Document:

2006 Equity Incentive Plan

 Exhibit 10.2 
 VERIGY LTD. 
 2006
EQUITY INCENTIVE PLAN 
 (AS AMENDED
DECEMBER 2, 2009) 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE 1.
	  	 INTRODUCTION
	  	1
			
	 ARTICLE 2.
	  	 ADMINISTRATION
	  	1
	 2.1
	  	 Committee Composition
	  	1
	 2.2
	  	 Committee Responsibilities
	  	1
	 2.3
	  	 Administration with Respect to Substitute Awards
	  	2
	 2.4
	  	 Minimum Vesting Requirement
	  	2
			
	 ARTICLE 3.
	  	 SHARES AVAILABLE FOR GRANTS
	  	2
	 3.1
	  	 Basic Limitation
	  	2
	 3.2
	  	 Shares Returned to Reserve
	  	2
	 3.3
	  	 Substitute Awards
	  	3
	 3.4
	  	 Dividend Equivalents
	  	3
			
	 ARTICLE 4.
	  	 ELIGIBILITY
	  	3
	 4.1
	  	 Incentive Stock Options
	  	3
	 4.2
	  	 Other Grants
	  	3
			
	 ARTICLE 5.
	  	 OPTIONS
	  	3
	 5.1
	  	 Option Agreement
	  	3
	 5.2
	  	 Number of Shares
	  	3
	 5.3
	  	 Exercise Price
	  	4
	 5.4
	  	 Exercisability and Term
	  	4
	 5.5
	  	 Effect of Change in Control
	  	5
	 5.6
	  	 Buyout Provisions
	  	5
	 5.7
	  	 Payment for Option Shares
	  	5
			
	 ARTICLE 6.
	  	 SHARE APPRECIATION RIGHTS
	  	5
	 6.1
	  	 SAR Agreement
	  	5
	 6.2
	  	 Number of Shares
	  	6
	 6.3
	  	 Exercise Price
	  	6
	 6.4
	  	 Exercisability and Term
	  	6
	 6.5
	  	 Effect of Change in Control
	  	7
	 6.6
	  	 Exercise of SARs
	  	7
			
	 ARTICLE 7.
	  	 RESTRICTED SHARES
	  	7
	 7.1
	  	 Restricted Share Agreement
	  	7
	 7.2
	  	 Number of Shares
	  	7
	 7.3
	  	 Payment for Awards
	  	7
	 7.4
	  	 Restrictions & Conditions
	  	8
	 7.5
	  	 Effect of Change in Control
	  	8
	 7.6
	  	 Voting and Dividend Rights
	  	8
			
	 ARTICLE 8.
	  	 SHARE UNITS
	  	8
	 8.1
	  	 Share Unit Agreement
	  	8
	 8.2
	  	 Number of Shares
	  	8
	 8.3
	  	 Payment for Awards
	  	8

  

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	 8.4
	  	 Vesting Conditions
	  	8
	 8.5
	  	 Effect of Change in Control
	  	9
	 8.6
	  	 Voting and Dividend Rights
	  	9
	 8.7
	  	 Form and Time of Settlement of Share Units
	  	9
	 8.8
	  	 Creditors’ Rights
	  	10
			
	 ARTICLE 9.
	  	 AUTOMATIC GRANTS TO OUTSIDE DIRECTORS
	  	10
	 9.1
	  	 Initial Grants
	  	10
	 9.2
	  	 Annual Grants
	  	10
	 9.3
	  	 Cessation of Eligibility to Vest
	  	11
	 9.4
	  	 Accelerated Exercisability
	  	11
	 9.5
	  	 Exercise Price
	  	11
	 9.6
	  	 Term
	  	11
	 9.7
	  	 Affiliates of Outside Directors
	  	11
			
	 ARTICLE 10.
	  	 PROTECTION AGAINST DILUTION
	  	11
	 10.1
	  	 Adjustments
	  	11
	 10.2
	  	 Dissolution or Liquidation
	  	12
	 10.3
	  	 Reorganizations
	  	12
			
	 ARTICLE 11.
	  	 PAYMENT OF DIRECTOR’S FEES IN SECURITIES
	  	13
	 11.1
	  	 Effective Date
	  	13
	 11.2
	  	 Elections to Receive NSOs, Restricted Shares or Share Units
	  	13
	 11.3
	  	 Number and Terms of NSOs, Restricted Shares or Share Units
	  	13
			
	 ARTICLE 12.
	  	 LIMITATION ON RIGHTS
	  	14
	 12.1
	  	 Retention Rights
	  	14
	 12.2
	  	 Shareholders’ Rights
	  	14
	 12.3
	  	 Regulatory Requirements
	  	14
			
	 ARTICLE 13.
	  	 WITHHOLDING TAXES
	  	14
	 13.1
	  	 General
	  	14
	 13.2
	  	 Share Withholding
	  	14
			
	 ARTICLE 14.
	  	 LIMITATION ON PAYMENTS
	  	14
	 14.1
	  	 Scope of Limitation
	  	14
	 14.2
	  	 Basic Rule
	  	15
	 14.3
	  	 Reduction of Payments
	  	15
	 14.4
	  	 Overpayments and Underpayments
	  	15
	 14.5
	  	 Related Corporations
	  	16
			
	 ARTICLE 15.
	  	 FUTURE OF THE PLAN
	  	16
	 15.1
	  	 Term of the Plan
	  	16
	 15.2
	  	 Amendment or Termination
	  	16
	 15.3
	  	 Shareholder Approval
	  	16
			
	 ARTICLE 16.
	  	 DEFINITIONS
	  	16

  

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 VERIGY LTD. 
 2006 EQUITY INCENTIVE PLAN 
 ARTICLE 1. INTRODUCTION. 
 The purpose of the Plan is to promote the
long-term success of the Company and the creation of shareholder value by (a) encouraging Employees, Outside Directors and Consultants to focus on critical long-range objectives, (b) encouraging the attraction and retention of Employees,
Outside Directors and Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and Consultants directly to shareholder interests through increased share ownership. The Plan seeks to achieve this purpose by
providing for Awards in the form of Options (which may constitute ISOs or NSOs), SARs, Restricted Shares or Share Units. 
 The
Plan shall be governed by, and construed in accordance with, the laws of the Republic of Singapore (except its choice-of-law provisions). 
 ARTICLE 2. ADMINISTRATION. 
 2.1 Committee Composition. The Committee shall administer the Plan. The
Committee shall consist exclusively of two or more directors of the Company, who shall be appointed by the Board. In addition, each member of the Committee shall meet the following requirements: 
 (a) Any listing standards prescribed by the principal securities market on which the Company’s equity securities are
traded; 
 (b) Such requirements as the Internal Revenue Service may establish for outside directors acting under
plans intended to qualify for exemption under section 162(m)(4)(C) of the Code; 
 (c) Such requirements as
the Securities and Exchange Commission may establish for administrators acting under plans intended to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange Act; and 
 (d) Any other requirements imposed by applicable law, regulations or rules. 
 2.2 Committee Responsibilities. The Committee shall (a) select the Employees, Outside Directors and Consultants who are to
receive Awards under the Plan, (b) determine the type, number, vesting requirements and other features and conditions of such Awards, (c) interpret the Plan, (d) make all other decisions relating to the operation of the Plan and
(e) carry out any other duties delegated to it by the Board. The Committee may adopt such rules or guidelines as it deems appropriate to implement the Plan, including rules and procedures relating to the operation and administration of the Plan
in order to accommodate the specific

  

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requirements of local laws and procedures. Without limiting the generality of the foregoing, the Committee is specifically authorized to adopt (a) rules and procedures regarding the
conversion of local currency, withholding procedures and handling of stock certificates that vary with local requirements and (b) such sub-plans and Plan addenda as the Committee deems desirable to accommodate foreign tax laws, regulations and
practice. The Committee’s determinations under the Plan shall be final and binding on all persons. 
 2.3 Administration
with Respect to Substitute Awards. Notwithstanding any other provision of this Plan, in connection with issuing Substitute Awards, the Committee may provide that the Substitute Awards shall be subject to the terms and conditions of the plan
and/or agreements under which the awards being assumed or substituted were originally issued, even where such terms are in conflict or inconsistent with the terms of this Plan. 
 2.4 Minimum Vesting Requirement. All Awards shall vest over a period of not less than three years, except that Awards of Share Units
shall vest over a period of not less than one year if they vest on the basis of one or more performance criteria set forth in Appendix A. This Section 2.4 shall not apply to the following: 
 (a) An Award granted prior to December 2, 2009; 
 (b) An automatic Award to an Outside Director under Article 9; and 
 (c) An Award that covers, together with all prior Awards granted under this Subsection (c), a number of Shares not in
excess of the sum of (i) 10% of the Shares available for issuance under Article 3 as of December 2, 2009, plus (ii) 10% of any Shares added after December 2, 2009, to the number of Shares available for issuance under
Article 3. If Shares subject to an Award that was granted under this Subsection (c) are returned to the reserve pursuant to Section 3.2, then such Award shall thereafter be disregarded in calculating the number of Shares that are
available for Awards under this Subsection (c). 
 ARTICLE 3. SHARES AVAILABLE FOR GRANTS. 
 3.1 Basic Limitation. Shares issued pursuant to the Plan may be unissued shares or treasury shares. The aggregate number of Shares
issued under the Plan shall not exceed (a) 13,300,000* plus (b) the additional Shares described in Section 3.3. The number of Shares that are subject to Awards outstanding at any time under the Plan shall not exceed the number of
Shares that then remain available for issuance under the Plan. Notwithstanding any other provision of this Plan, the maximum number of Shares that may be issued upon the exercise of ISOs under this Plan is 13,300,000*. The limitations of this
Section 3.1 shall be subject to adjustment pursuant to Article 10. 
 3.2 Shares Returned to Reserve. If
Options, SARs or Share Units (including Replacement Awards) are forfeited or terminated for any other reason before being exercised or settled, then the Shares subject to such Options, SARs or Share Units shall again become available for issuance
under the Plan. If SARs are exercised, then only the number of Shares (if any) actually issued in settlement of such SARs shall reduce the number available under Section 3.1 and the balance shall again become available for issuance under the
Plan. If Share Units are settled, then only the number of Shares (if any) actually issued in settlement of such Share Units shall reduce the number available under Section 3.1 and the balance shall again become available for issuance under the
Plan. 
  
  

	*	Includes 3,000,000 of ordinary shares subject to shareholder approval at the 2010 Annual General Meeting of Shareholders. 

  

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 3.3 Substitute Awards. Except with respect to Substitute Awards issued with respect
to awards previously issued by Agilent Technologies, Inc., Substitute Awards shall not reduce the Shares authorized for issuance under the Plan or authorized for grant to a Participant in any calendar year. Additionally, in the event that a company
acquired by the Company or any Subsidiary, or with which the Company or any Subsidiary combines, has shares available under a pre-existing plan approved by shareholders and not adopted in contemplation of such acquisition or combination, the shares
available for grant pursuant to the terms of such pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the
consideration payable to the holders of ordinary shares or common shares of the entities party to such acquisition or combination) may be used for Awards under the Plan and shall not reduce the Shares authorized for issuance under the Plan; provided
that Awards using such available Shares shall not be made after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were employees,
directors or consultants of such acquired or combined company before such acquisition or combination. 
 3.4 Dividend
Equivalents. Any dividend equivalents paid or credited under the Plan shall be applied against the number of Shares that may be issued under the Plan if such dividend equivalents are converted into Share Units. 
 ARTICLE 4. ELIGIBILITY. 
 4.1 Incentive Stock Options. Only Employees who are common-law employees of the Company, a Parent or a Subsidiary shall be eligible for the grant of ISOs. In addition, an Employee who owns more than 10% of the total combined voting
power of all classes of outstanding shares of the Company or any of its Parents or Subsidiaries shall not be eligible for the grant of an ISO unless the requirements set forth in section 422(c)(5) of the Code are satisfied. 
 4.2 Other Grants. Only Employees, Outside Directors and Consultants shall be eligible for the grant of Restricted Shares, Share
Units, NSOs or SARs. 
 ARTICLE 5. OPTIONS. 
 5.1 Option Agreement. Each grant of an Option under the Plan shall be evidenced by an Option Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms of
the Plan and may be subject to any other terms that are not inconsistent with the Plan. The Option Agreement shall specify whether the Option is an ISO or an NSO. The provisions of the various Option Agreements entered into under the Plan need not
be identical. 
 5.2 Number of Shares. Each Option Agreement shall specify the number of Shares subject to the Option and
shall provide for the adjustment of such number in accordance with Article 10. Options granted to any Optionee in a single fiscal year of the Company shall not

  

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

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

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 (d) Voluntary Severance Incentive Program. If an Optionee ceases to
be an Awardee Eligible to Vest as a result of participation in a voluntary severance incentive program or workforce management plan approved by the Board or a Committee, unvested Options shall vest and Options shall remain exercisable, to the extent
permitted under applicable laws and provided by the Board or a Committee in such voluntary severance incentive program or workforce management plan. Absent a specific provision for acceleration or extended exercise period, the provisions of
Subsection (b) above shall apply. 
 5.5 Effect of Change in Control. The Committee may determine, at the time of
granting an Option or thereafter, that such Option shall become exercisable as to all or part of the Shares subject to such Option if a Change in Control occurs with respect to the Company or if the Optionee’s Service is terminated without
Cause after a Change in Control. In addition, acceleration of exercisability may be required under Section 10.3. 
 5.6
Buyout Provisions. The Committee may at any time (a) offer to buy out for a payment in cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to cash out an Option previously granted, in either case
at such time and based upon such terms and conditions as the Committee shall establish. 
 5.7 Payment for Option Shares.

 (a) General Rule. The entire Exercise Price of Shares issued upon exercise of Options shall be payable
in cash or cash equivalents at the time when such Shares are purchased, except that the Committee at its sole discretion may accept payment of the Exercise Price in any other form(s) described in this Section 5.7. However, if the Optionee is an
Outside Director or executive officer of the Company, he or she may pay the Exercise Price in a form other than cash or cash equivalents only to the extent permitted by section 13(k) of the Exchange Act. 
 (b) Exercise/Sale. With the Committee’s consent, all or any part of the Exercise Price and any withholding taxes
may be paid by delivering (in a manner prescribed by the Company) an irrevocable direction to a securities broker approved by the Company to sell all or part of the Shares being purchased under the Plan and to deliver all or part of the sales
proceeds to the Company. 
 (c) Other Forms of Payment. With the Committee’s consent, all or any part
of the Exercise Price and any withholding taxes may be paid in any other form that is consistent with applicable laws, regulations and rules. 
 ARTICLE 6. SHARE APPRECIATION RIGHTS. 
 6.1 SAR Agreement. Each grant of a SAR under the Plan shall be
evidenced by a SAR Agreement between the Optionee and the Company. Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various SAR
Agreements entered into under the Plan need not be identical. 
  

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 6.2 Number of Shares. Each SAR Agreement shall specify the number of Shares to which
the SAR pertains and shall provide for the adjustment of such number in accordance with Article 10. SARs granted to any Optionee in a single fiscal year shall in no event pertain to more than 750,000 Shares, except that SARs granted to a new
Employee in the fiscal year of the Company in which his or her Service as an Employee first commences shall not pertain to more than 1,500,000 Shares. The limitations set forth in the preceding sentence shall be subject to adjustment in accordance
with Article 10. 
 6.3 Exercise Price. Each SAR Agreement shall specify the Exercise Price; provided that the
Exercise Price shall in no event be less than 100% of the Fair Market Value of a Share on the Date of Grant. Other than in connection with an event or transaction described in Article 10, SARs may not be repriced, replaced, regranted through
cancellation or modified without shareholder approval if the effect of such repricing, replacement, regrant or modification would be to reduce the exercise price of such SARs. 
 6.4 Exercisability and Term. 
 (a) General. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become exercisable, subject to Section 2.4. The SAR Agreement shall also specify the term of
the SAR. SARs may be awarded in combination with Options, and such an Award may provide that the SARs will not be exercisable unless the related Options are forfeited. An SAR may be included in an ISO only at the time of grant but may be included in
an NSO at the time of grant or thereafter. An SAR granted under the Plan may provide that it will be exercisable only in the event of a Change in Control. 
 (b) Cessation of Eligibility to Vest. Unless otherwise provided by the SAR Agreement, if an Optionee ceases to be an Awardee Eligible to Vest, other than as a result of circumstances described in
Subsection (c) or (d) below, such Optionee’s SAR shall terminate immediately as to the unvested Shares and such unvested Shares shall revert to the Plan, and the SAR shall be exercisable as to the vested Shares for three months after
the date such individual ceases to be an Awardee Eligible to Vest or, if earlier, the expiration of the term of such SAR. If, for any reason, the Optionee does not exercise his or her vested SARs within the appropriate exercise period set forth
above, the SAR shall automatically terminate, and the Shares covered by such SAR shall revert to the Plan. 
 (c)
Death, Disability or Retirement of Optionee. Unless otherwise provided by the SAR Agreement, if an Optionee ceases to be an Awardee Eligible to Vest as a result of the Optionee’s death, Disability, or Separation from Service after age 55
with at least 15 years of full-time equivalent service with the Company or an affiliate (including service with the Company’s predecessor companies), then (i) the vested portion of such Optionee’s SAR shall be determined by adding 12
months to the length of his or her actual Service, (ii) such Optionee’s SAR shall terminate immediately as to the unvested Shares and such unvested Shares shall revert to the Plan, and (iii) such Optionee’s SAR shall be
exercisable as to the vested Shares for one year after the date such individual ceases to be an Awardee Eligible to Vest or, if earlier, the expiration of the term of such SAR. Where an individual ceases to be an Awardee Eligible to Vest as a result
of death, the SAR may be exercised by the beneficiary designated by the Optionee, the executor or administrator of the Optionee’s estate or, if none, by the person(s)

  

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entitled to exercise the SAR under the Optionee’s will or the laws of descent or distribution. If, for any reason, the SAR is not so exercised within the time specified herein, the SAR shall
automatically terminate, and the Shares covered by such SAR shall revert to the Plan. 
 (d) Voluntary
Severance Incentive Program. If an Optionee ceases to be an Awardee Eligible to Vest as a result of participation in a voluntary severance incentive program or workforce management plan approved by the Board or a Committee, unvested SARs shall
vest and SARs shall remain exercisable, to the extent permitted under applicable laws and provided by the Board or a Committee in such voluntary severance incentive program or workforce management plan. Absent a specific provision for acceleration
or extended exercise period, the provisions of Subsection (b) above shall apply. 
 6.5 Effect of Change in Control.
The Committee may determine, at the time of granting a SAR or thereafter, that such SAR shall become exercisable as to all or part of the Shares subject to such SAR if a Change in Control occurs with respect to the Company or if the Optionee’s
Service is terminated without Cause after a Change in Control. In addition, acceleration of exercisability may be required under Section 10.3. 
 6.6 Exercise of SARs. Upon exercise of a SAR, the Optionee (or any person having the right to exercise the SAR after his or her death) shall receive from the Company consideration in the form of
(a) Shares, (b) cash or (c) a combination of Shares and cash, as the Committee shall determine. Each SAR Agreement shall specify the amount and/or Fair Market Value of the consideration that the Optionee will receive upon exercising
the SAR; provided that the aggregate consideration shall not exceed the amount by which the Fair Market Value (on the date of exercise) of the Shares subject to the SAR exceeds the Exercise Price of the SAR. If, on the date when a SAR expires, the
Exercise Price of the SAR is less than the Fair Market Value of the Shares subject to the SAR on such date but any portion of the SAR has not been exercised, then the SAR shall automatically be deemed to be exercised as of such date with respect to
such portion. An SAR Agreement may also provide for an automatic exercise of the SAR on an earlier date. 
 ARTICLE 7. RESTRICTED SHARES.

 7.1 Restricted Share Agreement. Each grant of Restricted Shares under the Plan shall be evidenced by a Restricted
Share Agreement between the recipient and the Company. Such Restricted Shares shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various
Restricted Share Agreements entered into under the Plan need not be identical. 
 7.2 Number of Shares. Each Restricted
Share Agreement shall specify the number of Shares to which the Agreement pertains. Such number shall be subject to the limitation of Section 7.4(a), if applicable. 
 7.3 Payment for Awards. Restricted Shares may be sold or awarded under the Plan for such consideration as the Committee may determine, including (without limitation) cash, cash equivalents,
property, past services and future services. Within the limitations of the Plan, the Committee may accept the cancellation of outstanding options in return for the grant of Restricted Shares. 
  

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 7.4 Restrictions & Conditions. The Committee may, at the time of granting
Restricted Shares, impose such conditions and restrictions on the Restricted Shares as it deems appropriate; provided, however, that (a) Section 2.4 shall apply and (b) such conditions and restrictions may not result in the Company
reacquiring from a Participant Restricted Shares that have been issued. 
 7.5 Effect of Change in Control. The Committee
may determine, at the time of granting Restricted Shares or thereafter, that all or some of any restrictions imposed on such Restricted Shares shall be removed if a Change in Control occurs with respect to the Company or if the Participant’s
Service is terminated without Cause after a Change in Control. 
 7.6 Voting and Dividend Rights. The holders of
Restricted Shares awarded under the Plan shall have the same voting, dividend and other rights as the Company’s other shareholders. A Restricted Share Agreement, however, may require that the holders of Restricted Shares invest any cash
dividends received in additional Restricted Shares. Such additional Restricted Shares shall be subject to the same conditions and restrictions as the Award with respect to which the dividends were paid. 
 ARTICLE 8. SHARE UNITS. 
 8.1 Share Unit Agreement. Each grant of Share Units under the Plan shall be evidenced by a Share Unit Agreement between the recipient and the Company. Such Share Units shall be subject to all applicable terms of the Plan and may be
subject to any other terms that are not inconsistent with the Plan. The provisions of the various Share Unit Agreements entered into under the Plan need not be identical. 
 8.2 Number of Shares. Each Share Unit Agreement shall specify the number of Shares to which the Share Unit pertains and shall provide for the adjustment of such number in accordance with
Article 10. Such number shall be subject to the limitation of Section 8.4(a), if applicable. 
 8.3 Payment for
Awards. To the extent that an Award is granted in the form of Share Units, no cash consideration shall be required of the Award recipients. 
 8.4 Vesting Conditions. 
 (a) General. Each Award of
Share Units may or may not be subject to vesting, subject to Section 2.4. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Share Unit Award. The Committee may include among such conditions
continued performance of Service and/or the requirement that the performance of the Company (or a Subsidiary, Affiliate or business unit of the Company) for a specified period of not less than one fiscal year equal or exceed performance targets
determined by the Committee. Such targets shall be based on one or more of the criteria set forth in Appendix A, and shall be determined not later than the 90 days following commencement of the specified performance period. As to Awards with
respect to which the Company desires to secure an exemption from

  

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section 162(m) of the Code, no Participant shall receive more than 400,000 Share Units subject to performance-based vesting conditions in a single fiscal year, except that a new Employee may
receive up to 800,000 Share Units subject to performance-based vesting conditions in the fiscal year of the Company in which his or her Service as an Employee first commences. The limitations set forth in the preceding sentence shall be subject to
adjustment in accordance with Article 10. 
 (b) Cessation of Eligibility to Vest. Unless otherwise
provided by the Share Unit Award, if a Participant ceases to be an Awardee Eligible to Vest, other than as a result of circumstances described in Subsection (c) or (d) below, then all unvested Share Units subject to a Share Unit Agreement
shall immediately be forfeited and shall revert to the Plan. 
 (c) Death, Disability or Retirement of
Participant. Unless otherwise provided by the Share Unit Award, if a Participant ceases to be an Awardee Eligible to Vest as a result of the Participant’s death, Disability, or Separation from Service after age 55 with at least 15 years of
full-time equivalent service with the Company or an affiliate (including service with the Company’s predecessor companies), the provisions of Subsection (b) above will apply except that the vested portion of such Participant’s Share
Unit Award shall be determined by adding 12 months to the length of his or her actual Service. 
 (d)
Voluntary Severance Incentive Program. If a Participant ceases to be an Awardee Eligible to Vest as a result of participation in a voluntary severance incentive program or workforce management plan approved by the Board or a Committee,
unvested Share Units shall vest to the extent permitted under applicable laws and provided by the Board or a Committee in such voluntary severance incentive program or workforce management plan. Absent a specific provision for acceleration, the
provisions of Subsection (b) above shall apply. 
 8.5 Effect of Change in Control. The Committee may determine, at
the time of granting Share Units or thereafter, that all or part of such Share Units shall become vested if a Change in Control occurs with respect to the Company or if the Participant’s Service is terminated without Cause after a Change in
Control. In addition, acceleration of vesting may be required under Section 10.3. 
 8.6 Voting and Dividend Rights.
The holders of Share Units shall have no voting rights. Prior to settlement or forfeiture, any Share Unit awarded under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents. Such right entitles the holder
to be credited with an amount equal to all cash dividends paid on one Share while the Share Unit is outstanding. Dividend equivalents may be converted into additional Share Units. Settlement of dividend equivalents may be made in the form of cash,
in the form of Shares, or in a combination of both. Prior to distribution, any dividend equivalents that are not paid shall be subject to the same conditions and restrictions as the Share Units to which they attach. 
 8.7 Form and Time of Settlement of Share Units. Settlement of vested Share Units may be made in the form of (a) cash,
(b) Shares or (c) any combination of both, as determined by the Committee. The actual number of Share Units eligible for settlement may be larger or smaller than the number included in the original Award, based on predetermined performance
factors. Methods of converting Share Units into cash may include (without

  

 - 9 - 

 
limitation) a method based on the average Fair Market Value of Shares over a series of trading days. Vested Share Units may be settled in a lump sum or in installments. The distribution may occur
or commence when all vesting conditions applicable to the Share Units have been satisfied or have lapsed, or it may be deferred to any later date. The amount of a deferred distribution may be increased by an interest factor or by dividend
equivalents. Until an Award of Share Units is settled, the number of such Share Units shall be subject to adjustment pursuant to Article 10. 
 8.8 Creditors’ Rights. A holder of Share Units shall have no rights other than those of a general creditor of the Company. Share Units represent an unfunded and unsecured obligation of the
Company, subject to the terms and conditions of the applicable Share Unit Agreement. 
 ARTICLE 9. AUTOMATIC GRANTS TO OUTSIDE DIRECTORS.

 9.1 Initial Grants. In connection with joining the Board, each Outside Director shall receive: 
 (a) A one-time grant of an NSO covering Shares with an Accounting Value of $120,000. Such NSO shall be granted on the date
when such Outside Director first joins the Board, and shall vest and become exercisable on the first anniversary of the Date of Grant; and 
 (b) A one-time grant of Share Units with an Accounting Value of $120,000. Such Share Units shall be granted on the date when such Outside Director first joins the Board and shall vest on the first
anniversary of the Date of Grant. Settlement of vested Share Units shall be made in a lump sum on the third anniversary of the Date of Grant unless deferred to a later date. Such lump sum shall consist of a number of Shares equal to the number of
vested Share Units. 
 An Outside Director who was previously an Employee shall not receive grants under this Section 9.1. 
 9.2 Annual Grants. Upon the conclusion of each regular annual meeting of the Company’s shareholders, each Outside Director who
will continue serving as a member of the Board thereafter shall receive: 
 (a) A grant of an NSO covering Shares
with an Accounting Value of $60,000. Such NSO shall vest and become exercisable quarterly over a period of four quarters from the Date of Grant; and 
 (b) A grant of Share Units with an Accounting Value of $60,000. Such Share Units shall vest in four equal quarterly installments over a period of four quarters from the Date of Grant. Settlement of vested
Share Units shall be made in a lump sum on the third anniversary of the Date of Grant, unless deferred to a later date. Such lump sum shall consist of a number of Shares equal to the number of vested Share Units. 
  

 - 10 - 

 Notwithstanding the foregoing, no grants shall be made pursuant to this Section 9.2 in the calendar
year in which the same Outside Director received grants described in Section 9.1. An Outside Director who previously was an Employee shall be eligible to receive grants under this Section 9.2. 
 9.3 Cessation of Eligibility to Vest. Unless otherwise provided by the Award Agreement, if an Outside Director’s Service
terminates prior to the vesting date specified in such agreement other than as a result of circumstances described in Section 9.4 below, then such Director’s unvested Award shall immediately be forfeited and such unvested Shares shall
revert to the Plan. 
 9.4 Accelerated Exercisability. All Awards granted to an Outside Director under this
Article 9 shall also become exercisable in full, and Restricted Shares and Share Units shall be distributed, in the event that: 
 (a) Such Outside Director’s Service terminates because of death, Disability, or retirement at or after age 65; 
 (b) The Company is subject to a Change in Control before such Outside Director’s Service terminates; or 
 (c) As otherwise required by Section 10.3. 
 9.5 Exercise Price. The Exercise Price under all NSOs granted to an Outside Director under this Article 9 shall be equal to 100%
of the Fair Market Value of a Share on the Date of Grant, payable in one of the forms described in Section 5.7(a), (b) or (c). 
 9.6 Term. The Option Agreement shall specify the term of the option, which shall not exceed 5 years from the Date of Grant. Each NSO granted to an Outside Director under this Article 9 shall
terminate on the earlier of (a) the expiration of the term of such option or (b) the date 36 months after the termination of such Outside Director’s Service for any reason. 
 9.7 Affiliates of Outside Directors. The Committee may provide that the NSOs that otherwise would be granted to an Outside Director
under this Article 9 shall instead be granted to an affiliate of such Outside Director. Such affiliate shall then be deemed to be an Outside Director for purposes of the Plan, provided that the Service-related vesting and termination provisions
pertaining to the NSOs shall be applied with regard to the Service of the Outside Director. 
 ARTICLE 10. PROTECTION AGAINST DILUTION. 

 10.1 Adjustments. In the event of a subdivision of the outstanding Shares, a declaration of a dividend payable in
Shares or a combination or consolidation of the outstanding Shares (by reclassification or otherwise) into a lesser number of Shares, corresponding adjustments shall automatically be made in each of the following: 
 (a) The number of Options, SARs, Restricted Shares and Share Units available for future Awards under Article 3;

  

 - 11 - 

 (b) The limitations set forth in Sections 5.2, 7.2, 8.4(a)
and 9.4(a); 
 (c) The number of Shares covered by each outstanding Option and SAR; 
 (d) The Exercise Price under each outstanding Option and SAR; or 
 (e) The number of Share Units included in any prior Award that has not yet been settled. 
 In the event of a declaration of a dividend payable in a form other than Shares in an amount that has a material effect on the price of Shares, a
recapitalization, a spin-off or a similar occurrence, the Committee shall make such adjustments as it, in its sole discretion, deems appropriate in one or more of the foregoing. Except as provided in this Article 10, a Participant shall have no
rights by reason of any issuance by the Company of shares of any class or securities convertible into shares of any class, any subdivision or consolidation of shares of any class, the payment of any share dividend or any other increase or decrease
in the number of shares of any class. 
 10.2 Dissolution or Liquidation. To the extent not previously exercised or
settled, Options, SARs and Share Units shall terminate immediately prior to the dissolution or liquidation of the Company. 
 10.3 Reorganizations. In the event that the Company is a party to a merger, consolidation or amalgamation, all outstanding Awards shall be subject to the agreement of merger, consolidation or amalgamation. Such agreement shall
provide for one or more of the following: 
 (a) The continuation of such outstanding Awards by the Company (if
the Company is the surviving corporation). 
 (b) The assumption of such outstanding Awards by the surviving
corporation or its parent, provided that the assumption of Options or SARs shall comply with sections 409A and 424(a) of the Code (whether or not the Options are ISOs). 
 (c) The substitution by the surviving corporation or its parent of new awards for such outstanding Awards, provided that the
substitution of Options or SARs shall comply with sections 409A and 424(a) of the Code (whether or not the Options are ISOs). 
 (d) Full exercisability of outstanding Options and SARs and full vesting of the Shares subject to such Options and SARs, followed by the cancellation of such Options and SARs. The full exercisability of
such Options and SARs and full vesting of such Shares may be contingent on the closing of such merger, consolidation or amalgamation. The Optionees shall be able to exercise such Options and SARs during a period of not less than five full business
days preceding the closing date of such merger, consolidation or amalgamation, unless (i) a shorter period is required to permit a timely closing of such merger, consolidation or amalgamation and (ii) such shorter period still offers the
Optionees a reasonable opportunity to exercise such Options and SARs. Any exercise of such Options and SARs during such period may be contingent on the closing of such merger, consolidation or amalgamation. 
  

 - 12 - 

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

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

 - 13 - 

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

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

 - 14 - 

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

  

 - 15 - 

 
that is subject to taxation under section 4999 of the Code. In the event that the Auditors determine that an Underpayment has occurred, such Underpayment shall promptly be paid or
transferred by the Company to or for the benefit of the Participant, together with interest at the applicable federal rate provided in section 7872(f)(2) of the Code. 
 14.5 Related Corporations. For purposes of this Article 14, the term “Company” shall include affiliated corporations
to the extent determined by the Auditors in accordance with section 280G(d)(5) of the Code. 
 ARTICLE 15. FUTURE OF THE PLAN.

 15.1 Term of the Plan. The Plan shall remain in effect until the earlier of (a) the date when the Plan is
terminated under Section 15.2 or (b) June 6, 2016. 
 15.2 Amendment or Termination. The Board may, at any time
and for any reason, amend or terminate the Plan. No Awards shall be granted under the Plan after the termination thereof. The termination of the Plan, or any amendment thereof, shall not affect any Award previously granted under the Plan.

 15.3 Shareholder Approval. An amendment of the Plan shall be subject to the approval of the Company’s
shareholders only to the extent required by applicable laws, regulations or rules. The Company may, but is not required to, seek the approval (or re-approval) of the Company’s shareholders of the performance criteria set forth in
Appendix A to the extent, and at such frequencies, as may be necessary to provide the full tax deductibility of performance-based Awards in accordance with Section 162(m) of the Code. 
 ARTICLE 16. DEFINITIONS. 
 16.1 “Awardee Eligible to Vest” means a Participant who is in active service with the Company or a Subsidiary or Affiliate (or who is on an approved leave of absence or taking vacation or otherwise approved flexible time
off (“FTO”) in accordance with the Company’s FTO policy) on the vesting date fixed in the Award Agreement, subject to the exceptions provided in Articles 5, 7, 8 and 9. With the exception of an individual who is on an
approved leave of absence or taking FTO, in no event shall an individual be considered an Awardee Eligible to Vest if and at the time the individual ceases or has ceased to perform job duties for which he or she is compensated directly by the
Company or a Subsidiary or Affiliate. The foregoing shall be true in the event that the individual, prior to ceasing to perform job duties for which he or she is compensated directly by the Company or a Subsidiary or Affiliate, received or provided
notice of termination (irrespective of any notice period or similar period prescribed under the laws of a jurisdiction outside the United States) whether such notice of termination or transfer is lawful or unlawful under applicable employment law or
is in breach of an employment contract. Continued affiliation or relationship with the Company or a Subsidiary or Affiliate pursuant to a statutory or contractual notice period shall not constitute continuation of an individual’s status as an
Awardee Eligible to Vest. In accordance with the definition above, status as an Awardee Eligible to Vest will always cease upon termination of employment with the Company or a Subsidiary or Affiliate except as provided in Articles 5, 7, 8
and 9. 
  

 - 16 - 

 16.2 “Accounting Value” means, with respect to an Award, a value calculated
using the same methodology as was applied by the Company for purposes of determining the accounting charge associated with similar Awards for the fiscal period immediately preceding the date on which the subject Award is granted. 
 16.3 “Affiliate” means any entity other than a Subsidiary, if the Company and/or one or more Subsidiaries own not less than
50% of such entity. 
 16.4 “Award” means any award of an Option, a SAR, a Restricted Share or a Share Unit
under the Plan. 
 16.5 “Board” means the Company’s Board of Directors, as constituted from time to time.

 16.6 “Cause” means: 
 (a) An unauthorized use or disclosure by the Participant of the Company’s confidential information or trade secrets,
which use or disclosure causes material harm to the Company; 
 (b) A material breach by the Participant of any
agreement between the Participant and the Company; 
 (c) A material failure by the Participant to comply with
the Company’s written policies or rules; 
 (d) The Participant’s conviction of, or plea of
“guilty” or “no contest” to, a felony under the laws of the United States or any State thereof or the equivalent under the applicable laws outside of the United States; 
 (e) The Participant’s gross negligence or willful misconduct; 
 (f) A continuing failure by the Participant to perform assigned duties after receiving written notification of such failure;
or 
 (g) A failure by the Participant to cooperate in good faith with a governmental or internal investigation
of the Company or its directors, officers or employees, if the Company has requested the Participant’s cooperation. 
 16.7
“Change in Control” means: 
 (a) The consummation of a merger, consolidation or amalgamation of
the Company with or into another entity or any other corporate reorganization, if persons who were not shareholders of the Company immediately prior to such merger, consolidation, amalgamation or other reorganization own immediately after such
merger, consolidation, amalgamation or other reorganization 50% or more of the voting power of the outstanding securities of each of (i) the continuing or surviving entity and (ii) any direct or indirect parent corporation of such
continuing or surviving entity; 
  

 - 17 - 

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

 - 18 - 

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

 - 19 - 

 16.21 “Option Agreement” means the agreement between the Company and an
Optionee that contains the terms, conditions and restrictions pertaining to his or her Option. 
 16.22
“Optionee” means an individual or estate that holds an Option or SAR. 
 16.23 “Outside
Director” means a member of the Board who is not an Employee. 
 16.24 “Parent” means any corporation
(other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns shares possessing 50% or more of the total combined voting power of all classes of shares in one of the
other corporations in such chain. A corporation that attains the status of a Parent on a date after the adoption of the Plan shall be considered a Parent commencing as of such date. 
 16.25 “Participant” means an individual or estate that holds an Award. 
 16.26 “Plan” means this Verigy Ltd. 2006 Equity Incentive Plan, as amended from time to time. 
 16.27 “Replacement Awards” means Awards granted or Shares issued by the Company in the conversion, assumption,
substitution, or exchange of awards previously granted under the Agilent Technologies, Inc. 1999 Stock Plan or the Agilent Technologies, Inc. 1999 Non-employee Director Stock Plan. 
 16.28 “Restricted Share” means a Share awarded under the Plan. 
 16.29 “Restricted Share Agreement” means the agreement between the Company and the recipient of a Restricted Share that
contains the terms, conditions and restrictions pertaining to such Restricted Share. 
 16.30 “SAR” means a
share appreciation right granted under the Plan. 
 16.31 “SAR Agreement” means the agreement between the
Company and an Optionee that contains the terms, conditions and restrictions pertaining to his or her SAR. 
 16.32
“Separation from Service” shall have the meaning set forth in the regulations under Section 409A of the Code. 
 16.33 “Service” means service as an Employee, Outside Director or Consultant. 
 16.34
“Shares” means the Ordinary Shares of the Company. 
 16.35 “Share Unit” means a bookkeeping
entry representing the equivalent of one Share, as awarded under the Plan. 
  

 - 20 - 

 16.36 “Share Unit Agreement” means the agreement between the Company and
the recipient of a Share Unit that contains the terms, conditions and restrictions pertaining to such Share Unit. 
 16.37
“Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns shares possessing
more than 50% of the total combined voting power of all classes of shares in one of the other corporations in such chain. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary
commencing as of such date. 
 16.38 “Substitute Awards” means: 
 (a) Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, awards previously
granted by: (i) a company acquired by the Company; (ii) a company acquired by any Subsidiary; or (iii) a company with which the Company or any Subsidiary combines; and 
 (b) Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, awards previously
granted by Agilent Technologies, Inc. 
  

 - 21 - 

 Adoption and Amendment History: 
  

			
	 Action
	  	Date
	 Adopted by the Board of Directors:
	  	June 7, 2006
		
	 Approved by the sole shareholder:
	  	June 7, 2006
		
	 Amended by the Board of Directors to revise definition of “Fair Market Value” (Section 16.16)
	  	August 29, 2006
		
	 Amended by the Board of Directors to add definition of Date of Grant (Section 16.12)
	  	December 13, 2006
		
	 Amended by the Board of Directors to modify Outside Director Awards (Article 9) and miscellaneous technical
amendments
	  	April 14, 2008
		
	 Outside Director Award amendments approved by Shareholders
	  	April 15, 2008
		
	 Amended by the Board of Directors to increase the number of reserved shares, eliminate the secondary committee and require
minimum vesting
	  	December 2, 2009
		
	 Increase in share reserve, from 10,300,000 ordinary shares to 13,300,000 ordinary shares, approved by the
shareholders
	  	[*]

  

	*	Subject to shareholder approval at the 2010 Annual General Meeting of Shareholders. 

  

 - 22 - 

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

 - 23 -2006 Equity Incentive Plan - Non-U.S. Sub-Plans & Addenda

 Exhibit 10.2.1 
 VERIGY LTD. 
 2006
EQUITY INCENTIVE PLAN 
 NON-US
SUB-PLANS & ADDENDA 

 Verigy Ltd. 2006 Equity Incentive Plan 
 Addendum for Chinese Employees 
  

	1.	General. 

 (a) Verigy Ltd. (the “Company”) has established the Verigy Ltd. 2006 Equity Incentive Plan (the “2006 EIP”) for the benefit of certain Employees, Consultants and Outside Directors of
the Company and its Subsidiary(ies) and Affiliate(s), including Employees, Consultants and Outside Directors of subsidiaries and affiliates organized under the laws of the Peoples’ Republic of China (the “Chinese
Entities”). 
 (b) Section 2.2 of the 2006 EIP authorizes the Board of Directors or a Committee
appointed by the Board (the “Administrator”) to adopt such administrative rules, or guidelines as it deems appropriate to implement the 2006 EIP, including rules and procedures relating to the operation and administration of
the 2006 EIP in order to accommodate the specific requirements of local laws and procedures including the adoption of such sub-plans as the Committee deems desirable to accommodate foreign tax laws, regulations and practice. 
 (c) This Addendum for Employees of the Chinese Entities (the “Chinese Addendum”) sets forth the terms of the
Verigy Ltd. 2006 Equity Incentive Plan (the “2006 EIP”) for the grant of Awards to Employees who are tax residents of the People’s Republic of China on the Date of Grant of an Award (“Chinese
Participants”). 
 2. Cashless Exercise Required. All stock options granted in China will only be exercisable using
the full cashless exercise method (i.e., cashless exercise for cash). Only full cashless exercise (proceeds remitted in cash) will be permitted. Cash exercises are prohibited. 
 3. Employment Rights. The adoption of this Chinese Addendum shall not confer upon the Chinese Participants, or any employees of a Chinese Entity, any employment rights and shall not be
construed as part of any employment contract that a Chinese Entity has with its employees. 
 4. Interpretation. In the event of
any conflict between the provisions of this Chinese Addendum and the 2006 EIP, the provisions of this Chinese Addendum shall control for any grants made thereunder to Chinese Participants. 
 5. Amendments. Subject to the terms of the 2006 EIP, the Administrator reserves the right to amend or terminate this Chinese Addendum at any
time. Such amendments would only apply to future grants and would not be retroactive. 
  

 - 1 - 

 Verigy Ltd. 2006 Equity Incentive Plan 
 Option Sub-Plan for French Employees 
 1. Introduction. 
 (a) Verigy Ltd. (the “Company”) has established the
Verigy Ltd. 2006 Equity Incentive Plan (the “2006 EIP”) for the benefit of certain Employees, Consultants and Outside Directors of the Company and its Subsidiary(ies) and Affiliate(s), including Employees, Consultants and
Outside Directors of subsidiaries and affiliates organized under the laws of France (the “French Entities”). 
 (b) Section 2.2 of the 2006 EIP authorizes the Board of Directors (the “Board”) or a Committee appointed by the Board (the “Administrator”) to adopt such administrative rules, or
guidelines as it deems appropriate to implement the 2006 EIP, including rules and procedures relating to the operation and administration of the 2006 EIP in order to accommodate the specific requirements of local laws and procedures including the
adoption of such sub-plans as the Committee deems desirable to accommodate foreign tax laws, regulations and practice. 
 (c) This sub-plan is established for the purpose of granting options which qualify for the favorable tax and social security treatment in France applicable to options granted under the Sections L. 225-177 to L. 225-186 of the
Commercial Code, as amended, to qualifying employees of the French Entities who are resident in France for French tax purposes and/or subject to the French social security regime (the “French Employees”). 
 (d) The terms of the 2006 EIP, as modified by the terms set forth below shall constitute the rules of the Verigy Ltd. 2006 Equity
Incentive Plan for Options awarded to French Employees (the “French Option Sub-Plan”). 
 (e)
Under the French Option Sub-Plan, the qualifying employees will be granted only stock options as defined in Section 2 hereunder. The provisions of Sections 6, 7, 8 and 9 of the 2006 EIP permitting the grant of Share Appreciation Rights,
Restricted Shares, Share Units and Automatic Option Grants to Outside Directors or the substitution of the Options for cash are not applicable to grants made under the French Option Sub-Plan. In addition, in no case will grants under the French
Option Sub-Plan include any other substitute awards, e.g., stock bonuses, restricted stock or other similar awards. Stock issued to French Optionees under the French Option Sub-Plan may be ordinary shares or preferred stock. 
 2. Definitions. Capitalized terms not otherwise defined herein used in the French Option Sub-Plan shall have the same meanings as set forth in
the 2006 EIP. The terms set out below will have the following meanings: 
 (a) “Option” means:

  

	 	(i)	Purchase stock options that are rights to acquire Ordinary Shares repurchased by the Company prior to the vesting of the options; or 

  

	 	(ii)	Subscription stock options that are rights to subscribe newly issued Ordinary Shares. 

  

 - 2 - 

 (b) “Grant Date” means the latest of: (a) the date on
which the Committee determines that the Option or SAR shall be granted; (b) the date on which the Optionee’s Service commences; or (c) the date on which all material terms of the Option or SAR, including (without limitation) the
Exercise Price, are ascertainable. 
 (c) “Vesting Date” means the date on which a French
Optionee’s right to all or portion of an Option granted under the French Option Sub-Plan becomes non-forfeitable. Under the French Option Sub-Plan, the Vesting Date will be the date set forth in the applicable Option Agreement. 
 (d) “Closed Period” means specific periods as set forth by Section L. 225-177 of the French Commercial Code,
as amended, during which French qualifying Options cannot be granted. 
 3. Right to Participate. 
 (a) Any individual who, on the Grant Date, and to the extent required under French law, is either bound to the Subsidiary by a
contract of employment (“contrat de travail”) or who is a corporate officer of the Subsidiary, shall be eligible to receive Options under the French Option Sub-Plan provided that he or she also satisfies the eligibility conditions
of Section 4 of the 2006 EIP. 
 (b) Notwithstanding any provision in the 2006 EIP to the contrary, Options may not
be issued under the French Option Sub-Plan to employees or corporate officers owning more than ten percent (10%) of the Company’s capital Shares or to individuals other than employees and corporate executives of the Subsidiary. Options may
not be issued to directors of the Subsidiary, other than managing directors (Président du Conseil d’Administration, Directeur Général, Directeur Général Délégué, Membre du Directoire,
Gérant de sociétés par actions), unless they are employed by the Subsidiary, as defined by French law. 
 4.
Conditions of the Option/Option Price. 
 (a) Notwithstanding any provision in the 2006 EIP to the contrary,
the conditions of the Options granted under the French Option Sub-Plan shall not be modified after the Grant Date with retroactive effect, except that the Option price and number of Shares may be modified as provided under Section 7 of the
French Option Sub-Plan and the vesting and exercisability of the Option may be modified as provided in Section 5 of the French Option Sub-Plan or as otherwise in keeping with French law. 
 (b) The Option price payable pursuant to Options issued hereunder shall be fixed by the Administrator on the date of the Grant Date,
but in no event shall the Option price per Share be less than the greater of: 
 5. with respect to Purchase Options over Ordinary
Shares, the higher of either 80% of the average quotation price of such Ordinary Shares during the 20 trading days immediately preceding the Grant Date or 80% of the average purchase price paid for such Ordinary Shares by the Company; 
  

 - 3 - 

 6. with respect to Subscription Options over the Ordinary Shares, 80% of the average quotation price
of such Ordinary Shares during the 20 trading days immediately preceding the Grant Date; and 
 7. the minimum Option price permitted
under the 2006 EIP. 
 8. Exercise of an Option. 
 (a) Exercisability. The Options will become vested on the Vesting Date as defined under Section 2 above. However, notwithstanding the above, special provisions apply in the event
of termination of employment due to death and disability as follows: 
  

	 	(i)	In the event of the death of a French Optionee, outstanding Options shall be exercisable under the conditions set forth in Section 8 of the French Option Sub-Plan.

  

	 	(ii)	In the event of termination of employment due to disability, which is defined as disability under categories 2 or 3 under Section L. 341-4 of the French Social Security
Code, the Options shall become immediately vested and exercisable pursuant to the terms of Section 5.4.(c) of the 2006 EIP. 

  

	 	(iii)	Shares issued upon exercise of an Option shall be issued in the name of the French Optionee only, except in the event of death as referred to under Section 8 of
the French Option Sub-Plan. 

 (b) Payment of Option Price and Withholding. 
  

	 	(i)	Notwithstanding any provisions in the 2006 EIP to the contrary, upon exercise of an Option, the full Option price and any required tax and/or social security
contributions to be withheld by the French Subsidiary on behalf of the French Optionee will be paid either in cash, by check or by wire transfer. Under a cashless exercise program, the French Optionee may give irrevocable instructions to a stock
broker to properly deliver the Option price to the Company. Notwithstanding any provisions in the 2006 EIP to the contrary, no delivery of prior owned Shares having a fair market value on the date of delivery equal to the aggregate exercise price of
the Shares may be surrendered as consideration for exercising the Options. 

  

	 	(ii)	Upon sale of the underlying Shares, the Company and/or the Subsidiary shall have the right to withhold, or request any third party to withhold, from the proceeds to be
paid to the French Optionee the sums corresponding to any social security charges due at exercise or sale by the French Optionee as mentioned in the applicable Option Agreement. If such amounts are due and are not withheld, the French Optionee
agrees to submit the amount due to the Subsidiary by means of check, cash or credit transfer. 

  

 - 4 - 

 (c) Optionee’s Account. The Shares acquired upon exercise of an Option
will be recorded in an account in the name of the shareholder with a broker or in such other manner as the Company may otherwise determine in order to ensure compliance with applicable law. 
 9. Non-transferability of Options. Notwithstanding any provision in the 2006 EIP to the contrary and except in the case of death, Options
cannot be transferred to any third party. In addition, the Options are only exercisable by the French Optionee during the lifetime of the French Optionee. Buyout provisions provided for by Section 5.6 of the U.S. Plan are not applicable under
this French Option Sub-Plan. 
 10. Changes In Capitalization or Change in Control. 
 (a) Adjustments of Options issued hereunder shall be made to preclude the dilution or enlargement of benefits under the Option only in
the event of the transactions by the Company listed under Section L. 225-181 of the French Commercial Code, as amended, and in case of a repurchase of Shares by the Company at a price which is higher than the stock quotation price in the open
market, and according to the provisions of Section L. 228-99 of the French Commercial Code as amended as well as according to specific decrees. In the event of an adjustment other than described above, the Options may no longer qualify for favorable
tax and social security treatment under French law. 
 (b) Acceleration of the vesting and exercisability upon a Change
in Control, adjustments decided pursuant to Section 10. of the 2006 EIP may result in the forfeiture of the favorable tax and social security treatment under French law. 
 11. Death. 
 (a) In the event of the death of a French
Optionee while employed, the Options shall become immediately vested and exercisable. The French Optionee’s heirs may exercise the Option within six months following the death, but any Option which remains unexercised shall expire six months
following the date of the French Optionee’s death. The six-month exercise period will apply without regard to the term of the Option. 
 (b) In the event of death of a French Optionee after cessation of employment but prior to the termination of the Options, the heirs may exercise the vested Options for six months following the
death of the French Optionee. In these circumstances, all unvested Options will lapse upon the French Optionee’s death. All vested Options that are not exercised within six months of the French Optionee’s death will be forfeited. The
six-month exercise period will apply without regard to the term of the Option. 
 12. Closed Periods. Notwithstanding any
provisions in the 2006 EIP to the contrary and since ordinary shares of the company are traded on a regulated market, Options shall not be granted to eligible Optionees in France during the Closed Periods defined by Section L. 225-177 of the French
Commercial Code so long as such Closed Periods are applicable to Options. If the Grant Date to non-French employees and corporate officers were to occur during an applicable Closed Period, the Grant Date for French Optionees shall be the first date
following the expiration of the Closed period or another date as determined by the Administrator. 
  

 - 5 - 

 13. Term of the Option. The term of the Option will be the term set forth in the applicable
Option Agreement. This term can only be extended in the event of the death of the French Optionee. 
 14. Disqualification of
Options. If Options are otherwise modified or adjusted in a manner in keeping with the terms of the 2006 EIP or as mandated as a matter of law and the modification or adjustment is contrary to the terms and conditions of this French Option
Sub-Plan, Options may no longer qualify as French-qualified options. If Options no longer qualify as French-qualified options, the Committee may, provided it is authorized to do so under the 2006 EIP, determine to lift, shorten or terminate certain
restrictions applicable to the vesting of the Options, the exercisability of the Options, or the sale of the shares which may have been imposed under this French Option Sub-Plan or in the Option Agreement delivered to the Optionee. 
 15. Interpretation. In the event of any conflict between the provisions of the present French Option Sub-Plan and the 2006 EIP, the provisions
of the French Option Sub-Plan shall control for any grants made thereunder to French Optionees. 
 16. Employment Rights. The
adoption of this French Option Sub-Plan shall not confer upon the French Optionees any employment rights and shall not be construed as part of the French Optionees’ employment contracts. 
 17. Amendments. Subject to the terms of the 2006 EIP, the Administrator reserves the right to amend or terminate this French Option Sub-Plan
at any time. Such amendments would only apply to future grants and would not be retroactive. 
 18. Effective Date. The French
Option Sub-Plan is effective as of June 7, 2006. 
  

 - 6 - 

 Verigy Ltd. 2006 Equity Incentive Plan 
 RSU Sub-Plan for French Employees 
 1. Introduction. 
 (a) Verigy Ltd. (the “Company”) has established the
Verigy Ltd. 2006 Equity Incentive Plan (the “2006 EIP”) for the benefit of certain Employees, Consultants and Outside Directors of the Company and its Subsidiary(ies) and Affiliate(s), including Employees, Consultants and
Outside Directors of subsidiaries and affiliates organized under the laws of France (the “French Entities”). 
 (b) Section 2.2 of the 2006 EIP authorizes the Board of Directors (the “Board”) or a Committee appointed by the Board (the “Administrator”) to adopt such administrative rules, or
guidelines as it deems appropriate to implement the 2006 EIP, including rules and procedures relating to the operation and administration of the 2006 EIP in order to accommodate the specific requirements of local laws and procedures including the
adoption of such sub-plans as the Committee deems desirable to accommodate foreign tax laws, regulations and practice. 
 (c) This sub-plan is established for the purpose of granting Share Units (“Awards” as defined below) which are intended to qualify for favorable local tax and social security treatment in France applicable to
shares granted for no consideration under the Sections L. 225-197-1 to L. 225-197-5 of the French Commercial Code (as amended) to qualifying employees of the French Entities who are resident in France for French tax purposes and/or subject to the
French social security regime (the “French Participants”) as of the date of the Award grant. 
 (d) The terms of the 2006 EIP, as modified by the terms set forth below shall constitute the rules of the Verigy Ltd. 2006 Equity Incentive Plan for Share Units Granted to Employees in France (the “French Share Units
Sub-Plan”). 
 (e) The French Participants will be granted only Awards (as defined in Section 2(a)
below) under this French Share Units Sub-Plan. 
 2. Definitions. Capitalized terms not otherwise defined herein used in
the French Share Units Sub-Plan shall have the same meanings as set forth in the 2006 EIP. The terms set out below will have the following meanings: 
 (a) “Awards” means Share Units which is a promise by the Company to a future issuance of shares of Common Stock of the Company, granted to the French Participants, for no
consideration and for which any dividend and voting rights attach only upon the issuance of shares at the time of vesting of the Awards. Awards granted under this French Share Units Sub-Plan will be settled only in shares. No dividend equivalents
shall be granted or paid. 
 (b) “Grant Date” is the date on which the Committee both
(1) designates the French Participants and (2) specifies the terms and conditions of the Awards, including the number of shares, the vesting conditions and the conditions of the transferability of the shares. 
  

 - 7 - 

 (c) “Vesting Date” means the relevant date on which the
Awards become non-forfeitable and convertible into shares, as specified by the Committee, and shall not occur prior to the second anniversary of the Grant Date, or such other period as is required by the vesting period applicable to French-qualified
Awards under Section L. 225-197-1 of the French Commercial Code as amended, or in the French Tax Code or in the French Social Security Code, as amended, unless otherwise permitted under French law, and provided any additional conditions for the
vesting that may be provided for in the Award Agreement are satisfied. In principle, the issuance of shares is concomitant. 
 (d) “Closed Period” means: 
  

	 	(i)	Ten quotation days preceding and following the disclosure to the public of the consolidated financial statements or the annual statements of the Company; or

  

	 	(ii)	The period as from the date the corporate management entities (involved in the governance of the company, such as the Board, Committee, supervisory directorate, etc.)
of the Company have been disclosed information which could, in the case it would be disclosed to the public, significantly impact the quotation of the shares of the Company, until ten quotation days after the day such information is disclosed to the
public. 

  

	 	(iii)	If the French Commercial Code is amended after adoption of this French Share Units Sub-Plan to modify the definition and/or applicability of the Closed Periods to
French-qualified Awards, such amendments shall become applicable to any French-qualified Awards granted under this French Share Units Sub-Plan, to the extent required by French law. 

 (e) “Disability” means disability as determined in categories 2 and 3 under Section L. 341-4 of the French
Social Security Code, as amended, and subject to the fulfillment of related conditions. 
 3. Eligibility. 
 (a) Notwithstanding any other term of this French Share Units Sub-Plan, Awards may be granted only to employees of the French Entities
who hold less than ten percent (10%) of the outstanding shares of the Company and who otherwise satisfy the eligibility conditions of Section 4.2 of the 2006 EIP. 
 (b) Subject to Section 3(c) below, any French Participant who, on the Effective Grant Date of the Awards, and to the extent
required under French law, is employed under the terms and conditions of an employment contract (“contrat de travail”) by a French Entity or who is a corporate officer of a French Entity shall be eligible to receive, at the discretion of
the Committee, Awards under this French Share Units Sub-Plan, provided he or she also satisfies the eligibility conditions of the 2006 EIP. 
  

 - 8 - 

 (c) Awards may not be issued to corporate officers of French Entities, other than the
managing corporate officers (e.g., Président du Conseil d’Administration, Directeur Général, Directeur Général Délégué, Membre du Directoire, Gérant de Sociétés
par actions) unless the corporate officer is an employee of a French Entity, as defined by French law. 
 4. Conditions of the Awards.

 (a) Vesting of Awards. The Awards will vest on the Vesting Date as defined under Section 2 above.
However, notwithstanding the above, in the event of the death of a French Participant, all of his or her outstanding Awards shall vest as set forth in Section 7 of the French Share Units Sub-Plan. 
 (b) Sale of Shares. The sale or transfer of the shares issued pursuant to the Awards held by the French Participants must not
occur prior to the relevant anniversary of the Vesting Date specified by the Committee and in no case prior to the second anniversary of each Vesting Date or such other period as is required to comply with the minimum mandatory holding period
applicable to shares underlying French-qualified Awards under Section L. 225-197-1 of the French Commercial Code, as amended or under the French Tax Code or French Social Security Code as amended. In addition, the underlying shares cannot be sold
during certain Closed Periods as provided for by Section L. 225-197-1 of the French Commercial Code, as amended, and as interpreted by the French administrative guideline, so long as those Closed Periods are applicable to shares underlying
French-qualified Awards. These restrictions apply even if the French Participant is no longer an employee or a corporate officer of the French Entity. The Committee may set a specific holding period for the shares underlying the Awards for the
French Participants who qualify as corporate officers under French law (“mandataires sociaux”). 
 (c)
French Participant’s Account. The shares acquired upon vesting of the Awards will be recorded in an account in the name of the French Participant with a broker or in such other manner as the Company may otherwise determine in order to
ensure compliance with applicable law. 
 (d) Non-transferability of Awards. Except in the case of death, Awards
cannot be transferred or surrendered to any third party. In addition, the Awards may vest only for the benefit of the French Participant during the lifetime of the French Participant. 
 5. Adjustments. If the Awards or underlying shares are assumed/substituted in the event of an adjustment, as described under Section 10 of the 2006 EIP, or in case of an
acceleration of vesting or holding periods or in case of implementation of any other mechanism upon a corporate transaction to compensate the French Participants, the Awards may no longer qualify for French favorable local tax and social security
treatment In this case, the Board may decide at its discretion to lift the restriction on sale of the shares. 
 6. Death and
Disability. 
 (a) In the event of the death of a French Participant, the Awards held by the French Participant at
the time of death become transferable to the Participant’s heirs. The Company shall issue the underlying shares to the French Participant’s heirs, at their request, if such request occurs within six months following the death, as provided
in the Award Agreement. If the Participant’s heirs do not request the issuance of the Shares underlying the Awards within six months following the Participant’s death, the Awards will be forfeited. 
  

 - 9 - 

 (b) If a French Participant’s service to the Company or any Affiliate of the
Company terminates by reason of his or her death or Disability (as defined herein), the French Participant or the French Participant’s heirs, as applicable, shall not be subject to the restriction on the sale of the shares set forth in
Section 4 (b) above. 
 7. Disqualification of Restricted Stock Units. If Awards are otherwise modified or
adjusted in a manner in keeping with the terms of the 2006 EIP or as mandated as a matter of law and the modification or adjustment is contrary to the terms and conditions of this French Share Units Sub-Plan, Awards may no longer qualify as
French-qualified Awards. If Awards no longer qualify as French-qualified Awards, the Committee may, provided it is authorized to do so under the 2006 EIP, determine to lift, shorten or terminate certain restrictions applicable to the vesting of the
Awards or the sale of the Shares which may have been imposed under this French Share Units Sub-Plan or in the Awards Agreement delivered to the Participant. 
 8. Interpretation. It is intended that Awards granted under the French Share Units Sub-Plan shall qualify for the French favorable tax and social security treatment applicable to Awards
granted under Sections L. 225-197-1 to L. 225-197-5 of the French Commercial Code, as amended, and in accordance with the relevant provisions set forth by French tax and social security laws. The terms of the French Share Units Sub-Plan shall be
interpreted accordingly and in accordance with the relevant Guidelines published by French tax and social security administrations and subject to the fulfilment of certain legal, tax and reporting obligations. 
 9. Employment Rights. The adoption of this French Share Units Sub-Plan shall not confer upon the French Participants, or any employees of a
French Entity, any employment rights and shall not be construed as part of any employment contract that a French Entity has with its employees. 
 10. Amendments. Subject to the terms of the 2006 EIP, the Administrator reserves the right to amend or terminate this French RSU Sub-Plan at any time. Such amendments would only apply to future grants and would not be
retroactive. 
 11. Effective Date. This French Share Units Sub-Plan is adopted and effective for grants made on or after
February 15, 2007. 
  

 - 10 - 

 Verigy Ltd. 2006 Equity Incentive Plan 
 Sub-Plan for Israeli Employees 
 1. General. 
 (a) Verigy Ltd. (the “Company”) has
established the Verigy Ltd. 2006 Equity Incentive Plan (the “2006 EIP”) for the benefit of certain Employees, Consultants and Outside Directors of the Company and its Subsidiary(ies) and Affiliate(s), including Employees,
Consultants and Outside Directors of subsidiaries and affiliates organized under the laws of Israel (the “Israeli Entities”). 
 (a) Section 2.2 of the 2006 EIP authorizes the Board of Directors or a Committee appointed by the Board (the “Administrator”) to adopt such administrative rules, or
guidelines as it deems appropriate to implement the 2006 EIP, including rules and procedures relating to the operation and administration of the 2006 EIP in order to accommodate the specific requirements of local laws and procedures including the
adoption of such sub-plans as the Committee deems desirable to accommodate foreign tax laws, regulations and practice. 
 (b) This Sub-Plan (the “Israeli Sub-Plan”) for Employees of the Company’s Israeli Entities (the “Israeli Participants”) sets forth the terms of the Verigy Ltd. 2006 Equity
Incentive Plan (the “2006 EIP”) for the grant of Awards to Employees who are tax residents of the state of Israel on the Date of Grant of an Award. The provisions specified hereunder shall form an integral part of the 2006
EIP, which applies to the issuance of Awards to acquire ordinary shares of the Company (the “Shares”) and shall comply with Amendment No. 132 of the Ordinance (as defined below). 
 (c) This Israeli Sub-Plan is to be read as a continuation of the 2006 EIP and only modifies the terms of Awards (as defined in the
2006 EIP) granted to Israeli Participants (as defined below) so that they comply with the requirements set by Israeli law in general, and in particular with the provisions of Section 102 (as specified herein), as may be amended or replaced from
time to time. For the avoidance of doubt, this Israeli Sub-Plan does not add to or modify the 2006 EIP in respect of any other category of Participants. 
 (d) The 2006 EIP and this Israeli Sub-Plan are complementary to each other and shall be deemed as one. In any case of contradiction with respect to Awards granted to Israeli Participants, whether
explicit or implied, between the provisions of this Israeli Sub-Plan and the 2006 EIP, the provisions set out in this Israeli Sub-Plan shall prevail. 
 2. Definitions. Capitalized terms not otherwise defined herein used in the Israeli Sub-Plan shall have the same meanings as set forth in the 2006 EIP. The terms set out below will have the following meanings:

 (a) “Approved 102 Award” means an Award granted to an Israeli Employee pursuant to Section 102(b) of the
Ordinance and held by a Trustee for the benefit of the Participant. 
 (b) “Award Agreement” means the
agreement and other documents evidencing the “Capital Gain Award” means an Approved 102 Award intended to qualify under the capital gain tax treatment in accordance with the provisions of Section 102(b)(2) of the Ordinance.

  

 - 11 - 

 (c) “Controlling Shareholder” shall have the meaning ascribed to it in
Section 32(9) of the Ordinance. 
 (d) “Israeli Employee” means any Employee of the Company or a
Subsidiary or Affiliate (including an individual who is serving as a Director or an officer, but excluding any Controlling Shareholder) who is (or is deemed to be) a resident of the state of Israel for the payment of taxes. 
 (e) “Israeli Non-Employee” means any individual providing services to the Company or a Subsidiary or Affiliate who is not
an Israeli Employee and who is (or is deemed to be) a resident of the state of Israel for the payment of taxes. 
 (f)
“Israeli Participant” means, collectively, “Israeli Employee” and “Israeli Non-Employee.” 
 (g) “ITA” means the relevant Israeli tax authorities. 
 (h) “102 Award” means an
Award granted to an Israeli Employee pursuant to Section 102. 
 (i) “Ordinance” means the Israeli Income
Tax Ordinance [New Version] 1961 as now in effect or as hereafter amended. 
 (j) “Ordinary Income Award” means
an Approved 102 Award intended to qualify under the ordinary income tax treatment in accordance with the provisions of Section 102(b)(1) of the Ordinance. 
 (k) “Section 102” means section 102 of the Ordinance and any regulations, rules, orders or procedures promulgated thereunder as now in effect or as hereafter amended. 
 (l) “3(i) Award” means an Award granted pursuant to Section 3(i) of the Ordinance to any person who is an Israeli Non-
Employee. 
 (m) “Trustee” means any individual or entity appointed by the Company to serve as a trustee and
approved by the ITA, all in accordance with the provisions of Section 102(a) of the Ordinance. 
 (n)
“Unapproved 102 Award” means an Award granted pursuant to Section 102(c) of the Ordinance and not held in trust by a Trustee. 
 3. Award Grants. 
 (a) Eligibility. The persons eligible to receive
Award grants under this Israeli Sub-Plan shall be Israeli Participants. 
 (b) Types of Awards. The Committee
shall have the authority to grant an Award under this Israeli Sub-Plan classified as (i) an Approved 102 Award, (ii) an Unapproved 102 Award or (iii) a 3(i) Award, provided, however, that an Approved 102 Award and an Unapproved 102
Award may only be granted to an Israeli Employee. 
  

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 (c) Approved 102 Awards. The grant of Approved 102 Awards under this Israeli
Sub-Plan shall be conditioned upon the filing and approval of this Israeli Sub-Plan and the Trustee by the ITA. Approved 102 Awards may either be classified as Capital Gain Awards or Ordinary Income Awards. No Approved 102 Awards may be granted
under this Israeli Sub-Plan to any Israeli Employee, before the lapse of at least 30 days from the day the Company’s election of the type of Approved 102 Awards, as Capital Gain Awards or Ordinary Income Awards (the “Election”), is
appropriately filed with the ITA. Such Election shall become effective beginning with the Date of Grant of the first Approved 102 Award granted under this Israeli Sub-Plan and shall remain in effect until the end of the year following the year
during which the Company first granted Approved 102 Awards under this Israeli Sub-Plan. The Election shall obligate the Company to grant only the type of Approved 102 Award it has elected (Capital Gain Awards or Ordinary Income Awards) during
the period indicated in the preceding sentence, and shall apply to all Approved 102 Awards granted during the period the Election is in effect, all in accordance with the provisions of Section 102(g) of the Ordinance. For the avoidance of
doubt, such Election shall not prevent the Company from granting Unapproved 102 Awards to Israeli Employees, or 3(i) Awards to Israeli Non-Employees, at any time. All Approved 102 Awards must be held in trust by a Trustee, as described in Section IV
below. 
 (d) Unapproved 102 Awards. With respect to the grant of an Unapproved 102 Award, the Israeli Employee
will be obligated to provide the Company with a form of collateral or guarantee (in a form satisfactory to the Committee) to secure payment by the Israeli Employee of any applicable income tax and/or social security charges due in the event that the
Israeli Employee is no longer employed by the Company when the Shares are sold and the related taxes become due and payable. The granting of an Unapproved 102 Award to an Israeli Employee shall be made in accordance with the provisions of
Section 102. 
 (e) 3(i) Awards. The Committee may chose to deposit a 3(i) Award with the Trustee. In such
event, the Trustee shall hold such 3(i) Award in trust pursuant to any instruction given by the Company as set forth in the Trust Agreement between the Company and the Trustee. If determined by the Committee, the Trustee may also withhold any taxes
payable upon exercise of such 3(i) Award. 
 4. Trustee. 
 (a) Appointment of Trustee. A Trustee shall be appointed by the Committee to administer each Approved 102 Award in accordance
with the provisions of Section 102 and pursuant to a written agreement to be entered into between the Trustee and the Company (the “Trust Agreement”). 
 (b) Responsibility of Trustee. Approved 102 Awards which shall be granted under this Israeli Sub-Plan shall be held by the Trustee in trust, and any Shares issued upon grant, exercise, or
vesting of any such Approved 102 Award and/or other securities or rights received with respect to such Shares or Approved 102 Awards held by the Trustee, shall be issued to the Trustee and held for the benefit of the Israeli Employee for such period
as required by Section

  

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102 or any regulations, rules, rulings, or orders or procedures promulgated thereunder (the “Minimum Holding Period”), until such time that such Awards, Shares or rights
are released from the trust as herein provided. In the event the requirements for Approved 102 Awards are not met, then the Approved 102 Awards shall be regarded as Unapproved 102 Awards, all in accordance with the provisions of Section 102.

 (c) No Release Pending Tax Payment. Notwithstanding anything to the contrary, the Trustee shall not release any
Approved 102 Awards or Shares issued upon grant, exercise, or vesting of any Approved 102 Awards (or any other securities or rights received with respect to such Shares or Approved 102 Awards) prior to the full payment of the Israeli Employee’s
tax liabilities (including, without limitation, social security taxes if applicable) arising from the grant, exercise or vesting of Approved 102 Awards granted to such Israeli Employee. 
 5. Holding Period Requirement. 
 (a) Minimum Holding
Period. With respect to any Approved 102 Award, subject to the provisions of Section 102 and any rules or regulations or orders or procedures promulgated thereunder, to obtain favorable Approved 102 Award tax treatment, an Israeli Employee
shall not sell or release from trust any Awards and/or Shares received upon the grant, exercise, or vesting of any Approved 102 Awards or any other securities or rights received with respect to such Shares or Approved 102 Award, until the lapse of
the Minimum Holding Period required under Section 102 of the Ordinance. Notwithstanding the above, if any such sale or release occurs during the Minimum Holding Period, the implications under Section 102 of the Ordinance and under any
rules or regulation or orders or procedures promulgated thereunder shall apply to and shall be borne by such Israeli Employee. 
 (b) Undertaking. Upon grant of an Approved 102 Award, the Israeli Employee will sign an undertaking to release the Trustee from any liability in respect of any omission or action or decision duly taken and bona fide executed
in relation with this Israeli Sub-Plan, or any Approved 102 Awards or Shares granted to him. In addition, upon grant of an Approved 102 Award, the Israeli Employee will further sign an undertaking declaring that he/she is familiar with the
provisions of Section 102 and the elected tax route and that he/she undertakes not to sell or transfer the Approved 102 Awards or any securities or rights granted with respect thereof prior to the lapse of the Minimum Holding Period, unless
he/she pays all taxes, which may arise in connection with such sale and/or transfer. In addition, the Israeli Employee shall consent to comply with the terms of the trust arrangement as described in the Award Agreement. 
 6. The Awards and Rights as a Shareholder. 
 (a) Terms and Conditions of the Awards. The terms and conditions upon which the Awards shall be issued, vested and/or exercised, shall be as specified in the Award Agreement to be executed
pursuant to the 2006 EIP and to this Israeli Sub-Plan. Each Award Agreement shall state, inter alia, the number of Shares underlying such Award, the type of Award granted thereunder (whether a Capital Gains Award, Ordinary Income Award,
Unapproved 102 Award or a 3(i) Award), the vesting provisions and the exercise or purchase price (if any). Notwithstanding any provision of the 2006 EIP to the contrary, Approved 102 Awards may not be settled in cash. 
  

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 (b) Rights as a Stockholder and Shares Held in Trust. Once Shares are issued
upon the grant, exercise and/or vesting of Awards or otherwise, the Israeli Participant shall have rights equivalent to those of a stockholder and shall be a stockholder when his or her purchase is entered upon the records of the duly authorized
transfer agent of the Company. The Israeli Participant shall be entitled to vote the Shares at any meeting of the stockholders of the Company and to receive dividends with respect to such Shares. For so long as Shares are held in trust by the
Trustee on behalf of an Israeli Employee, the voting rights at the Company’s general meeting attached to such Shares will remain with the Trustee. However, the Trustee shall not exercise such voting rights at general meetings. The Trustee shall
not be required to notify the Israeli Employee for whom it is holding Shares in trust of any meeting of the Company’s stockholders. 
 7. No Assignment or Sale of Awards. 
 (a) Notwithstanding any other provision of the 2006 EIP, no
Award or any right with respect thereto shall be assignable, pledged (as collateral for a loan or as security for the performance of an obligation or for any other purpose) or transferable by an Israeli Participant or made subject to attachment or
similar proceedings otherwise than by will or by the applicable laws of descent and distribution. During an Israeli Participant’s lifetime, an Award may be exercised only by the Israeli Participant. Notwithstanding the foregoing, the 2006 EIP
Administrator, in its sole discretion, may permit an Israeli Participant to assign or transfer an Award, subject to such terms and conditions as the 2006 EIP Administrator shall specify. 
 (b) As long as Awards or Shares acquired pursuant thereto, or upon the vesting of such Awards, are held by the Trustee on behalf of
the Israeli Employee, all rights of the Israeli Employee over the Shares are personal and can not be transferred, assigned, pledged or mortgaged, other than by will or laws of descent and distribution. 
 8. Dividends. 
 (a) Any dividends payable with respect to Shares acquired upon exercise of an Award shall be subject to any applicable taxation on distribution of dividends, and when applicable subject to the provisions of Section 102 and the
rules, regulations or orders promulgated thereunder. 
 (b) For so long as such Shares are held in the trust by the
Trustee on behalf of an Israeli Employee, the cash dividends paid with respect thereto shall be remitted directly to such Israeli Employee. 
 (c) In the event a stock dividend (including bonus shares and any rights with respect to the Shares) is declared on Shares held in the trust by the Trustee on behalf of an Israeli Employee, such
stock dividend shall be issued to the Trustee for the benefit of such Israeli Employee, shall be subject to the provisions of the 2006 EIP and this Israeli Sub-Plan, and the Minimum Holding Period for such rights shall be measured from the
commencement of the Minimum Holding Period applicable to the Shares underlying the Awards with respect to which the dividend was declared, subject to applicable laws. Furthermore, such rights shall be subject to the taxation route under
Section 102, which is applicable to such Shares. 
  

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 9. Integration of Section 102 and Tax Assessing Officer’s Permit. 

(a) With regard to Approved 102 Awards, the provisions of the 2006 EIP and/or the Israeli Sub-Plan and/or the Award Agreement shall
be subject to the provisions of Section 102 and the Tax Assessing Officer’s permit, and the said provisions and permit shall be deemed an integral part of the 2006 EIP, the Israeli Sub-Plan and the Award Agreement. 
 (b) Any provision of Section 102 and/or the said permit which is necessary to receive and/or to keep any tax benefit pursuant to
Section 102, which is not expressly specified in the Plan or the Israeli Sub-Plan or the Award Agreement, shall be considered binding upon the Company and the Israeli Participants. 
 10. Tax Consequences. 
 (a) Any tax consequences
arising from the grant or exercise of any Award, from the issuance of Shares covered thereby (including, without limitation, the Israeli Participant’s social security taxes if applicable) or from any other event or act (of the Company, and/or
its Subsidiary or Affiliate, or the Trustee or the Israeli Participant), hereunder, shall be borne solely by the Israeli Participant (including, without limitation, Israeli Participant’s social security taxes if applicable). The Company and/or
its Subsidiary or Affiliate, and/or the Trustee shall withhold taxes according to the requirements under the applicable laws, rules, and regulations, including withholding taxes at source. Furthermore, the Israeli Participant shall agree to
indemnify the Company and/or its Parent, Subsidiary or Affiliate and/or the Trustee and hold them harmless against and from any and all liability for any such tax or other payment or interest or penalty thereon, including without limitation,
liabilities relating to the necessity to withhold, or to have withheld, any such tax from any payment made to the Israeli Participant. The Company and/or its Subsidiary or Affiliate, and/or the Trustee shall withhold taxes according to the
requirements under the applicable laws, rules, and regulations, including withholding taxes at source. 
 (b) The Company
and/or, when applicable, the Trustee shall not be required to release any share certificate to an Israeli Participant until all required payments have been fully made to the Company and all of the Israeli Participant’s tax liabilities arising
from the grant or exercise of an Award have been satisfied. 
 (c) With respect to an Unapproved 102 Award, if the
Israeli Employee ceases to be employed by the Company or its Subsidiary or Affiliate, the Israeli Employee shall extend to the Company and/or its Subsidiary or Affiliate a security or guarantee for the payment of tax due at the time of sale of
Shares, all in accordance with the provisions of Section 102 and the rules, regulations or orders promulgated thereunder. 
  

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 11. Applicable Laws. 
 (a) Compliance with Applicable Laws. This Israeli Sub-Plan shall be subject to all applicable laws. The grant of Awards and
rights and the grant, issuance, or vesting of Shares upon the exercise of Awards under this Israeli Sub-Plan shall entitle the Company to require recipients of Awards to comply with such applicable laws as may be necessary. Furthermore, the grant of
any Awards under this Israeli Sub-Plan shall be subject to the Company’s procurement of all approvals and permits required by regulatory authorities having jurisdiction over this Israeli Sub-Plan and the Awards and rights granted thereunder.

 (b) Governing Law. The validity and enforceability of this Israeli Sub-Plan shall be governed by, and construed
in accordance with, the laws of the Republic of Singapore without regard to otherwise governing principles of conflicts of law, except to the extent that mandatory provisions of the laws of the State of Israel apply. 
 12. Employment Rights. The adoption of this Isreali Sub-Plan shall not confer upon the Israeli Participants, or any employees of an Israeli
Entity, any employment rights and shall not be construed as part of any employment contract that an Israeli Entity has with its employees. 
 13. Amendments. Subject to the terms of the 2006 EIP, the Administrator reserves the right to amend or terminate this Israeli Sub-Plan at any time. Such amendments would only apply to future grants and would not be
retroactive. 
 14. Effective Date. This Israeli Sub-Plan is effective with respect to Awards granted on or after January 20,
2009. 
  

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 Verigy Ltd. 2006 Equity Incentive Plan 
 Addendum for Italian Employees 
 1. General. 
 (a) Verigy Ltd. (the “Company”) has
established the Verigy Ltd. 2006 Equity Incentive Plan (the “2006 EIP”) for the benefit of certain Employees, Consultants and Outside Directors of the Company and its Subsidiary(ies) and Affiliate(s), including Employees,
Consultants and Outside Directors of subsidiaries and affiliates organized under the laws of Italy (the “Italian Entities”). 
 (b) Section 2.2 of the 2006 EIP authorizes the Board of Directors or a Committee appointed by the Board (the “Administrator”) to adopt such administrative rules, or
guidelines as it deems appropriate to implement the 2006 EIP, including rules and procedures relating to the operation and administration of the 2006 EIP in order to accommodate the specific requirements of local laws and procedures including the
adoption of such sub-plans as the Committee deems desirable to accommodate foreign tax laws, regulations and practice. 
 (c) This Addendum for Employees of the Italian Entities (the “Italian Addendum”) sets forth the terms of the Verigy Ltd. 2006 Equity Incentive Plan (the “2006 EIP”) for the grant of
Awards to Employees who are tax residents of Italy on the Date of Grant of an Award (“Italian Participants”). 
 2.
Cashless Exercise Required. All stock options granted in Italy will only be exercisable using the full cashless exercise method (i.e., cashless exercise for cash). Only full cashless exercise (proceeds remitted in cash) will be
permitted. Cash exercises are prohibited. 
 3. Employment Rights. The adoption of this Italian Addendum shall not confer upon the
Italian Participants, or any employees of a Italian Entity, any employment rights and shall not be construed as part of any employment contract that a Italian Entity has with its employees. 
 4. Interpretation. In the event of any conflict between the provisions of this Italian Addendum and the 2006 EIP, the provisions of this
Italian Addendum shall control for any grants made thereunder to Italian Participants. 
 5. Amendments. Subject to the terms of
the 2006 EIP, the Administrator reserves the right to amend or terminate this Italian Addendum at any time. Such amendments would only apply to future grants and would not be retroactive. 
  

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