8-KMaterial AgreementsExhibits & Filings

TERADYNE, INC 8-K Report, Material Agreement (Sep 7, 2004)

Filed September 7, 2004For Securities:TER

Summary

Teradyne, Inc. (TER) filed an 8-K on September 7, 2004, reporting the entry into a Material Definitive Agreement. Specifically, on September 3, 2004, the company entered into an "Agreement Regarding Termination Benefits" with Michael A. Bradley. This agreement outlines specific severance benefits and conditions for Mr. Bradley. Should his employment be terminated by Teradyne for reasons other than death, disability, or cause, he is entitled to 24 months of continued annual compensation on a monthly basis. Additionally, he will receive continued health, dental, and vision insurance during this severance period, and his stock options will remain in effect per their respective plans. In exchange, Mr. Bradley agrees to non-solicitation, non-hiring, and non-competition clauses with Teradyne during the agreement and severance periods, and to sign a release of claims.

Key Highlights

  • 1Teradyne entered into a termination benefits agreement with Michael A. Bradley on September 3, 2004.
  • 2The agreement guarantees Mr. Bradley 24 months of severance pay if terminated by the company for reasons other than death, disability, or cause.
  • 3Severance includes continued health, dental, and vision insurance coverage for 24 months.
  • 4Mr. Bradley's existing stock options will remain in effect according to their original terms.
  • 5In exchange for benefits, Mr. Bradley agrees to non-solicitation and non-hiring restrictions for Teradyne employees and customers.
  • 6Mr. Bradley also agrees to a non-competition clause with Teradyne during the agreement and severance periods.
  • 7The agreement requires Mr. Bradley to sign a release of any claims against Teradyne.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report the entry into a material definitive agreement between Teradyne, Inc. and Michael A. Bradley concerning termination benefits.

The key financial implication is Teradyne's commitment to pay Mr. Bradley 24 months of his then-current annual compensation, plus continue his health insurance benefits, should his employment be terminated under specific conditions. The exact financial impact depends on the timing and circumstances of any potential termination.

Mr. Bradley is restricted from directly soliciting or hiring Teradyne employees or customers, and from competing with Teradyne's business during the term of the agreement and the subsequent 24-month severance period.

No, the agreement states that Mr. Bradley's stock options shall stay in effect and be governed exclusively by their respective plans and agreements. This implies no forfeiture or alteration of his vested or unvested options solely due to this termination benefits agreement.