Document:

EX-4.2

 Exhibit 4.2 

DESCRIPTION OF COMMON STOCK 
 As of
December 31, 2019, Teradyne, Inc. (“Teradyne” or the “Company”) has its common stock as the only class of securities under Section 12 of the Securities Exchange Act of 1934, as amended. 

The following is a description of the material terms and provisions of the Company’s common stock and may not contain all the information that is
important to you. Please refer to the Company’s Restated Articles of Organization (the “Articles of Organization”) and Amended and Restated Bylaws (the “Bylaws”) for complete information. 

Under the Company’s Articles of Organization, it has authority to issue 1,000,000,000 shares of common stock, par value $0.125 per share. As of
December 31, 2019, there were 166,644,872 shares of common stock outstanding. 
 Common Stock 

Holders of Teradyne common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders. Since holders of Teradyne
common stock do not have cumulative voting rights, the holders of more than 50% of Teradyne common stock can elect all the directors if they so choose. Holders of Teradyne common stock are entitled to receive ratably dividends, if any, as may be
declared by the Teradyne board of directors out of funds legally available for payment of dividends. Upon the liquidation, dissolution or winding up of Teradyne, holders of Teradyne common stock are entitled to receive ratably the net assets of
Teradyne available after the payment of all debts and other liabilities of Teradyne. Holders of Teradyne common stock have no preemptive, subscription, redemption or conversion rights, nor are they entitled to the benefit of any sinking fund. The
outstanding shares of common stock are fully paid and non-assessable. 
 The transfer agent and registrar for the
common stock is Broadridge Corporate Issuer Solutions, Inc., P.O. Box 1342, Brentwood, NY 11717. The common stock is listed on the Nasdaq Global Select Market under the trading symbol “TER.” 

Anti-Takeover Effects of Massachusetts Law and Provisions of our Charter Documents 

Certain provisions in the Massachusetts General Laws, the Articles of Organization and the Bylaws may have the effect of delaying, deferring or preventing a
change in control of Teradyne, including: 
 Special Meetings of Stockholders. Special meetings of our stockholders may be called only by the Chief
Executive Officer, the President, by the directors or by the Secretary, or in case of the death, absence, incapacity or refusal of the Secretary, by any other officer, upon written application of one or more stockholders who hold at least 66-2/3% of the shares of our capital stock entitled to vote at such a meeting (or such lesser percentage in interest as shall be the maximum percentage permitted under Massachusetts law). 

Advance Notice Procedures. The Bylaws establish an advance notice procedure for stockholder proposals to be brought before an annual meeting of the
Company’s stockholders, including proposed nominations of persons for election to the board of directors. Stockholders at an annual meeting may only consider proposals or nominations specified in the written notice of meeting or brought before
the meeting by or at the direction of the board of directors, the Chief Executive Officer or the President or by a stockholder who was a stockholder of record on the record date for the meeting, who is entitled to vote at the meeting and who has
given our Secretary timely written notice, in proper form, of the stockholder’s intention to bring that business before the meeting. 
 Removal of
Directors and Vacancies. The Bylaws provide that any director may be removed from office only (a) for cause as defined in the Massachusetts General Laws and by the affirmative vote of a majority of our outstanding shares and entitled to
vote in the election of directors or (b) for cause by vote of a majority of the directors then in office. Vacancies and newly created directorships, whether resulting from an increase in the size of the board of directors, from the death,
resignation, disqualification or removal of a director or otherwise, shall be filled solely by the affirmative vote of a majority of the remaining directors then in office, even though less than a quorum of the board of directors. 

 Indemnification of Directors, Officers and Employees. Pursuant to the Articles of Organization and
Bylaws, Teradyne shall indemnify, to the full extent authorized by law, any person made or threatened to be made a party to an action, suit or proceeding, whether criminal, civil, administrative or investigative, by reason of the fact that he or she
is or was a director, officer, employee or agent of Teradyne or is or was serving, at the request of the Teradyne, as a director, officer, employee or agent of another organization. The board of directors may, without stockholder approval, authorize
Teradyne to enter into agreements, including any amendments or modifications thereto, with any of its directors, officers, employees or other agents providing for indemnification of such persons to the maximum extent permitted under applicable law
and Teradyne’s Articles of Organization and Bylaws. 
 Business Combinations with Interested Stockholders. The Massachusetts General Laws
contain anti-takeover provisions regarding, among other things, business combinations with an affiliated stockholder. In general, the Massachusetts General Laws prevent a publicly held Massachusetts corporation from engaging in a business
combination, as defined in the Massachusetts General Laws, with an interested stockholder for a period of three years after the date of the transaction in which the person became an interested stockholder, unless: 

 

	 	•	 	 before the date on which the person became an interested stockholder, the board of directors of the corporation
approved either the business combination or the transaction in which the person became an interested stockholder; 

  

	 	•	 	 the interested stockholder acquires at least 90% of the outstanding voting stock of the corporation at the time
it becomes an interested stockholder; or 

  

	 	•	 	 the business combination is approved by the board of directors and the holders of at least two-thirds of the outstanding voting stock of the corporation voting at a meeting, excluding the voting stock owned by the interested stockholder. 

An interested stockholder is generally a person owning 5% or more of the outstanding voting stock of the corporation. A business combination includes mergers,
consolidations, stock and asset sales and other transactions with the interested stockholder that result in a financial benefit to the interested stockholder. 

Control Share Acquisitions. Teradyne has elected to opt out of the control share acquisitions provisions of the Massachusetts General Laws.
Teradyne could, however, opt into these control share acquisitions provisions at any time by amending our Bylaws. 
 In general, the control share
acquisitions provisions of the Massachusetts General Laws provide that any person, including his, her or its affiliates, who acquires shares of a corporation that are subject to the control share acquisitions statute and whose shares represent one-fifth or more, one-third or more, or a majority or more of the voting power of the corporation in the election of directors cannot exercise any voting power with respect
to those shares, or any shares acquired by the person within 90 days before or after an acquisition of this nature, unless these voting rights are authorized by the stockholders of the corporation. 

The authorization of voting rights requires the affirmative vote of the holders of a majority of the outstanding voting shares, excluding shares owned by:

  

	 	•	 	 the person making an acquisition of this nature; 

 

	 	•	 	 any officer of the corporate; and 

 

	 	•	 	 any employee who is also a director of the corporation. 

There are several other types of share acquisitions that are not subject to these provisions of the Massachusetts General Laws, including acquisitions of
shares under a tender offer, merger or consolidation which is made in connection with an agreement to which the corporation is a party and acquisitions of shares directly from the corporation or a wholly owned subsidiary of the corporation.EX-10.14

 Exhibit 10.14 

TERADYNE, INC. 
 AMENDED
AND RESTATED SUB-PLAN TO THE 
 TERADYNE, INC. 1996 EMPLOYEE STOCK PURCHASE PLAN 

FOR PARTICIPANTS LOCATED IN THE EUROPEAN UNION/EUROPEAN ECONOMIC AREA 

 

	I.	 PURPOSE OF THE SUB-PLAN. 

(a) Teradyne, Inc. (the “Company”) has established the Teradyne, Inc. 1996 Employee Stock Purchase Plan, as amended from time to time
(the “Plan”), to provide certain employees with a means to purchase shares of the common stock of the Company (the “Shares”). The Plan is intended to constitute an “employee stock purchase plan” within the meaning of
Internal Revenue Code of 1986, as amended Section 423(b). Capitalized terms not otherwise defined herein shall have the same meanings as set forth in the Plan. 

(b) Article 2 of the Plan authorizes the Committee to adopt such rules and regulations for carrying out the Plan as it may deem best. 

(c) The Committee has determined that it is best and desirable to establish a sub-plan to the Plan with
effect from the purchase period beginning on July 1, 2020, for the purpose of complying with applicable local laws implementing the European Union (“EU”) Prospectus Regulation (EU) 2017/1129 (the “Regulation”). The terms of
the Plan shall, subject to the modifications in the following rules, constitute the sub-plan to the Plan for participants working for subsidiaries located in any EU Member State or European Economic Area
(“EEA”) treaty adherent state (the “Sub-Plan”). 
  

	II.	 TERMS OF THE SUB-PLAN. 

(a) Notwithstanding any other provision in the Plan, in no event shall the total consideration paid through payroll deductions or other
contributions authorized by participants located in EU Member States or EEA treaty adherent states for the purchase of Shares pursuant to an offer under this Sub-Plan, when combined with the total
consideration of all other offers to the public by the Company of its securities within any EU Member State or EEA treaty adherent state which may have to be included for purposes of determining the relevant threshold, as determined by the Committee
in its sole discretion, exceed the amount of €7,999,999, or such lower threshold as applicable under the laws implementing the Regulation in the relevant EU Member State or EEA treaty adherent state, in a
12-month period. In order not to exceed this limit, the Company reserves the right to limit the number of Shares that may be purchased by each participant to ensure that the total consideration of all offers
of Shares within any applicable EU Member State or EEA treaty adherent state does not exceed €7,999,999, or such lower threshold as applicable, in a 12-month period. Any such limit imposed under this Sub-Plan will be applied to all participants working for an EU/EEA subsidiary on similar terms and on a pro-rata basis. 

  
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 (b) Subject to the terms of the Plan, the Committee reserves the right to amend or terminate
the Sub-Plan, as contained herein, at any time. Notwithstanding the foregoing, the Sub-Plan is automatically terminated without further action by the Committee if and
when the Company can rely on another exemption under the Regulation that does not require the restrictions set forth in this Sub-Plan, as determined by the Committee in its sole discretion. In this case,
Section II(a) of the Sub-Plan shall no longer apply to purchases of Shares under the Plan by participants located in EU Member States or EEA treaty adherent states. 

  
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