Summary
Teradyne, Inc. (TER) filed an 8-K on August 31, 2007, to report a material definitive agreement. Specifically, the company entered into a Second Amendment to its existing Standard Manufacturing Agreement with Solectron Corporation, originally dated November 24, 2003. This amendment significantly expands Teradyne's manufacturing and testing relationship with Solectron, extending it to cover final assembly, configuration, and testing for most of Teradyne's Flex™ family of products. The expanded operations will be conducted at Solectron's subsidiary in Suzhou, China. The amended agreement is set to expire in 2010, with provisions for automatic annual extensions, and includes standard termination clauses.
Key Highlights
- 1Teradyne, Inc. entered into a Second Amendment to its Standard Manufacturing Agreement with Solectron Corporation on August 27, 2007.
- 2The amendment extends the agreement to cover additional manufacturing and test requirements for Teradyne's Flex™ family of products.
- 3These new requirements include final assembly, configuration, and testing.
- 4The expanded manufacturing work will be performed by Solectron's subsidiary located in Suzhou, China.
- 5The agreement is now extended through 2010, with potential for automatic annual extensions.
- 6The agreement can be terminated by either party with twelve months' advance written notice for customary reasons, including default or bankruptcy.