Document:

2006 Equity Incentive Plan, as amended as of January 19, 2010.

 Exhibit 10.1 
 VERIGY LTD. 
 2006
EQUITY INCENTIVE PLAN 
 (AS AMENDED
JANUARY 19, 2010) 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE 1.	  	INTRODUCTION	  	1
			
	ARTICLE 2.	  	ADMINISTRATION	  	1
	    2.1	  	Committee Composition	  	1
	    2.2	  	Committee Responsibilities	  	1
	    2.3	  	Administration with Respect to Substitute Awards	  	2
	    2.4	  	Minimum Vesting Requirement	  	2
	    2.5	  	Limited Exceptions to Vesting and Acceleration Limitations	  	2
			
	ARTICLE 3.	  	SHARES AVAILABLE FOR GRANTS	  	3
	    3.1	  	Basic Limitation	  	3
	    3.2	  	Shares Returned to Reserve	  	3
	    3.3	  	Substitute Awards	  	3
	    3.4	  	Dividend Equivalents	  	4
			
	ARTICLE 4.	  	ELIGIBILITY	  	4
	    4.1	  	Incentive Stock Options	  	4
	    4.2	  	Other Grants	  	4
			
	ARTICLE 5.	  	OPTIONS	  	4
	    5.1	  	Option Agreement	  	4
	    5.2	  	Number of Shares	  	4
	    5.3	  	Exercise Price	  	4
	    5.4	  	Exercisability and Term	  	5
	    5.5	  	Effect of Change in Control	  	6
	    5.6	  	Buyout Provisions	  	6
	    5.7	  	Payment for Option Shares	  	6
			
	ARTICLE 6.	  	SHARE APPRECIATION RIGHTS	  	6
	    6.1	  	SAR Agreement	  	6
	    6.2	  	Number of Shares	  	6
	    6.3	  	Exercise Price	  	7
	    6.4	  	Exercisability and Term	  	7
	    6.5	  	Effect of Change in Control	  	8
	    6.6	  	Exercise of SARs	  	8
			
	ARTICLE 7.	  	RESTRICTED SHARES	  	8
	    7.1	  	Restricted Share Agreement	  	8
	    7.2	  	Number of Shares	  	8
	    7.3	  	Payment for Awards	  	8
	    7.4	  	Restrictions & Conditions	  	9
	    7.5	  	Effect of Change in Control	  	9
	    7.6	  	Voting and Dividend Rights	  	9
			
	ARTICLE 8.	  	SHARE UNITS	  	9
	    8.1	  	Share Unit Agreement	  	9
	    8.2	  	Number of Shares	  	9

  

 i 

					
	    8.3	  	Payment for Awards	  	9
	    8.4	  	Vesting Conditions	  	9
	    8.5	  	Effect of Change in Control	  	10
	    8.6	  	Voting and Dividend Rights	  	10
	    8.7	  	Form and Time of Settlement of Share Units	  	10
	    8.8	  	Creditors’ Rights	  	11
			
	ARTICLE 9.	  	AUTOMATIC GRANTS TO OUTSIDE DIRECTORS	  	11
	    9.1	  	Initial Grants	  	11
	    9.2	  	Annual Grants	  	11
	    9.3	  	Cessation of Eligibility to Vest	  	12
	    9.4	  	Accelerated Exercisability	  	12
	    9.5	  	Exercise Price	  	12
	    9.6	  	Term	  	12
	    9.7	  	Affiliates of Outside Directors	  	12
			
	ARTICLE 10.	  	PROTECTION AGAINST DILUTION	  	12
	    10.1	  	Adjustments	  	12
	    10.2	  	Dissolution or Liquidation	  	13
	    10.3	  	Reorganizations	  	13
			
	ARTICLE 11.	  	PAYMENT OF DIRECTOR’S FEES IN SECURITIES	  	14
	    11.1	  	Effective Date	  	14
	    11.2	  	Elections to Receive NSOs, Restricted Shares or Share Units	  	14
	    11.3	  	Number and Terms of NSOs, Restricted Shares or Share Units	  	14
			
	ARTICLE 12.	  	LIMITATION ON RIGHTS	  	15
	    12.1	  	Retention Rights	  	15
	    12.2	  	Shareholders’ Rights	  	15
	    12.3	  	Regulatory Requirements	  	15
			
	ARTICLE 13.	  	WITHHOLDING TAXES	  	15
	    13.1	  	General	  	15
	    13.2	  	Share Withholding	  	15
			
	ARTICLE 14.	  	LIMITATION ON PAYMENTS	  	15
	    14.1	  	Scope of Limitation	  	15
	    14.2	  	Basic Rule	  	16
	    14.3	  	Reduction of Payments	  	16
	    14.4	  	Overpayments and Underpayments	  	16
	    14.5	  	Related Corporations	  	17
			
	ARTICLE 15.	  	FUTURE OF THE PLAN	  	17
	    15.1	  	Term of the Plan	  	17
	    15.2	  	Amendment or Termination	  	17
	    15.3	  	Shareholder Approval	  	17
			
	ARTICLE 16.	  	DEFINITIONS	  	17

  

 ii 

 VERIGY LTD. 
 2006 EQUITY INCENTIVE PLAN 
 ARTICLE 1. INTRODUCTION. 
 The purpose of the Plan is to promote the
long-term success of the Company and the creation of shareholder value by (a) encouraging Employees, Outside Directors and Consultants to focus on critical long-range objectives, (b) encouraging the attraction and retention of Employees,
Outside Directors and Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and Consultants directly to shareholder interests through increased share ownership. The Plan seeks to achieve this purpose by
providing for Awards in the form of Options (which may constitute ISOs or NSOs), SARs, Restricted Shares or Share Units. 
 The
Plan shall be governed by, and construed in accordance with, the laws of the Republic of Singapore (except its choice-of-law provisions). 
 ARTICLE 2. ADMINISTRATION. 
 2.1 Committee Composition. The Committee shall administer the
Plan. The Committee shall consist exclusively of two or more directors of the Company, who shall be appointed by the Board. In addition, each member of the Committee shall meet the following requirements: 
 (a) Any listing standards prescribed by the principal securities market on which the Company’s equity securities are traded;

 (b) Such requirements as the Internal Revenue Service may establish for outside directors acting under plans intended to
qualify for exemption under section 162(m)(4)(C) of the Code; 
 (c) Such requirements as the Securities and Exchange
Commission may establish for administrators acting under plans intended to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange Act; and 
 (d) Any other requirements imposed by applicable law, regulations or rules. 
 2.2 Committee Responsibilities. The Committee shall (a) select the Employees, Outside Directors and Consultants who are to receive Awards under the Plan, (b) determine the type, number, vesting requirements and other
features and conditions of such Awards, (c) interpret the Plan, (d) make all other decisions relating to the operation of the Plan and (e) carry out any other duties delegated to it by the Board. The Committee may adopt such rules or
guidelines as it deems appropriate to implement the Plan, including rules and procedures relating to the operation and administration of the Plan in order to accommodate the specific requirements of local laws and procedures. Without limiting the
generality of the foregoing, the 

 
Committee is specifically authorized to adopt (a) rules and procedures regarding the conversion of local currency, withholding procedures and handling of stock certificates that vary with
local requirements and (b) such sub-plans and Plan addenda as the Committee deems desirable to accommodate foreign tax laws, regulations and practice. The Committee’s determinations under the Plan shall be final and binding on all persons.

 2.3 Administration with Respect to Substitute Awards. Notwithstanding any other provision of this Plan, in connection
with issuing Substitute Awards, the Committee may provide that the Substitute Awards shall be subject to the terms and conditions of the plan and/or agreements under which the awards being assumed or substituted were originally issued, even where
such terms are in conflict or inconsistent with the terms of this Plan. 
 2.4 Minimum Vesting Requirement. All Awards
that vest based solely on the continuation of Service shall vest over a period of not less than three years and all Awards that vest on the basis of one or more performance criteria set forth in Appendix A shall vest over a period of not less
than one year. This Section 2.4 shall not apply to the following: 
 (a) An Award granted prior to December 2, 2009;

 (b) An automatic Award to an Outside Director under Article 9; and 
 (c) Awards falling within the limits on exceptions established by Section 2.5. 
 2.5 Limited Exceptions to Vesting and Acceleration Limitations. A reserve (the “Exceptions Share Reserve”) is
hereby established equal to the sum of (i) 10% of the Shares available for issuance under Article 3 as of December 2, 2009, plus (ii) 10% of any Shares added after December 2, 2009. Up to the Exceptions Share Reserve, the
Committee may: 
 (a) Issue Awards with vesting periods shorter than the minimum vesting requirements of Section 2.4;

 (b) Accelerate the vesting of Awards in connection with a voluntary severance incentive program or workforce management plan
approved by the Board or a Committee as provided in Sections 5.4(d), 6.4(d) and 8.4(d); and 
 (c) Accelerate the Vesting of
Restricted Shares in connection with a voluntary severance incentive program or workforce management plan approved by the Board or a Committee. 
 (d) The following additional provisions shall apply: 
 (i) If Shares subject to
an Award that was granted in reliance on Subsection (a)(i) of this Section 2.5 are returned to the reserve pursuant to Section 3.2, then the number of Shares subject to such Award shall be added back to the Exceptions Share Reserve;

 (ii) Any acceleration of vesting in connection with a voluntary severance incentive program or workforce management plan
approved by the Board or a Committee on or before December 2, 2009 shall not be subject to, and any Awards so accelerated shall not be deducted from, the Exceptions Share Reserve; 
  

 - 2 - 

 (iii) Any acceleration of vesting in connection with a voluntary severance incentive
program or workforce management plan approved by the Board or a Committee on or after December 2, 2009 where the Awards, at the time of issuance, provided for partial or full acceleration of vesting in such circumstances, shall not be subject
to, and any Awards so accelerated shall not be deducted from, the Exceptions Share Reserve; and 
 (iv) Any acceleration of
vesting pursuant to any agreement between the Company and any Participant that was entered into before December 2, 2009 shall not be subject to, and any Awards so accelerated shall not be deducted from, the Exceptions Share Reserve. 

ARTICLE 3. SHARES AVAILABLE FOR GRANTS. 
 3.1 Basic Limitation. Shares issued pursuant to the Plan may be unissued shares or treasury shares. The aggregate number of Shares issued under the Plan shall not exceed (a) 13,300,000 plus
(b) the additional Shares described in Section 3.3. The number of Shares that are subject to Awards outstanding at any time under the Plan shall not exceed the number of Shares that then remain available for issuance under the Plan.
Notwithstanding any other provision of this Plan, the maximum number of Shares that may be issued upon the exercise of ISOs under this Plan is 13,300,000. The limitations of this Section 3.1 shall be subject to adjustment pursuant to
Article 10. 
 3.2 Shares Returned to Reserve. If Options, SARs or Share Units (including Replacement Awards) are
forfeited or terminated for any other reason before being exercised or settled, then the Shares subject to such Options, SARs or Share Units shall again become available for issuance under the Plan. If SARs are exercised, then only the number of
Shares (if any) actually issued in settlement of such SARs shall reduce the number available under Section 3.1 and the balance shall again become available for issuance under the Plan. If Share Units are settled, then only the number of Shares
(if any) actually issued in settlement of such Share Units shall reduce the number available under Section 3.1 and the balance shall again become available for issuance under the Plan. 
 3.3 Substitute Awards. Except with respect to Substitute Awards issued with respect to awards previously issued by Agilent
Technologies, Inc., Substitute Awards shall not reduce the Shares authorized for issuance under the Plan or authorized for grant to a Participant in any calendar year. Additionally, in the event that a company acquired by the Company or any
Subsidiary, or with which the Company or any Subsidiary combines, has shares available under a pre-existing plan approved by shareholders and not adopted in contemplation of such acquisition or combination, the shares available for grant pursuant to
the terms of such pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to the holders of
ordinary shares or common shares of the entities party to such acquisition or combination) may be used for Awards under the Plan and shall not reduce the Shares authorized for issuance under the Plan; provided that Awards using such available Shares
shall not be made 
  

 - 3 - 

 
after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were employees,
directors or consultants of such acquired or combined company before such acquisition or combination. 
 3.4 Dividend
Equivalents. Any dividend equivalents paid or credited under the Plan shall be applied against the number of Shares that may be issued under the Plan if such dividend equivalents are converted into Share Units. 
 ARTICLE 4. ELIGIBILITY. 
 4.1 Incentive Stock Options. Only Employees who are common-law employees of the Company, a Parent or a Subsidiary shall be eligible for the grant of ISOs. In addition, an Employee who owns more than 10% of the total combined voting
power of all classes of outstanding shares of the Company or any of its Parents or Subsidiaries shall not be eligible for the grant of an ISO unless the requirements set forth in section 422(c)(5) of the Code are satisfied. 
 4.2 Other Grants. Only Employees, Outside Directors and Consultants shall be eligible for the grant of Restricted Shares, Share
Units, NSOs or SARs. 
 ARTICLE 5. OPTIONS. 
 5.1 Option Agreement. Each grant of an Option under the Plan shall be evidenced by an Option Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms of
the Plan and may be subject to any other terms that are not inconsistent with the Plan. The Option Agreement shall specify whether the Option is an ISO or an NSO. The provisions of the various Option Agreements entered into under the Plan need not
be identical. 
 5.2 Number of Shares. Each Option Agreement shall specify the number of Shares subject to the Option and
shall provide for the adjustment of such number in accordance with Article 10. Options granted to any Optionee in a single fiscal year of the Company shall not cover more than 750,000 Shares, except that Options granted to a new Employee in the
fiscal year of the Company in which his or her Service as an Employee first commences shall not cover more than 1,500,000 Shares. The limitations set forth in the preceding sentence shall be subject to adjustment in accordance with Article 10.

 5.3 Exercise Price. Each Option Agreement shall specify the Exercise Price; provided that the Exercise Price shall in
no event be less than 100% of the Fair Market Value of a Share on the Date of Grant. Other than in connection with an event or transaction described in Article 10, Options may not be repriced, replaced, regranted through cancellation or
modified without shareholder approval if the effect of such repricing, replacement, regrant or modification would be to reduce the exercise price of such Options. 
  

 - 4 - 

 5.4 Exercisability and Term. 
 (a) General. Each Option Agreement shall specify the date or event when all or any installment of the Option is to become exercisable,
subject to Section 2.4. The Option Agreement shall also specify the term of the Option; provided that the term of an ISO shall in no event exceed 10 years from the Date of Grant. Options may be awarded in combination with SARs, and such an
Award may provide that the Options will not be exercisable unless the related SARs are forfeited. 
 (b) Cessation of
Eligibility to Vest. Unless otherwise provided by the Option Agreement, if an Optionee ceases to be an Awardee Eligible to Vest, other than as a result of circumstances described in Subsection (c) or (d) below, such Optionee’s
Option shall terminate immediately as to the unvested Shares and such unvested Shares shall revert to the Plan, and such Optionee’s Option shall be exercisable as to the vested Shares for three months after the date such individual ceases to be
an Awardee Eligible to Vest or, if earlier, the expiration of the term of such Option. If, for any reason, the Optionee does not exercise his or her vested Option within the appropriate exercise period set forth above, the Option shall automatically
terminate, and the Shares covered by such Option shall revert to the Plan. 
 (c) Death, Disability or Retirement of
Optionee. Unless otherwise provided by the Option Agreement, if an Optionee ceases to be an Awardee Eligible to Vest as a result of the Optionee’s death, Disability, or Separation from Service after age 55 with at least 15 years of
full-time equivalent service with the Company or an affiliate (including service with the Company’s predecessor companies), then (i) the vested portion of such Optionee’s Option shall be determined by adding 12 months to the length of
his or her actual Service, (ii) such Optionee’s Option shall terminate immediately as to the unvested Shares and such unvested Shares shall revert to the Plan, and (iii) such Optionee’s Option shall be exercisable as to the
vested Shares for one year after the date such individual ceases to be an Awardee Eligible to Vest or, if earlier, the expiration of the term of such Option. Where an individual ceases to be an Awardee Eligible to Vest as a result of death, the
Option may be exercised by the beneficiary designated by the Optionee, the executor or administrator of the Optionee’s estate or, if none, by the person(s) entitled to exercise the Option under the Optionee’s will or the laws of descent or
distribution. If, for any reason, the Option is not so exercised within the time specified herein, the Option shall automatically terminate, and the Shares covered by such Option shall revert to the Plan. 
 (d) Voluntary Severance Incentive Program. If an Optionee ceases to be an Awardee Eligible to Vest as a result of participation in a
voluntary severance incentive program or workforce management plan approved by the Board or a Committee, unvested Options shall vest and Options shall remain exercisable, to the extent permitted under applicable laws and provided by the Board or a
Committee in such voluntary severance incentive program or workforce management plan. The total number of Options that may be accelerated pursuant to this Section 5.4(d) shall be subject to the limitations of Section 2.5. Absent a specific
provision for acceleration or extended exercise period, the provisions of Subsection (b) above shall apply. 
  

 - 5 - 

 5.5 Effect of Change in Control. The Committee may determine, at the time of granting
an Option or thereafter, that such Option shall become exercisable as to all or part of the Shares subject to such Option if a Change in Control occurs with respect to the Company or if the Optionee’s Service is terminated without Cause after a
Change in Control. In addition, acceleration of exercisability may be required under Section 10.3. 
 5.6 Buyout
Provisions. The Committee may at any time (a) offer to buy out for a payment in cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to cash out an Option previously granted, in either case at
such time and based upon such terms and conditions as the Committee shall establish. Prior to exercising its authority under this Section 5.6, the Company shall first obtain the approval of the shareholders for the intended buy-out of Options
or offer to Optionees of an election to cash out Options; provided, however, that shareholder approval will not be required with respect to offers, buy-outs or cash elections where the amount of purchase price or cash-out to be paid by the Company
does not exceed the intrinsic value of the Option being bought- or cashed-out, measured on or about the date of the buy-out or cash-out. For clarity, the “intrinsic value” means the Fair Market Value of the Shares subject to the Option,
minus the exercise price, multiplied by the number of Shares being bought- or cashed-out. 
 5.7 Payment for Option
Shares. 
 (a) General Rule. The entire Exercise Price of Shares issued upon exercise of Options shall be payable in
cash or cash equivalents at the time when such Shares are purchased, except that the Committee at its sole discretion may accept payment of the Exercise Price in any other form(s) described in this Section 5.7. However, if the Optionee is an
Outside Director or executive officer of the Company, he or she may pay the Exercise Price in a form other than cash or cash equivalents only to the extent permitted by section 13(k) of the Exchange Act. 
 (b) Exercise/Sale. With the Committee’s consent, all or any part of the Exercise Price and any withholding taxes may be paid by
delivering (in a manner prescribed by the Company) an irrevocable direction to a securities broker approved by the Company to sell all or part of the Shares being purchased under the Plan and to deliver all or part of the sales proceeds to the
Company. 
 (c) Other Forms of Payment. With the Committee’s consent, all or any part of the Exercise Price and any
withholding taxes may be paid in any other form that is consistent with applicable laws, regulations and rules. 
 ARTICLE 6. SHARE
APPRECIATION RIGHTS. 
 6.1 SAR Agreement. Each grant of a SAR under the Plan shall be evidenced by a SAR
Agreement between the Optionee and the Company. Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various SAR Agreements entered into
under the Plan need not be identical. 
 6.2 Number of Shares. Each SAR Agreement shall specify the number of Shares to
which the SAR pertains and shall provide for the adjustment of such number in accordance with Article 10. SARs granted to any Optionee in a single fiscal year shall in no event pertain to more 
  

 - 6 - 

 
than 750,000 Shares, except that SARs granted to a new Employee in the fiscal year of the Company in which his or her Service as an Employee first commences shall not pertain to more than
1,500,000 Shares. The limitations set forth in the preceding sentence shall be subject to adjustment in accordance with Article 10. 
 6.3 Exercise Price. Each SAR Agreement shall specify the Exercise Price; provided that the Exercise Price shall in no event be less than 100% of the Fair Market Value of a Share on the Date of
Grant. Other than in connection with an event or transaction described in Article 10, SARs may not be repriced, replaced, regranted through cancellation or modified without shareholder approval if the effect of such repricing, replacement,
regrant or modification would be to reduce the exercise price of such SARs. 
 6.4 Exercisability and Term. 

(a) General. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become exercisable, subject to
Section 2.4. The SAR Agreement shall also specify the term of the SAR. SARs may be awarded in combination with Options, and such an Award may provide that the SARs will not be exercisable unless the related Options are forfeited. An SAR may be
included in an ISO only at the time of grant but may be included in an NSO at the time of grant or thereafter. An SAR granted under the Plan may provide that it will be exercisable only in the event of a Change in Control. 
 (b) Cessation of Eligibility to Vest. Unless otherwise provided by the SAR Agreement, if an Optionee ceases to be an Awardee Eligible
to Vest, other than as a result of circumstances described in Subsection (c) or (d) below, such Optionee’s SAR shall terminate immediately as to the unvested Shares and such unvested Shares shall revert to the Plan, and the SAR shall
be exercisable as to the vested Shares for three months after the date such individual ceases to be an Awardee Eligible to Vest or, if earlier, the expiration of the term of such SAR. If, for any reason, the Optionee does not exercise his or her
vested SARs within the appropriate exercise period set forth above, the SAR shall automatically terminate, and the Shares covered by such SAR shall revert to the Plan. 
 (c) Death, Disability or Retirement of Optionee. Unless otherwise provided by the SAR Agreement, if an Optionee ceases to be an Awardee Eligible to Vest as a result of the Optionee’s death,
Disability, or Separation from Service after age 55 with at least 15 years of full-time equivalent service with the Company or an affiliate (including service with the Company’s predecessor companies), then (i) the vested portion of such
Optionee’s SAR shall be determined by adding 12 months to the length of his or her actual Service, (ii) such Optionee’s SAR shall terminate immediately as to the unvested Shares and such unvested Shares shall revert to the Plan, and
(iii) such Optionee’s SAR shall be exercisable as to the vested Shares for one year after the date such individual ceases to be an Awardee Eligible to Vest or, if earlier, the expiration of the term of such SAR. Where an individual ceases
to be an Awardee Eligible to Vest as a result of death, the SAR may be exercised by the beneficiary designated by the Optionee, the executor or administrator of the Optionee’s estate or, if none, by the person(s) entitled to exercise the SAR
under the Optionee’s will or the laws of descent or distribution. If, for any reason, the SAR is not so exercised within the time specified herein, the SAR shall automatically terminate, and the Shares covered by such SAR shall revert to the
Plan. 
  

 - 7 - 

 (d) Voluntary Severance Incentive Program. If an Optionee ceases to be an Awardee
Eligible to Vest as a result of participation in a voluntary severance incentive program or workforce management plan approved by the Board or a Committee, unvested SARs shall vest and SARs shall remain exercisable, to the extent permitted under
applicable laws and provided by the Board or a Committee in such voluntary severance incentive program or workforce management plan. The total number of SARs that may be accelerated pursuant to this Section 6.4(d) shall be subject to the
limitations of Section 2.5. Absent a specific provision for acceleration or extended exercise period, the provisions of Subsection (b) above shall apply. 
 6.5 Effect of Change in Control. The Committee may determine, at the time of granting a SAR or thereafter, that such SAR shall become exercisable as to all or part of the Shares subject to such SAR
if a Change in Control occurs with respect to the Company or if the Optionee’s Service is terminated without Cause after a Change in Control. In addition, acceleration of exercisability may be required under Section 10.3. 
 6.6 Exercise of SARs. Upon exercise of a SAR, the Optionee (or any person having the right to exercise the SAR after his or her
death) shall receive from the Company consideration in the form of (a) Shares, (b) cash or (c) a combination of Shares and cash, as the Committee shall determine. Each SAR Agreement shall specify the amount and/or Fair Market Value of
the consideration that the Optionee will receive upon exercising the SAR; provided that the aggregate consideration shall not exceed the amount by which the Fair Market Value (on the date of exercise) of the Shares subject to the SAR exceeds the
Exercise Price of the SAR. If, on the date when a SAR expires, the Exercise Price of the SAR is less than the Fair Market Value of the Shares subject to the SAR on such date but any portion of the SAR has not been exercised, then the SAR shall
automatically be deemed to be exercised as of such date with respect to such portion. An SAR Agreement may also provide for an automatic exercise of the SAR on an earlier date. 
 ARTICLE 7. RESTRICTED SHARES. 
 7.1 Restricted Share
Agreement. Each grant of Restricted Shares under the Plan shall be evidenced by a Restricted Share Agreement between the recipient and the Company. Such Restricted Shares shall be subject to all applicable terms of the Plan and may be subject to
any other terms that are not inconsistent with the Plan. The provisions of the various Restricted Share Agreements entered into under the Plan need not be identical. 
 7.2 Number of Shares. Each Restricted Share Agreement shall specify the number of Shares to which the Agreement pertains. 
 7.3 Payment for Awards. Restricted Shares may be sold or awarded under the Plan for such consideration as the Committee may
determine, including (without limitation) cash, cash equivalents, property, past services and future services. Within the limitations of the Plan, the Committee may accept the cancellation of outstanding options in return for the grant of Restricted
Shares. 
  

 - 8 - 

 7.4 Restrictions & Conditions. The Committee may, at the time of granting
Restricted Shares, impose such conditions and restrictions on the Restricted Shares as it deems appropriate; provided, however, that: (a) Section 2.4 shall apply; (b) any acceleration of vesting, other than in the case of acceleration
of vesting in connection with death, Disability, retirement or Change in Control shall be subject to the limitations of Section 2.5, and (c) such conditions and restrictions may not result in the Company reacquiring from a Participant
Restricted Shares that have been issued. 
 7.5 Effect of Change in Control. The Committee may determine, at the time of
granting Restricted Shares or thereafter, that all or some of any restrictions imposed on such Restricted Shares shall be removed if a Change in Control occurs with respect to the Company or if the Participant’s Service is terminated without
Cause after a Change in Control. 
 7.6 Voting and Dividend Rights. The holders of Restricted Shares awarded under the
Plan shall have the same voting, dividend and other rights as the Company’s other shareholders. A Restricted Share Agreement, however, may require that the holders of Restricted Shares invest any cash dividends received in additional Restricted
Shares. Such additional Restricted Shares shall be subject to the same conditions and restrictions as the Award with respect to which the dividends were paid. 
 ARTICLE 8. SHARE UNITS. 
 8.1 Share Unit Agreement. Each grant
of Share Units under the Plan shall be evidenced by a Share Unit Agreement between the recipient and the Company. Such Share Units shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent
with the Plan. The provisions of the various Share Unit Agreements entered into under the Plan need not be identical. 
 8.2
Number of Shares. Each Share Unit Agreement shall specify the number of Shares to which the Share Unit pertains and shall provide for the adjustment of such number in accordance with Article 10. Such number shall be subject to the
limitation of Section 8.4(a), if applicable. 
 8.3 Payment for Awards. To the extent that an Award is granted
in the form of Share Units, no cash consideration shall be required of the Award recipients. 
 8.4 Vesting Conditions.

 (a) General. Each Award of Share Units may or may not be subject to vesting, subject to Section 2.4. Vesting shall
occur, in full or in installments, upon satisfaction of the conditions specified in the Share Unit Award. The Committee may include among such conditions continued performance of Service and/or the requirement that the performance of the Company (or
a Subsidiary, Affiliate or business unit of the Company) for a specified period of not less than one fiscal year equal or exceed performance targets determined by the Committee. Such targets shall be based on one or more of the criteria set forth in
Appendix A, and shall be determined not later than the 90 days following commencement of the specified performance period. As to Awards with respect to which the Company desires to secure an exemption from section 162(m) of the Code, no
Participant shall receive more than 400,000 Share Units subject to performance-based vesting conditions in a single fiscal year, except that a new Employee may receive up to 800,000 Share Units subject to performance-based vesting conditions in the
fiscal year of the Company in which his or her Service as an Employee first commences. The limitations set forth in the preceding sentence shall be subject to adjustment in accordance with Article 10. 
  

 - 9 - 

 (b) Cessation of Eligibility to Vest. Unless otherwise provided by the Share Unit
Award, if a Participant ceases to be an Awardee Eligible to Vest, other than as a result of circumstances described in Subsection (c) or (d) below, then all unvested Share Units subject to a Share Unit Agreement shall immediately be
forfeited and shall revert to the Plan. 
 (c) Death, Disability or Retirement of Participant. Unless otherwise provided
by the Share Unit Award, if a Participant ceases to be an Awardee Eligible to Vest as a result of the Participant’s death, Disability, or Separation from Service after age 55 with at least 15 years of full-time equivalent service with the
Company or an affiliate (including service with the Company’s predecessor companies), the provisions of Subsection (b) above will apply except that the vested portion of such Participant’s Share Unit Award shall be determined by
adding 12 months to the length of his or her actual Service. 
 (d) Voluntary Severance Incentive Program. If a
Participant ceases to be an Awardee Eligible to Vest as a result of participation in a voluntary severance incentive program or workforce management plan approved by the Board or a Committee, unvested Share Units shall vest to the extent permitted
under applicable laws and provided by the Board or a Committee in such voluntary severance incentive program or workforce management plan. The total number of Share Units that may be accelerated pursuant to this Section 8.4(d) shall be subject
to the limitations of Section 2.5. Absent a specific provision for acceleration, the provisions of Subsection (b) above shall apply. 
 8.5 Effect of Change in Control. The Committee may determine, at the time of granting Share Units or thereafter, that all or part of such Share Units shall become vested if a Change in Control
occurs with respect to the Company or if the Participant’s Service is terminated without Cause after a Change in Control. In addition, acceleration of vesting may be required under Section 10.3. 
 8.6 Voting and Dividend Rights. The holders of Share Units shall have no voting rights. Prior to settlement or forfeiture, any Share
Unit awarded under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents. Such right entitles the holder to be credited with an amount equal to all cash dividends paid on one Share while the Share Unit is
outstanding. Dividend equivalents may be converted into additional Share Units. Settlement of dividend equivalents may be made in the form of cash, in the form of Shares, or in a combination of both. Prior to distribution, any dividend equivalents
that are not paid shall be subject to the same conditions and restrictions as the Share Units to which they attach. 
 8.7
Form and Time of Settlement of Share Units. Settlement of vested Share Units may be made in the form of (a) cash, (b) Shares or (c) any combination of both, as determined by the Committee. The actual number of Share Units eligible
for settlement may be larger or smaller than the number included in the original Award, based on predetermined performance factors. Methods of converting Share Units into cash may include (without limitation) a method based on the average Fair
Market Value of Shares over a series of trading days. Vested Share 
  

 - 10 - 

 
Units may be settled in a lump sum or in installments. The distribution may occur or commence when all vesting conditions applicable to the Share Units have been satisfied or have lapsed, or it
may be deferred to any later date. The amount of a deferred distribution may be increased by an interest factor or by dividend equivalents. Until an Award of Share Units is settled, the number of such Share Units shall be subject to adjustment
pursuant to Article 10. 
 8.8 Creditors’ Rights. A holder of Share Units shall have no rights other than those
of a general creditor of the Company. Share Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Share Unit Agreement. 
 ARTICLE 9. AUTOMATIC GRANTS TO OUTSIDE DIRECTORS. 
 9.1 Initial Grants. In connection with joining the Board, each Outside Director shall receive: 
 (a) A one-time grant of an NSO covering Shares with an Accounting Value of $120,000. Such NSO shall be granted on the date when such Outside Director first joins the Board, and shall vest and become
exercisable on the first anniversary of the Date of Grant; and 
 (b) A one-time grant of Share Units with an Accounting Value
of $120,000. Such Share Units shall be granted on the date when such Outside Director first joins the Board and shall vest on the first anniversary of the Date of Grant. Settlement of vested Share Units shall be made in a lump sum on the third
anniversary of the Date of Grant unless deferred to a later date. Such lump sum shall consist of a number of Shares equal to the number of vested Share Units. 
 An Outside Director who was previously an Employee shall not receive grants under this Section 9.1. 
 9.2 Annual Grants. Upon the conclusion of each regular annual meeting of the Company’s shareholders, each Outside Director who will continue serving as a member of the Board thereafter shall
receive: 
 (a) A grant of an NSO covering Shares with an Accounting Value of $60,000. Such NSO shall vest and become
exercisable quarterly over a period of four quarters from the Date of Grant; and 
 (b) A grant of Share Units with an
Accounting Value of $60,000. Such Share Units shall vest in four equal quarterly installments over a period of four quarters from the Date of Grant. Settlement of vested Share Units shall be made in a lump sum on the third anniversary of the Date of
Grant, unless deferred to a later date. Such lump sum shall consist of a number of Shares equal to the number of vested Share Units. 
 Notwithstanding the foregoing, no grants shall be made pursuant to this Section 9.2 in the calendar year in which the same Outside Director received grants described in Section 9.1. An Outside Director who previously was an
Employee shall be eligible to receive grants under this Section 9.2. 
  

 - 11 - 

 9.3 Cessation of Eligibility to Vest. Unless otherwise provided by the Award
Agreement, if an Outside Director’s Service terminates prior to the vesting date specified in such agreement other than as a result of circumstances described in Section 9.4 below, then such Director’s unvested Award shall immediately
be forfeited and such unvested Shares shall revert to the Plan. 
 9.4 Accelerated Exercisability. All Awards granted to
an Outside Director under this Article 9 shall also become exercisable in full, and Restricted Shares and Share Units shall be distributed, in the event that: 
 (a) Such Outside Director’s Service terminates because of death, Disability, or retirement at or after age 65; 
 (b) The Company is subject to a Change in Control before such Outside Director’s Service terminates; or 
 (c) As otherwise required by Section 10.3. 
 9.5 Exercise Price. The
Exercise Price under all NSOs granted to an Outside Director under this Article 9 shall be equal to 100% of the Fair Market Value of a Share on the Date of Grant, payable in one of the forms described in Section 5.7(a), (b) or (c).

 9.6 Term. The Option Agreement shall specify the term of the option, which shall not exceed 5 years from the Date of
Grant. Each NSO granted to an Outside Director under this Article 9 shall terminate on the earlier of (a) the expiration of the term of such option or (b) the date 36 months after the termination of such Outside Director’s
Service for any reason. 
 9.7 Affiliates of Outside Directors. The Committee may provide that the NSOs that otherwise
would be granted to an Outside Director under this Article 9 shall instead be granted to an affiliate of such Outside Director. Such affiliate shall then be deemed to be an Outside Director for purposes of the Plan, provided that the
Service-related vesting and termination provisions pertaining to the NSOs shall be applied with regard to the Service of the Outside Director. 
 ARTICLE 10. PROTECTION AGAINST DILUTION. 
 10.1 Adjustments. In the event of a subdivision of the
outstanding Shares, a declaration of a dividend payable in Shares or a combination or consolidation of the outstanding Shares (by reclassification or otherwise) into a lesser number of Shares, corresponding adjustments shall automatically be made in
each of the following: 
 (a) The number of Options, SARs, Restricted Shares and Share Units available for future Awards under
Article 3; 
 (b) The limitations set forth in Sections 2.5, 5.2, 6.2, 7.2 and 8.4(a); 
 (c) The number of Shares covered by each outstanding Option and SAR; 
  

 - 12 - 

 (d) The Exercise Price under each outstanding Option and SAR; or 
 (e) The number of Share Units included in any prior Award that has not yet been settled. 
 In the event of a declaration of a dividend payable in a form other than Shares in an amount that has a material effect on the price of Shares, a
recapitalization, a spin-off or a similar occurrence, the Committee shall make such adjustments as it, in its sole discretion, deems appropriate in one or more of the foregoing. Except as provided in this Article 10, a Participant shall have no
rights by reason of any issuance by the Company of shares of any class or securities convertible into shares of any class, any subdivision or consolidation of shares of any class, the payment of any share dividend or any other increase or decrease
in the number of shares of any class. 
 10.2 Dissolution or Liquidation. To the extent not previously exercised or
settled, Options, SARs and Share Units shall terminate immediately prior to the dissolution or liquidation of the Company. 
 10.3 Reorganizations. In the event that the Company is a party to a merger, consolidation or amalgamation, all outstanding Awards shall be subject to the agreement of merger, consolidation or amalgamation. Such agreement shall
provide for one or more of the following: 
 (a) The continuation of such outstanding Awards by the Company (if the Company is
the surviving corporation). 
 (b) The assumption of such outstanding Awards by the surviving corporation or its parent,
provided that the assumption of Options or SARs shall comply with sections 409A and 424(a) of the Code (whether or not the Options are ISOs). 
 (c) The substitution by the surviving corporation or its parent of new awards for such outstanding Awards, provided that the substitution of Options or SARs shall comply with sections 409A
and 424(a) of the Code (whether or not the Options are ISOs). 
 (d) Full exercisability of outstanding Options and SARs
and full vesting of the Shares subject to such Options and SARs, followed by the cancellation of such Options and SARs. The full exercisability of such Options and SARs and full vesting of such Shares may be contingent on the closing of such merger,
consolidation or amalgamation. The Optionees shall be able to exercise such Options and SARs during a period of not less than five full business days preceding the closing date of such merger, consolidation or amalgamation, unless (i) a shorter
period is required to permit a timely closing of such merger, consolidation or amalgamation and (ii) such shorter period still offers the Optionees a reasonable opportunity to exercise such Options and SARs. Any exercise of such Options and
SARs during such period may be contingent on the closing of such merger, consolidation or amalgamation. 
 (e) The cancellation
of outstanding Options and SARs and a payment to the Optionees equal to the excess of (i) the Fair Market Value of the Shares subject to such Options and SARs (whether or not such Options and SARs are then exercisable or such Shares are then
vested) as of the closing date of such merger, consolidation or amalgamation over (ii) their

  

 - 13 - 

 
Exercise Price. Such payment shall be made in the form of cash, cash equivalents, or securities of the surviving corporation or its parent with a Fair Market Value equal to the required amount.
Such payment may be made in installments and may be deferred until the date or dates when such Options and SARs would have become exercisable or such Shares would have vested. Such payment may be subject to vesting based on the Optionee’s
continuing Service, provided that the vesting schedule shall not be less favorable to the Optionee than the schedule under which such Options and SARs would have become exercisable or such Shares would have vested. If the Exercise Price of the
Shares subject to such Options and SARs exceeds the Fair Market Value of such Shares, then such Options and SARs may be cancelled without making a payment to the Optionees. For purposes of this Subsection (e), the Fair Market Value of any
security shall be determined without regard to any vesting conditions that may apply to such security. 
 (f) The cancellation
of outstanding Share Units and a payment to the Participants equal to the Fair Market Value of the Shares subject to such Share Units (whether or not such Share Units are then vested) as of the closing date of such merger, consolidation or
amalgamation. Such payment shall be made in the form of cash, cash equivalents, or securities of the surviving corporation or its parent with a Fair Market Value equal to the required amount. Such payment may be made in installments and may be
deferred until the date or dates when such Share Units would have vested. Such payment may be subject to vesting based on the Participant’s continuing Service, provided that the vesting schedule shall not be less favorable to the Participant
than the schedule under which such Share Units would have vested. For purposes of this Subsection (f), the Fair Market Value of any security shall be determined without regard to any vesting conditions that may apply to such security.

 ARTICLE 11. PAYMENT OF DIRECTOR’S FEES IN SECURITIES. 
 11.1 Effective Date. No provision of this Article 11 shall be effective unless and until the Board has determined to implement
such provision. 
 11.2 Elections to Receive NSOs, Restricted Shares or Share Units. An Outside Director may elect to
receive his or her annual retainer payments and/or meeting fees from the Company in the form of cash, NSOs, Restricted Shares or Share Units, or a combination thereof, as determined by the Board. Such NSOs, Restricted Shares and Share Units shall be
issued under the Plan. An election under this Article 11 shall be filed with the Company on the prescribed form. 
 11.3
Number and Terms of NSOs, Restricted Shares or Share Units. The number of NSOs, Restricted Shares or Share Units to be granted to Outside Directors in lieu of annual retainers and meeting fees that would otherwise be paid in cash shall be
calculated in a manner determined by the Board. The Board shall also determine the terms of such NSOs, Restricted Shares or Share Units. 
  

 - 14 - 

 ARTICLE 12. LIMITATION ON RIGHTS. 
 12.1 Retention Rights. Neither the Plan nor any Award granted under the Plan shall be deemed to give any individual a right to remain
an Employee, Outside Director or Consultant. The Company and its Parents, Subsidiaries and Affiliates reserve the right to terminate the Service of any Employee, Outside Director or Consultant at any time, with or without cause, subject to
applicable laws, the Company’s Articles of Association and a written employment agreement (if any). 
 12.2
Shareholders’ Rights. A Participant shall have no dividend rights, voting rights or other rights as a shareholder with respect to any Shares covered by his or her Award prior to the time when such Shares are issued. No adjustment shall be
made for cash dividends or other rights for which the record date is prior to such time, except as expressly provided in the Plan. 
 12.3 Regulatory Requirements. Any other provision of the Plan notwithstanding, the obligation of the Company to issue Shares under the Plan shall be subject to all applicable laws, rules and regulations and such approval by any
regulatory body as may be required. The Company reserves the right to restrict, in whole or in part, the delivery of Shares pursuant to any Award prior to the satisfaction of all legal requirements relating to the issuance of such Shares, to their
registration, qualification or listing or to an exemption from registration, qualification or listing. 
 ARTICLE 13. WITHHOLDING TAXES. 

 13.1 General. To the extent required by applicable federal, state, local or foreign law, a Participant or his or her
successor shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise in connection with the Plan. The Company shall not be required to issue any Shares or make any cash payment under the
Plan until such obligations are satisfied. 
 13.2 Share Withholding. To the extent that applicable law subjects a
Participant to tax withholding obligations, the Committee may permit such Participant to satisfy all or part of such obligations by having the Company withhold all or a portion of any Shares that otherwise would be issued to him or her Such Shares
shall be valued at their Fair Market Value on the date when they are withheld. 
 ARTICLE 14. LIMITATION ON PAYMENTS. 
 14.1 Scope of Limitation. This Article 14 shall apply to an Award only if: 
 (a) The independent auditors selected for this purpose by the Committee (the “Auditors”) determine that the after-tax value of
such Award to the Participant, taking into account the effect of all federal, state and local income taxes, employment taxes and excise taxes applicable to the Participant (including the excise tax under section 4999 of the Code), will be
greater after the application of this Article 14 than it was before the application of this Article 14; or 
 (b) The
Committee, at the time of making an Award under the Plan or at any time thereafter, specifies in writing that such Award shall be subject to this Article 14 (regardless of the after-tax value of such Award to the Participant). 
  

 - 15 - 

 If this Article 14 applies to an Award, it shall supersede any contrary provision of the Plan or of any
Award granted under the Plan. 
 14.2 Basic Rule. In the event that the Auditors determine that any payment or transfer
by the Company under the Plan to or for the benefit of a Participant (a “Payment”) would be nondeductible by the Company for federal income tax purposes because of the provisions concerning “excess parachute payments” in
section 280G of the Code, then the aggregate present value of all Payments shall be reduced (but not below zero) to the Reduced Amount. For purposes of this Article 14, the “Reduced Amount” shall be the amount, expressed as a
present value, which maximizes the aggregate present value of the Payments without causing any Payment to be nondeductible by the Company because of section 280G of the Code. 
 14.3 Reduction of Payments. If the Auditors determine that any Payment would be nondeductible by the Company because of
section 280G of the Code, then the Company shall promptly give the Participant notice to that effect and a copy of the detailed calculation thereof and of the Reduced Amount, and the Participant may then elect, in his or her sole discretion,
which and how much of the Payments shall be eliminated or reduced (as long as after such election the aggregate present value of the Payments equals the Reduced Amount) and shall advise the Company in writing of his or her election within
10 days of receipt of notice. If no such election is made by the Participant within such 10-day period, then the Company may elect which and how much of the Payments shall be eliminated or reduced (as long as after such election the aggregate
present value of the Payments equals the Reduced Amount) and shall notify the Participant promptly of such election. For purposes of this Article 14, present value shall be determined in accordance with section 280G(d)(4) of the Code. All
determinations made by the Auditors under this Article 14 shall be binding upon the Company and the Participant and shall be made within 60 days of the date when a Payment becomes payable or transferable. As promptly as practicable
following such determination and the elections hereunder, the Company shall pay or transfer to or for the benefit of the Participant such amounts as are then due to him or her under the Plan and shall promptly pay or transfer to or for the benefit
of the Participant in the future such amounts as become due to him or her under the Plan. 
 14.4 Overpayments and
Underpayments. As a result of uncertainty in the application of section 280G of the Code at the time of an initial determination by the Auditors hereunder, it is possible that Payments will have been made by the Company which should not
have been made (an “Overpayment”) or that additional Payments which will not have been made by the Company could have been made (an “Underpayment”), consistent in each case with the calculation of the Reduced Amount hereunder. In
the event that the Auditors, based upon the assertion of a deficiency by the Internal Revenue Service against the Company or the Participant that the Auditors believe has a high probability of success, determine that an Overpayment has been made,
such Overpayment shall be treated for all purposes as a loan to the Participant that he or she shall repay to the Company, together with interest at the applicable federal rate provided in section 7872(f)(2) of the Code; provided, however, that
no amount shall be payable by the Participant to the Company if and to the extent that such payment would not reduce the amount that is subject to taxation under section 4999 of the Code. In the event that the Auditors determine that an
Underpayment has occurred, such Underpayment shall promptly be paid or transferred by the Company to or for the benefit of the Participant, together with interest at the applicable federal rate provided in section 7872(f)(2) of the Code.

  

 - 16 - 

 14.5 Related Corporations. For purposes of this Article 14, the term
“Company” shall include affiliated corporations to the extent determined by the Auditors in accordance with section 280G(d)(5) of the Code. 
 ARTICLE 15. FUTURE OF THE PLAN. 
 15.1 Term of the Plan. The
Plan shall remain in effect until the earlier of (a) the date when the Plan is terminated under Section 15.2 or (b) June 6, 2016. 
 15.2 Amendment or Termination. The Board may, at any time and for any reason, amend or terminate the Plan. No Awards shall be granted under the Plan after the termination thereof. The termination
of the Plan, or any amendment thereof, shall not affect any Award previously granted under the Plan. 
 15.3 Shareholder
Approval. An amendment of the Plan shall be subject to the approval of the Company’s shareholders only to the extent required by applicable laws, regulations or rules. The Company may, but is not required to, seek the approval (or
re-approval) of the Company’s shareholders of the performance criteria set forth in Appendix A to the extent, and at such frequencies, as may be necessary to provide the full tax deductibility of performance-based Awards in accordance with
Section 162(m) of the Code. 
 ARTICLE 16. DEFINITIONS. 
 16.1 “Awardee Eligible to Vest” means a Participant who is in active service with the Company or a
Subsidiary or Affiliate (or who is on an approved leave of absence or taking vacation or otherwise approved flexible time off (“FTO”) in accordance with the Company’s FTO policy) on the vesting date fixed in the Award Agreement,
subject to the exceptions provided in Articles 5, 7, 8 and 9. With the exception of an individual who is on an approved leave of absence or taking FTO, in no event shall an individual be considered an Awardee Eligible to Vest if and at the
time the individual ceases or has ceased to perform job duties for which he or she is compensated directly by the Company or a Subsidiary or Affiliate. The foregoing shall be true in the event that the individual, prior to ceasing to perform job
duties for which he or she is compensated directly by the Company or a Subsidiary or Affiliate, received or provided notice of termination (irrespective of any notice period or similar period prescribed under the laws of a jurisdiction outside the
United States) whether such notice of termination or transfer is lawful or unlawful under applicable employment law or is in breach of an employment contract. Continued affiliation or relationship with the Company or a Subsidiary or Affiliate
pursuant to a statutory or contractual notice period shall not constitute continuation of an individual’s status as an Awardee Eligible to Vest. In accordance with the definition above, status as an Awardee Eligible to Vest will always cease
upon termination of employment with the Company or a Subsidiary or Affiliate except as provided in Articles 5, 7, 8 and 9. 
 16.2 “Accounting Value” means, with respect to an Award, a value calculated using the same methodology as was applied by the Company for purposes of determining the accounting charge associated with
similar Awards for the fiscal period immediately preceding the date on which the subject Award is granted. 
  

 - 17 - 

 16.3 “Affiliate” means any entity other than a
Subsidiary, if the Company and/or one or more Subsidiaries own not less than 50% of such entity. 
 16.4
“Award” means any award of an Option, a SAR, a Restricted Share or a Share Unit under the Plan. 
 16.5 “Board” means the Company’s Board of Directors, as constituted from time to time. 
 16.6 “Cause” means: 
 (a) An unauthorized
use or disclosure by the Participant of the Company’s confidential information or trade secrets, which use or disclosure causes material harm to the Company; 
 (b) A material breach by the Participant of any agreement between the Participant and the Company; 
 (c) A material failure by the Participant to comply with the Company’s written policies or rules; 
 (d) The Participant’s conviction of, or plea of “guilty” or “no contest” to, a felony under the laws of the United States or any State thereof or the equivalent under the
applicable laws outside of the United States; 
 (e) The Participant’s gross negligence or willful misconduct; 

(f) A continuing failure by the Participant to perform assigned duties after receiving written notification of such failure; or

 (g) A failure by the Participant to cooperate in good faith with a governmental or internal investigation of the Company or
its directors, officers or employees, if the Company has requested the Participant’s cooperation. 
 16.7
“Change in Control” means: 
 (a) The consummation of a merger, consolidation or amalgamation of
the Company with or into another entity or any other corporate reorganization, if persons who were not shareholders of the Company immediately prior to such merger, consolidation, amalgamation or other reorganization own immediately after such
merger, consolidation, amalgamation or other reorganization 50% or more of the voting power of the outstanding securities of each of (i) the continuing or surviving entity and (ii) any direct or indirect parent corporation of such
continuing or surviving entity; 
 (b) The sale, transfer or other disposition of all or substantially all of the Company’s
assets; 
  

 - 18 - 

 (c) A change in the composition of the Board, as a result of which fewer than 50% of the
incumbent directors are directors who either: 
 (i) Had been directors of the Company on the date 24 months prior to the date
of such change in the composition of the Board (the “Original Directors”); or 
 (ii) Were appointed to the Board, or
nominated for election to the Board, with the affirmative votes of at least a majority of the aggregate of (A) the Original Directors who were in office at the time of their appointment or nomination and (B) the directors whose appointment
or nomination was previously approved in a manner consistent with this Paragraph (ii); or 
 (d) Any transaction as a
result of which any person is the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing at least 30% of the total voting power represented by the
Company’s then outstanding voting securities. For purposes of this Subsection (d), the term “person” shall have the same meaning as when used in sections 13(d) and 14(d) of the Exchange Act but shall exclude (i) a
trustee or other fiduciary holding securities under an employee benefit plan of the Company or of a Parent or Subsidiary and (ii) a corporation owned directly or indirectly by the shareholders of the Company in substantially the same
proportions as their ownership of Shares. 
 A transaction shall not constitute a Change in Control if its sole purpose is to change the
jurisdiction of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction. 
 16.8 “Code” means the U.S. Internal Revenue Code of 1986, as amended. 
 16.9 “Committee” means a committee of the Board, as described in Article 2. 
 16.10 “Company” means Verigy Ltd., a Singapore corporation. 
 16.11 “Consultant” means a consultant or adviser who provides bona fide services to the Company, a
Parent, a Subsidiary or an Affiliate as an independent contractor. 
 16.12 “Date of
Grant” means the latest of: (a) the date on which the Committee determines that the Option or SAR shall be granted; (b) the date on which the Optionee’s Service commences; or (c) the date on which all material
terms of the Option or SAR, including (without limitation) the Exercise Price, are ascertainable; provided, however, that with respect to automatic awards to Outside Directors, “Date of Grant” means the date of such automatic award as
provided in the applicable provision of this Plan. 
 16.13 “Disability” means that the
Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12
months. 
  

 - 19 - 

 16.14 “Employee” means a full time or part time
employee of the Company or any Subsidiary or Affiliate, including officers and Directors, who is treated as an employee in the personnel records of the Company or a Subsidiary or Affiliate for the relevant period, but shall exclude individuals who
are classified by the Company or a Subsidiary or Affiliate as (a) leased from or otherwise employed by a third party, (b) independent contractors or (c) intermittent or temporary, even if any such classification is changed
retroactively as a result of an audit, litigation or otherwise. A Participant shall not cease to be an Employee in the case of (i) any vacation or sick time or otherwise approved FTO in accordance with the Company’s (or a Subsidiary’s
or Affiliate’s) FTO policy or (ii) transfers between locations of the Company or between the Company and/or any Subsidiary or Affiliate. Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient
to constitute “employment” by the Company. 
 16.15 “Exchange Act” means the
U.S. Securities Exchange Act of 1934, as amended. 
 16.16 “Exercise Price,” in the case
of an Option, means the amount for which one Share may be purchased upon exercise of such Option, as specified in the applicable Option Agreement. “Exercise Price,” in the case of a SAR, means an amount, as specified in the
applicable SAR Agreement, which is subtracted from the Fair Market Value of one Share in determining the amount payable upon exercise of such SAR. 
 16.17 “Fair Market Value” means the market price of Shares, determined by the Committee as follows: 
 (a) If the Shares are traded on Nasdaq or on a stock exchange, then the Fair Market Value shall be equal to the last sale price of the
Shares on such market or exchange as of the date in question or, if the market or exchange was closed on the date in question, then the Fair Market Value will be equal to the last sale price on the last trading day immediately preceding the day in
question. If the Shares are traded on more than one market or exchange, then the Fair Market Value shall be determined by reference to the primary market or exchange where the Shares trade. 
 (b) If foregoing provisions are not applicable, then the Committee shall determine the Fair Market Value in good faith on such basis as it
deems appropriate. Such determination shall be conclusive and binding on all persons. 
 16.18
“ISO” means an incentive stock option described in section 422(b) of the Code. 
 16.19 “NSO” means a share option not described in sections 422 or 423 of the Code. 
 16.20 “Option” means an ISO or NSO granted under the Plan and entitling the holder to purchase Shares. 
 16.21 “Option Agreement” means the agreement between the Company and an Optionee that contains the
terms, conditions and restrictions pertaining to his or her Option. 
 16.22 “Optionee”
means an individual or estate that holds an Option or SAR. 
  

 - 20 - 

 16.23 “Outside Director” means a member
of the Board who is not an Employee. 
 16.24 “Parent” means any corporation
(other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns shares possessing 50% or more of the total combined voting power of all classes of shares in one of the
other corporations in such chain. A corporation that attains the status of a Parent on a date after the adoption of the Plan shall be considered a Parent commencing as of such date. 
 16.25 “Participant” means an individual or estate that holds an Award. 
 16.26 “Plan” means this Verigy Ltd. 2006 Equity Incentive Plan, as amended from time to time.

 16.27 “Replacement Awards” means Awards granted or Shares issued by the Company in the
conversion, assumption, substitution, or exchange of awards previously granted under the Agilent Technologies, Inc. 1999 Stock Plan or the Agilent Technologies, Inc. 1999 Non-employee Director Stock Plan. 
 16.28 “Restricted Share” means a Share awarded under the Plan. 
 16.29 “Restricted Share Agreement” means the agreement between the Company and the recipient of a
Restricted Share that contains the terms, conditions and restrictions pertaining to such Restricted Share. 
 16.30
“SAR” means a share appreciation right granted under the Plan. 
 16.31
“SAR Agreement” means the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to his or her SAR. 
 16.32 “Separation from Service” shall have the meaning set forth in the regulations under
Section 409A of the Code. 
 16.33 “Service” means service as an Employee, Outside
Director or Consultant. 
 16.34 “Shares” means the Ordinary Shares of the Company.

 16.35 “Share Unit” means a bookkeeping entry representing the equivalent of one Share,
as awarded under the Plan. 
 16.36 “Share Unit Agreement” means the agreement between the
Company and the recipient of a Share Unit that contains the terms, conditions and restrictions pertaining to such Share Unit. 
 16.37 “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the
unbroken chain owns shares possessing more than 50% of the total combined voting power of all classes of shares in one of the other corporations in such chain. A corporation that attains the status of a Subsidiary on a date after the adoption of the
Plan shall be considered a Subsidiary commencing as of such date. 
  

 - 21 - 

 16.38 “Substitute Awards” means:

 (a) Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, awards previously
granted by: (i) a company acquired by the Company; (ii) a company acquired by any Subsidiary; or (iii) a company with which the Company or any Subsidiary combines; and 
 (b) Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, awards previously granted by
Agilent Technologies, Inc. 
  

 - 22 - 

 Adoption and Amendment History: 
  

			
		
	 Action
	  	Date
	Adopted by the Board of Directors:	  	June 7, 2006
		
	Approved by the sole shareholder:	  	June 7, 2006
		
	Amended by the Board of Directors to revise definition of “Fair Market Value” (Section 16.16)	  	August 29, 2006
		
	Amended by the Board of Directors to add definition of Date of Grant (Section 16.12)	  	December 13, 2006
		
	Amended by the Board of Directors to modify Outside Director Awards (Article 9) and miscellaneous technical amendments	  	April 14, 2008
		
	Outside Director Award amendments approved by Shareholders	  	April 15, 2008
		
	Amended by the Board of Directors to increase the number of reserved shares, eliminate the secondary committee and require minimum vesting	  	December 2, 2009
		
	Amended by the Board of Directors to establish the Exceptions Share Reserve (Section 2.5) and related changes and to limit option buy backs (Section 5.6)	  	January 19, 2009
		
	Increase in share reserve approved by the shareholders	  	April 6, 2010

  

 - 23 - 

 APPENDIX A 
 PERFORMANCE CRITERIA FOR AWARDS 
 The Committee may apply any one or more of the following performance criteria, individually, alternatively or in any combination, either to
the Company as a whole or to a business unit, Subsidiary or Affiliate, measured annually, quarterly or cumulatively over a period of years, either on an absolute basis or relative to a pre-established target, with respect to previous years’
results or a designated comparison group, in each case as specified by the Committee: (i) cash flow (before or after dividends), (ii) earnings per share (including earnings before interest, taxes, depreciation and amortization),
(iii) share price, (iv) return on equity, (v) total shareholder return, (vi) return on capital (including return on total capital or return on invested capital), (vii) return on assets or net assets, (viii) market
capitalization, (ix) economic value added, (x) debt leverage (debt to capital), (xi) revenue or net revenue, (xii) income or net income, (xiii) operating income, (xiv) operating profit or net operating profit,
(xv) operating margin or profit margin, (xvi) return on operating revenue, (xvii) cash from operations, (xviii) operating ratio, (xix) operating revenue, (xx) customer satisfaction measures, (xxi) net order
dollars, (xxii) guaranteed efficiency measures; (xxiii) service agreement renewal rates; (xxiv) service revenues as a percentage of product revenues, either with respect to one or more particular transactions or with respect to
revenues as a whole; or (xxv) individual performance. To the extent consistent with section 162(m) of the Code, the Committee may appropriately adjust any evaluation of performance under a performance criterion to exclude any of the
following events that occurs during a performance period: (i) asset write-downs, (ii) litigation, claims, judgments or settlements, (iii) the effect of changes in tax law, accounting principles or other such laws or provisions
affecting reported results, (iv) accruals for reorganization and restructuring programs and (v) any extraordinary, unusual or non-recurring items. 
  

 - 24 -2006 Employee Shares Purchase Plan, as amended as of December 2, 2009.

 Exhibit 10.2 
 VERIGY LTD. 
 2006
EMPLOYEE SHARES PURCHASE PLAN 
 (AS
AMENDED DECEMBER 2, 2009) 

 TABLE OF CONTENTS 
  

					
	  	 	  	  	 Page

	 SECTION 1. PURPOSE OF THE PLAN
	  	1
		
	 SECTION 2. ADMINISTRATION OF THE PLAN
	  	1
		 	 (a)    Committee Composition
	  	1
		 	 (b)    Committee Responsibilities
	  	1
		
	 SECTION 3. STOCK OFFERED UNDER THE PLAN
	  	1
		 	 (a)    Authorized Shares
	  	1
		 	 (b)    Anti-Dilution Adjustments
	  	1
		 	 (c)    Reorganizations
	  	2
		
	 SECTION 4. ENROLLMENT AND PARTICIPATION
	  	2
		 	 (a)    Offering Periods
	  	2
		 	 (c)    Enrollment at IPO
	  	2
		 	 (c)    Enrollment After IPO
	  	2
		 	 (d)    Duration of Participation
	  	3
		
	 SECTION 5. EMPLOYEE CONTRIBUTIONS
	  	3
		 	 (a)    Commencement of Payroll Deductions
	  	3
		 	 (b)    Amount of Payroll Deductions
	  	3
		 	 (c)    Changing Withholding Rate
	  	3
		 	 (d)    Discontinuing Payroll Deductions
	  	3
		 	 (e)    Limit on Number of Elections
	  	4
		
	 SECTION 6. WITHDRAWAL FROM THE PLAN
	  	4
		 	 (a)    Withdrawal
	  	4
		 	 (b)    Re-Enrollment After Withdrawal
	  	4
		
	 SECTION 7. CHANGE IN EMPLOYMENT STATUS
	  	4
		 	 (a)    Termination of Employment
	  	4
		 	 (b)    Leave of Absence
	  	4
		 	 (c)    Death
	  	4
		
	 SECTION 8. PLAN ACCOUNTS AND PURCHASE OF SHARES
	  	4
		 	 (a)    Plan Accounts
	  	4
		 	 (b)    Purchase Price
	  	5
		 	 (c)    Number of Shares Purchased
	  	5
		 	 (d)    Available Shares Insufficient
	  	5
		 	 (e)    Issuance of Stock
	  	5
		 	 (f)     Tax Withholding
	  	5
		 	 (g)    Unused Cash Balances
	  	5
		 	 (h)    Stockholder Approval
	  	6

					
	 SECTION 9. LIMITATIONS ON STOCK OWNERSHIP
	  	6
		 	 (a)    Five Percent Limit
	  	6
		 	 (b)    Dollar Limit
	  	6
		
	 SECTION 10. RIGHTS NOT TRANSFERABLE
	  	7
		
	 SECTION 11. NO RIGHTS AS AN EMPLOYEE
	  	7
		
	 SECTION 12. NO RIGHTS AS A STOCKHOLDER
	  	7
		
	 SECTION 13. AMENDMENT OR DISCONTINUANCE
	  	7
		
	 SECTION 14. COMMITTEE RULES FOR NON-U.S. JURISDICTIONS
	  	8
		 	 (a)    Rules and Procedures
	  	8
		 	 (b)    Sub-Plans
	  	8
		
	 SECTION 15. COMPLIANCE with LAW.
	  	8
		 	 (a)    Securities Laws and Regulations
	  	8
		 	 (b)    Governmental Approvals
	  	8
		 	 (c)    Choice of Law
	  	8
		
	 SECTION 16. DEFINITIONS
	  	8
		 	 (a)    Board
	  	8
		 	 (b)    Code
	  	8
		 	 (c)    Committee
	  	8
		 	 (d)    Company
	  	8
		 	 (e)    Compensation
	  	9
		 	 (f)     Corporate Reorganization
	  	9
		 	 (g)    Eligible Employee
	  	9
		 	 (h)    Exchange Act
	  	9
		 	 (i)     Fair Market Value
	  	10
		 	 (j)     IPO
	  	10
		 	 (k)    Offering Period
	  	10
		 	 (l)     Participant
	  	10
		 	 (m)   Participating Company
	  	10
		 	 (n)    Plan
	  	10
		 	 (o)    Plan Account
	  	10
		 	 (p)    Purchase Price
	  	10
		 	 (q)    Stock
	  	10
		 	 (r)     Subsidiary
	  	10

  

 ii 

 VERIGY LTD. 
 2006 EMPLOYEE SHARES PURCHASE PLAN 
 SECTION 1. PURPOSE OF THE PLAN. 
 The Board adopted the Plan effective as of the date of the IPO. The purpose of the Plan is to provide Eligible Employees with an opportunity to increase their proprietary interest in the success of the Company by purchasing Shares from the
Company on favorable terms and to pay for such purchases through payroll deductions. The Plan is intended to qualify for favorable tax treatment under section 423 of the Code although the Company undertakes no obligation to maintain such
qualification. In addition, this Plan document authorizes the grant of options to Eligible Employees resident outside of the United States of America pursuant to terms, rules, procedures or sub-plans adopted by the Committee (or its designate)
designed to achieve tax, securities law or other Company objectives but which may not qualify under section 423 of the Code, provided that such terms, rules, procedures or sub-plans shall apply on a uniform basis to all Eligible Employees
employed by a Participating Company if the grants to the Eligible Employees employed by such Participating Company are intended to qualify under section 423 of the Code. 
 SECTION 2. ADMINISTRATION OF THE PLAN. 
 (a) Committee Composition.
The Committee shall administer the Plan. The Committee shall consist exclusively of one or more directors of the Company, who shall be appointed by the Board. 
 (b) Committee Responsibilities. The Committee shall have the authority and discretion to interpret the Plan and make all other policy decisions relating to the operation of the Plan. The Committee
may adopt such rules, guidelines and forms as it deems appropriate to implement the Plan. The Committee’s determinations under the Plan shall be final and binding on all persons. 
 SECTION 3. SHARES OFFERED UNDER THE PLAN. 
 (a) Authorized Shares.
The number of Shares available for purchase under the Plan shall be 3,200,000 (subject to adjustment pursuant to Subsection (b) below). 
 (b) Anti-Dilution Adjustments. The aggregate number of Shares offered under the Plan, the 2,500-share limitation described in Section 8(c) and the price of shares that any Participant has
elected to purchase shall be adjusted proportionately for any increase or decrease in the number of outstanding Shares resulting from a subdivision or consolidation of Shares or the payment of a share dividend, any other increase or decrease in the
outstanding Shares effected without receipt or payment of consideration by the Company, the distribution of the shares of a Subsidiary to the Company’s stockholders, or a similar event. The determination of the basis for, and the calculation
of, any such adjustment shall be made in the discretion of the Committee. 

 (c) Reorganizations. Any other provision of the Plan notwithstanding, immediately
prior to the effective time of a Corporate Reorganization, the Offering Period then in progress shall terminate and shares shall be purchased pursuant to Section 8, unless the Plan is continued or assumed by the surviving corporation or its
parent corporation. The Plan shall in no event be construed to restrict in any way the Company’s right to undertake a dissolution, liquidation, merger, consolidation or other reorganization. 
 SECTION 4. ENROLLMENT AND PARTICIPATION. 
 (a) Offering Periods. While the Plan is in effect and unless otherwise determined by the Committee, two Offering Periods shall commence in each calendar year. The Offering Periods shall consist of
the six-month periods commencing on each June 1 and December 1, except that: 
 (i) The first Offering
Period under the Plan shall commence on the date of the IPO and shall end on November 30, 2006; 
 (ii)
Prior to the commencement of any Offering Period, the Committee may in its discretion alter the length of such Offering Period, provided that an Offering Period shall in no event be longer than 27 months; and 
 (iii) The Committee may determine that the first Offering Period applicable to the Eligible Employees of a new Participating
Company shall commence on any date specified by the Committee, provided that an Offering Period shall in no event be longer than 27 months. 
 (b) Enrollment at IPO. Each individual who, on the day of the IPO, qualifies as an Eligible Employee shall automatically become a Participant on such day, and shall initially be deemed to have
elected a payroll deduction rate of zero. Each Participant who was automatically enrolled on the day of the IPO shall confirm their enrollment and participation level in the manner and within the time prescribed by the Company. 
 (c) Enrollment After IPO. In the case of any individual who qualifies as an Eligible Employee on the first day of any Offering Period
other than the first Offering Period, he or she may elect to become a Participant on such day by submitting the prescribed enrollment form to the Company in the manner prescribed by the Company not later than such day. The Company may prescribe
electronic enrollment procedures. 
  

 2 

 (d) Duration of Participation. Once enrolled in the Plan, a Participant shall
continue to participate in the Plan until he or she: 
 (i) Reaches the end of the Offering Period in which his
or her employee contributions were discontinued under Section 5(d) or 9(b); 
 (ii) Is deemed to withdraw
from the Plan under Subsection (b) above; 
 (iii) Withdraws from the Plan under Section 6(a); or

 (iv) Ceases to be an Eligible Employee. 
 A Participant whose employee contributions were discontinued automatically under Section 9(b) shall automatically resume participation at the beginning of the earliest Offering Period ending in the
next calendar year, if he or she then is an Eligible Employee. In all other cases, a former Participant may again become a Participant, if he or she then is an Eligible Employee, by following the procedure described in Subsection (c) above.

 SECTION 5. EMPLOYEE CONTRIBUTIONS. 
 (a) Commencement of Payroll Deductions. A Participant may purchase Shares under the Plan solely by means of payroll deductions. Payroll deductions shall commence as soon as reasonably practicable
after the Company has received the Participant’s enrollment instructions in the prescribed manner. 
 (b) Amount of
Payroll Deductions. An Eligible Employee shall designate in the enrollment instructions the portion of his or her Compensation that he or she elects to have withheld for the purchase of Shares. Such portion shall be a whole percentage of the
Eligible Employee’s Compensation, but not more than 10%. 
 (c) Changing Withholding Rate. If a Participant wishes
to change the rate of payroll withholding, he or she may do so by submitting new instructions with the Company in the prescribed manner at any time. The new withholding rate shall be effective as soon as reasonably practicable after the Company has
received such instructions. The new withholding rate shall be a whole percentage of the Eligible Employee’s Compensation, but not less than 1% nor more than 10%. 
 (d) Discontinuing Payroll Deductions. If a Participant wishes to discontinue employee contributions entirely, he or she may do so by submitting new enrollment instructions with the Company in the
prescribed manner at any time. Payroll withholding shall cease as soon as reasonably practicable after the Company has received such instructions. (In addition, employee contributions may be discontinued pursuant to Section 9(b).) A Participant
who has discontinued employee contributions may resume such contributions by submitting new enrollment instructions with the Company in the prescribed manner. Payroll withholding shall resume as soon as reasonably practicable after the Company has
received such instructions. 
  

 3 

 (e) Limit on Number of Elections. No Participant shall make more than three elections
under Subsection (c) or (d) above during any Offering Period. 
 SECTION 6. WITHDRAWAL FROM THE PLAN. 
 (a) Withdrawal. A Participant may elect to withdraw from the Plan by submitting his or her withdrawal instructions with the Company in
the prescribed manner at any time before the last day of an Offering Period. As soon as reasonably practicable thereafter, payroll deductions shall cease and the entire amount credited to the Participant’s Plan Account shall be refunded to him
or her in cash, without interest. No partial withdrawals shall be permitted. 
 (b) Re-Enrollment After Withdrawal. A
former Participant who has withdrawn from the Plan pursuant to Sections 6(a) shall not be a Participant until he or she re-enrolls in the Plan under Section 4(c). Re-enrollment may be effective only at the commencement of an Offering Period.

 SECTION 7. CHANGE IN EMPLOYMENT STATUS. 
 (a) Termination of Employment. Termination of status as an Eligible Employee for any reason, including death, shall be treated as an automatic withdrawal from the Plan under Section 6(a). (A
transfer from one Participating Company to another shall not be treated as a termination of employment.) Determination of Eligible Employee status shall be made by the Committee in its sole discretion. 
 (b) Leave of Absence. For purposes of the Plan, employment shall not be deemed to terminate when the Participant goes on a military
leave, a sick leave or another bona fide leave of absence, if the leave was approved by the Company in writing. Employment, however, shall be deemed to terminate 90 days after the Participant goes on a leave, unless a contract or statute
guarantees his or her right to return to work. Employment shall be deemed to terminate in any event when the approved leave ends, unless the Participant immediately returns to work. 
 (c) Death. In the event of the Participant’s death, the amount credited to his or her Plan Account shall be paid to a
beneficiary designated by him or her for this purpose in the prescribed manner or, if none, to the Participant’s estate. Such designation shall be valid only if it was submitted to the Company in the prescribed manner before the
Participant’s death and is otherwise valid under applicable law. 
 SECTION 8. PLAN ACCOUNTS AND PURCHASE OF SHARES. 
 (a) Plan Accounts. The Company shall maintain a Plan Account on its books in the name of each Participant. Whenever an amount is
deducted from a Participant’s Compensation under the Plan, such amount shall be credited to the Participant’s Plan Account. Amounts credited to Plan Accounts shall not be trust funds and may be commingled with the Company’s general
assets and applied to general corporate purposes unless otherwise determined by the Committee in order to comply with local law. No interest shall be credited to Plan Accounts. 
  

 4 

 (b) Purchase Price. The Purchase Price for each Share purchased at the close of an
Offering Period shall be the lower of: 
 (i) 85% of the Fair Market Value of one Share on the last trading day
before the commencement of such Offering Period or, in the case of the first Offering Period under the Plan, 85% of the IPO Price; or 
 (ii) 85% of the Fair Market Value of one Share on the last trading day in such Offering Period. 
 (c) Number of Shares Purchased. As of the last day of each Offering Period, each Participant shall be deemed to have elected to purchase the number of Shares calculated in accordance with this
Subsection (c), unless the Participant has previously elected to withdraw from the Plan in accordance with Section 6(a). The amount then in the Participant’s Plan Account shall be divided by the Purchase Price, and the number of
shares that results shall be purchased from the Company with the funds in the Participant’s Plan Account. The foregoing notwithstanding, no Participant shall purchase more than 2,500 Shares with respect to any Offering Period nor more than the
amounts of Shares set forth in Sections 3(a) and 9(b). 
 (d) Available Shares Insufficient. In the event that the
aggregate number of shares that all Participants elect to purchase during an Offering Period exceeds the maximum number of shares remaining available for issuance under Section 3, then the number of shares to which each Participant is entitled
shall be determined by multiplying the number of shares available for issuance by a fraction. The numerator of such fraction is the number of shares that such Participant has elected to purchase, and the denominator of such fraction is the number of
shares that all Participants have elected to purchase. 
 (e) Issuance of Shares. Shares purchased by a Participant under
the Plan shall be credited to an account with the transfer agent in the name of the Participant as soon as reasonably practicable after the close of the applicable Offering Period. The Committee may provide that such shares shall initially be held
for each Participant’s benefit by a broker designated by the Committee. 
 (f) Tax Withholding. To the extent
required by applicable federal, state, local or foreign law, as determined by the Committee, a Participant shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise in connection with the
Plan. The Company shall not be required to issue any Shares under the Plan until such obligations are satisfied. 
 (g)
Unused Cash Balances. An amount remaining in the Participant’s Plan Account that represents the Purchase Price for any fractional share shall be carried over in the Participant’s Plan Account to the next Offering Period. Any amount
remaining in the Participant’s Plan Account that represents the Purchase Price for whole shares that could not be purchased by reason of Subsection (c) above, Section 3 or Section 9(b) shall be refunded to the Participant in
cash, without interest. 
  

 5 

 (h) Shareholder Approval. Any other provision of the Plan notwithstanding, no Shares
shall be purchased under the Plan unless and until the Company’s stockholders have approved the adoption of, and the issuance of Shares under, the Plan. 
 SECTION 9. LIMITATIONS ON STOCK OWNERSHIP. 
 (a) Five Percent Limit.
Any other provision of the Plan notwithstanding, no Participant shall be granted a right to purchase Shares under the Plan if such Participant, immediately after his or her election to purchase such Shares, would own stock possessing more than 5% of
the total combined voting power or value of all classes of stock of the Company or any parent or Subsidiary of the Company. For purposes of this Subsection (a), the following rules shall apply: 
 (i) Ownership of stock shall be determined after applying the attribution rules of section 424(d) of the Code;

 (ii) Each Participant shall be deemed to own any stock that he or she has a right or option to purchase under
this or any other plan; and 
 (iii) Each Participant shall be deemed to have the right to purchase 2,500 Shares
under this Plan with respect to each Offering Period. 
 (b) Dollar Limit. Any other provision of the Plan
notwithstanding, no Participant shall purchase Shares with a Fair Market Value in excess of the following limit: 
 (i) In the case of Shares purchased during an Offering Period that commenced in the current calendar year, the limit shall be equal to (A) $25,000 minus (B) the Fair Market Value of the Shares that the Participant previously
purchased in the current calendar year (under this Plan and all other employee stock purchase plans of the Company or any parent or Subsidiary of the Company); 
 (ii) In the case of Shares purchased during an Offering Period that commenced in the immediately preceding calendar year, the
limit shall be equal to (A) $50,000 minus (B) the Fair Market Value of the Shares that the Participant previously purchased (under this Plan and all other employee stock purchase plans of the Company or any parent or Subsidiary of the
Company) in the current calendar year and in the immediately preceding calendar year; or 
 (iii) In the case of
Stock purchased during an Offering Period that commenced in the second preceding calendar year, the limit shall be equal to (A) $75,000 minus (B) the Fair Market Value of the Stock that the Participant previously purchased (under this Plan
and all other employee stock purchase plans of the Company or any parent or Subsidiary of the Company) in the current calendar year and in the two preceding calendar years. 
  

 6 

 For purposes of this Subsection (b), the Fair Market Value of Shares shall be determined in each case
as of the beginning of the Offering Period in which such Shares is purchased. Shares purchased under stock purchase plans not intended to qualify under section 423 of the Code shall be disregarded. If a Participant is precluded by this
Subsection (b) from purchasing additional Shares under the Plan, he or she should discontinue his or her contributions, and the Plan administrator may discontinue his or her contributions, for the remainder of the then current offering period.

 SECTION 10. RIGHTS NOT TRANSFERABLE. 
 The rights of any Participant under the Plan, or any Participant’s interest in any Shares or monies to which he or she may be entitled under the Plan, shall not be transferable by voluntary or
involuntary assignment or by operation of law, or in any other manner other than by beneficiary designation or the laws of descent and distribution. If a Participant in any manner attempts to transfer, assign or otherwise encumber his or her rights
or interest under the Plan, other than by beneficiary designation or the laws of descent and distribution, then such act shall be treated as an election by the Participant to withdraw from the Plan under Section 6(a). 
 SECTION 11. NO RIGHTS AS AN EMPLOYEE. 
 Nothing in the Plan or in any right granted under the Plan shall confer upon the Participant any right to continue in the employ of a Participating Company for any period of specific duration or interfere
with or otherwise restrict in any way the rights of the Participating Companies or of the Participant, which rights are hereby expressly reserved by each, to terminate his or her employment at any time and for any reason, with or without cause.

 SECTION 12. NO RIGHTS AS A SHAREHOLDER. 
 A Participant shall have no rights as a stockholder with respect to any Shares that he or she may have a right to purchase under the Plan until such shares have been purchased on the last day of the
applicable Offering Period and issued to the Participant. 
 SECTION 13. AMENDMENT OR DISCONTINUANCE. 
 The Board shall have the right to amend, suspend or terminate the Plan at any time and without notice. Except as provided in Section 3,
any increase in the aggregate number of Shares that may be issued under the Plan shall be subject to the approval of the Company’s stockholders. In addition, any other amendment of the Plan shall be subject to the approval of the Company’s
stockholders to the extent required by any applicable laws and regulations, and the regulations of any stock exchange or other securities market on which the Company’s securities may then be traded. The Plan shall terminate automatically 20
years after its adoption by the Board, unless (a) the Plan is extended by the Board and (b) the extension is approved within 12 months by a vote of the stockholders of the Company. 
  

 7 

 SECTION 14. COMMITTEE RULES FOR NON-U.S. JURISDICTIONS. 
 (a) Rules and Procedures. The Committee may adopt rules or procedures relating to the operation and administration of the Plan to
accommodate the specific requirements of local laws and procedures. Without limiting the generality of the foregoing, the Committee is specifically authorized to adopt rules and procedures regarding handling of payroll deductions,
enrollment/withdrawal procedures, conversion of local currency, payroll tax, withholding procedures and handling of evidence of stock ownership which vary with local requirements. In addition, the Committee may adopt rules regarding the payment of
interest on amounts held in Plan Accounts, provided that such rules shall apply on a uniform basis to all Eligible Employees employed by a Participating Company if the grants to the Eligible Employees employed by such Participating Company are
intended to qualify under section 423 of the Code. 
 (b) Sub-Plans. The Committee may also adopt sub-plans
applicable to particular Subsidiaries, which sub-plans may be designed to be outside the scope of Code section 423. The rules of such sub-plans may take precedence over other provisions of this Plan, with the exception of Section 3(a), but
unless otherwise superseded by the terms of such sub-plan, the provisions of this Plan shall govern the operation of such sub-plan. 
 SECTION 15. COMPLIANCE WITH LAW. 
 (a) Securities Laws and Regulations. Shares shall not be issued under
the Plan unless the issuance and delivery of such shares comply with (or are exempt from) all applicable requirements of law, including (without limitation) the U.S. Securities Act of 1933, as amended, the rules and regulations promulgated
thereunder, state and non-U.S. securities laws and regulations, and the regulations of any stock exchange or other securities market on which the Company’s securities may then be traded. 
 (b) Governmental Approvals. This Plan and the Company’s obligation to sell and deliver shares of its stock under the Plan shall
be subject to the approval of any governmental authority required in connection with the Plan or the authorization, issuance, sale, or delivery of stock hereunder. 
 (c) Choice of Law. This Plan shall be governed by the laws of the Republic of Singapore, without regard to choice of law rules. 
 SECTION 16. DEFINITIONS. 
 (a) “Board” means the Board of
Directors of the Company, as constituted from time to time. 
 (b) “Code” means the U.S. Internal Revenue Code
of 1986, as amended. 
 (c) “Committee” means a committee of the Board, as described in Section 2.

 (d) “Company” means Verigy Ltd., a Singapore corporation. 
  

 8 

 (e) “Compensation” means (i) the following to the extent paid in cash
to a Participant by a Participating Company: salaries; base wages; commissions and other sales achievement-based compensation; shift premiums; salaries and wages paid during flexible time off, paid holidays, jury duty, bereavement periods and other
approved time off; plus (ii) any pre-tax contributions made by the Participant under section 401(k) or 125 of the Code. The Committee shall determine whether a particular item is included in Compensation.” 
 (f) “Corporate Reorganization” means: 
 (i) The consummation of a merger or consolidation of the Company with or into another entity or any other corporate
reorganization; or 
 (ii) The sale, transfer or other disposition of all or substantially all of the
Company’s assets or the complete liquidation or dissolution of the Company. 
 (g) “Eligible Employee”
means any employee of a Participating Company who meets both of the following requirements: 
 (i) His or her
customary employment is for more than five months per calendar year and for more than 20 hours per week; and 
 (ii) He or she has been an employee of a Participating Company for not less than three consecutive months, or such other period as the Committee may determine before the beginning of the applicable Offering Period. 
 The foregoing notwithstanding, (A) for the first Offering Period, the requirements of subparagraph (ii) above shall not be applicable; (B) an
individual shall be considered an Eligible Employee regardless of whether the individual satisfies the requirements of Paragraphs (i) and (ii) above where so provided by the law of any country that has jurisdiction over him or her or if he
or she is subject to a collective bargaining agreement that so provides; and (C) an individual shall not be considered an Eligible Employee if his or her participation in the Plan is prohibited by the law of any country that has jurisdiction
over him or her or if he or she is subject to a collective bargaining agreement that does not provide for participation in the Plan, provided that the eligibility requirements of the Plan shall apply on a uniform basis to all employees of a
Participating Company if the grants to the Eligible Employees employed by such Participating Company are intended to qualify under section 423 of the Code. 
 (h) “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended. 
  

 9 

 (i) “Fair Market Value” means the market price of Shares, determined by the
Committee as follows: 
 (i) If the Shares are traded on Nasdaq or on a stock exchange, then the Fair Market
Value shall be equal to the last sale price of the Shares on such market or exchange as of the date in question or, if the market or exchange was closed on the date in question, then the Fair Market Value will be equal to the last sale price on the
last trading day immediately preceding the day in question. If the Shares are traded on more than one market or exchange, then the Fair Market Value shall be determined by reference to the primary market or exchange where the Shares trade.

 (ii) If the foregoing provisions are not applicable, then the Committee shall determine the Fair Market Value
in good faith on such basis as it deems appropriate. Such determination shall be conclusive and binding on all persons. 
 (j)
“IPO” means the effective date of the registration statement filed by the Company with the U.S. Securities and Exchange Commission for its initial offering of Shares to the public. 
 (k) “IPO Price” means the price at which the shares will be first offered to the public (as reflected on the cover page of
the final prospectus prepared in connection with the IPO). 
 (l) “Offering Period” means a period with respect
to which the right to purchase Shares may be granted under the Plan, as determined pursuant to Section 4(a). 
 (m)
“Participant” means an Eligible Employee who participates in the Plan, as provided in Section 4. 
 (n)
“Participating Company” means (i) the Company and (ii) each present or future Subsidiary designated by the Committee as a Participating Company. 
 (o) “Plan” means this Verigy Ltd. 2006 Employee Shares Purchase Plan, as it may be amended from time to time. 

(p) “Plan Account” means the account established for each Participant pursuant to Section 8(a). 
 (q) “Purchase Price” means the price at which Participants may purchase Shares under the Plan, as determined pursuant to
Section 8(b). 
 (r) “Shares” means the Ordinary Shares of the Company. 
 (s) “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the
Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
  

 10 

 ADOPTION & AMENDMENT HISTORY 
  

			
		
	 Action
	  	Date
	Adopted by the Board of Directors:	  	June 7, 2006
		
	Approved by the sole shareholder:	  	June 7, 2006
		
	Amended by the Board of Directors to revise the definition of “Compensation” (Section 16(e))	  	August 29, 2006
		
	Amended by the Board of Directors to revise definition of Fair Market Value (Section 16(i))	  	December 20, 2006
		
	Amended by the Board of Directors to revise mechanics of stopping withholding when maximum level withheld (Section 9(b))	  	March 5, 2009
		
	Amended by the Board of Directors to add 1,500,000 shares to the Plan	  	December 2, 2009
		
	Increase in shares approved by shareholders	  	April 6, 2010

  

 11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}]]