Document:

Exhibit 10.68

 

INTELLECTUAL PROPERTY MATTERS
AGREEMENT

 

between

 

AGILENT TECHNOLOGIES, INC.

 

Verigy LTD.

 

and

 

VERIGY (SINGAPORE) PTE. LTD.

 

Dated as of June 1, 2006

 

 

INTELLECTUAL PROPERTY MATTERS
AGREEMENT

 

THIS INTELLECTUAL PROPERTY MATTERS AGREEMENT (this “Agreement”) is dated as of June 1,
2006, by and between Agilent Technologies, Inc., a Delaware corporation (“Agilent”), Verigy Ltd., a company
organized under the laws of Singapore (“Verigy”) and Verigy (Singapore)
Pte. Ltd., a company organized under the laws of Singapore and a wholly
owned subsidiary of Verigy (“Verigy IP Sub”).
Agilent, Verigy and Verigy IP Sub are each a “Party”
and collectively, the “Parties”.
Each reference to the words “Party” or “Parties” herein shall refer
collectively to such Party or Parties on its or their own behalf and on behalf
of each of its or their Affiliates.

 

W I T N E S S E T H:

 

WHEREAS, pursuant to the Master Separation and
Distribution Agreement entered into by and between the Verigy and Agilent (the “Master Separation and Distribution Agreement”),
the Parties have agreed to separate the Business from Agilent;

 

WHEREAS, it is the intent of the Parties, in
accordance with the Master Separation and Distribution Agreement, the General
Assignment and Assumption Agreement to be entered into between Agilent and
Verigy (the “General Assignment and
Assumption Agreement”), and the other agreements and instruments
provided for therein, that Agilent convey, and cause its Subsidiaries to
convey, to Verigy and its Subsidiaries substantially all of the business and
assets of the Business and that Verigy and its Subsidiaries assume certain of
the liabilities related to the Business;

 

WHEREAS, it is the intent of the Parties that
Agilent convey, and cause its Subsidiaries convey, certain intellectual
property rights and certain technology to Verigy IP Sub, to license certain
other intellectual property rights to Verigy IP Sub, and for Verigy IP Sub,
Verigy and its Affiliates to grant a license back to Agilent under the
transferred intellectual property rights subject to the terms and conditions
set forth in this Agreement:

 

NOW, THEREFORE, in consideration of the foregoing and
the mutual covenants and agreements set forth below, and other good and
valuable consideration, the receipt and adequacy of which is hereby
acknowledged, the parties hereby agree as follows:

 

ARTICLE I 

DEFINITIONS AND RULES OF CONSTRUCTION

 

1.1                                 Definitions.

 

Unless otherwise defined in the Master Separation and
Distribution Agreement, capitalized terms used in this Agreement shall have the
meanings ascribed to them herein or in Exhibit A to this Agreement. In the
event of any conflict between the definitions in this Agreement and in the
Master Separation and Distribution Agreement, the terms of this Agreement shall
control.

 

1.2                                 Rules of
Construction.

 

(a)                                  This Agreement shall be construed without
regard to any presumption or rule requiring construction or interpretation
against the Party drafting or causing any instrument to be drafted.

 

(b)                                 The words “hereof, “herein” and “hereunder”
and words of similar import when used in this Agreement will refer to this
Agreement as a whole (including any annexes, exhibits and schedules to this
Agreement) and not to any particular provision of this Agreement, and section and
subsection references are to this Agreement unless otherwise specified.
The words “include”, “including”, or “includes” when used herein shall be
deemed in each case to be followed by the words “without limitation” or words
having similar import. The headings and table of contents in this Agreement are
included for convenience of reference only and will not limit or otherwise
affect the meaning or interpretation of this Agreement. The meanings given to
terms defined herein will be equally applicable to both the singular and plural
forms of such terms.

 

 

ARTICLE II 

TRANSFERRED INTELLECTUAL PROPERTY RIGHTS AND TECHNOLOGY

 

2.1                                 Assignment of
Intellectual Property Rights.   Agilent agrees to, and agrees to cause its
Subsidiaries to, grant, assign and convey to Verigy IP Sub the Transferred
Intellectual Property Rights. For the avoidance of doubt, the Transferred
Intellectual Property Rights are transferred subject to the licenses granted to
Agilent in Article IV below, the competitive restrictions in Article IX,
and all other licenses granted under any such Intellectual Property Rights
existing and in force as of the Distribution Date (subject to the terms and
conditions contained in each such license agreement). The Transferred
Intellectual Property Rights include all of Agilent’s and its Subsidiaries’
right, title and interest in and to any and all proceeds, causes of action and
rights of recovery against Third Parties for past and future infringement or
misappropriation of any of the Transferred Intellectual Property Rights. The
Parties shall execute an Intellectual Property Assignment in a form substantially
similar to that attached hereto as Exhibit B, and Agilent shall cause its
Subsidiaries to do so as appropriate, to document the transfer of the Transferred
Intellectual Property Rights. Verigy shall have the sole responsibility, at its
sole cost and expense, to file the Intellectual Property Assignment and any
other forms or documents as required to record the assignment of the
Transferred Intellectual Property Rights from Agilent and its Subsidiaries to
Verigy IP Sub; provided however, that, upon request, Agilent shall provide
reasonable assistance to Verigy to record the assignment, at Verigy’s sole cost
and expense. For the avoidance of doubt, the transfer of Transferred
Intellectual Property Rights under this Section 2.1 shall transfer, assign
and convey all of Agilent’s and its Subsidiaries’ rights, title and interest in
and to the Transferred Intellectual Property Rights.

 

(a)                                  Assignment of Transferred
Trademarks.   As
part of the assignment of the Transferred Intellectual Property Rights,
Agilent hereby agrees to, and agrees to cause its Subsidiaries to, assign to
Verigy IP Sub all right, title and interest in all countries worldwide in and
to the Transferred Trademarks and any applications and registrations related
thereto, including all common law trademark or trade name rights in such
Transferred Trademarks, together with the goodwill of the business symbolized
by such Transferred Trademarks.

 

2.2                                 Assignment of
Intellectual Property Licenses.   Agilent agrees to, and agrees to cause its
Subsidiaries to, assign and convey to Verigy IP Sub, the Transferred Licenses,
subject to the terms, conditions and restrictions of each Transferred License.
Verigy acknowledges and agrees that it shall have sole responsibility to seek
and obtain the consent of any Third Party necessary for the transfer of any of
the Transferred Licenses, and shall bear sole responsibility for any
consideration necessary for their transfer, provided however that upon request
Agilent will provide reasonable assistance in obtaining such consent, at Verigy’s
(or its Subsidiaries’) sole expense. For the avoidance of doubt, and subject to
the terms and conditions of the Transferred Licenses, upon the assignment and
conveyance of the Transferred Licenses to Verigy IP Sub, Verigy IP Sub shall
succeed to all of the rights and responsibilities of Agilent and Agilent’s
Subsidiaries under each such Transferred License, including any liabilities arising
under such Transferred License prior to the date of such assignment and
conveyance, which liabilities shall be the responsibility of Verigy and/or
Verigy IP Sub.

 

2.3                                 Transfer of Business
Technology.   Agilent
agrees to, and agrees to cause its Subsidiaries to, grant, assign and convey to
Verigy IP Sub the Business Technology. For the avoidance of doubt, the transfer
of the Business Technology does not include the transfer of any Intellectual
Property Rights in or to the Business Technology; such Intellectual Property
Rights are either transferred to Verigy IP Sub as Transferred Intellectual
Property Rights in Section 2.1 above or are licensed to Verigy IP Sub in Section 3.1
below.

 

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ARTICLE III 

LICENSES TO VERIGY

 

3.1                                 License Grants.   Agilent agrees to, and agrees
to cause its Affiliates to, grant to Verigy IP Sub the following personal,
irrevocable, non-exclusive, worldwide, royalty free and non-transferable
(except as specified below in Article 8 below) licenses under the Licensed
Agilent IPR subject to the terms of this Agreement as follows:

 

(a)                                  Patents.   Under the Agilent Patents, a
license to make (including the right to practice methods, processes and
procedures), have made (subject to Section 3.2), use, lease, sell, offer
for sale and import Verigy Products solely within the Verigy Field. The Agilent
Patent licenses set forth in this Section 3.1(a) shall expire, with
respect to each individual licensed Patent, upon the expiration of the term of
each such Agilent Patent.

 

(b)                                 Copyrights.   Under its and their
Copyrights in and to the Business Technology and Verigy Products, (i) to
reproduce and have reproduced the works of authorship included therein and
Improvements thereof prepared by or on behalf of Verigy IP Sub, in whole or in
part, solely as part of Verigy Products in the Verigy Field, (ii) to
prepare Improvements or have Improvements prepared for it based upon such works
of authorship solely to create Verigy Products in the Verigy Field, (iii) to
distribute (by any means and using any technology, whether now known or
unknown) copies of the works of authorship included therein (and Improvements
thereof prepared by or on behalf of Verigy IP Sub) to the public by sale or
other transfer of ownership or by rental, lease or lending, solely as part of
Verigy Products in the Verigy Field, (iv) to perform (by any means
and using any technology, whether now known or unknown, including without
limitation electronic transmission) and display the works of authorship
included therein (and Improvements thereof prepared by or on behalf of Verigy
IP Sub), in all cases solely as part of Verigy Products in the Verigy
Field; and (v) to use such works of authorship (and Improvements thereof
prepared by or on behalf of Verigy IP Sub) solely to design, develop,
manufacture and have manufactured (subject to Section 3.2), sell and
support Verigy Products in the Verigy Field.

 

(c)                                  Database Rights.   Under its and their Database
Rights in and to the Business Technology, to extract data from the databases
included therein and to re-utilize such data (and Improvements thereof prepared
by or on behalf of Verigy IP Sub) solely to design, develop, manufacture and
have manufactured (subject to Section 3.2), sell and support Verigy
Products in the Verigy Field.

 

(d)                                 Mask Works Rights.   Under its and their Mask Work
Rights in and to the Business Technology, (i) to reproduce and have
reproduced (subject to Section 3.2), by optical, electronic or any other
means, mask works and semiconductor topologies included in the Business
Technology and embodied in Verigy Products solely in the Verigy Field, (ii) to
import or distribute a product in which any such mask work or semiconductor
topology is embodied, and (iii) to permit Third Parties to do any of the
forgoing.

 

(e)                                  Trade Secrets and
Industrial Designs.   Under
its and their Trade Secrets and Industrial Designs used in designing,
developing, manufacturing, selling or supporting the Business Technology (and
Improvements thereof prepared by or on behalf of Verigy IP Sub) solely to
design, develop, manufacture and have manufactured (subject to Section 3.2),
sell and maintain Verigy Products in the Verigy Field.

 

(f)                                    Third Party Licenses.   With respect to Intellectual
Property Rights licensed to Agilent or its Subsidiaries by a Third Party, the
license grants set forth in this Article III shall be subject to all of
the conditions set forth in the relevant license agreement between Agilent (or
its Subsidiary, as the case may be) and such Third Party, in addition to
all of the terms, conditions and restrictions set forth herein. Licenses to
Verigy under Intellectual Property Rights owned by a

 

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Third Party shall expire
on the expiration of the term of the corresponding license agreement between
such Third Party and Agilent (or its Subsidiary), as the case may be.

 

(i)                                     With respect to those certain Technology
and/or IPR agreements between Agilent and Third Parties, including those with
Hewlett Packard Co. arising out of Agilent’s spin-off from Hewlett Packard Co.,
that permit Agilent to request that the Third Party grant similar rights to
Verigy IP Sub as a spin-off, Agilent will make such request to each Third Party
and will provide Verigy IP Sub with reasonable assistance in obtaining such
rights.

 

(g)                                 Software.   Without limiting the
generality of the foregoing licenses granted in this Section 3.1, with
respect to software transferred to Verigy IP Sub pursuant to Article 2
above, such licenses include the right to use, modify, and reproduce in source
code and object code form such software (and Improvements thereof made by
or on behalf of Verigy IP Sub) solely to create Verigy Products in the Verigy
Field, and to sell and maintain such software, in source code and object code
form, as part of such Verigy Products; provided, however, that with
respect to Agilent Commercial Software, Verigy IP Sub shall be limited to using
no more than ten percent (10%) of the lines of code of any Agilent Commercial
Software in any Verigy Product sold or maintained by Verigy IP Sub or its
Affiliates to a Third Party after the Distribution Date (it being understood
that such restriction shall not apply, however, to Verigy IP Sub’s use of any
software code contained in any Verigy Commercial Software to the extent that
Verigy IP Sub desires to continue to sell such Verigy Product in a form containing
such software code or Improvements thereto).

 

(i)                                     Verigy acknowledges and agrees that,
subsequent to the Distribution Date, Verigy and its Affiliates may no
longer use de-encryption algorithms or other access methods that were
previously provided by Agilent to internal Agilent users to enable those
internal Agilent users to use locked or encrypted copies of Agilent Commercial
Software or other software, except to the extent necessary to continue using
those copies rightfully in use before the Distribution Date. Any access after
the Distribution Date by Verigy, or a Verigy Affiliate, to additional copies of
such Agilent Commercial Software or other software (beyond those copies
rightfully in use before the Distribution Date), or to support, updates,
revisions or service, shall be as separately agreed with Agilent or with an
appropriate Third Party software vendor.

 

(h)                                 RF10X IPR.   For the avoidance of doubt,
as stated in Exhibit A, Agilent’s and its Subsidiaries’ Intellectual
Property Rights include the RF10X IPR for the purpose of the license grants to
Verigy in this Article III, as applicable. For the further avoidance of
doubt and notwithstanding other provisions of this Agreement, the RF10X IPR
licensed to Verigy IP Sub hereunder shall mean (i) with respect to IPR
other than Patents, such IPR as it exists at the conclusion of the RF10X
development program, and (ii) with respect to Patents, such Patents
arising out of the RF10X development program with a First Effective Filing Date
on or before the first anniversary of the conclusion of the RF10X development
program. On or about the Separation Date, the Parties will execute a separate
RF10X Project Agreement to specify terms and conditions for the development
program. Any Agilent obligation to provide RF10X deliverables shall be as
stated in such RF10X Project Agreement. In addition, to the extent that the
RF10X Project Agreement states any term or condition (specifically including
any term or condition pertaining to Technology or IPR or any ownership,
licensing or transfer thereof) that is in conflict with any term or condition
in this Agreement, the Master Separation and Distribution Agreement or the
General Assignment and Assumption Agreement, the RF10X Project Agreement shall
control.

 

3.2                                 Have Made Rights.   The licenses to Verigy IP Sub
in Section 3.1 above shall include the right to have contract
manufacturers and foundries manufacture Verigy Products for Verigy IP Sub and
its Affiliates (including private label or OEM versions of such products), and
are not intended to include

 

4

 

foundry
or contract manufacturing activities that Verigy IP Sub or any of its
Affiliates may undertake on behalf of Third Parties, whether directly or
indirectly.

 

3.3                                 Sublicenses.   The licenses granted to
Verigy IP Sub in Section 3.1 above shall not include any right to grant
any sublicenses except as follows:

 

(a)                                  Subsidiaries.   Verigy IP Sub may grant
sublicenses to its Affiliates within the scope of its licenses in Section 3.1
above with no right for such Affiliates to grant further sublicenses other
than, in the case of a sublicensed Affiliate, to another Affiliate of Verigy IP
Sub; provided however, that (i) any such sublicense shall only be
effective for such time as such entity remains an Affiliate of Verigy IP Sub,
and (ii) neither Verigy IP Sub nor any Verigy Affiliate shall be permitted
to grant any sublicense within the scope of the licenses in Section 3.1 to
any Third Party which is involved in a Change of Control transaction with
Verigy or any Verigy Affiliate, without the express prior written consent of
Agilent being granted pursuant to Section 8.2 below.

 

3.4                                 Retroactivity.   Any sublicense granted
pursuant to Section 3.3 above may be made effective retroactively,
but shall not be effective for any time prior to the sublicensee’s becoming an
Affiliate of Verigy IP Sub, and shall only be effective for such times that
such entity remains an Affiliate of Verigy IP Sub.

 

3.5                                 For Resale and End
Users.   Any
software licenses granted by Verigy IP Sub to its distributors, resellers, OEM
customers, VAR customers, VAD customers, systems integrators and other channels
of distribution and to its end user customers with respect to any Verigy
Product may include a sublicense under the Intellectual Property Rights
licensed by Agilent and its Affiliates in this Article III, as applicable,
solely within the scope of the licenses set forth in Section 3.1 above,
provided that the scope of such sublicense is limited solely to the exercise of
the rights granted by Verigy IP Sub and only with respect to such Verigy
Product.

 

3.6                                 Improvements.   As between Agilent and its
Affiliates on the one hand, and Verigy and its Affiliates on the other hand,
Verigy IP Sub hereby retains all right, title and interest, including all
Intellectual Property Rights, in and to any Improvements made by or on behalf
of Verigy IP Sub (a) to any of the Transferred Intellectual Property
Rights or Business Technology, or (b) in the exercise of the licenses
granted to it by Agilent and its Affiliates in this Article III, subject
in each case only to the ownership interests of Agilent, its Affiliates and
Third Parties in the underlying Intellectual Property Rights improved thereby.
Verigy IP Sub shall not have any obligation under this Agreement to notify
Agilent or its Affiliates of any such Improvements made by or on behalf of it or
to disclose or license any such Improvements to Agilent or its Affiliates.

 

3.7                                 Agilent Restricted
Patents.   Agilent
hereby covenants on its own behalf and on behalf of its Affiliates that it will
not assert against Verigy IP Sub or a Verigy Affiliate any Agilent Restricted
Patent that would have been licensed hereunder but for the restriction against
Agilent or its Affiliates licensing such Patent to Verigy IP Sub contained in a
Third Party agreement. Such covenant shall be with respect to any conduct that
would have otherwise been licensed hereunder. Such covenant shall be effective
to the extent permitted by the Third Party agreement.

 

ARTICLE IV 

LICENSES TO AGILENT

 

4.1                                 License Grants.   Verigy IP Sub agrees to
grant, and Verigy agrees to cause its Affiliates to grant, to Agilent the
following personal, irrevocable, non-exclusive, worldwide, royalty-free and

 

5

 

non-transferable
(except as set forth in Article VIII below) licenses under the Licensed Verigy
IPR subject to the terms of this Agreement as follows:

 

(a)                                  Patents.   Under the Verigy Patents, a
license to make (including the right to practice methods, processes and
procedures), have made (subject to Section 4.2), use, lease, sell, offer
for sale and import Agilent Products (i) with respect to the Transferred
Additional Patents, without restriction as to field of use, and (ii) with
respect to all other Verigy Patents solely in the Agilent Field. The Verigy
Patent licenses set forth in this Section 4.1 shall expire, with respect
to each individual licensed Patent, upon the expiration of the term of each
such Verigy Patent.

 

(b)                                 Copyrights.   Under its and their
Copyrights constituting Licensed Verigy IPR, (i) to reproduce and have
reproduced (subject to Section 4.2) the works of authorship included
therein and Improvements thereof prepared by or on behalf of Agilent, in whole
or in part, solely as part of Agilent Products in the Agilent Field, (ii) to
prepare Improvements or have Improvements prepared for it based upon such works
of authorship solely to create Agilent Products in the Agilent Field, (iii) to
distribute (by any means and using any technology, whether now known or
unknown) copies of the works of authorship included therein (and Improvements
thereof prepared by or on behalf of Agilent) to the public by sale or other
transfer of ownership or by rental, lease or lending, solely as part of
Agilent Products in the Agilent Field, (iv) to perform (by any means
and using any technology, whether now known or unknown, including without
limitation electronic transmission) and display the works of authorship
included therein (and Improvements thereof prepared by or on behalf of
Agilent), in all cases solely as part of Agilent Products in the Agilent Field,
and (v) to use such works of authorship (and Improvements thereof prepared
by or on behalf of Agilent) solely to design, develop, manufacture and have
manufactured (subject to Section 4.2), sell and support Agilent Products
in the Agilent Field.

 

(c)                                  Database Rights.   Under its and their Database
Rights constituting Licensed Verigy IPR, to extract data from the databases
included therein and to re-utilize such data (and Improvements thereof prepared
by or on behalf of Agilent) solely to design, develop, manufacture and have
manufactured (subject to Section 4.2), sell and support Agilent Products
in the Agilent Field.

 

(d)                                 Mask Work Rights.   Under its and their Mask Work
Rights constituting Licensed Verigy IPR, (i) to reproduce and have
reproduced (subject to Section 4.2), by optical, electronic or any other
means, mask works and semiconductor topologies included in the Business
Technology and embodied in Agilent Products solely in the Agilent Field, (ii) to
import or distribute a product in which any such mask work or semiconductor
topology is embodied, and (iii) to induce or knowingly to cause a Third
Party to do any of the acts described in subsections (i) and (ii) above.

 

(e)                                  Trade Secrets and
Industrial Designs.   Under
its and their Trade Secrets and Industrial Designs constituting Licensed Verigy
IPR (and Improvements thereof prepared by or on behalf of Agilent) solely to
design, develop, manufacture and have manufactured (subject to Section 4.2),
sell and maintain Agilent Products in the Agilent Field.

 

(f)                                    Third Party Licenses.   With respect to Intellectual
Property Rights licensed to Verigy IP Sub, Verigy or its Affiliates by a Third
Party, the license grants set forth in this Article IV shall be subject to
all of the conditions set forth in the relevant license agreement between
Verigy IP Sub or the Verigy Affiliate and such Third Party, in addition to all
of the terms, conditions and restrictions set forth herein. Licenses to Agilent
under Intellectual Property Rights owned by a Third Party shall expire on the
expiration of the term of the corresponding license agreement between such
Third Party and Verigy IP Sub or the Verigy Affiliate, as the case may be.

 

(g)                                 Software.   Without limiting the
generality of the foregoing licenses granted in this Section 4.1, with
respect to software included within the Business Technology, such licenses
include the right to use, modify, and reproduce such software, in source code
and object code form, (and

 

6

 

Improvements thereof made
by or on behalf of Agilent or its Subsidiaries) to create Agilent Products
solely in the Agilent Field and to sell and maintain such software as part of
such Agilent Products.

 

4.2                                 Have Made Rights.   The licenses to Agilent in Section 4.1
above shall include the right to have contract manufacturers and foundries
manufacture Agilent Products for Agilent (including private label or OEM
versions of such products) and are not intended to include foundry or contract
manufacturing activities that Agilent or any of its Affiliates may undertake
on behalf of Third Parties, whether directly or indirectly.

 

4.3                                 Sublicenses.   The licenses granted to
Agilent in Section 4.1 above shall not include any right to grant any
sublicenses except as follows:

 

(a)                                  Agilent may grant sublicenses to its
Affiliates within the scope of its licenses in Section 4.1 above with no
right for such Affiliates to grant further sublicenses other than, in the case
of a sublicensed Affiliate, to another Affiliate of Agilent; provided, however,
that (i) any such sublicense shall only be effective for such time as such
entity remains an Affiliate of Agilent, and (ii) neither Agilent nor any
Agilent Affiliate shall be permitted to grant any sublicense within the scope
of the licenses in Section 4.1 to any Third Party which is involved in a
Change of Control transaction with any Agilent or any Agilent Affiliate,
without the express prior written consent of Verigy, in its sole discretion.

 

4.4                                 Retroactivity.   Any sublicense granted
pursuant to Section 4.3 above may be made effective retroactively,
but shall not be effective for any time prior to the sublicensee’s becoming an
Affiliate of Agilent, and shall only be effective for such times that such
entity remains an Affiliate of Agilent.

 

4.5                                 For Resale and End
Users.   Any
software licenses granted by Agilent to its distributors, resellers, OEM
customers, VAR customers, VAD customers, systems integrators and other channels
of distribution and to its end user customers with respect to any Agilent
Product may include a sublicense under the Intellectual Property Rights
licensed by Verigy IP Sub and Verigy’s Affiliates in this Article IV, as
applicable, solely within the scope of the licenses set forth in Section 4.1
above, provided that the scope of such sublicense is limited solely to the
exercise of the rights granted by Agilent and only with respect to such Agilent
Product.

 

4.6                                 Improvements.   As between Agilent and its
Affiliates on the one hand and Verigy and its Affiliates on the other hand,
Agilent and its Affiliates hereby retain all right, title and interest,
including all Intellectual Property Rights, in and to any Improvements made by
or on behalf of Agilent or its Affiliates in the exercise of the licenses
granted to it by Verigy IP Sub and Verigy’s Affiliates in this Article IV,
subject only to the ownership of Verigy IP Sub, Verigy Affiliates or any Third
Parties in the underlying Intellectual Property Rights improved thereby.
Agilent shall not have any obligation under this Agreement to notify Verigy IP
Sub of any such Improvements made by or on behalf of it or to disclose or
license any such Improvements to Verigy IP Sub or any Verigy Affiliates.

 

4.7                                 Verigy Restricted
Patents.   Verigy
IP Sub hereby covenants and Verigy, on its own behalf and on behalf of its
Affiliates other than Verigy IP Sub, hereby covenants that it will not assert
against Agilent or an Agilent Affiliate any Verigy Restricted Patent that would
have been licensed hereunder but for the restriction against Verigy or its
Affiliate licensing such Patent to Agilent contained in a Third Party
agreement. Such covenant shall be with respect to any conduct that would have
otherwise been licensed hereunder. Such covenant shall be effective to the
extent permitted by the Third Party agreement.

 

7

 

ARTICLE V

ADDITIONAL INTELLECTUAL PROPERTY RELATED MATTERS

 

5.1                                 Assignments and
Licenses.   No
Party may assign or grant a license under any of such Party’s Intellectual
Property Right which it has licensed to the other Party in Article III or
IV above, unless such assignment or grant is made subject to the licenses
granted herein.

 

5.2                                 Assistance By Employees.
  Each
Party agrees that its employees and contractors have a continuing duty to
assist the other Party with the prosecution of the other Party’s Patent
applications and, accordingly, each agrees to make available to the other Party
or its counsel inventors and other reasonably necessary persons employed by it
for interviews and/or testimony to assist in good faith in further prosecution,
maintenance or litigation of such Patent applications, including the signing of
documents related thereto. Any actual and reasonable out-of-pocket expenses
associated with such assistance shall be borne by the Party that owns the
Patent application, expressly excluding the value of the time of each Party’s
personnel.

 

5.3                                 Inventor Compensation.   Each Party will be
responsible for providing inventor incentive compensation to its employees
under its own internal policies. To the extent that a Party bases an inventor’s
incentive compensation on a Patent or a Patent application of the other Party,
the Parties will reasonably cooperate by providing to each other relevant
information about their Patents for which one or more inventors are employees
of the other Party. To the extent that inventor compensation is specified by
local law, such as in Germany and Japan, the Parties will cooperate in
providing reasonable information to each other in order to enable each Party to
calculate inventor compensation. No Party shall have any obligation to provide
any inventor incentive compensation to an employee of the other Party except as
required by law.

 

5.4                                 Assistance with
Litigation.   In
the case of assistance with Third Party litigation pertaining to any of the
Intellectual Property Rights transferred in Article II or licensed in
Articles III or IV above, the Parties shall agree on a case by case basis on
reasonable compensation, for the value of the non-litigating Party’s employee’s
time as reasonably required in connection with any such litigation.

 

5.5                                 No Implied Licenses.   Nothing contained in this
Agreement shall be construed as conferring any rights by implication, estoppel
or otherwise, under any Intellectual Property Rights, other than as expressly
granted in this Agreement.

 

5.6                                 No Field Restrictions
For Patent Licensing.   Notwithstanding anything to the contrary set forth in this
Agreement, the Parties shall be free to grant licenses of any sort under any of
their owned Verigy Patents or Agilent Patents (as the case may be) to any
Third Party without restriction as to field of use.

 

5.7                                 No Obligation to
Prosecute Patents.   No
Party shall have any obligation to seek, perfect or maintain any protection for
any of its Intellectual Property Rights. Without limiting the generality of the
foregoing, no Party shall have any obligation to file any Patent application,
to prosecute any Patent or secure any Patent rights or to maintain any Patent in
force. Agilent and Verigy will agree on a reasonable list of Patent families
retained by Agilent but of interest to Verigy and Agilent will use good faith
efforts to track those families in its patent management database and to offer
to assign to Verigy IP Sub any granted patents in such families if Agilent
decides to abandon or lapse such granted patent. Agilent’s offer will be under
reasonable conditions (including, for example, acknowledgement of prior third
party rights, license back to Agilent without restriction as to field of use,
and similar conditions consistent with this Agreement). Agilent’s tracking and
offer obligation is personal to Verigy IP Sub and will not extend to any
successor in interest to Verigy IP Sub and, in any event, will expire five (5) years
after the Separation Date unless Verigy IP Sub makes an annual written request
to Agilent

 

8

 

thereafter
to continue. For the avoidance of doubt, Agilent will have no liability for any
failure to track, offer or assign any patent under this paragraph.

 

5.8                                 Reconciliation.   In accordance with the
requirements of Section 2.8 of the General Assignment and Assumption
Agreement, the Parties acknowledge that, as part of the transfer of the
Transferred Intellectual Property Rights, the Transferred Licenses and the
Business Technology, Agilent or its Affiliates may inadvertently retain
Technology or Intellectual Property Rights that should have been transferred to
Verigy IP Sub pursuant to Article II of this Agreement, and Verigy IP Sub may inadvertently
acquire Technology or Intellectual Property Rights that should not have been
transferred. Each Party agrees to negotiate, in good faith the transfer to the
other of any such later identified Technology or Intellectual Property Rights,
subject to the licenses set forth in Articles III and IV above, at the
reasonable written request of the other Party.

 

5.9                                 Technical Assistance.   Except as otherwise set forth
herein, in the Master Separation and Distribution Agreement, or any other
mutually executed agreement between the Parties, no Party shall be required to
provide the other Party with any technical assistance or to furnish any other
Party with, or obtain on their behalf, any documents, materials or other information
or Technology.

 

5.10                           Third-Party
Infringement.   No
Party shall have any obligation hereunder to institute or maintain any action
or suit against Third Parties for infringement or misappropriation of any
Intellectual Property Rights in or to any Technology licensed to the other
Party hereunder, or to defend any action or suit brought by a Third Party which
challenges or concerns the validity of any of such Intellectual Property Rights
or which claims that any Technology licensed to the other Party hereunder
infringes or constitutes a misappropriation of any Intellectual Property Rights
of any Third Party. Each Party (the “Notifying Party”) has the continuing
obligation to promptly notify the other Party in writing upon learning of a
Third Party likely infringing upon or misappropriating any Intellectual
Property Rights of the other Party which are licensed to the Notifying Party in
this Agreement. Such notification shall set forth in reasonable specificity the
identity of the suspected infringing Third Party and the nature of the
suspected infringement.

 

5.11                           Trademark License.   No licenses under the
Trademarks of either Party are granted in Articles III or IV of this Agreement.
Any such licenses are as stated in the Manufacturing Trademark License
Agreement.

 

ARTICLE VI

CONFIDENTIAL INFORMATION

 

6.1                                 Confidential
Information.   Article VII
of the Master Separation and Distribution Agreement is incorporated herein by
this reference.

 

6.2                                 Contract Manufacturing.
  Notwithstanding
anything to the contrary herein, each Party agrees that, in exercising its “Have-Made”
rights (by Verigy IP Sub, pursuant to Section 3.2, or by Agilent, pursuant
to Section 4.2), each Party may only disclose Trade Secrets or
Industrial Designs licensed from the other Party in Articles III and IV above
if it has executed a written confidentiality agreement with the Third Party
contract manufacturer with appropriate, industry standard terms, and in all
cases containing terms and conditions pertaining to the protection of proprietary
and confidential information no less restrictive than those set forth in Article VII
of the Master Separation and Distribution Agreement.

 

6.3                                 RF10X Trade Secrets.   Notwithstanding anything to
the contrary herein or in the Master Separation and Distribution Agreement, the
term of Verigy’s and Verigy IP Sub’s confidentiality obligations with respect
to the Trade Secrets contained within the RF10X IPR shall extend through July 31,
2012 unless stated otherwise in the RF10X Project Agreement.

 

9

 

6.4                                 Residuals.   Notwithstanding any other
provisions of this Agreement, each Party shall be free, and the other Party
hereby grants to the receiving Party the right, to use for any purpose the
Residuals resulting from access to Confidential Information of the disclosing
party received under this Agreement, the Master Separation and Distribution
Agreement or the General Assignment and Assumption agreement or resulting from
work with the Confidential Information of the disclosing Party. “Residuals”
means information retained in the unaided memory of an individual who has had
access to Confidential Information without conscious attempt by such individual
to memorize such information. The receiving Party shall have no obligation to
pay royalties for any use of Residuals.

 

ARTICLE VII

LIMITATION OF LIABILITY & WARRANTY DISCLAIMER

 

7.1                                 Limitation of Liability.
  IN NO
EVENT SHALL ANY PARTY BE LIABLE TO THE OTHER PARTY FOR ANY SPECIAL,
CONSEQUENTIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES OR LOST PROFITS,
HOWEVER CAUSED AND BASED ON ANY THEORY OF LIABILITY (INCLUDING NEGLIGENCE)
ARISING IN ANY WAY OUT OF THIS AGREEMENT, WHETHER OR NOT SUCH PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE FOREGOING SHALL NOT, HOWEVER,
LIMIT THE DAMAGES AVAILABLE TO A PARTY FOR INFRINGEMENT OR MISAPPROPRIATION OF
ITS INTELLECTUAL PROPERTY RIGHTS BY ANOTHER PARTY.

 

7.2                                 Warranties Disclaimer.   Except as otherwise set forth
herein, (a) EACH PARTY ACKNOWLEDGES AND AGREES THAT ALL INTELLECTUAL
PROPERTY RIGHTS AND TECHNOLOGY LICENSED HEREUNDER ARE LICENSED WITHOUT ANY
WARRANTIES WHATSOEVER, WHETHER EXPRESS, IMPLIED OR STATUTORY, WITH RESPECT
THERETO, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, ENFORCEABILITY OR
NON-INFRINGEMENT, (b) no Party makes any warranty or representation that
any manufacture, use, importation, offer for sale or sale of any product or
service will be free from infringement of any patent or other Intellectual
Property Right of any Third Party, (c) Agilent makes no warranty or
representation that as to the validity and/or scope of any Agilent Patent or
any of the Transferred Patents or any warranty or representation that any
manufacture, use, importation, offer for sale or sale of any product or service
will be free from infringement or misappropriation of any Patent or other
Intellectual Property Right of any Third Party.

 

ARTICLE VIII

TRANSFERABILITY AND ASSIGNMENT

 

8.1                                 No Assignment Or
Transfer Without Consent(a).   Except as otherwise provided in this Article VIII,
no Party may assign or transfer any of the Intellectual Property Rights
licenses granted pursuant to this Agreement, nor this Agreement as a whole,
whether by operation of law or otherwise, without the prior written consent of
the non-transferring Party. The non-transferring Party may, in its sole and
absolute discretion, grant or withhold such consent. Any purported assignment
or transfer without such consent shall be void and of no effect. Unless
otherwise agreed in connection with consent to an assignment or transfer, no
assignment or transfer made pursuant to this Section 8.1 shall release the
transferring Party from any of its liabilities or obligations under this
Agreement. For the avoidance of doubt, Section 8.2, rather than this Section 8.1,
shall apply to any assignment, transfer or sublicensing of the Intellectual
Property licenses granted pursuant to this Agreement, or this Agreement as a
whole, in connection with a Change Of Control.

 

10

 

8.2                                 Change Of Control.

 

(a)                                  No Party (nor their respective
Subsidiaries or Affiliates) may assign, sublicense or transfer any of the
Intellectual Property Rights licenses granted pursuant to this Agreement, nor
this Agreement as a whole, whether by operation of law or otherwise, to a Third
Party in connection with a Change of Control without the prior written consent
of the non-transferring Party. The non-transferring Party may not
unreasonably withhold its consent unless, in its sole and absolute discretion,
it reasonably determines that the Third Party (including any Affiliate of the
Third Party) is substantially engaged in business activities within the
non-transferring Party’s Primary Field. Any purported assignment or transfer
without such consent shall be void and of no effect.

 

(b)                                 Notwithstanding the provisions of Section 8.2(a) above,
in the event that a Party engages in a Change Of Control involving a Third
Party that is (or if any Affiliate or Subsidiary of such Third Party is)
engaged in, or becomes engaged in, litigation, arbitration or other formal
dispute resolution proceeding with a non-transferring Party covering Patent
infringement (pending in any court, tribunal or administrative agency, or
before any appointed or agreed upon arbitrator in any jurisdiction worldwide)
at the time that the assignment or transfer occurs, or within one hundred
twenty-one days thereafter if the proceedings are initiated by the acquiring
Third Party, then the licenses transferred to the Third Party will be
immediately terminable by the non-transferring Party, in its sole and absolute
discretion, upon notice to the transferring Party.

 

8.3                                 Sale of Part of
Business.

 

(a)                                  If any Party (the “Transferring Party”),
after the Distribution Date, transfers a going business (but not all or
substantially all of such Party’s business or assets), and such transfer
includes at least one marketable product and tangible assets having a net value
of at least ten million U.S. dollars ($10,000,000), regardless of whether such
transfer is part of (i) an asset sale to any Third Party, (ii) a
sale of shares or securities in an Affiliate to a Third Party such that (A) the
Affiliate ceases to be an Affiliate and (B) the Third Party owns at least
eighty percent (80%) of the outstanding shares or securities representing the
right to vote for the election of directors or other managing authority, or (iii) a
sale of shares or securities in an Affiliate of a Party such that (A) the
Affiliate ceases to be an Affiliate and (B) no single Third Party owns at
least eighty percent (80%) of the outstanding shares or securities representing
the right to vote for the election of directors or other managing authority of
such ex-Affiliate; then, upon the joint written request of the Transferring
Party and the Transferee (as defined below) to the other Party (the “Non-Transferring
Party”) at the closing of the transfer or as soon as practicable thereafter,
but not later than sixty (60) days following the closing of the transfer,
the Non-Transferring Party shall grant a royalty-free license to the Transferee
under the same terms as the license granted to the Transferring Party under
this Agreement subject to all of the following conditions and restrictions:

 

(i)                                     the effective date of such license shall
be the closing date of such transfer,

 

(ii)                                  the products, services and processes of
the Transferee that are subject to such license shall be limited to the
products, services and processes of the transferred Affiliate or the products,
services and processes in the transferred business that are commercially
released or for which substantial steps have been taken to commercialization as
of the closing date of the transfer by the Transferring Party, and for new
versions of such products, services and processes,

 

(iii)                               the Intellectual Property Rights of the
Non-Transferring Party that are subject to such license shall be limited to
Intellectual Property Rights licensed pursuant to Articles III or IV above, as
the case may be,

 

(iv)                              the Transferee shall have no right to
grant sublicenses except that the Transferee shall have the right to grant
sublicenses to any Person at least eighty percent (80%) of whose outstanding
shares or securities representing the right to vote for the election of
directors or other

 

11

 

managing authority are,
directly or indirectly, owned by the Transferee (“Transferee Subsidiaries”),
only for so long as such ownership exists, and the license to be granted by the
Non-Transferring Party to the Transferee pursuant to this Section 8.3
shall not contain this provision or a provision containing terms comparable to
this Section 8.3; and

 

(v)                                 the Transferee shall grant to the
Non-Transferring Party a royalty-free license under the same terms as the
licenses granted to the Non-Transferring Party by the Transferring Party in
Articles III and IV of this Agreement (as the case may be), such license (A) to
be effective as of the closing date of the transfer, (B) to apply to all
the products, services and processes of the Non-Transferring Party that are
subject to the license from the Transferring Party to the Non-Transferring
Party as of the closing date of the transfer, and (C) to include all
Intellectual Property Rights of the Transferee (other than design patents) that
are entitled to a First Effective Filing Date on or before the closing date of
such transfer and under which, at any time commencing with the closing date of
the transfer, the Transferee or any of the Transferee Subsidiaries has
ownership or control or otherwise has the right to grant such license without
the obligation to pay royalties or other consideration to Third Parties;

 

(b)                                 Notwithstanding anything to the contrary
herein, (i) no Party, as a Non-Transferring Party, shall have any
obligation to enter into a license with any Transferee that the
Non-Transferring Party reasonably determines to be a competitive threat for the
Non-Transferring Party, unless the Non-Transferring Party in its sole
discretion determines that the terms of such license provide sufficient
protection for the Licensed Agilent IPR or Licensed Verigy IPR, as the case may be,
and (ii) in the event that the Non-Transferring Party and the Transferee
are engaged in litigation, arbitration or other formal dispute resolution
proceedings covering Patent infringement (pending in any court, tribunal, or
administrative agency or before any appointed or agreed upon arbitrator in any
jurisdiction worldwide), then the Non-Transferring Party shall have no
obligation to enter into a license with the Transferee under this Section 8.3.

 

(c)                                  Each of Agilent and its Affiliates on the
one hand, and Verigy IP Sub and its Affiliates on the other hand, may exercise
its rights as the Transferring Party under this Section 8.3 no more than
eight (8) times unless otherwise agreed to in writing by the
Non-Transferring Party. Notwithstanding the foregoing limitation, however, in
any license granted by a Non-Transferring Party to a Transferee under this Section 8.3,
the Transferring Party may elect to relinquish its license under this
Agreement in the field of use covered by the license granted to the Transferee,
and such license shall not count toward the limit. In making such election, the
Transferring Party shall promptly notify the Non-Transferring Party, and the
Transferring Party and the Non-Transferring party shall enter into an amendment
to this Agreement with such effect.

 

(d)                                 As used above in this Section 8.3, “Transferee”
in the case of Sections 8.3(a)(i) and (ii) means the Third Party
acquiring the going business or eighty percent (80%) of the Subsidiary and in
the case of Section 8.3(a)(iii) means the ex-Subsidiary only.

 

ARTICLE IX

COMPETITIVE RESTRICTIONS

 

9.1                                 Competitive
Restrictions.   Notwithstanding
anything to the contrary contained in this Agreement (except as stated in Section 5.6
above and Section 9.2 below), in the General Assignment and Assumption
Agreement or in the Master Separation and Distribution Agreement, the parties
agree that for a period of three (3) years following the Distribution
Date, (a) Agilent and its Affiliates will not develop, manufacture,
distribute, support or service any Agilent Products that are either (i) within
the Verigy Primary Field, or are (ii) ASTS Components, whether or not
within the Agilent Field; (b) Agilent will not join the Semiconductor Test
Consortium; and, (c) Verigy and its Affiliates will not develop,
manufacture, distribute, support or service any Verigy Products that are within
the Agilent

 

12

 

Primary
Field. For the avoidance of doubt, a product that is within the Agilent Field
shall not be considered to be within the Verigy Primary Field for the purposes
of Section 9.1(a)(i) above.

 

9.2                                 Conflicting Contractual
Obligations.   Notwithstanding
anything to the contrary in this Agreement, the Master Separation And
Distribution Agreement or the General Assignment and Assumption Agreement,
nothing in this Article IX shall restrict the ability of Agilent or its
Affiliates to take any action, or to fail to take any action, in order to
comply in all respects with any of their respective obligations under any
contractual agreements in effect as of March 1, 2006 or under any
amendments to any such agreements (or under associated documents, which may not
be identified as amendments, intended to implement such agreement or
amendment), even if to do so would conflict with any of the restrictions in
this Agreement.

 

ARTICLE X

MISCELLANEOUS

 

Article IX of the Master Separation And
Distribution Agreement is hereby incorporated into this Agreement by this
reference.

 

[SIGNATURE PAGES FOLLOW]

 

13

 

IN WITNESS WHEREOF, the Parties have caused this Intellectual Property
Matters Agreement to be duly executed as of the date first above written. 

 

	
   

  	
  AGILENT
  TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  JOHN
  EATON

  
	
   

  	
   

  	
  Name:

  	
   John
  Eaton 

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President, Corporate Development

  

 

 

[AGILENT’S SIGNATURE PAGE TO THE INTELLECTUAL PROPERTY
MATTERS AGREEMENT—

VERIGY’S AND VERIGY IP SUB’S SIGNATURE PAGE FOLLOWS]

 

14

 

	
   

  	
  VERIGY LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  KEITH
  L. BARNES

  
	
   

  	
   

  	
  Name:

  	
   Keith
  L. Barnes

  
	
   

  	
   

  	
  Title:

  	
  President
  and Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  VERIGY
  (SINGAPORE) PTE. LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  KENNETH
  M. SIEGEL

  
	
   

  	
   

  	
  Name:

  	
   Kenneth
  M. Siegel

  
	
   

  	
   

  	
  Title:

  	
  Vice
  President

  

 

 

[VERIGY’S AND VERIGY IP SUB’S SIGNATURE PAGE TO
THE INTELLECTUAL PROPERTY MATTERS AGREEMENT]

 

15

 

EXHIBIT A

 

The following terms, as used in this Agreement, have
the following meanings:

 

“Affiliate” shall have
the meaning set forth in the Master Separation and Distribution Agreement.

 

“Agilent Commercial
Software” means software products commercially released by Agilent
or its Subsidiaries and listed on an Agilent CPL as of the Distribution Date,
or (if applicable) that has been released by Agilent or any of its Subsidiaries
to Third Parties for beta testing as of the Distribution Date.

 

“Agilent Field”
means the design, development, research, manufacture, supply, distribution,
sale, support (including consulting and other services), and maintenance of any
products that are: (a) within the Agilent Primary Field; (b) within
the Agilent Overlap Field; (c) listed in the Agilent CPL as of the
Separation Date, and reasonable extensions thereof; or, (d) outside of the
Verigy Primary Field. For the avoidance of doubt, the Agilent Field excludes
any products that are within the Verigy Primary Field unless specifically
listed in (a-c) of this definition.

 

“Agilent Overlap
Field” means the design, development, research, manufacture, supply,
distribution, sale, support (including consulting and other services), and
maintenance of any:

 

(a)                                  ASTS Components;

 

(b)                                 products, including parts and components
thereof, for providing Functional Test of ICs, SOCs or SIPs (whether or not
within the definition of ASTS) but only to the extent that (i) such ICs or
SOCs (or ICs and/or SOCs within such SIPs) are non-Silicon based; (ii) such
ICs, SOCs or SIPs are made by or for Agilent; or (iii) such products are
only incidentally capable of performing high-volume Functional Test of ICs,
SOCs or SIPs;

 

(c)                                  test capability embedded in an IC, SOC or
SIP, including development of software and test and other protocols for
communication with a Parametric Test, Design Verification or Engineering
Characterization test system and/or with an ASTS or an ASTS Component; and,

 

(d)                                 products (other than ASTSs), including
parts and components thereof, for providing Parametric Test, Design
Verification, Engineering Characterization or Functional Test of: (i) wireless
communications devices, such as cellular telephones or wireless networking
products, whether in packaged device or module form, and whether or not
implemented as an IC, SOC or SIP; (ii) modules (such as RF front-end
modules) containing one or more SOCs or ICs connected with other active or
passive devices; and (iii) RF and higher frequency (e.g., microwave and
optical) devices and components such as oscillators, mixers, amplifiers and
3-port devices, to the extent that such devices or components are in the form of
an IC, SOC or SIP.

 

The Parties
anticipate that future advances in technology will yield higher levels of
semiconductor device integration such that future instances of the devices
under test listed in the definitions of Agilent Primary Field and Agilent
Overlap Field might be considered to have evolved into an IC, SOC or SIP. For
the avoidance of doubt, the products listed in the Agilent Primary Field and
the Agilent Overlap Field will be deemed to be within the Agilent Overlap Field
and the Verigy Overlap Field to the extent that such future instances of
devices under test have so evolved.

 

“Agilent Patents”
means (a) the RF10X Patents, and (b) every Patent other than design
patents or the Transferred Patents, with a First Effective Filing Date prior to
the first anniversary of the Separation Date that is (i) owned by Agilent
or any of its Subsidiaries as of or after the Separation Date, or for which (ii) Agilent
or any of its Subsidiaries has the right as of or after the Separation Date
under such Patent to grant licenses to Verigy IP Sub of the scope granted by
Agilent to Verigy IP Sub in Section 3.1 of this Agreement without the
payment of royalties or other consideration to any Third Parties (excluding
employees of Agilent or its Affiliates); provided however that no Patent shall
be considered an Agilent Patent if it is an Agilent Restricted Patent.

 

 

“Agilent Primary
Field” means the design, development, research, manufacture, supply,
distribution, sale, support (including consulting and other services), and
maintenance of any:

 

(a)                                  general purpose test and measurement
products and services, including those that operate under automatic or
semi-automatic control of a computer or other device (such as those that comply
with standards from the LXI Consortium); and, also including those intended for
use outside of high-volume manufacturing such as for laboratory use;

 

(b)                                 products (other than ASTSs and ASTS
Components), including parts and components thereof, for providing Parametric
Test, Design Verification or Engineering Characterization of ICs, SOCs or SIPs;
and

 

(c)                                  products, including parts and components
thereof, for providing Parametric Test, Design Verification, Engineering
Characterization or Functional Test of: passive components; boards; empty
packages; optical and optoelectronic devices; Film Bulk Acoustic Resonators;
displays; filters; RF and higher frequency (e.g., microwave and optical)
devices and components such as oscillators, mixers, amplifiers and 3-port
devices, except to the extent that such devices or components are in the form of
an IC, SOC or SIP (and are thereby within the Agilent Overlap Field); wireless communications
devices, such as cellular telephones or wireless networking products, in
finished goods form; microfluidic circuits and gene arrays; and, any other
device other than an IC, SOC or SIP.

 

“Agilent Products”
means all products and services of the businesses in which Agilent or any of
its Affiliates is now or hereafter engaged, including the business of making
(but not having made) Third Party products for Third Parties when Agilent or
any of its Affiliates is acting as a contract manufacturer or foundry for such
Third Parties. The term Agilent Products includes the Technology embodied in
and/or used to manufacture or deliver the products and services referred to in
the preceding sentence as well as marketing and other collateral materials
related thereto.

 

“Agilent Restricted
Patent” means any Patent under which Agilent is restricted from
granting a license to Verigy IP Sub pursuant to an agreement with a Third
Party.

 

“Automated
Semiconductor Test System” or “ASTS”
means an automated test system for providing high-volume Functional Test of
ICs, SOCs or SIPs).

 

An ASTS may include hardware and software for
wafer sort or final manufacturing test of such ICs, SOCs or SIPs and may include
the ability to interact with test capability embedded on the IC or SOC, or
within the SIP, but the ASTS excludes any such embedded test capability.

 

For the avoidance of doubt: (a) inclusion of
Parametric Test, Design Verification or Engineering Characterization
capabilities in a test system does not disqualify such test system from being
considered an ASTS if such capabilities are incidental to the primary function
of providing high-volume Functional Test of ICs, SOCs or SIPs; (b) a test
system that includes Parametric Test, Design Verification or Engineering
Characterization capabilities but is not capable of, or is only incidentally
capable of, performing high-volume Functional Test shall not be considered an
ASTS; and, (c) a test system, and reasonable extensions thereof, shall not
be considered an ASTS to the extent that: (i) it is listed on the Agilent
CPL as of the Separation Date, or (ii) it was or is developed by Agilent
(excluding that portion of Agilent that is now Verigy) and is in use by or for
Agilent.

 

“Automated
Semiconductor Test System Component” or “ASTS Component” means a product that is, or is intended to
be:

 

(a)                                  a part or component of an ASTS;

 

(b)                                 added to an ASTS to change the features
and/or functions of the ASTS; or

 

(c)                                  added to an ASTS in lieu of or
substitution for another part or component.

 

An ASTS Component may, for example, be structured as a
card, blade or similar module.

 

 

For the avoidance of doubt: (i) a product shall
not be considered an ASTS Component if it is intended to have, or has, primary
or substantial use other than as stated in (a-c) of this definition; (ii) a
product shall not be considered an ASTS Component if it is based on technology
underlying the RF10X development (such as the signal source that is code-named
Galleon and the signal analyzer that is code-named Zorro) to the extent that
such products are either not implemented as a card, blade or similar module but
are otherwise implemented such as in a rack-mount configuration, or such
products are within (i) of this definition; and, (iii) a part or
component of a product shall not be considered an ASTS Component to the extent
that such product is within (b or d) of the definition of Agilent Overlap
Field or within (b or c) of the definition of Agilent Primary Field.

 

“Business”
has the meaning set forth in the General Assignment and Assumption Agreement.

 

“Business
Technology” means the Technology described on the Attached Exhibit E.

 

“Change of Control”
means with respect to a Party, a transaction in which any of the following
occurs, whether directly or indirectly: (a) a Third Party acquires all or
substantially all of such Party’s assets; (b) a Third Party acquires
greater than fifty percent (50%) ownership interest in the outstanding shares
or stock entitled to vote for the election of directors of, or the ability to otherwise
control or direct the affairs of, such Party; (c) a Third Party acquires
greater than fifty percent (50%) ownership interest in the outstanding shares
or stock entitled to vote for the election of directors of, or the ability to
otherwise control or direct the affairs of such Party if the non-transferring
Party reasonably determines that the Third Party (including any Affiliate of
the Third Party) is substantially engaged in business activities within the
Agilent Primary Field (if Agilent is the non-transferring Party) or the Verigy
Primary Field (if Verigy is the non-transferring Party).

 

“CPL”
means a Party’s published corporate price list as of the Separation Date.
Without limiting the foregoing, references to the Verigy CPL shall be deemed to
include products listed in the Agilent CPL that the parties intend to transfer
to Verigy as part of the Business as stated in the Master Separation and
Distribution Agreement, and references to the Agilent CPL shall be deemed to
exclude any such products to the extent that such transfer is intended by the
parties to be exclusive.

 

“Design
Verification” means testing various functions or portions of an
individual device (such as an IC or SOC, whether in chip, wafer or packaged
form, or an SIP), or of a selected group of devices, in order to determine
functionality and/or performance relative to design specifications. For
example, Design Verification may be used to identify actual or potential
design flaws such as by performing detailed performance testing over a range of
specified operating conditions and inputs. Design Verification may also
include testing functions or portions of a device not typically used during
normal device operation.

 

“Distribution Date”
has the meaning set forth in the Master Separation And Distribution Agreement.

 

“Engineering
Characterization” means testing various functions or portions of an
individual device (such as an IC or SOC, whether in chip, wafer or packaged
form, or an SIP) or of a selected group of devices in order to predict device
performance. For example, individual ICs may be selected from various lots
of a high-volume manufacturing process and subjected to Engineering
Characterization testing, and statistical analysis, to determine if process or
design changes should be made to achieve a desired acceptance yield over
expected process variations. Engineering Characterization may include
other testing such as failure analysis and lifespan testing and device modeling
based on test results.

 

“First Effective
Filing Date” means the earliest effective filing date in the
particular country for any Patent or any Patent application. By way of example,
it is understood that the First Effective Filing Date for a United States
Patent is the earlier of (a) the actual filing date of the application
which issued into the Patent or (b) the priority date under 35 U.S.C. § 119
or §120 for such Patent.

 

“Functional Test”
means testing selected functions of an individual device (such as an IC or SOC,
whether in chip, wafer or packaged form, or an SIP) against manufacturing
acceptance criteria in order

 

 

to
determine if the individual device has passed, such as for the purpose of
discarding failed devices and moving passed devices to the next step of a
manufacturing process.

 

“Improvement”
to any Intellectual Property Right or Technology means (a) with respect to
Copyrights, any modifications, derivative works and translations of works of
authorship in any medium, (b) with respect to Database Rights, any
database that is created by extraction or re-utilization of another database,
and (c) with respect to Technology, any improvement or modification to the
Trade Secrets, Industrial Designs and Mask Works that cover or are otherwise
incorporated into Technology.

 

“Integrated Circuit”
or “IC” means a complex, analog
or digital, electronic circuit fabricated on a single semiconductor substrate
and including active and passive devices that are fabricated using deposition
or similar processing techniques rather than as discrete devices.

 

“Intellectual Property
Rights” or “IPR” means
the rights associated with the following anywhere in the world: (a) patents
and utility models, and applications therefore (including any continuations,
continuations-in-part, divisionals, reissues, renewals, extensions or modifications
for any of the foregoing) (“Patents”);
(b) trade secrets and all other rights in or to confidential business or
technical information (“Trade Secrets”);
(c) copyrights, copyright registrations and applications therefore, moral
rights and all other rights corresponding to the foregoing (“Copyrights”); (d) uniform resource
locators and registered internet domain names (“Internet Properties”); (e) industrial design rights and
an registrations and applications therefore (“Industrial
Designs”); (f) databases and data collections (including
knowledge databases, customer lists and customer databases) under the laws of
any jurisdiction, whether registered or unregistered, and any applications for
registration therefor (“Database Rights”);
(g) mask works, and mask work registrations and applications therefor (“Mask Work Rights”); (h) trademarks
and service marks, whether registered or unregistered, and the goodwill
appurtenant to each of the foregoing (“Trademarks”);
and (i) any similar, corresponding or equivalent rights to any of the
foregoing. Intellectual Property Rights specifically excludes contractual
rights (including license grants from Third Parties) and also excludes the
tangible embodiment of any of the foregoing in subsections (a-i).

 

“Licensed Agilent
IPR” means (a) the Agilent Patents, and (b) all
Intellectual Property Rights other than Patents and Trademarks (i) which
are owned by Agilent or an Agilent Affiliate as of the Separation Date, (ii) which
are included in the RF10X IPR, or (iii) for which Agilent or any Agilent
Affiliate has as of the Separation Date the right to grant licenses to Verigy
IP Sub of the scope granted by Agilent to Verigy IP Sub in the corresponding
sections of Article III of this Agreement without the payment of royalties
or other consideration to any Third Parties (excluding employees of Agilent or
its Affiliates); provided however, that no Intellectual Property Right shall be
considered Licensed Agilent IPR if Agilent is restricted from granting Verigy
IP Sub a license under any such Intellectual Property Right pursuant to an
agreement with a Third Party.

 

“Licensed Verigy
IPR” means (a) the Verigy Patents, and (b) all
Intellectual Property Rights other than Patents and Trademarks (i) which
are owned by Verigy IP Sub or a Verigy Affiliate as of the Separation Date, or (ii) for
which Verigy IP Sub or any Verigy Affiliate has the right as of the Separation
Date to grant licenses to Agilent of the scope granted by Verigy IP and the
Verigy Affiliates to Agilent in the corresponding sections of Article IV
of this Agreement without the payment of royalties or other consideration to
any Third Parties (excluding employees of Verigy IP Sub, or any Verigy
Affiliates); provided however that no Intellectual Property Right shall be considered
Licensed Verigy IPR if Verigy IP Sub is restricted from granting Agilent a
license under any such Intellectual Property Right pursuant to an agreement
with a Third Party.

 

“Parametric Test”
means testing selected parameters of an individual device (such as an IC,
whether in chip, wafer or packaged form) or of a selected group of devices, or
of some aspect related to the device, in order to identify actual or potential
flaws. For example, Parametric Test of scribe line test structures or process control
monitor structures located on a semiconductor wafer may be used in a
high-volume manufacturing process to identify process problems that may result
in devices failing to pass Functional Test.

 

 

“Party’s Primary
Field” means the Agilent Primary Field or the Verigy Primary Field
as the case may be.

 

“RF10X IPR”
means the Intellectual Property Rights developed, invented or created in
connection with the development program known as the “RF10X” development
program.

 

“Separation Date”
shall have the meaning set forth in the General Assignment and Assumption
Agreement.

 

“Subsidiary”
shall have the meaning set forth in the Master Separation and Distribution
Agreement.

 

“System-In-A-Package”
or “SIP” means an assemblage of
multiple ICs and other components in a single package in which all of the
diverse electronic circuits that are necessary for the functioning of a
particular complex multi-function system are integrated together within the
single package. The definition of “SIP” excludes finished goods packaging
intended for an end user.

 

“System-On-A-Chip”
or “SOC” means an IC in which all
of the diverse electronic circuits that are necessary for the functioning of a
particular complex multi-function system are integrated together on the single
semiconductor substrate of the IC.

 

“Technology”
means tangible embodiments, whether in electronic, written or other media, of
technology, including designs, design and manufacturing documentation (such as
bill of materials, build instructions and test reports), schematics,
algorithms, routines, software, databases, lab notebooks, development and lab
equipment, processes, prototypes and devices. Technology does not include
Intellectual Property Rights, including any Intellectual Property Rights in any
of the foregoing.

 

“Third Party”
means any Person other than a Party.

 

“Transferred
Additional Patents” means the Patents identified as such on the
Attached Exhibit C.

 

“Transferred
Business Patents” means the Patents identified as such on the
attached Exhibit C.

 

“Transferred
Intellectual Property Rights” means (a) the Transferred
Patents, (b) the Copyrights, Internet Properties, Industrial Designs,
Database Rights and Mask Work Rights identified on the attached Exhibit D,
and (c) the Transferred Trade Secrets.

 

“Transferred
Licenses” means the agreements between Agilent or its Subsidiaries
and a Third Party set forth on Exhibit F.

 

“Transferred
Patents” means the Transferred Business Patents and the Transferred
Additional Patents.

 

“Transferred
Trademarks” means the Trademarks identified on the attached Exhibit D.

 

“Transferred Trade
Secrets” means the Trade Secrets known to the Parties that are
exclusively used in the Business.

 

“Verigy Commercial
Software” means software products commercially released by Verigy or
its Subsidiaries and listed on a Verigy CPL as of the Distribution Date, or (if
applicable) that has been released by Verigy or any of its Subsidiaries to
Third Parties for beta testing as of the Distribution Date.

 

“Verigy Field”
means the design, development, research, manufacture, supply, distribution,
sale, support (including consulting and other services), and maintenance of any
products that are:

 

(a)                                  within the Verigy Primary Field;

 

(b)                                 within the Verigy Overlap Field; or

 

(c)                                  listed in the Verigy CPL as of the
Separation Date, and reasonable extensions thereof.

 

For the avoidance of doubt, the Verigy Field excludes
any products that are within the Agilent Primary Field unless specifically
listed in (a-c) of this definition.

 

 

For the further avoidance of doubt, the Parties
acknowledge that Verigy’s area of interest is focused on the testing of complex
ICs, SOCs and SIPs that have a very large number of input/output ports.

 

“Verigy Overlap
Field” means the design, development, research, manufacture, supply,
distribution, sale, support (including consulting and other services), and
maintenance of any:

 

(a)                                  ASTS Components;

 

(b)                                 products (other than ASTSs) for providing
Functional Test of ICs, SOCs or SIPs, whether or not including Parametric Test,
Design Verification or Engineering Characterization capabilities;

 

(c)                                  ASTS development test systems (including
hardware and software) that are intended to enable development of test programs
and protocols for use in high-volume Functional Test of ICs, SOCs or SIPs, whether
or not such development test systems themselves are capable of providing such
high-volume Functional Test; and,

 

(d)                                 products (other than ASTSs) for providing
Parametric Test, Design Verification, Engineering Characterization or
Functional Test of: (i) wireless communications devices, such as cellular
telephones or wireless networking products, whether in packaged device or
module form, and whether or not implemented as an IC, SOC or SIP; (ii) modules
(such as RF front-end modules) containing one or more SOCs or ICs connected
with other active or passive devices; and (iii) RF and higher frequency
(e.g., microwave and optical) devices and components such as oscillators,
mixers, amplifiers and 3-port devices, to the extent that such devices or
components are in the form of an IC, SOC or SIP.

 

The Parties
anticipate that future advances in technology will yield higher levels of
semiconductor device integration such that future instances of the devices
under test listed in the definitions of Agilent Primary Field and Agilent
Overlap Field might be considered to have evolved into an IC, SOC or SIP. For
the avoidance of doubt, the products listed in the Agilent Primary Field and
the Agilent Overlap Field will be deemed to be within the Agilent Overlap Field
and the Verigy Overlap Field to the extent that such future instances of
devices under test have so evolved.

 

“Verigy Patents”
means (a) the Transferred Patents, and (b) every other Patent other
than design patents, with a First Effective Filing Date prior to the first
anniversary of the Separation Date which is (i) owned by Verigy IP Sub or
any Verigy Affiliate as of or after the Separation Date, or for which (ii) Verigy
IP Sub or any Verigy Affiliate has the right as of or after the Separation Date
under such Patent to grant licenses to Agilent of the scope granted by Verigy
to Agilent in Article IV of this Agreement without the payment of
royalties or other consideration to any Third Parties (excluding employees of
Verigy or its Affiliates); provided however, that no Patent shall be considered
a Verigy Patent if it is a Verigy Restricted Patent.

 

“Verigy Primary
Field” means the design, development, research, manufacture, supply,
distribution, sale, support (including consulting and other services), and maintenance
of any Automated Semiconductor Test Systems.

 

“Verigy Products”
means all products and services of the businesses in which Verigy IP Sub or any
of its Affiliates is now or hereafter engaged, including the business of making
(but not having made) Third Party products for Third Parties when Verigy IP Sub
or any Verigy Affiliates is acting as a contract manufacturer or foundry for
such Third Parties. The term Verigy Products includes the Technology embodied
in and/or used to manufacture or deliver the products and services referred to
in the preceding sentence as well as marketing and other collateral materials
related thereto.

 

“Verigy Restricted
Patent” means any Patent under which Verigy IP Sub is restricted
from granting a license to Agilent pursuant to an agreement with a Third Party.

 

 

EXHIBIT B

FORM OF INTELLECTUAL PROPERTY RIGHTS ASSIGNMENT

 

THIS INTELLECTUAL PROPERTY ASSIGNMENT (this “Assignment”)
is effective as of the    day
of            2006
(“Effective Date”), between Agilent Technologies, Inc. a corporation
incorporated under the laws of Delaware (“Assignor”), and Verigy (Singapore)
Pte. Ltd., a corporation organized under the laws of Singapore (“Assignee”).

 

WHEREAS, pursuant to the Intellectual Property Matters
Agreement dated as of June 1, 2006 between Assignor, Verigy Ltd. and
Assignee (the “IP Matters Agreement”), Assignor agreed to assign or cause to be
assigned to Assignee all of Assignor’s right, title and interest in and to
certain intellectual property rights.

 

NOW, THEREFORE, for good and valuable consideration
(including that recited in the Master Separation and Distribution Agreement),
it is hereby agreed by and between the parties as follows:

 

Capitalized terms used in this Assignment which are
not otherwise defined herein shall have the meanings set forth in the IP
Matters Agreement.

 

1.                                       For purposes of this Assignment, “Assigned
Intellectual Property” shall mean and include all of Assignor’s right, title,
and interest in and to the Transferred Intellectual Property Rights as those
terms are defined in the IP Matters Agreement.

 

2.                                       Assignor hereby grants, conveys and
assigns to Assignee, by execution hereof, the Assigned Intellectual Property,
including without limitation (a) the Patents listed on Schedule A hereto (the “Assigned
Patents”), (b) the Trademarks listed on Schedule B
hereto, (the “Assigned Trademarks”) together with the goodwill appurtenant
thereto, (c) the Copyrights listed on Schedule C
hereto (the “Assigned Copyrights”)], and the Internet Properties listed on Schedule D hereto (the “Assigned Internet Properties”) together
with the goodwill appurtenant thereto, including any and all rights, priorities
and privileges of Assignor provided under United States, state or foreign law,
or multinational law, compact, treaty, protocol convention or organization,
with respect to the foregoing (“Related Rights”).

 

3.                                       Assignor further grants, conveys and
assigns to Assignee all its right, title and interest in and to any and all
proceeds, causes of action and rights of recovery for past and future
infringement or misappropriation of any of the Assigned Intellectual Property.

 

4.                                       Assignor further grants, conveys and
assigns to Assignee all its right, title and interest in and to any and all
rights of Assignor to obtain reissues, re-examinations, continuations,
continuations-in-part, divisions, extensions or other legal protections arising
solely from the Assigned Patents and Related Rights that are or may be
secured in any relevant jurisdiction anywhere in the world, including (but not
limited to) the United States, its territories and possessions, now or
hereinafter in effect.

 

5.                                       The Assigned Intellectual Property is
conveyed subject to any and all licenses, permissions, consents or other rights
that may have been granted by Assignor or its predecessors-in-interest
with respect thereto prior to the Effective Date.

 

6.                                       This Agreement may be executed in
counterparts, each of which will be deemed an original, but all of which
together constitute one and the same original.

 

[SIGNATURE PAGE FOLLOWS]

 

 

IN
WITNESS WHEREOF, the undersigned has caused this Assignment to be duly executed
and delivered as of the date above first written. 

 

	
   

  	
  AGILENT
  TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  VERIGY
  (SINGAPORE) PTE. LTD.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
  Title:

  

 

 

EXHIBIT C

Schedule of Transferred Patents

 

The Transferred Patents, subject to the terms and
conditions of this Agreement, are shown in the following list in which all
Patents are considered to be Transferred Business Patents unless identified as
Transferred Additional Patents:

 

1:                                       Transferred Business
Patents (by
Patent Family Case Number):    

 

	
  287007

  	
   

  	
  490092

  	
   

  	
  10004438

  	
   

  	
  10030774

  	
   

  	
  10050352

  	
   

  	
  10051513

  	
   

  	
  20041213

  	
   

  
	
  291005

  	
   

  	
  490096

  	
   

  	
  10004439

  	
   

  	
  10030775

  	
   

  	
  10050394

  	
   

  	
  10051664

  	
   

  	
  20041534

  	
   

  
	
  291011

  	
   

  	
  490112

  	
   

  	
  10010119

  	
   

  	
  10030795

  	
   

  	
  10050395

  	
   

  	
  10051699

  	
   

  	
  20050071

  	
   

  
	
  291012

  	
   

  	
  490116

  	
   

  	
  10010276

  	
   

  	
  10030883

  	
   

  	
  10050488

  	
   

  	
  10051735

  	
   

  	
  20050223

  	
   

  
	
  485030

  	
   

  	
  490123

  	
   

  	
  10010649

  	
   

  	
  10040433

  	
   

  	
  10050536

  	
   

  	
  10060003

  	
   

  	
  20050574

  	
   

  
	
  485036

  	
   

  	
  491012

  	
   

  	
  10010752

  	
   

  	
  10040434

  	
   

  	
  10050718

  	
   

  	
  10060083

  	
   

  	
  20050678

  	
   

  
	
  486042

  	
   

  	
  491026

  	
   

  	
  10010958

  	
   

  	
  10040435

  	
   

  	
  10050729

  	
   

  	
  10060084

  	
   

  	
  20050762

  	
   

  
	
  486050

  	
   

  	
  1094536

  	
   

  	
  10011044

  	
   

  	
  10040458

  	
   

  	
  10050947

  	
   

  	
  10970153

  	
   

  	
  20051003

  	
   

  
	
  486053

  	
   

  	
  2092021

  	
   

  	
  10020017

  	
   

  	
  10040460

  	
   

  	
  10051055

  	
   

  	
  10992699

  	
   

  	
  20060007

  	
   

  
	
  487009

  	
   

  	
  2093010

  	
   

  	
  10020021

  	
   

  	
  10040461

  	
   

  	
  10051098

  	
   

  	
  20003638

  	
   

  	
  20060009

  	
   

  
	
  487010

  	
   

  	
  2093011

  	
   

  	
  10020588

  	
   

  	
  10040493

  	
   

  	
  10051120

  	
   

  	
  20004200

  	
   

  	
  20060052

  	
   

  
	
  487028

  	
   

  	
  4092004

  	
   

  	
  10020589

  	
   

  	
  10040603

  	
   

  	
  10051179

  	
   

  	
  20010150

  	
   

  	
  20960008

  	
   

  
	
  487053

  	
   

  	
  4092008

  	
   

  	
  10020808

  	
   

  	
  10040666

  	
   

  	
  10051239

  	
   

  	
  20010626

  	
   

  	
  20970009

  	
   

  
	
  487061

  	
   

  	
  4093006

  	
   

  	
  10020953

  	
   

  	
  10040667

  	
   

  	
  10051387

  	
   

  	
  20010628

  	
   

  	
  20970015

  	
   

  
	
  487062

  	
   

  	
  4093008

  	
   

  	
  10020971

  	
   

  	
  10040669

  	
   

  	
  10051388

  	
   

  	
  20010886

  	
   

  	
  20970017

  	
   

  
	
  487073

  	
   

  	
  4093017

  	
   

  	
  10030540

  	
   

  	
  10040690

  	
   

  	
  10051406

  	
   

  	
  20011157

  	
   

  	
  20970018

  	
   

  
	
  488002

  	
   

  	
  4094003

  	
   

  	
  10030549

  	
   

  	
  10040750

  	
   

  	
  10051408

  	
   

  	
  20011158

  	
   

  	
  20970019

  	
   

  
	
  488028

  	
   

  	
  8533123

  	
   

  	
  10030550

  	
   

  	
  10040765

  	
   

  	
  10051449

  	
   

  	
  20011159

  	
   

  	
  20990007

  	
   

  
	
  488035

  	
   

  	
  8533143

  	
   

  	
  10030552

  	
   

  	
  10040777

  	
   

  	
  10051477

  	
   

  	
  20020379

  	
   

  	
  20990009

  	
   

  
	
  488039

  	
   

  	
  10001846

  	
   

  	
  10030556

  	
   

  	
  10030895

  	
   

  	
  10051478

  	
   

  	
  20020527

  	
   

  	
  40010194

  	
   

  
	
  488042

  	
   

  	
  10002349

  	
   

  	
  10030557

  	
   

  	
  10031127

  	
   

  	
  10051479

  	
   

  	
  20020841

  	
   

  	
  40011111

  	
   

  
	
  488048

  	
   

  	
  10002353

  	
   

  	
  10030558

  	
   

  	
  10031207

  	
   

  	
  10051480

  	
   

  	
  20020950

  	
   

  	
  40030648

  	
   

  
	
  488052

  	
   

  	
  10003728

  	
   

  	
  10030559

  	
   

  	
  10031350

  	
   

  	
  10051481

  	
   

  	
  20020951

  	
   

  	
  40031062

  	
   

  
	
  489003

  	
   

  	
  10003737

  	
   

  	
  10030560

  	
   

  	
  10031559

  	
   

  	
  10051482

  	
   

  	
  20020952

  	
   

  	
  40031254

  	
   

  
	
  489032

  	
   

  	
  10003739

  	
   

  	
  10030573

  	
   

  	
  10040204

  	
   

  	
  10051483

  	
   

  	
  20030499

  	
   

  	
  40050930

  	
   

  
	
  489056

  	
   

  	
  10003742

  	
   

  	
  10030574

  	
   

  	
  10040205

  	
   

  	
  10051484

  	
   

  	
  20030580

  	
   

  	
  40051060

  	
   

  
	
  489068

  	
   

  	
  10003744

  	
   

  	
  10030577

  	
   

  	
  10040236

  	
   

  	
  10051485

  	
   

  	
  20030876

  	
   

  	
  40960006

  	
   

  
	
  489072

  	
   

  	
  10003745

  	
   

  	
  10030578

  	
   

  	
  10040870

  	
   

  	
  10051486

  	
   

  	
  20030877

  	
   

  	
  40960009

  	
   

  
	
  490014

  	
   

  	
  10003747

  	
   

  	
  10030584

  	
   

  	
  10041535

  	
   

  	
  10051487

  	
   

  	
  20031103

  	
   

  	
  40960010

  	
   

  
	
  490017

  	
   

  	
  10003748

  	
   

  	
  10030585

  	
   

  	
  10041580

  	
   

  	
  10051488

  	
   

  	
  20031115

  	
   

  	
  40980008

  	
   

  
	
  490019

  	
   

  	
  10003749

  	
   

  	
  10030586

  	
   

  	
  10050009

  	
   

  	
  10051489

  	
   

  	
  20031116

  	
   

  	
   

  	
   

  
	
  490022

  	
   

  	
  10003750

  	
   

  	
  10030595

  	
   

  	
  10050149

  	
   

  	
  10051490

  	
   

  	
  20031300

  	
   

  	
   

  	
   

  
	
  490056

  	
   

  	
  10004144

  	
   

  	
  10030596

  	
   

  	
  10050173

  	
   

  	
  10051491

  	
   

  	
  20040196

  	
   

  	
   

  	
   

  
	
  490063

  	
   

  	
  10004145

  	
   

  	
  10030597

  	
   

  	
  10050175

  	
   

  	
  10051492

  	
   

  	
  20040752

  	
   

  	
   

  	
   

  
	
  490068

  	
   

  	
  10004177

  	
   

  	
  10030694

  	
   

  	
  10050243

  	
   

  	
  10051493

  	
   

  	
  20041009

  	
   

  	
   

  	
   

  
	
  490090

  	
   

  	
  10004178

  	
   

  	
  10030713

  	
   

  	
  10050351

  	
   

  	
  10051494

  	
   

  	
  20041101

  	
   

  	
   

  	
   

  

 

 

2:                                       Transferred Additional
Patents (by
Patent Family Case Number):    

 

	
  188113

  	
   

  	
  10003858

  	
   

  	
  10040742

  	
   

  	
  10060047

  	
   

  	
  20031189

  	
   

  	
  40001003

  	
   

  	
  40040835

  	
   

  
	
  190380

  	
   

  	
  10004311

  	
   

  	
  10040743

  	
   

  	
  10060048

  	
   

  	
  20031190

  	
   

  	
  40003983

  	
   

  	
  40041053

  	
   

  
	
  191101

  	
   

  	
  10010267

  	
   

  	
  10040794

  	
   

  	
  10060095

  	
   

  	
  20050069

  	
   

  	
  40004012

  	
   

  	
  40041250

  	
   

  
	
  191152

  	
   

  	
  10010805

  	
   

  	
  10041284

  	
   

  	
  10960767

  	
   

  	
  20051305

  	
   

  	
  40010321

  	
   

  	
  40051009

  	
   

  
	
  191153

  	
   

  	
  10010849

  	
   

  	
  10050001

  	
   

  	
  10991135

  	
   

  	
  20051663

  	
   

  	
  40010347

  	
   

  	
  40051451

  	
   

  
	
  191171

  	
   

  	
  10011250

  	
   

  	
  10050002

  	
   

  	
  20010631

  	
   

  	
  20950020

  	
   

  	
  40010348

  	
   

  	
  40051452

  	
   

  
	
  287008

  	
   

  	
  10020181

  	
   

  	
  10050193

  	
   

  	
  20010831

  	
   

  	
  20970010

  	
   

  	
  40010813

  	
   

  	
  40980013

  	
   

  
	
  486047

  	
   

  	
  10020530

  	
   

  	
  10050454

  	
   

  	
  20020126

  	
   

  	
  20970013

  	
   

  	
  40020450

  	
   

  	
  40990010

  	
   

  
	
  488043

  	
   

  	
  10020583

  	
   

  	
  10050559

  	
   

  	
  20020377

  	
   

  	
  40030647

  	
   

  	
  40020768

  	
   

  	
  40990011

  	
   

  
	
  489073

  	
   

  	
  10020972

  	
   

  	
  10050561

  	
   

  	
  20020709

  	
   

  	
  40030939

  	
   

  	
  40021019

  	
   

  	
   

  	
   

  
	
  490064

  	
   

  	
  10030572

  	
   

  	
  10051011

  	
   

  	
  20020799

  	
   

  	
  20970023

  	
   

  	
  40030044

  	
   

  	
   

  	
   

  
	
  490108

  	
   

  	
  10030760

  	
   

  	
  10051407

  	
   

  	
  20021052

  	
   

  	
  20970033

  	
   

  	
  40030646

  	
   

  	
   

  	
   

  
	
  8533135

  	
   

  	
  10040671

  	
   

  	
  10051608

  	
   

  	
  20021093

  	
   

  	
  20980001

  	
   

  	
  40031021

  	
   

  	
   

  	
   

  
	
  10001121

  	
   

  	
  10040689

  	
   

  	
  10051609

  	
   

  	
  20031182

  	
   

  	
  20990004

  	
   

  	
  40031251

  	
   

  	
   

  	
   

  

 

 

EXHIBIT D 

Schedule of Transferred Intellectual Property Rights

 

The Transferred Intellectual Property Rights, subject
to the terms and conditions of this Agreement, are:

 

1.                                       Copyrights.   Those Copyrights in and to
the Business Technology, whether registered or unregistered, that are owned by
Agilent or by an Agilent Subsidiary as of the Separation Date and are
exclusively used in the Business, specifically including the Copyrights (if
any) shown in the following list:

 

2.                                       Mask Work Rights.   Those Mask Work Rights in and
to the Business Technology, whether registered or unregistered, that are owned
by Agilent or by an Agilent Subsidiary as of the Separation Date and are
exclusively used in the Business, specifically including the Mask Work Rights
(if any) shown in the following list:

 

3.                                       Database Rights.   Those Database Rights in and
to the Business Technology that are owned by Agilent or by an Agilent
Subsidiary as of the Separation Date and are exclusively used in the Business,
specifically including the Database Rights (if any) shown in the following
list:

 

4.                                       Trade Secrets.   Those Trade Secrets in and to
the Business Technology that are owned by Agilent or by an Agilent Subsidiary
as of the Separation Date and are exclusively used by Verigy in the Business,
specifically including the Trade Secrets (if any) shown in the following list:

 

 

5.                                       Trademarks.   The Trademarks shown in the
following list: 

 

	
   

  	
   

  	
  MARK

  	
   

  	
  Country

  	
   

  	
  STATUS

  	
   

  	
  APP NO.

  	
   

  	
  REG. NO.

  	
   

  	
  REG. DATE

  
	
   

  	
   

  	
  VERIGY

  	
   

  	
  Germany

  	
   

  	
  Pending

  	
   

  	
  30576136.6—Filed
  12/22/05

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  VERIGY

  	
   

  	
  Taiwan

  	
   

  	
  Pending

  	
   

  	
  94061907—Filed
  12/22/05

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  Verigy
  Logo

  	
   

  	
  Germany

  	
   

  	
  Pending

  	
   

  	
  30576131.5—Filed
  12/22/05

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  Verigy
  Logo

  	
   

  	
  Taiwan

  	
   

  	
  Pending

  	
   

  	
  94061662—Filed
  12/22/05

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SITEMATCH

  	
   

  	
  China

  	
   

  	
  Registered

  	
   

  	
  980005175

  	
   

  	
  1396345

  	
   

  	
  5/14/00

  
	
   

  	
   

  	
  SITEMATCH

  	
   

  	
  China

  	
   

  	
  Registered

  	
   

  	
  980005176

  	
   

  	
  1362926

  	
   

  	
  2/14/00

  
	
   

  	
   

  	
  SITEMATCH

  	
   

  	
  China

  	
   

  	
  Registered

  	
   

  	
  9800095174

  	
   

  	
  1362461

  	
   

  	
  2/7/00

  
	
   

  	
   

  	
  SITEMATCH

  	
   

  	
  EU

  	
   

  	
  Registered

  	
   

  	
  905893

  	
   

  	
  905893

  	
   

  	
  3/30/00

  
	
   

  	
   

  	
  SITEMATCH

  	
   

  	
  Japan

  	
   

  	
  Registered

  	
   

  	
  H10-70,486

  	
   

  	
  4436856

  	
   

  	
  12/1/00

  
	
   

  	
   

  	
  SITEMATCH

  	
   

  	
  Korea

  	
   

  	
  Registered

  	
   

  	
  1998-22889

  	
   

  	
  454835

  	
   

  	
  9/14/09

  
	
   

  	
   

  	
  SITEMATCH

  	
   

  	
  Korea

  	
   

  	
  Registered

  	
   

  	
  1998-22891

  	
   

  	
  462078

  	
   

  	
  12/29/09

  
	
   

  	
   

  	
  SITEMATCH

  	
   

  	
  Korea

  	
   

  	
  Registered

  	
   

  	
  1998-7132

  	
   

  	
  58157

  	
   

  	
  12/2/09

  
	
   

  	
   

  	
  SITEMATCH

  	
   

  	
  Singapore

  	
   

  	
  Registered

  	
   

  	
  98/03586-1

  	
   

  	
  T98/08605A

  	
   

  	
  8/25/98

  
	
   

  	
   

  	
  SITEMATCH

  	
   

  	
  Singapore

  	
   

  	
  Registered

  	
   

  	
  T98/08606Z

  	
   

  	
  T98/08606Z

  	
   

  	
  8/25/98

  
	
   

  	
   

  	
  SITEMATCH

  	
   

  	
  Singapore

  	
   

  	
  Registered

  	
   

  	
  T98/08607H

  	
   

  	
  T98/08607H

  	
   

  	
  8/25/08

  
	
   

  	
   

  	
  SITEMATCH

  	
   

  	
  Taiwan

  	
   

  	
  Registered

  	
   

  	
  (87)041266

  	
   

  	
  885013

  	
   

  	
  3/16/00

  
	
   

  	
   

  	
  SITEMATCH

  	
   

  	
  Taiwan

  	
   

  	
  Registered

  	
   

  	
  (87)041267

  	
   

  	
  869835

  	
   

  	
  10/1/99

  
	
   

  	
   

  	
  SITEMATCH

  	
   

  	
  Taiwan

  	
   

  	
  Registered

  	
   

  	
  (87)041268

  	
   

  	
  121169

  	
   

  	
  2/1/00

  
	
   

  	
   

  	
  SMARTEST

  	
   

  	
  Benelux

  	
   

  	
  Registered

  	
   

  	
  822386

  	
   

  	
  545683

  	
   

  	
  2/18/1994

  
	
   

  	
   

  	
  SMARTEST

  	
   

  	
  France

  	
   

  	
  Registered

  	
   

  	
  94507352

  	
   

  	
  94507352

  	
   

  	
  2/21/1994

  
	
   

  	
   

  	
  SMARTEST

  	
   

  	
  Italy

  	
   

  	
  Registered

  	
   

  	
  RM94C000689

  	
   

  	
  686878

  	
   

  	
  9/18/1996

  
	
   

  	
   

  	
  SMARTEST

  	
   

  	
  Spain

  	
   

  	
  Registered

  	
   

  	
  1806169

  	
   

  	
  1806169

  	
   

  	
  6/3/1996

  
	
   

  	
   

  	
  SMARTEST

  	
   

  	
  Sweden

  	
   

  	
  Registered

  	
   

  	
  94-01822

  	
   

  	
  302466

  	
   

  	
  6/2/1995

  
	
   

  	
   

  	
  SMARTEST

  	
   

  	
  UK

  	
   

  	
  Registered

  	
   

  	
  1562712

  	
   

  	
  1562712

  	
   

  	
  2/17/1994

  
	
   

  	
   

  	
  TESTER-PER-SITE

  	
   

  	
  US

  	
   

  	
  Registered

  	
   

  	
  74/248872
  74/246133

  	
   

  	
  1,723,509
  2,188,950

  	
   

  	
  10/13/1992
  9/15/1998

  
	
   

  	
   

  	
  VERSATEST

  	
   

  	
  US

  	
   

  	
  Registered

  	
   

  	
  74/263230
  75/246478

  	
   

  	
  1,742,910
  2,137,261

  	
   

  	
  12/29/1992
  2/17/1998

  
	
   

  	
   

  	
  VERSATEST

  	
   

  	
  China

  	
   

  	
  Registered

  	
   

  	
  3460149

  	
   

  	
  3460149

  	
   

  	
  7/14/2004

  
	
   

  	
   

  	
  VERSATEST

  	
   

  	
  Europe

  	
   

  	
  Registered

  	
   

  	
  003023926

  	
   

  	
  003023926

  	
   

  	
  1/17/2005

  
	
   

  	
   

  	
  VERSATEST

  	
   

  	
  Japan

  	
   

  	
  Registered

  	
   

  	
  2003-019574

  	
   

  	
  4710048

  	
   

  	
  9/12/2003

  
	
   

  	
   

  	
  VERSATEST

  	
   

  	
  Korea

  	
   

  	
  Registered

  	
   

  	
  2003-0005098

  	
   

  	
  577123

  	
   

  	
  3/11/2004

  
	
   

  	
   

  	
  VERSATEST

  	
   

  	
  Taiwan

  	
   

  	
  Registered

  	
   

  	
  92007270

  	
   

  	
  1085365

  	
   

  	
  2/16/2004

  
	
  Common
  Law

  	
   

  	
  93000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Pin
  Scale 800

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Pin
  Scale 3600

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

6.                                       Internet Properties.   The Internet Properties shown
in the following list: 

 

	
  Domain
  Names

  	
   

  	
  www.cadbucks.com

  
	
   

  	
   

  	
  www.mvtusa.com

  
	
   

  	
   

  	
  www.verigy.com

  
	
   

  	
   

  	
  www.verigy.org

  
	
   

  	
   

  	
  www.verigy.net

  
	
   

  	
   

  	
  www.verigy.co.in

  
	
   

  	
   

  	
  www.verigy.in

  
	
   

  	
   

  	
  www.verigy.tw

  
	
   

  	
   

  	
  www.verigy.com.tw

  
	
   

  	
   

  	
  www.verigy.co.uk

  
	
   

  	
   

  	
  www.verigy.us

  

 

 

EXHIBIT E 

Schedule of Business Technology

 

Business
Technology:

 

•                  All Technology used in designing, developing,
manufacturing, selling or supporting the Verigy Products as they exist as of
the Separation Date;

 

•                  All Technology used in the conduct of the
Business as of the Separation Date.

 

 

EXHIBIT F 

Transferred Licenses

 

The
agreements between Agilent, or an Agilent Subsidiary, and a Third Party as
shown in the following list:

 

 

	
  Exhibit 10.68

  
	
   

  
	
  INTELLECTUAL
  PROPERTY MATTERS AGREEMENT

  
	
  W
  I T N E S S E T H

  
	
  ARTICLE I
  DEFINITIONS AND RULES OF CONSTRUCTION

  
	
  ARTICLE II
  TRANSFERRED INTELLECTUAL PROPERTY RIGHTS AND TECHNOLOGY

  
	
  ARTICLE III
  LICENSES TO VERIGY

  
	
  ARTICLE IV
  LICENSES TO AGILENT

  
	
  ARTICLE V
  ADDITIONAL INTELLECTUAL PROPERTY RELATED MATTERS

  
	
  ARTICLE VI
  CONFIDENTIAL INFORMATION

  
	
  ARTICLE VII
  LIMITATION OF LIABILITY & WARRANTY DISCLAIMER

  
	
  ARTICLE VIII
  TRANSFERABILITY AND ASSIGNMENT

  
	
  ARTICLE IX
  COMPETITIVE RESTRICTIONS

  
	
  ARTICLE X
  MISCELLANEOUS

  
	
  EXHIBIT A

  
	
  EXHIBIT B
  FORM OF INTELLECTUAL PROPERTY RIGHTS ASSIGNMENT

  
	
  EXHIBIT C
  Schedule of Transferred Patents

  
	
  EXHIBIT D
  Schedule of Transferred Intellectual Property Rights

  
	
  EXHIBIT E
  Schedule of Business Technology

  
	
  EXHIBIT F
  Transferred LicensesExhibit 10.69

 

EMPLOYEE
MATTERS AGREEMENT 

 

between 

 

AGILENT
TECHNOLOGIES, INC. 

 

and 

 

VERIGY LTD.

 

Dated as of
June 1, 2006

 

 

Table of
Contents 

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I—DEFINITIONS AND
  RULES OF CONSTRUCTION

  	
  1

  
	
   

  	
   

  
	
  1.1

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.2

  	
  Rules of
  Construction

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II—GENERAL
  PRINCIPLES

  	
  2

  
	
   

  	
   

  
	
  2.1

  	
  Transfer
  of Employees to Verigy

  	
  2

  
	
   

  	
   

  	
   

  
	
  2.2

  	
  Assumption
  of Liabilities by Verigy

  	
  2

  
	
   

  	
   

  	
   

  
	
  2.3

  	
  Establishment
  of Verigy Plans

  	
  2

  
	
   

  	
   

  	
   

  
	
  2.4

  	
  Verigy
  Under No Obligation to Maintain Plans

  	
  3

  
	
   

  	
   

  	
   

  
	
  2.5

  	
  Terms of
  Participation by Verigy Transferred Employees in Verigy Plans

  	
  3

  
	
   

  	
   

  	
   

  
	
  2.6

  	
  Non-United
  States Plans

  	
  3

  
	
   

  	
   

  	
   

  
	
  2.7

  	
  Certain
  Non-United States National Employees

  	
  3

  
	
   

  	
   

  	
   

  
	
  2.8

  	
  Non-United
  States Employees

  	
  4

  
	
   

  	
   

  	
   

  
	
  2.9

  	
  Certain
  Non-United States Employee Relations and Benefits

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE III—RETIREMENT
  PLANS

  	
  4

  
	
   

  	
   

  
	
  3.1

  	
  Agilent
  Retirement lan

  	
  4

  
	
   

  	
   

  	
   

  
	
  3.2

  	
  Agilent
  Deferred Profit Sharing Plan

  	
  5

  
	
   

  	
   

  	
   

  
	
  3.3

  	
  Agilent
  401(k) Plan

  	
  5

  
	
   

  	
   

  	
   

  
	
  3.4

  	
  Governing
  Principles for the Non-United States Retirement Benefits

  	
  5

  
	
   

  	
   

  	
   

  
	
  3.5

  	
  Non-United
  States Pension Plans

  	
  6

  
	
   

  	
   

  	
   

  
	
  3.6

  	
  Verigy’s
  Non-United States Retirement Benefit Plans

  	
  7

  
	
   

  	
   

  	
   

  
	
  3.7

  	
  Non-United
  States Retirement Benefits to be Provided by Verigy Include Past Service

  	
  8

  
	
   

  	
   

  	
   

  
	
  3.8

  	
  Undertakings
  by Verigy

  	
  9

  
	
   

  	
   

  	
   

  
	
  3.9

  	
  Claims
  in Relation to Non-United States Retirement Benefits

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV—NON-QUALIFIED
  AND OTHER PLANS

  	
  10

  
	
   

  	
   

  
	
  4.1

  	
  Excess
  Retirement Benefit Plan

  	
  10

  
	
   

  	
   

  	
   

  
	
  4.2

  	
  Deferred
  Compensation Plan

  	
  10

  
	
   

  	
   

  	
   

  
	
  4.3

  	
  2005
  Deferred Compensation Plan

  	
  10

  
	
   

  	
   

  	
   

  
	
  4.4

  	
  International
  Relocation Benefit Plan

  	
  11

  
	
   

  	
   

  	
   

  
	
  4.5

  	
  Guaranteed
  Relocation Subsidies

  	
  11

  
	
   

  	
   

  	
   

  
	
  4.6

  	
  Establishment
  of Verigy TFR Plan in Italy

  	
  11

  
				

 

i

 

	
  ARTICLE V—HEALTH AND
  WELFARE PLANS

  	
  11

  
	
   

  	
   

  
	
  5.1

  	
  Health,
  Dental and Vision Plans

  	
  11

  
	
   

  	
   

  	
   

  
	
  5.2

  	
  Group
  Universal Life and Group Long Term Care Insurance Plans

  	
  12

  
	
   

  	
   

  	
   

  
	
  5.3

  	
  Retiree
  Medical Plans

  	
  12

  
	
   

  	
   

  	
   

  
	
  5.4

  	
  Flexible
  Spending Account Plans

  	
  12

  
	
   

  	
   

  	
   

  
	
  5.5

  	
  Business
  Travel Accident Insurance Plan

  	
  12

  
	
   

  	
   

  	
   

  
	
  5.6

  	
  COBRA

  	
  13

  
	
   

  	
   

  	
   

  
	
  5.7

  	
  Leave of
  Absence Programs and FMLA

  	
  13

  
	
   

  	
   

  	
   

  
	
  5.8

  	
  Workers’
  Compensation Program

  	
  13

  
	
   

  	
   

  	
   

  
	
  5.9

  	
  Non-United
  States Health and Welfare Plans

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI—EQUITY AND
  OTHER COMPENSATION

  	
  14

  
	
   

  	
   

  
	
  6.1

  	
  Agilent
  Options

  	
  14

  
	
   

  	
   

  	
   

  
	
  6.2

  	
  Verigy
  Options—Initial Grants

  	
  14

  
	
   

  	
   

  	
   

  
	
  6.3

  	
  Agilent
  Restricted Stock

  	
  15

  
	
   

  	
   

  	
   

  
	
  6.4

  	
  Employee
  Stock Purchase Plan

  	
  15

  
	
   

  	
   

  	
   

  
	
  6.5

  	
  Variable
  Pay Plan

  	
  15

  
	
   

  	
   

  	
   

  
	
  6.6

  	
  Service
  Award Program

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII—FRINGE AND
  OTHER BENEFITS

  	
  15

  
	
   

  	
   

  
	
  7.1

  	
  Employee
  Assistance Program

  	
  15

  
	
   

  	
   

  	
   

  
	
  7.2

  	
  Educational
  Assistance Program

  	
  15

  
	
   

  	
   

  	
   

  
	
  7.3

  	
  Adoption
  Assistance Program

  	
  15

  
	
   

  	
   

  	
   

  
	
  7.4

  	
  Credit
  Union

  	
  16

  
	
   

  	
   

  	
   

  
	
  7.5

  	
  Other
  Fringe Benefits

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII—ADMINISTRATIVE PROVISIONS

  	
  16

  
	
   

  	
   

  
	
  8.1

  	
  Beneficiary
  Designations

  	
  16

  
	
   

  	
   

  	
   

  
	
  8.2

  	
  Requests
  for IRS Opinions

  	
  16

  
	
   

  	
   

  	
   

  
	
  8.3

  	
  Fiduciary
  Matters

  	
  16

  
	
   

  	
   

  	
   

  
	
  8.4

  	
  Consent
  of Third Parties

  	
  16

  
	
   

  	
   

  	
   

  
	
  8.5

  	
  World
  Wide Web

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IX—EMPLOYMENT-RELATED MATTERS

  	
  17

  
	
   

  	
   

  
	
  9.1

  	
  HR Data
  Support Systems

  	
  17

  
	
   

  	
   

  	
   

  
	
  9.2

  	
  Confidentiality
  and Proprietary Information

  	
  17

  
	
   

  	
   

  	
   

  
	
  9.3

  	
  FTO
  Policy

  	
  17

  

 

ii

 

	
  9.4

  	
  Accrued
  Payroll, Bonuses, Variable Pay and Commissions

  	
  18

  
	
   

  	
   

  	
   

  
	
  9.5

  	
  Payroll
  and Withholding

  	
  18

  
	
   

  	
   

  	
   

  
	
  9.6

  	
  Personnel
  and Pay Records

  	
  18

  
	
   

  	
   

  	
   

  
	
  9.7

  	
  Unemployment
  Insurance Program

  	
  19

  
	
   

  	
   

  	
   

  
	
  9.8

  	
  Employment
  Litigation

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE X—MISCELLANEOUS

  	
  19

  
	
   

  	
   

  
	
  10.1

  	
  Effect
  if Payroll, Transfer, IPO and/or Distribution Does Not Occur

  	
  19

  
	
   

  	
   

  	
   

  
	
  10.2

  	
  Relationship
  of Parties

  	
  20

  
	
   

  	
   

  	
   

  
	
  10.3

  	
  Affiliates

  	
  20

  
	
   

  	
   

  	
   

  
	
  10.4

  	
  Entire
  Agreement

  	
  20

  
	
   

  	
   

  	
   

  
	
  10.5

  	
  Cooperation

  	
  20

  
	
   

  	
   

  	
   

  
	
  10.6

  	
  Third
  Party Beneficiaries

  	
  20

  
	
   

  	
   

  	
   

  
	
  10.7

  	
  Non-Solicitation

  	
  20

  
	
   

  	
   

  	
   

  
	
  10.8

  	
  Breaches,
  Indemnification and Termination

  	
  21

  
	
   

  	
   

  	
   

  
	
  10.9

  	
  Conflict

  	
  21

  

 

iii

 

EMPLOYEE
MATTERS AGREEMENT

 

THIS EMPLOYEE MATTERS
AGREEMENT (the “Agreement”), is
dated as of June 1, 2006, by and between Agilent Technologies, Inc.,
a Delaware corporation (“Agilent”),
and Verigy Ltd., a company organized under the laws of Singapore (together
with its successors and assigns, “Verigy”)
(each, a “Party” and,
collectively, the “Parties”).

 

W I T N E S S E T H:

 

WHEREAS, the Parties have entered into a Master
Separation and Distribution Agreement dated as of May 31, 2006 (the “Master Separation Agreement”) providing
for, among other things, the transfer substantially all of the business and
assets of the Business (as defined in the Master Separation Agreement) from
Agilent and certain of its Affiliates to Verigy and certain of its Affiliates;

 

WHEREAS, certain individuals who work in or are
assigned to the Business and are directly employed by Agilent or its Affiliates
shall become employees of Verigy or its Affiliates pursuant to this Agreement
or by operation of applicable Law;

 

WHEREAS, the Parties hereto wish to set forth their
agreement as to certain matters regarding the treatment of, and the
compensation and employee benefits provided to, those former employees of
Agilent or its Affiliates who become employees of Verigy or its Affiliates as
described above, pursuant to the terms of this Agreement or by operation of
applicable Law; and

 

WHEREAS, the non-United States Affiliates of Agilent
and Verigy, as applicable, have or will enter into separate Local Asset
Transfer Agreements that may, among other items, specify the terms under which
Verigy and Agilent agree to allocate between them all assets, Liabilities, and
responsibilities under, relating to, or arising from Non-United States Plans
and certain employment matters.

 

NOW,
THEREFORE, in
consideration of the foregoing and the mutual covenants and agreements set
forth below and in the Master Separation Agreement and for other good and
valuable consideration, the receipt and adequacy of which is hereby
acknowledged, the Parties hereby agree as follows:

 

ARTICLE I

 

DEFINITIONS
AND RULES OF CONSTRUCTION

 

1.1    Definitions.

 

Unless otherwise provided
herein, capitalized terms used and not defined herein shall have the respective
meanings assigned to them in the Master Separation Agreement, the General
Assignment and Assumption Agreement entered into by the Parties, dated as of
June 1, 2006, the preceding portions of this Agreement or in Annex A.

 

1.2    Rules of Construction.

 

(a)   This
Agreement shall be construed without regard to any presumption or rule
requiring construction or interpretation against the Party drafting or causing
any instrument to be drafted.

 

(b)   The
words “hereof, “herein” and “hereunder” and words of similar import when used
in this Agreement will refer to this Agreement as a whole (including any
annexes, exhibits and schedules to this Agreement) and not to any particular
provision of this Agreement, and section and subsection references are to this
Agreement unless otherwise specified. The words “include”, “including”, or “includes”
when used herein shall be deemed in each case to be followed by the words “without
limitation” or words having similar import. The headings and table of contents
in this Agreement are included for convenience of reference only and will not
limit or otherwise affect the meaning or

 

1

 

interpretation of this Agreement. The meanings given
to terms defined herein will be equally applicable to both the singular and
plural forms of such terms.

 

ARTICLE II

 

GENERAL
PRINCIPLES

 

2.1    Transfer of Employees to
Verigy.

 

(a)   On the
Separation Date, Agilent shall transfer to Verigy (or the appropriate Verigy
Affiliate) any individual who is (i) either actively employed by, or on a
leave of absence not otherwise described in Section 2.1(c) below from, the
Business on the Separation Date, except for those employees specifically
designated by Agilent (as agreed to by Verigy, which agreement shall not be
unreasonably withheld) to transfer to Verigy after the Separation Date (“Hold-back
Verigy Employees”) or (ii) any other individual designated by Agilent (and
agreed to by Verigy, which agreement shall not be unreasonably withheld).

 

(b)   From
time to time between the Separation Date and the Distribution Date, Agilent
shall transfer to Verigy (or the appropriate Verigy Affiliate) (i) any
individual who is actively employed by, or on a leave of absence not otherwise
described in Section 2.1(c) below from the Agilent Group and who, at any
time after the Separation Date and before the Distribution Date, is designated
by Agilent (and agreed to by Verigy, which agreement shall not be unreasonably
withheld) to move to the employ of the Verigy Group from the Agilent Group and
(ii) any Hold-back Verigy Employees.

 

(c)   Agilent
shall transfer to Verigy (or the appropriate Verigy Affiliate) any individual
who was employed in the United States and on a paid or unpaid medical leave of
absence, short-term disability, California Paid Leave of Absence, FMLA leave or
military leave of absence from the Business on the Separation Date, if and when
such individual returns to active employment.

 

2.2    Assumption of Liabilities by
Verigy.

 

(a)   Except
as otherwise expressly provided in this Agreement, or as otherwise mutually
agreed upon by Agilent and Verigy from time to time, Verigy hereby assumes
and/or retains all Liabilities relating to all individuals who, as of Distribution
Date (or, if applicable, the date of transfer to Verigy pursuant to
Section 2.1(c)), are Verigy Transferred Employees or Verigy Employees (but
not Agilent Employees), to the extent such Liabilities relate to or result from
such individuals’ employment by Verigy or Agilent and its Affiliates, or any of
their respective predecessors, and, except as otherwise expressly provided in
this Agreement or any of the Ancillary Agreements, Verigy hereby waives any
rights to any assets related to such Liabilities. All of the Liabilities
assumed and/or retained by Verigy under this Agreement, either under this
Section 2.2 or under any other section of this Agreement, are referred to
as the “Assumed Transferred Employee
Liabilities.” Except as set forth herein, such assumption and/or
retention of the Assumed Transferred Employee Liabilities shall be effective as
of the Separation Date.

 

(b)   All
Liabilities that relate to individuals who are Verigy Transferred Employees or
other Verigy Employees and that are specifically assumed and/or retained by
Agilent and/or its Affiliates pursuant to the terms of this Agreement are
referred to as the “Excluded Transferred
Employee Liabilities.” The Assumed Transferred Employee Liabilities
shall exclude all Excluded Transferred Employee Liabilities.

 

2.3    Establishment of Verigy Plans.

 

Effective as of the
Separation Date or such other date as Agilent and Verigy may mutually agree,
Verigy shall adopt the Verigy Plans specified on Exhibit A hereto.

 

2

 

2.4    Verigy Under No Obligation to
Maintain Plans.

 

Except as specified
otherwise in this Agreement, nothing in this Agreement shall preclude Verigy,
at any time after the Separation Date, from amending, merging, modifying,
terminating, eliminating, reducing or otherwise altering, in any respect, any
Verigy Plan or any benefit under any Verigy Plan (to the extent permitted by
Applicable Local Law); provided, however, that no change to a Verigy Plan prior
to the Distribution Date may be announced or implemented without the prior
written consent of Agilent.

 

2.5    Terms of Participation by
Verigy Transferred Employees in Verigy Plans.

 

Verigy shall provide each
Verigy Transferred Employee or other Verigy Employee who is transferred to
Verigy in accordance with Section 2.1 hereof with full credit for all
purposes under the Verigy Plans, for (a) service with Agilent and its
Affiliates prior to the Agilent Participation Discontinuance Date, other than
for purposes of determining benefit accruals under any defined benefit plan
(except as otherwise provided in Sections 3.4-3.9 hereof), and (b) service
credited under the corresponding Agilent Plans for employment other than with
Agilent and its Affiliates; provided, however, that in no event shall Verigy be
required to provide any service or any other benefit-affecting credits to any
Verigy Transferred Employee or other Verigy Employee to the extent that the
provision of such credits would result in any duplication of benefits.

 

2.6    Non-United States Plans.

 

Agilent and Verigy each
authorize their non-United States Affiliates to enter into a separate Local
Asset Transfer Agreement with the counterpart of the other party. Agilent and
Verigy intend that the Local Asset Transfer Agreements will generally specify
the terms under which Agilent and Verigy agree to allocate between them all
assets, Liabilities and responsibilities under, relating to, or arising from
Non-United States Plans and certain employment matters. To the extent, however,
that any such Local Asset Transfer Agreement does not address a particular
principle or plan, then the intent of the parties relating to comparable United
States matters or issues as reflected in this Agreement shall govern (to the
extent permitted by Applicable Local Law). Notwithstanding the foregoing,
Agilent intends to retain the Liabilities under the Non-United States Plans for
all Verigy Employees as of the Separation Date expressly retained under the
terms of this Agreement, except to the extent such Liabilities are required
under Applicable Local Law or a Local Asset Transfer Agreement to be
transferred to and assumed by Verigy or a member of the Verigy Group.

 

2.7    Certain Non-United States
National Employees.

 

The Parties recognize that
certain of the Verigy Transferred Employees and possibly other Verigy Employees
are in nonimmigrant visa status or have applications for lawful permanent
residence pending with the relevant governmental authorities (the “Affected Non-United States National Employees”).
The Parties further recognize that new or amended petitions with respect to
such Affected Non-United States National Employees may be required in certain
of these cases, unless Verigy (or Verigy’s Affiliates, as the case may be), are
deemed the “successor-in-interest” to Agilent (as such term is used in
pronouncements by the United States Citizenship and Immigration Service (“USCIS”)) with respect to such Affected
Non-United States National Employees. Accordingly, Verigy hereby expressly
agrees to assume, and Agilent hereby assigns, all of the immigration-related
Liabilities of the Affected Non-United States National Employees (including,
without limitation, any obligations, Liabilities and undertakings arising from
or under attestations made in each certified and still effective Labor
Condition Application (“LCA”)
filed by Agilent with respect to any such Affected Non-United States National
Employees). The Parties each agree to take such actions as may reasonably be
requested at and following the Separation Date to document to the USCIS or such
other governmental agency, as the case may be, as may be necessary, the “successor-in-interest”
relationship with respect to any Affected Non-United States National Employees.

 

3

 

2.8    Non-United States Employees.    In
addition to Section 2.7 above as applicable to non-United States
employees, this Section 2.8 applies only to Non-United States Transferred
Employees.

 

(a)   This
Section 2.8 and Sections 3.4 through 3.9 shall contain covenants and
agreements of the Parties on and as of the Separation Date with respect to:

 

(i)    the
Non-United States Transferred Employees; and

 

(ii)   Non-United
States Plans listed in Exhibit B provided or covering such Non-United
States Transferred Employees.

 

(b)   Agilent
and Verigy and their respective Affiliates shall comply with all obligations
either under the Transfer Regulations or other Applicable Local Laws to notify
and/or consult with non-United States employees and / or employee representatives,
unions, work councils, or other employee representative bodies, if any, and
shall provide such information to the other Party as is required by that Party
to comply with its notification and/or consultation obligations. Agilent and
Verigy shall indemnify each other against all Losses resulting from any failure
of the other to notify and/or consult or to provide such information in a
timely manner.

 

2.9    Certain Non-United States
Employee Relations and Benefits.    Notwithstanding
anything herein to the contrary, the parties intend that there shall be
continuity of employment with respect to certain Business Employees as follows:

 

(a)   Non-United
States Transferred Employees who are Automatic Transferred Employees shall not
be terminated upon the Separation Date and the rights, powers, duties,
liabilities and obligations of Agilent or its relevant Affiliates to the
employees in respect of the material terms of employment with the employees in
force immediately before the Separation Date shall be transferred to Verigy or
its relevant Affiliates in accordance with Applicable Local Laws.

 

(b)   Verigy
or its Affiliates shall offer employment to each Non-United States Transferred
Employee who is not an Automatic Transferred Employee effective on the Separation
Date. Each such offer shall be at the same general location and on
substantially the same terms and conditions of employment in the aggregate as
those provided to such employees by Agilent or its Affiliates immediately prior
to the Separation Date (unless otherwise required by Applicable Local Law, in
which case such offer shall comply with Applicable Local Law) (the “Current
Employment Terms”). Notwithstanding anything to the contrary, all offers
pursuant to this Section 2.9(b) to employees in jurisdictions outside the
United States will be on such terms as are necessary to avoid giving rise to
any severance or similar Liabilities of Agilent and its Affiliates as a result
of any requirements of Applicable Local Law.

 

(c)   Verigy
shall assume and shall indemnify Agilent and its Affiliates against all
Liabilities and obligations to provide any severance or similar payments to any
Non-United States Transferred Employees who are entitled to severance or
similar payments under Applicable Local Law due to Verigy’s noncompliance with
this Section 2.9.

 

(d)   Verigy
shall give credit to Non-United States Transferred Employees for all service
with Agilent or its Affiliates and any of their legal predecessors, including
but not limited to Hewlett-Packard Company or its Affiliates.

 

ARTICLE III

 

RETIREMENT
PLANS

 

3.1    Agilent Retirement Plan.

 

(a)   Verigy
Transferred Employees and other Verigy Employees shall cease to accrue benefits
and to otherwise actively participate in the Agilent RP as of the applicable Agilent
Participation

 

4

 

Discontinuance Date. Verigy shall not assume any
Liabilities for benefits provided under the terms of the Agilent RP.

 

(b)   As soon
as practicable after the Distribution Date, Verigy Transferred Employees and
other Verigy Employees who are eligible to receive their vested accrued benefit
under the Agilent RP may elect to take such a distribution from such plan,
pursuant to the terms thereof.

 

3.2    Agilent Deferred Profit
Sharing Plan.

 

(a)   Verigy
Transferred Employees and other Verigy Employees shall cease to accrue benefits
and to otherwise actively participate in the Agilent Deferred Profit Sharing
Plan as of the applicable Agilent Participation Discontinuance Date. Verigy
shall not assume any Liabilities for benefits provided under the terms of the
Agilent Deferred Profit Sharing Plan.

 

(b)   As soon
as practicable after the Distribution Date, Verigy Transferred Employees and
other Verigy Employees who are eligible to receive their vested accrued benefit
under the Agilent Deferred Profit Sharing Plan may elect to take such a
distribution from such plan, pursuant to the terms thereof.

 

3.3    Agilent 401(k) Plan.

 

(a)   Verigy
Transferred Employees and other Verigy Employees shall cease active
participation in the Agilent 401(k) Plan as of the applicable Agilent
Participation Discontinuance Date. Effective as of the applicable Agilent
Participation Discontinuance Date, the Verigy Transferred Employees and other
Verigy Employees shall be eligible to commence participation in a qualified
defined contribution plan sponsored by Verigy (the “Verigy 401(k) Plan”), subject to the terms thereof. Any
service requirements contained in the Verigy 401(k) Plan with respect to
eligibility to participate generally or eligibility to share in any employer
contributions thereunder shall be substantially identical to such requirements
in the Agilent 401(k) Plan. The Verigy 401(k) Plan shall provide for an
employer matching contribution expressed as (A) a 100% match on each
participant’s pre-tax contributions to the plan (not to exceed 3% of the
participant’s eligible compensation) and (B) a 50% match on each
participant’s pre-tax contributions to the plan (not to exceed an additional 2%
of the participant’s eligible compensation) and a discretionary annual employer
profit sharing contribution based on the profitability of Verigy with respect
to that year.

 

(b)   As soon
as is reasonably practicable following (i) the Separation Date (with
respect to Verigy Transferred Employees and other Verigy Employees transferring
on the Separation Date) and (ii) the date of the employee’s transfer to
Verigy (with respect to Verigy Transferred Employees and other Verigy Employees
transferring after the Separation Date and prior to the Distribution Date),
Agilent and Verigy shall cause a trust-to-trust transfer of assets and
Liabilities related to the Verigy Transferred Employees and other Verigy
Employees (including any outstanding loans, and shares of Agilent and Verigy
common stock for investment in Agilent and Verigy Common Stock Funds to be
maintained under the Verigy 401(k) Plan) from the trust maintained under the
Agilent 401(k) Plan to the trust maintained under the Verigy 401(k) Plan, in
accordance with Sections 401(a)(12), 411(d)(6) and 414(1) of the Code.

 

(c)   On the
dates of the transfers of assets and Liabilities provided in
Section 3.3(b), Verigy shall assume all such Liabilities under, related to
or resulting from the Agilent 401(k) Plan and described in Section 2.2
hereof.

 

3.4    Governing Principles for the
Non-United States Retirement Benefits.

 

The following governing
principles shall apply with respect to the treatment of the Non-United States
Retirement Plans of Non-United States Transferred Employees under this
Agreement:

 

(a)   Verigy
and its Affiliates shall satisfy the applicable conditions provided in
Section 3.6.

 

5

 

(b)   All
transfers of assets and/or cash, as applicable under this Section 3.4 shall
be subject to Verigy or its Affiliates fulfilling its or their obligations in
Section 3.7(a).

 

(c)   Liabilities
in respect of any Non-United States Retirement Plan, including past service
Liabilities, shall only be assumed by or transferred to Verigy or a Verigy
Subsidiary to the extent required by Applicable Local Law. As of the date
hereof, the only Non-United States Retirement Plans with respect to which
Verigy or its Affiliates shall be required to assume or have transferred to it
any past-service Liabilities are the Material Plans.

 

(d)   Transfers
of assets and/or cash, as applicable, under this Section 3.4 shall only be
made to the extent that (i) Applicable Local Law requires the transfer to
or assumption by Verigy, one of its Affiliates or a Verigy Plan of the past
service Liabilities of the relevant Non-United States Transferred Employees,
and (ii) Verigy, its Affiliates or a Verigy Plan does in fact assume such
past service Liabilities.

 

(e)   No
transfer of assets and/or cash, as applicable, under this Section 3.4
shall be made in respect of contributory and non-contributory retirement plans
required by Applicable Local Law if the funds are held by a non-associated
third party, state-run entity or a national centralized fund.

 

(f)    Whenever
possible under Applicable Local Law, Verigy, Agilent, and their respective
Affiliates shall use their commercially reasonable best efforts to ensure that
the transfer of assets from an Agilent Non-United States Retirement Plan can be
made to a Verigy Plan.

 

(g)   In the
case of any defined benefit or defined contribution Non-United States
Retirement Plan in which Liabilities, including past service Liabilities, are
not required to be transferred under Applicable Local Law, Agilent or its Subsidiary
shall retain such Liabilities.

 

(h)   The
mechanics of giving effect to the governing principles and other terms of
Sections 3.4 through 3.9 shall be determined by and be consistent with the
requirements of Applicable Local Law.

 

3.5    Non-United States Retirement
Plans.

 

Except as otherwise provided
in this Agreement, or the Master Separation Agreement, Agilent or the local
Agilent entity shall retain and be solely responsible for all Liabilities
under, relating to, or arising from the Non-United States Retirement Plans
prior to the Separation Date with respect to each Verigy Non-United States
Transferred Employees.

 

(a)    Defined Benefit Plans.    In
the case of any defined benefit Non-United States Retirement Plan in which past
service Liabilities are required to be transferred under Applicable Local Law,
at Agilent’s option (and subject to Applicable Local Law), Agilent shall
(i) transfer assets from such Plan to an appropriate Verigy Plan,
(ii) make a cash payment to Verigy, or (iii) any combination of the
foregoing. The total amount of such asset transfer or payment for any
Non-United States Retirement Plan shall be equal to the value of the past
service Liabilities transferred for the Verigy Employees on the Separation
Date, and adjusted for any Non-United States Transferred Employees whose
employment with Verigy or a Verigy Subsidiary begins after the Separation Date
and before the Distribution Date, as calculated in accordance with the
assumptions set out in Section 3.5(b), adjusted for the period from and including
the Separation Date (or later date of employment for any Non-United States
Transferred Employees whose employment with Verigy or a Verigy Subsidiary
begins after the Separation Date) to the day immediately before the Payment
Date by the discount rate provided in Exhibit C (the adjusted amount being
the “Transfer Amount”).

 

Subject to Applicable Local
Law and except for the Material Plan in France, no less than eighty percent
(80%) of the Transfer Amount, as estimated by Agilent’s Actuary in good faith
as of the Separation Date, will be transferred (whether through an asset
transfer or payment) as soon as practicable on or after the Separation Date.
The final transfer or payment of the remainder of the Transfer Amount shall be
consummated and/or such payment be made no later than 30 days following

 

6

 

the date as of which the determination of past
service Liabilities under Section 3.5(b) is completed; except, however,
that the entire asset transfer for the Material Plan in France shall be made as
soon as practicable after November 1, 2006.

 

(i)    Notwithstanding
the other provisions of Section 3.4 through 3.9, if within any defined
benefit Non-United States Retirement Plan there is a Members’ Voluntary Fund,
such fund, benefits payable from it, contributions payable to it, and any
transfer payment made from it shall be disregarded for all other purposes of
calculating the relevant Transfer Amount.

 

(ii)   Agilent
shall use commercially reasonable efforts to provide that the part of the
Members’ Voluntary Fund attributable to the relevant Non-United States
Transferred Employees is transferred to the relevant Verigy Plan at the same
time as the Transfer Amount (if any) in respect of those Non-United States Transferred
Employees’ defined benefit Non-United States Retirement Benefits.

 

(b)    Actuarial Calculation.    With
respect to the Material Plans and any other defined benefit pension Plans for
which past service Liabilities must be assumed by Verigy or one of its
Affiliates, the past service Liabilities for Non-United States Transferred
Employees to be so transferred shall be calculated as of the Separation Date
(or later date of employment for any Non-United States Transferred Employees
whose employment with Verigy or a Verigy Subsidiary begins after the Separation
Date) on an Accumulated Benefit Obligation (“ABO”)
SFAS 87 basis, using Agilent’s May 31, 2006 interim assumptions, as set
forth in Exhibit C hereto. If there is a required method for calculating
Liabilities upon transfer under Applicable Local Law, such Applicable Local Law
requirements will be applied.

 

Agilent’s Actuary shall make
its initial determination of the Transfer Amount on or before the Separation
Date. Not later than 30 days following the Distribution Date Agilent’s
Actuary shall make its final determination of the Transfer Amount. Verigy’s
Actuary shall then have a period of 30 days to review such determination
for completeness and submit its findings in writing. The determination by Agilent’s
Actuary shall be final and binding on the parties unless and to the extent the
Verigy’s Actuary finds missing, incomplete or inaccurate data, in which case a
revised calculation shall be performed by Agilent’s Actuary using the
additional, complete and accurate data within 30 days of the date that
Verigy’s Actuary submits its findings. Such revised calculation shall be final
and binding on the parties.

 

(c)    Defined Contribution Plans.    As
of the Separation Date, the Non-United States Verigy Employees will commence
participation in an applicable local Verigy defined contribution Plan. In the
case of any defined contribution Non-United States Retirement Benefit Plan, to
the extent required by Applicable Local Law, Agilent shall transfer the assets
credited to each Non-United States Transferred Employee who participates in
such Plan to an appropriate Verigy defined contribution Plan, or, if such
transfer of assets is not reasonably practicable, at Agilent’s option, Agilent
may make a cash payment to Verigy in an amount equal to the value of the assets
which would otherwise have been transferred, provided that, effective as of the
Transfer Date, Verigy assumes Liability for the past service benefits of the
relevant Non-United States Transferred Employees. In the case of a defined
contribution Non-United States Retirement Plan funded through one or more
assignable insurance contracts, the amount of any such transfer in respect of
each Non-United States Transferred Employee shall be equal to the mathematical
reserve of such arrangement attributable to such Non-United States Transferred
Employee. In each case, the Transfer Amount shall be designated for such
Non-United States Transferred Employee in the relevant Verigy Plan.

 

3.6    Verigy’s Non-United States
Defined Benefit Retirement Plans.

 

In respect of each proposed
transfer of assets and/or cash as described under Section 3.5(a) or
(b) above, Verigy shall satisfy the conditions set forth below for a
period of not less than one year following the Separation Date. Verigy shall
provide written confirmation to Agilent on or before the

 

7

 

Separation Date that it has complied with the
conditions set out in this Section 3.6. These conditions are that:

 

(i)    Verigy
or one of its Affiliates shall, on or before the Transfer Date, establish a new
Verigy Plan (“New Plan”) to
receive the proposed transfer;

 

(ii)   Verigy
or one of its Affiliates shall provide that an amount equal to the relevant
Transfer Amount (together with income on that amount accruing from the Transfer
Date, less any payment made out of the New Plan in respect of benefits payable
to and in respect of the Non-United States Transferred Employees attributable
to the transfer credits granted to the Non-United States Transferred Employees
in the New Plan, and less an amount which the trustees or administrators of the
New Plan consider to be appropriate to meet the expenses attributable to the
New Plan) shall be applied solely for providing or securing pensions and other
benefits for the Non-United States Transferred Employees and their
beneficiaries; provided, however, that the relevant Transfer Amount shall not
be applied to pay any pension or other benefits to Non-United States
Transferred Employees that accrue after the Separation Date until all the
Non-United States Transferred Employees and their beneficiaries have been paid
their benefits payable attributable to the transfer credits granted under the
New Plan; and

 

(iii)  Verigy or
one of its Affiliates shall, on or before the Transfer Date, establish a new
contractual trust related to the Material Plans covering Non-United States
Transferred Employees and their beneficiaries in Germany. The assets held by
such contractual trust shall qualify as “plan assets” under GAAP or IFRS.

 

3.7    Non-United States Retirement
Benefits to be Provided by Verigy Include Past Service.

 

(a)    Benefits for Past Service.    If
Verigy or one of its Affiliates shall provide Non-United States Retirement
Benefits for any Non-United States Transferred Employee in respect of service
prior to the Separation Date, such Non-United States Retirement Benefits shall
be equivalent in value (on the actuarial basis used for calculating the
relevant transfer provided in Exhibit C) to that Non-United States
Transferred Employee’s Non-United States Retirement Benefits immediately before
the Separation Date. If Agilent so requests in writing, Verigy shall instruct
Verigy’s Actuary to issue a certificate to Agilent to this effect.

 

(b)    Transfers of Assets in
Respect of Past Service.

 

(i)    Agilent
and Verigy shall cooperate to ensure that, subject to Applicable Local Law,
Non-United States Retirement Benefits and related assets in respect of service
prior to the Separation Date transfer to Verigy or one of its Affiliates in
accordance with the applicable governing principles set forth in Sections 3.4
through 3.9 hereof. Where any transfer of Non-United States Retirement Benefits
or assets in respect of those rights requires the approval or consent of any
regulatory body or third party (including any Non-United States Transferred
Employee), Agilent and Verigy shall each use all commercially reasonable
efforts to cooperate to obtain such approval and consent.

 

(ii)   Subject
to Applicable Local Law, where any transfer pursuant to Sections 3.4 through
3.9 is to be made from Agilent’s defined contribution Non-United States
Retirement Plan to a Verigy defined contribution Plan, Verigy or one of its
Affiliates shall provide that that part of the Transfer Amount which is
attributable to the past service benefits of each Non-United States Transferred
Employee shall be allocated to an individual account set up for such Non-United
States Transferred Employee in the Verigy defined contribution Plan.

 

(iii)  Subject to
Applicable Local Law, Agilent and Verigy shall each use commercially reasonable
efforts to provide that each transfer takes place promptly after the valuation
of the liabilities (in accordance with the assumptions set out in Section 3.5(b))
has been completed in

 

8

 

accordance with Sections 3.4
through 3.9 hereof. The Transfer Date and Payment Date shall be agreed to by
Agilent and Verigy (or, in default of agreement, determined under Section 3.5(b))
no later than 30 days following the final determination of past service
liabilities under Section 3.5(b).

 

(iv)  Agilent and
Verigy and their Affiliates shall each use commercially reasonable efforts to
provide that any information reasonably required by Agilent’s Actuary or Verigy’s
Actuary for the purpose of undertaking and agreeing to each Transfer Amount
shall, to the extent this is within the power or control of Agilent, Verigy and
their Affiliates, respectively, be supplied to such actuary and that any such
information so supplied shall be true, complete and accurate in all material
respects; and shall each use commercially reasonable efforts to provide that
its actuary acts promptly and such calculations are completed promptly.

 

3.8    Undertakings by Verigy and
Agilent.

 

Neither Verigy, Agilent nor
any of their respective Affiliates shall take any actions, whether directly or
indirectly, on or after the date of this Agreement that could result in an
increase of the amount of Liabilities to be assumed or transferred or assets to
be transferred from or in respect of any Non-United States Retirement Plan
pursuant to this Agreement, except as may be required under Applicable Local
Law.

 

3.9    Claims in Relation to
Non-United States Retirement Benefits.

 

(a)   For the
purposes of this paragraph:

 

(i)    ”Relevant Claim” means a claim by a Covered
Person relating to Non-United States Retirement Benefits attributable to any
period of employment prior to the Separation Date, and which have transferred
to Verigy or one of its Affiliates, but not including any claims based on the
grounds that a Covered Person was denied access to a Non-United States
Retirement Plan prior to the Separation Date, claims arising out of any default
of Agilent or one of its Affiliates prior to the Separation Date, and claims
relating to any Non-United States Retirement Benefits which do not transfer to
Verigy.

 

(ii)   ”Covered Person” means any Non-United
States Transferred Employee (or any person whose benefits arise on the death of
such person) whose Non-United States Retirement Benefits in respect of any
period of service prior to Separation Date transfer from a Non-United States
Retirement Plan to a Verigy Plan.

 

(iii)  ”Relevant Claim Liability” means any
Liability, loss, damage, cost, claim or reasonable expense arising out of or in
connection with any Relevant Claim.

 

(b)   Verigy
shall pay Agilent immediately upon demand an amount equal to any Relevant Claim
Liability incurred or sustained by Agilent or a Non-United States Retirement
Plan arising out of or in connection with any Relevant Claim (the “Liability
Amount”).

 

(c)   To the
extent that any Relevant Claim Liability relates to the value of any Non-United
States Retirement Benefits, the amount of that Relevant Claim Liability shall
be calculated using the actuarial method and assumptions provided in
Exhibit C.

 

9

 

(d)   Any
Relevant Claim Liability determined in a currency other than United States
dollars shall be converted into United States dollars at the payment date by
Verigy in accordance with an appropriate exchange rate agreed to by Agilent and
Verigy.

 

(e)   The
time value of the Liability Amount shall be maintained by increasing it by an
amount calculated as if there were interest at the Interest Rate on the
Liability Amount under Section 3.9(b) for the period from the date as at
which the amount of the Liability Amount has been quantified to the date
payment is made to Agilent.

 

ARTICLE IV

 

NON-QUALIFIED
AND OTHER PLANS

 

4.1    Excess Retirement Benefit
Plan.

 

Agilent shall retain and be
solely responsible for all Liabilities under, or relating to, or arising from,
the Agilent Excess Retirement Benefit Plan with respect to each Verigy
Transferred Employee and other Verigy Employee. As soon as practicable after
the Distribution Date, Verigy Transferred Employees and other Verigy Employees
who are eligible to receive their vested accrued benefit under the Agilent
Excess Retirement Benefit Plan may elect to take such a distribution from such
plan, pursuant to the terms thereof and consistent with the requirements of
Section 409A of the Code.

 

4.2    Deferred Compensation Plan.

 

(a)    Establishment of Verigy
Deferred Compensation Plan.    Effective as of
the Separation Date, Verigy shall establish the Verigy Deferred Compensation
Plan, the Material Features of which shall be substantially identical to the
Agilent Deferred Compensation Plan.

 

(b)    Allocation and Assumption of
Liabilities.    Agilent shall determine the
amount of Liabilities under the Agilent Deferred Compensation Plan as of the
Agilent Participation Discontinuance Date attributable to Verigy Transferred
Employees and other Verigy Employees. Effective as of the Agilent Participation
Discontinuance Date, Verigy shall assume all Liabilities under, related to or
resulting from the Agilent Deferred Compensation Plan and described in
Section 2.2 hereof, with respect to each Verigy Transferred Employee and
other Verigy Employee who consents to the assumption of such Liabilities. If a
Verigy Transferred Employee or other Verigy Employee does not consent to the
assumption of such Liabilities, Agilent shall retain and solely be responsible
for all such Liabilities under, or relating to, or arising from, the Agilent
Deferred Compensation Plan with respect to such Verigy Transferred Employee or
other Verigy Employee. Verigy agrees to notify Agilent of any Verigy
Transferred Employee’s or other Verigy Employee’s termination of employment
with Verigy for distribution purposes.

 

4.3    2005 Deferred Compensation
Plan.

 

(a)    Establishment of Verigy 2006
Deferred Compensation Plan.    Effective as of
the Separation Date, Verigy shall establish the Verigy 2006 Deferred
Compensation Plan, the Material Features of which shall be substantially
identical to the Agilent 2005 Deferred Compensation Plan.

 

(b)    Allocation and Assumption of
Liabilities.    Agilent shall determine the
amount of Liabilities under the Agilent 2005 Deferred Compensation Plan as of
the Agilent Participation Discontinuance Date attributable to Verigy
Transferred Employees and other Verigy Employees. Effective as of the Agilent
Participation Discontinuance Date, Verigy shall assume all Liabilities under,
related to or resulting from the Agilent 2005 Deferred Compensation Plan and
described in Section 2.2 hereof, with respect to each Verigy Transferred
Employee and other Verigy Employee who consents to the assumption of such
Liabilities. If a Verigy Transferred Employee or other Verigy Employee does not
consent to the assumption of such Liabilities, Agilent shall retain and solely
be responsible for all such

 

10

 

Liabilities under, or relating to, or arising from,
the Agilent 2005 Deferred Compensation Plan with respect to such Verigy
Transferred Employee or other Verigy Employee. Verigy agrees to notify Agilent
of any Verigy Transferred Employee’s or other Verigy Employee’s termination of
employment with Verigy for distribution purposes.

 

4.4    International Relocation
Benefit Plan and International Retirement Guarantee.

 

Agilent shall retain and be
solely responsible for all Liabilities that have accrued as of the Distribution
Date under, relating to, or arising from, the Agilent International Relocation Benefit
Plan and International Retirement Guarantee with respect to each Verigy
Transferred Employee and other Verigy Employee. Verigy agrees to notify Agilent
of any Verigy Transferred Employee’s or other Verigy Employee’s termination of
employment with Verigy for distribution purposes.

 

4.5    Guaranteed Relocation
Subsidies.

 

(a)    Establishment of Verigy
Guaranteed Relocation Subsidies.    Effective as
of the Separation Date, Verigy shall establish the Verigy Guaranteed Relocation
Subsidies Plan (“GRS”), the
Material Features of which shall be substantially identical to the Agilent GRS.

 

(b)    Allocation and Assumption of
Liabilities.    Agilent shall determine the
amount of Liabilities under the Agilent GRS as of the Agilent Participation
Discontinuance Date attributable to each Verigy Transferred Employee and other
Verigy Employee. Effective as of the Agilent Participation Discontinuance Date,
Verigy shall assume all Liabilities under, related to or resulting from the
Agilent GRS and described in Section 2.2 hereof.

 

4.6    Establishment of Verigy TFR
Plan in Italy.    Effective as of the Separation
Date, Verigy or one of its Affiliates shall establish a Verigy TFR plan and
assume the liability for the accrued benefits under the Agilent TFR plan in Italy
for the Non-United States Transferred Employees employed by the Verigy
Subsidiary in Italy. The TFR plan provides payments to eligible employees in
Italy following termination of employment whether due to dismissal or
resignation. Consistent with the provisions of Section 2.2 above no
transfer of assets or cash shall be made with respect to this liability.

 

ARTICLE V

 

HEALTH AND
WELFARE PLANS

 

5.1    Health, Dental and Vision
Plans.

 

Verigy Transferred Employees
and other Verigy Employees shall cease active participation in the Agilent
Medical Plan, Agilent Dental Plan and Agilent Vision Plan as of the applicable
Agilent Participation Discontinuance Date. Effective as of the Agilent
Participation Discontinuance Date, the Verigy Transferred Employees and other
Verigy Employees shall be eligible to commence participation in the Verigy
Medical Plan, Verigy Dental Plan and Verigy Vision Plan, subject to the terms
thereof. Verigy shall credit Verigy Transferred Employees and other Verigy
Employees who were enrolled in the Agilent Medical Plan immediately prior to
the Separation Date with credit under the Verigy Medical Plan for any
deductibles or out-of-pocket expenses those Verigy Transferred Employees and
other Verigy Employees had been credited for the plan year that includes the
Agilent Participation Discontinuance Date. Effective as of the Agilent
Participation Discontinuance Date, Verigy shall assume all Liabilities under,
related to or resulting from each of the Agilent Medical Plan, Agilent Dental
Plan and Agilent Vision Plan and described in Section 2.2 hereof, other
than claims for benefits provided under the terms of the Agilent Medical Plan,
Agilent Dental Plan and Agilent Vision Plan, as applicable, by Verigy
Transferred Employees and other Verigy Employees prior to the Agilent
Participation Discontinuance Date, which claims shall remain Liabilities of
Agilent. For purposes of this Section 5.1, a claim for benefits is deemed
incurred when the services that are the subject of the claim

 

11

 

are performed, and, in the case of a hospital stay,
when the employee or covered dependent first enters the hospital.

 

5.2    Group Universal Life and
Group Long Term Care Insurance Plans.

 

Verigy Transferred Employees
and other Verigy Employees shall cease active participation in the Agilent
Group Universal Life Insurance Plan and the Agilent Group Long Term Care
Insurance Plan as of the applicable Agilent Participation Discontinuance Date.
Verigy Transferred Employees and other Verigy Employees may be eligible to
continue such coverage on an individual basis following the applicable Agilent
Participation Discontinuance Date, in accordance with the terms and conditions
of the applicable plans. Verigy shall not assume any Liabilities for benefits
provided under the terms of the Agilent Group Universal Life Insurance Plan and
the Agilent Group Long Term Care Insurance Plan.

 

5.3    Retiree Medical Plans.

 

Verigy Transferred Employees
who are eligible for coverage under Agilent Non-Medicare Medical Plan or the
Medicare Supplemental Plan (collectively, the “Agilent
Retiree Medical Plans”) as of the Distribution Date shall have
thirty (30) days following the Distribution Date to elect coverage under
the relevant Retiree Medical Plan, which coverage shall commence on
January 1, 2007. Any Verigy Transferred Employee who is eligible for
coverage under the relevant Retiree Medical Plan and who retires between the
Separation Date and the Distribution Date shall have thirty (30) days following
such retirement date to elect coverage under such plan, which coverage shall
commence on the Verigy Transferred Employee’s retirement date. In the case of a
Verigy Transferred Employee who dies between the Separation Date and the
Distribution Date, his or her spouse or domestic partner may elect coverage
under the applicable Agilent Retiree Medical Plan, in accordance with the terms
of the relevant Agilent Retiree Medical Plan. Agilent shall retain and be
solely responsible for all Liabilities under, or relating to, or arising from,
the Agilent Retiree Medical Plans with respect to each Verigy Transferred
Employee and other Verigy Employee and his or her spouse, domestic partner and
dependents, as applicable, for whom coverage has been elected under this
Section 5.3.

 

5.4    Flexible Spending Account
Plans.

 

Verigy Transferred Employees
and other Verigy Employees shall cease to contribute to and to otherwise
actively participate in the Agilent Flexible Spending Account Plans as of the
applicable Agilent Participation Discontinuance Date. Effective as of the
Separation Date, Verigy shall adopt the Verigy Flexible Spending Account Plans.
A Verigy Transferred Employee or other Verigy Employee shall submit claims and
shall be reimbursed for those claims (if any) incurred between January 1,
2006 and the applicable Agilent Participation Discontinuance Date under the
Agilent Flexible Spending Account Plans. A Verigy Transferred Employee or other
Verigy Employee shall submit claims and shall be reimbursed for those claims
(if any) incurred between the applicable Agilent Participation Discontinuance
Date and December 31, 2006 under the Verigy Flexible Spending Account
Plans. Contributions will be made to each Verigy Transferred Employee’s or
other Verigy Employee’s accounts under the Verigy Flexible Spending Account
Plans for compensation earned after the applicable Agilent Participation
Discontinuance Date. Verigy not shall assume any Liabilities for benefits
provided under the terms of the Agilent Flexible Spending Account Plans.

 

5.5    Business Travel Accident
Insurance Plan.

 

Verigy Transferred Employees
receiving benefits under the Agilent Business Travel Accident Insurance Plan
shall remain covered under such plan until the applicable Agilent Participation
Discontinuance Date. Verigy shall not assume any Liabilities for benefits
provided under the terms of the Agilent Business Travel Accident Insurance
Plan.

 

12

 

5.6    COBRA.

 

Through the Separation Date,
Agilent shall be responsible for providing COBRA continuation coverage to
Verigy Transferred Employees or other Verigy Employees and their qualified
beneficiaries (as defined under COBRA). Effective as of the Separation Date,
Verigy shall be responsible for providing COBRA continuation coverage to Verigy
Transferred Employees or other Verigy Employees and their qualified
beneficiaries (as defined under COBRA).

 

5.7    Leave of Absence Programs and
FMLA.

 

(a)    Allocation of
Responsibilities After Separation Date.    Effective
as of the Separation Date (i) Verigy shall adopt Leave of Absence
Programs, (ii) Verigy shall honor all terms and conditions of leaves of
absence which have been granted to any Verigy Transferred Employee or other
Verigy Employee under an Agilent Leave of Absence Program or FMLA before the
Separation Date by Agilent, including such leaves that are to commence after
the Separation Date, and (iii) Verigy shall be solely responsible for
administering leaves of absence and complying with FMLA with respect to Verigy
Transferred Employees and other Verigy Employees.

 

(b)    Records.    As
soon as administratively practicable after the Separation Date, Agilent shall
provide to Verigy copies of all records pertaining to the Agilent Leave of
Absence Programs and FMLA with respect to all Verigy Transferred Employees and
other Verigy Employees to the extent such records have not been previously
provided.

 

5.8    Workers’ Compensation
Program.

 

(a)   Agilent
shall retain and be solely responsible for the administration of all claims
that are, or have been, incurred under Agilent’s existing workers’ compensation
program (the “Agilent Workers’ Compensation
Program”) before the Distribution Date by Verigy Transferred
Employees and other Verigy Employees. For purposes of this Section 5.8, a
claim is deemed incurred when the event giving rise to the workers’
compensation benefit occurs. Verigy Transferred Employees and other Verigy
Employees shall cease active participation in the Agilent Workers’ Compensation
Program immediately prior to the Distribution Date.

 

(b)   Agilent
and Verigy shall use their commercially reasonable best efforts to procure at
Verigy’s cost and expense separate workers’ compensation insurance coverage for
Verigy (the “Verigy Workers’ Compensation
Program”) to take effect as of the Distribution Date. Claims
incurred by Verigy Transferred Employees and other Verigy Employees on or after
the Distribution Date shall be administered under the Verigy Workers’
Compensation Program.

 

(c)   Each party
shall fully cooperate with the other with respect to the administration and
reporting of workers’ compensation claims.

 

(d)   Any
transition services to be provided with respect to workers’ compensation
insurance shall be subject to and governed by the terms of the Transition
Services Agreement.

 

5.9    Non-United States Health and
Welfare Plans.    On and after the Agilent
Participation Discontinuance Date, except as otherwise provided in a Local
Asset Transfer Agreement, Non-United States Transferred Verigy Employees will
cease participating in the local Agilent health and welfare Plans and will
begin participating in the local Verigy health and welfare Plans. Verigy shall
not assume any Liabilities for benefits provided under the terms of the local Agilent
health and welfare Plans, except as required by Applicable Law.

 

13

 

ARTICLE VI

 

EQUITY AND
OTHER COMPENSATION

 

6.1    Agilent Options.

 

(a)   Verigy
Transferred Employees shall have three (3) months following the
Distribution Date to exercise their options to purchase Agilent Common Stock (“Agilent Options”) that were fully vested
and exercisable immediately prior to the Distribution Date; provided that any
options converted from Hewlett Packard (“HP Converted Options”), must be
exercised by the Distribution Date. Notwithstanding the foregoing, Verigy
Transferred Employees who hold options described in the preceding sentence
(including HP Converted Options) and who are eligible on the Distribution Date
for retirement in accordance with Agilent’s retirement policy as in effect on
the Distribution Date, under the terms of their applicable option agreements,
shall have the earlier of (i) three (3) years following the
Distribution Date and (ii) the expiration of the term of the Agilent
Option to exercise such Agilent Options. To the extent such Agilent Options are
not exercised within the applicable post-termination exercise period, such
Agilent Options shall be cancelled without payment therefor.

 

(b)   All
Agilent Options held by Verigy Transferred Employees on the Distribution Date
and are not described in Section 6.1(a) above shall be cancelled and
immediately replaced by options to purchase Verigy Ordinary Shares (“Verigy Options”) to the extent feasible
and practical under Applicable Local Law. Each Verigy Option shall continue to
have, and be subject to, the same terms and conditions as the corresponding
Agilent Options, except that (i) such Verigy Option shall be exercisable
for that number of whole Verigy Ordinary Shares equal to the product of the
number of shares of Agilent Common Stock that were issuable upon exercise of
such Agilent Option as of the Distribution Date multiplied by the Ratio,
rounded down to the nearest whole number of Verigy Ordinary Shares, and
(ii) the per share exercise price for the Verigy Ordinary Shares issuable
upon exercise of such Verigy Option shall be equal to the quotient determined
by dividing the exercise price per share of Agilent Common Stock at which such
Agilent Option was exercisable as of the Distribution Date by the Ratio,
rounded up to the nearest cent. The grant of Verigy Options under this
Section 6.1(b) shall comply with all applicable provisions of the Code,
including Section 409A, when performing the calculation to determine the
number of Verigy Ordinary Shares and the per share exercise price of the Verigy
Options.

 

Notwithstanding the
foregoing provision of this Section 6.1(b), alternative awards may be
provided to employees outside the United States where options are impractical
and/or infeasible due to local requirements or where other awards may obtain
more favorable treatment under Applicable Local Law (e.g., employees in France
may receive French qualified restricted stock units, rather than options).

 

(c)   In the
event of the termination of a Verigy Transferred Employee’s employment prior to
the Distribution Date, any Agilent Option held by the Verigy Transferred
Employee shall continue to be exercisable for a period of time after
termination only in accordance with the terms of the Agilent 1999 Stock Plan
and the terms of the applicable grant agreement.

 

6.2    Verigy Options—Initial
Grants.

 

Effective as of the IPO,
executive officers, non-employee directors (excluding any Agilent directors
serving on the Board of Directors of Verigy) and certain employees worldwide
will be granted options to purchase Verigy Ordinary Shares and/or restricted
stock to the extent feasible and practical under Applicable Local Law. The
value of the shares subject to such grants, valued at the IPO price, shall be
agreed upon by Verigy and Agilent. The exercise price per share of the options
will be equal to the IPO price of the Verigy Ordinary Shares.

 

14

 

6.3    Agilent Restricted Stock.

 

Verigy Transferred Employees
shall continue to hold their shares of Agilent restricted stock after the
Separation Date on the same terms and conditions under which they were held as
of the Separation Date. Effective as of the Distribution Date, the Agilent
restricted stock held by Verigy Transferred Employees will be cancelled without
payment therefor and immediately thereafter Verigy will issue shares of
restricted stock of equivalent value to such employees to replace the otherwise
cancelled grants, which shall contain the same terms and conditions as the
cancelled Agilent restricted stock.

 

6.4    Employee Stock Purchase Plan.

 

Verigy Transferred Employees
and other Verigy Employees shall cease participation in the Agilent Employee
Stock Purchase Plan as of the applicable Agilent Participation Discontinuance
Date. Verigy shall not assume any Liabilities for benefits provided under the
terms of the Agilent Employee Stock Purchase Plan.

 

6.5    Variable Pay Plan.

 

Verigy Transferred Employees
and other Verigy Employees shall cease participation in the Agilent variable
pay plans as of the applicable Agilent Participation Discontinuance Date.
Effective as of the Separation Date, Verigy shall establish the Verigy variable
pay plans. Verigy shall be solely responsible for all Liabilities related to
the payment of variable pay to Verigy Transferred Employees and other Verigy
Employees under any variable pay plan with respect to service completed on and
after May 1, 2006.

 

6.6    Service Award Program.

 

Verigy Transferred Employees
and other Verigy Employees shall cease active participation in the Service
Award Plan as of the applicable Agilent Participation Discontinuance Date.
Verigy shall not assume any Liabilities for benefits provided under the terms
of the Agilent Service Award Plan.

 

ARTICLE VII

 

FRINGE AND
OTHER BENEFITS

 

7.1    Employee Assistance Program.

 

Verigy Transferred Employees
and other Verigy Employees shall cease active participation in the Agilent
Employee Assistance Program as of the end of the sixty (60) day period
following the applicable Agilent Participation Discontinuation Date. Verigy
shall not assume any Liabilities for benefits provided under the terms of the
Agilent Employee Assistance Program.

 

7.2    Educational Assistance
Program.

 

Verigy Transferred Employees
and other Verigy Employees shall cease active participation in the Agilent
Educational Assistance Program as of the applicable Agilent Participation
Discontinuation Date. Verigy shall not assume any Liabilities for benefits
provided under the terms of the Agilent Educational Assistance Program.

 

7.3    Adoption Assistance Program.

 

Verigy Transferred Employees
and other Verigy Employees shall cease active participation in the Agilent
Adoption Assistance Program as of the applicable Agilent Participation
Discontinuation Date. Notwithstanding the foregoing, in the event a Verigy
Transferred Employee or other Verigy Transferred Employee is transferred to
Verigy in accordance with Section 2.1 and such employee has an adoption
pending under the Agilent Adoption Assistance Program, such employee shall
continue active participation in the Agilent Adoption Assistance Program
through such adoption and then shall cease

 

15

 

active participation in such plan. Verigy shall not
assume any Liabilities for benefits provided under the terms of the Agilent
Adoption Assistance Program

 

7.4    Credit Union.

 

Agilent shall use its
commercially reasonable best efforts to make the Agilent Employees’ Federal
Credit Union available to Verigy Transferred Employees and other Verigy
Employees on substantially similar terms and conditions as are offered to
employees of the Agilent Group, through such date as Agilent and Verigy
mutually agree. Verigy shall reimburse Agilent for any and all direct and
indirect costs and expenses related thereto.

 

7.5    Other Fringe Benefits.

 

To the extent that Agilent
maintains, sponsors or provides other fringe benefits to its employees, then
Agilent shall, to the extent permitted by Law, continue to make such benefits
available to Verigy Transferred Employees and other Verigy Employees on
substantially similar terms and conditions as are offered to the employees of
the Agilent Group through the Agilent Participation Discontinuance Date or such
other date upon which Agilent and Verigy mutually agree. Verigy shall reimburse
Agilent for any and all direct and indirect costs and expenses related thereto
after the Separation Date. Agilent and Verigy agree to make commercially
reasonable best efforts to mutually agree on whether, when, and on what terms
any member of the Verigy Group shall maintain, sponsor or offer fringe benefits
prior to the Distribution Date.

 

ARTICLE
VIII 

 

ADMINISTRATIVE
PROVISIONS

 

8.1    Beneficiary Designations.

 

All beneficiary designations
made by Verigy Transferred Employees and other Verigy Employees under the
Agilent Plans shall be transferred to and be in full force and effect under the
corresponding Verigy Plans, to the extent that such plans provide for
beneficiary designations, until such beneficiary designations are replaced or
revoked by the Verigy Transferred Employee or other Verigy Employee who made
the beneficiary designation, in accordance with the terms of such plans.

 

8.2    Requests for IRS Opinions.

 

Agilent and Verigy shall
make such applications to regulatory agencies, including the IRS, as may be
necessary or appropriate. Agilent and Verigy shall cooperate fully with one
another on any issue to the transactions contemplated by this Agreement for
which Agilent or Verigy elects to seek a determination letter or private letter
ruling from the IRS.

 

8.3    Fiduciary Matters.

 

Agilent and Verigy each
acknowledge that actions contemplated to be taken pursuant to this Agreement
may be subject to fiduciary duties or standards of conduct under ERISA or
applicable Law, and no party shall be deemed to be in violation of this
Agreement if such party fails to comply with any provisions hereof based upon
such party’s good faith determination that to do so would violate such a
fiduciary duty or standard of conduct.

 

8.4    Consent of Third Parties.

 

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

 

16

 

8.5    World Wide Web.

 

Through the Separation Date
or such other date as Agilent and Verigy mutually agree, Agilent shall make its
intranet site available to Verigy Employees on substantially the same terms as
such intranet site is made available to Agilent Employees. Verigy agrees to
fully reimburse Agilent for any and all costs and expenses related thereto.
Agilent and Verigy shall use their commercially reasonable best efforts to
mutually agree on the appropriate methods for Verigy to establish its own site.

 

ARTICLE IX 

 

EMPLOYMENT-RELATED
MATTERS

 

9.1    HR Data Support Systems.

 

Agilent shall provide human
resources data support for Verigy Transferred Employees and other Verigy
Employees for a period mutually agreed upon between Agilent and Verigy. Agilent
reserves the right to discontinue Verigy’s access to any Agilent human resource
data support systems with reasonable notice. Verigy agrees to fully reimburse
Agilent for any and all associated costs and expenses relating to its use of
the Agilent human resources data support systems.

 

9.2    Confidentiality and
Proprietary Information.

 

No provision of this
Agreement, the Master Separation Agreement or any ancillary agreement shall be
deemed to release any individual for any violation of the Agilent
non-competition guideline or any agreement or policy pertaining to confidential
or proprietary information of any member of the Agilent Group or otherwise
relieve any individual of his or her obligations under such non-competition
guideline, agreement or policy.

 

9.3    FTO Policy.

 

Effective as of the
Separation Date, Verigy shall establish the Verigy FTO Policy. Effective as
soon as administratively practicable after the Verigy Transferred Employee’s or
other Verigy Employee’s Agilent Participation Discontinuance Date, Agilent
shall transfer to Verigy all data and information relating to the accrued
benefits under the Agilent FTO Policy. Effective as of the Agilent
Participation Discontinuance Date, Verigy shall assume all Liabilities under,
relating to, or arising from the accrued benefits under the Agilent FTO Policy
and described in Section 2.2 hereof. In the event that an Agilent Employee
or Verigy Employee transfers his or her employment to the other party before
the Distribution Date, such transfer of employment shall not result in a payout
or constitute a termination event for purposes of the FTO Policy (except as may
be required by Applicable Local Law under any non-United States FTO Policy),
and no duplication of benefits shall occur as a result of any such transfer of
employment between Agilent and Verigy. Furthermore, all Liabilities
attributable to each Agilent Employee or Verigy Employee who transfers
employment between Agilent and Verigy prior to the Distribution Date shall be
assumed by the transferee employer subsequent to the transfer. With regard to
the FTO Policy covering the Verigy Transferred Employees in Germany, at Agilent’s
option (and subject to Applicable Local Law), Agilent shall (i) transfer
assets from such FTO Policy to the Verigy FTO Policy as of the Separation Date,
(ii) make a cash payment to Verigy, or (iii) any combination of the
foregoing. The total amount of such asset transfer or payment shall be equal to
the value of the past service Liabilities transferred for the Verigy
Transferred Employees on the Separation Date, and adjusted for any Non-United
States Transferred Employees whose employment with Verigy or a Verigy
Subsidiary in Germany begins after the Separation Date and before the
Distribution Date, as calculated by Agilent’s Actuary in good faith. Such
payment or transfer will be made (whether through an asset transfer or payment)
as soon as practicable on or after the Distribution Date. Personal holidays
accrued by Verigy Transferred Employees and other Verigy Employees prior to the
applicable Agilent Participation Discontinuance Date shall not transfer to
Verigy, to the extent allowable by Applicable Local Law. Verigy Transferred
Employees and other Verigy Employees shall cease active

 

17

 

participation in the Agilent Alternative Work
Schedule Holiday Bank as of the applicable Agilent Participation Discontinuance
Date.

 

9.4    Accrued Payroll, Bonuses,
Variable Pay and Commissions.

 

Agilent shall retain and be
solely responsible for all Liabilities under, relating to, or arising from
payroll, bonuses, variable pay and commissions for service by a Verigy
Transferred Employee or other Verigy Employee prior to the Agilent
Participation Discontinuance Date. Verigy shall be solely responsible for all
Liabilities under, relating to, or arising from payroll, bonuses variable pay
and commissions attributable to service on and after the Agilent Participation
Discontinuance Date. Agilent and Verigy shall agree on the manner and method of
payment for all accrued payroll, bonuses, variable pay and commissions agreed
to on behalf of such employees. Effective as of the Separation Date, Verigy
shall establish its own payroll system and commission policy. Notwithstanding
any provisions of this Agreement to the contrary, effective as of the Agilent
Participation Discontinuance Date, Verigy shall assume and be solely responsible
for all Liabilities under, relating to, or arising from any retention bonuses
payable to each Verigy Transferred Employee or other Verigy.

 

9.5    Payroll and Withholding.

 

(a)    Income Reporting,
Withholding.    Agilent and Verigy shall use
their commercially reasonable best efforts to cause the Agilent human resources
management system to be split into two separate systems on the Separation Date.
Verigy shall perform the income reporting and withholding function under its
own employer identification number for Verigy Transferred Employees, other
Verigy Employees and other service providers, commencing with service periods
beginning on or after the Separation Date. Agilent shall continue to perform
the income reporting and withholding function for Agilent Employees and other
service providers.

 

(b)    Delivery of, and Access to,
Documents and Other Information.    Concurrently
with the Agilent Participation Discontinuance Date, Agilent shall cause to be
delivered to Verigy, the employee information set forth on all Forms W-4
executed by Agilent Employees designated as Verigy Transferred Employees or
other Verigy Employees as of the applicable Agilent Participation
Discontinuance Date. For the period beginning on the Separation Date and ending
on the Distribution Date (and for such additional period as Agilent and Verigy
may mutually agree), Agilent shall make reasonably available to Verigy all
forms, documents or information, no matter in what format stored, relating to
compensation or payments made to any employee or service provider of Verigy.
Such information may include, but is not limited to, information concerning
employee payroll deductions, payroll adjustments, records of time worked, tax
records (e.g., Forms W-2, W-4,
940 and 941), and information concerning garnishment of wages or other
payments. Verigy agrees to fully reimburse Agilent for the cost associated with
such availability and access. Verigy agrees that, to the extent permitted under
the terms of this Agreement, in the event a Verigy Transferred Employee or
other Verigy Employee becomes an employee of Agilent, Verigy shall cause to be
delivered to Agilent, the employee information set forth on all Forms W-4
executed by such individual as soon as reasonably practicable following the Verigy
Transferred Employee’s or other Verigy Employee’s termination of employment
with Verigy.

 

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

 

9.6    Personnel and Pay Records.

 

For the period beginning on
the Separation Date and ending on the Distribution Date (and for such
additional period as Agilent and Verigy may mutually agree), Agilent shall make
reasonably

 

18

 

available to Verigy, subject to applicable Laws on
confidentiality and data protection, all current and historic forms, documents
or information, no matter in what format stored, relating to pre-Distribution
Date personnel, medical records, and payroll information (collectively referred
to as “Personnel Data”). Such
Personnel Data may include, but is not limited to: (a) information
regarding a Verigy Transferred Employee’s or other Verigy Employee’s ranking or
promotions; (b) the existence and nature of garnishment orders or other
judicial or administrative actions or orders affecting an employee’s or service
provider’s compensation; and (c) performance evaluations. Verigy agrees to
fully reimburse Agilent for the cost associated with such availability and
access. Verigy agrees that, to the extent permitted under the terms of this
Agreement, in the event a Verigy Transferred Employee or other Verigy Employee
becomes an employee of Agilent, Verigy shall cause to be delivered to Agilent,
the Personnel Data as soon as reasonably practicable following the Verigy
Transferred Employee’s or other Verigy Employee’s termination of employment
with Verigy.

 

9.7    Unemployment Insurance
Program.

 

Verigy Transferred Employees
and other Verigy Employees shall cease active participation in the Agilent
Unemployment Insurance Program as of the applicable Agilent Participation
Discontinuance Date. Effective as of the Separation Date, Verigy shall establish
the Verigy Unemployment Insurance Program, the Material Features of which shall
be substantially identical to the Agilent Unemployment Insurance Program.
Agilent shall use its commercially reasonable best efforts for and on behalf of
Verigy to procure an agreement with its unemployment insurance vendor(s) with
the material features of the Agilent unemployment insurance agreement,
including, without limitation, administration of all unemployment compensation
claims of Verigy Transferred Employees and other Verigy Employees, regardless
of whether such claims were filed before, on, or after the Separation Date.
Unless otherwise directed by Verigy, Agilent shall take commercially reasonable
best efforts to assist Verigy as well as all members of the Verigy Group in
retaining the Agilent experience rating on or after the Separation Date.

 

9.8    Employment Litigation.

 

Verigy shall have the sole
responsibility for all employment-related claims regarding Verigy Transferred
Employees and other Verigy Employees that exist, or come into existence, on or
after the Agilent Participation Discontinuance Date arising out of or relating
to their employment by the Business or the Verigy Group, other than claims for
severance under the Agilent Workforce Management Program. The claims described
in this Section 9.8 for which Verigy shall have sole responsibility shall
constitute Assumed Transferred Employee Liabilities.

 

Schedule 9.8 sets forth
a complete list of all unresolved court, arbitration, or administrative
proceedings concerning employment-related claims regarding Verigy Transferred
Employees and other Verigy Employees existing on the date hereof, and to the
knowledge of Agilent’s executive officers, any other claim filed as of the date
hereof in a court of law or government administrative agency, or asserted in a
demand letter received by Agilent from counsel, alleging discrimination or
wrongful termination regarding Verigy Transferred Employees and other Verigy
Employees existing on the date hereof.

 

ARTICLE X 

 

MISCELLANEOUS

 

10.1    Effect if Payroll, Transfer,
IPO and/or Distribution Does Not Occur.

 

Subject to
Section 10.13 of the Master Separation Agreement, if the Transfer, IPO
and/or Distribution does not occur, then all actions and events that are, under
this Agreement, to be taken or occur effective as of the Separation Date, IPO,
and/or Distribution Date, or otherwise in connection

 

19

 

with the Transfer, IPO and/or Distribution, shall
not be taken or occur except to the extent specifically agreed by Agilent and
Verigy.

 

10.2    Relationship of Parties.

 

Nothing in this Agreement
shall be deemed or construed by the parties or any third party as creating the
relationship of principal and agent, partnership or joint venture between the
Parties, the understanding and agreement being that no provision contained
herein, and no act of the Parties, shall be deemed to create any relationship
between the Parties other than the relationship set forth herein.

 

10.3    Affiliates.

 

Each of Agilent and Verigy
shall cause to be performed, and hereby guarantee the performance of, any and
all actions of the Agilent Group or the Verigy Group, respectively.

 

10.4    Entire Agreement.

 

This Agreement is an
integral part of, is subject to, and is to be interpreted consistently with,
the Master Separation Agreement, and the provisions of the Master Separation
Agreement that do not conflict with the provisions of this Agreement are hereby
incorporated by reference; in all other respects this Agreement constitutes the
entire agreement between the Parties with respect to the subject matter hereof
and supersedes all prior written and oral (and all contemporaneous oral)
agreements and understandings with respect to the express subject matter hereof.
The provisions of Article X of the Master Separation Agreement
(Miscellaneous) not otherwise expressly covered in this Article X are
hereby incorporated by reference into this Agreement.

 

10.5    Cooperation.

 

Agilent and Verigy agree to,
and to cause their Affiliates to, cooperate and use reasonable efforts to
promptly (a) comply with all requirements of this Agreement, ERISA, the
Code and other Laws which may be applicable to the matters addressed herein,
and (b) subject to applicable Law, provide each other with such
information reasonably requested by the other Party to assist the other Party
in administering its Plans and complying with applicable Law and regulations
and the terms of this Agreement, including for distribution purposes.

 

10.6    Third Party Beneficiaries.

 

This Agreement shall not
confer third-party beneficiary rights upon any Verigy Transferred Employee,
other Verigy Employee or any other Person. Nothing in this Agreement shall be
construed as giving to any Verigy Transferred Employee, other Verigy Employee
or other Person any legal or equitable right against Agilent or Verigy or their
respective Affiliates. This Agreement shall not constitute a contract of
employment and will not give any Verigy Transferred Employee or other Verigy
Employee a right to be retained in the employ of either Agilent or Verigy or
any of their respective Affiliates, unless the Verigy Transferred Employee or
other Verigy Employee would otherwise have that right under applicable Law.
With regard to any Verigy Transferred Employee or other Verigy Employee who was
an employee-at-will prior to becoming a Verigy Transferred Employee or other
Verigy Employee, this Agreement shall not be deemed to change that at-will
status in any way.

 

10.7    Non-Solicitation.

 

(a)   Agilent
agrees that for a period of two (2) years from and after the Separation
Date it shall not, and it shall cause each of its Affiliates not to (and shall
not encourage or assist any of its Affiliates to), without the prior written
consent of Verigy, directly or indirectly, solicit to hire (or cause or seek to
cause to leave the employ of Agilent or any of its Affiliates) (i) any
Verigy Transferred Employee or (ii) any other Verigy Employee, unless in
each case such Person ceased to be an employee of Verigy or its Affiliates
prior to such action by Agilent or any of its Affiliates, or, in the case of
such Person’s

 

20

 

voluntary termination of employment with Verigy or
any of its Affiliates, at least three (3) months prior to such action by
Agilent or any of its Affiliates to the extent allowable under Applicable Local
Law.

 

(b)   Verigy
agrees that for a period of two (2) years from and after the Separation
Date it shall not, and it shall cause its Affiliates not to (and shall not
encourage or assist any of its Affiliates to), without the prior written
consent of Agilent, directly or indirectly, solicit to hire (or cause or seek
to cause to leave the employ of Agilent or any if its Affiliates) any Agilent
Employee or any Person that it or they know to be employed by Agilent or any of
its Affiliates unless such Person ceased to be an employee of Agilent or such
Subsidiary prior to such action by Verigy or any of its Affiliates, or, in the
case of such Person’s voluntary termination of employment with Agilent or any
of its Affiliates, at least three (3) months prior to such action by
Verigy or any of its Affiliates to the extent allowable under Applicable Local
Law.

 

(c)   Notwithstanding
the foregoing, the restrictions set forth in Sections 10.7(a) and 10.7(b) shall
not apply to (i) bona fide public advertisements for employment placed by
any Party and not specifically targeted at the employees of any other Party, or
(ii) any employee who is not a manager or an individual contributor who is
engaged in the design of Semiconductor Test Systems or processes.
Section 10.7(a) shall not apply to any Person who is hired by Agilent or
any of its Affiliates (A) pursuant to any existing agreement with employee
representatives (such as a works council agreement) by which Agilent or any of
its Affiliates is bound or (B) as a result of actions required to be taken
by Agilent or any of its Affiliates in order to comply with Applicable Local
Law.

 

10.8    Breaches, Indemnification and
Termination.

 

Except as set forth in
Article 2 and Section 10.4 above, the sole and exclusive remedy for
any breach of a covenant or agreement set forth herein shall be as set forth in
Article IX of the Master Separation Agreement. More specifically, any
breach of a covenant or agreement set forth hereon shall be subject to the
limitations set forth in, and resolved in accordance with the terms of Articles
IX and X of the Master Separation Agreement. This Agreement shall terminate
upon termination of the Master Separation Agreement as set forth in
Article X of the Master Separation Agreement.

 

10.9    Conflict.

 

In the event of any conflict
between the provisions of this Agreement and any Local Asset Transfer
Agreement, the provisions of the Local Asset Transfer Agreement shall control.

 

[SIGNATURE PAGE TO FOLLOW]

 

21

 

IN WITNESS
WHEREOF, the Parties
have caused this Employee Matters Agreement to be duly executed as of the date
first above written. 

 

	
   

  	
   

  	
  AGILENT
  TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ John Eaton

  
	
   

  	
   

  	
   

  	
  Name: John Eaton

  
	
   

  	
   

  	
   

  	
  Title: Vice President,
  Corporate Development

  

 

 

[AGILENT’S SIGNATURE PAGE TO
THE EMPLOYEE MATTERS AGREEMENT—

VERIGY’S SIGNATURE PAGE FOLLOWS]

 

 

	
   

  	
   

  	
  VERIGY LTD.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Keith L. Barnes

  
	
   

  	
   

  	
   

  	
  Name: Keith L. Barnes

  
	
   

  	
   

  	
   

  	
  Title: President and Chief
  Executive Officer

  

 

 

[VERIGY’S SIGNATURE PAGE TO
THE EMPLOYEE MATTERS AGREEMENT]

 

 

Schedule
9.8

 

Phil Angelico, Plaintiff, v. Agilent Technologies,
Defendant, In Court of Common Pleas of Lehigh County, Pennsylvania, Civil
Division, No. 2005-C-3504

 

 

ANNEX
A—DEFINITIONS

 

“Agilent’s Actuary” shall mean Watson Wyatt or another
actuary or firm of actuaries determined by Agilent (and notified in writing to
Verigy) for the purposes of the Non-United States Benefit Plans.

 

“Agilent Employee” shall mean an individual who, on the
Distribution Date is, (i) either actively employed by, or on a leave of
absence from, the Agilent Group, (ii) employed in the United States and on
a paid or unpaid medical leave of absence, short-term disability, California
Paid Leave of Absence, FMLA leave or military leave of absence from the
Business on the Separation Date, (iii) is an employee of the Agilent Group
and has received a notice of termination from the Business in accordance with
the Agilent Workforce Management Program (iv) is an Agilent Terminated
Employee, or (v) is an employee or group of employees designated as
Agilent Employees by Agilent.

 

“Agilent Health Plans” shall mean all health plans, programs
and arrangements established by Agilent.

 

“Agilent Participation Discontinuance Date” shall mean, with
respect to an individual, the Separation Date or, with respect only to
individuals who were actively employed by, or on leave of absence from, the
Business or the Verigy Group prior to the Distribution Date, such later date on
which such individual is transferred to employment with Verigy (or a Verigy
Affiliate) in accordance with Section 2.1 hereof.

 

“Agilent Retirement Plans” shall mean all defined
contribution and defined benefit plans established by Agilent that are intended
to be qualified under Section 401(a) of the Code.

 

“Agilent RP” shall mean the Agilent Technologies, Inc.
Retirement Plan.

 

“Agilent Stock Value” shall mean the average of the high and
low per-share trading prices of Agilent common stock on the NYSE on the last
trading day before the Distribution Date.

 

“Agilent Terminated Employee” shall mean any individual who
is a former employee of the Agilent Group and who, on the Distribution Date, is
not a Verigy Transferred Employee.

 

“Agilent Workforce Management Program” shall mean any program
adopted by Agilent in writing from time to time for the purpose of reducing
Agilent’s workforce in accordance with its business needs.

 

“Applicable Local Law” shall mean the applicable laws of the
relevant jurisdiction (including any local registry or tax approval
requirements), and, to the extent relevant, the governing provisions of the
relevant Non-United States Retirement Benefit Plan.

 

“Automatic Transferred Employee” shall mean those Verigy
Transferred Employees where non-United States local employment laws, including
but not limited to the Transfer Regulations, provide for an automatic transfer
of employees upon the transfer of a business as a going concern and such
transfer occurs by operation of law.

 

“COBRA” shall mean the continuation coverage requirements for
“group health plans” under Title X of the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended, and as codified in Code
Section 4980B and ERISA Sections 601 through 608.

 

“ERISA” shall mean the Employee Retirement Income Security
Act of 1974, as amended.

 

“FMLA” shall mean the Family and Medical Leave Act of 1993,
as amended.

 

“FTO Policy” when immediately preceded by “Agilent” shall
mean the Agilent Flexible Time Off Policy. When immediately preceded by “Verigy”
shall mean the Verigy Flexible Time Off Policy to be established pursuant to
this Agreement.

 

“HIPAA” shall mean the Health Insurance Portability and
Accountability Act of 1996, as amended.

 

“IFRS” shall mean the International Financial Reporting
Standards.

 

“Interest Rate” shall mean the rate set forth in
Exhibit C hereto.

 

 

“Leave of Absence Programs” when immediately preceded by “Agilent,”
shall mean the personal, medical, military and FMLA leave offered from time to
time under the personnel policies and practices of Agilent. When immediately
preceded by “Verigy,” “Leave of Absence Programs” shall mean the leave of
absence programs to be established by Verigy pursuant to this Agreement.

 

“Material Feature” shall mean any feature of a Plan that
could reasonably be expected to be of material importance to the sponsoring
employer or the participants (or their dependents or beneficiaries) (in the
aggregate) of that Plan, which could include, depending on the type and purpose
of the particular Plan, the class or classes of employees eligible to
participate in such Plan, the nature, type, form, source, and level of benefits
provided under such Plan and the amount or level of contributions, if any,
required to be made by participants (or their dependents or beneficiaries) to
such Plan.

 

“Material Plans” shall mean the following plans:

 

France

 

Indemnités
de Fin de Carrière.

 

Germany

 

Pensionsplan der Agilent
Technologies Deutschland GmbH für alle Betriebsangehörigen mit Firmeneintritt
bis 31.12.1994 (Übernahme betriebliche Regelung Pensionsplan 1982—established
by Hewlett-Packard GmbH July 30, 1982—taken over by Agilent Technologies
November 1st, 1999)

 

Konzernbetriebsvereinbarung
zum Aufbauversorgungsplan für die Betriebsangehörigen mit Firmeneintritt ab
01.01.1995 zwischen Agilent Technologies Deutschland Holding GmbH und dem
Konzernbetriebsrats von Agilent Technologies in Deutschland (as of
February 1st, 2005)

 

Konzernbetriebsvereinbarung
zum Basisversorgungsplan zwischen Agilent Technologies Deutschland Holding GmbH
und dem Konzernbetriebsrats von Agilent Technologies in Deutschland (as of
February 1st, 2005)

 

Zusatzversorgungsplan der
Agilent Technologies Deutschland GmbH für alle Betriebsangehörigen mit
Firmeneintritt bis 31.12.1994

 

Korea

 

Retirement Severance Plan

 

Taiwan

 

Labor Standard Law Plan

 

“Members’ Voluntary Fund” shall mean a fund made up of the
voluntary contributions of Non-United States Transferred Employees, the
investment or moneys representing these contributions and any income derived
from them, under which fund the relevant members are entitled to benefits based
on the portion of the fund attributable to them, rather than based on earnings.

 

“Non-Material Plans” shall mean Agilent’s defined benefit
Non-United States Retirement Plans that are not Material Plans.

 

“Non-United States Plan” shall mean, when immediately
preceded by “Agilent,” a Plan maintained by a member of the Agilent Group
primarily for the benefit of its employees outside the United States. When
immediately preceded by “Verigy,” a Plan to be established by a member of the
Verigy Group primarily for the benefit of its employees outside the United
States.

 

“Non-United States Retirement Benefit” shall means any
pension, lump sum, gratuity or similar benefit provided or to be provided on
retirement or on death in respect of a Non-United States

 

 

Employee’s employment. This includes post-retirement
medical or dental benefits, post-retirement life insurance benefits, and
termination indemnities.

 

“Non-United States Retirement Plan” shall mean each plan,
scheme, fund or arrangement of Agilent and its Affiliates or within the
Business operated outside the United States which provides Non-United States
Retirement Benefits to or in respect of Non-United States Transferred
Employees, including any such plan, scheme, fund or arrangement which has not
been disclosed in the data room, but not including Agilent Plans or any other
plans, funds or arrangements operated within the United States; and not
including any industry-wide plan (which, for this purpose, shall mean any
multi-employer scheme, plan, fund or arrangement for providing Non-United
States Retirement Benefits in which non-associated employers may participate,
except in circumstances where temporary participation is permitted following a
business sale) in which Agilent participates in respect of Non-United States
Transferred Employees.

 

“Non-United States Transferred Employee” means any individual
employed other than in the United States by Agilent or any Subsidiary of
Agilent or within the Business (a) who shall become an employee of Verigy
with effect from the Separation Date as a consequence of this Agreement,
(b) in respect of whose past service benefits under any Non-United States
Retirement Plan a transfer is made or to be made under this Agreement, and,
(c) where such transfer is subject to the consent of the relevant
Non-United States Transferred Employee, who has given such consent. In Germany,
“Non-United States Transferred Employee” shall also mean any individual
employed by any Subsidiary of Agilent in Germany who is designated to transfer
to Flextronics International Germany GmbH & Co Kg on or about the
Separation Date and who effectively objects to the transfer of his/her
employment to Flextronics.

 

“Payment Date” shall mean each transfer to be made in respect
to the Non-United States pension Plans, the due date for such payment of the
relevant Transfer Amount (it is anticipated that the Payment Date for the
Material Plan in France will be November 1, 2006).

 

“Plan” shall mean any plan, scheme, policy, program, payroll
practice, arrangement, contract, trust, insurance policy or any agreement or
funding vehicle providing compensation or benefits.

 

“QDRO” shall mean a domestic relations order which qualifies
under Code Section 414(p) and ERISA Section 206(d) and which creates
or recognizes an alternate payee’s right to, or assigns to an alternate payee,
all or a portion of the benefits payable to a participant under any of the
Agilent Retirement Plans.

 

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

 

“Ratio” shall mean the ratio determined by dividing the
Agilent Stock Value by the Verigy Stock Value.

 

“Transfer Date” shall mean the effective date of the transfer
of the Non-United States Retirement Benefits from the relevant Non-United
States Retirement Plan to a Verigy Plan.

 

“Transfer Regulations” means the Council Directive 77/187/EEC
of 14 February 1977 on the approximation of the laws of the Member States
relating to the safeguarding of employees’ rights in the event of transfers of
undertakings, businesses or parts of businesses (and its amendments)
(collectively referred to as “Acquired
Rights Directive”) and the legislation and regulations of any EU
Member State implementing such Acquired Rights Directive.

 

“Verigy’s Actuary” shall mean the actuary or firm of
actuaries determined by Verigy (and notified in writing to Agilent) for the
purposes of the Non-United States Benefit Plans.

 

“Verigy Employee” shall mean any individual who is
(a) either actively employed by, or on a leave of absence from the
Business on the Separation Date not described in Section 2.1(c) hereof,

 

 

(b) actively employed by the Agilent Group
that, at any time after the Separation Date and before the Distribution Date,
moves to the employ of the Verigy Group from the employ of the Agilent Group in
accordance with Section 2.1(b) or (c) hereof, (c) a Verigy Terminated
Employee, (d) employed by the Verigy Group, (e) any other employee or
group of employees designated as Verigy Employees (as of any specified date
prior to the Distribution Date) by Agilent in accordance with
Section 2.1(b) or (c) hereof, or (f) an alternate payee under a
QDRO, alternate recipient under a QMCSO, beneficiary, covered dependent, or
qualified beneficiary (as such term is defined under COBRA), in each case, of
an employee or former employee, described in clauses (a) through
(f) above with respect to that employee’s or former employee’s benefit
under the applicable Plan(s) (unless specified otherwise in this Agreement,
such an alternate payee, alternate recipient, beneficiary, covered dependent,
or qualified beneficiary shall not otherwise be considered a Verigy Employee
with respect to any benefits he or she accrues or accrued under any applicable
Plan(s), unless he or she is a Verigy Employee by virtue of clauses
(a) through (f) above).

 

“Verigy Plan” shall mean any scheme, plan, fund or
arrangement (other than those within the United States) of Verigy providing
Non-US Retirement Benefits and under which Verigy proposes to provide Non-US
Retirement Benefits for Non-US Transferred Employees.

 

“Verigy Stock Value” shall mean the average of the high and
low per-share trading prices of Verigy common stock on the NASDAQ National
Market on the Distribution Date.

 

“Verigy Terminated Employee” shall mean any individual who is
(a) a former employee of the Agilent Group who was terminated from the
Business on or before the Separation Date or (b) a former employee of the
Verigy Group. Notwithstanding the foregoing, “Verigy Terminated Employee” shall
not, unless otherwise expressly provided to the contrary in this Agreement,
include (x) an individual who, on the Separation Date is (i) either
actively employed by, or on a leave of absence from, the Agilent Group,
(ii) employed in the United States and on a paid or unpaid medical leave
of absence, short-term disability, California Paid Leave of Absence, FMLA leave
or military leave of absence from the Business on the Separation Date,
(iii) is an employee of the Agilent Group and has received a notice of
termination from the Business in accordance with the Agilent Workforce
Management Program, (iv) is an Agilent Terminated Employee, or (v) is
an employee or group of employees designated by Agilent as employee(s) of the
Agilent Group, or (y) an individual who is otherwise a Verigy Terminated
Employee, but who is subsequently employed by the Agilent Group prior to the
Separation Date.

 

“Verigy Transferred Employee” shall mean any individual who,
as of the Distribution Date, is (a) either actively employed by, or on a
personal leave of absence from the Verigy Group, (b) a Verigy Terminated
Employee, (c) an alternate payee under a QDRO, alternate recipient under a
QMCSO, beneficiary, covered dependent, or qualified beneficiary (as such term
is defined under COBRA), in each case, of an employee or former employee,
described in clauses (a) or (b) above with respect to that employee’s
or former employee’s benefit under the applicable Plan(s) (unless specified
otherwise in this Agreement, such an alternate payee, alternate recipient,
beneficiary, covered dependent, or qualified beneficiary shall not otherwise be
considered a Verigy Transferred Employee with respect to any benefits he or she
accrues or accrued under any applicable Plan(s), unless he or she is a Verigy
Transferred Employee by virtue of clauses (a) or (b) above), or
(d) an employee or group of employees designated by Agilent as Verigy
Transferred Employees in accordance with Section 2.1(b) or
(c) hereof. An individual may be a Verigy Transferred Employee pursuant to
this Section regardless of whether such individual is, as of the Distribution
Date, alive, actively employed, on a temporary leave of absence from active
employment, on layoff, terminated from employment, retired or on any other type
of employment or post-employment status relative to an Agilent or Verigy Plan,
and regardless of whether, as of the Distribution Date, such individual is then
receiving any benefits from any Agilent or Verigy Plan.

 

 

EXHIBIT A

 

Verigy U.S. Inc. 401(k) Plan

Verigy Ltd. 2006 Employee Shares Purchase
Program

Verigy U.S. Deferred Compensation Program

Verigy Results Bonus Program

Verigy Pay for Results Program

Verigy Ltd. 2006 Equity Incentive Plan

Aetna Open Choice (PPO)—medical plan

Aetna Traditional Choice—out of area medical plan

Kaiser Permanente HMO (Northern and Southern
California)—medical plan

EyeMed Access Plan H—vision plan

Aetna Dental Preferred Provider Organization
(PPO)—dental plan

Aetna HealthFund HSA—Health Savings Account

MHN Employee Assistance Program—EAP

Principal Life Insurance: Group Term Life Insurance

Principal Life Insurance: AD&D Insurance

Principal Life Insurance: Group Voluntary Term Life
Insurance (Employee and Spouse)

Principal Life Insurance: Group Voluntary Term
AD&D Insurance (Employee and Spouse)

Principal Life Insurance: Group Voluntary Term Child
Insurance

Principal Life Insurance: Group Long Term Disability
Insurance (Core and Buy Up)

Principal Life Insurance: Group Short Term
Disability Insurance

Verigy Retiree Medical Account

Health Care Spending Plan (Ceridian)

Dependent Care Spending Plan (Ceridian)

Business Travel Accident Insurance (Chubb)

Travel Medical Insurance (Cigna International)

Medical & Security Assistance (ISOS)

 

 

EXHIBIT B 

 

	
   

  	
   

  	
  Name of Plan

  	
   

  	
  Type of Plan

  
	
  Canada

  	
   

  	
  Pension Plan for Employees
  of Agilent Technologies Canada Inc.

  	
   

  	
  DC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  China

  	
   

  	
  Agilent Supplementary
  Pension Pan

  	
   

  	
  DC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  France

  	
   

  	
  Termination (Retirement)
  Indemnities (IFC)

  	
   

  	
  DB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Pension Plan for “Tranche
  C” (Art 83)

  	
   

  	
  DC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Company Saving Plan (PEE)

  	
   

  	
  DC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Germany

  	
   

  	
  Pre 95 old Pension Plan
  (PPL)

  	
   

  	
  DB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Post 95 Basic Pension Plan
  (BVP)

  	
   

  	
  Cash Balance

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Post 95 Additional Pension
  Plan (AVP)

  	
   

  	
  Cash Balance

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Supplementary Support Plan
  (ZVP)

  	
   

  	
  Cash Balance

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Italy

  	
   

  	
  Retirement Plan for
  Dipendenti

  	
   

  	
  DC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Retirement Plan for
  Dirigenti

  	
   

  	
  DC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Termination Indemnities

  	
   

  	
  DB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Japan

  	
   

  	
  Agilent Technologies
  Employee Pension Fund

  	
   

  	
  DB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Agilent Technologies
  Employee Pension Fund

  	
   

  	
  DB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Agilent Technologies
  Employee Pension Fund

  	
   

  	
  DB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Korea

  	
   

  	
  Retirement Severance Plan

  	
   

  	
  DB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Malaysia,
  Kuala Lumpur

  	
   

  	
  Agilent Technologies Sales
  (Malaysia) Retirement Plan

  	
   

  	
  DB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Malaysia, Penang

  	
   

  	
  EPF Top Up plan

  	
   

  	
  DC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Singapore

  	
   

  	
  none

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Taiwan

  	
   

  	
  Taiwan Labor Standard Law
  Plan

  	
   

  	
  DB

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Agilent Leaving Service
  Benefit

  	
   

  	
  DC

  

 

 

EXHIBIT C

 

Agilent
Technologies

FAS 87 Actuarial Valuation

Actuarial Assumptions as at 5/31/2006 

 

	
   

  	
   

  	
  France

  	
   

  	
  Germany

  	
   

  	
  Korea

  	
   

  	
  Taiwan

  
	
   

  	
   

  	
  Retirement

  Indemnity

  	
   

  	
  PPL

  	
   

  	
  ZVP

  	
   

  	
  BVP

  	
   

  	
  AVP

  	
   

  	
  Pension

  Plan

  	
   

  	
  Pension

  Plan

  
	
  Discount rate

  	
   

  	
  4.75%

  	
   

  	
  4.75%

  	
   

  	
  4.75%

  	
   

  	
  4.75%

  	
   

  	
  4.75%

  	
   

  	
  6.00%

  	
   

  	
  3.00%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Salary increase

  	
   

  	
  2.50%

  	
   

  	
  3.00%

  	
   

  	
  N/A

  	
   

  	
  3.00%

  	
   

  	
  N/A

  	
   

  	
  5.00%

  	
   

  	
  3.00%

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Social Security Contribution Ceiling increase

  	
   

  	
  N/A

  	
   

  	
  2.00%

  	
   

  	
  N/A

  	
   

  	
  2.00%

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pension increases

  	
   

  	
  N/A

  	
   

  	
  1.75%

  	
   

  	
  N/A

  	
   

  	
  1.75%

  	
   

  	
  1.75%

  	
   

  	
  N/A

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Retirement age

  	
   

  	
  Age 63, assumed
  voluntary

  	
   

  	
  Age 62

  	
   

  	
  Age 63

  	
   

  	
  Age 62

  	
   

  	
  Age 62

  	
   

  	
  Age 60

  	
   

  	
  Age 60, if eligible
  before age 60, only assumed at 3% of population

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Morality tables

  	
   

  	
  TD/TV 99-01

  	
   

  	
  Heubeck 1998

  	
   

  	
  Heubeck 1998

  	
   

  	
  Heubeck 1998

  	
   

  	
  Heubeck 1998

  	
   

  	
  1983 GAM, set back 6
  years for females

  	
   

  	
  Taiwan Standard Ordinary
  Experience Mortality Table 2002

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Disability rates

  	
   

  	
  None

  	
   

  	
  80% of Heubeck 1998

  	
   

  	
  80% of Heubeck 1998

  	
   

  	
  80% of Heubeck 1998

  	
   

  	
  80% of Heubeck 1998

  	
   

  	
  N/A

  	
   

  	
  10% of mortality

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Turnover rates

  	
   

  	
  5% up to age 50

  	
   

  	
  Agilent tables

  	
   

  	
  Agilent tables

  	
   

  	
  Agilent tables

  	
   

  	
  Agilent tables

  	
   

  	
  Agilent table

  	
   

  	
  Agilent table

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Social charges

  	
   

  	
  45% in case of voluntary
  retirement

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Payment form

  	
   

  	
  Lump sum

  	
   

  	
  Pension

  	
   

  	
  Pension

  	
   

  	
  Pension

  	
   

  	
  Pension

  	
   

  	
  Lump sum

  	
   

  	
  Lump sum

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PPL/BVP other:

  	
   

  	
   

  	
   

  	
  New works’ council agreement: Employees under both
  the PPL and the BVP accrue additional BVP entitlements based on 6.7%
  additional contributions. The additional 6.7% are calculated on the basis of
  pensionable pay under each plan, which currently is 13 times monthly pay for
  BVP members. For PPL employees retiring before October 31, 2010 because
  of reaching the retirement age, accrued BVP entitlements forfeit and in lieu
  thereof, pensionable salary under the PPL is increased by 4%.

  	
   

  	
   

  	
   

  	
   

  

 

Agilent Turnover tables: 

 

	
  Age

  	
   

  	
  Males

  	
   

  	
  Females

  	
   

  	
  All

  	
   

  	
  All

  	
   

  
	
  20

  	
   

  	
  19.50

  	
  %

  	
  25.00

  	
  %

  	
  10.00

  	
  %

  	
  15.00

  	
  %

  
	
  25

  	
   

  	
  14.25

  	
  %

  	
  19.00

  	
  %

  	
  8.00

  	
  %

  	
  15.00

  	
  %

  
	
  30

  	
   

  	
  9.00

  	
  %

  	
  13.00

  	
  %

  	
  6.00

  	
  %

  	
  12.00

  	
  %

  
	
  35

  	
   

  	
  5.75

  	
  %

  	
  7.75

  	
  %

  	
  4.00

  	
  %

  	
  10.00

  	
  %

  
	
  40

  	
   

  	
  2.50

  	
  %

  	
  2.50

  	
  %

  	
  2.00

  	
  %

  	
  7.00

  	
  %

  
	
  45

  	
   

  	
  1.25

  	
  %

  	
  0.00

  	
  %

  	
  1.00

  	
  %

  	
  5.00

  	
  %

  
	
  50

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  2.00

  	
  %

  
	
  >55

  	
   

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  	
  0.00

  	
  %

  

 

 

EMPLOYEE MATTERS AGREEMENT between AGILENT
TECHNOLOGIES, INC. and VERIGY LTD. Dated as of June 1, 2006

 

Table of Contents

 

	
  EMPLOYEE MATTERS AGREEMENT

  	
   

  
	
  W I T N E S S E T H

  	
   

  
	
  ARTICLE I DEFINITIONS AND
  RULES OF CONSTRUCTION

  	
   

  
	
  ARTICLE II GENERAL
  PRINCIPLES

  	
   

  
	
  ARTICLE III RETIREMENT
  PLANS

  	
   

  
	
  ARTICLE IV NON-QUALIFIED
  AND OTHER PLANS

  	
   

  
	
  ARTICLE V HEALTH AND
  WELFARE PLANS

  	
   

  
	
  ARTICLE VI EQUITY AND
  OTHER COMPENSATION

  	
   

  
	
  ARTICLE VII FRINGE AND
  OTHER BENEFITS

  	
   

  
	
  ARTICLE VIII
  ADMINISTRATIVE PROVISIONS

  	
   

  
	
  ARTICLE IX
  EMPLOYMENT-RELATED MATTERS

  	
   

  
	
  ARTICLE X MISCELLANEOUS

  	
   

  
	
  Schedule 9.8

  	
   

  
	
  EXHIBIT A

  	
   

  
	
  EXHIBIT B

  	
   

  
	
  EXHIBIT C

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