Document:

exv10w2

    Exhibit 10.2

 

    STOCKHOLDERS’
    AGREEMENT

 

    This STOCKHOLDERS’ AGREEMENT (this “Agreement”),
    is dated as of September 1, 2008, by and between Teradyne,
    Inc., a Massachusetts corporation (“Parent”) and the
    stockholders listed on the signature pages hereto (each a
    “Stockholder” and collectively, the
    “Stockholders”).

 

    W I T N E
    S S E T H:

 

    WHEREAS, Parent, Turin Acquisition Corp., a Delaware corporation
    and a direct wholly owned subsidiary of Parent (“Merger
    Sub”), and Eagle Test Systems, Inc., a Delaware corporation
    (the “Company”), are entering into an Agreement and
    Plan of Merger, dated as of the date hereof (as it may be
    amended from time to time in accordance with its terms, the
    “Merger Agreement”), providing for, among other
    things, the merger of Merger Sub with and into the Company with
    the Company surviving the merger as a wholly owned subsidiary of
    Parent, in each case, on the terms and subject to the conditions
    set forth in therein (capitalized terms used herein and not
    otherwise defined shall have the meanings ascribed to such terms
    in the Merger Agreement); and

 

    WHEREAS, as of the date hereof, each Stockholder is the record
    and beneficial owner of the number of shares of Common Stock set
    forth, and in the manner reflected, on Attachment A
    hereto (the “Owned Shares”); and

 

    WHEREAS, as a condition to each of Parent and Merger Sub’s
    willingness to enter into and perform their respective
    obligations under the Merger Agreement, Parent and Merger Sub
    have required that each Stockholder agree, and each Stockholder
    has agreed, (i) to vote all of such Stockholder’s
    Owned Shares as well as any shares of Common Stock acquired by
    such Stockholder after the execution of this Agreement (all of
    which, after so acquired, shall constitute “Owned
    Shares”), whether upon the exercise of options, conversion
    of convertible securities or otherwise, and any other voting
    securities of the Company (whether acquired heretofore or
    hereafter) that are beneficially owned by such Stockholder or
    over which such Stockholder has, directly or indirectly, the
    right to vote (collectively, the “Voting Shares”) in
    favor of any proposal in furtherance of the Merger Agreement or
    the transactions contemplated thereby, including the Merger, and
    (ii) to take the other actions described herein; and

 

    WHEREAS, each Stockholder desires to express its support for the
    Merger Agreement and the transactions contemplated thereby,
    including the Merger, by executing this Agreement; and

 

    NOW, THEREFORE, in consideration of the foregoing and for other
    good and valuable consideration given to each party hereto, the
    receipt of which is hereby acknowledged, the parties agree as
    follows:

 

    1. Agreement to Vote; Irrevocable Proxy.

 

    1.1 Agreement to Vote.  Each
    Stockholder hereby agrees that, during the time this Agreement
    is in effect, at any meeting of the stockholders of the Company,
    however called, or any adjournment or postponement thereof, such
    Stockholder shall be present (in person or by proxy) and vote
    (or cause to be voted) all of its Voting Shares (a) in
    favor of the adoption of the Merger Agreement and
    (b) against any Alternative Proposal and against any action
    or agreement that would delay, prevent, impede or impair the
    ability of Parent and Merger Sub to complete the Merger or the
    ability of the Company to consummate the Merger or the
    transactions contemplated by the Merger Agreement.

 

    1.2 Irrevocable Proxy.  Solely with
    respect to the matters described in Section 1.1, for so
    long as this Agreement has not terminated in accordance with
    Section 5.1, each Stockholder hereby irrevocably appoints
    Parent (or any nominee of Parent) as its attorney and proxy with
    full power of substitution and resubstitution, to the full
    extent of such Stockholder’s voting rights with respect to
    such Stockholder’s Voting Shares (which proxy is
    irrevocable and which appointment is coupled with an interest,
    including for purposes of Section 212 of the Delaware
    General Corporation Law) to vote all such Stockholder’s
    Voting Shares solely

 

    on the matters described in Section 1.1, and in accordance
    therewith. Each Stockholder hereby revokes any proxies
    previously granted that would otherwise conflict with the proxy
    contemplated pursuant to this Section 1.2 and agrees to
    execute any further agreement or form reasonably necessary or
    appropriate to confirm and effectuate the grant of the proxy
    contained herein. Such proxy shall automatically terminate upon
    the valid termination of this Agreement in accordance with
    Section 5.1.

 

    2. Representations and Warranties of
    Stockholders.  Each Stockholder hereby
    represents and warrants to Parent as follows:

 

    2.1 Due Organization.  Such
    Stockholder, if a corporation or other entity, has been duly
    organized, is validly existing and is in good standing under the
    laws of the state of its formation or organization.

 

    2.2 Power; Due Authorization; Binding
    Agreement.  Such Stockholder has full legal
    capacity, power and authority to execute and deliver this
    Agreement, to perform its obligations hereunder and to
    consummate the transactions contemplated hereby. This Agreement
    has been duly and validly executed and delivered by such
    Stockholder and constitutes a valid and binding agreement of
    such Stockholder, enforceable against Stockholder in accordance
    with its terms, except to the extent that enforceability may be
    subject to the effect of any applicable bankruptcy,
    reorganization, insolvency, moratorium or other similar laws
    affecting or relating to the enforcement of creditors rights
    generally and to general principles of equity.

 

    2.3 Ownership of Shares.  On the
    date hereof, the Owned Shares set forth opposite such
    Stockholder’s name on Attachment A hereto are owned
    of record or beneficially by such Stockholder in the manner
    reflected thereon and include all of the Voting Shares owned of
    record or beneficially by such Stockholder, free and clear of
    any claims, liens, encumbrances and security interests, except
    (if applicable) as set forth on Attachment A hereto,
    which encumbrances or other items do not affect in any respect
    the ability of such Stockholder to perform such
    Stockholder’s obligations hereunder. As of the date hereof
    such Stockholder has, and at all times prior to the valid
    termination of this Agreement in accordance with
    Section 5.1 such Stockholder will have (except as otherwise
    permitted by this Agreement), sole voting power (to the extent
    such securities have voting power) and sole dispositive power
    with respect to all of the Owned Shares, except as otherwise
    reflected on Attachment A.

 

    2.4 No Conflicts.  The execution
    and delivery of this Agreement by such Stockholder does not, and
    the performance of the terms of this Agreement by such
    Stockholder will not, (a) require such Stockholder to
    obtain the consent or approval of, or make any filing with or
    notification to, any governmental or regulatory authority,
    domestic or foreign, (b) require the consent or approval of
    any other person or entity pursuant to any agreement, obligation
    or instrument binding on such Stockholder or its properties and
    assets, (c) conflict with or violate any organizational
    document or law, rule, regulation, order, judgment or decree
    applicable to such Stockholder or pursuant to which any of its
    or its affiliates’ respective properties or assets are
    bound or (d) violate any other agreement to which such
    Stockholder or any of its affiliates is a party including,
    without limitation, any voting agreement, stockholders
    agreement, irrevocable proxy or voting trust. The Voting Shares
    are not, with respect to the voting or transfer thereof, subject
    to any other agreement, including any voting agreement,
    stockholders agreement, irrevocable proxy or voting trust.

 

    2.5 Acknowledgment.  Such
    Stockholder understands and acknowledges that each of Parent and
    Merger Sub is entering into the Merger Agreement in reliance
    upon such Stockholder’s execution, delivery and performance
    of this Agreement.

 

    3. Representations and Warranties of
    Parent.  Parent hereby represents and warrants
    to the Stockholders as follows:

 

    3.1 Power; Due Authorization; Binding
    Agreement.  Parent is a corporation duly
    organized, validly existing and in good standing under the laws
    of the Commonwealth of Massachusetts. Parent has full corporate
    power and authority to execute and deliver this Agreement, to
    perform its obligations hereunder and to consummate the
    transactions contemplated hereby. The execution and delivery of
    this Agreement and the consummation by Parent of the
    transactions contemplated hereby have been duly and validly
    authorized by all necessary corporate action on the part of
    Parent, and no other proceedings on the part of Parent are
    necessary to authorize this Agreement or to consummate the
    transactions contemplated hereby. This Agreement has been

    

    2

 

    duly and validly executed and delivered by Parent and
    constitutes a valid and binding agreement of Parent, except that
    enforceability may be subject to the effect of any applicable
    bankruptcy, reorganization, insolvency, moratorium or other
    similar laws affecting or relating to the enforcement of
    creditors rights generally and to general principles of equity.

 

    3.2 No Conflicts.  The execution
    and delivery of this Agreement by Parent does not, and the
    performance of the terms of this Agreement by Parent will not,
    (a) require Parent to obtain the consent or approval of, or
    make any filing with or notification to, any governmental or
    regulatory authority, domestic or foreign or (b) conflict
    with or violate any organizational document or law, rule,
    regulation, order, judgment or decree applicable to Parent or
    pursuant to which any of its or its subsidiaries’
    respective assets are bound.

 

    4. Certain Covenants of the
    Stockholders.  Each Stockholder hereby
    covenants and agrees with Parent as follows:

 

    4.1 Restriction on Transfer, Proxies and
    Non-Interference.  Each Stockholder hereby
    agrees, while this Agreement is in effect, at any time prior to
    the Effective Time, and otherwise as is contemplated by the
    Merger Agreement, not to (a) other than as may be
    specifically required by a court order, which such Stockholder
    shall use its reasonable best efforts to avoid (including by
    offering substitute consideration or property) and provided
    further that such Stockholder shall use reasonable best efforts
    to cause any such Voting Shares to be transferred subject to
    this Agreement, sell, transfer, pledge, encumber (except as set
    forth on Attachment A or due to this Agreement), assign
    or otherwise dispose of (including, without limitation, by gift,
    merger, consolidation or reorganization), or enter into any
    contract, option or other arrangement or understanding with
    respect to the sale, transfer, pledge, encumbrance, assignment
    or other disposition of, or limitation on the voting rights of,
    any of the Voting Shares (any such action, a
    “Transfer”), provided that nothing in this Agreement
    shall prohibit the exercise by such Stockholder of any options
    to purchase Voting Shares, (b) grant any proxies or powers
    of attorney, deposit any Voting Shares into a voting trust or
    enter into a voting agreement with respect to any Voting Shares,
    (c) take any action that would cause any representation or
    warranty of such Stockholder contained herein to become untrue
    or incorrect or have the effect of preventing or disabling
    Stockholder from performing its obligations under this
    Agreement, or (d) commit or agree to take any of the
    foregoing actions. Any action taken in violation of the
    foregoing sentence shall be null and void ab initio and each
    Stockholder agrees that any such prohibited action may and
    should be enjoined. If any involuntary Transfer of any of the
    Voting Shares shall occur (including, but not limited to, a sale
    by a Stockholder’s trustee in any bankruptcy, or a sale to
    a purchaser at any creditor’s or court sale or any sale or
    transfer by operation of law, including, without limitation, by
    will or intestacy), the transferee (which term, as used herein,
    shall include any and all transferees and subsequent transferees
    of the initial transferee) shall take and hold such Voting
    Shares subject to all of the restrictions, liabilities and
    rights under this Agreement, which shall continue in full force
    and effect until valid termination of this Agreement.

 

    4.2 Additional Shares.  Each
    Stockholder hereby agrees, while this Agreement is in effect,
    that any shares of Common Stock acquired by such Stockholder
    after the date hereof shall be subject to the terms of this
    Agreement as though owned by such Stockholder on the date hereof.

 

    4.3 No Limitations on
    Actions.  Each Stockholder signs this
    Agreement solely in its capacity as the record
    and/or
    beneficial owner, as applicable, of the Owned Shares; any
    trustee who signs this Agreement on behalf of a Stockholder that
    is a trust is signing only in his fiduciary capacity and not as
    an individual; this Agreement shall not limit or otherwise
    affect the actions of such Stockholder or any affiliate,
    employee or designee of such Stockholder or any of its
    affiliates in any other capacity, including such person’s
    capacity, if any, as an officer of the Company or a member of
    the board of directors of the Company; and nothing herein shall
    limit or affect the Company’s rights in connection with the
    Merger Agreement.

 

    4.4 No Solicitation.  Each
    Stockholder agrees, while this Agreement is in effect, not to
    directly or indirectly engage in any activity which would be
    prohibited pursuant to Section 5.2(a) of the Merger
    Agreement if engaged in by the Company.

 

    4.5 Disclosure.  Each Stockholder
    hereby permits Parent or the Company to publish and disclose in
    any proxy materials (including, but not limited to, all
    documents and schedules filed with the Securities and

    

    3

 

    Exchange Commission) its identity and ownership of shares of
    Common Stock and the terms of this Agreement.

 

    4.6 Further Assurances.  From time
    to time, at the request of Parent and without further
    consideration, each Stockholder shall execute and deliver such
    additional documents and take all such further action as may be
    necessary or reasonably desirable to consummate and make
    effective the transactions contemplated by this Agreement.

 

    5. Miscellaneous.

 

    5.1 Termination of this
    Agreement.  This Agreement shall terminate
    upon the earlier to occur of (i) the termination of the
    Merger Agreement in accordance with its terms, or (ii) the
    consummation of the Merger.

 

    5.2 Effect of Termination.  In the
    event of termination of this Agreement pursuant to
    Section 5.1, this Agreement shall become void and of no
    effect with no liability on the part of any party hereto;
    provided, however, no such termination shall relieve any party
    hereto from any liability for any breach of this Agreement
    occurring prior to such termination; and provided, further, that
    upon payment of the Termination Fee (as defined in the Merger
    Agreement) Stockholder shall have no further liability with
    respect to this Agreement or the transactions contemplated
    hereby.

 

    5.3 Non-Survival.  The
    representations and warranties made herein shall not survive the
    termination of this Agreement.

 

    5.4 Entire Agreement;
    Assignment.  This Agreement constitutes the
    entire agreement among the parties with respect to the subject
    matter hereof and supersedes all other prior agreements and
    understandings, both written and oral, among the parties with
    respect to the subject matter hereof. Nothing in this Agreement,
    express or implied, is intended to or shall confer upon any
    other person or entity any right, benefit or remedy of any
    nature whatsoever under or by reason of this Agreement. This
    Agreement shall not be assigned by operation of law or otherwise
    and shall be binding upon and inure solely to the benefit of
    each party hereto.

 

    5.5 Amendments.  This Agreement may
    not be modified, amended, altered or supplemented, except upon
    the execution and delivery of a written agreement executed by
    each of the parties hereto.

 

    5.6 Notices.  Any notice required
    to be given hereunder shall be sufficient if in writing, and
    sent by facsimile transmission (provided that any notice
    received by facsimile transmission or otherwise at the
    addressee’s location on any Business Day after
    5:00 p.m. (addressee’s local time) shall be deemed to
    have been received at 9:00 a.m. (addressee’s local
    time) on the next Business Day), by reliable overnight delivery
    service (with proof of service), hand delivery or certified or
    registered mail (return receipt requested and first-class
    postage prepaid), addressed as follows:

 

    If to the Stockholders:

 

    Leonard A. Foxman

    c/o Eagle
    Test Systems, Inc.

    2200 Millbrook Drive

    Buffalo Grove, IL 60089

    Fax:
    (847) 367-8640

 

    If to Parent:

 

    Teradyne, Inc.

    700 Riverpark Drive

    North Reading, Mass. 01864

    Attention: Eileen Casal, V.P. & General Counsel

    Fax:
    (978) 370-2290

    

    4

 

 

    with copy to:

 

    WilmerHale LLP

    60 State Street

    Boston, Mass 02109

    Attention: Jay E. Bothwick, Esq.

    Fax:
    617-526-5000

 

    or to such other address as any party shall specify by written
    notice so given, and such notice shall be deemed to have been
    delivered as of the date so telecommunicated, personally
    delivered or received. Any party to this Agreement may notify
    any other party of any changes to the address or any of the
    other details specified in this paragraph; provided, however,
    that such notification shall only be effective on the date
    specified in such notice or two Business Days after the notice
    is given, whichever is later. Rejection or other refusal to
    accept or the inability to deliver because of changed address of
    which no notice was given shall be deemed to be receipt of the
    notice as of the date of such rejection, refusal or inability to
    deliver.

 

    5.7 Governing Law; Venue.

 

    (a) This Agreement shall be governed by, and construed in
    accordance with, the Laws of the State of Delaware, without
    giving effect to conflicts of laws principles that would result
    in the application of the Law of any other state.

 

    (b) Each of the parties hereto hereby irrevocably and
    unconditionally submits, for itself and its property, to the
    exclusive jurisdiction of the Delaware Court of Chancery, or, if
    no such state court has proper jurisdiction, the Federal court
    of the United States of America, sitting in Delaware, and any
    appellate court from any thereof, in any action or proceeding
    arising out of or relating to this Agreement or the transactions
    contemplated hereby or for recognition or enforcement of any
    judgment relating thereto, and each of the parties hereby
    irrevocably and unconditionally (i) agrees not to commence
    any such action or proceeding except in such courts;
    (ii) agrees that any claim in respect of any such action or
    proceeding may be heard and determined in such Delaware Court of
    Chancery or, if no such state court has proper jurisdiction,
    then in such Federal court; (iii) waives, to the fullest
    extent it may legally and effectively do so, any objection which
    it may now or hereafter have to the laying of venue of any such
    action or proceeding in any such Delaware Court of Chancery or
    Federal court; and (iv) waives, to the fullest extent
    permitted by Law, the defense of an inconvenient forum to the
    maintenance of such action or proceeding in any such Delaware
    Court of Chancery or Federal court. Each of the parties hereto
    agrees that a final judgment in any such action or proceeding
    shall be conclusive and may be enforced in other jurisdictions
    by suit on the judgment or in any other manner provided by Law.
    Each party to this Agreement irrevocably consents to service of
    process in the manner provided for notices in Section 5.6.
    Nothing in this Agreement will affect the right of any party to
    this Agreement to serve process in any other manner permitted by
    Law. Each party hereto agrees not to commence any legal
    proceedings relating to or arising out of this Agreement or the
    Transactions in any jurisdiction or courts other than as
    provided herein.

 

    5.8 WAIVER OF JURY TRIAL.  EACH
    PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT
    MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
    DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
    AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT:
    (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
    HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
    WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE SUCH
    WAIVER; (B) IT UNDERSTANDS AND HAS CONSIDERED THE
    IMPLICATIONS OF SUCH WAIVER; (C) IT MAKES SUCH WAIVER
    VOLUNTARILY; AND (D) IT HAS BEEN INDUCED TO ENTER INTO THIS
    AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
    CERTIFICATIONS IN THIS SECTION 5.8.

 

    5.9 Specific Performance.  The
    parties agree that irreparable damage would occur in the event
    that any of the provisions of this Agreement were not performed
    in accordance with its specific terms or were

    

    5

 

    otherwise breached. Each Stockholder agrees that, in the event
    of any breach or threatened breach by such Stockholder of any
    covenant or obligation contained in this Agreement, Parent shall
    be entitled (in addition to any other remedy that may be
    available to it, including monetary damages) to seek and obtain
    (a) a decree or order of specific performance to enforce
    the observance and performance of such covenant or obligation,
    and (b) an injunction restraining such breach or threatened
    breach. Each Stockholder further agrees that neither Parent nor
    any other person or entity shall be required to obtain, furnish
    or post any bond or similar instrument in connection with or as
    a condition to obtaining any remedy referred to in this
    Section 5.9, and each Stockholder irrevocably waives any
    right it may have to require the obtaining, furnishing or
    posting of any such bond or similar instrument.

 

    5.10 Counterparts.  This Agreement
    may be executed in two or more counterparts, each of which shall
    be deemed an original but all of which together shall be
    considered one and the same agreement and shall become effective
    when counterparts have been signed by each of the parties hereto
    and delivered to the other parties, it being understood that all
    parties need not sign the same counterpart. This Agreement may
    be executed and delivered by facsimile transmission.

 

    5.11 Descriptive Headings.  The
    descriptive headings used herein are inserted for convenience of
    reference only and are not intended to be part of or to affect
    the meaning or interpretation of this Agreement.

 

    5.12 Severability.  Any term or
    provision of this Agreement that is invalid or unenforceable in
    any situation in any jurisdiction shall not affect the validity
    or enforceability of the remaining terms and provisions hereof
    or the validity or enforceability of the offending term or
    provision in any other situation or in any other jurisdiction.
    If the final judgment of a court of competent jurisdiction
    declares that any term or provision hereof is invalid or
    unenforceable, the parties hereto agree that the court making
    such determination shall have the power to limit the term or
    provision, to delete specific words or phrases, or to replace
    any invalid or unenforceable term or provision with a term or
    provision that is valid and enforceable and that comes closest
    to expressing the intention of the invalid or unenforceable term
    or provision, and this Agreement shall be enforceable as so
    modified. In the event such court does not exercise the power
    granted to it in the prior sentence, the parties hereto agree to
    replace such invalid or unenforceable term or provision with a
    valid and enforceable term or provision that will achieve, to
    the extent possible, the economic, business and other purposes
    of such invalid or unenforceable term.

 

    [Remainder of
    Page Intentionally Blank]

    

    6

 

    IN WITNESS WHEREOF, the parties hereto have caused this
    Stockholders’ Agreement to be duly executed as of the day
    and year first above written.

 

    TERADYNE, INC.

 

			
	 	    By: 
	
    /s/  Michael
    A. Bradley

    Name:     Michael A. Bradley

			
	 	    Title: 
	
    President and CEO

 

    /s/  Leonard
    A. Foxman 

    Leonard A. Foxman

 

    ATTACHMENT
    A

 

    Details of Ownership

 

	 	 	 	 	 
	

    Shares

	
 
	

    Entity or Individual Name

	 

	
 
	
    2,909,971(1
	
    )
	
 
	
    Leonard A. Foxman

 

 

			
	
    (1) 		
    Includes 2,152,868 shares held by Foxman Family LLC, of
    which Leonard Foxman is the manager. Leonard Foxman has voting
    and investment power with respect to the shares held of record
    by Foxman Family LLC. Leonard Foxman has no economic interest in
    Foxman Family LLC. Also includes 30,112 shares which are
    held in his individual account in the Company’s Profit
    Sharing and Employee Savings Plan and 25,900 shares which
    are held in his spouse’s individual account in the
    Company’s Profit Sharing and Employee Savings Plan.exv10w3

    Exhibit 10.3

 

    STOCKHOLDERS’
    AGREEMENT

 

    This STOCKHOLDERS’ AGREEMENT (this “Agreement”),
    is dated as of September 1, 2008, by and between Teradyne,
    Inc., a Massachusetts corporation (“Parent”) and the
    stockholders listed on the signature pages hereto (each a
    “Stockholder” and collectively, the
    “Stockholders”).

 

    W I T N E
    S S E T H:

 

    WHEREAS, Parent, Turin Acquisition Corp., a Delaware corporation
    and a direct wholly owned subsidiary of Parent (“Merger
    Sub”), and Eagle Test Systems, Inc., a Delaware corporation
    (the “Company”), are entering into an Agreement and
    Plan of Merger, dated as of the date hereof (as it may be
    amended from time to time in accordance with its terms, the
    “Merger Agreement”), providing for, among other
    things, the merger of Merger Sub with and into the Company with
    the Company surviving the merger as a wholly owned subsidiary of
    Parent, in each case, on the terms and subject to the conditions
    set forth in therein (capitalized terms used herein and not
    otherwise defined shall have the meanings ascribed to such terms
    in the Merger Agreement); and

 

    WHEREAS, as of the date hereof, each Stockholder is the record
    and beneficial owner of the number of shares of Common Stock set
    forth, and in the manner reflected, on Attachment A
    hereto (the “Owned Shares”); and

 

    WHEREAS, as a condition to each of Parent and Merger Sub’s
    willingness to enter into and perform their respective
    obligations under the Merger Agreement, Parent and Merger Sub
    have required that each Stockholder agree, and each Stockholder
    has agreed, (i) to vote all of such Stockholder’s
    Owned Shares as well as any shares of Common Stock acquired by
    such Stockholder after the execution of this Agreement (all of
    which, after so acquired, shall constitute “Owned
    Shares”), whether upon the exercise of options, conversion
    of convertible securities or otherwise, and any other voting
    securities of the Company (whether acquired heretofore or
    hereafter) that are beneficially owned by such Stockholder or
    over which such Stockholder has, directly or indirectly, the
    right to vote (collectively, the “Voting Shares”) in
    favor of any proposal in furtherance of the Merger Agreement or
    the transactions contemplated thereby, including the Merger, and
    (ii) to take the other actions described herein; and

 

    WHEREAS, each Stockholder desires to express its support for the
    Merger Agreement and the transactions contemplated thereby,
    including the Merger, by executing this Agreement; and

 

    NOW, THEREFORE, in consideration of the foregoing and for other
    good and valuable consideration given to each party hereto, the
    receipt of which is hereby acknowledged, the parties agree as
    follows:

 

    1. Agreement to Vote; Irrevocable Proxy.

 

    1.1 Agreement to Vote.  Each
    Stockholder hereby agrees that, during the time this Agreement
    is in effect, at any meeting of the stockholders of the Company,
    however called, or any adjournment or postponement thereof, such
    Stockholder shall be present (in person or by proxy) and vote
    (or cause to be voted) all of its Voting Shares (a) in
    favor of the adoption of the Merger Agreement and
    (b) against any Alternative Proposal and against any action
    or agreement that would delay, prevent, impede or impair the
    ability of Parent and Merger Sub to complete the Merger or the
    ability of the Company to consummate the Merger or the
    transactions contemplated by the Merger Agreement.

 

    1.2 Irrevocable Proxy.  Solely with
    respect to the matters described in Section 1.1, for so
    long as this Agreement has not terminated in accordance with
    Section 5.1, each Stockholder hereby irrevocably appoints
    Parent (or any nominee of Parent) as its attorney and proxy with
    full power of substitution and resubstitution, to the full
    extent of such Stockholder’s voting rights with respect to
    such Stockholder’s Voting Shares (which proxy is
    irrevocable and which appointment is coupled with an interest,
    including for purposes of Section 212 of the Delaware
    General Corporation Law) to vote all such Stockholder’s
    Voting Shares solely

 

    on the matters described in Section 1.1, and in accordance
    therewith. Each Stockholder hereby revokes any proxies
    previously granted that would otherwise conflict with the proxy
    contemplated pursuant to this Section 1.2 and agrees to
    execute any further agreement or form reasonably necessary or
    appropriate to confirm and effectuate the grant of the proxy
    contained herein. Such proxy shall automatically terminate upon
    the valid termination of this Agreement in accordance with
    Section 5.1.

 

    2. Representations and Warranties of
    Stockholders.  Each Stockholder hereby
    represents and warrants to Parent as follows:

 

    2.1 Due Organization.  Such
    Stockholder, if a corporation or other entity, has been duly
    organized, is validly existing and is in good standing under the
    laws of the state of its formation or organization.

 

    2.2 Power; Due Authorization; Binding
    Agreement.  Such Stockholder has full legal
    capacity, power and authority to execute and deliver this
    Agreement, to perform its obligations hereunder and to
    consummate the transactions contemplated hereby. This Agreement
    has been duly and validly executed and delivered by such
    Stockholder and constitutes a valid and binding agreement of
    such Stockholder, enforceable against Stockholder in accordance
    with its terms, except to the extent that enforceability may be
    subject to the effect of any applicable bankruptcy,
    reorganization, insolvency, moratorium or other similar laws
    affecting or relating to the enforcement of creditors rights
    generally and to general principles of equity.

 

    2.3 Ownership of Shares.  On the
    date hereof, the Owned Shares set forth opposite such
    Stockholder’s name on Attachment A hereto are owned
    of record or beneficially by such Stockholder in the manner
    reflected thereon and include all of the Voting Shares owned of
    record or beneficially by such Stockholder, free and clear of
    any claims, liens, encumbrances and security interests, except
    (if applicable) as set forth on Attachment A hereto,
    which encumbrances or other items do not affect in any respect
    the ability of such Stockholder to perform such
    Stockholder’s obligations hereunder. As of the date hereof
    such Stockholder has, and at all times prior to the valid
    termination of this Agreement in accordance with
    Section 5.1 such Stockholder will have (except as otherwise
    permitted by this Agreement), sole voting power (to the extent
    such securities have voting power) and sole dispositive power
    with respect to all of the Owned Shares, except as otherwise
    reflected on Attachment A.

 

    2.4 No Conflicts.  The execution
    and delivery of this Agreement by such Stockholder does not, and
    the performance of the terms of this Agreement by such
    Stockholder will not, (a) require such Stockholder to
    obtain the consent or approval of, or make any filing with or
    notification to, any governmental or regulatory authority,
    domestic or foreign, (b) require the consent or approval of
    any other person or entity pursuant to any agreement, obligation
    or instrument binding on such Stockholder or its properties and
    assets, (c) conflict with or violate any organizational
    document or law, rule, regulation, order, judgment or decree
    applicable to such Stockholder or pursuant to which any of its
    or its affiliates’ respective properties or assets are
    bound or (d) violate any other agreement to which such
    Stockholder or any of its affiliates is a party including,
    without limitation, any voting agreement, stockholders
    agreement, irrevocable proxy or voting trust. The Voting Shares
    are not, with respect to the voting or transfer thereof, subject
    to any other agreement, including any voting agreement,
    stockholders agreement, irrevocable proxy or voting trust.

 

    2.5 Acknowledgment.  Such
    Stockholder understands and acknowledges that each of Parent and
    Merger Sub is entering into the Merger Agreement in reliance
    upon such Stockholder’s execution, delivery and performance
    of this Agreement.

 

    3. Representations and Warranties of
    Parent.  Parent hereby represents and warrants
    to the Stockholders as follows:

 

    3.1 Power; Due Authorization; Binding
    Agreement.  Parent is a corporation duly
    organized, validly existing and in good standing under the laws
    of the Commonwealth of Massachusetts. Parent has full corporate
    power and authority to execute and deliver this Agreement, to
    perform its obligations hereunder and to consummate the
    transactions contemplated hereby. The execution and delivery of
    this Agreement and the consummation by Parent of the
    transactions contemplated hereby have been duly and validly
    authorized by all necessary corporate action on the part of
    Parent, and no other proceedings on the part of Parent are
    necessary to authorize this Agreement or to consummate the
    transactions contemplated hereby. This Agreement has been

    

    2

 

    duly and validly executed and delivered by Parent and
    constitutes a valid and binding agreement of Parent, except that
    enforceability may be subject to the effect of any applicable
    bankruptcy, reorganization, insolvency, moratorium or other
    similar laws affecting or relating to the enforcement of
    creditors rights generally and to general principles of equity.

 

    3.2 No Conflicts.  The execution
    and delivery of this Agreement by Parent does not, and the
    performance of the terms of this Agreement by Parent will not,
    (a) require Parent to obtain the consent or approval of, or
    make any filing with or notification to, any governmental or
    regulatory authority, domestic or foreign or (b) conflict
    with or violate any organizational document or law, rule,
    regulation, order, judgment or decree applicable to Parent or
    pursuant to which any of its or its subsidiaries’
    respective assets are bound.

 

    4. Certain Covenants of the
    Stockholders.  Each Stockholder hereby
    covenants and agrees with Parent as follows:

 

    4.1 Restriction on Transfer, Proxies and
    Non-Interference.  Each Stockholder hereby
    agrees, while this Agreement is in effect, at any time prior to
    the Effective Time, and otherwise as is contemplated by the
    Merger Agreement, not to (a) other than as may be
    specifically required by a court order, which such Stockholder
    shall use its reasonable best efforts to avoid (including by
    offering substitute consideration or property) and provided
    further that such Stockholder shall use reasonable best efforts
    to cause any such Voting Shares to be transferred subject to
    this Agreement, sell, transfer, pledge, encumber (except as set
    forth on Attachment A or due to this Agreement), assign
    or otherwise dispose of (including, without limitation, by gift,
    merger, consolidation or reorganization), or enter into any
    contract, option or other arrangement or understanding with
    respect to the sale, transfer, pledge, encumbrance, assignment
    or other disposition of, or limitation on the voting rights of,
    any of the Voting Shares (any such action, a
    “Transfer”), provided that nothing in this Agreement
    shall prohibit the exercise by such Stockholder of any options
    to purchase Voting Shares, (b) grant any proxies or powers
    of attorney, deposit any Voting Shares into a voting trust or
    enter into a voting agreement with respect to any Voting Shares,
    (c) take any action that would cause any representation or
    warranty of such Stockholder contained herein to become untrue
    or incorrect or have the effect of preventing or disabling
    Stockholder from performing its obligations under this
    Agreement, or (d) commit or agree to take any of the
    foregoing actions. Any action taken in violation of the
    foregoing sentence shall be null and void ab initio and each
    Stockholder agrees that any such prohibited action may and
    should be enjoined. If any involuntary Transfer of any of the
    Voting Shares shall occur (including, but not limited to, a sale
    by a Stockholder’s trustee in any bankruptcy, or a sale to
    a purchaser at any creditor’s or court sale or any sale or
    transfer by operation of law, including, without limitation, by
    will or intestacy), the transferee (which term, as used herein,
    shall include any and all transferees and subsequent transferees
    of the initial transferee) shall take and hold such Voting
    Shares subject to all of the restrictions, liabilities and
    rights under this Agreement, which shall continue in full force
    and effect until valid termination of this Agreement.

 

    4.2 Additional Shares.  Each
    Stockholder hereby agrees, while this Agreement is in effect,
    that any shares of Common Stock acquired by such Stockholder
    after the date hereof shall be subject to the terms of this
    Agreement as though owned by such Stockholder on the date hereof.

 

    4.3 No Limitations on
    Actions.  Each Stockholder signs this
    Agreement solely in its capacity as the record
    and/or
    beneficial owner, as applicable, of the Owned Shares; any
    trustee who signs this Agreement on behalf of a Stockholder that
    is a trust is signing only in his fiduciary capacity and not as
    an individual; this Agreement shall not limit or otherwise
    affect the actions of such Stockholder or any affiliate,
    employee or designee of such Stockholder or any of its
    affiliates in any other capacity, including such person’s
    capacity, if any, as an officer of the Company or a member of
    the board of directors of the Company; and nothing herein shall
    limit or affect the Company’s rights in connection with the
    Merger Agreement.

 

    4.4 No Solicitation.  Each
    Stockholder agrees, while this Agreement is in effect, not to
    directly or indirectly engage in any activity which would be
    prohibited pursuant to Section 5.2(a) of the Merger
    Agreement if engaged in by the Company.

    

    3

 

    4.5 Disclosure.  Each Stockholder
    hereby permits Parent or the Company to publish and disclose in
    any proxy materials (including, but not limited to, all
    documents and schedules filed with the Securities and Exchange
    Commission) its identity and ownership of shares of Common Stock
    and the terms of this Agreement.

 

    4.6 Further Assurances.  From time
    to time, at the request of Parent and without further
    consideration, each Stockholder shall execute and deliver such
    additional documents and take all such further action as may be
    necessary or reasonably desirable to consummate and make
    effective the transactions contemplated by this Agreement.

 

    5. Miscellaneous.

 

    5.1 Termination of this
    Agreement.  This Agreement shall terminate
    upon the earlier to occur of (i) the termination of the
    Merger Agreement in accordance with its terms, or (ii) the
    consummation of the Merger.

 

    5.2 Effect of Termination.  In the
    event of termination of this Agreement pursuant to
    Section 5.1, this Agreement shall become void and of no
    effect with no liability on the part of any party hereto;
    provided, however, no such termination shall relieve any party
    hereto from any liability for any breach of this Agreement
    occurring prior to such termination; and provided, further, that
    upon payment of the Termination Fee (as defined in the Merger
    Agreement) Stockholder shall have no further liability with
    respect to this Agreement or the transactions contemplated
    hereby.

 

    5.3 Non-Survival.  The
    representations and warranties made herein shall not survive the
    termination of this Agreement.

 

    5.4 Entire Agreement;
    Assignment.  This Agreement constitutes the
    entire agreement among the parties with respect to the subject
    matter hereof and supersedes all other prior agreements and
    understandings, both written and oral, among the parties with
    respect to the subject matter hereof. Nothing in this Agreement,
    express or implied, is intended to or shall confer upon any
    other person or entity any right, benefit or remedy of any
    nature whatsoever under or by reason of this Agreement. This
    Agreement shall not be assigned by operation of law or otherwise
    and shall be binding upon and inure solely to the benefit of
    each party hereto.

 

    5.5 Amendments.  This Agreement may
    not be modified, amended, altered or supplemented, except upon
    the execution and delivery of a written agreement executed by
    each of the parties hereto.

 

    5.6 Notices.  Any notice required
    to be given hereunder shall be sufficient if in writing, and
    sent by facsimile transmission (provided that any notice
    received by facsimile transmission or otherwise at the
    addressee’s location on any Business Day after
    5:00 p.m. (addressee’s local time) shall be deemed to
    have been received at 9:00 a.m. (addressee’s local
    time) on the next Business Day), by reliable overnight delivery
    service (with proof of service), hand delivery or certified or
    registered mail (return receipt requested and first-class
    postage prepaid), addressed as follows:

 

    If to the Stockholders:

 

    Theodore D. Foxman

    c/o Eagle
    Test Systems, Inc.

    2200 Millbrook Drive

    Buffalo Grove, IL 60089

    Fax:
    (847) 367-8640

 

    If to Parent:

 

    Teradyne, Inc.

    700 Riverpark Drive

    North Reading, Mass. 01864

    Attention: Eileen Casal, V.P. & General Counsel

    Fax:
    (978) 370-2290

    

    4

 

    with copy to:

 

    WilmerHale LLP

    60 State Street

    Boston, Mass 02109

    Attention: Jay E. Bothwick, Esq.

    Fax:
    617-526-5000

 

    or to such other address as any party shall specify by written
    notice so given, and such notice shall be deemed to have been
    delivered as of the date so telecommunicated, personally
    delivered or received. Any party to this Agreement may notify
    any other party of any changes to the address or any of the
    other details specified in this paragraph; provided, however,
    that such notification shall only be effective on the date
    specified in such notice or two Business Days after the notice
    is given, whichever is later. Rejection or other refusal to
    accept or the inability to deliver because of changed address of
    which no notice was given shall be deemed to be receipt of the
    notice as of the date of such rejection, refusal or inability to
    deliver.

 

    5.7 Governing Law; Venue.

 

    (a) This Agreement shall be governed by, and construed in
    accordance with, the Laws of the State of Delaware, without
    giving effect to conflicts of laws principles that would result
    in the application of the Law of any other state.

 

    (b) Each of the parties hereto hereby irrevocably and
    unconditionally submits, for itself and its property, to the
    exclusive jurisdiction of the Delaware Court of Chancery, or, if
    no such state court has proper jurisdiction, the Federal court
    of the United States of America, sitting in Delaware, and any
    appellate court from any thereof, in any action or proceeding
    arising out of or relating to this Agreement or the transactions
    contemplated hereby or for recognition or enforcement of any
    judgment relating thereto, and each of the parties hereby
    irrevocably and unconditionally (i) agrees not to commence
    any such action or proceeding except in such courts;
    (ii) agrees that any claim in respect of any such action or
    proceeding may be heard and determined in such Delaware Court of
    Chancery or, if no such state court has proper jurisdiction,
    then in such Federal court; (iii) waives, to the fullest
    extent it may legally and effectively do so, any objection which
    it may now or hereafter have to the laying of venue of any such
    action or proceeding in any such Delaware Court of Chancery or
    Federal court; and (iv) waives, to the fullest extent
    permitted by Law, the defense of an inconvenient forum to the
    maintenance of such action or proceeding in any such Delaware
    Court of Chancery or Federal court. Each of the parties hereto
    agrees that a final judgment in any such action or proceeding
    shall be conclusive and may be enforced in other jurisdictions
    by suit on the judgment or in any other manner provided by Law.
    Each party to this Agreement irrevocably consents to service of
    process in the manner provided for notices in Section 5.6.
    Nothing in this Agreement will affect the right of any party to
    this Agreement to serve process in any other manner permitted by
    Law. Each party hereto agrees not to commence any legal
    proceedings relating to or arising out of this Agreement or the
    Transactions in any jurisdiction or courts other than as
    provided herein.

 

    5.8 WAIVER OF JURY TRIAL.  EACH
    PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT
    MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
    DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
    AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT:
    (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
    HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
    WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE SUCH
    WAIVER; (B) IT UNDERSTANDS AND HAS CONSIDERED THE
    IMPLICATIONS OF SUCH WAIVER; (C) IT MAKES SUCH WAIVER
    VOLUNTARILY; AND (D) IT HAS BEEN INDUCED TO ENTER INTO THIS
    AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
    CERTIFICATIONS IN THIS SECTION 5.8.

 

    5.9 Specific Performance.  The
    parties agree that irreparable damage would occur in the event
    that any of the provisions of this Agreement were not performed
    in accordance with its specific terms or were otherwise
    breached. Each Stockholder agrees that, in the event of any
    breach or threatened breach by

    

    5

 

    such Stockholder of any covenant or obligation contained in this
    Agreement, Parent shall be entitled (in addition to any other
    remedy that may be available to it, including monetary damages)
    to seek and obtain (a) a decree or order of specific
    performance to enforce the observance and performance of such
    covenant or obligation, and (b) an injunction restraining
    such breach or threatened breach. Each Stockholder further
    agrees that neither Parent nor any other person or entity shall
    be required to obtain, furnish or post any bond or similar
    instrument in connection with or as a condition to obtaining any
    remedy referred to in this Section 5.9, and each
    Stockholder irrevocably waives any right it may have to require
    the obtaining, furnishing or posting of any such bond or similar
    instrument.

 

    5.10 Counterparts.  This Agreement
    may be executed in two or more counterparts, each of which shall
    be deemed an original but all of which together shall be
    considered one and the same agreement and shall become effective
    when counterparts have been signed by each of the parties hereto
    and delivered to the other parties, it being understood that all
    parties need not sign the same counterpart. This Agreement may
    be executed and delivered by facsimile transmission.

 

    5.11 Descriptive Headings.  The
    descriptive headings used herein are inserted for convenience of
    reference only and are not intended to be part of or to affect
    the meaning or interpretation of this Agreement.

 

    5.12 Severability.  Any term or
    provision of this Agreement that is invalid or unenforceable in
    any situation in any jurisdiction shall not affect the validity
    or enforceability of the remaining terms and provisions hereof
    or the validity or enforceability of the offending term or
    provision in any other situation or in any other jurisdiction.
    If the final judgment of a court of competent jurisdiction
    declares that any term or provision hereof is invalid or
    unenforceable, the parties hereto agree that the court making
    such determination shall have the power to limit the term or
    provision, to delete specific words or phrases, or to replace
    any invalid or unenforceable term or provision with a term or
    provision that is valid and enforceable and that comes closest
    to expressing the intention of the invalid or unenforceable term
    or provision, and this Agreement shall be enforceable as so
    modified. In the event such court does not exercise the power
    granted to it in the prior sentence, the parties hereto agree to
    replace such invalid or unenforceable term or provision with a
    valid and enforceable term or provision that will achieve, to
    the extent possible, the economic, business and other purposes
    of such invalid or unenforceable term.

 

    [Remainder
    of Page Intentionally Blank]

    

    6

 

    IN WITNESS WHEREOF, the parties hereto have caused this
    Stockholders’ Agreement to be duly executed as of the day
    and year first above written.

 

    TERADYNE, INC.

 

			
	 	    By: 
	
    /s/  Michael
    A. Bradley

    Name:     Michael A. Bradley

			
	 	    Title: 
	
    President and CEO

 

    /s/  Theodore
    D. Foxman

    Theodore D. Foxman

 

    ATTACHMENT
    A

 

    Details
    of Ownership

 

	 	 	 	 	 
	

    Shares

	
 
	

    Entity or Individual Name

	 

	
 
	
    6,729
	
 
	
 
	
    Theodore D. Foxman

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