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.