Document:

EXHIBIT 10.1

 

FORM OF CHANGE OF CONTROL SEVERANCE AGREEMENT

 

This Change of Control Severance Agreement (the “Agreement”) is entered into this          day of                , 20   (the “Effective Date”) between                                 (“Executive”) and Keysight Technologies, Inc., a Delaware corporation (the “Company”).  This Agreement is intended to provide Executive with the compensation and benefits described herein upon the occurrence of specific events following a change of control of the ownership of the Company (defined as “Change of Control”).

 

RECITALS

 

A.                                    As is the case with most, if not all, publicly-traded businesses, it is expected that the Company from time to time may consider or may be presented with the need to consider the possibility of an acquisition by another company or other change in control of the ownership of the Company.  The Board of Directors of the Company (the “Board”) recognizes that such considerations can be a distraction to Executive and can cause the Executive to consider alternative employment opportunities or to be influenced by the impact of a possible change in control of the ownership of the Company on Executive’s personal circumstances in evaluating such possibilities.  The Board has determined that it is in the best interests of the Company and its shareholders to assure that the Company will have the continued dedication and objectivity of Executive, notwithstanding the possibility, threat or occurrence of a Change of Control of the Company.

 

B.                                    [Moreover, the Employee Matters Agreement between Agilent Technologies, Inc. (“Agilent”) and the Company, dated as of August 1, 2014 entered into in connection with the distribution to Agilent shareholders of all the outstanding common stock of the Company, provides that the Company shall use its reasonable best efforts to cause each employee of the Company who is party to a change in control severance agreement with Agilent (including Executive) to enter into a change in control severance agreement with the Company.](1)

 

C.                                    The Board has discretion to determine which Eligible Officers (as defined in Section 7.10) may receive a change of control severance agreement and has determined that it is in the best interest of the Company and its shareholders to enter into this Agreement with Executive to incentivize the continuation of Executive’s employment and to provide motivation to maximize the value of the Company upon a Change of Control for the benefit of its shareholders.

 

D.                                    The Board believes that it is important to provide Executive with certain benefits upon Executive’s termination of employment in certain instances prior to, upon or following a Change of Control that provide Executive with enhanced financial security and incentive and encouragement to Executive to remain with the Company notwithstanding the possibility of a Change of Control.

 

(1)  Include bracketed language for persons with Agilent CIC Agreements.

 

 

E.                                    At the same time, the Board expects the Company to receive certain benefits in exchange for providing Executive with this measure of financial security and incentive under the Agreement.  Therefore, the Board believes that Executive should provide various specific commitments which are intended to assure the Company that Executive will not direct Executive’s skills, experience and knowledge to the detriment of the Company for a period not to exceed the period during which payments are being made to Executive under this Agreement.

 

F.                                     Certain capitalized terms used in this Agreement are defined in Article VII.

 

The Company and Executive hereby agree as follows:

 

ARTICLE I.

 

EMPLOYMENT BY THE COMPANY

 

1.1                               Executive is currently employed by the Company as an Eligible Officer.

 

1.2                               Executive shall be entitled to the rights and benefits of this Agreement and this Agreement may not be terminated, except as otherwise provided in Section 4.5, if Executive is an Eligible Officer as of immediately prior to a Change of Control, or, if earlier, immediately prior to a termination of Executive’s employment that results in an Anticipatory Termination (the “Section 1.2 Time”).

 

1.3                               The Company and Executive each agree and acknowledge that Executive is employed by the Company as an “at-will” employee and that either Executive or the Company has the right at any time to terminate or to change Executive’s employment with the Company, or to determine that Executive is no longer an Eligible Officer regardless of the continued employment of Executive with or without cause or advance notice, for any reason or for no reason.  The Company and Executive wish to set forth the compensation and benefits which Executive shall be entitled to receive in the event that Executive’s employment with the Company terminates under the circumstances described in Article II of this Agreement.

 

1.4                               The duties and obligations of the Company to Executive under this Agreement shall be in consideration for Executive’s continued employment with the Company, Executive’s compliance with the obligations described in Section 4.2, and Executive’s execution of the Release described in Section 4.3.  The Company and Executive agree that Executive’s compliance with the obligations described in Section 4.2 and Executive’s execution and non-revocation of the Release described in Section 4.3 are preconditions to Executive’s entitlement to the receipt of benefits under this Agreement and that these benefits shall not be earned unless all such conditions have been satisfied through the scheduled date of payment.  The Company hereby declares that it has relied upon Executive’s commitments under this Agreement to comply with the requirements of Article IV, and would not have entered into this Agreement in the absence of such commitments.

 

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ARTICLE II.

 

TERMINATION EVENTS

 

2.1                               Involuntary Termination Upon or Following Change of Control.

 

(a)                                 The Company may involuntarily terminate Executive’s employment with the Company and its subsidiaries at any time.  In the event Executive’s employment with the Company and its subsidiaries is involuntarily terminated by the Company without Cause either (i) at the time of or within twenty-four (24) months following the occurrence of a Change of Control, (ii) within three (3) months prior to a Change of Control, whether or not such termination is at the request of an “Acquiror”, or (iii) at any time prior to a Change of Control, if such termination is at the request of an Acquiror, then, upon the later of Executive’s termination date and such Change of Control, such termination of employment will be a Termination Event and the Company shall pay Executive the compensation and benefits described in and at the times provided under Article III.  For all purposes of this Agreement the term “Acquiror” is either a person or a member of a group of related persons representing such group that in either case obtains effective control of the Company in the transaction or a group of related transactions constituting the Change of Control.

 

(b)                                 In the event Executive’s employment with the Company and its subsidiaries is either involuntarily terminated by the Company with Cause at any time, or is involuntarily terminated by the Company without Cause at any time other than under the circumstances described in Section 2.1(a), then such termination of employment will not be a Termination Event, Executive will not be entitled to receive any payments or benefits under the provisions of this Agreement, and the Company will cease paying compensation and providing benefits to Executive as of Executive’s termination date.

 

2.2                               Voluntary Termination Upon or Following Change of Control; Death; Disability.

 

(a)                                 Executive may voluntarily terminate Executive’s employment with the Company and its subsidiaries at any time.  In the event Executive voluntarily terminates Executive’s employment within three (3) months following the occurrence of an event constituting Good Reason and on account of an event constituting Good Reason, which event occurs either (i) at the time of or within twenty-four (24) months following the occurrence of a Change of Control, (ii) within three (3) months prior to a Change of Control, whether or not such termination is at the request of an “Acquiror”, or (iii) at any time prior to a Change of Control, if such triggering event or Executive’s termination is at the request of an Acquiror, then, upon the later of Executive’s termination date and such Change of Control, such termination of employment will be a Termination Event and the Company shall pay Executive the compensation and benefits described in and at the times provided under Article III.

 

(b)                                 In the event (i) Executive voluntarily terminates Executive’s employment for any reason other than on account of an event constituting Good Reason under the circumstances described in Section 2.2(a), or (ii) Executive’s employment terminates on account of either death or Disability, then such termination of employment will not be a Termination

 

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Event, Executive will not be entitled to receive any payments or benefits under the provisions of this Agreement, and the Company will cease paying compensation and providing benefits to Executive as of Executive’s termination date.

 

ARTICLE III.

 

TERMINATION COMPENSATION AND BENEFITS

 

3.1                               Right to Benefits.  If a Termination Event occurs, Executive shall be entitled to receive the benefits described in this Agreement so long as Executive complies with the restrictions and limitations set forth in Article IV; provided, further, that (a) Executive must execute the Release, (b) the time period for revocation of the Release must expire without revocation by the Executive within sixty (60) days immediately following the Termination Event (the  “Release Deadline”) and (c) the Release shall remain in effect at the time that the benefits of this Article III are paid.  If a Termination Event does not occur, Executive shall not be entitled to receive any benefits described in this Agreement, except as otherwise specifically set forth herein.

 

3.2                               Severance.  Upon the occurrence of a Termination Event, Executive shall receive the Applicable Multiple times the sum of Executive’s Base Salary plus Target Bonus.  Amounts to be paid under this section shall be paid in a lump sum no later than five (5) business days after the Release Deadline.

 

3.3                               Health Insurance Coverage.  Upon the occurrence of a Termination Event, Executive shall be entitled to receive a payment equal to the Health Expense Benefit.  The purpose of the Health Expense Benefit is to assist Executive with healthcare expenses, including additional health plan premium payments that may result from the occurrence of a Termination Event.  Amounts to be paid under this section shall be paid in a lump sum no later than five (5) business days after the Release Deadline.

 

This Section 3.3 provides only for the Company’s payment of the Health Expense Benefit.  This Section 3.3 does not affect the rights of Executive or Executive’s covered dependents under any applicable law with respect to health insurance continuation coverage.

 

3.4                               Stock Award Acceleration.  Executive’s stock options which are outstanding as of the date of the Termination Event (the “Stock Options”) and that are not subject to performance-based vesting shall become fully vested upon the occurrence of the Termination Event and exercisable so long as Executive complies with the restrictions and limitations set forth in Article IV.  The maximum period of time during which the Stock Options shall remain exercisable, and all other terms and conditions of the Stock Options, shall be as specified in the relevant Stock Option agreements and relevant stock plans under which the Stock Options were granted.  The term “Stock Options” shall not include any rights of Executive under the Company’s employee stock purchase plan.

 

Executive’s restricted stock awards or restricted stock units awards (“RSUs”) that are outstanding as of the date of the Termination Event (“Restricted Stock”) and that are not subject to performance-based vesting shall become fully vested and, in the case of restricted stock, free

 

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from any contractual rights of the Company to repurchase or otherwise reacquire the Restricted Stock as a result of Executive’s termination of employment.  All shares of Restricted Stock or shares underlying RSUs which have not yet been delivered to Executive or Executive’s designee (whether because subject to joint escrow instructions or otherwise) shall be delivered to Executive or Executive’s designee as soon as administratively feasible after the occurrence of a Termination Event.

 

The treatment of Executive’s other awards, if any, outstanding under the 2014 Equity and Incentive Compensation Plan of the Company, or any successor plan thereto (together the “Stock Plan”), at the time of the Termination Event, including without limitation Stock Options, shares of Restricted Stock and RSUs that are subject to performance-based vesting, performance share awards and awards which may be settled in cash, shall be governed by the applicable award agreement.

 

Notwithstanding the above, if (i) Executive held unvested awards issued under the Stock Plan at the time of a Termination Event which is an Anticipatory Termination, (ii) such awards are forfeited or expire at or following such Anticipatory Termination, and before the applicable Change of Control, and (iii) such awards would have become vested on Executive’s date of termination on account of such Termination Event had it not been an Anticipatory Termination (such forfeited awards, the “Forfeited Equity”), then Executive shall receive a lump sum amount equal to the value of the Forfeited Equity no later than five (5) business days after the Release Deadline.  For purposes of the preceding sentence, the value of the Forfeited Equity shall equal to (i) in the case of an award other than Stock Options, the fair market value, as determined under the terms of the Stock Plan, of the shares as to which the award would have become vested had such Termination Event not been an Anticipatory Termination, determined as of the Change of Control, and (ii) in the case of a Stock Option,  the fair market value, as determined under the Stock Plan, of the shares as to which the Stock Option would have become vested had such Termination Event not been an Anticipatory Termination, determined as of the Change of Control, less the exercise price of such Stock Option (but in no event less than zero).

 

3.5                               Bonus.  If a Termination Event occurs, Executive shall receive a pro-rated bonus under any bonus plan applicable to Executive, for the performance period in which  Executive’s termination of employment occurs.  The amount of the bonus shall be calculated under the terms of such bonus program as established by the Company, including whether or not, or to what degree, any performance-based conditions have been met, and shall be equal to the amount of the bonus Executive would have been paid under the terms of such bonus program had Executive continued Executive’s employment with the Company until the end of such performance period multiplied by a fraction in which (i) the numerator is the number of days from and including the first day of the performance period until and including the date of the Executive’s termination of employment, and (ii) the denominator is the number of days in the performance period.  Such bonus shall be paid on the date Executive would have received the bonus if the termination of employment had not occurred during such performance period; provided, however, that in any event such bonus will be paid no later than two and one-half (2 1/2) months after the end of the calendar year in which the Termination Event occurs.  Such amount shall be reduced (but not below zero) by any bonus actually paid to Executive prior to the Termination Event in respect of such performance period.  Executive’s rights to the payment provided in this Section 3.5 shall

 

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not be terminated by the application of Section 4.2 of this Agreement.  This Section 3.5 shall not apply to awards issued pursuant to the Stock Plan.

 

3.6                               Mitigation.  Except as otherwise specifically provided herein, Executive shall not be required to mitigate damages or the amount of any payment provided under this Agreement by seeking other employment or otherwise, nor shall the amount of any payment provided for under this Agreement be reduced by any compensation earned by Executive as a result of employment by another employer or by retirement benefits after the date of the Termination Event, or otherwise.

 

3.7                               Compliance with Section 409A.  In the event that (i) one or more payments of compensation or benefits received or to be received by Executive pursuant to this Agreement (“Agreement Payment”) would constitute deferred compensation subject to Section 409A of the Code and (ii) Executive is deemed at the time of such termination of employment to be a “specified employee” under Section 409A(a)(2)(B)(i) of the Code, then such Agreement Payment shall not be made or commence until the earlier of (i) the day following the expiration of the six (6)-month period measured from the date of Executive’s “separation from service” (as such term is at the time defined in Treasury Regulations under Section 409A of the Code) with the Company or (ii) such earlier time permitted under Section 409A of the Code and the regulations or other authority promulgated thereunder; provided, however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to Executive under Section 409A of the Code, including (without limitation) the additional twenty percent (20%) tax for which Executive would otherwise be liable under Section 409A(a)(1)(B) of the Code in the absence of such deferral.  During any period in which an Agreement Payment to Executive is deferred pursuant to the foregoing, Executive shall be entitled to interest on the deferred Agreement Payment at a per annum rate equal to the highest rate of interest applicable to six (6)-month non-callable certificates of deposit with daily compounding offered by the following institutions:  Citibank N.A., Wells Fargo Bank, N.A. or Bank of America, on the date of such separation from service.  Upon the expiration of the applicable deferral period, any Agreement Payment which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this paragraph shall be paid to Executive or Executive’s beneficiary in one lump sum, including all accrued interest.

 

Termination of employment (and corollary terms) for purposes of this Agreement shall mean a separation from service within the meaning of Treasury Regulation § 1.409A-1(h).  Executive shall not be deemed to have separated from service if Executive continues to provide services to the Company at an annual rate that is fifty percent or more of the services rendered, on average, during the immediately preceding three full years of employment with the Company (or if employed by the Company less than three years, such lesser period); provided, however, that a separation from service will be deemed to have occurred if Executive service with the Company is reduced to an annual rate that is less than twenty percent of the services rendered, on average, during the immediately preceding three full years of employment with the Company (or if employed by the Company less than three years, such lesser period).  For purposes of this Section 3.7 only and for determining whether an Executive has experienced a separation from service, the “Company” shall mean the Company and its affiliates that are treated as a single employer under section 414(b) or (c) of the Code.

 

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ARTICLE IV.

 

LIMITATIONS AND CONDITIONS ON BENEFITS; AMENDMENT OF AGREEMENT

 

4.1                               Reduction in Payments and Benefits; Withholding Taxes.  The benefits provided under this Agreement are in lieu of any benefit provided under any other severance plan, program or arrangement of the Company in effect at the time of a Termination Event; provided, however, that if Executive is entitled to other severance benefits, including, without limitation, under any employment contract, severance plan or applicable law, such Executive shall be entitled to receive only the benefit under this Agreement or such other severance benefit, whichever is greater as determined by the Board or its designee.  Notwithstanding the foregoing, where such other severance benefit is less than the benefit under this Agreement, but is (i) required to be paid pursuant to applicable non-U.S. law or (ii) nonqualified deferred compensation subject to Section 409A of the Code, the Executive shall be entitled to receive the benefit under this Agreement with the amount to be paid pursuant to Sections 3.2, 3.3 and 3.5 offset by the amount of cash payable under such other severance benefit.  The Company shall withhold appropriate federal, state or local income, employment and other applicable taxes from any payments hereunder.

 

4.2                               Obligations of Executive.

 

(a)                                 For two years following the Termination Event, Executive agrees not to personally solicit any of the employees either of the Company or of any entity in which the Company directly or indirectly possesses the ability to determine the voting of 50% or more of the voting securities of such entity (including two-party joint ventures in which each party possesses 50% of the total voting power of the entity) to become employed elsewhere or provide the names of such employees to any other company which Executive has reason to believe will solicit such employees.

 

(b)                                 Following the occurrence of a Termination Event, Executive agrees to continue to satisfy Executive’s obligations under the terms of the Company’s standard form of Proprietary Information and Non-Disclosure Agreement previously executed by Executive (or any comparable agreement subsequently executed by Executive in substitution or supplement thereto).  Executive’s obligations under this Section 4.2(b) shall not be limited to the Term.

 

(c)                                  It is expressly understood and agreed that although Executive and the Company consider the restrictions contained in this Section 4 to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that the time or territory or any other restriction contained in this Agreement is an unenforceable restriction against Executive, the provisions of this Agreement shall not be rendered void, but shall be deemed amended to apply as to such maximum time or territory and to such maximum extent as such court may judicially determine or indicate to be enforceable.  Alternatively, if any court of competent jurisdiction finds that any restriction contained in this Agreement is unenforceable, and such restriction cannot be amended so as to make it enforceable, such finding shall not affect the enforceability of any of the other restrictions contained herein.

 

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(d)                                 Following a Termination Event, Executive agrees not to make any public statement or statements to the press concerning Keysight, its business objectives, its management practices, or other sensitive information without first receiving Keysight’s written approval.  Executive further agrees to take no action which would cause Keysight or its employees or agents any embarrassment or humiliation or otherwise cause or contribute to Keysight’s or any such person’s being held in disrepute by the general public or Keysight’s employees, clients, or customers.

 

(e)                                  Executive acknowledges and agrees that the Company’s remedies at law for a breach or threatened breach of any of the provisions of Section 4.2(a) or Section 4.2(b) would be inadequate and, in recognition of this fact, Executive agrees that, in the event of such a breach or threatened breach, in addition to any remedies at law, the Company, without posting any bond, shall, with respect to a breach or threatened breach of Section 4.2(a) or Section 4.2(b) only, obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction, or any other equitable remedy which may then be available.

 

4.3                               Employee Release Prior to Receipt of Benefits.  Prior to the receipt of any benefits under this Agreement on account of the occurrence of a Termination Event, Executive shall execute an employee release substantially in the form attached hereto as Exhibit A (“Release”) as shall be determined by the Company.  Executive shall have twenty-one (21) days (or such longer period, not to exceed forty-five (45) days, determined by the Company) after receipt of the form of Release from the Company to consider whether to execute the Release, and Executive may revoke the Release within seven (7) days after its execution.  In the event that Executive has not received a form of Release from the Company by the tenth (10th) day following the Termination Event, Executive may execute the form of Release attached hereto as Exhibit A (which shall be deemed received by Executive on the tenth (10th) day following the Termination Event and be deemed acceptable to the Company).  In the event Executive does not execute the Release within the twenty-one (21) day period (or such longer period, not to exceed forty-five (45) days, determined by the Company), or if Executive revokes the Release within the seven (7) day period, no benefits shall be payable under this Agreement and this Agreement shall be null and void.  Such seven (7) day period in which a Release may be revoked must have expired not later than sixty (60) days immediately following the Termination Event without revocation by the Executive in order for Executive to receive the benefits described in this Agreement.  Nothing in this Agreement shall limit the scope or time of applicability of the Release once it is executed and not timely revoked.

 

4.4                               Parachute Payments.  In the event that the any payments or benefits received or to be received by Executive pursuant to this Agreement or otherwise (a) constitute “parachute payments” within the meaning of Section 280G of the Code, as determined by the accounting firm that audited the Company prior to the Change of Control or another nationally known accounting or employee benefits consulting firm selected by the Company prior to such Change of Control (the “Accounting Firm”) and (b) but for this Section 4.4, would, in the judgment of the Accounting Firm, be subject to the excise tax imposed by Section 4999 of the Code by reason of Section 280G of the Code, then Executive’s benefits under this Agreement shall be payable either:  (i) in full, or (ii) as to such lesser amount which would result in no portion of such payments or benefits being subject to the excise tax under Section 4999 of the Code, as determined by the Accounting Firm, whichever of the foregoing amounts, taking into account the

 

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applicable federal, state and local income and employment taxes and the excise tax imposed by Section 4999, results in the receipt by Executive, on an after-tax basis, of the greatest amount of benefits under this Agreement, as determined by the Accounting Firm, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code.  In the event that a lesser amount is paid under clause (b)(ii) above, then the elements of Executive’s payments hereunder shall be reduced in such order (A) as the Company determines, in its sole discretion, has the least economic detriment to Executive and (B) which does not result in the imposition of any tax penalties under Section 409A on the Executive.  To the extent the economic impact of reducing payments from one or more elements is equivalent and subject to clause (B) of the preceding sentence, the reduction may be made pro rata by the Company in its sole discretion.

 

4.5                               Amendment or Termination of This Agreement.  The Company may make amendments to this Agreement without the consent of Executive which are non-material and which are not adverse to Executive to the extent necessary or advisable to comply with laws.  Any other changes to or, termination of, this Agreement may be made only upon the mutual written consent of the Company and Executive; provided, however, that only prior to the Section 1.2 Time, the Company may unilaterally terminate this Agreement following eighteen (18) months’ prior written notice to Executive.  If the Company makes any changes to this Agreement without the consent of Executive pursuant to the first sentence of this Section 4.5 it shall provide prompt written notice and a copy of such change to Executive.

 

ARTICLE V.

 

OTHER RIGHTS AND BENEFITS NOT AFFECTED

 

5.1                               Nonexclusivity.  Nothing in the Agreement shall prevent or limit Executive’s continuing or future participation in any benefit, bonus, incentive or other plans, programs, policies or practices provided by the Company and for which Executive may otherwise qualify, nor shall anything herein limit or otherwise affect such rights as Executive may have under any stock option or other agreements with the Company; provided, however, that subject to Section 4.1, any benefits provided hereunder shall be in lieu of any other severance benefits to which Executive may otherwise be entitled, including without limitation, under any employment contract or severance plan.  Except as otherwise expressly provided herein, amounts which are vested benefits or which Executive is otherwise entitled to receive under any plan, policy, practice or program of the Company at or subsequent to the date of a Termination Event shall be payable in accordance with such plan, policy, practice or program.

 

5.2                               Employment Status.  This Agreement does not constitute a contract of employment or impose on Executive any obligation to remain as an employee, or impose on the Company any obligation (i) to retain Executive as an employee, (ii) to change the status of Executive as an at-will employee, or (iii) to change the Company’s policies regarding termination or alteration of employment.

 

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ARTICLE VI.

 

NON-ALIENATION OF BENEFITS

 

No benefit hereunder shall be subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt to do so shall be void.

 

ARTICLE VII.

 

DEFINITIONS

 

For purposes of the Agreement, the following terms shall have the meanings set forth below:

 

7.1                               “Agreement” means this Change of Control Severance Agreement.

 

7.2                               “Anticipatory Termination” means a Termination Event described in clause (ii) or (iii) of Section 2.1(a) or clause (ii) or (iii) of Section 2.1(b).

 

7.3                               “Applicable Multiple” means with respect to:

 

(i)                                     the Chief Executive Officer, three (3);

 

(ii)                                  a Section 16 Officer (other than the Chief Executive Officer) or other Senior Vice President, two (2); and

 

(iii)                               Level II Executive, Level III Executive, or other Board appointed officers, one (1);

 

based on Eligible Officer status determined immediately prior to the Section 1.2 Time.

 

7.4                               “Base Salary” means Executive’s annual salary (excluding, without limitation, bonus, any other incentive or other payments, stock option exercises, and equity compensation vesting or share delivery) from the Company at the time of the occurrence of the Change of Control or Executive’s termination of employment, whichever is greater.

 

7.5                               “Cause” means  (i) conviction of any felony or any crime involving moral turpitude or dishonesty; (ii) repeated unexplained or unjustified absences from the Company; (iii) refusal or willful failure to act in accordance with any specific lawful direction or order of the Company or stated written policy of the Company which has a material adverse effect on the Company’s business or reputation; (iv) a material and willful violation of any state or federal law which if made public would materially injure the business or reputation of the Company; (v) participation in a fraud or act of dishonesty against the Company which has a material adverse effect on the Company’s business or reputation; (vi) conduct by Executive which the Board determines demonstrates gross unfitness to serve; or (vii) intentional, material violation by Executive of any contract between Executive and the Company or any statutory duty of Executive to the Company that is not corrected within thirty (30) days after written notice to Executive thereof.  Whether or not the actions or omissions of Executive constitute “Cause”

 

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within the meaning of this Section 7.5 shall be decided by the Board based upon a reasonable good faith investigation and determination.  Disability of Executive shall not constitute “Cause.”

 

7.6                               “Change of Control” means the occurrence of any of the following events:

 

(i)                                     The sale, exchange, lease or other disposition or transfer of all or substantially all of the consolidated assets of the Company to a person or group (as such terms are defined or described in Sections 3(a)(9) and 13(d)(3) of the Exchange Act) which will continue the business of the Company in the future; or

 

(ii)                                  A merger or consolidation involving the Company in which the shareholders of the Company immediately prior to such merger or consolidation are not the beneficial owners (within the meaning of Rules 13d-3 and 13d-5 promulgated under the Exchange Act) of more than 75% of the total voting power of the outstanding voting securities of the corporation resulting from such transaction in substantially the same proportion as their ownership of the total voting power of the outstanding voting securities of the Company immediately prior to such merger or consolidation; or

 

(iii)                               The acquisition of beneficial ownership (within the meaning of Rules 13d-3 and 13d-5 promulgated under the Exchange Act) of at least 25% of the total voting power of the outstanding voting securities of the Company by a person or group (as such terms are defined or described in Sections 3(a)(9) and 13(d)(3) of the Exchange Act); or

 

(iv)                              Individuals who, as of November 1, 2014, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to November 1, 2014 whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual was a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a person or group (as such terms are defined or described in Sections 3(a)(9) and 13(d)(3) of the Exchange Act) other than the Board.

 

7.7                               “Code” means Internal Revenue Code of 1986, as amended.

 

7.8                               “Company” means Keysight Technologies, Inc., a Delaware corporation, and any successor thereto.

 

7.9                               “Disability” means the inability of the Executive to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.

 

7.10                        “Eligible Officer” means the Chief Executive Officer of the Company, a Section 16 Officer, other Senior Vice President, a Level II Executive, a Level III Executive, or other Board appointed officer.

 

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7.11                        “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

7.12                        “Level II Executive or Level III Executive” means an employee of the Company as designated by the Company as either a Level II Executive or Level III Executive.

 

7.13                        “Good Reason” means (i) a more than $10,000 reduction of Executive’s rate of compensation as in effect immediately prior to the Effective Date of this Agreement or in effect immediately prior to the occurrence of a Change of Control, whichever is greater, other than reductions in Base Salary that apply broadly to employees of the Company or reductions due to varying metrics and achievement of performance goals for different periods under variable pay programs; (ii) either (A) failure to provide a package of benefits which, taken as a whole, provides substantially similar benefits to those in which Executive is entitled to participate in the day prior to the occurrence of the Change of Control (except that employee contributions may be raised to the extent of any cost increases imposed by third parties) or (B) any action by the Company which would significantly and adversely affect Executive’s participation or reduce Executive’s benefits under any of such plans in existence the day prior to the Change of Control, other than changes that apply broadly to employees of the Company; (iii) change in Executive’s duties, responsibilities, authority, job title, or reporting relationships resulting in a significant diminution of position, excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith which is remedied by the Company within thirty (30) days after notice thereof is given by Executive; (iv) Executive’s relocate to a worksite that is more than 35 miles from Executive’s prior worksite, unless Executive consents to such relocation; (v) failure or refusal of a successor to the Company to assume the Company’s obligations under this Agreement, as provided in Section 8.7; or (vi) material breach by the Company or any successor to the Company of any of the material provisions of this Agreement.  For purposes of clause (iii) of the immediately preceding sentence, Executive’s duties, responsibilities, authority, job title or reporting relationships shall not be considered to be significantly diminished (and therefore shall not constitute “Good Reason”) so long as Executive continues to perform substantially the same functional role for the Company as Executive performed immediately prior to the occurrence of the Change of Control, even if the Company becomes a subsidiary or division of another entity.

 

To constitute “Good Reason”, the Executive must notify the Company of any event purporting to constitute Good Reason within 60 days following the Executive’s knowledge of its existence, and the Company shall have 30 days in which to correct or remove such Good Reason, or such event shall not constitute Good Reason.

 

7.14                        “Health Expense Benefit” means with respect to:

 

(i)                                     the Chief Executive Officer, any other Section 16 officer or Senior Vice President, Eighty-Thousand U.S. Dollars ($80,000); and

 

(ii)                                  a Level II Executive or Level III Executive, or other Board appointed officer, Forty-Thousand U.S. Dollars ($40,000);

 

based on Eligible Officer status determined immediately prior to the Section 1.2 Time.

 

7.15                        “Release” has the meaning set forth in Section 4.3.

 

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7.16                        “Section 16 Officer” means a person who has been determined by the Company to be an “officer” of the Company for purposes of Section 16 of the Exchange Act.

 

7.17                        “Target Bonus” means that amount (expressed as a percentage of Executive’s Base Salary) equal to Executive’s “target bonus” as defined under the Company’s Performance-Based Compensation Plan for Covered Employees (or the comparable term or standard under the Company’s cash incentive plan in effect at the time of Executive’s termination of employment if the Performance-Based Compensation Plan for Covered Employees is no longer in effect at such time) as set for Executive by the Compensation Committee of the Board or other authorized body covering the twelve-month period ending at the end of the performance period during which Executive’s termination of employment occurs.

 

7.18                        “Termination Event” means an involuntary termination of employment described in Section 2.1(a) or a voluntary termination of employment described in Section 2.2(a).

 

ARTICLE VIII.

 

GENERAL PROVISIONS

 

8.1                               Notices.  Any notices provided hereunder must be in writing and such notices or any other written communication shall be deemed effective upon the earlier of personal delivery (including personal delivery by telex, facsimile or email) or the third day after mailing by first class mail, to the Company at its primary office location and to Executive at Executive’s address as listed in the Company’s payroll records.  Any payments made by the Company to Executive under the terms of this Agreement shall be delivered to Executive either in person or at such address as listed in the Company’s payroll records.

 

8.2                               Severability.  It is the intent of the parties to this Agreement that whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provisions had never been contained herein.

 

8.3                               Waiver.  If either party should waive any breach of any provisions of this Agreement, that party shall not thereby be deemed to have waived any preceding or succeeding breach of the same or any other provision of this Agreement.

 

8.4                               Complete Agreement.  This Agreement, including Exhibit A, constitutes the entire agreement between Executive and the Company and it is the complete, final, and exclusive embodiment of their agreement with regard to this subject matter.  It is entered into without reliance on any promise or representation other than those expressly contained herein.

 

8.5                               Counterparts.  This Agreement may be executed in separate counterparts, any one of which need not contain signatures of more than one party, but all of which taken together will constitute one and the same Agreement.

 

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8.6                               Headings.  The headings of the Articles and Sections hereof are inserted for convenience only and shall neither be deemed to constitute a part hereof nor to affect the meaning thereof.

 

8.7                               Successors and Assigns.  This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive and the Company, and their respective successors, assigns, heirs, executors and administrators, except that Executive may not delegate any of Executive’s duties hereunder and may not assign any of Executive’s rights hereunder without the written consent of the Company, which consent shall not be withheld unreasonably.  Any successor to the Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the Company’s obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession.  For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets, whether or not such successor executes and delivers an assumption agreement referred to in the preceding sentence or becomes bound by the terms of this Agreement by operation of law or otherwise.

 

8.8                               Attorney Fees.  If either party hereto brings any action to enforce such party’s rights hereunder, the prevailing party in any such action shall be entitled to recover such party’s reasonable attorneys’ fees and costs incurred in connection with such action.

 

8.9                               Arbitration.  In order to ensure rapid and economical resolution of any dispute which may arise under this Agreement, Executive and the Company agree that any and all disputes or controversies, arising from or regarding the interpretation, performance, enforcement or termination of this Agreement shall submitted to JAMS for non-binding mediation in San Francisco, California.  If complete agreement cannot be reached within 60 days after the date of submission to mediation, any remaining issues will be submitted to JAMS to be resolved by final and binding arbitration under the JAMS Arbitration Rules and Procedures for Employment Disputes.  The reference to JAMS shall refer to any successor to JAMS, if applicable.  BY ENTERING INTO THIS AGREEMENT, THE COMPANY AND EXECUTIVE ACKNOWLEDGE THAT THEY ARE WAIVING THEIR RIGHT TO JURY TRIAL OF ANY DISPUTE COVERED BY THIS AGREEMENT.

 

8.10                        Choice of Law.  All questions concerning the construction, validity and interpretation of this Agreement will be governed by the law of the State of California.

 

8.11                        Construction of Agreement.  In the event of a conflict between the text of the Agreement and any summary, description or other information regarding the Agreement, the text of the Agreement shall control.

 

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IN WITNESS WHEREOF, the parties have executed this Agreement effective on the day and year written above.

 

	
Keysight   Technologies, Inc.,
    	
 
    	
EXECUTIVE
    
	
a   Delaware corporation
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:
    	
 
    

 

15

 

Exhibit A

 

GENERAL RELEASE AND AGREEMENT

 

This General Release and Agreement (the “Agreement”) is made and entered into by                                                 (“Executive”).  The Agreement is part of an agreement between Executive and Keysight Technologies, Inc. (“Keysight”) to terminate Executive’s employment with Keysight on terms that are satisfactory both to Keysight and to Executive.  Therefore, Executive agrees as follows:

 

1.                                      Executive agrees to attend a Functional Exit Interview on                  , 20   at which time all company property and identification will be turned in and the appropriate personnel documents will be executed.  Executive agrees to remove all personal effects from Executive’s current office within seven days of signing this agreement and in any event not later than                  , 20  .

 

2.                                      Executive, on behalf of Executive’s heirs, estate, executors, administrators, successors and assigns does fully release, discharge, and agree to hold harmless Keysight, its officers, agents, employees, attorneys, subsidiaries, affiliated companies, successors and assigns from all actions, causes of action, claims, judgments, obligations, damages, liabilities, costs, or expense of whatsoever kind and character which he may have, relating to, arising out of, or connected with any other matter or event occurring prior to the execution of this Agreement whether or not brought before any judicial, administrative, or other tribunal, including but not limited to:

 

a.                                      any claims relating to employment discrimination on account of race, sex, age, national origin, creed, disability, or other basis, whether or not arising under the Federal Civil Rights Acts, the Age Discrimination in Employment Act, California Fair Employment and Housing Act, the Rehabilitation Act of 1973, the Americans With Disabilities Act, any amendments to the foregoing laws, or any other federal, state, county, municipal, or other law, statute, regulation or order relating to employment discrimination;

 

b.                                      any claims relating to pay or leave of absence arising under the Fair Labor Standards Act, the Family Medical Leave Act, and any similar laws enacted in California;

 

c.                                       any claims for reemployment, salary, wages, bonuses, vacation pay, stock options or other equity-based compensation, acquired rights, appreciation from stock options or other equity-based compensation, benefits or other compensation of any kind; and

 

d.                                      any claims relating to, arising out of, or connected with Executive’s employment with Keysight, whether or not the same be based upon any alleged violation of public policy; compliance (or lack thereof) with any internal Keysight policy, procedure, practice or guideline; or any oral, written, express, and/or implied employment contract or agreement, or the breach of any terms thereof, including but not limited to, any implied covenant of good faith and fair dealing; or any

 

 

federal, state, county or municipal law, statute, regulation, or order whether or not relating to labor or employment.

 

The foregoing release shall not apply to (i) Executive’s rights under the Change of Control Severance Agreement between Executive and the Company (the “Change of Control Agreement”); (ii) Executive’s rights under any employee benefit plan sponsored by the Company; (iii) Executive’s rights to indemnification under the Company’s bylaws or other governing instruments or under any agreement addressing indemnification between Executive and the Company or under any merger or acquisition agreement addressing such subject matter; (iv) Executive’s rights of insurance under any liability policy covering the Company’s officers or (v) claims which Executive may not release as a matter of law, including, but not limited to, indemnification claims under applicable law.

 

3.                                      Executive represents and warrants that Executive has not assigned any claim or authorized any other person or entity to assert any claim on Executive’s behalf.  Further, Executive agrees that under this Agreement Executive waives any claim for damages incurred at any time in the future because of alleged continuing effects of past wrongful conduct involving any such claims and any right to sue for injunctive relief against the alleged continuing effects of past wrongful conduct involving such claims.

 

4.                                      In entering into this Agreement, the parties have intended that this Agreement be a full and final settlement of all matters, whether or not presently disputed, that could have arisen between them.

 

5.                                      Executive understands and expressly agrees that this Agreement extends to all claims of every nature and kind whatsoever, known or unknown, suspected or unsuspected, past or present and all rights under Section 1542 of the California Civil Code and/or any similar statute or law or any other jurisdiction are hereby expressly waived.  Such section reads as follows:

 

“Section 1542.  A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.”

 

6.                                      It is expressly agreed that the claims released pursuant to this Agreement include all claims against individual employees of Keysight and its affiliate, whether or not such employees were acting within the course and scope of their employment.

 

7.                                      Executive agrees that the terms, amount and fact of settlement shall be confidential unless Keysight needs to make any required disclosure of any agreements between Keysight and Executive.  Therefore, except as may be necessary to enforce the rights contained herein in an appropriate legal proceeding or as may be necessary to receive professional services from, an attorney, accountant, or other professional adviser in order for such adviser to render professional services, Executive agrees not to disclose any information concerning

 

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this Agreement or the Change of Control Agreement to anyone, including, but not limited to, past, present and future employees of Keysight, until such time of the public filings.

 

8.                                      At Keysight’s request, Executive shall cooperate fully in connection with any legal matter, proceeding or action relating to Keysight.

 

9.                                      The terms of this Agreement are intended by the parties as a final expression of their agreement with respect to such terms as are included in this Agreement and may not be contradicted by evidence of any prior or contemporaneous agreement.  The parties further intend that this Agreement constitutes the complete and exclusive statement of its terms and that no extrinsic evidence whatsoever may be introduced in any judicial or other proceeding, if any, involving this Agreement.  No modification of this Agreement shall be effective unless in writing and signed by both parties hereto.

 

10.                               It is further expressly agreed and understood that Executive has not relied upon any advice from Keysight and/or its attorneys whatsoever as to the taxability, whether pursuant to federal, state, or local income tax statutes or regulations or otherwise, of the payments made under the Change of Control Agreement and that Executive will be solely liable for all tax obligations, if any, arising from payment of the sums specified in the Change of Control Agreement and shall hold Keysight harmless from any tax obligations arising from said payment.

 

11.                               If there is any dispute arising out of or related to this Agreement, which cannot be settled by good faith negotiation between the parties, such dispute will be submitted to JAMS for non-binding mediation in San Francisco, California.  If complete agreement cannot be reached within 60 days of submission to mediation, any remaining issues will be submitted to JAMS for final and binding arbitration pursuant to JAMS Arbitration Rules and Procedures for Employment Disputes.  The reference to JAMS shall refer to any successor to JAMS, if applicable.  BY ENTERING INTO THIS AGREEMENT, EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE IS WAIVING EXECUTIVE’S RIGHT TO JURY TRIAL OF ANY DISPUTE COVERED BY THIS AGREEMENT.

 

12.                               The following notice is provided in accordance with the provisions of Federal Law:

 

You have up to twenty-one days (21) days from the date this General Release and Agreement is given to you in which to accept its terms, although you may accept it any time within those twenty-one days.  You are advised to consult with an attorney regarding this Agreement.  You have the right to revoke your acceptance of this Agreement at any time within seven (7) days from the date you sign it, and this Agreement will not become effective and enforceable until this seven (7) day revocation period has expired.  To revoke your acceptance, a written notice of revocation must be received by Keysight, addressed to Keysight Technologies, Inc., Attention:  General Counsel located at 1400 Fountaingrove Parkway, Santa Rosa, CA  95403 on or before the seventh day after you sign this Agreement.

 

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EXECUTIVE FURTHER STATES THAT EXECUTIVE HAS HAD THE OPPORTUNITY TO CONSULT WITH THE ATTORNEY OF EXECUTIVE’S CHOICE, THAT EXECUTIVE HAS CAREFULLY READ THIS AGREEMENT, THAT EXECUTIVE HAS HAD AMPLE TIME TO REFLECT UPON AND CONSIDER ITS CONSEQUENCES, THAT EXECUTIVE FULLY UNDERSTANDS ITS FINAL AND BINDING EFFECT, THAT THE ONLY PROMISES MADE TO EXECUTIVE TO SIGN THIS AGREEMENT ARE THOSE STATED ABOVE OR IN THAT CHANGE OF CONTROL SEVERANCE AGREEMENT BETWEEN KEYSIGHT AND EXECUTIVE, AND THAT EXECUTIVE IS SIGNING THIS AGREEMENT VOLUNTARILY.

 

IN WITNESS WHEREOF, this Agreement has been executed in duplicate originals on the date indicated below, and shall become effective as indicated above.

 

EXECUTIVE

 

	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    

 

4EXHIBIT 10.2

 

KEYSIGHT TECHNOLOGIES, INC.

 

2014 Equity and Incentive Compensation Plan

Global Stock Award Agreement

For Standard Awards Granted to Employees

 

Section 1.                                          Grant of Stock Award.  This Global Stock Award Agreement, including any additional terms for your country in Appendix A attached hereto (collectively this “Award Agreement”), dated as of the Grant Date is entered into between Keysight Technologies, Inc. (the “Company”), and you as an individual (the “Awardee”) who has been granted Restricted Stock Units (this “Stock Award”) pursuant to the Keysight Technologies, Inc. 2014 Equity and Incentive Compensation Plan (the “Plan”).  This Stock Award represents the right to receive                            shares of the Company’s $0.01 par value voting common stock (“Shares”) subject to the fulfillment of the conditions set forth below and pursuant to and subject to the terms and conditions set forth in the Plan.  The Stock Award is an unfunded and unsecured promise by the Company to deliver Shares in the future.  Capitalized terms used and not otherwise defined herein are used with the same meanings as in the Plan.

 

Section 2.                                          Vesting Period.  So long as Awardee remains an Awardee Eligible to Vest and has not given or been given notice of termination of his Service, the Stock Award shall vest [INSERT VESTING SCHEDULE].

 

Section 3.                                          Nontransferability of Stock Award.  This Stock Award shall not be transferable by Awardee otherwise than by will or by the laws of descent and distribution.  The terms of this Stock Award shall be binding on the executors, administrators, heirs and successors of Awardee.

 

Section 4.                                          Termination of Employment or Service; Change of Control.

 

(a)                                 General.  Unless otherwise provided in this Section 4, any unvested Stock Award shall be forfeited immediately upon the date that Awardee gives or is given notice of termination of his or her Service or otherwise ceases to be an Awardee Eligible to Vest or, if an Awardee has elected to defer settlement of the Stock Award, earlier upon the Awardee’s “separation from service” within the meaning of Section 409A of the Code (the “Termination Date”) (regardless of the reason for such termination and whether or not later found invalid or in breach of employment laws in the jurisdiction where Awardee is employed or the terms of Awardee’s employment agreement, if any).  Unless otherwise expressly provided in this Award Agreement or determined by the Administrator or its designee, Awardee’s right to vest in the Stock Award under the Plan, if any, will terminate as of such Termination Date and will not be extended by any notice period (e.g., Awardee’s period of Service would not include any contractual notice period or any period of “garden leave” or similar period mandated under employment laws in the jurisdiction where Awardee is employed, including, but not limited to statutory law, regulatory law and/or common law, or the terms of Awardee’s employment agreement, if any); the Administrator or its designee shall have the exclusive discretion to determine when Awardee is no longer an Awardee Eligible to Vest for purposes of the Stock Award grant.

 

 

(b)                                 Awardee’s Death.  Notwithstanding any provision in the Plan to the contrary, if an Awardee dies while providing Service or after Awardee’s retirement in accordance with Section 4(d) hereof, the Stock Award shall immediately vest in full.  The vested portion of the Stock Award shall be delivered to the executor or administrator of Awardee’s estate or, if none, to the person(s) entitled to receive the vested Stock Award under Awardee’s will or the laws of descent or distribution.

 

(c)                                  Awardee’s Disability or Workforce Management Program Termination.  Notwithstanding any provision in the Plan to the contrary, if an Awardee terminates Service due to total and permanent disability or due to participation in the Company’s Workforce Management Program, the Stock Award shall vest in full; provided, however, that, with respect to an Awardee who has elected to defer settlement of the Stock Award, this Section 4(c) shall not apply to any termination of Service during the 12-month period following the later of (i) the Grant Date and (ii) the date of such deferral election, except upon an Awardee’s “disability” within the meaning of Section 409A of the Code occurring within such period (in which case such deferral election shall not be given effect except as permitted under Section 409A of the Code).

 

(d)                                 Awardee’s Retirement.  Notwithstanding any provision in the Plan to the contrary, if an Awardee terminates Service due to retirement in accordance with the applicable local retirement policy (as determined by the Company), any unvested Stock Award will continue to vest under the vesting schedule set forth in Section 2 above; provided, however, that, with respect to an Awardee who has elected to defer settlement of the Stock Award, this Section 4(d) shall not apply to any termination of Service during the 12-month period following the later of (i) the Grant Date and (ii) the date of such deferral election.  In addition, except as the Administrator or its designee shall determine otherwise, if Awardee becomes eligible to retire or retires in accordance with the applicable local retirement policy, the Stock Award shall immediately vest as to that portion of the Shares necessary to satisfy any Tax-Related Items (as described in Section 7 below) in connection with such eligibility for retirement or retirement and such Shares shall be used to satisfy such Tax-Related Items (either by withholding in Shares or forcing the sale of Shares pursuant to the authority in this Award Agreement, at the Company’s sole discretion); provided, however, that, with respect to an Awardee who has elected to defer settlement of the Stock Award, this Section 4(d) shall not apply during the 12-month period following the later of (i) the Grant Date and (ii) the date of such deferral election.  The Administrator, in its sole discretion, may amend or eliminate the provisions of this Section 4(d), as it determines is necessary or advisable in view of applicable local laws or legal judgments.

 

(e)                                  Change of Control.  In the event of a Change of Control, the Stock Award shall vest in full immediately prior to the closing of the transaction; provided, however, that notwithstanding anything set forth herein or in the Plan, with respect to an Awardee who has elected to defer settlement of the Stock Award, this Section 4(e) shall apply during the 12-month period following the later of (i) the Grant Date and (ii) the date of such deferral election only if such Change of Control qualifies as a change in control event under Section 409A of the Code (in which case such deferral election shall not be given effect except as permitted under Section 409A of the Code).  The foregoing shall not apply where the Stock Award is assumed, converted or replaced in full by the successor corporation or a parent or subsidiary of the successor; provided, however, that in the event of a Change of Control in which one or more of the

 

 

successor or a parent or subsidiary of the successor has issued publicly traded equity securities, the assumption, conversion, replacement or continuation shall be made by an entity with publicly traded securities and shall provide that the holders of such assumed, converted, replaced or continued Stock Awards shall be able to acquire such publicly traded securities.

 

Section 5.                                          Settlement of Stock Award.  To the extent an Awardee has not elected to defer settlement of the Stock Award, except as provided in the following sentence, the Stock Award shall be settled in Shares on the earlier of (a) the dates that the Stock Award vests in accordance with Section 2 hereof or (b) the events set forth in Section 4(b), (c) or (e) hereof.  If Awardee terminates Service due to retirement in accordance with Section 4(d) (or, in the case of an Awardee subject to U.S. taxation, it is possible for the Awardee to terminate Service due to retirement in accordance with Section 4(d) during the vesting period described in Section 2), the Stock Award shall be settled in Shares on the normal vesting dates set forth in Section 2 above, subject to the accelerated vesting of a portion of the Stock Award as set forth in Section 4(d) above, which constitute fixed payment dates for purposes of Section 409A of the Code, or if earlier, upon a Change of Control pursuant to Section 4(e) hereof.  To the extent an Awardee has elected to defer settlement of the Stock Award, the vested portion of the Stock Award shall be settled in Shares on the payment date elected by Awardee which shall be either (a) the Awardee’s “separation from service” as defined by Section 409A of the Code (in which case settlement shall occur within 15 days after the 6-month anniversary of such separation (or, if earlier, within 15 days after the Awardee’s death) or (b) the first business day of the calendar year following such anniversary year of the Awardee’s Separation from Service as timely elected by the Awardee in accordance with procedures approved by the Committee.

 

Section 6.                                          Restrictions on Issuance of Shares of Common Stock.  The Company shall not be obligated to issue any Shares pursuant to this Stock Award unless the Shares are at that time effectively registered or exempt from registration under the U.S. Securities Act of 1933, as amended, and as applicable, local laws.  Further, notwithstanding anything to the contrary herein, the Company shall not be obligated to issue any Shares pursuant to this Stock Award if such issuance violates or is not in compliance with any Applicable Laws.

 

Section 7.                                          Responsibility for Taxes.  Awardee acknowledges that, regardless of any action taken by the Company or, if different, the entity to which Awardee is providing Service (the “Employer”) the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to Awardee’s participation in the Plan and legally applicable to Awardee (“Tax-Related Items”), is and remains Awardee’s responsibility and may exceed any amount withheld by the Company or the Employer.  Awardee further acknowledges that the Company and/or the Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Stock Award, including, but not limited to, the grant, vesting or settlement of the Stock Award, the subsequent sale of Shares acquired pursuant to such settlement and the receipt of any dividends or other distributions; and (2) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Stock Award to reduce or eliminate Awardee’s liability for Tax-Related Items or achieve any particular tax result.  Further, if Awardee is subject to Tax-Related Items in more than one jurisdiction between the Grant Date and the date of any relevant taxable or tax withholding event, as applicable, Awardee

 

 

acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

 

Awardee authorizes the Company and/or the Employer to, in the sole discretion of the Company and/or the Employer, withhold all applicable Tax-Related Items legally payable by Awardee from Awardee’s wages or other cash compensation paid to Awardee by the Company and/or the Employer, within legal limits, or from proceeds of the sale of Shares.  Alternatively, or in addition, if permissible under local law, the Company may in its sole discretion (1) sell or arrange for the sale of Shares that Awardee acquires to meet the withholding obligation for Tax-Related Items (on Awardee’s behalf pursuant to this authorization), and/or (2) withhold in Shares, provided that the Company only withholds the amount of Shares necessary to satisfy the minimum withholding amount.  Notwithstanding the foregoing, if Awardee is an officer of the Company within the meaning of the Exchange Act, then the Company will withhold in Shares unless the use of such withholding method is not practicable under applicable tax or securities laws or has materially adverse accounting consequences, in which case, the obligation for Tax-Related Items may be satisfied by one or a combination of methods (1) and (2) above.

 

Depending on the withholding method, the Company may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding rates or other applicable withholding rates, including maximum applicable rates, in which case Awardee will receive a refund of any over-withheld amount in cash and will have no entitlement to the Common Stock equivalent.  If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, Awardee is deemed to have been issued the full number of Shares subject to the vested Stock Award, notwithstanding that a number of the Shares are held back solely for the purpose of paying the Tax-Related Items.

 

Finally, Awardee agrees to pay to the Company or the Employer, any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of Awardee’s participation in the Plan that cannot be satisfied by the means previously described.  The Company may refuse to issue or deliver the Shares or the proceeds of the sale of Shares, if Awardee fails to comply with Awardee’s obligations in connection with the Tax-Related Items.

 

Section 8.                                          Adjustment.  The number of Shares subject to this Stock Award and the price per Share, if any, of such Shares may be adjusted by the Company from time to time pursuant to the Plan.

 

Section 9.                                          Nature of Award.  In accepting the grant of this Stock Award, Awardee acknowledges, understands and agrees that:

 

(a)                                 the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan;

 

(b)                                 the grant of the Stock Award is voluntary and occasional and does not create any contractual or other right to receive future grants of Stock Awards, or benefits in lieu of Stock Awards, even if Stock Awards have been granted in the past;

 

 

(c)                                  all decisions with respect to future Stock Award or other grants, if any, will be at the sole discretion of the Company;

 

(d)                                 the Stock Award grant and Awardee’s participation in the Plan shall not create a right to provide Service or be interpreted as forming an employment or services contract with the Company, the Employer or any Subsidiary or Affiliate and shall not interfere with the ability of the Company, the Employer or any Subsidiary or Affiliate, as applicable, to terminate Awardee’s Service;

 

(e)                                  Awardee is voluntarily participating in the Plan;

 

(f)                                   the Stock Award and the Shares subject to the Stock Award are not intended to replace any pension rights or compensation;

 

(g)                                  the Stock Award and the Shares subject to the Stock Award, and the income and value of same, are not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, profit-sharing payments, pension, retirement or welfare benefits or similar payments;

 

(h)                                 the future value of the underlying Shares is unknown, indeterminable and cannot be predicted with certainty, the Company makes no representation regarding such future value and neither the Company, the Employer nor any Subsidiary or Affiliate is responsible for any decrease in value or any foreign exchange fluctuations between Awardee’s local currency and the United States Dollar that may affect such value;

 

(i)                                     this Award Agreement is between Awardee and the Company, and that the Employer (if different) is not a party to this Award Agreement;

 

(j)                                    in consideration of the grant of the Stock Award to which Awardee is otherwise not entitled, no claim or entitlement to compensation or damages shall arise from forfeiture of the Stock Award resulting from the termination of Awardee’s Service (for any reason whatsoever whether or not later found to be invalid or in breach of employment laws in the jurisdiction where Awardee is employed or the terms of Awardee’s employment agreement, if any);

 

(k)                                 Applicable Laws (including any rules or regulations governing securities, foreign exchange, tax, labor or other matters) of the country in which Awardee is residing or working at the time of grant or vesting of the Stock Award or the sale of Shares may subject Awardee to additional procedural or regulatory requirements that Awardee solely is responsible for and must independently fulfill in relation to ownership or sale of such Shares; and

 

(l)                                     the ownership of Shares or assets and/or the holding of a bank or brokerage account may subject Awardee to reporting requirements imposed by tax, banking, and/or other authorities in Awardee’s country, that Awardee solely is responsible for complying with such requirements, and that any cross-border cash remittance made to transfer of proceeds received upon the sale of Shares must be made through a locally authorized financial institution

 

 

or registered foreign exchange agency and may require Awardee to provide to such entity certain information regarding the transaction.

 

Section 10.                                   No Advice Regarding Grant.    The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding Awardee’s participation in the Plan, or Awardee’s acquisition or sale of the underlying Shares.  Awardee is hereby advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

 

Section 11.                                   Data Privacy.  Awardee hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Awardee’s personal data as described in this Award Agreement and any other Stock Award grant materials (“Data”) by and among, as applicable, the Employer, the Company and its Subsidiaries and Affiliates for the exclusive purpose of implementing, administering and managing Awardee’s participation in the Plan.

 

Awardee understands that the Company and the Employer may hold certain personal information about Awardee, including, but not limited to, Awardee’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any Shares or directorships held in the Company, details of all Stock Awards or any other entitlement to Shares awarded, canceled, exercised, vested, unvested or outstanding in Awardee’s favor, for the exclusive purpose of implementing, administering and managing the Plan.

 

Awardee understands that Data will be transferred to Fidelity Stock Plan Services, LLC or such other company that may provide administrative services in connection with the Plan in the future (the “External Administrator”), or such other stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan.  Awardee understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipients’ country (e.g., the United States) may have different data privacy laws and protections than Awardee’s country.  Awardee understands that if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential recipients of the Data by contacting his or her local human resources representative.  Awardee authorizes the Company, the External Administrator and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing his or her participation in the Plan.  Awardee understands that Data will be held only as long as is necessary to implement, administer and manage Awardee’s participation in the Plan.  Awardee understands if he or she resides outside the United States, he or she may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing his or her local human resources representative.  Further, Awardee understands that he or she is providing the consents herein on a purely voluntary basis.  If Awardee does not consent, or if Awardee later seeks to revoke his or her consent, his or her Service and career with the Employer will not be adversely affected; the only consequence of refusing or

 

 

withdrawing Awardee’s consent is that the Company would not be able to grant Awardee the Stock Award or other equity awards or administer or maintain such awards.  Therefore, Awardee understands that refusing or withdrawing his or her consent may affect Awardee’s ability to participate in the Plan.  For more information on the consequences of Awardee’s refusal to consent or withdrawal of consent, Awardee understands that he or she may contact his or her local human resources representative.

 

Section 12.                                   No Rights Until Issuance.  Awardee shall have no rights hereunder as a shareholder with respect to any Shares subject to this Stock Award until the date that Shares are issued to Awardee.  The Administrator in its sole discretion may substitute a cash payment in lieu of Shares, such cash payment to be equal to the Fair Market Value of the Shares on the date that such Shares would have otherwise been issued under the terms of the Award Agreement.

 

Section 13.                                   Administrative Procedures.  Awardee agrees to follow the administrative procedures that may be established by the Company and/or the External Administrator for participation in the Plan which may include a requirement that the Shares issued upon settlement be held by the External Administrator until Awardee disposes of such Shares.  Awardee agrees to update the Company with respect to Awardee’s home address, contact information and any information necessary for the Company or one of its Affiliates to process any required tax withholding or reporting related to this Stock Award.

 

Section 14.                                   Governing Law and Venue.  This Award Agreement shall be governed by and construed according to the laws of the State of Delaware without regard to its principles of conflicts of laws, as provided in the Plan.  Any proceeding arising out of or relating to this Award Agreement or the Plan may be brought only in the state or federal courts located in the Northern District of California where this grant is made and/or to be performed, and the parties to this Award Agreement consent to the exclusive jurisdiction of such courts.

 

Section 15.                                   Amendment.  This Stock Award may be amended as provided in the Plan.

 

Section 16.                                   Language.  If Awardee has received this Award Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.

 

Section 17.                                   Electronic Delivery.  The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means.  Awardee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

 

Section 18.                                   Severability.  The provisions of this Award Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

 

Section 19.                                   Appendix A.  Notwithstanding any provisions in this Award Agreement, the Stock Award grant shall be subject to any special terms and conditions set forth in Appendix A to this Award Agreement for Awardee’s country.  Moreover, if Awardee relocates to one of the countries included in Appendix A, the special terms and conditions for such country will apply to

 

 

Awardee, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal or administrative reasons.  Appendix A constitutes part of this Award Agreement.

 

Section 20.                                   Imposition of Other Requirements.  The Company reserves the right to impose other requirements on Awardee’s participation in the Plan, on the Stock Award and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require Awardee to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

 

Section 21.                                   Insider Trading Restrictions/Market Abuse Laws.  Awardee acknowledges that, depending on his or her country of residence, Awardee may be subject to insider trading restrictions and/or market abuse laws, which may affect his or her ability to acquire or sell Shares or rights to Shares (e.g., Stock Awards) under the Plan during such times as Awardee is considered to have “inside information” regarding the Company (as defined by any applicable laws in Awardee’s country).  Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy.  Awardee is responsible for ensuring compliance with any applicable restrictions and is encouraged to consult his or her personal legal advisor on this matter.

 

Section 22.                                   Waiver.  Awardee acknowledges that a waiver by the Company of breach of any provision of this Award Agreement shall not operate or be construed as a waiver of any other provision of this Award Agreement, or of any subsequent breach by Awardee or any other Awardee.

 

Section 23.                                   Section 409A of the Code.

 

(a)                                 This Stock Award shall be administered, interpreted, and construed in a manner that does not result in the imposition on Awardee of any additional tax, penalty, or interest under Section 409A of the Code.  The preceding provision, however, shall not be construed as a guarantee of any particular tax effect and the Company shall not be liable to Awardee if any payment made under this Stock Award is determined to result in an additional tax, penalty, or interest under Section 409A of the Code, nor for reporting in good faith any payment made under any Award as an amount includible in gross income under Section 409A of the Code.

 

(b)                                 “Termination of employment,” “resignation,” or words of similar import, as used in this Stock Award means for purposes of payments under this Award that are payments of deferred compensation subject to Section 409A of the Code, Awardee’s “separation from service” as defined in Section 409A of the Code.

 

(c)                                  To the extent any payment or settlement that is a payment of deferred compensation subject to Section 409A of the Code is contingent upon a Change of Control, such payment or settlement shall only occur if the Change of Control would also constitute a change in ownership or effective control of the Company, or a change in the ownership of a substantial portion of the assets of the Company, within the meaning of Section 409A of the Code.  The vesting of any Award shall not be affected by the preceding sentence.

 

 

(d)                                 Except as would not be paid earlier in accordance with the terms hereof, if a payment obligation under this Stock Award arises on account of Awardee’s separation from service while Awardee is a “specified employee” (as defined in Section 409A of the Code), any payment of “deferred compensation” (as defined under Treasury Regulation Section 1.409A-1(b)(1), after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)) that is scheduled to be paid within six (6) months after such separation from service shall accrue without interest and shall be paid within 15 days after the end of the six-month period beginning on the date of such separation from service or, if earlier, within 15 days after his or her death.

 

(e)                                  The deferred settlement of this Stock Award, if any, is made in reliance on Section 1.409A-2(a)(5) and shall be interpreted accordingly.  Any provision of this Agreement, the Plan or any later amendment to this Agreement or the Plan that would contravene Section 1.409A-2(a)(5) shall not be effective.

 

Section 24.                                   Recoupment.  This Stock Award is subject to the terms of the Keysight Technologies Executive Compensation Recoupment Policy in the form approved by the Administrator as of the Grant Date (the “Policy”), if and to the extent that the Policy by its terms applies to the Stock Award and Awardee; and the terms of the Policy as of the Grant Date are incorporated by reference herein and made a part hereof.

 

Section 25.                                   Entire Agreement.  The Plan is incorporated herein by reference.  The Plan, this Award Agreement (including Appendix A attached hereto), and any deferral election applicable hereto constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Awardee with respect to the subject matter hereof, and may not be modified adversely to Awardee’s interest except by means of a writing signed by the Company and Awardee, unless such modification is deemed necessary by the Administrator in order to comply with Applicable Laws.

 

Section 26.                                   Acceptance and Rejection.  This Award Agreement is one of the documents governing this Stock Award, which Awardee may accept or reject online through the External Administrator’s website.  If Awardee has not rejected this Stock Award by the time of the first vesting event, Awardee will be deemed to have accepted this Stock Award, and the Shares vested pursuant to the Stock Award will be issued and taxed accordingly.  Further, by accepting the grant of this Stock Award (whether affirmatively or by failing to reject the Award, Awardee agrees that this Stock Award is granted under and governed by the terms and conditions of the Plan and this Award Agreement (including Appendix A), and Awardee acknowledges that he or she agrees to accept as binding, conclusive and final all decisions or interpretations of the Company upon any questions relating to the Plan and Award Agreement.

 

 

IN WITNESS WHEREOF, the parties have executed this Agreement effective on the day and year written above.

 

	
 
    	
 
    
	
Keysight   Technologies, Inc.,
    	
AWARDEE
    
	
a   Delaware corporation
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Signature
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
Title:
    	
 
    

 

 

APPENDIX A

 

KEYSIGHT TECHNOLOGIES, INC.

 

2014 Equity and Compensation Plan

Award Agreement

For Standard Awards Granted to Employees

 

COUNTRY-SPECIFIC TERMS AND CONDITIONS

 

All capitalized terms used in this Appendix A that are not defined herein have the meanings defined in the Plan or the Award Agreement (the “Award Agreement”).  This Appendix A constitutes part of the Award Agreement.

 

This Appendix A includes additional or different terms and conditions that govern the Stock Award if Awardee works or resides in one of the countries listed below.  In the event of any conflict or inconsistency between the terms of this Appendix A and the Award Agreement, the terms of this Appendix A shall govern.

 

Awardee understands that if Awardee is a citizen or resident of a country other than the one in which he or she is currently working, transfers Service and/or residency after the Grant Date or is considered a resident of another country for local law purposes, the Company shall, in its discretion, determine to what extent the terms and conditions contained herein shall apply to Awardee.

 

ARGENTINA

 

There are currently no country-specific provisions.

 

AUSTRALIA

 

Australian Offer Document.  Awardee understands and agrees that Awardee’s right to participate in the Plan and Stock Awards granted under the Plan are subject to an Australian Offer Document.  Awardee’s right to be granted and vest in the Stock Awards and acquire Shares under the Plan is subject to the terms and conditions as stated in the Australian Offer Document, the Plan and the Award Agreement.

 

AUSTRIA

 

There are currently no country-specific provisions.

 

BELGIUM

 

There are currently no country-specific provisions.

 

 

BRAZIL

 

Compliance with Law.  By accepting the Stock Award, Awardee acknowledges his or her agreement to comply with applicable Brazilian laws and to pay any and all applicable taxes associated with the Stock Award, the receipt of any dividends, and the sale of Shares acquired under the Plan.

 

Nature of Award Acknowledgment.  This provision supplements Section 9 of the Award Agreement:

 

By accepting the Stock Award, Awardee acknowledges that he or she is making an investment decision, the Shares will be issued to Awardee only if the vesting conditions are met and the value of the underlying Shares is not fixed and may increase or decrease in value over the vesting period without compensation to Awardee.

 

CANADA

 

Settlement in Shares.  Notwithstanding any discretion in the Plan or the Award Agreement to settle the Stock Award in cash, the Stock Award will be settled in Shares only.  The Stock Award does not provide any right for Awardee to receive a cash payment.

 

Termination of Service.  Awardee understands and agrees that, in the event of termination of Awardee’s Service, Awardee’s right to participate in the Plan and the treatment of Awardee’s Stock Award, if any, will be governed in accordance with Section 4 of the Award Agreement, and not under employment laws in the jurisdiction where Awardee is providing Service, including, but not limited to statutory law, regulatory law and/or common law.

 

The following provisions will apply if Awardee is a resident of Quebec:

 

Language Consent.  The parties acknowledge that it is their express wish that the Award Agreement, as well as all documents, notices and legal proceedings entered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English.

 

Consentement Relatif à la Langue Utilisée. Les parties reconnaissent avoir exigé la rédaction en anglais de la présente convention (« Award Agreement »), ainsi que de tous documents exécutés, avis donnés et procédures judiciaires intentées en vertu de ou liés directement ou indirectement à la présente convention (« Award Agreement »).

 

Data Privacy.  This provision supplements Section 11 of the Award Agreement:

 

Awardee hereby authorizes the Company and the Company’s representatives to discuss with and obtain all relevant information from all personnel, professional or not, involved in the administration and operation of the Plan.  Awardee further authorizes the Company, any Subsidiary or Affiliate and the External Administrator to disclose and discuss the Plan with their advisors.  Awardee further authorizes the Company, any Subsidiary or Affiliate and the External Administrator to record such information and to keep such information in his or her employee file.

 

 

CHINA

 

These provisions apply only to Awardees who are People’s Republic of China (“PRC”) nationals, unless otherwise determined by the Company or required by the State Administration of Foreign Exchange (“SAFE”).

 

Vesting Period.  This provision supplements Section 2 of the Award Agreement:

 

Notwithstanding anything to the contrary in the Award Agreement, the Stock Award shall not vest and no Shares shall be issued to Awardee unless and until all necessary exchange control or other approvals with respect to the Stock Award under the Plan have been obtained from SAFE.  In the event that approval from SAFE (“SAFE Approval”) has not been obtained prior to any date(s) on which any portion of the Stock Award is scheduled to vest in accordance with the vesting schedule set forth in Section 2 of the Award Agreement, such portion of the Stock Award will not vest until such SAFE Approval is obtained (the “Actual Vesting Date”).  If Awardee’s Termination Date occurs prior to the Actual Vesting Date, Awardee shall not be entitled to vest in any portion of the Stock Award and the Stock Award shall be forfeited without any liability to the Company or its Subsidiaries or Affiliates.

 

Exchange Control Restrictions.  Awardee understands and agrees that he or she will be required to immediately repatriate to China the proceeds from the sale of any Shares acquired under the Plan or from any cash dividends paid on such Shares.  Awardee further understands that such repatriation of the proceeds will need to be effected through a special exchange control account established by the Company or an Affiliate or Subsidiary, and Awardee hereby consents and agrees that the proceeds may be transferred to such account by the Company (or its designated broker) on Awardee’s behalf prior to being delivered to Awardee.  Awardee also agrees to sign any agreements, forms and/or consents that may be reasonably requested by the Company (or the External Administrator) to effectuate such transfers.

 

The proceeds may be paid to Awardee in U.S. Dollars or local currency at the Company’s discretion.  If the proceeds are paid to Awardee in U.S. Dollars, Awardee understands that he or she will be required to set up a U.S. Dollar bank account in China so that the proceeds may be deposited into this account.  If the proceeds are paid to Awardee in local currency, (1) Awardee acknowledges that the Company is under no obligation to secure any particular currency conversion rate and that the Company may face delays in converting the proceeds to local currency due to exchange control restrictions, and (2) Awardee agrees to bear any currency fluctuation risk between the time the Shares are sold or dividends are paid and the time the proceeds are converted to local currency and distributed to Awardee.  Awardee agrees to comply with any other requirements that may be imposed by the Company in the future in order to facilitate compliance with exchange control requirements in China.

 

Termination of Service.  Notwithstanding anything to the contrary in the Plan or the Award Agreement, due to PRC exchange control restrictions, Awardee agrees that, to the extent that Awardee holds any Shares on the date that is ninety (90) calendar days after Awardee’s Termination Date (or such other period as may be required by SAFE), Awardee authorizes the Company’s designated broker to sell such Shares on Awardee’s behalf at that time or as soon as is administratively practical thereafter.  Awardee further agrees that the Company is authorized to instruct its designated broker to assist with the mandatory sale of the Shares (on Awardee’s

 

 

behalf pursuant to this authorization), and Awardee expressly authorizes such broker to complete the sale of such Shares.  Awardee acknowledges that the Company’s designated broker is under no obligation to arrange for the sale of Shares at any particular price.  Upon the sale of the Shares, the Company agrees to pay the cash proceeds from the sale, less any brokerage fees or commissions, to Awardee in accordance with applicable exchange control laws and regulations and provided any liability for Tax-Related Items has been satisfied.

 

DENMARK

 

Settlement in Shares.  Notwithstanding any discretion in the Plan or the Award Agreement to settle the Stock Award in cash, the Stock Award will be settled in Shares only.  The Stock Award does not provide any right for Awardee to receive a cash payment.

 

Vesting Period.  This provision replaces Section 2 of the Award Agreement in its entirety.

 

So long as Awardee remains an Awardee Eligible to Vest and has not given or been given notice of termination of his Service, the Stock Award shall vest as to 100% of the shares on the third anniversary of the Grant Date stated in Section 1 of the Award Agreement.

 

Termination of Employment or Service.  This provision supplements Section 4(a) of the Award Agreement.

 

Unless otherwise provided in Section 4(b), (c), or (d) of the Award Agreement, if an Awardee is terminated by the Company for any reason other than breach, any unvested Stock Award will continue to vest under the vesting schedule set forth in Section 2 of the Award Agreement (as replaced by the above provision in this Appendix A). In the event that Awardee resigns his or her Service or is terminated for breach by the Company, any unvested portion of the Stock Award shall be forfeited immediately on the Termination Date.

 

Danish Stock Option Act.  By accepting this Stock Award, Awardee acknowledges that he or she has received an Employer Statement translated into Danish, which is being provided to comply with the Danish Stock Option Act.

 

FINLAND

 

There are currently no country-specific provisions.

 

FRANCE

 

French-Qualified Stock Award.  This Stock Award is intended to qualify for specific tax and social security treatment in France under Section L. 225-197-1 to L. 225-197-6-1 of the French Commercial Code, as amended (a “French-qualified” Stock Award).  Certain events may affect the status of the Stock Award as French-qualified and the Stock Award may be disqualified in the future.  The Company does not make any undertaking or representation to maintain the qualified status of the Stock Award.  If the Stock Award no longer qualifies as a French-qualified Stock Award, the specific tax and social security treatment will not apply, and Awardee will be

 

 

required to pay his or her portion of social security contributions resulting from the Stock Award (as well as any income tax that is due).

 

Plan and Sub-Plan Terms.  The Stock Award is subject to the terms and conditions of the Plan and the Rules of the Keysight Technologies, Inc. 2014 Equity and Incentive Compensation Plan for Restricted Stock Units Granted to Employees in France (the “French RSU Sub-plan”).  To the extent that any term is defined in both the Plan and the French RSU Sub-plan, for purposes of this grant of a French-qualified Stock Award, the definitions in the French RSU Sub-plan shall prevail.

 

Vesting Period.  This provision replaces Section 2 of the Award Agreement in its entirety.

 

So long as Awardee remains an Awardee Eligible to Vest and has not given or been given notice of termination of his Service, the Stock Award shall vest as to 100% of the Shares on the second anniversary of the Grant Date referenced in Section 1 of the Award Agreement.

 

Settlement in Shares.  Notwithstanding any discretion in the Plan or the Award Agreement to settle the Stock Award in cash, the French-qualified Stock Award will be settled in Shares only.  The Stock Award does not provide any right for Awardee to receive a cash payment.

 

Termination of Service Due to Death. This provision replaces Section 4(b) of the Award Agreement in its entirety:

 

Notwithstanding any provision in the Plan or Award Agreement to the contrary, in the event of Awardee’s death while employed by the Company or a Subsidiary or Affiliate or after Awardee’s retirement in accordance with the applicable local retirement policy (as determined by the Company), on the date of death, the Stock Award shall become fully transferable to Awardee’s heirs.  Awardee’s heirs may request issuance of the underlying Shares within six (6) months of Awardee’s death.  If Awardee’s heirs do not request the issuance of the underlying Shares within six (6) months of Awardee’s death, the Stock Award will be forfeited.

 

Restrictions on Sale of Shares of Common Stock.  Awardee may not sell or transfer the Shares issued pursuant to the Stock Award prior to the second anniversary of the applicable vesting date or such other period as is required to comply with the minimum mandatory holding period applicable to Shares underlying French-qualified awards under Section L. 225-197-1 of the French Commercial Code, the French Tax Code or the French Social Security Code, as amended.  Notwithstanding the above, Awardee’s heirs, in case of Awardee’s death, or Awardee in case of Awardee’s Disability (as defined under the French RSU Sub-plan), are not subject to this restriction on the sale of Shares.

 

If Awardee qualifies as a managing director of the Company under French law (“mandataires sociaux” i.e., Président du Conseil d’Administration, Directeur Général, Directeur Général Délégué, Membre du Directoire, Gérant de Sociétés par actions), Awardee is required to hold 20% of the Shares issued upon the vesting of the Stock Award in a nominative account under procedures implemented by the Company and is not permitted to sell or transfer the Shares until he or she ceases to serve as a managing director, as long as this restriction is a requirement under

 

 

French law and unless law or regulations provide for a lower percentage (in which case these requirements apply to the lower percentage of Shares required to be held).

 

Any Shares acquired upon vesting of the Stock Award may not be sold during certain Closed Periods as provided for and defined by Section L. 225-197-1 of the French Commercial Code, as amended, and by the French RSU Sub-Plan, for so long as and to the extent that the Closed Periods are applicable to Shares underlying French-qualified Stock Awards granted by the Company.  Under current law, such Closed Periods include: (a) ten (10) trading days preceding and three (3) trading days following the disclosure to the public of the consolidated financial statements or the annual statements of the Company; and (b) the period as from the date that information has been disclosed to the Company’s corporate management (such as the Board) which could, if disclosed to the public, significantly impact the trading price of the Shares, until ten (10) trading days after the date such information is publicly disclosed.

 

Consent to Receive Information in English.  By accepting the Stock Award, Awardee confirms having read and understood the documents related to the Stock Award (the Plan and the Award Agreement) which were provided in the English language.  Awardee accepts the terms of these documents accordingly.

 

Consentement Relatif à l’Utilisation de l’Anglais.  En acceptant l’Attribution (« Stock Award »), le Bénéficiaire confirme avoir lu et compris les documents relatifs à l’Attribution (le Plan (« Keysight Technologies, Inc. 2014 Equity and Incentive Compensation Plan ») et le Contrat d’Attribution) qui ont été remis en anglais.  Le Bénéficiaire accepte les termes de ces documents en connaissance de cause.

 

GERMANY

 

There are currently no country-specific provisions.

 

HONG KONG

 

Settlement in Shares.  Notwithstanding any discretion in the Plan or the Award Agreement to settle the Stock Award in cash, due to tax law considerations in Hong Kong the Stock Award will be settled in Shares only.  The Stock Award does not provide any right for Awardee to receive a cash payment.

 

Sale of Shares.  In the event the Stock Award vests within six (6) months of the Grant Date set forth in the Agreement, Awardee agrees that Awardee will not dispose of the Shares acquired prior to the six-month anniversary of the Grant Date.

 

Nature of Scheme.  The Company specifically intends that the Plan will not be an occupational retirement scheme for purposes of the Occupational Retirement Schemes Ordinance.

 

Securities Law Acknowledgment.  Awardee understands that the offer of the Stock Award and Shares under the Plan does not constitute a public offering of securities, and is available only to Employees, Directors or Consultants of the Company or its Subsidiaries or Affiliates.

 

 

The Award Agreement and the Plan, and other incidental communication materials related to the Stock Award, have not been prepared in accordance with and are not intended to constitute a “prospectus” for a public offering of securities under the applicable companies and securities legislation in Hong Kong, and the documents have not been reviewed by any regulatory authority in Hong Kong.  The Stock Award, the Award Agreement and the Plan, and any incidental communication materials, are intended solely for the personal use of Awardee and may not be distributed to any other person.  Awardee is advised to exercise caution in relation to this offer of the Stock Award under the Plan.  If Awardee is in any doubt about any of the contents of the Award Agreement or the Plan, or any incidental communication materials, Awardee should obtain independent professional advice.

 

INDIA

 

Exchange Control Obligations.  Awardee understands that Awardee must repatriate any funds received pursuant to the Plan (e.g., proceeds from the sale of Shares, cash dividends) to India.  In the case of proceeds from the sale of Shares, Awardee acknowledges that such repatriation must occur within ninety (90) days of receipt and in the case of dividends, Awardee acknowledges that such repatriation must occur within 180 days of receipt.  Awardee should obtain a foreign inward remittance certificate (“FIRC”) from the bank where Awardee deposits the foreign currency and maintain the FIRC as evidence of the repatriation of funds in the event the Reserve Bank of India or the Employer requests proof of repatriation.  Awardee is also responsible for complying with any other exchange control laws in India that may apply to the Stock Award or the Shares acquired under the Plan.

 

ISRAEL

 

Grant Subject to Terms and Conditions of Israel Sub-Plan.  The Stock Award is offered to Awardee subject to, and in accordance with, the terms of the Plan and its Sub-Plan for Participants in Israel (the “Israel Sub-Plan”).  As such, the Stock Award is intended to qualify for specific tax treatment in Israel under Section 102 (together with its subsections and any similar successor provisions, “Section 102”) of the Israeli Income Tax Ordinance [New Version] 1961, as now in effect or as hereafter amended.  Certain events may affect the status of the Stock Award as qualified under Section 102 and the Stock Award may be disqualified in the future.  The Company does not make any undertaking or representation to maintain the qualified status of the Stock Award.

 

The Stock Award, the Shares and any rights issued pursuant to the Stock Award and Shares (other than cash dividends) shall be controlled by Meitav Benefits Trust Company, S.G.S Trusts or another trustee selected by the Company (the “Trustee”) for Awardee’s benefit for at least such period of time as required by Section 102 or by the Israeli Tax Authority (the “Lock-Up Period”).

 

By accepting the Stock Award, Awardee agrees to be bound by Section 102, the terms of the Plan, the Israel Sub-Plan, the Agreement, the trust and services agreement (the “Trust Agreement”) with the Trustee, and, upon request of the Company or the Employer, agrees to

 

 

provide written consent to the terms of any tax ruling or agreement obtained by the Company or the Employer with regard to the Plan and the Israel Sub-Plan (“Tax Ruling”).

 

Until further election by the Company, the Stock Award and any Shares received upon vesting of the Stock Award are intended to qualify for the tax treatment available in Israel pursuant to the provisions of the “capital gain trustee track” under Section 102, including the provisions of the Income Tax Rules (Tax Benefits in Shares Issuance to Employees), 2003 and any Tax Ruling.

 

The Stock Award is subject to the trust (“Trust”) established by the Trust Agreement with the Trustee.  To receive the tax treatment provided for in Sections 102(b)(2) and 102(b)(3) of the ITO or successor statute, the Stock Award will be “deposited” (as defined by the ITO) with the Trustee on behalf of Awardee during the Lock-Up Period, which, until further election by the Company, shall be twenty-four (24) months from the Grant Date, or any other period determined under the ITO as now in effect or as hereafter amended or by the Israeli Income Tax Authority.  Subject to the expiry of the Lock-Up Period and any further period included herein, Awardee agrees that Shares acquired upon vesting of the Stock Award will be under the supervision of the Trustee until the earlier of (a) the receipt by the Trustee of an acknowledgment from the Israeli Income Tax Authority that Awardee has paid all applicable Tax-Related Items due pursuant to the ITO and Section 102, or (b) the Trustee withholds any applicable Tax-Related Items due pursuant to the ITO and Section 102.  Notwithstanding the foregoing, in the event Awardee shall elect to release any Shares acquired upon vesting of the Stock Award prior to the conclusion of the Lock-Up Period, the tax consequences under Section 102 shall apply to and shall be borne solely by Awardee.

 

The Company may in its sole discretion replace the Trustee from time to time and instruct the transfer of all Stock Awards and Shares held or administered by such Trustee at such time to its successor and the provisions of this Agreement shall apply to the new Trustee.

 

ITALY

 

Data Privacy.  This provision replaces Section 11 of the Award Agreement:

 

Awardee understands that the Employer, the Company and any other Affiliate and Subsidiary may hold certain personal information about Awardee, including, Awardee’s name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any Shares or directorships held in the Company, details of the Stock Award or any other entitlement to Shares awarded, canceled, exercised, vested, unvested or outstanding in Awardee’s favor (“Personal Data”) and will process such data for the exclusive purpose of implementing, managing and administering the Plan.

 

Awardee also understands that providing the Company with Personal Data is mandatory for compliance with local law and necessary for the performance of the Plan and that Awardee’s refusal to provide such Personal Data would make it impossible for the Company to perform its contractual obligations and may affect Awardee’s ability to participate in the Plan.  The Controllers of personal data processing are Keysight Technologies, Inc., 1400 Fountaingrove Parkway Santa Rosa, CA 95403, and Keysight Technologies Italy S.r.l., Via Grandi, 8,

 

 

Cernusco sul Naviglio 20063 Milan Italy, which is also the Company’s representative in Italy for privacy purposes pursuant to Legislative Decree no 196/2003.

 

Awardee understands that Personal Data will not be publicized, but it may be accessible by the Employer and its internal and external personnel in charge of processing of such Personal Data and by the Personal Data Processor (the “Processor”), if any.  An updated list of Processors and other transferees of Personal Data is available upon request from the Employer. Furthermore, Personal Data may be transferred to the External Administrator, Employer and any banks, other financial institutions or brokers involved in the management and administration of the Plan.  Awardee understands that the Company and/or its Affiliates and Subsidiaries will transfer Personal Data amongst themselves as necessary for the purpose of implementation, administration and management of Awardee’s participation in the Plan, and that the Company and/or its Affiliates and Subsidiaries may each further transfer Personal Data to third parties assisting the Company in the implementation, administration and management of the Plan, including any requisite transfer to the External Administrator or another third party with whom Awardee may elect to deposit any Shares acquired under the Plan.  Such recipients may receive, possess, use, retain and transfer the Personal Data in electronic or other form, for the purposes of implementing, administering and managing Awardee’s participation in the Plan.  Awardee understands that these recipients may be located in or outside the European Economic Area in such countries as in the United States that may not provide the same level of protection as intended under Italian data privacy laws.  Should the Company exercise its discretion in suspending all necessary legal obligations connected with the management and administration of the Plan, it will delete Awardee’s Personal Data as soon as it has accomplished all the necessary legal obligations connected with the management and administration of the Plan.

 

Awardee understands that Personal Data processing related to the purposes specified above shall take place under automated or non-automated conditions, anonymously when possible, that comply with the purposes for which Personal Data is collected and with confidentiality and security provisions as set forth by applicable laws and regulations, with specific reference to Legislative Decree no. 196/2003.

 

The processing activity, including communication, the transfer of Awardee’s Personal Data abroad, including outside of the European Economic Area, as herein specified and pursuant to applicable laws and regulations, does not require Awardee’s consent thereto as the processing is necessary to performance of contractual obligations related to implementation, administration and management of the Plan.  Awardee understands that, pursuant to Section 7 of the Legislative Decree no. 196/2003, Awardee has the right to, including but not limited to, access, delete, update, ask for rectification of Awardee’s Personal Data and estop, for legitimate reason, the Personal Data processing.

 

Furthermore, Awardee is aware that Awardee’s Personal Data will not be used for direct marketing purposes.  In addition, the Personal Data provided can be reviewed and questions or complaints can be addressed by contacting Awardee’s human resources department.

 

 

Plan Document Acknowledgement.  By accepting the Stock Award, Awardee acknowledges that (a) Awardee has received the Plan and the Award Agreement; (b) Awardee has reviewed those documents in their entirety and fully understands the contents thereof; and (c) Awardee accepts all provisions of the Plan and the Award Agreement.  Awardee further acknowledges that Awardee has read and specifically and expressly approves, without limitation, the following sections of the Award Agreement: “Termination of Employment or Service”; “Nontransferability of Stock Award”; “Restrictions on Issuance of Shares of Common Stock”; “Responsibility for Taxes”; “Nature of Award”; “No Advice Regarding Grant”; “Data Privacy” as replaced by the above provision; “No Rights Until Issuance”; “Governing Law and Venue”; “Language”; “Electronic Delivery and Acceptance”; “Imposition of Other Requirements”; “Appendix” “Waiver and Amendments” and “Entire Agreement”.

 

JAPAN

 

There are currently no country-specific provisions.

 

KOREA

 

There are currently no country-specific provisions.

 

MALAYSIA

 

Data Privacy.  This provision replaces Section 11 of the Award Agreement in its entirety.

 

	
Awardee hereby explicitly and unambiguously   consents to the collection, use and transfer, in electronic or other form, of   his or her personal data as described in this Award Agreement, including any   country-specific Appendix attached hereto, and any other Plan participation   materials by and among, as applicable, the Employer, the Company and its   Subsidiaries and Affiliates or any third parties authorized by the same for   the exclusive purpose of implementing, administering and managing Awardee’s   participation in the Plan.  

Awardee may have previously provided the Company   and the Employer with, and the Company and the Employer may hold certain   personal information about Awardee, including, but not limited to, Awardee’s   name, home address and telephone number, date of birth, social insurance   number or other identification number, salary, nationality, job title, any
    	
 
    	
Penerima Anugerah dengan ini secara eksplicit dan   tanpa sebarang keraguan mengizinkan pengumpulan, penggunaan dan pemindahan,   dalam bentuk elektronik atau lain-lain, data peribadinya seperti yang   dinyatakan dalam Perjanjian Penganugerahan ini, termasuklah apa-apa Lampiran   khusus bagi negara yang dilampirkan di sini, dan apa-apa bahan penyertaan   Pelan oleh dan di antara, sebagaimana yang berkenaan, Majikan, Syarikat dan   Anak Syarikatnya dan Syarikat Sekutu atau mana-mana pihak ketiga yang diberi   kuasa oleh yang sama untuk tujuan ekslusif untuk pelaksanaan, pentadbiran dan   pengurusan penyertaan Penerima Anugerah dalam Pelan tersebut. Sebelum ini,   Penerima Anugerah mungkin telah membekalkan Syarikat dan Majikan dengan, dan   Syarikat dan Majikan mungkin memegang, maklumat peribadi tertentu tentang   Penerima Anugerah, termasuk, tetapi tidak terhad kepada, namanya, alamat   rumah dan nombor telefon, tarikh lahir, nombor
    

 

 

	
Shares or directorships held in the Company,   details of all Stock Awards or any other entitlement to Shares awarded,   cancelled, exercised, vested, unvested or outstanding in Awardee’s favor   (“Data”), for the exclusive purpose of implementing, administering and   managing the Plan.

Awardee understands that Data will be transferred   to the External Administrator or such other stock plan service provider as   may be selected by the Company in the future, which is assisting the Company   with the implementation, administration and management of the Plan and that   Data may be transferred to certain other third parties assisting the Company   with the implementation, administration and management of the Plan, including   any requisite transfer of such Data as may be required to a broker or third   party with whom Awardee may elect to deposit any Shares acquired pursuant to   Awardee’s participation in the Plan. Awardee understands that these   recipients may be located in the United States or elsewhere, and that the   recipients’ country (e.g., the   United States) may have different data privacy laws and protections than   Awardee’s country. Awardee understands that Awardee may request a list with   the names and addresses of any potential recipients of the Data by contacting   Awardee’s local human resources representative. Awardee authorizes the   Company, the External Administrator and any other possible recipients which   may assist the Company (presently or in the future) with implementing,   administering and managing the Plan to receive, possess, use, retain and   transfer the Data, in electronic or other form, for the sole purpose of   implementing, administering and managing Awardee’s participation in the Plan.   Awardee understands that Data will be held only as long as is necessary to   implement, administer and manage
    	
 
    	
insurans sosial atau nombor pengenalan lain,   gaji, kewarganegaraan, jawatan, apa-apa saham atau jawatan pengarah yang   dipegang dalam Syarikat, butir-butir semua Anugerah Saham atau apa-apa hak   lain untuk Saham yang dianugerahkan, dibatalkan, dilaksanakan, terletak hak,   tidak diletak hak ataupun bagi faedah Penerima Anugerah (“Data”), untuk   tujuan yang eksklusif bagi melaksanakan, mentadbir dan menguruskan Pelan   tersebut. Penerima Anugerah memahami bahawa Data akan dipindahkan kepada   Pentadbir Luar atau pembekal perkhidmatan pelan saham lain yang mungkin   dipilih oleh Syarikat pada masa depan, yang membantu Syarikat dalam   melaksanakan, mentadbir dan menguruskan Pelan tersebut, dan Data mungkin   boleh dipindahkan kepada pihak ketiga lain yang tertentu yang membantu   Syarikat dengan pelaksanaan, pentadbiran, dan pengurusan Pelan, termasuklah   apa-apa pemindahan yang diperlukan untuk Data yang diwajibkan kepada broker   atau pihak ketiga dengan sesiapa yang Penerima Anugerah pilih untuk mendepositkan   Saham yang diperolehi melalui penyertaan Penerima Anugerah dalam Pelan.   Penerima Anugerah mengakui bahawa penerima-penerima ini mungkin berada di   Amerika Syarikat atau di tempat lain, dan bahawa negara penerima (contohnya,   Amerika Syarikat) mungkin mempunyai undang-undang privasi data dan   perlindungan yang berbeza daripada negara Penerima Anugerah. Penerima   Anugerah memahami bahawa Penerima Anugerah boleh meminta senarai dengan nama   dan alamat mana-mana penerima Data dengan menghubungi wakil sumber manusia   tempatannya. Penerima Anugerah memberi kuasa kepada Syarikat, Pentadbir Luar   dan mana-mana penerima lain yang mungkin membantu Syarikat (masa sekarang   atau pada masa depan) untuk melaksanakan, mentadbir dan menguruskan Pelan   tersebut untuk menerima, memiliki, menggunakan, mengekalkan dan memindahkan   Data, dalam bentuk elektronik atau lain-lain, semata-mata dengan tujuan untuk   melaksanakan, mentadbir
    

 

 

	
Awardee’s participation in the Plan. Awardee   understands that Awardee may, at any time, view Data, request additional   information about the storage and processing of Data, require any necessary   amendments to Data or refuse or withdraw the consents herein, in any case   without cost, by contacting in writing his or her local human resources   representative. Further, Awardee understands that Awardee is providing the   consents herein on a purely voluntary basis. If Awardee does not consent, or   if Awardee later seeks to revoke his or her consent, Awardee’s employment   status or Service and career with the Employer will not be adversely   affected; the only consequence of refusing or withdrawing Awardee’s consent   is that the Company would not be able to grant Awardee Stock Awards or other   equity awards or administer or maintain such awards. Therefore, Awardee understands   that refusing or withdrawing his or her consent may affect Awardee’s ability   to participate in the Plan. For more information on the consequences of   Awardee’s refusal to consent or withdrawal of consent, Awardee understands   that Awardee may contact his or her local human resources representative.
    	
 
    	
dan menguruskan penyertaannya dalam Pelan   tersebut. Penerima Anugerah faham bahawa Data akan dipegang hanya untuk   tempoh yang diperlukan untuk melaksanakan, mentadbir dan menguruskan   penyertaannya dalam Pelan tersebut. Penerima Anugerah memahami bahawa   Penerumna Anugerah boleh, pada bila-bila masa, melihat data, meminta maklumat   tambahan mengenai penyimpanan dan pemprosesan Data, meminta bahawa   pindaan-pindaan dilaksanakan ke atas Data atau menolak atau menarik balik   persetujuan dalam ini, dalam mana-mana kes, tanpa kos, dengan menghubungi   secara bertulis wakil sumber manusia tempatannya. Selanjutnya, Penerima   Anugerah memahami bahawa dia memberikan persetujuan di sini secara sukarela.   Jika Penerima Anugerah tidak bersetuju, atau jika Penerima Anugerah kemudian   membatalkan persetujuannya, status pekerjaan atau perkhidmatan dan kerjayanya   dengan Majikan tidak akan terjejas; satunya akibat buruk jika dia tidak   bersetuju atau menarik balik persetujuannya adalah bahawa Syarikat tidak akan   dapat memberikan Anugerah-anugerah Saham atau anugerah ekuiti lain kepada   Penerima Anugerah atau mentadbir atau mengekalkan anugerah tersebut. Oleh   itu, Penerima Anugerah memahami bahawa keengganan atau penarikan balik   persetujuannya boleh menjejaskan keupayaannya untuk mengambil bahagian dalam   Pelan tersebut. Untuk maklumat lanjut mengenai akibat keengganan Penerima   Anugerah untuk memberikan keizinan atau penarikan balik keizinan, Penerima   Anugerah memahami bahawa Penerima Anugerah boleh menghubungi wakil sumber   manusia tempatannya.
    

 

MEXICO

 

Acknowledgement of the Award.  By accepting the Stock Award, Awardee acknowledges that he or she has received a copy of the Plan and the Award Agreement, which Awardee has reviewed.  Awardee acknowledges further that he or she accepts all the provisions of the Plan

 

 

and the Award Agreement.  Awardee also acknowledges that he or she has read and specifically and expressly approves the terms and conditions set forth in Section 9: “Nature of Award” in the Award Agreement, which clearly provides as follows:

 

(1)                                 Awardee’s participation in the Plan does not constitute an acquired right;

 

(2)                                The Plan and Awardee’s participation in it are offered by the Company on a wholly discretionary basis;

 

(3)                                 Awardee’s participation in the Plan is voluntary; and

 

(4)                                 The Company and its Subsidiaries and Affiliates are not responsible for any decrease in the value of any Shares acquired at vesting of the Stock Award.

 

Labor Law Policy and Acknowledgment.  In accepting the Stock Award, Awardee expressly recognizes that Keysight Technologies, Inc., with registered offices at 1400 Fountaingrove Parkway Santa Rosa, CA 95403, is solely responsible for the administration of the Plan and that Awardee’s participation in the Plan and acquisition of Shares do not constitute an employment relationship between Awardee and the Company since Awardee is participating in the Plan on a wholly commercial basis and his or her sole employer is Keysight Technologies México, S. de R.L. de C.V. (“Keysight Mexico”), located at Camino al ITESO 8900, Edificio 1B, Colonia Pinar de la Calma, Zapopan, Jalisco 45080, México.  Based on the foregoing, Awardee expressly recognizes that the Plan and the benefits that he or she may derive from participating in the Plan do not establish any rights between Awardee and the employer, Keysight Mexico, and do not form part of the employment conditions and/or benefits provided by Keysight Mexico, and any modification of the Plan or its termination shall not constitute a change or impairment of the terms and conditions of Awardee’s employment.

 

Awardee further understands that his or her participation in the Plan is as a result of a unilateral and discretionary decision of the Company; therefore, the Company reserves the absolute right to amend and/or discontinue Awardee’s participation at any time without any liability to Awardee.

 

Finally, Awardee hereby declares that he or she does not reserve to him- or herself any action or right to bring any claim against the Company for any compensation or damages regarding any provision of the Plan or the benefits derived under the Plan, and Awardee therefore grants a full and broad release to the Company, its Subsidiaries and Affiliates, and its branches, representation offices, shareholders, directors, officers, employees, agents, or legal representatives with respect to any claim that may arise.

 

Reconocimiento del Premio.  Al aceptar el premio, el Participante reconoce que ha recibido una copia del Plan y el Acuerdo, mismo que ha revisado.  El Participante reconoce, además, que acepta todas las disposiciones del Plan y del Acuerdo,.  El Participante también reconoce que ha leído y que concretamente aprueba de forma expresa los términos y condiciones establecidos en la Sección 9: “Reconocimiento de la Naturaleza del Premio” del Acuerdo, que claramente dispone lo siguiente:

 

 

(1)                                 La participación del Participante en el Plan no constituye un derecho adquirido;

 

(2)                                 El Plan y la participación del Participante en el Plan se ofrecen por la Compañía a discreción total de la Compañía;

 

(3)                                 Que la participación del Participante en el Plan es voluntaria; y

 

(4)                                 La Compañía y sus Subsidiarias y Afiliadas no son responsables de ninguna disminución en el valor de las Acciones adquiridas al momento de tener derecho conforme a las Acciones Bursátiles concedidas.

 

Política Laboral y Reconocimiento.  Aceptando este Acuerdo, el Participante expresamente reconoce que Keysight Technologies, Inc., con sus oficinas registradas en 1400 Fountaingrove Parkway, Santa Rosa, CA 95403, es la única responsable por la administración del Plan y que la participación del Participante en el Plan y en su caso la adquisición de Acciones no constituyen una relación de trabajo entre el Participante y la Compañía, ya que el Participante participa en el Plan en un marco totalmente comercial y su único patrón es Keysight Technologies México, S. de R.L. de C.V. (“Keysight Mexico”), con domicilio en Camino al ITESO 8900, Edificio 1B, Colonia Pinar de la Calma, Zapopan, Jalisco 45080, México.  Derivado de lo anterior, el Participante expresamente reconoce que el Plan y los beneficios que pudieran derivar de la participación en el Plan no establecen derecho alguno entre el Participante y el patrón, Keysight Mexico y no forma parte de las condiciones de trabajo y/o las prestaciones otorgadas por Keysight Mexico y que cualquier modificación al Plan o su terminación no constituye un cambio o detrimento de los términos y condiciones de la relación de trabajo del Participante.

 

Asimismo, el Participante reconoce que su participación en el Plan es resultado de una decisión unilateral y discrecional de la Compañía; por lo tanto, la Compañía se reserva el derecho absoluto de modificar y/o terminar la participación del Participante en cualquier momento y sin responsabilidad alguna hacia el Participante.

 

Finalmente, el Participante por este medio declara que no se reserva derecho o acción alguna en contra de la Compañía por cualquier compensación o daños y perjuicios en relación con las disposiciones del Plan o de los beneficios derivados del Plan y por lo tanto, el Participante otorga el más amplio finiquito que en derecho proceda a la Compañía, Subsidiarias y sus afiliadas, sucursales, oficinas de representación, accionistas, directores, autoridades, empleados, agentes, o representantes legales en relación con respecto de cualquier demanda que pudiera surgir.

 

NETHERLANDS

 

There are currently no country-specific provisions.

 

PUERTO RICO

 

There are currently no country-specific provisions.

 

 

RUSSIA

 

Securities Law Acknowledgment.  Awardee understands that the Plan, the Award Agreement and all other materials Awardee may receive regarding participation in the Plan do not constitute advertising or an offering of securities in Russia.  The Shares to be issued at vesting of the Stock Award have not and will not be registered in Russia.  Therefore, the Shares and any other securities described in any Plan-related documents may not be used for public offering or public circulation in Russia.  In no event will Shares issued to Awardee pursuant to the Stock Award be delivered to Awardee in Russia; Shares issued to Awardee pursuant to the Stock Award shall be delivered to Awardee through the External Administrator and its affiliated companies (or another Company-designated broker) in the United States and kept on Awardee’s behalf in the United States.  Awardee is not permitted to sell Shares directly to other Russian legal entities or residents.

 

Exchange Control Obligations.  Awardee must repatriate the proceeds from the sale of Shares and any dividends received in relation to the Shares to Russia within a reasonably short period after receipt.  The sale proceeds and any dividends received must be initially credited to Awardee through a foreign currency account opened in Awardee’s name at an authorized bank in Russia.  After the sale proceeds or dividends are initially received in Russia, they may be further remitted to foreign banks in accordance with Russian exchange control laws.  Awardee acknowledges that Awardee should contact his or her personal legal advisor regarding exchange control requirements as significant penalties may apply in the case of non-compliance with such requirements.

 

Data Privacy.  Awardee hereby acknowledges that Awardee has read and understood the terms regarding collection, processing and transfer of Awardee’s Data contained in Section 11 of the Award Agreement and Awardee acknowledges that, by accepting the Stock Award, Awardee is agreeing to such terms.  In this regard, upon request of the Company, Awardee agrees to provide any executed data privacy consent form to the Employer or the Company (or any other agreements or consents that may be required by the Company) that the Company may deem necessary to obtain under the data privacy laws in Awardee’s country, either now or in the future.  Awardee understands that Awardee may not be permitted to participate in the Plan if Awardee fails to execute any such consent or agreement.

 

SINGAPORE

 

Securities Law Acknowledgment.  Awardee understands that the Stock Award is granted pursuant to the “Qualifying Person” exemption under section 273(1)(f) of the Securities and Futures Act (Chapter 289, 2006 Ed.) (“SFA”) and is not made with a view to the Shares being subsequently offered for sale to any other party.  The Plan has not been lodged or registered as a prospectus with the Monetary Authority of Singapore.  Awardee acknowledges that the Stock Award is subject to section 257 of the SFA and Awardee will not be able to make (a) any subsequent sale of the Shares in Singapore or (b) any offer of such subsequent sale of the Shares in Singapore, unless such sale or offer is made pursuant to the exemptions under Part XIII Division 1 Subdivision (4) (other than section 280) of the SFA.

 

 

Director Notification Requirement.  If Awardee is a director, associate director or shadow director(1) of a Singaporean Affiliate or Subsidiary, Awardee acknowledges that he or she is subject to certain notification requirements under the Singapore Companies Act.  In particular, Awardee must notify the Singaporean Affiliate or Subsidiary in writing of an interest (e.g., Stock Award, Shares, etc.) in the Company or any related companies within two (2) business days of (a) its acquisition or disposal, (b) any change in a previously disclosed interest (e.g., when the Shares are sold), or (c) becoming a director (if such an interest exists at the time).

 

SPAIN

 

Nature of Award.  This provision supplements Section 9 of the Award Agreement:

 

In accepting the Award, Awardee consents to participate in the Plan and acknowledges that he or she has received a copy of the Plan.  Awardee understands that the Company has unilaterally, gratuitously and discretionally decided to grant Stock Awards under the Plan to individuals who may be employees of the Company or a Subsidiary or Affiliate.  The decision is a limited decision that is entered into upon the express assumption and condition that any grant will not economically or otherwise bind the Company or any of its Subsidiaries or Affiliates, other than as expressly set forth in the Award Agreement.  Consequently, Awardee understands that the Stock Award is granted on the assumption and condition that the Stock Award and the Shares issued upon settlement of the Stock Award shall not become a part of any employment contract (either with the Company or any Subsidiary or Affiliate) and shall not be considered a mandatory benefit, salary for any purposes (including severance compensation) or any other right whatsoever.

 

Additionally, Awardee understands that the vesting of the Stock Award is expressly conditioned on Awardee’s continued and active rendering of Service to the Company or a Subsidiary or Affiliate such that if Awardee’s Service is terminated for any reason (including for the reasons listed below but with the exception of the circumstances specified in Section 4(b)-(d) of the Award Agreement), the Award will cease vesting immediately effective as of the Termination Date.  This will be the case, for example, even if (a) Awardee is considered to be unfairly dismissed without good cause; (b) Awardee is dismissed for disciplinary or objective reasons or due to a collective dismissal; (c) Awardee’s Service is terminated due to a change of work location, duties or any other employment or contractual condition; (d) Awardee’s Service is terminated due to unilateral breach of contract of the Company or any of its Subsidiaries or Affiliates; or (e) Awardee’s Service is terminated for any other reason (with the exception of the circumstances specified in Section 4(b)-(d) of the Award Agreement).  Consequently, upon termination of Service for any of the above reasons, Awardee will automatically lose any rights to the Stock Award to the extent that it has not yet become vested as of the Termination Date, as

 

(1)         A shadow director is an individual who is not on the board of directors of a company but who has sufficient control so that the board of directors acts in accordance with the “directions or instructions” of the individual.

 

 

described in the Award Agreement.  Awardee acknowledges that he or she has read and specifically accepts the conditions referred to above and in Section 4 of the Award Agreement.

 

Finally, Awardee understands that this Stock Award would not be made to Awardee but for the assumptions and conditions referred to herein; thus, Awardee acknowledges and freely accepts that should any or all of the assumptions be mistaken or should any of the conditions not be met for any reason, then the grant of this Stock Award shall be null and void.

 

SWEDEN

 

There are currently no country-specific provisions.

 

SWITZERLAND

 

There are currently no country-specific provisions.

 

TAIWAN

 

There are currently no country-specific provisions.

 

UNITED KINGDOM

 

Settlement in Shares.  Notwithstanding any discretion in the Plan or the Award Agreement to settle the Stock Award in cash, the Stock Award will be settled in Shares only.  The Stock Award does not provide any right for Awardee to receive a cash payment.

 

Responsibility for Taxes.  These provisions supplement Section 7 of the Award Agreement:

 

If payment or withholding of the income tax due in connection with the Stock Award is not made within ninety (90) days of the end of the tax year in which the taxable event occurs or such other period specified in Section 222(1)(c) of the U.K. Income Tax (Earnings and Pensions) Act 2003 (the “Due Date”), the amount of any uncollected income tax shall constitute a loan owed by Awardee to the Employer, effective on the Due Date.  Awardee agrees that the loan will bear interest at the official rate of Her Majesty’s Revenue and Customs (“HMRC”) and will be immediately due and repayable by Awardee, and the Company and/or the Employer may recover it at any time thereafter by any of the means referred to in Section 7 of the Award Agreement.

 

Notwithstanding the foregoing, if Awardee is an executive officer or director of the Company (within the meaning of Section 13(k) of the Exchange Act), Awardee shall not be eligible for a loan to cover the income tax due as described above.  Instead, the amount of any uncollected income tax may constitute a benefit to Awardee on which additional income tax and National Insurance contributions may be payable.  Awardee acknowledges that Awardee will be responsible for reporting and paying any income tax due on this additional benefit directly to HMRC under the self-assessment regime and for paying the Company or the Employer (as applicable) for the value of any employee National Insurance contributions due on this additional

 

 

benefit.  Awardee further acknowledges that the Company or the Employer may recover such amounts from Awardee by any of the means referred to in Section 7 of the Award Agreement.

 

Joint Election.  As a condition of participation in the Plan, Awardee agrees to accept any liability for secondary Class 1 National Insurance contributions which may be payable by the Company and/or the Employer in connection with the Stock Award and any event giving rise to Tax-Related Items (the “Employer’s Liability”).  Without prejudice to the foregoing, Awardee agrees to execute a joint election with the Company or the Employer, the form of such joint election being formally approved by HMRC (the “Joint Election”) and any other consent or election required to accomplish the transfer of the Employer’s Liability to Awardee.  Awardee understands that the Joint Election applies to any Stock Award granted to him or her under the Plan after the execution of the Joint Election.  Awardee further agrees to execute such other joint elections as may be required between him or her and any successor to the Company and/or the Employer.  Awardee further agrees that the Company and/or the Employer may collect the Employer’s Liability from him or her by any of the means set forth in Section 7 of the Award Agreement.

 

If Awardee does not enter into a Joint Election prior to the first vesting date of the Stock Award or any other event giving rise to Tax-Related Items, he or she will not be entitled to vest in the Stock Award or receive any benefit in connection with the Stock Award unless and until he or she enters into a Joint Election, and no Shares or other benefit pursuant to the Stock Award will be issued to Awardee under the Plan, without any liability to the Company and/or the Employer; provided, however, that this provision shall not apply if Awardee is a U.S. taxpayer and the application of this provision would cause the Stock Award to fail to qualify under an exemption from, or comply with, Section 409A of the Code, as determined by the Company.

 

UNITED STATES

 

There are currently no country-specific provisions.

 

VIETNAM

 

Settlement in Cash.  Unless otherwise determined by the Administrator, the Stock Award, once vested, will be settled by means of a cash payment equal to the Fair Market Value of the Shares on the date that such Shares would have otherwise been issued under the terms of the Award Agreement.

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