Benefits in Brief. For Employees in Spain

Benefits in Brief For Employees in Spain

Work Environment & Tools... 3 Collective Bargaining Agreement... 3 Office... 3 Home Office allowance... 3 Cafeteria/ Meal Vouchers... 3 Credit Card/Concur... 3 Hardware/Software Equipment... 4 Phone/Smartphone... 4 Company Car... 4 Compensation Programs... 6 Variable Pay - KVP/ KRB / IPB... 6 Equity Programs... 7 ESPP... 7 RSUs... 7 Benefits Programs... 7 Medical/Dental/Vision Plan... 7 Life & Accident Insurance... 10 Disability Insurance... 10 Widow(er) & Orphan Insurance... 10 Business Travel Insurance... 10 Retirement... 11 Work Time... 11 Other Benefits... 12 Addendums... 13 Contacts:... 13 Actual numbers (2014):... 14

Benefits are an important part of your total compensation, and we re proud to offer a comprehensive, balanced, and competitive benefits package. Keysight s programs address the immediate needs that you and your family may have, such as health coverage, as well as your long-term needs, such as saving for retirement. In addition, Keysight offers programs that acknowledge the need, and importance, of having time away from work. We have prepared this brochure to help you and your family understand some of the policies and benefits that affect your employment at Keysight or any other Keysight legal entity in Spain. Work Environment & Tools Keysight has a number of programs and policies designed to help employees in its diverse work force manage their work and personal lives while meeting company objectives for business success. Collective Bargaining Agreement Keysight is covered by the Collective Bargaining Agreements (CBA) of Madrid, Bilbao, Málaga and Barcelona; These Branch agreements dictate a lot of HR programs such as vacation days, minimum salaries Office Keysight has some offices, some business centers and employees who are home based. The decision as to whether an employee can work from home full-time should be made jointly between the individual employee and his/her manager, with the approval of Keysight Executive and of the local HR manager. It is the manager s responsibility to ensure that the home provides a suitable working environment. Home Office allowance The full-time Spain home-office workers living more than 100 kms from the nearest Keysight office are entitled to receive a monthly allowance refer to Addendum for maximum monthly amount. Employees with occasional work-at-home requirements or occasional work-at-home for personal convenience are not entitled to the home office allowance but can be provided by Keysight with secure connection and calling cards depending on the business needs. Physical connection and Internet connection, ADSL must be provided by the employee. Cafeteria/ Meal Vouchers Keysight offers a subsidy for lunch through the Lunch Card, subsidized menu or Ticket Restaurant. On a monthly basis, WPS delivers Ticket Restaurants or charge the Lunch Card of all Full-Time employees for maximum 19 days. In case the employee has company car, then the amount is adjusted to a total of 17 days. Part-time employees working less than 6 hours a day will be eligible to the subsidy for maximum 10 days per month. The Lunch Card can be used in all restaurants where Mastercard is accepted. Credit Card/Concur Frequent travelers and employees with regular business expenses are entitled to receive a company credit card provided by CitiBank (called OneCard). It is the manager responsibility to approve requests for this card. Employees are required to adhere

to Keysight policies and their organizations budget/spending plan. All business expenses must be submitted through CONCUR in a timely manner with receipts. Hardware/Software Equipment Managers of Keysight Technologies' employees and ETWs will determine if a Personal Computer is required to fulfill an individual's job requirements. The type of computer will be determined by the business requirement and by corporate guidelines. Hardware equipment (PC, printer, storage device, fax...) must be purchased through POINTS. Personal PCs, printers are not supported. Personal software and/or hardware cannot be installed on Keysight-owned equipment. Phone/Smartphone Eligibility to receive a company mobile phone and/or charges reimbursable is based on core business need and individual job responsibilities. Managers are required to approve requests for these devices. Typical eligible employees are the Field customer facing: sales, service and support and the Executives. Company Car Eligibility: a car as tool is granted to employees with customer facing jobs. Car as perq is granted to managers with a Senior Manager job level and above. Customer facing jobs are: Sales, Sales Mgmt, Consulting, Consulting Mgmt, Program/Project Mgmt, Pre&Post Sales AE, Field Service Engineer, Service Tech (on-site), Sales/Marketing/Business Dev, Sales/Marketing/Business Dev Mgmt, Support Eng Mgmt and Service & Support Mgmt. Each job level refers to one category: Car Category Cat A Cat B Cat C Job levels PM Senior, Executive Mgr, Sales Integrating Mgr ICB Master, PM Non-Sales Integrating Mgr, PM Operating Mgr ICB Advanced, Expert, PM Sup Cat D ICA Entry, Career, Expert, Master, ICB Entry, Intermediate Employees eligible to a company car will have the possibility to choose between different European car models defined by WPS. All lease contracts are run through Fleet Logistics International and are concluded for 48 months or 125000 kms. Private use: Private use is authorized, but the car is mainly allocated for business use. Only Keysight employees may drive the vehicle. Employee s spouse and children over 25 years old with valid driving license are also allowed to drive the company car. Driving by others is allowed only in case of fatigue of usual driver (and provided that the Keysight employee is in the car), or in case of emergency. Any driver must be in possession of a valid driving license. Reimbursement of business use for personal car: Keysight employees who use their private car for company purposes will be reimbursed through CONCUR based on kilometers. Please refer to Addendum for reimbursement rate. As Spain Tax Legislation currently limits the tax-free reimbursement, the employee will have to declare this excess in his annual Income Tax Declaration (IRPF).

Tax consequences for employee: Spain Tax Law requires the employees to perform some reimbursement to the company for the private usage of company cars. Employees who have the car because of Customer Facing activities must declare every month the number of kms for private usage, and reimburse the company via CONCUR. Please refer to addendum for reimbursement rate Employees who have the car due to their position in the company (car as perq) have the choice: - Same as Customer Facing jobs - No report of private usage, but no fuel expense reimbursement. Employees are liable for any fees resulting from warnings, fines, or penalties for traffic violations Fuel reimbursement: Employees with Customer Facing jobs and those who opt for the same tax option are eligible to use their OneCard (Citibank Business Credit Card) for the business fuel expenses of their company car and are reimbursed through CONCUR. More details can be found on the Car Fleet Policy of the Keysight Spain intranet.

Compensation Programs Variable Pay - KVP/ KRB / IPB Keysight variable pay provides an opportunity for eligible employees to share in company and business success. Variable pay (KVP) includes the Keysight Results Bonus (KRB) and Individual Performance Bonus (IPB) programs. The KVP Payout is determined by the Keysight Performance Metric (KPM). The KPM is the combination of two metrics: the Operating Marging % and the Revenue Growth %. At target KPM (33%), the total variable pay funding level is 10% of eligible pay for the half 70% of variable pay funding for the Keysight Results Bonus (KRB) is paid to all eligible employees. 30% of variable pay funds the Individual Performance Bonus (IPB) program. IPB is distributed to employees based on individual performance, at managers discretion. Payouts are based on results for each fiscal half ending April 30 and October 31. Payouts are announced each May and November, with actual payouts occurring in June and December. Keysight Results Bonus payouts will differ based on: The employee's pay The amount of time an employee is eligible for the program during the six months associated with the payout. Employees must be active the last day of the fiscal half period to be eligible. Employees on LOA with reserved job are also eligible to receive the proportional part according to the days they were active in the period.

Equity Programs ESPP Keysight s Employee Stock Purchase Plan (ESPP) is a voluntary benefit that offers regular employees the opportunity to purchase Keysight common stock at a 15% discount through payroll deductions. There are two 6-month Purchase Periods offered annually: May 1st to October 31st, and November 1st to April 30th. Employees may elect to contribute 1% to 10% of eligible pay (base salary + actual commissions) to a maximum of $25,000 USD per calendar year. Contributions are accumulated via an after-tax payroll deduction for each 6-month Purchase Period and then applied toward the purchase of Keysight common stock at the end of the Purchase Period. On the last trading day of the Purchase Period, referred to as the Purchase Date, a 15% discount is applied to the closing price of Keysight common stock to determine the discounted Purchase Price. Upon the purchase, ESPP shares will be deposited into a broker account (Fidelity) where employees may keep or sell their shares at any time. RSUs A restricted stock unit (RSU) is an award agreement between the Company and an employee to issue shares of company stock at the time the award vests. No shares are delivered until the employee satisfies the vesting schedule. The standard corporate vesting schedule is 25% per year over 4 years. All levels of employees are eligible to receive RSUs throughout the year at the discretion of their manager. At Annual Rewards, RSU eligibility is at the ICB Advanced job level and above. Net shares are issued at the time of vesting and deposited into the employee s Fidelity account (unless the employee has explicitly declined them), with associated taxes processed through payroll. Benefits Programs Medical/Dental The Coverage under Keysight s medical/dental/vision plan is designed to help employees pay for services to maintain a healthy lifestyle. All regular employees, their eligible dependents (spouse, partner and dependent children up to age 26) and early-retirees are eligible for medical/dental/vision coverage starting on their first day of employment on top of the public medical system (Spain Social Security). Contributions: Keysight covers the cost of the medical insurance for the employee and for an additional beneficiary (spouse, partner or children up to 26 years old). If the employee chooses to include more additional beneficiaries (also restricted to spouse, partner or children), he/she must personally cover the cost, which will be deducted monthly from his/her salary. Refer to the addendum section for actual premiums. Keysight Technologies offers all employees the possibility to choose between one of the two medical insurance options: ADESLAS: Refund and List of agreed doctors and centers SANITAS: List of agreed doctors and centers Please note that if the employee, once enrolled to one of the medical insurances, decides to change to the other option he / she will have to wait a minimum period of 2 years before changing back.

ADESLAS Basic Coverage Summary: On presentation of the expenses invoices, the insurance Company reimburses 90% of the medical and hospital expenses (80% in foreign countries) up to a limit of 200.000 Euros per insured person and per year and through agreed doctors and centers, the employee can receive medical and hospital care free of charge, up to a limit of 200.000 Euros per year and per insured person. Partial reimbursement limits: MEDICAL Expenses Medical & Hospitalization GUARANTEED MAXIMUM ANNUAL CAPITAL Hospitable Expenses Hospitable Stay Hospitable Stay in UVI/UCI Surgery & Anesthesia Childbirth Out-Patient Assistance Primary Assistance (for consultation) Specialized Assistance (for consultation) Ground Ambulance Odontology Chiropody Psychology Prostheses ADESLAS 90% for Spain expenses & 80 % for expenses in foreign countries 200.000 EUR. 300 EUR./ day 650 EUR./ day Groups 0, 1 y 2: 625 Groups: 3 y 4: 2,750 Groups 5,6 y 7: 6,000 Groups 8: 10,500 3.200 EUR 70 EUR. 150 EUR. 750 EUR. Basic coverage (first aid, cleanings & extractions) with an annual limit of 365 EUR. Max 6 sessions Max 20 sessions or 40 for malnutrition/year and limit 750 /year Max 4.500EUR. Physiotherapy Max 750 Travel Assistance (repatriation, urgency expenses, etc...) Medicines Primary Health Care Medecine Emergencies - Medical expenses, surgical, medicines & hospitalization, up to a limit of 12,000 EUR /person/year. - Sanitary repatriation. - Odontological urgency expenses up to an annual limit of 240 EUR. 90% of expenses up to an annual limit of 300 EUR General medicine Pediatrician and child care specialist Nursing services National emergency information

ADESLAS Optional Coverage Summary : At his own expenses, the employee may contract a DENTAL COVER. This option has to be contracted for the entire family (spouse/partner and children) DENTAL OPTIONAL: Refund of 50% of expenses up to 900 EUR per year SANITAS Basic Coverage Summary : Seguro MULTISANITAS is a Comprehensive Health Service which includes all levels of care from General Medicine to the most advanced diagnosis methods or surgical techniques. In order to request any service, the member should present the SANITAS card and the last premium payment receipt, as well as any other form of identification which may be necessary (Identification Card, Residence Card etc). Every quarter, SANITAS will charge to the employee s receipt the established amount according to the employee s particular conditions, for each of the times the card was used. Employees can receive medical assistance in all of the cities where SANITAS has an office or a list of agreed doctors. The basic coverage includes: Primary attention Specialists doctors Consulting doctors Hospitable Stay Emergencies Preventive medicine Program Travel assistance Medical & Hospitalization Assistance You can freely choose the specialist from the list There is not free access to see certain specialists. The so-called Consulting Doctors (plastic surgeons, heart surgeons, vascular surgeons etc.) Medical Surgical Programmed or urgent National emergency information Children Health Program Family Planning Prevention of breast cancer and cervical cancer Prevention of coronary risk Early detection of cancer of the colon-rectum Assistance abroad SANITAS Charges / Copagos : On a quarterly basis, and for every medical act, SANITAS will charge the employee s bank account for the cost named copago as follows: 1 ATS, rehabilitation / physical therapy, General Medicine, general Pediatrics and child care, Sanitas 24 hours 3,90 Prescribed respiratory treatment (oxygen therapy, ventiloterapia, CPAP and aerosol therapy) 5,20 Hospital admissions, Ambulances, household emergencies, emergency hospital (door): 5.20 progressive co-payment of 10.40 Euros from the fourth visit in each quarter. 11,70 Psychology, Intraocular lens. 12 Antenatal preparation module 3,90 Other services

SANITAS Optional Coverage Summary: At his own expenses, the employee may contract a DENTAL COVER. This option has to be contracted for the entire family (spouse/partner and children) Life & Accident Insurance Life insurance is designed to provide employee with coverage in the event of accident, disability or death. Coverage is effective on the first day of employment and provides the beneficiary(ies) with a lump sum of the employee s annual gross salary with a minimum coverage of 60 000 EUROS, in case of death and of permanent absolute disability, as a result of an accident or illness. Disability Insurance This insurance provides the employee and his/her family with financial security in the case of permanent absolute disability during his/her working life (up to 65 years). Eligibility: All Keysight employees whose salary is above the SSC Benefit: a pension for an amount equal to 80% of the difference between the employee s computable salary (average of the annual effective salaries of the last two years) and his/her Social Security rate (in the case of sales staff, the salary will be considered as the total of the basic salary plus 100% goal commissions). This pension will be subsidized by the Pensions Plan at age 65. Widow(er) & Orphan Insurance Eligibility: All Keysight employees whose salary is above the SSC. Widow(er) Benefit: The widow(er) s Benefit is a life pension, which is equivalent to 60% of the difference between the employee s computable salary (annual gross salary) and the Social Security contribution rate, in favour of the widow/er of the employee deceased due to an accident or natural death. Orphan s Benefit: Each child receives a pension, up to age 21, 15% of the difference between the employee s computable salary and the Social Security contribution rate. In the case of the loss of both parents, the pension will be 30% of the salary. The total of the widow(er) s and orphan s pension shall not exceed the difference between the last salary of the employee and the Social Security contribution rate. These pensions are subsidized by Pension Plan at age 65 Business Travel Insurance The business travel accident insurance provides employees with coverage if they die or become permanently disabled due to an accident while on Keysight company business. Benefit paid to beneficiary(ies) is up to 4 times employee s annual salary with a maximum of $2,000,000 for death benefit. The business travel health insurance provides employees with coverage when traveling on Keysight business or at the expense of Keysight outside their country of residence or permanent assignment. The plan covers emergency and urgent required medical care while on Keysight business. Employee does not need to submit bills to home or other insurance carrier first. Maximum benefit is $200,000 per occurrence

Retirement The Keysight Spain retirement system is composed of 2 pillars: The Social Security system A company sponsored plan (DC plan) The Keysight DC sponsored plan is designed to help employees prepare for financial needs associated with retirement. Membership in this pension scheme is voluntary for all employees with earning above the SSC. Pension Plan participation requires employees have at least 2 years service in Keysight. Furthermore, there is the possibility for retroactive contributions in the year in which the 2 years service are acquired. Contributions: Employee s contribution shall be either 1% or 3% of the difference between the salary and the SS Maximum Contribution Base, Keysight contribution will be either of 8% or 10% respectively. Employees may change the contribution % in January and July. Benefits at retirement or early retirement age: Lump sum resulting from the accumulated contributions and investment earnings is converted into an annuity. Spouse benefit in case of death of the employee: Death in service: 60% of the annuity accrued at the time of the death Death in payment: 60% of the actual annuity Work Time Working hours: 40 hours per week corresponding to the hours per year established by the different CBA applicable. Summer continuous working time July 1st to August 31st only for Madrid, Bilbao and sales organization of Barcelona. Vacation/Holidays: Employees earn legal vacation days from the date of hire. For a complete year (January 1 December 31), employees earn 24 vacation days. For years of seniority in the company the employee will be entitled to 1 additional vacation day according to the following table: Years of Service 5 10 15 20 30 40 Seniority Days 1 2 3 4 5 6 Total Vac. Days 25 26 27 28 29 30 The holidays can only be used during the year of their accrual. Holidays not taken during the calendar year cannot be accumulated for the following year without manager s approval. Public Holidays: Keysight in Spain has 10 public paid holidays per calendar year plus some additional days depending on location. All sites: New Year, Epiphany, Good Friday, Labor Day, Assumption Day, Columbus Day, All Saints Day, Constitution Day, Immaculate Conception, Christmas Day.

Maternity leave: All employees are eligible to 16 weeks ordinary maternity leave (OML) plus 2 additional weeks per child in case of multiple births OR in large families OR when the mother or the newborn has a disability OR in one-parent families. The same arrangements apply to adoption. Paternity leave: All employees are eligible to 2 natural days or 12 working hours covered by Keysight starting on the birth date and 13 days paternity leave covered by the Social Security (20 days for large families OR with any disabled member) starting on the birth date, during the maternity leave or immediately right after. Extendable in the case of multiple births, adoption or fostering by 2 more days per child after the first one. Premature Birth: Father or mother can be absent from work during one hour or reduce his/her working day time in 2 hours (with the corresponding salary reduction) Breastfeeding: Father or mother can be absent from work an hour per day for breastfeeding or bottle-feeding, which may be split into 2 fractions of half an hour. The employee may freely replace this right with an hour reduction in the working schedule at the beginning or at the end of the work day for the same purpose or may cumulate the time into full working days. Parental leave of absence: If an employee applies for parental leave of absence this request must be admitted by Keysight. Parental leave of absence can be granted until the 3rd birthday of the child and it is not paid. Serious Illness or Operation of a Family Member: 2 natural days. Up to 5 natural days if trip is required. Funeral: In case of death of spouse/partner/child/ father/ mother/ father in law / mother in law: 3 natural days of leave will be offered, up to 6 natural days if trip is required. In case of death of sister /brother /grandparents /grandchildren/ brother in law / sister in law: 2 natural days will be offered, up to 5 natural days if trip is required. Marriage: In case of marriage of the employee 15 natural days of leave are offered since the wedding day. For more than 5 years seniority the employee will be entitled to 20 natural days. In case of marriage of the employee s child / father / mother / sister / brother: 1 natural day of leave is offered. Move: 1 natural day Standby scheme Standby is understood to mean the time an employee has to remain available for performing activities outside of normal working hours. During this standby period, it should be possible to reach the employee by telephone and to require his intervention. Compensation: To be calculated according to different parameters depending on estimated workload, availability requirements, etc Other Benefits Kindergarten: With the purpose of supporting work life balance all employees whose children are younger than 6 years at December 31st will receive an annual Kindergarten allowance per child with the January payroll of the following year. Gym Funding: Employees enrolled to a gym/ fitness club will get a reimbursement twice per year related to the month of enrollment. Keysight Flex: This is a program where the employee can voluntarily agree to a reduction in salary with a maximum of a 20%, this amount would then be used by Keysight to buy non-taxable benefits/products on the employee behalf. The no withholding tax is collected on this portion. In parallel the withholding rate applicable could be reduced to be adjusted to the real monetary incomes. An external vendor (Mercer) will undertake the management of the overall program.

Addendums Contacts : LUNCH CARD (MASTERCARD): Web www.edenred.es/ Keysight email: lunchvouchers.keysight@keysight.com Tel in case of loose of Lunch Card: 902256652 GESTORIA CIRERA: Contact Person: Anna / Gemma Tel :(93) 343.42.77 or (93) 788.35.16 e-mail: gestoria.keysight@non.keysight.com JOHNSON CONTROLS (Car Fleet): Contact: Teresa Moreno Mobile Phone: +34 670 801 076 Direct Telnet: 710-4336 Office Phone: +34 93 343 43 36 email: carfleet_spain@non.keysight.com FLEX BENEFITS INCLUDING HEALTH INS. (ADESLAS AND SANITAS): Contact Person: Vinyet Gonzalez Tel: (93) 494.81.77 email: vinyet.gonzalez@mercer.com CASER(Life Insurance): Contact Person: Beatriz Alcaraz Tel : (93) 494.81.69 Email : beatriz.alcaraz@mercer.com VidaCaixa (Pension): Contact Person: Fernando Montero Tel: +34 91 432 68 27 Email : femontero@vidacaixa.es GE CAPITAL General assistance phone: 902 11 13 11 Driver assistance phone: 900 12 46 80 Road assistance phone: 900 40 10 10 Web: www.gefleetservices.com.es MASTERLEASE Driver assistance phone: 902 44 77 77 Email: operaciones.es@gmacfs.com for mechanical assistance MARSH (Insurance) flotasbcn.sin@marsh.com NOBILAS (Maintenance) Fax (to submit accident reports): 93 370 65 19 Web: www.innovation-group.com Tel service center: 902 13 40 00 CIGNA (Business Travel Insurance): In the event of a medical emergency when travelling on Keysight business, please contact: International SOS: Keysight member # 11BCPA000051 Policy #02944A Tel: toll free in the US 1-800-523-6586 Tel: Collect call: 215-942-8226 Tel (London): +44 20 876 280 08 Fax: 302-797-3150 or within US and Canada 800-243-6998 Mail: CIGNA International Expatriate Ben P.O Box 15050 Wilmington, DE 19850-5050 or for courier delivery: CIGNA International, 590 Naamans Road, Claymont, DE 19703

Actual numbers (2014): COMPANY CAR REIMBURSEMENT RATE: 22 cents/km. HOME OFFICE ALLOWANCE: Maximum 70 /month MEAL VOUCHERS & CAFETERIA: BUEN Menu card value: 7,79 EUR/day SOCIAL SECURITY NUMBERS: Social Security Ceiling (SSC): 43.272 /year MEDICAL PLAN CONTRIBUTIONS: ADESLAS: Employee: 56.14 per month for additional beneficiary Optional dental coverage: 84.36 per year for every beneficiary SANITAS: Employee: 56.28 per month for additional beneficiary Optional dental coverage: 95.04 per year for every beneficiary KINDERGARDEN: Annual lump sum of 300. GYM FUNDING 120 gross amount/year in 2 payments of 60. This overview provides highlights of the Spain Keysight Technologies programs which refer to employees from Keysight Technologies and all other legal entities of Keysight in Spain. The official plan documents are always used to determine when and what benefits will be provided. Keysight s policies and benefits may change from time to time. Accordingly, this brochure does not represent a contract and it should not be interpreted as contractual in nature. For more information, contact the HR department.