Document:

Exhibit 10.1

 

SERVICES AGREEMENT

 

BY AND BETWEEN

 

AGILENT TECHNOLOGIES, INC.

 

AND

 

KEYSIGHT TECHNOLOGIES, INC.

 

DATED AS OF AUGUST 1, 2014

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    
	
ARTICLE I
    
	
DEFINITIONS
    
	
 
    
	
ARTICLE II
    
	
SERVICES, DURATION AND SERVICES MANAGERS
    
	
 
    
	
Section 2.01.
    	
Services
    	
3
    
	
Section 2.02.
    	
Duration of Services
    	
3
    
	
Section 2.03.
    	
Additional Services and Service Increases
    	
3
    
	
Section 2.04.
    	
New Services
    	
4
    
	
Section 2.05.
    	
Services Not Included
    	
5
    
	
Section 2.06.
    	
Services Managers
    	
5
    
	
Section 2.07.
    	
Personnel
    	
6
    
	
 
    	
 
    	
 
    
	
ARTICLE III
    
	
ADDITIONAL ARRANGEMENTS
    
	
 
    	
 
    	
 
    
	
Section 3.01.
    	
Computer-Based and Other Resources
    	
7
    
	
Section 3.02.
    	
Access to Facilities
    	
7
    
	
Section 3.03.
    	
Cooperation
    	
7
    
	
Section 3.04.
    	
Data Protection
    	
8
    
	
 
    	
 
    	
 
    
	
ARTICLE IV
    
	
COSTS AND DISBURSEMENTS
    
	
 
    	
 
    	
 
    
	
Section 4.01.
    	
Costs and Disbursements
    	
8
    
	
Section 4.02.
    	
Tax Matters
    	
9
    
	
Section 4.03.
    	
No Right to Set-Off
    	
10
    
	
 
    	
 
    	
 
    
	
ARTICLE V
    
	
STANDARD FOR SERVICE
    
	
 
    	
 
    	
 
    
	
Section 5.01.
    	
Standard for Service
    	
10
    
	
Section 5.02.
    	
Disclaimer of Warranties
    	
11
    
	
Section 5.03.
    	
Compliance with Laws and Regulations
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE VI
    
	
LIMITED LIABILITY AND INDEMNIFICATION
    
	
 
    	
 
    	
 
    
	
Section 6.01.
    	
Consequential and Other Damages
    	
11
    
	
Section 6.02.
    	
Limitation of Liability
    	
12
    
	
Section 6.03.
    	
Obligation to Re-perform; Liabilities
    	
12
    
	
Section 6.04.
    	
Release and Recipient Indemnity
    	
12
    
	
Section 6.05.
    	
Provider Indemnity
    	
12
    

 

i

 

	
Section 6.06.
    	
Indemnification Procedures
    	
12
    
	
Section 6.07.
    	
Liability for Payment Obligations
    	
13
    
	
Section 6.08.
    	
Exclusion of Other Remedies
    	
13
    
	
 
    	
 
    	
 
    
	
ARTICLE VII
    
	
TERM AND TERMINATION
    
	
 
    	
 
    	
 
    
	
Section 7.01.
    	
Term and Termination
    	
13
    
	
Section 7.02.
    	
Effect of Termination
    	
14
    
	
Section 7.03.
    	
Force Majeure
    	
15
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII
    
	
GENERAL PROVISIONS
    
	
 
    	
 
    	
 
    
	
Section 8.01.
    	
No Agency
    	
15
    
	
Section 8.02.
    	
Subcontractors
    	
15
    
	
Section 8.03.
    	
Treatment of Confidential Information
    	
16
    
	
Section 8.04.
    	
Further Assurances
    	
16
    
	
Section 8.05.
    	
Audit Assistance
    	
17
    
	
Section 8.06.
    	
Dispute Resolution
    	
17
    
	
Section 8.07.
    	
Notices
    	
17
    
	
Section 8.08.
    	
Severability
    	
18
    
	
Section 8.09.
    	
Entire Agreement
    	
18
    
	
Section 8.10.
    	
No Third-Party Beneficiaries
    	
18
    
	
Section 8.11.
    	
Governing Law
    	
19
    
	
Section 8.12.
    	
Amendment
    	
19
    
	
Section 8.13.
    	
Rules of Construction
    	
19
    
	
Section 8.14.
    	
Counterparts
    	
19
    
	
Section 8.15.
    	
Assignability
    	
20
    
	
Section 8.16.
    	
Public Announcements
    	
20
    
	
Section 8.17.
    	
Non-Recourse
    	
20
    
	
Section 8.18.
    	
Title to Intellectual Property
    	
20
    
	
Section 8.19.
    	
Survival of Covenants
    	
20
    
	
Section 8.20.
    	
Waivers of Default
    	
21
    

 

	
SCHEDULE A-1:
    	
Agilent Short-Term Services
    	
A-1-1
    
	
SCHEDULE A-2:
    	
Agilent Long-Term Services
    	
A-2-1
    
	
SCHEDULE B-1:
    	
Keysight Short-Term Services
    	
B-1-1
    
	
SCHEDULE B-2:
    	
Keysight Long-Term Services
    	
B-2-1
    
	
EXHIBIT I:
    	
Services Managers
    	
I-1
    

 

ii

 

SERVICES AGREEMENT

 

This SERVICES AGREEMENT, dated as of August 1, 2014 and effective as of the Distribution Date (this “Agreement”), is by and between Agilent Technologies, Inc., a Delaware corporation (“Agilent”), and Keysight Technologies, Inc., a Delaware corporation (“Keysight”).  Unless otherwise defined in this Agreement, all capitalized terms used in this Agreement shall have the meaning set forth in the Separation and Distribution Agreement, dated as of the date hereof, by and between Agilent and Keysight (as amended, modified or supplemented from time to time in accordance with its terms, the “Separation Agreement”).

 

RECITALS

 

WHEREAS, the board of directors of Agilent has determined that it is in the best interests of Agilent and its shareholders to create a new publicly traded company to operate the business of Keysight;

 

WHEREAS, Agilent and Keysight have entered into the Separation Agreement;

 

WHEREAS, in order to facilitate and provide for an orderly transition under the Separation Agreement, the Parties (as defined herein) desire to enter into this Agreement to set forth the terms and conditions pursuant to which each of the Parties shall provide to the other the applicable Services (as defined herein); and

 

WHEREAS, the Separation Agreement requires execution and delivery of this Agreement by Agilent and Keysight on or prior to the Distribution.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual agreements contained in this Agreement, the Parties, intending to be legally bound, hereby agree as follows:

 

ARTICLE I
 DEFINITIONS

 

The following capitalized terms used in this Agreement shall have the meanings set forth below:

 

“Additional Services” shall have the meaning set forth in Section 2.03(a).

 

“Agilent” shall have the meaning set forth in the Preamble.

 

“Agilent Business” shall mean the businesses and operations of Agilent other than the Keysight Business.

 

“Agilent Local Service Manager” shall have the meaning set forth in Section 2.06(a).

 

“Agilent Services” shall have the meaning set forth in Section 2.01.

 

“Agilent Services Manager” shall have the meaning set forth in Section 2.06(a).

 

“Agreement” shall have the meaning set forth in the Preamble.

 

 

“Business Entity” means any corporation, general or limited partnership, trust, joint venture, unincorporated organization, limited liability entity or other entity.

 

“Change of Control” means, with respect to a Party, the occurrence after the Effective Time of any of the following:  (a) the sale, conveyance or disposition, in one or a series of related transactions, of all or substantially all of the assets of such Party to a third party that is not an Affiliate of such Party prior to such transaction or the first of such related transactions; (b) the consolidation, merger or other business combination of a Party into any other Business Entity, immediately following which the then-current stockholders of the Party, as such, fail to own in the aggregate the Majority Voting Power of the surviving Party in such consolidation, merger or business combination or of its ultimate publicly traded parent Business Entity; (c) a transaction or series of transactions in which any Person or “group” (as such term is used in Section 13(d) and 14(d) of the Exchange Act) acquires the Majority Voting Power of such Party (other than (i) a reincorporation or similar corporate transaction in which each of such Party’s stockholders own, immediately thereafter, interests in the new parent company in substantially the same percentage as such stockholder owned in such Party immediately prior to such transaction, or (ii) in connection with a transaction described in clause (b), which shall be governed by clause (b)); or (d) a majority of the board of directors of such Party ceasing to consist of individuals who have become directors as a result of being nominated or elected by a majority of such Party’s directors.

 

“Confidential Information” shall have the meaning set forth in Section 8.03(a).

 

“Interest Payment” shall have the meaning set forth in Section 4.01(d).

 

“Keysight” shall have the meaning set forth in the Preamble.

 

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

 

“Keysight Services” shall have the meaning set forth in Section 2.01.

 

“Keysight Services Manager” shall have the meaning set forth in Section 2.06(b).

 

“Majority Voting Power” means a majority of the voting power in the election of directors of all outstanding voting securities of the resulting Business Entity or of a Party.

 

“New Services” shall have the meaning set forth in Section 2.04(a).

 

“Party” shall mean Agilent and Keysight individually, and “Parties” shall mean Agilent and Keysight collectively, and, in each case, their permitted successors and assigns.

 

“Provider” shall mean the Party or its Subsidiary or Affiliate providing a Service under this Agreement.

 

“Provider Indemnified Party” shall have the meaning set forth in Section 6.04.

 

“Recipient” shall mean the Party or its Subsidiary or Affiliate to whom a Service under this Agreement is being provided.

 

2

 

“Recipient Indemnified Party” shall have the meaning set forth in Section 6.05.

 

“Schedule(s)” shall have the meaning set forth in Section 2.02.

 

“Separation Agreement” shall have the meaning set forth in the Preamble.

 

“Service Charge(s)” shall have the meaning set forth in Section 4.01(a).

 

“Service Extension” shall have the meaning set forth in Section 7.01(c).

 

“Service Increases” shall have the meaning set forth in Section 2.03(b).

 

“Services” shall have the meaning set forth in Section 2.01(a).

 

“Taxes” shall have the meaning set forth in the Tax Matters Agreement.

 

“Tax Law” shall have the meaning set forth in the Tax Matters Agreement.

 

“Termination Charges” shall have the meaning set forth in Section 7.01(b)(i)(A).

 

“Transaction Taxes” shall have the meaning set forth in Section 4.02(a).

 

“VAT” shall have the meaning set forth in Section 4.02(a).

 

ARTICLE II
 SERVICES, DURATION AND SERVICES MANAGERS

 

Section 2.01.         Services.  Subject to the terms and conditions of this Agreement, (a) Agilent shall provide or cause to be provided to Keysight the services listed on Schedule A-1 and Schedule A-2 to this Agreement (collectively, the “Agilent Services”) and (b) Keysight shall provide or cause to be provided to Agilent the services listed on Schedule B-1 and Schedule B-2 to this Agreement (collectively, the “Keysight Services,” and, collectively with the Agilent Services, any Additional Services, any Service Increases and any New Services, the “Services”).  All Services shall be for the sole use and benefit of the respective Recipient and its respective Party.  Notwithstanding anything to the contrary herein, any Collaborations (as defined in the Collaboration Agreement) set forth in the Collaboration Agreement shall not be and may not be considered Services hereunder (including Additional Services or New Services hereunder).

 

Section 2.02.         Duration of Services.  Subject to the terms of this Agreement, each of Agilent and Keysight shall provide or cause to be provided to the respective Recipients each Service until the earlier to occur of, with respect to each such Service, (a) the expiration of the term for such Service (or, subject to the terms of Section 7.01(c), the expiration of any Service Extension) as set forth on Schedule A-1 or A-2 or Schedule B-1 or B-2 (each a “Schedule,” and collectively, the “Schedules”) or (b) the date on which such Service is terminated under Section 7.01(b).

 

Section 2.03.         Additional Services and Service Increases.  (a) If, after the Distribution Date and during the term hereof, either Party (i) identifies a service that (x) the Agilent Group

 

3

 

provided to the Keysight Group prior to the Distribution Date that Keysight reasonably needs in order for the Keysight Business to continue to operate in substantially the same manner in which the Keysight Business operated prior to the Distribution Date, and such service was not included on Schedule A-1 or A-2 (other than because the Parties agreed in writing that such service shall not be provided), or (y) the Keysight Group provided to the Agilent Group prior to the Distribution Date that Agilent reasonably needs in order for the Agilent Business to continue to operate in substantially the same manner in which the Agilent Business operated prior to the Distribution Date, and such service was not included on Schedule B-1 or B-2 (other than because the Parties agreed in writing that such service shall not be provided), and (ii) provides written notice to the other Party requesting such additional services, then such other Party shall negotiate in good faith to provide such requested additional services (such requested additional services, the “Additional Services”); provided, however, that no Party shall be obligated to provide any Additional Service if it does not, in its reasonable judgment, have adequate resources to provide such Additional Service, if the provision of such Additional Service would significantly disrupt the operation of its businesses or if the Parties are unable to reach agreement on the terms thereof (including with respect to Service Charges therefor).  If the Parties agree to any such Additional Service, then the Parties shall document such terms in a supplement to the applicable Schedule.  The supplement to the applicable Schedule shall describe in reasonable detail the nature, scope, service period(s), termination provisions and other terms applicable to such Additional Services.  Each supplement to the applicable Schedule, as agreed to in writing by the Parties, shall be deemed part of this Agreement as of the date of such agreement and the Additional Services set forth therein shall be deemed “Services” provided under this Agreement, in each case subject to the terms and conditions of this Agreement.

 

(b)           After the Distribution Date, if (i) a Recipient requests to increase, relative to historical levels prior to the Distribution Date, the volume, amount, level or frequency, as applicable, of any Service provided by a Provider, and (ii) such increase is reasonably determined by the Recipient as necessary for the Recipient to operate its businesses (such increases, the “Service Increases”), then such Provider shall negotiate in good faith to provide such Service Increase; provided, however, that no Party shall be obligated to provide any Service Increase if the Parties are unable to reach agreement on the terms thereof (including with respect to Service Charges therefor); provided, further, that notwithstanding the foregoing, if such higher volume or quantity results from fluctuations occurring in the ordinary course of business of the Recipient, the Provider shall use commercially reasonable efforts to provide such requested higher volume or quantity.  If the Parties agree to any such Service Increase, then the Parties shall document such terms in an amendment to the applicable Schedule.  Each amended Schedule, as agreed to in writing by the Parties, shall be deemed part of this Agreement as of the date of such agreement and the Service Increases set forth therein shall be deemed “Services” provided under this Agreement, in each case subject to the terms and conditions of this Agreement.

 

Section 2.04.         New Services.  (a)  From time to time during the term of this Agreement, either Party may request the other Party to provide additional or different services which such other Party is not expressly obligated to provide under this Agreement (excluding, for the avoidance of doubt, any Additional Services or Service Increases, the “New Services”).  The Party receiving such request shall negotiate in good faith to provide such New Service; provided, however, that no Party shall be obligated to provide any New Services, including because the

 

4

 

Parties are unable to reach agreement on the terms thereof (including with respect to Service Charges therefor).  If the Parties agree to any such New Service, then the Parties shall document such terms in a supplement to the applicable Schedule.  The supplement to the applicable Schedule shall describe in reasonable detail the nature, scope, service period(s), termination provisions and other terms applicable to such New Services.  Each supplement to the applicable Schedule, as agreed to in writing by the Parties, shall be deemed part of this Agreement as of the date of such agreement and the New Services set forth therein shall be deemed “Services” provided under this Agreement, in each case subject to the terms and conditions of this Agreement.  The Parties shall in good faith determine any costs and expenses, including any start-up costs and expenses, that would be incurred by the Provider in connection with the provision of such New Service, which costs and expenses shall be borne solely by the Recipient.

 

Section 2.05.         Services Not Included.  It is not the intent of the Provider to render to the Recipient, nor of the Recipient to receive from the Provider, professional advice or opinions, whether with regard to Tax, legal, treasury, finance, employment or other business and financial matters, whether with regard to information technology or other matters, or the handling of or addressing environmental matters; and the Recipient shall not rely on, or construe, any Service rendered by or on behalf of the Provider as such professional advice or opinions or technical advice.

 

Section 2.06.         Services Managers.  (a) Agilent hereby appoints and designates the individual holding the Agilent position set forth on Exhibit I to act as its initial services manager (the “Agilent Services Manager”), who will be directly responsible for coordinating and managing the delivery of the Agilent Services and have authority to act on Agilent’s behalf with respect to matters relating to the provision of Services under this Agreement.  The Agilent Services Manager will work with the personnel of the Agilent Group to periodically address issues and matters raised by the Keysight Group relating to the provision of Services under this Agreement.  Notwithstanding the requirements of Section 8.07, all communications from Keysight to Agilent pursuant to this Agreement regarding routine matters involving a Service shall be made through the Agilent Services Manager or such other individual as may be specified by the Agilent Services Manager in accordance with Section 8.07 (such other individual, the “Agilent Local Service Manager”).  Agilent shall notify Keysight of the appointment of a different Agilent Services Manager or Agilent Local Service Manager(s), if necessary, in accordance with Section 8.07.

 

(b)           Keysight hereby appoints and designates the individual holding the Keysight position set forth on Exhibit I to act as its initial services manager (the “Keysight Services Manager”), who will be directly responsible for coordinating and managing the delivery of the Keysight Services and have authority to act on Keysight’s behalf with respect to matters relating to the provision of Services under this Agreement.  The Keysight Services Manager will work with the personnel of the Keysight Group to periodically address issues and matters raised by the Agilent Group relating to the provision of Services under this Agreement.  Notwithstanding the requirements of Section 8.07, all communications from Agilent to Keysight pursuant to this Agreement regarding routine matters involving a Service shall be made through the Keysight Services Manager or such other individual as may be specified by the Keysight Services Manager in accordance with Section 8.07 (such other individual, the “Keysight Local Service Manager”).  Keysight shall notify Agilent of the appointment of a different Keysight

 

5

 

Services Manager or Keysight Local Service Manager(s), if necessary, in accordance with Section 8.07.

 

Section 2.07.         Personnel.  (a)  The Provider of any Service will make available to the Recipient of such Service such personnel as may be necessary to provide such Service on the understanding that such personnel shall remain employed and/or engaged by the Provider.  The Provider will have the right, in its reasonable discretion, to (i) designate which personnel it will assign to perform such Service and (ii) remove and replace such personnel at any time; provided, however, that any such removal or replacement shall not be the basis for any increase in any Service Charge payable hereunder or relieve the Provider of its obligation to provide any Service hereunder; provided, further, that the Provider will use its commercially reasonable efforts to limit the disruption to the Recipient in the transition of the Services to different personnel.

 

(b)           In the event that the provision of any Service by the Provider requires the cooperation and services of the personnel of the Recipient, the Recipient will make available to the Provider such personnel (who shall be appropriately qualified for purposes of so supporting the provision of such Service by the Provider) as may be necessary for the Provider to provide such Service on the understanding that such personnel shall remain employed and/or engaged by the Recipient.  The Recipient will have the right, in its reasonable discretion, to (i) designate which personnel it will make available to the Provider in connection with the provision of such Service and (ii) remove and replace such personnel at any time; provided, however, that any resulting increase in costs to the Provider shall be borne by the Recipient and any adverse effect to the provision of such Service by the Provider will not be deemed a breach of this Agreement by the Provider; provided, further, that the Recipient will use its commercially reasonable efforts to limit the disruption to the Provider in the transition of such personnel.  If the Provider, in its reasonable discretion and following discussions with the Recipient, requests the Recipient to remove and/or replace any such personnel from their roles in respect of the Services being provided by the Provider, the Recipient shall comply with such request.

 

(c)           No Provider shall be liable under this Agreement for any Liabilities incurred by the Recipient Indemnified Parties that are primarily attributable to, or that are a consequence of, any actions or inactions of the personnel of the Recipient, except for any such actions or inactions undertaken pursuant to the direction of the Provider.

 

(d)           Nothing in this Agreement shall grant the Provider, or its employees, agents and third-party providers that are performing the Services, the right directly or indirectly to control or direct the operations of the Recipient or any member of its Group.  Such employees, agents and third-party providers shall not be required to report to the management of the Recipient nor be deemed to be under the management or direction of the Recipient.  The Recipient acknowledges and agrees that, except as may be expressly set forth herein as a Service (including any Additional Services, Service Increases or New Services) or otherwise expressly set forth in the Separation Agreement, another Transaction Document or any other applicable agreement, no Provider or any member of its Group shall be obligated to provide, or cause to be provided, any service or goods to any Recipient or any member of its Group.

 

6

 

ARTICLE III
 ADDITIONAL ARRANGEMENTS

 

Section 3.01.         Computer-Based and Other Resources.  Each Party and its Affiliates shall cause all of their personnel having access to the computer software, networks, hardware, technology or computer-based resources of the other Party and its Affiliates in connection with the performance, receipt or delivery of a Service, to comply with all security guidelines (including physical security, network access, internet security, confidentiality and personal data security guidelines) of such other Party and its Affiliates of which written notice is provided by such other Party.  Each Party shall ensure that the access contemplated by this Section 3.01 shall be used by its personnel only for the purposes contemplated by, and subject to the terms of, this Agreement.  Except as expressly provided in the Separation Agreement, any other Transaction Document or any other applicable agreement or as required in connection with the performance, receipt or delivery of a Service, each of the Parties and its Affiliates shall cease using (and shall cause their employees to cease using) the services made available by the other Party and its Affiliates prior to the Distribution Date.

 

Section 3.02.         Access to Facilities.  (a)  Keysight shall, and shall cause its Subsidiaries to, allow Agilent and its Representatives reasonable access to the facilities of Keysight necessary for Agilent to fulfill its obligations under this Agreement.

 

(b)           Agilent shall, and shall cause its Subsidiaries to, allow Keysight and its Representatives reasonable access to the facilities of Agilent necessary for Keysight to fulfill its obligations under this Agreement.

 

(c)           Notwithstanding the other rights of access of the Parties under this Agreement, each Party shall, and shall cause its Subsidiaries to, afford the other Party, its Subsidiaries and Representatives, following not less than five (5) Business Days prior written notice from the other Party, reasonable access during normal business hours to the facilities, information, systems, infrastructure and personnel of the relevant Providers as reasonably necessary for the other Party to verify the adequacy of internal controls over information technology, reporting of financial data and related processes employed in connection with the Services, including in connection with verifying compliance with Section 404 of the Sarbanes-Oxley Act of 2002; provided, however, such access shall not unreasonably interfere with any of the business or operations of such Party or its Subsidiaries or Representatives.

 

(d)           Except as otherwise permitted by the other Party in writing, each Party shall permit only its authorized Representatives, contractors, invitees or licensees to access the other Party’s facilities.

 

Section 3.03.         Cooperation.  It is understood that it will require the significant efforts of both Parties to implement this Agreement and to ensure performance of this Agreement by the Parties at the agreed-upon levels in accordance with all of the terms and conditions of this Agreement.  The Parties will cooperate, acting in good faith and using commercially reasonable efforts, to effect a smooth and orderly transition of the Services provided under this Agreement from the Provider to the Recipient (including the assignment or transfer of the rights and obligations under any third-party contracts relating to the Services); provided, however, that this

 

7

 

Section 3.03 shall not require either Party to incur any out-of-pocket costs or expenses unless and except as expressly provided in this Agreement or otherwise agreed to in writing by the Parties.

 

Section 3.04.         Data Protection.  Subject to Article IV of the Separation Agreement, the Provider shall only process personal data which it may receive from the Recipient while carrying out its duties under this Agreement:  (a) in such a manner as is necessary to carry out those duties; (b) in accordance with the instructions of the Recipient; and (c) using appropriate technical and organizational measures to prevent the unauthorized or unlawful processing of such personal data and/or the accidental loss or destruction of, or damage to, such personal data.

 

ARTICLE IV
 COSTS AND DISBURSEMENTS

 

Section 4.01.         Costs and Disbursements.  (a)  Except as otherwise provided in this Agreement, a Recipient of Services shall pay to the Provider of such Services a monthly fee for the Services (or category of Services, as applicable) (each fee constituting a “Service Charge” and, collectively, “Service Charges”) as listed on the applicable Schedule.  With respect to each Service or category of Services, the applicable Schedule shall set forth (i) the Recipient that will be invoiced the Service Charge for such Service or category of Services and (ii) the Provider that will be paid such Service Charge.

 

(b)           During the term of this Agreement, the amount of a Service Charge for any Services (or category of Services, as applicable) may increase to the extent of:  (i) any increases mutually agreed to by the Parties, (ii) any Service Charges applicable to any Additional Services, Service Increases or New Services and (iii) any increase in the rates or charges imposed by any unaffiliated third-party provider that is providing Services.  Together with any monthly invoice for Service Charges, the Provider shall provide the Recipient with documentation to support the calculation of such Service Charges.

 

(c)           The Provider shall be responsible for all out-of-pocket costs and expenses incurred by the Provider or its Affiliates in connection with providing the Services (including necessary travel-related expenses) to the extent that such costs and expenses are not reflected in the Service Charge for such Services.

 

(d)           The Recipient shall pay the amount of each monthly invoice of Service Charges by wire transfer (or such other method of payment as may be agreed between the Parties) to the Provider within forty-five (45) days of the receipt of each such invoice, including appropriate documentation as described herein, as instructed by the Provider.  If the Recipient fails to pay any undisputed amount by the due date, the Recipient shall be obligated to pay to the Provider, in addition to the amount due, interest at an annual default interest rate of five percent (5%) or the maximum legal rate, whichever is lower (the “Interest Payment”), on such undisputed amount, accruing from the date the payment was due through the date of actual payment.  The Recipient shall notify the Provider promptly, and in no event later than forty-five (45) days following receipt of the Provider’s invoice, of any disputed amounts.  After such forty-five (45)-day period, the Recipient will be deemed to have accepted the Provider’s invoice.  Any such Dispute shall be handled in accordance with Section 8.06.  The Recipient shall pay any undisputed amount in accordance with this Section 4.01(d).  All amounts due and payable

 

8

 

hereunder shall be invoiced and paid in (i) U.S. dollars or (ii) if the parties so agree, a foreign currency.  Services provided by any Provider that is domiciled outside of the United States to a Recipient that is domiciled outside the United States may be billed separately on an invoice between the two non-US Business Entities. Section 4.02 shall apply to these invoices accordingly.  The Provider shall provide supporting information and documentation as reasonably requested by the Recipient to validate any amounts payable by the Recipient pursuant to this Section 4.01.

 

(e)           Subject to the confidentiality provisions set forth in Section 8.03, each Party shall, and shall cause their respective Affiliates to, provide, upon ten (10) days’ prior written notice from the other Party, any information within such Party’s or its Affiliates’ possession that the requesting Party reasonably requests in connection with any Services being provided to such requesting Party by an unaffiliated third-party provider, including any applicable invoices, agreements documenting the arrangements between such third-party provider and the Provider and other supporting documentation; provided, however, that each Party shall make no more than one such request during any fiscal quarter.

 

(f)            Any costs and expenses incurred by either Party in connection with obtaining any third-party consent contemplated by Section 5.01(b) that is required to allow the Provider to perform or cause to be performed any Service shall be borne by the Recipient.

 

Section 4.02.         Tax Matters.  (a)  All Service Charges (and prices charged therefor) are exclusive of any value added, goods and services, sales and use, consumption taxes or any other applicable Transaction Taxes.  Without limiting any provisions of this Agreement, the Recipient shall be responsible for (i) all excise, sales, use, transfer, stamp, documentary, filing, recordation and other similar Taxes, (ii) any value added, goods and services or similar recoverable Taxes (“VAT”) and (iii) any related interest and penalties (collectively, “Transaction Taxes”) that Provider is not at fault for causing, in each case imposed or assessed as a result of the provision of Services by the Provider.  To the extent that cross-border Services to be performed hereunder fall within Article 44 of the EU VAT Directive or the relevant equivalent national provision and the Provider is not required to charge VAT, the Recipient agrees that it will itself account for VAT in its own jurisdiction on the performance of such cross-border Services made to it hereunder and will provide to the Provider a valid VAT registration number, certificate (or equivalent documentation) in the jurisdiction with respect to the country or region of receipt of such cross-border Services.  The Provider will issue legally compliant invoices to the Recipient usable by the Recipient to recover (by way of credit or refund) Transaction Taxes in jurisdictions where they are recoverable.  In the event the Tax authorities question the Transaction Tax treatment of the Services provided, the Provider and the Recipient will work together to issue corrected invoices where applicable.  The Recipient and the Provider agree to utilize commercially reasonable efforts to collaborate regarding any requests for information, audit, controls or similar requests of the Tax authorities concerning Transaction Taxes and which involve the Services provided under this Agreement.  The Provider and the Recipient agree to take commercially reasonable actions to cooperate in obtaining any refund, return or rebate, or applying zero-rating for Services giving rise to any Transaction Taxes, including filing any necessary exemption or other similar forms or providing valid VAT identification numbers or other relevant registration numbers, certificates or other similar documents.  The Recipient shall promptly reimburse the Provider for any costs incurred by the Provider or its Affiliates in

 

9

 

connection with the Recipient obtaining a refund or overpayment of refund, return, rebate or the like of any Transaction Tax.  For the avoidance of doubt, any applicable gross receipts-based or net income-based Taxes shall be borne by the Provider unless the Provider is required by Law to collect or obtain, or allowed to separately invoice for and collect or obtain, reimbursement of such Taxes from the Recipient.

 

(b)           The Recipient shall be entitled to deduct and withhold Taxes required by any Tax Law to be withheld on payments made to the Provider pursuant to this Agreement.  To the extent any amounts are so withheld, the Recipient shall (i) pay such deducted and withheld amount to the proper Governmental Authority and (ii) promptly provide to the Provider evidence of such payment to such Governmental Authority.  The Provider shall, prior to the date of any payment to be made pursuant to this Agreement, make commercially reasonable efforts to provide the Recipient any certificate or other documentary evidence (A) required by any Tax Law or (B) which the Provider is entitled by any Tax Law to provide in order to reduce the amount of any Taxes that may be deducted or withheld from such payment, and the Recipient agrees to accept and act in reliance on any such duly and properly executed certificate or other applicable documentary evidence.

 

Section 4.03.         No Right to Set-Off.  The Recipient shall timely pay the full amount of Service Charges and shall not set off, counterclaim or otherwise withhold any amount owed to the Provider under this Agreement on account of any obligation owed by the Provider to the Recipient.

 

ARTICLE V
 STANDARD FOR SERVICE

 

Section 5.01.         Standard for Service.  (a) The Provider agrees (i) to perform the Services with substantially the same nature, quality, standard of care and service levels at which the same or similar services were performed by or on behalf of the Provider prior to the Distribution Date or, if not so previously provided, then substantially similar to those which are applicable to similar services provided to the Provider’s Affiliates or other business components; and (ii) upon receipt of written notice from the Recipient identifying any outage, interruption or other failure of any Service, to respond to such outage, interruption or other failure of such Service in a manner that is substantially similar to the manner in which such Provider or its Affiliates responded to any outage, interruption or other failure of the same or similar services prior to the Distribution Date or, with respect to services for which same or similar services were not provided prior to the Distribution Date, in a manner that is substantially similar to the manner in which such Provider or its Affiliates responds with respect to internally provided services.  The Parties acknowledge that an outage, interruption or other failure of any Service shall not be deemed to be a breach of the provisions of this Section 5.01 so long as the applicable Provider complies with the foregoing clause (ii).

 

(b)           Nothing in this Agreement shall require the Provider to perform or cause to be performed any Service to the extent that the manner of such performance would constitute a violation of applicable Law or any existing contract or agreement with a third party.  If the Provider is or becomes aware of any potential violation on the part of the Provider, the Provider shall promptly send a written notice to the Recipient of any such potential violation.  The Parties

 

10

 

each agree to cooperate and use commercially reasonable efforts to obtain any necessary third-party consents required under any existing contract or agreement with a third party to allow the Provider to perform or cause to be performed any Service in accordance with the standards set forth in Section 5.01(a), subject to Section 4.01(f).  If, with respect to a Service, the Parties, despite the use of such commercially reasonable efforts, are unable to obtain a required third-party consent or the performance of such Service by the Provider would continue to constitute a violation of applicable Law, the Provider shall use commercially reasonable efforts in good faith to provide such Services in a manner as closely as possible to the standards described in Section 5.01(a) that would apply absent the exception provided for in the first sentence of this Section 5.01(b).

 

Section 5.02.         Disclaimer of Warranties.  EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE PARTIES ACKNOWLEDGE AND AGREE THAT THE SERVICES ARE PROVIDED AS-IS, THAT EACH RECIPIENT ASSUMES ALL RISKS AND LIABILITIES ARISING FROM OR RELATING TO ITS USE OF AND RELIANCE UPON THE SERVICES AND EACH PROVIDER, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, MAKES NO REPRESENTATION OR WARRANTY WITH RESPECT THERETO.  EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH PROVIDER HEREBY EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES REGARDING THE SERVICES, WHETHER EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR OTHERWISE, INCLUDING ANY REPRESENTATION OR WARRANTY IN REGARD TO QUALITY, PERFORMANCE, NONINFRINGEMENT, COMMERCIAL UTILITY, MERCHANTABILITY OR FITNESS OF ANY SERVICE FOR A PARTICULAR PURPOSE.

 

Section 5.03.         Compliance with Laws and Regulations.  Each Party shall be responsible for its own compliance and its subcontractors’ compliance with any and all Laws applicable to its performance under this Agreement.  No Party shall knowingly take any action in violation of any such applicable Law that results in liability being imposed on the other Party.

 

ARTICLE VI
 LIMITED LIABILITY AND INDEMNIFICATION

 

Section 6.01.         Consequential and Other Damages.  Notwithstanding anything to the contrary contained in the Separation Agreement or this Agreement, except for breaches of confidentiality obligations or in the case of gross negligence or willful misconduct, no Party shall be liable to the other Party or any of its Affiliates or Representatives, whether in contract, tort (including negligence and strict liability) or otherwise, at law or equity, for any special, indirect, incidental, punitive or consequential damages whatsoever (including lost profits or damages calculated on multiples of earnings approaches), which in any way arise out of, relate to or are a consequence of, the performance or nonperformance by such Party (including any Affiliates and Representatives and any unaffiliated third-party providers, in each case, providing any applicable Services) under this Agreement or the provision of, or failure to provide, any Services under this Agreement, including with respect to loss of profits, business interruptions or claims of customers, even if such Party has been advised of the possibility of such damages.

 

11

 

Section 6.02.         Limitation of Liability.  The Liabilities of each Provider and its Affiliates and Representatives, collectively, under this Agreement for any act or failure to act in connection herewith (including the performance or breach of this Agreement), or from the sale, delivery, provision or use of any Services provided under or contemplated by this Agreement, whether in contract, tort (including negligence and strict liability) or otherwise, at law or equity, except for breaches of confidentiality obligations or in the case of gross negligence or willful misconduct, shall not exceed the total aggregate Service Charges actually paid to such Provider and its Affiliates pursuant to this Agreement.

 

Section 6.03.         Obligation to Re-perform; Liabilities.  In the event of any breach of this Agreement by any Provider with respect to the provision of any Services (with respect to which the Provider can reasonably be expected to re-perform in a commercially reasonable manner), the Provider shall (a) promptly correct in all material respects such error, defect or breach or re-perform in all material respects such Services at the request of the Recipient and at the sole cost and expense of the Provider and (b) subject to the limitations set forth in Sections 6.01 and 6.02, reimburse the Recipient and its Affiliates and Representatives for Liabilities attributable to such breach by the Provider.  The remedy set forth in this Section 6.03 shall be the sole and exclusive remedy of the Recipient for any such breach of this Agreement.  Any request for re-performance in accordance with this Section 6.03 by the Recipient must be in writing and specify in reasonable detail the particular error, defect or breach, and such request must be made no more than one (1) month from the date such error, defect or breach becomes apparent or should have reasonably become apparent to the Recipient.

 

Section 6.04.         Release and Recipient Indemnity.  Subject to Section 6.01, each Recipient hereby releases the applicable Provider and its Affiliates and Representatives (each, a “Provider Indemnified Party”), and each Recipient hereby agrees to indemnify, defend and hold harmless each such Provider Indemnified Party from and against any and all Liabilities arising from, relating to or in connection with the sale, delivery, provision or use of any Services by such Recipient or any of its Affiliates, Representatives or other Persons using such Services, except to the extent that such Liabilities arise out of, relate to or are a consequence of the applicable Provider Indemnified Party’s breaches of confidentiality obligations, gross negligence or willful misconduct.

 

Section 6.05.         Provider Indemnity.  Subject to Section 6.01, each Provider hereby agrees to indemnify, defend and hold harmless the applicable Recipient and its Affiliates and Representatives (each, a “Recipient Indemnified Party”), from and against any and all Liabilities arising from, relating to or in connection with the sale, delivery, provision or use of any Services by such Recipient or any of its Affiliates, Representatives or other Persons using such Services to the extent that such Liabilities arise out of, relate to or are a consequence of the applicable Provider’s breaches of confidentiality obligations, gross negligence or willful misconduct.

 

Section 6.06.         Indemnification Procedures.  The provisions of Section 5.5 through Section 5.8 and Section 5.10 of the Separation Agreement shall govern claims for indemnification under this Agreement; provided, that, for purposes of this Section 6.06, in the event of any conflict between the provisions of Section 5.5 through Section 5.8 and Section 5.10 of the Separation Agreement and this Article VI, the provisions of this Agreement shall control.

 

12

 

Section 6.07.         Liability for Payment Obligations.  Nothing in this Article VI shall be deemed to eliminate or limit, in any respect, Agilent’s or Keysight’s express obligation in this Agreement to pay Service Charges for Services rendered in accordance with this Agreement.

 

Section 6.08.         Exclusion of Other Remedies.  The provisions of Sections 6.03, 6.04 and 6.05 shall, to the maximum extent permitted by applicable Law, be the sole and exclusive remedies of the Provider Indemnified Parties and the Recipient Indemnified Parties, as applicable, for any Liability, whether arising from statute, principle of common or civil law, principles of strict liability, tort, contract or otherwise under this Agreement.

 

ARTICLE VII
 TERM AND TERMINATION

 

Section 7.01.         Term and Termination.  (a) This Agreement shall be effective on the Distribution Date and shall terminate upon the earlier to occur of:  (i) the last date on which either Party is obligated to provide any Service to the other Party in accordance with the terms of this Agreement or (ii) the mutual written agreement of the Parties to terminate this Agreement in its entirety.

 

(b)           (i)  Without prejudice to a Recipient’s rights with respect to a Force Majeure set forth in Section 7.03(b), a Recipient may from time to time terminate this Agreement with respect to the entirety of any individual Service but not a portion thereof:

 

(A)          for any reason or no reason, effective as of the end of a calendar month, upon providing at least thirty (30) days’ (or such other period as may be specified in the Schedules) prior written notice to the Provider; provided, however, that the Recipient shall pay to the Provider the necessary and reasonable documented out-of-pocket costs incurred in connection with the wind-down of such Service other than any employee severance and relocation expenses, but including unamortized license fees and costs for equipment used to provide such Service, contractual obligations under agreements used to provide such Service, any breakage or termination fees and any other termination costs payable by the Provider with respect to any resources or pursuant to any other third-party agreements that were used by the Provider to provide such Service (or an equitably allocated portion thereof, in the case of any such equipment, resources or agreements that also were used for purposes other than providing Services) (“Termination Charges”); or

 

(B)          if the Provider of such Service has failed to perform any of its material obligations under this Agreement with respect to such Service, and such failure shall continue to exist thirty (30) days after receipt by the Provider of written notice of such failure from the Recipient.

 

(ii)           A Provider may terminate this Agreement with respect to one or more Services, in whole but not in part, at any time upon prior written notice to the Recipient if the Recipient has failed to perform any of its material obligations under this Agreement relating to such Services, including making payment of Service Charges when

 

13

 

due, and such failure shall continue uncured for a period of thirty (30) days after receipt by the Recipient of a written notice of such failure from the Provider.

 

(iii)          The relevant Schedule shall be updated to remove any Service terminated under Section 7.01(b)(i) or (ii).

 

(iv)          In the event that any Service is terminated other than at the end of a month, the Service Charge associated with such Service shall be pro-rated appropriately.  The Parties acknowledge that there may be interdependencies among the Services being provided under this Agreement that may not be identified on the applicable Schedules and agree that, if the Provider’s ability to provide a particular Service in accordance with this Agreement is materially and adversely affected by the termination of another Service in accordance with Section 7.01(b)(i)(A), then the Parties shall negotiate in good faith to amend the Schedule relating to such affected continuing Service.

 

(c)           In connection with the termination of any Service identified on the Schedules as being subject to the provisions of this Section 7.01(c), if the Recipient reasonably determines that it will require such Service to continue beyond the date on which such Service is scheduled to terminate in the applicable Schedule, the Recipient may request the Provider to extend such Service for the stated renewal period(s) applicable to such Service on the applicable Schedule hereto (each, a “Service Extension”) by written notice to the Provider no less than thirty (30) days prior to the date of such scheduled termination (or, in the case of a Service with multiple Service Extensions, thirty (30) days prior to the date the immediately preceding Service Extension terminates), and the Parties shall use commercially reasonable efforts to comply with such Service Extension; provided, however, that (i) the maximum number of Service Extensions with respect to each Service shall be as specified in the applicable Schedule, (ii) the Provider shall not be obligated to provide such Service Extension if a third-Party consent is required and cannot be obtained by the Provider and (iii) each Service Extension shall be permissible under applicable Law.  Within five (5) days following either Party’s receipt of a written notice requesting a Service Extension, the Parties shall in good faith (x) negotiate the terms of an amendment to the applicable Schedule and (y) determine the costs and expenses (which shall not include any Service Charges payable under this Agreement), if any, that would be incurred by the Provider or the Recipient, as the case may be, in connection with the provision of such Service Extension, which costs and expenses shall be borne solely by the Recipient.  Each such amended Schedule, as agreed to in writing by the Parties, shall be deemed part of this Agreement as of the date of such agreement and any Services provided pursuant to such Service Extensions shall be deemed “Services” provided under this Agreement, in each case subject to the terms and conditions of this Agreement.

 

Section 7.02.         Effect of Termination.  Upon termination of any Service pursuant to this Agreement, the Provider of the terminated Service will have no further obligation to provide the terminated Service, and the applicable Recipient will have no obligation to pay any future Service Charges relating to any such Service; provided, however, that the Recipient shall remain obligated to the relevant Provider for (a) the Service Charges owed and payable in respect of Services provided prior to the effective date of termination and (b) any applicable Termination Charges payable in the event that the Recipient terminates such Service pursuant to Section 7.01(b)(i)(A).  In connection with the termination of any Service, the provisions of this

 

14

 

Agreement not relating solely to such terminated Service shall survive any such termination, and in connection with a termination of this Agreement, Article I, Article VI (including liability in respect of any indemnifiable Liabilities under this Agreement arising or occurring on or prior to the date of termination), this Section 7.02, Article VIII, all confidentiality obligations under this Agreement and liability for all due and unpaid Service Charges and Termination Charges shall continue to survive indefinitely.

 

Section 7.03.         Force Majeure.  (a) Neither Party (nor any Person acting on its behalf) shall have any liability or responsibility for failure to fulfill any obligation (other than a payment obligation) under this Agreement so long as and to the extent to which the fulfillment of such obligation is prevented, frustrated, hindered or delayed as a consequence of a Force Majeure; provided, however, that (i) such Party (or such Person) shall have exercised commercially reasonable efforts to minimize the effect of such Force Majeure on its obligations; and (ii) the nature, quality and standard of care that the Provider shall provide in delivering a Service after a Force Majeure shall be substantially the same as the nature, quality and standard of care that the Provider provides to its Affiliates with respect to such Service (or with respect to other internally provided services in the event the Provider does not provide such Services to its Affiliates).  In the event of an occurrence of a Force Majeure, the Party whose performance is affected thereby shall give notice of suspension as soon as reasonably practicable to the other stating the date and extent of such suspension and the cause thereof, and such Party shall resume the performance of such obligations as soon as reasonably practicable after the removal of such cause.

 

(b)           During the period Services are affected by a Force Majeure, the Recipient shall be entitled to permanently terminate such Service(s) if a Force Majeure shall continue to exist for more than fifteen (15) consecutive days (and shall be relieved of the obligation to pay Service Charges for such Services(s) during such period), it being understood that the Recipient shall not be required to provide any advance notice of such termination to the applicable Provider or pay any Termination Charges pursuant to Section 7.01(b)(i)(A).

 

ARTICLE VIII
 GENERAL PROVISIONS

 

Section 8.01.         No Agency.  Nothing in this Agreement shall be deemed in any way or for any purpose to constitute any Party an agent of an unaffiliated Party in the conduct of such other Party’s business.  The Provider of any Service under this Agreement shall act as an independent contractor and not as the agent of the Recipient in performing such Service, maintaining control over its employees, its subcontractors and their employees and complying with all withholding of income at source requirements, whether federal, national, state, local or foreign.

 

Section 8.02.         Subcontractors.  A Provider may hire or engage one or more subcontractors to perform any or all of its obligations under this Agreement; provided, however, that (a) such Provider shall use the same degree of care in selecting any such subcontractor as it would if such contractor was being retained to provide similar services to the Provider, and (b) such Provider shall in all cases remain primarily responsible for all of its obligations under this Agreement with respect to the scope of the Services, the standard for services as set forth in Article V and the content of the Services provided to the Recipient.

 

15

 

Section 8.03.         Treatment of Confidential Information.  (a)  The Parties shall not, and shall cause all other persons providing Services or having access to information of the other Party that is confidential or proprietary and received in connection with the provision of Services (“Confidential Information”) not to, disclose to any other person or use, except for purposes of or as contemplated by this Agreement (or any other Transaction Document), any Confidential Information of the other Party; provided, however, that the Confidential Information may be used by such Party to the extent that such Confidential Information has been (i) in the public domain through no fault of such Party or any member of such Party’s Group or any of their respective Representatives, (ii) later lawfully acquired from other sources by such Party (or any member of such Party’s Group), which sources are not themselves bound by a confidentiality obligation or (iii) independently generated without reference to any Confidential Information of the other Party; provided, further, that each Party may disclose Confidential Information of the other Party, to the extent not prohibited by applicable Law:  (i) to its Representatives on a need-to-know basis in connection with the performance of such Party’s obligations under this Agreement; (ii) in any report, statement, testimony or other submission required to be made to any Governmental Authority having jurisdiction over the disclosing Party; or (iii) in order to comply with applicable Law, or in response to any summons, subpoena or other legal process or formal or informal investigative demand issued to the disclosing Party in the course of any litigation, investigation or administrative proceeding.  In the event that a Party becomes legally compelled (based on advice of counsel) by deposition, interrogatory, request for documents, subpoena, civil investigative demand or similar judicial or administrative process to disclose any Confidential Information of the other Party, such disclosing Party shall provide the other Party with prompt prior written notice of such requirement, and, to the extent reasonably practicable, cooperate with the other Party (at such other Party’s expense) to obtain a protective order or similar remedy to cause such Confidential Information not to be disclosed, including interposing all available objections thereto, such as objections based on settlement privilege.  In the event that such protective order or other similar remedy is not obtained, the disclosing Party shall furnish only that portion of the Confidential Information that has been legally compelled, and shall exercise its commercially reasonable efforts (at such other Party’s expense) to obtain assurance that confidential treatment will be accorded such Confidential Information.

 

(b)           Each Party shall, and shall cause its Representatives to, protect the Confidential Information of the other Party by using the same degree of care to prevent the unauthorized disclosure of such Confidential Information as the Party uses to protect its own confidential information of a like nature, but in any event no less than a reasonable degree of care.

 

(c)           Each Party shall be liable for any failure by its respective Representatives to comply with the restrictions on use and disclosure of Confidential Information contained in this Agreement.

 

(d)           Each Party shall comply with all applicable local, state, national, federal and foreign privacy and data protection Laws that are or that may in the future be applicable to the provision of Services under this Agreement.

 

Section 8.04.         Further Assurances.  Each Party hereto shall take, or cause to be taken, any and all reasonable actions, including the execution, acknowledgment, filing and delivery of

 

16

 

any and all documents and instruments that any other Party hereto may reasonably request in order to effect the intent and purpose of this Agreement and the transactions contemplated hereby.

 

Section 8.05.         Audit Assistance.  Each of the Parties and their respective Subsidiaries are or may be subject to regulation and audit by Governmental Authorities (including taxing authorities), standards organizations, customers or other parties to contracts with such Parties or their respective Subsidiaries under applicable Law, standards or contract provisions.  If a Governmental Authority, standards organization, customer or other Party to a contract with a Party or its Subsidiary exercises its right to examine or audit such Party’s or its Subsidiary’s books, records, documents or accounting practices and procedures pursuant to such applicable Law, standards or contract provisions, and such examination or audit relates to the Services, then the other Party shall provide, at the sole cost and expense of the requesting Party, all assistance reasonably requested by the Party that is subject to the examination or audit in responding to such examination or audits or requests for Information, to the extent that such assistance or Information is within the reasonable control of the cooperating Party and is related to the Services.

 

Section 8.06.         Dispute Resolution.  (a) In the event of any Dispute, the Parties agree that the Agilent Services Manager and the Keysight Services Manager (or such other persons as Agilent and Keysight may designate) shall negotiate in good faith in an attempt to resolve such Dispute amicably.  If such Dispute has not been resolved to the mutual satisfaction of Agilent and Keysight within fifteen (15) days after the initial written notice of the Dispute (or such longer period as the Parties may agree), then such Dispute shall be resolved in accordance with the procedures set forth in Article VII of the Separation Agreement, which shall be the sole and exclusive procedures for the resolution of any such Dispute unless otherwise specified herein or in Article VII of the Separation Agreement.

 

(b)           In any Dispute regarding the amount of a Service Charge, if after such Dispute is finally resolved pursuant to the dispute resolution process set forth or referred to in Section 8.06(a), it is determined that the Service Charge that the Provider has invoiced the Recipient, and that the Recipient has paid to the Provider, is greater or less than the amount that the Service Charge should have been, then (i) if it is determined that the Recipient has overpaid the Service Charge, the Provider shall within five (5) Business Days after such determination reimburse the Recipient an amount of cash equal to such overpayment, plus the Interest Payment, accruing from the date of payment by the Recipient to the time of reimbursement by the Provider; and (ii) if it is determined that the Recipient has underpaid the Service Charge, the Recipient shall within five (5) Business Days after such determination reimburse the Provider an amount of cash equal to such underpayment, plus the Interest Payment, accruing from the date such payment originally should have been made by the Recipient to the time of payment by the Recipient.

 

Section 8.07.         Notices.  Except with respect to routine communications by the Agilent Services Manager (or Agilent Local Service Manager) and Keysight Services Manager (or Keysight Local Service Manager) under Section 2.06, all notices, requests, claims, demands and other communications under this Agreement shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by

 

17

 

overnight courier service, by facsimile or electronic transmission with receipt confirmed (followed by delivery of an original via overnight courier service) or by registered or certified mail (postage prepaid, return receipt requested) to the respective Parties at the following addresses (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 8.07):

 

	
(i)
    	
if to Agilent, to:
    
	
 
    	
 
    
	
 
    	
Agilent Technologies, Inc.
    
	
 
    	
5301 Stevens Creek Blvd.
    
	
 
    	
M/S 1A-PB
    
	
 
    	
Santa Clara, CA 95051
    
	
 
    	
Facsimile:
    	
408-345-8958
    
	
 
    	
E-mail:
    	
marie_huber@agilent.com
    
	
 
    	
Attn:
    	
General Counsel
    
	
 
    	
 
    
	
(ii)
    	
if to Keysight, to:
    
	
 
    	
 
    
	
 
    	
Keysight Technologies, Inc.
    
	
 
    	
1400 Fountaingrove Parkway
    
	
 
    	
Santa Rosa, CA 95403
    
	
 
    	
Facsimile:
    	
707-540-6494
    
	
 
    	
E-mail:
    	
stephen_d_williams@keysight.com
    
	
 
    	
Attn:
    	
General Counsel
    

 

Section 8.08.                          Severability.  If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced under any Law or as a matter of public policy, all other conditions and provisions of this Agreement shall remain in full force and effect.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated by this Agreement be consummated as originally contemplated to the greatest extent possible.

 

Section 8.09.                          Entire Agreement.  This Agreement, together with the documents referenced herein (including the Separation Agreement and any other Transaction Documents) and the Schedules and Exhibits hereto, constitutes the entire agreement of the Parties with respect to the subject matter of this Agreement and supersedes all prior agreements and undertakings, both written and oral, between or on behalf of the Parties with respect to the subject matter of this Agreement.

 

Section 8.10.                          No Third-Party Beneficiaries.  Except as provided in Article VI with respect to Provider Indemnified Parties and Recipient Indemnified Parties, this Agreement is for the sole benefit of the Parties and members of their respective Group and their permitted successors and assigns and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person, including any union or any employee or former employee of Agilent or Keysight, any legal or equitable right, benefit or remedy of any nature whatsoever,

 

18

 

including any rights of employment for any specified period, under or by reason of this Agreement.

 

Section 8.11.                          Governing Law.  This Agreement (and any claims or disputes arising out of or related to this Agreement or to the transactions contemplated by this Agreement or to the inducement of any Party to enter into this Agreement or the transactions contemplated by this Agreement, whether for breach of contract, tortious conduct or otherwise and whether predicated on common law, statute or otherwise) shall in all respects be governed by, and construed in accordance with, the Laws of the State of Delaware, including all matters of construction, validity and performance, in each case without reference to any conflict of Law rules that might lead to the application of the Laws of any other jurisdiction.

 

Section 8.12.                          Amendment.  No provision of this Agreement, including any Exhibits and Schedules to this Agreement, may be amended or modified except by a written instrument signed by each of the Parties.

 

Section 8.13.                          Rules of Construction.  Interpretation of this Agreement shall be governed by the following rules of construction:  (a) words in the singular shall be held to include the plural and vice versa, and words of one gender shall be held to include the other gender as the context requires; (b) references to the terms “Article,” “Section,” “paragraph,” “clause,” “Exhibit” and “Schedule” are references to the Articles, Sections, paragraphs, clauses, Exhibits and Schedules of this Agreement unless otherwise specified; (c) the terms “hereof,” “herein,” “hereby,” “hereto” and derivative or similar words refer to this entire Agreement, including the Schedules and Exhibits hereto; (d) references to “$” shall mean U.S. dollars; (e) the word “including” and words of similar import when used in this Agreement shall mean “including without limitation,” unless otherwise specified; (f) the word “or” shall not be exclusive; (g) references to “written” or “in writing” include in electronic form; (h) provisions shall apply, when appropriate, to successive events and transactions; (i) the table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement; (j) Agilent and Keysight have each participated in the negotiation and drafting of this Agreement and if an ambiguity or question of interpretation should arise, this Agreement shall be construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or burdening either Party by virtue of the authorship of any of the provisions in this Agreement or any interim drafts of this Agreement; (k) a reference to any Person includes such Person’s successors and permitted assigns; (l) any reference to “days” means calendar days unless Business Days are expressly specified; and (m) when calculating the period of time before which, within which or following which any act is to be done or step taken pursuant to this Agreement, the date that is the reference date in calculating such period shall be excluded, and if the last day of such period is not a Business Day, the period shall end on the next succeeding Business Day.

 

Section 8.14.                          Counterparts.  This Agreement may be executed in one or more counterparts, and by each Party in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page to this Agreement by facsimile or PDF shall be as effective as delivery of a manually executed counterpart of this Agreement.

 

19

 

Section 8.15.                          Assignability.  This Agreement shall not be assigned by operation of Law or otherwise without the prior written consent of Agilent and Keysight, except that each Party may assign, without the written consent of the other Party:

 

(a)                                 any of its rights and obligations under this Agreement to any of its Subsidiaries; provided, however, that no such assignment shall release Agilent or Keysight, as the case may be, from any liability or obligation under this Agreement; and

 

(b)                                 all of its rights and obligations under this Agreement to the successor of the Agilent Business or the Keysight Business, as applicable, in connection with a Change of Control; provided, that (i) the resulting or surviving Party assumes all the obligations of the assigning Party hereunder by operation of law or pursuant to an agreement in form and substance reasonably satisfactory to the other Party, (ii) any and all costs and expenses incurred by any Party in connection with such assignment (including in connection with clause (iii) of this proviso) shall be borne solely by the assigning Party and (iii) both Parties shall in good faith negotiate any amendments to this Agreement, including the Exhibits and Schedules to this Agreement, that may be reasonably necessary in order to assign such Services.

 

Section 8.16.                          Public Announcements.  From and after the Effective Time, the Parties shall consult with each other before issuing, and give each other the opportunity to review and comment upon, that portion of any press release or other public statement that relates to the transactions contemplated by this Agreement, and shall not issue any such press release or make any such public statement prior to such consultation, except (a) as may be required by applicable Law, court process or by obligations pursuant to any listing agreement with any national securities exchange or national securities quotation system, or (b) as otherwise set forth in the Separation Agreement.

 

Section 8.17.                          Non-Recourse.  No past, present or future director, officer, employee, incorporator, member, partner, shareholder, Affiliate, agent, attorney or representative of either Agilent or Keysight or their Affiliates shall have any liability for any obligations or liabilities of Agilent or Keysight, respectively, under this Agreement or for any claims based on, in respect of, or by reason of, the transactions contemplated by this Agreement.

 

Section 8.18.                          Title to Intellectual Property.  Except as expressly provided for under the terms of this Agreement, the Recipient acknowledges that it shall acquire no right, title or interest (including any license rights or rights of use) in any Intellectual Property which is owned or licensed by the Provider, by reason of the provision of the Services provided hereunder.  The Recipient shall not remove or alter any copyright, trademark, confidentiality or other proprietary notices that appear on any Intellectual Property owned or licensed by the Provider.  The Recipient shall not attempt to decompile, translate, reverse engineer or make excessive copies of any Intellectual Property owned or licensed by the Provider, and the Recipient shall promptly notify the Provider of any such attempt, regardless of whether by the Recipient or any third party, of which the Recipient becomes aware.

 

Section 8.19.                          Survival of Covenants.  Except as expressly set forth in this Agreement, the covenants and other agreements contained in this Agreement, and liability for the breach of

 

20

 

any obligations contained herein, shall survive each of the Reorganization and the Distribution and shall remain in full force and effect.

 

Section 8.20.                          Waivers of Default.  A waiver by a Party of any default by the other Party of any provision of this Agreement shall not be deemed a waiver by the waiving Party of any subsequent or other default, nor shall it prejudice the rights of the waiving Party.  No failure or delay by a Party in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof, nor shall a single or partial exercise thereof prejudice any other or further exercise thereof or the exercise of any other right, power or privilege.  No waiver by any Party of any provision of this Agreement shall be effective unless explicitly set forth in writing and executed by the Party so waiving.

 

[The remainder of this page is intentionally left blank.]

 

21

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on the date first written above by their respective duly authorized officers.

 

	
 
    	
AGILENT   TECHNOLOGIES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Shiela Barr Robertson
    
	
 
    	
 
    	
Name:
    	
Shiela Barr Robertson
    
	
 
    	
 
    	
Title:
    	
Senior Vice President, Corporate Development and Strategy
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
KEYSIGHT   TECHNOLOGIES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ronald S. Nersesian
    
	
 
    	
 
    	
Name:
    	
Ronald S. Nersesian
    
	
 
    	
 
    	
Title:
    	
President and Chief Executive Officer
    

 

[Signature Page for Services Agreement]

 

 

Schedule A-1
 Agilent Short-Term Services

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(1)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
1   IT Separation and Support Services

 

The following services are included under the enterprise application   support:

 

I.           Applications   Maintenance & Support (AMS) — Agilent will   provide services for ongoing support and maintenance of Keysight business   applications including interfaces that are required for ongoing business   needs. Provide level 1, 2 and 3 break fix support, perform problem   management, and apply critical patches to applications as necessary.

 

Scope: All currently IT supported applications including but not   limited to:

 

·             Oracle ERP and   related products

 

·             Finance, Tax and   Treasury
    	
 
    	
Provider   (From Entity): Agilent (Scope: Global)  US to US billing  IT - Application Services Manager (Suresh Vaidyanathan)  
    IT - Infrastructure Services   Manager (John Kohl).

 

Recipient   (To Entity):

Keysight (Scope: Global,)  US to US billing  VP Information Technology (Chee-beng Lim)

 

Svc Loc:  
    	
 
    	
Termination   Trigger:

Service terminates at earlier of completion of   services provided under this “Separation and Support Services” (the “Cutover   Date”) and End Date (as defined below).

 

Inter-company network link will be severed two weeks   prior to the end of the Separation and Support Services.

 

Start   Date: Distribution Date
    	
 
    	
Fee   Type: Fixed Per Month

 

Cost/Month: $2.6M/month until the Cutover Date plus 15 days.  End Date Extended Monthly Cost: $10M a month.  

 

See Note.

Agilent will pay for Separation Project Work costs   (defined as project cost 
    	
 
    	
The services described here are for the cost of operating the IT   systems. Separation Project Work, the work required to accomplish the system   separation, is not included in this Services Agreement.

 

Assumption for Services described in Service Description Column

·       Agilent’s current service levels (Definition, time of coverage,   prioritization, response and resolution times) will be followed during the   term of the Service.

·       Agilent’s current escalation process for IT services shall be used   during the term.

·       Application & Services downtime including downtime for   separation related activities 
    

 

(1) Termination Date is the End Date specified.  Unless otherwise noted, if a trigger is specified, the service will terminate on the earliest of satisfactory completion of the trigger and the end date as agreed by both parties.

 

A-1-1

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(1)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
Applications

 

·             Reporting tools

 

·             HR,   Trade & WPS applications

 

·             Sales,   Marketing, CCC and Service applications

 

·             Engineering   Applications

 

·             Standard   web-hosting services including Keysight.com

 

Out   of scope

 

·             Enhancements   - All discretionary enhancements (other than the   approved scope of separation program) are out of scope.

 

II. Infrastructure

 

The following services are included under the enterprise   infrastructure:

 

i. Network Services

 

Agilent will provide services for ongoing 
    	
 
    	
Multiple
    	
 
    	
End   Date: 2015-05-15

 

Mutual agreement required to extend End Date. If End   Date is extended past 5/15/2015, Cost Per Month shall equal End Date Extended   Monthly Cost (as defined herein)
    	
 
    	
to separate systems) through 2/28/2015. Keysight will   pay for all Separation Project Work after 2/28/2015
    	
 
    	
will be scheduled by Agilent based   on a mutually agreed upon schedule between Agilent and Keysight

·       Current Agilent’s operational performance metrics will be continue to be   leveraged during the term.

·       Cost of Keysight licenses, hardware and voice and network circuits that   are directly billed to Keysight will be out of scope of this Agreement from a   financial perspective.

·       Current security/ compliance/ governance policies and controls will   remain the same for both companies during the term

·       Provide governance on security tools; hardening, configuration settings,   firewall settings; SSL certificates; remote access; and, project engagement.

·       Support related threat and security incident management processes as it   pertains to virus 
    

 

A-1-2

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(1)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
operation of Keysight network including WAN, Site LANs, Voice   Services, Remote Access, and support for business partner integration. Scope   includes all currently IT supported network services including but not   limited to:

·             Operation of   Keysight LAN, WAN, DNS and wireless network (data center, call center, sites   and international lines)

·             Support of   Internet connectivity and extranet firewalls

·             Operation of   employee and business partner remote access

·             Operation of   voice services including IPT and BCM

·             Support for   system separation activities through termination of TSA

 

Out   of scope

 

Billing for 3rd party data   and voice network service providers.

 

ii. End User   Computing Services

 

Agilent will provide services for ongoing
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
handling, log monitoring, and   incident reporting, where applicable, according to Agilent’s processes.

·       Existing internal resources and third party providers will continue to   be used until the End Date

·       Agilent will not provide a warranty on any services provided as part of   system separation activities.
    

 

A-1-3

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(1)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
support and maintenance of Keysight End User computing services

 

·             Email &   Calendaring — Including Exchange, Enterprise Vault, Cisco   Iron Port, BES, Digital Fax, List Service

 

·             PC   / Workstation / mac Environment — Including HPCA,   ADCI, EPP, PGP, Image, CDP, Client Print servers, PC leasing, Jamf,   certificates etc.

 

·             Support   and Helpdesk

 

·             Content   Management - eRoom, Sharedoc, SharePoint, Confluence,   Edison, Jive/Spark, ADFS

 

Out   of Scope

 

Billing of 3rd party   services for -

 

·             Cell   phones & contracts - MobileIron, Tangoe

 

·             Video-conferencing - Tele-presence

 

·    Audio/Data- conferencing -   Genesys,
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

A-1-4

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(1)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
GlobalMeet, Webex, Aruba

 

iii. Compute Services

 

Services include but not limited to

·             Operation of   enterprise and site data centers and disaster recovery centers

·             Operation of IT   supported servers and storage systems including system monitoring and   availability of all hardware (server, appliances, network equipment) and   systems

·             Perform system   backup operations (consistent with current practices)

·             Provide patch   management to address security vulnerabilities per current practices and   policies

·             Limited   performance tuning and resource optimization as required

·             Support for   system separation activities through termination of TSA

 

iv.   Information Security and Risk Management Services

 

Services include but not limited to:
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

A-1-5

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(1)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
·             Provide information security services   including but not limited to protection, detection and threat management

 

·             Provide IT risk   management including but not limited to regulatory, compliance and system   recovery services ( DR and Business continuity)

 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
2 3rd party IT Services that are not separated per plan

 

The current separation plan assumes that billings for   external IT services listed below will be separated prior to distribution   day. In the event the financial billing separation is delayed for any reason,   the costs will be billed to Keysight as incurred with a standard legal mark   up.

The services include:

· Cell phones &   contracts - MobileIron, Tangoe

· Video-conferencing -   Tele-presence

· Audio/Data- conferencing -   Genesys, GlobalMeet, Webex, Aruba

· Voice and Data Network   service providers
    	
 
    	
Provider   (From Entity): Agilent (Scope: Global)  IT - Infrastructure Services Manager (John Kohl)

 

Recipient   (To Entity):  Keysight (Scope: Global)  VP Information Technology (Chee-beng Lim)

 

Svc Loc:  Multiple
    	
 
    	
Termination   Trigger:  Per separation schedule of the specific service

 

6 month notice from either party required to   terminate supply of or use of the service before the End Date.

 

Start   Date: Distribution Date

End   Date: 2015-05-15
    	
 
    	
Fee   Type: Pass-thru

 

Cost   Basis: As costs are incurred,   billed monthly plus 5% administration fee

 

Cost/Month: See Note
    	
 
    	
· Agilent will provide the   cost, based on 3rd-party services not yet separated, when the service starts.
    

 

A-1-6

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(1)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
3 Stabilization Services

 

Following system separation, Agilent will manage the stabilization   period utilizing resources from both Agilent and Keysight. Both companies   will make resources available to the stabilization effort. At the end of the   stabilization period, Keysight will take ownership for managing stabilization   and running of environment with no assistance from Agilent resources.
    	
 
    	
Provider   (From Entity): Agilent (Scope: Global)

IT - Application Services Manager (Suresh   Vaidyanathan)  and

IT - Infrastructure Services Manager (John Kohl)

 

Recipient   (To Entity):  Keysight (Scope: Global)  VP Information Technology (Chee-beng Lim)

 

Svc Loc:  Multiple
    	
 
    	
Termination   Trigger:  Ends with Stabilization Exit.

 

-Mutual agreement required to terminate supply of or   use of the service before the End Date.

 

Start   Date: End Date of IT   Separation and Support Services  End   Date: 2015-05-15

 

For the avoidance of doubt, if the IT Separation and   Support Services are provided past May 15, 2015, there will be no   Stablization Services provided to Keysight by 
    	
 
    	
Fee   Type: Fixed Per Month

 

Cost/Month: $1M / Month
    	
 
    	
·      Keysight will own all regulatory and compliance issues related to their   environment during the stabilization period.
    

 

A-1-7

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(1)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
 
    	
 
    	
 
    	
 
    	
Agilent.
    	
 
    	
 
    	
 
    	
 
    
	
4 Changed phone number recording

 

-Provide a new-number referral recording and/or   autoforward calls for customer facing employees (as identified by both   companies) whose numbers are changed to the correct company for up to six   months post change.

-Retain call center phone numbers that are changed   with recording for at least 12 months after change.
    	
 
    	
Provider   (From Entity): Agilent

(Scope: Global)  US

Agilent Network

Services Manager (Mike   Schicktanz)

 

Recipient   (To Entity):  Keysight (Scope: Global)  Keysight Field Operations Manager (Dave Sawtelle)

 

Svc Loc:  Multiple
    	
 
    	
Termination   Trigger:  The service for individuals will terminate on April 30, 2015 or   whenever the Inter-Company network link (ICL) is cut between Agilent and   Keysight, whichever is first.

 

6 month notice from either party required to   terminate supply of or use of the service before the End Date.

 

Start   Date: Distribution Date

End   Date: 2015-04-30 (Individual);  2015-10-31 (Call Centers)
    	
 
    	
Cost/Month:

No Charge
    	
 
    	
Recording and/or autoforwarding to be agreed upon by   the parties.

 

This Service is mirrored on Schedule B1 as #4.
    
	
5 2013/2014 Agilent Annual Giving
    	
 
    	
Provider   (From
    	
 
    	
Termination
    	
 
    	
Cost/Month:  
    	
 
    	
-As part of the Annual Giving
    

 

A-1-8

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(1)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
Campaign

 

Provide processing for the existing Calendar Year   2014 Agilent Giving Campaign through Agilent’s current 3rd party, JK Group.

 

Post Distribution Date, ARINSO will provide JK Group   with payroll deduction data from both Agilent and Keysight. JK Group will   continue to administer the giving campaign program.
    	
 
    	
Entity): Agilent

US

Giving Campaign Manager (Arlene Dickson, Cynthia   Johnson)

 

Recipient   (To Entity):  Keysight

US

Giving Campaign Manager (Judi Stoa, Terry Lincoln)

 

Svc Loc:

US
    	
 
    	
Trigger:

Terminates with the calendar year, and the end of the   calendar 2014 giving campaign.

 

-2 month notice from either party required to   terminate supply of or use of the service before the End Date.

 

Start   Date: Distribution Date

End   Date: 2014-12-31
    	
 
    	
No Charge
    	
 
    	
Campaign, employees are given the option to make a   charitable donation via payroll deduction. Payroll deductions are made on a   calendar year with payouts done on quarterly basis.

- At the end of each calendar quarter, JK Group   summarizes data received from ARINSO on payroll deductions for charitable   giving and submits an invoice to Agilent for verification and payment.

- Agilent wires money to a bank account that JK Group   has established on Agilent’s behalf for payouts to the organizations selected   by employees as part of the giving campaign.

-After August 1, 2014, there will be   cross-company support for the administration of the payroll deductions for   charitable giving. ARINSO will issue reports for Agilent and for Keysight   payroll deductions and submit to JK Group.

- JK Group will continue to administer the giving   campaign
    

 

A-1-9

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(1)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
program through the end of calendar 2014.  ‘-Vendor: The JK Group, Inc. — P.O. Box 7174, Princeton, NJ   08543-7174
    
	
6 Provide existing Company Cars

 

US Car Fleet.

Provide up to 300 cars used by Keysight employees   until the fleet roll-over occurs in the fall to avoid fees and disruption of   re-registering vehicles in Keysight’s name.

The Services Agreement is to enable Agilent to   recover any and all costs incurred by Agilent post Distribution Date in   relation to vehicles used by Keysight employees where ownership is retained   by Agilent. Could include, but not limited to, financing fees, charges from   GE, Peninsula Ford and Ford, accidents, repairs, fines, penalties, charges,   recalls, costs caused by delays in replacement vehicles etc.
    	
 
    	
Provider   (From Entity): Agilent

US

Amercas WPS

Manager - Agilent

(Johanna Lacambra)

 

Recipient   (To Entity):  Keysight  US  Americas WPS Manager - Keysight   (Tony McCormick)

 

Svc Loc:

US
    	
 
    	
Termination   Trigger:

Termination trigger is when all cars have been   returned to Ford and final invoices and charges are settled.

 

-6 month notice from either party required to   terminate supply of or use of the service before the End Date.

 

Start   Date: Distribution Date

End   Date: 2015-04-30
    	
 
    	
Fee   Type: Transaction fee based actual   costs.

 

Cost   Basis: Recovery at cost of all car   fleet costs incurred by Agilent in relation to the Keysight cars retained by   Agilent post Distribution Date, plus 5% administration fee

 

Cost/Month:  See Note
    	
 
    	
The exact number of cars will not be known until the Distribution   Date due to volatility in Ford delivery schedule.

The intent of the Services Agreementis to pass   through all costs to Keysight to achieve the same financial result as if the   cars were in the name of Keysight from the Distribution Date.

Liability concerns are dealt with in the Separation   and Distribution Agreement.
    
	
7 Provide cross-company access to 
    	
 
    	
Provider   (From 
    	
 
    	
Termination   
    	
 
    	
Cost/Month:  
    	
 
    	
·             Cross-company Access — 
    

 

A-1-10

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(1)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
ERP, Boundary Applications, and other Business-Owned   Applications

 

This service provides for cross-company access to the   major enterprise systems (Oracle, Siebel, and other systems connected to   these) and certain other applications during the period of time Agilent and   Keysight systems share the same Oracle instance.

 

Financial Data

All Agilent and Keysight employees/contractors will   retain their current cross-company WRITE access to applications through the   completion of the Month-End Close of the calendar month immediately preceding   the month in which the Distribution Date occurs (MEC).

 

After the MEC is complete, only Agilent and Keysight   employees/contractors who require cross-company WRITE access to applications   to perform the required duties of their roles will retain such access as   defined below:

 

Cross-company WRITE access will be limited for   applications where possible.
    	
 
    	
Entity): Agilent

Scope: World-wide

Agilent Corporate Controller (Solange Glaize)

 

Recipient   (To Entity):

Keysight

Scope: World-wide

Keysight Corporate Controller (John Skinner)

 

Svc Loc:

Multiple
    	
 
    	
Trigger:

Simultaneous with termination of IT Separation and   Support Services (1 above)

 

-6 month notice from either party required to   terminate supply of or use of the service before the End Date.

 

Start   Date: Distribution Date

End   Date: 2015-05-15
    	
 
    	
No Charge
    	
 
    	
Access to applications that allows an   employee/contractor of one company to access another company’s data — i.e.   Agilent employees accessing Keysight data or Keysight employees accessing   Agilent data

·                  WRITE Access — Access that allows an employee/contractor to change data   in an application.

·                  Phase 2 Separation - The final physical separation of Agilent and   Keysight IT environments and the successful completion of the stabilization   period.

 

·                  Agilent and Keysight will continue to follow current approval and access   granting processes.

·                  Agilent and Keysight will regularly monitor reports listing finance   employees/contractors who have WRITE and READ or READ Only access to   applications.  Those identified
    

 

A-1-11

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(1)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
Categories of employees/contractors who will retain   or be granted cross-company WRITE access to applications through Phase 2   Separation include:

·                  Those performing activities necessary to support and complete the Phase   2 Separation including Distribution Day and the Physical Separation of ERP’s   and Boundary Applications

·                  Those whose responsibilities are ledger based therefore cannot be   restricted by business (primarily GAR;    CCO)

·                  Those booking entries in consolidation ledgers (99xx ledgers) —   (primarily WWCA;  EFR; EFP&A)

·                  Those who must access applications where access cannot be limited by   company

 

Where restriction of cross company access does not   impair an employee/contractor’s ability to perform the duties of their job,   such access will be removed.

 

Customer Master Data

For Customer Master Data Management, OU/Org specific   information will be managed by each company independently.
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
as not requiring such access will have such access   terminated.  Where monitoring is not   possible, cross-company WRITE access for Keysight employees will be revoked.

·                  For customer master data:

1.              No changes will be made by either company to Customer header information   in terms of data standards.

2.              No mass inactivation for Contact/Customer header information can be   performed by either Keysight or Agilent until separation with the exception   of the Dormancy Process. The Dormancy Process will continue as today,   informing Agilent upfront on the accounts marked for inactivation.

 

NOTE: This service is mirrored in Schedule B1 as #4.
    

 

A-1-12

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(1)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
Non-OU specific information will continue to be   shared until final system separation. 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

A-1-13

 

Schedule A-2
 Agilent Long-Term Services

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(2)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
1 Vietnam Business Development

 

-Provide business development services to Keysight in   Vietnam

a) 3 Employees to do Service and Support through 31   Dec 2014

 

b) 4 Employees to do Business and Application   Development through 31 Dec 2015 or when the Keysight Vietnam branch offices   are set up (whichever comes first).

-Service level will be similar to that currently   provided.

-Service includes administrative and facilities   support for the individuals performing these services.
    	
 
    	
Provider   (From Entity): Agilent

Vietnam

Agilent Vietnam Service Manager (Lam Thanh Trung)

 

Recipient   (To Entity):

Keysight

Singapore

Keysight General Manager, Southeast Asia (Lawrence   Liu)

 

Svc Loc:

Vietnam
    	
 
    	
Termination   Trigger:

Service terminates when Keysight is able to implement   these services directly, December 2015 or earlier.

 

-6 month notice from either party required to   terminate supply of or use of the service before the End Date.

 

Start   Date: Distribution Date

End   Date: 2015-12-31
    	
 
    	
Fee   Type: Fixed

 

Cost   Basis: Payroll, Taxes, and Benefits   plus overhead to cover facilities and IT plus 5% administration fee

 

Cost/Month:

$35k/month 
    	
 
    	
Requires at least 12 months after Singapore Legal   Entity is active to establish the Vietnam branch office.

 

Employees will need remote access to the Keysight   network.

 
    
	
2 Santa Clara - Agilent Hardware Test
    	
 
    	
Provider   (From 
    	
 
    	
Termination   
    	
 
    	
Fee   Type: 
    	
 
    	
Service Level: Provide testing, test
    

 

(2)  Termination Date is the End Date specified.  Unless otherwise noted, if a trigger is specified, the service will terminate on the earliest of satisfactory completion of the trigger and the end date as agreed by both parties.

 

A-2-1

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(2)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
Center

-Compliance testing for Safety, EMC and Environmental   Standards

-Preparation of test results, test reports and   compliance documents (Product safety, regulatory, & environmental   test & compliance services)

-Usage of test facilities for self testing
    	
 
    	
Entity): Agilent

US

Agilent Qual/Reg/Med Affairs Manager (Al Rego), Santa   Clara Hardware Test Center manager (Dennis Chamberlain)

 

Recipient   (To Entity):

Keysight

US

NSSD Optics & Laser OF Manager (Ron   Dickson),

NSSD Eng Services Manager (Matt Bigham)

 

Svc Loc:

Santa Clara, CA
    	
 
    	
Trigger:

-Service length, 2 years

-6 month notice from either party required to   terminate supply of or use of the service ahead of End Date

 

Start   Date: Distribution Date

End   Date: 2016-10-31
    	
 
    	
Fixed

 

Cost   Basis: Annual retainer, based on   the fully-loaded cost of the facility and the percentage of use by Keysight,   negotiated by fiscal year, billed monthly.    Includes cost plus 5% administration fee.

 

Cost/Month: First year   costs are estimated to be $210K annually which   will be paid in equal monthly increments 
    	
 
    	
results and test reports according to international   standards; provide the services in the agreed timeframe; Execute Account   Management meetings 1-2 times per year for the purpose of retrospective and   mid-term planning; Execute Project meetings as applicable for the purpose of   short-term project planning.

 

Pricing updated annually based on current fully   loaded costs plus appropriate markup.
    

 

A-2-2

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(2)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
3 Little Falls Hardware Test Center

-Compliance Testing for Safety, EMC and Environmental   Standards

-Preparation of compliance documents for the CSA certification

-Usage of test facilities for self testing

 
    	
 
    	
Provider   (From Entity): Agilent

US

Agilent Little Falls Site Quality Engineer (Joe Wyan)

 

Recipient   (To Entity):

Keysight

US

Keysight Electronic Test Division Quality Manager (Ed   Elowson)

 

Svc Loc:

Little Falls, DE
    	
 
    	
Termination   Trigger:

-Service length, 2 years

-6 month notice from either party required to   terminate supply of or use of the service ahead of End Date

 

Start   Date: Distribution Date

End   Date: 2016-10-31
    	
 
    	
Fee   Type: Fixed

 

Cost   Basis:

Annual retainer, based on the fully-loaded cost of   the facility and the percentage of use by Keysight, negotiated by fiscal   year, billed monthly.  Includes cost   plus 5% administration fee.

 

Cost/Month: First year   costs are estimated to be $24K annually which   will be paid in equal monthly 
    	
 
    	
Pricing updated annually based on current fully   loaded costs plus appropriate markup. 
    

 

A-2-3

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(2)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
increments
    	
 
    	
 
    
	
4 Event Reporter

 

-Retransmit Event Reporter events received through   the Agilent.com domain to the Keysight.com domain.  All events will be mirrored.  Keysight will be responsible for separating   and loggin Keysight-intended messages.

 
    	
 
    	
Provider   (From Entity): Agilent Colorado Springs

US

Agilent Network

Services Manager

(Mike Schicktanz); Arjen VanNoppen

 

Recipient   (To Entity):

Keysight IT, Colorado Springs

US

Keysight Network Services Manager (); Rick Haugen

 

Svc Loc:

Colorado Springs
    	
 
    	
Termination   Trigger:

No Trigger event.

 

May not be terminated before the End Date   without consent.

 

Start   Date: Distribution Date

End   Date: 2021-10-31
    	
 
    	
Cost/Month:

No Charge
    	
 
    	
The solution architecture leverages  existing Agilent’s jumpstation architecture   that is currently the “end point” for an estimated 750,000 Agilent software   seats.  This service is necessary   because it will take time to update Keysight client installations with a   Keysight specific jumpstation URL’s.    The total application traffic is about 7000 hits per year.  The usage of the transfer mechanism between   Agilent and Keysight is expected to diminish over time as Keysight products   are discontinued or updated to the Keysight specific jumpstation URL.   Engineering has agreed that if traffic   still exists at the termination of this agreement would contain information   from software so old, that it would be valueless.
    
	
5 Agilent  to   Keysight web cross linkages and JumpStation

 

Agilent will provide the following web linkages from   the Agilent.com website to
    	
 
    	
Provider   (From Entity): Agilent

Web

US

Agilent Customer 
    	
 
    	
Termination   Trigger:

The earlier of the End Dates specified for each   individual 
    	
 
    	
Cost/Month: No Charge
    	
 
    	
-Jumpstation: Programmatic redirect e.g.   www.agilent.com/find/xxx is automatically redirected by Agilent to 
    

 

A-2-4

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(2)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
the Keysight.com website:

·                  Agilent.com Home Page Hero Image on the seventh spot of the Hero   section

·                  Agilent.com Home Page Keysight Banner below the Hero section, a   highly visible banner and message, and a link to the Keysight.com home page.

·                  Agilent.com Mega Menu fly-out links in the Product and the Services and   Support sections of the site-wide navigation fly-out.

·                  Agilent.com Search:

·                  A clear, visible static text message located above the fold on the   search results page.

·                  Agilent search to return a unique, predefined Keysight search result   link for all predefined Keysight keywords (mostly model number and exclusive   Test and Measurement terms)

·                  Agilent.com link to the Keysight.com home page on the standard   site-wide footer section

·                  Domain & Link continuity — DNS aliasing for approximately 150   domains

·                  Domain & Link continuity — 
    	
 
    	
Website Managers (Mike Mihojevich, John Roberts)

 

Recipient   (To Entity):

Keysight Web

US

Keysight Customer Website Manager (Carl Daw)

 

Svc Loc:

US
    	
 
    	
service listed below and the satisfactory completion   of the metrics listed for each service.

 

May not be terminated before the Termination   Trigger above without consent.

 

Start   Date: Distribution Date

End   Date: 2021-07-31 for the longest service

 

Hero Image: 2014-11-30; fixed date, no metrics   required

 

Keysight Banner:    2015-07-31 or when customer usage falls to 10% of established   September 2014
    	
 
    	
 
    	
 
    	
www.keysight.com/find/xxx

-Hero Images: One of the 7 images that cycles at the   top of the page, and its menu button

-Keysight Banner: The full-width banner with the   Keysight logo below the Hero Images.

-Product Flyout:    The flyout pages that shows when “Products” is clicked in the   menu.  This will contain one link to   Keysight.

-Search: Support to search for Keysight products.

Note: This service is mirrored on Schedule B2 as #10.
    

 

A-2-5

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(2)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
Jumpstation/URL continuity

·                  Continuity implemented to point Jumpstations/URLS to the same Keysight   rewrite machine.

·                  Continuity implemented for all /find, /see, /comms jumpstations

·                  Continuity implemented for approximately 150 /go jumpstations reviewed   and approve by both companies.

·                  Continuity for a limited list of URLs agreed to by both companies.
    	
 
    	
 
    	
 
    	
baseline

 

Mega Menu Fly-out: 2016-07-31 or when customer usage   falls to 10% of established September 2014 baseline

 

Search: 2017-07-31 or when customer usage falls to   10% of established September 2014 baseline

 

Footer Link: 2016-07-31 or when customer usage falls   to 10% of established September 2014 baseline

 

All Domain & Link Continuity: 2021-07-31;   fixed date, no metrics required
    	
 
    	
 
    	
 
    	
 
    

 

A-2-6

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(2)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
6 Administration of Non-Transferrable Commerical and Government Invoices, Orders, and   Contracts

 

Provide the administrative processes (Order Management, Supply Chain,   Trade Shipment and Logistics, Invoicing, Collections, and Financial   Accounting) in support of business belonging to Keysight that cannot be   immediately assigned.

 

This service implements both contracts administration   and the Interim State processes known as:

-                    Invoice Refusal

-                    Order Refusal

-                    Offer Refusal

 

- For unassignable contracts, Agilent must honor all   obligations included in each Contract and PO that is not allowed to be   transferred

- Agilent will subcontract Keysight to provide this   service.

- Keysight maintains the warranty liability
    	
 
    	
Provider   (From Entity): Agilent

Agilent Field Operations and Contracts Managers (Reed   Breland, Andrea Holmes)

 

Recipient   (To Entity):

Keysight

Keysight Field Operations and Contracts Managers   (Dave Sawtelle, David Propp)

 

Svc Loc:

Multiple locations
    	
 
    	
Termination   Trigger:

-This service terminates once the Contracts / POs are   invoiced and collected.

 

-6 month notice from either party required to   terminate supply of or use of the service ahead of End Date

 

Start   Date: Distribution Date

End   Date: 2015-10-31
    	
 
    	
Fee   Type: Transaction

 

Cost   Basis: -

5% administration fee attached to each order processed.

 

Cost/Month:

Monthly cost determined by the order flow.
    	
 
    	
- Manufacturing , Delivering, and Invoicing and   Collection of Agilent products ordered through Contracts / POs placed to   Agilent that are not transferred to Keysight (Customer does not accept to   transfer the Contract / PO)

-Closed Contracts / POs already delivered, invoiced   and collected that are under 3-5 years warranty

 

Administration fee implemented through an equivalent   discount applied to orders that Agilent places on Keysight to fullfill the   service.
    
	
7 Webex Recordings

 

-In the event that Cisco is not able to provide a   utility to migrate certain 
    	
 
    	
Provider   (From Entity): Agilent - IT

Global

IT - End User 
    	
 
    	
Termination   Trigger:

-Successful migration of the 
    	
 
    	
Cost/Month: No Charge
    	
 
    	
This service is limited to a specified list of   <number of recordings> session recordings, to be determined.
    

 

A-2-7

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(2)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
recorded webex sessions from the Agilent webex Site   to the Keysight webex Site, Agilent will continue to make those recordings   available on the Agilent Site.
    	
 
    	
Computing Manager (Patrick Fleig)

 

Recipient   (To Entity):

Keysight - IT

Global

VP Information Technology  (Chee-beng Lim)

 

Svc Loc:

Global
    	
 
    	
listed recordings to the Keysight Webex Site (or   other repository) or 1 year from the Start Date.

 

-6 month notice from either party required to   terminate supply of or use of the service ahead of End Date

 

Start   Date: Distribution Date

End   Date: 2015-10-31
    	
 
    	
 
    	
 
    	
 
    

 

A-2-8

 

Schedule B-1
 Keysight Short-Term Services

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(3)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
1 External Temporary Workers for Phase 2

 

Keysight will provide temporary resources, mainly in   the CCC and OF, to backfill and free up the knowledge experts related to   “Design, testing, implementing and stabilizing the business & IT   application”. These resources will do administrative work and handle customer   interactions until such time as the design, testing, implementing, and   stabilization for Phase 2 is complete.
    	
 
    	
Provider   (From Entity): Keysight

US

VP Corporate Services (Hamish Gray)

 

Recipient   (To Entity):

Agilent

US

IT - Application Services Manager (Suresh   Vaidyanathan)

 

Svc Loc:

Multiple
    	
 
    	
Termination   Trigger:

This service terminates with IT Separation and   Support Services, Schedule A1, #1.

 

-3 month notice from either party required to   terminate supply of or use of the service before the End Date.

 

Start   Date: Distribution Date

End   Date: 2015-05-15
    	
 
    	
Fee   Type: Fixed

 

Cost   Basis:

Estimated cost of temporary resources plus 5% administration fee

 

Cost/Month: $375k / Month

($1.5 million total)
    	
 
    	
Agilent will pay for the temporary resources   supplied.
    
	
2 Business Communications Manager access
    	
 
    	
Provider   (From Entity): Keysight

Scope: Multiple call
    	
 
    	
Termination   Trigger:

Service terminates
    	
 
    	
Cost/Month: No Charge
    	
 
    	
-Both companies share the existing BCM environment   today

-Agilent is moving off and going to new 
    

 

(3)  Termination Date is the End Date specified.  Unless otherwise noted, if a trigger is specified, the service will terminate on the earliest of satisfactory completion of the trigger and the End Date as agreed by both parties.

 

B-1-1

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(3)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
Provide access to current Business Communications   Manager (BCM) call routing instances until the systems are separated.
    	
 
    	
center sites

IT Program Manager (Larry Lopez)

 

Recipient   (To Entity):

Agilent

Scope: Multiple call center sites

Field Operations Manager (Reed Breland)

 

Svc Loc:

Multiple
    	
 
    	
when the last remaining shared call center BCM   instance is separated.

 

-3 month notice from either party required to   terminate supply of or use of the service before the End Date.

 

Start   Date: Distribution Date

End   Date: 2015-01-31

Extendable by one month to 2015-02-28 if Agilent EMEA deployment of   BCM slips off schedule.
    	
 
    	
 
    	
 
    	
environments in Singapore and Germany

-Deployment dates anticipated:

·                  SAPK (month in which Distribution Date occurs)

·                  India (month following the month in which the Distribution Date occurs)

·                  EMEA (two months following the month in which the Distribution Date   occurs)
    
	
3 Changed phone number recording

 

—Provide a new-number referral recording and/or autoforward calls for   customer facing employees (as identified by both companies) whose numbers are   changed to the correct company for up to six
    	
 
    	
Provider   (From Entity): Keysight (Scope: Global)

US

Keysight Network Services Manager

 
    	
 
    	
Termination   Trigger:

The service for individuals will terminate on April 30,   2015 or whenever the Inter-
    	
 
    	
Cost/Month: No Charge
    	
 
    	
Recording and/or autofording to be agreed upon by the   parties.

 

This Service is mirrored on Schedule A1 as #5. 
    

 

B-1-2

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(3)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
months post change.

-Retain call center phone numbers that are changed   with recording for at least 12 months after change
    	
 
    	
Recipient   (To Entity):

Agilent (Scope: Global)

US

Agilent Field Operations (Reed Breeland)

 

Svc Loc:

US
    	
 
    	
Company network link (ICL) is cut between Agilent and   Keysight, whichever is first.

 

-6 month notice from either party required to   terminate supply of or use of the service before the End Date.

 

Start   Date: Distribution Date

End   Date: 2015-04-30 (Individual);

2015-10-31 (Call Centers)
    	
 
    	
 
    	
 
    	
 
    
	
4 Provide cross-company access to ERP, Boundary   Applications, and other Business-Owned Applications

 

This service provides for cross-company access to the   major enterprise systems (Oracle, Siebel, and other systems connected to   these) and certain other applications during the period of time Agilent and   Keysight systems share the same Oracle instance.

 
    	
 
    	
Provider   (From Entity):

Keysight

Scope: World-wide

Keysight Corporate Controller (John Skinner)

 

Recipient   (To Entity):

Agilent

 
    	
 
    	
Termination   Trigger:

Final system separation.

 

-6 month notice from either party required to terminate   supply of or use of the service before the End
    	
 
    	
Cost/Month: No Charge
    	
 
    	
·                  Cross-company Access — Access to applications that allows an   employee/contractor of one company to access another company’s data — i.e.   Agilent employees accessing Keysight data or Keysight employees accessing   Agilent data

·                  WRITE Access — Access that allows an employee/contractor to change data   in an application.
    

 

B-1-3

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(3)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
Financial Data

All Agilent and Keysight employees/contractors will   retain their current cross company WRITE access to applications through the   completion of the Month-End Close of the calendar month immediately preceding   the month in which the Distribution Date occurs (MEC).

 

After the MEC is complete, only Agilent and Keysight   employees/contractors who require cross-company WRITE access to applications   to perform the required duties of their roles will retain such access as   defined below:

 

Cross-company WRITE access will be limited for   applications where possible.    Categories of employees/contractors who will retain or be granted   cross-company WRITE access to applications through Phase 2 Separation   include:

·                  Those performing activities necessary to support and complete the Phase   2 Separation including Distribution Day and the Physical Separation of ERP’s   and Boundary Applications

·                  Those whose responsibilities are ledger based therefore cannot be   restricted by business (primarily GAR;    CCO)

 
    	
 
    	
Scope: World-wide

Agilent Corporate Controller (Solange Glaize)

 

Svc Loc:

Multiple
    	
 
    	
Date.

 

Start   Date: Distribution Date

End   Date: 2015-05-15
    	
 
    	
 
    	
 
    	
·                  Phase 2 Separation - The final physical separation of Agilent and   Keysight IT environments and the successful completion of the stabilization   period.

 

·                  Agilent and Keysight will continue to follow current approval and access   granting processes.

·                  Agilent and Keysight will regularly monitor reports listing finance   employees/contractors who have WRITE and READ or READ Only access to   applications.  Those identified as not   requiring such access will have such access terminated.  Where monitoring is not possible,   cross-company WRITE access for Keysight employees will be revoked.

·                  For customer master data:

3.              No changes will be made by either company to Customer header information   in terms of data standards.

4.              No mass inactivation for Contact/Customer header information can be   performed by either Keysight or Agilent until separation with the exception   of the Dormancy Process. The
    

 

B-1-4

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(3)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
·                  Those booking entries in consolidation ledgers (99xx ledgers) —   (primarily WWCA;  EFR; EFP&A)

·                  Those who must access applications where access cannot be limited by   company

 

Where restriction of cross company access does not   impair a finance employee/contractor’s ability to perform the duties of their   job, such access will be removed.

 

Customer Master Data

For Customer Master Data Management, OU/Org specific   information will be managed by each company independently.  Non-OU specific information will continue   to be shared until final system separation. 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Dormancy Process will continue as today, informing   Agilent upfront on the accounts marked for inactivation.

 

NOTE: This service is mirrored in Schedule A1 as #8.
    
	
5 Deliver Update to P500 Processor Board

 

The P500 is an instrument processessor board shared   by Agilent and Keysight.  This service   is to deliver engineering drawings and know-how to Agilent

-Fix the LAN PHY-layer end of life issue.

-Transfer hardware, firmware, knowledge to Agilent

-Keysight common parts designed into 
    	
 
    	
Supplier   (From Entity): EMG

US

Keysight TLO Common Development Engineering Services Manager (Ted   Lancaster)

 

Receiver   (To 
    	
 
    	
Termination   Trigger:

-Delivery of engineering CAD drawings and firmware

-6 month notice from either party required to   terminate supply of or use of the service 
    	
 
    	
Cost/Month: No Charge
    	
 
    	
·                  The P500 LAN PHY EOL replacement work will be done by a 3rd party.   Agreement by 3rd party to support Agilent’s updated board will occur before   split.

·                  Delivery of the design changes and testing will be done post-split at a   time to be agreed. This will need to be included in the SLA with the 3rd   party.

·                  The deliverables include: Updated 
    

 

B-1-5

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(3)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
LDA Instruments
    	
 
    	
Entity):

CAG

US

Luke Visser, Koji Ishizuka

Svc   Loc:

US
    	
 
    	
before the End Date.

 

Start   Date: Distribution Date

End   Date: 2015-12-31
    	
 
    	
 
    	
 
    	
P500 board with new LAN PHY and SW driver. Luke   Visser is responsible to put changes into Linux BSP.  SW changes for Koji Ishizuka’s team will be   delivered through the 3rd party. 
    

 

B-1-6

 

Schedule B-2
 Keysight Long-Term Services

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(4)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
1 Santa Clara - Model Shop services

 

Machining & building prototype parts and   modules in support of NPI’s. Services provided to users at the Santa Clara   Site.  Includes Model shop, mechanical   engineering capability.
    	
 
    	
Provider   (From Entity): Keysight Santa Clara Site

US

NSSD Eng Services Manager

(Matt Bigham)

 

Recipient   (To Entity):

Agilent Santa Clara Site

US

Multiple

 

Svc Loc:

Santa Clara, CA
    	
 
    	
Termination   Trigger:

-Service length, 2 years

-6 month notice from either party required to   terminate supply of or use of the service ahead of End Date

 

Start   Date: Distribution Date

End   Date: 2016-10-31
    	
 
    	
Fee   Type: Pay For Use

 

Cost   Basis: Pay for hours   used at the hourly rate applied to Keysight divisions plus 5% administration   fee

 

Cost/Month: Est. $80k per month
    	
 
    	
Billing rate usually stable for 2-3 years and is   competitive with outside shops 
    
	
2 Santa Clara - Electronic services

 

-Includes:

1) Surface Mount (SMT) prototyping services: fast   turn, small quantity Printed Circuit Assembly builds to verify designs. Most   components supplied. RoHS 
    	
 
    	
Provider   (From Entity): Keysight Santa Clara Site

US

NSSD Eng Services Manager

(Matt Bigham)
    	
 
    	
Termination   Trigger:

-Service length, 2 years

-6 month notice from either party required to 
    	
 
    	
Fee   Type: Pay For Use

 

Cost   Basis: Pay for hours   used at the hourly rate 
    	
 
    	
Existing design libraries used.
    

 

(4)  Termination Date is the End Date specified.  Unless otherwise noted, if a trigger is specified, the service will terminate on the earliest of satisfactory completion of the trigger and the End Date as agreed by both parties.

 

B-2-1

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(4)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
compliant. Services to be provided to users at Santa   Clara Site.

2) Printed Circuit Board Design and Layout services:   board layout utilizing Mentor with Valor verification and existing design   libraries. Services to be provided to users at Santa Clara Site.

 
    	
 
    	
Recipient   (To Entity):

Agilent Santa Clara Site

US

Multiple

 

Svc Loc:

Santa Clara, CA
    	
 
    	
terminate supply of or use of the service ahead of   End Date

 

Start   Date: Distribution Date

End   Date: 2016-10-31
    	
 
    	
applied to Keysight divisions plus 5% administration   fee

 

Cost/Month: Est. $30k per month
    	
 
    	
 
    
	
3 Santa Clara - Subscriptions

 

-Includes:

1) Engineering Shop: Equipment for use by engineers   when developing product designs.

2) Lab stock services: miscellaneous parts and   development supplies provided to users to save time and enable rapid   prototyping. Services provided to users at Santa Clara Site.
    	
 
    	
Provider   (From Entity): Keysight Santa Clara Site

US

NSSD Eng Services Manager

(Matt Bigham)

 

Recipient   (To Entity):

Agilent Santa Clara Site

US

Multiple

 

Svc Loc:

Santa Clara, CA
    	
 
    	
Termination   Trigger:

-Service length, 2 years

-6 month notice from either party required to   terminate supply of or use of the service ahead of End Date

 

Start   Date: Distribution Date

End   Date: 2016-10-31
    	
 
    	
Fee   Type: Subscription

 

Cost   Basis: Card access-based   subscription at the rate applied to Keysight divisions plus 5% administration   fee

 

Cost/Month: Est. $40k per month
    	
 
    	
1)             Access to equipment to machine parts.

2)             Access to common lab stock parts and supplies.  Non-stocked parts available upon request   from users, billed separately. 
    
	
4 Santa Clara - Mechanical design/drafting services

 

Documenting of new designs and 
    	
 
    	
Provider   (From Entity): Keysight Santa Clara Site

US
    	
 
    	
Termination   Trigger:

-Service length, 2 years
    	
 
    	
Fee   Type: Pay For Use

 

Cost   Basis:
    	
 
    	
Access to drawing files (e.g. Matrix One) is   required. 
    

 

B-2-2

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(4)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
modification of existing ones utilizing approved   2D/3D Software tools. Services to be provided to users at Santa Clara Site.
    	
 
    	
NSSD Eng Services Manager

(Matt Bigham)

 

Recipient   (To Entity):

Agilent Santa Clara Site

US

Multiple

 

Svc Loc:

Santa Clara, CA
    	
 
    	
-6 month notice from either party required to   terminate supply of or use of the service ahead of End Date

 

Start   Date: Distribution Date

End   Date: 2016-10-31
    	
 
    	
Pay for hours used at the hourly rate   applied to Keysight divisions plus 5% administration fee

 

Cost/Month: Est. $7.5k per month
    	
 
    	
 
    
	
5 Santa Clara - ESD auditing & consulting services

 

Conduct periodic Electrostatic Discharge audits &   identify problems requiring correction. Services provided to users at Santa   Clara Site.
    	
 
    	
Provider   (From Entity): Keysight Santa Clara Site

US

NSSD Eng Services Manager

(Matt Bigham)

 

Recipient   (To Entity):

Agilent Santa Clara Site

US

Multiple

 

Svc Loc:

Santa Clara, CA
    	
 
    	
Termination   Trigger:

-Service length, 2 years

-6 month notice from either party required to   terminate supply of or use of the service ahead of End Date

 

Start   Date: Distribution Date

End   Date: 2016-10-31
    	
 
    	
Fee   Type: Pay For Use

 

Cost   Basis: Annual charge based on   frequency of use and the fully-loaded cost of the service plus 5%   administration fee

 

Cost/Month: Est. $0
    	
 
    	
Research Products Division is the only current user   of the service.
    
	
6 Boeblingen - Keysight Hardware Test 
    	
 
    	
Provider   (From 
    	
 
    	
Termination   
    	
 
    	
Fee   Type: Pay 
    	
 
    	
 
    

 

B-2-3

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(4)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
Center

 

-Compliance Testing for Safety, EMC and Environmental   Standards

-Preparation of compliance documents for the CSA   certification, including hosting CSA witness testing (WMTC)

-Usage of test facilities for self testing

 
    	
 
    	
Entity): Keysight

Germany

HTC and Regulations Manager (Hans-Martin Fischer)

 

Recipient   (To Entity):

Agilent

Germany

Dieter Hass (Waldbronn); Carlo Dipietromaria (Torino)

 

Svc Loc:

Boeblingen
    	
 
    	
Trigger:

-Service length, 2 years

-6 month notice from either party required to   terminate supply of or use of the service ahead of End Date

 

Start   Date: Distribution Date

End   Date: 2016-10-31
    	
 
    	
for Use

 

Cost   Basis:

Hourly rate based on the fully-loaded hourly cost of the service plus   5% administrative fee

 

Cost/Month: -Compliance testing services:    EURO 190.00/hour

-Use of HTC facility:    EURO 110.00/hour

-Billed Monthly
    	
 
    	
 
    
	
7 Penang - Keysight Hardware Test Center

 

-Product Compliance testing for EMC, Environmental   and Safety according to International standards;

-Host CSA witness testing (WMTC);

-Preparation of associated product 
    	
 
    	
Provider   (From Entity): Keysight

Malaysia

Ong Keat Teong

 

Recipient   (To Entity):

Agilent

 
    	
 
    	
Termination   Trigger:

-Service length, 2 years

-6 month notice from either party required to   terminate supply of
    	
 
    	
Fee   Type: Fixed

 

Cost   Basis:

Annual rate based on the fully-loaded annual cost of 
    	
 
    	
For each Agilent request for services, Keysight will:

· Creat a project with   associated reference number to be used for future communication;

· Assign a project manager to   advise Agilent when the services will start and be completed.

 
    

 

B-2-4

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(4)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
compliance Technical Documentation

-Service level: The total guaranteed access to the   Keysight services under this agreement shall not exceed 424 hours per   calendar quarter.

-Provide mechanical measurement and calibration   services.

 

-Up to a maximum of two “Goldcard” requests are   available each calendar month which guarantee immediate access to Keysight   services to accommodate urgent requests from Agilent.
    	
 
    	
Malaysia

Janet Chua

 

Svc Loc:

Penang
    	
 
    	
or use of the service ahead of End Date

 

Start   Date: Distribution Date

End   Date: 2016-10-31
    	
 
    	
the service plus 5% administrative fee

 

Cost/Month: For FY15 $484k or $40.3k/month
    	
 
    	
· Provide the services in the   agreed timeframe.

· Provide the services   according to the agreed scope of work.

· Contact Agilent should any   issues arise during the delivery of the services.

· Provide testing, test   results and test reports according to international standards.

Execute Account Management meetings 1-2 times per   year for the purpose of retrospective and mid-term planning

 

Billing will be managed by Keysight WCSS.
    
	
8 Hachioji - Keysight Hardware Test Center

 

-Access to use Keysight Hachioji Hardware Test Center   walk-in chamber and EMI chamber.
    	
 
    	
Provider   (From Entity): Keysight

Japan

HSTD Quality Manager (Toshiyuki Kawaji)

 

Recipient   (To Entity):

Agilent

Japan

SPSD Quality Manager (Shunichiro Cho)

 

Svc Loc:

Hachioji
    	
 
    	
Termination   Trigger:

-Service length, 2 years

-6 month notice from either party required to   terminate supply of or use of the service ahead of End Date

 

Start   Date: Distribution Date

End   Date: 2016-10-31
    	
 
    	
Fee   Type: Fixed

 

Cost   Basis:

Annual rate based on the fully-loaded annual cost of the service plus   5% administrative fee

 

Cost/Month:

For FY15, estimated to be $708 per month
    	
 
    	
 
    

 

B-2-5

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(4)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
9 Printed Circuit Board Design

 

-Printed Circuit Board Design and Layout services in   China
    	
 
    	
Provider   (From Entity): Keysight Chengdu

China

Keysight CID General Manager (Brian LeMay)

 

Recipient   (To Entity):

LDA Shanghai

China

Agilent Labs R&D Manager   (Shi-Fen Xu)

 

Svc Loc:

Shanghai
    	
 
    	
Termination   Trigger:

-Service length, 2 years

-6 month notice from either party required to terminate   supply of or use of the service ahead of End Date

 

Start   Date: Distribution Date

End   Date: 2016-10-31
    	
 
    	
Fee   Type: Pay For Use

 

Cost   Basis: Pay for hours   used at the hourly rate applied to Keysight divisions plus 5% administration   fee

 

Cost/Month:

See Note
    	
 
    	
Access to common library parts is required.

 

Billed monthly as used.
    
	
10 Keysight to Agilent web cross linkage

 

Keysight will provide a link to the Agilent.com home   page on the Keysight.com standard site-wide footer section.
    	
 
    	
Provider   (From Entity): Keysight Web

US

Customer Website Manager

(Carl Daw)

 

Recipient   (To Entity):

Agilent Web

US

Customer Website 
    	
 
    	
Termination   Trigger:

The earlier of End Date below or when customer usage   falls to 10% of the established September 2014 baseline.

 

May not be terminated before the Termination 
    	
 
    	
Cost/Month: No Charge
    	
 
    	
Keysight will implement user click-through metrics   collection to establish a September, 2014 baseline and ongoing metrics to   determine service duration and termination trigger.

 

Note: This service is mirrored on Schedule A2 as #5.
    

 

B-2-6

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(4)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
 
    	
 
    	
Managers

(Mike Mihojevich, John Roberts)

 

Svc Loc:

US
    	
 
    	
Trigger above without consent.

 

Start   Date: Distribution Date

End   Date:

2016-07-31
    	
 
    	
 
    	
 
    	
 
    
	
11 VOSCAL Services to CAG

 

-The EMG (WCSS) VOSCAL team work with the Agilent   Chemical Aanalysis  Group in   Wilmington, DE, to provide a Volume On-site Calibration service twice per   year

-Separate service agreement with WCSS

-2 campaigns per year; first campaign under this   service will be January 2015
    	
 
    	
Provider   (From Entity): Keysight

US

Ann Marie Crosbie / Tom Ludden / Carol Fagnano

 

Recipient   (To Entity):

Agilent

US

Southeast Asia Manufacturing Manager (Chow   Woai-Sheng)

 

Svc Loc:

Mulitple
    	
 
    	
Termination   Trigger:

No Trigger Event

 

-6 month notice from either party required to   terminate supply of or use of the service ahead of End Date

 

Start   Date: Distribution Date

End   Date: 2016-10-31
    	
 
    	
Fee   Type: 6-12 month subscription

 

Cost   Basis: Cost will be computed as fully-loaded   Standard Cost plus 5% administrative fee.

 

Cost/Month:

Invoiced per VOSCAL campaign agreement.
    	
 
    	
Quoting and Invoicing will be based on standard Keysight (WCSS)   processes for VOSCAL campaigns.
    
	
12 Repair and Calibration services for Test &   Measurement testers (WCSS)

 

Repair and Calibration services for Test &   Measurement testers for Agilent through the Penang, Mulgrave, and Singapore
    	
 
    	
Provider   (From Entity): Keysight

Penang, Mulgrave, Singapore

Ann Marie Crosbie

 
    	
 
    	
Termination   Trigger:

End Date below.

 

-6 month notice from either party 
    	
 
    	
Fee   Type: Transaction

 

Cost   Basis: Cost will be computed as 
    	
 
    	
Use the standard repair and calibration prices for   each instrument.

·                  Mix of instruments includes a significant MV element in some locations,   so prices are on application and will depend on the
    

 

B-2-7

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(4)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
service centers, including the use of Infoline   services and management of any vendor services as required.
    	
 
    	
Recipient   (To Entity):

Agilent

Penang, Mulgrave, Singapore

Southeast Asia Manufacturing Manager (Chow   Woai-Sheng)

 

Svc Loc:

Multiple
    	
 
    	
required to terminate supply of or use of the service   ahead of End Date

 

Start   Date: Distribution Date

End   Date: 2016-10-31
    	
 
    	
fully-loaded Standard Cost plus 5% administrative fee.  .    Invoicing will be completed on a “list less 30% discount” basis to   approximate the above cost basis.

 

Cost/Month:

Invoicing will be on a per-incident/ Service Volume Agreement basis,   based on services requested
    	
 
    	
supplier carrying out the repair/calibration.

·                  A specific discount will be applied to each Service Order to bring the   final costs to a level approximating Cost+ approach.
    
	
14 ECAD support to R&D LSG (WAD, Germany)

 

Support Agilent engineers until new Agilent ECAD   engineer is capable.

Train newly hired ECAD engineer:  Determine training plan, set objectives
    	
 
    	
Provider   (From Entity): Keysight Germany

Bernd Maisenbacher

 

Recipient   (To Entity):
    	
 
    	
Termination   Trigger:

-Agreement from both parties that training is   complete requied to terminate earlier than End 
    	
 
    	
Fee   Type: Fixed

 

Cost   Basis: 20K$ / quarter

 

Cost/Month:  
    	
 
    	
- Ralf M. to provide deep level support and training   Agilent.

- Estimate training will take nine months from the   new ECAD engineer’s hire date.
    

 

B-2-8

 

	
Service Description
    	
 
    	
From Entity
    To Entity
    	
 
    	
Termination
   Trigger and End
   Date(4)
    	
 
    	
Service
   Charges and
   Method of
   Computation
    	
 
    	
Notes
    
	
and schedule, implement
    	
 
    	
Agilent IT / WAD

Germany

Vineet Gupta / Thomas Doerr

 

Svc Loc:

Germany
    	
 
    	
Date.

 

-6 month notice from either party required to   terminate supply of or use of the service ahead of End Date

 

Start   Date: Distribution Date

End   Date: 2015-07-31
    	
 
    	
6.6K$ / month 
    	
 
    	
 
    

 

B-2-9

 

Exhibit I
 Services Managers

 

1.              Initial Keysight Services Manager:  Hamish Gray

 

2.              Initial Agilent Services Manager:  Mark Allen

 

I-1Exhibit 10.2

 

TAX MATTERS AGREEMENT

 

DATED AS OF AUGUST 1, 2014

 

BY AND BETWEEN

 

AGILENT TECHNOLOGIES, INC.

 

AND

 

KEYSIGHT TECHNOLOGIES, INC.

 

 

TAX MATTERS AGREEMENT

 

This TAX MATTERS AGREEMENT (this “Agreement”) is entered into as of August 1, 2014 by and among AGILENT TECHNOLOGIES, INC., a Delaware corporation (“Agilent”), for itself and on behalf of each member of the Agilent Group (as defined below), and KEYSIGHT TECHNOLOGIES, INC., a Delaware corporation and a wholly owned subsidiary of Agilent (“Keysight”), for itself and on behalf of each member of the Keysight Group (as defined below).

 

RECITALS

 

WHEREAS, the board of directors of Agilent has determined that it is in the best interests of Agilent and its shareholders to create a new publicly traded company to operate the Keysight Business;

 

WHEREAS, the board of directors of Agilent and the board of directors of Keysight have approved the transfer of the Keysight Assets to Keysight and its Affiliates and the assumption by Keysight and its Affiliates of the Keysight Liabilities, all as more fully described in the Separation and Distribution Agreement and other documents;

 

WHEREAS, the board of directors of Agilent has further approved the distribution to the holders of the issued and outstanding common shares, $0.01 par value, of Agilent (the “Agilent Common Shares”) as of the close of business on the Record Date, by means of a pro rata distribution, of issued and outstanding shares of the common stock, 0.01 par value, of Keysight (the “Keysight Common Stock”), on the basis of a number of shares of Keysight Common Stock to be determined by resolution of the Board of Directors of Agilent, for every one (1) Agilent Common Share (the “Distribution”);

 

WHEREAS, for U.S. federal income tax purposes, the transfer of the Keysight Assets and Keysight Liabilities to Keysight and the Distribution, taken together, are intended to qualify as a tax-free transaction pursuant to Sections 355(a) and 368(a)(1)(D) of the Code; and

 

WHEREAS, as a result of the Distribution, Keysight and its subsidiaries will cease to be members of the affiliated group (as that term is defined in Section 1504 of the Code) of which Agilent is the common parent (the “Deconsolidation”); and

 

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 Distribution, and to provide for and agree upon other matters relating to Taxes;

 

NOW THEREFORE, in consideration of the mutual agreements contained herein, 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, and capitalized terms used but not otherwise defined herein shall have the meaning ascribed to them in the Separation and Distribution Agreement:

 

(a)                                 “Accounting Cutoff Date” means, with respect to Keysight, any date as of the end of which there is a closing of the financial accounting records for such entity.

 

(b)                                 “Active Trade or Business” means the active conduct (as defined in Section 355(b)(2) of the Code and the regulations thereunder) by Keysight and its “separate affiliated group” (as defined in Section 355(b)(3)(B) of the Code) of the Keysight Business as conducted immediately prior to the Distribution or by Agilent and its “separate affiliated group” (as defined in Section 355(b)(3)(B) of the Code) of the Agilent Business as conducted immediately prior to the Distribution.

 

 

(c)                                  “Adjustment Request” means any formal or informal claim or request filed with any Tax Authority, or with any administrative agency or court, for the adjustment, refund, or credit of Taxes, including (a) any amended Tax return claiming adjustment to the Taxes as reported on a Tax Return (including any adjustment described in Revenue Procedure 94-69, 1994-2 C.B. 804, or any successor revenue procedure or administrative practice) or, if applicable, as previously adjusted, (b) any claim for equitable recoupment or other offset, and (c) any claim for refund or credit of Taxes previously paid.

 

(d)                                 “Affiliate” (including, with a correlative meaning, “affiliated”) means, when used with respect to a specified Person, a Person that directly or indirectly, through one (1) or more intermediaries, controls, is controlled by or is under common control with such specified Person.  For the purpose of this definition, “control” (including with correlative meanings, “controlled by” and “under common control with”), when used with respect to any specified Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or other interests, by contract or otherwise.  It is expressly agreed that, from and after the Deconsolidation Date, no member of the Keysight Group shall be deemed to be an Affiliate of any member of the Agilent Group, and no member of the Agilent Group shall be deemed to be an Affiliate of any member of the Keysight Group.

 

(e)                                  “Agilent” shall have the meaning provided in the first sentence of this Agreement.

 

(f)                                    “Agilent Affiliated Group” shall have the meaning provided in the definition of “Agilent Federal Consolidated Income Tax Return.”

 

(g)                                 “Agilent Disqualifying Action” shall have the meaning set forth in Section 7.04(b) of this Agreement.

 

(h)                                 “Agilent Federal Consolidated Income Tax Return” means any United States federal Income Tax Return for the affiliated group (as that term is defined in Section 1504 of the Code and the regulations thereunder) of which Agilent is the common parent (the “Agilent Affiliated Group”) and includes any United States federal Income Tax Return for the affiliated group (as that term is defined in Section 1504 of the Code and the regulations thereunder) of which Dako Holding USA, Inc. is or was the common parent.

 

(i)                                    “Agilent Full Taxpayer” means the assumption that the Agilent Group (a) is subject to the highest marginal regular statutory income Tax rate, (b) has sufficient taxable income to permit the realization or receipt of the relevant Tax Benefit at the earliest possible time, (c) will not utilize any Agilent Tax Attribute other than a Tax Attribute arising from the adjustment at issue, and (d) is not subject to the alternative minimum tax.

 

(j)                                    “Agilent Group” means Agilent and its Affiliates, excluding any entity that is a member of the Keysight Group.

 

(k)                                  “Agilent Group Transaction Returns” shall have the meaning set forth in Section 4.05(b) of this Agreement.

 

(l)                                    “Agilent Separate Return” means any Separate Return of Agilent or any member of the Agilent Group.

 

2

 

(m)                               “Agilent State Combined Income Tax Return” means a consolidated, combined or unitary State Income Tax Return that is required under the Code or applicable Tax Law to be filed by Agilent or its Affiliates and actually includes, by election or otherwise, one or more members of the Agilent Group together with one or more members of the Keysight Group.

 

(n)                                  “Agreement” shall have the meaning provided in the first sentence of this Agreement.

 

(o)                                  “Business Day” means a day (other than Saturday or Sunday) on which banks are generally open in the State of New York, USA for ordinary business.

 

(p)                                 “Code” means the U.S. Internal Revenue Code of 1986, as amended.

 

(q)                                 “Company” means Agilent or Keysight, as the context requires.

 

(r)                                   “Company Indemnifying Party” shall have the meaning set forth in Section 5.02(b) of this Agreement.

 

(s)                                   “Contribution” means the contribution of assets, by Agilent itself directly to Keysight itself pursuant to Section 2.1(a) of the Separation and Distribution Agreement.

 

(t)                                    “Controlling Party” shall have the meaning set forth in Section 10.02(c) of this Agreement.

 

(u)                                 “Deconsolidation” shall have the meaning provided in the Recitals.

 

(v)                                  “Deconsolidation Date” means the last date on which Keysight qualifies as a member of the affiliated group (as defined in Section 1504 of the Code) of which Agilent is the common parent.

 

(w)                               “Distribution” shall have the meaning provided in the Recitals.

 

(x)                                  “DGCL” means the Delaware General Corporation Law.

 

(y)                                  “Federal Income Tax” means any Tax imposed by Subtitle A of the Code, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing.

 

(z)                                   “Fifty-Percent or Greater Interest” shall have the meaning ascribed to such term for purposes of Sections 355(d) and (e) of the Code.

 

(aa)                           “Final Determination” means the final resolution of liability for Tax, which resolution may be for a specific issue or adjustment or for a taxable period, (a) by IRS Form 870 or 870-AD (or any successor forms thereto), on the date of acceptance by or on behalf of the taxpayer, or by a comparable form under the laws of a State, local, or foreign taxing jurisdiction, except that a Form 870 or 870-AD or comparable form shall not constitute a Final Determination to the extent that it reserves (whether by its terms or by operation of law) the right of the taxpayer to file a claim for refund or the right of the Tax Authority to assert a further deficiency in respect of such issue or adjustment or for such taxable period (as the case may be); (b) by any audit assessment of taxes or other examination by any taxing authorities, proceeding or appeal of such proceedings relating to taxes whether administrative or judicial including proceedings related to competent authority determinations, or by a decision, judgment, decree, or other order by a court of competent jurisdiction, which has become final and unappealable; (c)

 

3

 

by a closing agreement or accepted offer in compromise under Sections 7121 or 7122 of the Code, or a comparable agreement under the laws of a State, local, or foreign taxing jurisdiction; (d) by any allowance of a refund or credit in respect of an overpayment of Tax, but only after the expiration of all periods during which such refund may be recovered (including by way of offset) by the jurisdiction imposing such Tax; (e) by a final settlement resulting from a treaty-based competent authority determination; or (f) by any other final disposition, including by reason of the expiration of the applicable statute of limitations or by mutual agreement of the parties.

 

(bb)                          “Foreign Income Tax” means any Tax imposed by any foreign country or any possession of the United States, or by any political subdivision of any foreign country or United States possession, which is an income tax as defined in Treasury Regulation Section 1.901-2, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing.

 

(cc)                             “Governmental Requirements” means the requirements imposed by any Governmental Authority to withhold, deduct, collect or pay over to such Governmental Authority any Taxes as well as any documentary evidence or certificates required by such Governmental Authority to substantiate, reduce or eliminate the amount of Taxes required to be withheld, deducted or collected and paid over.

 

(dd)                          “Group” means the Agilent Group or the Keysight Group, or both, as the context requires.

 

(ee)                            “Income Tax” means any Federal Income Tax, State Income Tax or Foreign Income Tax.

 

(ff)                                “Indemnitee” shall have the meaning set forth in Section 13.03 of this Agreement.

 

(gg)                          “Indemnitor” shall have the meaning set forth in Section 13.03 of this Agreement.

 

(hh)                           “IRS” means the United States Internal Revenue Service.

 

(ii)                                “Joint Tax Return” shall mean any Return of a member of the Agilent Group or the Keysight Group that is not a Separate Return (including, without limitation, any Agilent State Combined Income Tax Return and any Keysight State Combined Income Tax Return).

 

(jj)                                “Keysight” shall have the meaning provided in the first sentence of this Agreement.

 

(kk)                            “Keysight Board Certificate” shall have the meaning set forth in Section 7.02(e) of this Agreement.

 

(ll)                                “Keysight Capital Stock” means all classes or series of capital stock of Keysight, including (i) the Keysight Common Stock, (ii) all options, warrants and other rights to acquire such capital stock and (iii) all instruments properly treated as stock in Keysight for U.S. federal income tax purposes.

 

(mm)                      “Keysight Carried Item” means any net operating loss, net capital loss, excess tax credit, or other similar Tax item of any member of the Keysight Group which may or must be carried

 

4

 

from one Tax Period to another prior Tax Period, or carried from one Tax Period to another subsequent Tax Period, under the Code or other applicable Tax Law.

 

(nn)                          “Keysight Common Stock” has the meaning given to Keysight Common Stock in the Separation and Distribution Agreement.

 

(oo)                          “Keysight Disqualifying Action” shall have the meaning set forth in Section 7.04(a) of this Agreement.

 

(pp)                          “Keysight Federal Attribute” shall mean any Tax Attribute that is reported or shown, or is required to be reported or shown, on any Keysight Federal Consolidated Income Tax Return.

 

(qq)                          “Keysight Federal Consolidated Income Tax Return” shall mean any United States federal Income Tax Return for the affiliated group (as that term is defined in Section 1504 of the Code) of which Keysight is the common parent.

 

(rr)                              “Keysight Full Taxpayer” means the assumption that the Keysight Group (a) is subject to the highest marginal regular statutory income Tax rate that would be applicable to Keysight if it filed Tax Returns on a standalone basis, (b) has sufficient taxable income to permit the realization or receipt of the relevant Tax Benefit at the earliest possible time, (c) will not utilize any Keysight Tax Attribute other than a Tax Attribute arising from the adjustment at issue, and (d) is not subject to the alternative minimum tax.

 

(ss)                              “Keysight Group” means Keysight and its Affiliates, as determined immediately after the Distribution.

 

(tt)                                “Keysight Group Attributes” shall mean all Keysight Federal Attributes and all Keysight State Attributes.

 

(uu)                          “Keysight Separate Return” means any Separate Return of Keysight or any member of the Keysight Group.

 

(vv)                            “Keysight State Attribute” shall mean any Tax Attribute that is reported or shown, or is required to be reported or shown, on any Keysight state Income Tax Return.

 

(ww)                      “Keysight State Combined Income Tax Return” means a consolidated, combined or unitary State Income Tax Return that is required under the Code or applicable Tax Law to be filed by Keysight or its Affiliates and actually includes, by election or otherwise, one or more members of the Agilent Group together with one or more members of the Keysight Group.

 

(xx)                            “Non-Controlling Party” shall have the meaning set forth in Section 10.02(c) of this Agreement.

 

(yy)                            “Notified Action” shall have the meaning set forth in Section 7.03(a) of this Agreement.

 

(zz)                               “$150,000,000 Threshold” shall have the meaning set forth in Section 2.03(d).

 

(aaa)                   “Past Practices” shall have the meaning set forth in Section 4.05(a) of this Agreement.

 

(bbb)                    “Payor” shall have the meaning set forth in Section 5.02(a) of this Agreement.

 

5

 

(ccc)                      “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 or a governmental entity or any department, agency or political subdivision thereof, without regard to whether any entity is treated as disregarded for U.S. federal income tax purposes.

 

(ddd)                   “Post-Deconsolidation Period” means any Tax Period beginning after the Deconsolidation Date, and, in the case of any Straddle Period, the portion of such Straddle Period beginning the day after the Deconsolidation Date.

 

(eee)                      “Pre-Deconsolidation Period” means any Tax Period ending on or before the Deconsolidation Date, and, in the case of any Straddle Period, the portion of such Straddle Period ending on the Deconsolidation Date.

 

(fff)                            “Privilege” means any privilege that may be asserted under applicable law, including, any privilege arising under or relating to the attorney- client relationship (including the attorney-client and work product privileges), the accountant-client privilege and any privilege relating to internal evaluation processes.

 

(ggg)                   “Proposed Acquisition Transaction” means a transaction or series of transactions (or any agreement, understanding, arrangement or substantial negotiations, within the meaning of Section 355(e) of the Code and Treasury Regulation Section 1.355-7, or any other regulations promulgated thereunder, to enter into a transaction or series of transactions), whether such transaction is supported by Keysight management or shareholders, is a hostile acquisition, or otherwise, as a result of which Keysight would merge or consolidate with any other Person or as a result of which any Person or any group of related Persons would (directly or indirectly) acquire, or have the right to acquire, from Keysight and/or one or more holders of outstanding shares of Keysight Capital Stock, a number of shares of Keysight Capital Stock that would, when combined with any other changes in ownership of Keysight Capital Stock pertinent for purposes of Section 355(e) of the Code, comprise 40% or more of (A) the value of all outstanding shares of stock of Keysight as of the date of such transaction, or in the case of a series of transactions, the date of the last transaction of such series, or (B) the total combined voting power of all outstanding shares of voting stock of Keysight as of the date of such transaction, or in the case of a series of transactions, the date of the last transaction of such series. Notwithstanding the foregoing, a Proposed Acquisition Transaction shall not include (A) the adoption by Keysight of a shareholder rights plan or (B) issuances by Keysight that satisfy Safe Harbor VIII (relating to acquisitions in connection with a person’s performance of services) or Safe Harbor IX (relating to acquisitions by a retirement plan of an employer) of Treasury Regulation Section 1.355-7(d). For purposes of determining whether a transaction constitutes an indirect acquisition, any recapitalization resulting in a shift of voting power or any redemption of shares of stock shall be treated as an indirect acquisition of shares of stock by the exchanging or non-exchanging shareholders, as applicable. This definition and the application thereof are intended to monitor compliance with Section 355(e) of the Code and shall be interpreted accordingly. Any clarification of, or change in, the statute or regulations promulgated under Section 355(e) of the Code shall be incorporated in this definition and its interpretation.

 

(hhh)                   “Record Date” means the date determined by the board of directors of Agilent as the record date for the Distribution.

 

(iii)                            “Reorganization” means each and every transaction described in Schedule 2.1(a) of the Separation and Distribution Agreement, other than the Contribution and Distribution, as well as each and every other transaction included in any finalized step plans prepared by Baker & McKenzie LLP and that is contemplated as part of the separation of the Keysight Business from the Agilent Business.

 

6

 

(jjj)                            “Representation Letters” means the representation letters and any other materials (including, without limitation, the Ruling Request) delivered or deliverable by Agilent and others in connection with the rendering by Tax Advisors, and/or the issuance by the IRS, of the Tax Opinions/Rulings (including any representations made in connection with any finalized step plan prepared by Baker & McKenzie LLP that describes the proper Tax treatment of any Tax Item related to the Transactions).

 

(kkk)                      “Required Party” shall have the meaning set forth in Section 5.02(a) of this Agreement.

 

(lll)                            “Responsible Company” means, with respect to any Tax Return, the Company having responsibility for preparing and filing such Tax Return under this Agreement.

 

(mmm)             “Retention Date” shall have the meaning set forth in Section 9.01 of this Agreement.

 

(nnn)                   “Ruling” means any private letter ruling (and any supplemental private letter ruling, including without limitation, any Supplemental Ruling) issued by the IRS to Agilent in connection with the Transactions.

 

(ooo)                   “Ruling Documents” means the Ruling and the Ruling Request.

 

(ppp)                   “Ruling Request” means any letter filed by Agilent with the IRS requesting a ruling regarding certain tax consequences of the Transactions (including all attachments, exhibits, and other materials submitted with such ruling request letter) and any amendment or supplement to such ruling request letter.

 

(qqq)                    “Section 7.02(e) Acquisition Transaction” means any transaction or series of transactions that is not a Proposed Acquisition Transaction but would be a Proposed Acquisition Transaction if the percentage reflected in the definition of Proposed Acquisition Transaction were 25% instead of 40%.

 

(rrr)                         “Separate Return” means (a) in the case of any Tax Return of any member of the Keysight Group, any such Tax Return that does not include any member of the Agilent Group or any Tax Item of any member of the Agilent Group and (b) in the case of any Tax Return of any member of the Agilent Group, any such Tax Return that does not include any member of the Keysight Group or any Tax Item of any member of the Keysight Group.

 

(sss)                         “Separation and Distribution Agreement” means the Separation and Distribution Agreement, as amended from time to time, by and among Agilent and Keysight dated as of August 1, 2014.

 

(ttt)                            “Separation Date” means the effective date of this Agreement.

 

(uuu)                    “Separation Period” means the period that begins on the Separation Date and ends on the Deconsolidation Date.

 

(vvv)                       “State Income Tax” means any Tax imposed by any State of the United States or the District of Columbia or by any political subdivision of any such State or the District of Columbia which is imposed on or measured by net income, including state and local franchise or similar Taxes

 

7

 

measured by net income, and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing.

 

(www)             “Straddle Period” means any Tax Period that begins on or before and ends after the Deconsolidation Date.

 

(xxx)                      “Supplemental Ruling” means any ruling issued by the IRS in connection with the spin-off other than a ruling in response to Agilent’s initial request for a private letter ruling.

 

(yyy)                      “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 tax (including any fee, assessment, or other charge in the nature of or in lieu of any tax) imposed by any governmental entity or political subdivision thereof (whether federal, state, local or foreign), and any interest, penalties, additions to tax, or additional amounts in respect of the foregoing.

 

(zzz)                         “Tax Attribute” shall mean a net operating loss, net capital loss, unused investment credit, unused foreign tax credit, excess charitable contribution, general business credit, the minimum tax credit, or any other Tax Item that could reduce a Tax.

 

(aaaa)            “Tax Authority” means, with respect to any Tax, the governmental entity or political subdivision (whether federal, state, local or foreign) thereof that imposes such Tax, and the agency (if any) charged with the collection of such Tax for such entity or subdivision.

 

(bbbb)            “Tax Benefit” means any refund, credit, or other reduction in otherwise required Tax payments  (determined on a “with and without” basis assuming the Keysight Group or Agilent Group, as the case may be, is a Keysight Full Taxpayer or an Agilent Full Taxpayer, respectively).

 

(cccc)                “Tax Contest” means an audit, review, examination, or any other administrative or judicial proceeding with the purpose or effect of redetermining Taxes (including any administrative or judicial review of any claim for refund) and includes any voluntary disclosure request or agreement, any competent authority request or proceeding, and any other proceeding as a result of which any redetermination of Taxes may be proposed or agreed.

 

(dddd)            “Tax Control” means the definition of “control” set forth in Section 368(c) of the Code (or in any successor statute or provision), as such definition may be amended from time to time.

 

(eeee)                “Tax Dispute” shall have the meaning set forth in Section 14 of this Agreement.

 

(ffff)                        “Tax-Free Status” means (i) the qualification of the Contribution and Distribution, taken together, each (a) as a reorganization described in Sections 355(a) and 368(a)(1)(D) of the Code, (b) as a transaction in which the stock distributed thereby is “qualified property” for purposes of Sections 355(d), 355(e) and 361(c) of the Code and (c) as a transaction in which Agilent, Keysight, and the shareholders of Agilent recognize no income or gain for U.S. federal income tax purposes pursuant to Sections 355, 361 and 1032 of the Code (except with respect to fractional shares), and (ii) the qualification of any other transaction contemplated by the Reorganization to be free from Tax, whether U.S. federal, state or local or foreign Tax, but only to the extent such transaction was intended by the parties to be free from such Tax as described in the Tax Opinions/Rulings.  Such term does not include, in the case of Agilent and Keysight, intercompany items or excess loss accounts taken into account pursuant to the Treasury Regulations promulgated pursuant to Section 1502 of the Code.

 

8

 

(gggg)            “Tax Item” means any item of income, gain, loss, deduction, credit, recapture of credit or any other item which increases or decreases Taxes paid or payable.

 

(hhhh)            “Tax Law” means the law of any governmental entity or political subdivision thereof relating to any Tax.

 

(iiii)                        “Tax Opinions/Rulings” means the opinion or opinions of Baker & McKenzie LLP deliverable to Agilent in connection with the Transactions (including any finalized step plans prepared by Baker & McKenzie LLP that describe the proper Tax treatment of the Tax Items related to the Transactions) and/or the Ruling or Rulings.

 

(jjjj)                        “Tax Period” means, with respect to any Tax, the period for which the Tax is reported as provided under the Code or other applicable Tax Law.

 

(kkkk)                “Tax Records” means any Tax Returns, Tax Return workpapers, documentation relating to any Tax Contests, and any other books of account or records (whether or not in written, electronic or other tangible or intangible forms and whether or not stored on electronic or any other medium) required to be maintained under the Code or other applicable Tax Laws or under any record retention agreement with any Tax Authority.

 

(llll)                        “Tax-Related Losses” means (i) all federal, state, local and foreign Taxes (including interest and penalties thereon) imposed pursuant to any settlement, Final Determination, judgment or otherwise; (ii) all accounting, legal and other professional fees, and court costs incurred in connection with such Taxes; and (iii) all costs, expenses and damages associated with stockholder litigation or controversies and any amount paid by Agilent (or any Agilent Affiliate) or Keysight (or any Keysight Affiliate) in respect of the liability of shareholders, whether paid to shareholders or to the IRS or any other Tax Authority, in each case, resulting from the failure of any of the Transactions to have Tax-Free Status.

 

(mmmm)    “Tax Return” or “Return” means any report of Taxes due, any claim for refund of Taxes paid, any information return with respect to Taxes, or any other similar report, statement, declaration, or document (including, without limitation, any documentation related to transfer pricing) required to be filed or submitted upon request under the Code or other Tax Law with or to any Tax Authority, including any attachments, exhibits, or other materials submitted with any of the foregoing, and including any amendments or supplements to any of the foregoing.

 

(nnnn)            “Third Party Indemnifying Party” shall have the meaning set forth in Section 5.02(b) of this Agreement.

 

(oooo)            “Transactions” means the Contribution, the Distribution and all other transactions contemplated by the Reorganization.

 

(pppp)            “Transaction Documents” shall have the meaning set forth in the Separation and Distribution Agreement.

 

(qqqq)            “Treasury Regulations” means the regulations promulgated from time to time under the Code as in effect for the relevant Tax Period.

 

(rrrr)                    “Unqualified Tax Opinion” means an unqualified “will” opinion of a Tax Advisor, which Tax Advisor is acceptable to Agilent (such acceptance not to be unreasonably withheld), on which Agilent may rely to the effect that a transaction will not affect the Tax-Free Status. Any such

 

9

 

opinion must assume that the Contribution and Distribution, taken together, as well as any transaction contemplated by the Reorganization, would have qualified for Tax-Free Status if the transaction in question did not occur.

 

Section 2.                                          Allocation of Tax Liabilities.

 

Section 2.01                            In General.

 

(a)                                 Agilent Liability.  Agilent shall be liable for, and shall indemnify and hold harmless the Keysight Group from and against any liability for, Taxes which are allocated to the Agilent Group under this Section 2.

 

(b)                                 Keysight Liability. Keysight shall be liable for, and shall indemnify and hold harmless the Agilent Group from and against any liability for, Taxes which are allocated to the Keysight Group under this Section 2.

 

(c)                                  Affiliates.  For avoidance of doubt, for purposes of this Section 2, (i) an Affiliate of Agilent that will not be an Affiliate of Agilent immediately after the Distribution shall not be treated as an Affiliate of Agilent immediately after the Separation Date, but instead as an Affiliate of Keysight, during the Separation Period, and (ii) an Affiliate of Keysight that will not be an Affiliate of Keysight immediately after the Distribution shall not be treated as an Affiliate of Keysight immediately after the Separation Date, but instead as an Affiliate of Agilent, during the Separation Period; provided, however, that Keysight Technologies (International) India Private Limited shall continue to be considered an Affiliate of Agilent until such time as the relevant Keysight Assets are transferred to it and the relevant Keysight Liabilities are assumed by it.

 

Section 2.02                            Allocation of Taxes. Except as provided in Section 2.03, all Taxes shall be allocated as follows:

 

(a)                                 Agilent Liability. For Tax Periods ending before, on, or after the Deconsolidation Date, Agilent and its Affiliates shall be responsible for any and all Taxes shown on any Tax Return which Agilent and its Affiliates are required, or reasonably determine they are required to file, under the Code or applicable Tax Law.

 

(b)                                 Keysight Liability. For Tax Periods ending before, on, or after the Deconsolidation Date, Keysight and its Affiliates shall be responsible for any and all Taxes shown on any Tax Return which Keysight and its Affiliates are required, or reasonably determine they are required to file, under the Code or applicable Tax Law.

 

Section 2.03                            Exceptions and Other Rules.

 

(a)                                 Keysight Liability. Keysight shall be liable for, and shall indemnify and hold harmless the Agilent Group from and against any liability for:

 

(i)                                     any Tax resulting from a breach by Keysight of any covenant in this Agreement, the Separation and Distribution Agreement or any other Transaction Documents; and

 

(ii)                                  any Tax-Related Losses for which Keysight is responsible pursuant to Section 7.04 of this Agreement.

 

in the case of each of (i) and (ii), such amounts to be calculated on the basis that each member of the Agilent Group is an Agilent Full Taxpayer.

 

10

 

(b)                                 Agilent Liability. Agilent shall be liable for, and shall indemnify and hold harmless the Keysight Group from and against any liability for:

 

(i)                                     Any Taxes (other than Taxes described in Section 2.03(a)) imposed by any Tax Authority on any member of the Agilent Group or the Keysight Group solely on the transfer of the Keysight Assets to Keysight and its Affiliates and the assumption by Keysight and its Affiliates of the Keysight Liabilities; for avoidance of doubt, any Taxes arising from the failure of a Transaction to qualify for Tax-Free Status (other than through the application of Section 7.04(c)) shall count toward the $150,000,000 Threshold in Section 2.03(d).;

 

(ii)                                  any Tax-Related Losses for which Agilent is responsible pursuant to Section 7.04 of this Agreement. and

 

(iii)                               any Tax resulting from a breach by Agilent of any covenant in this Agreement, the Separation and Distribution Agreement or any other Transaction Documents.

 

in the case of each of (i), (ii) and (iii), such amounts to be calculated on the basis that each member of the Keysight Group is a Keysight Full Taxpayer.

 

(c)                                  Additional Restrictions. Keysight agrees to make commercially reasonable efforts not to take any action after the Deconsolidation Date (provided, however, that in the case of a Separate Return, then after the Separation Date) that would adversely impact the tax liability of Agilent on or prior to the Deconsolidation Date. Agilent agrees to make commercially reasonable efforts not to take any action after the Deconsolidation Date  (provided, however, that in the case of a Separate Return, then after the Separation Date) that would adversely impact the tax liability of Keysight on or prior to the Deconsolidation Date.  For avoidance of doubt, such actions include, but are not limited to, any action or failure to act that would cause the recognition, recapture or recharacterization of gain or income pursuant to any agreement with, or ruling by, any Tax Authority or pursuant to any provision of the Code or applicable Tax Law.

 

(d)                                 Sharing of Liability for Certain Taxes.  Notwithstanding any provision in this Agreement or the Separation and Distribution Agreement to the contrary (other than Section 2.03(a) and Section 2.03(b) of this Agreement), if a Final Determination results in an increase in the amount of Taxes due with respect to any Tax Period ending on or before the Deconsolidation Date for which Agilent is liable, including any Taxes arising from the failure of a Transaction to qualify for Tax-Free Status, Agilent shall be liable for sixty-five percent (65%) of such Taxes and Keysight shall be liable for thirty-five percent (35%) of such Taxes; provided, however, that Keysight shall not be liable for its share of any such Taxes unless and until the amount of such Taxes exceeds, in the aggregate, one hundred and fifty million dollars ($150,000,000), exclusive of any increase in Taxes as a result of an Adjustment Request, in which case Keysight shall be liable for its share of Taxes only with respect such excess (the “$150,000,000 Threshold”); provided, further, however, that each party shall be solely liable for any Tax-Related Losses for which it is responsible pursuant to Section 7.04 of this Agreement (for avoidance of doubt, excluding Section 7.04(c)(i) thereof) and the Taxes giving rise to such Tax-Related Losses shall not be taken into account in determining whether the $150,000,000 Threshold has been met or exceeded under this Section 2.03(d) (even if reflected in an Adjustment Request). Agilent shall notify Keysight within thirty (30) days after each of one-third (1/3) of the $150,000,000 Threshold has been met, after two-thirds (2/3) of the $150,000,000 Threshold has been met, and after the $150,000,000 Threshold has been met or exceeded; provided, however, that the failure to provide any such notifications by Agilent shall not relieve Keysight of any liability of Taxes hereunder.  The $150,000,000 Threshold shall be increased by (i) 35% of any Tax refund (and any interest thereon) received by Agilent or any member of the Agilent Group from any Tax Authority attributable to any Tax period that includes the

 

11

 

Deconsolidation Date (ii) the amount of any other Tax Benefit (other than a Tax Refund) to the Agilent Group resulting from the use of any Keysight Group Attributes by Agilent or any member of the Agilent Group in any Tax period ending on, before or after the Deconsolidation Date, but only if such Keysight Group Attributes arose in a Tax period ending on or before the Deconsolidation Date.  Notwithstanding any provision in this Agreement to the contrary, any Taxes arising or resulting from, or incurred as a result of, any acquisition, or post-acquisition integration, of any Person by Agilent prior to the Deconsolidation Date where the fair market value of the consideration paid for such acquisition equaled or exceeded, or will equal or exceed, one billion dollars ($1,000,000,000) will not be taken into account for any purpose of this Section 2.03(d) and such Taxes will be borne solely by Agilent.

 

(e)                                  Except as provided in Section 7.04 and Section 2.03, any liability for Taxes which is asserted by any Tax Authority after the Deconsolidation Date shall be the sole responsibility of the party against which such liability is asserted notwithstanding the fact that such Tax Authority asserts that such liability relates to any Tax Period ending on or before the Deconsolidation Date.

 

Section 3.                                          Proration of Tax Items.

 

(a)                                 General Method of Proration. For Income Tax Purposes, Tax Items shall be apportioned between Pre-Deconsolidation Periods and Post-Deconsolidation Periods in accordance with the principles of Treasury Regulation Section 1.1502-76(b) or corresponding principles of any Income Tax Law as reasonably interpreted and applied by Agilent. If the Deconsolidation Date is not an Accounting Cutoff Date (and provided an election under Treasury Regulation Section 1.1502-76(b)(2)(ii)(D) is not made), the provisions of Treasury Regulation Section 1.1502-76(b)(2)(iii) will be applied to ratably allocate the items (other than extraordinary items) for the month which includes the Deconsolidation Date. Agilent shall be permitted to make an election under Treasury Regulation Section 1.1502-76(b)(2)(ii)(D) (relating to ratable allocation of a year’s items).

 

(b)                                 Transaction Treated as Extraordinary Item. In determining the apportionment of Tax Items between Pre-Deconsolidation Periods and Post-Deconsolidation Periods, any Tax Items relating to the Transactions shall be treated as extraordinary items described in Treasury Regulation Section 1.1502-76(b)(2)(ii)(C) and shall (to the extent occurring on or prior to the Deconsolidation Date) be allocated to Pre- Deconsolidation Periods, and any Taxes related to such items shall be treated under Treasury Regulation Section 1.1502-76(b)(2)(iv) as relating to such extraordinary item and shall (to the extent occurring on or prior to the Deconsolidation Date) be allocated to Pre-Deconsolidation Periods.

 

Section 4.                                          Preparation and Filing of Tax Returns.

 

Section 4.01                            General. Except as otherwise provided in this Section 4, Tax Returns shall be prepared and filed when due (including extensions) by the person obligated to file such Tax Returns under the Code or applicable Tax Law.

 

Section 4.02                            Agilent’s Responsibility. Agilent has the exclusive obligation and right to prepare and file, or to cause to be prepared and filed:

 

(a)                                 Agilent Federal Consolidated Income Tax Returns for any Tax Periods ending on, before or after the Deconsolidation Date;

 

(b)                                 Agilent State Combined Income Tax Returns and any other Joint Tax Returns which Agilent reasonably determines (subject to Section 4.04) are required to be filed, under the Code or applicable Tax Law, by Agilent or any of its Affiliates for Tax Periods ending on, before or after the Deconsolidation Date; provided, however, that Agilent shall use commercially reasonable efforts to provide written notice to Keysight of such determination to file a Agilent State Combined Income Tax

 

12

 

Return or other Joint Tax Return if such a Tax Return has never for such type of Tax in such jurisdiction been filed in a prior Tax Period; and

 

(c)                                  Agilent Separate Returns which Agilent reasonably determines (subject to Section 4.04) are required to be filed by the Company or any of its Affiliates for Tax Periods ending on, before or after the Deconsolidation Date.

 

Section 4.03                            Keysight’s Responsibility. Keysight has the exclusive obligation and right to prepare and file, or to cause to be prepared and filed:

 

(a)                                 Keysight Federal Consolidated Income Tax Returns for any Tax Periods ending after the Deconsolidation Date;

 

(b)                                 Keysight State Combined Income Tax Returns and any other Joint Tax Returns which Keysight reasonably determines (subject to Section 4.04) are required, under the Code or applicable Tax Law, to be filed by Keysight or any of its Affiliates for Tax Periods ending during the Separation Period or after the Deconsolidation Date; provided, however, that Keysight shall use commercially reasonable efforts to provide written notice to Agilent of such determination to file a Keysight State Combined Income Tax Return or other Joint Tax Return if such a Tax Return has never for such type of Tax in such jurisdiction been filed in a prior Tax Period; and

 

(c)                                  Keysight Separate Returns which Keysight reasonably determines (subject to Section 4.04) are required to be filed by Keysight or any of its Affiliates for Tax Periods ending during the Separation Period or after the Deconsolidation Date.

 

Section 4.04                            Cooperation. Agilent and Keysight shall cooperate in determining which of them or their respective Affiliates is required to file any Joint Tax Return or Separate Return under the Code or applicable Tax Law.   No later than ninety (90) days following the Deconsolidation Date, Agilent and Keysight agree to cooperate in developing a list of such Tax Returns, including identification of which party is required to (a) prepare and (b) file such Tax Returns.  The Companies shall provide, and shall cause their Affiliates to provide assistance and cooperation to one another in accordance with Section 8 with respect to the preparation and filing of Tax Returns, including providing information required to be provided in Section 8.  Any failure to so assist or cooperate pursuant to this Section 4 shall be resolved pursuant to the disagreement provisions of Section 14.  Keysight shall provide to Agilent such powers of attorney as may be necessary or expedient to allow Agilent to prepare and submit any Tax Return that Agilent is required to prepare and file under Section 4.  Agilent shall provide to Keysight such powers of attorney as may be necessary or expedient to allow Keysight to prepare and submit any Tax Return that Keysight is required to prepare and file under Section 4.

 

Section 4.05                            Tax Accounting Practices.

 

(a)                                 General Rule. Subject to Section 2.03(c), with respect to any Tax Return that Keysight has the obligation and right to prepare and file, or cause to be prepared and filed, under Section 4.03, for any Pre-Deconsolidation Period or any Straddle Period, except as provided in Section 4.05(b) such Tax Return shall be prepared in accordance with past practices, accounting methods, elections or conventions (“Past Practices”) used with respect to the Tax Returns in question (unless there is no reasonable basis for the use of such Past Practices or unless there is no adverse effect to Agilent), and to the extent any items are not covered by Past Practices (or in the event that there is no reasonable basis for the use of such Past Practices or there is no adverse effect to Agilent), in accordance with reasonable Tax accounting practices selected by Keysight. Except as provided in Section 4.05(b), Agilent shall prepare any Tax Return which it has the obligation and right to prepare and file, or reasonably determined it has

 

13

 

the obligation and right to prepare and file, under Section 4.02, in accordance with reasonable Tax accounting practices selected by Agilent subject to the restrictions contained in Section 2.03(c).

 

(b)                                 Reporting of Transactions. The Tax treatment reported on any Tax Return relating to the Transactions shall be consistent with the treatment thereof in the Ruling Requests and the Tax Opinions/Rulings, unless there is no reasonable basis for such Tax treatment. The Tax treatment reported on any Tax Return for which Keysight is the Responsible Company shall be consistent with that on any Tax Return filed or to be filed by Agilent or any member of the Agilent Group or caused to be filed by Agilent, in each case with respect to periods prior to the Deconsolidation Date or with respect to Straddle Periods (“Agilent Group Transaction Returns”), unless there is no reasonable basis for such Tax treatment. To the extent there is a Tax treatment relating to the Transactions which is not covered by the Ruling Requests, the Tax Opinions/Rulings or Agilent Group Transaction Returns, the Companies shall agree on the Tax treatment to be reported on any Tax Return. For this purpose, the Tax treatment shall be determined by the Responsible Company with respect to such Tax Return and shall be agreed to by the other Company unless either (i) there is no reasonable basis for such Tax treatment, or (ii) such Tax treatment is inconsistent with the Tax treatment contemplated in the Ruling Requests, the Tax Opinions/Rulings and/or the Agilent Group Transaction Returns. Such Tax Return shall be submitted for review pursuant to Section 4.06, and any dispute regarding such proper Tax treatment shall be referred for resolution pursuant to Section 14, sufficiently in advance of the filing date of such Tax Return (including extensions) to permit timely filing of the Tax Return.  In the event any dispute regarding such proper Tax treatment is not resolved in advance of the filing date of such Tax Return, the Responsible Company shall file such Tax Return by such filing date on the basis of its determination of the proper Tax treatment and the Responsible Company agrees to file an amended Tax Return if and when a materially different Tax treatment is finally resolved pursuant to Section 14.

 

(c)                                  Bonus Depreciation. If Agilent elects to take bonus depreciation under Section 168(k) of the Code for the Agilent Federal Consolidated Income Tax Return for its tax year ending October 31st, 2014, Keysight shall agree to elect such bonus depreciation for the Keysight Federal Consolidated Income Tax Return for the same tax year and the following tax year.

 

Section 4.06                            Right to Review Tax Returns. The Responsible Company with respect to any Tax Return shall make such Tax Return and related workpapers available for review by the other Company, if requested, to the extent (i) such Tax Return relates to Taxes for which the requesting party would reasonably be expected to be liable, (ii) such Tax Return relates to Taxes and the requesting party would reasonably be expected to be liable in whole or in part for any additional Taxes owing as a result of adjustments to the amount of such Taxes reported on such Tax Return, (iii) such Tax Return relates to Taxes for which the requesting party would reasonably be expected to have a claim for Tax Benefits under this Agreement, or (iv) the requesting party reasonably determines that it must inspect such Tax Return to confirm compliance with the terms of this Agreement. The Responsible Company shall use its reasonable best efforts to make such Tax Return available for review as required under this paragraph at least fifteen (15) days prior to the due date for filing of such Tax Return to provide the requesting party with a meaningful opportunity to analyze and comment on such Tax Return; provided, however, that the Responsible Company shall keep the other Company reasonably informed of the proposed treatment of any material Tax Items that are expected to have a Tax effect described in the first sentence of this Section 4.06 on the other Company and that are to be reported or shown on such Tax Returns within six (6) months after the close of the Tax period to which such Tax Returns relate.

 

Section 4.07                            Keysight Carrybacks, Carryforwards and Claims for Refund. Keysight hereby agrees that Agilent shall be entitled to determine in its sole discretion whether (x) any Adjustment Request with respect to any Joint Tax Return shall be filed to claim in any Pre- Deconsolidation Period

 

14

 

any Keysight Carried Item, (y) any available elections shall be made to waive the right to claim in any Pre-Deconsolidation Period with respect to any Joint Tax Return any Keysight Carried Item, and whether any affirmative election shall be made to claim any such Keysight Carried Item.

 

Section 4.08                            Apportionment of Earnings and Profits and Tax Attributes. Agilent shall in good faith advise Keysight as soon as reasonably practicable after the Distribution (and in any event no later than six (6) months after the close of the Tax period in which the Distribution occurs) in writing of the portion, if any, of any earnings and profits, Tax Attribute, overall foreign loss or other consolidated, combined or unitary attribute which Agilent determines shall be allocated or apportioned to the Keysight Group under applicable Tax law. Keysight and all members of the Keysight Group shall prepare all Tax Returns in accordance with such written notice. In the event of an adjustment to the earnings and profits, any Tax Attributes, overall foreign loss or other consolidated, combined or unitary attribute determined by Agilent, Agilent shall promptly notify Keysight in writing of such adjustment. For avoidance of doubt, Agilent shall not be liable to Keysight or any member of the Keysight Group for any failure of any determination under this Section 4.08 to be accurate under applicable Tax Law and regulations, provided such determination was made after reasonable investigation and was completed in good faith.

 

Section 5.                                          Tax Payments.

 

Section 5.01                            Payment of Separate Company Taxes. Each Company (or their respective Affiliates) shall pay, or shall cause to be paid, to the applicable Tax Authority when due all Taxes shown as due on any Tax Return it is required to file under Section 4 of this Agreement.

 

Section 5.02                            Indemnification Payments.

 

(a)                                 If any Company (the “Payor”) is required under applicable Tax Law to pay to a Tax Authority a Tax that another Company (the “Required Party”) is liable for under this Agreement, the Required Party shall reimburse the Payor within ten (10) Business Days of delivery by the Payor to the Required Party of an invoice for the amount due, accompanied by evidence of payment and a statement detailing the Taxes paid and describing in reasonable detail the particulars relating thereto.

 

(b)                                 If any Company (the “Third Party Indemnifying Party”) is required under the terms of an agreement to which it is a party (or with respect to which it has agreed to guarantee the obligations thereunder) to pay to a third party (other than the other Company) a Tax that another Company (the “Company Indemnifying Party”) is liable for under this Agreement, the Company Indemnifying Party shall reimburse the Third Party Indemnifying Party within ten (10) Business Days of delivery by the Third Party Indemnifying Party to the Company Indemnifying Party of an invoice for the amount due, accompanied by evidence of payment and a statement detailing the Taxes paid and describing in reasonable detail the particulars relating thereto.

 

(c)                                  All indemnification payments under this Agreement shall be made by Agilent directly to Keysight and by Keysight directly to Agilent; provided, however, that if the Companies mutually agree with respect to any such indemnification payment, any member of the Agilent Group, on the one hand, may make such indemnification payment to any member of the Keysight Group, on the other hand, and vice versa.

 

Section 6.                                          Tax Benefits.

 

Section 6.01                            Tax Benefits.

 

(a)                                 Agilent shall be entitled to any refund (and any interest thereon received from the applicable Tax Authority) of Taxes received by any member of the Agilent Group or the Keysight Group,

 

15

 

other than any refund to which Keysight is entitled pursuant to Section 6.01(b). Keysight shall not be entitled to any refund (or any interest thereon received from the applicable Tax Authority), except as set forth in Section 6.01(b). A Company receiving a refund to which another Company is entitled hereunder shall pay over such refund to such other Company within ten (10) Business Days after such refund is received.

 

(b)                                 Keysight and its Affiliates shall be entitled to retain any refund of Taxes (and any interest thereon) received from an applicable Tax Authority after the Separation Date and to which any member of the Keysight Group is entitled under applicable Tax Law.

 

(c)                                  Without prejudice to the provisos set forth in Sections 2.02 and 2.03, and except as set forth in this Section 6.01, Keysight shall also be entitled to receive payment from Agilent in respect of any Keysight Group Attributes which are utilized by Agilent or any member of the Agilent Group in any Tax period ending on, before or after the Deconsolidation Date to the extent the use of such Keysight Group Attributes result in a Tax Benefit to the Agilent Group, determined after the use of such Keysight Group Attributes in accordance with applicable Tax Law, but only if such Keysight Group Attributes arose in a Tax period of the Keysight Group ending after the Deconsolidation Date.

 

(d)                                 No later than ten (10) Business Days following the filing of any Tax Return in connection with which Agilent or any member of the Agilent Group utilizes a Keysight Group Attribute as described in Section 6.01(c), Agilent shall provide Keysight with a written calculation of the amount the Tax Benefit payable to Keysight by Agilent pursuant to this Section 6. In the event that Keysight disagrees with any such calculation described in this Section 6.01(d), Keysight shall so notify Agilent in writing within thirty (30) days of receiving the written calculation set forth above in this Section 6.01(d). Agilent and Keysight shall endeavor in good faith to resolve such disagreement, and, failing that, the amount payable under Section 6.01(c) shall be determined in accordance with the disagreement resolution provisions of Section 14 as promptly as practicable.

 

Section 6.02                            Agilent and Keysight Income Tax Deductions in Respect of Certain Equity Awards and Incentive Compensation.

 

(a)                                 Except as required by applicable Tax Law or otherwise agreed to by the parties, solely the member of the Group by which the relevant individual is currently employed at the time of the vesting, exercise, disqualifying disposition, payment or other relevant taxable event, as appropriate, in respect of the equity awards and other incentive compensation described in the Employee Matters Agreement, or, if such individual is not currently employed at such time by a member of the Group, the member of the Group by which the relevant individual was most recently employed, shall be entitled to claim, in a Post-Deconsolidation Period, any Income Tax deduction in respect of such equity awards and other incentive compensation on its respective Tax Return associated with such event.

 

(b)                                 With respect to the withholding and reporting responsibilities (including withholding taxes, remitting and W-2 or equivalent reporting), a party shall promptly notify the other party of any exercises or other taxable events by such notifying parties’ employees or directors that would result in a related deduction belonging to the other party, and unless otherwise required by applicable laws or otherwise agreed upon by the parties, in all events, the party entitled to the Income Tax deduction such party entitled to the deduction shall be responsible for the reporting and withholding obligations pertaining to such Income Tax deduction.

 

Section 7.                                          Tax-Free Status.

 

Section 7.01                            Tax Opinions/Rulings and Representation Letters. Each of Keysight and Agilent hereby represents and agrees that (A) it has examined the Tax Opinions/Rulings and the

 

16

 

Representation Letters prior to the date hereof and (B) subject to any qualifications therein, all facts contained in such Tax Opinions/Rulings or Representation Letters that concern or relate to such Company or any member of its Group is and, to the extent such facts relate to future events or circumstances, will be, true, correct and complete.

 

Section 7.02                            Restrictions on Agilent and Keysight.

 

(a)                                 Each of Agilent and Keysight agrees that it will not take or fail to take, or permit any of its respective Affiliates to take or fail to take, any action where such action or failure to act would be inconsistent with or cause to be untrue any material, information, covenant or representation in any Representation Letter or Tax Opinion/Ruling.  Each of Agilent and Keysight agrees that it will not take or fail to take, or permit any of its respective Affiliates to take or fail to take, any action (including any transactions with third parties) which (individually or in the aggregate) prevents or could reasonably be expected to prevent the Tax-Free Status of any of the Transactions, including, in the case of Keysight, issuing any Keysight Capital Stock that would prevent the Distribution from qualifying as a tax-free distribution within the meaning of Section 355 of the Code.

 

(b)                                 During the period from the date hereof until the completion of the Distribution, Keysight shall not take any action (including the issuance of Keysight Capital Stock) or permit any Keysight Affiliate directly or indirectly controlled by Keysight to take any action if, as a result of taking such action, Keysight could have a number of shares of Keysight Capital Stock (computed on a fully diluted basis or otherwise) issued and outstanding, including by way of the exercise of stock options (whether or not such stock options are currently exercisable) or the issuance of restricted stock, that could cause Agilent to cease to have Tax Control of Keysight.

 

(c)                                  Each of Agilent and Keysight agree that, from the date hereof until the first day after the two-year anniversary of the Deconsolidation Date, it and each of its Affiliates will (i) maintain its status as a company engaged in the Active Trade or Business for purposes of Section 355(b)(2) of the Code, and (ii) not engage in any transaction that would result in it ceasing to be a company engaged in the Active Trade or Business for purposes of Section 355(b)(2) of the Code, in each case, taking into account Section 355(b)(3) of the Code.

 

(d)                                 Keysight agrees that, from the date hereof until the first day after the two-year anniversary of the Deconsolidation Date, it will not (i) enter into any Proposed Acquisition Transaction or, to the extent Keysight has the right to prohibit any Proposed Acquisition Transaction, permit any Proposed Acquisition Transaction to occur (whether by (a) redeeming rights under a shareholder rights plan, (b) finding a tender offer to be a “permitted offer” under any such plan or otherwise causing any such plan to be inapplicable or neutralized with respect to any Proposed Acquisition Transaction, or (c) approving any Proposed Acquisition Transaction, whether for purposes of Section 203 of the DGCL or any similar corporate statute, any “fair price” or other provision of Keysight’s charter or bylaws or otherwise), (ii) merge or consolidate with any other Person or liquidate or partially liquidate, (iii) in a single transaction or series of transactions sell or transfer (other than sales or transfers of inventory in the ordinary course of business) all or substantially all of the assets that were transferred to Keysight pursuant to the Contribution or sell or transfer 60% or more of the gross assets of the Active Trade or Business or 60% or more of the consolidated gross assets of Keysight and its Affiliates (such percentages to be measured based on fair market value as of the Deconsolidation Date), (iv) redeem or otherwise repurchase (directly or through a Keysight Affiliate) any Keysight stock, or rights to acquire stock, except to the extent such repurchases satisfy Section 4.05(1)(b) of Revenue Procedure 96-30, 1996-1 C.B. 696 (as in effect prior to the amendment of such Revenue Procedure by Revenue Procedure 2003-48, 2003-2 C.B. 86), (v) amend its certificate of incorporation (or other organizational documents), or take any other action, whether through a stockholder vote or otherwise, affecting the voting rights of Keysight Capital

 

17

 

Stock (including, without limitation, through the conversion of one class of Keysight Capital Stock into another class of Keysight Capital Stock) or (vi) take any other action or actions (including any action or transaction that would be reasonably likely to be inconsistent with any representation made in the Representation Letters or the Tax Opinions/Rulings) which in the aggregate (and taking into account any other transactions described in this subparagraph (d)) would be reasonably likely to have the effect of causing or permitting one or more persons (whether or not acting in concert) to acquire directly or indirectly stock representing a Fifty-Percent or Greater Interest in Keysight, unless prior to taking any such action set forth in the foregoing clauses (i) through (vi), (A) Keysight shall have requested that Agilent obtain a Ruling in accordance with Section 7.03(b) and (d) of this Agreement to the effect that such transaction will not affect the Tax-Free Status and Agilent shall have received such a Ruling in form and substance satisfactory to Agilent in its sole and absolute discretion, which discretion shall be exercised in good faith solely to preserve the Tax-Free Status (and in determining whether a Ruling is satisfactory, Agilent may consider, among other factors, the appropriateness of any underlying assumptions and management’s representations made in connection with such Ruling), or (B) Keysight shall provide Agilent with an Unqualified Tax Opinion in form and substance satisfactory to Agilent in its sole and absolute discretion, which discretion shall be exercised in good faith solely to preserve the Tax-Free Status (and in determining whether an opinion is satisfactory, Agilent may consider, among other factors, the appropriateness of any underlying assumptions and management’s representations if used as a basis for the opinion and Agilent may determine that no opinion would be acceptable to Agilent) or (C) Agilent shall have waived the requirement to obtain such Ruling or Unqualified Tax Opinion.

 

(e)                                  If Keysight proposes to enter into any Section 7.02(e) Acquisition Transaction or, to the extent Keysight has the right to prohibit any Section 7.02(e) Acquisition Transaction, proposes to permit any Section 7.02(e) Acquisition Transaction to occur, in each case, during the period from the date hereof until the first day after the two-year anniversary of the Deconsolidation Date, Keysight shall provide Agilent, no later than ten (10) days following the signing of any written agreement with respect to the Section 7.02(e) Acquisition Transaction, with a written description of such transaction (including the type and amount of Keysight Capital Stock to be issued in such transaction) and a certificate of the Board of Directors of Keysight to the effect that the Section 7.02(e) Acquisition Transaction is not a Proposed Acquisition Transaction or any other transaction to which the requirements of Section 7.02(d) apply (a “Keysight Board Certificate”).

 

(f)                                    Distributions by Foreign Keysight Subsidiaries. Until January 1, 2015, Keysight shall neither cause nor permit any foreign subsidiary of Keysight to enter into any transaction or take any action that would be considered under the Code to constitute the declaration or payment of a dividend (including, without limitation, pursuant to Sections 302, 304, 964(e) or 1248 of the Code) without obtaining the prior written consent of Agilent (such prior written consent not to be unreasonably withheld).  Should the Reorganization be delayed for any reason, the parties shall adjust the date in the immediately preceding sentence to reasonably reflect such delay.

 

Section 7.03                            Procedures Regarding Opinions and Rulings.

 

(a)                                 If Keysight notifies Agilent that it desires to take one of the actions described in clauses (i) through (vi) of Section 7.02(d) (a “Notified Action”), Agilent and Keysight shall reasonably cooperate to attempt to obtain the Ruling or Unqualified Tax Opinion referred to in Section 7.02(d), unless Agilent shall have waived the requirement to obtain such Ruling or Unqualified Tax Opinion.

 

(b)                                 Rulings or Unqualified Tax Opinions at Keysight’s Request. Agilent agrees that at the reasonable request of Keysight pursuant to Section 7.02(d), Agilent shall cooperate with Keysight and use its reasonable best efforts to seek to obtain, as expeditiously as possible, a Ruling from the IRS or an Unqualified Tax Opinion for the purpose of permitting Keysight to take the Notified Action. Further,

 

18

 

in no event shall Agilent be required to file any Ruling Request under this Section 7.03(b) unless Keysight represents that (A) it has read the Ruling Request, and (B) all information and representations, if any, relating to any member of the Keysight Group, contained in the Ruling Request documents are (subject to any qualifications therein) true, correct and complete. Keysight shall reimburse Agilent for all reasonable costs and expenses incurred by the Agilent Group in obtaining a Ruling or Unqualified Tax Opinion requested by Keysight within ten (10) Business Days after receiving an invoice from Agilent therefor.

 

(c)                                  Rulings or Unqualified Tax Opinions at Agilent’s Request. Agilent shall have the right to obtain a Ruling or an Unqualified Tax Opinion at any time in its sole and absolute discretion. If Agilent determines to obtain a Ruling or an Unqualified Tax Opinion, Keysight shall (and shall cause each Affiliate of Keysight to) cooperate with Agilent and take any and all actions reasonably requested by Agilent in connection with obtaining the Ruling or Unqualified Tax Opinion (including, without limitation, by making any representation or covenant or providing any materials or information requested by the IRS or Tax Advisor; provided that Keysight shall not be required to make (or cause any Affiliate of Keysight to make) any representation or covenant that is inconsistent with historical facts or as to future matters or events over which it has no control). Except as provided in Section 7.03(b), Agilent shall bear its own costs and expenses in obtaining a Ruling or an Unqualified Tax Opinion requested by Agilent.  Agilent shall reimburse Keysight for all reasonable costs and expenses incurred by the Keysight Group in obtaining a Ruling or Unqualified Tax Opinion requested by Agilent within ten (10) Business Days after receiving an invoice from Keysight therefor.

 

(d)                                 Keysight hereby agrees that Agilent shall have sole and exclusive control over the process of obtaining any Ruling, and that only Agilent shall apply for a Ruling. In connection with obtaining a Ruling pursuant to Section 7.03(b), (A) Agilent shall keep Keysight informed in a timely manner of all material actions taken or proposed to be taken by Agilent in connection therewith; (B) Agilent shall (1) reasonably in advance of the submission of any Ruling Request documents provide Keysight with a draft copy thereof, (2) reasonably consider Keysight’s comments on such draft copy, and (3) provide Keysight with a final copy; and (C) Agilent shall provide Keysight with notice reasonably in advance of, and Keysight shall have the right to attend, any formally scheduled meetings with the IRS (subject to the approval of the IRS) that relate to such Ruling. Neither Keysight nor any Keysight Affiliate directly or indirectly controlled by Keysight shall seek any guidance from the IRS or any other Tax Authority (whether written, verbal or otherwise) at any time concerning the Transactions (including the impact of any transaction on the Transactions).

 

Section 7.04                            Liability for Tax-Related Losses.

 

(a)                                 Notwithstanding anything in this Agreement or the Separation and Distribution Agreement to the contrary, Keysight shall be responsible for, and shall indemnify and hold harmless Agilent and its Affiliates and each of their respective officers, directors and employees from and against, one hundred percent (100%) of any Tax-Related Losses that are attributable to or result from any one or more of the following: (A) the direct or indirect acquisition (other than pursuant to the Reorganization, the Contribution, or the Distribution) of all or a portion of Keysight’s stock and/or its or its Affiliates’ stock or assets by any means whatsoever by any Person, (B) any negotiations, understandings, agreements or arrangements by Keysight with respect to transactions or events (including, without limitation, stock issuances, pursuant to the exercise of stock options or otherwise, option grants, capital contributions or acquisitions, or a series of such transactions or events) that cause the Distribution to be treated as part of a plan pursuant to which one or more Persons acquire directly or indirectly stock of Keysight or any of its Affiliates representing a Fifty-Percent or Greater Interest therein, (C) any action or failure to act by Keysight after the Distribution (including, without limitation, any amendment to Keysight’s certificate of incorporation (or other organizational documents), whether through a stockholder vote or otherwise)

 

19

 

affecting the voting rights of Keysight stock (including, without limitation, through the conversion of one class of Keysight Capital Stock into another class of Keysight Capital Stock), (D) any act or failure to act by Keysight or any Keysight Affiliate described in Section 7.02 (regardless whether such act or failure to act is covered by a Ruling, Unqualified Tax Opinion or waiver described in clause (A), (B) or (C) of Section 7.02(d), a Keysight Board Certificate described in Section 7.02(e) or a consent described in Section 7.02(f)) or (E) any breach by Keysight of its agreement and representation set forth in Section 7.01 (collectively, a “Keysight Disqualifying Action”).

 

(b)                                 Notwithstanding anything in this Agreement or the Separation and Distribution Agreement to the contrary, Agilent shall be responsible for, and shall indemnify and hold harmless Keysight and its Affiliates and each of their respective officers, directors and employees from and against, one hundred percent (100%) of any Tax-Related Losses that are attributable to or result from any one or more of the following: (A) the direct or indirect acquisition of all or a portion of Agilent’s stock and/or its or its Affiliates’ stock or assets by any means whatsoever by any Person, (B) any negotiations, understandings, agreements or arrangements by Agilent with respect to transactions or events (including, without limitation, stock issuances, pursuant to the exercise of stock options or otherwise, option grants, capital contributions or acquisitions, or a series of such transactions or events) that cause the Distribution to be treated as part of a plan pursuant to which one or more Persons acquire directly or indirectly stock of Agilent or any of its Affiliates representing a Fifty-Percent or Greater Interest therein, (C) any act or failure to act by Agilent or any Agilent Affiliate described in Section 7.02 or (D) any breach by Agilent of its agreement and representation set forth in Section 7.01 (collectively, an “Agilent Disqualifying Action”).

 

(c)                                  Keysight and Agilent Disqualifying Actions.

 

(i)                                     If a Tax-Related Loss is attributable to both a Keysight Disqualifying Action and an Agilent Disqualifying Action, then the Parties shall share such Tax-Related Loss as if it were an increase in Taxes described in Section 2.03(d) of this Agreement.

 

(ii)                                  Notwithstanding the foregoing, if such Tax-Related Loss is attributable to both a Keysight Disqualifying Action and an Agilent Disqualifying Action, then (x) Keysight shall be solely responsible for such Tax-Related Loss if the Keysight Disqualifying Action occurs prior to the Agilent Disqualifying Action and (y) Agilent shall be solely responsible for such Tax-Related Loss if the Agilent Disqualifying Action occurs prior to the Keysight Disqualifying Action.

 

(d)                                 Keysight shall pay Agilent the amount of any Tax-Related Losses for which Keysight is responsible under this Section 7.04 (calculated on the basis that Agilent is a Agilent Full Taxpayer): (A) in the case of Tax-Related Losses described in clause (i) of the definition of Tax-Related Losses no later than ten (10) Business Days after receipt by Keysight of notice of the settlement, Final Determination, judgment or other action imposing the Taxes described in such clause (i) with respect to the Tax Return for the year of the Transactions, as applicable and (B) in the case of Tax-Related Losses described in clause (ii) or (iii) of the definition of Tax-Related Losses, no later than ten (10) Business Days after the date on which Keysight receives notice from Agilent evidencing Agilent’s payment of such Tax- Related Losses.

 

(e)                                  Agilent shall pay Keysight the amount of any Tax-Related Losses for which Agilent is responsible under this Section 7.04 (calculated on the basis that Keysight is a Keysight Full Taxpayer): (A) in the case of Tax-Related Losses described in clause (i) of the definition of Tax-Related Losses no later than ten (10) Business Days after receipt by Agilent of notice of the settlement, Final Determination, judgment or other action imposing the Taxes described in such clause (i) with respect to

 

20

 

the Tax Return for the year of the Transactions, as applicable and (B) in the case of Tax-Related Losses described in clause (ii) or (iii) of the definition of Tax-Related Losses, no later than ten (10) Business Days after the date on which Agilent receives notice from Keysight evidencing Keysight’s payment of such Tax- Related Losses.

 

Section 8.                                          Assistance and Cooperation.

 

Section 8.01                            Assistance and Cooperation.

 

(a)                                 The Companies shall 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 relating to the Companies and their Affiliates including (i) preparation and filing of any Tax Return and any Tax Items reported or shown thereon, (ii) determining the amount of any Tax Items and the amount of any Taxes due (including estimated Taxes) or the right to and amount of any refund of Taxes, (iii) examinations of Tax Returns, and (iv) any administrative or judicial proceeding in respect of Taxes assessed or proposed to be assessed. Such cooperation shall include making all information and documents in their possession relating to the other Company and its Affiliates available to such other Company as provided in Section 9 (including, for the avoidance of doubt, the amount of any Tax Items reasonably necessary to permit the parties to calculate the credit described in Section 41 of the Code). Each of the Companies shall also make available to the other, as reasonably requested and available, personnel (including officers, directors, employees and agents of the Companies or their respective 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.

 

(b)                                 Any information or documents provided under this Section 8 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. Notwithstanding any other provision of this Agreement or any other agreement, (i) neither Agilent nor any Agilent Affiliate shall be required to provide Keysight or any Keysight Affiliate or any other Person access to or copies of any information or procedures (including the proceedings of any Tax Contest) other than information or procedures that relate solely to Keysight, the business or assets of Keysight or any Keysight Affiliate and (ii) in no event shall Agilent or any Agilent Affiliate be required to provide Keysight, any Keysight Affiliate or any other Person access to or copies of any information if such action could reasonably be expected to result in the waiver of any Privilege. In addition, in the event that Agilent determines that the provision of any information to Keysight or any Keysight Affiliate could be commercially detrimental, violate any law or agreement or waive any Privilege, the parties shall use reasonable best efforts to permit compliance with its obligations under this Section 8 in a manner that avoids any such harm or consequence.

 

Section 8.02                            Income Tax Return Information.

 

(a)                                 Keysight and Agilent acknowledge that time is of the essence in relation to any request for information, assistance or cooperation made by Agilent or Keysight pursuant to Section 8.01 or this Section 8.02. Keysight and Agilent acknowledge that failure to conform to the deadlines set forth herein or reasonable deadlines otherwise set by Agilent or Keysight could cause irreparable harm.

 

(b)                                 Each Company shall provide to the other Company information and documents relating to its Group required by the other Company to prepare Tax Returns. Any information or documents the Responsible Company requires to prepare such Tax Returns shall be provided in such form

 

21

 

as the Responsible Company reasonably requests and in sufficient time for the Responsible Company to file such Tax Returns on a timely basis.

 

Section 9.                                          Tax Records.

 

Section 9.01                            Retention of Tax Records. Each Company shall preserve and keep all Tax Records exclusively relating to the assets and activities of its Group for Pre-Deconsolidation Periods, and Agilent shall preserve and keep all other Tax Records relating to Taxes of the Groups for Pre-Deconsolidation Tax Periods, for so long as the contents thereof may become material in the administration of any matter under the Code or other applicable Tax Law, but in any event until the later of (i) the expiration of any applicable statutes of limitations, or (ii) seven years after the Deconsolidation Date (such later date, the “Retention Date”). After the Retention Date, each Company may dispose of such Tax Records upon ninety (90) days’ prior written notice to the other Company. If, prior to the Retention Date, (a) a Company reasonably determines that any Tax Records which it would otherwise be required to preserve and keep under this Section 9 are no longer material in the administration of any matter under the Code or other applicable Tax Law and the other Company agrees, then such first Company may dispose of such Tax Records upon ninety (90) days’ prior notice to the other Company. Any notice of an intent to dispose given pursuant to this Section 9.01 shall include a list of the Tax Records to be disposed of describing in reasonable detail each file, book, or other record accumulation being disposed. The notified Company shall have the opportunity, at its cost and expense, to copy or remove, within such 90-day period, all or any part of such Tax Records. If, at any time prior to the Retention Date, Keysight determines to decommission or otherwise discontinue any computer program or information technology system used to access or store any Tax Records, then Keysight may decommission or discontinue such program or system upon ninety (90) days’ prior notice to Agilent and Agilent shall have the opportunity, at its cost and expense, to copy, within such 90-day period, all or any part of the underlying data relating to the Tax Records accessed by or stored on such program or system.

 

Section 9.02                            Access to Tax Records. The Companies and their respective Affiliates shall make available to each other for inspection and copying during normal business hours upon reasonable notice all Tax Records (and, for the avoidance of doubt, any pertinent underlying data accessed or stored on any computer program or information technology system) in their possession and shall permit the other Company and its Affiliates, authorized agents and representatives and any representative of a Taxing Authority or other Tax auditor direct access during normal business hours upon reasonable notice to any computer program or information technology system used to access or store any Tax Records, in each case to the extent reasonably required by the other Company in connection with the preparation of Tax Returns or financial accounting statements, audits, litigation, or the resolution of items under this Agreement.

 

Section 10.                                   Tax Contests.

 

Section 10.01                     Notice. Each of the Companies shall provide prompt notice to the other Company of any written communication from a Tax Authority regarding any pending or threatened Tax audit, assessment or proceeding or other Tax Contest of which it becomes aware related to Taxes for Tax Periods for which it is indemnified by the other Company hereunder, provided, however, that the indemnifying Company shall not be relieved of its obligations hereunder by reason of any failure by the indemnified Company to so notify except to the extent such failure materially prejudices the indemnifying Company. Such notice shall attach copies of the pertinent portion of any written communication from a Tax Authority and 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.

 

22

 

Section 10.02                     Control of Tax Contests.

 

(a)                                 Separate Company Taxes.

 

(i)                                     In the case of any Tax Contest with respect to any Separate Return relating to Income Taxes for Tax Periods beginning prior to the Separation Period, Agilent shall have exclusive control over the Tax Contest, including exclusive authority with respect to any settlement of such Tax liability, subject to Sections 10.02(c) and (d) below. For avoidance of doubt, each party and its Affiliates shall bear their own costs and expenses incurred in connection with any Tax Contest with respect to any Separate Return described in this Section 10.02(a)(i).

 

(ii)                                  In the case of any Tax Contest with respect to any Separate Return (other than a Separate Return that is subject to Section 10.02(a)(i)), if any, the Company having liability for the Tax pursuant to this Agreement shall have exclusive control over the Tax Contest including exclusive authority with respect to any settlement of such Tax liability, subject to Sections 10.02(c) and (d) below.

 

(b)                                 Joint Tax Returns and Certain Other Returns. In the case of any Tax Contest with respect to any Agilent Federal Consolidated Income Tax Return or Agilent State Combined Income Tax Return, Agilent shall have exclusive control over the Tax Contest, including exclusive authority with respect to any settlement of such Tax liability, subject to Sections 10.02(c) and (d) below.

 

(c)                                  Settlement Rights. The Controlling Party shall have the sole right to contest, litigate, compromise and settle any Tax Contest without obtaining the prior consent of the Non-Controlling Party. Unless waived by the parties in writing, in connection with any potential adjustment in a Tax Contest as a result of which adjustment the Non-Controlling Party may reasonably be expected to become liable to make any indemnification payment (or any payment under Section 6) to the Controlling Party under this Agreement: (i) the Controlling Party shall keep the Non-Controlling Party informed in a timely manner of all actions taken or proposed to be taken by the Controlling Party with respect to such potential adjustment in such Tax Contest; (ii) the Controlling Party shall timely provide the Non-Controlling Party copies of any written materials relating to such potential adjustment in such Tax Contest received from any Tax Authority; (iii) the Controlling Party shall timely provide the Non- Controlling Party with copies of any correspondence or filings submitted to any Tax Authority or judicial authority in connection with such potential adjustment in such Tax Contest; and (iv) the Controlling Party shall consult with the Non-Controlling Party and offer the Non-Controlling Party a reasonable opportunity to comment before submitting any written materials prepared or furnished in connection with such potential adjustment in such Tax Contest. The failure of the Controlling Party to take any action specified in the preceding sentence with respect to the Non- Controlling Party shall not relieve the Non-Controlling Party of any liability and/or obligation which it may have to the Controlling Party under this Agreement except to the extent that the Non-Controlling Party was actually harmed by such failure, and in no event shall such failure relieve the Non-Controlling Party from any other liability or obligation which it may have to the Controlling Party. In the case of any Tax Contest described in Section 10.02(a) or (b), “Controlling Party” means the Company entitled to control the Tax Contest under such Section and “Non-Controlling Party” means the other Company.

 

(d)                                 Tax Contest Participation. Unless waived by the parties in writing, the Controlling Party shall provide the Non-Controlling Party with written notice reasonably in advance of, and the Non-Controlling Party shall have the right to request to attend, any formally scheduled meetings with Tax Authorities or hearings or proceedings before any judicial authorities in connection with any potential adjustment in a Tax Contest pursuant to which the Non-Controlling Party may reasonably be expected to become liable to make any indemnification payment (or any payment under Section 6) to the

 

23

 

Controlling Party under this Agreement. Such right to attend will be limited to two representatives of the Non-Controlling Party who may observe, but not participate, in such hearings or proceedings.  The failure of the Controlling Party to provide any notice specified in this Section 10.02(d) to the Non-Controlling Party shall not relieve the Non-Controlling Party of any liability and/or obligation which it may have to the Controlling Party under this Agreement except to the extent that the Non-Controlling Party was actually harmed by such failure, and in no event shall such failure relieve the Non-Controlling Party from any other liability or obligation which it may have to the Controlling Party.

 

(e)                                  Power of Attorney. Each member of the Keysight Group shall execute and deliver to Agilent (or such member of the Agilent Group as Agilent shall designate) any power of attorney or other similar document reasonably requested by Agilent (or such designee) in connection with any Tax Contest (as to which Agilent is the Controlling Party) described in this Section 10.

 

Section 11.                                   Effective Date; Termination of Prior Intercompany Tax Allocation Agreements. This Agreement shall be effective as of the date hereof. As of the date hereof, (i) all prior intercompany Tax allocation agreements or arrangements shall be terminated, and (ii) amounts due under or contemplated by such agreements or arrangements as of the date hereof shall be settled (in whatever manner the Parties so agree) as of the date hereof. Upon such termination and settlement, no further payments by or to Agilent or by or to Keysight, with respect to such agreements or arrangements shall be made, and all other rights and obligations resulting from such agreements or arrangements between the Companies and their Affiliates shall cease at such time. Any payments pursuant to such agreements or arrangements shall be disregarded for purposes of computing amounts due under this Agreement.

 

Section 12.                                   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 limit

 

Section 13.                                   Payments; Tax Gross Up.

 

Section 13.01                     Treatment of Tax Indemnity and Tax Benefit Payments. For all Tax purposes, Agilent and Keysight and their respective Affiliates agree to report  any payment required by this Agreement (other than payments with respect to interest accruing after the Deconsolidation Date) as either a contribution by Agilent to Keysight or a distribution by Keysight to Agilent, as the case may be, occurring immediately prior to the Deconsolidation Date or as a payment of an assumed or retained Liability except as otherwise required by applicable Law.

 

Section 13.02                     Tax Gross Up. If notwithstanding the manner in which Tax indemnity payments and Tax Benefit payments were reported pursuant to Section 13.01, there is an adjustment to the Tax liability of a Company as a result of its receipt of a payment pursuant to this Agreement, such payment shall be appropriately adjusted so that the amount of such payment, reduced by the amount of all Income Taxes payable as a Full Taxpayer with respect to the receipt thereof (but taking into account all correlative Tax Benefits resulting from the payment of such Income Taxes), shall equal the amount of the payment which the Company receiving such payment would otherwise be entitled to receive pursuant to this Agreement.

 

Section 13.03                     Interest Under This Agreement. Any payment required under this Agreement by a Company that is not paid within the time prescribed for such payment herein shall bear interest at a rate equal to the applicable Federal short-term rate (as defined in Section 1274(d)(1) of the Code) from the due date thereof until the date of the receipt of payment by the other Company.  Anything herein to the contrary notwithstanding, to the extent one Company (“Indemnitor”) makes a payment of interest to another Company (“Indemnitee”) under this Agreement with respect to the period from the

 

24

 

date that the Indemnitee made a payment of Tax to a Tax Authority to the date that the Indemnitor reimbursed the Indemnitee for such Tax payment, the interest payment shall be treated as interest expense to the Indemnitor (deductible to the extent provided by law) and as interest income by the Indemnitee (includible in income to the extent provided by law). The amount of the payment shall not be adjusted under Section 2 to take into account any associated Tax Benefit to the Indemnitor or increase in Tax to the Indemnitee.

 

Section 14.                                   Disagreements. The Companies mutually desire that friendly collaboration will continue between them. Accordingly, they will try, and they will cause their respective Group members to try, to resolve in an amicable manner all disagreements and misunderstandings connected with their respective rights and obligations under this Agreement, including any amendments hereto. In furtherance thereof, in the event of any dispute or disagreement (a “Tax Dispute”) between any member of the Agilent Group and any member of the Keysight Group as to the interpretation of any provision of this Agreement or the performance of obligations hereunder, the Tax departments of the Companies shall negotiate in good faith to resolve the Tax Dispute. If such good faith negotiations do not resolve the Tax Dispute within thirty (30) days after the initial written notice of the Tax Dispute (or such longer period that the parties hereto agree to), then the matter shall be resolved pursuant to the procedures set forth in Article VII of the Separation and Distribution Agreement, provided, however, that upon the request of either Company, the mediator selected by the parties pursuant to Article VII shall be a recognized tax professional, such as a United States tax counsel or accountant of recognized national standing. Nothing in this Section 14 will prevent either Company from seeking injunctive relief if any delay resulting from the efforts to resolve the Tax Dispute through the procedures set forth in Article VII of the Separation and Distribution Agreement could result in serious and irreparable injury to either Company. Notwithstanding anything to the contrary in this Agreement, the Separation and Distribution Agreement or any Ancillary Agreement, Agilent and Keysight are the only members of their respective Group entitled to commence a dispute resolution procedure under this Agreement, and each of Agilent and Keysight will cause its respective Group members not to commence any dispute resolution procedure other than through such party as provided in this Section 14.

 

Section 15.                                   Expenses. Except as otherwise provided in this Agreement, each party 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.

 

Section 16.                                   General Provisions.

 

Section 16.01                     Addresses and Notices. Each party giving any notice required or permitted under this Agreement will give the notice in writing and use one of the following methods of delivery to the party to be notified, at the address set forth below or another address of which the sending party has been notified in accordance with this Section 16.01: (a) personal delivery; (b) facsimile or telecopy transmission with a reasonable method of confirming transmission; (c) commercial overnight courier with a reasonable method of confirming delivery; or (d) pre-paid, United States of America certified or registered mail, return receipt requested. Notice to a party is effective for purposes of this Agreement only if given as provided in this Section 16.01 and shall be deemed given on the date that the intended addressee actually receives the notice.

 

If to Agilent:

 

Agilent Technologies, Inc.

5301 Stevens Creek Blvd.

M/S 1A-PB

Santa Clara, CA  95051

 

25

 

Attention:                                         Chief Financial Officer

Facsimile:                                         (408) 345-8932

E-mail:                                                      didier_hirsch@agilent.com

 

If to Keysight:

 

Keysight Technologies, Inc.

1400 Fountaingrove Parkway

Santa Rosa, CA  95403

Attention:                                         Chief Financial Officer

Facsimile:                                         (707) 577-2382

E-mail:                                                        neil_p_dougherty@keysight.com

 

A party may change the address for receiving notices under this Agreement by providing written notice of the change of address to the other party.

 

Section 16.02                     Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their successors and assigns.  Except as expressly set forth in this Agreement, the covenants and other provisions contained in this Agreement, and liability for the breach of any obligations contained herein, shall survive the Deconsolidation Date and shall remain in full force and effect thereafter.  Notwithstanding any other provision of this Agreement (other than this sentence), this Agreement and all of its covenants and provisions shall be null and void with no consequence or effect during the Separation Period or any time after the Deconsolidation Date if the Distribution does not occur and each party shall take such steps as are necessary and commercially reasonable to place the other party in the same position as if the Agreement had never taken effect.

 

Section 16.03                     Waiver. The parties may waive a provision of this Agreement only by a writing signed by the party intended to be bound by the waiver. A party is not prevented from enforcing any right, remedy or condition in the party’s favor because of any failure or delay in exercising any right or remedy or in requiring satisfaction of any condition, except to the extent that the party specifically waives the same in writing. A written waiver given for one matter or occasion is effective only in that instance and only for the purpose stated. A waiver once given is not to be construed as a waiver for any other matter or occasion. Any enumeration of a party’s rights and remedies in this Agreement is not intended to be exclusive, and a party’s rights and remedies are intended to be cumulative to the extent permitted by law and include any rights and remedies authorized in law or in equity.

 

Section 16.04                     Severability. If any provision of this Agreement is determined to be invalid, illegal or unenforceable, the remaining provisions of this Agreement remain in full force, if the essential terms and conditions of this Agreement for each party remain valid, binding and enforceable.

 

Section 16.05                     Authority. Each of the parties represents to the other that (a) it has the corporate or other requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement have been duly authorized by all necessary corporate or other action, (c) it has duly and validly executed and delivered this Agreement, and (d) this Agreement is a legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and general equity principles.

 

Section 16.06                     Further Action. The parties shall execute and deliver all documents, provide all information, and take or refrain from taking action as may be necessary or appropriate to achieve the purposes of this Agreement, including the execution and delivery to the other parties and their

 

26

 

Affiliates and representatives of such powers of attorney or other authorizing documentation as is reasonably necessary or appropriate in connection with the filing of Tax Returns pursuant to Section 8 and Tax Contests (or portions thereof) under the control of such other parties in accordance with Section 10.

 

Section 16.07                     Integration. This Agreement, together with each of the exhibits and schedules appended hereto, constitutes the final agreement between the parties, and is the complete and exclusive statement of the parties’ agreement on the matters contained herein. All prior and contemporaneous negotiations and agreements between the parties with respect to the matters contained herein are superseded by this Agreement, as applicable. In the event of any inconsistency between this Agreement and the Separation and Distribution Agreement, or any other agreements relating to the transactions contemplated by the Separation and Distribution Agreement, with respect to matters addressed herein, the provisions of this Agreement shall control.

 

Section 16.08                     Construction. The language in all parts of this Agreement shall in all cases be construed according to its fair meaning and shall not be strictly construed for or against any party. The captions, titles and headings included in this Agreement are for convenience only, and do not affect this Agreement’s construction or interpretation. Unless otherwise indicated, all “Section” references in this Agreement are to sections of this Agreement.

 

Section 16.09                     No Double Recovery. No provision of this Agreement shall be construed to provide an indemnity or other recovery for any costs, damages, or other amounts for which the damaged party has been fully compensated under any other provision of this Agreement or under any other agreement or action at law or equity. Unless expressly required in this Agreement, a party shall not be required to exhaust all remedies available under other agreements or at law or equity before recovering under the remedies provided in this Agreement.

 

Section 16.10                     Counterparts. The parties may execute this Agreement in multiple counterparts, each of which constitutes an original as against the party that signed it, and all of which together constitute one agreement. This Agreement is effective upon delivery of one executed counterpart from each party to the other party. The signatures of the parties need not appear on the same counterpart. The delivery of signed counterparts by facsimile or email transmission that includes a copy of the sending party’s signature is as effective as signing and delivering the counterpart in person.

 

Section 16.11                     Governing Law. The internal laws of the State of Delaware (without reference to its principles of conflicts of law) govern the construction, interpretation and other matters arising out of or in connection with this Agreement and each of the exhibits and schedules hereto and thereto (whether arising in contract, tort, equity or otherwise).

 

Section 16.12                     Jurisdiction. If any dispute arises out of or in connection with this Agreement, except as expressly contemplated by another provision of this Agreement, the parties irrevocably (and the parties will cause each other member of their respective Group to irrevocably) (a) consent and submit to the exclusive jurisdiction of federal and state courts located in Commonwealth of Massachusetts, and (b) waive any objection to that choice of forum based on venue or to the effect that the forum is not convenient.

 

Section 16.13                     Amendment. Except as otherwise expressly provided herein with respect to the Schedules hereto, the parties may amend this Agreement only by a written agreement signed by each party to be bound by the amendment and that identifies itself as an amendment to this Agreement.

 

27

 

Section 16.14                     Keysight Subsidiaries. If, at any time, Keysight acquires or creates one or more subsidiaries that are includable in the Keysight Group, they shall be subject to this Agreement and all references to the Keysight Group herein shall thereafter include a reference to such subsidiaries.

 

Section 16.15                     Successors. This Agreement shall be binding on and inure to the benefit of any successor by merger, acquisition of assets, or otherwise, to any of the parties hereto (including but not limited to any successor of Agilent or Keysight succeeding to the Tax Attributes of either under Section 381 of the Code), to the same extent as if such successor had been an original party to this Agreement.

 

Section 16.16                     Injunctions. The parties acknowledge that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with its specific terms or were otherwise breached. The parties hereto shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof in any court having jurisdiction, such remedy being in addition to any other remedy to which they may be entitled at law or in equity.

 

[signatures on following page]

 

28

 

IN WITNESS WHEREOF, each party has caused this Agreement to be executed on its behalf by a duly authorized officer on the date first set forth above.

 

	
 
    	
 
    	
AGILENT   TECHNOLOGIES, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Shiela Barr   Robertson
    
	
 
    	
 
    	
 
    	
Name: Shiela   Barr Robertson
    
	
 
    	
 
    	
 
    	
Title: Senior   Vice President, Corporate Development and Strategy
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
KEYSIGHT   TECHNOLOGIES, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Ronald S.   Nersesian
    
	
 
    	
 
    	
 
    	
Name: Ronald S.   Nersesian
    
	
 
    	
 
    	
 
    	
Title: President   and Chief Executive Officer
    

 

29

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00234-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00234-of-00352.parquet"}]]