Document:

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                                                                    EXHIBIT 10.6

                           EMPLOYEE MATTERS AGREEMENT

                                     BETWEEN

                         SCHLUMBERGER TECHNOLOGY CORP.,

                        SCHLUMBERGER TECHNOLOGIES, INC.,

                                SCHLUMBERGER B.V.

                                       AND

                                  NPTEST, INC.

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                               TABLE OF CONTENTS

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ARTICLE I. DEFINITIONS                                                                                             1
               ACTION ....................................................................................         1
               AFFILIATES ................................................................................         1
               AGREEMENT .................................................................................         2
               ANCILLARY AGREEMENTS ......................................................................         2
               ANNUAL BONUS PLAN .........................................................................         2
               BENEFIT RESTORATION PLAN ..................................................................         2
               COBRA .....................................................................................         2
               CODE ......................................................................................         2
               COMMON STOCK ..............................................................................         2
               DOL .......................................................................................         2
               EMPLOYMENT LIABILITIES ....................................................................         2
               ERISA .....................................................................................         2
               FLEXIBLE BENEFITS PLAN ....................................................................         3
               FMLA ......................................................................................         3
               FRINGE BENEFITS ...........................................................................         3
               GOVERNMENTAL AUTHORITY ....................................................................         3
               GROUP INSURANCE POLICIES ..................................................................         3
               HCFA ......................................................................................         3
               HEALTH AND WELFARE PLANS ..................................................................         3
               HEALTH PLANS ..............................................................................         3
               HEALTH PLAN TRANSITION DATE ...............................................................         3
               HMO .......................................................................................         4
               HMO AGREEMENTS ............................................................................         4
               INTERNATIONAL PSP .........................................................................         4
               IPO .......................................................................................         4
               IPO CLOSING DATE ..........................................................................         4
               IPO RETIREES ..............................................................................         4
               IRS .......................................................................................         4
               IS PENSION PLAN ...........................................................................         4
               LEAVE OF ABSENCE PROGRAMS .................................................................         4
               LIABILITIES ...............................................................................         4
               NPTEST ....................................................................................         4
               NPTEST BUSINESS ...........................................................................         5
               NPTEST EMPLOYEE ...........................................................................         5
               NPTEST GROUP ..............................................................................         5
               NPTEST INDEMNITIES ........................................................................         5
               NPTEST RETIRED EMPLOYEE ...................................................................         5
               NPTEST TERMINATED EMPLOYEE ................................................................         5
               NPTEST TRANSITION DATE ....................................................................         5
               NPTEST UNION EMPLOYEES ....................................................................         5
               NPTEST WCP CLAIMS .........................................................................         6
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<S>                                                                                                               <C>
               OPTION ....................................................................................         6
               OPTION PLAN ...............................................................................         6
               OUTSOURCE .................................................................................         6
               PARTICIPATING COMPANY .....................................................................         6
               PBGC ......................................................................................         6
               PERSON ....................................................................................         6
               PLAN ......................................................................................         6
               QDRO ......................................................................................         6
               QMCSO .....................................................................................         6
               SAVINGS PLAN ..............................................................................         6
               SAVINGS RESTORATION PLAN ..................................................................         7
               SCHLUMBERGER ..............................................................................         7
               SEC .......................................................................................         7
               SEPARATION ................................................................................         7
               SEPARATION AGREEMENT ......................................................................         7
               SEPARATION DATE ...........................................................................         7
               SEVERANCE PLANS ...........................................................................         7
               STC .......................................................................................         7
               STC EMPLOYEE ..............................................................................         7
               STC GROUP .................................................................................         7
               STC INDEMNITIES ...........................................................................         7
               STC PENSION PLAN ..........................................................................         8
               STC TERMINATED EMPLOYEE ...................................................................         8
               STC WCP ...................................................................................         8
               STOCK PURCHASE PLAN .......................................................................         8
               SUBSIDIARY ................................................................................         8
               TAX SHARING AGREEMENT .....................................................................         8
               TRANSITION SERVICES AGREEMENT .............................................................         8
               UNION PLANS ...............................................................................         8

ARTICLE II. GENERAL PRINCIPLES ...........................................................................         8
     2.01      ASSUMPTION OF NPTEST LIABILITIES ..........................................................         8
     2.02      EMPLOYMENT LIABILITIES INDEMNIFICATION ....................................................         9
     2.03      ESTABLISHMENT OF NPTEST PLANS .............................................................        11
     2.04      NPTEST'S PARTICIPATION IN STC PLANS .......................................................        11
     2.05      TERMS OF PARTICIPATION BY NPTEST EMPLOYEES IN NPTEST PLANS ................................        13
     2.06      NON-U.S. PLANS ............................................................................        13

ARTICLE III. DEFINED BENEFIT PLAN ........................................................................        13
     3.01      NPTEST EMPLOYEES' PARTICIPATION IN STC PENSION PLAN .......................................        13
     3.02      NPTEST EMPLOYEES PARTICIPATION IN IS PENSION PLAN .........................................        14

ARTICLE IV. DEFINED CONTRIBUTION PLANS ...................................................................        14
     4.01      NPTEST SAVINGS PLAN .......................................................................        14
     4.02      IS PROFIT-SHARING PLAN [Reserved.] ........................................................        14
     4.03      NPTEST RETIRED EMPLOYEES ..................................................................        14
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ARTICLE V. EXECUTIVE AND OTHER PLANS .................................................   15
      5.01     BENEFIT AND SAVINGS RESTORATION PLANS .................................   15
      5.02     SEVERANCE PLANS .......................................................   15

ARTICLE VI. HEALTH AND WELFARE PLANS .................................................   16
      6.01     ASSUMPTION OF HEALTH AND WELFARE PLAN LIABILITIES .....................   16
      6.02     CLAIMS FOR HEALTH AND WELFARE PLANS ...................................   17
      6.03     POST-SEPARATION TRANSITIONAL ARRANGEMENTS .............................   17
      6.04     COBRA AND HIPAA .......................................................   18
      6.05     LEAVE OF ABSENCE PROGRAMS AND FMLA ....................................   18
      6.06     STC WORKERS' COMPENSATION PROGRAM .....................................   18

ARTICLE VII. EQUITY AND OTHER COMPENSATION ...........................................   19
      7.01     SCHLUMBERGER OPTIONS ..................................................   19
      7.02     STOCK PURCHASE PLAN ...................................................   19
      7.03     NPTEST OPTION PLAN ....................................................   19
      7.04     ANNUAL BONUS PLAN .....................................................   20

ARTICLE VIII. FRINGE AND OTHER BENEFITS ..............................................   20
      8.01     FRINGE BENEFITS .......................................................   20
      8.02     VACATION ..............................................................   20
      8.03     OTHER BENEFITS ........................................................   20

ARTICLE IX. CERTAIN TRANSITION MATTERS ...............................................   21
      9.01     TRANSITION SERVICES AGREEMENT .........................................   21
      9.02     PAYMENT OF LIABILITIES, PLAN EXPENSES AND RELATED MATTERS .............   21
      9.03     SHARING OF PARTICIPANT INFORMATION ....................................   21
      9.04     REPORTING AND DISCLOSURE COMMUNICATIONS TO PARTICIPANTS ...............   22
      9.05     AUDITS REGARDING VENDOR CONTRACTS .....................................   22
      9.06     BENEFICIARY DESIGNATIONS ..............................................   22
      9.07     REQUESTS FOR IRS AND DOL OPINIONS .....................................   22
      9.08     FIDUCIARY MATTERS .....................................................   22
      9.09     CONSENT OF THIRD PARTIES ..............................................   23
      9.10     TAX COOPERATION .......................................................   23
      9.11     PLAN RETURNS ..........................................................   23

ARTICLE X. EMPLOYMENT-RELATED MATTERS ................................................   23
     10.01     TERMS OF NPTEST EMPLOYMENT ............................................   23
     10.02     HR DATA SUPPORT SYSTEMS ...............................................   23
     10.03     EMPLOYMENT OF EMPLOYEES WITH U.S. WORK VISAS ..........................   23
     10.04     CONFIDENTIALITY AND PROPRIETARY INFORMATION ...........................   23
     10.05     ACCRUED PAYROLL, BONUSES, PROFIT SHARING AND COMMISSIONS ..............   28
     10.06     PAYROLL AND WITHHOLDING ...............................................   28
     10.07     PERSONNEL AND PAY RECORDS .............................................   29
</TABLE>

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     <S>                                                                                  <C>
     10.08     NON-TERMINATION OF EMPLOYMENT; NO THIRD-PARTY BENEFICIARIES ...........    29

ARTICLE XI. GENERAL PROVISIONS .......................................................    29
     11.01     EFFECT IF IPO AND/OR SEPARATION DOES NOT OCCUR ........................    29
     11.02     RELATIONSHIP OF PARTIES ...............................................    30
     11.03     AFFILIATED COMPANIES ..................................................    30
     11.04     INCORPORATION OF SEPARATION AGREEMENT PROVISIONS ......................    30
     11.05     GOVERNING LAW .........................................................    30
     11.06     SEVERABILITY ..........................................................    30
     11.07     AMENDMENT .............................................................    30
     11.08     TERMINATION ...........................................................    31
     11.09     CONFLICT ..............................................................    31
     11.10     COUNTERPARTS ..........................................................    31
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                           EMPLOYEE MATTERS AGREEMENT

         This EMPLOYEE MATTERS AGREEMENT (this "Agreement") is entered into as
of _________________, between Schlumberger Technology Corp., a Texas corporation
("STC"), Schlumberger Technologies, Inc., a Delaware corporation ("STI"),
Schlumberger B.V., a Netherlands corporation ("SBV") and NPTest, Inc., a
Delaware corporation ("NPTest"). Capitalized terms used herein and not otherwise
defined shall have the meanings ascribed to such terms in Article I hereof.

                                    RECITALS

         WHEREAS, STI and SBV collectively own all of the currently issued and
outstanding common stock of NPTest;

         WHEREAS, shortly hereafter, shares of NPTest common stock will be sold
to the public in an initial public offering (the "IPO"), which will reduce STI's
and SBV's ownership of NPTest's issued and outstanding shares of common stock by
not more than ____%;

         WHEREAS, each of STI and SBV currently intends to divest its remaining
ownership in NPTest through public or private sales of all of the shares of
NPTest common stock owned by it at a time subsequent to the date of the IPO.

         WHEREAS, in furtherance of the foregoing, STC, STI, SBV and NPTest have
agreed to enter into this Agreement to allocate between them assets, liabilities
and responsibilities with respect to certain employee compensation, benefit
plans and programs, and certain employment matters; and

         NOW, THEREFORE, in consideration of the foregoing and the covenants and
agreements set forth below, the parties hereto agree as follows:

                                   ARTICLE I.

                                   DEFINITIONS

         Wherever used in this Agreement, the following terms shall have the
meanings indicated below, unless a different meaning is plainly required by the
context. Capitalized terms used herein and not otherwise defined shall have the
meanings ascribed to such terms in the Separation Agreement. The singular shall
include the plural, unless the context indicates otherwise. Headings of sections
are used for convenience of reference only, and in case of conflict, the text of
this Agreement, rather than such headings, shall control:

         ACTION. "Action" means any demand, action, suit, countersuit,
arbitration, inquiry, proceeding or investigation by or before any federal,
state, local, foreign or international Governmental Authority or any arbitration
or mediation tribunal.

         AFFILIATES. "Affiliates" shall have the meaning set forth in the
Separation Agreement.

                                      -1-

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         AGREEMENT. "Agreement" means this Employee Matters Agreement, including
all the Addenda, Schedules and Exhibits hereto, and all amendments made hereto
from time to time.

         ANCILLARY AGREEMENTS. "Ancillary Agreements" shall have the meaning set
forth in the Separation Agreement.

         ANNUAL BONUS PLAN. "Annual Bonus Plan," when immediately preceded by
"STC," means the Schlumberger Technology Corp. Performance Incentive Plan. When
immediately preceded by "NPTest," "Annual Bonus Plan" means the annual incentive
plan to be established by NPTest pursuant to Sections 2.03 and 7.04.

         BENEFIT RESTORATION PLAN. "Benefit Restoration Plan" means the
Schlumberger Supplementary Benefits Plan which relates to restoration of defined
benefit accruals limited by the qualified plan rules.

         COBRA. "COBRA" means the continuation coverage requirements for "group
health plans" under Title X of the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended from time to time, and as codified in Code Section 4980B
and ERISA Sections 601 through 608.

         CODE. "Code" means the Internal Revenue Code of 1986, as amended from
time to time.

         COMMON STOCK. "Common Stock," when immediately preceded by
"Schlumberger," means the common stock, without par value of Schlumberger. When
immediately preceded by "NPTest," "Common Stock" means the common stock, par
value $.01 per share, of NPTest.

         DOL. "DOL" means the United States Department of Labor.

         EMPLOYMENT LIABILITIES. "Employment Liabilities" means all claims,
causes of action, demands, liabilities, debts or damages (known or unknown)
related to all employment matters addressed in this Agreement, including but not
limited to claims arising under federal, state or local statute (including,
without limitation, Title VII of the Civil Rights Act of 1964, as amended
("Title VII"); the Age Discrimination in Employment Act of 1967, including the
Older Workers Benefit Protection Act of 1990 ("ADEA"); the Civil Rights Act of
1866, as amended, the Civil Rights Act of 1991, the Americans with Disabilities
Act of 1990 ("ADA"), the Energy Reorganization Act, as amended, 42 U.S.C. ss.
5851; the Workers Adjustment and Retraining Notification Act of 1988; the
Pregnancy Discrimination Act of 1978; ERISA; FMLA; the Fair Labor Standards Act;
the Occupational Safety and Health Act; the Equal Pay Act); claims in connection
with workers' compensation or "whistle blower" statutes and/or contract, tort,
defamation, slander, wrongful termination or any other state or federal
regulatory, statutory or common law or local ordinance.

         ERISA. "ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time.

                                      -2-

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         FLEXIBLE BENEFITS PLAN. "Flexible Benefits Plan," when immediately
preceded by "STC," means the Schlumberger Technology Corp. Flexible Benefits
Plan. When immediately preceded by "NPTest," Flexible Benefits Plan means the
flexible benefits plan to be established by NPTest pursuant to Section 2.03 and
Article VI that corresponds to the STC Flexible Benefits Plan.

         FMLA. "FMLA" means the Family and Medical Leave Act of 1993, as amended
from time to time.

         FRINGE BENEFITS. "Fringe Benefits," when immediately preceded by "STC,"
means the employee assistance program, educational assistance program, executive
financial planning program and relocation program sponsored and maintained by
STC. When immediately preceded by "NPTest," "Fringe Benefits" means the fringe
benefits, plans, programs and arrangements established or to be established by
NPTest pursuant to Section 2.03 and Article VIII that correspond to the
respective STC Fringe Benefits.

         GOVERNMENTAL AUTHORITY. "Governmental Authority" shall mean any
federal, state, local, foreign or international court, government, department,
commission, board, bureau, agency, official or other regulatory, administrative
or governmental authority.

         GROUP INSURANCE POLICIES. "Group Insurance Policies" is defined in
Subsection 6.04(b) and the Schedule thereto.

         HCFA. "HCFA" means the United States Health Care Financing
Administration.

         HEALTH AND WELFARE PLANS. "Health and Welfare Plans," when immediately
preceded by "STC," means the STC Health Plans, the Schlumberger Cafeteria,
Health Care Spending Account and Dependent Care Spending Account Plan (to the
extent not included in the definition of Health Plans below), the Schlumberger
Group Life, AD&D and BTA Plan, and the Schlumberger Disability Plan and any
similar or successor plans, programs or arrangements established and maintained
by STC for the benefit of employees and retirees of any member of the STC Group,
and such other welfare plans or programs as may apply to such employees and
retirees as of the NPTest Transition Date. When immediately preceded by
"NPTest," "Health and Welfare Plans" means the NPTest Health Plans, the NPTest
Flexible Benefits Plan, and the health and welfare plans to be established by
NPTest pursuant to Section 2.03 and Article VI that correspond to the respective
STC Health and Welfare Plans.

         HEALTH PLANS. "Health Plans," when immediately preceded by "STC," means
the Schlumberger Group Health Care Plan, Schlumberger Retiree Medical Plan, and
Schlumberger Cafeteria, Health Care Spending Account and Dependent Care Spending
Account Plan (to the extent it provides health care spending account benefits),
and any similar or successor plans, programs or arrangements. When immediately
preceded by "NPTest," "Health Plans" means the health plans, programs and
arrangements to be established by NPTest pursuant to Section 2.03 and Article VI
that correspond to the respective STC Health Plans.

         HEALTH PLAN TRANSITION DATE. "Health Plan Transition Date" means
January 1, 2003, or such earlier date as STC and NPTest may agree.

                                      -3-

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         HMO. "HMO" means a health maintenance organization that provides
benefits under the STC Health Plans or the NPTest Health Plans.

         HMO AGREEMENTS. "HMO Agreements" is defined in Subsection 6.04(c) and
Schedule 6.04(c).

         INTERNATIONAL PSP. "International PSP" when immediately preceded by
"STC," means the applicable of the Schlumberger Limited International Staff
Profit Sharing Plan and the Schlumberger Profit-Sharing Plan for US Citizens
Employed Aboard. When immediately preceded by "NPTest," "Savings Plan" means the
profit sharing plans to be established by NPTest pursuant to Section 2.03 and
4.02.

         IPO. "IPO" has the meaning set forth in the Recitals hereof, as the
same is further described in the Separation Agreement.

         IPO CLOSING DATE. "IPO Closing Date" means the first date on which the
proceeds of any sale of NPTest Common Stock to the underwriters in the IPO are
received.

         IPO RETIREES. "IPO Retirees" are NPTest Employees who have attained
sufficient age and service credit as of the IPO Closing Date to retire and begin
receiving retiree medical benefits under the STC Retiree Medical Plan and
pension benefits under the Retirement Pan.

         IRS. "IRS" means the United States Internal Revenue Service.

         IS PENSION PLAN. "IS Pension Plan" means the Schlumberger Limited
International Staff Pension Plan.

         LEAVE OF ABSENCE PROGRAMS. "Leave of Absence Programs," when
immediately preceded by "STC," means the personal, medical, military and FMLA
leave offered from time to time under the personnel policies and practices of
STC. When immediately preceded by "NPTest," "Leave of Absence Programs" means
the leave of absence programs established and maintained by NPTest.

         LIABILITIES. "Liabilities" shall mean any and all indebtedness,
liabilities and obligations, whether accrued, fixed or contingent, mature or
inchoate, known or unknown, reflected on a balance sheet or otherwise,
including, but not limited to, those arising under any law, rule, regulation,
Action, order, injunction or consent decree of any Governmental Authority or any
judgment of any court of any kind or any award of any arbitrator of any kind,
and those arising under any contract, commitment or undertaking.

         NPTEST. "NPTest" means NPTest, Inc., a Delaware corporation. In all
such instances in which NPTest is referred to in this Agreement, it shall also
be deemed to include a reference to each member of the NPTest Group, unless it
specifically provides otherwise; NPTest shall be solely responsible to STC for
ensuring that each member of the NPTest Group complies with the applicable terms
of this Agreement.

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         NPTEST BUSINESS. "NPTest Business" shall have the meaning set forth in
the Separation Agreement.

         NPTEST EMPLOYEE. "NPTest Employee" means any individual who, as of the
Separation Date, is: (a) either actively employed by, or on short-term
disability leave or a leave of absence from, any member of the NPTest Group; (b)
a NPTest Terminated Employee; (c) an alternate payee under a QDRO, alternate
recipient under a QMCSO, beneficiary, covered dependent, or qualified
beneficiary (as such term is defined under COBRA), of an employee described in
Subsection (a) or (b) above; or (d) an employee or group of employees designated
by STC and NPTest, by mutual agreement, as NPTest Employees; but not (e) a
NPTest Retired Employee. An employee may be a NPTest Employee pursuant to this
Section regardless of whether such employee is, as of the Separation Date,
alive, actively employed, on a temporary leave of absence from active
employment, on layoff, terminated from employment, retired or on any other type
of employment or post-employment status relative to a STC Plan, and regardless
of whether, as of the Separation Date, such employee is then receiving any
benefits from a STC Plan.

         NPTEST GROUP. "NPTest Group" shall have the meaning set forth in the
Separation Agreement.

         NPTEST INDEMNITIES. "NPTest Indemnities" means NPTest and each member
of the NPTest Group and each of their respective directors, officers and
employees, and each of the heirs, executors, successors and assigns of any of
the foregoing.

         NPTEST RETIRED EMPLOYEE. "NPTest Retired Employee" means any individual
who would have qualified as a NPTest Employee but who retired on or after the
NPTest Transition Date and on or before the Separation Date and who is
identified as a NPTest Retired Employee by mutual agreement between NPTest and
STC on or before the Separation Date.

         NPTEST TERMINATED EMPLOYEE. "NPTest Terminated Employee" means any
individual who is a former employee of any member of the STC Group who was
terminated from any member of the NPTest Group on or after the NPTest Transition
Date and on or before the Separation Date. Notwithstanding the foregoing,
"NPTest Terminated Employee" shall not, unless otherwise expressly provided to
the contrary in this Agreement, include: (a) an individual who is a STC Employee
at the Separation Date; (b) an individual who is otherwise a NPTest Terminated
Employee, but who is subsequently employed by any member of the STC Group on or
prior to the Separation Date; or (c) a NPTest Retired Employee.

         NPTEST TRANSITION DATE. "NPTest Transition Date" means the date or
dates that the formal employment of the employees associated with the NPTest
Group is transferred from the STC Group to the NPTest Group.

         NPTEST UNION EMPLOYEES. "NPTest Union Employees" mean NPTest Employees
whose employment is covered by the terms of a collective bargaining agreement.

                                      -5-

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         NPTEST WCP CLAIMS. "NPTest WCP Claims" is defined in Subsection
6.07(a)(i).

         OPTION. "Option," when immediately preceded by "STC," means an option
to purchase STC common stock pursuant to a Stock Plan. When immediately preceded
by "NPTest," "Option" means an option to purchase NPTest common stock pursuant
to a plan providing such benefits to be established by NPTest pursuant to
Section 2.03 and Article VII.

         OPTION PLAN. "Option Plan," when preceded by Schlumberger, means any
and all of the Schlumberger 2001 Stock Option Plans, Schlumberger 1998 Stock
Option Plan or the Schlumberger 1994 Stock Option Plan. When preceded by NPTest,
"Option Plan" means the 2002 Stock Option Plan as described in Section 7.03.

         OUTSOURCE. "Outsource" is defined in Subsection 6.02(b).

         PARTICIPATING COMPANY. "Participating Company" means: (a) STC; (b) any
Person (other than an individual) that STC has approved for participation in,
has accepted participation in, and which is participating in, a Plan sponsored
by STC; or (c) any Person (other than an individual) which, by the terms of such
a Plan, participates in such a Plan sponsored by STC or any employees of which,
by the terms of such a Plan, participate in or are covered by such a Plan.

         PBGC. "PBGC" means the Pension Benefit Guaranty Corporation.

         PERSON. "Person" means an individual, a partnership, a corporation, a
limited liability company, an association, a joint stock company, a trust, a
joint venture, an unincorporated organization and a governmental entity or any
department, agency or political subdivision thereof.

         PLAN. "Plan," depending on the context, may mean any plan, policy,
program, payroll practice, arrangement, contract, trust, insurance policy, or
any agreement or funding vehicle providing compensation or benefits to
employees, former employees or directors of STC or NPTest.

         QDRO. "QDRO" means a domestic relations order which qualifies under
Code Section 414(p) and ERISA Section 206(d) and which creates or recognizes an
alternate payee's right to, or assigns to an alternate payee, all or a portion
of the benefits payable to a participant under the STC Savings Plan or the STC
Pension Plan.

         QMCSO. "QMCSO" means a medical child support order which qualifies
under ERISA Section 609(a) and which creates or recognizes the existence of an
alternate recipient's right to, or assigns to an alternate recipient the right
to, receive benefits for which a participant or beneficiary is eligible under
any of the Health Plans.

         SAVINGS PLAN. "Savings Plan" when immediately preceded by "STC," means
the Schlumberger Technologies, Inc. Savings and Profit Sharing Plan, a defined
contribution plan. When immediately preceded by "NPTest," " Savings Plan" means
the savings and profit sharing plan to be established by NPTest pursuant to
Sections 2.03 and 4.01.

                                      -6-

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         SAVINGS RESTORATION PLAN. "Savings Restoration Plan," when immediately
preceded by STC, means the Schlumberger Restoration Savings Plan which relates
to restoration of defined contribution benefits limited by the qualified plan
rules. When immediately preceded by "NPTest," "Savings Restoration Plan" means
the plan to be established by NPTest pursuant to Section 5.03(b) which
corresponds to the STC Savings Restoration Plan.

         SCHLUMBERGER. "Schlumberger" means Schlumberger Limited, a Netherland,
Antilles corporation.

         SEC. "SEC" means the United States Securities and Exchange Commission.

         SEPARATION. "Separation" shall mean the IPO and subsequent offerings or
sales of NPTest Common Stock resulting in STC owning less than 50% of the
outstanding NPTest Common Stock.

         SEPARATION AGREEMENT. "Separation Agreement" means the Master
Separation and Sale Agreement between STC and NPTest entered into as of
_____________.

         SEPARATION DATE. "Separation Date" means the first date as of which STC
Group owns directly or indirectly less than 50% of the outstanding NPTest Common
Stock.

         SEVERANCE PLANS. "Severance Plans," when immediately preceded by "STC,"
means the severance pay plans established and maintained by STC. When
immediately preceded by "NPTest," "Severance Plans" means the severance pay
plans established and maintained by NPTest.

         STC. "STC" means Schlumberger Technology Corp. a Texas corporation. In
all such instances in which STC is referred to in this Agreement, it shall also
be deemed to include a reference to each member of the STC Group, unless it
specifically provides otherwise; STC shall be solely responsible to NPTest for
ensuring that each member of the STC Group complies with the applicable terms of
this Agreement. Notwithstanding the foregoing, to the extent that this Agreement
provides for STC to assume Liabilities associated with non-U.S. employees or
employee benefit plans or arrangements, such Liabilities shall be assumed by SBV
or its appropriate subsidiary.

         STC EMPLOYEE. "STC Employee" means an individual who, on the Separation
Date, is or was employed with any member of the STC Group and is not a NPTest
Employee.

         STC GROUP. "STC Group" shall mean STC, STI, SBV and each entity (other
than an entity which is a member of the NPTest Group) which is a member of the
same controlled group of corporations with STC as determined under Section
414(b) or (c) of the Code.

         STC INDEMNITIES. "STC Indemnities" shall mean STC and each member of
the STC Group and each of their respective directors, officers and employees,
and each of the heirs, executors, successors and assigns of any of the
foregoing.

                                      -7-

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         STC PENSION PLAN. "STC Pension Plan" means the Schlumberger Technology
Corp. Pension Plan, a defined benefit plan.

         STC TERMINATED EMPLOYEE. "STC Terminated Employee" means any individual
who is a former employee of any member of the STC Group and who, on the
Separation Date, is not a NPTest Employee.

         STC WCP. "STC WCP" means the STC Workers' Compensation Program,
comprised of the various arrangements established by a member of the STC Group
to comply with the workers' compensation requirements of the states in which the
STC Group conducts business.

         STOCK PURCHASE PLAN. "Stock Purchase Plan" means the Schlumberger
Limited Discounted Stock Purchase Plan.

         SUBSIDIARY. "Subsidiary" shall have the meaning set forth in the
Separation Agreement.

         TAX SHARING AGREEMENT. "Tax Sharing Agreement" means the Ancillary
Agreement which is attached as an exhibit to the Separation Agreement.

         TRANSITION SERVICES AGREEMENT. "Transition Services Agreement" means
the Master Transitional Services Agreement, which is attached as an exhibit to
the Separation Agreement.

         UNION PLANS. "Union Plans," means all Plans maintained by STC or NPTest
for the benefit of certain of their bargaining unit employees.

                                  ARTICLE II.

                               GENERAL PRINCIPLES

         2.01 ASSUMPTION OF NPTEST LIABILITIES. Except as specified otherwise in
this Agreement, or as mutually agreed upon by NPTest and STC from time to time,
STC (or SBV, to the extent relating to non-U.S. employees, employee benefit
plans or arrangements) hereby assumes and agrees to pay, perform, fulfill and
discharge, in accordance with their respective terms, subject to Section 9.02
and to the indemnification provisions of Section 2.02, all Liabilities relating
to NPTest Retired Employees, to the extent relating to, arising out of or
resulting from former employment with any member of the STC Group and/or the
NPTest Group (including Liabilities arising under or relating to STC Plans and
NPTest Plans). Except as specified otherwise in this Agreement, or as mutually
agreed upon by NPTest and STC from time to time, NPTest hereby assumes and
agrees to pay, perform, fulfill and discharge, in accordance with their
respective terms, all of the following subject to Section 9.02 and to the
indemnification provisions of Section 2.02: (a) all Liabilities relating to
NPTest Employees, in each case relating to, arising out of or resulting from
employment by any member of the STC Group before the IPO Closing Date,
(including Liabilities arising under or relating to STC Plans and NPTest Plans);
(b) all other Liabilities relating to employees of any member of the NPTest
Group, to the extent relating to, arising out of or resulting from future,
present or

                                       -8-

<PAGE>

former employment with any member of the NPTest Group (including Liabilities
arising under or relating to STC Plans and NPTest Plans); (c) all Liabilities
relating to, arising out of or resulting from any other actual or alleged
employment relationship with any member of the NPTest Group; and (d) all other
Liabilities relating to, arising out of or resulting from obligations,
liabilities and responsibilities expressly assumed or retained by any member of
the NPTest Group or a NPTest Plan, pursuant to this Agreement.

                  2.02 EMPLOYMENT LIABILITIES INDEMNIFICATION

                           (a)  Indemnification by NPTest. Except as otherwise
                  provided in this Agreement, including Subsection 2.02(c),
                  NPTest shall, for itself and as agent for each member of the
                  NPTest Group, indemnify, defend (or, where applicable, pay the
                  defense costs for) and hold harmless the STC Indemnitees from
                  and against any and all Employment Liabilities that any third
                  party seeks to impose upon the STC Indemnitees, or which are
                  imposed upon the STC Indemnitees, if and to the extent such
                  Employment Liabilities relate to, arise out of or result from
                  any of the following items (without duplication):

                                (i)   any acts or omissions or alleged acts or
                           omissions by or on behalf of any member or person
                           employed by a member of the NPTest Group in the
                           conduct of the NPTest Business;

                                (ii)  any claim by an officer of any member of
                           the NPTest Group (who is an officer as of the IPO
                           Closing Date) against any member or employee of any
                           member of the STC Group except with respect to
                           benefit obligations of NPTest Employees assumed by
                           STC pursuant to a specific provision of this
                           Agreement;

                                (iii) any breach by NPTest or any member or
                           person employed by a member of the NPTest Group of
                           this Agreement, the Separation Agreement or any other
                           Ancillary Agreement; and

                                (iv)  the employment of the NPTest Employees by
                           any member of the NPTest Group after the [ ] Date,
                           including Liabilities arising under or relating to
                           STC Plans and NPTest Plans.

         In the event that any member of the NPTest Group makes a payment to the
STC Indemnitees hereunder, and the Employment Liability on account of which such
payment was made is subsequently diminished, either directly or through a
third-party recovery, STC will promptly repay (or will procure a STC Indemnitee
to promptly repay) such member of the NPTest Group the amount by which the
payment made by such member of the NPTest Group exceeds the actual cost of the
associated indemnified Employment Liability.

                           (b)  Indemnification by STC. Except as otherwise
         provided in this Agreement, including Subsection 2.02(c), STC shall,
         for itself and as agent for each member of the STC Group, indemnify,
         defend (or, where applicable, pay

                                      -9-

<PAGE>

                  the defense costs for) and hold harmless the NPTest
                  Indemnitees from and against any and all Employment
                  Liabilities that any third party seeks to impose upon the
                  NPTest Indemnitees, or which are imposed upon the NPTest
                  Indemnitees, if and to the extent such Employment Liabilities
                  relate to, arise out of or result from any of the following
                  items (without duplication):

                                 (i)   any acts or omissions or alleged acts or
                           omissions by or on behalf of any member or person
                           employed by a member of the STC Group in the conduct
                           of the STC Business;

                                 (ii)  any claim by an officer of any member of
                           the STC Group (who is an officer as of the IPO
                           Closing Date) against any member or employee of any
                           member of the NPTest Group;

                                 (iii) any breach by STC or any member or person
                           employed by a member of the STC Group of this
                           Agreement, the Separation Agreement or any other
                           Ancillary Agreement; and

                                 (iv)  the employment of the NPTest Employees by
                           any member of the STC Group before the [      ] Date,
                           including Liabilities arising under or relating to
                           STC Plans and NPTest Plans.

                  In the event that any member of the STC Group makes a payment
to the NPTest Indemnitees hereunder, and the Employment Liability on account of
which such payment was made is subsequently diminished, either directly or
through a third-party recovery, NPTest will promptly repay (or will procure a
NPTest Indemnitee to promptly repay) such member of the STC Group the amount by
which the payment made by such member of the STC Group exceeds the actual cost
of the indemnified Employment Liability.

                           (c)   Exceptions. In accordance with the current
                  practice in effect as of the execution of the Agreement, with
                  respect to claims for benefits or compensation, if an
                  underlying act or omission as contemplated in Subsections
                  2.02(a) or 2.02(b) occurs and such act or omission constitutes
                  the principal basis for such a claim, then Subsection 2.02(a)
                  or (b) shall apply, as applicable, to establish
                  indemnification obligations. If, however, no specific act or
                  omission occurs that is attributable to STC or NPTest and the
                  principal underlying basis for a claim for benefits or
                  compensation involves plan administration or other similar
                  systemic type activities related to maintenance of plans,
                  notwithstanding Subsections 2.02(a) and (b), in accordance
                  with the current practice in effect as of the execution of the
                  Agreement, NPTest and STC shall be responsible for their pro
                  rata allocated share of costs to defend such claim. In
                  addition, if a claim relates specifically to the transfer or
                  other movement of employment between STC and NPTest in
                  connection with the Separation and to the employee benefit
                  changes made in connection therewith, then notwithstanding
                  Subsections 2.02(a) and (b), in accordance with the current
                  practice in effect as of the execution of the

                                      -10-

<PAGE>

                  Agreement, NPTest and STC shall be responsible for their pro
                  rata allocated share of costs to defend such claim.

                  2.03  ESTABLISHMENT OF NPTEST PLANS.

                            (a)  Health and Welfare Plans and Retiree Medical.
                  Except as specified otherwise in this Agreement, effective as
                  of the Health Plans Transition Date, NPTest intends to
                  establish the NPTest Health and Welfare Plans to the extent
                  financially and administratively practicable. The foregoing
                  NPTest Health and Welfare Plans as in effect as of the Health
                  Plan Transition Date shall be substantially comparable to the
                  STC Health and Welfare Plans as in effect on the Health Plan
                  Transition Date; provided, however, that NPTest does not
                  intend to establish any retiree life or retiree medical
                  program.

                            (b)  Savings Plan and Fringe Benefits. Except as
                  specified otherwise in this Agreement, effective as of the
                  earlier of the Separation Date, January 1, 2003, or such other
                  date(s) as STC and NPTest may mutually agree, to the extent
                  financially and administratively practicable, NPTest intends
                  to establish the NPTest Savings Plan as more fully described
                  in Article IV and the NPTest Fringe Benefits as more fully
                  described in Article VIII.

                            (c)  Equity and Other Compensation. Except as
                  specified otherwise in this Agreement, effective as of the
                  Separation Date or such other date(s) as STC and NPTest may
                  mutually agree, to the extent financially and administratively
                  practicable, NPTest intends to establish such Plans as NPTest
                  determines to be appropriate, including, without limitation,
                  the NPTest Savings Restoration Plan. The foregoing NPTest
                  Plans shall be substantially comparable to the STC Plans as in
                  effect on the Separation Date.

                            (d)  NPTest Under No Obligation to Maintain Plans.
                  Except as specified otherwise in this Agreement, nothing in
                  this Agreement shall preclude NPTest, at any time from
                  amending, merging, modifying, terminating, eliminating,
                  reducing, or otherwise altering in any respect any NPTest
                  Plan, any benefit under any NPTest Plan or any trust,
                  insurance policy or funding vehicle related to any NPTest Plan
                  (to the extent permitted by law).

                  2.04  NPTEST'S PARTICIPATION IN STC PLANS.

                            (a)  Participation in STC Plans.

                                 (i)   Except as specified otherwise in this
                            Agreement, or as STC and NPTest may mutually agree,
                            NPTest shall adopt as a Participating Company the
                            STC Plans in effect as of NPTest Transition Date, to
                            the extent that NPTest has not yet established
                            substantially comparable Plans. Effective as of any
                            date on or after NPTest Transition Date and before
                            the Separation Date (or such other date as STC and
                            NPTest may mutually agree upon), any member of the
                            NPTest Group not described in the preceding

                                      -11-

<PAGE>

                            sentence may, at its request and with the consent of
                            STC and NPTest, become a Participating Company in
                            any or all of the STC Plans, to the extent that
                            NPTest has not yet established a substantially
                            comparable Plan.

                                 (ii)  On and after the Separation Date, or such
                            other date as the STC and NPTest may mutually agree,
                            NPTest shall no longer participate as a
                            participating company in any STC Plans.

                            (b)  STC's General Obligations as Plan Sponsor.

                                 (i)   To the extent that NPTest is a
                            Participating Company in any STC Plan(s), STC shall
                            continue to administer, or cause to be administered,
                            in accordance with their terms and applicable law,
                            such STC Plan(s), and shall have the sole and
                            absolute discretion and authority to interpret the
                            STC Plan(s), as set forth therein. STC shall not
                            discriminate against NPTest Employees in favor of
                            STC Employees with respect to the administration
                            and/or distribution of benefits under the STC Plans.

                                 (ii)  With regard to NPTest Retired Employees
                            participating in STC Plans after the Separation
                            Date, STC shall continue to administer, or cause to
                            be administered, in accordance with their terms and
                            applicable law, such STC Plans, and shall have sole
                            and absolute discretion and authority to interpret
                            such Plans or amend or terminate such Plans, as set
                            forth therein.

                            (c)  NPTest's General Obligations as Participating
                  Company. NPTest shall perform with respect to its
                  participation in the STC Plans, the duties of a Participating
                  Company as set forth in each such Plan or any procedures
                  adopted pursuant thereto, including (without limitation): (i)
                  assisting in the administration of claims, to the extent
                  requested by the claims administrator of the applicable STC
                  Plan; (ii) cooperating fully with STC Plan auditors, benefit
                  personnel and benefit vendors; (iii) preserving the
                  confidentiality of all financial arrangements STC has or may
                  have with any vendors, claims administrators, trustees or any
                  other entity or individual with whom STC has entered into an
                  agreement relating to the STC Plans; and (iv) preserving the
                  confidentiality of participant information (including, without
                  limitation, personal health information) to the extent not
                  specified otherwise in this Agreement.

                            (d)  Termination of Participating Company Status.
                  Except as specified otherwise in this Agreement or otherwise
                  may be mutually agreed upon by STC and NPTest, effective as of
                  the Separation Date or such other date as NPTest establishes a
                  substantially comparable Plan (as specified in Section 2.03 or
                  otherwise in this Agreement), NPTest shall automatically cease
                  to be a Participating Company in the corresponding STC Plan.

                                      -12-

<PAGE>

                            (e)  Costs. NPTest shall pay its allocable portion
                  of contributions and administration costs attributable to
                  NPTest Employees while participating in STC Plans as provided
                  in Article IX.

                  2.05  TERMS OF PARTICIPATION BY NPTEST EMPLOYEES IN NPTEST
PLANS.

                            (a)  Non-Duplication of Benefits.  As of the
                  Separation Date or such other date that applies to the
                  particular NPTest Plan, the separate NPTest Plans shall be,
                  with respect to employees of the NPTest Group, in all respects
                  the successors in interest to, and shall not provide benefits
                  that duplicate benefits provided by, the corresponding STC
                  Plans. STC and NPTest shall mutually agree, if necessary, on
                  methods and procedures, including amending the respective Plan
                  documents, to prevent employees of the NPTest Group from
                  receiving duplicate benefits from the STC Plans and the NPTest
                  Plans.

                            (b)  Service Credit.  Except as specified otherwise
                  in this Agreement or as required by applicable law, with
                  respect to NPTest Employees, each NPTest Plan shall provide
                  that all service, all compensation and all other
                  benefit-affecting determinations that, as of the Separation
                  Date, were recognized under the corresponding STC Plan shall,
                  as of the Separation Date, receive full recognition and credit
                  and be taken into account under such NPTest Plan to the same
                  extent as if such items occurred under such NPTest Plan,
                  except to the extent that duplication of benefits would
                  result. The service crediting provisions shall be subject to
                  any respectively applicable "service bridging," "break in
                  service," "employment date," or "eligibility date" rules under
                  the NPTest Plans and the STC Plans.

                  2.06  NON-U.S. PLANS.  NPTest and STC each intend that
matters, issues, or Liabilities relating to, arising out of, or resulting from
non-U.S. Plans, and non-U.S.-related employment matters be handled in a manner
that is consistent with comparable U.S. matters, issues, or Liabilities as
reflected in this Agreement (to the extent permitted by applicable law or as
otherwise specified in Schedule 2.06 hereto).

                                  ARTICLE III.

                              DEFINED BENEFIT PLAN

                  3.01  NPTEST EMPLOYEES' PARTICIPATION IN STC PENSION PLAN.
Effective as of the IPO Closing Date, STC shall amend the STC Pension Plan to
provide that employees who become employed by any member of the NPTest Group on
or after the IPO Closing Date shall not be eligible to participate in the STC
Pension Plan. Effective as of the IPO Closing Date, STC shall amend the STC
Pension Plan to provide that eligible employees of any member of the NPTest
Group shall be fully vested in their accrued benefit under the STC Pension Plan
and to provide that such employees shall no longer participate in the STC
Pension Plan on and after such date. Effective as of the IPO Closing Date, STC
shall assume all Liabilities to or relating to the employees of any member of
the NPTest Group and the NPTest

                                       -13-

<PAGE>

Retired Employees under the STC Pension Plan. An IPO Retiree may elect to retire
from STC and begin receiving pension benefits from the STC Pension Plan
effective as of the IPO Closing Date, so long as STC does not own, directly or
indirectly, more than 80% of the common stock of NPTest following the IPO
Closing Date.

           3.02  NPTEST EMPLOYEES PARTICIPATION IN IS PENSION PLAN. Except as
otherwise required by applicable law, (a) effective as of the IPO Closing Date,
STC shall amend the IS Pension Plan to provide that employees who become
employed by any member of the NPTest Group on or after the IPO Closing Date
shall not be eligible to participate in the IS Pension Plan, (b) effective as of
the Separation Date, eligible employees of any member of the NPTest Group shall
no longer participate in the IS Pension Plan on and after such date and (c)
effective as of the Separation Date, STC shall assume all Liabilities to or
relating to the employees of any member of the NPTest Group and the NPTest
Retired Employees under the IS Pension Plan.

                                  ARTICLE IV.

                           DEFINED CONTRIBUTION PLANS

           4.01  NPTEST SAVINGS PLAN. Effective as of the earlier of the
Separation Date or December 31, 2002, the account balances of the employees of
the members of the NPTest Group who participate in the STC Savings Plan shall be
fully vested. Effective as of the NPTest Transition Date, NPTest, as a
Participating Company in the STC Savings Plan, shall be responsible for
providing an employer contribution with respect to NPTest Employees in
accordance with the terms of the STC Savings Plan. Effective as of the earlier
of the Separation Date or January 1, 2003, NPTest shall establish, or cause to
be established, a trust, which is intended to be qualified under Code Section
401(a), exempt from taxation under Code Section 501(a)(1), and forming the
separate NPTest Savings Plan. As soon as reasonably practicable following the
Separation Date, or such earlier date as mutually agreed to by the parties, STC
shall cause to be determined for the STC Savings Plan the amount of assets to be
transferred from the STC Savings Plan to the NPTest Savings Plan. Such amount
shall be equal to the greater of (a) the amount required under Code Section
414(l), or (b) the amount within the sub-account(s) within the trust associated
with the STC Savings Plan that has been separately maintained and accounted for
on behalf of employees of the members of the NPTest Group less the amount
attributable to NPTest Retired Employees. No participant shall be entitled to a
distribution from the Savings Plans solely as a result of the Separation.

           4.02  IS PROFIT-SHARING PLAN [Reserved.]

           4.03  NPTEST RETIRED EMPLOYEES. Notwithstanding the above, account
balances of NPTest Retired Employees, if any, shall remain in the STC Savings
Plan after the Separation Date; provided, however, that if an IPO Retiree
accepts or continues employment with the NPTest Group, then he shall continue to
participate in the NPTest Savings Plan in the same manner as other NPTest
Employees.

                                       -14-

<PAGE>

                                   ARTICLE V.

                            EXECUTIVE AND OTHER PLANS

                  5.01 BENEFIT AND SAVINGS RESTORATION PLANS.

                            (a)  Benefit Restoration Plan. Effective as of the
                  IPO Closing Date, employees of the members of the NPTest Group
                  shall no longer accrue benefits under the STC Benefit
                  Restoration Plan. NPTEST Employees who have not reached age 55
                  as of the Separation Date shall forfeit any benefit under the
                  STC Benefit Restoration Plan. As of the IPO Closing Date, STC
                  shall assume all Liabilities to or relating to the NPTest
                  Retired Employees under the STC Benefit Restoration Plan.

                            (b)  Savings Restoration Plan.

                                 (i)  Establishment of NPTest Savings
                            Restoration Plan. Effective as of the earlier of the
                            Separation Date, January 1, 2003, or such other date
                            as STC and NPTest may mutually agree, NPTest may
                            establish in its sole discretion the NPTest Savings
                            Restoration Plan which shall be substantially
                            comparable to the STC Savings Restoration Plan. As
                            of the NPTest Transition Date, NPTest shall assume
                            all Liabilities to or relating to the NPTest
                            Employees under the STC Savings Restoration Plan. As
                            of the NPTest Transition Date, STC shall assume all
                            Liabilities to or relating to the NPTest Retired
                            Employees under the STC Savings Restoration Plan.

                                 (ii) Participation in the NPTest Savings
                            Restoration Plan. Effective as of the date NPTest
                            establishes the NPTest Savings Restoration Plan, if
                            at all, eligible NPTest Employees determined in
                            accordance with the terms of the applicable Plan
                            shall cease to be eligible to participate in the STC
                            Savings Restoration Plan. In any event, NPTest
                            Employees shall not be eligible to participate in
                            the STC Savings Restoration Plan after the earlier
                            of the Separation Date or January 1, 2003.

                  5.02 SEVERANCE PLANS. NPTest shall establish such severance
plans as it deems necessary in its discretion. Except as required by applicable
law, the STC Severance Plans shall provide that no NPTest Employee shall become
eligible for severance benefits on account of the IPO or Separation.

                                      -15-

<PAGE>

                                  ARTICLE VI.

                            HEALTH AND WELFARE PLANS

     6.01  ASSUMPTION OF HEALTH AND WELFARE PLAN LIABILITIES.

                 (a) General - Health and Welfare Plans. STC shall retain all
     Liabilities incurred through the Health Plans Transition Date under each
     STC Health and Welfare Plan, whether or not claims are filed before the
     Health Plan Transition Date, by or on behalf of NPTest Employees or their
     spouses or dependents. NPTest shall indemnify STC against any Liabilities
     arising after the [ ] Date and prior to the Health Plans Transition Date by
     paying the current cost of coverage associated with such NPTest Employees
     or their spouses or dependents, to the extent not already paid. Claims for
     benefits incurred by NPTest Employees prior to the Health Plans Transition
     Date must be submitted to the appropriate STC Health and Welfare Plan
     within 90 days following the Health Plans Transition Date. Immediately
     following the Health Plan Transition Date, NPTest Employees shall no longer
     participate in the STC Health and Welfare Plans, and NPTest shall be
     responsible for all Liabilities under the NPTest Health and Welfare Plans.
     NPTest affirmatively covenants to ensure that any NPTest Employee on
     short-term disability or leave of absence as of the Health Plans Transition
     Date shall be immediately covered under the NPTest short-term disability
     coverage and all other NPTest Health and Welfare Plans, and shall receive
     the same disability benefits as such employee would have received if he had
     remained an STC Employee. Any NPTest Employee who becomes disabled or goes
     on leave of absence on or after the Health Plans Transition Date shall
     receive benefits in accordance with the applicable NPTest Plan, as
     determined by NPTest in its discretion.

                 (b) Retiree Life and Medical. Effective as of the IPO Closing
     Date, employees of the members of the NPTest Group shall no longer be
     eligible to participate in STC's retiree life insurance and retiree medical
     plans, and STC shall assume all Liabilities under STC's retiree medical
     plan for those employees of the NPTest Group who as of the IPO Closing Date
     have attained the requisite age and service requirements under such Plan;
     provided, however, that such employees shall not accrue any additional
     benefits under any such Plans. IPO Retirees shall be treated as retirees of
     Schlumberger for purposes of retiree life and health insurance and shall be
     eligible to receive retiree medical and life insurance in accordance with
     STC's retiree plans (as such may be amended from time to time), even if
     such IPO Retiree accepts or continues employment with the NPTest Group
     following the IPO. Except as otherwise expressly provided above, after the
     IPO Closing Date, no other employee of any member of the NPTest Group shall
     be entitled to benefits under the STC retiree medical plan.

                                      -16-

<PAGE>

                  6.02 CLAIMS FOR HEALTH AND WELFARE PLANS.

                          (a) Administration of STC Claims. STC shall administer
                  claims incurred under the STC Health and Welfare Plans by
                  NPTest Employees before the Health Plan Transition Date, but
                  only to the extent that NPTest has not, before the Health Plan
                  Transition Date, established and assumed administrative
                  responsibility for a comparable Plan. Any determination made
                  or settlements entered into by STC with respect to such claims
                  shall be final and binding.

                          (b) Outsourcing of Claims by STC. STC shall have the
                  right to engage a third party administrator, vendor, or
                  insurance company to administer ("Outsource") claims incurred
                  under the STC Health and Welfare Plans, including claims
                  incurred by employees of the members of the NPTest Group
                  before the Health Plans Transition Date; provided, however,
                  that such decision to outsource shall not result in any
                  additional cost to NPTest above that provided in the
                  Transition Services Agreement. STC may determine the manner
                  and extent of such Outsourcing, including the selection of one
                  or more third party administrators, vendors, or insurance
                  companies and the ability to transfer the liability for such
                  claims to one or more independent insurance companies.

                  6.03 POST-SEPARATION TRANSITIONAL ARRANGEMENTS.

                          (a) Continuance of Elections, Co-Payments and Maximum
                  Benefits.

                              (i)  As of the Health Plan Transition Date or such
                          other date as STC and NPTest may mutually agree,
                          NPTest shall cause the NPTest Health and Welfare Plans
                          to maintain substantially comparable coverage and
                          contribution elections, if any, made by NPTest
                          Employees under the STC Health and Welfare Plans and
                          apply such elections under the NPTest Health and
                          Welfare Plans for the remainder of the period or
                          periods, if any, for which such elections are by their
                          terms applicable. The transfer or other movement of
                          employment between STC and NPTest in connection with
                          the Separation shall constitute neither a "status
                          change" under the STC Health and Welfare Plans or the
                          NPTest Health and Welfare Plans nor a "qualifying
                          event," as defined under COBRA.

                              (ii) On and after the Health Plan Transition Date,
                          NPTest shall cause the NPTest Health Plans to
                          recognize and give credit for all benefits paid to
                          NPTest Employees under the STC Health Plans for (A)
                          all amounts applied to deductibles, out of pocket
                          maximums, co-payments and other applicable benefit
                          coverage limits with respect to which such expenses
                          have been incurred by NPTest Employees under the STC
                          Health Plans for the remainder of the calendar year in
                          which the Separation Date occurs and (B) all benefits
                          paid to NPTest Employees under the STC

                                      -17-

<PAGE>

                          Health Plans for purposes of determining when such
                          persons have reached their lifetime maximum benefits
                          under the NPTest Health Plans. Notwithstanding the
                          above, NPTest's obligations under this Subsection
                          6.03(a)(ii) shall be limited by the market
                          availability of health insurance products or other
                          arrangements satisfying the criteria described above.
                          NPTest shall use its commercially reasonable best
                          efforts to locate and engage the services of a vendor
                          whose policies or other arrangements meet the
                          requirements above.

                          (b) HCFA Administration. As of the Health Plan
                  Transition Date, NPTest shall assume all Liabilities relating
                  to, arising out of or resulting from claims verified by STC or
                  NPTest under the HCFA data match reports that relate to NPTest
                  Employees.

                  6.04 COBRA AND HIPAA. STC shall be responsible, through the
Health Plan Transition Date, for compliance with the health care continuation
coverage requirements of COBRA, the portability requirements under the Health
Insurance Portability and Accountability Act of 1996 ("HIPAA") and the STC
Health and Welfare Plans with respect to employees of the members of the NPTest
Group and qualified beneficiaries (as such term is defined under COBRA). STC
shall provide all necessary notices, or cause the notices to be provided, as
soon as administratively practical, but in no event later than required under
COBRA. NPTest shall be responsible for providing STC or its agents with all
necessary employee change notices and related information for covered
dependents, spouses, qualified beneficiaries (as such term is defined under
COBRA), and alternate recipients pursuant to QMCSO, in accordance with
applicable STC COBRA policies and procedures. As soon as administratively
practicable after the Separation Date, STC shall provide NPTest, through hard
copy, electronic format or such other mechanism as is appropriate under the
circumstances, with a list of all qualified beneficiaries (as such term is
defined under COBRA) that relate to the members of the NPTest Group and the
relevant information pertaining to their coverage elections. Effective as of the
Health Plan Transition Date, NPTest shall be solely responsible for compliance
with the health care continuation coverage requirements of COBRA and the
portability requirements under HIPAA for the NPTest Health and Welfare Plans for
NPTest Employees and their qualified beneficiaries (as such term is defined
under COBRA).

                  6.05 LEAVE OF ABSENCE PROGRAMS AND FMLA. Effective as of the
Separation Date, NPTest shall establish the NPTest Leave of Absence Programs and
FMLA programs and shall be responsible for administering leaves of absence and
complying with FMLA with respect to NPTest Employees.

                  6.06 STC WORKERS' COMPENSATION PROGRAM.

                          (a) Through the Health Plan Transition Date or such
                  other date as STC and NPTest may mutually agree, STC shall
                  continue to be responsible for the administration of all
                  claims that (A) are, or have been, incurred under the STC WCP
                  before the Health Plan Transition Date by employees of the
                  NPTest Group ("NPTest WCP Claims"), and (B) have been
                  historically administered by STC or

                                      -18-

<PAGE>

                  its third party administrator. However, STC will advise NPTest
                  of and secure approval for any material changes to current
                  policy or practice with respect to the administration of
                  NPTest WCP Claims.

                          (b) Effective as of the Health Plan Transition Date or
                  such other date as STC and NPTest may mutually agree, NPTest
                  shall be responsible for the administration of all NPTest WCP
                  Claims.

                          (c) Each party shall fully cooperate with the other
                  with respect to the administration and reporting of NPTest WCP
                  Claims, the payment of NPTest WCP Claims determined to be
                  payable, and the transfer of the administration of any NPTest
                  WCP Claims to the other party.

                                  ARTICLE VII.

                          EQUITY AND OTHER COMPENSATION

                  7.01 SCHLUMBERGER OPTIONS.

                          (a) Treatment of Outstanding Options.  All terms and
                  conditions applicable to the Schlumberger Options (including,
                  but not limited to, the vesting schedule) shall remain
                  applicable to the Schlumberger Options following the IPO
                  Closing Date. Outstanding Schlumberger Options that are vested
                  but unexercised and unexpired as of the Separation Date may be
                  exercised by the option holder for a period of 90 days
                  following the Separation Date; provided that vested options
                  held by employees who have reached age 55 with 5 years of
                  service as of the Separation Date may be exercised for a
                  period of 12 months following the Separation Date in
                  accordance with the existing terms of the option agreements.
                  All unvested options held by NPTest Employees shall be
                  forfeited and cancelled.

                          (b) Certain Non-U.S. Optionees. Except as may
                  otherwise be agreed upon by STC and NPTest, this Section 7.01
                  shall govern the treatment of Schlumberger Options held by
                  Non-U.S. NPTest Employees. In the event it is determined that
                  the local law applicable to any Non-U.S. Optionee requires a
                  different treatment, STC and NPTest shall take such steps as
                  is required to comply with local law.

                  7.02 STOCK PURCHASE PLAN. Effective as of the Separation Date,
employees of the members of the NPTest group shall no longer be eligible to
participate in the Stock Purchase Plan and shall be treated as a terminated
employee under the terms of the Stock Purchase Plan.

                  7.03 NPTEST OPTION PLAN. Effective on or before the IPO
Closing Date, or such other date as STC and NPTest may mutually agree, NPTest
shall establish the Option Plan for the benefit of employees of the members of
the NPTest Group. The Option Plan is intended to allow grants of
performance-based compensation consistent with Code Section 162(m).

                                      -19-

<PAGE>

                  7.04 ANNUAL BONUS PLAN.

                          (a) STC Payment of Bonuses upon the IPO closing Date.
                  Assuming the IPO Closing Date occurs in 2002, on or as soon as
                  practicable after the IPO Closing Date, or such other date as
                  the parties may agree, STC shall make a one-time bonus payment
                  to each NPTest Employee who participates in the STC Annual
                  Bonus Plan immediately prior to the IPO Closing Date. Such
                  bonus shall be equal to the full annual bonus for calendar
                  year 2002 that such NPTest Employee would have been entitled
                  to receive had such NPTest Employee remained as an employee of
                  STC through December 31, 2002 and was entitled to be paid at
                  maximum bonus. On or before the IPO Closing Date, or such
                  other date as STC and NPTest may mutually agree, STC shall
                  make a one-time bonus payment to those NPTest Employees who do
                  not participate in the STC Annual Bonus Plan in an amount
                  equal to such NPTest Employee's salary for one month at the
                  rate payable as of the IPO Closing Date. If the IPO Closing
                  Date does not occur in 2002, then the provisions above shall
                  not apply and the parties shall mutually agree as to the
                  amount and timing of annual bonus payments.

                          (b) NPTest Annual Bonus Plan. Effective on or before
                  the IPO Separation Date, or such other date as STC and NPTest
                  may mutually agree, NPTest shall establish the NPTest Annual
                  Bonus Plan for the benefit of employees of the members of the
                  NPTest Group and (assuming the IPO Closing Date occurs during
                  2002) such plan shall be maintained at least through December
                  31, 2002, and thereafter in the sole discretion of NPTest. The
                  NPTest Annual Bonus Plan is intended to comply with Code
                  Section 162(m).

                                 ARTICLE VIII.

                            FRINGE AND OTHER BENEFITS

                  8.01 FRINGE BENEFITS. Employees of the NPTest Group shall
continue to participate in the STC Fringe Benefits through the Separation Date
or such other date as STC and NPTest may mutually agree. Effective as of the
Separation Date, NPTest shall establish the NPTest Fringe Benefits which NPTest
deems appropriate in its sole discretion. Effective as of the Separation Date,
eligible NPTest Employees determined in accordance with the terms of the
applicable plans or programs shall only be eligible to participate in the NPTest
Fringe Benefits.

                  8.02 VACATION. NPTest Employees in the United States shall be
entitled to transfer up to ten (10) vacation days accrued while such NPTest
Employee was employed by a member of the STC Group. With respect to any vacation
days in excess of ten (10), each NPTest Employee, to the extent applicable shall
be entitled to receive a cash amount calculated in accordance with the terms and
conditions set forth on Schedule 8.02 hereto. All other NPTest Employees shall
have their vacation treated in accordance with local policy and applicable law.

                  8.03 OTHER BENEFITS. To the extent that STC maintains,
sponsors or provides other fringe benefits for its employees not specifically
identified in this Article VIII, then STC shall, to the extent permitted by law,
continue to make such benefits available to

                                      -20-

<PAGE>

employees of the NPTest Group on substantially similar terms and conditions as
are offered to the employees of any member of the STC Group through the
Separation Date or such other date upon which NPTest and STC mutually agree.
NPTest and STC agree to make commercially reasonable best efforts to mutually
agree on whether, when, and on what terms any member of the NPTest Group shall
maintain, sponsor or offer fringe benefits.

                                   ARTICLE IX.

                           CERTAIN TRANSITION MATTERS

                  9.01 TRANSITION SERVICES AGREEMENT. On or about the date
hereof, STC and NPTest shall enter into the Transition Services Agreement
covering the provisions of various services to be provided by STC to NPTest. The
provisions of this Agreement shall be subject to the provisions of such
Transition Services Agreement.

                  9.02 PAYMENT OF LIABILITIES, PLAN EXPENSES AND RELATED
MATTERS.

                          (a) Shared Costs. NPTest shall pay its allocable
                  share, as determined by STC in good faith, of any
                  contributions made to any trust maintained in connection with
                  a STC Plan while NPTest is a Participating Company in any such
                  STC Plan.

                          (b) Contributions to Trusts. With respect to STC Plans
                  to which employees of NPTest make contributions, STC shall use
                  reasonable procedures to determine NPTest Liabilities
                  associated with such Plans, taking into account such
                  contributions, settlements, refunds and similar payments.

                          (c) Administrative Expenses Not Chargeable to a Trust.
                  To the extent not charged pursuant to this Article IX, and to
                  the extent not otherwise agreed to by STC and NPTest, and to
                  the extent not chargeable to a trust established in connection
                  with a STC Plan, NPTest shall be responsible, through either
                  direct payment or reimbursement to STC, for its allocable
                  share of expenses incurred by STC in the administration of (i)
                  the STC Plans while NPTest participates in such Plans, and
                  (ii) the NPTest Plans, to the extent STC administers such
                  Plans. For this purpose, NPTest's allocable share of such
                  expenses shall be calculated at STC's cost through December
                  31, 2002, and at a competitive market rate established by STC
                  in good faith thereafter.

                  9.03 SHARING OF PARTICIPANT INFORMATION. STC and NPTest shall
share, or cause to be shared, all participant information that is necessary or
appropriate for the efficient and accurate administration of each of the STC
Plans and the NPTest Plans during the respective periods applicable to such
Plans as NPTest and STC may mutually agree. STC and NPTest and their respective
authorized agents shall, subject to applicable laws of confidentiality and data
protection, be given reasonable and timely access to, and may make copies of,
all information relating to the subjects of this Agreement in the custody of the
other party or its agents, to the extent necessary or appropriate for such
administration.

                                      -21-

<PAGE>

                  9.04 REPORTING AND DISCLOSURE COMMUNICATIONS TO PARTICIPANTS.
While NPTest is a Participating Company in the STC Plans, STC shall take, or
cause to be taken, all actions necessary or appropriate to facilitate the
distribution of all STC Plan-related communications and materials to employees,
participants and beneficiaries, including (without limitation) summary plan
descriptions and related summaries of material modification(s), summary annual
reports, investment information, prospectuses, notices and enrollment material
for the STC Plans. NPTest shall provide all information needed by STC to
facilitate such STC Plan-related communications. NPTest shall take, or cause to
be taken, all actions necessary or appropriate to facilitate the distribution of
all NPTest Plan-related communications and materials to employees, participants
and beneficiaries. NPTest shall assist, and NPTest shall cause each other
applicable member of the NPTest Group to assist, STC in complying with all
reporting and disclosure requirements of ERISA, including the preparation of
Form Series 5500 annual reports, for the STC Plans, where applicable.

                  9.05 AUDITS REGARDING VENDOR CONTRACTS. From the period
beginning as of the Separation Date or such other date as STC and NPTest
mutually agree upon and ending on such date as STC and NPTest may mutually
agree, STC and NPTest and their duly authorized representatives shall have the
right to conduct joint audits with respect to any vendor contracts that relate
to both the STC Health and Welfare Plans and the NPTest Health and Welfare
Plans. The scope of such audits shall remain consistent with the current
practices and all documents and other information currently made available for
review shall continue to be made available. STC and NPTest shall agree on the
performance standards, audit methodology, auditing policy and quality measures,
reporting requirements, and the manner in which costs incurred in connection
with such audits will be shared.

                  9.06 BENEFICIARY DESIGNATIONS. Subject to Section 9.09, all
beneficiary designations made by employees of the NPTest Group for the STC Plans
(other than the STC Pension Plan, except to the extent NPTest may be required to
establish or assume the sponsorship of a retirement plan(s) pursuant to Section
2.07) shall be transferred to and be in full force and effect under the
corresponding NPTest Plans until such time, if ever, any such beneficiary
designations are replaced or revoked by the employees of the NPTest Group who
made the beneficiary designations. All beneficiary designations made by NPTest
Retired Employees for the NPTest Plans shall be transferred to and be in full
force and effect under the corresponding STC Plans until such time, if ever, any
such beneficiary designations are replaced or revoked by the NPTest Retired
Employees who made the beneficiary designations.

                  9.07 REQUESTS FOR IRS AND DOL OPINIONS. STC and NPTest shall
make such applications to regulatory agencies, including the IRS and DOL, as may
be necessary or appropriate. NPTest and STC shall cooperate fully with one
another on any issue relating to the transactions contemplated by this Agreement
for which STC and/or NPTest elects to seek a determination letter or private
letter ruling from the IRS or an advisory opinion from the DOL.

                  9.08 FIDUCIARY MATTERS. STC and NPTest each acknowledge that
actions contemplated to be taken pursuant to this Agreement may be subject to
fiduciary duties or standards of conduct under ERISA or other applicable law,
and no party shall be deemed to be in violation of this Agreement if such party
fails to comply with any provisions hereof based

                                      -22-

<PAGE>

upon such party's good faith determination that to do so would violate such a
fiduciary duty or standard.

                  9.09 CONSENT OF THIRD PARTIES. If any provision of this
Agreement is dependent on the consent of any third party (such as a vendor) and
such consent is withheld, STC and NPTest shall use their commercially reasonable
best efforts to implement the applicable provisions of this Agreement. If any
provision of this Agreement cannot be implemented due to the failure of such
third party to consent, STC and NPTest shall negotiate in good faith to
implement the provision in a mutually satisfactory manner.

                  9.10 TAX COOPERATION. In connection with the interpretation
and administration of this Agreement, STC and NPTest shall take into account the
agreements and policies established pursuant to the Separation Agreement and the
Tax Sharing Agreement.

                  9.11 PLAN RETURNS. Plan Returns shall be filed or caused to be
filed by STC or NPTest as the case may be in accordance with the principles
established in the Tax Sharing Agreement. For purposes of this Section 9.11,
"Plan Returns" means any return, report, certificate, form or similar statement
or document required to be filed with a government agency with respect to an
employee benefit plan governed by the ERISA, or a program governed by Section
6039D of the Code.

                                   ARTICLE X.

                           EMPLOYMENT-RELATED MATTERS

                  10.01 TERMS OF NPTEST EMPLOYMENT. Employees of the NPTest
Group shall be required to execute a new agreement regarding confidential
information and proprietary developments in a form approved by NPTest. In
addition, nothing in the Separation Agreement, this Agreement, or any Ancillary
Agreement should be construed to change the at-will status of any of the
employees of any member of the STC Group or the NPTest Group.

                  10.02 HR DATA SUPPORT SYSTEMS. STC shall provide human
resources data support for employees of the members of the NPTest Group in
accordance with the terms of the Transition Services Agreement.

                  10.03 EMPLOYMENT OF EMPLOYEES WITH U.S. WORK VISAS. NPTest
will comply with all immigration laws and regulations of the United States of
America as such laws and regulations applied to employees of any member of the
STC Group in the United States of America pursuant to a work or training visa
regardless of visa category. NPTest expressly assumes all obligations,
liabilities and undertakings arising from or under attestations made in each
certified and effective Labor Condition Application filed by STC. NPTest shall
file amended petitions with the Immigration and Naturalization Service, as may
be necessary or appropriate.

                  10.04 CONFIDENTIALITY AND PROPRIETARY INFORMATION.

                          (a) Except as provided in Section 10.04(b) hereof, no
                  provision of this Agreement shall be deemed to release any
                  individual for any violation of

                                      -23-

<PAGE>

                  the STC non-competition guideline or any agreement or policy
                  pertaining to confidential or proprietary information of any
                  member of the STC Group or NPTest Group, or otherwise relieve
                  any individual of his or her obligations under such
                  non-competition guideline, agreement, or policy.

                              (b) Employee Agreements.  As used in this Section
                  10.04(b), "Employee Agreement" means any employment,
                  severance, supplemental pension agreement or confidentiality
                  agreement, and any corresponding agreements executed by STC or
                  NPTest employees in connection with their employment. Nothing
                  in this Agreement, the Separation Agreement or any other
                  Ancillary Agreement shall be deemed to supercede any provision
                  regarding the conduct of employees mandated by any applicable
                  regulatory authority.

                                    (i)  Survival of STC Employee Agreement
                              Obligations and STC's Common Law Rights. The STC
                              Employee Agreements of all NPTest Employees and
                              all former STC employees transferred to NPTest on
                              or before the Separation Date shall remain in full
                              force and effect according to their terms, and all
                              Liabilities thereunder shall be assumed by NPTest.
                              Notwithstanding the foregoing to the contrary,
                              none of the following acts committed by former STC
                              or NPTest employees within the scope of their
                              NPTest employment shall constitute a breach of
                              such STC Employee Agreements: (i) the use or
                              disclosure of Confidential Information (as that
                              term is defined in the STC Employee Agreement) for
                              or on behalf of NPTest, if such disclosure is
                              consistent with the assignment or license of
                              rights, businesses and assets granted to NPTest
                              and restrictions imposed on NPTest under any other
                              agreement between the parties, and the rendering
                              of any services, directly or indirectly, to NPTest
                              to the extent such services are consistent with
                              the assignment or license of rights, businesses
                              and assets granted to NPTest and the restrictions
                              imposed on NPTest under any other agreement
                              between the parties. Further, STC retains any
                              rights it has under statute or common law with
                              respect to actions by its former employees to the
                              extent such actions are inconsistent with the
                              assignment or license of rights, businesses and
                              assets granted to NPTest and restrictions imposed
                              on NPTest under any other Ancillary Agreement or
                              any other agreement between the parties.

                                    (ii) Survival of NPTest's Employee
                              Agreement Obligations and NPTest's Common Law
                              Rights. The NPTest Employee Agreements of all STC
                              Employees and all former NPTest employees
                              transferred to STC on or before the Separation
                              Date shall remain in full force and effect
                              according to their terms; provided, however, that
                              none of the following acts committed by former
                              NPTest or STC employees within the scope of their
                              STC employment shall constitute a breach of such
                              NPTest Employee

                                      -24-

<PAGE>

                          Agreements: (i) the use or disclosure of Confidential
                          Information (as that term is defined in the STC
                          Employee Agreement) for or on behalf of STC, if such
                          disclosure is consistent with the rights, businesses
                          and assets retained by STC and restrictions imposed on
                          STC under any other agreement between the parties, and
                          (ii) the rendering of any services, directly or
                          indirectly, to STC to the extent such services are
                          consistent with the rights, businesses and assets
                          retained by STC and the restrictions imposed on STC
                          under any other agreement between the parties.
                          Further, NPTest retains any rights it has under
                          statute or common law with respect to actions by its
                          former employees to the extent such actions are
                          inconsistent with the rights, businesses and assets
                          retained by STC and restrictions imposed on STC under
                          any other agreement between the parties.

                                    (iii)  Assignment, Cooperation for
                          Compliance and Enforcement.

                                           (A) (1) STC retains all rights under
                                           the STC Employee Agreements of all
                                           former STC employees necessary to
                                           permit STC to protect the rights and
                                           interests of STC, but hereby
                                           transfers and assigns to NPTest its
                                           rights under the STC Employee
                                           Agreements of all former STC
                                           employees to the extent required to
                                           permit NPTest to enjoin, restrain,
                                           recover damages from or obtain
                                           specific performance of the STC
                                           Employee Agreements or obtain other
                                           remedies against any employee who
                                           breaches his or her STC Employee
                                           Agreement, and to the extent
                                           necessary to permit NPTest to protect
                                           its rights and interests.

                                               (2) STC and NPTest agree, at
                                           their own respective cost and
                                           expense, to use their reasonable
                                           efforts to cooperate as follows: (A)
                                           NPTest shall advise STC of: (1) any
                                           violation(s) of the STC Employee
                                           Agreements by NPTest or former STC
                                           employees, and (2) any violation(s)
                                           of the NPTest Employee Agreements
                                           which affect STC's rights; and (B)
                                           STC shall advise NPTest of any
                                           violation(s) of the STC Employee
                                           Agreements by current or former STC
                                           employees which affect NPTest's
                                           rights; provided, however, that the
                                           foregoing obligations shall only
                                           apply to violation(s) which become
                                           known to an attorney within the legal
                                           department of the party obligated to
                                           provide notice thereof.

                                      -25-

<PAGE>

                                   (3) STC and NPTest each may separately
                              enforce the STC Employee Agreements of NPTest and
                              former STC employees to the extent necessary to
                              reasonably protect their respective interests,
                              provided, however, that (i) NPTest shall not
                              commence any litigation relating thereto without
                              first consulting with STC's General Counsel or his
                              or her designee and (ii) STC shall not commence
                              any litigation relating thereto against any former
                              STC employee who is at the time an employee of the
                              NPTest Group without first consulting with
                              NPTest's General Counsel or his or her designee.
                              If either party, in seeking to enforce any STC
                              Employee Agreement, notifies the other party that
                              it requires, or desires, the other party to join
                              in such action, then the other party shall do so.
                              In addition, if either party commences or becomes
                              a party to any action to enforce a STC Employee
                              Agreement of an employee of the NPTest Group or
                              former STC employee, the other party shall,
                              whether or not it becomes a party to the action,
                              cooperate with the other party by making available
                              its files and employees who have information or
                              knowledge relevant to the dispute, subject to
                              appropriate measures to protect the
                              confidentiality of any proprietary or confidential
                              information that may be disclosed in the course of
                              such cooperation or action and subject to any
                              relevant privacy laws and regulations. Any such
                              action shall be conducted at the expense of the
                              party bringing the action and the parties shall
                              agree on a case by case basis on compensation, if
                              any, of the other party for the value of the time
                              of such other party's employees as reasonably
                              required in connection with the action.

                                   (B) (1) NPTest retains all rights under the
                              NPTest Employee Agreements of all former NPTest
                              employees necessary to permit NPTest to protect
                              the rights and interests of NPTest, but hereby
                              transfers and assigns to STC its rights under the
                              NPTest Employee Agreements of all former NPTest
                              employees to the extent required to permit STC to
                              enjoin, restrain, recover damages from or obtain
                              specific performance of the NPTest Employee
                              Agreements or obtain other remedies against any
                              employee who breaches his or her NPTest

                                       -26-

<PAGE>

                              Employee Agreement, and to the extent necessary to
                              permit STC to protect its rights and interests.

                                   (2) STC and NPTest agree, at their own
                              respective cost and expense, to use their
                              reasonable efforts to cooperate as follows: (A)
                              STC shall advise NPTest of: (1) any violation(s)
                              of the NPTest Employee Agreements by STC or former
                              NPTest employees, and (2) any violation(s) of the
                              STC Employee Agreements which affect NPTest's
                              rights; and (B) NPTest shall advise STC of any
                              violations of the NPTest Employee Agreements by
                              current or former NPTest employees which affect
                              STC's rights; provided, however, that the
                              foregoing obligations shall only apply to
                              violations which become known to an attorney
                              within the legal department of the party obligated
                              to provide notice thereof.

                                   (3) STC and NPTest each may separately
                              enforce the STC Employee Agreements of STC and
                              former NPTest employees to the extent necessary to
                              reasonably protect their respective interests,
                              provided, however, that (i) STC shall not commence
                              any litigation relating thereto without first
                              consulting with NPTest's General Counsel or his or
                              her designee and (ii) NPTest shall not commence
                              any litigation relating thereto against any former
                              NPTest employee who is at the time a STC Employee
                              without first consulting with STC's General
                              Counsel or his or her designee. If either party,
                              in seeking to enforce any NPTest Employee
                              Agreement, notifies the other party that it
                              requires, or desires, the other party to join in
                              such action, then the other party shall do so. In
                              addition, if either party commences or becomes a
                              party to any action to enforce a NPTest Employee
                              Agreement of a STC Employee or former NPTest
                              employee, the other party shall, whether or not it
                              becomes a party to the action, cooperate with the
                              other party by making available its files and
                              employees who have information or knowledge
                              relevant to the dispute, subject to appropriate
                              measures to protect the confidentiality of any
                              proprietary or confidential information that may
                              be disclosed in the course of such cooperation or
                              action and subject to any relevant privacy laws
                              and regulations. Any such

                                      -27-

<PAGE>

                              action shall be conducted at the expense of the
                              party bringing the action and the parties shall
                              agree on a case by case basis on compensation, if
                              any, of the other party for the value of the time
                              of such other party's employees as reasonably
                              required in connection with the action.

                              (C)  STC and NPTest understand and acknowledge
                         that matters relating to the making, performance,
                         enforcement, assignment and termination of employee
                         agreements are typically governed by the laws and
                         regulations of the national, federal, state or local
                         governmental unit where an employee resides, or where
                         an employee's services are rendered, and that such laws
                         and regulations may supersede or limit the
                         applicability or enforceability of this Section 10.04.
                         In such circumstances, STC and NPTest agree to take
                         action with respect to the employee agreements that
                         best accomplishes the parties' objectives as set forth
                         in this Section 10.04 and that is consistent with
                         applicable law.

          10.05  ACCRUED PAYROLL, BONUSES, PROFIT SHARING AND COMMISSIONS.
Except as provided in Section 7.04 of this Agreement, NPTest shall be
responsible for all Liabilities relating to, arising out of, or attributable to
payroll, bonuses, profit sharing and commissions accrued by employees of NPTest
from the NPTest Transition Date through the Separation Date. STC and NPTest
shall agree on the manner and method of payment for all payroll, bonuses, profit
sharing and commissions agreed to on behalf of employees who have been employed
by NPTest on or before the Separation Date. Before March 15, 2003, STC shall
make a 2002 profit-sharing contribution on behalf of NPTest Employees for the
period of time from January 1, 2002 until the NPTest Employees Transition Date.
Such contribution shall be determined by STC in its discretion. NPTest shall be
responsible for the 2002 profit-sharing contribution for NPTest Employees for
the period from the NPTest Transition Date until December 31, 2002, and for all
profit-sharing contributions on behalf of NPTest Employees thereafter. STC shall
provide or cause to be provided to NPTest in the same manner as in effect on the
date of this Agreement all payroll services as required in the Transition
Services Agreement.

          10.06  PAYROLL AND WITHHOLDING.

                    (a)  Income Reporting, Withholding. STC shall perform in the
          same manner as in effect on the date of this Agreement the income
          reporting and withholding function under NPTest's employer
          identification number for employees of the NPTest Group and other
          service providers as required by the Transition Services Agreement.

                    (b)  Delivery of, and Access to, Documents and Other
          Information. Concurrently with the Separation Date, STC shall cause to
          be

                                      -28-

<PAGE>

          delivered to NPTest, the employee information set forth on all IRS
          Forms W-4 executed by STC Employees designated as NPTest Employees as
          of the Separation Date. For the period ending on the Separation Date
          (and for such additional period as STC and NPTest may mutually agree),
          STC shall make reasonably available to NPTest all forms, documents or
          information, no matter in what format stored, relating to compensation
          or payments made to any employee or service provider of NPTest. Such
          information may include, but is not limited to, information concerning
          employee payroll deductions, payroll adjustments, records of time
          worked, tax records (e.g., IRS Forms W-2, W-4, 940 and 941), and
          information concerning garnishment of wages or other payments.

                    (c) Consistency of Tax Positions; Duplication. STC and
          NPTest shall individually and collectively make commercially
          reasonable best efforts to avoid unnecessarily duplicated federal,
          state or local payroll taxes, insurance or workers' compensation
          contributions, or unemployment contributions arising on or after the
          Separation Date. STC and NPTest shall take consistent reporting and
          withholding positions with respect to any such taxes or contributions.

          10.07  PERSONNEL AND PAY RECORDS. For the period beginning on the date
of this Agreement and ending on the Separation Date (and for such additional
period as STC and NPTest may mutually agree), STC shall make reasonably
available to NPTest for review and reproduction, subject to applicable laws on
confidentiality and data protection, all current and historic forms, documents
or information, no matter in what format stored, relating to pre-Separation Date
personnel and medical records. Such forms, documents or information may include,
but is not limited to: (a) information regarding ranking or promotions of
employees of the NPTest Group; (b) the existence and nature of garnishment
orders or other judicial or administrative actions or orders affecting an
employee's or service provider's compensation; and (c) performance evaluations.

          10.08  NON-TERMINATION OF EMPLOYMENT; NO THIRD-PARTY BENEFICIARIES.
No provision of this Agreement shall be construed to create any right, or
accelerate entitlement, to any compensation or benefit whatsoever on the part of
any NPTest Employee or other future, present or former employee of STC or NPTest
under any STC Plan or NPTest Plan or otherwise. Without limiting the generality
of the foregoing: (a) except as otherwise provided in this agreement or
applicable provisions of Plans, neither the Separation nor the termination of
the Participating Company status of NPTest or any member of the NPTest Group
shall cause any employee to be deemed to have incurred a termination of
employment; and (b) no transfer of employment between STC and NPTest before the
Separation Date shall be deemed a termination of employment for any purpose
hereunder.

                                  ARTICLE XI.

                               GENERAL PROVISIONS

          11.01  EFFECT IF IPO AND/OR SEPARATION DOES NOT OCCUR. Subject to
Section 11.08, if the IPO and/or Separation does not occur, then all actions and
events that are,

                                      -29-

<PAGE>

under this Agreement, to be taken or occur effective as of the IPO Closing Date,
and/or Separation Date, or otherwise in connection with the IPO and/or
Separation, shall not be taken or occur except to the extent specifically agreed
by the parties.

          11.02  RELATIONSHIP OF PARTIES. Nothing in this Agreement shall be
deemed or construed by the parties or any third party as creating the
relationship of principal and agent, partnership or joint venture between the
parties, the understanding and agreement being that no provision contained
herein, and no act of the parties, shall be deemed to create any relationship
between the parties other than the relationship set forth herein. This Agreement
shall be binding upon and inure solely to the benefit of and be enforceable by
each party and its respective successors and permitted assigns. Nothing in this
Agreement, express or implied, is intended to or shall confer upon any other
person any right, benefit or remedy of any nature whatsoever under or by reason
of this Agreement.

          11.03  AFFILIATED COMPANIES. Each of STC and NPTest shall cause to be
performed, and hereby guarantee the performance of, any and all actions of any
and all members of the STC Group or the NPTest Group, respectively.

          11.04  INCORPORATION OF SEPARATION AGREEMENT PROVISIONS. If a dispute,
claim or controversy results from or arises out of or in connection with this
Agreement, the parties agree to use the procedures set forth in Section 5.9 of
the Separation Agreement in lieu of other available remedies, to resolve same.
The provisions of Section 5.9 (Dispute Resolution), Section 6.1 (Limitation of
Liability) and 6.6 (Notices) of the Separation Agreement are hereby incorporated
herein by reference, and unless otherwise expressly specified herein, such
provisions shall apply as if fully set forth herein (references in this Section
11.04 to an "Article" or "Section" shall mean Articles or Sections of the
Separation Agreement, and, except as expressly set forth herein, references in
the material incorporated herein by reference shall be references to the
Separation Agreement).

          11.05  GOVERNING LAW. To the extent not preempted by applicable
federal law, this Agreement shall be governed by, construed and interpreted in
accordance with the laws of the State of Delaware, irrespective of the choice of
law principles of the State of Delaware, as to all matters, including matters of
validity, construction, effect, performance and remedies.

          11.06  SEVERABILITY. If any term or other provision of this Agreement
is determined to be invalid, illegal or incapable of being enforced by any rule
of law or public policy, all other conditions and provisions of this Agreement
shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions contemplated hereby is not affected in any
manner materially adverse to either party. Upon such determination that any term
or other provision is invalid, illegal or incapable of being enforced, the
parties hereto shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible and in an
acceptable manner to the end that transactions contemplated hereby are fulfilled
to the fullest possible extent.

          11.07  AMENDMENT. The Boards of Directors of NPTest, STI, SBV and STC
may mutually agree to amend the provisions of this Agreement at any time or
times, either prospectively or retroactively, to such extent and in such manner
as the Boards mutually deem

                                      -30-

<PAGE>

advisable. Each Board may delegate its amendment power, in whole or in part, to
one or more Persons or committees as it deems advisable.

          11.08 TERMINATION. This Agreement may be terminated and the Separation
abandoned at any time prior to the IPO Closing Date by STC in its sole
discretion. This Agreement may be terminated at any time after the IPO Closing
Date and before the Separation Date by mutual consent of STC, STI, SBV and
NPTest. In the event of termination pursuant to this Section, no party shall
have any liability of any kind under this Agreement to the other party.

          11.09 CONFLICT. In the event of any conflict between the provisions of
this Agreement and the Separation Agreement or any Plan, the provisions of this
Agreement shall control.

          11.10 COUNTERPARTS. This Agreement may be executed in two or more
counterparts each of which shall be deemed to be an original, but all of which
together shall constitute but one and the same Agreement.

                                      -31-

<PAGE>

          IN WITNESS WHEREOF, each of the parties have caused this Employee
Matters Agreement to be executed on its behalf by its officers thereunto duly
authorized on the day and year first above written.

                                   SCHLUMBERGER TECHNOLOGY CORP.

                                   By:________________________________________
                                   Name:
                                   Title:

                                   NPTEST, INC.

                                   By:________________________________________
                                   Name:
                                   Title:

                                   SCHLUMBERGER TECHNOLOGIES, INC.

                                   By:________________________________________
                                   Name:
                                   Title:

                                   SCHLUMBERGER B.V.

                                   By:________________________________________
                                   Name:
                                   Title:

                                      -32-

<PAGE>

                                  Schedule 2.06

                   Special Agreements Regarding Non-U.S. Plans

                                      -33-

<PAGE>

                                  Schedule 8.02

                                Vacation Cashout

                                      -34-<PAGE>

                                                                    EXHIBIT 10.7

                              TAX SHARING AGREEMENT

                                       BY

                       SCHLUMBERGER TECHNOLOGY CORPORATION

                                       AND

                                SCHLUMBERGER B.V.

                                       AND

                                  NPTEST, INC.

<PAGE>

                              TAX SHARING AGREEMENT

          This Agreement is entered into as of July __, 2002 by Schlumberger
Technology Corporation ("STC"), a Texas corporation, Schlumberger B.V., a
Netherlands corporation ("SBV"), and NPTest, Inc., a Delaware corporation
("NPTest"). Capitalized terms used in this Agreement are defined herein. Unless
otherwise indicated, all "Section" references in this Agreement are to sections
of this Agreement.

                                    RECITALS

          WHEREAS, STI and SBV collectively own all of the currently issued and
outstanding common stock of NPTest;

          WHEREAS, shortly hereafter, shares of NPTest common stock will be sold
to the public in an initial public offering (the "IPO");

          WHEREAS, the parties desire to provide for and agree upon the
allocation between the parties of liabilities for Taxes arising prior to, as a
result of, and subsequent to the IPO, and to provide for and agree upon other
matters relating to Taxes;

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

          SECTION 1. Definition of Terms.  For purposes of this Agreement
(including the recitals hereof), the following terms have the following
meanings:

          "Agreement" means this Tax Sharing Agreement.

          "Carryback" means any net operating loss, net capital loss, excess tax
credit, foreign tax credit or other similar Tax Item which may or must be
carried from one Tax Year to a prior Tax Year under applicable Tax Law.

          "Code" means the U.S. Internal Revenue Code of 1986, as amended from
time to time, or any successor law.

          "Combined Return" means any State or Foreign Income Tax Return which
is filed by one or more members of the Schlumberger Group and which includes one
or more members of the NPTest Group or in which income or deductions of any
member of the Schlumberger Group and income or deductions of any member of the
NPTest Group are combined.

          "Combined Year" means any Tax Year for which a Combined Return is
filed.

          "Company" means STC, SBV or NPTest, as the context requires.

                                       -1-

<PAGE>

          "Consolidated Return" means any Federal Income Tax Return which is
filed by STC, as common parent, and its eligible Subsidiaries and which includes
NPTest and its eligible Subsidiaries (if any).

          "Consolidated Year" means any Tax Year for which a Consolidated Return
is filed.

          "Federal Income Tax" means any Income Tax imposed by the United States
government.

          "Foreign Income Tax" means any Income Tax imposed by any foreign
country or any possession of the United States or by any political subdivision
of any foreign country or possession of the United States.

          "Group" means the Schlumberger Group or the NPTest Group, as the
context requires.

          "Income Tax" means all Taxes (x) based upon, measured by, or
calculated with respect to, net income or net receipts, proceeds or profits or
(y) based upon, measured by, or calculated with respect to multiple bases
(including, but not limited to, corporate franchise and occupation Taxes) if
such Tax may be based upon, measured by, or calculated with respect to one or
more bases described in clause (x) above.

          "Internal Restructuring" means the transfer by the Schlumberger Group
of assets and liabilities of the NPT Business to NPTest or other members of the
NPTest Group and other transactions incident to such transfers.

          "Internal Revenue Service" means the United States Internal Revenue
Service.

          "IPO" has the meaning set forth in the recital hereto.

          "IPO Date" means the date of the IPO.

          "NPT Business" means the business of providing advanced test and
diagnostic systems, and related product engineering services, and the assets
used in connection with that business, that the Schlumberger Group has
transferred and will transfer to NPTest.

          "NPTest Group" means NPTest and all persons that are Subsidiaries of
NPTest immediately after the IPO or that become Subsidiaries of NPTest
thereafter. While the determination whether an entity is a Subsidiary of NPTest
will be made after the IPO, any entity which is thus determined to be a
Subsidiary of NPTest and which was a subsidiary of Schlumberger before the IPO
will be treated as a member of the NPTest Group for periods before as well as
after the IPO. If (x) the parties desired that an entity be a Subsidiary of
NPTest immediately after the IPO, (y) the transfer of the entity to NPTest was
not completed by the IPO Date because of applicable legal restrictions, and

                                       -2-

<PAGE>

(z) the transfer is subsequently completed, that entity will be treated as a
member of the NPTest Group for all periods.

          "Other Tax" means any Tax that is not an Income Tax.

          "Payment Date" means (x) with respect to any Consolidated Return, the
due date for any required installment of estimated taxes determined under Code
Section 6655, the due date (determined without regard to extensions) for filing
the return determined under Code Section 6072, and the date the return is filed,
and (y) with respect to any Combined Return, the corresponding dates determined
under the applicable Tax Law.

          "Schlumberger" means Schlumberger Limited.

          "Schlumberger Group" means Schlumberger Limited and its Subsidiaries,
other than members of the NPTest Group.

          "State Income Tax" means any Income Tax imposed by any State of the
United States or by any political subdivision of any such State.

          "Subsidiary" means any entity that directly or indirectly is
"controlled" by the person or entity in question. "Control" means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a person, whether through ownership
of voting securities, by contract or otherwise.

          "Tax" or "Taxes" means any income, gross income, gross receipts,
profits, capital stock, franchise, withholding, payroll, social security,
workers compensation, unemployment, disability, property, ad valorem, stamp,
excise, severance, occupation, service, sales, use, license, lease, transfer,
import, export, value added, alternative minimum, estimated or other similar tax
(including any fee, assessment, or other charge in the nature of or in lieu of
any tax) imposed by any Tax Authority and any interest, penalties, additions to
tax, or additional amounts in respect of the foregoing.

          "Tax Authority" means, with respect to any Tax, the governmental
entity or political subdivision thereof that imposes such Tax, and the agency
(if any) charged with the collection of such Tax for such entity or subdivision.

          "Tax Benefit" means an actual reduction in the Tax liability of a
taxpayer.

          "Tax Contest" means an audit, review, examination, or any other
administrative or judicial proceeding with the purpose or effect of
redetermining Taxes of any member of either Group (including any administrative
or judicial review of any claim for refund).

          "Tax Item" means, with respect to any Income Tax, any item of income,
gain, loss, deduction, or credit.

                                       -3-

<PAGE>

          "Tax Law" means the law of any governmental entity or political
subdivision thereof relating to any Tax.

          "Tax Records" means Tax Returns, Tax Return work papers, documentation
relating to any Tax Contests, and any other books of account or records required
to be maintained under applicable Tax Laws or under any record retention
agreement with any Tax Authority.

          "Tax Return" means any report of Taxes due, any claims for refund of
Taxes paid, any information return with respect to Taxes, or any other similar
report, statement, declaration, or document required to be filed under any
applicable Tax Law, including any attachments, exhibits, or other materials
submitted with any of the foregoing, and including any amendments or supplements
to any of the foregoing.

          "Tax Year" means, with respect to any Tax, the year, or shorter
period, if applicable, for which the Tax is reported as provided under
applicable Tax Law.

          "Treasury Regulations" means the regulations promulgated from time to
time under the Code as in effect for the relevant Tax Year.

          SECTION 2. Allocation of Income Tax Liabilities.

          2.1  Federal Income Taxes. Liability for Federal Income Taxes shall be
allocated as follows:

               (a)  Consolidated Years.

                    (i)  Except as provided in Section 2.1(a)(ii), for each
Consolidated Year, NPTest shall be liable for and pay to STC an amount equal to
Federal Income Taxes determined under the "Stand Alone Method." Under this
method, NPTest's liability for Taxes for any Consolidated Year shall be computed
as if NPTest and eligible Subsidiaries were not required to join and did not
join in the Consolidated Return for that Consolidated Year but instead filed
their own consolidated Federal Income Tax Return, on which NPTest's tax
liability was calculated consistently with the principles of Treasury Regulation
section 1.1552-1(a)(2)(ii).

                    (ii) NPTest shall not be liable for any Federal Income Taxes
(x) for any Consolidated Year which ends on or before the IPO Date, or (y) for
the portion which ends on the IPO Date of any Consolidated Year which begins
before and ends after the IPO Date. For purposes of determining the Federal
Income Taxes described in clause (y) of the immediately preceding sentence, any
Consolidated Year which begins before and ends after the IPO Date shall be
treated as two Consolidated Years, one ending on the IPO Date and the other
beginning on the following day, and all calculations shall be made by
specifically apportioning each Tax Item to the hypothetical Consolidated Year in
which such Tax Item was incurred rather than by the use of any otherwise
permissible pro ration or estimates.

                                       -4-

<PAGE>

                    (iii) STC shall be liable for all Federal Income Taxes for
all Consolidated Years other than amounts for which NPTest is liable pursuant to
this Section 2.1(a).

               (b)  Tax Years Other Than Consolidated Years. NPTest shall be
liable for all Federal Income Taxes imposed on members of the NPTest Group with
respect to all Tax Years which are not Consolidated Years. STC shall be liable
for all Federal Income Taxes imposed on members of the Schlumberger Group with
respect to all Tax Years which are not Consolidated Years.

          2.2  State Income Taxes. Liability for State Income Taxes shall be
allocated between STC and NPTest under the same principles as set forth in
Section 2.1(a) with respect to liability for Federal Income Taxes, to the end
that (x) STC shall be liable for all State Income Taxes for any Combined Year or
portion thereof ending on or before the IPO Date, (y) NPTest shall be liable for
State Income Taxes attributable to the NPTest Group, under the principles of the
Stand Alone Method, for any Combined Year or portion thereof which begins after
the IPO Date, and (z) STC and NPTest shall be liable for all other State Income
Taxes imposed on members of the Schlumberger Group or the NPTest Group,
respectively.

          2.3  Foreign Income Taxes.

               (a)  Liability for Foreign Income Taxes. NPTest shall be liable
for and pay to SBV any Foreign Income Taxes with respect to any Combined Year in
an amount that is equal to the amount determined under the principles of the
Stand Alone Method for such Combined Year. Except as just indicated, SBV shall
be liable for all Foreign Income Taxes imposed on members of the Schlumberger
Group, and NPTest shall be liable for all Foreign Income Taxes imposed on
members of the NPTest Group.

               (b)  Elections Not to Have Combined Years. SBV and NPTest shall
cause members of the Schlumberger Group and of the NPTest Group, respectively,
to make all elections and take all other steps which are available under
applicable law to reduce or eliminate the instances in which Foreign Income
Taxes are reflected in a Combined Return.

          2.4  Other Taxes. Except as otherwise provided in this Agreement,
NPTest shall be liable for any Other Tax that is imposed on any member of the
NPTest Group, and STC or SBV, as the case may be, shall be liable for any Other
Tax that is imposed on any member of the Schlumberger Group.

          2.5  Taxes Resulting from the Internal Restructuring.

               (a)  General. Except as provided in Section 2.5(b) and in Section
4.2, STC and SBV shall be liable for and pay any and all liability for Taxes
resulting from the Internal Restructuring.

               (b)  Sales Taxes, Value Added Taxes, and Similar Taxes. NPTest
shall be liable for any Taxes resulting from the Internal Restructuring which

                                       -5-

<PAGE>

consist of sales Taxes, value added Taxes, or any similar Taxes, to the extent
that such Taxes give rise to a Tax Benefit to any member of the NPTest Group for
the same or similar Taxes. NPTest shall pay to STC or SBV, as the case may be,
in accordance with Section 5, the amount of any such Tax Benefit.

          2.6  Tax Payments and Intercompany Billings. Each Company shall pay
the Taxes allocated to it by this Section 2 either to the applicable Taxing
Authority or to the other appropriate Company in accordance with Section 5.

          SECTION 3.  Preparation and Filing of Tax Returns.

          3.1  Combined Returns and Consolidated Returns.

               (a)  Preparation by Schlumberger. STC or SBV, as applicable,
shall be responsible for preparing all Consolidated Returns and Combined
Returns.

               (b)  Provision of Information by NPTest. NPTest shall, for each
Consolidated Return or Combined Return, provide STC or SBV with all information
relating to members of the NPTest Group which STC or SBV needs to prepare such
return. NPTest shall use its best efforts to provide such information no later
than the first day of the fifth month following the end of the Tax Year to which
such information relates, but in any event shall provide such information no
later than the fifteenth day of the fifth month following the end of such Tax
Year.

          3.2  Tax Returns Other than Combined Returns and Consolidated Returns.

               (a)  Tax Returns to be Prepared by STC and SBV. STC or SBV shall
be responsible for preparing all Tax Returns which relate solely to one or more
members of the Schlumberger Group.

               (b)  Tax Returns to be Prepared by NPTest. NPTest shall be
responsible for preparing all Tax Returns which relate solely to one or more
members of the NPTest Group.

               (c)  Provision of Information. STC or SBV shall provide to
NPTest, and NPTest shall provide to STC or SBV, any information about members of
the Schlumberger Group or the NPTest Group, respectively, which the party
receiving such information needs to comply with Section 3.2(a) or (b). Such
information shall be provided within the time prescribed by Section 3.1(b) for
the provision of information for Consolidated Returns and Combined Returns.

                                       -6-

<PAGE>

          3.3  Practices in Preparing Tax Returns. Insofar as a Tax Return
prepared by STC or SBV may affect Taxes for which NPTest is liable pursuant to
this Agreement, or vice versa:

               (a)  Tax Accounting Practices. The Tax Return shall be prepared
consistently with past Tax accounting practices to the extent permissible under
applicable Tax Law.

               (b)  Review Prior to Filing. The Company preparing the Tax Return
(whether STC or SBV on the one hand or NPTest on the other hand) shall make the
Tax Return or relevant portion thereof available to the other Company no later
than thirty days before the Tax Return is due and shall in good faith take into
account any comments on such Tax Return by the other Company.

          SECTION 4. Tax Benefits, Refunds, and Carrybacks.

          4.1  Compensation for Use of Consolidated Year or Combined Year Tax
Items.

               (a)  Tax Benefit Realized by Schlumberger Group. Except as
provided in Section 4.1(b), in the event that the Schlumberger Group realizes a
Tax Benefit during any Consolidated Year or Combined Year as a result of the use
by the Schlumberger Group of Tax Items of the NPTest Group, then STC (in the
case of Federal Income Tax Items or State Income Tax Items) or SBV (in the case
of Foreign Income Tax Items) shall pay to NPTest, in accordance with Section 5,
the amount of the Tax Benefit realized by the Schlumberger Group.

               (b)  Pre-IPO Tax Benefits. The Schlumberger Group shall be
entitled to all Tax Benefits, without payment to NPTest, for:

                    (i)   any Consolidated Year which ends on or before the IPO
Date,

                    (ii)  the portion of any Consolidated Year which begins
before and ends after the IPO Date, determined in accordance with Section
2.1(a)(ii),

                    (iii) any Combined Year relating to State Income Taxes which
ends on or before the IPO Date, and

                    (iv)  the portion of any Combined Year relating to State
Income Taxes which begins before and ends after the IPO Date, determined in
accordance with the principles of Section 2.1(a)(ii).

          4.2  Compensation for Income Tax Benefits Arising from the Internal
Restructuring. Every year, beginning with NPTest's first Tax Year, and ending
with the fifteenth Tax Year, that ends after the IPO Date, NPTest shall
calculate the excess of (x) the amount of the NPTest Group's Federal Income Tax
liability for that Tax Year determined by excluding the Tax effects of the
Internal Restructuring (e.g., basis

                                       -7-

<PAGE>

adjustments) over (y) the amount of the NPTest Group's actual Federal Income Tax
liability as shown on their filed Federal Income Tax Return or Returns for such
Tax Year, in each case computed assuming that NPTest Group makes all available
elections to cause any losses to be carried forward to future Tax Years rather
than carried back to prior Tax Years. NPTest will pay to STC, in accordance with
Section 5, an amount equal to such Tax Benefit.

          4.3  Other Tax Benefits. To the extent not otherwise provided for in
this Agreement, if, as a result of an adjustment by a Tax Authority, one Group
suffers a Tax detriment and the other Group realizes a related Tax Benefit, STC
or SBV shall pay NPTest, or vice versa, in accordance with Section 5, an amount
equal to the lesser of the Tax Benefit to the Group receiving the Tax Benefit or
the Tax detriment to the Group suffering the Tax detriment.

          4.4  Claims for Refund from Carrybacks.

               (a)  Filing Claims and Making Payments for Carrybacks. Except as
provided in Section 4.4(b), if the NPTest Group generates a Carryback to a
Consolidated Year or Combined Year, then, upon request of NPTest, STC or SBV
shall file a claim for refund arising from such Carryback and pay such refund to
NPTest in accordance with Section 5.

               (b)  Limitation on Claims. Neither STC nor SBV shall be required
under Section 4.4(a) to file a claim for refund arising from a Carryback to a
Consolidated Year or Combined Year unless the amount of the refund exceeds
$200,000. Refunds claimed for Carrybacks to more than one Consolidated Year or
Combined Year will not be aggregated for this purpose.

               (c)  Ordering of and Payment for Carrybacks. In the event that
members of both Groups are each entitled to a Carryback to the same Consolidated
Year, the Carrybacks shall be applied in the manner set forth in Treasury
Regulation section 1.1502-21. Similar principles will be applied in the case of
Carrybacks to a Combined Year.

               (d)  Adjustment of Tax Items. In the event that a Carryback by
the NPTest Group to a Consolidated Year or Combined Year increases the liability
for Taxes of the Schlumberger Group, the amount of the refund to which the
NPTest Group shall be entitled to receive, in accordance with Section 5, shall
be net of such increased liability to the Schlumberger Group.

          SECTION 5. Tax Payments and Intercompany Billings.

          5.1  Consolidated Returns.

               (a)  Computation and Payment of Tax Due. At least ten business \
days prior to any Payment Date for a Consolidated Return, STC shall compute the
amount of Tax required to be paid to the Internal Revenue Service with respect
to such Tax Return on such Payment Date and shall notify NPTest in writing of
(x) the

                                       -8-

<PAGE>

amount of Tax required to be paid on such Payment Date, and (y) the amount, if
any, of such Tax which is allocable to NPTest under Section 2.1(a). STC will pay
the amount described in clause (x) of the immediately preceding sentence to the
Internal Revenue Service on or before such Payment Date.

               (b)  Computation and Payment of NPTest Liability With Respect to
Tax Due. Within thirty days following any Payment Date, NPTest will pay to STC
the amount, if any, of Tax paid on such Payment Date for which NPTest is liable
in accordance with Section 2.1(a), appropriately adjusted for prior payments
made by NPTest with respect to that Consolidated Year. If, at any time, the
total amount of payments made by NPTest to STC with respect to Taxes for a
Consolidated Year exceeds the amount for which NPTest is liable in accordance
with Section 2.1(a), STC will promptly remit the excess to NPTest.

          5.2 Combined Returns. Payments, and adjustments thereto, shall be made
by NPTest to STC or SBV, as applicable, for all Taxes relating to Combined
Returns for which NPTest is liable in accordance with Section 2.2 or Section
2.3, in the same manner as payments for Taxes relating to Consolidated Returns,
as described in Section 5.1.

          5.3  Payment of Refunds and Tax Benefits. Except as otherwise provided
in this Agreement:

               (a)  Refund or Tax Benefit Received by Schlumberger Group. If a
member of the Schlumberger Group receives a Tax refund with respect to Taxes for
which a member of the NPTest Group is liable hereunder or receives a Tax Benefit
for which NPTest is entitled to reimbursement hereunder, STC or SBV shall pay to
NPTest, within thirty days following the receipt of the Tax refund or Tax
Benefit, an amount equal to such Tax refund or Tax Benefit (or lesser amount
required by Section 4.3).

               (b)  Refund or Tax Benefit Received by NPT Group. If a member of
the NPTest Group receives a Tax refund with respect to Taxes for which a member
of the Schlumberger Group is liable hereunder or receives a Tax Benefit for
which STC or SBV is entitled to reimbursement hereunder, NPTest shall pay to STC
or SBV, within thirty days after the receipt of the Tax refund or Tax Benefit,
an amount equal to such Tax refund or Tax Benefit (or lesser amount required by
Section 4.3).

          5.4  Initial Determinations and Subsequent Adjustments. The initial
determination of the amount of a payment, if any, which one Company is required
to make to another under this Agreement shall be made on the basis of the Tax
Return as filed, or, if the Tax to which the payment relates is not reported in
a Tax Return, on the basis of the amount of Tax initially paid to the Tax
Authority. Payments will be made, as appropriate, if additional Taxes to which
such determination relates are subsequently paid, or a refund of such Taxes or a
Tax Benefit relating to such Taxes is received, whether as a result of an audit
by a Tax Authority or for any other reason. Each payment required by the
immediately preceding sentence (x) as a result of a payment of additional Taxes
will be due thirty days after the date on which the additional Taxes were paid
or, if

                                       -9-

<PAGE>

later, thirty days after the date of a request from the other Company for the
payment or (y) as a result of the receipt of a refund or Tax Benefit will be due
thirty days after the refund or Tax Benefit was received. If a payment is made
as a result of an audit by a Tax Authority which does not conclude the matter,
further adjusting payments will be made, as appropriate, to reflect the outcome
of subsequent administrative or judicial proceedings.

          5.5  Indemnification Payments. If any member of one Group is required
to make a payment to a Tax Authority of Taxes for which a Company belonging to
the other Group is liable under this Agreement, the Company which is liable for
such Taxes under this Agreement will remit the amount for which it is liable to
the appropriate other Company within thirty days after receiving notification
requesting such amount.

          5.6  Payments by or to Other Members of the Groups. When appropriate
under the circumstances to reflect the underlying liability for a Tax or
entitlement to a Tax refund or Tax Benefit, a payment which is required to be
made by or to a Company may be made by or to another member of the Group to
which that Company belongs, but nothing in this Section 5.6 shall relieve any
Company of its obligations under this Agreement.

          SECTION 6. Assistance and Cooperation. The parties will cooperate (and
cause their respective affiliates to cooperate) with each other and with each
other's agents, including accounting firms and legal counsel, in connection with
Tax matters, including provision of relevant documents and information in their
possession and making available to each other, as reasonably requested and
available, personnel (including officers, directors, employees and agents of the
Companies or their affiliates) responsible for preparing, maintaining, and
interpreting information and documents relevant to Taxes, and personnel
reasonably required as witnesses or for purposes of providing information or
documents in connection with any administrative or judicial proceedings relating
to Taxes. Any information or documents provided under this Section 6 shall be
kept confidential by the Company receiving the information or documents, except
as may otherwise be necessary in connection with the filing of Tax Returns or in
connection with any administrative or judicial proceedings relating to Taxes.

          SECTION 7. Tax Records.

          7.1  Retention of Tax Records. Each Company shall preserve, and shall
cause its affiliates to preserve, all Tax Records which are in its possession,
and which could affect the liability of any member of the other Group for Taxes,
for so long as the contents thereof may become material in the administration of
any matter under applicable Tax Law, but in any event until the later of (x) the
expiration of any applicable statutes of limitation, as extended, and (y) seven
years after the IPO Date.

          7.2  Access to Tax Records. The Companies and their respective
affiliates shall make available to members of the other Group for inspection and
copying during normal business hours upon reasonable notice all Tax Records in
their possession to the extent reasonably requested by any such member of the
other Group in connection

                                       -10-

<PAGE>

with the preparation of Tax Returns, audits, litigation, or the resolution of
items under this Agreement.

          SECTION 8. Tax Contests.

          8.1  Notice. Each of the parties shall provide prompt notice to the
other party of any pending or threatened Tax audit, assessment or proceeding or
other Tax Contest of which it becomes aware relating to Taxes for which it is
indemnified by the other party hereunder. Such notice shall contain factual
information (to the extent known) describing any asserted Tax liability in
reasonable detail and shall be accompanied by copies of any notice and other
documents received from any Tax Authority in respect of any such matters. If an
indemnified party has knowledge of an asserted Tax liability with respect to a
matter for which it is to be indemnified hereunder and such party fails to give
the indemnifying party prompt notice of such asserted Tax liability, then (x) if
the indemnifying party is precluded from contesting the asserted Tax liability
in any forum as a result of the failure to give prompt notice, the indemnifying
party shall have no obligation to indemnify the indemnified party for any Taxes
arising out of such asserted Tax liability, and (y) if the indemnifying party is
not precluded from contesting the asserted Tax liability in any forum, but such
failure to give prompt notice results in a monetary detriment to the
indemnifying party, then any amount which the indemnifying party is otherwise
required to pay the indemnified party pursuant to this Agreement shall be
reduced by the amount of such detriment.

          8.2  Control of Tax Contests. Each Company shall have full
responsibility and discretion in handling, settling or contesting any Tax
Contest involving a Tax for which it is liable pursuant to Section 2 of this
Agreement, except that Schlumberger shall have full responsibility and
discretion in handling, settling or contesting any Tax Contest with respect to a
Consolidated Return or Combined Return. Furthermore, Schlumberger may
participate in any Tax Contest with respect to Taxes arising from the Internal
Restructuring regardless of whether it has liability or indemnification
obligations with respect to such Taxes under this Agreement.

          SECTION 9. General Provisions.

          9.1  Survival of Obligations. The representations, warranties,
covenants and agreements set forth in this Agreement shall be unconditional and
absolute and shall remain in effect without limitation as to time.

          9.2  Expenses. Each Company and its affiliates shall bear their own
expenses incurred in connection with preparation of Tax Returns, Tax Contests,
and other matters related to Taxes under the provisions of this Agreement.

          9.3  Notices. All notices and other communications hereunder shall be
in writing and shall be delivered in person, by telecopy, by express or
overnight mail delivered by a nationally recognized air courier (delivery
charges prepaid), or by registered or certified mail (postage prepaid, return
receipt requested) to the respective parties as follows:

                                       -11-

<PAGE>

               (a)  If to STC to:

                         Schlumberger Technology Corporation The
                         Forum, 210 Schlumberger Drive Sugar Land,
                         Texas 77478 Attention:
                         Telecopy No.:

               (b)  If to SBV to:

                         Schlumberger B.V.
                         Parkstraat 83-89, 2514 JG
                         The Hague, The Netherlands
                         Attention:
                         Telecopy No.:

               (c)  If to NPTest, to:

                         NPTest, Inc.
                         150 Baytech Drive
                         San Jose, California 95134
                         Attention:
                         Telecopy No:

or to such other address as the party to whom notice is given may have
previously furnished to the others in writing in the manner set forth above. Any
notice or communication delivered in person shall be deemed effective on
delivery or when delivery is refused. Any notice or communication sent by
telecopy or by air courier shall be deemed effective on the first business day
at the place at which such notice or communication is received following the day
on which such notice or communication was sent.

          9.4  Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same agreement. The Agreement may be
delivered by facsimile transmission of a signed copy thereof.

          9.5  Binding Effect; Assignment. This Agreement and all of the
provisions hereof shall be binding upon the parties hereto and inure to the
benefit of the parties hereto and their respective successors and permitted
assigns. Except with respect to a merger of a party, neither this Agreement nor
any of the rights, interests or obligations hereunder shall be assigned by any
party hereto without the prior written consent of the other parties, which
consent shall not be unreasonably withheld or delayed; provided, however, that
STC, SBV and NPTest may assign their respective rights, interests, duties,
liabilities and obligations under this Agreement to any other member of their
Group, but such assignment shall not relieve STC, SBV or NPTest, as the
assignor, of its obligations hereunder.

                                       -12-

<PAGE>

          9.6  Severability. Any provision of this Agreement which is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof. Any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

          9.7  Amendment. This Agreement may not be amended or modified in any
respect except by a written agreement signed by all of the parties hereto.

          9.8  Effective Time. This Agreement shall become effective upon the
closing of the IPO.

          IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by the respective officers as of the date set forth above.

                                   SCHLUMBERGER TECHNOLOGY CORPORATION

                                        By:_____________________________________

                                        Name:
                                        Title:

                                   SCHLUMBERGER B.V.

                                        By:_____________________________________

                                        Name:
                                        Title:

                                   NPTEST INC.

                                        By:_____________________________________

                                        Name:
                                        Title:

                                       -13-

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