Document:

Exhibit 10.25

 

AGILENT
TECHNOLOGIES, INC.

 

1999
Stock Plan

New
Executive Stock Award Agreement (“Award Agreement”)

For the
Period Ending October 31, [YEAR]

 

Section 1.                                          Grant of Stock Award.  This Stock
Award Agreement, dated as of the date of grant indicated in your
account maintained by the company providing administrative services in
connection with the Plan (as defined below) (the “External Administrator”), is entered into between Agilent
Technologies, Inc. (the “Company”), and you as an individual who has been
granted Restricted Stock Units (the “Awardee”) pursuant to the Agilent
Technologies, Inc. 1999 Stock Plan (the “Plan”).  This Stock Award represents the right to
receive  the number of shares of
the Company’s $0.01 par value voting common stock indicated in the Awardee’s External
Administrator account subject to the fulfillment of the conditions set forth
below and pursuant to and subject to the terms and conditions set forth in the Plan and the
administrative rules thereunder. 
Capitalized terms used and not otherwise defined herein are used with
the same meanings as in the Plan.

 

Section 2.                                          Vesting
Criteria.  This Stock Award shall
vest upon the achievement of Company performance criteria as set by the
Committee at the time of grant and as communicated to you concurrent with this
Award Agreement.  This Stock Award shall
vest over a period of time not to exceed three years from the date stated in Section 1
above, and ending on October 31 [YEAR], which shall be known as the “Vesting
Period”.    Depending upon achievement of
the Company performance criteria as solely determined by the Committee, this
Stock Award may vest and be paid out at any level from zero to 200% of the
Target Award.

 

Section 3.                                          Objective
Business Criteria.  This Stock
Award shall not vest and no shares of Common Stock will be issued to the
Awardee until the Committee has certified in writing that the Company
performance criteria have been achieved or exceeded, except as set forth in Section 5.  The Stock Award shall be settled no later
than the fifteenth day of the third month following the later of (i) the
last day of the calendar year in which the Stock Award vests or (ii) the
last day of the Company’s fiscal year in which the Stock Award vests.

 

Section 4.                                          Nontransferability
of Stock Award.  This Stock Award
shall not be transferable by Awardee otherwise than by will or by the laws of
descent and distribution.  The terms of
this Stock Award shall be binding on the executors, administrators, heirs and
successors of Awardee.

 

Section 5.                                          Termination of Employment or
Service; Change of Control.

 

(a)                                  An
Awardee who, whether voluntarily or involuntarily, terminates from the Company
or otherwise ceases to be employed in a participating position at any time
during a Vesting Period, shall not be eligible to receive a payout except as
set forth in this Section 5.  Except
as provided in this Section 5, in order to receive payment of the Stock
Award upon vesting, the Awardee must be listed on the payroll of the Company or
an Affiliate on the date 

 

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when the Stock Award is
paid out.  Except as the Committee may
otherwise determine, termination of Awardee’s employment or service for any
reason shall occur on the date such Awardee ceases to perform services for the
Company or any Affiliate without regard to whether such Awardee continues
thereafter to receive any compensatory payments therefrom or is paid salary
thereby in lieu of notice of termination or, with respect to a member of the
Board who is not also an employee of the Company or any Subsidiary, the date
such Awardee is no longer a member of the Board.

 

(b)                                 An
Awardee who dies or terminates employment as a result of becoming totally and
permanently disabled during a Vesting Period shall have paid to his or her
estate or designated beneficiaries or, in the case of disability, either (i) him
or her or (ii) his or her legally appointed guardian, at the end of the Vesting
Period, a payout based on the full amount of the specified percentage of the Target
Award determined by the Committee under Section 3 for the full Vesting
Period; except that, with respect to any Vesting Period in which such death or
termination of employment occurs during the first 12 months of the Vesting
Period, the payout for such Vesting Period shall equal an amount calculated by
multiplying (a) the Award determined under Section 3 for the full Vesting
Period times (b) a fraction, the numerator of which is the number of days
from the beginning of the Vesting Period to the date of such death or
termination of employment, and the denominator of which is the number of days
in the 12-month period.

 

(c)                                  Unless
otherwise required under local law, an Awardee who retires (in accordance with
the Company’s then current retirement policy) during a Vesting Period shall, at
the end of the Vesting Period, be entitled to receive his or her Stock Award payout
based on the full amount of the specified percentage of the Target Award
determined by the Committee under Section 3 for the full Vesting Period;
except that, with respect to any Vesting Period in which such retirement occurs
during the first 12 months of the Vesting Period, the payout for such Vesting
Period shall equal an amount calculated by multiplying (a) the amount
determined  under Section 3 for the
full Vesting Period times (b) a fraction, the numerator of which is the
number of days from the beginning of the Vesting Period to the date of such
retirement, and the denominator of which is the number of days in the 12-month
period.

 

(d)                                 An
Awardee who is demoted from eligibility and accordingly ceases to be employed
in a participating position at any time during a Vesting Period shall, at the
end of the Vesting Period, be entitled to receive his or her Stock Award payout
based on the full amount of the specified percentage of the Target Award
determined by the Committee under Section 3 for the full Vesting Period;
except that, with respect to any Vesting Period in which such demotion occurs
during the first 12 months of the Vesting Period, the payout for such Vesting
Period shall equal an amount calculated by multiplying (a) the amount
determined  under Section 3 for the
full Vesting Period times (b) a fraction, the numerator of which is the
number of days from the beginning of the Vesting Period to the date of such
demotion, and the denominator of which is the number of days in the 12-month
period.

 

(e)                                  An
Awardee who terminates employment at any time during a Vesting Period under a
Workforce Management Program of the Company or its Subsidiary shall, at the end
of the Vesting Period, be entitled to receive his or her Stock Award payout
based on the full amount 

 

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of the specified percentage of
the Target Award determined by the Committee under Section 3 for the full Vesting
Period; except that, with respect to any Vesting Period in which such
termination of employment occurs during the first 12 months of the Vesting
Period, the payout for such Vesting Period shall equal an amount calculated by
multiplying (a) the amount determined 
under Section 3 for the full Vesting Period times (b) a
fraction, the numerator of which is the number of days from the beginning of
the Vesting Period to the date of such termination of employment, and the
denominator of which is the number of days in the 12-month period.

 

(f)                                    In
the event of a Change of Control of the Company (as defined in Section 15(c) of
the 1999 Stock Plan or any successor), an Awardee shall receive, at the end of
the Vesting Period, a Stock Award payout that is equivalent to the greater of
the Target Award or the accrued amount of the payout (i.e., the amount accrued
as the expected liability for this Stock Award by the Company’s corporate
finance department); except that, with respect to any Vesting Period in which
such Change of Control occurs during the first 12 months of the Vesting Period,
the payout for such Vesting Period shall equal an amount calculated by
multiplying (a) the amount determined 
herein times (b) a fraction, the numerator of which is the number
of days from the beginning of the Vesting Period to the date of such Change of
Control, and the denominator of which is the number of days in the 12-month
period.

 

(g)                                 Payments
under Sections 5(b)–(f) shall be settled no later than the later of (i) the
last day of the calendar year in which the Stock Award vests or (ii) the
fifteenth day of the third month following the vesting of the Stock Award,
unless the recipient is a “specified employee” as provided below, in which case
the terms of Section 5(h) shall apply.

 

(h)                                 For
purposes of this Award Agreement, a termination of employment will be
determined consistent with the rules relating to “separation from service”
as defined in Treasury Regulation Section 1.409A-1(h).  Notwithstanding anything else provided
herein, to the extent any payments provided under this Award Agreement in
connection with your termination of employment constitute deferred compensation
subject to Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”),
and you are deemed at the time of such termination of employment to be a “specified
employee,” (as defined in Treasury Regulation Section 1.409A-1(i)), then,
to the extent required by Section 409A, such payment shall not be made or
commence until the earlier of (i) the expiration of the 6-month period
measured from your separation from service from the Company or (ii) the
date of your death following such a separation from service.  To the extent that any provision of this
Award Agreement is ambiguous as to its compliance with Section 409A, the
provision will be read in such a manner so that all payments hereunder comply
with Section 409A.

 

Section 6.                                          Restrictions
on Issuance of Shares of Common Stock. 
The Company shall not be obligated to issue any shares of Common Stock
pursuant to this Stock Award unless the shares are at that time effectively
registered or exempt from registration under the U.S. Securities Act of 1933,
as amended, and, as applicable, local laws.

 

Section 7.                                          Responsibility
for Taxes.  Regardless of any action the Company  or Awardee’s employer (the “Employer”)
takes with respect to any or all income tax, social 

 

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insurance, payroll tax or other tax-related withholding (the “Tax-Related
Items”), Awardee acknowledges that the ultimate liability for all Tax-Related
Items legally due by Awardee is and remains Awardee’s 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 Stock Award, including the grant and vesting of the
Stock Award, the subsequent sale of shares of Common Stock acquired pursuant to
the Stock Award and the receipt of any dividends or other distributions, if
any; and (2) do not commit to structure the terms of the grant or any
aspect of the Stock Award to reduce or eliminate Awardee’s liability for
Tax-Related Items.

 

Awardee authorizes the
Company and/or the Employer to, in the sole discretion of the Company and/or
the Employer, withhold all applicable Tax-Related Items legally payable by
Awardee from Awardee’s wages or other cash compensation paid to Awardee by the
Company and/or the Employer, within legal limits, or from proceeds of the sale
of shares of Common Stock. 
Alternatively, or in addition, if permissible under local law, the
Company may in its sole discretion (1) sell or arrange for the sale of
shares of Common Stock that Awardee acquires to meet the withholding obligation
for Tax-Related Items, and/or (2) withhold in shares of Common Stock,
provided that the Company only withholds the amount of shares of Common Stock
necessary to satisfy the minimum withholding amount.  Finally, Awardee shall pay to the Company or
the Employer any amount of Tax-Related Items that the Company or the Employer
may be required to withhold as a result of Awardee’s participation in the Plan
or Awardee’s acquisition of shares of Common Stock that cannot be satisfied by
the means previously described.  The
Company may refuse to deliver the shares of Common Stock if Awardee fails to
comply with Awardee’s obligations in connection with the Tax-Related Items as
described in this section.

 

Section 8.                                          Adjustment.  The number of shares of Common Stock subject to
this Stock Award and the price per share, if any, of such shares may be
adjusted by the Company from time to time pursuant to the Plan.

 

Section 9.                                          Nature
of the Award.  By accepting this
Stock Award, Awardee acknowledges that:

 

(1)                                  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 Award Agreement;

 

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

 

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

 

(4)                                  participation in the Plan shall not create a
right to further employment with the Employer and shall not interfere with the
ability of the Employer to terminate Awardee’s employment relationship at any
time;

 

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(5)                                  participating in the Plan is voluntary;

 

(6)                                  the Stock Award is an extraordinary item that
does not constitute compensation of any kind for services of any kind rendered
to the Company or the Employer, and which is outside the scope of Awardee’s
employment contract, if any;

 

(7)                                  the Stock Award 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 to the Company or the Employer;

 

(8)                                  in the event Awardee is not an employee of
the Company, the Stock Award will not be interpreted to form an employment
contract or relationship with the Company; and furthermore, the Stock Award
will not be interpreted to form an employment contract with the Employer or any
subsidiary or affiliate of the Company;

 

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

 

(10)                            if Awardee accepts the Stock Award and obtains shares of Common Stock,
the value of those shares of Common Stock acquired may increase or decrease in
value;

 

(11)                            in consideration of the grant of the Stock Award, no claim or
entitlement to compensation or damages shall arise from termination of the
Stock Award or diminution in value of the Stock Award or shares of Common Stock
acquired under the Stock Award resulting from termination of Awardee’s
employment by the Company or the Employer and Awardee irrevocably releases the
Company  and the Employer from any
such claim that may arise;

 

(12)                            by accepting the grant of this Stock Award, the Awardee and the
Company agree that this Stock Award is granted under and governed by the terms
and conditions of the Plan and this Award Agreement, and the Awardee
acknowledges that he or she agrees to accept as binding, conclusive and final
all decisions or interpretations of the Administrator upon any questions
relating to the Plan and Award Agreement;
and

 

(13)                            the Awardee acknowledges that this Award Agreement is between the Awardee
and the Company, and that the Awardee’s local employer is not a party to this
Award Agreement.

 

Section 10.                                   Data Privacy.  The
Awardee explicitly and unambiguously consents to the collection, use and
transfer, in electronic or other form, of the Awardee’s personal data as
described in this document by and among, as applicable, the Company, the
Employer and the External Administrator for the exclusive purpose of
implementing, administering and managing Awardee’s participation in the Plan.

 

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Awardee hereby understands that the Company and the
Employer hold certain personal information about the Awardee, including, but
not limited to, Awardee’s name, home address and telephone number, date of
birth, or other identification number, salary, nationality, job title, any
shares of stock or directorships held in the Company, details of all Stock
Awards or any other entitlement to shares of Common Stock awarded, canceled,
exercised, vested, unvested or outstanding in the Awardee’s favor, for the
purpose of implementing, administering and managing the Plan (“Data”).  Awardee hereby understands that Data may be
transferred to any third parties (including the External Administrator) assisting
in the implementation, administration and management of the Plan, that these
recipients may be located in Awardee’s country or elsewhere, such as outside
the European Economic Area and that the recipient’s country may have different
data privacy laws and protections than Awardee’s country.  All such transfers of Data will be in
accordance with the Company’s Privacy Policies and Guidelines.  Awardee hereby understands that Awardee may
request a list with the names and addresses of any potential recipients of the
Data by contacting Awardee’s local human resources representative.  Awardee authorizes the recipients to receive,
possess, use, retain and transfer the Data, in electronic or other form, for
the purposes of implementing, administering and managing the Awardee’s
participation in the Plan, including any requisite transfer of such Data as may
be required to a broker or other third party with whom Awardee may elect to
deposit any Common Stock acquired upon vesting of the Stock Award.  Awardee hereby understands that Awardee may,
at any time, view Data, request additional information about the storage and
processing of Data, require any necessary amendments to Data or refuse or
withdraw the consents herein, in any case without cost, by contacting in
writing Awardee’s local human resources representative.  Awardee hereby understands, however, that
refusing or withdrawing the Awardee’s consent may affect the Awardee’s ability
to participate in the Plan.  For more
information on the consequences of Awardee’s refusal to consent or withdrawal
of consent, Awardee understands that he or she may contact his or her human
resources representative responsible for Awardee’s country at the local or
regional level.

 

Section 11.                                   No Rights Until Issuance.  Awardee shall have no rights hereunder as a
shareholder with respect to any shares subject to this Stock Award until the
date that shares of Common Stock are issued to the Awardee.  The Committee in its sole discretion may
substitute a cash payment in lieu of shares of Common Stock, such cash payment
to be equal to the Fair Market Value of the Shares on the date that such Shares
would have otherwise been issued under the terms of this Agreement.

 

Section 12.                                   Administrative
Procedures.  Awardee agrees to follow the
administrative procedures that may be established by the Company and/or its
designated broker for participation in the Plan which may include a requirement
that the shares issued upon vesting be held by the Company’s designated broker
until the Awardee disposes of such shares. 
Awardee further agrees that the Company may determine the actual method
of withholding for Tax-Related Items as described in Section 7 above.  The
method for acceptance of this Award will vary in accordance with local
law.  Depending upon the country in which
the Awardee works, he or she will either have to use the electronic process set
forth on the External Administrator’s website and/or sign a hard-copy of the
Award Agreement and then return it to the Agilent Shareholder Records
Department.

 

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Section 13.                                   Governing
Law and Venue.  This Award
Agreement shall be governed by and construed according to the laws of the State
of Delaware without regard to its principles of conflicts of laws as provided
in the Plan.  Any proceeding arising out
of or relating to this Award Agreement or the Plan may be brought only in the
state or federal courts located in the Northern District of California where
this grant is made and/or to be performed, and the parties to this Award Agreement
consent to the exclusive jurisdiction of such courts.

 

Section 14.                                   Amendment.  This Stock Award may be amended as provided
in the Plan.

 

Section 15.                                   Language.  If the Awardee has received this 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.

 

Section 16.                                   Electronic
Delivery.  The Company may, in
its sole discretion, decide to deliver any documents related to the Stock Award
granted under (and participation in) the Plan or future awards that may be
granted under the Plan by electronic means or to request the Awardee’s consent
to participate in the Plan by electronic means. 
The Awardee hereby consents to receive such documents by electronic
delivery and, if requested, to agree to participate in the Plan through an
on-line or electronic system established and maintained by the Company or
another third party designated by the Company.

 

Section 17.                                   Severability.  The provisions of this Award Agreement are
severable and if any one or more provisions are determined to be illegal or
otherwise unenforceable, in whole or in part, the remaining provisions shall
nevertheless be binding and enforceable.

 

Section 18.                                   Entire Agreement.  The
Plan is incorporated herein by reference. 
The Plan and this Award Agreement constitute the entire agreement of the
parties with respect to the subject matter hereof and supersede in their
entirety all prior undertakings and agreements of the Company and Awardee with
respect to the subject matter hereof, and may not be modified adversely to the
Awardee’s interest except by means of a writing signed by the Company and the
Awardee.

 

[Remainder
of page intentionally left blank.]

 

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  AGILENT TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ William P. Sullivan

  
	
   

  	
  William P. Sullivan

  
	
   

  	
  President and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ D. Craig Nordlund

  
	
   

  	
  D. Craig Nordlund

  
	
   

  	
  Senior Vice President, General Counsel and Secretary

  

 

 

Accepted
and agreed as to the foregoing:

 

AWARDEE

 

 

	
   

  	
   

  
	
  Signature

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Print Name

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date

  	
  Employee Number

  
				

 

 

As of December 2007, a hard-copy
signature is required in the following countries:

 

Brazil, Germany, India, Israel, Italy, Japan,
Malaysia, the Netherlands, Singapore, Spain, and Switzerland. France and the
United Kingdom must use country-specific award agreements.

 

Please fax all pages to Shareholder Records,
fax number: (408) 345-8237

 

 

PRINT AND KEEP A
COPY FOR YOUR RECORDS

 

8Exhibit 10.34

 

AGILENT
TECHNOLOGIES, INC. PERFORMANCE-BASED COMPENSATION 

PLAN
FOR COVERED EMPLOYEES

 

Amended
and Restated Effective December 18, 2008

 

1.                                      Purpose.  The purpose of the Agilent Technologies, Inc.
Performance-Based Compensation Plan for Covered Employees is to provide certain
employees of Agilent Technologies, Inc. and its subsidiaries with
incentive compensation based upon the level of achievement of financial,
business and other performance criteria. 
Effective December 18, 2008 the Plan was amended pursuant to Section 10(e) by
the Assistant Secretary of the Company to make a minor administrative change
made desirable by Section 409A of the Code.

 

2.                                      Definitions.  As used in the Plan, the following terms
shall have the meanings set forth below:

 

(a)            “Affiliate” shall mean (i) any entity that, directly or
indirectly, is controlled by the Company and (ii) any entity in which the
Company has a significant equity interest, in either case as determined by the
Committee.

 

(b)           “AFM” shall mean the Company’s Accounting and Financial
Manual, as posted from time to time on the Company’s internal web site.

 

(c)            “Base Pay” shall mean the annual base rate of cash
compensation, excluding bonuses, commissions, overtime pay, Variable Payments,
Target Variable Payments, shift differential, payments under the Agilent
Technologies, Inc. Disability Plan and the Agilent Technologies, Inc.
Supplemental Income Protection Plan, or any other additional compensation.

 

(d)           “Board” shall mean the Board of Directors of the Company.

 

(e)            “Code” shall mean the Internal Revenue Code of 1986 and the
regulations promulgated thereunder, all as amended from time to time and any
successors thereto.

 

(f)              “Committee” shall mean the Committee designated pursuant to Section 4
of the Plan.

 

(g)           “Company” shall mean Agilent Technologies, Inc., a
Delaware corporation.

 

(h)           “Covered Officer” shall mean at any date (i) any
individual who with respect to the previous taxable year of the Company, was a “covered
employee” of the Company within the meaning of Section 162(m); 

 

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(i)               provided,
however that the term “Covered Officer” shall not include any such individual
who is designated by the Committee, in its sole discretion, at the time of any
Variable Payment or at any subsequent time, as reasonably expected not to be
such a “covered employee” with respect to the then current taxable year of the
Company, and (ii) any individual who is designated by the Committee, in
its sole discretion, at the time of any Variable Payment or at any subsequent
time, as reasonably expected to be such a “covered employee” with respect to
the then current taxable year of the Company or with respect to the taxable
year of the Company in which any applicable Variable Payment will be paid.

 

(j)               “Fiscal Year” shall mean the twelve-month period from November 1
through October 31.

 

(k)            “Net Order Dollars” shall be as defined in the Company’s
Corporate Marketing Policy, as posted on the Company’s internal web site at the
start of the Performance Period.

 

(l)               “Net Profit Dollars” shall be as defined in the AFM at the
start of the Performance Period.

 

(m)         “Net Profit Growth” shall be defined with respect to any
Performance Period as determined by the Committee, in its sole discretion.

 

(n)           “Net Revenue Dollars” shall be as defined in the AFM at the
start of the Performance Period.

 

(o)           “Participant” shall mean each salaried employee of the
Company or its Affiliates in active service whose position is designated by the
Committee as eligible for participation in the Plan and who is selected by the
Committee for participation in the Plan prior to the Predetermination Date.

 

(p)           “Performance Measure” shall mean any measurable criteria
tied to the Company’s success that the Committee may determine, including Net
Order Dollars, Net Profit Dollars, Net Profit Growth, Net Revenue Dollars,
Revenue Growth, individual performance, earnings per share, return on assets,
return on equity, return on invested capital, other Company and business unit
financial objectives, customer satisfaction indicators and operational
efficiency measures.

 

(q)           “Performance Period” shall mean a six-month period of time
based upon the halves of the Company’s Fiscal Year, or such other time period
as shall be determined by the Committee.

 

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(r)              “Plan” shall mean the Agilent Technologies, Inc.
Performance-Based Compensation Plan for Covered Employees, as amended from time
to time.

 

(s)            “Predetermination Date” shall mean (i) the earlier of,
a date 90 days after the commencement of the Performance Period, or a date not
later than the expiration of 25% of the Performance Period, provided that the
satisfaction of selected Performance Measures is substantially uncertain at such
time, or (ii) such other date on which a performance goal is considered to
be pre-established pursuant to Section 162(m).

 

(t)              “Revenue Growth” shall be defined with respect to any
Performance Period as determined by the Committee, in its sole discretion.

 

(u)           “Section 162(m)” shall mean Section 162(m) of
the Code.

 

(v)           “Target Variable Payment” shall mean a Variable Payment
amount that may be paid if 100% of all applicable Performance Measures are
achieved in the Performance Period.  The
Target Variable Payment shall be equal to a fixed percentage of the Participant’s
Base Pay for such Performance Period. 
Except as otherwise provided in Section 6, the Committee shall
determine such percentage prior to the Predetermination Date.

 

(w)         “Threshold Variable Payment Percentage” shall mean a
Variable Payment amount that may be paid if the minimum level (or percentage)
of applicable Performance Measures is achieved for a Performance Period.

 

(x)             “Variable Payment” shall mean a cash payment, which may be
an addition to Base Pay, made pursuant to the Plan with respect to a particular
Performance Period.  The amount of a
Variable Payment may be less than, equal to or greater than the Target Variable
Payment; provided, however, that a Variable Payment shall not be
greater than an amount equal to two hundred percent (200%) of the Target
Variable Payment.

 

3.                                      Eligibility.  Persons employed by the Company or any of
its Affiliates during a Performance Period and in active service are eligible
to be Participants under the Plan for such Performance Period, whether or not
so employed or living at the date a Variable Payment is paid, and may be
considered by the Committee for a Variable Payment.  A Participant is not rendered ineligible to
be a Participant by reason of being a member of the Board.  Notwithstanding anything herein to the
contrary, the Committee shall have sole discretion to designate or approve the
Participants for any given Performance Period.

 

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4.                                      Administration.

 

(a)            Unless
otherwise designated by the Board, the Compensation Committee of the Board
shall be the Committee under the Plan.  A
director may serve as a member or an alternate member of the Committee only
during periods in which the director is an “outside director” as described in Section 162(m).  Subsequent determination that a member or
alternate member of the Committee was not an “outside director” shall not
invalidate the actions taken by the Committee during such period.  The Committee shall have full power and
authority to construe, interpret and administer the Plan.  It may issue rules and regulations for
administration of the Plan and shall meet at such times and places as it may
determine.  A majority of the members of
the Committee shall constitute a quorum and all decisions of the Committee
shall be final, conclusive and binding upon all parties, including the Company,
its stockholders, employees and Participants.

 

(b)           The
expenses of the administration of the Plan shall be borne by the Company.

 

5.                                      Term.  Subject to Section 10(l), the amended and restated Plan shall be effective as of December 18,
2008, and shall be applicable for future Performance Periods unless amended or
terminated by the Board or the Committee pursuant to Section 10(e).

 

6.                                      Determination
of Plan Participants, Variable Payment Factors and Performance Measures.

 

(a)            In General.  Prior to the Predetermination Date, the
Committee shall designate or approve (A) the positions eligible for
participation in the Plan; (B) the employees in those positions who have
been selected for participation in the Plan for a Performance Period; (B) the
applicable Performance Measures, the Threshold Variable Payment Percentage, the
Target Variable Payment, and the maximum Variable Payments for each
Participant; (iii) the percentages allocated to each Participant for each
Performance Measure, and (iv) the Performance Period.  In addition, notwithstanding the foregoing,
all Performance Measures pertaining to any Covered Officer shall be of such a
nature that an objective third party having knowledge of all the relevant facts
could determine at the end of the Performance Period whether performance
results with respect to such Performance Measures have been achieved.

 

(b)           Effect of Corporate
Transactions.  Effective with the
Performance Period commencing May 1, 2007, unless the Committee determines

 

4

 

otherwise prior to
the Predetermination Date with respect to a Performance Period, the Variable
Payment shall be adjusted to take into account: (i) acquisitions,
divestitures, and investments that (A) closed in the applicable
Performance Period, and (B) were not already taken into account in the
Participant’s Performance Measures for such period.  Any such adjustment shall be applied equally
to all Participants.

 

7.                                      Amount
of Variable Payment.

 

(a)            Calculation.  Within 60 days after the end of the relevant
Performance Period, the Committee shall determine the amount of the Variable
Payment for each Participant by:

 

(i)           Determining
the actual performance results for each Performance Measure;

 

(ii)          Determining
the amount to which each Participant is entitled based on the percentage
allocated by the Committee to each Performance Measure against the Target
Variable Payment for each Participant; and

 

(iii)         Certifying
by resolution duly adopted by the Committee the value of the Variable Payment
for each Participant so determined.

 

(b)         Committee
Discretion.  Notwithstanding any
other provision of this Plan, the Committee may, in the exercise of its sole
discretion and based on any factors the Committee deems appropriate, reduce or
eliminate to zero the amount of a Variable Payment to a Participant otherwise
calculated in accordance with the provisions of Section 7(a) prior to
payment thereof.  The Committee shall
make a determination of whether and to what extent to reduce Variable Payments
under the Plan for each Performance Period at such time or times following the
close of the Performance Period as the Committee shall deem appropriate.  The reduction in the amount of a Variable
Payment to a Participant for a Performance Period shall have no effect on the
amount of the Variable Payment to any other Participant for such period.

 

(c)          Maximum.  Notwithstanding any
other provision of this Plan, the maximum Variable Payment that may be paid to
a Covered Officer under the Plan with respect to a particular Performance
Period is $1.5 million.  To the extent
the period of time defining a Performance Period is changed by the Committee,
then the maximum Variable Payment that may be paid to a Covered Officer under
the Plan with respect to the Performance Period is an amount that bears the
same pro 

 

5

 

rata relationship
to the new period of time as the above amount does to the current six-month
Performance Period as set by the Committee.

 

8.                                      Payment
of Variable Payment.

 

(a)          Payment
of a Variable Payment to a Participant shall be made in a cash payment after
determination of the amount of the Variable Payment under Section 7 above,
except to the extent a Participant has made a timely election to defer the
payment of all or any part of such Variable Payment under the Agilent
Technologies, Inc. Deferred Compensation Plan.

 

(b)         The
payment of a Variable Payment with respect to a specific Performance Period
requires that the employee be on the Company’s payroll as of the end of such
Performance Period.

 

(c)          Payments
of Variable Payments to Participants who are on the payroll of Affiliates of the
Company shall be paid directly by such entities.

 

9.                                      Changes
in Status.

 

(a)          If
during a Performance Period an employee is newly hired or promoted into a
position previously designated by the Committee as eligible for participation
under the Plan, such employee is eligible for selection as a Participant as of
the effective date of hire or  promotion.
The payment of Variable Pay with respect to all or a portion of a specific
Performance Period, as applicable, requires that the employee be on the Company’s
payroll in active service as of the end of such Performance Period unless the
Participant is not in active service on the last day of the Performance Period
due to retirement or death, in which case the Participant will be eligible to
receive a prorated Variable Payment for days worked with respect to the
Performance Period. A Participant who becomes ineligible for this Plan after
the start of the Performance period is eligible to receive a prorated Variable
Payment for days worked, except as provided in Section 9(b).

 

(b)         A
Participant will forfeit any Variable Payment for a Performance Period during
which a Participant is involuntarily terminated for cause or voluntarily
terminates his employment with the Company for reasons other than death,
permanent and total disability or retirement, at the age and service-year level
set by the Company or the local law requirements where the Participant is
employed.

 

6

 

10.                               Miscellaneous.

 

(a)          No
Assignment.  No portion of any
Variable Payment under the Plan may be assigned or transferred otherwise than
by will or the laws of descent and distribution prior to the payment thereof.

 

(b)         Tax
Requirements.  All payments made
pursuant to the Plan or deferred pursuant to Section 8(a) shall be
subject to all applicable taxes or contributions required by U.S. federal or
state law or by non-U.S. local law to be withheld, in accordance with the
procedures to be established by the Committee.

 

(c)          No
Additional Participant Rights.  The
selection of an individual for participation in the Plan shall not give such
Participant any right to be retained in the employ of the Company or any of its
Affiliates, and the right of the Company and any such Affiliate to dismiss such
Participant or to terminate any arrangement pursuant to which any such
Participant provides services to the Company, with or without cause, is
specifically reserved.  No person shall
have claim to a Variable Payment under the Plan, except as otherwise provided
for herein, or to continued participation under the Plan.  There is no obligation for uniformity of
treatment of Participants under the Plan. 
The benefits provided for Participants under the Plan shall be in
addition to and shall in no way preclude other forms of compensation to or in
respect of such Participants.  It is
expressly agreed and understood that the employment is terminable at the will
of either party and, if such Participant is a party to an employment contract
with the Company or one of its Affiliates, in accordance with the terms and
conditions of the Participant’s employment contract.

 

(d)         Liability.  The Board and the Committee shall be entitled
to rely on the advice of counsel and other experts, including the independent
auditors for the Company.  No member of
the Board or of the Committee, any officers of the Company or its Affiliates or
any of their designees shall be liable for any act or failure to act under the
Plan, except in circumstances involving bad faith on the part of such member,
officer or designee.

 

(e)          Amendment;
Suspension; Termination.  The Board
or Committee may, at any time and from time to time, amend, suspend or
terminate the Plan or any part of the Plan as it may deem proper and in the
best interests of the Company.  In the
case of Participants employed outside the United States, the Board, the
Committee or their designees may vary the provisions of the Plan as deemed
appropriate to conform with local laws, practices and procedures.  In addition, the Executive Committee of the
Board or any of the General Counsel, Secretary or 

 

7

 

Assistant
Secretary of the Company is authorized to make certain minor or administrative
changes required by or made desirable by government regulation.  Any modification of the Plan may affect
present and future Participants and the amount of any Variable Payment
hereunder.

 

(f)            Other
Compensation Arrangements.  Nothing
contained in the Plan shall prevent the Company or any Affiliate of the Company
from adopting or continuing in effect other compensation arrangements, which
arrangements may be either generally applicable or applicable only in specific
cases.

 

(g)         Governing
Law.  The validity, construction and
effect of the Plan and any rules and regulations relating to the Plan
shall be determined in accordance with the laws of the State of Delaware and
applicable federal law.

 

(h)         No
Trust.  Neither the Plan nor any
Variable Payments shall create or be construed to create a trust or separate
fund of any kind or a fiduciary relationship between the Company and any
Participant.  To the extent that the
Participant acquires a right to receive payments from the Company in respect of
any Variable Payment, such right shall be no greater than the right of any
unsecured general creditor of the Company.

 

(i)             Section 162(m).
All payments under this Plan are designed to satisfy the special requirements
for performance-based compensation set forth in Section 162(m)(4)(C) of
the Code, and the Plan shall be so construed. 
Furthermore, if a provision of the Plan causes a payment to fail to
satisfy these special requirements, it shall be deemed amended to satisfy the
requirements to the extent permitted by law and subject to Committee approval.

 

(j)             Designation
of Beneficiaries.  A Participant may,
if the Committee permits, designate a beneficiary or beneficiaries to receive
all or part of the Variable Payments which may be paid to the Participant, or
may be payable, after such Participant’s death. 
A designation of beneficiary shall be made in accordance with procedures
specified by the Company and may be replaced by a new designation or may be
revoked by the Participant at any time. 
In case of the Participant’s death, a Variable Payment with respect to
which a designation of beneficiary has been made (to the extent it is valid and
enforceable under applicable law) shall be paid to the designated beneficiary
or beneficiaries.  Any Variable Payment
granted or payable to a Participant who is deceased and not subject to such a
designation shall be distributed to the Participant’s estate.  If there shall be any question 

 

8

 

as to the legal
right of any beneficiary to receive a Variable Payment under the Plan, the
amount in question may be paid to the estate of the Participant, in which event
the Company or its Affiliates shall have no further liability to anyone with
respect to such amount.

 

(k)          Effect
on Company Benefit Plans.  With the
exception of the Agilent Technologies, Inc. Deferred Compensation Plan, it
is the intent of the Company that Company benefits payable or accruable to
Participants, to the extent such benefits are based on earnings or compensation
level, shall be based on Base Pay.  Notwithstanding
the foregoing, this paragraph (k) shall apply to Participants outside of
the United States to the extent permissible under applicable local laws.

 

(l)             Stockholder
Approval.  Shareholders of the
Company will be asked to approve the Plan to the extent necessary to allow the
Company under Section 162(m) to preserve the tax deductibility of
payments for performance-based compensation made under the plan to Covered
Officers.  Plan amendments shall require
stockholder approval to the extent required by applicable law or the applicable
rules of any stock exchange.

 

9

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