Document:

exv10w8

 

Exhibit 10.8

Penang Primary Parcel

Execution Version

SUBDIVISION AND USE AGREEMENT

     THIS SUBDIVISION AND USE AGREEMENT (“Agreement”) dated as of December 1, 2005 (the
“Effective Date”), is entered into by and between AGILENT TECHNOLOGIES (MALAYSIA) SDN.
BHD., a company organized under the laws of Malaysia and having its registered address at Suite
1005, 10th Floor, Wisma Hamzah-Kwong Hing, No. 1, Leboh Ampang, 50100 Kuala Lumpur, Malaysia
(“Agilent”), and AVAGO TECHNOLOGIES (MALAYSIA) Sdn. Bhd. (formerly known as Jumbo Portfolio
Sdn. Bhd.), a company organized under the laws of Malaysia and having its registered address at
Level 18, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur, Malaysia
(“Avago”). Agilent and Avago are sometimes referred to herein individually as a “Party”
and collectively as the “Parties”.

RECITALS

     A. Agilent is the registered proprietor of two contiguous plots of real property (title
details: PN 2826 Lot 4585, Mukim 12, Daerah Barat Daya and HSD 18825 PT 1687, Mukim 12, Daerah
Barat Daya), consisting of approximately 63.48 acres of land and certain Improvements (hereinafter
defined) thereon located (or to be located thereon pursuant hereto) at Bayan Lepas Free Industrial
Zone, 11900 Bayan Lepas, Penang, Malaysia, as generally shown on the site map (“Site Map”)
attached hereto and incorporated herein by reference as Exhibit A (the “Penang
Site”).

     B. Agilent Technologies, Inc., a Delaware corporation and the indirect parent of Agilent
(“ATI”), and Avago Acquisition Pte. Ltd., a company organized under the laws of Singapore and the
parent of Avago (formerly known as Argos Acquisition Pte. Ltd.) (“AAP”), are party to that
certain Asset Purchase Agreement dated as of August 14, 2005 (the “APA”), pursuant to which
ATI has agreed to sell to AAP its semiconductor products business and related operations (the
“Business”), upon the terms and conditions set forth therein and in the local asset
transfer agreement to be entered into in connection therewith (the “LATA”) (collectively,
the transactions as contemplated thereby, the “Business Sale”). As a part of the Business
Sale, ATI intends to cause the Penang Site to be subdivided as shown on the Site Map as hereinafter
described.

     C. Subject to the satisfaction of certain conditions enumerated in that certain sale and
purchase agreement between Agilent and Avago dated as of December 1, 2005, (such agreement, the
“Property Sale Agreement”), Agilent has agreed to transfer to Avago 26.99 acres of the
Penang Site, together with all Improvements situated thereon (the “Avago Lot Transfer”) as
specified therein. The portion of the land at the Penang Site that shall be transferred to Avago
is identified as the “Avago Lot” on the Site Map and shall include all Improvements located within
the parameters of that portion of the Penang Site (the “Avago Lot”). Agilent has retained
36.49 acres of the Penang Site and all Improvements located thereon. The portion of the land at
the Penang Site that has been retained by Agilent is identified as the “Agilent Lot” on the Site
Map and includes all Improvements located within the parameters of that portion of the Penang Site
(the “Agilent Lot”). The Agilent Lot and Avago Lot are each sometimes referred to
herein as a “Lot” and, collectively, as the “Lots.”

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     D. During the period commencing on the closing of the Business Sale through the closing of the
Avago Lot Transfer pursuant to the Property Sale Agreement, Agilent has granted to Avago a
renewable tenancy with respect to the Avago Lot pursuant to that certain Primary Tenancy Agreement
dated as of October 24, 2005 (the “Primary Tenancy Agreement”; and, with the Property Sale
Agreement and this Agreement, the “Primary Parcel Agreements”).

     E. In addition to the Primary Tenancy Agreement, Agilent has granted to Avago a tenancy with
respect to certain additional premises located within Building 8 on the Agilent Lot pursuant to
that certain Tenancy Agreement dated as of October 24, 2005 (the “Building 8 Tenancy”).

     F. Concurrently with the execution of the APA, ATI and AAP entered into that certain Master
Separation Agreement dated as of August 14, 2005 (the “MSA”), which provides for the
allocation of costs relating to the provision by ATI to AAP of certain services as contemplated
(but not necessarily specified) therein.

     G. Agilent and Avago wish to memorialize their agreements regarding (i) the shared use of
certain facilities, regardless of whether such facilities are located on the Agilent Lot or Avago
Lot, (ii) the maintenance, repair, replacement and operation of the Penang Site, (iii) rights and
duties regarding utilities, easements, use restrictions, parking, cross-access, security and
various other aspects pertaining to the Penang Site, and (iv) the registration of this Agreement in
the Land Registry (as defined in the Property Sale Agreement) as permitted under the National Land
Code (Act 56 of 1965 as amended or re-enacted from time to time) and contemplated in the Property
Sale Agreement upon consummation of the Avago Lot Transfer, all as further set forth herein.

AGREEMENT

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

     1. Certain Definitions.

          (a) “Common Areas” shall mean those portions of the Penang Site that are not Building
Areas. The Common Areas are intended for the non-exclusive use by the Parties in common with other
users, and include without limitation, such areas as parking areas, driveways, sidewalks,
landscaping, service areas and access roads as shown on the Site Map.

          (b) “Common Area Improvements” shall mean all improvements to be made to the Common
Areas or easements serving the Penang Site, including, without limitation, the following: (i)
Parking Areas, sidewalks, and walkways; (ii) driveways and roadways providing access to, across,
and around the Parking Areas; (iii) free-standing outdoor light fixtures; (iv) traffic and
directional signs and markings, and the striping of Parking Areas; (v) sewer, gas, electrical,
water, telephone and other utility mains, lines and facilities other than separate utility
lines and facilities servicing such Party’s Lot; (vi) landscaping and retaining walls; (vii)
improvements to or within the public streets adjacent to the Penang Site, except to the extent such
improvements are maintained, repaired and replaced any governmental agency or

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public utility
company; (viii) the types of improvements within the Common Areas as shown on the Site Map; and
(ix) any other improvements made to the Common Areas in accordance with this Agreement.

          (c) “CAM Costs” shall mean the costs incurred by the Operator in good faith in
repairing, replacing, maintaining, operating, managing, providing security for and insuring the
Common Areas and Common Area Improvements and all other costs incurred by the Operator in the
operation of the Penang Site. CAM Costs shall include, without limitation, taxes of any kind
levied or assessed on materials, equipment, supplies and services purchased exclusively for repair,
maintenance and replacement of the Common Area Improvements; amounts paid to non-managerial
employees and agents of the Operator for work performed at the Penang Site in the repair,
maintenance or replacement of the Common Areas Improvements; fees for required licenses and permits
to operate, maintain, repair or replace the Common Areas in accordance with this Agreement; and
reasonable rental costs of equipment used in the operation, repair, replacement and maintenance of
the Common Area Improvements; and the Maintenance Fee.

          (d) “Gross Building Area” shall mean the total area of all floors, measured in square
feet, of a building enclosed by the outside surface of exterior walls thereof. The square footage
of the floor area of mezzanines shall be included in Gross Building Area.

          (e) “Improvements” shall mean all buildings and improvements located on the Lot, and
all fixtures, machinery, and equipment attached thereto, all parking lots, driveways, pavings,
access cuts, lighting, landscaping, sidewalks, fences, ponds, wetlands, ditches, flumes, water,
water rights, reservoirs, and site improvements of any kind (if any) situated upon the Lot; and all
right, title and interest, if any, of a Party in and to any land lying in the bed of any street,
road or avenue opened or proposed, public or private, in from of or adjoining the Lot.

          (f) “Law” shall mean any present or future judicial decision, statute, constitution,
ordinance, resolution, regulation, rule or administrative order, of any local or state governmental
authority of Malaysia having jurisdiction over the Parties, the Lots or the Penang Site.

          (g) “Non-Defaulting Party” shall mean any Party who is not in default of any of its
obligations under this Agreement.

          (h) “Operator” shall mean the Person responsible for the maintenance of the Common
Areas and Common Area Improvements. Agilent shall be the initial Operator. The terms “Former
Operator” and “New Operator” are defined in Section 6(d) below.

          (i) “Operator Parcel” shall mean a parcel owned by the Operator.

          (j) “Parking Areas” shall mean those portions of the Common Areas shown on the Site
Map as being striped for parking as well as drive aisles within or adjacent thereto, and shall
include any enlargement of, addition to or permitted change in such drive aisles and/or striped
portions of the Common Areas.

          (k) “Permittees” shall mean and refer to the Parties and the tenants and subtenants of
either Party, their respective successors and assigns, and their respective

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employees, officers,
partners, members, directors, shareholders, agents, contractors, customers, visitors, invitees,
licensees, subtenants and concessionaires.

          (l) “Person” or “Persons” shall mean and include individuals, partnerships,
firms, associations, joint ventures, business trusts, corporations, or any other form of business
entity.

          (m) “Proportionate Share for each Lot” shall mean that certain fraction calculated by
dividing (i) the total Gross Building Area within (or deemed within) such Lot by (ii) the total
Gross Building Area within (or deemed within) all Lots within the Penang Site.

          (n) “Reconciliation Statement” shall mean such Statement described in Section 5(b)(i)
below.

          (o) “Utilities” shall mean any and all utilities and related equipment, lines,
services, enclosures and supporting facilities serving the Penang Site, including, without
limitation, pipelines, electrical lines, communication and data lines and equipment of all kinds,
fire protection systems, water lines, compressed air lines, fire alarm systems, public address and
sound systems, boilers, chilled water lines, emergency generators facilities, radio communication
systems and any other utility necessary or convenient for the operation of the Penang Site and
facilities located thereon, but excluding sewer and drainage lines.

     2. Common Use Facilities.

          (a) The following facilities, located as identified on the Site Map, constitute the common use
facilities (the “Common Use Facilities”):

	 	(i)	 	Sports Complex;
	 
	 	(ii)	 	Clinic;
	 
	 	(iii)	 	Kitchen; and
	 
	 	(iv)	 	Convenience Store.

          (b) The following facilities, located as identified on the Site Map, constitute the temporary
common use facilities (the “Temporary Common Use Facilities”):

	 	(i)	 	Main Cafeteria Dining Area;
	 
	 	(ii)	 	Site Data Center;
	 
	 	(iii)	 	Main Lobby;
	 
	 	(iv)	 	FGI Warehouse;
	 
	 	(v)	 	Incoming Store;
	 
	 	(vi)	 	Site Logistics Area;

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	 	(vii)	 	Logistics Office;
	 
	 	(viii)	 	Procurement Store;
	 
	 	(ix)	 	SMI Area; and
	 
	 	(x)	 	Oracle Support Area.

          (c) The Parties shall allow free and unobstructed flow of pedestrian traffic within, and to
and from, the Common Use Facilities and the Temporary Use Facilities. If any of the Common Use
Facilities or Temporary Common Use Facilities are not free-standing buildings on a Lot, to the
extent necessary to access said facilities the Parties hereby grant access to the Common Area
hallways, stairways and elevators designated as such by Agilent or Avago within the buildings in
which such facilities are located for the sole purpose of accessing same. The right to access and
use the Temporary Common Use Facilities shall terminate on the earlier of (i) September 30, 2006,
or (ii) the date of completion of the planned separation for each such facility. All costs and
expenses relating to such separation shall be allocated in accordance with the MSA. The right of
access to, and use of, any Common Use Facility granted herein may be terminated by the Party on
whose Lot such facility is located any time after the first anniversary of this Agreement by
providing at least 270 days prior written notice of the intended cessation to the other Party
(“Cessation Notice”). This Agreement shall continue with respect to such Common Use
Facilities which are not specifically terminated by delivery of a Cessation Notice until such time
as a Cessation Notice is delivered with respect to any remaining Common Use Facilities.

     3. Services and Utilities.

          (a) Services to be Provided. In connection with the operation of some of the Common
Use Facilities and Temporary Common Use Facilities, the Parties agree to provide to each other, or
cause to be provided to both Parties, the various day-to-day services set forth on Exhibit
B hereof relating to such facility, which services may be amended to include additional
services as the Parties may from time to time agree (collectively, the “Services”). The
costs and expenses incurred to provide such Services, plus a reasonable and customary fee as
established from time to time by the Parties (the “Services Costs”), shall be allocated
between the Parties, based on a budget to be established pursuant hereto with the Services Costs
allocated between the Parties in accordance with the applicable allocation method set forth on
Exhibit B hereto.

          (b) Budget; Payment. Within thirty (30) days following the Effective Date and
thereafter at least sixty (60) days prior to January 1 of each calendar year thereafter in which a
Party is responsible for providing any Service, such Party shall devise and deliver to the other
Party a budget on a monthly basis for such calendar year that sets forth the estimated costs
relating to the provision of the Service. Within thirty (30) days of such delivery, the Parties
shall work together to resolve any issues raised by either Party and shall finalize such budget by
the commencement of the relevant calendar year. The Parties agree to pay their allocated share of
such costs within thirty (30) days of receipt of a statement for such item. An administrative fee
equal to five percent (5%) of such fees shall be included in the monthly invoice.

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          (c) Standard of Services. The Parties acknowledge that it is impracticable to define
the full scope of each Service to be provided pursuant hereto. As a result, each Party hereby
agrees to use its good faith, commercially reasonable efforts to ensure that any Service required
to be provided hereunder shall be provided, to the fullest extent possible, in a manner consistent
with the provision of any comparable service provided at the Penang Site to Agilent or ATI, as the
case may be, immediately prior to the Effective Date.

          (d) Termination of Services. The provision of any Service may be terminated without
cause and the level or scope of the Service may be materially modified by the Party providing such
Service upon 180 days prior written notice to the other Party and the obligation to provide a
Service shall automatically terminate upon the termination of the right to use the related Common
Use Facilities or Temporary Common Use Facilities pursuant to Section 2(c) above. Such cessation
or modification shall result in a pro rata adjustment to the fees payable with respect thereto.

          (e) Separation of Utilities. The Parties agree that the Utilities serving each Lot
are intended to be separated in connection with the Business Sale as part of the separation matters
contemplated under the MSA. It is the intent and agreement of the Parties to separate the
Utilities as soon as possible following the Effective Date and in any event no later than July 31,
2006. The Parties agree to undertake such actions and execute such documents as are reasonably
required in connection therewith. All costs and expenses incurred for such separation of Utilities
shall be allocated between the Parties in accordance with the MSA. Prior to completion of the
separation of the Utilities, the Parties shall allocate the cost of any such Utilities which are
not separately metered for each Lot (or a building within a Lot) between themselves based upon each
Party’s Proportionate Share of the Gross Building Area of the Penang Site. As of the Effective
Date, the Parties agree that the Gross Building Area on the Agilent Lot is 831,000 and on the Avago
Lot is 401,000.

     4. Easements.

          (a) Ingress, Egress and Parking Easements. For the benefit of the respective Lots
and the Parties, and their respective lessees, sublessees, employees, licensees, customers and
business invitees, each Party establishes as an appurtenance to its respective Lot non-exclusive
easements and rights of way (i) for pedestrian ingress to and egress from the Common Areas within
the Lots; (ii) for vehicular ingress to and egress from the Common Areas within the Lots; and (iii)
for temporary parking on the Parking Areas within the Lots. The easement for temporary parking on
the Lots shall consist of the right to utilize a number of parking spaces on the other Party’s Lot
as follows: (a) the aggregate number of parking spaces available to such Party (on its own Lot and
the other Party’s Lot) shall equal a percentage of the total parking spaces available for use on
the Penang Site (the “Parking Allocation”), and (b) the Parking Allocation shall be
determined by dividing (x) the total square footage of all improvements on such Party’s Lot, by (y)
the total square footage of all Improvements on the Penang Site. Nothing contained in this
Agreement shall be deemed to prevent (a) the installation and maintenance of the Common Area
Improvements or (b) changes in the Common Areas in accordance with this Agreement; provided,
however, except with the prior written consent of the other Party, neither Party shall reduce the
number of parking spaces located on its Lot as of the Effective Date. Each Party further agrees to
add parking space sufficient to accommodate

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reasonably anticipated additional parking needs generated by any further development of its
respective Lot.

          (b) Sewer Line Utility Easement. For the benefit of the respective Lots and the
Parties, each Party hereby grants, as an appurtenance to its respective Lot, a perpetual
non-exclusive easement across, over, and under the Common Areas, including, without limitation, the
right to install, maintain, use, repair and replace underground pipes, ducts, conducts and wires
for the purpose of transmitting and distributing sewer and drainage line; provided,
however, that no such public utilities and installations shall be located above the surface
of the Common Areas of any parcel, except for such above ground appurtenances as are reasonably
necessary for the proper functioning or maintenance of such utility installation. Each Party shall
be responsible for the maintenance and repair of the portion of the sewer and drainage that runs
under its respective Lot. If a Party has not addressed the need for repair of a portion of the
sewer or drainage line running under its Lot within a reasonable time period (determined on a
case-by-case basis, depending on the specific repair need) after written notice of such from the
Non-Defaulting Party, the Non-Defaulting Party may take such actions as shall be reasonably
required to complete such repair. All reasonable costs and expenses relating to the repair and
maintenance of the sewer and drainage line by the Non-Defaulting Party’s Lot shall be allocated
between the Parties based on the same allocation method as set forth in Exhibit C for
allocation of sewer line maintenance and repair, provided, however, that the
Non-Defaulting Party shall be reimbursed a 10% administrative fee for handling the repair.

          (c) License and Right to Use Easements. It is the intent of the Parties to grant to
each other perpetual easements as set forth in Sections 4.A and 4.B. above. The Parties
acknowledge, however, that prior to the transfer of Agilent’s interest in the Avago Lot to Avago
pursuant to the Property Sale Agreement, Avago does not hold a legal interest in the Avago Lot
under which it can grant such easement rights to Agilent. Therefore, so long as Avago’s interest
in the Avago Lot is a tenancy under the Primary Tenancy Agreement (or any successor tenancy or
sublease agreement), the easements hereunder intended to benefit Agilent and the Agilent Lot shall
currently be deemed rights retained by Agilent as landlord under the Primary Tenancy Agreement and
shall automatically be deemed easements granted by Avago to Agilent upon the consummation of the
transfer of Agilent’s interest in the Avago Lot to Avago pursuant to the Property Sale Agreement.

          (d) Registration of Easements. Each Party agrees, for itself and its successors and
assigns, that it shall execute such documents in registerable form as may be reasonably necessary
to effectuate the provisions of this Section 4, including, without limitation, any documents
granting easements, licenses and similar rights to utility companies and governmental bodies or
agencies thereof. The Parties agree to take such actions so as to enable the registration of
easements so granted hereunder pursuant to the provisions of the National Land Code, 1965, and for
such registered easements to be effective for the duration of this Agreement, as provided herein.
In the event the grant of the easements hereunder is subject to approval from the relevant
authorities and the Parties agree that they shall take such reasonable actions and execute such
documents so as to obtain such approvals from the relevant authority as soon as commercially
practicable. For the avoidance of doubt, each Party hereby agrees that the registration of such
easements granted in favor of the other by the other Party are for their benefit respectively and
each further agree that the non-registration of such easement pursuant to the National Land

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Code, 1965 arising from the inability to obtain the approvals from the relevant authority
shall not entitle the affected Party to terminate the easements and rights of way granted hereby.

          (e) No Other Use. The Common Areas shall not be used for any purpose or by any Person
not permitted by this Agreement.

     5. Maintenance of Common Areas.

          (a) Common Area Maintenance. Except for work required of any Party hereunder,
Operator shall maintain or cause to be maintained the Common Areas and Common Area Improvements in
a good, clean and first-class condition, consistent with past practice, such maintenance to
include, without limitation, the following:

          (i) Maintenance, repair and replacement of all paved surfaces, in a level, smooth, and
evenly covered condition with the type of surfacing material originally installed or such
substitute as shall in all respects be at least equal to such original material in quality,
use, appearance, and durability;

          (ii) Maintenance, repair and replacement of all curbs, curb-cuts, gutters, walkways and
retaining walls;

          (iii) Painting and striping of all Parking Areas;

          (iv) Placement, maintenance, repair and replacement of all necessary appropriate
directional signs, markers and lines, and maintenance, repair and replacement of any
artificial lighting facilities, including the replacement of fixtures and bulbs;

          (v) Provision of water for the landscaping in the Common Areas;

          (vi) Maintenance of all landscaped areas and replacement of shrubbery and planting, and
flowers including weeding, pruning and fertilizing, and repairing automatic sprinkler
systems;

          (vii) Removal of all paper, debris, filth, refuse, including thorough sweeping in the
Common Areas necessary to keep the Common Areas in a clean and orderly condition;

          (viii) Compliance with all applicable requirements of governmental agencies pertaining
to the Common Area and Common Area Improvements, including, without limitation, any
alterations or additions required to be maintained in or about the Common Area under any
laws, statutes, regulations or requirements now or hereafter adopted and made applicable to
the Common Areas;

          (ix) To the extent deemed reasonably necessary by the Operator, provision of
individuals to supervise traffic at entrances and exits to the Penang Site as conditions
reasonably require in order to maintain orderly and proper traffic flow in the Penang Site;

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          (x) To the extent deemed reasonably necessary by the Operator, provision of on-site
security personnel during the hours that the Penang Site is open for business to the public
or periodic patrol by security personnel during the hours that the Penang Site is closed;

          (xi) Collection of each Party’s Proportionate Share of CAM Costs, to the extent the
Operator believes, in its good faith judgment, that the collection efforts are worthwhile;
and

          (xii) Retention of records of the grading and drainage plan and other plans and
specifications for the installation of the Common Area Improvements, and approval or
disapproval of the quality of Common Area Improvements to be constructed.

          (b) Each Party shall furnish, at its sole cost and expense, all electricity for the lighting
of the Common Areas within such Party’s Lot. Each Party shall comply with all rules and guidelines
established by the Operator with respect to such lighting systems including, without limitation,
the times during which such lighting systems are to be operated.

     6. Payment of CAM Costs.

          (a) Costs and Payment. The Operator shall pay for CAM Costs out of monies collected
from the Parties and the Operator shall have no obligation to advance CAM Costs or other expenses.
The annual CAM Costs payable hereunder shall be estimated by the Operator in its reasonable
discretion based on the anticipated costs and expenses over the forthcoming twelve (12) month
period and shall be allocated between the Parties as provided on Exhibit C hereto. The
estimated CAM Costs shall be paid in advance by each Party as the Operator shall direct, but not
more frequently than monthly or less frequently than annually. The amount of each payment may be
adjusted from time to time by the Operator based upon the Operator’s reasonable expectation of a
change to the estimated CAM Costs. The Operator shall true up actual to budgeted expenses as soon
as reasonably practical after the end of the year and send out a statement reflecting any
adjustments required (the “Reconciliation Statement”). If the payments made by a Party
during a calendar year exceed the actual amount required for the performance of the obligations
hereunder for such calendar year, at the Operator’s option such excess shall be (i) credited to CAM
Costs next due from such Party hereunder; (ii) refunded to the Party; (iii) applied, for the
benefit of the Penang Site, to a reserve account for future contingencies, if such application is
reasonably deemed necessary by the Operator; or (iv) all or any combination of clauses (i), (ii) or
(iii) above. If the Reconciliation Statement shows that an additional sum is due to the Operator,
such Party shall pay such sum to the Operator within thirty (30) days after the date the
Reconciliation Statement was mailed.

          (b) Records. The Operator or its designees shall keep and maintain complete, accurate
and customary records and books of account of the CAM Costs for one (1) year after the end of the
calendar year to which such records and books of account pertain. The Operator may destroy any
records after such one-year period, unless there is an active dispute over CAM Costs for the year
that would then be subject to destruction. A Party or its representative shall have the right, at
such Party’s sole expense, to audit the Operator’s books and records showing CAM Costs upon at
least ten (10) business days prior written notice and during normal working days and hours at any
time within one hundred eighty (180) days following the Operator’s

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delivery of the Annual Statement. Such Party shall pay all fees and expenses of such audit
unless the audit discloses that Operating Expenses were overstated by the Operator by five percent
(5%) or more, in which case the Operator shall pay all reasonable fees and expenses of such audit.

          (c) Operator’s Failure to Maintain Common Areas. If the Operator is in material
default in the performance of its obligations as the Operator, then Avago shall have the right to
give the Operator written notice of such default specifying the particulars in respect to which the
Operator’s performance is deemed to be a material default. If at the end of a thirty (30) day
period from receipt of such notice, the Operator’s material default has not been corrected, then
Avago shall have the right to remove the Operator, effective upon written notice, and to assume the
obligations of the Operator or appoint a New Operator pursuant to Section 6(d) below. In such
event, the reasonable costs so incurred by Avago with respect to the replacement of the Operator
shall be included in the CAM Costs payable by all Parties and reimbursed to Avago by the Operator
from monies received through CAM Costs payments by the Parties. In the event that (x) a New
Operator is engaged pursuant to Section 5(d) below which is not affiliated with either Party, and
(y) Agilent (or an affiliated entity) remains the owner of the Agilent Lot, the Parties shall
negotiate in good faith towards mutually-acceptable rights with respect to the removal of such New
Operator for failure to perform and, upon any agreement relating thereto, the Parties shall amend
this subsection (c) accordingly.

          (d) Replacement of Operator. Upon resignation or removal of the Operator (“Former
Operator”), the Parties shall select and engage a new operator (“New Operator”), who
need not be a Party. On the effective date of the resignation or removal, the Former Operator
shall be released from all subsequent duties, obligations and responsibilities imposed upon the
Operator by this Agreement, and the New Operator shall assume such subsequent duties, obligations
and responsibilities as the Operator. Such takeover shall not relieve the Former Operator of any
of its other duties, obligations or responsibilities as a Party under this Agreement. Upon any
such takeover, the Former Operator shall transfer to the New Operator (i) all prepaid CAM Costs not
previously spent or reserved by the Former Operator to pay CAM Costs already incurred or
Maintenance Fees already earned, and (ii) copies of all applicable books and records relating to
the operation and maintenance of the Common Areas and construction of Common Area Improvements.
The Former Operator shall provide any and all information and documentation to effectuate the
transfer of responsibility, including, without limitation, notification to insurers and transfer or
termination of insurance policies and service contracts. Such transfer of the maintenance and
operation of the Common Area shall not (i) obligate any Party to pay any cost or expense in respect
to the maintenance and operation of the Common Area and Common Area Improvements except such
Party’s Proportionate Share of CAM Costs, (ii) relieve either Party of its obligations to pay its
respective Proportionate Share, or (iii) relieve the Former Operator from any liability or
responsibility with respect to the operation and maintenance of the Common Areas and Common Area
Improvements prior to such transfer. The Former Operator shall be entitled to collect from the
Parties any unpaid amounts to which the Former Operator is entitled under this Agreement. If
Agilent is the Operator, then upon sale of the Agilent Lot to an unaffiliated third party, Agilent
shall resign as the Operator and Avago shall have the right to become the New Operator or name a
third party to so act. At such time as neither Agilent nor Avago own a Lot at the Penang Site, the
New Operator shall be either the successor to the last of Agilent or Avago to own a Lot at the
Penang Site or a third party designated by such successor.

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          (e) Entrances.

          (i) Each Party shall maintain and repair at its sole cost and expense all present and
future entrance buildings on its respective Lot that provide access to the Penang Site.
Each Party shall be entitled to relocate, abandon or add entrance facilities to its Lot as
it deems appropriate; provided, however, no such relocation, abandonment or
addition shall unreasonably interfere with, restrict or impair the utilization of the Penang
Site by the other Party.

          (ii) Subject to applicable Law, each Party shall have rights to install, maintain and
repair equal signage at all entrances to the Penang Site located on the other Party’s Lot.

     7. Use Restrictions. Except with the prior written consent of the owner of the other
Lot or as otherwise may be provided in any Primary Parcel Agreement, the Parties agree that neither
Lot may be used so as to create (a) an environmental hazard or nuisance that is in violation of any
applicable Law, (b) any other burden that requires additional utilities or other improvements to
the Penang Site, unless such additional burden, including any added cost to operate, remedy or
maintain the same, is assumed in writing by the party adding the burden, or (c) a use or condition
not specifically allowed as a “primary” use under the then-applicable zoning regulations applicable
to the Lot in question. Additional buildings or expansion of existing buildings may be placed on
either Lot by the owner thereof; provided, however, any additional burdens on parking, the sewer
and drainage lines, entrance gates or other services or facilities on the Penang Site shall be
exclusively mitigated and paid for by the Party adding such improvements. The Parties further
agree to screen from view or locate material and waste storage facilities so as to minimize the
visual impact of such items.

     8. Right of First Offer. In the event that a Party (for the purpose of this Section
8, the “Seller”) should decide that it wishes to sell all or any portion of its Lot (the
“Sale Lot”) to an unaffiliated third party, other than in connection with the sale of all
or substantially all of the business assets or operations located on such Party’s Lot to the same
purchaser of the business assets or operations or an affiliate of such purchaser as is buying the
Sale Lot, the non-selling Lot owner (the “Buyer”) shall have the right of first offer (the
“Right of First Offer”) with respect to the purchase of the Sale Lot from the Seller before
any offer of the Lot is made to third parties. The Right of First Offer shall be exercised in such
manner and subject to such terms and conditions as are set forth in this Section 8. A Sale Lot
shall not be transferred to an unaffiliated third party without the prior written consent of the
Buyer hereto or otherwise in strict compliance with the provisions of this Section 8. For the
purposes of this Section 8, the “Purchase Price” shall mean such amount as is designated by
the Seller (the “Seller’s Offer”) in a written notice to the Buyer advising the Buyer of
its interest in selling the Sale Lot and designating, in addition to Purchase Price, the Sale Lot,
proposed closing date, and any other material conditions or restrictions intended to govern the
sale of the Sale Lot. If the Buyer wishes to enter into a contract for the purchase of the Sale
Lot offered for sale in the Seller’s Offer, the Buyer shall so inform the Seller in writing and the
Parties shall negotiate in good faith to execute a contract for the sale and purchase of the Sale
Lot within thirty (30) days after the election is received by the Seller. Such contract shall
provide for closing of the sale within sixty (60) days of the contract date. If the Buyer does not
so notify the Seller in a timely manner of its election to enter into a contract for the purchase
of the Sale Lot pursuant to Seller’s Offer, the Seller shall be free to

11

 

offer the Sale Lot to an unaffiliated third party purchaser, on terms no less favorable to the
Seller than those set forth in the Seller’s Offer. If the Seller does not thereafter complete a
sale of the Sale Lot within nine (9) months following Buyer’s lack of acceptance of Seller’s offer
on terms no less favorable to the Seller than are set forth in the Seller’s Offer, any sale of the
Sale Lot or any part thereof shall again be subject to all terms of this Section 8 as though the
Sale Lot had not previously been offered to the Buyer. At any time, the Buyer may request in
writing and shall be entitled to receive a copy of any contract, closing document or other written
instrument pertaining to the sale to any third party by the Seller of a Sale Lot. If the Seller
has strictly complied with the terms of this Section 8, at the Seller’s written request in
connection with the closing of a sale of a Sale Lot, the Buyer shall affirm in writing to any
interested party that the Seller has complied with the terms of this Section 8.

     9. Duration of Agreement. Except as specifically otherwise set forth herein, the
agreements, easements, restrictions, rights, obligations and duties contained in this Agreement
shall be perpetual.

     10. Warehouse. Agilent hereby covenants and agrees that it shall construct, or cause
to be constructed, a new warehouse building on the Avago Lot in the approximate location identified
on the Site Map (the “New Warehouse”). The Parties intend such New Warehouse to replicate
for Avago the warehouse facilities located on the Agilent Lot which were utilized by Agilent in
connection with the Business prior to the closing of the Business Sale. The New Warehouse shall be
constructed utilizing new materials in manner, size (both cubic and square feet) and quality of
materials and workmenship consistent with Agilent’s existing warehouse facilities and complying
with all applicable laws and zoning and building codes. All costs and expenses relating to the
construction of the New Warehouse shall be allocated between the Parties in accordance with the
MSA.

     11. Indemnification.

          (a) Each Party that enters the Lot of the other Party pursuant to the exercise of the rights
granted herein (“Indemnitor”) covenants and agrees to indemnify, defend and hold harmless
the other Party and Permittees (collectively, an “Indemnitee”) from and against all claims,
costs, expenses and liability (including reasonable attorneys’ fees and cost of suit incurred in
connection with all claims) including any action or proceedings brought hereon, arising from or as
a result of the death of, or any accident, injury, loss, claim, liability, cost or damage
whatsoever caused to any person, property or entity, which shall occur on the Lot or portion
thereof owned by such Indemnitee, except for claims caused by the gross negligence or willful
misconduct of such Indemnitee or its Permittees wherever the same may occur. In no event shall
either Party be liable to any Indemnitee under this Agreement for any consequential (including,
without limitation, any injury to such Indemnitee’s person or business or loss of income or profit
therefrom), punitive, exemplary or special damages.

          (b) Each Party (the “Releasor”) hereby releases and waives for itself and on behalf of
its insurer, the other Party (the “Releasees”) from any liability for any loss or damage to
all property of such Releasor located upon any portion of the Penang Site, which loss or damage is
of the type generally covered by fire and casualty insurance with all available extended coverage
endorsements, irrespective of any negligence on the part of the Releasees which may have
contributed to or caused such loss, or of the amount of such insurance required

12

 

or actually needed, appropriate endorsements to its policies of insurance with respect to the
foregoing release; it being understood, however, that failure to obtain such endorsements shall not
affect the release hereinabove given.

     12. General Provisions.

          (a) Coordinating Committee.

          (i) Within thirty (30) days after the date hereof, the Parties shall establish a
coordinating committee (the “Coordinating Committee”) which shall consist of four
(4) members, two (2) of which shall be appointed by Agilent and two (2) of which shall be
appointed by Avago. Each Party, upon prior written notice to the other Party, may from time
to time remove or replace any member appointed by such Party. So long as Agilent and Avago
are the owners of the Lots (or Avago is the tenant under the Primary Tenancy Agreement (or
any successor agreement)), this Coordinating Committee shall be the same one provided for
under the Primary Parcel Tenancy Agreement.

          (ii) Except as the Parties may otherwise agree in writing, the Coordinating Committee
shall have the power and the responsibility under this Agreement to:

(A) act as a forum for the liaison between the Parties with respect to
the day-to-day implementation of this Agreement;

(B) subject to Section 12(b), seek to resolve disputes; and

(C) undertake such other functions as the Parties may agree in writing.

          (b) Disputes and Governing Law.

          (i) This Agreement shall be governed by and construed in accordance with the laws of
Malaysia, without reference to the choice of law principles thereof.

          (ii) Any Party seeking the resolution of a dispute arising under this Agreement must
provide written notice of such dispute to the other Party, which notice shall describe the
nature of such dispute. All such disputes shall be referred initially to the Coordinating
Committee for resolution. Decisions of the Coordinating Committee under this Section 12(b)
shall be made by unanimous vote of all members and shall be final and legally binding on the
Parties. If a dispute is resolved by the Coordinating Committee, then the terms of the
resolution and settlement of such dispute shall be set forth in writing and signed by both
Parties. In the event that the Coordinating Committee does not resolve a dispute within
thirty (30) days of the submission thereof, such dispute shall be resolved in accordance
with Section 12(b)(iii). Notwithstanding the foregoing, Agilent and Avago shall each
continue to perform their obligations under this Agreement during the pendency of such
dispute in accordance with this Agreement.

13

 

          (iii) The Parties agree that irreparable damage would occur in the event that any of
the provisions of this Agreement were not performed in accordance with their specific terms
or were otherwise breached. It is accordingly agreed that the Parties shall be entitled to
an injunction to prevent any breach of this Agreement and to enforce specifically the terms
and provisions of this Agreement by bringing a relevant action in the courts located in
Penang, Malaysia, in addition to any other remedy to which any Party may be entitled at law
or in equity. In addition, the Parties agree that any disputes, claims or controversies
between the Parties arising out of or relating to this Agreement, whether in contract, tort,
equity or otherwise and whether relating to the meaning, interpretation, effect, validity,
performance or enforcement of this Agreement which have not been resolved by the
Coordinating Committee shall be submitted to the exclusive jurisdiction of the courts
located in Penang, Malaysia.

          (c) Waiver. One Party’s consent to or approval of any act by the other Party
requiring the first Party’s consent or approval shall not be deemed to waive or render unnecessary
the first Party’s consent to or approval of any subsequent similar act by the other Party. No
delay or omission in the exercise of any right or remedy accruing to either Party upon any breach
by the other Party under this Agreement shall impair such right or remedy or be construed as a
waiver of any such breach theretofore or hereafter occurring. The waiver by either Party of any
breach of any provision of this Agreement shall not be deemed to be a waiver of any subsequent
breach of the same or any other provisions herein contained.

          (d) Force Majeure. Any prevention, delay, or stoppage due to strikes, lockouts,
inclement weather, labor disputes, inability to obtain labor, materials, fuels or reasonable
substitutes therefor, governmental restrictions, regulations, controls, action or inaction, civil
commotion, fire or other acts of God, and other causes beyond the reasonable control of either
Party to perform shall excuse the performance by such Party, for a reasonable period not to exceed
the period of any said prevention, delay, or stoppage, of any obligation hereunder.

          (e) Notices. Any notice required or desired to be given regarding this Agreement
shall be in writing and shall be personally served, or in lieu of personal service may be given by
AR Registered Post or by internationally recognized overnight courier at the following addresses
for the Parties (or such other addresses as may be specified by a Party hereto giving notice of
same to the other Party in accordance with this Section):

	 	 	 	 	 
	 

	 	If to Agilent:
	 	Agilent Technologies (Malaysia) Sdn. Bhd.
	 

	 	 	 	Bayan Lepas Free Industrial Zone
	 

	 	 	 	11900 Bayan Lepas, Penang
	 

	 	 	 	Malaysia
	 

	 	 	 	Attention: Mr. Seah Teoh-Teh
	 
	 	 	 	 
	 

	 	With copy to:
	 	Agilent Technologies, Inc.
	 

	 	 	 	395 Page Mill Road
	 

	 	 	 	Palo Alto, CA 94306
	 

	 	 	 	United States of America
	 

	 	 	 	Attention: General Counsel

14

 

	 	 	 	 	 
	 

	 	If to the Avago:
	 	Avago Technologies Pte. Limited
	 

	 	 	 	1 Yishun Avenue 7
	 

	 	 	 	Singapore 768923
	 

	 	 	 	Attn: Bien-Ee Tan
	 
	 	 	 	 
	 

	 	With copy to:
	 	Avago Technologies (Malaysia) Sdn Bhd
	 

	 	 	 	(Formerly known as Jumbo Portfolio Sdn
	 

	 	 	 	Bhd) Bayan Lepas Free Industrial Zone
	 

	 	 	 	11900 Bayan Lepas, Penang, Malaysia
	 

	 	 	 	Attn: Kong-Beng Saw
	 
	 	 	 	 
	 

	 	 	 	                    - and -
	 
	 	 	 	 
	 

	 	 	 	Kohlberg Kravis Roberts & Co.
	 

	 	 	 	9 West 57th St., Ste. 4200
	 

	 	 	 	New York, NY 10019
	 

	 	 	 	United States of America
	 

	 	 	 	Attn: William Cornog

Personally served notices shall be deemed to have been given when received by the Party, if served
by prepaid registered post, such notice shall be deemed to have been given (i) on the seventh
business day after such posting, certified and postage prepaid, addressed to the Party to be served
at the address set forth in the preceding sentence was posted, and (ii) in all other cases when
actually received.

          (f) Miscellaneous. Time is of the essence with respect to the performance of every
provision of this Agreement in which time of performance is a factor. This Agreement shall, subject
to the provisions regarding assignment, apply to and bind the respective heirs, successors,
executors, administrators and assigns of Avago and Agilent. Nothing in this Section is intended to
confer personal liability upon the officers or shareholders of Avago or Agilent. Neither Party
shall become or be deemed a partner nor a joint venturer with the other by reason of the provisions
of this Agreement.

          (g) Rules of Interpretation.

          (i) Whenever the words “include”, “includes” or “including” are
used in this Agreement they shall be deemed to be followed by the words “without
limitation.”

          (ii) The words “hereof”, “hereto”, “herein” and
“herewith” and words of similar import shall, unless otherwise stated, be construed
to refer to this Agreement as a whole and not to any particular provision of this Agreement,
and article, section, paragraph and exhibit references are to the articles, sections,
paragraphs and exhibits of this Agreement unless otherwise specified.

          (iii) The meaning assigned to each term defined herein shall be equally applicable to
both the singular and the plural forms of such term, and words denoting any gender shall
include all genders. Where a word or phrase is defined herein, each of its other grammatical
forms shall have a corresponding meaning.

15

 

          (iv) A reference to any Party to this Agreement or any other agreement or document
shall include such Party’s successors and permitted assigns.

          (v) A reference to any legislation or to any provision of any legislation shall include
any amendment to, and any modification or re-enactment thereof, any legislative provision
substituted therefor and all regulations and statutory instruments issued thereunder or
pursuant thereto.

          (vi) The Parties have participated jointly in the negotiation and drafting of this
Agreement. In the event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the Parties, and no presumption or
burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of
any provisions of this Agreement.

          (vii) Headings are for convenience only and do not affect the interpretation of the
provisions of this Agreement.

          (viii) Any Exhibits attached hereto are incorporated herein by reference and shall be
considered as part of this Agreement.

          (ix) The language in all parts of this Agreement shall in all cases be construed as a
whole according to its fair meaning, and not strictly for or against either Avago or
Agilent.

          (h) If any term, condition, stipulation, provision, covenant or undertaking of this Agreement
is or may become under any written Law, or is found by any court or administrative body of
competent jurisdiction to be, illegal, void, invalid, prohibited or unenforceable then: (i) such
term, condition, stipulation, provision, covenant or undertaking shall be ineffective to the extent
of such illegality, voidness, invalidity, prohibition or unenforceability; (ii) the remaining
terms, conditions, stipulations, provisions, covenants or undertaking of this Agreement shall
remain in full force and effect; and (iii) the Parties shall use their respective best endeavors to
negotiate and agree a substitute term, condition, stipulation, provision, covenant or undertaking
which is valid and enforceable and achieves to the greatest extent possible the economic, legal and
commercial objectives of such illegal, void, invalid, prohibited or unenforceable term, condition,
stipulation, provision, covenant or undertaking. In the event that the perpetual term contemplated
herein is not enforceable, the Parties agree to take such action to extend the term hereof as shall
be permitted by law or to immediately enter into a new agreement on the same terms and conditions
as set forth herein, effective as of the expiration of the enforceable term of this Agreement.

(This space intentionally left blank)

16

 

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

	 	 	 	 	 	 	 	 	 	 	 
	“Agilent”	 	 	 	“Avago”	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	AGILENT TECHNOLOGIES (MALAYSIA)
SDN. BHD., a company organized under the

laws of Malaysia.	 	 	 	AVAGO TECHNOLOGIES (MALAYSIA)
SDN. BHD., a company organized under the
laws of Malaysia	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Gooi Soon Chai
 

	 	 
	 	By:
	 	/s/ Kenneth Y. Hao
 

	 	 
	Name:

	 	Gooi Soon Chai
	 	 	 	Name:
	 	Kenneth Y. Hao	 	 
	Title:

	 	President of Agilent Malaysia &
Singapore
	 	 	 	Title:
	 	Director	 	 

17exv10w9

 

Exhibit 10.9

PENANG PRIMARY PARCEL

EXECUTION VERSION

DATED THIS 1st DAY OF DECEMBER, 2005

BETWEEN

AGILENT TECHNOLOGIES (MALAYSIA) SDN. BHD.

(the “Vendor”)

AND

AVAGO TECHNOLOGIES (MALAYSIA) SDN. BHD.

(Company No.: 704181-P)

(formerly known as Jumbo Portfolio Sdn. Bhd.)

(the “Purchaser” )

 

SALE AND PURCHASE AGREEMENT

 

Wong & Partners

Level 41, Suite A

Menara Maxis

Kuala Lumpur City Centre

50088 Kuala Lumpur

 

 

SALE AND PURCHASE AGREEMENT

THIS AGREEMENT is made on the 1st day of December, 2005.

BETWEEN

AGILENT TECHNOLOGIES (MALAYSIA) SDN. BHD. (Company No. 12767-W) of Bayan Lepas Free Industrial
Zone, 11900 Bayan Lepas, Penang (hereinafter referred to as the “Vendor”);

AND

AVAGO TECHNOLOGIES (MALAYSIA) SDN. BHD. (formerly known as Jumbo Portfolio Sdn. Bhd.) (Company No.
704181-P) whose registered office is at Level 18, Menara Milenium, Jalan Damanlela, Pusat Bandar
Damansara, 50490 Kuala Lumpur, Malaysia (hereinafter referred to as the “Purchaser”). Purchaser
and Vendor are sometimes referred to herein individually as a “Party” and collectively as the
“Parties”.

WHEREAS :

A. The Vendor is the registered and beneficial proprietor of the Land (as hereinafter defined).

B. Agilent Technologies, Inc., a Delaware corporation (“Agilent”), and Avago Technologies Pte.
Limited (formerly known as Argos Acquisition Pte. Ltd.), a Singapore private limited company
(“Avago”), have entered into that certain Asset Purchase Agreement dated as of August 14, 2005 (as
such may be amended from time to time, the “APA”), pursuant to which Agilent has agreed to sell to
Avago its semiconductor products business and related operations (the “SPG Business”), subject to
the terms and conditions set forth in the APA and the local asset transfer agreement to be entered
into between the Vendor and the Purchaser in connection therewith (the “LATA”).

C. Pursuant to the APA, Agilent intends (i) to secure the subdivision of the Land into the Property
(as hereinafter defined) and a remaining parcel to be retained by the Vendor, (ii) to cause the
land title to the Property to be transferred to Purchaser, (iii) to then convey the Property and
Improvements to the Purchaser pursuant to this Agreement and the other Related Agreement(s), and
(iv) in the event that certain relevant approvals cannot be obtained for such subdivision and
transfer, to lease the Property to the Purchaser for the balance of the Vendor’s leasehold term
pursuant to the lease granted to it in respect of the Land.

D. In connection with the foregoing and pursuant to the APA, prior to the Closing (as such term is
defined in the LATA), the Vendor and the Purchaser have entered into or intend to enter into
certain other agreements setting forth their respective rights with respect to (i) the shared use
of certain facilities, regardless of whether such facilities are located on the Property or the
remaining parcel to be retained by the Vendor, (ii) the maintenance, repair, replacement and
operation of the Complex (as defined in that certain Tenancy Agreement hereinafter defined), (iii)
the granting of certain perpetual easements relating to certain utilities, cross-access and related
rights, and (iv) rights and duties regarding same.

 

 

E. The subdivision and transfer of the Property and Improvements cannot be consummated by the
Closing Date (as such term is defined in the LATA). Accordingly and in connection therewith,
pursuant to the APA, the Vendor has agreed to grant to the Purchaser a tenancy in the Property
pursuant to the terms and conditions of that certain tenancy agreement dated as of October 24, 2005
between the Parties (the “Tenancy Agreement”). Such tenancy granted pursuant to the Tenancy
Agreement shall terminate in accordance with its terms upon the Purchaser becoming the registered
proprietor of the Property.

F. The Vendor has agreed to sell and the Purchaser has agreed to purchase the Property for the
consideration and on the terms and upon the terms and conditions contained in this Agreement and
subject to the conditions expressed or implied in the issue document of title relating to the
Property (once the issue document of title has been issued).

OPERATIVE PROVISIONS:

	1.	 	Interpretation & Definitions

	 	1.1	 	For the purposes of this Agreement the following words and phrases shall have
the following meanings:

	 	 	 	 	 
	 

	 	“Affected Party”
	 	shall have the meaning ascribed in Section 4.7;
	 
	 	 	 	 
	 

	 	“APA”
	 	shall have the meaning ascribed in the Recitals;
	 
	 	 	 	 
	 

	 	“Assessments”
	 	shall have the meaning ascribed in Section 11.2
	 
	 	 	 	 
	 

	 	“Completion Date”
	 	means the date which is seven (7) days after the
date of satisfaction of the last of the
Conditions under Section 5 hereof to be
satisfied or waived;
	 
	 	 	 	 
	 

	 	“Conditions”
	 	shall have the meaning ascribed in Section 4;
	 
	 	 	 	 
	 

	 	“Coordinating Committee”
	 	shall have the meaning ascribed in the Tenancy
Agreement;
	 
	 	 	 	 
	 

	 	“Cut-Off Date”
	 	means the date that falls on the last day of the
thirtieth (30) calendar month from the date of
this Agreement or such longer period as may be
mutually agreed in writing by the Parties;
	 
	 	 	 	 
	 

	 	“Encumbrance”
	 	means any interest or equity of any person
(including any right to acquire, option or right
of pre-emption) or any mortgage, charge, pledge,
lien, assignment, hypothecation, security
interest, lease, encumbrance, right, contract,
charge, condition, easement, title retention or
any other security agreement or arrangement
(except solely the rights created under the
Tenancy Agreement,

2

 

	 	 	 	 	 
	 

	 	 	 	this Agreement and the other
Related Agreements (as hereinafter defined)
referenced and incorporated by reference
therein);
	 
	 	 	 	 
	 

	 	“Improvements”
	 	means all buildings and improvements located on
the Property, and all fixtures, machinery, and
equipment attached thereto, all parking lots,
driveways, pavings, access cuts, lighting,
landscaping, sidewalks, fences, ponds, wetlands,
ditches, flumes, water, water rights,
reservoirs, and site improvements of any kind
(if any) situated upon the Property, and all
right, title and interest, if any, of the Vendor
in and to any land lying in the bed of any
street, road or avenue opened or proposed,
public or private, in from of or adjoining the
Property.
	 
	 	 	 	 
	 

	 	“Land”
	 	means the piece of land, bearing title details
PN 2826 Lot 4585, Mukim 12 Daerah Barat Daya,
Penang;
	 
	 	 	 	 
	 

	 	“Land Registry”
	 	means the Land Registry or Land Office at which
the title to the Land or the Property, as the
case may be, is registered or to be registered
under the provisions of the National Land Code;
	 
	 	 	 	 
	 

	 	“LATA”
	 	shall have the meaning ascribed in the Recitals;
	 
	 	 	 	 
	 

	 	“National Land Code”
	 	means the National Land Code (Act 56 of 1965)
and includes all amendments or re-enactments
thereof;
	 
	 	 	 	 
	 

	 	“Price”
	 	shall have the meaning ascribed in Section 2.1;
	 
	 	 	 	 
	 

	 	“Property”
	 	means such part of the Land as delineated on the
Survey attached as Annexure A hereto and
incorporated herein which measures 26.99 acres,
together with the Improvements thereon and
bearing the postal address of Bayan Lepas Free
Industrial Zone, 11900 Bayan Lepas, Penang,
Malaysia;
	 
	 	 	 	 
	 

	 	“Purchaser”
	 	shall have the meaning ascribed in the
introductory paragraph to this Agreement;

3

 

	 	 	 	 	 
	 

	 	“Purchaser’s Caveat”
	 	means the private caveat to be lodged against
the Property by the Purchaser pursuant to the
terms of this Agreement;
	 
	 	 	 	 
	 

	 	“Purchaser’s Solicitors”
	 	means Zaid Ibrahim & Co. of Level 19, Menara
Milenium, Jalan Damanlela, Pusat Bandar
Damansara, 50490 Kuala Lumpur, Malaysia;
	 
	 	 	 	 
	 

	 	“Related Agreement”
	 	shall have the meaning ascribed in the Tenancy
Agreement;
	 
	 	 	 	 
	 

	 	“Survey”
	 	shall mean the survey attached hereto as
Annexure A and incorporated by reference herein;
	 
	 	 	 	 
	 

	 	“Tenancy Agreement”
	 	shall have the meaning ascribed in the Recitals
and includes, for the purposes hereof, each of
the Related Agreements referenced and
incorporated by reference therein;
	 
	 	 	 	 
	 

	 	“Transfer”
	 	means a valid and registrable memorandum of
transfer in Form 14A of the National Land Code
or such other prescribed statutory form, in
respect of the Property, duly completed and
executed by the Vendor in favour of the
Purchaser or its nominee;
	 
	 	 	 	 
	 

	 	“Transfer Documents”
	 	means :
	 
	 	 	 	 
	 

	 	 	 	l.    the separate issue document of title to the
Property;

	 
	 	 	 	 
	 

	 	 	 	2.    the Transfer;

	 
	 	 	 	 
	 

	 	 	 	3.    a stamping proforma duly executed by the
Vendor in relation to the transfer of the
Property for the Price and on the terms set out
in this Agreement;

	 
	 	 	 	 
	 

	 	 	 	4.    the quit rent and assessment receipts in
respect of the Property for the current year;
and

	 
	 	 	 	 
	 

	 	 	 	5.    all other documents in the possession of the
Vendor that may be required to enable
registration of the Transfer to be effected in
favour of the Purchaser or its nominee free from
encumbrances in accordance with the provisions
of this Agreement.

4

 

	 	 	 	 	 
	 

	 	“Vendor”
	 	shall have the meaning ascribed in the
introductory paragraph to this Agreement;
	 
	 	 	 	 
	 

	 	“Vendor’s Solicitors”
	 	means Wong & Partners of Level 41 — Suite A,
Menara Maxis, Kuala Lumpur City Centre, 50088
Kuala Lumpur.

	 	1.2	 	In this Agreement, unless it is otherwise expressly provided:

	 	(a)	 	whenever the words “include”, “includes” or “including” are
used in this Agreement they shall be deemed to be followed by the words
“without limitation;”
	 
	 	(b)	 	the words “hereof”, “hereto”, herein” and “herewith” and words
of similar import shall, unless otherwise stated, be construed to refer to this
Agreement as a whole and not to any particular provision of this Agreement, and
article, section, paragraph and exhibit references are to the articles,
sections, paragraphs and exhibits of this Agreement unless otherwise specified;
	 
	 	(c)	 	the meaning assigned to each term defined herein shall be
equally applicable to both the singular and the plural forms of such term, and
words denoting any gender shall include all genders;
	 
	 	(d)	 	where a word or phrase is defined herein, each of its other
grammatical forms shall have a corresponding meaning;
	 
	 	(e)	 	a reference to any party to this Agreement or any other
agreement or document shall include such party’s successors and permitted
assigns;
	 
	 	(f)	 	a reference to any legislation or to any provision of any
legislation shall include any amendment to, and any modification or
re-enactment thereof, any legislative provision substituted therefor and all
regulations and statutory instruments issued thereunder or pursuant thereto;
	 
	 	(g)	 	the parties have participated jointly in the negotiation and
drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly
by the parties, and no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any provisions of this
Agreement;
	 
	 	(h)	 	headings are for convenience only and do not affect the
interpretation of the provisions of this Agreement;
	 
	 	(i)	 	any Annexures or Exhibits attached hereto are incorporated
herein by reference and shall be considered as part of this Agreement;

5

 

	 	(j)	 	the language in all parts of this Agreement shall in all cases
be construed as a whole according to its fair meaning, and not strictly for or
against either the Vendor or the Purchaser; and
	 
	 	(k)	 	if any term, condition, stipulation, provision, covenant or
undertaking of this Agreement is or may become under any written law, or is
found by any court or administrative body of competent jurisdiction to be,
illegal, void, invalid, prohibited or unenforceable then:

	 	(i)	 	such term, condition, stipulation, provision,
covenant or undertaking shall be ineffective to the extent of such
illegality, voidness, invalidity, prohibition or unenforceability;
	 
	 	(ii)	 	the remaining terms, conditions, stipulations,
provisions, covenants or undertaking of this Agreement shall remain in
full force and effect; and
	 
	 	(iii)	 	the parties shall use their respective best
endeavors to negotiate and agree a substitute term, condition,
stipulation, provision, covenant or undertaking which is valid and
enforceable and achieves to the greatest extent possible the economic,
legal and commercial objectives of such illegal, void, invalid,
prohibited or unenforceable term, condition, stipulation, provision,
covenant or undertaking.

	2.	 	Agreement for Sale

	 	2.1	 	Subject to the terms and conditions contained in this Agreement, in
consideration of the value attributable to the Property, which constitutes a portion of
the Local Purchase Price (as defined in the LATA) and One Dollar U.S. (US$1.00)
(receipt of which the Vendor hereby acknowledges) (collectively, the “Price”) and the
mutual promises, covenants and undertakings contained herein, in the APA, the LATA and
the Tenancy Agreement, the Vendor shall sell, and the Purchaser, shall purchase the
Property. The Parties acknowledge that the Local Purchase Price will be paid to the
Vendor upon the Closing (as defined in the LATA).
	 
	 	2.2	 	The Property is sold:

	 	(a)	 	free from any Encumbrance;
	 
	 	(b)	 	with vacant possession in accordance with Section 10;
	 
	 	(c)	 	subject to all express conditions of title registered or to be
registered on the separate issue document of title to be issued in respect of
the Property which will not differ in any material respects (materiality being
determined by Purchaser in its reasonable discretion) from the express
conditions of title on the existing issue documents of title for the Land;

6

 

	 	(d)	 	subject to the existing category of land use affecting the
Property, namely the “industrial” category of land;
	 
	 	(e)	 	upon the basis that each of the representations and warranties
set out or referenced herein are true and accurate in all respects; and
	 
	 	(f)	 	subject to its present state and condition on an “as-is
where-is” basis.

	3.	 	[Intentionally Omitted]

	4.	 	Conditions

	 	4.1	 	The Parties agree that the obligation to complete the transaction for the sale
and purchase of the Property shall be conditional upon the fulfillment of all the
following conditions (“Conditions”):

	 	(a)	 	the approval of the Penang State Authority to the sale and
transfer of the Property to the Purchaser or acknowledge that such approval is
not required;
	 
	 	(b)	 	the removal by the Vendor of all Encumbrances from the
Property;
	 
	 	(c)	 	the payment and settlement by the Vendor of all outstanding
quit rent, rates, premiums, other outgoings or charges (if any) due and payable
for the Property;
	 
	 	(d)	 	the amendment or deletion of the restriction on interest in
respect of sub-division and the sub-division of the Land into 2 portions, in
such manner so as to correspond to the demarcation in Annexure A such
that upon such sub-division of the Land, there shall be a separate issue
document of title issued in respect of the Property; and
	 
	 	(e)	 	the issuance of separate issue document of title in respect of
the Property upon completion of subdivision of the Land.

	 	4.2	 	The Vendor shall, at its own costs and expense, be responsible for the
fulfillment of the Conditions in Section 4.1 above.
	 
	 	4.3	 	The Vendor shall submit its application for the following:

	 	(a)	 	the approval of the Penang State Authority within thirty (30)
days from the Closing Date;
	 
	 	(b)	 	the sub-division of the Land within thirty (30) days from the
Closing Date.

	 	4.4	 	Upon obtaining the approval for the subdivision of the title, the Vendor shall
as soon as practicable surrender the original issue documents of title to the Land to
facilitate the sub-division thereof and the issue of the new individual issue

7

 

	 	 	 	documents of title in respect of the Property and the remainder of the Land not
forming part of the Property.
	 
	 	4.5	 	Each Party shall use its best endeavours to ensure the fulfillment of the
Conditions for which it is responsible on or before the relevant Cut-Off Date, and
shall grant all reasonable assistance to the other Party to assist it in fulfilling the
Conditions for which the other Party is responsible including executing and providing
relevant documents for that purpose. Each Party shall at all times keep the other
Party informed of all matters relating to the approvals and without limit, must provide
the other Party with copies of all correspondence in relation to the approval.
	 
	 	4.6	 	The Conditions have been inserted for the benefit of the Purchaser and the
Purchaser may waive any or all of the Conditions at any time by notice in writing to
the Vendor.
	 
	 	4.7	 	If any conditions or terms are imposed by any of the authorities in connection
with any of the approvals obtained and such conditions or terms adversely affect one of
the parties hereto (the “Affected Party”), the Affected Party shall be entitled to give
notice to that effect in writing to the other Party within seven (7) Business Days from
the date of receipt of notice of the said conditions or terms and the party who made
the relevant application shall appeal to the relevant authority against such conditions
or terms within seven (7) Business Days therefrom. In the absence of such notice given
by the Affected Party, the Affected Party shall be deemed to have accepted the
conditions or terms imposed. For the avoidance of doubt, where such Affected Party has
given notice pursuant to this Clause, should such conditions or terms remain imposed or
the appeal be rejected or remain outstanding on the Cut-Off Date, the Condition
concerned shall be deemed to not have been fulfilled.
	 
	 	4.8	 	Except as otherwise specifically provided herein, the Parties agree that the
provisions set out in Section 11.2 of the Tenancy Agreement shall govern the Parties’
obligations and rights in the event the Conditions are not fulfilled and/or waived by
the expiry of the Cut-Off Date.

	5.	 	Transfer Documents and Completion

	 	5.1	 	The Vendor shall within fourteen (14) days from the date a separate issue
document of title is issued in respect of the Property, execute the Transfer and
deposit the Transfer Documents with the Purchasers’ Solicitors to hold and deal with in
accordance with the provisions of this Section 5.
	 
	 	5.2	 	Upon receipt by the Purchaser’s Solicitors of the Transfer Documents, the
Purchaser’s Solicitors are hereby authorised, at such time as it deems fit, to submit
the Transfer to the stamp office for the purpose of adjudication and stamping of the
same.

8

 

	 	5.3	 	The Purchaser shall on receipt of the notice of the adjudication of the
Transfer from the stamp office pay the amount of the stamp duty adjudicated and any
penalties. The Parties agree that such stamp duty shall be allocated between the
Parties in the manner provided in Section 12.2 below.
	 
	 	5.4	 	Subject to the fulfillment of all the Conditions, the Purchasers’ Solicitors
are hereby authorised to cause the Transfer Documents to be presented to the Land
Registry for the registration of the Transfer on the Completion Date. This sale and
purchase transaction shall be deemed completed upon presentation of the Transfer to the
Land Registry.

	6.	 	Representations, Warranties and Covenants

	 	6.1	 	The Vendor hereby undertakes, declares, represents, warrants and covenants with
the Purchaser that:

	 	(a)	 	as at the date hereof the Vendor is, and at the Completion Date
Vendor shall be, the registered and beneficial owner of the Land and the
Property and the Vendor has not created, and will not after the date of this
Agreement create (except as may be permitted by the Tenancy Agreement but
without limiting the Vendor’s obligations under Sections 2.2(a) and 4.2
hereof), any Encumbrance over the Property or any part thereof or transfer the
Land or the Property to anyone or any entity other than Purchaser, and that,
subject to obtaining the relevant approvals, the Vendor is entitled to transfer
the Property to the Purchaser upon the terms and conditions of this Agreement;
	 
	 	(b)	 	as at the date hereof, there are neither claims adversely
affecting the rights of the Vendor to possession or use of the Property nor the
transfer of the Property from the Vendor to the Purchaser and, save for the
occupation of the Property by the Purchaser pursuant to the Tenancy Agreement
and any other rights granted in favor of the Purchaser pursuant to the Tenancy
Agreement or any Related Agreement, the same shall be true upon the Completion
Date;
	 
	 	(c)	 	The Vendor has been duly incorporated and is validly existing
under the laws of Malaysia and has full power, authority and legal right to own
its assets and carry on its business and is not in receivership or liquidation,
has not taken any steps to enter liquidation and has not presented any petition
for the winding up the Vendor, and there are no grounds on which a petition or
application could be based for the winding up or appointment of a receiver
and/or manager of the Vendor;
	 
	 	(d)	 	The Vendor has full power, authority and legal right to enter
into this Agreement and the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby will not result in the
breach or cancellation or termination of any of the terms or conditions

9

 

	 	 	 	of or constitute a default under any material agreement, commitment or other
instrument to which the Vendor is a party or by which the Vendor may be
bound or affected or violate any material law or any rule or regulation of
any administrative agency or governmental body or any material order, writ,
injunction or decree of any court, administrative agency or governmental
body affecting the Vendor or the Property;
	 
	 	(e)	 	As at the date hereof, the Vendor is not in breach, and shall
not after the date of this Agreement commit any breach, of any express or
implied condition of its title to the Property,
	 
	 	(f)	 	The Vendor is authorized and legally competent to execute,
deliver and perform the terms of this Agreement; and
	 
	 	(g)	 	As of the date hereof, the Vendor has received no written
notice of any condemnation, eminent domain proceeding, taking, or any other
action, suit, claim, legal proceeding or any other proceeding affecting the
Land, or any portion thereof under the Land Acquisition Act 1960 or otherwise,
at law or in equity, currently pending or threatened before any court or
governmental agency.

	 	6.2	 	The Purchaser hereby undertakes, declares, represents and warrants with the
Vendor that:

	 	(a)	 	The Purchaser has been duly incorporated and is validly
existing under the laws of Malaysia and has full power, authority and legal
right to own its assets and carry on its business and is not in receivership or
liquidation, has not taken any steps to enter liquidation and has not presented
any petition for the winding up the Purchaser, and there are no grounds on
which a petition or application could be based for the winding up or
appointment of a receiver and/or manager of the Purchaser;
	 
	 	(b)	 	The Purchaser is authorized and legally competent to execute,
deliver and perform the terms of this Agreement; and
	 
	 	(c)	 	The Purchaser has full power, authority and legal right to
enter into this Agreement and the execution and delivery of this Agreement and
the consummation of the transactions contemplated hereby will not result in the
breach or cancellation or termination of any of the terms or conditions of or
constitute a default under any material agreement, commitment or other
instrument to which the Purchaser is a party or by which the Purchaser may be
bound or affected or violate any material law or any rule or regulation of any
administrative agency or governmental body or any material order, writ,
injunction or decree of any court, administrative agency or governmental body
affecting the Purchaser.

	 	6.3	 	The Parties hereby acknowledge and agree that, save for the representations and
warranties made by the Parties herein and in the Tenancy Agreement, LATA or

10

 

	 	 	 	APA, the Parties (including, without limitation, any other persons or entities
acting on behalf of either party), make no other representations and warranties with
respect to the sale and purchase of the Property, express or implied, and the
Property is sold by the Vendor and to be acquired by the Purchaser on an “as-is
where-is” basis. To the extent any representation or warranties herein are
inconsistent with any representations or warranties in the APA, the applicable
representations or warranties in the APA, shall control.

	7.	 	Acquisition of the Property

	 	7.1	 	In the event of the exercise of any rights or the taking of any steps under the
Land Acquisition Act 1960, by the government or any other authority having power in
that behalf, between the date of this Agreement and the date upon which the Transfer is
presented for registration at the Land Registry, to acquire all or a part of the Land
and which affects any part of the Property, the Vendor shall notify the Purchaser
forthwith on the Vendor receiving notice of the exercise of such rights or the taking
of such steps. The Vendor and the Purchaser hereby agree that this Agreement shall
remain in full force and effect notwithstanding such notice or action and thereupon:

	 	(a)	 	the Vendor shall notify the government, or such other acquiring
authority, of the interest of the Purchaser in the Property and the terms of
this Agreement;
	 
	 	(b)	 	the Vendor shall in all matters concerning such acquisition do
all acts and things as may be reasonably requested by the Purchaser (at the
cost and expense of the Purchaser) for acquiring the best compensation payable;
and
	 
	 	(c)	 	any compensation payable under such acquisition shall belong to
the Purchaser as and when the same shall be paid, provided that any such
compensation paid to or received by the Vendor shall be retained and held on
trust by the Vendor on behalf of the Purchaser and the Vendor shall pay such
sums to the Purchaser within fourteen (14) days from receipt of such sums.

	 	7.2	 	Except to the extent resulting from the Vendor’s gross negligence or willful
misconduct, the Purchaser hereby agrees to indemnify and keep the Vendor, and its
agents, affiliates, employees and assigns (and their respective agents and employees)
indemnified against all direct and indirect damages, costs and expenses and losses
incurred by the Vendor from the carrying out of the acts and things as directed by the
Purchaser pursuant to Section 7.1(b) above.

	8.	 	Power to Caveat

	 	8.1	 	The Purchaser shall, at any time after the date of this Agreement, be entitled
at its own cost and expense to present and register a private caveat against the
Property for the purpose of protecting its interest in the Property prior to the
completion of

11

 

	 	 	 	this Agreement (including re-registration upon expiration or other withdrawal of any
then existing registration of such private caveat).
	 
	 	8.2	 	The Purchaser agrees that where required, it shall withdraw the private caveat
over the Land or the Property, as the case may be, if it shall be required to enable
any of the Conditions to be fulfilled. The Purchaser further agrees that any delay
caused in respect of obtaining the fulfillment of any Conditions by the Vendor, arising
from the non-removal of the private caveat by the Purchaser shall extend the Cut-Off
Date by such period of delay caused by the non-withdrawal of the private caveat.
	 
	 	8.3	 	The Purchaser shall also execute the relevant withdrawal of private caveat
documents and deposit the same, together with the relevant fees for the withdrawal of
private caveat, with the Purchaser’s Solicitors upon execution of this Agreement. For
the avoidance of doubt, the Purchaser hereby authorises the Purchaser’s Solicitors to
present the said withdrawal of private caveat documents with the relevant Land Office
or Land Registry upon the termination of this Agreement or consummation of the Transfer
pursuant to the terms of this Agreement.

	9.	 	Real Property Gains Tax

	 	9.1	 	The Vendor shall be responsible for paying and settling all real property gains
tax (if any) payable on the disposal of the Property pursuant to this Agreement as may
be assessed by the Director General of Inland Revenue under the provisions of the Real
Property Gains Tax Act, 1976.
	 
	 	9.2	 	The Vendor and the Purchaser shall within thirty (30) days of the execution of
this Agreement comply with Section 13 of the Real Property Gains Tax Act 1976 by
submitting the relevant return forms to the Director-General of Inland Revenue and
complying with all necessary directions that may be issued by him in respect thereof.
	 
	 	9.3	 	The Vendor shall indemnify and hold the Purchaser and its agents, affiliates,
employees and assigns (and their respective agents and employees) harmless against all
claims, costs, direct and indirect damages, fines or penalties which may be brought,
suffered or levied against the Purchaser (or such other person) as a result of the
Vendor not complying with any of the provisions of the Real Property Gains Tax Act
1976, including any claims by the Director-General of Inland Revenue arising from the
Vendor’s default in payment of any real property gains tax payable on the disposal of
the Property pursuant to this Agreement.

	10.	 	Possession

     The parties agree that prior to the Completion Date the Purchaser shall be in possession of
the Property pursuant to the terms of the Tenancy Agreement and possession shall be deemed
delivered to the Purchaser by the Vendor at 12.01 a.m. on the day immediately following the
Completion Date.

12

 

	11.	 	Quit Rent

	 	11.1	 	All quit rent, rates, assessments, and other outgoings payable in respect of
the Property shall be apportioned between the Vendor and the Purchaser as at the date
of the delivery of possession in accordance with this Agreement and shall be paid to
the party who is entitled to such apportionment within fourteen (14) days of its demand
for the same.
	 
	 	11.2	 	Subject to the agreement set forth in Section 4.2 of the Tenancy Agreement
regarding the apportionment of quit rent, rates, assessments and other outgoings
payable in respect of the Property (the “Assessments”), the Vendor shall indemnify the
Purchaser to the extent of the Vendor’s obligations in respect of such Assessments
under the Tenancy Agreement, against any loss or penalty which may be imposed by the
relevant authority in respect of any late or non-payment of any such Assessments due
and payable for such period prior to the Completion Date.

	12.	 	Costs

	 	12.1	 	Each party shall bear its own solicitors’ costs of, and incidental to, the
preparation of this Agreement.
	 
	 	12.2	 	The Purchaser and Vendor each shall be responsible for and shall pay fifty
percent (50%) of all stamp duty and registration fees payable on this Agreement and the
Transfer.
	 
	 	12.3	 	As of the date hereof, the parties acknowledge and agree that no goods and
services tax, value added tax or any other like tax (“GST”) has been instituted by any
Malaysian governmental authority. If, however, any such GST legislation is implemented
during the Tenancy Term (as defined in the Tenancy Agreement) (“GST Legislation”) and
any GST is payable as a consequence of any supply made or deemed to be made or other
matter or thing done under or in connection with this Agreement by the Vendor or the
Purchaser, it is the intent of the Parties that such GST be borne equally by the Vendor
and the Purchaser. In such event, the Party responsible under applicable law for the
remittance of such GST (the “GST Payor”) shall timely remit to the appropriate
authority the full GST amount then-owning. Upon presentation to the other Party (the
“GST Non-Payor”) of evidence of such GST assessment and the corresponding remittance by
the GST Payor, the GST Non-Payor shall promptly reimburse the GST Payor for fifty
percent (50%) of such GST amount (but exclusive of any fine, penalty or interest paid
or payable in connection therewith due to a default of the GST Payor). The Vendor and
the Purchaser agree to cooperate with each other in the provision of any information or
preparation of any documentation that may be necessary or useful for obtaining any
available mitigation, reduction, refund or exemption from GST. The GST Payor further
covenants and agrees to use its reasonable efforts to obtain any available mitigation,
reduction, refund or exemption from GST and, upon receipt or recovery of any portion of
the aforementioned GST remittance,

13

 

	 	 	 	shall promptly pay to the GST Non-Payor of fifty percent (50%) of such recovered
amount. For the avoidance of doubt, the Parties agree that any sum payable or
amount to be used in the calculation of a sum payable expressed elsewhere in this
Agreement has been determined without regard to and does not include amounts to be
added on under this clause on account of GST.

13. Communication

     Any notice required or desired to be given regarding this Agreement shall be in writing and
shall be personally served, or in lieu of personal service may be given by AR Registered Post or by
internationally recognized overnight courier at the addresses for the Parties set forth below (or
such other addresses as may be specified by a party hereto giving notice of same to the other party
in accordance with this Section). Personally served notices shall be deemed to have been given
when received by the Party, if served by prepaid registered post, such notice shall be deemed to
have been given (i) on the seventh business day after such posting, certified and postage prepaid,
addressed to the party to be served at the address set forth in the preceding sentence was posted,
and (ii) in all other cases when actually received.

To the Vendor

Agilent Technologies (Malaysia) Sdn. Bhd.

Bayan Lepas Free Industrial Zone

11900 Bayan Lepas

Penang

Attn: Mr Seah Teoh-Teh

Fax: +(65) 6822-8407

With copy to:

Agilent Technologies, Inc.

395 Page Mill Road

Palo Alto, CA 94306

United States of America

Attn: General Counsel

Fax: +1(650) 752 5742

To the Purchaser

Avago Technologies Pte. Limited

1 Yishun Avenue 7

Singapore 768923

Attn: Bien-Ee Tan

14

 

with a copy to:

Avago Technologies (Malaysia) Sdn Bhd

(Formerly known as Jumbo Portfolio Sdn Bhd)

Bayan Lepas Free Industrial Zone

11900 Bayan Lepas, Penang, Malaysia

Attn: Kong-Beng Saw

Kohlberg Kravis Roberts & Co.

9 West 57th St., Ste. 4200

New York, NY 10019

United States of America

Attn: William Cornog

	14.	 	General Matters and Covenants

     14.1 The parties shall give all such assistance and information to the other and execute and
do and procure all other necessary persons or companies, if any, to execute and do all such further
acts, deeds, assurances and things as may be reasonably required so that full effect may be given
to the terms and conditions of this Agreement.

     14.2 The Parties hereby agree that upon the Purchaser becoming the registered proprietor of
the Property, the Parties will take such actions and execute such documents as shall be required to
enable the Purchaser and the Vendor to each grant to the other, to the extent applicable pursuant
to Part Seventeen of the National Land Code, 1965, registrable easements in respect of such rights
set out in the SUA (as such term is defined in the Tenancy Agreement) which are capable of being
granted thereunder and to cause the registration of the appropriate form with the relevant
authority. The Parties acknowledge and agree that such grant of the easements may be subject to
approvals being obtained from the relevant authority and the Parties agree that they will use their
respective best endeavors and shall execute such documents as required so as to obtain such
approvals from the relevant authority as soon as commercially practicable thereafter. For the
avoidance of doubt, each Party hereby agrees that the registration of such easements granted in
favor of the other by the other Party are for their benefit respectively and each further agree
that the non-registration of such easement pursuant to the National Land Code, 1965 arising from
the inability to obtain the approvals (or acknowledgment that such approvals are not required) from
the relevant authority will not entitle the affected party to terminate this Agreement, but it no
event shall any ultimate inability to register such easements invalidate or nullify the easements
and rights granted or retained in the SUA.

	15.	 	Successors and Assigns

     This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their
respective successors and permitted assigns. The Purchaser may assign or sublet all of its rights
and obligations under this Agreement to any person, entity or organization, provided that the
Purchaser also assigns all of its rights and obligations under the Tenancy Agreement and the
Related Agreements to such person, entity or organization. The Vendor may assign its rights and
obligations under this Agreement to any person, entity or organization, provided that (a) the

15

 

Vendor assigns all of its rights in the Land to such person, entity or organization, and (b)
such person, entity or organization agrees in writing to assume and be bound by the terms of the
Tenancy Agreement and the Related Agreements in place of the Vendor.

16. Nature of Agreement

	 	16.1	 	This Agreement may be executed in any number of counterparts or duplicates each
of which shall be an original, but such counterparts or duplicates shall together
constitute one and the same agreement.
	 
	 	16.2	 	This Agreement, together with the APA, the LATA, the Tenancy Agreement and the
other Related Agreements, constitutes the entire agreement between the parties with
respect to the subject matter hereof. Each party acknowledges that, except as provided
in the APA, LATA, the Tenancy Agreement and the other Related Agreements, there are no
binding agreements or representations between the parties except as expressed or
described herein or therein. No subsequent change or addition to this Agreement shall
be binding unless in writing and signed by the Vendor and the Purchaser.
	 
	 	16.3	 	Time is of the essence with respect to the performance of every provision of
this Agreement in which time of performance is a factor. This Agreement shall, subject
to the provisions regarding assignment, apply to and bind the respective heirs,
successors, executors, administrators and assigns of the Vendor and the Purchaser.
Nothing in this Section is intended to confer personal liability upon the officers or
shareholders of the Vendor or the Purchaser. When a party is required to do something
by this Agreement, it shall do so at its sole cost and expense without right of
reimbursement from the other party unless specific provision is made therefor. The
Vendor shall not become or be deemed a partner nor a joint venturer with the Purchaser
by reason of the provisions of this Agreement.

	17.	 	Law and Jurisdiction

	 	17.1	 	This Agreement shall be governed and interpreted in accordance with the laws of
Malaysia without reference to the choice of law principles thereof.
	 
	 	17.2	 	A party seeking the resolution of a dispute arising under this Agreement must
provide written notice of such dispute to the other party, which notice shall describe
the nature of such dispute. All such disputes shall be referred initially to the
Coordinating Committee for resolution. Decisions of the Coordinating Committee shall
be made by unanimous vote of all members and shall be final and legally binding on the
parties. If a dispute is resolved by the Coordinating Committee, then the terms of the
resolution and settlement of such dispute shall be set forth in writing and signed by
both parties. In the event that the Coordinating Committee does not resolve a dispute
within thirty (30) days of the submission thereof, such dispute shall be resolved in
accordance with Section 17.3. Notwithstanding the foregoing, the parties shall each
continue to perform

16

 

	 	 	 	their obligations under this Agreement during the pendency of such dispute in
accordance with this Agreement.
	 
	 	17.3	 	The parties agree that irreparable damage would occur in the event that any of
the provisions of this Agreement were not performed in accordance with their specific
terms or were otherwise breached. It is accordingly agreed that the parties shall be
entitled to an injunction to prevent any breach of this Agreement and to enforce
specifically the terms and provisions of this Agreement by bringing a relevant action
in the courts located in Penang, Malaysia, in addition to any other remedy to which any
party may be entitled at law or in equity. In addition, the parties agree that any
disputes, claims or controversies between the parties arising out of or relating to
this Agreement, whether in contract, tort, equity or otherwise and whether relating to
the meaning, interpretation, effect, validity, performance or enforcement of this
Agreement which have not been resolved by the Coordinating Committee shall be submitted
to the exclusive jurisdiction of the courts located in Penang, Malaysia..

*******************************************

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17

 

     IN WITNESS WHEREOF this Agreement has been executed on the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	“Vendor”	 	 	 	“Purchaser”	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	AGILENT TECHNOLOGIES (MALAYSIA) SDN.
BHD., a company organized under the
laws of Malaysia	 	 	 	AVAGO TECHNOLOGIES (MALAYSIA) SDN.
BHD., (formerly known as Jumbo
Portfolio Sdn. Bhd.), a company
organized under the laws of Malaysia	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Gooi Soon Chai
	 	 	 	By:
	 	/s/ Kenneth Y. Hao	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name: Gooi Soon Chai	 	 	 	Name: Kenneth Y. Hao	 	 
	Title: President of Agilent
Malaysia & Singapore	 	 	 	Title: Director	 	 

SIGNATURE PAGE — SALE & PURCHASE AGREEMENT (MALAYSIA)

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