the “administration  service provider”). Your exercise notice will be effective and irrevocable at  such time as your notice, method of payment and such other documentation as  the administration service provider may require have been received by the  administration service provider. You hereby direct the Company to deposit any  shares issued upon exercise of the option in your Smith Barney account.                                                                                                                                                                                         |
| ** **                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| ** **                                  |   | If someone else wants to exercise this option after  your death, that person must prove to the Company’s satisfaction that he or  she is entitled to do so.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| ** **                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| **Form of Payment**                         |   | When you exercise this option, you must provide for  payment of the option exercise price for the shares that you are purchasing.  Notwithstanding any provision in the U.S. Plan to the contrary, upon exercise  of an option, the full exercise price will be paid either in cash, by check  or by credit transfer. Under a cashless exercise program, you may give  irrevocable instructions to the administration service provider to properly  deliver the option price to the Company.                                                                                                                                                                                                                                                                                                                                                                                                    |
| ** **                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| **Withholding Taxes and Stock Withholding** |   | Regardless of any action the Company or your employer (the  “Employer”) takes with respect to any or all income tax, social insurance,  payroll tax, payment on account or other tax-related withholding  (“Tax-Related Items”), you acknowledge that the ultimate liability for all  Tax-Related Items legally due by you is and remains your responsibility and  that the Company and/or the Employer (1) make no representations  or undertakings regarding the treatment of any Tax-Related Items in  connection with any aspect of the option grant, including the grant, vesting  or exercise of the option, the subsequent sale of shares acquired pursuant to  such exercise and the receipt of any dividends; and (2) do not commit to  structure the terms of the grant or any aspect of the option to reduce or  eliminate your liability for Tax-Related Items. |

 

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|                            |   | Prior to exercise of the option, you will pay or  make adequate arrangements satisfactory to the Company and/or  the Employer to satisfy all withholding and payment on account obligations of  the Company and/or the Employer. In this regard, you  authorize the Company and/or the Employer to withhold all applicable  Tax-Related Items legally payable by you from your wages or other cash  compensation paid to you by the Company and/or the Employer,  within legal limits, or from proceeds of the sale of shares. Finally, you  will pay to the Company or the Employer, by means of cash, check or  credit transfer, any amount of Tax-Related Items that the Company or  the Employer may be required to withhold as a result of your participation in  the Plan or your purchase of shares that cannot be satisfied by the means  previously described. The Company may refuse to honor  the exercise and refuse to deliver the shares if you fail to comply with your  obligations in connection with the Tax-Related Items as described in this  section. |
|----------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** **                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **Restrictions on Resale** |   | You agree not to sell any option shares at a time  when applicable laws, Company policies or an agreement between the Company  and its underwriters prohibit a sale. This restriction will apply as long as  your Service continues and for such period of time after the termination of  your Service as the Company may specify.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| ** **                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **Transfer of Option**     |   | This option may not be sold, pledged, assigned,  hypothecated, transferred, or disposed of in any manner other than by the  beneficiary designation, will or by the laws of descent or distribution and  may be exercised, during your lifetime, only by you.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| ** **                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **Retention Rights**       |   | Your option or this Share Option Agreement does not  give you the right to be retained by the Company or a subsidiary of the  Company in any capacity. The Company and its subsidiaries reserve the right  to terminate your Service at any time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| ** **                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **Stockholder Rights**     |   | You, or your estate or heirs, have no rights as a  stockholder of the Company until you have exercised this option by submitting  the required notice in accordance with the provisions under “Notice of  Exercise” set forth above and paying the exercise price and any applicable  withholding taxes. No adjustments are made for dividends or other rights if  the applicable record date occurs before you exercise this option, except as  described in the Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| ** **                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| **Adjustments**            |   | In the event of a stock split, a stock dividend or a  similar change in Company stock, the number of shares covered by this option  and the exercise price per share may be adjusted pursuant to the Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| ** **                 |   | * *                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| **Nature of the Grant**    |   | In accepting the grant, you acknowledge that:

* *

(a)  the Plan is established voluntarily by the  Company, it is discretionary in nature and it may be modified, amended,  suspended or terminated by the Company at any time, unless otherwise provided  in the Plan and this Share Option Agreement;

 

(b)  the grant of the option is voluntary and  occasional and does not create any contractual or other right to receive  future grants of options, or benefits in lieu of options, even if options  have been granted repeatedly in the past;

 

(c)  all decisions with respect to future option  grants, if any, will be at the sole discretion of the Company;

 

(d)  you are voluntarily participating in the  Plan;

 

(e)  the option is an extraordinary item that  does not constitute compensation of any kind for services of any kind  rendered to the                                                                                                                                       |

 

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|                                     |         | Companyor  the Employer, and which is outside the scope of your employment contract, if  any;

 

(f)  the option is not part of normal or  expected compensation or salary for any purposes, including, but not limited  to, calculating any severance, resignation, termination, redundancy, end of  service payments, bonuses, long-service awards, pension or retirement  benefits or similar payments and in no event should be considered as  compensation for, or relating in any way to, past services for the Company or  the Employer;

 

(g)  in the event that you are not an employee  of the Company, the option grant will not be interpreted to form an  employment contract or relationship with the Company; and furthermore, the  option grant will not be interpreted to form an employment contract with the  Employer or any subsidiary or affiliate of the Company;

 

(h)  the future value of the underlying shares  is unknown and cannot be predicted with certainty;

 

(i)  if the underlying shares do not increase in  value, the option will have no value;

 

(j)  if you exercise your option and obtain  shares, the value of those shares acquired upon exercise may increase or  decrease in value, even below the exercise price;

 

(k)  in consideration of the grant of the  option, no claim or entitlement to compensation or damages shall arise from  termination of the option or diminution in value of the option or shares  purchased through exercise of the option resulting from termination of your  employment by the Company or the Employer (for any reason whatsoever and  whether or not in breach of local labor laws) and you irrevocably release the  Companyand the Employer from  any such claim that may arise; if, notwithstanding the foregoing, any such  claim is found by a court of competent jurisdiction to have arisen, then, by  signing this Share Option Agreement, you shall be deemed irrevocably to have  waived your entitlement to pursue such claim; and

 

(l)  in the event of termination of your  employment, your right to receive the option and vest in the option under the  Plan, if any, will terminate effective as of the date that you are no longer  actively employed and will not be extended by any notice period mandated  under local law (*e.g.*, active  employment would not include a period of “garden leave” or similar period  pursuant to local law); furthermore, in the event of termination of  employment, your right to exercise the option after termination of  employment, if any, will be measured by the date of termination of your  active employment and will not be extended by any notice period mandated  under local law; the Company shall have the exclusive discretion to determine  when you are no longer actively employed for purposes of your option grant. |
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| ** **                          | *** *** | *** ***                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| **Data Privacy Notice and Consent** | *** *** | ***You******hereby explicitly and unambiguously consent to the collection, use and  transfer, in electronic or other form, of your  personal data as described in this Share Option Agreement by and among, as  applicable, your employer, the Company, its  subsidiaries and its affiliates for the exclusive purpose of implementing,  administering and managing your participation in the Plan.***

*** ***

***You******understand that the Company and your  employer may hold certain personal information about you,  including, but not limited to, your name, home address and  telephone number, date of birth, social insurance number or other  identification number, salary, nationality, job title, any shares of stock or  directorships held in the Company, details of all options  or any other entitlement to shares awarded,***                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

 

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|                                   | *** *** | ***canceled, vested, unvested or  outstanding in your favor, for the purpose of  implementing, administering and managing the Plan (“Data”). You  understand that Data may be transferred to any third parties assisting in the  implementation, administration and management of the Plan, that these  recipients may be located in your country, or elsewhere, and  that the recipient’s country may have different data privacy laws and  protections than your country. You  understand that you may request a list with the  names and addresses of any potential recipients of the Data by contacting your  local human resources representative. You  authorize the recipients to receive, possess, use, retain and transfer the  Data, in electronic or other form, for the purposes of implementing,  administering and managing your participation in the Plan,  including any requisite transfer of such Data as may be required to a broker,  escrow agent or other third party with whom the shares received upon exercise  of the option may be deposited. You  understand that Data will be held only as long as is necessary to implement,  administer and manage your participation in the Plan.  You understand that you  may, upon request, view Data, request additional information about the  storage and processing of Data ,correct Data or refuse or withdraw the  consents herein, in any case without cost, by contacting in writing your  local human resources representative. You  understand that refusal or withdrawal of consent may affect your  ability to participate in the Plan. For more information on the consequences  of your refusal to consent or withdrawal of consent, You  understand that You may contact your  local human resources representative.*** |
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| ** **                        |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **Language**                      |         | If you have received this Share Option Agreement or  any other document related to the Plan translated into a language other than  English and if the translated version is different than the English version,  the English version will control.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| ** **                        |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **Applicable Law**                |         | This Share Option Agreement shall be governed by,  and construed in accordance with, the laws of the Republic of Singapore  (except its choice-of-law provisions).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| ** **                        |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **The Plan and Other Agreements** |         | The text of the Plan is incorporated in this Share  Option Agreement by reference.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| ** **                        |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| ** **                        |         | This Share Option Agreement and the Plan constitute  the entire understanding between you and the Company regarding this option.  Any prior agreements, commitments or negotiations concerning this option are  superseded. This Share Option Agreement may be amended only by another  written agreement between the parties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| ** **                        |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| ** **                        |         | If one or more of the provisions of this Share  Option Agreement shall be held invalid, illegal or unenforceable in any  respect, the validity, legality and enforceability of the remaining  provisions shall not in any way be affected or impaired thereby and the  invalid, illegal or unenforceable provisions shall be deemed null and void;  however, to the extent permissible by law, any provisions which could be  deemed null and void shall first be construed, interpreted or revised  retroactively to permit this Share Option Agreement to be construed so as to  foster the intent of this Share Option Agreement and the Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

**YOURELECTRONIC SIGNATURE TO THIS NOTICE AND AGREEMENT IS YOUR AGREEMENT TO ALL OFTHE TERMS AND CONDITIONS DESCRIBED ABOVE AND IN THE PLAN.**

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