Document:

Supplemental Executive Retirement Plan, as restated

 Exhibit 10.19 
 TERADYNE, INC. SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN 
 (Restated as of January 1, 2005)

 TERADYNE, INC. SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN 
 (Restated as of January 1, 2005) 
 TABLE OF CONTENTS 
  

					
	 Article I. Establishment and Purpose
	  	1
			
	 1.1
	  	Establishment	  	1
	 1.2
	  	Applicability	  	1
	 1.3
	  	Purpose	  	1
	 1.4
	  	Invalidity of Particular Provision	  	2
		
	 Article II. Definitions
	  	3
			
	 2.1
	  	Definitions	  	3
	 2.2
	  	Gender and Number	  	8
		
	 Article III. Eligibility and Participation
	  	9
		
	 Article IV. Retirement Benefits
	  	10
			
	 4.1
	  	Retirement Benefits.	  	10
	 4.2
	  	Commencement of Benefits.	  	11
	 4.3
	  	Preretirement Death Benefit	  	12
	 4.4
	  	Form of Payment	  	13
	 4.5
	  	Payment of Small Amounts	  	16
	 4.6
	  	Separation from Service Prior to Vesting	  	17
	 4.7
	  	Non-Competition	  	17
	 4.8
	  	Delay of Payments	  	17
		
	 Article V. Rights of Members
	  	19
			
	 5.1
	  	Vesting	  	19
	 5.2
	  	Unsecured Interest	  	19
	 5.3
	  	Employment	  	19
	 5.4
	  	Member’s Rights	  	19
		
	 Article VI. Administration and Financing
	  	20
			
	 6.1
	  	Administration	  	20
	 6.2
	  	Finality of Determination	  	20
	 6.3
	  	Indemnification	  	20
	 6.4
	  	Expenses	  	21
	 6.5
	  	Financing	  	21
		
	 Article VII. Claims Procedure
	  	22
			
	 7.1
	  	Claims Procedure.	  	22

  

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	 Article VIII. Amendment and Termination
	  	24
			
	 8.1
	  	Amendment and Termination	  	24
	 8.2
	  	409A	  	26
		
	 Article IX. Miscellaneous
	  	27
			
	 9.1
	  	Nontransferability	  	27
	 9.2
	  	Withholding	  	27
	 9.3
	  	Permitted Distributions	  	27
	 9.4
	  	Applicable Law	  	28

  

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 TERADYNE, INC. SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN 
 (Restated as of January 1, 2005) 
 Article I. Establishment and Purpose 
 1.1 Establishment. Teradyne, Inc. and certain Affiliates (the
“Employer”) established a supplemental retirement plan known as the “TERADYNE, INC. SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN” (the “Prior Plan”), effective as of January 1, 1993 and thereafter amended from time to
time. Since January 1, 2005, benefits accrued or vested under the Prior Plan have been administered in accordance with Section 409A (“Section 409A”) of the Internal Revenue Code of 1986, as amended (the “Code”), and the
guidance issued thereunder from time to time. This restatement (the “Plan”), is intended to memorialize the terms applicable to such benefits and is intended to comply with Section 409A. The terms of the Prior Plan, as amended from
time to time, remain applicable to Grandfathered Benefits but no additional benefits shall be accrued or vested under its terms. 
 1.2
Applicability. The provisions of this Plan are applicable only to Eligible Employees who were Members of the Prior Plan on December 31, 2004 and continue to be Eligible Employees of an Employer thereafter or who become Eligible Employees
of the Plan after December 31, 2004. 
 1.3 Purpose. The purpose of this Plan is to provide Members with retirement benefits they
could be unable to receive under the Retirement Plan due to certain restrictions on the Retirement Plan imposed by Code Sections 401(a) (17) and 415 and to supplement the benefits payable to such Members from the Retirement Plan (in addition to
those benefits accrued and vested under the Prior Plan). The Plan is intended to be unfunded and maintained primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees as described in
the Employee Retirement Income Security Act of 1974, as amended. 

 1.4 Invalidity of Particular Provision. The invalidity of any particular provision of this Plan
shall not affect the other provisions, and the Plan shall be construed in all respects as if such invalid provision were omitted. 
  

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 Article II. Definitions 
 2.1 Definitions. Whenever used herein, the following terms shall have the respective meanings set forth below. 
  

	 	(a)	Accrued Benefit has the same meaning as such term has in the Retirement Plan after December 31, 2004, but calculated under the terms of the Plan. If Retirement Benefits
commence prior to Social Security Retirement Age, the factors in Appendix A, Column B of the Retirement Plan will be used for this calculation. 

  

	 	(b)	Actuarial Equivalent has the same meaning as such term has in the Retirement Plan. 

  

	 	(c)	Affiliate shall mean— 

  

	 	(1)	any corporation other than the Company which together with the Company is a member of a “controlled group” of corporations (as defined in Code Section 414(b));

  

	 	(2)	any organization which together with the Company is under “common control” (as defined in Code Section 414(c)); 

  

	 	(3)	any organization which together with the Company is an “affiliated service group” (as defined in Code Section 414(m)); or 

  

	 	(4)	any other entity required to be aggregated with the Company pursuant to regulations under Code Section 414(o). 

  

	 	(d)	Annual Compensation has the same meaning such term has under the Retirement Plan without the limitations of Section 401(a)(17) of the Code. 

  

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	 	(e)	Beneficiary shall mean the person or persons last designated by a Member, in such manner as the Plan Administrator deems appropriate, to receive any benefits for which a
Beneficiary is eligible under this Plan, or if there is no living Beneficiary the Member’s Spouse, and if no living Spouse, then the Member’s estate. 

  

	 	(f)	Code shall mean the Internal Revenue Code of 1986, as the same shall from time to time be amended, and the guidance issued thereunder. 

  

	 	(g)	Committee shall mean any Committee of the Board of Directors of the Company designated by the Board to have any responsibility with respect to the Plan.

  

	 	(h)	Company shall mean Teradyne, Inc. 

  

	 	(i)	Compensation: 

  

	 	(1)	for those Members who became Members under the Plan before January 1, 2003, shall mean for each Plan Year, 

  

	 	(A)	an amount equal to the Annual Compensation minus 

  

	 	(B)	actual payments to the Member under the Variable Compensation Plan for such Plan Year, plus 

  

	 	(C)	target variable portions of the Member’s Model Compensation for the Plan Year as of the most recent effective date as of when the Model Compensation is fixed for the Member.

  

	 	(2)	for Members who became Members after January 1, 2003 (or hereafter become Members), shall mean for each Plan Year, an amount equal to Annual Compensation, but only to the
extent it exceeds the limit under Section 401(a)(17) of the Code during such Plan Year. 

  

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	 	(j)	Covered Compensation shall mean the Breakpoint for each Plan Year after 1988 as defined in Section 2.1(g)(3) of the Retirement Plan. 

  

	 	(k)	Credited Service has the same meaning as such term has in the Retirement Plan. 

  

	 	(l)	Disability has the same meaning as such term has in the Retirement Plan. 

  

	 	(m)	Earliest Retirement Date has the same meaning as such term has in the Retirement Plan as of January 1, 2005. 

  

	 	(n)	Eligible Employee shall mean an Employee who is an “Eligible Employee” as defined in the Retirement Plan (and who had elected to continue to accrue benefits under
the Retirement Plan after October 29, 1999), and who was a Member of the Prior Plan on December 31, 2004, or, thereafter is eligible for Model Compensation in excess of the Section 401(a)(17) limit in any Plan Year in which he is
employed by Employer, and has been notified that he or she is an Eligible Employee under this Plan by the Plan Administrator. No Employee shall be considered an Eligible Employee after October 29, 1999 if such Employee experiences a Break in
Service under the Retirement Plan and any Retirement Benefits shall be based on the terms of this Plan (and the Prior Plan) prior to such Break in Service and such Member’s service and compensation at that time. 

  

	 	(o)	Employee shall mean an individual who is employed by the Employer as a regular employee or an expatriate employee on the U.S. payroll and who is regularly scheduled for 20 or
more hours of service per week taking into account Hours of Service as defined in the Retirement Plan. 

  

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	 	(p)	Employer shall mean the Company and any Affiliate that has been included in the Prior Plan (or is hereafter included in this Plan) with respect to some or all of its Eligible
Employees. 

  

	 	(q)	Final Average Compensation shall mean the sum of the Employee’s Monthly Compensation for the 5 Plan Years during which the Employee’s aggregate Monthly Compensation
was the highest, divided by five; provided, however, that if the Employee terminated employment on any day other than the last business day of the Plan Year, then, if higher, Final Average Compensation shall mean the sum of the Member’s Monthly
Compensation during the 60 consecutive months ending with the month prior to the Member’s termination date, if higher; and provided further that if the Employee has fewer than sixty consecutive months of employment with the Employer or his or
her termination date, Final Average Compensation shall mean the Employee’s average Monthly Compensation during the period of his or her employment with the Employer. 

  

	 	(r)	Grandfathered Benefits shall mean the accrued and vested benefits under the terms of the Prior Plan as of December 31, 2004 as defined for purposes of Section 409A
and subject to the terms of the Prior Plan as in effect on October 3, 2004 and as amended thereafter consistent with Section 409A. 

  

	 	(s)	Member shall mean an Employee who has satisfied the requirements of Article III. 

  

	 	(t)	Model Compensation is Employee’s base salary plus target variable payout under the terms of the Variable Compensation Plan. 

  

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	 	(u)	Monthly Compensation shall mean Compensation divided by 12 except that, for the year in which a Member terminates employment, Compensation shall be determined with respect to
the period of service completed in such year, divided by the number of such months (including any partial months). 

  

	 	(v)	Normal Retirement Date is the date the Member reaches Social Security Retirement Age. 

  

	 	(w)	Plan Administrator shall mean the Retirement Plan Committee, as described in the Retirement Plan, or any other person designated as Plan Administrator by the Board of
Directors or a Committee. 

  

	 	(x)	Plan Year shall mean the calendar year. 

  

	 	(y)	Retirement Benefits shall mean the benefits provided under Section 4.1 of this Plan. 

  

	 	(z)	Retirement Plan shall mean the Retirement Plan for Employees of Teradyne, Inc., as amended from time to time. 

  

	 	(aa)	Separation from Service shall mean a Member’s termination of employment with an Employer within the meaning of Section 409A. 

  

	 	(bb)	Social Security Retirement Age has the same meaning as such term has under the Retirement Plan as of January 1, 2005. 

  

	 	(cc)	Spouse, Surviving Spouse and the term “married” shall be interpreted under the law of the jurisdiction in which the Member was married.

  

	 	(dd)	Variable Compensation Plan shall mean the Teradyne, Inc. Variable Compensation Plan as modified and incorporated into the Teradyne, Inc. 2006 Equity and Cash Compensation
Incentive Plan, each as amended from time to time. 

  

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 2.2 Gender and Number. Except where otherwise indicated by the context, any masculine terminology
used herein shall also include the feminine gender, the definition of any term herein in the singular shall also include the plural, and the definition of any term herein in the plural shall also include the singular. 
  

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 Article III. Eligibility and Participation 
 Each Eligible Employee who was a Member prior to January 1, 2005 shall continue to be a Member under this Plan as of that date. However, amounts
accrued and vested for such Member within the meaning of Section 409A prior to January 1, 2005 shall be subject only to the terms of the Prior Plan and no additional benefits shall be accrued or vested under the Prior Plan after
December 31, 2004. Amounts accrued or vested on or after January 1, 2005 within the meaning of Section 409A shall be subject to the terms of this restated Plan and Section 409A. Each other Employee who becomes an Eligible
Employee on or after January 1, 2005 shall become a Member on the day after becoming an Eligible Employee. 
  

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 Article IV. Retirement Benefits 
 4.1 Retirement Benefits. 
  

	 	(a)	Entitlement to Retirement Benefits. Except as provided in Section 4.7, a Member who Separates from Service after December 31, 2004 and who is vested under the terms
of Article V is entitled to the receipt of Retirement Benefits determined in Section 4.2, payable in the manner provided in the Member’s election under Section 4.4 of Plan with respect to all amounts accrued or vested after
December 31, 2004. 

  

	 	(b)	Amount of Retirement Benefits. A Member who, 

  

	 	I.	first became a Member prior to January 1, 2003, shall be entitled to a monthly Retirement Benefit equal to one-twelfth of the result of (1) minus (2) minus
(3) where— 

  

	 	(1)	is an amount payable in a straight life annuity form equal to the product of (i) the Member’s Credited Service and (ii) the sum of (A) and (B) as follows:

  

	 	(A)	0.75 percent of the Member’s Final Average Compensation up to the Covered Compensation, 

  

	 	(B)	1.50 percent of the Member’s Final Average Compensation above the Covered Compensation, 

  

	 	(2)	is the Member’s Accrued Benefit payable in a straight life annuity form from the Retirement Plan; and 

  

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	 	(3)	is the Member’s Accrued Benefit payable in a straight life annuity form under the Prior Plan with respect to amounts accrued and vested within the meaning of Section 409A
prior to January 1, 2005; or 

  

	 	II.	first became a Member on or after January 1, 2003, shall be entitled to a monthly Retirement Benefit equal to one-twelfth of (1) minus (2) when

 (1) is a straight life annuity form equal to the total of 1.5% of the Member’s Compensation for each Plan Year beginning
January 1, 2003 in which the Member participated in the Plan; provided that 1% shall be substituted for 1.5% for any Plan Year (or fraction thereof) in which the Member had completed more than 35 years of Credited Service; and 
 (2) is the Member’s Accrued Benefit payable in a straight life annuity form under the Prior Plan with respect to amounts accrued and vested within
the meaning of Section 409A prior to January 1, 2005. 
 4.2 Commencement of Benefits. 
  

	 	(a)	Retirement Benefits under this Article IV shall commence as of the month coincident with or next following the later of: 

  

	 	(1)	the Member’s Separation from Service, or 

  

	 	(2)	the date on which such Member attains his or her Social Security Retirement Age; 

 provided that the Board of Directors or a Committee, in its sole discretion, may instruct the Plan Administrator to commence or advance such payments on an earlier date to satisfy an unforeseeable emergency as permitted and to the extent
limited under Treas. Reg. § 1.409A-3(i)(3). 
  

	 	(b)	 Notwithstanding the provisions of the preceding paragraph, but acting in accordance with Section 409A(a)(2)(B) of the Code, distributions upon Separation from
Service of any specified employee, as defined in Section 409A, 

  

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may not commence earlier than the date 6 months and one day after the date of such separation (or the date of death, if earlier). Any distributions which
would have been made prior to the actual commencement of benefits but for the delay required by Section 409A(a)(2)(B) of the Code under Section 409A shall be accumulated and paid in a lump sum once benefits may commence, without interest,
to the Member or his or her Beneficiary as the case may be. 

 4.3 Preretirement Death Benefit. Benefits accrued or
vested after December 31, 2004 shall be provided under this Section if the Member is married on the date of such Member’s death and if such Member dies before Retirement Benefits commence under the Plan, and in accordance with
Section 4.3(a) or (b). 
  

	 	(a)	On or After Vesting. 

  

	 	(1)	Timing. If a Member dies after becoming vested (other than as a result of such death) under Article V and (a) such Member is married on the date of death, and
(b) the Member has not yet begun to receive benefits, then in lieu of any other benefit herein, the Surviving Spouse shall be entitled to receive as a death benefit a monthly payment beginning during the month following the Member’s death
and ending with the month in which the Spouse dies. 

  

	 	(2)	Amount. The monthly benefit under this subsection (a) shall equal 50 percent of the Retirement Benefit which would have been payable under Section 4.1(b) to the
Member if the Member had retired the day before death and benefit payments had commenced on that date in the form of a joint and 50 percent survivor annuity with the Surviving Spouse as the contingent annuitant. 

  

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	 	(b)	Prior to Earliest Retirement Date. 

  

	 	(1)	Timing. If a Member dies while employed by an Employer prior to a Member’s Earliest Retirement Date (without taking such death into account) under the Retirement Plan
and such Member is married on the date of death, then the Surviving Spouse shall be entitled to receive as a death benefit a monthly payment beginning during the month following the earlier of— 

  

	 	(A)	the date that would have been the Member’s Earliest Retirement Date under the Retirement Plan, or 

  

	 	(B)	the date the Member would have attained age 65, and ending with the month in which the death of the Spouse occurs. 

  

	 	(2)	Amount. The monthly benefit under this subsection (b) shall equal the amount determined as if the Member: 

  

	 	(A)	Separated from Service with the Employer on the day before the date of death, 

  

	 	(B)	began receiving Retirement Benefits in the form of a joint and 50 percent survivor annuity on the date of the Member’s Separation from Service, 

  

	 	(C)	died the day thereafter. 

  

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 4.4 Form of Payment. Retirement Benefits under the Plan shall be paid as provided in this
Section 4.4. 
  

	 	(a)	Life annuity. The annual amount of Retirement Benefits payable to any Member who does not have a Spouse on the date his or her Retirement Benefits commence or who is married
but has made a valid election to receive his or her Retirement Benefits in the form specified in this Section 4.4(a) rather than in the form specified in Section 4.4(b) shall be payable for the life of the Member only, unless another
optional form of payment has been elected pursuant to Section 4.4(c) below. 

  

	 	(b)	Automatic Joint and Survivor Annuity for Married Members. Except as otherwise provided herein, Retirement Benefits payable hereunder to any Member who is married on the date
his or her Retirement Benefits are to commence will be automatically paid to the Member and his or her Spouse in the form of a joint and survivor annuity. The joint and survivor annuity shall provide for retirement income to the Member and the
Member’s Spouse in the same amount and the same manner as if the Member had elected Option 2 in Section 4.4(c) below, providing for 50 percent of the Member’s reduced Retirement Benefit to be continued to his or her Spouse as the
contingent annuitant. 

  

	 	(c)	Optional Forms. Notwithstanding the provisions of Sections 4.4(a) and (b), prior to the date with respect to which payments shall be made, the Member may elect the form in
which his or her Retirement Benefits are to be made either by electing a life annuity under Section 4.4(a) or from among the choices in this Section 4.4(c), provided that such election then complies with Section 409A.

  

	 	(1)	 Option 1 – Period Certain and Life Option. A reduced rate of Retirement Benefits payable to the member during his or her retired life, but 

  

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guaranteed for a period of 5, 10, or 20 years, at the election of the Member, from the date Retirement Benefits commence. If the Member dies before
expiration of the period certain, payments shall be continued to the Member’s Beneficiary for the remainder of the period certain. If the Member’s Beneficiary dies while further payments are due, such further payments shall be made to any
one or more persons designated by the Member as alternate Beneficiaries which designation can be made at any time during the Member’s life. In the absence of the designation of an alternate Beneficiary, the value of such payments shall be paid
to the Member’s Surviving Spouse, and if none, to the Member’s estate. If the Member dies after this Option 1 has gone into effect, but has failed to designate a Beneficiary, the payments shall be made to the Member’s Surviving
Spouse, or if none, to the Member’s estate. 

  

	 	(2)	Option 2 – Contingent Annuitant Option. A reduced rate of Retirement Benefits payable during the lifetime of the Member with a percentage, either 50 percent, 75 percent,
or 100 percent, designated by the Member, of said Retirement Benefits payable after the Member’s death to his or her designated contingent annuitant for such contingent annuitant’s lifetime. 

  

	 	(3)	If either the Beneficiary under Option 1 or the contingent annuitant under Option 2 dies before the retirement commencement date, the election shall be deemed null and void, but the
Member shall be entitled to make another election or designate a Beneficiary under Option 1 and a new contingent annuitant under Option 2 to the extent consistent with Section 409A, and if not, the benefit will be paid as an annuity under
Section 4.4(a) or Section 4.4(b) as applicable. 

  

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	 	(4)	If the contingent annuitant under Option 2 dies after the option has become effective, the option shall continue in effect, the annual amount of Retirement Benefits payable to the
Member at the time of the contingent annuitant’s death shall remain unchanged, and no further Retirement Benefits shall be payable upon the subsequent death of the Member. If the Beneficiary under Option 1 dies at any time prior to the
Member’s death, the option shall remain effective and the Member may designate a new Beneficiary. In the event the Beneficiary under Option 1 dies after benefit payments have begun to the Member and the Member designates a new Beneficiary, the
period of time over which the benefits are to be paid shall not be changed. 

  

	 	(5)	Elections shall be made in accordance with a procedure established by the Plan Administrator from time to time. Each form of payment hereunder shall be the Actuarial Equivalent of
the Retirement Benefit calculated under Section 4.1(b) and payable under the Plan. 

 4.5 Payment of Small Amounts.
Notwithstanding the foregoing, if the value of the Retirement Benefits payable under Section 4.1 or 4.3 is no more than the dollar limit under Section 402(g)(1)(B) of the Code when calculated as if payable in a lump sum, which is the
Actuarial Equivalent of the Retirement Benefit, at the time of Separation from Service or death, as applicable, under the terms of the Plan, then on the Member’s Separation from Service or death, the Plan Administrator may direct that such lump
sum be paid to the Member (or the 

  

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Member’s Beneficiary) within 90 days following such Separation from Service or death, provided that the payment means that the Member will retain no
benefits under any other non-account balance plans aggregated with the Plan under Treas. Reg. § 1.409A-1(c)(2)). Should a Member receive a benefit under this Section and be reemployed by an Employer, any Retirement Benefits payable under this
Plan after his or her reemployment shall be reduced by the Actuarial Equivalent of the benefits such Member received under this Section. 
 4.6 Separation from Service Prior to Vesting. Notwithstanding any provision herein to the contrary, a Member who Separates from Service with the Employer prior to vesting under Section 5.1 shall not be entitled to any Retirement
Benefits (or death benefits) under the Plan. 
 4.7 Non-Competition. The Member shall forfeit any Retirement Benefits that would
otherwise be payable under this Plan if he or she, for any reason whatsoever, directly or indirectly, accepts employment or renders services, with or without compensation, by or for any person, firm, or organization engaged in the sale, servicing,
developing, manufacturing, or merchandising of products or services in competition with any product or service of the Company— 
  

	 	(a)	in the event of voluntary termination of employment for a period of three years immediately following such termination, or 

  

	 	(b)	in the event of involuntary termination of employment, for a period of one year immediately following such termination. 

 4.8 Delay of Payments. Notwithstanding the foregoing, any payment due under this Article IV, may be delayed in a manner that will not constitute a
subsequent deferral under Section 409A and in such manner permitted by and subject to such conditions and limitations as imposed under Section 409A, including, without limitation, (a) if the Employer reasonably 

  

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anticipates that its federal income tax deduction with respect to such payment will be limited or eliminated by application of Section 162(m) of the
Code; provided that any payment so delayed will be paid at the earliest date at which the Employer reasonably anticipates that the federal income tax deduction will not be limited or eliminated by application of Section 162(m) of the Code, or,
if later, the calendar year in which a Member has a Separation from Service, and (b) if the Employer reasonably anticipates the payments will violate federal securities law or other applicable law; provided that the payments delayed will be
made at the earliest date at which the Employer reasonably anticipates that the making of such payments will not cause a violation. 
  

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 Article V. Rights of Members 
 5.1 Vesting. A Member shall have a nonforfeitable right to Retirement Benefits payable pursuant to Article IV upon the earliest to occur of the
following: 
  

	 	(a)	the Member’s Normal Retirement Date under the Retirement Plan, 

  

	 	(b)	the Member’s Earliest Retirement Date under the Retirement Plan, 

  

	 	(c)	the date the Member retires on account of Disability under the Retirement Plan, and 

  

	 	(d)	the Member’s death. 

 If the Member Separates from Service prior to
having a nonforfeitable right under this Section 5.1 no Retirement Benefits will be paid hereunder. 
 5.2 Unsecured Interest. No
Member or Surviving Spouse shall have any interest whatsoever in any specific asset of the Employer. To the extent any person acquires a right to receive payments under this Plan, such right shall be no greater than the right of any unsecured
general creditor of the Employer. 
 5.3 Employment. Nothing in this Plan shall interfere with or limit in any way the right of the
Employer to terminate any Member’s employment at any time, nor confer upon any Member any right to continue in the employ of the Employer. 
 5.4 Member’s Rights. Nothing contained in this Plan and no action taken pursuant to the provisions of this Plan shall create or be construed to create a fiduciary relationship between the Employer or the Plan Administrator and
any Member or Surviving Spouse or any other person. Members and Surviving Spouses have the status of general unsecured creditors of the Employer. The Plan constitutes a mere promise by the Employer to make benefit payments in the future. Neither
Members nor Surviving Spouses (nor any other person) shall have any claim to any specific assets of the Employer, including any assets transferred to any trust described in Section 6.5 and all such assets shall remain owned by the Employer at
all times. 
  

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 Article VI. Administration and Financing 
 6.1 Administration. The Plan will be administered by the Plan Administrator, which shall have the exclusive right and full discretion subject to
the provisions of 409A— 
  

	 	(a)	to interpret the Plan, 

  

	 	(b)	to decide any and all matters arising hereunder (including the right to remedy possible ambiguities, inconsistencies, or admissions), 

  

	 	(c)	to require information and documents from any person who may be helpful to the fulfillment of the Plan Administrator’s responsibilities. 

  

	 	(d)	to make, amend, and rescind such rules as it deems necessary for the proper administration of the Plan, including the adoption of written administrative procedures which may modify
or eliminate provisions of this Plan in order to conform them more closely to Section 409A. 

  

	 	(e)	to make all other determinations necessary or advisable for the administration of the Plan, including determinations regarding eligibility for benefits under the Plan and the amount
of benefits payable under the Plan. 

 6.2 Finality of Determination. The determination of the Plan Administrator as to
any disputed questions arising under this Plan, including questions of fact and construction and interpretation of such facts and all applicable documents, shall be final, binding, and conclusive upon all persons. 
 6.3 Indemnification. To the extent permitted by law, and without limiting the applicability of any other indemnification provided by the Employer,
the Plan Administrator, and all agents and representatives of the Plan Administrator, shall be indemnified by the Employer against any claims, and the expenses of defending against such claims, resulting from any action or conduct (or failure to
act) relating to the administration of the Plan except claims arising from a finding of gross negligence, willful neglect, or willful misconduct. 
  

 - 20 - 

 6.4 Expenses. The cost of payment from this Plan and the expenses of administering the Plan shall
be borne by the Employer. 
 6.5 Financing. The Employer may pay benefits under this Plan from its general assets or it may establish
a trust and transfer to that trust such assets as it determines to assist the Employer in payment of such benefits under this Plan. To the extent distributions from any trust are not sufficient to make any benefit payment, the balance of such
payment shall be made by the Employer. 
  

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 Article VII. Claims Procedure 
 7.1 Claims Procedure. 
  

	 	(a)	Submission of Claims. Claims for benefits under the Plan shall be submitted in writing to the Plan Administrator or to an individual designated by the Plan Administrator for
this purpose. 

  

	 	(b)	Denial of Claim. If any claim for benefits is wholly or partially denied, the claimant shall be given written notice within 90 days following the date on which the claim is
filed, which notice shall set forth— 

  

	 	(1)	the specific reason or reasons for the denial, 

  

	 	(2)	specific references to pertinent Plan provisions on which the denial is based, 

  

	 	(3)	a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary, and

  

	 	(4)	an explanation of the Plan’s claim review procedure. 

 If special circumstances require an extension of time for processing the claim, written notice of an extension shall be furnished to the claimant prior to the end of the initial period of 90 days following the date on which the claim is
filed. Such an extension may not exceed a period of 90 days beyond the end of said initial period. 
 If the claim has not been granted, and
if written notice of the denial of the claim is not furnished within 90 days following the date on which the claim is filed, the claim shall be deemed denied for the purpose of proceeding to the claim review procedure. 
  

 - 22 - 

	 	(c)	Claim Review Procedure. The claimant or his or her authorized representative shall have 60 days after receipt of written notification of denial of a claim to request a review
of the denial by making written request to the Plan Administrator, and may review pertinent documents and submit issues and comments in writing within such 60-day period. 

 Not later than 60 days after receipt of the request for review, the Plan Administrator shall render and furnish to the claimant a written decision, which
shall include specific reasons for the decision, and shall make specific references to pertinent Prior Plan provisions on which it is based. If special circumstances require an extension of time for processing, the decision shall be rendered as soon
as possible, but not later than 120 days after receipt of the request for review, provided that written notice and explanation of the delay are given to the claimant prior to commencement of the extension. Such decision by the Prior Plan
Administrator shall not be subject to further review. If a decision on review is not furnished to a claimant within the specified time period, the claim shall be deemed to have been denied on review. 
  

 - 23 - 

 Article VIII. Amendment and Termination 
 8.1 Amendment and Termination. The Employer expects the Plan to be permanent but since future conditions affecting the Employer cannot be
anticipated or foreseen, the Employer necessarily must and does hereby reserve the right to amend, modify, or terminate the Plan (in all circumstances as permitted by Section 409A) at any time, by action of the Board of Directors or a
Committee. Any such amendment, modification, or termination shall not reduce or diminish the value of the benefit to be paid hereunder prior to the date of such amendment. The Employer may distribute the Actuarial Equivalent of the Retirement
Benefits determined under Section 4.4, in a single lump sum, on termination of the Plan in such manner permitted by and subject to such conditions and limitations as imposed by Section 409A including, without limitation, the
Employer’s termination and liquidation of the Plan in accordance with the following (modified as necessary to comply with Treas. Reg § 1.409A-3(j)(4)(ix)): 
  

	 	(a)	Corporate Dissolution or Bankruptcy: within 12 months following a corporate dissolution of the Employer taxed under Section 331 of the Code or with the approval of a
bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A) provided that the amounts deferred under the Plan are included in each Member’s gross income in the latest of the following years (or, if earlier, the taxable year in which the amount is
actually or constructively received): (i) the calendar year in which the Plan terminates; (ii) the first calendar year in which the amounts are no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year in
which the distribution is administratively practicable; 

  

	 	(b)	 Termination in Connection with a Change in Control Event: pursuant to irrevocable action taken by the Employer within 30 days preceding or 12 months 

  

 - 24 - 

	 	 
after a change in the ownership or effective control of the Employer, or in the ownership of a substantial portion of the assets of the Employer as described
in Section 409A(2)(A)(v) of the Code, provided that all distributions with respect to Members subject to the change in control event are made no later than 12 months following such termination of the Plan and further provided that all of the
Employer’s plans and arrangements that are non-account balance plans for purposes of Treas. Reg. § 1.409A-1(c)(2) (and would be aggregated under such regulation) that cover Members subject to the change in control are terminated so that
the Members are required to receive all amounts of compensation deferred under the other terminated plans and arrangements within 12 months following the irrevocable action to terminate such other plans and arrangements; or

  

	 	(c)	Termination of Similar Plans: if all other non-account balance plans (for purposes of Treas. Reg. § 1.409A-1(c)(2)) sponsored by the Employer that would be aggregated
with the Plan under Treas. Reg. § 1.409A-1(c) if a Member had participated are terminated; provided that (i) such action does not occur proximate to a downturn in the financial health of the Employer; (ii) all distributions are made
no earlier than 12 months and no later than 24 months following such termination, and (iii) the Employer does not adopt any new non-account balance plans for a minimum of three years following the date of such termination.

 Notice of such amendment or termination shall be given in writing to each Member and Beneficiary of a deceased Member having an interest in
the Plan. The Employer may, at any time, provide for the cessation of the accrual of benefits under the Plan for some or all of the Members. 
  

 - 25 - 

 8.2 409A. It is the intention of the Company and any other Employer that the terms of this Plan
shall be consistent with the provisions of Section 409A including rights that are grandfathered and the administration and interpretation of this Plan shall be consistent with such intention; provided that the Company, any other Employer and
the Plan Administrator or its agents shall have no obligation to any Member or any other person if there is any failure to comply with said Section 409A or with respect to any liability, including, without limitation, any liability for taxes,
additional taxes or interest incurred by the Member or any other person as a result of such failure. 
  

 - 26 - 

 Article IX. Miscellaneous 
 9.1 Nontransferability. In no event shall the Employer make any payment under this Plan to any assignee or creditor of a Member, a Surviving
Spouse or a Beneficiary except to the extent consistent with any court order to make payments to someone other than a Member in connection with a domestic relations order as defined in Section 414(p)(1)(B). Prior to the time of payment
hereunder, a Member, a Surviving Spouse or Beneficiary shall have no rights by way of anticipation or alienation nor shall such rights be assigned or transferred by operation of law. 
 9.2 Withholding. The Employer shall have the right to deduct from all payments made from the Plan any applicable withholding required by law to be
withheld with respect to such payments. 
 9.3 Permitted Distributions. In addition to the provisions of Section 9.1,
distribution may be made in such manner permitted by and subject to such conditions and limitations as imposed by Section 409A, including, without limitation, (i) to comply with government ethics or conflict of interest laws (per Treas.
Reg. § 1.409A-3(j)(4)(iii)), (ii) to pay employment taxes under Sections 3101, 3121(a) and 3121(v)(2) of the Code on amounts accrued under this Plan, (iii) to pay income taxes under Section 3401 of the Code or corresponding
state, local or foreign withholding rules triggered directly or as a result of the payments under (ii), (iv) to pay additional income tax on wages attributable to the pyramiding Section 3401 wages and taxes, (v) to comply with a
“domestic relations order” (as defined in Code Section 414(p)(1)(B)) as permitted under Code Section 409A, and (vi) to pay any amount due as a result of some amount under this Plan being included in income as a result of a
failure to comply with Section 409A. 
  

 - 27 - 

 9.4 Applicable Law. This Plan shall be governed and construed in accordance with the Employee
Retirement Income Security Act of 1974, as amended, and to the extent not pre-exempted, the laws of the Commonwealth of Massachusetts. 
 * *
* * * * * * * * 
 IN WITNESS WHEREOF, TERADYNE, INC. has caused this instrument to be executed, effective as of January 1, 2005, on
this             day of             , 2008. 
  

			
	TERADYNE, INC.
		
	By:	 	  

  

			
	ATTEST
		
	 By:
	 	  

  

 - 28 -Nextest Systems Corporation 1998 Equity Incentive Plan as Amended

 Exhibit 10.33 
 NEXTEST SYSTEMS CORPORATION 
 1998 EQUITY INCENTIVE PLAN 
 AS AMENDED 
 1. Purposes of the Plan.
The purposes of this Equity Incentive Plan are to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentives to Employees, Directors and Consultants of the Company and its
Subsidiaries, and to promote the success of the Company’s business. Options granted hereunder may be either Incentive Stock Options or Nonstatutory Stock Options at the discretion of the Committee. This is intended to be a stock purchase plan
and stock option plan for purposes of Section 408 of the California General Corporation Law and is intended to comply with the provisions of Section 25102(o) of the California Corporate Securities Law of 1968, as amended. 
 2. Definitions. As used herein, and in any Option granted hereunder, the following definitions shall apply: 
 (a) “Award” shall mean, individually or collectively, a grant under the Plan of Nonstatutory Stock Options, Incentive
Stock Options or rights to purchase Restricted Stock. 
 (b) “Award Agreement” shall mean the written
agreement between the Company and the Participant setting forth the terms and conditions applicable to each Award granted under the Plan, as determined by the Committee pursuant to the Plan. 
 (c) “Board” shall mean the Board of Directors of the Company. 
 (d) “Code” shall mean the Internal Revenue Code of 1986, as amended. 
 (e) “Common Stock” shall mean the Common Stock of the Company. 
 (f) “Company” shall mean Nextest Systems Corporation. 
 (g) “Committee” shall mean the Committee appointed by the Board in accordance with Section 4(a) of the Plan. If the
Board does not appoint or ceases to maintain a Committee, the term “Committee” shall refer to the Board. 
 (h)
“Consultant” shall mean any independent contractor retained to perform services for the Company. 
 (i)
“Continuous Employment” shall mean the absence of any interruption or termination of service as an Employee, Director or Consultant by the Company or any Subsidiary. Continuous Employment shall not be considered interrupted during
any period of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company and any Parent, Subsidiary or successor of the Company. A leave of absence approved by the Company
shall include sick leave, military leave or any other personal leave approved by an authorized representative of the Company. For purposes of Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment upon
expiration of such leave is guaranteed by statute or contract. 
 (j) “Covered Employee” shall mean any
individual whose compensation is subject to the limitations on tax deductibility provided by Section 162(m) of the Code and any Treasury Regulations promulgated thereunder in effect at the close of the taxable year of the Company in which an
Option has been granted to such individual. 
 (k) “Director” shall mean a director of the Company.

 (l) “Effective Date” shall mean the date on which the Plan is initially approved by the shareholders of
the Company in accordance with Section 19 of the Plan. 
 (m) “Employee” shall mean any person,
including officers (whether or not they are directors), employed by the Company or any Subsidiary. 
 (n) “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended. 
 (o) “Fair Market Value” means
(i) the closing price of a Share on the national securities exchange on which the Shares are traded, or (ii) if the Shares are not traded on a national securities exchange but are quoted on the Nasdaq SmallCap Market or on a national stock

  

 1 

 
exchange or an automated quotation system or over-the-counter market, the closing price on the Nasdaq SmallCap Market or such national stock exchange or
automated quotation system or over-the-counter market, or (iii) if the Shares are not traded on a national securities exchange or quoted on the Nasdaq SmallCap Market or an automated quotation system, the fair market value of a Share as
determined by the Company’s Board of Directors in good faith, based upon such factors as they deem relevant. Notwithstanding the preceding, for federal, state, and local income tax reporting purposes, fair market value shall be determined by
the Committee in accordance with uniform and nondiscriminatory standards adopted by it from time to time. Such determination shall be conclusive and binding on all persons. 
 (p) “Fiscal Year” means the fiscal year of the Company. 
 (q) “Grant Date” means, with respect to an Award, the date that the Award is granted by the Committee. 
 (r) “Incentive Stock Option” shall mean any option granted under this Plan and any other option granted to an Employee in
accordance with the provisions of Section 422 of the Code, and the Treasury Regulations promulgated thereunder. 
 (s)
“Non-Employee Director” shall mean a director of the Company who qualifies as a Non-Employee Director as such term is defined in Section 240.16b-3(b)(3) of the General Rules and Regulations promulgated under the Exchange Act
(the “General Rules and Regulations”). 
 (t) “Nonstatutory Stock Option” shall mean an Option
granted under the Plan that is subject to the provisions of Section 1.83-7 of the Treasury Regulations promulgated under Section 83 of the Code. 
 (u) “Option” shall mean a stock option granted pursuant to the Plan. 
 (v)
“Optioned Shares” shall mean the Common Stock subject to an Option. 
 (w) “Optionee” shall
mean an Employee, Non-Employee Director or Consultant who receives an Option. 
 (x) “Outside Director” shall
mean a director of the Company who qualifies as an Outside Director as such term is used in Section 162(m) of the Code and defined in any applicable Treasury Regulations promulgated thereunder. 
 (y) “Parent” shall mean a “parent corporation,” whether now or hereafter existing, as defined by
Section 424(e) of the Code. 
 (z) “Participant” shall mean an Employee, Consultant or Non-Employee
Director who has an outstanding Award. 
 (aa) “Plan” shall mean this 1998 Equity Incentive Plan. 

(bb) “Registration Date” shall mean the effective date of the first registration of any class of the Company’s
equity securities pursuant to Section 12 of the Exchange Act. 
 (cc) “Restricted Stock” shall mean an
Award granted to a Participant pursuant to Section 10. 
 (dd) “Section 16 Person” shall mean a person
who, with respect to the Shares, is subject to Section 16 of the Exchange Act. 
 (ee) “Section 162(m) Effective
Date” shall mean the first date as of which the limitations on the tax deductibility of certain compensation provided by Section 162(m) of the Code and any Treasury Regulations promulgated thereunder are applicable to Options granted
under the Plan. 
 (ff) “Securities Act” shall mean the Securities Act of 1933, as amended. 
 (gg) “Share” shall mean a share of the Common Stock subject to an Award, as adjusted in accordance with Section 12
of the Plan. 
 (hh) “Subsidiary” shall mean a “subsidiary corporation,” whether now or hereafter
existing, as defined in Section 424(f) of the Code. 
 (ii) “Termination of Service” means (a) in
the case of an Employee, a cessation of the employee-employer relationship between an employee and the Company or an Affiliate for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, disability, or
the disaffiliation of an Affiliate, but excluding any such termination where there is a simultaneous reemployment by the Company or an Affiliate; and (b) in the case of a 

  

 2 

 
Consultant, a cessation of the service relationship between a Consultant and the Company or an Affiliate for any reason, including, but not by way of
limitation, a termination by resignation, discharge, death, disability, or the disaffiliation of an Affiliate, but excluding any such termination where there is a simultaneous re-engagement of the Consultant by the Company or an Affiliate.

 3. Shares Subject to the Plan. Subject to the provisions of Section 12 of the Plan, the maximum aggregate number of Shares
which may be optioned and sold under the Plan is 12,000,000 Shares. The Shares may be authorized but unissued or reacquired shares of Common Stock. If an Option expires or becomes unexercisable for any reason without having been exercised in full,
or is surrendered pursuant to an Option exchange program, or if any unissued Shares are retained by the Company upon exercise of an Option in order to satisfy the exercise price for such Option or any withholding taxes due with respect to such
Option, such unissued or retained Shares shall become available for other Option grants under the Plan, unless the Plan shall have been terminated. 
 Notwithstanding the foregoing, the total number of shares subject to the Plan shall not exceed the applicable percentage of total outstanding shares of capital stock of the Company as calculated in accordance with the conditions and
exclusions of Section 260.140.45 of the Rules of the California Corporations Commissioner based on the shares of the Company that are outstanding at the time the calculation is made, unless a higher percentage is approved by at least two-thirds
(2/3) of the total outstanding shares of capital stock of the Company entitled to vote on the matter. The foregoing limitation shall cease to apply to the Plan at such time as, in the opinion of legal counsel to the Company, such rule is no
longer deemed to apply to the offer or sale of Shares subject to the Plan by the Company. 
 4. Administration of the Plan.

 (a) Procedure. The Plan shall be administered either by (i) the full Board; or (ii) a Committee consisting
of not less than two (2) members of the Board. Once appointed, the Committee shall continue to serve until otherwise directed by the Board. From time to time, the Board may increase the size of the Committee and appoint additional members
thereof, remove members (with or without cause) and appoint new members in substitution therefor, fill vacancies, however caused, and remove all members of the Committee and, thereafter, directly administer the Plan. Members of the Board or
Committee who are either eligible for Awards or have been granted Awards may vote on any matters affecting the administration of the Plan or the grant of Awards pursuant to the Plan, except that no such member shall act upon the granting of an Award
to himself, but any such member may be counted in determining the existence of a quorum at any meeting of the Board or the Committee during which action is taken with respect to the granting of an Award to him or her. 
 The Committee shall meet at such times and places and upon such notice as the chairperson determines. A majority of the Committee shall
constitute a quorum. Any acts by the Committee may be taken at any meeting at which a quorum is present and shall be by majority vote of those members entitled to vote. Additionally, any acts reduced to writing or approved in writing by all of the
members of the Committee shall be valid acts of the Committee. 
 (b) Procedure After Registration Date.
Notwithstanding subsection (a) above, after the Registration Date, the Plan shall be administered either by: (i) the full Board; or (ii) a Committee of two (2) or more directors, each of whom is a Non-Employee Director. After
such date, the Board shall take all action necessary to administer the Plan so that all transactions involving Awards and Shares issued pursuant to the Plan shall be exempt from Section 16(b) of the Exchange Act in accordance with the then
effective provisions of Section 240.16b-3 et. seq. of the General Rules and Regulations; provided that any amendment to the Plan required for compliance with such provisions shall be made consistent with the provisions of Section 14 of the
Plan and the General Rules and Regulations. 
  

 3 

 (c) Procedure After Section 162(m) Effective Date. Notwithstanding
subsections (a) and (b) above, after the Section 162(m) Effective Date, the Plan and all Awards shall be administered and approved by a Committee comprised solely of two or more Outside Directors. 
 (d) Powers of the Committee. Subject to the provisions of the Plan, and except as otherwise provided by the Board, the Committee
shall have the authority: (i) to determine, upon review of relevant information, the Fair Market Value of the Common Stock; (ii) to determine the purchase price of Awards to be granted, the Employees, Directors or Consultants to whom and
the time or times at which Awards shall be granted, and the number of Shares to be represented by each Award; (iii) to interpret the Plan; (iv) to prescribe, amend and rescind rules and regulations relating to the Plan; (v) to
determine the terms and provisions of each Award granted under the Plan (which need not be identical) and, with the consent of the holder thereof, to modify or amend any Award; (vi) to authorize any person to execute on behalf of the Company
any instrument required to effectuate the grant of an Award previously granted by the Committee; (vii) to accelerate or (with the consent of the Optionee) defer an exercise date of any Option, subject to the provisions of Section 9(a) of
the Plan; (viii) to determine whether Options granted under the Plan will be Incentive Stock Options or Nonstatutory Stock Options; (ix) to make all other determinations deemed necessary or advisable for the administration of the Plan.

 (e) Non-Employee Director Options. Notwithstanding any contrary provision of this Section 4, the Board shall
administer grants of Awards to Non-Employee Directors, and the Committee shall exercise no discretion with respect to grants of Awards to Non-Employee Directors. In the Board’s administration of Awards granted to Non-Employee Directors, the
Board shall have all of the authority and discretion otherwise granted to the Committee with respect to the administration of the Plan. 
 (f) Effect of Committee’s Decision. All decisions, determinations and interpretations of the Committee shall be final, conclusive and binding on all persons. 
 5. Eligibility. 
 (a)
Persons Eligible for Options. Nonstatutory Stock Options under the Plan may be granted to Employees, Directors or Consultants whom the Committee, in its sole discretion, may designate from time to time. Incentive Stock Options may be granted
only to Employees. An Employee, Director or Consultant who has been granted an Option, if he or she is otherwise eligible, may be granted an additional Option or Options. However, the aggregate Fair Market Value of the Shares subject to one or more
Incentive Stock Options that are exercisable for the first time by an Optionee during any calendar year (under all stock option plans of the Company and its Parents and Subsidiaries) shall not exceed $100,000 (determined as of the grant date). As of
the Section 162(m) Effective Date, Options under the Plan shall be granted to Covered employees upon satisfaction of the conditions to such grants provided pursuant to Section 162(m) and any Treasury Regulations promulgated thereunder. In
addition, after the Section 162(m) Effective Date, the maximum number of Shares with respect to which Options may be granted during any calendar year to any Employee shall not exceed 500,000 Shares. 
 (b) No Right to Continuing Employment, Consulting or Director Relationship. Neither the establishment nor the operation of the Plan
shall confer upon any Optionee or any other person any right with respect to continuation of employment or other service with the Company or any Subsidiary, nor shall the Plan interfere in any way with the right of the Optionee or the right of the
Company (or any Parent or Subsidiary) to terminate such employment or service at any time. 
  

 4 

 6. Term of Plan. The Plan shall become effective upon its adoption by the Board or its approval by
vote of the holders of the outstanding shares of the Company entitled to vote on the adoption of the Plan (in accordance with the provisions of Section 19 hereof), whichever is earlier. It shall continue in effect for a term of ten
(10) years unless sooner terminated under Section 14 of the Plan. 
 7. Term of Option. Unless the Committee determines
otherwise, the term of each Option granted under the Plan shall be ten (10) years from the Grant Date. The term of the Option shall be set forth in the Option Agreement. In any event, no Option shall be exercisable after the expiration of ten
(10) years from the Grant Date, provided that no Incentive Stock Option granted to any Employee who, at the date such Option is granted, owns (within the meaning of Section 424(d) of the Code) more than ten percent (10%) of the total
combined voting power of all classes of the stock of the Company or any Parent or Subsidiary shall be exercisable after the expiration of five (5) years from the Grant Date. 
 8. Option Exercise Price and Consideration. 
 (a) Option Price. Except as provided in subsections (b) and (c) below, the exercise price for the Shares to be issued pursuant to any Option shall be such price as is determined by the Committee,
which shall in no event be less than: (i) in the case of Incentive Stock Options, the Fair Market Value of such Shares on the Grant Date; or (ii) in the case of Nonstatutory Stock Options, 85% of such Fair Market Value. 
 (b) Ten Percent Shareholders. No Option shall be granted to any Employee who, at the date such Option is granted, owns (within the
meaning of Section 424(d) of the Code) more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, unless the exercise price for the Shares to be issued pursuant to
such Option is at least equal to 110% of the Fair Market Value of such Shares on the Grant Date. 
 (c) Section 162(m)
Limitations. After the Section 162(m) Effective Date, the exercise price of any Option granted to a Covered Employee shall be at least equal to the Fair Market Value of the Shares as of the Grant Date. 
 (d) Consideration. The consideration to be paid for the Optioned Shares shall be payment by check, unless payment in some other
manner, including by promissory note, other shares of the Company’s Common Stock or such other consideration and method of payment for the issuance of Optioned Shares as may be permitted under Sections 408 and 409 of the California General
Corporation Law, is authorized by the Committee at the time of the grant of the Option. Any cash or other property received by the Company from the sale of Shares pursuant to the Plan shall constitute part of the general assets of the Company.

 9. Exercise of Option. 
 (a) Vesting Period. Any Option granted hereunder shall be exercisable at such times and under such conditions as determined by the Committee and as shall be permissible under the terms of the Plan, which shall
be specified in the Option Agreement evidencing the Option. Unless the Committee specifically determines otherwise at the time of the grant of the Option, each Option shall vest and become exercisable, cumulatively, as to twenty percent
(20%) of the Optioned Shares on each anniversary of the Grant Date until all of the Optioned Shares have vested, subject to the Optionee’s Continuous Employment. An Option may not be exercised for fractional shares or for less than ten
(10) Shares. 
 (b) Exercise Procedures. An Option shall be deemed to be exercised when written notice of such
exercise has been given to the Company in accordance with the terms of the Option by 

  

 5 

 
the person entitled to exercise the Option and full payment for the Shares with respect to which the Option is exercised has been received by the Company.
After the Registration Date, in lieu of delivery of a cash payment for the purchase price of the Optioned Shares with respect to which the Option is exercised, the Optionee may deliver to the Company a sell order to a broker for the Shares being
purchased and an agreement to pay (or have the broker remit payment for) the purchase price for the Shares being purchased on or before the settlement date for the sale of such shares to the broker. As soon as practicable following the exercise of
an Option in the manner set forth above, the Company shall issue or cause its transfer agent to issue stock certificates representing the Shares purchased. Until the issuance of such stock certificates (as evidenced by the appropriate entry on the
books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Optioned Shares notwithstanding the exercise of the Option. No
adjustment will be made for a dividend or other rights for which the record date is prior to the date of the transfer by the Optionee of the consideration for the purchase of the Shares, except as provided in Section 12 of the Plan. 

(c) Exercise of Option With Stock. If an Optionee is permitted to exercise an Option by delivering shares of the Company’s
Common Stock, the Option Agreement covering such Option may include provisions authorizing the Optionee to exercise the Option, in whole or in part, by (i) delivering whole shares of the Company’s Common Stock previously owned by such
Optionee (whether or not acquired through the prior exercise of a stock option) having a fair market value equal to the Option price; or (ii) directing the Company to withhold from the Shares that would otherwise be issued upon exercise of the
Option that number of whole Shares having a fair market value equal to the Option price. Shares of the Company’s Common Stock so delivered or withheld shall be valued at their fair market value at the close of the last business day immediately
preceding the date of exercise of the Option, as determined by the Committee. Any balance of the Option price shall be paid in cash. Any Shares delivered or withheld in accordance with this provision shall again become available for purposes of the
Plan and for Options subsequently granted thereunder. After the Registration Date, any exercise of an Option under Section 9(c)(i) or 9(c)(ii) above by a Section 16 Person shall comply with the relevant requirements of
Section 240.16b-1 et. seq. of the General Rules and Regulations. 
 (d) Termination of Status as Employee, Director or
Consultant. If an Optionee shall cease to be in Continuous Employment as an Employee, Director or Consultant for any reason other than disability or death, he or she may, but only within thirty (30) days (or such other period of time as is
determined by the Committee) after the date of Termination of Service, exercise his or her Option to the extent that he or she was entitled to exercise it at the date of Termination of Service, subject to the condition that no Option shall be
exercised after the expiration of the Option period. 
 (e) Disability of Optionee. If an Optionee shall cease to be in
Continuous Employment as an Employee, Director or Consultant due to disability, and such Optionee was in Continuous Employment as an Employee, Director or Consultant from the Grant Date until the date of Termination of Service, the Option may be
exercised at any time within six (6) months following the date of Termination of Service, but only to the extent of the accrued right to exercise at the time of Termination of Service, subject to the condition that no option shall be exercised
after the expiration of the Option period. 
 (f) Death of Optionee. In the event of the death during the Option period
of an Optionee who is at the time of his or her death, an Employee, Non-Employee Director or Consultant and who was in Continuous Employment as such from the Grant Date until the date of death, the Option may be exercised at any time within six
(6) months following the date of death by the Optionee’s estate or by a person who acquired the right to exercise the Option by bequest, 

  

 6 

 
inheritance or otherwise as a result of the Optionee’s death, but only to the extent of the accrued right to exercise at the time of death, subject to
the condition that no option shall be exercised after the expiration of the Option period. 
 (g) Tax Withholding.
After the Registration Date, when an Optionee is required to pay to the Company an amount with respect to tax withholding obligations in connection with the exercise of an Option granted under the Plan, the Optionee may elect prior to the date the
amount of such withholding tax is determined (the “Tax Date”) to make such payment, or such increased payment as the Optionee elects to make up to the maximum federal, state and local marginal tax rates, including any related FICA
obligation, applicable to the Optionee and the particular transaction, by: (i) delivering cash; (ii) delivering part or all of the payment in previously owned shares of Common Stock (whether or not acquired through the prior exercise of an
Option); and/or (iii) irrevocably directing the Company to withhold from the Shares that would otherwise be issued upon exercise of the Option that number of whole Shares having a fair market value equal to the amount of tax required or elected
to be withheld (a “Withholding Election”). If an Optionee’s Tax Date is deferred beyond the date of exercise and the Optionee makes a Withholding Election, the Optionee will initially receive the full amount of Optioned Shares
otherwise issuable upon exercise of the Option, but will be unconditionally obligated to surrender to the Company on the Tax Date the number of Shares necessary to satisfy his or her minimum withholding requirements, or such higher payment as he or
she may have elected to make, with adjustments to be made in cash after the Tax Date. 
 After the Registration Date,
notwithstanding anything in the preceding paragraph to the contrary, any withholding of Shares with respect to taxes arising in connection with the exercise of an Option by any Section 16 Person shall satisfy the conditions for exemption
therefrom set forth in Section 240.16b-1 et. seq. of the General Rules and Regulations. 
 Any adverse consequences
incurred by the Optionee with respect to the use of shares of Common Stock to pay any part of the Option Price or of any tax in connection with the exercise of an Option, including, without limitation, any adverse tax consequences arising as a
result of a disqualifying disposition within the meaning of Section 422 of the Code, shall be the sole responsibility of the Optionee. 
 10. Restricted Stock Purchase Awards. 
 (a) Grant of the Right to Purchase Restricted Stock. Subject
to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant the right to purchase Shares of Restricted Stock to Employees, Non-Employee Directors, and Consultants in such amounts as the Committee, in its sole
discretion, shall determine. 
 (b) Restricted Stock Agreement. Each Award of the right to purchase Restricted Stock
shall be evidenced by an Award Agreement that shall specify the Period of Restriction, the number of Shares purchased, and such other terms and conditions as the Committee, in its sole discretion, shall determine. Unless the Committee determines
otherwise, Shares of Restricted Stock shall be held by the Company as escrow agent until the restrictions on such Shares have lapsed. 
 (c) Transferability. Except as provided in this Section 10, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the
applicable Period of Restriction. However, in no event may the restrictions on Restricted Stock purchased by a Section 16 Person lapse prior to six (6) months following the purchase date (or such shorter period as may be permissible while
maintaining compliance with Rule 16b-3). 
  

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 (d) Purchase Price. The purchase price for the Restricted Stock shall be
(i) at least eighty five percent (85%) of the Fair Market Value of such stock at the time the purchase right is granted, or at the time the purchase is consummated; or (ii) in the case of any person who owns stock possessing more than
10% of the total combined voting power of all classes of stock of the issuing corporation or its parent or subsidiary corporations, one hundred percent (100%) of the Fair Market value of such stock either at the time the person is granted the
right to purchase shares under the Plan or at the time the purchase is consummated. 
 (e) Other Restrictions. The
Committee, in its sole discretion, may impose such other restrictions on Shares of Restricted Stock as it may deem advisable or appropriate, in accordance with this Section 10(d): 
 (i) General Restrictions. The Committee may set restrictions based upon the achievement of specific performance objectives
(Company-wide, divisional, or individual), applicable Federal or state securities laws, or any other basis determined by the Committee in its discretion. 
 (ii) Section 162(m) Performance Restrictions. For purposes of qualifying grants of rights to purchase of Restricted Stock as “performance-based compensation” under Section 162(m) of the
Code, the Committee, in its discretion, may set restrictions based upon the achievement of performance objectives established by the Committee. The performance objectives shall be set by the Committee on or before the latest date permissible to
enable the Restricted Stock to qualify as “performance-based compensation” under Section 162(m) of the Code. In granting the right to purchase Restricted Stock which is intended to qualify under Section 162(m), the Committee
shall follow any procedures determined by it from time to time to be necessary or appropriate to ensure qualification of the Restricted Stock under Code Section 162(m) (e.g., in determining the performance objectives). 
 (iii) Legend on Certificates. The Committee, in its discretion, may legend the certificates representing Restricted Stock to give
appropriate notice of such restrictions. For example, the Committee may determine that some or all certificates representing Shares of Restricted Stock shall bear the following legend: 
 “THE SALE OR OTHER TRANSFER OF THE SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE, WHETHER VOLUNTARY, INVOLUNTARY OR BY OPERATION OF LAW, IS SUBJECT
TO CERTAIN RESTRICTIONS ON TRANSFER AS SET FORTH IN THE NEXTEST SYSTEMS CORPORATION 1998 EQUITY INCENTIVE PLAN AND IN A RESTRICTED STOCK PURCHASE AGREEMENT. A COPY OF THE PLAN AND SUCH RESTRICTED STOCK PURCHASE AGREEMENT MAY BE OBTAINED FROM THE
SECRETARY OF NEXTEST SYSTEMS CORPORATION.” 
 (f) Removal of Restrictions. Except as otherwise provided in this
Section 10, Shares of Restricted Stock covered by each Restricted Stock purchase under the Plan shall be released from escrow as soon as practicable after the last day of the Period of Restriction. The Committee, in its discretion, may
accelerate the time at which any restrictions shall lapse, and remove any restrictions; provided, however, that the Period of Restriction on Shares purchased by a Section 16 Person may not lapse until at least six (6) months after the
Purchase Date (or such shorter period as may be permissible while maintaining compliance with Rule 16b-3). After the 

  

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restrictions have lapsed, the Participant shall be entitled to have any legend or legends under Section 10(d)(iii) removed from his or her Share
certificate, and the Shares shall be freely transferable by the Participant. 
 (g) Voting Rights. During the Period of
Restriction, Participants holding Shares of Restricted Stock purchased hereunder may exercise full voting rights with respect to those Shares, unless the Committee determines otherwise. 
 (h) Dividends and Other Distributions. During the Period of Restriction, Participants holding Shares of Restricted Stock shall be
entitled to receive all dividends and other distributions paid with respect to such Shares unless otherwise provided in the Award Agreement. If any such dividends or distributions are paid in Shares, the Shares shall be subject to the same
restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid. 
 (i) Return of Restricted Stock to Company. On the date set forth in the Award Agreement, the Restricted Stock for which restrictions have not lapsed shall revert to the Company and again shall become available for purchase under the
Plan. 
 11. Non-Transferability of Awards. An Award may not be sold, pledged, assigned, hypothecated, transferred or disposed of in
any manner other than by will or the laws of descent and distribution. An Option may be exercised, during the lifetime of the Optionee, only by the Optionee. 
 12. Adjustments Upon Changes in Capitalization. Subject to any required action by the shareholders of the Company, the number of Shares covered by each outstanding Award, and the number of Shares which have
been authorized for issuance under the Plan but as to which no Awards have yet been granted or which have been returned to the Plan, and the per share purchase price of each such Award, shall be proportionately adjusted for any increase or decrease
in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, combination, reclassification, the payment of a stock dividend on the Common Stock or any other increase or decrease in the number of such shares of
Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration”. Such
adjustment shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issue by the Company of shares of stock of any class, or securities convertible into
shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Award. 
 The Committee may, if it so determines in the exercise of its sole discretion, also make provision for proportionately adjusting the number or class of
securities covered by any Award, as well as the price to be paid therefor, in the event that the Company effects one or more reorganizations, recapitalizations, rights offerings, or other increases or reductions of its outstanding shares of Common
Stock, and in the event of the Company being consolidated with or merged into any other corporation. 
 Unless otherwise determined by the
Board, upon the dissolution or liquidation of the Company the Options granted under the Plan shall terminate and thereupon become null and void. Upon any merger or consolidation, if the Company is not the surviving corporation, or if the Company is
the surviving corporation in a “triangular merger” transaction with a subsidiary of a “parent corporation” (as such term is defined and used in Section 175 and Section 1101 of the California General Corporation Law),
the Options granted under the Plan shall be assumed by either the new entity or the parent corporation. 
  

 9 

 13. Time of Granting Options. Unless otherwise specified by the Committee, the date of grant of an
Award under the Plan shall be the Grant Date. Notice of the determination shall be given to each Participant to whom an Award is so granted within a reasonable time after the date of such grant. 
 14. Amendment and Termination of the Plan. The Board may amend or terminate the Plan from time to time in such respects as the Board may deem
advisable. Any such amendment or termination of the Plan shall not affect Awards already granted, and such Awards shall remain in full force and effect as if the Plan had not been amended or terminated. After the Section 162(m) Effective Date,
the modification or addition of a material term of the Plan (as determined under Section 162(m) and any applicable Treasury Regulations promulgated thereunder) shall be approved by the shareholders in the manner provided in Section 19 of
the Plan. 
 15. Conditions Upon Issuance of Shares. Shares shall not be issued with respect to an Award granted under the Plan unless
the exercise of such Award and the issuance and delivery of such Shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the Securities Act, the Exchange Act, the rules and regulations promulgated
thereunder, and the requirements of any stock exchange upon which the Shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. As a condition to the exercise of an Award, the
Company may require the person exercising such Award to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the
opinion of counsel for the Company, such a representation is required by any of the aforementioned relevant provisions of law. 
 16.
Reservation of Shares. During the term of this Plan the Company will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. The inability of the Company to obtain
authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the
nonissuance or sale of such Shares as to which such requisite authority shall not have been obtained. 
 17. Information to
Participant. During the term of any Award granted under the Plan, the Company shall provide or otherwise make available to each Participant a copy of such financial information that is provided to its shareholders in accordance with the
provisions of the Company’s Bylaws and applicable law. 
 18. Award Agreement. Awards granted under the Plan shall be evidenced
by Award Agreements. 
 19. Shareholder Approval. The Plan shall be subject to approval by the shareholders of the Company within
twelve (12) months before or after the Plan is adopted. Any amendments to the Plan requiring shareholder approval must be approved by the affirmative vote of the holders of a majority of the outstanding shares of voting stock present or
represented and entitled to vote at a duly held meeting at which a quorum is present, or by the written consent of the shareholders in the manner provided by California law. 
  

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