Document:

Exhibit 10.66

 

MASTER SEPARATION AND DISTRIBUTION
AGREEMENT

 

between

 

AGILENT TECHNOLOGIES, INC.

 

and

 

VERIGY LTD.

 

Dated as of May 31, 2006

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
  MASTER SEPARATION AND
  DISTRIBUTION AGREEMENT

  	
  1

  
	
   

  	
   

  
	
  ARTICLE
  I    DEFINITIONS AND RULES OF CONSTRUCTION

  	
  1

  
	
   

  	
   

  
	
   

  	
  1.1.

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.2.

  	
  Rules of Construction

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  II    PURCHASE PRICE AND ALLOCATION

  	
  2

  
	
   

  	
   

  
	
   

  	
  2.1.

  	
  Payment of Purchase Price

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.2.

  	
  Allocation of Purchase
  Price

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.3.

  	
  Receivables and Payables

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  III    DOCUMENTS AND ITEMS TO BE DELIVERED ON THE
  SEPARATION DATE

  	
  3

  
	
   

  	
   

  
	
   

  	
  3.1.

  	
  Documents to be Delivered
  by Agilent

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.2.

  	
  Documents to Be Delivered
  by Verigy

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.3.

  	
  Cash to be Transferred by
  Agilent

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  IV    THE IPO AND ACTIONS PENDING THE IPO

  	
  4

  
	
   

  	
   

  
	
   

  	
  4.1.

  	
  Transactions Prior to the
  IPO

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.2.

  	
  Proceeds of the IPO

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.3.

  	
  Conditions Precedent to
  Consummation of the IPO

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  V    THE DISTRIBUTION

  	
  5

  
	
   

  	
   

  
	
   

  	
  5.1.

  	
  The Distribution

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.2.

  	
  Actions Prior to the
  Distribution

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.3.

  	
  Conditions to Distribution

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.4.

  	
  Certain Stockholder
  Matters

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VI    FINANCIAL AND OTHER COVENANTS

  	
  7

  
	
   

  	
   

  
	
   

  	
  6.1.

  	
  Financial and Other
  Information

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.2.

  	
  Other Covenants

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.3.

  	
  Covenants Regarding the
  Incurrence of Indebtedness

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.4.

  	
  Release of Lease
  Guarantees

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VII    ACCESS TO INFORMATION

  	
  14

  
	
   

  	
   

  
	
   

  	
  7.1.

  	
  Restrictions on Disclosure
  of Information

  	
  14

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.2.

  	
  Legally Required
  Disclosure of Information

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.3.

  	
  Access to Information

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.4.

  	
  Record Retention

  	
  16

  

 

i

 

	
   

  	
  7.5.

  	
  Production of Witnesses

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.6.

  	
  Reimbursement

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.7.

  	
  Other Agreements Regarding
  Access to Information

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.8.

  	
  Acquisition of Verigy by
  another Person

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   ARTICLE
  VIII    ADDITIONAL COVENANTS AND OTHER MATTERS

  	
  17

  
	
   

  	
   

  
	
   

  	
  8.1.

  	
  Performance

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.2.

  	
  Existing Litigation
  Matters

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.3.

  	
  Insurance Matters

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.4.

  	
  Export Control Compliance

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.5.

  	
  Conduct of Business
  between Separation Date and the IPO Settlement Date

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.6.

  	
  Conduct of Business
  between IPO Settlement Date and Distribution Date

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  IX    INDEMNIFICATION

  	
  19

  
	
   

  	
   

  
	
   

  	
  9.1.

  	
  Indemnification by Verigy
  Group

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.2.

  	
  Indemnification by Agilent
  Group

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.3.

  	
  Claim Procedure

  	
  20

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.4.

  	
  Survival; Limitations

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  X    MISCELLANEOUS

  	
  22

  
	
   

  	
   

  
	
   

  	
  10.1.

  	
  Governing Law

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.2.

  	
  Jurisdiction

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.3.

  	
  Dispute Resolution

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.4.

  	
  Notices

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.5.

  	
  Binding Effect and
  Assignment

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.6.

  	
  Severability

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.7.

  	
  Entire Agreement

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.8.

  	
  Counterparts

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.9.

  	
  Expenses

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.10.

  	
  Amendment

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.11.

  	
  Waiver

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.12.

  	
  Authority

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.13.

  	
  Termination

  	
  25

  

 

ii

 

MASTER SEPARATION AND DISTRIBUTION
AGREEMENT

 

THIS MASTER SEPARATION
AND DISTRIBUTION AGREEMENT (the “Agreement”)
is dated as of May 31, 2006, by and between Agilent
Technologies, Inc., a Delaware corporation (“Agilent”), and Verigy Ltd., a company organized under
the laws of Singapore (together with its successors and assigns, “Verigy”) (each, a “Party” and, collectively, the “Parties”).

 

W I T N E S S E T H:

 

WHEREAS, Agilent has determined that it would be appropriate, desirable and in
the best interests of Agilent and Agilent’s stockholders to separate the
Business from Agilent;

 

WHEREAS, it is the intent of the Parties, in accordance with the General
Assignment and Assumption Agreement to be entered into between the Parties (the
“General Assignment and Assumption Agreement”)
and the other agreements and instruments provided for in this Agreement, that
Agilent and its Subsidiaries convey to Verigy and its Subsidiaries
substantially all of the business and assets of the Business and that Verigy
and its Subsidiaries assume certain of the liabilities of Agilent and its
Subsidiaries related to the Business (the “Transfer”);

 

WHEREAS,
the Parties understand that Agilent has entered into certain asset purchase
agreements, inventory purchase agreements and other agreements ancillary
thereto (collectively, the “Flextronics
Transfer Agreements”), with one or more subsidiaries or affiliates
of Flextronics International Ltd. (“Flextronics”),
which agreements contemplate the transfer of certain assets and employees
relating to the Business from Agilent to Flextronics on or about the Separation
Date;

 

WHEREAS, Verigy intends to offer and sell for its own account a limited number
of Verigy Ordinary Shares pursuant to an initial public offering of such shares
(the “IPO”), and in furtherance
thereof, Verigy has previously filed the IPO Registration Statement with the
SEC which has not yet become effective;

 

WHEREAS, Agilent intends, after the IPO, to distribute to holders of shares of
Agilent Common Stock the outstanding Verigy Ordinary Shares then owned by
Agilent (the “Distribution”); and

 

WHEREAS, the parties intend in this Agreement and the Transaction Documents to
set forth the principal arrangements between them regarding the Transfer, the
IPO and the Distribution:

 

NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants and agreements set forth below, and other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, the
parties hereby agree as follows:

 

ARTICLE I

 

DEFINITIONS AND RULES OF CONSTRUCTION

 

1.1.    Definitions.

 

Unless otherwise provided
herein, capitalized terms used in this Agreement have the meanings ascribed to
them by definition in this Agreement or in Annex A.

 

1.2.    Rules of Construction.

 

(a)   This
Agreement shall be construed without regard to any presumption or rule
requiring construction or interpretation against the Party drafting or causing
any instrument to be drafted.

 

(b)   The
words “hereof, “herein” and “hereunder” and words of similar import when used
in this Agreement will refer to this Agreement as a whole (including any
annexes, exhibits and schedules to this Agreement) and not to any particular
provision of this Agreement, and section and subsection

 

1

 

references are to this
Agreement unless otherwise specified. The words “include”, “including”, or “includes”
when used herein shall be deemed in each case to be followed by the words “without
limitation” or words having similar import. The headings and table of contents
in this Agreement are included for convenience of reference only and will not
limit or otherwise affect the meaning or interpretation of this Agreement. The
meanings given to terms defined herein will be equally applicable to both the
singular and plural forms of such terms.

 

ARTICLE II

 

PURCHASE PRICE AND ALLOCATION

 

2.1    Payment of Purchase Price.

 

The total consideration
in respect of the Transfer contemplated by this Agreement and the General
Assignment and Assumption Agreement shall consist of (i) a cash payment
equal to $535 million (the “Purchase
Price”) and (ii) the assumption of liabilities specified in the
General Assignment and Assumption Agreement. The Purchase Price shall be
payable by Verigy to Agilent on the Separation Date in United States dollars
(or in other currencies in certain foreign jurisdictions) in immediately
available federal funds to such bank account or accounts as shall be designated
in writing by Agilent no later than the second Business Day prior to the
Separation Date or as otherwise set forth in the applicable Ancillary
Agreement.

 

2.2    Allocation of Purchase Price.

 

(a)   The
Agilent Tax Group and the Verigy Tax Group agree to allocate the total
consideration described in Section 2.1 (and all other capitalizable costs)
among the Transferred Assets, the Transferred Intellectual Property Rights for
all purposes (including financial accounting and Tax purposes (except as otherwise
required by generally accepted accounting principles)) in accordance with an
allocation schedule (the “Allocation
Schedule”) prepared jointly by the Agilent Tax Group and the Verigy
Tax Group in accordance with Section 1060 of the Code and the Treasury
Regulations promulgated thereunder. The Agilent Tax Group and the Verigy Tax
Group agree to cooperate with each other in the preparation of, and to
negotiate in good faith to resolve any dispute with respect to, the Allocation
Schedule.

 

(b)   The
Verigy Tax Group and the Agilent Tax Group shall be bound by such Allocation
Schedule and shall file, according to Section 1060 of the Code, all
returns (including, without limitation, filing Form 8594) and reports with
respect to the transactions contemplated by this Agreement (including, without
limitation, all federal, state and local Tax returns) on the basis of such
allocation. In addition, the Verigy Tax Group and the Agilent Tax Group shall
act in accordance with the Allocation Schedule in the course of any Tax audit,
Tax review or Tax litigation relating thereto, and take no position and cause
their affiliates to take no position inconsistent with the Allocation Schedule
for income Tax purposes, including United States federal and state income Tax
and foreign income Tax, unless otherwise required pursuant to a “determination”
within the meaning of Section 1313(a) of the Code.

 

2.3.    Receivables and Payables.

 

Agilent shall pay to
Verigy any payments received by Agilent or any of its Subsidiaries after the
Separation Date in respect of accounts receivable of Verigy arising on, prior
to or after the Separation Date within five (5) Business Days of Agilent’s
receipt thereof. To the extent that any accounts payable are included in the
Assumed Liabilities, Agilent will pay such accounts payable on behalf of Verigy
after the Separation Date, provided
that any such payments will be made by Agilent only at such times and in such
amounts as are directed by Verigy. Verigy will reimburse Agilent for any such
amounts paid by Agilent at Verigy’s direction within five (5) Business
Days of such payments.

 

2

 

ARTICLE III

 

DOCUMENTS AND ITEMS TO BE DELIVERED
ON THE SEPARATION DATE

 

3.1.    Documents to be Delivered by
Agilent.    On or prior to the Separation Date,
or such later date as agreed to by the Parties, Agilent will deliver, or will
cause its appropriate Subsidiaries to deliver, to Verigy all of the following
items and agreements (collectively, together with all agreements and documents
contemplated by such agreements, the “Transaction
Documents”):

 

(a)   a
duly executed General Assignment and Assumption Agreement substantially in the
form attached hereto as Exhibit A;

 

(b)   Certificates
representing the stock and/or investments in the Subsidiaries and other
holdings of Agilent set forth on Schedule 1
with duly executed stock powers in the form proper for transfer;

 

(c)   a
duly executed Intellectual Property Matters Agreement substantially in the form
attached hereto as Exhibit B-1
and a duly executed Manufacturing Trademark License Agreement substantially in
the form attached hereto as Exhibit B-2;

 

(d)   a
duly executed Employee Matters Agreement substantially in the form attached
hereto as Exhibit C;

 

(e)   a
duly executed Tax Sharing Agreement substantially in the form attached hereto
as Exhibit D;

 

(f)    a
duly executed Transition Services Agreement substantially in the form attached
hereto as Exhibit E;

 

(g)   a
duly executed loan agreement (the “Loan
Facility Agreement”) substantially in form attached hereto as Exhibit F.

 

(h)   a
duly executed Share Subscription Agreement substantially in the form attached
hereto as Exhibit G;

 

(i)    resignations
of each person who is an officer of Verigy or an officer or director of any of
its Subsidiaries, immediately prior to the Separation Date, and who will be
employees of Agilent from and after the Separation Date; and

 

(j)    such
other agreements, documents or instruments as the Parties may agree are
necessary or desirable in order to achieve the purposes hereof.

 

3.2    Documents to Be Delivered by
Verigy.    As of the Separation Date, Verigy
will or will cause its appropriate Subsidiaries to deliver to Agilent all of
the following:

 

(a)   in
each case where Verigy is a party to any agreement or instrument referred to in
Section 3.1, a duly executed counterpart of such agreement or instrument;
and

 

(b)   resignations
of each person who is an officer or director of Agilent or its Subsidiaries
(other than Verigy or any of its Subsidiaries) immediately prior to the
Separation Date, and who will be employees of Verigy from and after the
Separation Date.

 

3.3    Cash to be Contributed by
Agilent.    On or prior to the Separation Date,
or such later date as may be mutually agreed to by the Parties, Agilent shall
make a capital contribution to Verigy in the amount of $535 million
pursuant to the terms of the Share Subscription Agreement referenced in
Section 3.1(h).

 

3

 

ARTICLE IV

 

THE IPO AND ACTIONS PENDING THE IPO

 

4.1    Transactions Prior to the IPO.    Subject
to the conditions hereof, Agilent and Verigy will use their commercially
reasonable efforts to consummate the IPO, including, without limitation, by
taking the actions specified in this Section 4.1.

 

(a)   Verigy
will file such amendments or supplements to the IPO Registration Statement as
may be necessary in order to cause the IPO Registration Statement to become and
remain effective as required by applicable law or by the Underwriters,
including, without limitation, filing such amendments and supplements thereto
as may be required by the Underwriting Agreement, the SEC or applicable
securities laws. Agilent and Verigy will also cooperate in preparing, filing
with the SEC and causing to become effective a registration statement
registering the Verigy Ordinary Shares under the Exchange Act, and any
registration statements or amendments thereto which are required to reflect the
establishment of, or amendments to, any employee benefit and other plans
necessary or appropriate in connection with the IPO, the Distribution or the
other transactions contemplated by this Agreement and the Transaction
Documents.

 

(b)   Verigy
will enter into the Underwriting Agreement, in form and substance reasonably
satisfactory to Verigy, and Verigy will comply with its obligations thereunder.

 

(c)   Verigy
will use its commercially reasonable efforts to take all such action as may be
necessary or appropriate under applicable state securities and blue sky laws of
the United States (and any comparable laws under any foreign jurisdictions) in
connection with the IPO.

 

(d)   Verigy
will prepare, file and use commercially reasonable efforts to seek to make
effective, an application for listing of the Verigy Ordinary Shares to be
issued in the IPO on the Nasdaq National Market, subject to official notice of
issuance.

 

(e)   Verigy
and Agilent will participate in the preparation of materials and presentations
that Agilent, Verigy and the Underwriters may deem necessary or desirable.

 

(f)    Verigy
will cooperate in all respects with Agilent in connection with the pricing and
timing of the Verigy Ordinary Shares to be issued in the IPO and will, at
Agilent’s direction, promptly take any and all actions necessary or desirable
to consummate the IPO as contemplated by the IPO Registration Statement and the
Underwriting Agreement.

 

4.2    Proceeds of the IPO.    Except
as may be otherwise agreed by the parties, the IPO will be a primary offering
of Verigy Ordinary Shares, and the net proceeds of the IPO will be used as
described in the IPO Registration Statement in the section entitled “Use of
Proceeds”.

 

4.3    Conditions Precedent to
Consummation of the IPO.    The obligations of
the Parties to consummate the IPO will be subject to such conditions as Agilent
will determine in its sole and absolute discretion, which conditions will be
for the sole benefit of Agilent, may be waived by Agilent in its sole and
absolute discretion, and any determination by Agilent regarding the
satisfaction or waiver of any of such conditions will be conclusive. Such
conditions will include, without limitation, the following:

 

(a)   The
IPO Registration Statement will have been declared effective by the SEC, and
there will be no stop order in effect with respect thereto and no proceeding
for that purpose will have been instituted by the SEC;

 

(b)   The
actions and filings with regard to state securities and blue sky laws of the
United States (and any comparable laws under any foreign jurisdictions)
referred to in Section 4.1 will have been taken and, where applicable,
have become effective or been accepted;

 

4

 

(c)   The
Verigy Ordinary Shares to be issued in the IPO will have been accepted for
listing on the Nasdaq National Market, on official notice of issuance;

 

(d)   Verigy
will have entered into the Underwriting Agreement and all conditions to the
obligations of Verigy and the Underwriters thereunder will have been satisfied
or waived;

 

(e)   Agilent
will be satisfied in its sole and absolute discretion that (i) it will
possess Tax Control of Verigy immediately following the consummation of the
IPO, (ii) to the extent applicable as of the time the IPO is consummated,
the other conditions for a distribution qualifying under Section 355 of
the Code will be satisfied or can reasonably be anticipated to be satisfied,
and (iii) there will be no event or condition that may cause any of such
conditions not to be satisfied as of the time of the Distribution or
thereafter;

 

(f)    No
order, injunction or decree issued by any court or agency of competent
jurisdiction or other legal restraint or prohibition preventing the
consummation of the IPO or any of the other transactions contemplated by this
Agreement or any Transaction Document will be in effect;

 

(g)   Agilent
will have determined that the terms of the IPO, including the timing and
pricing thereof, and other material matters in connection therewith, are
acceptable to Agilent; and

 

(h)   This
Agreement will not have been terminated.

 

ARTICLE V

 

THE DISTRIBUTION

 

5.1    The Distribution.    Agilent
will, in its sole and absolute discretion, determine the date of the
consummation of the Distribution and all terms of the Distribution, including
without limitation, the form, structure and terms of any transaction(s) and/or
offering(s) to effect the Distribution and the timing of and conditions to the
consummation of the Distribution. In addition, Agilent may, at any time and
from time to time until the completion of the Distribution, modify or change
the terms of the Distribution, including, without limitation, by accelerating
or delaying the timing of the consummation of all or part of the Distribution.
Verigy will cooperate with Agilent in all respects to accomplish the
Distribution and will, at Agilent’s direction, promptly take any and all
reasonable actions necessary or desirable to effect the Distribution,
including, without limitation, to the extent necessary, the registration under
the Securities Act and the Exchange Act of the Verigy Ordinary Shares on an
appropriate registration form or forms to be designated by Agilent. Agilent
will select any investment banker(s) and manager(s) in connection with the
Distribution, as well as any financial printer, solicitation and/or exchange
agent and financial, legal, accounting and other advisors for Agilent,
provided, however, that nothing in this Agreement will prohibit Verigy from
engaging (at its own expense) its own financial, legal, accounting and other
advisors in connection with the Distribution.

 

5.2    Actions Prior to the
Distribution.    In connection with the
Distribution, the parties will take the actions set forth in this
Section 5.2.

 

(a)   Agilent
and Verigy will prepare and mail, prior to any Distribution Date, to the
holders of Agilent Common Stock, such information concerning Verigy and the
Distribution and such other matters as Agilent reasonably determines and as may
be required by law. Agilent and Verigy will prepare, and Verigy will, to the
extent required by applicable law, file with the SEC any such documentation
that Agilent determines is necessary or desirable to effect the Distribution,
and Agilent and Verigy will each use its commercially reasonable efforts to
obtain all necessary approvals from the SEC with respect thereto as soon as
practicable.

 

5

 

(b)   Verigy
will use its commercially reasonable efforts to take all such action as may be
necessary or desirable under applicable state securities and blue sky laws of
the United States (and any comparable laws under any foreign jurisdictions) in
connection with the Distribution.

 

(c)   Verigy
will prepare, file and use commercially reasonable efforts to seek to make
effective, an application for listing of the Verigy Ordinary Shares to be
distributed in the Distribution on the Nasdaq National Market, subject to
official notice of issuance.

 

(d)   Verigy
will take all reasonable steps necessary or desirable to cause the conditions
set forth in Section 5.3 to be satisfied and to effect the Distribution.

 

5.3    Conditions to Distribution.    The
consummation of the Distribution will be subject to the satisfaction, or waiver
by Agilent in its sole and absolute discretion, of the conditions set forth in
this Section 5.3. Any determination by Agilent regarding the satisfaction
or waiver of any of such conditions will be conclusive. For the avoidance of
doubt, in the event that Agilent determines not to consummate the Distribution
because one or more of such conditions is not satisfied or for any other
reason, such determination by Agilent will not affect the effectiveness of the
Transfer or the IPO.

 

(a)   The
receipt by Agilent, in form and substance satisfactory to it, of an opinion
from its Tax Advisor that the Distribution should qualify as a distribution
under Section 355 of the Code, subject to Section 367 of the Code,
and such other matters as Agilent may determine to be necessary or advisable in
its sole and absolute discretion.

 

(b)   The
receipt of any governmental approvals and material consents necessary to
consummate the Distribution, which approvals and consents will be in full force
and effect.

 

(c)   No
order, injunction, decree or regulation issued by any court or agency of competent
jurisdiction or other legal restraint or prohibition preventing the
consummation of the Distribution will be in effect and no other event outside
the control of Agilent will have occurred or failed to occur that prevents the
consummation of the Distribution.

 

(d)   The
actions and filings necessary or appropriate under applicable securities laws
in connection with the Distribution will have been taken or made, and, where
applicable, have become effective or been accepted.

 

(e)   The
Verigy Ordinary Shares to be distributed in the Distribution will have been
accepted for listing on the Nasdaq National Market, subject to official notice
of issuance.

 

(f)    The
receipt by Agilent, in form and substance satisfactory to it, of (i) an
opinion from Delaware counsel, selected by Agilent in its sole and absolute
discretion, regarding the appropriateness of the determination by the Agilent
Board of Directors that Agilent has sufficient surplus under Delaware law to
permit the Distribution and (ii) appropriate certificates from Verigy with
respect to factual matters required by the advisors to render the opinions
referenced in (i).

 

5.4    Certain Stockholder Matters.

 

(a)   Subject
to Section 5.3 hereof, on or prior to the Distribution Date, Agilent will
deliver to a distribution agent to be appointed by Agilent (the “Distribution Agent”) for the benefit of
holders of record of Agilent Common Stock on the Record Date, a single share
certificate, endorsed by Agilent in blank, representing all of the outstanding
Verigy Ordinary Shares then owned by Agilent, and Agilent will instruct the
Distribution Agent to deliver to the Verigy Transfer Agent true, correct and
complete copies of the stock and transfer records reflecting the holders of
Agilent Common Stock entitled to receive Verigy Ordinary Shares in connection
with the Distribution. Agilent will cause its transfer agent to instruct the
Distribution Agent to distribute on the Distribution Date or as soon as
reasonably practicable thereafter the appropriate number of Verigy Ordinary
Shares to each such holder or designated transferee(s) of such holder. Agilent
will cooperate, and will instruct the Distribution Agent

 

6

 

to cooperate, with Verigy
and the Verigy Transfer Agent, and Verigy will cooperate, and will instruct the
Verigy Transfer Agent to cooperate, with Agilent and the Distribution Agent, in
connection with all aspects of the Distribution and all other matters relating
to the issuance and delivery of certificates representing, or other evidence of
ownership of, the Verigy Ordinary Shares to be distributed to the holders of
Agilent Common Stock in connection with the Distribution.

 

(b)   Subject
to Section 5.4(d), each holder of Agilent Common Stock on the Record Date
(or such holder’s designated transferee(s)) will be entitled to receive in the
Distribution a number of Verigy Ordinary Shares equal to the number of shares
of Agilent Common Stock held by such holder on the Record Date, multiplied by a
fraction, (i) the numerator of which is the number of Verigy Ordinary
Shares beneficially owned by Agilent or any other member of the Agilent Group
on the Record Date, and (ii) the denominator of which is the number of
shares of Agilent Common Stock outstanding on the Record Date.

 

(c)   Until
such Verigy Ordinary Shares are duly transferred in accordance with applicable
law, from and after the Distribution Date, Verigy will regard the Persons
entitled to receive such Verigy Ordinary Shares as record holders of Verigy Ordinary
Shares in accordance with the terms of the Distribution without requiring any
action on the part of such Persons. Verigy agrees that, subject to any
transfers of such stock, (i) each such holder will be entitled to receive
all dividends payable on, and exercise voting rights and all other rights and
privileges with respect to, the Verigy Ordinary Shares then held by such
holder, and (ii) each such holder will be entitled, without any action on
the part of such holder, to receive one or more certificates representing, or
other evidence of ownership of, the Verigy Ordinary Shares then held by such
holder.

 

(d)   Notwithstanding
anything to the contrary in this Section 5.4, in the event that the
Distribution is not made in the form of a pro rata distribution of Verigy
Ordinary Shares to holders of Agilent Common Stock, the above provisions of
this Section 5.4 will not apply to the Distribution.

 

ARTICLE VI

 

FINANCIAL AND OTHER COVENANTS

 

6.1    Financial and Other
Information.

 

(a)    Financial Information.    Verigy
agrees that, for so long as Agilent is required to consolidate the results of
operations and financial position of Verigy and any other members of the Verigy
Group or to account for its investment in Verigy under the equity method of
accounting (determined in accordance with generally accepted accounting
principles consistently applied and consistent with SEC reporting
requirements):

 

(i)    Disclosure of Financial
Controls.    Verigy will, and will cause each
other member of the Verigy Group to, maintain, as of and after the Separation
Date, disclosure controls and procedures and internal control over financial
reporting as defined in Exchange Act Rule 13a-15 promulgated under the
Exchange Act; Verigy will cause each of its principal executive officer and its
principal financial officer to sign and deliver certifications to Verigy’s
periodic reports and will include the certifications in Verigy’s periodic
reports, as and when required pursuant to Exchange Act Rule 13a-14 and
Item 601 of Regulation S-K; Verigy will cause its management to evaluate
Verigy’s disclosure controls and procedures and internal control over financial
reporting (including any change in internal control over financial reporting)
as and when required pursuant to Exchange Act Rule 13a-15; Verigy will
disclose in its periodic reports filed with the SEC information concerning
Verigy management’s responsibilities for and evaluation of Verigy’s disclosure
controls and procedures and internal control over financial reporting (including,
without limitation, the annual management report and attestation report of
Verigy’s independent auditors relating to internal control over financial
reporting) as and when required under Items 307 and

 

7

 

308 of Regulation S-K and other applicable SEC
rules; and, without limiting the general application of the foregoing, Verigy
will, and will cause each other member of the Verigy Group to, maintain as of
and after the Separation Date internal systems and procedures that will provide
reasonable assurance that (A) the Financial Statements are reliable and
timely prepared in accordance with GAAP and applicable law, (B) all
transactions of members of the Verigy Group are recorded as necessary to permit
the preparation of the Financial Statements, (C) the receipts and
expenditures of members of the Verigy Group are authorized at the appropriate
level within Verigy, and (D) unauthorized use or disposition of the assets
of any member of the Verigy Group that could have material effect on the
Financial Statements is prevented or detected in a timely manner (it being
understood that the foregoing shall not require Verigy to comply with
Section 404 of the Sarbanes-Oxley Act of 2002 as of an earlier date than it
would otherwise be required to so comply under applicable law).

 

(ii)    Fiscal Year.    Verigy
will, and will cause each member of the Verigy Group to, maintain a fiscal year
that commences and ends on the same calendar days as Agilent’s fiscal year
commences and ends, and to maintain monthly accounting periods that commence
and end on the same calendar days as Agilent’s monthly accounting periods
commence and end.

 

(iii)    Monthly Financial Reports.    For
each monthly accounting period after the Separation Date, Verigy shall use its
reasonable best efforts to comply with Agilent’s standard financial reporting
timeline for the provision of consolidated income statements, balance sheets
and cash flows of Verigy and each Verigy Affiliate that is consolidated with
Verigy for such period, in such format and detail as Agilent may request;
provided that in any case Verigy shall provide such financial information not
later than eight (8) Business Days following the end of each monthly
accounting period of Verigy.

 

(iv)    Quarterly Financial
Statements.    As soon as practicable and within
Agilent’s standard financial reporting timeline, and in any event no later than
ten (10) Business Days prior to the date on which Agilent has notified
Verigy that Agilent intends to file its Form 10-Q or other document
containing quarterly financial statements with the SEC, Verigy will deliver to
Agilent drafts of (A) the consolidated financial statements of the Verigy
Group (and notes thereto) for such periods and for the period from the
beginning of the current fiscal year to the end of such quarter, setting forth
in each case in comparative form for each such fiscal quarter of Verigy the
consolidated figures (and notes thereto) for the corresponding quarter and
periods of the previous fiscal year and all in reasonable detail and prepared
in accordance with Article 10 of Regulation S-X and GAAP, and
(B) a discussion and analysis by management of the Verigy Group’s
financial condition and results of operations for such fiscal period, including,
without limitation, an explanation of any material period-to-period change and
any off-balance sheet transactions, all in reasonable detail and prepared in
accordance with Item 303(b) of Regulation S-K; provided, however,
that the foregoing requirement shall not apply to the first quarterly reporting
period of Verigy following the IPO if Verigy is not required by the Exchange
Act to file its Form 10-Q for such period within forty-five (45) days
of the end of such quarter. The information set forth in (A) and
(B) above is referred to in this Agreement as the “Quarterly Financial Statements.” No later
than three (3) Business Days prior to the date on which Agilent has
notified Verigy that Agilent intends to file the Agilent quarterly financial
statements with the SEC, Verigy will use its commercially reasonable efforts to
deliver to Agilent the final form of the Verigy Quarterly Financial Statements
and certifications thereof by the principal executive and financial officers of
Verigy in substantially the forms required under SEC rules for periodic reports
and in form and substance satisfactory to Agilent; provided, however,
that Verigy may continue to revise such Quarterly Financial Statements prior to
the filing thereof in order to make corrections and changes which corrections
and changes will be delivered by Verigy to Agilent as soon as practicable, and
in any event within eight (8) hours thereafter; provided, further,
that Agilent’s and

 

8

 

Verigy’s financial Representatives will actively
consult with each other regarding any changes which Verigy may consider making
to its Quarterly Financial Statements and related disclosures during the two
(2) Business Days immediately prior to any anticipated filing with the
SEC, to the extent that such changes would have an effect upon Agilent’s
financial statements or related disclosures. In addition to the foregoing, no
Quarterly Financial Statement or any other document which refers, or contains
information not previously publicly disclosed with respect to the ownership of
Verigy by Agilent, the separation of Verigy from Agilent or the Distribution
will be filed with the SEC or otherwise made public by any Verigy Group member
without the prior written consent of Agilent, which will not be unreasonably
withheld. Agilent and Verigy will cooperate with each other and use
commercially reasonable efforts to file their respective quarterly reports on
the same day; provided, however, that the foregoing requirement
shall not apply to the first quarterly reporting period of Verigy following the
IPO if Verigy is not required by the Exchange Act to file its Form 10-Q
for such period within forty-five (45) days of the end of such quarter.

 

(v)    Annual Financial Statements.    As
soon as practicable and within Agilent’s standard financial reporting timeline,
and in any event no later than ten (10) Business Days prior to the date on
which Agilent has notified Verigy that Agilent intends to file its
Form 10-K or other document containing annual financial statements with
the SEC, Verigy will deliver to Agilent (A) drafts of the consolidated
financial statements of the Verigy Group (and notes thereto) for such year,
setting forth in each case in comparative form the consolidated figures (and
notes thereto) for the previous fiscal year and all in reasonable detail and
prepared in accordance with Regulation S-X and GAAP and (B) a
discussion and analysis by management of the Verigy Group’s financial condition
and results of operations for such year, including, without limitation, an
explanation of any material period-to-period change and any off-balance sheet
transactions, all in reasonable detail and prepared in accordance with Item
303(a) of Regulation S-K. The information set forth in (A) and
(B) above is referred to in this Agreement as the “Annual Financial Statements.” Verigy will
deliver to Agilent all revisions to such drafts as soon as any such revisions
are prepared or made. No later than three (3) Business Days prior to the
date on which Agilent has notified Verigy that Agilent intends to file the
Agilent annual financial statements with the SEC, Verigy will deliver to
Agilent the final form of the Verigy Annual Financial Statements and
certifications thereof by the principal executive and financial officers of
Verigy in substantially the forms required under SEC rules for periodic reports
and in form and substance satisfactory to Agilent; provided, however,
that Verigy may continue to revise such Annual Financial Statements prior to
the filing thereof in order to make corrections and changes which corrections
and changes will be delivered by Verigy to Agilent as soon as practicable, and
in any event within eight (8) hours thereafter; provided, further,
that Agilent and Verigy financial Representatives will actively consult with
each other regarding any changes (whether or not substantive) which Verigy may
consider making to its Annual Financial Statements and related disclosures
during the three (3) Business Days immediately prior to any anticipated
filing with the SEC, to the extent such changes would have an effect upon
Agilent’s financial statements or related disclosures. In addition to the
foregoing, no Annual Financial Statement or any other document which refers, or
contains information not previously publicly disclosed with respect, to the
ownership of Verigy by Agilent, the separation of Verigy from Agilent or the
Distribution will be filed with the SEC or otherwise made public by any Verigy
Group member without the prior consent of Agilent, which will not be
unreasonably withheld. In any event, Verigy will use its commercially
reasonable efforts to deliver to Agilent, no later than three (3) days
prior to the date that on which Agilent has notified Verigy that Agilent intends
to file the Agilent annual financial statements with the SEC, the final form of
the Annual Financial Statements accompanied by an opinion thereon by Verigy’s
independent certified public accountants. Agilent and Verigy will cooperate
with each other and use commercially reasonable efforts to file their
respective annual reports on the same day.

 

9

 

(vi)    Affiliate Financial
Statements.    Verigy will use its commercially
reasonable efforts to deliver to Agilent all Quarterly and Annual Financial
Statements of each Verigy Affiliate which is itself required to file financial
statements with the SEC or otherwise make such financial statements publicly
available, with such financial statements to be provided in the same manner and
detail and on the same time schedule as those financial statements of Verigy
required to be delivered to Agilent pursuant to this Section 6.1.

 

(vii)    Conformance with Agilent
Financial Presentation.    All information
provided by any Verigy Group member to Agilent or filed with the SEC pursuant
to Section 6.1(a)(iii) through (vi) inclusive will be consistent
in terms of format and detail and otherwise with Agilent’s policies with
respect to the application of GAAP and practices with respect to the provision
of such financial information by such Verigy Group member to Agilent, with such
changes therein as may be requested by Agilent from time to time consistent
with changes in such accounting principles and practices.

 

(viii)    Verigy Reports Generally.    Each
Verigy Group member that files information with the SEC will deliver to
Agilent: (A) substantially final drafts, as soon as the same are prepared,
of (x) all reports, notices and proxy and information statements to be
sent or made available by such Verigy Group member to its respective security
holders, (y) all regular, periodic and other reports to be filed or
furnished under Sections 13, 14 and 15 of the Exchange Act (including Reports
on Forms 10-K, 10-Q and 8-K and Annual Reports to Shareholders), and
(z) all registration statements and prospectuses to be filed by such
Verigy Group member with the SEC or any securities exchange pursuant to the
listed company manual (or similar requirements) of such exchange (collectively,
the documents identified in clauses (x), (y) and (z) are referred to
in this Agreement as “Verigy Public
Documents”), and (B) as soon as practicable, but in no event
later than four (4) Business Days (other than with respect to 8-Ks) prior
to the earliest of the dates the same are printed, sent or filed, current
drafts of all such Verigy Public Documents and, with respect to 8-Ks, as soon
as practicable, but in no event later than two (2) Business Days prior to
the earliest of the dates the same are printed, sent or filed in the case of
planned 8-Ks and as soon as practicable, but in no event less than two
(2) hours in the case of unplanned 8-Ks; provided,
however, that Verigy may continue
to revise such Verigy Public Documents prior to the filing thereof in order to
make corrections and changes which corrections and changes will be delivered by
Verigy to Agilent as soon as practicable, and in any event (other than in
connection with unplanned 8-Ks) within eight (8) hours thereafter; provided, further,
that Agilent and Verigy financial Representatives will actively consult with
each other regarding any changes which Verigy may consider making to any of its
Verigy Public Documents and related disclosures prior to any anticipated filing
with the SEC, to the extent that such changes would have an effect upon Agilent’s
financial statements or related disclosures. In addition to the foregoing, no
Verigy Public Document or any other document which refers, or contains
information not previously publicly disclosed with respect, to the ownership of
Verigy by Agilent, the separation of Verigy from Agilent or the Distribution
will be filed with the SEC or otherwise made public by any Verigy Group member
without the prior consent of Agilent, which will not be unreasonably withheld.

 

(ix)    Budgets and Financial
Projections.    Verigy will, as promptly as
practicable and within Agilent’s standard budgeting timeline, deliver to
Agilent copies of all annual and other budgets and financial projections
(consistent in terms of format and detail and otherwise required by Agilent)
relating to Verigy on a consolidated basis and will provide Agilent an
opportunity to meet with management of Verigy to discuss such budgets and
projections.

 

(x)    Other Information.    With
reasonable promptness, Verigy will deliver to Agilent such additional financial
and other information and data with respect to the Verigy Group and their
business, properties, financial positions, results of operations and prospects
as from time to time may be reasonably requested by Agilent.

 

10

 

(xi)    Press Releases and Similar
Information.    Verigy and Agilent will consult
with each other as to the timing of their annual and quarterly earnings
releases and any interim financial guidance for a current or future period and
will give each other the opportunity to review the information therein relating
to the Verigy Group and to comment thereon. Agilent and Verigy will make
reasonable efforts to issue their respective annual and quarterly earnings
releases at approximately the same time on the same date. No later than
twenty-four (24) hours prior to the time and date that a party intends to
publish its regular annual or quarterly earnings release or any financial guidance
for a current or future period, such party will deliver to the other party
copies of substantially final drafts (or relevant portions thereof) of all
press releases and other statements to be made available by any member of that
party’s Group to employees of any member of that party’s Group or to the public
to the extent (and only to the extent) such releases and statements concern
matters that could be reasonably likely to have a material financial impact on
the earnings, results of operations, financial condition or prospects of any
Verigy Group member. In addition, prior to the issuance of any such press
release or public statement that meets the criteria set forth in the preceding
two sentences, the issuing party will consult with the other party regarding
any changes (other than typographical or other similar minor changes) to such
substantially final drafts. Immediately following the issuance thereof, the
issuing party will deliver to the other party copies of final drafts of all
press releases and other public statements.

 

(xii)    Cooperation on Agilent
Filings.    Verigy will cooperate fully, and
will use its best efforts to cause Verigy’s Auditors to cooperate fully, with
Agilent to the extent requested by Agilent in the preparation of Agilent’s
public earnings or other press releases, Quarterly Reports on Form 10-Q,
Annual Reports to Shareholders, Annual Reports on Form 10-K, any Current
Reports on Form 8-K and any other proxy, information and registration
statements, reports, notices, prospectuses and any other filings made by
Agilent with the SEC, any national securities exchange or otherwise made
publicly available (collectively, the “Agilent
Public Filings”). Verigy agrees to provide to Agilent all
information that Agilent reasonably requests in connection with any Agilent
Public Filings or that, in the reasonable judgment of Agilent’s legal
department, is required to be disclosed or incorporated by reference therein
under any law, rule or regulation. Verigy will use its best efforts to provide
such information in a timely manner on the dates requested by Agilent (which
may be earlier than the dates on which Verigy otherwise would be required
hereunder to have such information available) to enable Agilent to prepare,
print and release all Agilent Public Filings on such dates as Agilent will
determine but in no event later than as required by applicable law. Verigy will
use its commercially reasonable efforts to cause Verigy’s Auditors to consent
to any reference to them as experts in any Agilent Public Filings required
under any law, rule or regulation. If and to the extent requested by Agilent,
Verigy will diligently and promptly review all drafts of such Agilent Public
Filings and prepare in a diligent and timely fashion any portion of such
Agilent Public Filing pertaining to Verigy. Prior to any printing or public
release of any Agilent Public Filing, an appropriate executive officer of
Verigy will, if requested by Agilent, certify that (1) the information
relating to any Verigy Group member or the Business in such Agilent Public
Filing does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the
circumstances under which they were made, not misleading and (2) the financial
information relating to any Verigy Group member or the Business in such Agilent
Public Filing fairly presents, in all material respects, the financial
condition, results of operations and cash flows of such Verigy Group member or
the Business, as the case may be, for the periods presented in the release or
the Agilent Public Filing. Unless required by law, rule or regulation, Verigy
will not publicly release any financial or other information which conflicts
with the information with respect to any Verigy Group member or the Business
that is included in any Agilent Public Filing without Agilent’s prior written
consent, which will not be unreasonably withheld. Prior to the release or
filing thereof, Agilent will provide Verigy with a draft of any portion of an
Agilent Public Filing containing information relating to the Verigy Group and
will give Verigy an opportunity to review such information and comment thereon;
provided that Agilent will determine in its sole and absolute discretion the
final form and content of all Agilent Public Filings.

 

11

 

(b)    Auditors and Audits; Annual
Statements and Accounting.    Verigy agrees
that, for so long as Agilent is required to consolidate Verigy’s results of
operations and financial position or to account for its investment in Verigy
under the equity method of accounting (in accordance with GAAP):

 

(i)    Audit Timing.    Verigy
will use its commercially reasonable efforts to enable its independent
certified public accountants (“Verigy’s
Auditors”) to complete their audit such that they will date their
opinion on the Annual Financial Statements on the same date that Agilent’s
independent certified public accountants (“Agilent’s
Auditors”) date their opinion on Agilent’s audited annual financial
statements (the “Agilent Annual Statements”),
and to enable Agilent to meet its timetable for the printing, filing and public
dissemination of the Agilent Annual Statements, all in accordance with
Section 6.1(a) hereof and as required by applicable law.

 

(ii)    Information Needed by Agilent.    Verigy
will use its best efforts to provide to Agilent on a timely basis all
information that Agilent reasonably requires to meet its schedule for the
preparation, printing, filing, and public dissemination of the Agilent Annual
Statements and Agilent’s quarterly financial statements in accordance with
Section 6.1(a) hereof and as required by applicable law. Without limiting
the generality of the foregoing, Verigy will use its best efforts to provide
all required financial information with respect to the Verigy Group to Verigy’s
Auditors in a sufficient and reasonable time and in sufficient detail to permit
Verigy’s Auditors to take all steps and perform all reviews necessary to
provide sufficient assistance to Agilent’s Auditors with respect to information
to be included or contained in the Agilent Annual Statements and Agilent’s
quarterly financial statements.

 

(iii)    Access to Verigy Auditors.    Verigy
will authorize Verigy’s Auditors to make available to Agilent’s Auditors both
the personnel who performed, or are performing, the annual audit of Verigy and
work papers related to the annual audit of Verigy, in all cases within a
reasonable time prior to Verigy’s Auditors’ opinion date, so that Agilent’s
Auditors are able to perform the procedures they consider necessary to take
responsibility for the work of Verigy’s Auditors as it relates to Agilent’s
Auditors’ report on Agilent’s statements, all within sufficient time to enable
Agilent to meet its timetable for the printing, filing and public dissemination
of the Agilent Annual Statements.

 

(iv)    Access to Records.    At
Agilent’s request, Verigy will provide Agilent’s internal auditors with access
to the Verigy Group’s books and records so that Agilent may conduct reasonable
audits relating to the financial statements provided by Verigy under this
Agreement as well as to the internal accounting controls and operations of the
Verigy Group.

 

(v)    Notice of Changes.    Subject
to Section 6.1(a)(vii), Verigy will give Agilent as much prior notice as
reasonably practicable of any proposed determination of, or any significant
changes in, Verigy’s accounting estimates or accounting principles. Verigy will
consult with Agilent and, if requested by Agilent, Verigy will consult with
Agilent’s Auditors with respect thereto. Verigy will not make any such
determination or changes without Agilent’s prior written consent, which will
not be unreasonably withheld, if such a determination or a change would be
sufficiently material to be required to be disclosed in Verigy’s or Agilent’s
financial statements as filed with the SEC or otherwise publicly disclosed
therein.

 

(vi)    Accounting Changes Requested
by Agilent.    Notwithstanding clause (vi)
above, Verigy will make any changes in its accounting estimates or accounting
principles that are requested by Agilent in order for Verigy’s accounting
practices and principles to be consistent with those of Agilent.

 

(vii)    Special Reports of
Deficiencies or Violations.    Verigy will
report in reasonable detail to Agilent the following events or circumstances
promptly after any executive officer of Verigy or any member of the Verigy
Board of Directors becomes aware of such matter: (A) all actual or
potential significant deficiencies and material weaknesses in the design or
operation of internal

 

12

 

control over financial reporting which are reasonably
likely to adversely affect Verigy’s ability to record, process, summarize and
report financial information; (B) any fraud, whether or not material, that
involves management or other employees who have a significant role in Verigy’s
internal control over financial reporting; (C) any illegal act within the
meaning of Section 10A(b) and (f) of the Exchange Act; and
(D) any report of a material violation of law that an attorney
representing any Verigy Group member has formally made to any officers or
directors of Verigy pursuant to the SEC’s attorney conduct rules (17 C.F.R.
Part 205).

 

6.2.    Other Covenants.    In
addition to the other covenants contained in this Agreement and the Transaction
Documents, Verigy hereby covenants and agrees that, for so long as Agilent
beneficially owns at least fifty percent (50%) of the total voting power of all
classes of then outstanding share capital of Verigy entitled to vote generally
in the election of directors (“Verigy Voting
Shares”):

 

(a)   Verigy
will not, without the prior written consent of Agilent (which Agilent may
withhold in its sole and absolute discretion), take, or cause to be taken,
directly or indirectly, any action, including making or failing to make any
election under the law of any state, which has the effect, directly or
indirectly, of restricting or limiting the ability of Agilent to freely sell,
transfer, assign, pledge or otherwise dispose of Verigy Ordinary Shares or
would restrict or limit the rights of any transferee of Agilent as a holder of
Verigy Ordinary Shares. Without limiting the generality of the foregoing,
Verigy will not, without the prior written consent of Agilent (which Agilent
may withhold in its sole and absolute discretion), take any action, or take any
action to recommend to its shareholders any action, which would among other
things, limit the legal rights of, or deny any benefit to, Agilent as a Verigy
shareholder either (i) solely as a result of the amount of Verigy Ordinary
Shares owned by Agilent or (ii) in a manner not applicable to Verigy
shareholders generally.

 

(b)   Verigy
will not, without the prior written consent of Agilent (which it may withhold
in its sole and absolute discretion), issue any Verigy Share Capital or any
rights, warrants or options to acquire Verigy Share Capital (including, without
limitation, securities convertible into or exchangeable for Verigy Share
Capital), if after giving effect to such issuances and considering all of the
shares of Verigy Share Capital acquirable pursuant to such rights, warrants and
options to be outstanding on the date of such issuance (whether or not then
exercisable), Agilent would own less than fifty percent (50%) of the Verigy
Voting Shares.

 

(c)   To
the extent that Agilent is a party to any Contracts that provide that certain
actions or inactions of Agilent Affiliates (which for purposes of such Contract
includes any member of the Verigy Group) may result in Agilent being in breach
of or in default under such Contracts and Agilent has advised Verigy of the
existence, and has furnished Verigy with copies, of such Contracts (or the relevant
portions thereof), Verigy will not take or fail to take, as applicable, and
Verigy will cause the other members of the Verigy Group not to take or fail to
take, as applicable, any actions that would reasonably be expected to result in
Agilent being in breach of or in default under any such Contract. The parties
acknowledge and agree that from time to time Agilent may in good faith (and
without the effect of imposing restrictions on Verigy pursuant to this covenant
that are not generally applicable to Agilent’s Subsidiaries) enter into
additional Contracts or amendments to existing Contracts that provide that
certain actions or inactions of Agilent Subsidiaries or Affiliates (including,
for purposes of this Section 6.2(c), members of the Verigy Group) may
result in Agilent being in breach of or in default under such Contracts. In
such event, provided Agilent has notified Verigy of such additional Contracts
or amendments to existing Contracts, and has furnished Verigy with copies of
such additional Contracts or amendments to existing Contracts (or relevant
portions thereof), Verigy will not thereafter take or fail to take, as
applicable, and Verigy will cause the other members of the Verigy Group not to
take or fail to take, as applicable, any actions that would reasonably be
expected to result in Agilent being in breach of or in default under any such
additional Contracts or amendments to existing Contracts. Agilent acknowledges
and agrees that Verigy will not be deemed in breach of this Section 6.2(c)
to the extent that, prior to being notified by Agilent of, and furnished with
copies of, an additional Contract or an amendment to an existing Contract
pursuant to this Section 6.2(c), a Verigy Group member

 

13

 

already has taken or
failed to take one or more actions that would otherwise constitute a breach of
this Section 6.2(c) had such action(s) or inaction(s) occurred after such
notification, provided that Verigy does not, after notification by Agilent,
take any further action or fail to take any action that contributes further to
such breach or default. Verigy agrees that any Information provided to it
pursuant to this Section 6.2(c) will constitute Information that is
subject to Verigy’s obligations under Article 7.

 

6.3    Covenants Regarding the
Incurrence of Indebtedness.

 

(a)   Verigy
covenants and agrees that prior to the consummation of the IPO, Verigy will
not, and Verigy will not permit any other member of the Verigy Group to,
without Agilent’s prior written consent (which Agilent shall not withhold
unreasonably), directly or indirectly, solicit, initiate or encourage any
negotiations or discussions with respect to any offer or proposal for Verigy
Indebtedness (other than any such negotiations or discussions regarding
ordinary course non-convertible Verigy Indebtedness).

 

(b)   Verigy
covenants and agrees, that, notwithstanding any other provision in this
Agreement to the contrary, prior to the consummation of the IPO, Verigy will
not, and Verigy will not permit any other member of the Verigy Group to,
without Agilent’s prior written consent (which Agilent may withhold in its sole
and absolute discretion), directly or indirectly, incur any Verigy Indebtedness
(other than Inter-Group Indebtedness). Verigy covenants and agrees that after
the consummation of the IPO and through the Distribution Date, Verigy will not,
and Verigy will not permit any other member of the Verigy Group to, without
Agilent’s prior written consent (which Agilent may withhold in its sole and
absolute discretion), directly or indirectly, incur any Verigy Indebtedness.

 

6.4.    Release of Guarantees and
Substitution of Deposits.    Verigy shall cause
Agilent to be released, on or prior to October 31, 2007, from the
guarantees, security deposits, pledges, letters of credit and other security
obligations (the “Security Obligations”)
relating to Verigy’s obligations and operations as set forth in Schedule 6.4. For the avoidance of
doubt, Agilent shall have no obligation to Verigy under this Agreement to
maintain any Security Obligation beyond October 31, 2007.

 

6.5.    Reimbursement of Agilent
Payments under the Flextronics Transfer Agreements.    If
and to the extent that Agilent makes any payments to Flextronics on or prior to
the Separation Date in respect of Agilent’s obligations under the Flextronics
Transfer Agreements (the “Agilent
Flextronics Payments”), Verigy shall reimburse Agilent for the
entire amount of the Agilent Flextronics Payments within thirty (30) days
after the IPO Settlement Date.

 

6.6.    Agilent Covenant to Provide
Additional Amounts to Verigy Based on IPO Proceeds Amount.    If
and to the extent that the proceeds to Verigy from the IPO (net of underwriters’
discounts and commissions) (the “IPO Net
Proceeds”) are less than $140 million (the “IPO Target Amount”), then Agilent shall
make a payment or otherwise transfer value to Verigy, within thirty
(30) days after the IPO Settlement Date, in an amount equal to
(x) the IPO Target Amount less (y) the IPO Net Proceeds. The form and
manner of such payment or value transfer shall be as mutually agreed between
the Parties.

 

ARTICLE VII

 

ACCESS TO INFORMATION

 

7.1.    Restrictions on Disclosure of
Information.

 

(a)    Generally.    Without
limiting any rights or obligations under any other existing or future agreement
between the parties and/or any other members of their respective Group relating
to confidentiality, for five (5) years after the Separation Date each
party will, and each party will cause its respective Group members and its
Representatives to, hold in strict confidence, with at least the same degree of
care that applies to Agilent’s confidential and proprietary Information
pursuant to policies in effect as of the Separation Date, all confidential and
proprietary Information concerning the other

 

14

 

Group that is either in
its possession as of the Separation Date or furnished by the other Group or its
respective Representatives at any time pursuant to this Agreement, any
Transaction Document or the transactions contemplated hereby or thereby.
Notwithstanding the foregoing, each party, its respective Group members and its
Representatives, may disclose such Information to the extent that such party
can demonstrate that such Information is or was (i) in the public domain
other than by the breach of this Agreement or by breach of any other agreement
between or among the parties and/or any of their respective Group members
relating to confidentiality, or (ii) lawfully acquired from a third Person
on a non-confidential basis or independently developed by, or on behalf of,
such party by Persons who do not have access to, or descriptions of, any such
Information. Each party will maintain, and will cause its respective Group members
and Representatives to maintain, policies and procedures, and develop such
further policies and procedures as will from time to time become necessary or
appropriate, to ensure compliance with this Section 7.1.

 

(b)    Disclosure of Third Person
Information.    Verigy acknowledges that it and
other members of the Verigy Group may have in its or their possession
confidential or proprietary Information of third Persons that was received
under confidentiality or non-disclosure agreement with such third Person while
part of Agilent. Verigy will cause each of its employees and contractors to
enter into customary non-disclosure agreements in a form acceptable to Agilent
and shall enforce such agreements in accordance with their terms.

 

7.2.    Legally Required Disclosure
of Information.    If either party or any of its
respective Group members or Representatives becomes legally required to
disclose any Information (the “Disclosing
Party”) that it is otherwise obligated to hold strict confidence
pursuant to Section 7.1, such party will promptly notify the Person that
owns the Information (the “Owning Party”)
and will use all commercially reasonable efforts to cooperate with the Owning
Party so that the Owning Party may seek a protective order or other appropriate
remedy and/or waive compliance with this Section 7.2. All expenses
reasonably incurred by the Disclosing Party in seeking a protective order or
other remedy will be borne by the Owning Party. If such protective order or
other remedy is not obtained, or if the Owning Party waives compliance with
this Section 7.2, the Disclosing Party will (a) disclose only that
portion of the Information which its legal counsel advises it is compelled to
disclose or otherwise stand liable for contempt or suffer other similar significant
corporate censure or penalty, (b) use all commercially reasonable efforts
to obtain reliable assurance requested by the Owning Party that confidential
treatment will be accorded such Information, and (c) promptly provide the
Owning Party with a copy of the Information so disclosed, in the same form and
format so disclosed, together with a list of all Persons to whom such
Information was disclosed.

 

7.3.    Access to Information.    During
the Retention Period (as defined in Section 7.4 below), each party will
cooperate with and afford, and will cause its respective Group members and
Representatives to cooperate with and afford, to the other party reasonable
access upon reasonable advance written request to all Information (other than
Information which is (a) protected from disclosure by the attorney-client
privilege or work product doctrine, (b) proprietary in nature,
(c) the subject of a confidentiality agreement between such party and a
third Person which prohibits disclosure to the other party, or
(d) prohibited from disclosure under applicable law) owned by such party
or one of its Group members or within such party’s or any of its respective
Group member’s or Representative’s possession which is created prior to the
Distribution Date and which relates to the requesting party’s (the “Requestor”) business, assets or
liabilities, and such access is reasonably required by the Requestor
(i) to comply with requirements imposed on the Requestor by any
governmental authority, (ii) for use in any proceeding (except for a
litigation matter between the parties or any of their respective Group
members), (iii) to satisfy audit, accounting, Tax or similar requirements,
(iv) to obtain insurance, or (v) to comply with the Requestor’s
obligations under this Agreement or any Transaction Document. As used in this
Agreement, “access” will mean the
obligation of a party in possession of Information (the “Possessor”) requested by the Requestor to
exert its commercially reasonable efforts to locate all requested Information
that is owned and/or possessed by Possessor or any respective Group members

 

15

 

or Representatives. The
Possessor, at its own expense, will conduct a diligent search designed to
identify all requested Information and will collect all such Information for
inspection by the Requestor during normal business hours at the Possessor’s
place of business. Subject to such confidentiality and/or security obligations
as the Possessor may reasonably deem necessary, the Requestor may have all
requested Information duplicated at Requestor’s expense. Alternatively, the
Possessor may choose to deliver, at the Requestor’s expense, all requested
Information to the Requestor in the form requested by the Requestor. The Possessor
will notify the Requestor in writing at the time of delivery if such
Information is to be returned to the Possessor. In such case, the Requestor
will return such Information when no longer needed to the Possessor at the
Possessor’s expense. In connection with providing Information pursuant to this
Section 7.3, each party hereto will, upon the request of the other party
and upon reasonable advance notice, make available during normal business hours
its respective employees (and those employees of its respective Group members
and Representatives, as applicable) to the extent that they are reasonably
necessary to discuss and explain all requested Information with and to the
Requestor.

 

7.4.    Record Retention.    Verigy
will, and Verigy will cause each of the other Verigy Group members to, adopt
and comply with a record retention policy with respect to Information owned by
or in the possession of the Verigy Group and which is created prior to the
Distribution Date that is no less stringent than Agilent’s record retention
policy in effect as of the Separation Date or as Agilent may modify such policy
during the three (3) year period subsequent to the Distribution Date,
provided that Agilent notifies Verigy of any such modifications. Each party
will, at its sole cost and expense, preserve and retain all Information in its
respective possession or control that the other party has the right to access
pursuant to Section 7.3 or that it is required to preserve and retain in
accordance with such record retention policy or for any longer period as may be
required by (a) any government agency, (b) any litigation matter,
(c) applicable law, or (d) any Transaction Document (as applicable,
the “Retention Period”). If
either party wishes to dispose of any Information which it is obligated to
retain under this Section 7.4 prior to the expiration of the Retention
Period, then that party will first provide forty-five (45) days’ written
notice to the other party, and the other party will have the right, at its
option but at the expense of the party that desires to dispose of such
Information, upon prior written notice within such 45-day period, to take
possession of such Information within ninety (90) days after the date of
the notice provided pursuant to this Section 7.4. Written notice of intent
to dispose of such Information will include a description of the Information in
detail sufficient to allow the other party to reasonably assess its potential
need to retain such materials.

 

7.5.    Production of Witnesses.    For
no less than seven (7) years after the Separation Date, each party will
use commercially reasonable efforts, and will cause each of its respective
Group members to use commercially reasonable efforts, to make available to each
other, upon written request, its past and present Representatives as witnesses
to the extent that any such Representatives may reasonably be required (giving
consideration to the business demands upon such Representatives) in connection
with any legal, administrative or other proceedings in which the requesting
party may from time to time be involved.

 

7.6.    Reimbursement.    Unless
otherwise provided in this Article VII, each party providing access to
Information or witnesses to the other party pursuant to Sections 6.3, 6.4 or
6.5 will be entitled to receive from the receiving party, upon the presentation
of invoices therefor, payment for all reasonable, out-of-pocket costs and
expenses (excluding allocated compensation, salary and overhead expenses) as
may be reasonably incurred in providing such Information or witnesses.

 

7.7.    Other Agreements Regarding
Access to Information.    The rights and
obligations of the parties under this Article 7 are subject to any
specific limitations, qualifications or additional provisions on the sharing,
exchange or confidential treatment of Information set forth in this Agreement
or any Transaction Document.

 

16

 

7.8.    Acquisition of Verigy or All
or any Portion of the Retained Business by another Person.    In
the event Agilent or Verigy enters into an agreement with a third Person to
sell, directly or indirectly, all or any portion of the Retained Business or of
the Business, respectively, whether by a stock or asset sale, merger or
otherwise, Agilent and Verigy each covenants and agrees in connection with any
such disposition not to disclose any Information of Verigy or relating to the
Business or of Agilent or relating to the Retained Business, respectively, to
such third Person without the other party’s express written consent which may
be withheld in the other party’s sole discretion.

 

ARTICLE VIII

 

ADDITIONAL COVENANTS AND OTHER
MATTERS

 

8.1.    Performance.    Agilent
will cause to be performed, and hereby guarantees the performance of, all
actions, agreements and obligations set forth in this Agreement or in any
Transaction Document to be performed by any member of the Agilent Group. Verigy
will cause to be performed, and hereby guarantees the performance of, all
actions, agreements and obligations set forth in this Agreement or in any
Transaction Document to be performed by any member of the Verigy Group. Each
party further agrees that it will cause its other Group members not to take any
action or fail to take any action inconsistent with such party’s obligations
under this Agreement, any Transaction Document or the transactions contemplated
hereby or thereby.

 

8.2.    Existing Litigation Matters.    Verigy
agrees that the existing litigation matters listed on Schedules 1 and 2 (the “Existing Litigation Matters”) of the
Litigation Disclosure Letter constitute pre-existing Third Party Claims, as
that term is defined below in Section 9.3(d)(i), which were initiated
prior to the Separation Date and for which proper notice has been given. The
parties further agree that the Existing Litigation Matters will remain and be
treated as Third Party Claims after the Separation Date. Verigy agrees to
indemnify, defend and hold harmless Agilent for the Existing Litigation Matters
pursuant to the terms of indemnification set forth below in Article 9 for
any and all Damages incurred or suffered by Agilent whether such Damages arise
or accrue prior to, on or following the Separation Date.

 

8.3.    Insurance Matters.

 

(a)    Directors’ and Officers’
Insurance.    Verigy and its Covered
Subsidiaries, and each of their directors and officers will be covered under
Agilent’s directors’ and officers’ insurance program until the Distribution
Date. Verigy will promptly pay or reimburse Agilent, as the case may be, for
all costs and expenses associated with this coverage that are allocated by
Agilent to Verigy and its Covered Subsidiaries in accordance with Agilent’s
practice with respect to the Business as of the Separation Date. Verigy and its
counsel may review said policies upon request. Agilent will continue to provide
such coverage to Verigy and its Covered Subsidiaries, and each of their
directors and officers in connection with any extension of Agilent’s current
directors’ and officers’ insurance program or under any new director’s and
officers’ insurance program until the Distribution Date. Verigy will reimburse
Agilent for any incremental costs or expenses incurred by Agilent, to the
extent that such costs or expenses are identifiable, in connection with
covering Verigy and its Covered Subsidiaries, and each of their directors and
officers under any new insurance program or extension of the current insurance
program that Agilent determines, in the exercise of its reasonable discretion,
to be attributable to the coverage for Verigy, its Covered Subsidiaries or any
of their directors or officers. Verigy acknowledges that such directors’ and
officers’ insurance coverage will terminate as of the Distribution Date, and
Verigy covenants and agrees that it will take appropriate steps to secure
directors’ and officers’ insurance coverage for itself, its Subsidiaries and
each of their directors and officers as of the Distribution Date. For claims
made by Verigy under insurance programs made available to Verigy pursuant to
this Section 8.3(a), Agilent will allocate a portion of Agilent’s
deductible to Verigy in accordance with the schedule set forth on
Schedule 8.3(a) and Agilent shall be responsible for the payment to Verigy
of any portion of the applicable deductible not allocated to Verigy.

 

17

 

(b)    Other Insurance.    Except
as set forth in Section 8.3(a) with respect to directors’ and officers’
insurance, during the period from the Separation Date through the Distribution
Date, Agilent will, subject to insurance market conditions and other factors
beyond Agilent’s reasonable control, maintain, for the protection of Verigy and
its Covered Subsidiaries, policies of insurance that are comparable to those
maintained generally for Agilent and its Covered Subsidiaries during the same
period. Verigy will promptly pay or reimburse Agilent, as the case may be, for
all costs and expenses associated therewith that are allocated by Agilent to
Verigy and its Covered Subsidiaries in accordance with (i) Agilent’s
practice with respect to the Business as of the Separation Date, or
(ii) the terms of the Transition Services Agreement, as applicable. To the
extent Agilent purchases a new type of insurance, or an amount or level of
insurance not previously purchased by Agilent in order to protect, at least in
part, Verigy or any of its Covered Subsidiaries, that portion of the costs and
expenses of such insurance attributable to Verigy or any of its Covered
Subsidiaries, as determined in Agilent’s sole discretion, shall be reimbursed
by Verigy. For claims made by Verigy under insurance programs made available to
Verigy pursuant to this Section 8.3(b), Agilent will allocate a portion of
Agilent’s deductible to Verigy in accordance with the schedule set forth on
Schedule 8.3(b) and Agilent shall be responsible for the payment to Verigy
of any portion of the applicable deductible not allocated to Verigy.

 

(c)    Payments and Reimbursements.    All
payments and reimbursements by Verigy pursuant to this Section 8.3 will be
made within thirty (30) days after Verigy’s receipt of an invoice therefor
from Agilent.

 

(d)    Changes in Costs or Expenses.    The
costs and expenses for which Verigy is obligated to pay or reimburse Agilent
pursuant to this Section 8.3 will be based on Agilent’s current insurance
costs and expenses as of the Separation Date and will be appropriately adjusted
as a result of any changes in those costs and expenses after the Separation
Date, although the methodology upon which such costs and expenses is based will
remain the same.

 

(e)    Notification of Changes.    Agilent
agrees to provide Verigy not less than sixty (60) days advance written
notice (or such shorter notice as may be necessary under the circumstances) in
the event it elects (or any of its insurers notifies Agilent in writing of such
insurer’s election) to cancel or effect any modification of the terms and
conditions of any Agilent insurance policy that provides coverage to Verigy or
any of its Covered Subsidiaries that is materially adverse to Verigy or any of
its Covered Subsidiaries, which notice will include the anticipated date of
cancellation or a description of such modification, as applicable.

 

(f)    Historical Loss Data.    For
no less than seven (7) years after the Separation Date, Agilent will use
commercially reasonable efforts to make available to Verigy, upon written
request, historical insurance loss Information relating to the Business and any
other Information relating to Agilent’s historic insurance program with respect
to the Business. Any such Information provided to Verigy pursuant to this
provision will also be subject to the provisions of Section 7.3.

 

(g)    Post Distribution Date.    Verigy
acknowledges and agrees that from and after the Distribution Date (i) no
member of the Agilent Group will purchase or maintain, or cause to be purchased
or maintained, any insurance policy for the protection of Verigy, its Covered
Subsidiaries, any member of the Verigy Group or any of their respective
directors and officers, (ii) the Verigy Group (including Verigy and its
Covered Subsidiaries) will purchase insurance coverage sufficient to protect
its interests and (iii) no member of the Verigy Group will be entitled to
pursue claims against any insurance policies of the Agilent Group.

 

18

 

8.4.    Export Control Compliance.    From
the Separation Date through the Distribution Date, Verigy agrees not to, and
Verigy will cause each other member of the Verigy Group not to, export,
re-export or otherwise transfer any commodities or technology received from any
member of the Agilent Group in connection with the Transfer or otherwise,
except in accordance with applicable export control regulations, including,
without limitation, the applicable export control regulations of the United States.
This Section 8.4 will survive termination of this Agreement for any reason
whatsoever.

 

8.5.    Conduct of Business between
Separation Date and the IPO Settlement Date.    From
the Separation Date through the IPO Settlement Date, Verigy will (and Verigy
will cause each of the other Verigy Group members to) conduct its operations in
the Ordinary Course of Business. Without limiting the generality of the
foregoing, prior to the IPO Settlement Date, Verigy will not (and Verigy will
cause each of the other Verigy Group members not to), without the written
consent of Agilent, which consent may be withheld in Agilent’s sole discretion,
take any action outside the Ordinary Course of Business, including, without
limitation: (a) the incurrence of any capital expenditures or Liabilities
outside of the Ordinary Course of Business not previously approved by Agilent
prior to the Separation Date; (b) the acquisition of any businesses or
other Assets outside of the Ordinary Course of Business, by means of merger, consolidation
or otherwise; or (c) any loans, advances or capital contributions to, or
investments in, any other Person (other than members of the Verigy Group).

 

8.6.    Conduct of Business between
IPO Settlement Date and Distribution Date.    Subject
to any additional restrictions in the Tax Sharing Agreement, during the period
from the IPO Settlement Date through the Distribution Date, Verigy covenants
and agrees that the Verigy Group as a whole will not, without Agilent’s prior
written consent (which Agilent may withhold in its sole and absolute
discretion): (a) acquire any businesses or other Assets outside the
Ordinary Course of Business, by means of merger, consolidation or otherwise, of
any other Person, with an aggregate value of more than $50 million for all
such acquisitions, (b) dispose of Assets held by the Verigy Group outside
the Ordinary Course of Business, by sale or otherwise, with an aggregate value
of more than $50 million for all such dispositions, or (c) acquire
any equity or debt securities of any other Person, with an aggregate value of
more than $25 million for all such acquisitions.

 

ARTICLE IX

 

INDEMNIFICATION

 

9.1.    Indemnification by Verigy
Group.    Subject to the provisions hereof,
Verigy will, and Verigy will cause any member of the Verigy Group that receives
any Transferred Asset, Transferred License, Transferred Intellectual Property
Rights or Business Technology or assumes any Assumed Liability pursuant to the
terms of this Agreement or any Transaction Document (and each of their respective
successors and assigns) to, jointly and severally indemnify, defend and hold
harmless Agilent, each member of the Agilent Group, each of their respective
past and present Representatives, and each of their respective successors and
assigns (collectively, the “Agilent
Indemnified Parties”) from and against any and all Damages incurred
or suffered by the Agilent Indemnified Parties arising or resulting from the
following, whether such Damages arise or accrue prior to, on or following the
Separation Date:

 

(a)   The
failure of Verigy or any other member of the Verigy Group or any other Person
to pay, perform or otherwise properly discharge any of the Assumed Liabilities
in accordance with their respective terms;

 

(b)   The
Assumed Liabilities;

 

(c)   Any
breach by Verigy or any member of the Verigy Group of this Agreement or any
Transaction Document; and

 

19

 

(d)   Any
untrue statement or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact required to be stated therein or
necessary to make the statements therein not misleading, with respect to all
information contained in, or incorporated by reference into, the IPO
Registration Statement and any other documents filed with the SEC in connection
with the IPO or the transactions contemplated in this Agreement, other than
with respect to the Agilent Disclosure Portions;

 

it being understood that Verigy will have no liability
to the Agilent Indemnified Parties if it shall be proven that the Damages
incurred by the Agilent Indemnified Parties were the direct result of an action
or failure to act by Verigy or any member of the Verigy Group at the written
direction of Agilent.

 

9.2.    Indemnification by Agilent
Group.    Subject to the provisions hereof,
Agilent will, and Agilent will cause any member of the Agilent Group that
transfers any Transferred Asset, Transferred License, Transferred Intellectual
Property Rights or Business Technology pursuant to the terms of this Agreement
or any Transaction Document (and each of their respective successors and
assigns) to, jointly and severally indemnify, defend and hold harmless each
member of the Verigy Group, each of their respective past and present
Representatives, and each of their respective successors and assigns
(collectively, the “Verigy Indemnified
Parties”) from and against any and all Damages incurred or suffered
by the Verigy Indemnified Parties arising or resulting from the following
whether such Damages arise or accrue prior to, on or following the Separation
Date:

 

(a)   The
failure of Agilent or any other member of the Agilent Group or any other Person
to pay, perform or otherwise properly discharge any of the Excluded Liabilities
in accordance with their respective terms;

 

(b)   The
Excluded Liabilities;

 

(c)   Any
breach by Agilent or any member of the Agilent Group of this Agreement or any
Transaction Document;

 

(d)   An
action or failure to act by Verigy or any member of the Verigy Group at the
written direction of Agilent; and

 

(e)   The
Agilent Disclosure Portions.

 

9.3.    Claim Procedure.

 

(a)    Claim Notice.    A
party that seeks indemnity under this Article 9 (an “Indemnified Party”) will give written
notice (a “Claim Notice”) to the
party from whom indemnification is sought (an “Indemnifying
Party”), whether the Damages sought arise from matters solely
between the parties or from Third Party Claims. The Claim Notice must contain
(i) a description and, if known, estimated amount (the “Claimed Amount”) of any Damages incurred
or reasonably expected to be incurred by the Indemnified Party, (ii) a
reasonable explanation of the basis for the Claim Notice to the extent of facts
then known by the Indemnified Party, and (iii) a demand for payment of
those Damages. No delay or deficiency on the part of the Indemnified Party in
so notifying the Indemnifying Party will relieve the Indemnifying Party of any
Liability or obligation hereunder except to the extent of any Damages caused by
or arising out of such failure.

 

(b)    Response to Notice of Claim.    Within
thirty (30) days after delivery of a Claim Notice, the Indemnifying Party
will deliver to the Indemnified Party a written response in which the
Indemnifying Party will either: (i) agree that the Indemnified Party is
entitled to receive all of the Claimed Amount and, in which case, the
Indemnifying Party will pay the Claimed Amount in accordance with a payment and
distribution method reasonably acceptable to the Indemnified Party; or
(ii) dispute that the Indemnified Party is entitled to receive all or any
portion of the Claimed Amount, in which case, the parties will resort to the
dispute resolution procedures set forth in Section 10.3.

 

20

 

(c)    Contested Claims.    In
the event that the Indemnifying Party disputes the Claimed Amount, as soon as
practicable but in no event later than ten (10) days after the receipt of
the notice referenced in Section 9.3(b)(ii) hereof, the parties will
begin the process to resolve the matter in accordance with the dispute
resolution provisions of Section 10.3 hereof. Upon ultimate resolution
thereof, the parties will take such actions as are reasonably necessary to
comply with such agreement or instructions.

 

(d)    Third Party Claims.

 

(i)    In
the event that the Indemnified Party receives notice or otherwise learns of the
assertion by a Person who is not a member of either Group of any claim or the
commencement of any Action (collectively, a “Third-Party
Claim”) with respect to which the Indemnifying Party may be
obligated to provide indemnification under this Article 9, the Indemnified
Party will give written notification to the Indemnifying Party of the
Third-Party Claim. Such notification will be given within five (5) days after
receipt by the Indemnified Party of notice of such Third-Party Claim, will be
accompanied by reasonable supporting documentation submitted by such third
party (to the extent then in the possession of the Indemnified Party) and will
describe in reasonable detail (to the extent known by the Indemnified Party)
the facts constituting the basis for such Third-Party Claim and the amount of
the claimed Damages; provided, however, that no delay or deficiency on
the part of the Indemnified Party in so notifying the Indemnifying Party will
relieve the Indemnifying Party of any Liability or obligation hereunder except
to the extent of any Damages caused by or arising out of such failure. Within
twenty (20) days after delivery of such notification, the Indemnifying
Party may, upon written notice thereof to the Indemnified Party, assume control
of the defense of such Third-Party Claim with counsel reasonably satisfactory
to the Indemnified Party. During any period in which the Indemnifying Party has
not so assumed control of such defense, the Indemnified Party will control such
defense.

 

(ii)   The
party not controlling such defense (the “Non-controlling
Party”) may participate therein at its own expense; provided, however,
that if the Indemnifying Party assumes control of such defense and the
Indemnified Party concludes, upon the written opinion of counsel, that the
Indemnifying Party and the Indemnified Party have conflicting interests or
different defenses available with respect to such Third-Party Claim, the reasonable
fees and expenses of counsel to the Indemnified Party will be considered “Damages” for purposes of this Agreement.
The party controlling such defense (the “Controlling
Party”) will keep the Non-controlling Party reasonably advised of
the status of such Third-Party Claim and the defense thereof and will consider
in good faith recommendations made by the Non-controlling Party with respect
thereto. The Non-controlling Party will furnish the Controlling Party with such
Information as it may have with respect to such Third-Party Claim (including
copies of any summons, complaint or other pleading which may have been served
on such party and any written claim, demand, invoice, billing or other document
evidencing or asserting the same) and will otherwise cooperate with and assist
the Controlling Party in the defense of such Third-Party Claim.

 

(iii)  The
Indemnifying Party will not agree to any settlement of, or the entry of any
judgment arising from, any such Third-Party Claim without the prior written
consent of the Indemnified Party, which consent will not be unreasonably
withheld or delayed; provided, however, that the consent of the
Indemnified Party will not be required if (A) the Indemnifying Party
agrees in writing to pay any amounts payable pursuant to such settlement or
judgment, and (B) such settlement or judgment includes a full, complete
and unconditional release of the Indemnified Party from further Liability. The
Indemnified Party will not agree to any settlement of, or the entry of any judgment
arising from, any such Third-Party Claim without the prior written consent of
the Indemnifying Party, which consent will not be unreasonably withheld or
delayed.

 

9.4.    Survival; Limitations.

 

(a)   All
covenants and agreements of the parties contained in this Agreement will
survive each of the Transfer, the IPO and the Distribution. The rights and
obligations of Agilent, Verigy and each of

 

21

 

their respective
Indemnified Parties under this Agreement will survive the sale, assignment or
other transfer by any party of any Assets or Liabilities.

 

(b)   The
amount of any Damages for which indemnification is provided under this
Agreement will be net of any amounts actually recovered by the Indemnified
Party from any third Person with respect to such Damages. Any Indemnifying
Party hereunder will be subrogated to the rights of the Indemnified Party upon
payment in full of the amount of the relevant indemnifiable Damages. If any
Indemnified Party recovers an amount from a third Person in respect of Damages
for which indemnification is provided in this Agreement after the full amount
of such indemnifiable Damages has been paid by an Indemnifying Party or after
an Indemnifying Party has made a partial payment of such indemnifiable Damages
and the amount received from the third Person exceeds the remaining unpaid
balance of such indemnifiable Damages, then the Indemnified Party will promptly
remit to the Indemnifying Party the excess (if any) of (X) the sum of the
amount theretofore paid by such Indemnifying Party in respect of such
indemnifiable Damages plus the amount received from the third Person in respect
thereof, less (Y) the full amount of such indemnifiable Damages.

 

(c)   Any
indemnification payment made under this Agreement will be characterized for Tax
purposes as a contribution or distribution or payment of an assumed or retained
liability, as applicable.

 

(d)   Notwithstanding
the joint and several indemnification obligations of each Group as set forth in
Sections 9.1 and 9.2, the parties agree that the indemnification obligation of
any Agilent Group member or Verigy Group member, as applicable, for Damages
will be satisfied by a direct payment from Agilent or Verigy, as applicable, to
the other party irrespective of which Group member is found liable for Damages.

 

(e)   Notwithstanding
anything to the contrary in Section 9.1 or Section 9.2,
(i) indemnification with respect to Taxes shall be governed exclusively by
the Tax Sharing Agreement, (ii) to the extent the Intellectual Property
Matters Agreement specifically provides indemnification with respect to
Third-Party Claims for infringement of Intellectual Property rights, the
Intellectual Property Matters Agreement shall govern with respect to that
indemnification, and (iii) to the extent the Employee Matters Agreement
specifically provides indemnification with respect to certain employee-related
Assumed Liabilities, the Employee Matters Agreement shall govern with respect
to that indemnification. To the extent indemnification is not provided in such
Transaction Documents, the terms of this Agreement shall govern.

 

(f)    NOTWITHSTANDING
ANY OTHER PROVISION OF THIS AGREEMENT OR ANY ANCILLARY AGREEMENT TO THE
CONTRARY, IN NO EVENT WILL EITHER PARTY OR ANY OF ITS GROUP MEMBERS BE LIABLE
FOR ANY SPECIAL, INCIDENTAL, INDIRECT, COLLATERAL, CONSEQUENTIAL OR PUNITIVE
DAMAGES OR LOST PROFITS SUFFERED BY AN INDEMNIFIED PARTY (COLLECTIVELY, “UNFORESEEN DAMAGES”), HOWEVER CAUSED AND
ON ANY THEORY OF LIABILITY, IN CONNECTION WITH ANY DAMAGES ARISING HEREUNDER OR
THEREUNDER; PROVIDED, HOWEVER, THAT TO THE EXTENT AN INDEMNIFIED
PARTY IS REQUIRED TO PAY ANY SPECIAL, INCIDENTAL, INDIRECT, COLLATERAL,
CONSEQUENTIAL OR PUNITIVE DAMAGES OR LOST PROFITS TO A PERSON WHO IS NOT A MEMBER
OF EITHER GROUP IN CONNECTION WITH A THIRD PARTY CLAIM, SUCH DAMAGES WILL
CONSTITUTE DIRECT DAMAGES AND NOT SUBJECT TO THE LIMITATION SET FORTH IN THIS
SECTION 8.4(g).

 

ARTICLE X

 

MISCELLANEOUS

 

10.1.    Governing Law.    The
internal laws of the State of New York shall govern the construction,
interpretation and other matters arising out of or in connection with this
Agreement and, unless

 

22

 

expressly provided
therein, each Transaction Document, and each of the exhibits and schedules
hereto and thereto (whether arising in contract, tort, equity or otherwise).

 

10.2.    Jurisdiction.    If
any Dispute arises out of or in connection with this Agreement or any
Transaction Document, except as expressly contemplated by another provision of
this Agreement or any Transaction Document, the parties irrevocably (and the
parties will cause each other member of their respective Group to irrevocably)
(a) consent and submit to the exclusive jurisdiction of federal and state
courts located in New York, New York, (b) waive any objection to that
choice of forum based on venue or to the effect that the forum is not
convenient, and (c) WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT
TO TRIAL OR ADJUDICATION BY JURY.

 

10.3.    Dispute Resolution.

 

(a)    Amicable Resolution.    Agilent
and Verigy mutually desire that friendly collaboration will continue between
them. Accordingly, they will try, and they will cause their respective Group
members to try, to resolve in an amicable manner all disagreements and
misunderstandings connected with their respective rights and obligations under
this Agreement or any Transaction Document, including any amendments hereto or
thereto. In furtherance thereof, in the event of any dispute or disagreement (a
“Dispute”) between any Agilent
Group member and any Verigy Group member as to the interpretation of any
provision of this Agreement or any Transaction Document executed in connection
herewith or therewith (or the performance of obligations hereunder or
thereunder), then unless otherwise provided in any Transaction Document, the
matter, upon written request of either party, will be referred for resolution
to a steering committee established pursuant to this Section 10.3(a) (the “Dispute Committee”). The Dispute Committee
will have four (4) members, two (2) of whom will be appointed by
Agilent and two (2) of whom will be appointed by Verigy. The Dispute
Committee will make a good faith effort to promptly resolve all Disputes
referred to it. Dispute Committee decisions made with the unanimous consent of
the Dispute Committee will be binding on Agilent and Verigy. Notwithstanding
anything to the contrary in this Article 10, any amendment to the terms of
this Agreement or any Transaction Document may only be effected in accordance
with Section 10.10.

 

(b)    Mediation and Alternate
Dispute Resolution.    If the Dispute Committee
is unable to resolve the Dispute as contemplated by Section 10.3(a),
either Agilent or Verigy may demand non-binding mediation of the Dispute by
written notice to the other in which case the two parties will select a
mediator within ten (10) days after the demand. Neither party may
unreasonably withhold consent to the selection of the mediator. The parties may
agree to replace mediation with some other form of non-binding alternative
dispute resolution process (“ADR”)
such as neutral fact finding or mini-trial. The use of any ADR procedures will
not be construed under the doctrines of laches, waiver or estoppel to affect adversely
the rights of either party. Each of Agilent and Verigy will bear its own costs
of mediation or other form of ADR, but both parties will share the costs of the
mediator or other arbiter equally.

 

(c)    Non-Exclusive Remedy.    Nothing
in this Section 10.3 will prevent either Agilent or Verigy from commencing
formal litigation proceedings or seeking injunctive or similar relief at any
time without regard to the provisions in subsections (a) and
(b) above.

 

(d)    Commencement of Dispute
Resolution Procedure.    Notwithstanding
anything to the contrary in this Agreement or any Transaction Document, Agilent
and Verigy are the only members of their respective Group entitled to commence
a dispute resolution procedure under this Agreement, whether pursuant to
Section 9.3, this Section 10.3 or otherwise, and each party will
cause its respective Group members not to commence any dispute resolution
procedure other than through such party as provided in this
Section 10.3(d).

 

10.4.    Notices.    Each
party giving any notice required or permitted under this Agreement or any
Transaction Document will give the notice in writing and use one of the
following methods of delivery

 

23

 

to the party to be
notified, at the address set forth below or another address of which the
sending party has been notified in accordance with this Section 10.4:
(a) personal delivery; (b) facsimile or telecopy transmission with a
reasonable method of confirming transmission; (c) commercial overnight
courier with a reasonable method of confirming delivery; or (d) pre-paid,
United States of America certified or registered mail, return receipt
requested. Notice to a party is effective for purposes of this Agreement or any
Transaction Document only if given as provided in this Section 10.4 and
will be deemed given on the date that the intended addressee actually receives
the notice. 

 

	
  If to
  Agilent:

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
  Agilent Technologies, Inc.

  	
   

  	
  Simpson Thacher &
  Bartlett LLP

  
	
  395 Page Mill Road

  	
   

  	
  2550 Hanover Street

  
	
  Palo Alto, California
  94306

  	
   

  	
  Palo Alto, California
  94304

  
	
  Attention: General Counsel

  	
   

  	
  Attention: William H.
  Hinman Jr., Esq.

  
	
  Facsimile: 650-752-

  	
   

  	
  Facsimile: (650) 251-5002

  
	
   

  	
   

  	
   

  
	
  If to
  Verigy:

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
  Verigy Ltd.

  	
   

  	
  O’Melveny & Myers LLP

  
	
  395 Page Mill Road

  	
   

  	
  275 Battery Street, Suite
  2600

  
	
  Palo Alto, California
  94306

  	
   

  	
  San Francisco, California

  
	
  Attention: Kenneth M.
  Siegel, Esq.

  	
   

  	
  Attention: Michael J.
  Kennedy, Esq.

  
	
  Facsimile: (650) 752-5772

  	
   

  	
  Facsimile: (415) 984-8701

  

 

10.5.    Binding Effect and
Assignment.    This Agreement and each
Transaction Document binds and benefits the parties and their respective
successors and assigns. Notwithstanding anything in Section 7.8 to the
contrary, neither party may assign any of its rights or delegate any of its
obligations under this Agreement or any Transaction Document without the
written consent of the other party which consent may be withheld in such party’s
sole and absolute discretion and any assignment or attempted assignment in
violation of the foregoing will be null and void. Notwithstanding the preceding
sentence, Agilent may assign this Agreement and any Transaction Document in
connection with a merger transaction in which Agilent is not the surviving
entity or the sale of all or substantially all of its assets.

 

10.6.    Severability.    If
any provision of this Agreement or any Transaction Document is determined to be
invalid, illegal or unenforceable, the remaining provisions of this Agreement
or such Transaction Document, as the case may be, remain in full force, if the
essential terms and conditions of this Agreement or such Transaction Document,
as the case may be, for each party remain valid, binding and enforceable.

 

10.7.    Entire Agreement.    This
Agreement, together with the Transaction Documents and each of the exhibits and
schedules appended hereto and thereto, constitutes the final agreement between
the parties, and is the complete and exclusive statement of the parties’
agreement on the matters contained herein and therein. All prior and
contemporaneous negotiations and agreements between the parties with respect to
the matters contained herein and therein are superseded by this Agreement and
the Transaction Documents, as applicable. In the event of any conflict between
any provision in this Agreement and any provision in an Ancillary Agreement,
the provisions of this Agreement will control over the provisions in such
Ancillary Agreement. In the event of any conflict between (a) any
provision in this Agreement or any Ancillary Agreement, on the one hand, and
(b) any specific provision in any Transaction Document, on the other hand,
pertaining to the subject matter of such Transaction Document, the specific
provisions in such Transaction Document will control over the provisions in
this Agreement or such Ancillary Agreement, as applicable.

 

10.8.    Counterparts.    The
parties may execute this Agreement and any Transaction Document in multiple
counterparts, each of which constitutes an original as against the party that
signed it, and all

 

24

 

of which together
constitute one agreement. The signatures of both parties need not appear on the
same counterpart. The delivery of signed counterparts by facsimile or email transmission
that includes a copy of the sending party’s signature is as effective as
signing and delivering the counterpart in person.

 

10.9.    Expenses.    The
responsibility for payment of costs, fees and expenses relating to the IPO, the
Distribution, the Separation and the Transfer will be as set forth in the
General Assignment and Assumption Agreement, the Tax Sharing Agreement and the
Employee Matters Agreement.

 

10.10.    Amendment.    The
parties may amend this Agreement or any Transaction Document only by a written
agreement signed by each party to be bound by the amendment and that identifies
itself as an amendment to this Agreement or such Transaction Document, as
applicable.

 

10.11.    Waiver.    The
parties may waive a provision of this Agreement or an Transaction Document only
by a writing signed by the party intended to be bound by the waiver. A party is
not prevented from enforcing any right, remedy or condition in the party’s
favor because of any failure or delay in exercising any right or remedy or in
requiring satisfaction of any condition, except to the extent that the party
specifically waives the same in writing. A written waiver given for one matter
or occasion is effective only in that instance and only for the purpose stated.
A waiver once given is not to be construed as a waiver for any other matter or
occasion. Any enumeration of a party’s rights and remedies in this Agreement or
any Transaction Document is not intended to be exclusive, and a party’s rights
and remedies are intended to be cumulative to the extent permitted by law and
include any rights and remedies authorized in law or in equity.

 

10.12.    Authority.    Each
of the parties represents to the other that (a) it has the corporate or
other requisite power and authority to execute, deliver and perform this
Agreement and each of the Transaction Documents to which it is a party,
(b) the execution, delivery and performance of this Agreement and each of
the Transaction Documents to which it is a party have been duly authorized by
all necessary corporate or other action, (c) it has duly and validly
executed and delivered this Agreement and each of the Transaction Documents to
which it is a party, and (d) this Agreement and each of the Transaction
Documents to which it is a party is a legal, valid and binding obligation,
enforceable against it in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting creditors’ rights generally and general equity principles.

 

10.13.    Termination.

 

(a)   This
Agreement and any Transaction Document may be terminated at any time prior to
the Separation Date by and in the sole discretion of Agilent without the
approval of Verigy in which case neither party will have any liability of any
kind to the other party.

 

(b)   The
obligations of the parties under Article V (including the obligation to
pursue or effect the Distribution) may be terminated by Agilent if (i) at
any time after the Separation Date Agilent determines, in its sole and absolute
discretion, that the Distribution would not be in the best interests of Agilent
or its stockholders or (ii) the Distribution has not occurred by
December 31, 2006.

 

[SIGNATURE PAGES FOLLOW]

 

25

 

IN
WITNESS WHEREOF,
the Parties have caused this Master Separation and Distribution Agreement to be
duly executed as of the date first above written. 

 

	
   

  	
  AGILENT
  TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  JOHN EATON

  
	
   

  	
   

  	
  Name:    John
  Eaton

  Title:    Vice President, Corporate Development

  

 

 

[AGILENT’S SIGNATURE PAGE TO THE MASTER SEPARATION
AGREEMENT—

VERIGY’S SIGNATURE PAGE FOLLOWS]

 

 

	
   

  	
  VERIGY LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  KEITH L.
  BARNES

  
	
   

  	
   

  	
  Name:    Keith
  L. Barnes

  Title:    President and Chief Executive Officer

  

 

[VERIGY’S SIGNATURE PAGE TO THE MASTER SEPARATION AND
DISTRIBUTION AGREEMENT]

 

 

ANNEX A

 

The following terms, as
used in this Agreement, have the following meanings:

 

”Action” means any suit, arbitration,
inquiry, proceeding or investigation by or before any court, governmental or
other regulatory or administrative agency or commission or any arbitration
tribunal asserted by a Person.

 

”ADR” has the meaning set forth in
Section 10.3(b) of this Agreement.

 

”Affiliate” of any specified Person means
any other Person directly or indirectly “controlling,”
“controlled by,” or “under common control with” (within the
meaning of the Securities Act), such specified Person; provided, however,
that for purposes of this Agreement, unless this Agreement expressly provides
otherwise, the determination of whether a Person is an Affiliate of another
Person will be made assuming that no member of the Agilent Group is an
Affiliate of any member of the Verigy Group.

 

”Agilent” has the meaning set forth in the
preamble to this Agreement.

 

”Agilent Annual Statements” has the meaning
set forth in Section 6.1(b)(ii) of this Agreement.

 

”Agilent Common Stock” means the common
stock, $0.01 par value, of Agilent.

 

”Agilent Disclosure Portions” means all
(a) information set forth in, incorporated by reference into, or omitted
from, the IPO Registration Statement to the extent relating exclusively to
(i) the Agilent Group, (ii) the Retained Business, (iii) Agilent’s
intentions with respect to the Distribution, or (iv) the terms of the
Distribution, including, without limitation, the form, structure and terms of
any transaction(s) and/or offering(s) to effect the Distribution and the timing
of and conditions to the consummation of the Distribution and
(b) information publicly disclosed by Agilent outside of the IPO
Registration Statement to the extent relating exclusively to (x) the items
enumerated in subparagraphs (i)-(iv) above, or (y) Verigy (including,
without limitation, financial information about the “STS Segment”), in each
case to the extent that such information is attributed to Verigy and/or Verigy’s
directors and officers, for liability purposes under the Securities Act of
1933, as amended, or the Securities Exchange Act of 1934, as amended. For the
avoidance of doubt, information publicly disclosed by Verigy Employees or
Verigy Transferred Employees shall not be deemed to be information publicly
disclosed by Agilent notwithstanding that such Verigy Employees or Verigy
Transferred Employees may have been employees of Agilent at the time of the
public disclosure.

 

”Agilent Group” means Agilent and each
Person that is an Affiliate of Agilent (other than any member of the Verigy
Group) immediately after the Separation Date, and each other Person that
becomes an Affiliate of Agilent after the Separation Date.

 

”Agilent Indemnified Parties” has the
meaning set forth in Section 9.1 of this Agreement.

 

”Agilent Public Filings” has the meaning
set forth in Section 6.1(a)(xii) of this Agreement.

 

”Agilent’s Auditors” has the meaning set
forth in Section 6.1(b)(ii) of this Agreement.

 

”Agilent Tax Group” has the meaning set
forth in the Tax Sharing Agreement.

 

”Agreement” has the meaning set forth in
the preamble to this Agreement.

 

”Ancillary Agreement” has the meaning set
forth in the General Assignment and Assumption Agreement.

 

”Annual Financial Statements” has the
meaning set forth in Section 6.1(a)(v) of this Agreement.

 

”Assets” means assets, properties and
rights (including goodwill and rights arising under Contracts), wherever
located (including in the possession of vendors, other Persons or elsewhere),
whether real, personal or mixed, tangible, intangible or contingent, in each
case whether or not recorded or reflected or required to be recorded or
reflected on the books and records or financial statements of any Person.

 

 

”Assumed Liabilities” has the meaning set
forth in the General Assignment and Assumption Agreement.

 

”Business” means the portion of Agilent’s
business conducted by Agilent and its Subsidiaries in the design, development,
research, manufacture, supply, distribution, sale, support and maintenance of
Automated Semiconductor Test Systems through its Semiconductor Test Solutions
business, but not through any other Agilent business even if in support of the
Semiconductor Test Solutions business, and specifically excludes
(a) Agilent’s central research laboratory, called Agilent Labs, and
(b) research and development being conducted by Agilent Labs as of the
Separation Date.

 

”Business Day” means a day other than a
Saturday, a Sunday or a day on which banking institutions located in San
Francisco, California are authorized or obligated by law or executive order to
close.

 

”Business Technology” has the meaning set
forth in the Intellectual Property Matters Agreement.

 

”Claimed Amount” has the meaning set forth
in Section 9.3(a) of this Agreement.

 

”Claim Notice” has the meaning set forth in
Section 9.3(a) of this Agreement.

 

”Code” means the Internal Revenue Code of
1986, as amended.

 

”Contracts” means any written or oral
commitment, contract, subcontract, license, sublicense, lease, understanding,
instrument, indenture, note or legally binding commitment or undertaking of any
nature.

 

”Controlling Party” has the meaning set
forth in Section 9.3(d)(ii) of this Agreement.

 

”Covered Subsidiary” means a corporation or
other legal entity controlled or owned, directly or indirectly, by Agilent or
Verigy, as applicable, that satisfies the definition of “Subsidiary” under an
Agilent insurance policy.

 

”Damages” means all losses, claims,
demands, damages, Liabilities, judgments, dues, penalties, assessments, fines
(civil, criminal or administrative), costs, liens, forfeitures, settlements,
fees or expenses (including reasonable attorneys’ fees and expenses and any
other expenses reasonably incurred in connection with investigating,
prosecuting or defending a claim or Action), of any nature or kind, whether or
not the same would properly be reflected on a balance sheet.

 

”Dispute” has the meaning set forth in
Section 10.3(a) of this Agreement.

 

”Dispute Committee” has the meaning set
forth in Section 10.3(a)(i) of this Agreement.

 

”Distribution” has the meaning set forth in
the Recitals to this Agreement.

 

”Distribution Agent” has the meaning set
forth in Section 5.4(a) of this Agreement.

 

”Distribution Date” means the date on which
the Distribution occurs.

 

”Employee Matters Agreement” means that
certain Employee Matters Agreement entered into by and between Agilent and
Verigy effective as of the Separation Date, as such Employee Matters Agreement
may be amended from time to time.

 

”Exchange Act” means the Securities
Exchange Act of 1934, as amended from time to time, together with the rules and
regulations promulgated thereunder.

 

”Excluded Liabilities” has the meaning set
forth in the General Assignment and Assumption Agreement.

 

”Existing Litigation Matters” has the
meaning set forth in Section 8.4.

 

”Financial Statements” means the Annual
Financial Statements and Quarterly Financial Statements collectively.

 

”GAAP” means U.S. generally accepted accounting
principles, consistently applied.

 

 

”General Assignment and Assumption Agreement”
has the meaning set forth in the recitals to this Agreement.

 

”Group” means either the Agilent Group or
the Verigy Group, as the context requires.

 

”Indemnified Party” has the meaning set
forth in Section 9.3(a) of this Agreement.

 

”Indemnifying Party” has the meaning set
forth in Section 9.3(a) of this Agreement.

 

”Information” means information, whether or
not patentable or copyrightable, in written, oral, electronic or other tangible
or intangible forms, stored in any medium, including studies, reports, records,
books, contracts, instruments, surveys, discoveries, ideas, concepts, know-how,
techniques, designs, specifications, drawings, blueprints, diagrams, models,
prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes,
computer programs or other software, marketing plans, customer names,
communications by or to attorneys (including attorney-client privileged
communications), memos and other materials prepared by attorneys or under their
direction (including attorney work product), and other technical, financial,
employee or business information or data.

 

”Intellectual Property Matters Agreement”
means that certain Intellectual Property Matters Agreement entered into by and
between Agilent and Verigy effective as of the Separation Date, as such
Intellectual Property Matters Agreement may be amended from time to time.

 

”Intellectual Property Rights” has the
meaning set forth in the Intellectual Property Matters Agreement.

 

”Inter-Group Indebtedness” means
indebtedness for borrowed funds between a member of the Agilent Group and a
member of the Verigy Group as set forth on the Agilent Treasury capitalization
plan.

 

”IPO” has the meaning set forth in the
Recitals to this Agreement.

 

”IPO Registration Statement” means the
registration statement on Form S-1 (SEC File No. 333-132291) as filed
by Verigy with the SEC in connection with the IPO, together with all amendments
and supplements thereto.

 

”IPO Settlement Date” means the date on
which the First Time of Delivery (as defined in the Underwriting Agreement)
occurs.

 

”IRS” means the United States Internal
Revenue Service.

 

”Liabilities” means debts, liabilities,
guarantees, assurances, commitments and obligations of any nature or
description, whether fixed, contingent or absolute, asserted or unasserted,
matured or unmatured, liquidated or unliquidated, accrued or not accrued, known
or unknown, due or to become due, whenever or however arising (including,
without limitation, whether arising out of (i) any Contract or tort based
on negligence or strict liability or (ii) any act or failure to act by any
past or present Representative, whether or not such act or failure to act was
within such Representative’s authority), and whether or not the same would be
required by GAAP to be reflected in financial statements or disclosed in the
notes thereto.

 

”Litigation Disclosure Letter” has the
meaning set forth in the General Assignment and Assumption Agreement.

 

”Loan Facility Agreement” has the meaning
set forth in Section 4.1 of this Agreement.

 

”Manufacturing Trademark License Agreement”
means that certain Manufacturing Trademark License Agreement entered into by
and between Agilent and Verigy effective as of the Separation Date, as such
Manufacturing Trademark License Agreement may be amended from time to time.

 

”Non-controlling Party” has the meaning set
forth in Section 9.3(d)(ii) of this Agreement.

 

”Ordinary Course of Business” means in the
ordinary course of the operation of the Business.

 

”Owning Party” has the meaning set forth in
Section 7.2 of this Agreement.

 

 

”Party” or “Parties” has the meaning set forth in the preamble to this
Agreement.

 

”Person” means an individual, corporation,
partnership, limited liability company, association, trust, incorporated
organization, other entity or group (as defined in Section 13(d)(3) of the
Exchange Act).

 

”Possessor” has the meaning set forth in
Section 7.3 of this Agreement.

 

”Quarterly Financial Statements” has the
meaning set forth in Section 6.1(a)(iv) of this Agreement.

 

”Record Date” means the close of business
on the date to be determined by Agilent’s Board of Directors as the record date
for determining the stockholders of Agilent entitled to receive Verigy Ordinary
Shares pursuant to the Distribution.

 

”Regulation S-K” means
Regulation S-K of the General Rules and Regulations promulgated by the SEC
pursuant to the Securities Act.

 

”Regulation S-X” means
Regulation S-X of the General Rules and Regulations promulgated by the SEC
pursuant to the Securities Act.

 

”Representatives” means, with respect to
any Person, any of such Person’s directors, officers, employees, agents,
consultants, advisors, accountants or attorneys.

 

”Requestor” has the meaning set forth in
Section 7.3 of this Agreement.

 

”Retained Business” has the meaning set
forth in the General Assignment and Assumption Agreement.

 

”Retention Period” has the meaning set
forth in Section 7.4 of this Agreement.

 

”SEC” means the United States Securities
and Exchange Commission or any successor agency.

 

”Securities Act” means the Securities Act
of 1933, as amended from time to time, together with the rules and regulations
promulgated thereunder.

 

”Separation Date” has the meaning set forth
in the General Assignment and Assumption Agreement.

 

”Subsidiary” or “Subsidiaries” of Verigy, Agilent or any other Person means
any corporation, partnership or other legal entity of which Verigy, Agilent or
such other Person, as the case may be (either alone or through or together with
any other Subsidiary), owns, directly or indirectly, more than 50% of the stock
or other equity interests the holder of which is generally entitled to vote for
the election of the board of directors or other governing body of such corporation
or other legal entity.

 

”Tax” and “Taxes”
have the meanings set forth in the Tax Sharing Agreement.

 

”Tax Advisor” has the meaning set forth in
the Tax Sharing Agreement.

 

”Tax Control” means the definition of “control”
set forth in Section 368(c) of the Code.

 

”Tax Sharing Agreement” means that certain
Tax Sharing Agreement entered into by and between Agilent and Verigy effective
as of the Separation Date, as such Tax Sharing Agreement may be amended from
time to time.

 

”Third-Party Claim” has the meaning set
forth in Section 9.3(d)(i) of this Agreement.

 

”Transaction Documents” has the meaning set
forth in Section 3.1.

 

”Transfer” has the meaning set forth in the
Recitals to this Agreement.

 

”Transferred Assets” has the meaning set
forth in the General Assignment and Assumption Agreement.

 

”Transferred Intellectual Property Rights”
has the meaning set forth in the Intellectual Property Matters Agreement.

 

”Transferred Licenses” has the meaning set
forth in the Intellectual Property Matters Agreement.

 

 

”Transition Services Agreement” means the
Transition Services Agreement entered into by and between Agilent and Verigy
effective as of the Separation Date, as such Transition Services Agreement may
be amended from time to time.

 

”Underwriters” means the managing
underwriters for the IPO as described in the IPO Registration Statement.

 

”Underwriting Agreement” means the
Underwriting Agreement between Verigy and the Underwriters relating to the IPO,
as amended from time to time.

 

”Verigy” has the meaning set forth in the
preamble to this Agreement.

 

”Verigy Group” means Verigy, each Person
that Verigy directly or indirectly controls (within the meaning of the
Securities Act) on or after the Separation Date.

 

”Verigy Indebtedness” means (i) all
outstanding obligations for senior debt and subordinated debt and any other
outstanding obligation for borrowed money, including that evidenced by notes,
bonds, debentures or other instruments (and including all outstanding
principal, prepayment premiums, if any, and accrued interest, fees and expenses
related thereto), (ii) any outstanding obligations under capital leases
and purchase money obligations (other than as included in Accounts Payable),
(iii) any amounts owed with respect to drawn letters of credit and
(iv) any outstanding guarantees of obligations of the type described in
clauses (i) through (iii) above, in each case of any member of the
Verigy Group.

 

”Verigy Indemnified Parties” has the
meaning set forth in Section 9.2 of this Agreement.

 

”Verigy Ordinary Shares” means the ordinary
shares of Verigy.

 

”Verigy Public Documents” has the meaning
set forth in Section 6.1(a)(viii) of this Agreement.

 

”Verigy Share Capital” means all classes or
series of capital stock of Verigy, including the Verigy Ordinary Shares, and
all options, warrants and other rights to acquire such capital stock.

 

”Verigy Tax Group” has the meaning set
forth in the Tax Sharing Agreement.

 

”Verigy Transfer Agent” means the transfer
agent and registrar for the Verigy Ordinary Shares.

 

”Verigy Voting Shares” has the meaning set
forth in Section 6.2 of this Agreement.

 

”Verigy’s Auditors” has the meaning set
forth in Section 6.1(b)(i) of this Agreement.

 

 

Schedule 1

 

Investments in Subsidiaries

 

	
  1.

  	
  Verigy US Inc., a
  Delaware corporation.

  
	
   

  	
   

  
	
  2.

  	
  Verigy (US)
  Development Inc., a Delaware corporation.

  
	
   

  	
   

  
	
  3.

  	
  Verigy (Canada) Inc.,
  a company organized under the federal laws of Canada.

  
	
   

  	
   

  
	
  4.

  	
  Verigy France, a company
  organized under the laws of France.

  
	
   

  	
   

  
	
  5.

  	
  Verigy Germany GmbH, a
  private limited liability company organized under the laws of Germany.

  
	
   

  	
   

  
	
  6.

  	
  Verigy Italia S.r.L., a
  limited liability company organized under the laws of Italy.

  
	
   

  	
   

  
	
  7.

  	
  Verigy K.K., a company
  organized under the laws of Japan.

  
	
   

  	
   

  
	
  8.

  	
  Verigy Korea Ltd., a
  limited liability company organized under the laws of Korea.

  
	
   

  	
   

  
	
  9.

  	
  Verigy (Netherlands) BV, a
  private limited liability company organized under the laws of the
  Netherlands.

  
	
   

  	
   

  
	
  10.

  	
  Verigy (Singapore)
  Pte. Ltd., a private limited company organized under the laws of
  Singapore.

  
	
   

  	
   

  
	
  11.

  	
  Verigy (Malaysia) Sdn.
  Bhd.

  

 

 

Schedule 6.4

Security Obligations 

 

	
  Beneficiary/Location

  	
   

  	
  Form of Security

  	
   

  	
  Amount

  	
   

  
	
  Citibank
  (US)

  	
   

  	
  Pledge

  	
   

  	
  US

  	
  1,575,000

  	
   

  
	
  Citibank
  (Canada)

  	
   

  	
  Pledge

  	
   

  	
  CAD

  	
  105,000

  	
   

  
	
  Citibank
  (Asia)

  	
   

  	
  Pledge

  	
   

  	
   

  	
   

  	
   

  
	
  Citibank
  (Europe)

  	
   

  	
  Pledge

  	
   

  	
   

  	
   

  	
   

  
	
  Landlord/Hsinchu

  	
   

  	
  Cash
  Deposit

  	
   

  	
  TWD

  	
  248,200

  	
   

  
	
  Landlord/Kaohsiung

  	
   

  	
  Cash
  Deposit

  	
   

  	
  TWD

  	
  251,000

  	
   

  
	
  Landlord/Bundang

  	
   

  	
  Cash
  Deposit

  	
   

  	
  KRW

  	
  171,307,700

  	
   

  
	
  Landlord/Osaka

  	
   

  	
  Cash
  Deposit

  	
   

  	
  JPY

  	
  3,999,234

  	
   

  
	
  Landlord/Fort
  Collins

  	
   

  	
  Cash
  Deposit

  	
   

  	
  US

  	
  31,338

  	
   

  
	
  Landlord/Shanghai

  	
   

  	
  Cash
  Deposit

  	
   

  	
  CNY

  	
  683,193

  	
   

  
	
  Landlord/Englewood

  	
   

  	
  Cash
  Deposit

  	
   

  	
  US

  	
  16,672

  	
   

  
	
  Landlord/Paris

  	
   

  	
  Cash
  Deposit

  	
   

  	
  EUR

  	
  9,539

  	
   

  
	
  Landlord/Burlington

  	
   

  	
  Cash
  Deposit

  	
   

  	
  US

  	
  17,000

  	
   

  
	
  Landlord/Chungli

  	
   

  	
  Cash
  Deposit

  	
   

  	
  TWD

  	
  1,662,000

  	
   

  
	
  Landlord/Hachioji

  	
   

  	
  Cash
  Deposit

  	
   

  	
  JPY

  	
  113,984,400

  	
   

  
	
  Landlord/Boeblingen

  	
   

  	
  Bank
  Guarantee

  	
   

  	
  EUR

  	
  670,803

  	
   

  
	
  Landlord/Yishun

  	
   

  	
  Bank
  Guarantee

  	
   

  	
  SGD

  	
  136,261

  	
   

  
	
  Landlord/Milan

  	
   

  	
  Bank
  Guarantee

  	
   

  	
  EUR

  	
  10,278

  	
   

  
	
  Landlord/Paris

  	
   

  	
  Bank
  Guarantee

  	
   

  	
  EUR

  	
  38,158

  	
   

  
	
  Landlord/Grenoble

  	
   

  	
  Bank
  Guarantee

  	
   

  	
  EUR

  	
  19,401

  	
   

  
	
  Landlord/Cupertino

  	
   

  	
  Bank
  Guarantee

  	
   

  	
  US

  	
  5,000,000

  	
   

  
	
  Singapore
  Duty

  	
   

  	
  Bank
  Guarantee

  	
   

  	
  US

  	
  1,000,000

  	
   

  
	
  Japan
  Duty

  	
   

  	
  Bank
  Guarantee

  	
   

  	
  JPY

  	
  200,000,000

  	
   

  
	
  Taiwan
  Duty

  	
   

  	
  Bank
  Guarantee

  	
   

  	
  NTD

  	
  8,500,000

  	
   

  
	
  China
  Duty

  	
   

  	
  Bank
  Guarantee

  	
   

  	
  USD

  	
  200,000

  	
   

  

 

 

Schedule 8.3(a) and (b)

 

	
  Line
  of Coverage

  	
   

  	
  Verigy Financial

  Responsibility*

  	
   

  
	
  D&O
  Liability

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  Fiduciary
  Liability

  	
   

  	
  $

  	
  50,000

  	
   

  
	
  Special
  Contingency

  	
   

  	
  None

  	
   

  
	
  Primary
  General Liability

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  Primary Auto
  Liability

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  Primary
  International Liability

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  Umbrella/Excess
  Liability

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  Errors and
  Omissions Liability

  	
   

  	
  $

  	
  750,000

  	
   

  
	
  Int’l local
  policies

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  Aircraft
  Products Liability

  	
   

  	
  None

  	
   

  
	
  Property
  & Business Interruption**

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  Cargo /
  Transit

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  Crime &
  Fidelity

  	
   

  	
  $

  	
  200,000

  	
   

  

 

*                                         Where Agilent Technologies, Inc. etal
maintains a larger deductible under its corporate insurance programs for the
lines of coverage listed, Verigy shall be responsible for the amount listed in
the column labeled “Verigy Financial Responsibility”. Agilent shall be
responsible for bearing any deductible in excess of these amounts under its
corporate insurance programs for any insurable claim made prior to the
Distribution Date.

 

**           Excludes
losses due to earth movement or acts of terrorism.

 

 

EXHIBIT G

SHARE SUBSCRIPTION AGREEMENT

 

This
Subscription Agreement (this “Agreement”)
is made and entered into this 31st day of May, 2006 by and between Agilent
Technologies, Inc., a Delaware corporation (“Agilent”) and Verigy Ltd., a company organized under
the laws of Singapore (together with its successors and assigns, “Verigy”) (each, a “Party” and, collectively, the “Parties”).

 

WHEREAS,
Agilent and Verigy have entered into a Master Separation and Distribution
Agreement, dated as of May 31, 2006 (the “Master
Separation Agreement”) and the other ancillary agreements referred
to therein;

 

WHEREAS,
Verigy is currently a wholly-owned subsidiary of Agilent; and

 

WHEREAS,
the execution of this Agreement by each of the Parties is a condition to the
consummation of the transactions contemplated by the Master Separation
Agreement.

 

Capitalized
terms used herein but not defined shall have the meaning ascribed thereto in
the Stockholders Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants and
agreements set forth below, and other good and valuable consideration, the
receipt and adequacy of which is hereby acknowledged, the parties hereby agree
as follows:

 

1.             Agilent hereby subscribes, as of
the date hereof, for forty-nine million, nine hundred ninety-nine thousand nine
hundred and ninety-nine (49,999,999) ordinary shares of Verigy (the “Shares”) at a price of $10.70 per share,
or an aggregate of $535 million.

 

2.             Agilent represents and warrants to
Verigy as follows: (i) the execution, delivery and performance by Agilent
of this Agreement does not and will not require any consent, approval,
authorization or other governmental order of, action by, filing with or
notification to any governmental authority or any other consent or approval by
a third party; and (ii) Agilent is an “accredited investor” as that term
is defined in Rule 501 of Regulation D under the Securities Act.

 

3.             Verigy represents and warrants to
Agilent as follows: (i) the execution, delivery and performance by Verigy
of this Agreement does not and will not require any consent, approval,
authorization or other governmental order of, action by, filing with or
notification to any governmental authority or any other consent or approval by
a third party; and (ii) the issuance of the Shares has been duly and
validly authorized and the Shares, when issued, sold and delivered in
accordance with the terms hereof for the consideration expressed herein, will
be duly and validly allotted and issued, fully paid and non-assessable and free
and clear of all liens and other encumbrances.

 

4.             This Agreement shall be governed by
and construed in accordance with the laws of Singapore. For the avoidance of
doubt, a person who is not a party to this Agreement has no rights under the
Contracts (Rights of Third Parties) Act, Chapter 53B of Singapore to enforce
any term of this Agreement, but this does not affect any right or remedy which
exists or is available apart from that Act.

 

 

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

 

	
   

  	
  Agilent
  Technologies, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  Verigy Ltd.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Exhibit
10.66

 

TABLE OF CONTENTS

 

	
  MASTER SEPARATION AND
  DISTRIBUTION AGREEMENT

  	
   

  
	
  W I T N E S S E T H

  	
   

  
	
  ARTICLE I DEFINITIONS AND
  RULES OF CONSTRUCTION

  	
   

  
	
  ARTICLE II PURCHASE PRICE
  AND ALLOCATION

  	
   

  
	
  ARTICLE III DOCUMENTS AND
  ITEMS TO BE DELIVERED ON THE SEPARATION DATE

  	
   

  
	
  ARTICLE IV THE IPO AND
  ACTIONS PENDING THE IPO

  	
   

  
	
  ARTICLE V THE DISTRIBUTION

  	
   

  
	
  ARTICLE VI FINANCIAL AND
  OTHER COVENANTS

  	
   

  
	
  ARTICLE VII ACCESS TO
  INFORMATION

  	
   

  
	
  ARTICLE VIII ADDITIONAL
  COVENANTS AND OTHER MATTERS

  	
   

  
	
  ARTICLE IX INDEMNIFICATION

  	
   

  
	
  ARTICLE X MISCELLANEOUS

  	
   

  
	
  ANNEX A

  	
   

  
	
  Schedule 1 Investments in
  Subsidiaries

  	
   

  
	
  Schedule 6.4 Security
  Obligations

  	
   

  
	
  Schedule 8.3(a) and (b)

  	
   

  
	
  EXHIBIT G SHARE
  SUBSCRIPTION AGREEMENTExhibit 10.67

 

GENERAL ASSIGNMENT AND ASSUMPTION
AGREEMENT 

between 

AGILENT TECHNOLOGIES, INC. 

and 

VERIGY LTD. 

Dated as of June 1, 2006

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE I DEFINITIONS AND
  RULES OF CONSTRUCTION

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.2

  	
  Rules of Construction

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II TRANSFER OF
  ASSETS AND ASSUMPTION OF LIABILITIES

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  Transfer of Assets

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.2

  	
  Assumption by Verigy of
  Certain Liabilities; Retention by Agilent of Remaining Liabilities

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.3

  	
  Transfer of Transferred
  Assets and Assumed Liabilities.

  	
  4

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.4

  	
  Approvals and Consents

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.5

  	
  Novation and Assignment

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.6

  	
  Consents for Real Property
  Assignments

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.7

  	
  No Representation or
  Warranties.

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.8

  	
  Mistaken Assignments and Assumptions.

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.9

  	
  Litigation 

  	
  8
  

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.10

  	
  Shared Contracts

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III MISCELLANEOUS
  AGREEMENTS OF THE PARTIES

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Miscellaneous

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.2

  	
  Conflicting Agreements

  	
  9

  

 

i

 

GENERAL ASSIGNMENT AND ASSUMPTION
AGREEMENT

 

This General Assignment
and Assumption Agreement is dated as of June 1, 2006 (the “Agreement”), between Agilent
Technologies, Inc., a Delaware corporation (“Agilent”), and Verigy Ltd., a company organized under
the laws of Singapore (together with its successors and assigns, “Verigy”) (each, a “Party” and collectively, the “Parties”).

 

W I T N E S S E T H:

 

WHEREAS, Agilent and its Subsidiaries hereby and
by certain other instruments transfer or will transfer to Verigy and its
Subsidiaries substantially all of the assets of the Business owned by Agilent
and its Subsidiaries, and Verigy and its Subsidiaries assume or will assume
certain liabilities relating to the Business, in each case effective as of the
Effective Date and in accordance with the Master Separation and Distribution
Agreement, dated as of May 31, 2006, between the Parties (the “Master Separation Agreement”).

 

WHEREAS, it is the intent of the Parties, by
this Agreement and the other agreements and instruments provided for in the
Master Separation Agreement, that Agilent and its Subsidiaries convey to Verigy
and its Subsidiaries substantially all of the business and assets of the
Business.

 

WHEREAS, it is further intended between the
Parties that Verigy assume certain of the liabilities related to the Business,
as provided in this Agreement, the Master Separation Agreement or the other
agreements and instruments provided for in the Master Separation Agreement.

 

NOW,
THEREFORE, in
consideration of the mutual covenants herein contained and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:

 

ARTICLE I

 

DEFINITIONS AND RULES OF CONSTRUCTION

 

1.1    Definitions.

 

Unless otherwise provided
herein, capitalized terms used in this Agreement have the meanings ascribed to
them by definition in this Agreement or in Annex
A.

 

1.2    Rules of Construction.

 

(a)   This
Agreement shall be construed without regard to any presumption or rule
requiring construction or interpretation against the Party drafting or causing
any instrument to be drafted.

 

(b)   The
words “hereof, “herein” and “hereunder” and words of similar import when used
in this Agreement will refer to this Agreement as a whole (including any
annexes, exhibits and schedules to this Agreement) and not to any particular
provision of this Agreement, and section and subsection references are to this
Agreement unless otherwise specified. The words “include”, “including”, or “includes”
when used herein shall be deemed in each case to be followed by the words “without
limitation” or words having similar import. The headings and table of contents
in this Agreement are included for convenience of reference only and will not
limit or otherwise affect the meaning or interpretation of this Agreement. The
meanings given to terms defined herein will be equally applicable to both the
singular and plural forms of such terms.

 

1

 

ARTICLE II

 

TRANSFER OF ASSETS AND ASSUMPTION OF
LIABILITIES

 

2.1    Transfer of Assets.

 

(a)   Upon
the terms and subject to the conditions set forth in this Agreement, effective
on the Separation Date (subject to subsection (c) hereof), Agilent shall
or shall cause one or more of its Subsidiaries to assign, transfer, convey and
deliver to Verigy or one or more of its Subsidiaries, and Verigy or such
Subsidiaries shall accept from Agilent or such Subsidiaries, all of Agilent’s
and such Subsidiaries’ respective right, title and interest in and to the
Transferred Assets.

 

(b)   Upon
the terms and subject to the conditions set forth in the Intellectual Property
Matters Agreement, effective on the Separation Date (subject to subsection
(c) hereof), Agilent shall or shall cause one or more of its Subsidiaries
to assign, transfer, convey and deliver to Verigy or one or more of its
Subsidiaries, and Verigy or such Subsidiaries shall accept from Agilent or such
Subsidiaries, all of Agilent’s and such Subsidiaries’ respective right, title
and interest in and to the Transferred Licenses, the Transferred Intellectual
Property Rights and the Business Technology.

 

(c)   Such
assignment, transfer or conveyance will be effective as of such times as
provided in each respective Ancillary Agreement or any other Transaction
Agreement and will be subject to the terms and conditions of this Agreement,
any applicable Ancillary Agreement or other Transaction Agreement.

 

2.2    Assumption by Verigy of
Certain Liabilities; Retention by Agilent of Remaining Liabilities.

 

(a)   Upon
the terms and subject to the conditions set forth in this Agreement, effective
on the Separation Date, Verigy or one or more of its Subsidiaries shall assume,
pay, perform and discharge when due any and all liabilities, obligations, guarantees
(including lease guarantees), commitments, damages, losses, debts, claims,
demands, judgments or settlements of any nature or kind, whether known or
unknown, fixed, accrued, absolute or contingent, liquidated or unliquidated,
matured or unmatured, (collectively, “Liabilities”)
of Agilent and its Subsidiaries to the extent (but only to the extent) arising
out of or relating to the Business or its predecessors, the Transferred Assets,
the Transferred Licenses, the Transferred Intellectual Property Rights or the
Business Technology, whether arising on, prior to or after the Separation Date,
other than the Excluded Liabilities (the “Assumed
Liabilities”). Without in any way limiting the generality of the
foregoing, except to the extent any such Liability is an Excluded Liability,
the Assumed Liabilities shall include, without limitation, the following:

 

(i)    all
Liabilities of Agilent or its Subsidiaries arising on, prior to or after the
Separation Date under the Assumed Contracts and the Transferred Licenses;

 

(ii)   all
Liabilities of Agilent and its Subsidiaries in respect of the products sold or
manufactured by the Business or its predecessors at any time, including
Liabilities for refunds, adjustments, allowances, repairs, exchanges, returns
and warranty, merchantability and other claims arising on, prior to or after
the Separation Date;

 

(iii)  all
Liabilities arising on, prior to, or after the Separation Date for any actual
or alleged infringement or misappropriation with respect to the Business or its
predecessors of (A) the rights of any other Person relating to
Intellectual Property Rights, or (B) any right of any other Person
pursuant to any license, sublicense or agreement relating to Intellectual
Property Rights including the Transferred Licenses;

 

(iv)  all
accounts payable due to third parties incurred in connection with the operation
of the Business or its predecessors;

 

(v)   all
Liabilities relating to or arising out of: (A) the presence at any time of
any Hazardous Materials, on, prior to, or after the Separation Date, in soil,
groundwater, surface water, air or

 

2

 

building materials as a result of, or attributable or
allocable to, the Business or its predecessors (“Business Contamination”); (B) any Hazardous Materials
Activity conducted at any time on, prior to or after the Separation Date as a
result of, or attributable or allocable to, the Business or its predecessors (“Business Hazardous Materials Activities”);
(C) the exposure of any person to Hazardous Materials in the course of or
as a consequence of any Business Hazardous Materials Activities or to Business
Contamination, without regard to whether any health effect of the exposure has
been manifested as of the Separation Date; (D) the violation of any
Environmental Laws by the Business or its predecessors; and (E) any
actions or proceedings brought or threatened by any third party with respect to
any of the foregoing.;

 

(vi)  any
restructuring, transition or set-up costs or expenses related to the Business
and any costs incurred in connection with the Separation, in each case,
incurred on or after the Separation Date;

 

(vii) the Assumed
Transferred Employee Liabilities; and

 

(viii) all
Liabilities of Agilent or its Subsidiaries under the Flextronics Transfer
Agreements and Verigy’s reimbursement obligations, if any, pursuant to
Section 6.5 of the Master Separation Agreement.

 

(b)   Any
other provision of this Agreement notwithstanding, neither Verigy nor its
Subsidiaries shall be obligated to assume, pay, perform, discharge or be
responsible for any of the following Liabilities of Agilent or any of its
Subsidiaries (collectively, the “Excluded
Liabilities”):

 

(i)    any
Liability to the extent arising out of or relating to the operation or conduct
by Agilent or any of its Subsidiaries of any Retained Business or its
predecessors or of any business other than the Business or its predecessors;

 

(ii)   any
Liability for which Agilent is responsible pursuant to the terms of the Tax
Sharing Agreement;

 

(iii)  any
Liability to the extent arising out of or relating to any Excluded Asset;

 

(iv)  the
Excluded Transferred Employee Liabilities;

 

(v)   any
Indebtedness of Agilent or its Subsidiaries (other than Verigy and its
Subsidiaries);

 

(vi)  any Liability
arising out of any environmental claim other than as provided in
Section 2.2(a)(v);

 

(vii) any cost or
expense or any Liability of Agilent or its Subsidiaries incurred before, on or
after the Separation Date to the extent arising out of the Distribution;

 

(viii) any cost or
expense of Agilent or its Subsidiaries incurred before, on or after the
Separation Date incurred in order to effect the IPO (other than
(A) underwriting discounts and commissions and (B) any Liabilities
arising under any Law (including, without limitation, the Securities Act or the
Exchange Act), other than any such Liabilities with respect to which Agilent
has expressly agreed to provide indemnification pursuant to Section 9.2 of
the Master Separation Agreement);

 

(ix)  any transition
or set-up costs or expenses relating to the Business and any costs incurred in
contemplation of the Separation, in each case incurred prior to the Separation
Date;

 

(x)   any
cost or expense or any Liability of Agilent or its Subsidiaries, incurred before,
on or after, the Separation Date to the extent arising out of the Agilent
Restructurings other than any Assumed Transferred Employee Liabilities; or

 

3

 

(xi)  except as
specifically provided for herein, any Liabilities with respect to Contracts
other than Assumed Contracts.

 

2.3    Transfer of Transferred
Assets and Assumed Liabilities.

 

(a)   The
Transferred Assets shall be sold, conveyed, transferred, assigned and
delivered, and the Assumed Liabilities shall be assumed, pursuant to transfer
and assumption agreements and such other instruments in such form as may be
necessary or appropriate to effect a conveyance of the Transferred Assets and
an assumption of the Assumed Liabilities in the jurisdictions in which such
transfers are to be made. Such transfer and assumption agreements shall be
jointly prepared by the Parties and may include: (i) a bill of sale in
substantially the form attached hereto as Exhibit A
(the “Bill of Sale”);
(ii) an assignment and assumption agreement in substantially the form
attached hereto as Exhibit B
(the “Assignment and Assumption Agreement”);
(iii) local asset transfer agreements for each jurisdiction other than the
United States in which Transferred Assets or Assumed Liabilities are located in
substantially the form attached hereto as Exhibit C
with such deviations therefrom as are required by or advisable under local Law
(the “Local Asset Transfer Agreements”)
and (iv) such other agreements as may reasonably be required to effect the
purchase and assignment of the Transferred Assets and Assumed Liabilities under
applicable local law (collectively, clauses (i)-(iv), the “Ancillary Agreements”) and shall be
executed on or about the Separation Date by Agilent and/or one or more of its
Subsidiaries, as appropriate, and Verigy or one of its Subsidiaries. The Leases
of the Assigned Real Property shall be assigned and delivered, and the related
Assumed Liabilities shall be assumed, pursuant to the Lease Assignments and the
Subleased Real Property shall be delivered, and the related Assumed Liabilities
shall be assumed, pursuant to the Sublease Agreements, in each case, effective
as of the Separation Date.

 

(b)   Notwithstanding
the foregoing and unless otherwise stated in the Master Separation Agreement,
Verigy and Agilent will jointly prepare such Transferred Assets, which are
located at any facilities that are currently occupied by Agilent or any of its
Subsidiaries which will not be purchased, assigned, subleased, transferred to or
otherwise occupied by Verigy pursuant to this Agreement or the Master
Separation Agreement (each such facility, an “Agilent
Facility”), for relocation and relocate such Transferred Assets from
the relevant Agilent Facility. Subject to the terms of this Section 2.3(b),
Agilent agrees, and agrees to cause its Subsidiaries, to cooperate with Verigy
and provide Verigy all assistance reasonably requested by Verigy in connection
with the planning and implementation of the transfer of Transferred Assets or
any portion of any of them to such location as Verigy shall designate.
Transferred Assets shall be transported by or on behalf of Verigy, and until
all of the Transferred Assets are removed from an Agilent Facility, Agilent
will, and will cause its Subsidiaries to, permit Verigy and its authorized
agents or representatives, upon prior notice, to have reasonable access to
Agilent Facility to the extent necessary to disconnect, detach, remove, package
and crate the Transferred Assets for transport. Verigy shall be responsible for
disconnecting and detaching all fixtures and equipment that are Transferred
Assets from the floor, ceiling and walls of an Agilent Facility so as to be
freely removed from an Agilent Facility by Verigy, repairing any damage caused
by such disconnection, detachment and removal, and otherwise restoring such
Agilent Facility to its condition prior to the disconnection, detachment and
removal of such fixtures and equipment. Verigy shall be responsible for
packaging and loading the Transferred Assets for transporting to and
reinstalling the Transferred Assets at such location(s) as Verigy shall
determine. All risk of loss as to the Transferred Assets shall be borne by, and
shall pass to, Verigy as of the Separation Date.

 

(c)   In
connection with the transactions contemplated by this Agreement and the Master
Separation Agreement, each Party will take, and will cause each of its
respective Affiliates to take, such action as is reasonably necessary to
consummate the transactions contemplated by the Global Reorganization and
Restructuring Plan (whether prior to or after the Separation Date).

 

4

 

2.4    Approvals and Consents and
Satisfaction of Conditions.

 

(a)   Notwithstanding
anything to the contrary contained in this Agreement, and subject to the
provisions of Sections 2.5 and 2.6, to the extent that the sale, conveyance,
transfer, assignment or delivery or attempted sale, conveyance, transfer,
assignment or delivery to Verigy of any Transferred Asset would result in a
violation of any applicable Law, would require any Consent or waiver of any
Governmental Authority or third party, or would require another applicable
condition to such transfer to be satisfied, and such Consent or waiver shall
not have been obtained or such condition shall not have been satisfied prior to
the Separation Date, this Agreement shall not constitute a sale, conveyance,
transfer, assignment or delivery, or an attempted sale, conveyance, transfer,
assignment or delivery thereof if any of the foregoing would constitute a
breach of applicable Law, any Contract or the rights of any third party.
Following the Separation Date, the Parties shall use commercially reasonable
efforts, and shall cooperate with each other, to obtain promptly such Consent
or waiver or satisfy any remaining condition; provided,
further, however, that neither
Party nor any of its Subsidiaries shall be required to pay any consideration
therefor.

 

(b)   Once
such Consent or waiver is obtained or such condition satisfied, Agilent shall,
or shall cause its Subsidiaries to, sell, assign, transfer, convey and license
such Transferred Asset to Verigy or its Subsidiaries for no additional
consideration. Applicable Transfer Taxes in connection with such sale, assignment,
transfer, conveyance or license shall be paid in accordance with the Tax
Sharing Agreement.

 

(c)   To
the extent that any Transferred Asset cannot be provided to Verigy following
the Separation Date pursuant to this Section 2.4, Verigy and Agilent shall
use commercially reasonable efforts to enter into such arrangements (including
subleasing, sublicensing or subcontracting) to provide to the Parties the
economic (taking into account Tax costs and benefits) and, to the extent
permitted under applicable Law, operational equivalent of having completed such
transfer and the performance by Verigy of its related obligations. To the
extent permitted under applicable Law, Agilent shall hold in trust for and pay
to Verigy promptly upon receipt thereof, such Transferred Assets and all
income, proceeds and other monies received by Agilent to the extent related to
any such Transferred Asset in connection with the arrangements under this
Section 2.4. Agilent shall be permitted to set off against such amounts
all direct costs associated with the retention and maintenance of such
Transferred Assets. Notwithstanding the foregoing, in no event shall Agilent
have any obligation to retain any portion of the Business (including any
Transferred Assets) beyond the Distribution Date. Nothing in this
Section 2.4 applies to Consents or releases with respect to the Assigned
Real Property or Subleased Real Property, such Consents and releases to be
obtained pursuant to the provisions of Section 2.6.

 

2.5    Novation and Assignment.

 

(a)   Each
Party shall, and shall cause their respective Subsidiaries to use commercially
reasonable efforts to obtain or to cause to be obtained any Consent,
substitution, or amendment required to novate (including with respect to any
federal governmental contract) or assign all rights and obligations under
Assumed Contracts and other obligations or liabilities of any nature whatsoever
that constitute the Assumed Liabilities or to obtain in writing the
unconditional release of all parties to such arrangements, so that, in any
case, Verigy will be solely responsible for such rights and Assumed Liabilities
from and after the Separation Date, provided,
however, that neither Party nor any of its Subsidiaries shall be obligated to
pay any consideration therefor to any third party from whom such Consents,
substitutions and amendments are requested.

 

(b)   If
either Party or any of its Subsidiaries is unable to obtain, or to cause to be
obtained, any such required Consent, release, substitution or amendment,
(i) Agilent shall, or shall cause its Subsidiary to, continue to be bound
by such Assumed Contracts and other obligations and, (ii) unless not
permitted by the terms thereof or applicable Law, Verigy shall, as agent or
subcontractor for Agilent or such Subsidiary, pay, perform and discharge fully,
or cause to be paid, transferred or

 

5

 

discharged all the
obligations or other Liabilities of Agilent or such Subsidiary thereunder from
and after the Separation Date (except to the extent expressly otherwise
provided herein or in the other Transaction Documents). Agilent shall, without
further consideration, pay and remit, or cause to be paid or remitted, to
Verigy promptly all money, rights and other consideration received by it in
respect of such performance. If and when any such consent, approval, release,
substitution or amendment shall be obtained or such agreement, lease, license
or other rights or obligations shall otherwise become assignable or able to be
novated, Agilent shall, or shall cause such Subsidiary to, thereafter assign,
or cause to be assigned, all its rights, obligations and other liabilities
thereunder to Verigy or its Subsidiaries without receipt of further
consideration and Verigy or its Subsidiaries shall, without the payment of any
further consideration, assume such rights and obligations. Notwithstanding the
foregoing, the provisions of this Section 2.5 shall not apply to Consents
or releases with respect to the Assigned Real Property or Subleased Real
Property, such Consents and releases to be obtained pursuant to the provisions
of Section 2.6.

 

2.6    Consents for Real Property
Assignments.

 

(a)   With
respect to any Assigned Real Property or Subleased Real Property to which
Agilent or any of its Subsidiaries is the lessee, Agilent shall or shall cause
such Subsidiary to contact the Landlords of the Assigned Real Property or
Subleased Real Property and seek each Landlord’s consent to the applicable
lease assignment or sublease, if such consent is necessary for such assignment
or sublease. Agilent shall, or shall cause such Subsidiary to use commercially
reasonable efforts to obtain such Consents in form reasonably acceptable to
Verigy, but shall not be required to commence judicial proceedings against any
Landlord due to the Landlord’s failure or refusal to issue a Consent. Agilent
or such Subsidiary shall have the right, in its sole and absolute discretion,
but shall not be required, to pay any additional consideration or provide any
additional security or guarantees to the Landlords. Verigy and its Subsidiaries
shall cooperate with Agilent or such Subsidiary in attempting to obtain the
Consents set forth above, including (i) providing financial statements and
references as may be reasonably requested by the relevant Landlords,
(ii) entering into any amendments to the Leases of the Assigned Real
Property or Subleased Real Property as may be reasonably requested by the
relevant Landlords; provided such
amendments could not reasonably be expected to increase the tenant’s liability
or decrease the tenant’s rights thereunder or (iii) entering into direct
Leases of the Assigned Real Property or Subleased Real Property with the
relevant Landlords, if reasonably requested by such Landlords, on terms that
are not materially more adverse to Verigy in comparison to those of the
applicable existing Lease or otherwise acceptable to Verigy in its reasonable
discretion. Neither Verigy nor any Subsidiary of Verigy shall communicate
directly with any of Agilent’s, or its Subsidiaries’ Landlords without the
prior written consent of Agilent, such consent not to be unreasonably withheld.

 

(b)   If,
despite the efforts of the Parties as set forth above, a Landlord of an
Assigned Real Property or Subleased Real Property fails to consent to the
applicable lease assignment or sublease prior to the Separation Date, subject
to Section 2.6(c):

 

(i)    Verigy
or its Subsidiaries shall be entitled to occupy the relevant Assigned Real
Property or Subleased Real Property as a licensee upon the terms and conditions
contained in the Lease with Agilent or its Subsidiary with respect to such
Assigned Real Property or Subleased Real Property. Such license shall not be
revocable due to the relevant Landlord’s failure to consent, unless (A) the
relevant Landlord formally, unconditionally refuses to consent and provides
written notice stating that Verigy’s occupancy pursuant to the license violates
the Lease with respect to the Assigned Real Property or Subleased Real
Property, and (B) an enforcement action or forfeiture by the relevant
Landlord due to Verigy’s or its Subsidiary’s occupation of such Assigned Real
Property or Subleased Real Property cannot, in the reasonable opinion of
Agilent, be avoided other than by requiring Verigy or such Subsidiary to
immediately vacate the relevant Assigned Real Property or Subleased Real
Property. In either such event, Agilent may terminate the license by delivering
written notice to Verigy, and Verigy or its Subsidiary shall vacate the
relevant Assigned

 

6

 

Real Property or Subleased Real Property immediately
or by such other date as may be specified in a notice served by Agilent.

 

(ii)   For
as long as Verigy or its Subsidiary occupies or is entitled to occupy such
Assigned Real Property or Subleased Real Property as licensee as provided
above, Verigy or such Subsidiary shall, effective as of the Separation Date:
(A) pay Agilent or its Subsidiary all rents, service charges, insurance
premiums and other sums payable by Agilent or such Subsidiary under the
relevant Lease of the Assigned Real Property or Subleased Real Property, but
only with respect to the portion of the Subleased Real Property that Verigy or
its Subsidiary occupies or is entitled to occupy and (B) subject to the
provisions of Section 2.2(b) hereof, observe and perform all of the
covenants, obligations and conditions of Agilent or such Subsidiary contained
in the relevant Lease of the Assigned Real Property or Subleased Real Property.

 

(c)   If,
despite the efforts of the Parties as set forth above, a Landlord of an
Assigned Real Property or Subleased Real Property formally and unconditionally
refuses to consent to the applicable assignment or sublease and provides
written notice stating that Verigy’s or its Subsidiary’s occupancy violates the
Lease with respect to such Assigned Real Property or Subleased Real Property:

 

(i)    With
respect to any such Assigned Real Property, without limiting the rights of
Agilent or any of its Subsidiaries as set forth in subparagraphs (ii) and
(iii) below, Agilent may, by written notice to Verigy elect to apply to
the relevant Landlord for consent to sublease to Verigy or its Subsidiary all
of the Assigned Real Property for the remainder of the relevant Lease term at a
rent equal to the rent from time to time under the relevant Lease, and
otherwise on substantially the same terms and conditions as the relevant Lease
and pursuant to the terms of a reasonable sublease form prepared by Agilent or
such Subsidiary. If Agilent makes such an election after the Separation Date
(or before the Separation Date, if the Landlord consent is not received before
the Separation Date), the provisions of Section 2.6(b) will apply; provided that upon receipt of the consent
required to sublease the relevant Assigned Real Property, Agilent shall, or
shall cause such Subsidiary to sublease to Verigy or its Subsidiary the
Assigned Real Property as set forth herein. If Agilent makes such an election
before the Separation Date and the relevant Lease consent is obtained before
the Separation Date, Agilent or its Subsidiary shall sublease to Verigy or its
Subsidiary the relevant Assigned Real Property on the Separation Date as set
forth above.

 

(ii)   With
respect to any Assigned Real Property or Subleased Real Property, if the
Landlord takes such action prior to the Separation Date, Agilent may elect by
written notice to Verigy to delete the relevant Assigned Real Property or
Subleased Real Property from this Agreement. In such case, on the Separation
Date, Agilent shall not assign or sublease such Assigned Real Property or
Subleased Real Property to Verigy.

 

2.7    No Representation or
Warranties.    Verigy (on behalf of itself and
its Subsidiaries) acknowledges and agrees that, except as expressly set forth
in this Agreement or any Ancillary Agreement, (a) neither Agilent nor any
of its Subsidiaries is making any representations or warranties in this
Agreement or any Ancillary Agreement, express or implied, as the condition,
quality, merchantability or fitness of any Transferred Assets, Transferred
Intellectual Property Rights, Business Technology or Transferred Licenses
transferred pursuant to this Agreement, any Ancillary Agreement or any other
agreement contemplated hereby or thereby, (b) all such Transferred Assets,
Transferred Intellectual Property Rights, Business Technology and Transferred
Licenses will be transferred on an “as is,” “where is” based and
(c) Verigy and its Affiliates will bear the economic and legal risks that
any conveyance will prove to be insufficient to vest in them good and
marketable title, free and clear of any security interest, pledge, lien,
charge, claim or other encumbrance of any nature whatsoever.

 

7

 

2.8    Mistaken Assignments and
Assumptions.

 

In addition to those
transfers and assumptions accurately identified and designated by the Parties
to take place but which the Parties are not able to effect prior to the
Separation Date, there may exist (i) Transferred Assets, Transferred
Intellectual Property Rights, Business Technology or Transferred Licenses that
the parties discover were, contrary to the agreements between the parties, by
mistake or omission, transferred to Verigy or its Subsidiaries or retained by
Agilent or its Subsidiaries or (ii) Liabilities that the parties discover
were, contrary to the agreements between the parties, by mistake or omission,
assumed by Verigy or its Subsidiaries or not assumed by Verigy or its
Subsidiaries. The Parties shall cooperate in good faith to effect the transfer
or re-transfer of such Transferred Assets, Transferred Intellectual Property
Rights, Business Technology or Transferred Licenses and/or the assumption or
re- assumption of such Liabilities, to or by the appropriate Party and shall
not use the determination that remedial actions need to be taken to alter the
original intent of the Parties hereto with respect to the Transferred Assets,
Transferred Intellectual Property Rights, Business Technology or Transferred
Licenses to be transferred to or Liabilities to be assumed by Verigy. Each
Party shall reimburse the other or make other financial adjustments (e.g.,
without limitation, cash reserves) or other adjustments to remedy any mistakes
or omissions relating to any of the Transferred Assets, Transferred
Intellectual Property Rights, Business Technology or Transferred Licenses
transferred hereby or any of the Liabilities assumed hereby.

 

2.9    Litigation.

 

(a)    Allocation.

 

(i)    Litigation to Be Transferred
to Verigy.    On the Separation Date, the
responsibilities for management of the litigation identified on Schedule 1
of the litigation disclosure letter mutually agreed upon by Agilent and Verigy
attached hereto as Exhibit G
(the “Litigation Disclosure Letter”),
which will be delivered by Agilent to Verigy on the Separation Date, shall be
transferred in their entirety from Agilent and its Subsidiaries to Verigy and
its Subsidiaries. As of the Separation Date and thereafter, Verigy shall manage
the defense of this litigation and shall cause its applicable Subsidiaries to
do the same pursuant to the terms applicable to a “Controlling Party” in
Section 9.3(d) of the Master Separation Agreement, and Agilent and its
Subsidiaries shall comply with the provisions of Section 9.3(d) of the
Master Separation Agreement applicable to a “Non-Controlling Party”. All other
matters relating to such litigation, including but not limited to
indemnification for such claims, shall be governed by the provisions of the
Master Separation Agreement.

 

(ii)    Litigation to be Defended by
Agilent at Verigy’s Expense.    Agilent shall
defend, and shall cause its applicable Subsidiaries to defend, the litigation
identified on Schedule 2 of the Litigation Disclosure Letter. All other
matters relating to such litigation, including but not limited to
indemnification for such claims, shall be governed by the provisions of the
Master Separation Agreement.

 

(iii)    All Other Litigation.    All
litigation arising on, prior to or after the Separation Date that is not
included in the Litigation Disclosure Letter and which relates to a claim
pursuant to which one Party may be entitled to indemnification under the Master
Separation Agreement shall be treated as a Third-Party Claim under the Master
Separation Agreement and the defense of such claim shall be determined in
accordance with Section 9.3(d) of the Master Separation Agreement.

 

(b)    Cooperation.    Agilent
and Verigy and their respective Subsidiaries shall cooperate with each other in
the defense of any litigation covered under this Section 2.9 and afford to
each other reasonable access upon reasonable advance notice to witnesses and
information (other than information protected from disclosure by applicable
privileges) that is reasonably required to defend this litigation as set forth
in the Master Separation Agreement. The foregoing agreement to cooperate
includes, but

 

8

 

is not limited to, an
obligation to provide access to qualified assistance to provide information,
witnesses and documents to respond to discovery requests in specific lawsuits.
In such cases, cooperation shall be timely so that the Party responding to
discovery may meet all court-imposed deadlines. The Party requesting
information shall reimburse the Party providing information consistent with the
terms of the Master Separation Agreement.

 

2.10    Shared Contracts.

 

Upon the mutual agreement
of Agilent and Verigy (which agreement shall not be unreasonably withheld by
Agilent), Agilent will, and will cause its Subsidiaries to, to the extent
permitted by the applicable Agilent Shared Contract and applicable law, make
available to Verigy or its Subsidiaries the benefits and rights under the
Agilent Shared Contracts (except where the benefits or rights under such
Agilent Shared Contracts are specifically provided pursuant to a Transaction
Document) which are substantially equivalent to the benefits and rights enjoyed
by Agilent under each Agilent Shared Contract for which such request is made by
Verigy, to the extent such benefits relate to the Business; provided, however,
that Verigy will assume and discharge (or promptly reimburse Agilent for) the
obligations and liabilities under the relevant Agilent Shared Contracts
associated with the benefits and rights so made available to them.

 

Except as may be mutually
agreed by Agilent and Verigy, the parties’ rights and obligations pursuant to
this Section 2.10 will terminate upon the earliest to occur of
(i) the Distribution Date, (ii) the termination of Agilent’s
obligation to effect the Distribution pursuant to the Master Separation
Agreement, and (iii) with respect to any particular Agilent Shared
Contract, such time that the arrangement pursuant to this Section 2.10 is
no longer permitted thereunder.

 

ARTICLE III

 

MISCELLANEOUS AGREEMENTS OF THE
PARTIES

 

3.1    Miscellaneous.

 

The provisions of
Article X of the Master Separation Agreement are hereby incorporated into
this Agreement.

 

3.2    Conflicting Agreements.

 

In the event of conflict
between this Agreement and any other Ancillary Agreement or other agreement
executed in connection herewith, the provisions of such Ancillary Agreement or
other agreement shall prevail.

 

[SIGNATURE PAGES FOLLOW]

 

9

 

IN
WITNESS WHEREOF,
the Parties have caused this General Assignment and Assumption Agreement to be
duly executed as of the date first above written. 

 

	
   

  	
  AGILENT
  TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  JOHN EATON
  

  
	
   

  	
   

  	
  Name:    John
  Eaton

  
	
   

  	
   

  	
  Title:    Vice
  President, Corporate Development

  

 

[AGILENT’S SIGNATURE PAGE TO GENERAL ASSIGNMENT AND
ASSUMPTION AGREEMENT—

VERIGY’S SIGNATURE PAGE FOLLOWS]

 

 

	
   

  	
  VERIGY LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  KEITH L.
  BARNES  

  
	
   

  	
   

  	
  Name:    Keith
  L. Barnes

  
	
   

  	
   

  	
  Title:    President
  and Chief Executive Officer

  

 

[VERIGY’S SIGNATURE PAGE TO GENERAL ASSIGNMENT AND
ASSUMPTION AGREEMENT]

 

 

ANNEX A

 

”Affiliate” of a Person means a Person that
directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with, the first mentioned Person. For
purposes of this definition, “control,” when used with respect to any specified
Person, means the power to direct or cause the direction of the management and
policies of such Person, directly or indirectly, whether through ownership of
voting securities or by contract or otherwise, and the terms “controlling” and “controlled
by” have meanings correlative to the foregoing

 

”Agilent” shall have the meaning set forth
in the Recitals to this Agreement.

 

”Agilent Facility” shall have the meaning
set forth in Section 2.3(b).

 

”Agilent Restructurings” shall mean the
three restructuring plans of Agilent which were initiated in 2001, 2002, 2003
and 2005, as described Agilent’s Annual Report on Form 10-K for the fiscal
year ended October 31, 2005, and subsequent filings.

 

”Agilent Shared Contract” means any
Contract relating in part to the Business not included in the Transferred
Assets.

 

”Agreement” shall have the meaning set
forth in the Recitals to the Agreement.

 

”Ancillary Agreements” shall have the
meaning as set forth in Section 2.3.

 

”Assigned Real Property” shall mean all
real property to be assigned to Verigy in accordance with Article II and
as set forth on Schedule 1.

 

”Assignment and Assumption Agreement” shall
have the meaning set forth in Section 2.3.

 

”Assumed Contracts” shall have the meaning
set forth in Exhibit F.

 

”Assumed Liabilities” shall have the
meaning set forth in Section 2.2(a).

 

”Assumed Transferred Employee Liabilities”
shall have the meaning set forth in the Employee Matters Agreement.

 

”Automated Semiconductor Test Systems”
shall have the meaning set forth in the Intellectual Property Matters
Agreement.

 

”Bill of Sale” shall have the meaning set
forth in Section 2.3.

 

”Business” shall have the meaning set forth
in the Master Separation Agreement.

 

”Business Day” means a day other than a
Saturday, a Sunday or a day on which banking institutions located in San
Francisco, California are authorized or obligated by law or executive order to
close.

 

”Business Facility” means any facility or
real property including the land, the improvements thereon, the groundwater
thereunder and the surface water thereon, that is or at any time has been
owned, operated, occupied, controlled or leased by Agilent or any of its Subsidiaries
or Verigy or any of its Subsidiaries in connection with the operation of the
Business or the Transferred Assets.

 

”Business Technology” shall have the
meaning set forth in the Intellectual Property Matters Agreement.

 

”Code” shall mean the Internal Revenue Code
of 1986, as amended.

 

”Consent” shall mean all licenses,
certificates, permits, approvals, clearances, expirations, waivers or
terminations of applicable waiting periods, authorizations, qualifications and
orders.

 

”Contract” means any written or oral
commitment, contract, subcontract, license, sublicense, lease, understanding,
instrument, indenture, note or legally binding commitment or undertaking of any
nature.

 

”Customer Contract” means any Contract
between Agilent or any of its Subsidiaries on the one hand and a customer,
distributor or dealer of Agilent or any of its Subsidiaries on the other hand
for

 

 

the purchase, sale,
distribution, marketing, servicing, support or manufacturing (or similar
matters) of Automated Semiconductor Test Systems.

 

”Distribution” has the meaning set forth in
the Master Separation Agreement.

 

”Distribution Date” has the meaning set
forth in the Master Separation Agreement.

 

”Employee Matters Agreement” shall mean the
Employee Matters Agreement attached as Exhibit C to the Master Separation
Agreement.

 

”Environmental Laws” shall mean any
applicable foreign, federal, state or local Laws, statutes, regulations, codes,
ordinances, permits, decrees, orders or common law relating to, or imposing
standards regarding the protection or clean up of the environment, any
Hazardous Material Activity, the preservation or protection of waterways,
groundwater, drinking water, air, wildlife, plants or other natural resources,
or the exposure of any individual to Hazardous Materials, including without
limitation protection of health and safety of employees. Environmental Laws
shall include, without limitation, the Federal Insecticide, Fungicide
Rodenticide Act, Resource Conservation & Recovery Act, Clean Water
Act, Safe Drinking Water Act, Atomic Energy Act, Occupational Safety and Health
Act, Toxic Substance Control Act, Clean Air Act, Comprehensive Environmental
Response, Compensation and Liability Act, Emergency Planning and Community
Right to Know Act, Hazardous Materials Transportation Act and all analogous or
related foreign, federal state or local law, each as amended.

 

”Excluded Assets” shall mean the assets of
Agilent and its Subsidiaries other than the Transferred Assets, the Business
Technology, the Transferred Intellectual Property Rights and the Transferred
Licenses, including, without limitation, those assets identified on Exhibit D.

 

”Excluded Liabilities” shall have the
meaning set forth in Section 2.2(b).

 

”Excluded Transferred Employee Liabilities”
shall have the meaning set forth in the Employee Matters Agreement.

 

”Flextronics” shall have the meaning set
forth in the Master Separation Agreement.

 

”Flextronics Transfer Agreements” shall
have the meaning set forth in the Master Separation Agreement.

 

”GAAP” shall have the meaning set forth in
the Master Separation Agreement.

 

”Global Reorganization and Restructuring Plan”
shall mean the Global Reorganization and Restructuring Plan in substantially
the form attached to this Agreement as Exhibit E
pursuant to which certain Transferred Assets and Assumed Liabilities with be
transferred between the Parties and their Affiliates in connection with the
Separation.

 

”Governmental Authority” shall mean any
United States, supranational or foreign, federal, state, provincial, municipal
or local government, government agency, court of competent jurisdiction,
administrative agency, court of competent jurisdiction, administrative agency
or commission or other governmental or regulatory authority or instrumentality.

 

”Hazardous Materials” shall mean any
infectious, carcinogenic, radioactive, toxic or hazardous chemical or chemical
compound, or any pollutant, contaminant or hazardous substance, material or
waste, in each case, whether solid, liquid or gas, including, without limitation,
petroleum, petroleum products, by products or derivatives, asbestos,
microbiological pollutants, batteries or liquid solvents or similar chemicals,
radon gas, mildew, fungus, mold, bacteria and/or other organic spore material,
and any other substance, material or waste that is subject to regulation,
control or remediation under any Environmental Law.

 

”Hazardous Materials Activity” means the
transportation, transfer, recycling, storage, use, disposal, arranging for
disposal, treatment, manufacture, removal, remediation, release, exposure of
others to, sale, or distribution of any Hazardous Material or any product or
waste containing a Hazardous Material, or product manufactured with Ozone
depleting substances, including, without limitation, any

 

 

required labeling,
payment of waste fees or charges (including so-called e-waste fees) and
compliance with any product take back or product content requirements.

 

”Indebtedness” means (i) all
outstanding obligations for senior debt and subordinated debt and any other
outstanding obligation for borrowed money, including that evidenced by notes,
bonds, debentures or other instruments (and including all outstanding
principal, prepayment premiums, if any, and accrued interest, fees and expenses
related thereto), (ii) any outstanding obligations under capital leases
and purchase money obligations (other than as included in Accounts Payable),
(iii) any amounts owed with respect to drawn letters of credit and
(iv) any outstanding guarantees of obligations of the type described in
clauses (i) through (iii) above.

 

”Intellectual Property Matters Agreement”
shall mean the Intellectual Property Matters Agreement attached as
Exhibit B-1 to the Master Separation Agreement.

 

”Intellectual Property Rights” shall have
the meaning set forth in the Intellectual Property Matters Agreement.

 

”IPO” has the meaning set forth in the
Master Separation Agreement.

 

”IPO Registration Statement” has the
meaning set forth in the Master Separation Agreement.

 

”Landlord” shall mean a landlord, sublandlord,
licensor or other party granting the right to use or occupy real property.

 

”Law” means any law, treaty, statute,
ordinance, rule, principle of common law or equity, code or regulation of a
Governmental Authority or judgment, decree, order, writ, award, injunction or
determination of an arbitrator or court or other Governmental Authority.

 

”Lease” shall mean a lease, sublease,
license or other agreement permitting the use or occupancy of real property,
including any amendments, modifications, supplements, renewals, extensions and
guaranties related thereto.

 

”Lease Assignments” shall means the Lease
Assignments in such form or forms as are reasonably agreed to by the Parties.

 

”Liabilities” shall have the meaning set
forth in Section 2.2(a).

 

”Litigation Disclosure Letter” shall have
the meaning set forth in Section 2.10(a)(i).

 

”Local Asset Transfer Agreement” shall have
the meaning set forth in Section 2.3.

 

”Master Separation Agreement” shall have
the meaning set forth the Recitals.

 

”ordinary course of business” means in the
ordinary course of the operation of the Business.

 

”Party” and “Parties” shall have the respective meanings set forth in the
Recitals to this Agreement.

 

”Person” means an individual, corporation,
partnership, limited liability company, association, trust, incorporated
organization, other entity or group (as defined in Section 13(d)(3) of the
Securities Exchange Act of 1934).

 

”Plan” shall have the meaning set forth in
the Employee Matters Agreement.

 

”Purchase Price” shall have the meaning set
forth in Section 3.1.

 

”Retained Business” means the portion of
Agilent’s business conducted by Agilent as of the Separation Date other than
the Business.

 

”Securities Act” shall mean the Securities
Act of 1933, as amended.

 

”Separation” shall mean the transfer and
contribution from Agilent to Verigy, and Verigy’s receipt and assumption of,
directly or indirectly, substantially all of the Transferred Assets and Assumed

 

 

Liabilities currently
associated with the Business and the stock, investments or similar interests
currently held by Agilent in subsidiaries and other entities that conduct the
Business.

 

”Separation Date” shall mean the effective
date and time of each transfer of property, assumption of liability, license,
undertaking, or agreement in connection with the Separation, which shall be
12:01 a.m., Pacific Time, June 1, 2006, or such other time and date
as may be fixed by the Board of Directors of Agilent.

 

”Sublease Agreements” shall mean the
Sublease Agreements in such form or forms as are reasonably agreed to by the
Parties.

 

”Subleased Real Property” shall mean the
real property to be subleased to Verigy in accordance with Article II and
as set forth on Schedule 2.

 

”Subsidiary” or “Subsidiaries” of Verigy, Agilent or any other Person means
any corporation, partnership or other legal entity of which Verigy, Agilent or
such other Person, as the case may be (either alone or through or together with
any other Subsidiary), owns, directly or indirectly, more than 50% of the stock
or other equity interests the holder of which is generally entitled to vote for
the election of the board of directors or other governing body of such
corporation or other legal entity.

 

”Supplier Contract” means any Contract
between Agilent or any of its Affiliates on the one hand and a supplier of
Agilent or any of its Affiliates on the other hand for the purchase or sale of
components, subsystems, complete systems or other materials used in the
manufacture of the Automated Semiconductor Test Systems or to the extent
relating to the Business, and agreements or arrangements with regard to
purchase or return of inventory of such components, subsystems, complete
systems, materials or Automated Semiconductor Test Systems.

 

”Tax” or “Taxes”
shall have the meanings set forth in the Tax Sharing Agreement.

 

”Tax Sharing Agreement” shall mean the Tax
Sharing Agreement attached as Exhibit D to the Master Separation
Agreement.

 

”Technology” shall have the meaning set
forth in the Intellectual Property Matters Agreement.

 

”Transaction Documents” shall have the
meaning set forth in the Master Separation Agreement.

 

”Transfer Taxes” shall mean all transfer,
filing, recordation, ad valorem,
valued added, bulk sales, stamp duties, excise, license or similar fees or
taxes.

 

”Transferred Assets” shall mean the assets
set forth in Exhibit F and
all of the goodwill associated therewith.

 

”Transferred Intellectual Property Rights”
shall have the meaning set forth in the Intellectual Property Matters
Agreement.

 

”Transferred IT Infrastructure” means:

 

(a)                                  at Assigned Real Property, (i) all
desktop computers and/or laptops used by Verigy Employees or Verigy Transferred
Employees, (ii) all servers, printers and other such hardware for which
80% or more of their usage is for the benefit of Verigy Employees or Verigy
Transferred Employees, and (iii) all LAN equipment, network and phone
cabling and PBX and telephony equipment and software installed thereon to the
extent transferable, including routers that support the LAN or connect to the
WAN;

 

(b)                                 at Subleased Real Property, (i) all
desktop computers and or laptops used by Verigy Employees or Verigy Transferred
Employees, and (ii) all servers, printers and other such hardware for
which 80% or more of their usage is for the benefit of Verigy Employees or
Verigy Transferred Employees; and

 

(c)                                  to the extent not included in (a) or
(b) above, all IT systems; network or telecommunications equipment and
software; desktop computer software; accounting, finance and database software;
general software development and control systems; and tools, environments and

 

 

other general IT functionality; in each case which is
used exclusively in the operation of the Business;

 

in each case, to the
extent such Transferred IT Infrastructure is transferable (including upon
receipt of a third-party consent to such transfer) and, with respect to any
Transferred IT Infrastructure that is leased or licensed from a third party,
subject to the terms of such lease or license and the inclusion in the Assumed
Liabilities of the obligations of Agilent and its Subsidiaries under such lease
or license to the extent (but only to the extent) related to such Transferred
IT Infrastructure.

 

”Transferred Licenses” shall have the
meaning set forth in the Intellectual Property Matters Agreement.

 

”Verigy” shall have the meaning set forth
in the Recitals to the Agreement.

 

”Verigy Employees” shall have the meaning
set forth in the Employee Matters Agreement.

 

”Verigy Transferred Employees” shall have
the meaning set forth in the Employee Matters Agreement.

 

 

SCHEDULE 1

Assigned Real Property

 

1.             Leasehold
interest in real property located at 12401 Research Blvd., Suite 100 (130 &
140), Austin, Texas 78759

 

 

SCHEDULE 2

Subleased Real Property

 

1.             Herrenberger
Strasse 130, 71034 Boeblingen Germany

 

2.             No.
1 Yishun Ave. 7, Lot 1937C, 1935X, 1975P, Singapore 768923

 

3.             9-1
Takahura-cho, Hachioji, Tokyo-To, 1928510

 

4.             No
20, Kao Shuang Road, Ping Chen City, Tao-Yuan Hsien 324, Taiwan

 

 

EXHIBIT A 

FORM OF BILL OF SALE

 

THIS BILL OF SALE (the “Agreement”)
is made, executed and delivered as of this    day
of                        2006,
by Agilent Technologies, Inc., a Delaware corporation (“Seller”), in favor
of Verigy Ltd., a company organized under the laws of Singapore (“Buyer”).

 

WHEREAS, Seller and Buyer
have entered into that certain Master Separation and Distribution Agreement
(the “MSDA”) and that certain General Assignment and Assumption Agreement (the “GAAA”)
wherein Buyer is acquiring the Transferred Assets;

 

WHEREAS, Seller and Buyer
have entered into that certain Intellectual Property Matters Agreement (the “IPMA”,
and, together with the MSDA and the GAAA, the “Transfer Agreements”), wherein
Buyer is acquiring all of Agilent’s and its subsidiaries’ right, title and interest
to the Transferred Licenses, the Transferred Intellectual Property Rights and
the Business Technology; and

 

WHEREAS, Buyer and Seller
now seek to consummate the assignment, conveyance and transfer of such
Transferred Assets, the Transferred Licenses, the Transferred Intellectual
Property Rights and the Business Technology, other than those assets that are
conveyed pursuant to other instruments of transfer executed pursuant to the
Transfer Agreements.

 

NOW, THEREFORE, for good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties do hereby agree as follows:

 

1.     Capitalized
terms used but not defined herein shall have the meanings for such terms that
are set forth in the GAAA.

 

2.     Seller
hereby conveys, transfers and assigns to Buyer all of Seller’s right, title and
interest in and to all of the Transferred Assets, the Transferred Licenses, the
Transferred Intellectual Property Rights and the Business Technology, other
than those Transferred Assets that are conveyed pursuant to other instruments
of transfer executed pursuant to the Transfer Agreements. In the event of any
conflict or inconsistency between the terms of the Transfer Agreements and the
terms hereof, the terms of the relevant Transfer Agreement shall govern.

 

3.     Buyer
and Seller do hereby represent that each signatory to this Agreement has due
authorization and authority to bind such party to this Agreement.

 

4.     At
any time and from time to time after the date hereof, at a party’s request and
without further consideration, the other will execute and deliver such other
instruments of sale, transfer, conveyance, assignment, and delivery and
confirmation and take such action as a party may reasonably deem necessary or
desirable to effect the transaction contemplated hereby.

 

5.     Nothing
in this instrument, express or implied, is intended or shall be construed to
confer upon, or give to, any person, firm or corporation other than Buyer and
its successors and assigns, any remedy or claim under or by reason of this
instrument or any terms, covenants or conditions hereof, and all the terms,
covenants and conditions, promises and agreements contained in this instrument
shall be for the sole and exclusive benefit of Buyer and its successors and
assigns.

 

6.     Seller
hereby constitutes and appoints Buyer, its successors and assigns, Seller’s
true and lawful attorney and attorneys, with full power of substitution, in
Seller’s name and stead, but on behalf and for the benefit of Buyer, its successors
and assigns, to demand, receive and collect any and all of the Transferred
Assets, the Transferred Licenses, the Transferred Intellectual Property Rights
and the Business Technology, and to give receipts and releases for and in
respect of the same, and any part thereof, and from time to time to institute
and prosecute in Seller’s name, or otherwise for the benefit of Buyer, its
successors and assigns, any and all proceedings at law, in equity or otherwise,
which Buyer, its successors or assigns, may deem proper for the collection or
recovery of any of the Transferred

 

A-1

 

Assets, the Transferred
Licenses, the Transferred Intellectual Property Rights and the Business
Technology, or for the collection and enforcement of any claim or right of any
kind hereby sold, conveyed, transferred and assigned, or intended so to be, and
to do all acts and things in relation to the Transferred Assets, the
Transferred Licenses, the Transferred Intellectual Property Rights and the
Business Technology, which Buyer, its successors or assigns, shall deem
desirable, Seller hereby declaring that the foregoing powers are coupled with
an interest and are and shall be irrevocable by Seller or by its dissolution or
in any manner or for any reason whatsoever, provided that no breach of the
Agreement by Buyer has occurred and provided further that nothing in this
Section 6 shall be deemed a waiver of any remedies otherwise available.

 

7.     This
Agreement is executed by, and shall be binding upon, the respective parties
thereto and their successors and assigns, for the uses and purposes set forth
above.

 

8.     This
instrument shall be governed by, and construed in accordance with, the laws of
the State of New York.

 

[SIGNATURE PAGE FOLLOWS]

 

A-2

 

IN
WITNESS WHEREOF,
the parties have caused this Agreement to be executed as of the date first
above written. 

 

	
   

  	
  SELLER

  Agilent
  Technologies, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  BUYER

  Verigy Ltd.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

[SIGNATURE PAGE TO BILL OF SALE]

 

A-3

 

EXHIBIT B

FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

 

This Assignment and
Assumption Agreement (the “Assignment and Assumption Agreement”) is made and
entered into as
of                        ,
2006 by and between Agilent Technologies, Inc., a Delaware corporation (“Assignor”)
and Verigy Ltd., a company organized under the laws of Singapore (“Assignee”).

 

WHEREAS, Assignor and
Assignee are parties to that certain Master Separation and Distribution
Agreement dated as of May    , 2006 (the “MSDA”), that certain
General Assignment and Assumption Agreement of even date herewith (the “GAAA”)
and that certain Intellectual Property Matters Agreement of even date herewith
(the “IPMA”; together with the MSDA and the IPMA, the “Transfer Agreements”),
pursuant to which Assignee has agreed to purchase the Transferred Assets, the
Transferred Licenses, the Transferred Intellectual Property Rights and the
Business Technology and assumed the Assumed Liabilities (all as defined
therein); and

 

WHEREAS, pursuant to the
Transfer Agreements, Assignor has agreed to assign certain rights and
agreements to Assignee, and Assignee has agreed to assume certain obligations
of Assignor, as set forth therein;

 

NOW THEREFORE, for and in
consideration of the premises and the mutual covenants contained herein, and
for the other good and valuable consideration, the receipt, adequacy and legal
sufficiency of which are hereby acknowledged, the parties do hereby agree as
follows:

 

1.    Capitalized Terms.    Capitalized
terms used but not defined herein shall have the meanings for such terms that
are set forth in the GAAA.

 

2.    Assignment and Assumption.    Assignor
hereby assigns, sells, transfers and sets over (collectively, the “Assignment”)
to Assignee all of the Assumed Liabilities (other than those Assumed
Liabilities that are conveyed pursuant to the other instruments of transfer
executed pursuant to the GAAA). Assignee hereby accepts the Assignment and
assumes and agrees to observe and perform all of the duties, obligations,
terms, provisions and covenants of, and to pay and discharge, all of the
Assumed Liabilities (other than those Assumed Liabilities that are conveyed
pursuant to the other instruments of transfer executed pursuant to the GAAA).
Assignee assumes no Excluded Liabilities, and the parties hereto agree that all
such Excluded Liabilities shall remain the sole responsibility of Assignor.

 

3.    Terms of the Transfer
Agreements.    Assignor acknowledges and agrees
that the covenants, agreements and indemnities contained in the Transfer
Agreements shall not be superseded hereby but shall remain in full force and
effect to the full extent provided therein. In the event of any conflict or
inconsistency between the terms of either of the Transfer Agreements and the
terms hereof, the terms of the applicable Transfer Agreement shall govern.

 

4.    Further Actions.    Each
of the parties hereto covenants and agrees, at its own expense, to execute and
deliver, at the request of the other party hereto, such further instruments of
transfer and assignment and to take such other action as such other party may
reasonably request to more effectively consummate the assignments and
assumptions contemplated by this Assignment and Assumption Agreement.

 

5.    Consent to Assignment.    This
Assignment and Assumption Agreement shall not constitute an assignment of any
claim, contract, permit, franchise, or license if the attempted assignment
thereof, without the consent of the other party thereto, would constitute a
breach of such claim, contract, permit, franchise, or license or in any way
adversely affect the rights of Assignor thereunder. If such consent is not
obtained, or if any attempted assignment thereof would be ineffective or would
adversely affect the rights of Assignor thereunder so that Assignee would not
in fact receive all such rights, then

 

B-1

 

Assignee may act as the
attorney-in-fact of Assignor in order to obtain for Assignee the benefits
thereunder.

 

6.    No Additional Remedies.    Nothing
in this instrument, express or implied, is intended or shall be construed to
confer upon, or give to, any person, firm or corporation other than Assignee
and its successors and assigns, any remedy or claim under or by reason of this
instrument or any terms, covenants or conditions hereof, and all the terms,
covenants and conditions, promises and agreements contained in this instrument
shall be for the sole and exclusive benefit of Assignee and its successors and
assigns.

 

7.    Governing Law.    This
Assignment and Assumption Agreement shall be governed by, and construed in
accor.

 

8.    Counterparts.    This
Assignment and Assumption Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement and
shall become effective when one or more counterparts have been signed by each
of the parties and delivered to the other party, it being understood that all
parties need not sign the same counterpart.

 

[SIGNATURE PAGE FOLLOWS]

 

B-2

 

IN
WITNESS WHEREOF,
the parties have caused this Agreement to be executed as of the date first
above written. 

 

	
   

  	
  SELLER

  Agilent
  Technologies, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  PURCHASER

  Verigy Ltd.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
				

 

[SIGNATURE PAGE TO ASSIGNMENT AND ASSUMPTION
AGREEMENT]

 

B-3

 

EXHIBIT C

LOCAL ASSET TRANSFER AGREEMENT

 

[(COUNTRY)]

 

THIS LOCAL ASSET TRANSFER
AGREEMENT (“Agreement”) is made and entered into effective as of [June 1],
2006 (“Effective Date”) by and between [Agilent selling entity], a
[State/Country] [company/corporation] with its [registered address/principal
place of business] at [address] (“Seller”), and [Verigy purchasing entity], a
[State/Country] [company/corporation] with its [registered address/principal
place of business] at [address] (“Buyer”).

 

RECITALS

 

A.    Agilent
Technologies, Inc., a Delaware corporation (“Agilent”), and Verigy
Pte. Ltd., a Singapore company and a wholly-owned subsidiary of Agilent (“Verigy”),
have entered into, among others, that certain Master Separation and
Distribution Agreement, effective as
of                        ,
2006, as may be amended from time to time, that certain General Assignment and
Assumption Agreement, effective as
of                        ,
2006, as may be amended from time to time, and that certain Tax Matters
Agreement, effective as
of                        ,
2006, as may be amended from time to time, (collectively, the “Master
Agreements”), pursuant to which the parties have agreed to separate the
Semiconductor Test Solutions business (defined as the “Business” in the Master
Agreements), from Agilent’s other businesses, by means of, among other actions,
the transfer of certain assets and liabilities associated with the Business by
Agilent and certain of Agilent’s subsidiaries to Verigy and certain of Verigy’s
subsidiaries.

 

B.    Seller
is a subsidiary of Agilent engaged in the Business in and from [State/Country]
and Buyer is a subsidiary of Verigy.

 

C.    This
Agreement is intended to effectuate the transfer of assets by Seller and the
assumption of liabilities by Buyer as contemplated by the Master Agreements and
is subject in all respects to the terms of the Master Agreements.

 

D.    Seller
desires to sell, transfer and assign to Buyer, and Buyer wishes to purchase,
acquire and assume from Seller, the Local Assets and the Local Assumed
Liabilities, as defined herein, associated with the Business effective as of
the Effective Date, upon the terms and subject to the conditions set forth in
this Agreement.

 

The parties hereby agree
as follows:

 

ARTICLE 1

DEFINITIONS

 

1.1    ”Local Assets.”    ”Local
Assets” means all of Seller’s rights, title and interest in and to the assets
and other rights referred to in Schedule 1
of this Agreement, other than those assets and other rights that are conveyed
pursuant to other instruments of transfer executed pursuant to the Master
Agreements.

 

1.2    ”Local Assumed Liabilities.”    ”Local
Assumed Liabilities” means the Assumed Liabilities of Seller, in particular
without limitation, the Liabilities referred to in Schedule 2 attached hereto, other than those
Liabilities that are conveyed pursuant to other instruments of transfer
executed pursuant to the Master Agreements.

 

1.3    ”Local Excluded Assets.”    ”Local
Excluded Assets” means all assets other than the Local Assets, including,
without limitation, the assets listed or described in Schedule 3 attached hereto.

 

1.4    ”Local Excluded Liabilities.”    ”Local
Excluded Liabilities” means the Excluded Liabilities of Seller, in particular,
without limitation, the Liabilities referred to in Schedule 4 attached hereto.

 

1.5    ”Other Definitions.”    Capitalized
terms used and not otherwise defined herein shall have the meanings ascribed to
such terms in the Master Agreements.

 

 

ARTICLE 2

PURCHASE AND SALE OF ASSETS

 

2.1    Asset Sale.    Buyer
hereby purchases, receives and accepts from Seller, and Seller hereby sells,
transfers and assigns to Buyer, the Local Assets with effect as of the
Effective Date. The parties acknowledge and agree that the Excluded Assets
shall be excluded from the sale of the Local Assets hereunder.

 

2.2    Assumption of Liabilities.    Buyer
hereby assumes from Seller the Local Assumed Liabilities with effect as of the
Effective Date and agrees to perform, satisfy and discharge the Local Assumed
Liabilities in accordance with their respective terms. The parties acknowledge
and agree that the Excluded Liabilities shall be excluded from the assumption
of the Local Assumed Liabilities hereunder.

 

ARTICLE 3

PURCHASE PRICE AND PAYMENT

 

3.1    Purchase Price.    In
consideration for the sale of the Local Assets, Buyer shall (a) pay to
Seller the purchase price set forth in Schedule 5
attached hereto (the “Local Purchase Price”), and (b) assume the Local
Assumed Liabilities as set forth in Article 2.2 hereof.

 

3.2    Payment of the Purchase
Price.    Buyer shall pay the Purchase Price to
Seller in cash or by bank wire to such account(s) as designated by Seller
and/or Agilent on the Effective Date.

 

[TO THE EXTENT IT IS STRICTLY REQUIRED FOR PURPOSES OF
COMPLYING WITH LOCAL LAW TO INCLUDE IN THE LOCAL ASSET TRANSFER AGREEMENT AN
ALLOCATION OF THE LOCAL PURCHASE PRICE AMONG DIFFERENT TYPES OF ASSETS, PLEASE
INSERT THE APPROPRIATE LANGUAGE.]

 

[ALTERNATIVE PURCHASE PRICE PROVISION
IN CASE THE PURCHASE PRICE WILL BE PAID BETWEEN AGILENT AND VERIGY AND NOT
BETWEEN LOCAL ENTITIES:

 

3.1    Purchase Price and Payment.    The
consideration payable by the Buyer to the Seller for the Local Assets (the “Local
Purchase Price”) shall be that portion of (and deemed to be part and paid by
the delivery of) the Purchase Price as allocated by the parties to the Local
Assets based upon the Allocation Schedule.]

 

3.3    Transfer Taxes.    All
Transfer Taxes arising as a result of the transactions contemplated by this
Agreement shall be payable in accordance with the Master Agreements.

 

3.4    [VAT/GST.    The
sale of the Local Assets hereunder shall not be subject to [VAT/GST] in
accordance with [PLEASE INSERT APPLICABLE STATUTORY REFERENCE, IF ANY]].

 

ARTICLE 4

EMPLOYEES

 

In accordance with the
Employee Matters Agreement between Agilent and Verigy effective as
of                        ,
2006, as may be amended from time to time (the “EMA”) and except as set forth
below, certain employees of Seller will become employees of Buyer in the manner
and on such terms and conditions as Agilent and Verigy have agreed in the EMA.
[As between the parties hereto, however, the EMA is deemed amended as follows:]

 

[PLEASE ONLY SUPPLEMENT
WITH ADDITIONAL EMPLOYEE TRANSFER TERMS AND CONDITIONS TO THE EXTENT LOCAL LAW
STRICTLY REQUIRES SUCH TERMS TO BE INCLUDED IN THE LOCAL ASSET TRANSFER
AGREEMENT. A SCHEDULE OF EMPLOYEES TO BE TRANSFERRED MAY BE ADDED TO THE EXTENT
STRICTLY REQUIRED UNDER LOCAL LAW. PLEASE ALSO INDICATE WHETHER REFERENCE TO

 

C-2

 

THE EMA WILL REQUIRE SUCH
AGREEMENT TO BE FILED WITH LOCAL AUTHORITIES IN WHICH CASE THE LANGUAGE ABOVE
MAY NEED TO BE REVISED.]

 

ARTICLE 5

INTERPRETATION; CONFLICT OF TERMS

 

It is the intention of
the parties that this Agreement shall be consistent with the terms of the
Master Agreements (including, for the purposes of this Article 5, the
EMA). [Except as set forth otherwise in Article 4 hereof with respect to
the EMA], [I]n the event of any conflict between the Master Agreements, as the
case may be, and this Agreement, the provisions of the Master Agreements as the
case may be, shall control to the maximum extent permitted under applicable law
and the parties agree that this Agreement is not intended, and will not be
construed in any way to enhance, modify or decrease any of the rights or
obligations of the parties, Agilent or Verigy from those contained in the
Master Agreements.

 

ARTICLE 6

THIRD PARTIES

 

The parties acknowledge
and agree that certain of the transfers contemplated by this Agreement may not
be effected on or before the Effective Date due to the inability of the parties
to obtain necessary consents or approvals or the inability of the parties to
take certain other actions necessary to effect such transfers. To the extent
any transfers contemplated by this Agreement have not been fully effected on or
before the Effective Date, Seller and Buyer shall cooperate and use
commercially reasonable efforts to obtain any necessary consents or approvals
or take any other actions necessary to effect such transfers as promptly as
practicable following the Effective Date. Nothing herein shall be deemed to require
the transfer or assignment of any asset to the extent that such transfer or
assignment would constitute a material breach or cause forfeiture or loss of
such asset; provided, however, that even if such asset cannot be so transferred
or assigned, such asset shall be deemed a Local Asset solely for purposes of
determining whether any Liability is a Local Assumed Liability. If an attempted
assignment would be ineffective or would impair Buyer’s rights under any such
Local Asset so that Buyer would not receive all such rights, then the parties
will use commercially reasonable efforts to provide to, or cause to be provided
to, Buyer, to the extent permitted by law, the rights of any such Local Asset
and take such other actions as may reasonably be requested by Buyer in order to
place Buyer, insofar as reasonably possible, in the same position as if such
Local Asset had been transferred as contemplated hereby. In connection
therewith, (a) Seller will promptly pass along to Buyer when received all
benefits derived by Seller with respect to any such Local Asset and
(b) Buyer will pay, perform and discharge on behalf of Seller all of
Seller’s obligations with respect to any such Local Asset in a timely manner
and in accordance with the terms thereof which it may do without breach. If and
when such consents or approvals are obtained or such other required actions
have been taken, the transfer of the applicable Local Asset will be effected in
accordance with the terms of this Agreement.

 

ARTICLE 7

REPRESENTATIONS AND WARRANTIES

 

Buyer acknowledges and
agrees that, except as expressly set forth in this Agreement or the Master
Agreements (a) Seller is not making any representations or warranties,
express or implied, as to the condition, quality, merchantability or fitness of
any Local Asset transferred pursuant to this Agreement, (b) ALL SUCH LOCAL
ASSETS ARE HEREBY SOLD ON AN “AS IS,” “WHERE IS” BASIS (and in the case of any
real property, by means of a quitclaim or similar form deed or conveyance), and
(c) Buyer will bear the economic and legal risks that any conveyance will
prove to be insufficient to

 

C-3

 

vest in Buyer good and
marketable title, free and clear of any security interest, pledge, lien,
charge, claim or other encumbrance of any nature whatsoever.

 

ARTICLE 8

GENERAL PROVISIONS

 

8.1    Further Assurances.    The
parties hereto shall each perform such acts, execute and deliver such
instruments and documents, and do all such other things as may be reasonably necessary
to accomplish the transactions contemplated in this Agreement. Except as
otherwise expressly provided in this Agreement, Seller shall not be obligated
to incur any out-of-pocket costs, expenses and fees in connection with its
obligations under this Article 8.1, including, without limitation, any
attorneys’ fees, recording, assignment or other similar fees.

 

8.2    Governing Law and Dispute
Resolution.    The internal laws of the State of
[State/Country] (excluding its rules governing conflicts of laws [and the U.N.
Convention on the International Sale of Goods]) govern the construction,
interpretation and other matters arising out of or in connection with this
Agreement and each of the Exhibits hereto (whether arising in contract, tort,
equity or otherwise). The parties agree that, in the event of any dispute or
disagreement between the parties as to the interpretation of any provision of
this Agreement (a “Dispute”), the matter, upon written request of either party,
will be referred for amicable resolution to the Steering Committee established
by Agilent and Verigy pursuant to the Separation Agreement. In the event any
Dispute cannot be resolved in a friendly manner by the Steering Committee, the
parties shall submit their dispute to the alternative dispute resolution
processes specified in the Separation Agreement.

 

8.3    Severability.    If
any provision of this Agreement is determined to be invalid, illegal or
unenforceable, the remaining provisions of this Agreement remain in full force,
if the essential terms and conditions of this Agreement for each party remain
valid, binding and enforceable.

 

8.4    Entire Agreement.    This
Agreement, and each of the schedules appended hereto, constitutes the final
agreement between the parties, and is the complete and exclusive statement of
the parties’ agreement on the matters contained herein. All prior and
contemporaneous negotiations and agreements between the parties with respect to
the matters contained herein are superseded by this Agreement.

 

8.5    Counterparts.    The
parties may execute this Agreement in multiple counterparts, each of which
constitutes an original as against the party that signed it, and both of which
together constitute one agreement. The signatures of both parties need not
appear on the same counterpart. The delivery of signed counterparts by
facsimile or email transmission that includes a copy of the sending party’s
signature is as effective as signing and delivering the counterpart in person.

 

8.6    Headings.    The
captions, titles and headings included in this Agreement are for convenience
only, and do not affect this Agreement’s construction or interpretation. When a
reference is made in this Agreement to an article or schedule, such reference
will be to an article of, or a schedule to, this Agreement unless otherwise
indicated.

 

[This space intentionally left blank]

 

C-4

 

IN WITNESS WHEREOF, the
parties have caused this Agreement to be executed by their duly authorized and
empowered representatives with effect as of the Effective Date. 

 

	
  “Seller”

  	
  “Buyer”

  
	
   

  	
   

  
	
  [•], a company organized under the laws of [•]

  	
  [•],a company organized under the laws of [•]

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  

 

C-5

 

SCHEDULE 1

 

Local Assets

 

Local Assets consist of
the following:

 

(a)   all
right, title or interest in or to Leases representing the Assigned Real
Property and the Subleased Real Property;

 

(b)   all
office supplies, maintenance supplies and packaging materials, together with
spare parts, supplies and promotional materials and all inventories in each
case to the extent held exclusively or primarily for use in the Business
(including raw materials, purchased goods, parts, containers, recycled
materials, work in process, supplies, finished goods and demo and consignment
inventory) and located on the Assigned Real Property or the Subleased Real
Property, in transit to or from the Assigned Real Property or the Subleased Real
Property, on the books of Seller, held by vendors or which otherwise are used
or held for use exclusively or primarily in connection with the Business;

 

(c)   all
fixtures, machinery, equipment, vehicles, furniture, tools and tooling,
instruments, spare parts, supplies (including storeroom supplies), pallets,
office and laboratory equipment, testing facilities, materials, fuel and other
personal property, owned or leased, not normally included in inventory, that
are used or held for use exclusively or primarily in connection with the
Business;

 

(d)   all
automobiles owned by Seller and used exclusively or primarily by Transferred
Employees, and leasehold interests in all leases of automobiles leased by
Seller and used exclusively or primarily by Transferred Employees;

 

(e)   all
accounts receivable from Seller in respect of the Business, including, without
limitation, trade account receivables, bad debt allowances, employee loans and
unidentified receipts;

 

(f)    all
right, title or interest in or to the sales contracts, Customer Contracts,
Supplier Contracts, maintenance or service agreements, purchase orders for
materials and other services, dealer and distributorship agreements,
advertising and promotional agreements, equipment leases, joint ventures, partnership
agreement or other agreements (including but not limited to any agreements of
Agilent with suppliers, sales representatives, distributors, agents, lessees of
Personal Property, licensors, licensees, consignors and consignees specified
therein but excluding any licenses relating to Intellectual Property Rights),
in each case, exclusively related to the Business (collectively, the “Assumed Contracts”);

 

(g)   all
warranties, guarantees, claims, rights, credits, causes of action and rights of
setoff against third parties to the extent relating to or arising from either
the Business or the Local Assets;

 

(h)   to
the extent transferable, all permits, certificates, licenses (excluding
licenses relating to Intellectual Property Rights), orders, franchises,
registrations, variances, tax abatements, approvals and other similar rights or
authorizations of any Governmental Authority to the extent exclusively related
to the ownership, maintenance and operation of the Business;

 

(i)    all
customers’ files, credit information, supplier lists, parts lists, vendor
lists, business correspondence, business lists, sales literature, promotional
literature, other selling and advertising materials and all other assets and
rights exclusively or primarily related to the Business; provided, however,
that to the extent any such materials also relate to or arise from or are used
in connection with the Retained Business, or any such information is commingled
with information used in the Retained Business, both parties shall have equal
rights to use and license others to use such materials and information, and the
original version of all such materials and of all tangible embodiments of such
information shall not be a Local Asset and shall be retained by Seller with
either (i) accurate copies thereof to be provided to Buyer on the
Separation Date, or (ii) access (including the right to make copies)
thereto provided to Buyer from and after the Separation Date, in either case,
at Seller’s option;

 

(j)    except
as set forth in any other Transaction Document, all marketing, personnel,
financial and other books and all other documents, microfilm and business
records and correspondence wherever located, exclusively or primarily related
to the Business; provided, however, that to the extent any such

 

 

C-

 

documents also relate to
or arise from or are used in connection with the Retained Business, or any such
information is commingled with information used in the Retained Business, the
original version of all such materials and of all tangible embodiments of such
information shall not be a Local Asset and shall be retained by Seller with
either (i) accurate copies thereof to be provided to Buyer on the
Separation Date, or (ii) access (including the right to make copies) thereto
provided to Buyer from and after the Separation Date, in either case, at Seller’s
option;

 

(k)   [not
applicable];

 

(l)    the
Transferred IT Infrastructure;

 

(m)  [not
applicable];

 

(n)   [not
applicable]; and

 

(o)   all
other assets and rights of Seller to the extent such assets are used
exclusively or primarily in the Business, are not Local Excluded Assets and are
not of a category or type described in the foregoing clauses (a) through
(n).

 

With respect to the Local
Assets identified in foregoing clauses (a) and (c), to the extent such
Transferred Assets are leased or licensed from a third party, the transfer to
Buyer will be subject to the terms of such lease or license and the inclusion
in the Local Assumed Liabilities of the obligations of Seller under such lease
or license to the extent (but only to the extent) related to such Local Assets.

 

Notwithstanding the
foregoing, (i) the Local Assets will not include any Local Excluded Assets
and (ii) all transfers, deliveries or transmissions of information
included in the Local Assets pursuant to the foregoing paragraphs (i) and
(j) shall be made pursuant to the terms of the Master Separation
Agreement.

 

C-

 

SCHEDULE 2

 

Local Assumed Liabilities

 

None.

 

C-

 

SCHEDULE 3

 

Local Excluded Assets

 

The Local Excluded Assets
include the following:

 

(a)   cash,
bank accounts, certificates of deposit and other cash equivalents (other than
cash amounts specifically contributed to Verigy pursuant to the Master
Separation Agreement);

 

(b)   all
insurance policies and any rights, claims or chooses in action under such
insurance policies;

 

(c)   all
rights to refunds of any Tax payments, or prepayments or overpayments of any
Tax, with respect to periods prior to the Separation Date, including
recoverable payments of VAT or similar Taxes (except as provided in the Tax
Sharing Agreement);

 

(d)   notwithstanding
anything to the contrary contained herein or in the Intellectual Property
Matters Agreement, all Intellectual Property Rights, including without
limitation, the Transferred Intellectual Property Rights, the Transferred
Trademarks, the Transferred Licenses and the Business Technology;

 

(e)   enterprise-deployed,
centrally managed computer hardware used by Agilent or its Subsidiaries prior
to the Separation, including any such hardware that is used by or for the
Business prior to or as of the Separation, and all licenses or other agreements
with third parties concerning the use thereof other than the hardware and
software included in the Transferred IT Infrastructure;

 

(f)    equipment
and/or fixed assets of lessees located on Agilent-owned or leased real
property; and

 

(g)   assets
and Contracts relating to any Agilent Plan, except as expressly provided in the
Employee Matters Agreement;

 

(h)   the
following inventories: (i) 84K support inventory located in Santa Rosa, CA
(identified with the IBO value of F10095), and (ii) 93K Analog Modules
support inventory located in Hachioji, Japan (identified with the IBO value of
F10105); and

 

(i)    Agilent
Shared Contracts.

 

C-

 

SCHEDULE 4

 

Local Excluded Liabilities

 

None.

 

C-

 

[SCHEDULE 5

 

Local Purchase Price]

 

C-

 

EXHIBIT D

EXCLUDED ASSETS

 

The Excluded Assets
include the following:

 

(a)   cash,
bank accounts, certificates of deposit and other cash equivalents (other than
cash amounts specifically contributed to Verigy pursuant to the Master
Separation Agreement);

 

(b)   all
insurance policies and any rights, claims or chooses in action under such
insurance policies;

 

(c)   all
rights to refunds of any Tax payments, or prepayments or overpayments of any
Tax, with respect to periods prior to the Separation Date, including
recoverable payments of VAT or similar Taxes (except as provided in the Tax
Sharing Agreement);

 

(d)   notwithstanding
anything to the contrary contained herein or in the Intellectual Property
Matters Agreement, (i) all Intellectual Property Rights other than the
Transferred Intellectual Property Rights, (ii) any Technology that is
owned by a third party that Agilent and its Subsidiaries do not have the right
to provide to Verigy and (iii) any Intellectual Property Rights under
non-transferable portfolio cross-licenses other than those that can be
transferred on a no cost basis;

 

(e)   enterprise-deployed,
centrally managed computer hardware used by Agilent or its Subsidiaries prior
to the Separation, including any such hardware that is used by or for the
Business prior to or as of the Separation, and all licenses or other agreements
with third parties concerning the use thereof other than the hardware and
software included in the Transferred IT Infrastructure;

 

(f)    equipment
and/or fixed assets of lessees located on Agilent-owned or leased real
property; and

 

(g)   assets
and Contracts relating to any Agilent Plan, except as expressly provided in the
Employee Matters Agreement;

 

(h)   the
following inventories: (i) 84K support inventory located in Santa Rosa, CA
(identified with the IBO value of F10095), and (ii) 93K Analog Modules
support inventory located in Hachioji, Japan (identified with the IBO value of
F10105); and

 

(i)    Agilent
Shared Contracts.

 

D-1

 

EXHIBIT E

GLOBAL REORGANIZATION AND RESTRUCTURING PLAN

 

This Global
Reorganization & Restructuring Plan summarizes the transactions to be
undertaken to effect the Transfer in relation to the subsidiaries and
businesses of Agilent and Verigy. The transactions are summarized by country
and, together, constitute the “Plan.” All capitalized terms used but not
otherwise defined herein will have the meaning ascribed thereto in the Master
Separation Agreement.

 

***

 

Initial Transaction Steps

 

Agilent
Technologies Inc. (“Agilent”) has established Verigy Pte. Ltd., a
newly formed Singaporean subsidiary (“Verigy”), with nominal capital. Through
the process described below, Agilent will contribute to Verigy its Business
assets and liabilities including, without limitation, its ownership interests
in the subsidiaries set forth on Schedule 1
hereto, and transfer its Business employees to Verigy and its subsidiaries as
set forth below. On or prior to the consummation of the various separation
steps, Verigy will convert from a “private” Singapore company to a “public”
Singapore company and, in connection therewith, its corporate name will become “Verigy Ltd.”

 

As detailed below, the
final Verigy structure will include first-tier and second-tier subsidiaries.
The subsidiaries in the Asia Pacific jurisdictions will be directly held by
Verigy, whereas the subsidiaries in the remaining jurisdictions will be held by
Verigy (Netherlands) BV, a newly-formed private limited liability company
organized under the laws of the Netherlands and wholly-owned subsidiary of
Verigy (“Dutch Holdco”).

 

As soon as commercially
practicable following the consummation of the various separation steps, Verigy
intends to offer and sell a limited number of Verigy ordinary shares pursuant
to the IPO. After the IPO, subject to the Master Separation Agreement, Agilent
may distribute the outstanding Verigy ordinary shares then owned by Agilent to
Agilent shareholders. 

 

	
  Country

  	
   

  	
  Transaction Description

  
	
  Canada

  	
   

  	
  Agilent Technologies
  Canada Inc. (“Agilent Canada”) will establish Verigy (Canada) Inc., a
  newly-formed Canadian subsidiary (“Verigy Canada”), with nominal capital.
  Agilent Canada will then sell 100% of the stock of Verigy Canada to Dutch
  Holdco for nominal consideration. Dutch Holdco will then capitalize Verigy
  Canada with equity, in an amount to be determined.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Agilent Canada will then
  sell its Business assets in Canada to Verigy Canada for cash plus assumption
  of liabilities, and transfer its Business employees to Verigy Canada.

  
	
   

  	
   

  	
   

  
	
  China

  	
   

  	
  Verigy will establish
  Verigy Semi-conductor Technologies (Shanghai) Co., a newly-formed Chinese
  subsidiary (“Verigy China”), with nominal capital. Verigy will then
  capitalize Verigy China with equity or debt, or a combination of both, in
  amounts to be determined. Each of Agilent Technologies Shanghai Company
  Limited (“AT Shanghai”), Agilent Technologies Company Limited (“AT China”)
  and Agilent Technologies Software Company Limited will then sell their
  Business assets to Verigy China for cash plus assumption of liabilities, and
  AT Shanghai will transfer its Business employees to Verigy China.

  

 

E-1

 

	
  France

  	
   

  	
  Agilent Technologies
  France SAS (“Agilent France) will organize Verigy France, a newly-formed
  subsidiary (“Verigy France”), with nominal capital. Agilent France will then
  sell 100% of the stock of Verigy France to Dutch Holdco for nominal
  consideration. Dutch Holdco will then capitalize Verigy France with equity in
  an amount to be determined in exchange for additional shares of Verigy
  France.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Agilent France will then
  sell its Business assets in France to Verigy France for cash plus assumption
  of liabilities, and transfer its Business employees to Verigy France.

  
	
   

  	
   

  	
   

  
	
  Germany

  	
   

  	
  Agilent Technologies
  International B.V. (“AT International BV”) will organize Verigy Germany GmbH,
  a newly-formed subsidiary (“Verigy GmbH”), with minimum registered capital.
  AT International BV will then sell 100% of the stock of Verigy GmbH to Dutch
  Holdco for nominal consideration. Verigy will then capitalize Dutch Holdco
  with an equity.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Agilent Technologies
  Deutschland Holding GmbH and its subsidiary group including Agilent Technologies
  Sales & Services GmbH & Co. KG, Agilent Technologies R&D and
  Marketing GmbH & Co. KG, and Agilent Technologies Manufacturing GmbH
  & Co. KG (collectively the “Agilent Germany Group”), will transfer their
  Business assets and liabilities in Germany to Verigy GmbH as follows:
  (i) Agilent Technologies R&D and Marketing GmbH & Co. KG
  (“Agilent Germany R&D”) will sell certain of its Business assets and
  liabilities in Germany (the “Contributed German Assets”) to Dutch Holdco.
  Dutch Holdco will then resolve an in-kind capital increase of Verigy GmbH and
  will direct the Agilent Germany R&D to assign the Business assets
  directly to Verigy GmbH; and (ii) the Agilent Germany Group will sell
  all of its remaining Business assets and liabilities in Germany (the “Local
  German Assets”) directly to Verigy GmbH, and Agilent Germany R&D will
  transfer its Business employees to Verigy GmbH, and the Dutch Holdco will pay
  the purchase price for such Local German Assets for and on behalf of Verigy
  GmbH, such payment to be treated as a contribution to capital reserves of
  Verigy GmbH.

  
	
   

  	
   

  	
   

  
	
  Italy

  	
   

  	
  Agilent Technologies
  Italia S.p.A. (“Agilent Italy”) will organize Verigy Italia S.r.L., a
  newly-formed subsidiary (“Verigy Italy”), with nominal capital. Agilent Italy
  will then contribute its Business assets and liabilities in Italy (other than
  trade receivables relating to the Business in Italy) to Verigy Italy in
  exchange for an additional share of Verigy Italy, and transfer its Business
  employees to Verigy Italy. Agilent Italy will then sell 100% of the stock of
  Verigy Italy to Dutch Holdco. Agilent Italy will sell to Verigy GmbH the
  trade receivables relating to the Business in Italy.

  
	
   

  	
   

  	
   

  
	
  Japan

  	
   

  	
  Agilent Technologies
  Singapore (Holdings) Pte. Ltd. (“AT Singapore Holdings”) will organize
  Verigy (Japan) K.K., a newly-formed subsidiary (“Verigy Japan”), with nominal
  capital. AT Singapore Holdings will then sell 100% of the stock of Verigy
  Japan to Verigy for nominal consideration. Verigy will then capitalize Verigy
  Japan with equity or debt, or a combination of both, in amounts to be
  determined.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each of Agilent
  Technologies Japan, Ltd. (“AT Japan”), Yokogawa Analytical Systems, Inc.
  (“YAS”), and Agilent Technologies International Japan, Ltd. (“Agilent
  International Japan”) will then sell its Business assets in Japan to Verigy
  Japan for cash plus assumption of liabilities, and AT Japan will transfer its
  Business employees to Verigy Japan.

  

 

E-2

 

	
  Korea

  	
   

  	
  Agilent Technologies Korea
  Limited (“Agilent Korea”) will organize Verigy Korea Ltd., a
  newly-formed subsidiary (“Verigy Korea”), with nominal capital. Agilent Korea
  will then sell 100% of the stock of Verigy Korea to Verigy for nominal
  consideration. Verigy will then capitalize Verigy Korea with equity or debt,
  or a combination of both, in amounts to be determined.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Agilent Korea will then
  sell its Business assets in Korea to Verigy Korea for cash plus assumption of
  liabilities, and transfer its Business employees to Verigy Korea.

  
	
   

  	
   

  	
   

  
	
  Malaysia

  	
   

  	
  Agilent Technologies Sales
  (Malaysia) Sdn. Bhd. (“Agilent Malaysia”) will acquire an existing Malaysian
  company formed with nominal capital named Modular Summer Sdn. Bhd. (the
  “Shelf Company”). Agilent Malaysia will transfer ownership of the Shelf
  Company to Verigy and the Shelf Company will be renamed Verigy (Malaysia)
  Sdn. Bhd. (“Verigy Malaysia”). Verigy will then capitalize Verigy Malaysia
  with equity or debt, or a combination of both, in amounts to be determined.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each of Agilent Malaysia,
  Agilent Technologies (Malaysia) Sdn. Bhd. and Agilent Technologies Microwave
  Products (M) Sdn. Bhd. will then sell its Business assets in Malaysia to
  Verigy Malaysia for cash plus assumption of liabilities, and Agilent Malaysia
  will transfer its Business employees to Verigy Malaysia.

  
	
   

  	
   

  	
   

  
	
  Netherlands

  	
   

  	
  AT International BV will
  organize Dutch Holdco with nominal capital. AT International BV will then
  sell 100% of the stock of Dutch Holdco to Verigy for nominal consideration.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Verigy will then capitalize
  Dutch Holdco with equity in amounts to be determined in order to fund
  lower-tier acquisitions of the Business.

  
	
   

  	
   

  	
   

  
	
  Singapore

  	
   

  	
  Agilent Technologies
  Singapore (Sales) Pte Ltd (“AT Singapore Sales”) will sell the Business
  assets (other than the Intellectual Property Rights) in Singapore to Verigy
  for cash plus assumption of liabilities, and transfer its Business employees.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Agilent and AT Singapore
  Holdings will organize Verigy (Singapore) Pte. Ltd., a newly-formed
  subsidiary (“IP Holdco”), with nominal capital. Agilent Singapore Holdings
  will then sell 100% of the stock of IP Holdco to Verigy for nominal
  consideration. Verigy will then capitalize IP Holdco with equity or debt, or
  a combination of both, in amounts to be determined.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AT Singapore Holdings will
  then sell and license to IP Holdco certain Intellectual Property Rights
  relating to the Business for cash plus assumption of liabilities.

  
	
   

  	
   

  	
   

  
	
  Switzerland

  	
   

  	
  Agilent Technologies
  International Sàrl will sell the Business assets in Switzerland to Verigy for
  cash plus assumption of liabilities.

  
	
   

  	
   

  	
   

  
	
  Taiwan

  	
   

  	
  Verigy will form Verigy
  Pte. Ltd. Taiwan Branch, a newly-formed Taiwanese branch office (“Taiwan
  Branch”), with the minimal capital requirement of NT$5,000,000. Verigy will
  then capitalize Taiwan Branch with equity or debt, or a combination of both,
  in amounts to be determined.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Agilent Technologies
  Taiwan Ltd. will then sell its Business assets in Taiwan to Taiwan
  Branch for cash plus assumption of liabilities, and transfer its Business
  employees to Taiwan Branch.

  

 

E-3

 

	
  United States

  	
   

  	
  Agilent will form Verigy
  US, Inc., a Delaware corporation (“Verigy Sales”), and Verigy (US)
  Development Inc., a Delaware corporation (“Verigy Development”), with nominal
  capital. Verigy Sales will own 100% of the stock of Verigy Development.
  Agilent will then sell 100% of the stock of Verigy Sales to Dutch Holdco for
  nominal consideration. Dutch Holdco will then capitalize Verigy Sales with
  equity, in an amount to be determined.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Agilent will then sell the
  Business assets (other than Intellectual Property Rights) to Verigy Sales,
  and transfer the Business employees to Verigy Sales. Thereafter, Verigy Sales
  may contribute certain assets, and transfer certain employees to Verigy
  Development.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Agilent will then sell and
  license to IP Holdco certain Intellectual Property Rights relating to the
  Business for cash plus assumption of liabilities.

  
	
   

  	
   

  	
   

  
	
  Miscellaneous

  	
   

  	
  Singapore: The following Agilent entities may
  transfer a limited amount of Business assets and related liabilities to
  Verigy Singapore: Agilent Technologies Australia Pty Ltd, Agilent
  Technologies Hong Kong Limited, Agilent Technologies Singapore Vision
  Operation Pte Ltd, Agilent Technologies (Thailand) Limited and Agilent
  Technologies Singapore Pte Ltd.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Germany: The following Agilent entities may
  transfer a limited amount of Business assets and related liabilities to
  Verigy Germany: Agilent Technologies Italia S.p.A., Agilent Technologies
  Österreich GmbH, Agilent Technologies Belgium S.A./N.V., Agilent Technologies
  Denmark A/S, Agilent Technologies Finland Oy, Agilent Technologies Ireland
  Limited, Agilent Technologies Israel Ltd., Agilent Technologies
  Netherlands B.V, Agilent Technologies Spain, S.L., Agilent Technologies
  Sweden AB, Agilent Technologies Europe B.V. Meyrin Branch, Agilent
  Technologies (Schweiz AG) and Agilent Technologies UK Limited.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  United
  States: The
  following Agilent entities may transfer a limited amount of Business assets
  and related liabilities to Verigy Sales: Agilent Technologies Mexico, S.de
  R.L. de C.V. and Agilent Technologies Inter-Americas, Inc.

  

 

E-4

 

SCHEDULE 1

List of Stock Contributions to Verigy

 

1.             Verigy
US, Inc., a Delaware corporation.

 

2.             Verigy
(US) Development Inc., a Delaware corporation.

 

3.             Verigy
(Canada) Inc., a company organized under the federal laws of Canada.

 

4.             Verigy
France, a company organized under the laws of France.

 

5.             Verigy
Germany GmbH, a private limited liability company organized under the laws of
Germany.

 

6.             Verigy
Italia S.r.L., a limited liability company organized under the laws of Italy.

 

7.             Verigy
K.K., a company organized under the laws of Japan.

 

8.             Verigy
Korea Ltd., a limited liability company organized under the laws of Korea.

 

9.             Verigy
(Netherlands) BV, a private limited liability company organized under the laws
of the Netherlands.

 

10.           Verigy
(Singapore) Pte. Ltd., a private limited company organized under the laws
of Singapore.

 

11.           Verigy
(Malaysia) Sdn. Bhd.

 

E-5

 

EXHIBIT F

TRANSFERRED ASSETS

 

Transferred Assets
consist of the following:

 

(a)   all
right, title or interest in or to Leases representing the Assigned Real
Property and the Subleased Real Property;

 

(b)   all
office supplies, maintenance supplies and packaging materials, together with
spare parts, supplies and promotional materials and all inventories in each
case to the extent held exclusively or primarily for use in the Business
(including raw materials, purchased goods, parts, containers, recycled
materials, work in process, supplies, finished goods and demo and consignment
inventory) and located on the Assigned Real Property or the Subleased Real
Property, in transit to or from the Assigned Real Property or the Subleased
Real Property, on the books of Agilent, held by vendors or which otherwise are
used or held for use exclusively or primarily in connection with the Business;

 

(c)   all
fixtures, machinery, equipment, vehicles, furniture, fixtures, tools and
tooling, instruments, spare parts, supplies (including storeroom supplies),
pallets, office and laboratory equipment, testing facilities, materials, fuel
and other personal property, owned or leased, not normally included in
inventory, that are used or held for use exclusively or primarily in connection
with the Business;

 

(d)   all
automobiles owned by Agilent and its Subsidiaries and used exclusively or
primarily by Verigy Employees or Verigy Transferred Employees, and leasehold
interests in all leases of automobiles leased by Agilent and used exclusively
or primarily by Verigy Employees or Verigy Transferred Employees;

 

(e)   all
accounts receivable from Agilent or its Subsidiaries in respect of the
Business, including, without limitation, trade account receivables, bad debt
allowances, employee loans and unidentified receipts;

 

(f)    all
right, title or interest in or to the sales contracts, Customer Contracts,
Supplier Contracts, maintenance or service agreements, purchase orders for
materials and other services, dealer and distributorship agreements,
advertising and promotional agreements, equipment leases, joint ventures,
partnership agreement or other agreements (including but not limited to any
agreements of Agilent with suppliers, sales representatives, distributors,
agents, lessees of Personal Property, licensors, licensees, consignors and
consignees specified therein but excluding any licenses relating to
Intellectual Property Rights), in each case, exclusively related to the
Business (collectively, the “Assumed
Contracts”);

 

(g)   all
warranties, guarantees, claims, rights, credits, causes of action and rights of
setoff against third parties to the extent relating to or arising from any of
the Business, the Transferred Assets, Transferred Intellectual Property Rights,
Business Technology or Transferred Licenses;

 

(h)   to
the extent transferable, all permits, certificates, licenses (excluding
licenses relating to Intellectual Property Rights), orders, franchises,
registrations, variances, tax abatements, approvals and other similar rights or
authorizations of any Governmental Authority to the extent exclusively related
to the ownership, maintenance and operation of the Business;

 

(i)    all
customers’ files, credit information, supplier lists, parts lists, vendor
lists, business correspondence, business lists, sales literature, promotional
literature, other selling and advertising materials and all other assets and
rights exclusively or primarily related to the Business; provided, however,
that to the extent any such materials also relate to or arise from or are used
in connection with the Retained Business, or any such information is commingled
with information used in the Retained Business, both parties shall have equal
rights to use and license others to use such materials and information, and the
original version of all such materials and of all tangible embodiments of such

 

F-1

 

information shall not be
a Transferred Asset and shall be retained by Agilent with either
(i) accurate copies thereof to be provided to Verigy on the Separation
Date, or (ii) access (including the right to make copies) thereto provided
to Verigy from and after the Separation Date, in either case, at Agilent’s
option;

 

(j)    except
as set forth in any other Transaction Document, all marketing, personnel,
financial and other books and all other documents, microfilm and business
records and correspondence wherever located, exclusively or primarily related
to the Business; provided, however, that to the extent any such
documents also relate to or arise from or are used in connection with the
Retained Business, or any such information is commingled with information used
in the Retained Business, the original version of all such materials and of all
tangible embodiments of such information shall not be a Transferred Asset and
shall be retained by Agilent with either (i) accurate copies thereof to be
provided to Verigy on the Separation Date, or (ii) access (including the
right to make copies) thereto provided to Verigy from and after the Separation
Date, in either case, at Agilent’s option;

 

(k)   all
issued and outstanding stock, investments or similar interests of Agilent and
the Subsidiaries of Agilent listed on a schedule to the Master Separation
Agreement;

 

(l)    the
Transferred IT Infrastructure;

 

(m)  all of
Agilent’s equity interests in Touchdown Technologies, Inc., Pintail
Technologies, Inc. and Shanghai Hvatek Software Engineering Company
Limited;

 

(n)   all
of Agilent’s rights under the Flextronics Transfer Agreements; and

 

(o)   all
other assets and rights of Agilent and its Subsidiaries to the extent such
assets are used exclusively or primarily in the Business, are not Excluded
Assets and are not of a category or type described in the foregoing clauses
(a) through (l).

 

With respect to the
Transferred Assets identified in foregoing clauses (a) and (c), to the
extent such Transferred Assets are leased or licensed from a third party, the
transfer to Verigy will be subject to the terms of such lease or license and
the inclusion in the Assumed Liabilities of the obligations of Agilent and its
Subsidiaries under such lease or license to the extent (but only to the extent)
related to such Transferred Assets.

 

Notwithstanding the
foregoing, (i) the Transferred Assets will not include any Excluded Assets
and (ii) all transfers, deliveries or transmissions of information
included in the Transferred Assets pursuant to the foregoing paragraphs
(i) and (j) shall be made pursuant to the terms of the Master
Separation Agreement.

 

F-2

 

EXHIBIT G 

Litigation Disclosure Letter—Schedule 1

 

The following lawsuit is included on this Schedule 1:
Phil Angelico, Plaintiff, v. Agilent Technologies, Defendant, In Court of
Common Pleas of Lehigh County, Pennsylvania, Civil Division,
No. 2005-C-3504.

 

G-1

 

Litigation Disclosure Letter—Schedule 2

 

None

 

G-2

 

	
  Exhibit 10.67

  
	
   

  
	
  GENERAL ASSIGNMENT AND
  ASSUMPTION AGREEMENT between AGILENT TECHNOLOGIES, INC. and

  VERIGY LTD. Dated as of June 1, 2006

  
	
  TABLE OF CONTENTS

  
	
  ANNEX A

  
	
  SCHEDULE 1 Assigned Real Property

  
	
  SCHEDULE 2 Subleased Real
  Property

  
	
  EXHIBIT A FORM OF BILL OF
  SALE

  
	
  EXHIBIT B FORM OF
  ASSIGNMENT AND ASSUMPTION AGREEMENT

  
	
  EXHIBIT C LOCAL ASSET
  TRANSFER AGREEMENT

  
	
  ARTICLE 1 DEFINITIONS

  
	
  ARTICLE 2 PURCHASE AND
  SALE OF ASSETS

  
	
  ARTICLE 3 PURCHASE PRICE
  AND PAYMENT

  
	
  ARTICLE 4 EMPLOYEES

  
	
  ARTICLE 5 INTERPRETATION;
  CONFLICT OF TERMS

  
	
  ARTICLE 6 THIRD PARTIES

  
	
  ARTICLE 7 REPRESENTATIONS
  AND WARRANTIES

  
	
  ARTICLE 8 GENERAL
  PROVISIONS

  
	
  SCHEDULE 1

  
	
  SCHEDULE 2

  
	
  SCHEDULE 3

  
	
  SCHEDULE 4

  
	
  [SCHEDULE 5

  
	
  EXHIBIT D EXCLUDED ASSETS

  
	
  EXHIBIT E GLOBAL
  REORGANIZATION AND RESTRUCTURING PLAN

  
	
  Initial Transaction Steps

  
	
  SCHEDULE 1 List of Stock
  Contributions to Verigy

  
	
  EXHIBIT F TRANSFERRED
  ASSETS

  
	
  EXHIBIT G Litigation
  Disclosure Letter—Schedule 1

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