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Exhibit 10.7    
    

 
 

INVENTORY PURCHASE AGREEMENT    
    
    BETWEEN    
    
    AGILENT TECHNOLOGIES INTERNATIONAL SARL    
    
    AND    
    
    FLEXTRONICS INTERNATIONAL GERMANY GMBH & CO KG    

    EFFECTIVE MARCH 31st, 2006    
    
    Contract No. M1-06-004    
    

 
 

INVENTORY PURCHASE AGREEMENT    
    

        This INVENTORY PURCHASE AGREEMENT ("Agreement"), is dated and executed on March 31st, 2006 by
and between AGILENT TECHNOLOGIES INTERNATIONAL SARL, a Swiss limited liability company, ("Seller"), and FLEXTRONICS INTERNATIONAL GERMANY GMBH &
CO KG, a German limited partnership ("Buyer"). 

 
 

W I T N E S S E T H:    
    

        WHEREAS, Agilent Technologies Manufacturing GmbH & Co. KG ("Agilent KG") is engaged through its Semiconductor Test Solutions business unit
("STS") in the business of manufacturing a variety of manufacturing test systems; and 

        WHEREAS,
the STS business has been set up as a contract manufacturing facility; and 

        WHEREAS,
the inventory consisting of components, raw materials, packaging materials and work in progress related to STS is owned by Seller ("Inventory"); and 

        WHEREAS,
Agilent KG intends to sell and transfer its STS assets to Buyer on the basis of an Asset Purchase Agreement (the "Germany APA");
and 

        WHEREAS,
in this context Buyer desires to purchase from Seller and Seller desires to sell to Buyer the Inventory; 

        NOW,
THEREFORE, in consideration of the promises and mutual covenants of the parties hereto, it is hereby agreed as follows: 

1.     PURCHASE AND SALE OF INVENTORY 

        1.1    Transfer of Assets.    Seller shall sell, convey, assign, transfer and deliver to Buyer, and Buyer shall
purchase and acquire from the Seller, the items of Inventory which are generally further described and identified on Schedule 1.1 including any
existing or future warranty claims which Seller might have against any third party in respect of such assets (collectively, the "Assets"). 

        1.2    Closing.    The transfer of the Assets shall take place on June 1st, 2006 (the
"Closing Date") provided that (i) the Germany APA has been validly executed and (ii) the Closing Condition as defined in
Section 1.3 of the Germany APA has been fulfilled. Seller and Buyer shall then execute on the Closing Date a closing confirmation which shall confirm in writing both the transfer of the Assets
as well as the date such transfer took place. On the Closing Date Seller shall also transfer to Buyer the Seller's records, files and other data (or copies thereof) relating to the Assets. The parties
agree that with regard to the Assets being in possession of Agilent KG the transfer of title shall be accomplished in accordance with Sec. 931 German Civil Act (BGB). 

        1.3    Asset Audit.    Seller and Buyer will jointly conduct a full audit of the physical Inventory ("Audit") during
the one week prior to the Closing Date ("Blackout Period"). Following such Audit, the Parties shall jointly establish and finally agree on the physical Inventory comprising the Assets and its
implications on the Purchase Price ("Final Physical Inventory of Assets"). Buyer and Seller will mutually agree to the final quantities and a respective Purchase Price Adjustment based on the result
of the Audit. 

2.     PURCHASE PRICE AND PAYMENT 

        2.1    Purchase Price.    In consideration for the sale and transfer of the Assets and subject to the terms and
conditions of this Agreement the purchase price shall amount to US $21.474.817 plus applicable VAT, if any. Seller shall issue to Buyer subsequent to the Closing Date an invoice, as soon as possible
but no later than 30th June 2006, according to local laws and regulations including applicable VAT, if any. 

        2.2    Payment.    The Purchase Price for the Assets shall be payable on or subsequent to the Closing Date within
ninety (90) days after the receipt of Seller's invoice without any deductions. In case of a Purchase Price adjustment as per Section 1.3 above, such Purchase Price adjustment shall be
payable by the Party obliged to make such adjustment within one week after establishment and agreement on the Final Physical Inventory of Assets, not earlier, however, than the Purchase Price. 

3.     REPRESENTATIONS AND WARRANTIES 

        3.1    Due Organization.    Each party hereto represents and warrants to the other party that it is a duly organized
and validly existing company under the laws of the jurisdiction of its incorporation and has the full right, power, and authority to enter into the transaction contemplated in this Agreement. 

        3.2    Authorization.    Each party hereto represents and warrants to the other party that the execution, delivery and
performance of this Agreement by such party has been duly authorized by all necessary corporate action on the part of such party. 

        3.3    No further Representations.    Except for the representations and warranties contained in Sections 3.1 and 3.2,
neither Seller nor any other person or entity grants any express or implied representation or warranty on behalf of Seller, explicitly the Assets will be sold "as is". 

4.     MISCELLANEOUS 

        4.1    Notices.    All notices, requests, demands and other communications which are required or may be given under
this Agreement shall be in writing and shall be deemed to have been duly given if delivered personally, if telecopied (followed with confirmatory notice by overnight courier) or if mailed, first class
mail, postage prepaid, return receipt requested, or by overnight courier as follows: 

	(a)
	If
to Seller: 

Agilent
Technologies International Sarl

Rue de la Gare 27-29

CH-1110 Morges

Attention: Antoine Chavan, European Legal Counsel 

With
a Copy to: 

Agilent
Technologies, Inc.

395 Page Mill Road

Palo Alto, California 94306

Attention: General Counsel 

	(b)
	If
to Buyer: 

Flextronics
International Germany GmbH & Co KG
 Heinz-Nixdorf-Ring 1

33106 Paderborn

Attention: Managing Director

With
a Copy to: 

Flextronics
International

305 Interlocken Parkway,

Broomfield, Colorado, 80021 USA

Attention: General Counsel

        or
to such other address as either party shall have specified by notice in writing to the other party. All such notices, requests, demands and communications shall be deemed to have been
received on the date of personal delivery or telecopy, on the third business day after the mailing thereof or on the first day after delivery by overnight courier. 

        4.2    Application of Provisions of Germany APA.    It is understood and agreed that Sections 9.3, 10.1, 10.2, and
10.4 to 10.14 of the Germany APA shall apply mutatis mutandis to this Agreement. 

        IN
WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the date first above written. 

	 	 	AGILENT TECHNOLOGIES INTERNATIONAL SARL
	

 	
 	

By:	
 	

/s/ ROMAN RAMER

	 	 	Name:	 	Roman Ramer
	 	 	Title:	 	STS Strategic Procurement Manager
	

 	
 	

FLEXTRONICS INTERNATIONAL GERMANY GMBH & CO KG
	

 	
 	

By:	
 	

/s/ EDGAR SCHRADER

	 	 	Name:	 	Edgar Schrader
	 	 	Title:	 	Managing Director
	

 	
 	

By:	
 	

/s/ UWE SCHMIDT-STREIER

	 	 	Name:	 	Uwe Schmidt-Streier
	 	 	Title:	 	Managing Director

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Exhibit 10.7

INVENTORY PURCHASE AGREEMENT BETWEEN AGILENT TECHNOLOGIES INTERNATIONAL SARL AND FLEXTRONICS INTERNATIONAL GERMANY GMBH & CO KG EFFECTIVE MARCH 31st, 2006 Contract No. M1-06-004

INVENTORY PURCHASE AGREEMENT

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Exhibit 10.8    
    

 
 

INVENTORY PURCHASE AGREEMENT    
    
    BETWEEN    
    
    AGILENT TECHNOLOGIES INC    
    
    AND    
    
    FLEXTRONICS TECHNOLOGY (SHANGHAI) LTD.    
    
    EFFECTIVE MARCH
31st, 2006    
    
    Contract No. M1-06-012    
    

 
 

INVENTORY PURCHASE AGREEMENT    
    

        This INVENTORY PURCHASE AGREEMENT ("Agreement"), is dated and executed on March 31st, 2006 by and between
AGILENT TECHNOLOGIES Inc., a Delaware company, ("Seller"), and FLEXTRONICS TECHNOLOGY (SHANGHAI) LTD., a Chinese company
("Buyer"). 

 
 

W I T N E S S E T H:    
    

        WHEREAS, Seller is engaged through its Semiconductor Test Solutions business unit ("STS") in the business of
manufacturing a variety of manufacturing test systems; and 

        WHEREAS,
Buyer's affiliated entity, Flextronics Telecom Services, Ltd. ("FTS") and Seller's affiliated entity, Agilent Technologies International Sarl
("ATIS"), have executed a Global Manufacturing Services Agreement with an effective date of March 2nd, 2006
("MSA") under which Buyer manufactures products based on requirements provided by ATIS or an Eligible Buyer, as defined in the MSA (including Seller),
and sells the manufactured products to ATIS or an Eligible Purchaser (including Seller); and 

        WHEREAS,
the STS business has been set up as a contract manufacturing facility; and 

        WHEREAS,
the inventory consisting of finished products, components, raw materials, packaging materials and work in progress related to STS is owned by Seller; and 

        WHEREAS,
Seller's affiliated company, Agilent Technologies Inc. intends to sell and transfer its STS assets to Buyer's affiliated company Flextronics International
USA, Inc. on the basis of an Asset Purchase Agreement (the "Loveland APA"); and 

        WHEREAS,
in this context Buyer desires to purchase from Seller and Seller desires to sell to Buyer the inventory consisting of finished products, components, raw materials, packaging
materials and work in progress related to STS; 

        NOW,
THEREFORE, in consideration of the promises and mutual covenants of the parties hereto, it is hereby agreed as follows: 

1.     PURCHASE AND SALE OF INVENTORY ("ASSETS") 

        1.1    Transfer of Assets.    Seller shall sell, convey, assign, transfer and deliver to Buyer, or, as the case may
be, have Benchmark Inc. ("Benchmark"), an approved Agilent supplier, sell, convey, assign, transfer and deliver to Buyer and Buyer shall purchase and acquire from the Seller or from Benchmark
the inventory consisting of finished products, components, raw materials, packaging materials and work in progress related to STS including any existing or future warranty claims which Seller might
have against any third party in respect of such assets (collectively, the "Assets"). The transfer of Assets shall occur in three phases. The transfer of
Assets in phase 1 shall occur from Benchmark Inc. to Buyer. The transfer of Assets in phases 2 and 3 shall occur from Seller to Buyer, but can also be from Benchmark to Buyer. Prior to Phase 2
and Phase 3 Seller shall in due course provide schedules for the Assets to be transferred to Buyer in the respective phase. For the avoidance of doubt, for the purposes of this Agreement, any purchase
from Benchmark shall be deemed to be a purchase from Seller and Seller shall be fully responsible and shall hold Buyer harmless form any liability associated therewith, except for the payment of the
purchase price for Assets transferred to Buyer. 

        1.2    Closing.    The transfer of the Assets shall take place in three phases in March (Phase 1), in
August—or such earlier date as mutually agreed by the parties—(Phase 2) and in September (Phase 3) provided that (i) the Loveland APA has been validly
executed and (ii) the Closing Condition as defined in Section 1.3 of the Loveland APA has been fulfilled. Seller and Buyer shall then execute on the Closing Date a closing confirmation
which shall confirm in writing both the transfer of the Assets as well as the date such transfer took place. On the Closing Date Seller shall also transfer to Buyer the Seller's records, files and
other data (or copies thereof) relating to the Assets. The parties agree that upon transfer of the Assets the transfer of title shall also be accomplished. 

        1.3    Asset Audit.    Seller and Buyer will conduct a full Physical Inventory during the one week prior to the
Closing Date ("Blackout Period"). Following such Physical Inventory, the Parties shall jointly establish and agree on the Final Physical Inventory of Assets and its implications on the Purchase Price.
Buyer and Seller will mutually agree to the final quantities and a respective Purchase Price Adjustment based on the result of the Physical Inventory. 

2.     PURCHASE PRICE AND PAYMENT 

        2.1    Purchase Price.    In consideration for the sale and transfer of the Assets and subject to the terms and
conditions of this Agreement the purchase price shall be as follows. 

        (a)   For
the Assets transferred in phase 1, the purchase price shall amount to US $ 4,000,000.00 (according to a mutually conducted and agreed final physical
inventory). Seller shall cause Benchmark Inc. to issue Buyer an invoice according to local laws and regulations subsequent to the transfer of the Phase 1 Assets to Buyer. Agilent shall
reimburse Buyer if the assets purchased do not meet Agilent exacting requirements and Seller refuses to allow such material to be returned for credit. If Benchmark refuses to issue a credit note
within 30 days of Buyers return of the non-conforming materials, Buyer at it's sole discretion will debit Agilent receivables for such amounts in dispute. 

        (b)   For
the Assets transferred in phases 2 and 3, the purchase price shall respectively be determined according to the schedules to be prepared by Seller. It is understood
and agreed that for phase 2 the net purchase price shall not exceed US $ 4,500,000.00 and for phase 3 shall not exceed US $ 4,000,000.00 and will in both cases be established subsequent
to a mutually conducted and agreed final physical inventory in accordance with Section 1.3 above. Seller or Benchmark shall issue Buyer an invoice according to local laws and regulations
subsequent to the transfer of the Phase 2 Assets and the Phase 3 Assets to Buyer. 

        2.2    Payment.    

        (a)   The
Purchase Price for the Assets purchased from Benchmark Inc. in phase 1 shall be payable within thirty (30) days after the receipt of Benchmark's
invoice without any deductions. In case of a Purchase Price adjustment as per Section 1.3 above, such Purchase Price adjustment shall be payable by the Party obliged to make such adjustment
within one week after establishment and agreement on the Final Physical Inventory of Assets, not earlier, however, than the Purchase Price. Seller shall compensate Buyer for the cost of capital
associated with this payment terms and shall pay to Buyer US $ 71,500.00 within 10 days from Buyer's placement of the purchase order to Benchmark. 

        (b)   The
Purchase Price for the Assets purchased from Seller in phases 2 and 3 shall be payable within forty five (45) days after the receipt of Seller's invoice
without any deductions. In the event, Buyer purchases directly from Benchmark, the Purchase Price shall be payable within thirty (30) days after the receipt of Benchmark's invoice. In such
case, Seller will pay a 1/3% markup directly to Buyer on all material purchased from Benchmark. This will offset the difference in payment terms between Benchmark and Seller. In case of
a Purchase Price adjustment as per Section 1.3 above, such Purchase
Price adjustment shall be payable by the Party obliged to make such adjustment within one week after establishment and agreement on the Final Physical Inventory of Assets, not earlier, however, than
the Purchase Price. 

3.     REPRESENTATIONS AND WARRANTIES 

        3.1    Due Organization.    Each party hereto represents and warrants to the other party that it is a duly organized
and validly existing company under the laws of the jurisdiction of its incorporation and has the full right, power, and authority to enter into the transaction contemplated in this Agreement. 

        3.2    Authorization.    Each party hereto represents and warrants to the other party that the execution, delivery and
performance of this Agreement by such party has been duly authorized by all necessary corporate action on the part of such party. 

        3.3    Tax Matters.    Seller has timely filed all Tax Returns and paid, deposited or  reserved on its financial statements or books
and records all Taxes in respect of Tax Returns required to have been filed with respect to the Assets and
related business operations or appropriate extensions therefore have been properly obtained. There are no Liens or similar encumbrances on the Assets relating to or attributable to Taxes, except for
Taxes not yet due and payable. Seller has no knowledge of any basis for assertion of any claims attributable to Taxes which, if adversely determined, would result in any lien against the Assets. As
used herein, "Taxes" shall mean all taxes of any kind, including, without limitation, those on or measured by or referred to as income, gross receipts,
sales, use, ad valorem, franchise, profits, license, withholding, payroll, employment, social security, transfer, net worth, excise, severance, stamp, occupation, premium, value added, property or
windfall profits taxes, customs, duties or similar fees, assessments or charges of any kind whatsoever, together with any interest and any penalties, additions to tax or additional amounts imposed by
any governmental authority, domestic or foreign. 

        3.4    No further Representations.    Except for the representations and warranties contained in Sections 3.1 and 3.2,
neither Seller nor any other person or entity grants any express or implied representation or warranty on behalf of Seller, explicitly the Assets will be sold "as is". 

4.     MISCELLANEOUS 

        4.1    Notices.    All notices, requests, demands and other communications which are required or may be given under
this Agreement shall be in writing and shall be deemed to have been duly given if delivered personally, if telecopied (followed with confirmatory notice by overnight courier) or if mailed, first class
mail, postage prepaid, return receipt requested, or by overnight courier as follows: 

If
to Seller: 

Agilent
Technologies Inc.
 5301 Stevens Creek Blvd.

Building 54 M/S F1

Santa Clara, CA 95051-7201

Attention: Gayn Erickson 

With
a Copy to: 

Agilent
Technologies, Inc.

395 Page Mill Road

Palo Alto, California 94306

Attention: General Counsel 

If
to Buyer: 

Flextronics
Technology (Shanghai) Ltd.

305 Interlocken Parkway,

Broomfield, Colorado, 80021 USA
 Attention: General Counsel

        or
to such other address as either party shall have specified by notice in writing to the other party. All such notices, requests, demands and communications shall be deemed to have been
received on the date of personal delivery or telecopy, on the third business day after the mailing thereof or on the first day after delivery by overnight courier. 

        4.2    Application of Provisions of Loveland APA.    It is understood and agreed that Section 7
("Miscellaneous") of the Loveland APA shall apply mutatis mutandis to this Agreement, including but not limited to the governing law and arbitration
provisions. 

        IN
WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the date first above written. 

	 	 	AGILENT TECHNOLOGIES INC.
	

 	
 	

By:	
 	

/s/ JACK TRAUTMAN

	 	 	Name:	 	Jack Trautman
	 	 	Title:	 	SR VP & General Manager STS
	

 	
 	

FLEXTRONICS TECHNOLOGY (SHANGHAI) LTD.
	

 	
 	

By:	
 	

/s/ MANNY MARIMUTHU

	 	 	Name:	 	Manny Marimuthu
	 	 	Title:	 	Director

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Exhibit 10.8

INVENTORY PURCHASE AGREEMENT BETWEEN AGILENT TECHNOLOGIES INC AND FLEXTRONICS TECHNOLOGY (SHANGHAI) LTD. EFFECTIVE MARCH 31st, 2006 Contract No. M1-06-012

INVENTORY PURCHASE AGREEMENT

W I T N E S S E T H

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