Table of Contents
false0000097210Q3--12-31Includes $3.8 million and $3.8 million in 2022 and 2021, false0000097210Q1--12-31Includes $1.3 million and $2.3 million in 2023 and 2022, respectively, for leases of Teradyne's systems recognized outside Accounting Standards Codification ("ASC") 606 "Revenue from Contracts with Customers."Includes $11.1 million and $11.1 million in 2022 and 2021, respectively, for leases of Teradyne's systems recognized outside ASC 606 "Revenue from Contracts with Customers."In the nine months ended October 3, 2021, the fair value of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide was reduced to zero, which resulted in a benefit of $7.2 million, primarily due to a decrease in forecasted revenues and earnings before interest and taxes.Incremental Customers." Incremental shares from assumed conversion of the convertible notes were calculated using the difference between the average Teradyne stock price for the period and the conversion price, multiplied by the number of convertible notes shares. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period. Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price, multiplied by the number of warrant shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities, and certain other assets. Included in Corporate and Eliminations are: legal and environmental fees, contingent consideration fair value adjustments, interest income, interest expense, severance charges, net foreign exchange gains (losses), intercompany eliminations, legal and environmental fees, severance charges, acquisition related charges and compensation pension, intercompany eliminations and for the three and nine months ended October 3, 2021, loss on convertible debt conversions. Included and an expense for the modification of Teradyne's former chief executive officer's outstanding equity awards.Included in income (loss) before taxes are charges and credits related to restructuring and other, and inventory charges. and, for the three and nine months ended October 3, 2021, loss on convertible debt conversions.Total assets are attributable to each segment. 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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM
10-Q


(Mark One)
| | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| ☒ | |
For the quarterly period ended April 2, 2023
OR

| | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| ☐ | |
For the transition period from




to




Commission File
No. 001-06462


TERADYNE, INC.
(Exact name of registrant as specified in its charter)



| | | |
| | | |
| Massachusetts | | 04-2272148 |
| (State or Other Jurisdiction of | | (I.R.S. Employer |
| Incorporation or Organization) | | Identification No.) |
| | |
| 600 Riverpark Drive, North Reading, | | 01864 |
| Massachusetts | | |
| (Address of Principal Executive Offices) | | (Zip Code) |
978-370-2700
(Registrant's Telephone Number, Including Area Code)


Securities registered pursuant to Section 12(b) of the Act:

| | | | | |
| Title of each class | | Trading | | Name of each exchange |
| | | Symbol(s) | | on which registered |
| Common Stock, par value $0.125 per share | | TER | | Nasdaq Stock Market LLC |
| per share | | | | |
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files) Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company", and "emerging growth company" in
Rule 12b-2
of the Exchange Act (check one):

| | | | | | | |
| | | | | | | |
| | | | | | | |
| Large accelerated filer | | ☒ | | Accelerated filer | | ☐ |
| | | | |
| Non-accelerated filer | | ☐ | | Emerging growth company | | ☐ |
| filer | | | | | | |
| | | | |
| Smaller reporting company | | ☐ | | | | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act).
). Yes ☐ No ☒
The number of shares outstanding of the registrant's only class of Common Stock as of October 31, 2022 was155,756,146 shares.May 1, 2023 was
155,038,743
shares.





Table of Contents

TERADYNE, INC.

INDEX



| | | | | | | |
| | | | | Page No. | |
| | | PART I. FINANCIAL INFORMATION | |
| | | |
| Item 1. | | Financial Statements (Unaudited): | | | | |
| | | |
| | | Condensed Consolidated Balance Sheets as of April 2, 2023 and December 31, 2022 | | | 1 | |
| | | |
| | | Condensed Consolidated Statements of Operations for the Three and Nine Months ended October 2, 2022 and October 3, 2021 | | | 2 | |Months ended April 2, 2023 and April 3, 2022 | | | 2 | |
| | | |
| | | Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months ended October 2, 2022 and October 3, 2021 | | | 3 | |Months ended April 2, 2023 and April 3, 2022 | | | 3 | |
| | | |
| | | Condensed Consolidated Statements of Convertible Common Shares and Shareholders' Equity for the Three and Nine Months Ended October 2, 2022 and October 3, 2021 | | | 4 | |Months Ended April 2, 2023 and April 3, 2022 | | | 4 | |
| | | |
| | | Condensed Consolidated Statements of Cash Flows for the Nine Months Ended October 2, 2022 and October 3, 2021 | | | 5 | |Three Months Ended April 2, 2023 and April 3, 2022 | | | 5 | |
| | | |
| | | Notes to Condensed Consolidated Financial Statements | | | 6 | |
| | | |
| Item 2. | | Management's Discussion and Analysis of Financial Condition and Results of Operations | | | 26 | |
| | | |
| Item 3. | | Quantitative and Qualitative Disclosures about Market Risk | | | 32 | |
| | | |
| Item 4. | | Controls and Procedures | | | 33 | |
| |
| | | PART II. OTHER INFORMATION | |
| | | |
| Item 1. | | Legal Proceedings | | | 33 | |
| | | |
| Item 1A. | | Risk Factors | | | 33 | |
| | | |
| Item 2. | | Unregistered Sales of Equity Securities and Use of Proceeds | | | 34 | |
| | | |
| Item 4. | | Mine Safety Disclosures | | | 34 | |
| | | |
| Item 6. | | Exhibits | | | 35 | |

Table of Contents
http://fasb.org/us-gaap/2022#DeferredTaxAndOtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2022#DeferredTaxAndOtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2022#DeferredTaxAndOtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2022#DeferredTaxAndOtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2022#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2022#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2022#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2022#OtherAssetsNoncurrent
PART I

| Item 1: | Financial Statements |
TERADYNE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

| | | | | | | | | |
| | | | | | || | | | | | April 2, | | | December 31, | |
| | | 2023 | | | 2022 | |

| | | October 2, 2022 | | | December 31, 2021 | |
| | | | | | | |
| | | (in thousands, | |
| | | except per share amount) | |
| | | | | | | | | |
| ASSETS | | | | | | | | |
| Current assets: | | | | | | | | |
| Cash and cash equivalents | | $ | 649,208 | | | $ | 854,773 | |
| Marketable securities | | | 92,895 | | | | 39,612 | |
| Accounts receivable, less allowance for credit losses | | | 530,349 | | | | 550,749 | |
of $1,973 and $1,955 at April 2, 2023
| and $2,012 | | | | | | | | |
| at October 2, 2022 | | | | | | | | |
| and December 31, 2022, respectively | | | 455,334 | | | | 491,145 | |
| Inventories, net | | | 310,754 | | | | 243,330 | |
| Inventories, net | | | 352,058 | | | | 325,019 | |
| Prepayments | | | 502,678 | | | | 406,266 | |
| Prepayments | | | 549,114 | | | | 532,962 | |
| Other current assets | | | 13,367 | | | | 14,404 | |
| | | | | | | | | |
| Total current assets | | | 2,127,554 | | | | 2,576,227 | |
| Total current assets | | | 2,111,976 | | | | 2,257,915 | |
| Property, plant and equipment, net | | | 432,381 | | | | 418,683 | |
| Operating lease | | | 74,939 | | | | 73,734 | |
| Operating lease right-of-use assets, net | | | 61,430 | | | | 68,807 | |
| right-of-use | | | | | | | | |
| assets, net | | | | | | | | |
| Marketable securities | | | 116,938 | | | | 110,777 | |
| Deferred tax assets | | | 130,207 | | | | 102,428 | |
| Deferred tax assets | | | 148,527 | | | | 142,784 | |
| | | | | | | | | |
| Retirement plans assets | | | 11,650 | | | | 11,761 | |
| Other assets | | | 29,311 | | | | 24,096 | |
| Other assets | | | 27,922 | | | | 28,925 | |
| Acquired intangible assets, net | | | 49,246 | | | | 53,478 | |
| Goodwill | | | 375,799 | | | | 426,024 | |
| Goodwill | | | 409,828 | | | | 403,195 | |
| | | | | | | | | |
| Total assets | | $ | 3,319,906 | | | $ | 3,809,425 | |
| Total assets | | $ | 3,383,407 | | | $ | 3,501,252 | |
| | | | | |
| | | |
| LIABILITIES | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable | | $ | 167,975 | | | $ | 153,133 | |
| Accounts payable | | $ | 142,382 | | | $ | 139,722 | |
| Accrued employees' compensation and withholdings | | | 119,433 | | | | 212,266 | |
| Deferred revenue and customer advances | | | 119,355 | | | | 148,285 | |
| Other accrued liabilities | | | 114,739 | | | | 112,271 | |
| Operating lease liabilities | | | 19,985 | | | | 18,594 | |
| Income taxes payable | | | 77,089 | | | | 65,010 | |
| Current debt | | | 14,596 | | | | 19,182 | |
| Current debt | | | 35,109 | | | | 50,115 | |
| | | | | | | | | |
| Total current liabilities | | | 628,092 | | | | 746,263 | |
| Retirement plans liabilities | | | 121,303 | | | | 116,005 | |
| Long-term deferred revenue and customer advances | | | 41,797 | | | | 45,131 | |
| Long-term other accrued liabilities | | | 16,211 | | | | 15,981 | |
| Deferred tax liabilities | | | 2,325 | | | | 3,267 | |
| Long-term operating lease liabilities | | | 65,082 | | | | 64,176 | |
| | | | | | | | | |
| Long-term incomes taxes payable | | | 59,135 | | | | 67,041 | |
| | | | | | | | | |
| Debt | | | 50,195 | | | | 89,244 | |
59,135 | |
| | | | | | | | | |
| Total liabilities | | | 1,065,781 | | | | 1,245,469 | |
| Total liabilities | | | 933,945 | | | | 1,049,958 | |
| | | | | | | | | |
| Commitments and contingencies (Note Q) | | | | | | | | |
P) | | | | | | | | ||
| Mezzanine equity: | | | | | | | | |
| | | | | | | | | |
| Convertible common shares | | | - | | | | 1,512 | |
| | | |
| SHAREHOLDERS' EQUITY | | | | | | | | |
| Common stock, | | | 19,473 | | | | 20,281 | |
| , $0.125 par value, 1,000,000 shares authorized; 155,445 and 155,759
| shares issued and outstanding at April 2, 2023 and December 31, 2022, respectively | | | 19,431 | | | | 19,470 | |
| October 2, 2022 and December 31, 2021, respectively | | | | | | | | |
| Additional | | | 1,772,352 | | | | 1,755,963 | |
| Additional paid-in capital | | | 1,746,779 | | | | 1,811,545 | |
| paid-in | | | | | | | | |
| capital | | | | | | | | |
| Accumulated other comprehensive loss | | | (36,466 | ) | | | (49,868 | ) |
| Retained earnings | | | 572,652 | | | | 736,566 | |
| Retained earnings | | | 694,145 | | | | 725,729 | |
| | | | | | | | | |
| Total shareholders' equity | | | 2,449,462 | | | | 2,451,294 | |
| | | | | | | | | |
| Total liabilities convertible common shares and shareholders' equity | | $ | 3,383,407 | | | $ | 3,501,252 | |
| | | | | | | | | |
The accompanying notes, together with the Notes to Consolidated Financial Statements included in Teradyne's Annual Report on Form
10-K
for the year ended December 31, 2022, are an integral part of the condensed consolidated financial statements.

1

Table of Contents
TERADYNE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

| | | | | | | | | |
| | | For the Three Months | || For the Nine Months | |
| | | | | | ||
| | | Ended | | | Ended | |
| | | October 2, | | | October 3, | || October 2, | | | October 3, | |
| | | 2022 | || 2021 | | | 2022 | | | 2021 | |

| | | April 2, | | | April 3, | |
| | | 2023 | | | 2022 | |
| | | | | | | |

| | | (in thousands, except per share amount) | |
| Revenues: | | | || | | | | | amount) | |
| Revenues:
| | | | | | | | ||
| Products | | $ | 676,252 | | | $ | 825,448 | | | $ | 2,000,081 | | | $ | 2,437,901 | |
| Products | | $ | 473,418 | | | $ | 625,875 | |
| Services | | | 150,821 | | | | 125,053 | | | | 423,128 | | | | 379,934 | |
| Services | | | 144,111 | | | | 129,495 | |
| | | | | | | | | |
| Total revenues | | | 827,073 | | | | 950,501 | | | | 2,423,209 | | | | 2,817,835 | |
| Total revenues | | | 617,529 | | | | 755,370 | |
| Cost of revenues: | | | | | | | | || | | | | | | |
| Cost of products | | | 277,539 | | | | 333,229 | | | | 795,229 | | | | 989,859 | |
| Cost of products | | | 198,665 | | | | 243,016 | |
| Cost of services | | | 64,155 | | | | 46,271 | | | | 181,279 | | | | 148,368 | |
| Cost of services | | | 62,444 | | | | 57,421 | |
| | | | | | | | | |
| Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | | | 341,694 | | | | 379,500 | | | | 976,508 | | | | 1,138,227 | |261,109 | | | | 300,437 | |
| | | | | | | | | | | | | | | | | |
| Gross profit | | | 485,379 | | | | 571,001 | | | | 1,446,701 | | | | 1,679,608 | |
| Gross profit | | | 356,420 | | | | 454,933 | |
| Operating expenses: | | | | | | | | |
| Selling and administrative | | | 135,632 | | | | 134,829 | | | | 415,351 | | | | 404,812 | |150,955 | | | | 140,185 | |
| Engineering and development | | | 111,715 | | | | 107,220 | | | | 331,781 | | | | 317,644 | |105,762 | | | | 108,116 | |
| Acquired intangible assets amortization | | | 4,729 | | | | 5,355 | | | | 14,663 | | | | 16,293 | |4,802 | | | | 5,063 | |
| Restructuring and other | | | 1,796 | | | | 1,197 | | | | 19,554 | | | |(3,426 | ) |2,037 | | | | 15,714 | |
| | | | | | | | | |
| Total operating expenses | | | 253,872 | | | | 248,601 | | | | 781,349 | | | | 735,323 | |263,556 | | | | 269,078 | |
| | | | | | | | | |
| Income from operations | | | 231,507 | | | | 322,400 | | | | 665,352 | | | | 944,285 | |92,864 | | | | 185,855 | |
| Non-operating | | | | | | | | |
| (income) expense: | | | | | | | | |
| Interest income | | | (1,318 | ) | | | (626 | ) | | | (2,972 | ) | | | (2,066 | ) |
| Interest income | | | (5,258 | ) | | | (703 | ) |
| Interest expense | | | 779 | | | | 3,785 | | | | 2,704 | | | | 15,354 | |
| Interest expense | | | 987 | | | | 1,012 | |
| Other (income) expense, net | | | 5,849 | | | | 21,486 | | | | 20,472 | | | | 25,223 | |51 | | | | 5,187 | |
| | | | | | | | | |
| Income before income taxes | | | 226,197 | | | | 297,755 | | | | 645,148 | | | | 905,774 | |97,084 | | | | 180,359 | |
| Income tax provision | | | 42,712 | | | | 41,037 | | | | 101,948 | | | | 115,225 | |
| Income tax provision | | | 13,553 | | | | 18,431 | |
| | | | | | | | | |
| Net income | | $ | 183,485 | | | $ | 256,718 | | | $ | 543,200 | | | $ | 790,549 | |
| Net income | | $ | 83,531 | | | $ | 161,928 | |
| | | | | | | | | |
| Net income per common share: | | | | | | | | |
| Basic | | $ | 1.17 | | | $ | 1.56 | | | $ | 3.41 | | | $ | 4.77 | |
| Basic | | $ | 0.54 | | | $ | 1.00 | |
| | | | | | | | | |
| Diluted | | $ | 1.10 | | | $ | 1.41 | | | $ | 3.17 | | | $ | 4.26 | |
| Diluted | | $ | 0.50 | | | $ | 0.92 | |
| | | | | | | | | |
| Weighted average common shares-basic | | | 156,364 | | | | 164,583 | | | | 159,325 | | | | 165,690 | |155,904 | | | | 162,048 | |
| | | | | | | | | | | | | | | | | |
| Weighted average common shares-diluted | | | 166,733 | | | | 181,987 | | | | 171,156 | | | | 185,492 | |166,308 | | | | 175,575 | |
| | | | | | | | | |
The accompanying notes, together with the Notes to Consolidated Financial Statements included in Teradyne's
Annual Report on Form
10-K
for the year ended December 31, 2022, are an integral part of the condensed
consolidated financial statements.

2

Table of Contents
TERADYNE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

| | | | | | | | | |
| | | For the Three Months | || For the Nine Months | |
| | | | |
| | | Ended | || Ended | |
| | | October 2, | | | October 3, | || October 2, | | | October 3, | |
| | | April 2, | | | April 3, | |
| | | 2023 | | | 2022 | |
| | | | | | | |


| | | 2022 | || 2021 | | | 2022 | | | 2021 | |

| | | (in thousands) | |
| Net income | | $ | 183,485 | | | $ | 256,718 | || $ | 543,200 | | | $ | 790,549 | Net income | | $ | 83,531 | | | $ | 161,928 | |
| Other comprehensive income | | | | | |
| | |
| Other comprehensive income, net of tax: | | | | | | | ||| (loss) | | | | | | | | |
| , net of tax:
| | | | | | | | |
| Foreign currency translation adjustment, net of tax of $0 and $0, respectively | | | (28,951 | ) | | | (10,698 | ) | | | (66,258 | ) | | | (26,672 | ) |9,309 | | | | (8,076 | ) |
| Available-for-sale | | | | | | | | |
| marketable securities: | | | | | | | | | | | | | | | | |
| Unrealized gains (losses) on marketable securities arising during period, net of tax of $(997), $(44), $(3,570), $(516), respectively | | | (3,581 | ) | | | (176 | ) | | | (13,491 | ) | | | (1,952 | ) |$503 and $(1,333), respectively | | | 2,294 | | | | (5,388 | ) |
| Less: Reclassification adjustment for losses (gains) included in net income, net of tax of $2 and $(18), respectively | | | 5 | | | | (65 | ) |
| | 386 | | | | (670 | ) |
| || | | | | | | | | || | | | | |
| | | |(3,404 | ) | | | (405 | ) | | | (13,105 | ) || | (2,622 | ) |
| Cash flow hedges: | | | | | | || | | | | | | | | |
| | | |
| | | | 2,299 | | | | (5,453 | ) |
| Cash flow hedges: | | | | | | | | |
| Unrealized gains arising during period, net | | | 596 | | | | - | |
| of | | | | | | | | |
| tax of $167, $0, respectively | | | | | | | | |

| Unrealized gains arising during period, net of tax of $0, $0, $0, | Less: Reclassification adjustment for losses included in net income, net of tax of $338 and $0, respectively | | | 1,200 | | | | - | |
| | | 537 | | | | - | | |
| Defined benefit post-retirement plan: | || | | | 1,796 | | | | - | |
| Defined benefit post-retirement plan: | | | | | | | | |
| Amortization of prior service credit, net of tax of $0 and $0, respectively | | | (2 | ) | | | (2 | ) || | (5 | ) | | | (5 | ) |
| | | | | | | | | |
| Other comprehensive loss | | | (31,820 | ) | | | (11,105 | ) | | | (78,831 | ) | | | (29,299 | ) |
| Other comprehensive income (loss) | | | 13,402 | | | | (13,531 | ) |
| | | | | | | | | |
| Comprehensive income | | $ | 151,665 | | | $ | 245,613 | | | $ | 464,369 | | | $ | 761,250 | |
| Comprehensive income | | $ | 96,933 | | | $ | 148,397 | |
| | | | | | | | | |
The accompanying notes, together with the Notes to Consolidated Financial Statements included in Teradyne's
Annual Report on Form
Form 10-K
for the year ended December 31, 2022, are an integral part of the condensed
consolidated financial statements.

3

Table of Contents
TERADYNE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE COMMON SHARES
AND SHAREHOLDERS' EQUITY
(Unaudited)

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Shareholders' Equity | |
| | | Convertible | | | Common | | | Common | | | Additional | | | Accumulated | | | Retained | | | Total | |
| | | Common | | | Stock Shares | | | Stock Par | | | Paid-in Capital | | | Other | | | Earnings | | | Shareholders' | |
| | | Shares | | | Shares | | | Par | | | Capital| | | Shares | | | | | | Value | | | | | | Comprehensive | | | | | | Equity | |
| | | Value | | | | | | Value | | | | | | (Loss) Income | | | | | | | |
| | | | | | (in thousands) | |
| | | | | | | | | | | | | | |
| | | | | | (in thousands) | |
| | | | | | | | | | | | | | |
| For the Three Months Ended April 2, 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance, July 3, 2022 | | $ | - | | | | 157,880 | | | $ | 19,735 | | | $ | 1,721,586 | | | $ | (52,959 | ) | | $ | 610,234 | | | $ | 2,298,596 | |
| Balance, December 31, 2022 | | $ | - | | | | 155,759 | | | $ | 19,470 | | | $ | 1,755,963 | | | $ | (49,868 | ) | | $ | 725,729 | | | $ | 2,451,294 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net issuance of common stock under stock-based plans | | | | | | | 579 | | | | 73 | | | | (3,943 | ) | | | | | | | | | | | (3,870 | ) |
| Stock-based compensation expense | | | | | | | | | | | | | | | 20,332 | | | | | | | | | | | | 20,332 | |
| Repurchase of common stock | | | | | | | (893 | ) | | | (112 | ) | | | | | | | | | | | (97,936 | ) | | | (98,048 | ) |
| Cash dividends ($ | | | | | | | | | | | | | | | | | | | | | | | (17,149 | ) | | | (17,149 | ) |
| Cash dividends ($0.11
| 0.11 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| per share) | | | | | | | | | | | | | | | | | | | | | | | (17,179 | ) | | | (17,179 | ) |
| Settlements of convertible notes | | | | | | | 324 | | | | 41 | | | | (41 | ) | | | | | | | | | | | - | |
| Exercise of convertible notes hedge call options | | | | | | | (324 | ) | | | (41 | ) | | | 41 | | | | | | | | | | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | | | | | | | | | | | | | | | | | | | | | 83,531 | | | | 83,531 | |
| Other comprehensive income | | | | | | | | | | | | | | | | | | | (31,820 | ) | | | | | | | (31,820 | ) |13,402 | | | | | | | | 13,402 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance, October 2, 2022 | | $ | - | | | | 155,782 | | | $ | 19,473 | | | $ | 1,746,779 | | | $ | (84,779 | ) | | $ | 572,652 | | | $ | 2,254,125 | |
| Balance, April 2, 2023 | | $ | - | | | | 155,445 | | | $ | 19,431 | | | $ | 1,772,352 | | | $ | (36,466 | ) | | $ | 694,145 | | | $ | 2,449,462 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended October 3, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended April 3,
| Balance, July 4, 2021 | | $ | 21,386 | | | | 165,444 | | | $ | 20,680 | | | $ | 1,772,302 | | | $ | 15,322 | | | $ | 684,952 | | | $ | 2,493,256 | |
| Net issuance of common stock under stock-based plans | | | | | | | 8 | | | | 1 | | | | (259 | ) | | | | | | | | | | | (258 | ) |
| Stock-based compensation expense | | | | | | | | | | | | | | | 10,042 | | | | | | | | | | | | 10,042 | |
| Repurchase of common stock | | | | | | | (1,724 | ) | | | (215 | ) | | | | | | | | | | | (212,781 | ) | | | (212,996 | ) |
| Cash dividends | | | | | | | | | | | | | | | | | | | | | | | (16,452 | ) | | | (16,452 | ) |
| ($0.10 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| per share) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Settlements of convertible notes | | | | | | | 5,589 | | | | 699 | | | | 636,798 | | | | | | | | | | | | 637,497 | |
| Exercise of convertible notes hedge call options | | | | | | | (5,589 | ) | | | (699 | ) | | | (637,015 | ) | | | | | | | | | | | (637,714 | ) |
| Convertible common shares | | | (18,505 | ) | | | | | | | | | | | 18,505 | | | | | | | | | | | | 18,505 | |
| Net income | | | | | | | | | | | | | | | | | | | | | | | 256,718 | | | | 256,718 | |
| Other comprehensive loss | | | | | | | | | | | | | | | | | | | (11,105 | ) | | | | | | | (11,105 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance, October 3, 2021 | | $ | 2,881 | | | | 163,728 | | | $ | 20,466 | | | $ | 1,800,373 | | | $ | 4,217 | | | $ | 712,437 | | | $ | 2,537,493 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Nine Months Ended October 2, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance, December 31, 2021 | | $ | 1,512 | | | | 162,251 | | | $ | 20,281 | | | $ | 1,811,545 | | | $ | (5,948 | ) | | $ | 736,566 | | | $ | 2,562,444 | |
| Net issuance of common stock under stock-based plans | | | | | | | 552 | | | | 70 | | | | (14,644 | ) | | | | | | | | | | | (14,574 | ) |
| Stock-based compensation expense | | | | | | | | | | | | | | | 14,204 | | | | | | | | | | | | 14,204 | |
| Repurchase of common stock | | | | | | | (1,750 | ) | | | (219 | ) | | | | | | | | | | | (211,247 | ) | | | (211,466 | ) |
| Cash dividends ($0.11 per share) | | | | | | | | | | | | | | | | | | | | | | | (17,908 | ) | | | (17,908 | ) |
| ($0.33 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| per share) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Settlements of convertible notes | | | | | | | 509 | | | | 64 | | | | (157 | ) | | | | | | | | | | | (93 | ) |
| Exercise of convertible notes hedge call options | | | | | | | (509 | ) | | | (64 | ) | | | 64 | | | | | | | | | | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Convertible common shares | | | (1,512 | ) | | | | | | | | | | | 1,512 | | | | | | | | | | | | 1,512 | |
| Cumulative-effect of change in accounting principle related | | | | | | | | | | | | | | | (100,834 | ) | | | | | | | 94,600 | | | | (6,234 | ) |
| to convertible debt | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net income | | | | | | | | | | | | | | | | | | | | | | | 543,200 | | | | 543,200 | |
| Other comprehensive loss | | | | | | | | | | | | | | | | | | | (78,831 | ) | | | | | | | (78,831 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance, October 2, 2022 | | $ | - | | | | 155,782 | | | $ | 19,473 | | | $ | 1,746,779 | | | $ | (84,779 | ) | | $ | 572,652 | | | $ | 2,254,125 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Nine Months Ended October 3, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance, December 31, 2020 | | $ | 3,787 | | | | 166,123 | | | $ | 20,765 | | | $ | 1,765,323 | | | $ | 33,516 | | | $ | 387,414 | | | $ | 2,207,018 | |
| Net issuance of common stock under stock-based plans | | | | | | | 893 | | | | 112 | | | | (48 | ) | | | | | | | | | | | 64 | |
| Stock-based compensation expense | | | | | | | | | | | | | | | 35,915 | | | | | | | | | | | | 35,915 | |
| Repurchase of common stock | | | | | | | (3,288 | ) | | | (411 (1,512 | ) | | | | | | | | | | | (415,769 | ) | | | (416,180 | ) |
(99,322 | ) | | | | | | | 92,850 | | | | (6,472 | ) || Cash dividends | | | | | | | | | | | | | | | | | | | | | | | (49,757 | ) | | | (49,757 | ) |
| ($0.30 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| per share) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Settlements of convertible notes | | | | | | | 7,178 | | | | 897 | | | | 840,305 | | | | | | | | | | | | 841,202 | |
| Exercise of convertible notes hedge call options | | | | | | | (7,178 | ) | | | (897 | ) | | | (842,028 | ) | | | | | | | | | | | (842,925 | ) |
| Convertible common shares | | | (906 | ) | | | | | | | | | | | 906 | | | | | | | | | | | | 906 | |
| Net income | | | | | | | | | | | | | | | | | | | | | | | 161,928 | | | | 161,928 | |
| Other comprehensive loss | | | | | | | | | | | | | | | | | | | (13,531 | ) | | | | | | | (13,531 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Balance, October 3, 2021 | | $ | 2,881 | | | | 163,728 | | | $ | 20,466 | | | $ | 1,800,373 | | | $ | 4,217 | | | $ | 712,437 | | | $ | 2,537,493 | |
| Balance, April 3, 2022 | | $ | - | | | | 161,053 | | | $ | 20,132 | | | $ | 1,711,690 | | | $ | (19,479 | ) | | $ | 762,189 | | | $ | 2,474,532 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes, together with the Notes to Consolidated Financial Statements included in Teradyne's
Annual Report on Form
10-K
for the year ended December 31, 2022, are an integral part of the condensed
consolidated financial statements.

4

Table of Contents
TERADYNE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

| | | | | | | | | |
| | | For the Three Months Ended | |
| | | | |
| | | Ended | |

| | | April 2, | | | April 3, | |
| | | 2023 | | | 2022 | |
| | | | | | | |
| | | (in thousands) | |
| Cash flows from operating activities: | | | | | | | | |
| Net income | | $ | 543,200 | | | $ | 790,549 | |
| Net income | | $ | 83,531 | | | $ | 161,928 | |
| Adjustments to reconcile net income from operations to net cash provided by operating activities: | | | | | | | | |
| Depreciation | | | 67,902 | | | | 67,866 | |
| Depreciation | | | 22,680 | | | | 22,503 | |
| Stock-based compensation | | | 18,885 | | | | 12,894 | |
| Provision for excess and obsolete inventory | | | 5,610 | | | | 1,590 | |
| Amortization | | | 15,012 | | | | 27,626 | |
| Amortization | | | 4,926 | | | | 5,233 | |
| Losses (gains) on investments | | | 11,436 | | | |(4,750 | ) |
| Deferred taxes | | | (28,373 | ) | | | (10,732 | ) |
| Deferred taxes | | | (7,634 | ) | | | 11,288 | |
| Contingent consideration fair value adjustments | | | - | | | | (7,227 | ) |
| Loss on convertible debt conversions | | | - | | | | 25,397 | |

| (Gains) losses on investments | | | (2,238 | ) | | | 2,001 | |
| Retirement plans actuarial gains | | | - | | | | (627 | ) |
| Other | | | 108 | | | | 177 | |
| Changes in operating assets and liabilities | | | | | | | | |
| Accounts receivable | | | 4,248 | | | | (103,299 | ) |
| Accounts receivable | | | 37,204 | | | | 208 | |
| Inventories | | | (68,817 | ) | | | 21,943 | |
| Inventories | | | (23,697 | ) | | | (9,480 | ) |
| Prepayments and other assets | | | (15,380 | ) | | | (74,305 | ) |
| Accounts payable and other liabilities | | | (71,682 | ) | | | 65,064 | |
| Accounts payable and other accrued expenses | | | (83,208 | ) | | | (124,382 | ) |
| Deferred revenue and customer advances | | | (32,705 | ) | | | 6,747 | |
| Retirement plan contributions | | | (1,234 | ) | | | (1,329 | ) |
| Income taxes | | | (31,370 | ) | | | (17,406 | ) |
| Income taxes | | | 12,488 | | | | (7,611 | ) |
| | | | | | | | | |
| Net cash provided by operating activities | | | 19,336 | | | | 7,462 | |
| | | | | | | | | |
| Cash flows from investing activities: | | | | | | | | |
| Purchases of property, plant and equipment | | | (41,444 | ) | | | (43,999 | ) |
| Purchases of marketable securities | | | (69,276 | ) | | | (165,977 | ) |
| Proceeds from sales of marketable securities | | | 7,929 | | | | 30,581 | |
| Proceeds from maturities of marketable securities | | | 7,468 | | | | 96,682 | |
| Purchase of investment | | | - | | | | (12,000 | ) |
| Proceeds from life insurance | | | 460 | | | | - | |
| | | | | | | | | |
| Net cash provided by investing activities | | | 45,445 | | | | 156,082 | |
| Net cash used for investing activities | | | (94,863 | ) | | | (82,713 | ) |
| | | | | | | | | |
| Cash flows from financing activities: | | | | | | | | |
| Issuance of common stock under stock purchase and stock option plans | | | 15,997 | | | | 16,475 | |
| Repurchase of common stock | | | (93,308 | ) | | | (201,465 | ) |
| Payments of convertible debt principal | | | (52,005 | ) | | | (301,997 | ) |
| Payments related to net settlement of employee stock compensation awards | | | (19,870 | ) | | | (31,048 | ) |
| Dividend payments | | | (52,578 | ) | | | (49,711 | ) |
| Dividend payments | | | (17,165 | ) | | | (17,895 | ) |
| Payments related to net settlement of employee stock compensation awards | | | (32,987 | ) | | | (32,045 | ) |
| Payments of convertible debt principal | | | (15,155 | ) | | | (20,694 | ) |
| | | | | | | | | |
| Net cash used for financing activities | | | (129,501 | ) | | | (254,627 | ) |
| | | | | | | | | |
| Effects of exchange rate changes on cash and cash equivalents | | | (537 | ) | | | 2,282 | |
| | | | | | | | | |
| Decrease in cash and cash equivalents | | | (205,565 | ) | | | (327,596 | ) |
| Cash and cash equivalents at beginning of period | | | 854,773 | | | | 1,122,199 | |
| | | | | | | | | |
| Cash and cash equivalents at end of period | | $ | 649,208 | | | $ | 794,603 | |
| | | | | | | | | |
| Non-cash | | | | | | | | |
| investing activities: | | | | | | | | |
| Capital expenditures incurred but not yet paid: | | $ | 3,823 | | | $ | 2,500 | |
The accompanying notes, together with the Notes to Consolidated Financial Statements included in Teradyne's
Annual Report on Form
10-K
for the year ended December 31, 2022, are an integral part of the condensed
consolidated financial statements.

5

Table of Contents
TERADYNE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
A. THE COMPANY
Teradyne, Inc. ("Teradyne") is a leading global supplier of automation equipment for test and industrial applications. automated test equipment and robotics solutions. Teradyne designs, develops, manufactures and sells automatic test systems and robotics products. Teradyne's automatic test systems are used to test semiconductors, wireless products, data storage and complex electronics systems in many industries including consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Teradyne's robotics products include collaborative robotic arms and autonomous mobile robots ("AMRs") used by global manufacturing, logistics and light industrial customers to improve quality, increase manufacturing and material handling efficiency and decrease manufacturing and logistics costs. Teradyne's automatic test equipment and robotics products and services include:

| | • | | semiconductor test ("Semiconductor Test") systems; |

| | • | | storage and system level test ("Storage Test") systems, defense/aerospace ("Defense/Aerospace") test instrumentation and systems, and circuit-board test and inspection ("Production Board Test") systems (collectively these products represent "System Test"); |

| | • | | wireless test ("Wireless Test") systems; and |

| | • | | industrial automation ("Industrial Automation") products. |
| | • | | robotics ("Robotics") products. |
B. ACCOUNTING POLICIES
Basis of Presentation
The consolidated interim financial statements include the accounts of Teradyne and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. These interim financial statements are unaudited and reflect all normal recurring adjustments that are, in the opinion of management, necessary for the fair statement of such interim financial statements. Certain prior year amounts may have been reclassified to conform to the current year presentation. The December 31, 2022 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by United States of America generally accepted accounting principles ("U.S. GAAP") for complete financial statements. The accompanying financial information should be read in conjunction with the consolidated financial statements and notes thereto contained in Teradyne's Annual Report on Form
10-K,
filed with the U.S. Securities and Exchange Commission ("SEC") on February 22, 2023, for the year ended December 31, 2022.
Preparation of Financial Statements and Use of Estimates
The preparation of consolidated financial statements requires management to make estimates and judgments that affect the amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent liabilities. On an
on-going
basis, management evaluates its estimates, including those related to inventories, investments, goodwill, intangible and other long-lived assets, accounts receivable, income taxes, deferred tax assets and liabilities, pensions, warranties, contingent consideration liabilities, and loss contingencies. Management bases its estimates on historical experience and on appropriate and customary assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgements about the carrying values of assets and liabilities that are not readily apparent from other sources. Due to the
COVID-19
pandemic, there has been uncertainty and disruption in the global economy and our markets. Management is not aware of any specific event or circumstance that would require an update to its estimates or judgments or a revision of the carrying value of its assets or liabilities as of the date of issuance of this Quarterly Report on Form
10-Q.
These estimates may change, as new events occur and additional information is obtained. Actual results may differ significantly from these estimates under different assumptions or conditions.
Convertible Debt
Teradyne adopted Accounting Standards Update ("ASU") ASU
2020-06
-
"Debt-Debt with Conversion and Other Options and Derivatives and Hedging-Contracts in Entity's Own Equity,"
on January 1, 2022 using the modified retrospective method of adoption
.
Under ASU
2020-06,
Teradyne accounts for a convertible debt instrument as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. Unsettled shares are recorded in current debt, and there is no recognition of a debt discount, which was previously amortized to interest expense. Teradyne uses the
if-converted
method in the diluted earnings per share ("EPS") calculation for convertible instruments. As a result of adoption, Teradyne recorded an increase of $1.4 million to current debt for unsettled shares, an increase of $6.6 million to long-term debt for unamortized debt discount, an increase of $1.8 million to deferred tax assets and an increase to retained earnings of $94.6 million for the reclassification of the equity component. Mezzanine equity representing unsettled shares value was reduced to zero and additional
paid-in
capital was reduced by $100.8 million.

6

Table of Contents
C. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
For the nine months ended October 2, 2022, there were
no
For the three months ended April 2, 2023, there were no recently issued accounting pronouncements that had, or are expected to have, a material impact to Teradyne's consolidated financial statements.


6

On June 1, 2021, Teradyne invested $12.0 million in MachineMetrics, Inc. ("MachineMetrics"), a private company that develops and sells products to improve manufacturing performance through automated machine data collection, alerting, and analytics. Teradyne's investment in MachineMetrics aligns with its strategy of providing and investing in leading edge products for automating industrial production processes in growing markets. The investment was recorded at cost and is evaluated for impairment or an indication of changes in fair value resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer on a quarterly basis. At October 2, 2022, the value of the investment was $12.0 million, and there were no changes during the three and nine months ended October 2, 2022.
Table of Contents

D. REVENUE
Disaggregation of Revenue
The following table provides information about disaggregated revenue by timing of revenue recognition, primary geographical market, and major product lines.During the three months ended October 2, 2022 Teradyne combined Mobile Industrial Robots and AutoGuide into one business unit. Revenues for all periods shown below have been combined accordingly.

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Semiconductor Test | | | | | | Industrial | | | | | | | | | | |
Robotics | | | | | | | | | | |
| | | System on- | | | Memory | | | System | | | Universal | | | Mobile | | | Wireless | | | Corporate | | | Total | |
| | | a-Chip | | | | | | Test | | | Robots | | | Industrial | | | | | | | | | | |
| | | on-a-Chip | | | | | | | | | | | | Robots | | | Test | | | and | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Robots | | | | | | Eliminations | | | | |
| | | | | | | | | | | | | | | | | | | | | Eliminations | | | | |
| | | (in thousands) | |
| For the Three Months Ended April 2, 2023 (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Timing of Revenue Recognition | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Point in Time | | $ | 383,801 | | | $ | 117,943 | | | $ | 93,248 | | | $ | 71,300 | | | $ | 15,025 | | | $ | 42,885 | | | $ | - | | | $ | 724,202 | |
| Point in Time | | $ | 273,275 | | | $ | 61,258 | | | $ | 56,857 | | | $ | 70,029 | | | $ | 15,959 | | | $ | 35,363 | | | $ | - | | | $ | 512,741 | |
| Over Time | | | 66,614 | | | | 7,346 | | | | 22,906 | | | | 2,062 | | | | 680 | | | | 3,263 | | | | - | | | | 102,871 | |
| Over Time | | | 73,559 | | | | 6,917 | | | | 17,774 | | | | 2,008 | | | | 1,218 | | | | 3,312 | | | | - | | | | 104,788 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | 450,415 | | | $ | 125,289 | | | $ | 116,154 | | | $ | 73,362 | | | $ | 15,705 | | | $ | 46,148 | | | $ | - | | | $ | 827,073 | |
| Total | | $ | 346,834 | | | $ | 68,175 | | | $ | 74,631 | | | $ | 72,037 | | | $ | 17,177 | | | $ | 38,675 | | | $ | - | | | $ | 617,529 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Geographical Market | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Asia Pacific | | $ | 399,323 | | | $ | 122,839 | | | $ | 73,768 | | | $ | 18,850 | | | $ | 2,917 | | | $ | 34,420 | | | $ | - | | | $ | 652,117 | |
| Asia Pacific | | $ | 283,259 | | | $ | 63,695 | | | $ | 39,590 | | | $ | 13,217 | | | $ | 1,502 | | | $ | 23,231 | | | $ | - | | | $ | 424,494 | |
| Americas | | | 31,719 | | | | 2,129 | | | | 35,865 | | | | 26,515 | | | | 8,877 | | | | 9,481 | | | | - | | | | 114,586 | |
| Americas | | | 41,568 | | | | 2,944 | | | | 28,980 | | | | 20,447 | | | | 11,806 | | | | 12,846 | | | | - | | | | 118,591 | |
| Europe, Middle East and Africa | | | 19,373 | | | | 321 | | | | 6,521 | | | | 27,997 | | | | 3,911 | | | | 2,247 | | | | - | | | | 60,370 | |22,007 | | | | 1,536 | | | | 6,061 | | | | 38,373 | | | | 3,869 | | | | 2,598 | | | | - | | | | 74,444 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | 450,415 | | | $ | 125,289 | | | $ | 116,154 | | | $ | 73,362 | | | $ | 15,705 | | | $ | 46,148 | | | $ | - | | | $ | 827,073 | |
| Total | | $ | 346,834 | | | $ | 68,175 | | | $ | 74,631 | | | $ | 72,037 | | | $ | 17,177 | | | $ | 38,675 | | | $ | - | | | $ | 617,529 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Three Months Ended April 3, 2022 (1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Timing of Revenue Recognition | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Point in Time | | $ | 508,747 | | | $ | 105,454 | | | $ | 88,155 | | | $ | 76,008 | | | $ | 12,577 | | | $ | 65,409 | | | $ | (63 | ) | | $ | 856,287 | |
| Point in Time | | $ | 323,456 | | | $ | 88,723 | | | $ | 105,288 | | | $ | 83,182 | | | $ | 16,744 | | | $ | 48,429 | | | $ | (346 | ) | | $ | 665,476 | |
| Over Time | | | 66,270 | | | | 7,761 | | | | 14,450 | | | | 1,742 | | | | 687 | | | | 3,304 | | | | - | | | | 94,214 | |
| Over Time | | | 63,129 | | | | 7,033 | | | | 13,380 | | | | 2,102 | | | | 1,161 | | | | 3,089 | | | | - | | | | 89,894 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | 575,017 | | | $ | 113,215 | | | $ | 102,605 | | | $ | 77,750 | | | $ | 13,264 | | | $ | 68,713 | | | $ | (63 | ) | | $ | 950,501 | |
| Total | | $ | 386,585 | | | $ | 95,756 | | | $ | 118,668 | | | $ | 85,284 | | | $ | 17,905 | | | $ | 51,518 | | | $ | (346 | ) | | $ | 755,370 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Geographical Market | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Asia Pacific | | $ | 519,886 | | | $ | 110,362 | | | $ | 62,757 | | | $ | 19,654 | | | $ | 2,788 | | | $ | 54,344 | | | $ | - | | | $ | 769,791 | |
| Asia Pacific | | $ | 340,741 | | | $ | 93,151 | | | $ | 73,784 | | | $ | 18,621 | | | $ | 2,592 | | | $ | 34,946 | | | $ | - | | | $ | 563,835 | |
| Americas | | | 29,119 | | | | 2,281 | | | | 34,560 | | | | 23,429 | | | | 5,321 | | | | 11,352 | | | | (63 | ) | | | 105,999 | |
| Americas | | | 29,714 | | | | 2,046 | | | | 36,608 | | | | 28,148 | | | | 8,564 | | | | 9,687 | | | | (346 | ) | | | 114,421 | |
| Europe, Middle East and Africa | | | 16,130 | | | | 559 | | | | 5,288 | | | | 34,667 | | | | 5,155 | | | | 3,017 | | | | - | | | | 74,711 | |8,276 | | | | 38,515 | | | | 6,749 | | | | 6,885 | | | | - | | | | 77,114 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | 575,017 | | | $ | 113,215 | | | $ | 102,605 | | | $ | 77,750 | | | $ | 13,264 | | | $ | 68,713 | | | $ | (63 | ) | | $ | 950,501 | |
| Total | | $ | 386,585 | | | $ | 95,756 | | | $ | 118,668 | | | $ | 85,284 | | | $ | 17,905 | | | $ | 51,518 | | | $ | (346 | ) | | $ | 755,370 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Nine Months Ended October 2, 2022 (2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Timing of Revenue Recognition | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Point in Time | | $ | 1,102,467 | | | $ | 281,456 | | | $ | 317,230 | | | $ | 234,352 | | | $ | 49,570 | | | $ | 152,079 | | | $ | - | | | $ | 2,137,154 | |
| Over Time | | | 193,996 | | | | 21,473 | | | | 52,295 | | | | 6,268 | | | | 2,582 | | | | 9,441 | | | | - | | | | 286,055 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | 1,296,463 | | | $ | 302,929 | | | $ | 369,525 | | | $ | 240,620 | | | $ | 52,152 | | | $ | 161,520 | | | $ | - | | | $ | 2,423,209 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Geographical Market | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Asia Pacific | | $ | 1,153,599 | | | $ | 294,986 | | | $ | 243,135 | | | $ | 54,828 | | | $ | 10,826 | | | $ | 113,472 | | | $ | - | | | $ | 1,870,846 | |
| Americas | | | 90,148 | | | | 6,727 | | | | 105,884 | | | | 81,857 | | | | 24,670 | | | | 36,628 | | | | - | | | | 345,914 | |
| Europe, Middle East and Africa | | | 52,716 | | | | 1,216 | | | | 20,506 | | | | 103,935 | | | | 16,656 | | | | 11,420 | | | | - | | | | 206,449 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | 1,296,463 | | | $ | 302,929 | | | $ | 369,525 | | | $ | 240,620 | | | $ | 52,152 | | | $ | 161,520 | | | $ | - | | | $ | 2,423,209 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

7

Table of Contents
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Semiconductor Test | | | | | | Industrial | | | | | | | | | | |
| | | | | | | | | Automation | | | | | | | | | | |
| | | System | | | Memory | | | System | | | Universal | | | Mobile | | | Wireless | | | Corporate | | | Total | |
| | | | | | | | | Test | | | Robots | | | Industrial | | | | | | | | | | |
| | | on-a-Chip | | | | | | | | | | | | Robots | | | Test | | | and | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | Eliminations | | | | |
| | | (in thousands) | |
| For the Nine Months Ended October 3, 2021 (2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Timing of Revenue Recognition | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Point in Time | | $ | 1,548,895 | | | $ | 291,578 | | | $ | 295,666 | | | $ | 214,427 | | | $ | 41,612 | | | $ | 154,908 | | | $ | (352 | ) | | $ | 2,546,734 | |
| Over Time | | | 188,022 | | | | 21,776 | | | | 44,595 | | | | 5,001 | | | | 2,111 | | | | 9,596 | | | | - | | | | 271,101 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | 1,736,917 | | | $ | 313,354 | | | $ | 340,261 | | | $ | 219,428 | | | $ | 43,723 | | | $ | 164,504 | | | $ | (352 | ) | | $ | 2,817,835 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Geographical Market | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Asia Pacific | | $ | 1,618,117 | | | $ | 301,562 | | | $ | 223,507 | | | $ | 55,531 | | | $ | 8,674 | | | $ | 133,678 | | | $ | - | | | $ | 2,341,069 | |
| Americas | | | 71,562 | | | | 9,373 | | | | 98,475 | | | | 66,390 | | | | 17,799 | | | | 24,228 | | | | (352 | ) | | | 287,475 | |
| Europe, Middle East and Africa | | | 47,238 | | | | 2,419 | | | | 18,279 | | | | 97,507 | | | | 17,250 | | | | 6,598 | | | | - | | | | 189,291 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | 1,736,917 | | | $ | 313,354 | | | $ | 340,261 | | | $ | 219,428 | | | $ | 43,723 | | | $ | 164,504 | | | $ | (352 | ) | | $ | 2,817,835 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| (1) | Includes $1.8 million and $3.8 million in 2022, and 2021,| (1) | Includes $1.3 million and $2.3 million in 2023 and 2022, respectively, for leases of Teradyne's systems recognized outside Accounting Standards Codification ("ASC") 606 |
| | "Revenue from Contracts with Customers." |
| (2) | Includes $5.9 million and $11.1 million in 2022 and 2021, respectively, for leases of Teradyne's systems recognized outside ASC 606 |
| | "Revenue from Contracts with Customers." |
Contract Balances
During the three and nine months ended October 2,During the three months ended April 2, 2023 and April 3, 2022, Teradyne recognized $50.7 million and $35.0 million, respectively, that was previously included within the deferred revenue and customer advances balances at the beginning of the period. During the three and nine months ended October 3, 2021, Teradyne recognized $32.9 million and $82.5 million, respectively, that was previously included within the deferred revenue and customer advances balances. This revenue primarily relates to undelivered hardware, extended warranties, training, application support, and post contract support. Each of these represents a distinct performance obligation. As of April 2, 2023, Teradyne had $1,240.7 million of unsatisfied performance obligations. Teradyne expects to recognize 88% of the remaining performance obligations in the next 12 months and 12% in
1-3
years.
Deferred revenue and customer advances consist of the following at October 2, 2022 and December 31, 2021, and are included in short and long-term deferred revenue and customer advances on the balance sheet:

| | | | | | | | | |
| | | April 2, 2023 | | | December 31, 2022 | |
| | | | | | | |
| | | (in thousands) | |
| Maintenance, service and training | | $ | 70,609 | | | $ | 78,089 | |
| Extended warranty | | | 61,920 | | | | 64,168 | |
| Extended warranty | | | 49,343 | | | | 56,180 | |
| Customer advances, undelivered elements and other | | | 41,200 | | | | 59,147 | |
| | | | | | | | | |
| Total deferred revenue and customer advances | | $ | 161,152 | | | $ | 193,416 | |
| | | | | | | | | |

7

Table of Contents
Accounts Receivable
During the three and nine months ended October 2, 2022 and October 3, 2021, During the three months ended April 2, 2023 and April 3, 2022, Teradyne sold certain trade accounts receivables on a
non-recourse
basis to third-party financial institutions pursuant to factoring agreements. During the three months ended October 2, 2022 and October 3, 2021, total trade accounts receivable sold under the factoring agreements were $15.9 million and $66.9 million, respectively. During the nine months ended October 2, 2022, and October 3, 2021,April 2, 2023 and April 3, 2022, total trade accounts receivable sold under the factoring agreements were $34.2 million and $19.4 million, respectively. Factoring fees for the sales of receivables were recorded in interest expense and were not material. Teradyne accounted for these transactions as sales of receivables and presented cash proceeds as cash provided by operating activities in the consolidated statements of cash flows.
8

Table of Contents
E. INVENTORIES

Inventories, net consisted of the following at April 2, 2023 and December 31, 2022:

| | | | | | | | | |
| | | April 2, 2023 | | | December 31, 2022 | |
| | | | | | | |
| | | (in thousands) | |
| | | | | | | | | |
| Raw material | | $ | 228,762 | | | $ | 155,641 | |
| Raw material | | $ | 264,035 | | | $ | 256,065 | |
| Work-in-process | | | 42,093 | | | | 37,740 | |
| Work-in-process | | | 43,987 | | | | 37,982 | |
| Finished goods | | | 39,899 | | | | 49,949 | |
| Finished goods | | | 44,036 | | | | 30,972 | |
| | | | | | | | | |
| | | $ | 310,754 | | | $ | 243,330 | |
| | | $ | 352,058 | | | $ | 325,019 | |
| | | | | | | | | |
Inventory reserves at October 2, 2022 and December 31, 2021 were $124.8 million and $114.1 million, respectively.
Inventory reserves at April 2, 2023 and December 31, 2022 were $138.6 million and $136.8 million, respectively.
F
. FINANCIAL INSTRUMENTS
Cash Equivalents
Teradyne considers all highly liquid investments with maturities of three months or less at the date of acquisition to be cash equivalents.
Marketable Securities
Teradyne's equity and debt mutual funds are classified as Level 1 and
available-for-sale
debt securities are classified as Level 2. Contingent consideration is classified as Level 3. The vast majority of Level 2 securities are fixed income securities priced by third party pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available, use other observable inputs like market transactions involving identical or comparable securities.
During the three and nine months ended October 2, 2022 and October 3, 2021, During the three months ended April 2, 2023 and April 3, 2022, there were no transfers in or out of Level 1, Level 2, or Level 3 financial instruments.
Realized gains recorded in the three and nine months ended October 2, 2022 were $0.1 million and $0.6 million, respectively. Realized gains recorded in the three and
months ended April 2, 2023 and April 3, 2022 were $0.3 million and $0.4 
nine months ended October 3, 2021 were $0.5 million and $2.6 million, respectively. Realized losses recorded in the three and nine months ended October 2, 2022 were $0.3 million and $0.9 million, respectively. No realized losses were recorded in the three and nine months ended October 3, 2021.months ended April 2, 2023 and April 3, 2022 were $0.1 million and $0.2 million, respectively. Realized gains and losses are included in other (income) expense, net.
Unrealized losses on equity securities recorded in the three and nine months ended October 2, 2022 were $2.3 million and $11.1 million, respectively. No unrealized gains on equity securities were recorded in the three and nine months ended October 2, 2022. Unrealized gains on equity securities recorded inmonths ended April 2, 2023 were $2.0 
the
nine months ended October 3, 2021 were $3.3 million. Unrealized losses on equity securities recorded in the three and nine months ended October 3, 2021 were $0.4 million. and $1.1 million, respectively.months ended April 3, 2022 were $2.2 million. Unrealized gains and losses on equity securities are included in other (income) expense, net.
Unrealized gains and losses on
available-for-sale
debt securities are included in accumulated other comprehensive income (loss) on the balance sheet.
The cost of securities sold is based on average cost.
The following table sets forth by fair value hierarchy Teradyne's financial assets and liabilities that were measured at fair value on a recurring basis as of April 2, 2023 and December 31, 2022.

8

Table of Contents
| | | | | | | | | | | | | | | | | |
| | | April 2, 2023 | |
| | | Quoted Prices | | | Significant | | | Significant | | | Total | |
| | | | | | | | | | | | | |
| | | in Active | | | Other | | | Unobservable | | | | |
| | | | | | | | | | | | | |
| | | Markets for | | | Observable | | | Inputs | | | | |
| | | | | | | | | | | | | |
| | | Identical | | | Inputs | | | (Level 3) | | | | |
| | | | | | | | | | | | | |
| | | Instruments | | | (Level 2) | | | | | | | |
| | | | | | | | | | | | | |
| | | (Level 1) | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | (in thousands) | |
| Assets | | | | | | | | | | | | | | | | |
| Cash | | $ | 244,542 | | | $ | - | | | $ | - | | | $ | 244,542 | |
| Cash equivalents | | | 51,243 | | | | 194,759 | | | | - | | | | 246,002 | |
| Cash equivalents | | | 252,374 | | | | 152,292 | | | | - | | | | 404,666 | |
| Available-for-sale | | | | | | | | | | | | | | | | |
| securities: | | | | | | | | | | | | | | | | |
| U.S. Treasury securities | | | - | | | | 52,168 | | | | - | | | | 52,168 | |
| Corporate debt securities | | | - | | | | 51,369 | | | | - | | | | 51,369 | |
| Commercial paper | | | - | | | | 47,548 | | | | - | | | | 47,548 | |
| Debt mutual funds | | | 6,441 | | | | - | | | | - | | | | 6,441 | |
| U.S. government agency securities | | | - | | | | 7,394 | | | | - | | | | 7,394 | |
| U.S. government agency securities | | | - | | | | 4,681 | | | | - | | | | 4,681 | |
| Debt mutual funds | | | 6,800 | | | | - | | | | - | | | | 6,800 | |
| Certificates of deposit and time deposits | | | - | | | | 1,754 | | | | - | | | | 1,754 | |
| Non-U.S. | | | - | | | | 554 | | | | - | | | | 554 | |
| government securities | | | | | | | | | | | | | | | | |
| Equity securities: | | | | | | | | | | | | | | | | |
| Mutual funds | | | 34,573 | | | | - | | | | - | | | | 34,573 | |
| Mutual funds | | | 42,246 | | | | - | | | | - | | | | 42,246 | |
| | | | | | | | | | | | | | | | | |
| | | $ | 557,001 | | | $ | 330,094 | | | $ | - | | | $ | 887,095 | |
| Derivative assets | | | - | | | | 546 | | | | - | | | | 546 | |

| | | | | | | | | | | | | | | | | |
| Total | | $ | 557,001 | | | $ | 330,640 | | | $ | - | | | $ | 887,641 | |
| Total | | $ | 545,962 | | | $ | 313,079 | | | $ | - | | | $ | 859,041 | |
| | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | |
| Derivative liabilities | | $ | - | | | $ | 1,980 | | | $ | - | | | $ | 1,980 | |
| | | | | | | | | | | | | | | | | |
| Total | | $ | - | | | $ | 1,980 | | | $ | - | | | $ | 1,980 | |
| | | | | | | | | | | | | | | | | |
| | | | | |
| Reported as follows:|

| | | | | | | | | | | |
| | | | | |
| | | (Level 1) | | | (Level 2) | | | (Level 3) | | | Total | |
| | | | | | | | | | | | | |
| | | (in thousands) | |
| Assets | | | | | | | | | | | | | | | | |
| Cash and cash equivalents | | $ | 515,987 | | | $ | 194,759 | | | $ | - | | | $ | 710,746 | |496,916 | | | $ | 152,292 | | | $ | - | | | $ | 649,208 | |
| Marketable securities | | | - | | | | 92,895 | | | | - | | | | 92,895 | |
| Long-term marketable securities | | | 41,014 | | | | 70,025 | | | | - | | | | 111,039 | |
| Prepayments and other current assets | | | - | | | | 546 | | | | - | | | | 546 | |
49,046 | | | | 67,892 | | | | - | | | | 116,938 | |
| | | | | | | | | | | | | | | | | |
| Total | | $ | 557,001 | | | $ | 330,640 | | | $ | - | | | $ | 887,641 | |
| Total | | $ | 545,962 | | | $ | 313,079 | | | $ | - | | | $ | 859,041 | |
| | | | | | | | | | | | | | | | | |
| Liabilities | | | . | | | | | | | | | | | | | |
| Other current liabilities | | $ | - | | | $ | 1,980 | | | $ | - | | | $ | 1,106 | |
| r | | | | | | | | | | | | | | | | |
| ent liabilities | | | | | | | | | | | | | | | | |
1,980 | |
| | | | | | | | | | | | | | | | | |
| Total | | $ | - | | | $ | 1,980 | | | $ | - | | | $ | 1,980 | |
| | | | | | | | | | | | | | | | | |

1
9

Table of Contents
| | | | | | | | | | | | | | | | | |
| | | December 31, 2022 | |
| | | Quoted Prices | | | Significant | | | Significant | | | Total | |
| | | | | | | | | | | | | |
| | | in Active | | | Other | | | Unobservable | | | | |
| | | | | | | | | | | | | |
| | | Markets for | | | Observable | | | Inputs | | | | |
| | | | | | | | | | | | | |
| | | Identical | | | Inputs | | | (Level 3) | | | | |
| | | | | | | | | | | | | |
| | | Instruments | | | (Level 2) | | | | | | | |
| | | | | | | | | | | | | |
| | | (Level 1) | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | (in thousands) | |
| Assets | | | | | | | | | | | | | | | | |
| Cash | | $ | 632,417 | | | $ | - | | | $ | - | | | $ | 632,417 | |
| Cash equivalents | | | 412,212 | | | | 81,247 | | | | - | | | | 493,459 | |
| Cash equivalents | | | 161,767 | | | | 60,589 | | | | - | | | | 222,356 | |
| Available-for-sale | | | | | | | | | | | | | | | - | |
| Available for sale securities: | | | | | | | | | | | | | | | | |
| Commercial paper | | | - | | | | 189,620 | | | | - | | | | 189,620 | |
| Corporate debt securities | | | - | | | | 50,856 | | | | - | | | | 50,856 | |
| U.S. Treasury securities | | | - | | | | 39,649 | | | | - | | | | 39,649 | |
| Commercial paper | | | - | | | | 7,159 | | | | - | | | | 7,159 | |
| Debt mutual funds | | | 6,580 | | | | - | | | | - | | | | 6,580 | |
| U.S. government agency securities | | | - | | | | 6,352 | | | | - | | | | 6,352 | |
| Certificates of deposit and time deposits | | | - | | | | 1,740 | | | | - | | | | 1,740 | |
| Non-U.S. | | | - | | | | 535 | | | | - | | | | 535 | |
| government securities | | | | | | | | | | | | | | | | |
| Equity securities: | | | | | | | | | | | | | | | | |
| Mutual funds | | | 37,518 | | | | - | | | | - | | | | 37,518 | |
| | | | | | | | | | | | | | | | | |
| | | $ | 1,088,176 | | | $ | 412,112 | | | $ | - | | | $ | 1,500,288 | |
| Total | | $ | 838,282 | | | $ | 166,880 | | | $ | - | | | $ | 1,005,162 | |
| Derivative assets | | | - | | | | 86 | | | | - | | | | 86 | |
| | | | | | | | | | | | | | | | | |
| Total | | $ | 1,088,176 | | | $ | 412,204 | | | $ | - | | | $ | 1,500,380 | |
| Total | | $ | 838,282 | | | $ | 166,966 | | | $ | - | | | $ | 1,005,248 | |
| | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | |
| Derivative liabilities | | $ | - | | | $ | 4,215 | | | $ | - | | | $ | 4,215 | |
| | | | | | | | | | | | | | | | | |
| Total | | $ | - | | | $ | 4,215 | | | $ | - | | | $ | 4,215 | |
| | | | | | | | | | | | | | | | | |
| | | | | |
| Reported as follows:|

| | | | | | | | | | | |
| | | | | |
| | | (Level 1) | | | (Level 2) | | | (Level 3) | | | Total | |
| | | | | | | | | | | | | |
| | | (in thousands) | |
| Assets | | | | | | | | | | | | | | | | |
| Cash and cash equivalents | | $ | 1,040,952 | | | $ | 81,247 | | | $ | - | | | $ | 1,122,199 | |794,184 | | | $ | 60,589 | | | $ | - | | | $ | 854,773 | |
| Marketable securities | | | - | | | | 39,612 | | | | - | | | | 39,612 | |
| Long-term marketable securities | | | 47,224 | | | | 86,634 | | | | - | | | | 133,858 | |44,098 | | | | 66,679 | | | | - | | | | 110,777 | |
| Prepayments and other current assets | | | - | | | | 86 | | | | - | | | | 86 | |
| | | | | | | | | | | | | | | | | |
| Total | | $ | 1,088,176 | | | $ | 412,204 | | | $ | - | | | $ | 1,500,380 | |
| Total | | $ | 838,282 | | | $ | 166,966 | | | $ | - | | | $ | 1,005,248 | |
| | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | |
| Other current liabilities | | $ | - | | | $ | 4,215 | | | $ | - | | | $ | 4,215 | |
| | | | | | | | | | | | | | | | | |
| Total | | $ | - | | | $ | 118 | | | $ | - | | | $ | 118 | |
| Total | | $ | - | | | $ | 4,215 | | | $ | - | | | $ | 4,215 | |
| | | | | | | | | | | | | | | | | |
Changes in the fair value of Level 3 contingent consideration for the nine months ended October 2, 2022, and October 3, 2021 were as follows:

| | | | | | | | | | | | | | | | | |
| | | For the Three Months | | | For the Nine Months | |
| | | | | | | |
| | | Ended | | | Ended | |
| | | October 2, | | | October 3, | | | October 2, | | | October 3, | |
| | | 2022 | | | 2021 | | | 2022 | | | 2021 | |
| | | (in thousands) | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Balance at beginning of period | | $ | - | | | $ | - | | | $ | - | | | $ | 7,227 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Fair value adjustment (a) | | | - | | | | - | | | | - | | | | (7,227 | ) |
| | | | | | | | | | | | | | | | | |
| Balance at end of period | | $ | - | | | $ | - | | | $ | - | | | $ | - | |

| | | | | | | | | | | | | | | | | |

| (a) | In the nine months ended October 3, 2021, the fair value of contingent consideration for the earn-outs in connection with the acquisition of AutoGuide was reduced to zero, which resulted in a benefit of $7.2 million, primarily due to a decrease in forecasted revenues and earnings before interest and taxes. |
On March 25, 2022, the arbitration claim filed by Industrial Automation LLC, sellers of AutoGuide, against Teradyne alleging
non-compliance
with the
earn-out
provisions of the Membership Interests Purchase Agreement, dated as of October 18, 2019, among Industrial Automation LLC, Teradyne and AutoGuide was settled for $26.7 million. As a result, Teradyne has no remaining
earn-out
obligations.

1
1

Table of Contents
The carrying amounts and fair values of Teradyne's financial instruments at April 2, 2023 and December 31, 2022 were as follows:

| | | | | | | | | | | | | | | | | |
| | | April 2, 2023 | | | December 31, 2022 | |
| | | Carrying Value | | | Fair Value | | | Carrying Value | | | Fair Value | |
| | | | | | | | | | | | | |
| | | (in thousands) | |
| Assets | | | | | | | | | | | | | | | | |
| Cash and cash equivalents | | $ | 710,746 | | | $ | 710,746 | | | $ | 1,122,199 | | | $ | 1,122,199 | |649,208 | | | $ | 649,208 | | | $ | 854,773 | | | $ | 854,773 | |
| Marketable securities | | | 176,349 | | | | 176,349 | | | | 378,089 | | | | 378,089 | |
| Marketable securities | | | 209,833 | | | | 209,833 | | | | 150,389 | | | | 150,389 | |
| Derivative assets | | | - | | | | - | | | | 86 | | | | 86 | |
| Liabilities | | | | | | | | | | | | | | | | |
| Derivative liabilities | | | 1,106 | | | | 1,106 | | | | 118 | | | | 118 | |1,980 | | | | 1,980 | | | | 4,215 | | | | 4,215 | |
| Convertible debt | | | 64,791 | | | | 154,486 | | | | 108,426 | | | | 604,648 | |
| Convertible debt | | | 35,109 | | | | 119,586 | | | | 50,115 | | | | 139,007 | |

10

Table of Contents
The fair values of accounts receivable, net and accounts payable approximate the carrying value due to the short-term nature of these instruments.
The following table summarizes the composition of
available-for-sale
marketable securities at April 2, 2023:

| | | | | | | | | | | | | | | | | | | | | |
| | | April 2, 2023 | |
| | | Available-for-Sale | | | | |
| | | Cost | | | Unrealized | | | Unrealized | | | Fair Market | | | Fair Market | |
| | | | | | | | | | | | Market | | | | |
| | | | | | Gain | | | (Loss) | | | Value | | | Value of | |
| | | | | | | | | | | | Value | | | | |
| | | | | | | | | | | | | | | Investments | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | with Unrealized | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Losses | |
| | | (in thousands) | |
| U.S. Treasury securities | | $ | 69,598 | | | $ | - | | | $ |(4,244 | ) | | $ | 65,354 | | | $ | 65,354 | |

| | | | | | | | | | | | | | | | |
| | | (in thousands) | |

| Corporate debt securities | | | 52,926 | | | | 1 | | | | (7,063 | ) | | | 45,864 | | | | 45,622 | |
| U.S. Treasury securities | | $ | 55,615 | | | $ | 38 | | | $ | (3,485 | ) | | $ | 52,168 | | | $ | 49,669 | |
| Corporate debt securities | | | 56,040 | | | | 41 | | | | (4,712 | ) | | | 51,369 | | | | 49,131 | |
| Commercial paper | | | 47,225 | | | | 337 | | | | (14 | ) | | | 47,548 | | | | 16,845 | |
| U.S. government agency securities | | | 7,427 | | | | 9 | | | | (42 | ) | | | 7,394 | | | | 4,419 | |
| Debt mutual funds | | | 7,130 | | | | - | | | | (456 | ) | | | 6,441 | | | | 3,075 | |(330 | ) | | | 6,800 | | | | 3,312 | |
| U.S. government agency securities | | | 4,790 | | | | - | | | | (109 | ) | | | 4,681 | | | | 4,681 | |
| Certificates of deposit and time deposits | | | 1,754 | | | | - | | | | - | | | | 1,754 | | | | - | |
| Non-U.S. | | | 554 | | | | - | | | | - | | | | 554 | | | | - | |
| government securities | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | $ | 175,745 | | | $ | 425 | | | $ | (11,879 | ) | | $ | 141,776 | | | $ | 127,715 | |(8,583 | ) | | $ | 167,587 | | | $ | 123,376 | |
| | | | | | | | | | | | | | | | | | | | | |
Reported as follows:

| | | | | | | | | | | | | | | | | | | | | |
| | | Cost | | | Unrealized | | | Unrealized | | | Fair Market | | | Fair Market | |
| | | | | | | | | | | | | | | | |
| | | | | | Gain | | | (Loss) | | | Value | | | Value of | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Investments | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | with Unrealized | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Losses | |
| | | | | | | | | | | | | | | | |
| | | (in thousands) | |
| Marketable securities | | $ | 92,915 | | | $ | 337 | | | $ | (357 | ) | | $ | 92,895 | | | $ | 60,438 | |
| Long-term marketable securities | | | 82,830 | | | | 88 | | | | (11,410 | ) | | | 76,466 | | | | 72,346 | |(8,226 | ) | | | 74,692 | | | | 62,938 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | $ | 175,745 | | | $ | 425 | | | $ | (11,879 | ) | | $ | 141,776 | | | $ | 127,715 | |(8,583 | ) | | $ | 167,587 | | | $ | 123,376 | |
| | | | | | | | | | | | | | | | | | | | | |
1
2

Table of Contents
The following table summarizes the composition of
available-for-sale
marketable securities at December 31, 2022:

| | | | | | | | | | | | | | | | | | | | | |
| | | December 31, 2022 | |
| | | Available-for-Sale | | | | |
| | | Cost | | | Unrealized | | | Unrealized | | | Fair Market | | | Fair Market | |
| | | | | | | | | | | | Market | | | | |
| | | | | | Gain | | | (Loss) | | | Value | | | Value of | |
| | | | | | | | | | | | Value | | | | |
| | | | | | | | | | | | | | | Investments | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | with Unrealized | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Losses | |
| | | | | | | | | | | | | | | | |
| | | (in thousands) | |
| Corporate debt securities | | $ | 57,006 | | | $ | 3 | | | $ | (9 | ) | | $ | 189,620 | | | $ | 22,784 | |(6,153 | ) | | $ | 50,856 | | | $ | 50,667 | |
| U.S. Treasury securities | | | 44,030 | | | | - | | | | (470 | ) | | | 77,789 | | | | 46,435 | |(4,381 | ) | | | 39,649 | | | | 39,649 | |
| Corporate debt securities | | | 52,266 | | | | 4,863 | | | | (227 | ) | | | 56,901 | | | | 19,422 | |
| Commercial paper | | | 7,089 | | | | 70 | | | | - | | | | 7,159 | | | | - | |
| Debt mutual funds | | | 6,997 | | | | - | | | | (417 | ) | | | 6,580 | | | | 3,095 | |
| U.S. government agency securities | | | 6,442 | | | | - | | | | (90 | ) | | | 6,352 | | | | 6,352 | |
| Certificates of deposit and time deposits | | | 1,740 | | | | - | | | | - | | | | 1,740 | | | | - | |
| Non-U.S. | | | 535 | | | | - | | | | - | | | | 535 | | | | - | |
| government securities | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | $ | 334,077 | | | $ | 5,477 | | | $ | (718 | ) | | $ | 338,836 | | | $ | 91,937 | |
| | | $ | 123,839 | | | $ | 73 | | | $ | (11,041 | ) | | $ | 112,871 | | | $ | 99,763 | |
| | | | | | | | | | | | | | | | | | | | | |

11

Table of Contents
Reported as follows:

| | | | | | | | | | | | | | | | | | | | | |
| | | Cost | | | Unrealized | | | Unrealized | | | Fair Market | | | Fair Market | |
| | | | | | | | | | | | Market | | | | |
| | | | | | Gain | | | (Loss) | | | Value | | | Value of | |
| | | | | | | | | | | | Value | | | | |
| | | | | | | | | | | | | | | Investments | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | with Unrealized | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Losses | |
| | | | | | | | | | | | | | | | |
| | | (in thousands) | |
| Marketable securities | | $ | 39,950 | | | $ | 70 | | | $ | (408 | ) | | $ | 39,612 | | | $ | 30,713 | |
| Long-term marketable securities | | | 89,864 | | | | 5,413 | | | | (672 | ) | | | 94,605 | | | | 37,139 | |83,889 | | | | 3 | | | | (10,633 | ) | | | 73,259 | | | | 69,050 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | $ | 334,077 | | | $ | 5,477 | | | $ | (718 | ) | | $ | 338,836 | | | $ | 91,937 | |
| | | $ | 123,839 | | | $ | 73 | | | $ | (11,041 | ) | | $ | 112,871 | | | $ | 99,763 | |
| | | | | | | | | | | | | | | | | | | | | |
As of April 2, 2023, the fair market value of investments with unrealized losses less than one year and greater than one year totaled $68.4 million and $55.0 million, respectively. As of December 31, 2022, the fair market value of investments with unrealized losses for less than one year and greater than one year totaled $66.3 million and $33.4 million, respectively.
Teradyne reviews its investments to identify and evaluate investments that have an indication of possible impairment. Based on this review, Teradyne determined that the unrealized losses related to these investments at April 2, 2023 and December 31, 2022 were not other than temporary.
The contractual maturities of investments in
available-for-sale
securities held at April 2, 2023 were as follows:

| | | | | | | | | |
| | | April 2, 2023 | |
| | | Cost | | | Fair Market | |
| | | | | | | |
| | | | | | Value | |
| | | (in thousands) | |
| | | ||
| | | (in thousands) | |
| Due within one year | | $ | 92,915 | | | $ | 92,895 | |
| Due after 1 year through 5 years | | | 31,721 | | | | 30,672 | |
| Due after 5 years through 10 years | | | 5,022 | | | | 4,612 | |
| Due after 10 years | | | 40,244 | | | | 31,700 | |
| Due after 10 years | | | 38,957 | | | | 32,608 | |
| | | | | | | | | |
| Total | | $ | 146,722 | | | $ | 135,335 | |
| Total | | $ | 168,615 | | | $ | 160,787 | |
| | | | | | | | | |
Contractual maturities of investments in
available-for-sale
securities held at April 2, 2023 exclude debt mutual funds with a fair market value of $6.8 million, as they do not have a contractual maturity date.
1
3

Table of Contents
Derivatives
Teradyne conducts business in various foreign countries, with certain transactions denominated in local currencies. As a result, Teradyne is exposed to risks relating to changes in foreign currency exchange rates. Teradyne's foreign currency risk management objective is to minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, and changes in its cash inflows attributable to the forecasted cash flows from certain foreign currency denominated revenues.
To minimize the effect of exchange rate fluctuations associated with the remeasurement of monetary assets and liabilities denominated in foreign currencies, Teradyne enters into foreign currency forward contracts. The change in fair value of these derivatives is recorded directly in earnings and is used to offset the change in value of monetary assets and liabilities denominated in foreign currencies.
Teradyne also enters into foreign currency forward and option contracts designated as cash flow hedges to hedge the risk of changes in its cash inflows attributable to changes in foreign currency exchange rates. The cash flow hedges have maturities of less than six months and mature in the period of revenue recognition for certain products and services in b
a
backlog and forecasted to be recognized in a future period. Teradyne evaluates cash flow hedges for effectiveness at inception based on the critical terms match method. The hedges are not expected to incur any ineffectiveness however a quarterly qualitative assessment of effectiveness is done to determine if the critical terms match method remains appropriate to use. The change in fair value of the contracts is recorded in accumulated other comprehensive income (loss) and reclassified to earnings at maturity date.
Teradyne does not use derivative financial instruments for speculative purposes.

12

Table of Contents
At April 2, 2023
At October 2, 2022 and December 31, 2022, Teradyne had the following foreign currency forward contracts to buy and sell
non-U.S.
currencies for U.S. dollars and other
non-U.S.
currencies with the following notional amounts:

| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | April 2, 2023 | | | December 31, 2022 | |
| | | Buy | | | Sell | | | Net | | | Buy | | | Sell | | | Net | |
| | | | | | | | | | | | | | | | | | | |
| | | Position | | | Position | | | Total | | | Position | | | Position | | | Total | |
| | | (in millions) | |
| Japanese Yen | | $ | (37.5 | ) | | $ | - | | | $ | (37.5 | ) | |$ | (31.4 | ) | | $ |- | | | $ | (31.4 | ) |
| Taiwan Dollar | | | (35.2 | ) | | | - | | | | (35.2 | ) | | | (35.1
| | | | | | | | | | | | | | | | | | | |
| | | (in millions) | |
| Japanese Yen | | $ | (57.7 | ) | | $ | - | | | $ | (57.7 | ) | | $ | (37.1
| ) | | $ | - | | | $ | (37.1 | ) |
| Taiwan Dollar | | | (38.3 | ) | | | - | | | | (38.3 | ) | | | (29.2 | ) | | | - | | | | (29.2 | ) |
| Korean Won | | | (3.1 | ) | | | - | | | | (3.1 | ) | | | (6.4 | ) | | | - | | | | (6.4 | ) |
| Danish Krone | | | (0.5 | ) | | | - | | | | (0.5 | ) | | | - | | | | - | | | | - | |
| British Pound Sterling | | | (1.2 | ) | | | - | | | | (1.2 | ) | | | (1.2 | ) | | | - | | | | (1.2 | ) |
| Singapore Dollar | | | - | | | | 35.7 | | | | 35.7 | | | | - | | | | 33.5 | | | | 33.5 | |
| Euro | | | - | | | | 24.3 | | | | 24.3 | | | | - | | | | 38.4 | | | | 38.4 | |
| Philippine Peso | | | - | | | | 2.5 | | | | 2.5 | | | | - | | | | 2.7 | | | | 2.7 | |
| Chinese Yuan | | | - | | | | 1.9 | | | | 1.9 | | | | - | | | | 2.2 | | | | 2.2 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | (100.3 | ) | | $ | 64.4 | | | $ | (35.9 | ) | | $ | (73.9 | ) | | $ | 76.8 | | | $ | 2.9 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
The fair value of the outstanding
foreign currency forward
contracts was a loss of $1.1 million and $0.9 million, respectively, at April 2, 2023 and December 31, 2022.
Unrealized gains and losses on foreign currency forward contracts and foreign currency remeasurement gains and losses on monetary assets and liabilities are included in other (income) expense, net.
At April 2, 2023 and December 31, 2022, Teradyne had the following cash flow hedge contracts to buy and sell
non-U.S.
currencies for U.S. dollars with the following notional amounts:

| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | April 2, 2023 | | | December 31, 2022 | |
| | | Buy | | | Sell | | | Net | | | Buy | | | Sell | | | Net | |
| | | | | | | | | | | | | | | | | | | |
| | | Position | | | Position | | | Total | | | Position | | | Position | | | Total | |
| | | | | | | | | | | | | | | | | | | |
| | | (in millions) | |
| Japanese Yen | | $ | (5.4 | ) | | $ | 26.6 | | | $ | 21.2 | | | $ | - | | | $ | - | | | $ | - | |
| Japanese Yen | | $ | (13.6 | ) | | $ | 30.2 | | | $ | 16.6 | | | $ | (23.4 | ) | | $ | 61.2 | | | $ | 37.8 | |
| Taiwan Dollar | | | - | | | | - | | | | - | | | | (5.5 | ) | | | 10.9 | | | | 5.4 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total | | $ | (14.6 | ) | | $ | 44.9 | | | $ | 30.3 | | | $ | - | | | $ | - | | | $ | - | |
| Total | | $ | (13.6 | ) | | $ | 30.2 | | | $ | 16.6 | | | $ | (28.9 | ) | | $ | 72.1 | | | $ | 43.2 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
14

Table of Contents
The fair value of the outstanding cash flow hedge contracts was a loss of $0.9
million and $3.2 million at April 2, 2023 and December 31, 2022, respectively.
Unrealized gains and losses on foreign currency cash flow hedge contracts are included in accumulated other comprehensive income (loss). At maturity the gains or losses associated with cash flow hedge contracts are recorded to revenue.
The following table summarizes the fair value of derivative instruments as of April 2, 2023 and December 31, 2022:

| | | | | | | | | | | | | |
| | | Balance Sheet | | | October 2, | | | December 31, | |
| | | Balance Sheet Location | | | April 2, | | | December 31, | |
| | | | | | | | | | |
| | | | | | 2023 | | | 2022 | |
| | | | | | | | | | |
| | | | | | (in thousands) | |
| Derivatives not designated as hedging instruments: | | | | | | | | | | | | |
| Foreign exchange forward contracts | | | Prepayments | | | $ | - | | | $ | 92 | |
86 | |
| Foreign exchange forward contracts | | | Other current liabilities | | | | (1,057 | ) | | | (990 | ) |
| | | | | | | | | | | | | |
| Derivatives designated as hedging instruments: | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Foreign exchange option contracts | | | Other current liabilities | | | | (923 | ) | | | (3,225 | ) |
| | | | | | | | | | | | | |
| Total derivatives | | | | | | $ | (1,980 | ) | | $ | (4,129 | ) |
| | | | | | | | | | | | | |

13

Table of Contents
The following table summarizes the effect of derivative instruments recognized in the statement of operations for the three and nine months ended October 2, 2022 and October 3, 2021:months ended April 2, 2023 and April 3, 2022:

| | | | | | | | | | | | | |
| | | Location of Losses (Gains) | | For the Three Months | | | For the Three Months | |
| | | Recognized in | | | | || |
| | | Statement of Operations | | Ended | | | Ended | |
| | | October 2, | | | October 3, | | | October 2, | | | October 3, | |
| | | Location of Losses (Gains) | | | April 2, 2023 | | | April 3, 2022 | |
| | | 2022 | | | 2021 | | | 2022 | || 2021 | |
| | | | | (in thousands)
| | | | | | | | | | |
| | | Recognized in Statement | | | | |
| | |
| | | | | | | | | | |
| | | of Operations | | | | | |
| |
| | | | | | | | | | |
| | | | | | (in thousands) | |
| Derivatives not designated as hedging instruments: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Foreign exchange forward contracts | | | Other (income) expense, net | | $ | 1,246 | | | $ | 2,288 | | | $ | (2,209 | ) || $ | 5,937 | | | $ | 1,259 | | | $ | (1,752 | ) |
| | | | | | | | | | | | | | | | | | | |
| Derivatives designated as hedging instruments: | | | | | | | | | | | | | | | | |
| Foreign currency option contracts | | Revenue | | | - | | | | - | | | | - | | | | - | |
| Foreign exchange option contracts | | | Revenue | | | | 1,538 | | | | - | |
| | | | | | | | | | | | | |
| Total Derivatives | | | | $ | 1,246 | | | $ | 2,288 | | | $ | (2,209 | ) || $ | 5,937 | |
| Total Derivatives | | | | | | $ | 2,797 | | | $ | (1,752 | ) |
| | | | | | | | | | | | | | | | | | | |

The above table does not reflect the corresponding gains and losses from the remeasurement of the monetary assets and liabilities
denominated in foreign currencies. For the three and nine months ended October 2, 2022, net losses from the remeasurement of monetary assets and liabilities denominated in foreign currencies were $1.6 million and $9.5 million, respectively. For the three and nine months ended October 3, 2021, net gains from the months ended April 2, 2023 and April 3, 2022 net losses from remeasurement of monetary assets and liabilities denominated in foreign currencies were $0.4 million, and $4.3 million, respectively.
See Note G: "Debt" regarding derivatives related to the convertible senior notes.

G
. DEBT
Convertible Senior Notes
On December 12, 2016, Teradyne completed a private offering of $460.0 million aggregate principal amount of 1.25%
% convertible senior unsecured notes (the "Notes") due December 15, 2023 and received net proceeds, after issuance costs, of approximately
$450.8 
million,
$33.0 million

of which was used to pay the net cost of the convertible note hedge transactions and $50.1 million of which was used to repurchase 2.0 million shares of Teradyne's common stock under its existing stock repurchase program from purchasers of the Notes in privately negotiated transactions effected

through one of the initial purchasers or its affiliates conducted concurrently with the pricing of the Note offering. The Notes will mature on

December 15, 2023, unless earlier repurchased or converted. The Notes bear interest at a rate of 1.25% per year payable semiannually in arrears on June 15 and December 15 of each year. The Notes will be convertible at the option of the noteholders at any time prior to the close of

business on the business day immediately preceding September 15, 2023, only under the following circumstances: (1) during any calendar quarter beginning after

March 31, 2017 (and only during such calendar quarter), if the closing sale price of Teradyne's common stock, for at least 20 trading days (whether or

not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater

than 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive

trading day period

(the "measurement period") in which the trading price (as defined in the Indenture) per $1,000 principal amount of Notes for each

trading day of the measurement period was less than 98% of the product of the closing sale price of the Teradyne's common stock and the

conversion rate on each such trading day; and (3) upon the occurrence

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of specified
corporate events. On or after September 15, 2023, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Notes at any time, regardless of the foregoing circumstances. Teradyne may satisfy its future conversion obligation by paying cash for the principal amount of the Notes and paying or delivering cash, shares of its common stock or a combination of cash and shares of its common stock, at Teradyne's election for the amount in excess of principal. On November 4, 2021, Teradyne made an irrevocable election under the Indenture to require the principal portion of the remaining Notes to be settled in cash. As of April 2, 2023, the conversion price was approximately $31.44 per share of Teradyne's common stock. The conversion rate is subject to adjustment under certain circumstances. As of May 5, 2023, one hundred and thirty debt holders had exercised the option to convert $427.2 million worth of notes.
Concurrent with the offering of the Notes, Teradyne entered into convertible note hedge transactions (the "Note Hedge Transactions") with the initial purchasers or their affiliates (the "Option Counterparties"). The Note Hedge Transactions cover, subject to customary anti-dilution adjustments, the number of shares of the common stock that underlie the Notes, with a strike price equal to the conversion price of the Notes of $31.44.
Separately and concurrent with the pricing of the Notes, Teradyne entered into warrant transactions with the Option Counterparties (the "Warrant Transactions") in which it sold
net-share-settled
(or, at its election subject to certain conditions, cash-settled) warrants to the Option Counterparties. The Warrant Transactions currently cover, subject to customary anti-dilution adjustments, approximately 14.6 million shares of common stock. As of April 2, 2023, the strike price of the warrants was approximately $39.46 per share. The strike price is subject to adjustment under certain circumstances. The Warrant Transactions could have a dilutive effect to Teradyne's common stock to the extent that the market price per share of Teradyne's common stock, as measured under the terms of the Warrant Transactions, exceeds the applicable strike price of the warrants.

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The Note Hedge Transactions are expected to reduce the potential dilution to Teradyne's common stock upon any conversion of the Notes. However, the Warrant Transactions could separately have a dilutive effect to the extent that the market value per share of Teradyne's common stock exceeds the applicable strike price of the warrant. The net cost of the Note Hedge Transactions, after being partially offset by the proceeds from the sale of the warrants, was approximately $33.0 million.
In connection with establishing their initial hedge of these convertible note hedge and warrant transactions, the Option Counterparties have entered into various derivative transactions with respect to Teradyne's common stock and/or purchased shares of Teradyne's common stock or other securities, including the Notes, concurrent with, or shortly after, the pricing of the Notes. In addition, the Option Counterparties may modify their hedge positions by entering into or unwinding various derivative transactions with respect to Teradyne's common stock or by selling Teradyne's common stock or other securities, including the Notes, in secondary market transactions (and may do so during any observation period related to the conversion of the Notes). These activities could adversely affect the value of Teradyne's common stock and the Notes.
Originally, Teradyne allocated $100.8 million of the $460.0 million principal amount of the Notes to the equity component, which represented a discount to the debt and was amortized to interest expense using the effective interest method through December 2023. Effective January 1, 2022, Teradyne adopted ASC
2020-06
using the modified retrospective method of transition and accounts for the debt as a single liability measured at its amortized cost. As a result of the adoption, Teradyne recorded an increase of $1.4 million to current debt for unsettled shares, an increase of $1.8 million to deferred tax assets, an increase of $6.6 million to long-term debt for unamortized debt discount, and an increase to retained earnings of $94.6 million for the reclassification of the equity component. Mezzanine equity representing unsettled shares value was reduced to zero and additional
paid-in
capital was reduced by $100.8 million.
On November 4, 2021, Teradyne made an irrevocable election under the Indenture to require the principal portion of the remaining Notes to be settled in cash.
Debt issuance fees of approximately $0.2 million, at October 2, 2022, are being
Debt issuance fees at April 2, 2023, have been fully amortized to interest expense using the effective interest method over the seven-year term of the Notes.
The tables below represent the key components of Teradyne's convertible senior notes:

| | | | | | | | | |
| | | April 2, | | | December 31, | |
| | | | | | | |
| | | 2023 | | | 2022 | |
| Debt principal | | $ | 64,980 | | | $ | 116,980 | |
| Unamortized debt issuance fees (1) | | | 189 | | | |8,554 | |
| | | | | | | |
| | | | | | | | | |
| Net Carrying amount of convertible debt | | $ | 64,791 | | | $ | 108,426 | |
| | | | | | | | | |

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Reported as follows:

| | | | | | | | | |
| | | October 2, | | | December 31, | |
| | | 2022 | | | 2021 | |
| | | (in thousands) | |
| Current Debt | | $ | 14,596 | | | $ | 19,182 | |
| Debt principal | | $ | 35,109 | | | $ | 50,228 | |
| Long-term debt | | | 50,195 | | | | 89,244 | |
| Unamortized debt issuance fees | | | - | | | | 113 | |
| | | | | | | | | |
| Net carrying amount of convertible debt | | $ | 35,109 | | | $ | 50,115 | |
| | | | | | | | | |
Teradyne's convertible senior notes were reported as current debt at April 2, 2023 and December 31, 2022.
The interest expense on Teradyne's convertible senior notes for the three months ended April 2, 2023 and April 3, 2022 was as follows:

| | | | | | | | | |
| | | For the Three Months | | | For the Nine Months | |
| | | Ended | | | Ended | |
| | | October 2, | || October 3, | | | October 2, | | | October 3, | |
| | | Ended | |
| | | April 2, | | | April 3, | |

| | | 2022 | | | 2021 | | |2022 | | | 2021 | |
| | | | | | | |
| | | (in thousands) | | | (in thousands) | |
| | | 2023 | | | 2022 | |
| | | | | | | | | | | | || | | | |
| | | | | | | |
| | | (in thousands) | |

| Contractual interest expense on the coupon | | $ | 159 | | | $ | 355 | | | $ | 592 | | | $ | 2,666 | |138 | | | $ | 311 | |
| Amortization of the issue fees recognized as interest expense (2) | | | 43 | | | | 2,424 | | | | 173 | | | | 9,771 | | | | | 113 | | | | 66 | |
| | | | | | | | | |
| Total interest expense on the convertible debt | | $ | 251 | | | | $ | 377 | |
| | | | | | | | | |
| (1) | Unamortized debt issuance fees As of December 31, 2021 include unamortized debt discount of $8.1 million, which was eliminated with the adoption of ASU |
As of April 2, 2023,
| | 2020- |
| | 0 |
| | 6 |
| | on January 1, 2022. |
| (2) | Three and nine months ended October 3, 2021 includes the amortization of debt discount component, which was eliminated with the adoption of ASU |
| | 2020-06 |
| | on January 1, 2022. |
As of October 2, 2022, the conversion price was approximately $31.47 per share and the
$31.44 per share and the if converted
value of the notes was $120.0 million.
During the nine months ended October 2, 2022, thirty-three debt holders elected to convert $52.0 million of debt principal. The conversion of the debt was settled in cash for principal amount and in shares for the excess of conversion value over principal amount. The 1.2 million shares issued to the debt holders were received from exercising the convertible notes hedge call options.
Additional conversions of approximately $2.3 million of debt principal will occur in the fourth quarter of 2022 and the liability is included in current debt.second quarter of 2023.
Teradyne expects to make contractual interest payme
Teradyne expects to make principal interest payments of $0.4 million in the next 12 months.
nts of $0.6 million in the next 12 months.and $0.3 million thereafter.
Revolving Credit Facility
On May 1, 2020, Teradyne entered into a credit agreement (the "Credit Agreement") with Truist Bank, as administrative agent and collateral agent, and the lenders party thereto. The Credit Agreement provided for a three-year, senior secured revolving credit facility of $400.0 million (the "Credit Facility").

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On December 10, 2021, the Credit Agreement was amended to extend the maturity date of the Credit Facility to December 10, 2026. On October 5, 2022, the Credit Agreement was amended to increase the amount of the Credit Facility to $750.0 million from $400.0 million.
The Credit Agreement provides that, subject to customary conditions, Teradyne may seek to obtain from existing or new lenders the available incremental amount under the Credit Facility, not to exceed the greater
of $
of $200.0 
200.0
million or 
15%
% of consolidated EBIDTA. 
The interest rate applicable to loans under the Credit Facility are, at Teradyne's option, equal to either a base rate plus a margin ranging from 0.00% to 0.75% per annum or SOFR plus a margin ranging from 1.10% to 1.85% per annum, based on the consolidated leverage ratio of Teradyne. In addition, Teradyne will pay a commitment fee on the unused portion of the commitments under the Credit Facility ranging from 0.15% to 0.25% per annum, based on the then applicable consolidated leverage ratio.
Teradyne is not required to repay any loans under the Credit Facility prior to maturity, subject to certain customary exceptions. Teradyne is permitted to prepay all or any portion of the loans under the Credit Facility prior to maturity without premium or penalty, other than customary SOFR breakage costs.
The Credit Agreement contains customary events of default, representations, warranties and affirmative and negative covenants that, among other things, limit Teradyne's ability to sell assets, grant liens on assets, incur other secured indebtedness and make certain investments and restricted payments, all subject to exceptions set forth in the Credit Agreement. The Credit Agreement also requires Teradyne to satisfy two financial ratios measured as of the end of each fiscal quarter: a consolidated leverage ratio and an interest coverage ratio.
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The Credit
Facility is guaranteed by certain of Teradyne's domestic subsidiaries and collateralized by assets of Teradyne and such subsidiaries, including a pledge of 65% of the capital stock of certain foreign subsidiaries.
As of November 4, 2022, Teradyne has not borrowed any funds under the Credit facility and As of May 5, 2023, the Credit Agreement was undrawn and Teradyne was in compliance with all covenants
See Note U: "Subsequent Event" regarding an increase in the amount of the Credit Facility.
under the Credit Agreement.
H
. PREPAYMENTS
Prepayments consist of the following:

| | | | | | | | | |
| | | April 2, | | | December 31, | |
| | | | | | | |
| | | 2023 | | | 2022 | |
| | | | | | | |

2022 | || 2021 | |
| | | (in thousands) | |
| Contract manufacturer and supplier prepayments | | $ | 494,849 | | | $ | 491,105 | |
| Prepaid maintenance and other services | | | 13,760 | | | | 13,660 | |
| Prepaid taxes | | | 22,677 | | | | 18,625 | |
| Prepaid taxes | | | 12,531 | | | | 15,090 | |
| Prepaid maintenance and other services | | | 16,591 | | | | 14,545 | |
| Other prepayments | | | 9,739 | | | | 13,038 | |
| Other prepayments | | | 14,997 | | | | 8,687 | |
| | | | | | | | | |
| Total prepayments | | $ | 502,678 | | | $ | 406,266 | |
| Total prepayments | | $ | 549,114 | | | $ | 532,962 | |
| | | | | | | | | |
I
. PRODUCT WARRANTY
Teradyne generally provides a
one-year
warranty on its products, commencing upon installation, acceptance or shipment. A provision is recorded upon revenue recognition to cost of revenues for estimated warranty expense based on historical experience. Related costs are charged to the warranty accrual as incurred. The balance below is included in other accrued liabilities.

| | | | | | | | | || | | | | | | |
| | | For the Three Months | || For the Nine Months | |
| | | | |
| | | Ended | | | Ended | |
| | | April 2, | | | April 3, | |
| | | | | | | |
| | | 2022 | || 2021 | | | 2022 | | | 2021 | |
| | | 2023 | | | 2022 | |
| | | | | | | |

| | | (in thousands) | |
| Balance at beginning of period | | $ | 16,036 | | | $ | 25,676 | | | $ | 24,577 | || $ | 16,633 | |14,181 | | | $ | 24,577 | |
| Accruals for warranties issued during the period | | | 4,930 | | | | 6,641 | | | | 15,460 | | | | 28,719 | |4,117 | | | | 4,100 | |
| Accruals related to | | | (654 | ) | | | (963 | ) | | | (5,024 | ) | | | (3,966 | ) |
| Accruals related to | | | (405 | ) | | | (2,758 | ) |
| pre-existing | | | | | | | | |
| warranties | | | | | | | | |
| Settlements made during the period | | | (6,181 | ) | | | (5,233 | ) | | | (20,882 | ) | | | (15,265 | ) |(4,992 | ) | | | (5,814 | ) |
| | | | | | | | | |
| Balance at end of period | | $ | 14,131 | | | $ | 26,121 | | | $ | 14,131 | | | $ | 26,121 | |12,901 | | | $ | 20,105 | |
| | | | | | | | | |

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When Teradyne receives revenue for extended warranties, beyond one year, it is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. The balance below is included in short and long-term deferred revenue and customer advances.

| | | | | | | | | |
| | | For the Three Months | || For the Nine Months | |
| | || | | | |

| | | | |
| | | Ended | |

| | | April 2, | | | April 3, | |
| | | October 2, | | | October 3, | || October 2, | | | October 3, | |
| | | | | | | |
| | | 2023 | | | 2022 | |


| | | 2022 | | |2021 | | | 2022 | | | 2021 | |


| | | | | | | |

| | | (in thousands) | |
| Balance at beginning of period | | $ | 65,791 | | | $ | 63,525 | | | $ | 64,168 | || $ | 51,929 | |56,180 | | | $ | 64,168 | |
| Deferral of new extended warranty revenue | | | 6,987 | | | | 12,728 | | | | 28,550 | | | | 36,533 | |4,413 | | | | 11,774 | |
| Recognition of extended warranty deferred revenue | | | (10,858 | ) | | | (8,771 | ) | | | (30,798 | ) | | | (20,980 | ) |(11,250 | ) | | | (10,216 | ) |
| | | | | | | | | |
| Balance at end of period | | $ | 61,920 | | | $ | 67,482 | | | $ | 61,920 | | | $ | 67,482 | |49,343 | | | $ | 65,726 | |
| | | | | | | | | |
J
. STOCK-BASED COMPENSATION
On February 1, 2023 (the" Retirement Date"), Mark E. Jagiela retired as Chief Executive Officer of Teradyne and a member of Teradyne's Board of Directors, and Teradyne entered into an agreement (the "Retirement Agreement") with Mr. Jagiela. Under the Retirement Agreement, Mr. Jagiela's unvested time-based restricted stock units and stock options granted prior to his Retirement Date were modified to allow continued vesting; and any vested options or options that vest during that period may be exercised for the remainder of the applicable option term. During the three months ended April 2, 2023, Teradyne recorded a stock based compensation expense of $5.9 million related to the Retirement Agreement.
K. STOCK-BASED compensation
Under Teradyne's stock compensation plans, Teradyne grants time-based restricted stock units, performance-based restricted stock units and stock options, and employees are eligible to purchase Teradyne's common stock through its Employee Stock Purchase Plan ("ESPP").
Service-based restricted stock unit awards granted to employees vest in equal annual installments over four years. Restricted stock unit awards granted to
non-employee
directors vest after a
one-year
period, with 100% of the award vesting on the earlier of (a) the first anniversary of the grant date or (b) the date of the following year's Annual Meeting of Shareholders. Teradyne expenses the cost of the restricted stock unit awards subject to time-based vesting, which is determined to be the fair market value of the shares at the date of grant, ratably over the period during which the restrictions lapse.
Performance-based restricted stock units ("PRSUs") granted to Teradyne's executive officers may have a performance metric based on relative total shareholder return ("TSR"). Teradyne's three-year TSR performance is measured against the New York Stock Exchange ("NYSE") Composite Index. The final number of TSR PRSUs that vest will vary based upon the level of performance achieved from 0% to 200% of the target shares. The TSR PRSUs will vest upon the three-year anniversary of the grant date. The TSR PRSUs are valued using a Monte Carlo simulation model. The number of units expected to be earned, based upon the achievement of the TSR market condition, is factored into the grant date Monte Carlo valuation. Compensation expense is recognized on a straight-line basis over the shorter of the three-year service period or the period from the grant to the date described in the retirement provisions below. Compensation expense for executive officers meeting the retirement provisions prior to the grant date is recognized during the year following the grant. Compensation expense is recognized regardless of the eventual number of units that are earned based upon the market condition, provided the executive officer remains an employee at the end of the three-year period. Compensation expense is reversed if at any time during the three-year service period the executive officer is no longer an employee, subject to the retirement and termination eligibility provisions noted below.
PRSUs granted to Teradyne's executive officers may also have a performance metric based on three-year cumulative
non-GAAP
profit before interest and tax ("PBIT") as a percent of Teradyne's revenue.
Non-GAAP
PBIT is a financial measure equal to GAAP income from operations less restructuring and other, net; amortization of acquired intangible assets; acquisition and divestiture related charges or credits; pension actuarial gains and losses;
non-cash
convertible debt interest expense; and other
non-recurring
gains and charges. The final number of PBIT PRSUs that vest will vary based upon the level of performance achieved from 0% to 200% of the target shares. The PBIT PRSUs will vest upon the three-year anniversary of the grant date. Compensation expense is recognized on a straight-line basis over the shorter of the three-year service period or the period from the grant date to the date described in the retirement provisions below. Compensation expense for executive officers meeting the retirement provisions prior to the grant date is recognized during the year following the grant. Compensation expense is recognized based on the number of units that are earned based upon the three-year Teradyne PBIT as a percent of Teradyne's revenue, provided the executive officer remains an employee at the end of the three-year period subject to the retirement and termination eligibility provisions noted below.
If a PRSU recipient's employment ends prior to the determination of the performance percentage due to (1) permanent disability or death or (2) retirement or termination other than for cause, after attaining both at least age sixty and at least ten years of service, then all or a portion of the recipient's PRSUs (based on the actual performance percentage achieved on the determination date) will

17

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vest on the date the performance percentage is determined. Except as set forth in the preceding sentence, no PRSUs will vest if the executive officer is no longer an employee at the end of the three-year period.
Stock options to purchase Teradyne's common stock at 100% of the fair market value on the grant date vest in equal annual installments over four years from the grant date and have a maximum term of seven years
During the nine months ended October 2, 2022 and October 3, 2021, During the three months ended April 2, 2023 and April 3, 2022, Teradyne granted 0.5 million and 0.4 million of service-based restricted stock unit awards to employees at a weighted average grant date fair value of $110.34 and $113.76, respectively, and $0.1 million of service-based restricted stock unit awards to
non-employee
directors at a weighted average grant date fair value of $106.91 and $127.77, respectively.
$102.36 and $111.31, respectively.
During the nine months ended October 2, 2022 and October 3, 2021, During the three months ended April 2, 2023 and April 3, 2022, Teradyne granted 0.1 million of PBIT PRSUs with a grant date fair value of $102.23 and $110.84, respectively.
respectively.

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Table of Contents
Duri
ng the nine months ended October 2, 2022 and October 3, 2021, During the three months ended April 2, 2023 and April 3, 2022, Teradyne granted 0.1 million of TSR PRSUs, with a grant date fair value of $137.64 and $101.06, respectively. The fair value was estimated using the Monte Carlo simulation model with the following assumptions:

| | | | | | | | | |
| | | For the Three Months | |
| | | | |
| | | Ended | |
| | | April 2, | | | April 3, | |
| | | | | | | |
| | | | 2023 | | | 2022 | ||
| Risk-free interest rate | | | 3.9 | % | | | 1.4 | % |
| Teradyne volatility-historical | | | 50.2 | % | | | 47.1 | % |
| NYSE Composite Index volatility-historical | | | 24.8 | % | | | 22.7 | % |
| Dividend yield | | | 0.4 | % | | | 0.4 | % |
Expected volatility was based on the historical volatility of Teradyne's stock and the NYSE Composite Index over the most recent three-year period. The risk-free interest rate was determined using the U.S. Treasury yield curve in effect at the time of grant. Dividend yield was based upon an estimated annual dividend amount of $0.44 per share divided by Teradyne's stock price on the grant date of $103.44 for the 2023 grant and an estimated annual dividend amount of $0.44 per share divided by Teradyne's stock price on the grant date of $112.12 for the 2022 grant.
During the nine months ended October 2, 2022 and October 3, 2021, During the three months ended April 2, 2023 and April 3, 2022, Teradyne granted 0.1 million of service-based stock options to executive officers at a weighted average grant date fair value of $40.90 and $39.01, respectively.
The fair value of stock options was estimated using the Black-Scholes option-pricing model with the following assumptions:

| | | | | | | | | |
| | | For the Three Months | |
| | | | |
| | | Ended | |
| | | April 2, | | | April 3, | |
| | | | | | | |
| | | 2023 | | | 2022 | |
| Expected life (years) | | | 4.0 | | | | 4.0 | |
| Risk-free interest rate | | | 3.7 | % | | | 1.6 | % |
| Volatility-historical | | | 46.7 | % | | | 43.7 | % |
| Dividend yield | | | 0.4 | % | | | 0.4 | % |
Teradyne determined the stock options' expected life based upon historical exercise data for executive officers, the age of the executive officers and the terms of the stock option grant. Volatility was determined using historical volatility for a period equal to the expected life. The risk-free interest rate was determined using the U.S. Treasury yield curve in effect at the time of grant. Dividend yield was based upon an estimated annual dividend amount of $0.44 per share divided by Teradyne's stock price on the grant date of $103.44 for the 2023 grant and an estimated annual dividend amount of $0.44 per share divided by Teradyne's stock price on the grant date of $112.12 for the 2022 grant.

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K
. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Changes in accumulated other comprehensive income (loss), which are presented net of tax, consist of the following:

| | | | | | | | | | | | | | | | | | | | | |
| | | Foreign | | | Unrealized | | | Unrealized | | | Retirement | | | Total | |
| | | | | | (Losses) | | | (Losses) | | | | | | | |
| | | Currency | | | Gains on | | | Gains on | | | Plans | | | | |
| | | | | | | | | Cash Flow | | | Prior | | | | |
| | | Translation | | | Marketable | | | Hedges | | | | | | | |
| | | | | | | | | | | | Service | | | | |
| | | Adjustment | | | Securities | | | | | | Credit | | | | |
| | | | | | | | | | | | Credit | | | | |
| Nine Months Ended October 2, 2022 | | | | | | | | | | | | | | | |
| | | (in thousands) | |
| Three Months Ended April 2, 2023 | | | | | | | | | | | | | | | | | | | | |
| Balance at December 31, 2022, net of tax of $0, $1,055, $0, $(1,128), respectively | | $ | (10,818 | ) | | $ | 3,704 | | | $ | - | | | $ | 1,166 | | | $ | (5,948 | ) |$(2,308), $(708), $(1,130), respectively | | $ | (39,849 | ) | | $ | (8,661 | ) | | $ | (2,517 | ) | | $ | 1,159 | | | $ | (49,868 | ) |
| Other comprehensive (loss) gain before reclassifications, net of tax of $0, $(3,570), $0, $0, respectively | | | (66,258 | ) | | | (13,491 | ) | | | 537 | | | | - | | | | (79,212 | ) |$503, $167, $0, respectively | | | 9,309 | | | | 2,294 | | | | 596 | | | | - | | | | 12,199 | |
| Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $2, $338, $0, respectively | | | - | | | | 5 | | | | 1,200 | | | | (2 | ) | | | 1,203 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net current period other comprehensive gain (loss), net of tax of $0, $505, $505 $0, respectively | | | 9,309 | | | | 2,299 | | | | 1,796 (loss), gain, net of tax of $0, $(3,522), $0, $(2), respectively | | | (66,258 | ) | | | (13,105 | ) | | | 537 | | | | (2 | ) | | | 13,402 | |
| | | | | | | | | | | | | | | | | | | | | |
| Balance at October 2, 2022, net of tax of $0, $(2,467), $0, $(1,130) respectively | | $ | (77,076 | ) | | $ | (9,401 | ) | | $ | 537 | | | $ | 1,161 | | | $ | (84,779 | ) |
| Balance at April 2, 2023, net of tax of $0, $(1,803), $(203), $(1,130) respectively | | $ | (30,540 | ) | | $ | (6,362 | ) | | $ | (721 | ) | | $ | 1,157 | | | $ | (36,466 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended April 3, 2022 | | | | | | | | | | | | | | | | | | | | |
| Balance at December 31, 2021, net of tax of $0, $1,910, $0, $(1,126), respectively | | $ | 25,389 | | | $ | 6,954 | | | $ | - | | | $ | 1,173 | | | $ | 33,516 | |$1,055, $0, $(1,128), respectively | | $ | (10,818 | ) | | $ | 3,704 | | | $ | - | | | $ | 1,166 | | | $ | (5,948 | ) |
| Other comprehensive loss before reclassifications, net of tax of $0, $(1,333), $0, $0, respectively | | | (8,076 | ) | | | (5,388 | ) | | | - | | | | - | | | | (13,464 | ) |
| Amounts reclassified from accumulated other comprehensive income, net of tax of $0, $(18), $0, $0, respectively | | | - | | | | (65 | ) | | | - | | | | (2 | ) | | | (67 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Net current period other comprehensive loss, net of tax of $0, $(702), $0, $(2), respectively | | | (26,672 | ) | | | (2,622 $(1,351), $0, $0, respectively | | | (8,076 | ) | | | (5,453 | ) | | | - | | | | (2 | ) | | | (13,531 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Balance at October 3, 2021, net of tax of $0, $1,208, | Balance at April 3, 2022, net of tax of $0, $(296), $0, $(1,128), respectively | | $ | (1,283 | ) | | $ | 4,332 | | | $ | - | | | $ | 1,168 | | | $ | 4,217 | |(18,894 | ) | | $ | (1,749 | ) | | $ | - | | | $ | 1,164 | | | $ | (19,479 | ) |
| | | | | | | | | | | | | | | | | | | | | |
Reclassifications out of accumulated other comprehensive income (loss) to the statement of operations for the three and nine months ended October 2, 2022 and October 3, 2021 were as follows:months ended April 2, 2023 and April 3, 2022, were as follows:

| | | | | | | | | | | | | |
| Details about Accumulated Other Comprehensive Income (Loss) Components | | For the Three Months | | | For the Nine Months | | | Affected Line Item | |
| | | | | | | | | | |
| | | Ended | | | Ended | | | in the Statements | |
| | | | | | | || | |
| | | | | | of Operations | |
| | | October 2, | | | October 3, | | | October 2, | || October 3, | | | | |
| | | 2022 | || 2021 | | | 2022 | | | 2021
| | | April 2, | | | April 3, | | | | |
| | | 2023 | | | 2022 | | | | |
| | | | | | |
| | | ||
| | | (in thousands) | | | | |
| Available-for-sale | | | | | | | | | | | | |
| marketable securities: | | | | | | | | | | | | |
| Unrealized (losses) gains, net of tax of $11, $65, $(48 | | $ | (177 | ) | | $ | 229 | | | $ | (386 $(2) and $18, respectively | | $ | (5 | ) | | $ | 65 | | | | Other (income) | |
| ) | | | | | | | | | | | expense, net | |
| Cash flow hedges: | | | | | | | | | | | | |
| Unrealized losses, net of tax of $(338) and $0, respectively | | | (1,200 | )
| || | | | | | expense, net | |
| , $186, respectively | | | | || | | | |
| | | - | | | | Revenue | |
| Defined benefit postretirement plan: | | | | | | | | | Defined benefit pension and postretirement plans: | | | | | | | | | | | | |
| Amortization of prior service credit, net of tax of $0 $0, $2, $2,| Amortization of prior service benefit, net of tax of $0 and $0, respectively | | | 2 | | | | 2 | | | | 5 | | | | 5 | | | | | (a) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | || | | | | | | |
| Total reclassifications, net of tax of $11, $65, $46, $188, respectively | | $ | (175 | ) | | $ | 231 | | | $ | (381 $(340) and $18, respectively | | $ | (1,203 | ) | | $ | 67 | | | | Net income | |
| | | | | | | | | | | | | |

| (a) | The amortization of prior service credit is included in the computation of net periodic postretirement benefit cost. See Note |
| | O |
| | : "Retirement Plans." |

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L
. GOODWILL AND ACQUIRED INTANGIBLE ASSETS
Goodwill
Teradyne performs its annual goodwill impairment test as required under the provisions of ASC
350-10,
"Intangibles-Goodwill and Other"
on December 31 of each fiscal year unless interim indicators of impairment exist. In the three months ended April 2, 2023, there were no interim indicators of impairment. Goodwill is considered impaired when the net book value of a reporting unit exceeds its estimated fair value.
The changes in the carrying amount of goodwill by reportable segments for the nine months ended October 2, 2022, were as follows:three months ended April 2, 2023, were as follows:

| | | | | | | | | | | | | | | | | | | | | |
| | | Robotics | | | Wireless | | | Semiconductor | | | System Test | | | Total | |
| | | Automation | | | Test | | | Test | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | Test | | | Test | | | Test | | | | |
| Balance at December 31, 2021 | | | | | | | | | | | | | | | |
| | | (in thousands) | |
| Balance at December 31, 2022 | | | | | | | | | | | | | | | | | | | | |
| Goodwill | | $ | 383,166 | | | $ | 361,819 | | | $ | 262,077 | | | $ | 158,699 | | | $ | 1,165,761 | |
| Accumulated impairment losses | | | - | | | | (353,843 | ) | | | (260,540 | ) | | | (148,183 | ) | | | (762,566 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| | | | 383,166 | | | | 7,976 | | | | 1,537 | | | | 10,516 | | | | 426,024 | |
| | | | | | | | | | | | | | | | | | | | | |
403,195 | |
| Foreign currency translation adjustment | | | (50,126 | ) | | | - | | | | (99 | ) | | | - | | | | (50,225 | ) |6,609 | | | | - | | | | 24 | | | | - | | | | 6,633 | |
| | | | | | | | | | | | | | | | | | | | | |
| Balance at April 2, 2023 | | | | | | | | | | | | | | | | | | | | |
| Goodwill | | | 389,775 | | | | 361,819 | | | | 262,101 | | | | 158,699 | | | | 1,172,394 | |
| Accumulated impairment losses | | | - | | | | (353,843 | ) | | | (260,540 | ) | | | (148,183 | ) | | | (762,566 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| | | $ | 389,775 | | | $ | 7,976 | | | $ | 1,561 | | | $ | 10,516 | | | $ | 409,828 | |
| | | | | | | | | | | | | | | | | | | | | |
Intangible Assets
Teradyne reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable or that the useful lives of these assets are no longer appropriate.
Amortizable intangible assets consist of the following and are included in intangible assets, net on the balance sheet:

| | | | | | | | | | | | | | | | | |
| | | Gross | | | Accumulated | | | Foreign | | | Net | |
| | | | | | | | | | | | | |
| | | Carrying | | | Amortization | | | Currency | | | Carrying | |
| | | | | | | | | | | | | |
| | | Amount | | | | | | Translation | | | Amount | |
| | | | | | | | | | | | | |
| | | | | | | | | Adjustment | | | | |
| | | (in thousands) | |
| Balance at October 2, 2022 | | | | |
| | || | | | || | | | | | | | | |

| | | | | | | | | | | | | |
| | | (in thousands) | |
| Balance at April 2, 2023 | | | | |

| Developed technology | | $ | 272,547 | | | $ | (232,802 | ) | | $ | (7,620 | ) | | $ | 32,125 | |
| Developed technology | | $ | 270,967 | | | $ | (237,269 | ) | | $ | (5,560 | ) | | $ | 28,138 | |
| Customer relationships | | | 57,739 | | | | (51,756 | ) | | | 184 | | | | 6,167 | |
| Tradenames and trademarks | | | 59,387 | | | | (40,809 | ) | | | (2,365 | ) | | | 16,213 | |(43,101 | ) | | | (1,345 | ) | | | 14,941 | |
| | | | | | | | | | | | | | | | | |
| Total intangible assets | | $ | 389,673 | | | $ | (324,234 | ) | | $ | (9,859 | ) | | $ | 55,580 | |388,093 | | | $ | (332,126 | ) | | $ | (6,721 | ) | | $ | 49,246 | |
| | | | | | | | | | | | | | | | | |
| Balance, December 31, 2022 | | | | | | | | | | | | | | | | |
| Developed technology | | $ | 272,547 | | | $ | (223,413 | ) | | $ | (4,093 | ) | | $ | 45,041 | |
| Developed technology | | $ | 270,967 | | | $ | (234,208 | ) | | $ | (5,935 | ) | | $ | 30,824 | |
| Customer relationships | | | 57,739 | | | | (51,186 | ) | | | 172 | | | | 6,725 | |
| Tradenames and trademarks | | | 59,387 | | | | (37,237 | ) | | | (583 | ) | | | 21,567 | |(41,930 | ) | | | (1,528 | ) | | | 15,929 | |
| | | | | | | | | | | | | | | | | |
| Total intangible assets | | $ | 389,673 | | | $ | (309,571 | ) | | $ | (4,467 | ) | | $ | 75,635 | |388,093 | | | $ | (327,324 | ) | | $ | (7,291 | ) | | $ | 53,478 | |
| | | | | | | | | | | | | | | | | |
Aggregate
intangible asset amortization expense was $4.7 million and $14.7 million, respectively, for the three and nine months ended October 2, 2022 and $5.4 million and $16.3 million, respectively.for the three and nine months ended October 3, 2021. for the three months ended April 2, 2023 and April 3, 2022 was $4.8 million and $5.1 million, respectively.

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Estimated intangible asset amortization expense for each of the five succeeding fiscal years and thereafter is as follows:

| | | | | |
| Year | | Amortization Expense | |
| | | (in thousands) | |
| 2023 | | $ | 14,219 | |
| 2024 | | | 18,749 | |
| 2025 | | | 11,320 | |
| 2026 | | | 2,371 | |
| 2027 | | | 1,155 | |
| Thereafter | | | 1,432 | |

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M
. NET INCOME PER COMMON SHARE
The following table sets forth the computation of basic and diluted net income per common share:

| | | | | | | | | |
| | | For the Three Months | || For the Nine Months | |
| | | | || | |
| | | Ended | | | Ended | |
| | | October 2, | | | October 3, | || October 2, | | | October 3, | |
| | | April 2, | | | April 3, | |
| | | 2023 | | | 2022 | |
| | | | | | | |


| | | 2022 | | |2021 | | | 2022 | | | 2021 | |

| | | (in thousands, except per share | |
| | | amounts) | |
| Net income for basic and diluted net income per share | | $ | 183,485 | | | $ | 256,718 | | | $ | 543,200 | | | $ | 790,549 | |83,531 | | | $ | 161,928 | |
| | | | | | | | | || | | | | | | |
| Weighted average common shares-basic | | | 156,364 | | | | 164,583 | | | | 159,325 | | | | 165,690 | |155,904 | | | | 162,048 | |
| Effect of dilutive potential common shares: | | | | | | | | |
| Convertible note hedge warrant shares (1) | | | 8,284 | | | | 9,819 | | | | 9,114 | | | | 9,774 | |8,983 | | | | 10,028 | |
| Incremental shares from assumed conversion of convertible notes (2) | | | 1,453 | | | | 6,464 | | | | 1,965 | | | | 8,784 | |914 | | | | 2,541 | |
| Restricted stock units | | | 453 | | | | 875 | |
| Stock options | | | 45 | | | | 73 | | | | 56 | | | | 87 | |
| Stock options | | | 48 | | | | 69 | |
| Employee stock purchase plan | | | 6 | | | | 14 | |
| | | | | | | | | |
| Dilutive potential common shares | | | 10,369 | | | | 17,404 | | | | 11,831 | | | | 19,802 | |10,404 | | | | 13,527 | |
| | | | | | | | | |
| Weighted average common shares-diluted | | | 166,733 | | | | 181,987 | | | | 171,156 | | | | 185,492 | |166,308 | | | | 175,575 | |
| | | | | | | | | |
| Net income per common share-basic | | $ | 0.54 | | | | $ | 1.00 | |
| | | | | | | | | |
| Net income per common share-diluted | | $ | 1.10 | | | $ | 1.41 | | | $ | 3.17 | | | $ | 4.26 | |0.50 | | | $ | 0.92 | |
| | | | | | | | | |

| (1) | Convertible notes hedge warrant shares were calculated using the difference between the average Teradyne stock price for the period and the warrant price, multiplied by the number of warrant shares. The result of this calculation, representing the total intrinsic value of the warrant, was divided by the average Teradyne stock price for the period. |
| (2) | Incremental shares from assumed conversion of the convertible notes were calculated using the difference between the average Teradyne stock price for the period and the conversion price, multiplied by the number of convertible notes shares. The result of this calculation, representing the total intrinsic value of the convertible debt, was divided by the average Teradyne stock price for the period. |
The computation of diluted net income per common share for the three and nine months ended October 2, 2022 excludes the effect of the potential vesting of 0.7 million and 0.9 million, respectively, of restricted stock units because the effect would have been anti-dilutive.months ended April 2, 2023 and April 3, 2022
The computation of diluted net income per common share for the three and nine months ended October 3, 2021 excludes the effect of the potential vesting of 0.5 million and 0.1 million, respectively, of restricted stock units because the effect would have been anti-dilutive.
N
. RESTRUCTURING AND OTHER
During the three months ended April 2, 2023, Teradyne recorded $2.0 million of severance charges related to headcount reductions of 67 people primarily in Semiconductor Test, Robotics and Corporate.primarily in Industrial Automation and $0.7 million for an increase in legal liabilities.
During the three months ended October 3, 2021, Teradyne recorded $0.6 million of severance charges primarily in Industrial Automation.
During the three months ended April 3,


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During the nine months ended October 2, 2022, Teradyne recorded a charge of $14.7 million related to the arbitration claim filed against Teradyne and AutoGuide related to an
earn-out
dispute, which was settled on March 25, 2022 for $26.7 million.a charge of $2.7 million for an increase in environmental and legal liabilities, and $2.1 million of severance charges primarily in Industrial Automation. Previously, in the three months ended December 31, 2021, Teradyne recorded a charge of $12.0 million related to this
O
dispute.
During the nine months ended October 3, 2021, Teradyne recorded a gain of $7.2 million for the decrease in the fair value of the AutoGuide contingent consideration liability, partially offset by a charge of $1.7 million for an increase in environmental and legal liabilities, and $1.2 million of severance charges primarily in Industrial Automation.
. RETIREMENT PLANS
ASC 715, "Compensation-Retirement Benefits," requires an employer with defined benefit plans or other postretirement benefit plans to recognize an asset or a liability on its balance sheet for the overfunded or underfunded status of the plans as defined by ASC 715. The pension asset or liability represents a difference between the fair value of the pension plan's assets and the projected benefit obligation at December 31. Teradyne uses a December 31 measurement date for all of its plans.
Defined Benefit Pension Plans
Teradyne has defined benefit pension plans covering a portion of domestic employees and employees of certain
non-U.S.
subsidiaries. Benefits under these plans are based on employees' years of service and compensation. Teradyne's funding policy is to make contributions to these plans in accordance with local laws and to the extent that such contributions are tax deductible. The assets of the U.S. qualified pension plan consist primarily of fixed income and equity securities. In addition, Teradyne has an unfunded supplemental executive defined benefit plan in the United States to provide retirement benefits in excess of levels allowed by the Employment Retirement Income Security Act ("ERISA") and the Internal Revenue Code (the "IRC"), as well as unfunded qualified foreign plans.

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In the three months ended April 2, 2023 and April 3, 2022,
In the nine months ended October 2, 2022 and October 3, 2021, Teradyne contributed $0.8 million and $0.8 million, respectively, to the U.S. supplemental executive defined benefit pension plan, and $0.2 million and $0.3 million, respectively, to certain qualified pension plans for
non-U.S.
subsidiaries.
For the three and nine months ended October 2, 2022 and October 3, 2021, For the three months ended April 2, 2023 and April 3, 2022, Teradyne's net periodic pension cost was comprised of the following:

| | | | | | | | | | | | | | | | | |
| | | For the Three Months Ended | |
| | | October 2, 2022 | | | October 3, 2021 | |
| | | April 2, | | | April 3, | |
| | | United | | | Foreign | | | United | | | Foreign | |
| | | | | | | |
| | | 2023 | | | 2022 | |
| | | (in thousands) | |
| Service cost | | $ | 397 | | | $ | 153 | | | $ | 452 | | | $ | 240 | |
| Interest cost | | | 1,222 | | | | 96 | | | | 1,098 | | | | 86 | |
| Expected return on plan assets | | | (732 | ) | | | (16 | ) | | | (936 | ) | | | (17 | ) |
| | | | | | | | | | | | | | | | | |
| Total net periodic pension cost | | $ | 887 | | | $ | 233 | | | $ | 614 | | | $ | 309 | |
| | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | |
| | | For the Nine Months Ended | |
| | | October 2, 2022 | | | October 3, 2021 | |
| | | United States | | | Foreign | | | United States | | | Foreign | |
| | | States | | | | | | States | | | | |
| | | (in thousands) | |
| Service cost | | $ | 272 | | | $ | 109 | | | $ | 397 | | | $ | 206 | |
| Interest cost | | | 1,711 | | | | 262 | | | | 1,222 | | | | 118 | |
| Expected return on plan assets | | | (2,195 | ) | | | (54 | ) | | | (2,809 | ) | | | (50 | ) |
| Net actuarial gain | | | (45 | ) | | | - | | | | (400 | ) || | - | |
(1,285 | ) | | | (9 | ) | | | (732 | ) | | | (20 | ) |
| | | | | | | | | | | | | | | | | |
| Total net periodic pension cost | | $ | 698 | | | $ | 362 | | | $ | 887 | | | $ | 304 | |
| | | | | | | | | | | | | | | | | |
Postretirement Benefit Plan
In addition to receiving pension benefits, Teradyne employees in the United States who meet early retirement eligibility requirements as of their termination dates may participate in Teradyne's Welfare Plan, which includes medical and dental benefits up to age 65. Death benefits provide a fixed sum to retirees' survivors and are available to all retirees. Substantially all of Teradyne's current U.S. employees could become eligible for these benefits and the existing benefit obligation relates primarily to those employees.
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Table of Contents
For the three and nine months ended October 2, 2022 and October 3, 2021,
For the three months ended April 2, 2023 and April 3, 2022, Teradyne's net periodic postretirement benefit cost (credit) was comprised of the following:

| | | | | | | | | | | | | | | | | |
| | | For the Three Months | || For the Nine Months | |
| | | | |
| | | Ended | || Ended | |
| | | October 2, | | | October 3, | || October 2, | | | October 3, | |
| | | April 2, | | | April 3, | |
| | | 2023 | | | 2022 | |
| | | | | | | |


| | | 2022 | || 2021 | | | 2022 | | | 2021 | |

| | | (in thousands) | |
| Service cost | | $ | 9 | | | | $ | 17 | |
| Interest cost | | | 44 | | | | 43 | | | | 132 | | | | 128 | |
| Interest cost | | | 61 | | | | 44 | |
| Amortization of prior service credit | | | (2 | ) | | | (2 | ) || | (7 | ) | | | (7 | ) |
| Net actuarial loss (gain) | | | - | | | | - | | | | 54 | | | | (228 | ) |
| | | | | | | | | | | | | | | | | |
| Total net periodic postretirement benefit cost (credit) | | $ | 58 | | | $ | 57 | | | $ | 227 | | | $ | (59 | ) | | | $ | 68 | | | $ | 59 | |
| | | | | | | | | |
P
. COMMITMENTS AND CONTINGENCIES
Purchase Commitments
As of April 2, 2023, Teradyne had entered into purchase commitments for certain components and materials. The purchase commitments covered by the agreements aggregate to approximately $589.7 million, of which $530.7 million is for less than one year.
Legal Claims
Teradyne is subject to various legal proceedings and claims which have arisen in the ordinary course of business such as, but not limited to, patent, employment, commercial and environmental matters. Teradyne believes that it has meritorious defenses against all pending claims and intends to vigorously contest them. While it is not possible to predict or determine the outcomes of any pending claims or to provide possible ranges of losses that may arise, Teradyne believes the potential losses associated with all of these actions are unlikely to have a material adverse effect on its business, financial position or results of operations.
On March 8, 2021, Industrial Automation LLC, sellers of AutoGuide, submitted a demand for arbitration against Teradyne and AutoGuide in Wilmington, Delaware alleging that Teradyne and AutoGuide breached certain provisions of the Membership Interests Purchase Agreement (the "Purchase Agreement"), dated as of October 18, 2019, among Industrial Automation LLC, Teradyne and AutoGuide. The arbitration demand sought full acceleration of the maximum
earn-out
amount payable under the Purchase Agreement, or $106.9 million, for the alleged breach of the
earn-out
provisions of the Purchase Agreement. On March 25, 2022, the arbitration claim was settled for $26.7 million. As a result, Teradyne has no remaining
earn-out
obligations.
Guarantees and Indemnification Obligations
Teradyne provides indemnification, to the extent permitted by law, to its officers, directors, employees and agents for liabilities arising from certain events or occurrences, while the officer, director, employee, or agent, is or was serving, at Teradyne's request in

22

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such capacity. Teradyne may enter into indemnification agreements with certain of its officers and directors. With respect to acquisitions, Teradyne provides indemnifications to or assumes indemnification obligations for the current and former directors, officers and employees of the acquired companies in accordance with the acquired companies'
by-laws
and charter. As a matter of practice, Teradyne has maintained directors' and officers' liability insurance coverage including coverage for directors and officers of acquired companies.
Teradyne enters into agreements in the ordinary course of business with customers, resellers, distributors, integrators and suppliers. Most of these agreements require Teradyne to defend and/or indemnify the other party against intellectual property infringement claims brought by a third party with respect to Teradyne's products. From time to time, Teradyne also indemnifies customers and business partners for damages, losses and liabilities they may suffer or incur relating to personal injury, personal property damage, product liability, breach of confidentiality obligations and environmental claims relating to the use of Teradyne's products and services or resulting from the acts or omissions of Teradyne, its employees, authorized agents or subcontractors. On occasion, Teradyne has also provided guarantees to customers regarding the delivery and performance of its products in addition to the warranty described below.
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Table of Contents
As a matter of ordinary course of business, Teradyne warrants that its products will substantially perform in accordance with its standard published specifications in effect at the time of delivery. Most warranties have a
one-year
duration commencing from installation. A provision is recorded upon revenue recognition to cost of revenues for estimated warranty expense based upon historical experience. When Teradyne receives revenue for extended warranties beyond the standard duration, the revenue is deferred and recognized on a straight-line basis over the contract period. Related costs are expensed as incurred. As of April 2, 2023 and December 31, 2022, Teradyne had a product warranty accrual of $12.9 million and $14.2 million, respectively, included in other accrued liabilities and revenue deferrals related to extended warranties of $49.3 million and $56.2 million, respectively, included in short and long-term deferred revenue and customer advances.
In addition, in the ordinary course of business, Teradyne provides minimum purchase guarantees to certain vendors to ensure continuity of supply against the market demand. Although some of these guarantees provide penalties for cancellations and/or modifications to the purchase commitments as the market demand decreases, most of the guarantees do not. Therefore, as the market demand decreases, Teradyne
re-evaluates
these guarantees and determines what charges, if any, should be recorded.
With respect to its agreements covering product, business or entity divestitures and acquisitions, Teradyne provides certain representations, warranties and covenants to purchasers and agrees to indemnify and hold such purchasers harmless against breaches of such representations, warranties and covenants. Many of the indemnification claims have a definite expiration date while some remain in force indefinitely. With respect to its acquisitions, Teradyne may, from time to time, assume the liability for certain events or occurrences that took place prior to the date of acquisition.
As a matter of ordinary course of business, Teradyne occasionally guarantees certain indebtedness obligations of its subsidiary companies, limited to the borrowings from financial institutions, purchase commitments to certain vendors and lease commitments to landlords.
Based on historical experience and information known as of April 2, 2023 and December 31, 2022, except for product warranty, Teradyne has not recorded any liabilities for these guarantees and obligations because the amount would be immaterial.
Q
. INCOME TAXES
A reconciliation of the United States federal statutory corporate tax rate to Teradyne's effective tax rate was as follows:

| | | | | | | | | |
| | | For the Three Months | || For the Nine Months | |
| | | | |
| | | Ended | || Ended | |
| | | October 2, | | | October 3, | | | October 2, | | | October 3, | |
| | | April 2, | | | April 3, | |
| | | 2022 | | | 2021 | | | 2022 | || 2021 | |
| | | 2023 | | | 2022 | |
| | | | | | | || | | | | | | | | |
| US statutory federal tax rate | | | 21.0 | % | | | 21.0 | % || | 21.0 | % | | | 21.0 | % |
| Non-deductible | | | 0.9 | | | | 1.1 | |
| officers' compensation | | | | | | | | |
| Foreign taxes | | | (0.7 | ) | | | (4.4 | ) | | | (2.4 | ) | | | (4.4 | ) |
| Discrete benefit related to equity compensation | | | (3.3 | ) | | | (6.6 | ) |
| Tax credits | | | (2.1 | ) | | | (1.9 | ) | | | (1.9 | ) | | | (1.4 | ) |
| International provisions of the U.S. Tax Cuts and Jobs Act of 2017 | | | (3.2 | ) | | | (1.3 | ) |
| Tax credits | | | (2.5 | ) | | | (1.6 | ) |
| Discrete benefit related to equity compensation | | | (0.1 | ) | | | (0.1 | ) | | | (1.9 | ) | | | (1.6 | ) |
| Foreign taxes | | | (0.6 | ) | | | (3.4 | ) |
| Other, net | | | 1.7 | | | | 1.0 | |
| | | | | | | | | |
| Effective tax rate | | | 18.9 | % | | | 13.8 | % | | | 15.8 | % | | | 12.7 | % |
| Effective tax rate | | | 14.0 | % | | | 10.2 | % |
| | | | | | | | | |
On a quarterly basis, Teradyne evaluates the realizability of the deferred tax assets by jurisdiction and assesses the need for a valuation allowance. As of April 2, 2023, Teradyne believes that it will ultimately realize the deferred tax assets recorded on the

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condensed consolidated balance sheet. However, should Teradyne believe that it is
more-likely-than-not
that the deferred tax assets would not be realized, the tax provision would increase in the period in which Teradyne determined that the realizability was not likely. Teradyne considers the probability of future taxable income and historical profitability, among other factors, in assessing the realizability of the deferred tax assets.
As of April 2, 2023 and December 31, 2022, Teradyne had $15.7 million and $15.6 million, respectively, of reserves for uncertain tax positions. The $0.1 million net increase in reserves for uncertain tax positions is related to U.S. federal research and development credits generated in the current year.partially offset by the release of reserves related to
prior year loss carryforwards.
As of October 2, 2022, Teradyne does not anticipate a material change in As of April 2, 2023, Teradyne estimates that it is reasonably possible that the balance of unrecognized tax benefits during the next twelve months
may decrease approximately $0.1 million in the next twelve months because of a lapse of statutes of limitation. The estimated decrease relates to U.S. state research and development credits.
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Teradyne
recognizes interest and penalties related to income tax matters in income tax expense. As of April 2, 2023 and December 31, 2022, $0.4 million and $0.4 million, respectively, of interest and penalties were accrued for uncertain tax positions. For the nine months ended October 2, 2022 and October 3, 2021, expense
three months ended April 2, 2023 and April 3, 2022, expense
of $0.1 million and $0.1 million, respectively, w
ere
was recorded for interest and penalties related to income tax items.
Teradyne qualifies for a tax holiday in Singapore by fulfilling the requirements of an agreement with the Singapore Economic Development Board under which certain headcount and spending requirements must be met. The tax savings due to the tax holiday for the nine months ended October 2, 2022 was $9.7 million, or $0.05 three months ended April 2, 2023 was $0.2 million, or $0.0 per diluted share. The tax savings due to the tax holiday for the nine months ended October 3, 2021 was $23.9 million, or $0.13 three months ended April 3, 2022 was $3.5 million, or $0.02 per diluted share. In November 2020, Teradyne entered into an agreement with the Singapore Economic Development Board which extended our Singapore tax holiday under substantially similar terms to the agreement which expired on December 31, 2020. The new tax holiday is scheduled to expire on December 31, 2025.
On August 16, 2022, the Inflation Reduction Act of 2022 ("IRA") was signed into law. The IRA introduced a 15% alternative minimum tax based on the financial statement income of certain large corporations ("CAMT"), effective January 1, 2023. Teradyne currently does not expect the CAMT to have a material impact on its financial results.
R
. SEGMENT INFORMATION
Teradyne has four reportable segments (Semiconductor Test, System Test, Wireless Test and Robotics). Each of the reportable segments represents an individual operating segment.
The Semiconductor Test segment includes operations related to the design, manufacturing and marketing of semiconductor test products and services. The System Test segment includes operations related to the design, manufacturing and marketing of products and services for defense/aerospace instrumentation test, storage and system level test, and circuit-board test. The Wireless Test segment includes operations related to the design, manufacturing and marketing of collaborative robotic arms, autonomous mobile robots and advanced robotic control software. The Wireless Test wireless test products and services. The Robotics segment includes operations related to the design, manufacturing and marketing of collaborative robotic arms, autonomous mobile robots and advanced robotic control software. Each operating segment has a segment manager who is accountable to and maintains regular contact with Teradyne's chief operating decision maker (Teradyne's chief executive officer) to discuss operating activities, financial results, forecasts and plans for the segment.
Teradyne evaluates performance based on several factors, of which the primary financial measure is business segment income (loss) before income taxes. The accounting policies of the business segments are the same as those described in Note B: "Accounting Policies" in Teradyne's Annual Report on Form
10-K
for the year ended December 31, 2021.

27

2022.
Segment information for the three and nine months ended October 2, 2022 and October 3, 2021 is as follows:months ended April 2, 2023 and April 3, 2022 is as follows:

| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Semiconductor | | | System | | | Robotics | | | Wireless | | | Corporate | | | Consolidated | |
| | | | | | | | | | | | | | | | | | | |
| | | Test | | | Test | | | Automation | | | Test | | | and | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Eliminations | | | | |
| | | (in thousands) | |
| Three Months Ended October 2, 2022 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (in thousands) | |
| Revenues | | $ | 575,704 | | | $ | 116,154 | | | $ | 89,067 | | | $ | 46,148 | | | $ | - | | | $ | 827,073 | |
| Income (loss) before income taxes (1)(2) | | | 182,625 | | | | 40,201 | | | | (3,992 | ) | | | 12,647 | | | | (5,284 | ) | | | 226,197 | |
| Total assets (3) | | | 1,366,478 | | | | 192,684 | | | | 614,558 | | | | 110,484 | | | | 1,035,702 | | | | 3,319,906 | |
| Three Months Ended October 3, 2021 | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended April 2, 2023
| Revenues | | $ | 688,232 | | | $ | 102,605 | | | $ | 91,014 | | | $ | 68,713 | | | $ | (63 | ) | | $ | 950,501 | |
| Income (loss) before income taxes (1)(2) | | | 265,017 | | | | 31,773 | | | | (4,226 | ) | | | 31,726 | | | | (26,535 | ) | | | 297,755 | |
| Total assets (3) | | | 1,251,549 | | | | 147,970 | | | | 696,792 | | | | 119,568 | | | | 1,546,303 | | | | 3,762,182 | |
| Nine Months Ended October 2, 2022 | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues | | $ | 1,599,392 | | | $ | 369,525 | | | $ | 292,772 | | | $ | 161,520 | | | $ | - | | | $ | 2,423,209 | |
| Revenues | | $ | 415,009 | | | $ | 74,631 | | | $ | 89,214 | | | $ | 38,675 | | | $ | - | | | $ | 617,529 | |
| Income (loss) before income taxes (1)(2) | | | 510,112 | | | | 135,566 | | | | (15,496 | ) | | | 56,659 | | | | (41,693 | ) | | | 645,148 | |96,185 | | | | 15,275 | | | | (18,490 | ) | | | 9,352 | | | | (5,238 | ) | | | 97,084 | |
| Total assets (3) | | | 1,366,478 | | | | 192,684 | | | | 614,558 | | | | 110,484 | | | | 1,035,702 | | | | 3,319,906 | |
| Total assets (3) | | | 1,386,851 | | | | 173,669 | | | | 676,092 | | | | 87,875 | | | | 1,058,920 | | | | 3,383,407 | |
| Three Months Ended April 3, 2022 | | | | | | | | | | | | | | | | | | | | | | | | |
| Revenues | | $ | 2,050,271 | | | $ | 340,261 | | | $ | 263,151 | | | $ | 164,504 | | | $ | (352 | ) | | $ | 2,817,835 | |
| Revenues | | $ | 482,341 | | | $ | 118,668 | | | $ | 103,189 | | | $ | 51,518 | | | $ | (346 | ) | | $ | 755,370 | |
| Income (loss) before income taxes (1)(2) | | | 778,687 | | | | 116,788 | | | | (14,586 | ) | | | 63,810 | | | | (38,925 | ) | | | 905,774 | |149,705 | | | | 41,322 | | | | (5,098 | ) | | | 18,619 | | | | (24,189 | ) | | | 180,359 | |
| Total assets (3) | | | 1,251,549 | | | | 147,970 | | | | 696,792 | | | | 119,568 | | | | 1,546,303 | | | | 3,762,182 | |
| Total assets (3) | | | 1,296,070 | | | | 187,283 | | | | 675,560 | | | | 113,821 | | | | 1,336,420 | | | | 3,609,154 | |

| (1) | Included in Corporate and Eliminations are: legal and environmental fees, contingent consideration fair value adjustments, interest income, interest expense, severance charges, net foreign exchange gains (losses), intercompany eliminations, legal and environmental fees, severance charges, acquisition related charges and compensation pension, intercompany eliminations and for the three and nine months ended October 3, 2021, loss on convertible debt conversions. |and an expense for the modification of Teradyne's former chief executive officer's outstanding equity awards. |

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| (2) | Included in income (loss) before taxes are charges and credits related to restructuring and other, and inventory charges. and, for the three and nine months ended October 3, 2021, loss on convertible debt conversions. |
| (3) | Total assets are attributable to each segment. Corporate assets consist of cash and cash equivalents, marketable securities, and certain other assets. |
Included in each segment are charges and credits in the following line items in the statements of operations:

| | | | | | | | | |
| | | For the Three Months | || For the Nine Months | |
| | | | |
| | | Ended | || Ended | |
| | | October 2, | | | October 3, | || October 2, | | | October 3, | |
| | | April 2, | | | April 3, | |
| | | 2023 | | | 2022 | |
| | | | | | | |


| | | 2022 | || 2021 | | | 2022 | | | 2021 | |

| | | (in thousands) | |
| Semiconductor Test: | | | | | | | | |
| Cost of revenues-inventory charge | | $ | 10,829 | | | $ | 3,725 | | | $ | 13,144 | | | $ | 4,959 | |3,768 | | | $ | - | |
| Industrial Automation: | | | | | | | | | | | | | | | | |
| Restructuring and other-employee severance | | | 794 | | | $ | - | |
| System Test: | | | | | | | | |
| $ | 1,616 | | | $ | 965 | |
| Cost of revenues-inventory charge | | $ | 675 | | | | - | | | - | | | | 3,656 | | | | 1,411 | | | | 4,941 | |
| Restructuring and other-acquisition related expenses and compensation | | | - | | | | - | || | - | | | | 825 | |
| Wireless: | | | | | | | | | || | | | | | |
| Robotics: | | | | | | | | |
| Cost of revenues-inventory charge | | $ | 782 | | | $ | 679 | | | $ | 3,942 | | | $ | 1,351 | |- | |
| Wireless: | | | | | | | | || |
| Cost of revenues-inventory charge | | $ | - | | | $ | 877 | |
| Corporate and Eliminations: | | | | | | | | | || | | | | | |
| Corporate and Other: | | | | | | | | |
| Restructuring and other-other | | $ | 700 | | | $ | - | | | $ | 2,700 | | | $ | 1,846 | |
| Selling and administrative - equity modification charge | | $ | 5,889 | | | $ | - | |
| Restructuring and other-legal settlement charge | | | - | | | | - | | | | 14,700 | | | | - | |
| Other (income) expense, net-loss on convertible debt conversions | | | - | | | | 20,153 | | | | - | | | | 25,397 | |
| Restructuring and other-AutoGuide contingent consideration adjustment | | | - | | | | - | || | - | | | | (7,227 | ) |
| Restructuring and other-employee severance | | | 659 | | | | - | |
| Restructuring and other-acquisition related expenses and compensation | | | - | | | | - | || | - | | | | (513 | ) |
| Restructuring and other-legal settlement charge | | | - | | | | 14,700 | |


28
S
. SHAREHOLDERS' EQUITY
Stock Repurchase Program
In January 2023, Teradyne's Board of Directors cancelled its January 2021 repurchase program and approved a new repurchase program for up to $2.0 billion of common stock. Teradyne intends to repurchase up to $500.0 million of its common stock in 2023 based on market conditions.
During the nine months ended October 2, 2022, During the three months ended April 2, 2023, Teradyne repurchased 0.9 million shares of common stock for $750.0 million at an average price of $103.83 per share. During the nine months ended October 3, 2021, a total cost of $93.7 million at an average price of $104.88 per share. As of January 1, 2023, share repurchases in excess of issuances are subject to a 1% excise tax, which is included as part of the cost basis of the shares acquired.
During the three months ended April 3, 2022,
Teradyne repurchased 1.8 million shares of common stock for $201.5 million at an average price of $123.53 per share.The cumulative repurchases under the $2.0 billion common stock repurchase program as of October 2, 2022 were 12.0 million shares of common stock for $1,350.0 million at an average price per share of $112.55.$115.12 per share.
The total cost of shares acquired includes commissions and, starting in 2023, related excise tax, and

The total price includes commissions and, is recorded as a reduction to retained earnings.
Dividend
Holders of Teradyne's common stock are entitled to receive dividends when they are declared by Teradyne's Board of Directors.
In January 2023 and January 2022, Teradyne's Board of Directors declared a quarterly cash dividend of $0.11 per share. Dividend payments for the three and nine months ended October 2, 2022 were $17.1 million and $52.6 million, respectively.months ended April 2, 2023 and April 3, 2022 were $17.2 million and $17.9 million, respectively.
In January 2021, May 2021 and August 2021, Teradyne's Board of Directors declared a quarterly cash dividend of $0.10 per share. Dividend payments for the three and nine months ended October 3, 2021 were $16.4 million and $49.7 million, respectively.

While Teradyne declared a quarterly cash dividend and authorized a share repurchase program, it may reduce or eliminate the cash dividend or share repurchase program in the future. Future cash dividends and stock repurchases are subject to the discretion of Teradyne's Board of Directors which will consider, among other things, Teradyne's earnings, capital requirements and financial condition.
U. SUBSEQUENT EVENT
On October 5, 2022, Teradyne amended its existing credit agreement to increase the amount of its senior secured revolving credit facility to $750 million from $400 million.

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| Item 2: | Management's Discussion and Analysis of Financial Condition and Results of Operations |

Statements in this Quarterly Report on Form 10-Q which are not historical facts, so called "forward-looking statements," are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including those detailed in our filings with the Securities and Exchange Commission. See also Part II, Item 1A of this Quarterly Report on Form 10-Q and Part I, Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022. Readers are cautioned not to place undue reliance on these forward-looking statements which reflect management's analysis only as of the date hereof. We assume no obligation to update these forward-looking statements to reflect actual results or changes in factors or assumptions affecting forward-looking statements, except as may be required by law.

Overview

We are a leading global supplier of automation equipment for test and industrial applications. automated test equipment and robotics solutions. We design, develop, manufacture and sell automatic test systems and robotics products. Our automatic test systems are used to test semiconductors, wireless products, data storage and complex electronics systems in many industries including the consumer electronics, wireless, automotive, industrial, computing, communications, and aerospace and defense industries. Our robotics products include collaborative robotic arms and autonomous mobile robots ("AMRs") and advanced robotic control software used by global manufacturing, logistics and light industrial customers to improve quality, increase manufacturing and material handling efficiency and decrease manufacturing and logistics costs. Our automatic test equipment and robotics products and services include:



| | • | | semiconductor test ("Semiconductor Test") systems; |



| | • | | storage and system level test ("Storage Test") systems, defense/aerospace ("Defense/Aerospace") test instrumentation and systems, and circuit-board test and inspection ("Production Board Test") systems (collectively these products represent "System Test"); |



| | • | | wireless test ("Wireless Test") systems; and |



| | • | | industrial automation ("Industrial Automation") products. |
| | • | | robotics ("Robotics") products. |

The market for our test products is concentrated with a limited number of significant customers accounting for a substantial portion of the purchases of test equipment. A few customers drive significant demand for our test products both through direct sales and sales to the customers' supply partners. We expect that sales of our test products will continue to be concentrated with a limited number of significant customers for the foreseeable future.

In the first quarter of 2023, the
In 2022, we expect lower demand in the mobility and compute segments of our Semiconductor Test business was lower due to end market slowdown in these segments as well as a slower technology transition in one of our largest end-markets. While there is uncertainty if end markets will recover in 2023, the ramp of 3 nanometer starting in 2023 followed by gate-all-around and increasing multichip packaging, remain drivers of growth We expect Semiconductor test demand in the automotive and industrial segments to remain strong in 2022.the depth of the slowdown and the timing of the recovery are uncertain, we expect the ramp of 3 nanometer process technology followed by gate-all-around process technology, increasing multichip packaging, additional device complexity and unit growth will drive additional demand for test over our four year forecast period.

Our Robotics segment consists of Universal Robots A/S ("UR"), a leading supplier of collaborative robotic arms and Mobile Industrial Robots A/S ("MiR"), a leading maker of AMRs for industrial automation. The market for our Robotics segment products is dependent on the adoption of new automation technologies by large manufacturers as well as small and medium enterprises ("SMEs") throughout the world. We expect Robotics sales channel expansion combined with new products to drive growth in the second half of 2023.

In the first quarter of 2023 we met customer demand, in part, through faster than expected recoveries from supply chain constraints. Both our test and robotics businesses may still be influenced by supply constraints during the remainder of 2023, which could impact our revenue and costs. Our second quarter 2023 Both our test and industrial automation businesses may continue to be impacted by supply constraints which will in turn impact our revenue and is expected to increase costs. in 2022. Through the third quarter of 2022, inflation has not had a material impact on Our results. In the third quarter 2022, we were unable to supply approximately $10 million of revenue in our test businesses for which we had customer demand. Our fourth quarter 2022 forecast excludes approximately $25 million of revenue, primarily in our test businesses, due to these continued supply chain constraints. In the first quarter of 2023, inflation had minimal effects on our results.

Our financial statements are denominated in U.S. dollars. While the majority of our revenues are in U.S. dollars, approximately 70 percent of our Robotics revenue is denominated in foreign currencies. In the third quarter of 2022, the strengthening of the U.S. dollar was a factor in lower than forecasted revenues in our Robotics segment. Continued strengthening of the U.S. dollar would negatively affect Robotics revenue growth in 2023. dollar may adversely impact revenue growth in the fourth quarter of 2022.

Our corporate strategy continues to focus on profitably gaining market share in our test businesses through the introduction of differentiated products that target expanding segments and accelerating growth through continued investment in our Robotics businesses. We plan to execute on our strategy while balancing capital allocations between returning capital to our shareholders through stock repurchases and dividends and using capital for opportunistic acquisitions.



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Impact of the COVID-19 Pandemic on our Business

The novel coronavirus (COVID-19) pandemic resulted in government authorities implementing numerous measures in an effort to contain the spread of the virus, such as travel bans and restrictions, limitations on gatherings or social distancing requirements, quarantines, shelter-in-place orders, vaccination and testing mandates, and business limitations and shutdowns. These measures have impacted our day-to-day operations and disrupted our business, workforce and operations, as well as the operations of our customers, contract manufacturers and suppliers. We are continuing to monitor the rapidly evolving situation regarding the COVID-19 pandemic particularly in China, and the availability and impact of vaccinations globally. In the first quarter of 2023 the COVID-19 pandemic had significantly less impact on our business than in prior quarters since the start of the pandemic in 2020. However, we are unable to accurately predict the future impact of COVID-19, which will depend on future developments that are highly uncertain and cannot be predicted with accuracy, including, but not limited to, any new surges or new strains or variants of the virus in areas where we do business.the availability and use of vaccinations, any further government actions to contain the virus or treat its impact, continuing shutdowns in China, and how quickly and to what extent normal economic and operating conditions can resume.

Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and our markets. We are not aware of any specific event or circumstance that would require an update to our estimates or judgments or a revision of the carrying value of our assets or liabilities as of May 5, 2023, the date of issuance of this Quarterly Report on Form 10-Q.

Health and Safety

In response to the COVID-19 pandemic, we have taken proactive, aggressive action to protect the health and safety of our employees, customers, contract manufacturers and suppliers, and we have complied with all government orders around the globe. The spread of COVID-19 has caused us to modify our business practices, which includes implementing social distancing protocols, limiting employee travel and requiring employees to work remotely. We may take further actions as may be required or recommended by government authorities or that we determine are in the best interests of our employees, customers, contract manufacturers and suppliers.

Operations

We believe the COVID-19 pandemic and the numerous measures implemented by authorities in response, has adversely impacted our results of operations, including by increasing costs, but we cannot accurately estimate the amount of the impact to our third quarter of 2022 financial results or to our future financial results. In addition, the pandemic has disrupted our contract manufacturers and suppliers, and has resulted in supply constraints and in short-term cost increases to meet customer demand.While the duration and severity of the pandemic may further impact our workforce and operations, as well as those of our customers, contract manufacturers and suppliers, we expect that our manufacturing facilities will remain operational, at sufficient capacity to support production based on demand and the availability of supply. We are monitoring our operations closely in an effort to avoid any potential productivity losses caused by responses to the COVID-19 pandemic.

Demand

The COVID-19 pandemic significantly increased economic uncertainty in our markets. Demand for our Test products in China and other countries was strong throughout 2021, but the COVID-19 pandemic could cause further economic disruption that could cause demand for our products to decline, which would adversely affect our business.

Liquidity

Although there is continued uncertainty related to the impact of the COVID-19 pandemic on our future results, we believe our business model and our current cash reserves leave us well-positioned to manage our business through this crisis. We have a strong balance sheet, as well as an operating model that we believe is capable of flexing up and down with extreme demand swings while still remaining profitable. Based on our analysis, we believe our existing balances of cash and cash equivalents and our currently anticipated operating cash flows will be sufficient to meet our working capital needs and other capital and liquidity requirements for the next twelve months. However, due to the uncertainty related to the future impact of the COVID-19 pandemic, in order to bolster our liquidity position, on May 1, 2020 we entered into a credit agreement providing for a three-year, senior secured revolving credit facility of $400 million. On December 10, 2021, we amended the credit agreement to extend its maturity to December 10, 2026 as further described in Note H: "Debt." As described in Note U: "Subsequent Event", the credit facility was increased to $750 million on October 5, 2022. As of November 4, 2022, we have not borrowed any funds under the credit facility.

We are continuing to monitor the evolving situation regarding the COVID-19 pandemic, the availability of vaccinations where we do business and guidance from government authorities around the world. In these circumstances, there may be developments outside our control requiring us to adjust our operating plan. As a result, given the uncertain nature of this situation, we are not able to accurately predict the full extent of the impact of COVID-19 on our business, financial condition, results of operations, liquidity, or cash flows in the future.



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Supply Chain Constraints and Inflationary Pressures

The global supply shortage of electrical components, including semiconductor chips, continued to impact our supply chain in the first quarter of 2023. As a result, we experienced, and expect to continue to experience, increases in our lead times and costs for certain components for certain of our products. In addition, while not material, inflationary pressures contributed to increased costs for product components and wage inflation, impacting our cost of products, gross margin and profit for the quarter. Our supply chain team, and our suppliers, continue to manage numerous supply, production, and logistics obstacles. While not material through the first quarter of 2023, in an effort to mitigate these risks, in some cases, we have incurred higher costs due to investment in supply chain resiliency and to secure available inventory or have extended or placed non-cancellable purchase commitments with semiconductor suppliers, which introduces inventory risk if our forecasts and assumptions prove inaccurate. We have also sourced components from additional suppliers and multi-sourced and pre-ordered components and finished goods inventory in some cases in an effort to reduce the impact of the adverse supply chain conditions we have experienced. There is no assurance that these efforts will be successful. In the third quarter 2022, we were unable to supply approximately $10 million of revenue in Our test businesses for which we had customer demand. Our fourth quarter 2022 Our second quarter 2023 forecast excludes approximately $25 million of revenue, primarily in our test businesses, due to these continued supply chain constraints.

Impact of Russia's invasion of Ukraine on our Business

Russia's invasion of Ukraine, in February 2022, did not have a significant impact on our business as we have minimal business in Russia and Ukraine, both directly and indirectly. However, following the invasion, the U.S. and other countries imposed significant sanctions against the Russian government and many Russian companies and individuals. Although we do not have significant operations in Russia, the sanctions and Russia's response to the sanctions, have impacted our business in other countries and could have a negative impact on our future revenue and supply chain, either of which could adversely affect our business and financial results. In addition, the global economic uncertainty following the invasion, sanctions and Russia's response to the sanctions could impact demand for our products.

Impact of October 7, 2022 U.S. Department of Commerce Regulations on our Business

On October 7, 2022, the U.S. Department of Commerce published new regulations restricting the export to China of advanced semiconductors, supercomputer technology, equipment for the manufacturing of advanced semiconductors and components and technology for the manufacturing in China of certain semiconductor manufacturing equipment. The new restrictions are lengthy and complex. We continue to assess the impact of these regulations on our business. We have determined that restrictions on the sale of semiconductor testers in China to test certain advanced semiconductors will impact our sales to certain companies in China. Several multinational companies manufacturing these advanced semiconductors in China have obtained one-year licenses allowing suppliers such as Teradyne to continue to provide testers to the facilities operated by these companies. We expect that other companies manufacturing advanced semiconductors in China will not receive licenses, thereby restricting our ability to provide testers to the facilities operated by these companies that do not receive a license. We also are assessing the filing of license requests to sell to and support certain customers in China for certain end uses that, if granted, may reduce the impact of these restrictions on our business. At this time, we do not know the impact these end user and end use restrictions will have on our business in China or on future revenues. In addition to the specific restrictions impacting our business, the regulations may have an adverse impact on certain actual or potential customers and on the global semiconductor industry. To the extent the regulations impact actual and potential customers or disrupt the global semiconductor industry, our business and revenues will be adversely impacted. We also have determined that the restrictions on the export of certain US origin components and technology for use in the development and production in China of certain semiconductor manufacturing equipment impact our manufacturing and development operations in China. We have received a temporary authorization from the U.S. Department of Commerce allowing us to continue our manufacturing and development operations in China until the U.S. Department of Commerce issues a license to replace this temporary authorization. We will file an application with the U.S. Department of Commerce for a license to replace the temporary authorization by November 17, 2022. We cannot assess the likelihood or timing of receiving this license. In addition to requesting a license, we are implementing procedures for minimizing the impact of these new regulations on our operations in China, but there is no assurance that these procedures will succeed.

See Part II-Item 1A, "Risk Factors," included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 for our risk factors regarding risks associated with both the COVID-19 pandemic and international conflicts.

Critical Accounting Policies and Estimates

We have identified the policies which are critical to understanding our business and our results of operations. There have been no significant changes during the three months ended April 2, 2023 to the items disclosed as our critical accounting policies and estimates in Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, except as noted below.

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Critical accounting estimates are complex and may require significant judgment by management. Changes to the underlying assumptions may have a material impact on our financial condition and results of operations. These estimates may change, as new events occur and additional information is obtained. Actual results could differ significantly from these estimates under different assumptions or conditions.

Convertible Debt

We adopted Accounting Standards Update ("ASU") ASU 2020-06 - "Debt-Debt with Conversion and Other Options and Derivatives and Hedging-Contracts in Entity's Own Equity," on January 1, 2022 using the modified retrospective method of adoption. Under ASU 2020-06, we account for a convertible debt instrument as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. Unsettled shares are recorded in current debt, and there is no recognition of a debt discount, which was previously amortized to interest expense. We use the if-converted method in the diluted EPS calculation for convertible instruments. As a result of adoption, we recorded an increase of $1.4 million to current debt for unsettled shares, an increase of $1.8 million to deferred tax assets, an increase of $6.6 million to long-term debt for unamortized debt discount, and an increase to retained earnings of $94.6 million for the reclassification of the equity component. Mezzanine equity representing unsettled shares value was reduced to zero and additional paid-in capital was reduced by $100.8 million.

Preparation of Financial Statements and Use of Estimates

The preparation of consolidated financial statements requires management to make estimates and judgments that affect the amounts reported in the financial statements. Actual results may differ significantly from these estimates under different assumptions or conditions.



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SELECTED RELATIONSHIPS WITHIN THE CONDENSED CONSOLIDATED

STATEMENTS OF OPERATIONS



| | | | | | | | | || | | | | | | |
| | | For the Three Months | || For the Nine Months | |
| | | Ended | | | Ended | |
| | | October 2, | | | October 3, | || October 2, | | | October 3, | |
| | | April 2, | | | April 3, | |
| | | 2023 | | | 2022 | |
| | | | | | | |


| | | 2022 | || 2021 | | | 2022 | | | 2021 | |

| Percentage of revenues: | | | | | | | | | | | | | | | | |
| Revenues: | | | | | | | | || | | | | | | |
| Products | | | 82 | % | | | 87 | % | | | 83 | % || | 87 | % |
| Products | | | 77 | % | | | 83 | % |
| Services | | | 18 | | | | 13 | | | | 17 | | | | 13 | |
| Services | | | 23 | | | | 17 | |
| | | | | | | | | |
| Total revenues | | | 100 | | | | 100 | || | 100 | | | | 100 | |
| Cost of revenues: | | | | | | | | | | | | | | | | |
| Cost of products | | | 34 | | | | 35 | | | | 33 | | | | 35 | |
| Cost of products | | | 32 | | | | 32 | |
| Cost of services | | | 10 | | | | 8 | |
| | | | | | | | | |
| Total cost of revenues (exclusive of acquired intangible assets amortization shown separately below) | | | 41 | | | | 40 | | | | 40 | | | | 40 | |42 | | | | 40 | |
| | | | | | | | | |
| Gross profit | | | 59 | | | | 60 | | | | 60 | | | | 60 | |
| Gross profit | | | 58 | | | | 60 | |
| Operating expenses: | | | | | | | | |
| Selling and administrative | | | 16 | | | | 14 | | | | 17 | | | | 14 | |24 | | | | 19 | |
| Engineering and development | | | 14 | | | | 11 | | | | 14 | | | | 11 | |17 | | | | 14 | |
| Acquired intangible assets amortization | | | 1 | | | | 1 | || | 1 | | | | 1 | |
| Restructuring and other | | | - | | | | 2 | |
| | | | | | | | | |
| Total operating expenses | | | 43 | | | | 36 | |
| | | | | | | | | |
| Income from operations | | | 15 | | | | 25 | |
| Non-operating (income) expense: | | | | | | | | |
| Interest income | | | - | | | | - | | | | - | | | | - | |
| Interest income | | | (1 | ) | | | - | |
| Interest expense | | | - | | | | - | || | - | | | | 1 | |
| Other (income) expense, net | | | 1 | | | | 2 | | | | 1 | | | | 1 | |- | | | | 1 | |
| | | | | | | | | || | | | | | | |
| Income before income taxes | | | 16 | | | | 24 | |
| Income tax provision | | | 2 | | | | 2 | |
| | | | | | | | | |
| Net income | | | 14 | % | | | 21 | % |
| | | | | | | | | || | | | | | | |

Results of Operations

Third Quarter 2022 Compared to Third Quarter 2021
First Quarter 2023 Compared to First Quarter 2022

Revenues

Revenues by our reportable segments were as follows:



| | | | | | | | | | | | | |
| | | For the Three Months | | | | |
| | | Ended | | | | |
| | | October 2, | | | October 3, | | | Dollar | |
| | | April 2, | | | April 3, | | | Dollar | |
| | | 2022 | | | 2021 | | | Change | |
| | | 2023 | | | 2022 | | | Change | |
| | | | | | | | | | |
| | | (in millions) | |
| Semiconductor Test | | $ | 575.7 | | | $ | 688.2 | | | $ | (112.5 | ) |
| Semiconductor Test | | $ | 415.0 | | | $ | 482.3 | | | $ | (67.3 | ) |
| System Test | | | 116.2 | | | | 102.6 | | | | 13.6 | |
| System Test | | | 74.6 | | | | 118.7 | | | | (44.1 | ) |
| Industrial Automation | | | 89.1 | | | | 91.0 | | | | (1.9 | ) |
| Robotics | | | 89.2 | | | | 103.2 | | | | (14.0 | ) |
| Wireless Test | | | 46.1 | | | | 68.7 | | | | (22.6 | ) |
| Wireless Test | | | 38.7 | | | | 51.5 | | | | (12.8 | ) |

| Corporate and Eliminations | | | - | | | | (0.1 | ) || | 0.1 | |

| | | | | | | | | | | | | |
| | | $ | 827.1 | | | $ | 950.5 | | | $ | (123.4 | ) |
| | | $ | 617.5 | | | $ | 755.4 | | | $ | (137.9 | ) |
| | | | | | | | | | | | | |

The decrease in Semiconductor Test revenues of $67.3 million, or 14.0%, was driven primarily by lower tester sales in high performance compute processor and mobile applications and lower memory test sales of DRAM memory testers. The decrease mobile applications partially offset by higher memory test sales The increase in System Test revenues of $44.1 million, or 37.2%, was primarily due to lower sales in Storage Test of system level and hard disk drive testers and lower sales in Defense/Aerospace. The decrease in Robotics revenues of $14.0 million, or 13.6%, was driven primarily by lower demand for collaborative robotic arms and autonomous mobile robots. hard disk drive testers The decrease in Industrial Automation revenues of $1.9 million, or 2.1%, was driven primarily by changes in foreign exchange rates. The decrease in Wireless Test revenues of $12.8 million, or 24.9%, was primarily due to a decrease in connectivity test products.



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Revenues by country as a percentage of total revenues were as follows (1):



| | | | | | | | | |
| | | For the Three Months | |
| | | Ended | |
| | | April 2, | | | April 3, | |
| | | 2023 | | | 2022 | |
| Taiwan | | | 18 | % | | | 18 | % |
| United States | | | 18 | | | | 15 | |
| Korea | | | 12 | | | | 13 | |
| Europe | | | 12 | | | | 10 | |
| China | | | 10 | | | | 19 | |
| Japan | | | 9 | | | | 6 | |
| Singapore | | | 8 | | | | 4 | |
| Philippines | | | 5 | | | | 2 | |
| Malaysia | | | 3 | | | | 5 | |
| Thailand | | | 3 | | | | 5 | |
| Rest of World | | | 2 | | | | 3 | |
| | | | | | | | | |
| | | | 100 | % | | | 100 | % |
| | | | | | | | | |



| (1) | Revenues attributable to a country are based on location of customer site. |

Gross Profit

Our gross profit was as follows:



| | | | | | | | | | | | | |
| | | For the Three Months | | | | |
| | | Ended | | | | |
| | | October 2, | | | October 3, | | | Dollar/Point | |
| | | April 2, | | | April 3, | | | Dollar/Point | |
| | | 2023 | | | 2022 | | | Change | |
| | | | | | | | | | |
| | | (in millions) | |
| Gross profit | | $ | 356.4 | | | $ | 454.9 | | | $ | (98.5 | ) |
| Percent of total revenues | | | 57.7 | % | | | 60.2 | % | | | (2.5 | ) |

Gross profit as a percent of revenue decreased by 2.5 points, primarily due to lower volume and product mix in Semiconductor Test and higher inventory reserves.

Selling and Administrative

Selling and administrative expenses were as follows:



| | | | | | | | | | | | | |
| | | For the Three Months | | | | |
| | | Ended | | | | |
| | | October 2, | | | October 3, | | | Dollar | |
| | | April 2, | | | April 3, | | | Dollar | |
| | | 2023 | | | 2022 | | | Change | |
| | | | | | | | | | |
| | | (in millions) | |
| Selling and administrative | | $ | 151.0 | | | $ | 140.2 | | | $ | 10.8 | |
| Percent of total revenues | | | 24.4 | % | | | 18.6 | % | | | | |

The increase of $10.8 million in selling and administrative expenses was primarily driven by Semiconductor Test and Industrial Automation increase in headcount and greater spendingdue to the charge of $5.9 million recorded in the three months ended April 2, 2023, related to the modification of Teradyne's chief executive officer's outstanding equity awards in connection with his retirement and higher spending in Robotics, Semiconductor Test and System Test, partially offset by lower variable compensation.



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Engineering and Development

Engineering and development expenses were as follows:



| | | | | | | | | | | | | |
| | | For the Three Months | | | | |
| | | Ended | | | | |
| | | October 2, | | | October 3, | | | Dollar | |
| | | April 2, | | | April 3, | | | Dollar | |
| | | 2023 | | | 2022 | | | Change | |
| | | | | | | | | | |
| | | (in millions) | |
| Engineering and development | | $ | 111.7 | | | $ | 107.2 | | | $ | 4.5 | |105.8 | | | $ | 108.1 | | | $ | (2.3 | ) |
| Percent of total revenues | | | 17.1 | % | | | 14.3 | % | | | | |

The decrease of $2.3 million in engineering and development expenses was primarily driven by Semiconductor Test and Industrial Automation increase in headcount and greater spending, partially offset by lower variable compensation.due to lower variable compensation, partially offset by higher spending in Robotics.

Restructuring and Other

During the three months ended October 2, 2022, we recorded $1.2 million of severance charges primarily in Industrial Automation, and a charge of $0.7 million for an increase in legal liabilities.
During the three months ended April 2, 2023, we recorded $2.0 million of severance charges related to headcount reduction of 67 people primarily in Semiconductor Test, Robotics and Corporate.


During the three months ended October 3, 2021, we recorded $0.6 million of severance charges primarily in Industrial Automation.

Interest and Other



| | | | | | | | | | | | | |
| | | For the Three Months | | | | |
| | | Ended | | | | |
| | | October 2, | | | October 3, | | | Dollar | |
| | | 2022 | | | 2021 | | | Change | |
| | | | | | | | | | |
| | | (in millions) | |
| Interest income | | $ | (1.3 | ) | | $ | (0.6 | ) | | $ | (0.7 | ) |
| Interest expense | | | 0.8 | | | | 3.8 | | | | (3.0 | ) |
| Other (income) expense, net | | | 5.8 | | | | 21.5 | | | | (15.7 | ) |

Interest expense decreased by $3.0 million primarily due to the January 1, 2022 adoption of ASU 2020-06 which eliminated the amortization of the debt discount which was $2.3 million in the three months ended October 3, 2021. Other (income) expense, net decreased by $15.7 million primarily due to lower losses on convertible debt conversions partially offset by changes in unrealized losses on equity securities, from a $0.4 million loss in 2021 to a $2.2 million loss in 2022.

Income (Loss) Before Income Taxes



| | | | | | | | | | | | | |
| | | For the Three Months | | | | |
| | | Ended | | | | |
| | | October 2, | | | October 3, | | | Dollar | |
| | | 2022 | | | 2021 | | | Change | |
| | | | | | | | | | |
| | | (in millions) | |
| Semiconductor Test, | | $ | 182.6 | | | $ | 265.0 | | | $ | (82.4 | ) |
| System Test | | | 40.2 | | | | 31.8 | | | | 8.4 | |
| Wireless Test | | | 12.6 | | | | 31.7 | | | | (19.1 | ) |
| Industrial Automation | | | (4.0 | ) | | | (4.2 | ) | | | 0.2 | |
| Corporate and Eliminations (1) | | | (5.3 | ) | | | (26.5 | ) | | | 21.2 | |
| | | | | | | | | | | | | |
| | | $ | 226.2 | | | $ | 297.8 | | | $ | (71.6 | ) |
| | | | | | | | | | | | | |



| (1) | Included in Corporate.and Eliminations are legal and environmental fees, interest income, interest expense, net foreign exchange gains (losses), pension, intercompany eliminations, acquisition related charges and compensation and for the three months ended October 3, 2021, loss on convertible debt conversions. |

The decrease in income before income taxes in Semiconductor Test was driven primarily by lower revenues in mobile applications, partially offset by higher memory test sales. The increase in income before income taxes in System Test was primarily due to higher sales in Storage Test of hard disk drive testers. The decrease in income before taxes in Wireless Test was driven primarily by a decrease in sales of connectivity and cellular test product sales.



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Table of Contents

Income Taxes

The effective tax rate for the three months ended October 2, 2022 and October 3, 2021 was 18.9% and 13.8%, respectively. The increase in the effective tax rate from the three months ended October 3, 2021 to the three months ended October 2, 2022 was primarily attributable to a shift in the geographic distribution of income, which increases the income subject to taxation in higher tax rate jurisdictions relative to lower tax rate jurisdictions, an increase in non-deductible officers' compensation and a reduction in the benefit related to the international provisions of the U.S. Tax Cuts and Jobs Act of 2017. These increases were partially offset by an increase in benefit from tax credits.
During the three months ended April 3,


Nine Months 2022 Compared to Nine Months 2021

Revenues

Revenues by our reportable segments were as follows:



| | | | | | | | | | | | | |
| | | For the Nine Months | | | | |
| | | Ended | | | | |
| | | October 2, | | | October 3, | | | Dollar | |
| | | 2022 | | | 2021 | | | Change | |
| | | | | | | | | | |
| | | (in millions) | |
| Semiconductor Test | | $ | 1,599.4 | | | $ | 2,050.3 | | | $ | (450.9 | ) |
| System Test | | | 369.5 | | | | 340.3 | | | | 29.2 | |
| Industrial Automation | | | 292.8 | | | | 263.2 | | | | 29.6 | |
| Wireless Test | | | 161.5 | | | | 164.5 | | | | (3.0 | ) |
| Corporate and Eliminations | | | - | | | | (0.4 | ) | | | 0.4 | |
| | | | | | | | | | | | | |
| | | $ | 2,423.2 | | | $ | 2,817.8 | | | $ | (394.6 | ) |
| | | | | | | | | | | | | |

The decrease in Semiconductor Test revenues of $450.9 million, or 22.0%, was driven primarily by lower tester sales in high performance compute processor and mobile applications. The increase in System Test revenues of $29.2 million, or 8.6%, was primarily due to higher sales in Storage Test of hard disk drive testers, and higher sales in Defense/Aerospace and in Production Board Test. The rise in Industrial Automation revenues of $29.6 million, or 11.2%, was driven primarily by higher demand for UR's collaborative robotic arms and MiR's autonomous mobile robots, partially offset by changes in foreign exchange rates. The decrease in Wireless Test revenues of $3.0 million, or 1.8%, was primarily due to a decrease in cellular test product sales, partially offset by an increase in connectivity test product sales.

Revenues by country as a percentage of total revenues were as follows (1):



| | | | | | | | | |
| | | For the Nine Months | |
| | | Ended | |
| | | October 2, | | | October 3, | |
| | | 2022 | | | 2021 | |
| Taiwan | | | 22 | % | | | 36 | % |
| China | | | 16 | | | | 18 | |
| Korea | | | 16 | | | | 8 | |
| United States | | | 14 | | | | 10 | |
| Europe | | | 8 | | | | 7 | |
| Japan | | | 5 | | | | 4 | |
| Thailand | | | 5 | | | | 4 | |
| Malaysia | | | 5 | | | | 4 | |
| Philippines | | | 3 | | | | 5 | |
| Singapore | | | 3 | | | | 3 | |
| Rest of World | | | 3 | | | | 1 | |
| | | | | | | | | |
| | | | 100 | % | | | 100 | % |
| | | | | | | | | |



| (1) | Revenues attributable to a country are based on location of customer site. |



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Gross Profit

Our gross profit was as follows:



| | | | | | | | | | | | | |
| | | For the Nine Months | | | | |
| | | Ended | | | | |
| | | October 2, | | | October 3, | | | Dollar/Point | |
| | | 2022 | | | 2021 | | | Change | |
| | | | | | | | | | |
| | | (in millions) | |
| Gross profit | | $ | 1,446.7 | | | $ | 1,679.6 | | | $ | (232.9 | ) |
| Percent of total revenues | | | 59.7 | % | | | 59.6 | % | | | 0.1 | |

Gross profit as a percent of revenue increased by 0.1 points, primarily due to product mix in Semiconductor Test partially offset by lower volume.

Selling and Administrative

Selling and administrative expenses were as follows:



| | | | | | | | | | | | | |
| | | For the Nine Months | | | | |
| | | Ended | | | | |
| | | October 2, | | | October 3, | | | Dollar | |
| | | 2022 | | | 2021 | | | Change | |
| | | | | | | | | | |
| | | (in millions) | |
| Selling and administrative | | $ | 415.4 | | | $ | 404.8 | | | $ | 10.6 | |
| Percent of total revenues | | | 17.1 | % | | | 14.4 | % | | | | |

The increase of $10.6 million in selling and administrative expenses was primarily driven by Semiconductor Test and Industrial Automation increase in headcount and greater spending, partially offset by lower variable compensation.

Engineering and Development

Engineering and development expenses were as follows:



| | | | | | | | | | | | | |
| | | For the Nine Months | | | | |
| | | Ended | | | | |
| | | October 2, | | | October 3, | | | Dollar | |
| | | 2022 | | | 2021 | | | Change | |
| | | | | | | | | | |
| | | (in millions) | |
| Engineering and development | | $ | 331.8 | | | $ | 317.6 | | | $ | 14.2 | |
| Percent of total revenues | | | 13.7 | % | | | 11.3 | % | | | | |

The increase of $14.2 million in engineering and development expenses was primarily driven by Semiconductor Test and Industrial Automation increase in headcount and greater spending, partially offset by lower variable compensation.

Restructuring and Other

During the nine months ended October 2, 2022, we recorded a charge of $14.7 million related to the arbitration claim filed against Teradyne and AutoGuide related to an earn-out dispute, which was settled on March 25, 2022 for $26.7 million.a charge of $2.7 million for an increase in environmental and legal liabilities, and $2.1 million of severance charges primarily in Industrial Automation. Previously, in the three months ended December 31, 2021, we recorded a charge of $12.0 million related to this earn-out dispute.

During the nine months ended October 3, 2021, we recorded a gain of $7.2 million for the decrease in the fair value of the AutoGuide contingent consideration liability, partially offset by a charge of $1.7 million for an increase in environmental and legal liabilities, and $1.2 million of severance charges primarily in Industrial Automation.



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Interest and Other



| | | | | | | | | | | | | |
| | | For the Three Months | | | | |
| | | Ended | | | | |
| | | October 2, | | | October 3, | | | Dollar | |
| | | April 2, | | | April 3, | | | Dollar | |
| | | 2023 | | | 2022 | | | Change | |
| | | | | | | | | | |
| | | (in millions) | |
| Interest income | | $ | (5.3 | ) | | $ | (0.7 | ) | | $ | (4.6 | ) |
| Interest expense | | | 1.0 | | | | 1.0 | | | | - | |
| Other (income) expense, net | | | 0.1 | | | | 5.2 | | | | (5.1 | ) |

Interest expense decreased by $12.7 million primarily due to the January 1, 2022 adoption of ASU 2020-06 which eliminated the amortization of the debt discount which was $9.1 million in the nine months ended October 3, 2021. Interest income increased by $4.6 million primarily due to higher interest rates in 2023. Other (income) expense, net decreased by $5.1 million primarily due to changes in unrealized gains/losses on equity securities, from a $2.2 million gain in 2021 to an $11.0 million loss in 2022, partially offset by lower losses on convertible debt conversions.loss in 2022 to a $2.0 million gain in 2023.

Income (Loss) Before Income Taxes



| | | | | | | | | | | | | |
| | | For the Three Months | | | | |
| | | Ended | | | | |
| | | October 2, | | | October 3, | | | Dollar | |
| | | April 2, | | | April 3, | | | Dollar | |
| | | 2023 | | | 2022 | | | Change | |
| | | | | | | | | | |
| | | (in millions) | |
| Semiconductor Test | | $ | 510.1 | | | $ | 778.7 | | | $ | (268.6 | ) |
| Semiconductor Test | | $ | 96.2 | | | $ | 149.7 | | | $ | (53.5 | ) |
| System Test | | | 135.6 | | | | 116.8 | | | | 18.8 | |
| System Test | | | 15.3 | | | | 41.3 | | | | (26.0 | ) |
| Wireless Test | | | 9.4 | | | | 18.6 | | | | (9.2 | ) |
| Industrial Automation | | | (15.5 | ) | | | (14.6 | ) | | | (0.9 | ) |
| Robotics | | | (18.5 | ) | | | (5.1 | ) | | | (13.4 | ) |
| Corporate and Eliminations (1) | | | (41.7 | ) | | | (38.9 | ) | | | (2.8 | ) |
| Corporate and Other (1) | | | (5.2 | ) | | | (24.2 | ) | | | 19.0 | |
| | | | | | | | | | | | | |
| | | $ | 645.1 | | | $ | 905.8 | | | $ | (260.7 | ) |
| | | $ | 97.1 | | | $ | 180.4 | | | $ | (83.3 | ) |
| | | | | | | | | | | | | |



| (1) | Included in Corporate and Eliminations are legal and environmental fees, contingent consideration adjustments, interest income, interest expense, net foreign exchange gains (losses), pension, intercompany eliminations, legal and environmental fees, severance charges, acquisition related charges and compensation, and an expense for the modification of Teradyne's former chief executive officer's outstanding equity awards. |for the nine months ended October 3, 2021, loss on convertible debt conversions. |

The decrease in income before income taxes in Semiconductor Test was driven primarily by lower revenues in high performance compute processor and mobile applications and lower memory test sales of DRAM memory testers. The decrease in income before income taxes
The increase in income before income taxes


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in System Test was primarily due to lower sales in Storage Test of system level and hard disk drive testers. and elevated sales in Defense/Aerospace and in Production Board Test. The decrease in income before taxes in Wireless Test was driven primarily by lower sales in cellular test products partially offset by elevated sales in connectivity test products. The a decrease in sales of connectivity test products. The decrease in income before taxes in Robotics was driven primarily by lower demand for collaborative robotic arms and autonomous mobile robots. The decrease in loss before income taxes in Corporate and Eliminations was primarily due to legal settlement charges in 2022 related to litigation for the earn-out dispute in connection with the AutoGuide acquisition.

Income Taxes

The effective tax rate for the nine months ended October 2, 2022 and October 3, 2021 was 15.8% and 12.7%, The effective tax rate for the three months ended April 2, 2023 and April 3, 2022 was 14.0% and 10.2%, respectively. The increase in the effective tax rate from the nine months ended October 3, 2021 to the nine months ended October 2, 2022 three months ended April 3, 2022 to the three months ended April 2, 2023 was primarily attributable to a projected shift in the geographic distribution of income, which increases the income subject to taxation in higher tax rate jurisdictions relative to lower tax rate jurisdictions an increase in non-deductible officers' compensation. and a reduction in the benefit related to and a decrease in benefit from equity compensation. These increases in expense were partially offset by increases in benefit from the international provisions of the U.S. Tax Cuts and Jobs Act of 2017 These increases in expense were partially offset by increases in benefit from tax credits.and discrete benefit related to equity compensation.and tax credits.

Contractual Obligations

There have been no changes outside of the ordinary course of business to our contractual obligations as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021.



39

2022.

Liquidity and Capital Resources

Our cash, cash equivalents and marketable securities balances decreased by $613.2 million in the nine months ended October 2, 2022 to $887.1 million.$146.1 million in the three months ended April 2, 2023 to $859.0 million.

Operating activities during the nine months ended October 2, 2022 provided cash of $394.5 Operating activities during the three months ended April 2, 2023 provided cash of $19.3 million. Changes in operating assets and liabilities used cash of $106.5 million due to a $1.9 million increase in operating assets and a $104.7 million decrease in operating liabilities.

The increase in operating assets was primarily due to a $23.7 million increase in inventories, a $15.4 million increase in prepayments and other assets due to prepayments to our contract manufacturers, a $68.8 million increase in inventories, partially offset by a $37.2 million decrease in accounts receivable.

The decrease in operating liabilities was due to a $93.1 million decrease in accrued employee compensation, a $31.4 million decrease in income taxes, a $7.5 million decrease in other accrued liabilities, a $5.9 $32.7 million decrease in deferred revenue and customer advance payments, and $1.2 million of retirement plan contributions, partially offset by a $12.5 million increase in income taxes, a $9.6 million increase in other accrued liabilities, and a $0.3 million increase in accounts payable.

Investing activities during the nine months ended October 2, 2022 provided cash of $45.4 million due to $259.2 million and $182.1 million in proceeds from sales and maturities of marketable securities, respectively, partially offset by $267.2 Investing activities during the three months ended April 2, 2023 used cash of $94.9 million due to $69.3 million used for purchases of marketable securities, and $41.4 million used for purchases of property, plant and equipment, partially offset by $7.9 million and $7.4 million in proceeds from sales and maturities of marketable securities, respectively, and $0.5 million in proceeds from the cancellation of Teradyne owned life insurance policies related to the cash surrender value.

Financing activities during the nine months ended October 2, 2022 used cash of $858.8 million due to $750.0 Financing activities during the three months ended April 2, 2023 used cash of $129.5 million due to $93.3 million used for the repurchase of 0.9 million shares of common stock at an average price of $103.83 per share, $52.6 million used for dividend payments, $52.0 million used for payments of convertible debt principal, and $33.0 $104.88 per share, $19.9 million used for payment related to net settlements of employee stock compensation awards, $17.2 million used for dividend payments, and $15.2 million used for payments of convertible debt principal, partially offset by $16.0 million from the issuance of common stock under employee stock purchase and stock option plans.

Operating activities during the nine months ended October 3, 2021 provided cash of $767.1 Operating activities during the three months ended April 3, 2022 provided cash of $7.5 million. Changes in operating assets and liabilities used cash of $210.2 million. This was due to an $83.6 million increase in operating assets and a $126.6 million decrease in operating liabilities.

The increase in operating assets was due to a $74.3 million increase in prepayments and other assets due to prepayments to our contract manufacturers, a $9.5 million increase in inventories, partially offset by a $0.2 million decrease in accounts receivable.

The decrease in operating liabilities was due to increases of $63.5 million in other accrued liabilities, $23.8 million in accounts payable, and $8.7 million a $114.0 million decrease in accrued employee compensation, a $13.8 million decrease in other accrued liabilities, a $7.6 million decrease in income taxes, and $1.3 million of retirement plan contributions, partially offset by a $6.7 million increase in deferred revenue and customer advance payments, partially offset by a $17.4 million decrease in income taxes, a $22.3 million decrease in accrued employee compensation, and $4.1 million of retirement plan contributions.and a $3.4 million increase in accounts payable.

Investing activities during the nine months ended October 3, 2021 provided cash of $156.1 million due to $571.3 million and $209.4 million in proceeds from maturities and sales of marketable securities, partially offset by $509.5 Investing activities during the three months ended April 3, 2022 used cash of $82.7 million due to $166.0 million used for purchases of marketable securities and $44.0 million used for purchases of property, plant and equipment, partially offset by $96.7 million and $30.6 million in proceeds from maturities and sales of marketable securities, respectively. and $12.0 million used for an investment in MachineMetrics, Inc.("MachineMetrics").



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Financing activities during the nine months ended October 3, 2021 used cash of $757.3 million due to $406.2 Financing activities during the three months ended April 3, 2022 used cash of $254.6 million due to $201.5 million used for the repurchase of 1.8 million shares of common stock at an average price of $115.12 per share, $31.0 million used for payment related to net settlements of employee stock compensation awards, $20.7 million used for payments of convertible debt principal, $17.9 million used for dividend payments, and $32.0 million used for payments related to net settlements of employee stock compensation awards, partially offset by $16.5 million from the issuance of common stock under employee stock purchase and stock option plans.

In January 2022, May 2022 and August 2022, our Board of Directors declared a In January 2022, Teradyne's Board of Directors declared a 10% increase in the quarterly cash dividend to $0.11 per share. Dividend payments for the three and nine months ended October 2, 2022 were $17.1 million. and $52.6 million, respectively.months ended April 3, 2022 were $17.9 million. In January 2021, Teradyne's

In January 2021, May 2021 and August 2021, our
Board of Directors declared a quarterly cash dividend of $0.10 per share. Dividend payments for the three and nine months ended October 3, 2021were $16.4 million.and $49.7 million, respectively.months ended April 4, 2021 were $16.7 million.

In January 2023, our Board of Directors cancelled the 2021 repurchase program and approved a new repurchase program for up to $2.0 billion of common stock. Unless terminated by resolution of our Board of Directors, the repurchase program will expire when We have repurchased all shares authorized for repurchase under the share repurchase program. We intend to repurchase up to $500.0 million of common stock in 2023 subject to market conditions.



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During the nine months ended October 2, 2022, During the three months ended April 2, 2023, we repurchased 0.9 million shares of common stock for $93.3 million at an average price of $104.88 per share. During the three months ended April 3, 2022, we repurchased 1.8 million shares of common stock for $201.5 million at an average price of $123.53 per share. The cumulative repurchases under the $2.0 billion common stock repurchase program as of October 2, 2022 were 12.0 million shares of common stock for $1,350.0 million at an average price per share.of $112.55.$115.12 per share.

While we declared a quarterly cash dividend and authorized a share repurchase program, we may reduce or eliminate the cash dividend or share repurchase program in the future. Future cash dividends and stock repurchases are subject to the discretion of our Board of Directors, which will consider, among other things, our earnings, capital requirements and financial condition.

On May 1, 2020, we entered into a credit agreement providing a three-year, senior secured revolving credit facility of $400 million. On December 10, 2021, the credit agreement was amended to extend the senior secured revolving credit facility to December 10, 2026. On October 5, 2022, the credit agreement was amended to increase the amount of the credit facility to $750.0 million from $400.0 million. As of May 5, 2023, we have not borrowed any funds under the credit facility.

We believe our cash, cash equivalents and marketable securities balance will be sufficient to pay our quarterly dividend and meet our working capital and expenditure needs for at least the next twelve months. Inflation has not had a significant long-term impact on earnings. At this time, the COVID-19 pandemic has not had an impact on our liquidity, but there is no assurance that continued impacts resulting from the pandemic will not have an adverse effect in the future.

Equity Compensation Plans

In addition to our 1996 Employee Stock Purchase Program as discussed in Note Q: "Stock-Based Compensation" in our 2022 Annual Report on Form 10-K, we have a 1996 Employee Stock Purchase Plan and a 2006 Equity and Cash Compensation Incentive Plan (the "2006 Equity Plan").

The purpose of the 1996 Employee Stock Purchase Plan is to encourage stock ownership by all eligible employees of Teradyne. The purpose of the 2006 Equity Plan is to provide equity ownership and compensation opportunities in Teradyne to our employees, officers and directors. Both plans were approved by our shareholders.

Recently Issued Accounting Pronouncements

For the nine months ended October 2, 2022, For the three months ended April 2, 2023, there were no recently issued accounting pronouncements that had, or are expected to have, a material impact to our consolidated financial statements.



| Item 3: | Quantitative and Qualitative Disclosures about Market Risks |

For "Quantitative and Qualitative Disclosures about Market Risk" affecting Teradyne, see Part 2 Item 7A, "Quantitative and Qualitative Disclosures about Market Risks," in our Annual Report on Form 10-K filed with the SEC on February 22, 2023. There were no material changes in our exposure to market risk from those set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

In addition to market risks described in our Annual Report on Form 10-K, we have an equity price risk related to the fair value of our convertible senior unsecured notes issued in December 2016. In December 2016, Teradyne issued $460 million aggregate principal amount of 1.25% convertible senior unsecured notes (the "Notes") due December 15, 2023. As of April 2, 2023, $35.1 million of principal remained outstanding and the Notes had a fair value of $119.6 million. The table below provides a sensitivity analysis of hypothetical 10% changes of Teradyne's stock price as of the end of the first quarter of 2022 and the estimated impact on the fair value of the Notes. The selected scenarios are not predictions of future events, but rather are intended to illustrate the effect such event may have on the fair value of the Notes. The fair value of the Notes is subject to equity price risk due to the convertible feature. The fair value of the Notes will generally increase as Teradyne's common stock price increases and will generally decrease as the common stock price declines in value. The change in stock price affects the fair value of the Notes, but does not impact Teradyne's financial position, cash flows or results of operations due to the fixed nature of the debt obligation. Additionally,



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we carry the Notes at face value less unamortized discount on our balance sheet, and we present the fair value for required disclosure purposes only. In connection with the offering of the Notes we also sold warrants to the option counterparties. These transactions have been accounted for as an adjustment to our shareholders' equity. The convertible note hedge transactions are expected to reduce the potential equity dilution upon conversion of the Notes. The warrants along with any shares issuable upon conversion of the Notes will have a dilutive effect on our earnings per share to the extent that the average market price of our common stock for a given reporting period exceeds the applicable strike price or conversion price of the warrants or Notes, respectively.



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| | | | | | | | | | | | | |
| Hypothetical Change in Teradyne Stock Price | | Fair Value | | | Estimated change | | | Hypothetical | |
| | | | | | in fair value | | | percentage | |
| | | | | | in fair value | | | increase | |
| | | | | | | | | (decrease) in | |
| | | | | | | | | fair value | |
| | | | | | | | | | |
| 10% Increase | | $ | 170,003 | | | $ | 15,517 | | | | 10.0 | % |131,584 | | | $ | 11,998 | | | | 10.0 | % |
| No Change | | | 119,586 | | | | - | | | | - | |
| 10% Decrease | | | 138,990 | | | | (15,496 | ) | | | (10.0 | ) |
| 10% Decrease | | | 107,588 | | | | (11.998 | ) | | | (10.0 | ) |



| Item 4: | Controls and Procedures |

As of the end of the period covered by this report, our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15(b) or Rule 15d-15(f) promulgated under the Exchange Act. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective in ensuring that material information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, including ensuring that such material information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the three months ended April 2, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION



| Item 1: | Legal Proceedings |

We are subject to various legal proceedings and claims which have arisen in the ordinary course of business such as, but not limited to, patent, employment, commercial and environmental matters. Teradyne believes that it has meritorious defenses against all pending claims and intends to vigorously contest them. While it is not possible to predict or determine the outcomes of any pending claims or to provide possible ranges of losses that may arise, Teradyne believes the potential losses associated with all of these actions are unlikely to have a material adverse effect on its business, financial position or results of operations.

On March 8, 2021, Industrial Automation LLC submitted a demand for arbitration against Teradyne and AutoGuide in Wilmington, Delaware alleging that Teradyne and AutoGuide breached certain provisions of the Membership Interests Purchase Agreement (the "Purchase Agreement"), dated as of October 18, 2019, among Industrial Automation LLC, Teradyne and AutoGuide. The arbitration demand sought full acceleration of the maximum earn-out amount payable under the Purchase Agreement, or $106.9 million, for the alleged breach of the earn-out provisions of the Purchase Agreement. On March 25, 2022, the arbitration claim was settled for $26.7 million. As a result, Teradyne has no remaining earn-out obligations.



| Item 1A: | Risk Factors |

In addition to other information set forth in this Form 10-Q, including the risk discussed below, you should carefully consider the factors discussed in Part I, "Item 1A: Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022, which could materially affect our business, financial condition or future results. The risk factors described in our Annual Report on Form 10-K remain applicable to our business and many of these risks could be further increased due to the COVID-19 pandemic.

The risks described in our Annual Report on Form 10-K are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

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the global supply shortage of electrical components and inflationary cost increases has impacted our ability to meet customer demand and could adversely affect our business and financial results.

Adverse developments affecting the financial services industry, including events or risks involving liquidity, defaults or non-performance by financial institutions,


During 2022, there has been a global supply shortage of electrical components, including semiconductor chips. As a result, we have experienced, and expect to continue to experience, increases in our lead times and costs for certain components for certain products and delays in the delivery of some orders placed by our customers. While not material, year to date 2022, in an effort to mitigate these risks in some cases, we have incurred higher costs due to investment in supply chain resiliency and to secure available inventory or have extended or placed non-cancellable purchase commitments with semiconductor suppliers, which introduces inventory risk if our forecasts and assumptions prove inaccurate. We have also sourced components from additional suppliers and multi-sourced and pre-ordered components and finished goods inventory in some cases in an effort to reduce the impact of the adverse supply chain conditions we have experienced. However, if we are unable to secure manufacturing capacities from our current or new suppliers and contract manufacturers, on acceptable terms or at all, or successfully manage our purchase commitments and inventory for components, our ability to deliver our products to our customers in the desired quantities, at competitive prices or in a timely manner may be negatively impacted for the remainder of 2022 and into 2023. In the third quarter 2022, we were unable to supply approximately $10 million of revenue in our test businesses for which we had customer demand. Our fourth quarter 2022 forecast excludes approximately $15 million of revenue, primarily in our test businesses, due to these continued supply chain constraints. Also, our suppliers and contract manufacturers have increased their prices, which increased our cost of products. We have been and may continue to be, affected by wage inflation. We have, and may continue to attempt to, offset the effect of these inflationary pressures by increasing the prices of our products. However, we may not be fully able to pass additional costs on to our customers, which could have a negative impact on our results of operations and financial condition.

Trade regulations and restrictions impact our ability to manufacture certain products and to sell products to and support certain customers, which may materially adversely affect our sales and results of operations.

We are subject to U.S. laws and regulations that limit and restrict the export of some of our products and services and may restrict our transactions with certain customers, business partners and other persons. In certain circumstances, export control and economic sanctions regulations prohibit the export of certain products, services and technologies, and in other circumstances are required to obtain an export license before exporting the controlled item. We must also comply with export restrictions and laws imposed by other countries affecting trade and investments. We maintain an export compliance program but there are risks that the compliance controls could be circumvented, exposing us to legal liabilities. Compliance with these laws has not significantly limited our sales but could significantly limit them in the future. Changes in, and responses to, U.S. trade policy could reduce the competitiveness of our products and cause our sales to drop, which could have a material adverse effect on our business, financial condition or results of operations.

The U.S. government from time to time has issued export restrictions that prohibit U.S. companies from exporting U.S. manufactured products, foreign manufactured products with more than 25% controlled U.S. content, as well as U.S. origin technology. For example, the U.S. Department of Commerce has restricted the access of U.S. origin technologies to certain Chinese companies by adding those companies to the Entity List under U.S. Export Administration Regulations ("EAR").

On May 16, 2019, Huawei and 68 of its affiliates, including HiSilicon, were added to the U.S. Department of Commerce Entity List under the EAR. This action by the U.S. Department of Commerce imposed new export licensing requirements on exports, re-exports, and in-country transfers of all U.S. regulated products, software and technology to the designated Huawei entities. On August 17, 2020, the U.S. Department of Commerce published final regulations expanding the scope of the U.S. EAR to include additional products that would become subject to export restrictions relating to Huawei entities including HiSilicon. These new regulations restrict the sale to Huawei and the designated Huawei entities of certain non-U.S. made items, such as semiconductor devices, manufactured for or sold to Huawei entities including HiSilicon under specific, detailed conditions set forth in the new regulations. These new regulations have impacted our sales to Huawei, HiSilicon and their suppliers. We are taking appropriate actions, including filing license applications and obtaining licenses from the U.S. Department of Commerce. However, we do not expect these actions will mitigate the impact of the regulations on our sales to Huawei, HiSilicon and other suppliers. As a result, the regulations will continue to have an adverse impact on our business and financial results. It is uncertain the extent these new regulations and any additional regulations that may be implemented by the U.S. Department of Commerce or other government agency may have on our business with other customers or potential customers. Also, our controls related to Entity List compliance could be circumvented, exposing us to legal liabilities.

On March 10, 2023, Silicon Valley Bank (SVB), who is a lender in our revolving credit facility and where we maintain certain accounts and cash deposits, was placed into receivership with the Federal Deposit Insurance Corporation (FDIC), which resulted in all funds held at SVB being temporarily inaccessible by SVB's customers. As of March 13, 2023, access to our cash and cash equivalents at SVB was fully restored. Although our cash balances at SVB are insignificant and we do not expect further developments at SVB to have a material impact on our cash and cash equivalents, we do hold cash balances in several large financial institutions significantly in excess of FDIC and global insurance limits. If other banks and financial institutions with whom we have banking relationships enter receivership or become insolvent in the future, we may be unable to access, and we may lose, some or all of our existing cash, cash equivalents and investments to the extent those funds are not insured or otherwise protected by the FDIC.


On April 28, 2020, the U.S. Department of Commerce published new export control regulations for certain U.S. products and technology sold to military end users or for military end-use in China, Russia and Venezuela. The definition of military end user is broad. The regulations went into effect on June 29, 2020. In December 2020, the U.S. Department of Commerce issued a list of companies in China and other countries that it considered to be military end users. Compliance with the new export controls has impacted our ability to sell products to certain customers. in China. In addition, while we maintain an export compliance program, our compliance controls could be circumvented, exposing us to legal liabilities. We will continue to assess the impact of the new export controls on our business and operations and take appropriate actions, including filing for licenses with the U.S. Department of Commerce, to minimize any disruption. However, we cannot be certain that the actions we take will mitigate all the risks associated with the export controls that may impact our business.



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On October 7, 2022, the U.S. Department of Commerce published new regulations restricting the export to China of advanced semiconductors, supercomputer technology, equipment for the manufacturing of advanced semiconductors and components and technology for the manufacturing in China of certain semiconductor manufacturing equipment. The new restrictions are lengthy and complex. we continue to assess the impact of these regulations on our business. We have determined that restrictions on the sale of semiconductor testers in China to test certain advanced semiconductors will impact our sales to certain companies in China. Several multinational companies manufacturing these advanced semiconductors in China have obtained one-year licenses allowing suppliers such as Teradyne to continue to provide testers to the facilities operated by these companies. We expect that other companies manufacturing advanced semiconductors in China will not receive licenses, thereby restricting our ability to provide testers to the facilities operated by these companies that do not receive a license. We also are assessing the filing of license requests to sell to and support certain customers in China for certain end uses that, if granted, may reduce the impact of these restrictions on our business. at this time, we do not know the impact these end user and end use restrictions will have on our business in China or on future revenues. In addition to the specific restrictions impacting our business, the regulations may have an adverse impact on certain actual or potential customers and on the global semiconductor industry. To the extent the regulations impact actual and potential customers or disrupt the global semiconductor industry, our business and revenues will be adversely impacted. we also have determined that the restrictions on the export of certain US origin components and technology for use in the development and production in China of certain semiconductor manufacturing equipment impact our manufacturing and development operations in China. we have received a temporary authorization from the U.S. Department of Commerce allowing us to continue our manufacturing and development operations in China until the U.S. Department of Commerce issues a license to replace this temporary authorization. we will file an application with the U.S. Department of Commerce for a license to replace the temporary authorization by November 17, 2022. we cannot assess the likelihood or timing of receiving this license. In addition to requesting a license, we are implementing procedures for minimizing the impact of these new regulations on our operations in China, but there is no assurance that these procedures will succeed.

In response to the regulations issued by the U.S. Department of Commerce, the Chinese government has passed new laws, including blocking legislation, which may impact our business activities in China. The Company is assessing the potential impact of these new Chinese laws and monitoring relevant laws and regulations issued by the Chinese government. The impact of these new Chinese laws on our business activities in China remains uncertain at this time.



Foreign currency exchange rates and fluctuations in those rates may affect the Company's ability to realize projected growth rates in its sales and earnings.
33

Our financial statements are denominated in U.S. dollars. While the majority of our revenues are in U.S. dollars, approximately 70 percent of our Industrial Automation revenue is denominated in foreign currencies. Correspondingly, our results of operations and our ability to realize projected growth rates in sales and earnings could be adversely affected if the U.S. dollar strengthens significantly against foreign currencies.
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| Item 2: | Unregistered Sales of Equity Securities and Use of Proceeds |

In January 2023, Teradyne's Board of Directors cancelled our 2021 repurchase program and approved a new repurchase program for up to $2.0 billion of common stock. During the three months ended April 2, 2023, we repurchased 0.9 million shares of common stock for $750.0 million at an average price of $103.83 per share. During the nine months ended October 3, 2021, a total cost of $93.7 million at an average price of $104.88 per share. We record share repurchases at cost, which includes broker commissions and related excise taxes. During the three months ended April 3, 2022, we repurchased 1.8 million shares of common stock for $201.5 million at an average price of $123.53 per share. The cumulative repurchases under the $2.0 billion common stock repurchase program as of October 2, 2022 were 12.0 million shares of common stock for $1,350.0 million at an average price per share.of $112.55.$115.12 per share.



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The following table includes information with respect to repurchases we made of our common stock during the three months ended April 2, 2023 (in thousands except per share price):



| | | | | | | | | | | | | | | | | |
| Period | | (a) Total | | | (b) Average | | | (c) Total Number of | | | (d) Maximum Number | |
| | | Number of | | | Price Paid per | | | Shares (or Units) | | | (or Approximate Dollar | |
| | | Shares | | | Share (or Unit) | | | Purchased as Part of | | | Value) of Shares (or | |
| | | (or Units) | | | | | | Publicly Announced | | | Units) that may Yet Be | |
| | | Purchased | | | | | | Plans or Programs | | | Purchased Under the | |
| | | | | | | | | | | | Plans or Programs (2) | |
| July 4, 2022 - July 31, 2022 | | | 1,296 | | | $ | 93.00 | | | | 1,296 | | | $ | 746,702,775 | |
| | | | | | | | | | | | | |
| January 1, 2023 - January 29, 2023 | | | 147 | | | $ | 103.09 | | | | - | | | $ | 2,000,000 | |
| August 1, 2022 - August 28, 2022 | | | 972 | | | $ | 99.56 | January 30, 2023 - February 26, 2023 | | | 414 | | | $ | 105.18 | | | | 369 | | | $ | 1,960,941 | |
| August 29, 2022 - October 2, 2022 | | | 1 | | | $ | 82.86 | February 27, 2023 - April 2, 2023 | | | 526 | | | $ | 104.25 | | | | 524 | | | $ | 1,906,292 | |
| | | | | | | | | | | | | | | | | |
| | | | 1,087 | (1) | | $ | 104.44 | (1) | | | 893 | | | | | |
| | | | | | | | | | | | | | | | | |



| (1) | Includes approximately one hundred ninety-four thousand shares at an average price of $102.42 withheld from employees for the payment of taxes. |
| (2) | As of January 1, 2023, share repurchases net of share issuances are subject to a 1% excise tax under the Inflation Reduction Act. Excise tax incurred is included as part of the cost basis of shares repurchased in the Condensed Consolidated Statements of Convertible Common Shares and Stockholders' Equity. |

We satisfy U.S. federal and state minimum withholding tax obligations due upon the vesting and the conversion of restricted stock units into shares of our common stock, by automatically withholding from the shares being issued, a number of shares with an aggregate fair market value on the date of such vesting and conversion that would satisfy the minimum withholding amount due.



| Item 4: | Mine Safety Disclosures |

Not Applicable



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| Item 6: | Exhibits |



| | | |
| Exhibit | | Description |
| | | |
| Number | | |
| | |
| 3.1 | | Amended and Restated By-Laws of Teradyne, Inc. effective March 24, 2023 (filed as Exhibit 3.1 to Teradyne's Current Report on Form 8-K filed on September 6, 2022. |
| | |
| 10.1 | | Second Amendment to Credit Agreement dated December 10, 2021 among Teradyne, Inc., Truist Bank, as the administrative agent, issuing bank and swingline lender, and other lenders party thereto (filed herewith) |
March 28, 2023) |
| | |
| 31.1 | | Certification of Principal Executive Officer, pursuant to Rule 13a-14(a) of Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith) |
| | |
| 31.2 | | Certification of Principal Financial Officer, pursuant to Rule 13a-14(a) of Securities and Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith) |
| | |
| 32.1 | | Certification of Principal Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith) |
| | |
| 32.2 | | Certification of Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith) |
| | |
| 101.INS | | Inline XBRL Instance Document |
| | |
| 101.SCH | | Inline XBRL Taxonomy Extension Schema Document |
| | |
| 101.CAL | | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| | |
| 101.DEF | | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| | |
| 101.LAB | | Inline XBRL Taxonomy Extension Label Linkbase Document |
| | |
| 101.PRE | | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| | |
| 104 | | Cover Page Interactive Data File (formatted as Inline XBRL, and contained in Exhibit 101) |



35

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



| |
| TERADYNE, INC. |
| Registrant |
| |
| /s/ SANJAY MEHTA |
| Sanjay Mehta |
| |
| Vice President, |
| |
| Chief Financial Officer and Treasurer |
| |
| (Duly Authorized Officer |
| |
| and Principal Financial Officer) |
| |
| November 4, 2022 |



47

Exhibit 10.1

EXECUTION VERSION

SECOND AMENDMENT TO CREDIT AGREEMENT

This SECOND AMENDMENT TO CREDIT AGREEMENT, dated as of October 5, 2022 (this "Second Amendment"), is entered into among TERADYNE, INC., a Massachusetts corporation (the "Borrower"), the Consenting Lenders (as defined below) and Replacement Lenders (as defined below) party hereto, and the Administrative Agent (as defined below), and modifies that certain Credit Agreement, dated as of May 1, 2020 (as amended by that certain First Amendment to Credit Agreement, dated as of December 10, 2021, and as further amended, restated, amended and restated, supplemented or otherwise modified in writing from time to time and in effect immediately prior to the effectiveness of this Second Amendment, the "Existing Credit Agreement" and the Existing Credit Agreement, as amended by this Second Amendment, the "Amended Credit Agreement"), among the Borrower, the lenders from time to time party thereto (each a "Lender", and collectively, the "Lenders"), and TRUIST BANK, as administrative agent for the Lenders (in such capacity, including any successor thereto, the "Administrative Agent"), as Issuing Bank and as Swingline Lender. Capitalized terms used herein and not defined herein shall have the meaning assigned to such terms in the Amended Credit Agreement.
May 5, 2023 |


PRELIMINARY STATEMENTS

A. The Borrower has requested that the Administrative Agent and the Lenders under the Existing Credit Agreement agree to amend certain of the terms and provisions of the Existing Credit Agreement, as specifically set forth in this Second Amendment.

B. Each Lender under the Existing Credit Agreement that executes and delivers a signature page to this Second Amendment hereby agrees to the terms and conditions of this Second Amendment, including, without limitation, the terms and conditions of the Amended Credit Agreement attached hereto as Annex A (each such existing Lender that has executed and delivered a signature page to this Second Amendment, a "Consenting Lender"), and such Consenting Lenders constitute not less than the Required Lenders under the Existing Credit Agreement.

C. Each Lender under the Existing Credit Agreement that does not execute and deliver a signature page to this Second Amendment (each, a "Non-Consenting Lender") shall assign all of its Revolving Commitments and Revolving Loans, and all of its interests, rights and obligations under the Existing Credit Agreement with respect thereto, to a Replacement Lender (as hereinafter defined) pursuant to, and in accordance with, Section 2.25 of the Existing Credit Agreement and Section 2 of this Second Amendment.

D. Each Person that executes and delivers a signature page to this Second Amendment as a "Replacement Lender" (which Person may also be a Consenting Lender) (each such Person, a "Replacement Lender") hereby agrees to the terms and conditions of this Second Amendment, including, without limitation, the terms and conditions of the Amended Credit Agreement attached hereto as Annex A, and shall assume the interests, rights and obligations assigned to it pursuant to, and in accordance with, Section 2.25 of the Existing Credit Agreement and Section 2 of this Second Amendment.

Accordingly, in consideration of the premises and other good and valuable consideration, the parties hereto hereby agree as follows:

1. Amendments to the Existing Credit Agreement.

(a) Amended Credit Agreement. The Existing Credit Agreement (excluding the schedules and exhibits thereto, which shall remain in full force and effect, except as specifically amended and restated pursuant to Section 1(b) and (c) of this Second Amendment) is hereby amended as set forth in Annex A


attached hereto such that (i) all of the newly inserted underlined text (indicated textually in the same manner as the following example: double-underlined text) and any formatting changes attached hereto shall be deemed to be inserted, (ii) all stricken text (indicated textually in the same manner as the following example: stricken text) shall be deemed to be deleted therefrom and (iii) all stricken text moved from its existing location (indicated textually in the same manner as the following example: moved from text) shall be deemed moved from such existing location and inserted into its new location (indicated textually in the same manner as the following example: moved to text).

(b) Amendments to Schedules to the Existing Credit Agreement. Each of the following schedules to the Existing Credit Agreement is hereby deleted in its entirety and replaced with the corresponding schedules set forth in Annex B-1 attached to this Second Amendment:



| | (i) | Schedule I (Applicable Margin and Applicable Percentage); and |



| | (ii) | Schedule II (Commitment Amounts). |

(c) Amendments to Exhibits to the Existing Credit Agreement. Each of the following exhibits to the Existing Credit Agreement is hereby deleted in its entirety and replaced with the corresponding exhibit set forth in Annex B-2 attached to this Second Amendment:



| | (i) | Exhibit D (Form of Notice of Revolving Borrowing); and |



| | (ii) | Exhibit F (Form of Notice of Conversion/Continuation). |

2. Replacement of Non-Consenting Lenders.

(a) On and as of the Second Amendment Effective Date, the Revolving Facility shall be allocated among the Lenders under the Amended Credit Agreement, including Replacement Lenders (collectively, the "Continuing Lenders"), such that immediately after giving effect to this Second Amendment on the Second Amendment Effective Date, each Continuing Lender shall hold Revolving Commitments and Revolving Loans in the amounts set forth opposite such Person's name on Schedule II to the Amended Credit Agreement, all as previously disclosed to the Non-Consenting Lenders and the Continuing Lenders by the Administrative Agent.

(b) In addition, the Borrower hereby requires, pursuant to (and in accordance with) Section 2.25 of the Existing Credit Agreement, that each Non-Consenting Lender assign its Revolving Commitments and Revolving Loans, and all of its interests, rights and obligations with respect thereto, under the Existing Credit Agreement and the related Loan Documents as of the Second Amendment Effective Date (each, a "Non-Consenting Lender Assigned Interest"), to Replacement Lenders as set forth herein. Each of the Administrative Agent, the Issuing Bank and the Swingline Lender, by its signature to this Second Amendment, hereby consents to the assignment of each of the Non-Consenting Lender Assigned Interests pursuant to this Section 2. This Second Amendment constitutes any notice to the Administrative Agent and/or each Non-Consenting Lender that is required pursuant to Section 2.25 of the Existing Credit Agreement.

(c) As a result of the foregoing, a Continuing Lender's Pro Rata Share of the Aggregate Revolving Commitments under the Amended Credit Agreement may be (i) greater than such Continuing Lender's Pro Rata Share of the Aggregate Revolving Commitments under the Existing Credit Agreement (each such Continuing Lender, an "Increasing Lender") or (ii) less than such Continuing Lender's Pro Rata Share of the Aggregate Revolving Commitments under the Existing Credit Agreement (each such Continuing Lender, a "Decreasing Lender").



2


(d) To effect the foregoing, on and as of the Second Amendment Effective Date, (i) each Non-Consenting Lender shall be deemed to have assigned its Non-Consenting Lender Assigned Interest and (ii) each Consenting Lender shall be deemed to have assigned its Revolving Commitments and Revolving Loans, and all or any portion of its interests, rights and obligations with respect thereto, under the Existing Credit Agreement and the related Loan Documents as of the Second Amendment Effective Date (each, a "Consenting Lender Assigned Interest" and, together with the Non-Consenting Lender Assigned Interests, collectively, the "Assigned Interests"), in each case for a purchase price at par (the "Purchase Price"), to Continuing Lenders in such amounts as required by the Administrative Agent in order that, after giving effect to all such assignments pursuant to this Section 2, (i) each Continuing Lender shall hold Revolving Commitments and Revolving Loans in the amounts set forth opposite such Person's name on Schedule II to the Amended Credit Agreement, and (ii) each Non-Consenting Lender shall hold no Revolving Commitments and no Revolving Loans.

(e) On the Second Amendment Effective Date:

(i) To the extent Revolving Loans are outstanding on the Second Amendment Effective Date, each Increasing Lender shall remit to the Administrative Agent, in the manner contemplated by Section 2.6 of the Amended Credit Agreement, such amount as may be necessary for such Increasing Lender to hold Revolving Loans in the amounts set forth opposite such Person's name on Schedule II to the Amended Credit Agreement, which amounts shall, in turn, be used by the Administrative Agent to remit to each Decreasing Lender such amount as may be necessary for such Decreasing Lender to hold Revolving Loans in the amounts set forth opposite such Person's name on Schedule II to the Amended Credit Agreement.

(ii) The Administrative Agent shall remit (A) to each Consenting Lender and to each Non-Consenting Lender (with amounts received from the Borrower pursuant to Section 3(h) of this Second Amendment) such Person's pro rata share of all unpaid interest, commitment fees, Letter of Credit participation fees and other amounts (including any breakage costs) in respect of the Revolving Loans and Revolving Commitments of the Lenders under the Existing Credit Agreement, in each case that have accrued to but excluding the Second Amendment Effective Date and (B) to each Non-Consenting Lender an amount equal to the Purchase Price (net of amounts paid pursuant to clause (A) above) with respect to its Non-Consenting Lender Assigned Interest, whereupon such Non-Consenting Lender shall cease to be a party to the Amended Credit Agreement.

(f) The Administrative Agent hereby waives each processing and recordation fee that would otherwise be due pursuant to Section 10.4 of the Existing Credit Agreement in connection with the assignments contemplated by this Section 2. Further, it is hereby agreed that this Second Amendment shall be deemed to be an Assignment and Acceptance with respect to the assignments contemplated by this Section 2.

(g) Each Replacement Lender, if any, that initially becomes a party to the Amended Credit Agreement on the Second Amendment Effective Date hereby (i) represents and warrants that (A) it has full power and authority, and has taken all action necessary, to execute and deliver this Second Amendment and to consummate the transactions contemplated hereby and to become a Lender under the Amended Credit Agreement, (B) on and as of the Second Amendment Effective Date, it shall be bound by the provisions of the Amended Credit Agreement as a Lender thereunder and, to the extent of its Revolving Commitment (or Revolving Loans) and all other related rights and obligations under the Amended Credit Agreement, shall have the obligations of a Lender thereunder, (C) it has received a copy of the Existing Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 5.1 thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter



3


into this Second Amendment and become a Lender under the Amended Credit Agreement, and (D) it has, independently and without reliance upon the Administrative Agent or any existing Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Second Amendment and become a Lender under the Amended Credit Agreement; and (ii) agrees that (A) it will, independently and without reliance on the Administrative Agent or any Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents and (B) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

(h) Notwithstanding anything to the contrary herein, in the event that each Lender under the Existing Credit Agreement consents to this Second Amendment, this Second Amendment shall be adopted in accordance with Section 10.2 of the Existing Credit Agreement, and Section 2.25 of the Existing Credit Agreement shall not be applicable to this Second Amendment or the transactions contemplated hereby.

3. Conditions Precedent to Second Amendment. This Second Amendment shall become effective as of the date first written above (the "Second Amendment Effective Date") upon the satisfaction of each of the following conditions precedent set forth in this Section 3.

(a) Second Amendment. The Administrative Agent shall have received this Second Amendment, duly executed by (i) the Borrower, (ii)(A) each Consenting Lender (which Persons under this clause (ii)(A) shall constitute at least the Required Lenders under the Existing Credit Agreement) and (B) each Replacement Lender (if any) (which Persons described in this clause (ii) shall constitute all of the Lenders under the Amended Credit Agreement), (iii) the Issuing Bank and (iv) the Swingline Lender, and acknowledged by each Guarantor.

(b) Collateral Matters. The Administrative Agent shall have received (i) copies of favorable UCC, tax, and judgment lien search reports in all necessary or appropriate jurisdictions and under all legal and trade names of the Loan Parties, as requested by the Administrative Agent, indicating that there are no prior Liens on any of the Collateral other than Liens permitted under the Amended Credit Agreement and (ii) evidence of the completion of all other actions, recordings and filings of or with respect to the Guarantee and Collateral Agreement or any other Security Document (or evidence that such actions, recordings or filings will be completed substantially concurrently with the effectiveness of this Second Amendment) that the Administrative Agent may deem necessary with respect to the perfection of the Liens granted under the Guarantee and Collateral Agreement or any other Security Document.

(c) Opinions of Counsel. The Administrative Agent shall have received a favorable written opinion of Ropes & Gray LLP, counsel to the Loan Parties, addressed to the Administrative Agent, the Issuing Bank and each of the Lenders, and covering such matters relating to the Loan Parties, the Loan Documents and the transactions contemplated by this Second Amendment as the Administrative Agent shall reasonably request.

(d) Secretary's Certificates; Corporate Authority. The Administrative Agent shall have received a certificate of the Secretary, Assistant Secretary, or other Responsible Officer of each Loan Party, attaching and certifying as to, and as applicable: (i) copies of the articles or certificate of incorporation, certificate of organization or limited partnership, or other registered organizational documents of each Loan Party, certified as of a recent date by the Secretary of State of the jurisdiction of organization of such Loan Party, (ii) copies of its bylaws, partnership agreement, limited liability company agreement, or similar organizational document, (iii) the resolutions of its board of directors or other equivalent governing body, or comparable organizational authorizations, authorizing the execution, delivery and performance of the Loan Documents to which it is a party, (iv) the name, title and true signature of each officer of such Loan Party executing the Loan Documents to which it is a party, and (v) certificates of good standing from the Secretary of State of the jurisdiction of organization of such Loan Party.



4


(e) Officer's Closing Certificate. The Administrative Agent shall have received a certificate, dated the Second Amendment Effective Date and signed by a Responsible Officer of the Borrower, certifying as to the accuracy of the representations and warranties set forth in Section 4(c) and (d) of this Second Amendment.

(f) Solvency Certificate. The Administrative Agent shall have received a certificate, dated the Second Amendment Effective Date and signed by a Responsible Officer of the Borrower, confirming that the Borrower and its Subsidiaries on a consolidated basis are Solvent after giving effect to the consummation of the transactions contemplated by this Second Amendment to occur on the Second Amendment Effective Date.

(g) USA Patriot Act; KYC. The Administrative Agent shall have received at least three (3) days prior to the Second Amendment Effective Date, all documentation and other information required by bank regulatory authorities or reasonably requested by the Administrative Agent or any Lender under or in respect of applicable "know your customer" and anti-money laundering Requirements of Law, including the Patriot Act and, if Borrower qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, a Beneficial Ownership Certification in relation to Borrower.

(h) Accrued Interest and Fees. The Borrower shall have paid to the Administrative Agent, for the account of the Lenders under the Existing Credit Agreement, all unpaid interest, commitment fees, Letter of Credit participation fees and other amounts in respect of the Revolving Loans and Revolving Commitments of the Lenders under the Existing Credit Agreement, in each case that have accrued to but excluding the Second Amendment Effective Date.

(i) Fees and Expenses. The Administrative Agent (and, as applicable, the Arrangers) shall have received payment of (i) all fees payable on or prior to the Second Amendment Effective Date and (ii) to the extent invoiced at least one Business Day prior to the Second Amendment Effective Date, reimbursement or payment of all reasonable and documented out-of-pocket expenses of the Administrative Agent (including reasonable fees, charges and disbursements of counsel to the Administrative Agent), in each case, required to be reimbursed or paid by the Borrower under any Loan Document or under any agreement with the Administrative Agent or any Arranger.

Without limiting the generality of the provisions of Section 9.2 of the Amended Credit Agreement, for purposes of determining compliance with the conditions specified in this Section 3, each Lender (including each Replacement Lender) that has signed this Second Amendment shall be deemed to have consented to, approved of, accepted or been satisfied with each document or other matter required hereunder to be consented to, approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Second Amendment Effective Date specifying its objection thereto.

4. Representations and Warranties. The Borrower hereby represents and warrants to the Administrative Agent, each Lender and the Issuing Bank as of the Second Amendment Effective Date as follows:

(a) Authorization; Enforceability. The Borrower and each other Loan Party has the power and authority, and the legal right, to make, deliver and perform this Second Amendment and, in the case of the Borrower, to obtain extensions of credit under the Amended Credit Agreement. The Borrower and each other Loan Party has taken all necessary organizational action to authorize the execution, delivery and



5,


performance of this Second Amendment and, in the case of the Borrower, to authorize the extensions of credit on the terms and conditions of the Amended Credit Agreement. No consent or authorization of, filing with, notice to or other act by or in respect of, any Governmental Authority or any other Person is required in connection with the extensions of credit under the Amended Credit Agreement or with the execution, delivery, performance, validity or enforceability of this Second Amendment or the Amended Credit Agreement except (i) consents, authorizations, filings and notices have been obtained or made and are in full force and effect, and (ii) filings required under the Exchange Act in respect of the transactions contemplated by this Second Amendment. This Second Amendment has been duly executed and delivered on behalf of the Borrower each other Loan Party party hereto. Each of this Second Amendment and the Amended Credit Agreement constitutes a legal, valid and binding obligation of the Borrower each other Loan Party party hereto, enforceable against the Borrower each such other Loan Party in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

(b) No Legal Bar. The execution, delivery and performance of this First Agreement and the Amended Credit Agreement will not violate any Requirement of Law, any Loan Party's organizational documents, or any material Contractual Obligation of any Loan Party, except for violations that would not reasonably be expected to have a Material Adverse Effect, and will not result in, or require, the creation or imposition of any Lien on any of their respective properties or revenues pursuant to any Requirement of Law or any such Contractual Obligation (other than the Liens created by the Loan Documents).

(c) Representations and Warranties. The representations and warranties of the Loan Parties contained in each Loan Document are true and correct in all material respects on and as of the Second Amendment Effective Date, after giving effect to the Second Amendment and the consummation of the transactions contemplated by the Second Amendment taking place on or about the Second Amendment Effective Date, as though made on and as of such date (except to the extent any such representation or warranty expressly relates to an earlier date, in which case such representation and warranty shall have been true and correct in all material respects as of such earlier date); provided that any representation or warranty that is qualified as to "materiality", "Material Adverse Effect" or similar language shall be true and correct in all respects on such respective dates.

(d) No Default. No Default or Event of Default exists on and as of the Second Amendment Effective Date or, after giving effect to the Second Amendment, would result from this Second Amendment and the transactions contemplated hereby.

5. Survival. All representations and warranties made by the Borrower (on behalf of itself or the other Loan Parties) in this Second Amendment or any other Loan Document and in the certificates, reports, notices or other instruments delivered in connection with or pursuant to this Second Amendment shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Second Amendment, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, the Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under the Amended Credit Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated.

6. Conversion. All Eurodollar Loans (as defined in the Existing Credit Agreement) requested, made and in effect prior to the date hereof (if any) shall be converted on the date hereof to SOFR Loans with an Interest Period of one (1) month. Notwithstanding anything to the contrary set forth in this



6


Second Amendment or in the Existing Credit Agreement or the Amended Credit Agreement, there shall be no funding losses, expenses or liabilities due and payable by the Borrower to any Lender as a result of the conversion of the Eurodollar Loans (as defined in the Existing Credit Agreement) to SOFR Loans, pursuant to this Section 6 prior to the end of the existing Interest Period(s) applicable to such Eurodollar Loans.

7. Second Amendment as a Loan Document. This Second Amendment constitutes a "Loan Document" under the Amended Credit Agreement.

8. Effect on Loan Documents. After giving effect to this Second Amendment on the Second Amendment Effective Date, the Amended Credit Agreement and the other Loan Documents shall be and remain in full force and effect in accordance with their terms and are hereby ratified and confirmed by the Borrower in all respects. The execution, delivery, and performance of this Second Amendment shall not operate as a waiver of any right, power, or remedy of the Administrative Agent or the Lenders under the Existing Credit Agreement or the other Loan Documents. The Borrower hereby acknowledges and agrees that, after giving effect to this Second Amendment, all of its obligations and liabilities under the Existing Credit Agreement and the other Loan Documents to which it is a party, as such obligations and liabilities have been amended by this Second Amendment, are reaffirmed and remain in full force and effect. All references to the Existing Credit Agreement in any Loan Document or other document or instrument delivered in connection therewith shall be deemed to refer to the Amended Credit Agreement. Nothing contained herein shall be construed as a novation of the Obligations outstanding under and as defined in the Existing Credit Agreement, which shall remain in full force and effect, except as modified hereby.

9. Limited Effect. This Second Amendment relates only to the specific matters expressly covered herein, shall not be considered to be an amendment or waiver of any rights or remedies that the Administrative Agent or any Lender may have under the Existing Credit Agreement or any other Loan Document (except as expressly set forth herein) or under applicable law, and shall not be considered to create a course of dealing or to otherwise obligate in any respect the Administrative Agent or any Lender to execute similar or other amendments or waivers or grant any amendments or waivers under the same or similar or other circumstances in the future.

10. Governing Law. This Second Amendment and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Second Amendment and the transactions contemplated hereby shall be construed in accordance with and be governed by the law (without giving effect to the conflict of law principles thereof) of the State of New York.

11. Counterparts; Electronic Signatures. This Second Amendment may be executed by one or more of the parties to this Second Amendment on any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Second Amendment by facsimile or other electronic imaging means (e.g., via electronic mail in .pdf form) shall be effective as delivery of a manually executed counterpart of this Second Amendment. The words "execution," "execute," "signed," "signature," and words of like import in or related to this Second Amendment or any other document to be signed in connection with this Second Amendment and the transactions contemplated hereby shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; provided that, notwithstanding anything contained herein to the contrary, the Administrative Agent is under no obligation to agree to accept electronic signatures in any form or in any format unless expressly agreed to by the Administrative Agent pursuant to procedures approved by it.

[Signature Pages Follow]



7


IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to the Credit Agreement to be executed and delivered as of the date first above written.



| | | |
| TERADYNE, INC. |
| | |
| By: | | |
| | | |
| Name: | | Sanjay Mehta |
| Title: | | Vice President, Chief Financial Officer and Treasurer |







[Signature Page to Second Amendment to Credit Agreement]

| | | |
| TRUIST BANK, as Administrative Agent, as the Issuing Bank, as the Swingline Lender and as a Lender |
| | |
| By: | | |
| | | |
| Name: | | Alfonso Brigham |
| Title: | | Director |







[Signature Page to Second Amendment to Credit Agreement]

| | | |
| Bank of America, N.A., as a Lender |
| | |
| By: | | |
| | | Name: Spencer Hunter |
| | | Title: Vice President |







[Signature Page to Second Amendment to Credit Agreement]

| | | |
| CITIZENS BANK, N.A., |
| as a Lender |
| | |
| By | | |
| | | |
| Name: Chancellor Peterson |
| Title: Senior Vice President |







[Signature Page to Credit Agreement]

| | | |
| FIFTH THIRD BANK, NATIONAL |
| ASSOCIATION, as a Lender |
| | |
| By: | | |
| | | Name: Valerie Schanzer |
| | | Title: Managing Director |







[Signature Page to Second Amendment to Credit Agreement]

| | | |
| PNC BANK, NATIONAL ASSOCIATION, as a Lender |
| | |
| By: | | |
| Name: | | Daniel Russell |
| Title: Managing Director |







[Signature Page to Second Amendment to Credit Agreement]

| | | | | |
| HSBC BANK USA. NATIONAL ASSOCIATION, as a Lender |
| By: | | |
| | | Name: | | Andrew Everett |
| | | Title: | | Senior Vice President |







[Signature Page to Second Amendment to Credit Agreement]

| | | |
| Silicon Valley Bank , |
| as a Lender |
| | |
| By | | |
| | | |
| Name: | | Allison Parent |
| Title: | | Vice President |







[Signature Page to Second Amendment to Credit Agreement]

| | | | | |
| BARCLAYS BANK PLC, as a Lender |
| | |
| By: | | |
| | | Name: | | Sean Duggan |
| | | Title: | | Director |







[Signature Page to Second Amendment to Credit Agreement]


Acknowledgment, Ratification and Reaffirmation of Guarantors

October 5, 2022

Each Guarantor acknowledges that its consent to this Second Amendment is not required, but each of the undersigned nevertheless does hereby agree and consent to this Second Amendment and to the documents and agreements referred to herein. Each Guarantor agrees and acknowledges that (i) notwithstanding the effectiveness of this Second Amendment, such Guarantor's guarantee of the Obligations pursuant to the Guarantee and Collateral Agreement shall remain in full force and effect without modification thereto and (ii) nothing herein shall in any way limit any of the terms or provisions of such Guarantor's guarantee of the Obligations pursuant to the Guarantee and Collateral Agreement or any Guarantor's obligations under any other Loan Document to which it is a party (as the same may be amended from time to time), all of which are hereby ratified, confirmed and affirmed in all respects. Each Guarantor hereby further acknowledges that the Borrower, the Administrative Agent and the Lenders may from time to time enter into any further amendments, amendments and restatements, modifications, terminations and/or amendments of the Amended Credit Agreement and any other Loan Document without notice to or consent from such Guarantor and without affecting the validity or enforceability of such Guarantor's guarantee of the Obligations pursuant to the Guarantee and Collateral Agreement or giving rise to any reduction, limitation, impairment, discharge or termination of such Guarantor's guarantee of the Obligations pursuant to the Guarantee and Collateral Agreement.

Each Guarantor hereby reaffirms its grant to the Administrative Agent, for the benefit of the Secured Parties, of a continuing security interest in and Lien upon the Collateral of such Guarantor, whether now owned or hereafter acquired or arising, and wherever located, all as provided in the Guarantee and Collateral Agreement and in the other Security Documents, and each Guarantor hereby reaffirms that the Obligations are and shall continue to be secured by the continuing security interest and Lien granted by such Guarantor to the Administrative Agent, for the benefit of the Secured Parties, pursuant to the Guarantee and Collateral Agreement and in the other Security Documents.

This acknowledgement may be executed in counterparts and via electronic signatures as described in Section 11 of the Second Amendment.

[Signature Pages Follow]


The undersigned Guarantors are signatories to this Acknowledgment, Ratification and Reaffirmation in their capacities as Guarantors.



| | | |
| EAGLE TEST SYSTEMS, INC. |
| | |
| By: | | |
| | | |
| Name: | | Sanjay Mehta |
| Title: | | Vice President, Chief Financial Officer and Treasurer |
| |
| NEXTEST SYSTEMS CORPORATION |
| | | |
| | |
| By: | | |
| | | |
| Name: | | Sanjay Mehta |
| Title: | | Vice President, Chief Financial Officer and Treasurer |
| |
| LITEPOINT CORPORATION |
| | | |
| | |
| By | | |
| | | |
| Name: | | Sanjay Mehta |
| Title: | | Treasurer |
| |
| MOBILE INDUSTRIAL ROBOTS INC. |
| | | |
| | |
| By: | | |
| | | |
| Name: | | Claus Larsen |
| Title: | | Treasurer |
| |
| UNIVERSAL ROBOTS USA, INC. |
| | | |
| | |
| By: | | |
| | | |
| Name: | | Charles J. Gray |
| Title: | | President and Chief Executive Officer |
| |
| AUTOGUIDE, LLC |
| | | |
| | |
| By: | | |
| | | |
| Name: | | Tim Moriarty |
| Title: | | President |



[Signature Page to Acknowledgment to Second Amendment to Credit Agreement]

| | | |
| ENERGID TECHNOLOGIES CORPORATION |
| | |
| By: | | |
| | | |
| Name: | | Ryan Driscoll |
| Title: | | President and Chief Executive Officer |
| |
| TERADYNE PHILIPPINES LIMITED |
| | | |
| | |
| By: | | |
| | | |
| Name: | | Sanjay Mehta |
| Title: | | Vice President, Chief Financial Officer and Treasurer |
| |
| TERADYNE THAILAND LIMITED |
| | | |
| | |
| By: | | |
| | | |
| Name: | | Sanjay Mehta |
| Title: | | Vice President, Chief Financial Officer and Treasurer |









[Signature Page to Acknowledgment to Second Amendment to Credit Agreement]


ANNEX A

AMENDED CREDIT AGREEMENT

[Please See Attached]


ANNEX A

Published CUSIP: 88077LAE6

Revolving Loan CUSIP: 88077LAF3

CREDIT AGREEMENT

dated as of May 1, 2020,

as amended as of December 10, 2021,

as further amended as of October 5, 2022

among

TERADYNE, INC.,

as Borrower,

THE LENDERS FROM TIME TO TIME PARTY HERETO,

and

TRUIST BANK,

as Administrative Agent





TRUIST SECURITIES, INC.,

as a Lead Arranger

CITIZENS BANK, NATIONAL ASSOCIATION,

as a Lead Arranger and a Syndication Agent

HSBC BANK USA, NATIONAL ASSOCIATION

BANK OF AMERICA, N.A.,

as a Lead Arranger and a Syndication Agent

BARCLAYS BANK PLC,

as a Co-DocumentationLead Arranger and a Syndication Agent

PNC BANK, NATIONAL ASSOCIATION,

as a Lead Arranger and a Syndication Agent

SILICON VALLEY BANK,

as a Co-DocumentationLead Arranger and a Syndication Agent


TABLE OF CONTENTS



| | | | | | | |
| | | | | Page | |
| Article I. DEFINITIONS; CONSTRUCTION | | | 1 | |
| Section 1.1 | | Definitions | | | 1 | |
| Section 1.2 | | Classifications of Loans and Borrowings | | | 3740 | |
| Section 1.3 | | Accounting Terms and Determination | | | 3740 | |
| Section 1.4 | | Terms Generally | | | 3841 | |
| Section 1.5 | | Divisions | | | 3842 | |
| Section 1.6 | | Benchmark Rates | | | 42 | |
| Section 1.7 | | Leverage Calculations | | | 3943 | |
| Section 1.8. | | Times of Day | | | 43 | |
| Section 1.9. | | Letter of Credit Amounts | | | 43 | |
| | |





| Article II. AMOUNT AND TERMS OF THE COMMITMENTS | | | 3943 | |
| Section 2.1 | | General Description of Facilities | | | 3943 | |
| Section 2.2 | | Revolving Loans | | | 43 | |
| Section 2.3 | | Procedure for Revolving Borrowings | | | 4044 | |
| Section 2.4 | | Swingline Commitment | | | 4044 | |
| Section 2.5 | | [Reserved.] | | | 45 | |
| Section 2.6 | | Funding of Borrowings | | | 45 | |
| Section 2.7 | | Interest Elections | | | 4246 | |
| Section 2.8 | | Optional Reduction and Termination of Commitments | | | 4347 | |
| Section 2.9 | | Repayment of Loans | | | 47 | |
| Section 2.10 | | Evidence of Indebtedness | | | 47 | |
| Section 2.11 | | Optional Prepayments | | | 4448 | |
| Section 2.12 | | Mandatory Prepayments | | | 48 | |
| Section 2.13 | | Interest on Loans | | | 4549 | |
| Section 2.14 | | Fees | | | 50 | |
| Section 2.15 | | Computation of Interest and Fees | | | 4650 | |
| Section 2.16 | | Inability to Determine Interest Rates; Benchmark Replacement Setting | | | 50 | |
| Section 2.17 | | Illegality | | | 53 | |
| Section 2.18 | | Increased Costs | | | 54 | |
| Section 2.19 | | Funding Indemnity | | | 5055 | |
| Section 2.20 | | Taxes | | | 55 | |
| Section 2.21 | | Payments Generally; Pro Rata Treatment; Sharing of Set-offs | | | 5459 | |
| Section 2.22 | | Letters of Credit | | | 61 | |
| Section 2.23 | | Incremental Facility. | | | 66 | |
| Section 2.24 | | Mitigation of Obligations | | | 67 | |
| Section 2.25 | | Replacement of Lenders | | | 6268 | |
| Section 2.26 | | Defaulting Lenders | | | 68 | |
| Section 2.27 | | Extension Offers | | | 71 | |
| Section 2.28 | | Judgment Currency | | | 72 | |



- i -

| | | | | | | |
| Article III. CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT | | | 6773 | |
| Section 3.1 | | Conditions to Effectiveness | | | 6773 | |
| Section 3.2 | | Conditions to Each Credit Event | | | 6975 | |
| Section 3.3 | | Delivery of Documents | | | 75 | |
| | |
| Article IV. REPRESENTATIONS AND WARRANTIES | | | 75 | |
| Section 4.1 | | No Change | | | 75 | |
| Section 4.2 | | Existence; Compliance With Law | | | 76 | |
| Section 4.3 | | Power; Authorization; Enforceable Obligations | | | 7076 | |
| Section 4.4 | | No Legal Bar | | | 76 | |
| Section 4.5 | | Litigation | | | 76 | |
| Section 4.6 | | No Default | | | 77 | |
| Section 4.7 | | Ownership of Property; Liens | | | 77 | |
| Section 4.8 | | Intellectual Property | | | 7177 | |
| Section 4.9 | | Taxes | | | 7177 | |
| Section 4.10 | | Margin Regulations | | | 77 | |
| Section 4.11 | | Labor Matters | | | 77 | |
| Section 4.12 | | ERISA | | | 78 | |
| Section 4.13 | | Investment Company Act | | | 78 | |
| Section 4.14 | | Subsidiaries | | | 7278 | |
| Section 4.15 | | Use of Proceeds | | | 7278 | |
| Section 4.16 | | Environmental Matters | | | 7278 | |
| Section 4.17 | | Accuracy of Information, Etc | | | 7380 | |
| Section 4.18 | | Financial Statements | | | 80 | |
| Section 4.19 | | Insurance | | | 80 | |
| Section 4.20 | | Security Documents | | | 80 | |
| Section 4.21 | | Solvency | | | 81 | |
| Section 4.22 | | Sanctions and Anti-Corruption Laws | | | 81 | |
| Section 4.23 | | Affected Financial Institutions | | | 81 | |
| | |
| Article V. AFFIRMATIVE COVENANTS | | | 81 | |
| Section 5.1 | | Financial Statements | | | 7581 | |
| Section 5.2 | | Certificates; Other Information | | | 7683 | |
| Section 5.3 | | Payment of Obligations | | | 84 | |
| Section 5.4 | | Maintenance of Existence; Compliance with Laws | | | 84 | |
| Section 5.5 | | Maintenance of Property; Insurance | | | 84 | |
| Section 5.6 | | Inspection of Property; Books and Records; Discussions | | | 85 | |
| Section 5.7 | | Notices | | | 85 | |
| Section 5.8 | | Environmental Laws | | | 7986 | |
| Section 5.9 | | Additional Collateral, etc | | | 86 | |
| Section 5.10 | | Designation of Subsidiaries | | | 88 | |
| Section 5.11 | | Anti-Corruption Laws and Sanctions | | | 89 | |
| Section 5.12 | | Margin Regulations | | | 8289 | |
| Section 5.13 | | Post-Closing Obligations. | | | 8289 | |



- ii -

| | | | | | | |
| Article VI. FINANCIAL COVENANTS | | | 8289 | |
| Section 6.1 | | Consolidated Leverage Ratio | | | 89 | |
| Section 6.2 | | Interest Coverage Ratio | | | 89 | |
| | |
| Article VII. NEGATIVE COVENANTS | | | 90 | |
| Section 7.1 | | Indebtedness | | | 8390 | |
| Section 7.2 | | Liens | | | 93 | |
| Section 7.3 | | Fundamental Changes | | | 8895 | |
| Section 7.4 | | Disposition of Property | | | 96 | |
| Section 7.5 | | Restricted Payments | | | 97 | |
| Section 7.6 | | Investments | | | 98 | |
| Section 7.7 | | Transactions with Affiliates | | | 9299 | |
| Section 7.8 | | Swap Agreements | | | 9299 | |
| Section 7.9 | | Accounting Changes | | | 9299 | |
| Section 7.10 | | Negative Pledge Clauses | | | 9299 | |
| Section 7.11 | | Clauses Restricting Subsidiary Distributions | | | 93100 | |
| Section 7.12 | | Lines of Business | | | 101 | |
| Section 7.13 | | Use of Proceeds | | | 94101 | |
| | |
| Article VIII. EVENTS OF DEFAULT | | | 94101 | |
| Section 8.1 | | Events of Default | | | 94101 | |
| Section 8.2 | | Application of Proceeds from Collateral | | | 104 | |
| | |
| Article IX. THE ADMINISTRATIVE AGENT | | | 105 | |
| Section 9.1 | | Appointment of the Administrative Agent | | | 105 | |
| Section 9.2 | | Nature of Duties of the Administrative Agent | | | 98106 | |
| Section 9.3 | | Lack of Reliance on the Administrative Agent | | | 106 | |
| Section 9.4 | | Certain Rights of the Administrative Agent | | | 107 | |
| Section 9.5 | | Reliance by the Administrative Agent | | | 107 | |
| Section 9.6 | | The Administrative Agent in its Individual Capacity | | | 107 | |
| Section 9.7 | | Successor Administrative Agent | | | 100107 | |
| Section 9.8 | | Withholding Tax | | | 108 | |
| Section 9.9 | | The Administrative Agent May File Proofs of Claim | | | 101108 | |
| Section 9.10 | | Authorization to Execute Other Loan Documents | | | 109 | |
| Section 9.11 | | Collateral and Guaranty Matters | | | 109 | |
| Section 9.12 | | Co-Documentation Agents; Co-Syndication Agents | | | 110 | |
| Section 9.13 | | Right to Realize on Collateral and Enforce Guarantee | | | 110 | |
| Section 9.14 | | Secured Bank Product Obligations and Hedging Obligations | | | 110 | |
| Section 9.15 | | Erroneous Payments. | | | 103111 | |
| | |
| Article X. MISCELLANEOUS | | | 113 | |
| Section 10.1 | | Notices | | | 113 | |
| Section 10.2 | | Waiver; Amendments | | | 109117 | |
| Section 10.3 | | Expenses; Indemnification | | | 112120 | |
| Section 10.4 | | Successors and Assigns | | | 114122 | |



- iii -

| | | | | | | |
| Section 10.5 | | Governing Law; Jurisdiction; Consent to Service of Process | | | 118126 | |
| Section 10.6 | | WAIVER OF JURY TRIAL | | | 127 | |
| Section 10.7 | | Right of Set-off | | | 119127 | |
| Section 10.8 | | Counterparts; Integration | | | 128 | |
| Section 10.9 | | Survival | | | 128 | |
| Section 10.10 | | Severability | | | 120128 | |
| Section 10.11 | | Confidentiality | | | 120128 | |
| Section 10.12 | | Interest Rate Limitation | | | 121129 | |
| Section 10.13 | | Waiver of Effect of Corporate Seal | | | 121129 | |
| Section 10.14 | | Patriot Act | | | 121129 | |
| Section 10.15 | | No Advisory or Fiduciary Responsibility | | | 130 | |
| Section 10.16 | | Location of Closing | | | 122130 | |
| Section 10.17 | | Electronic Signatures | | | 122130 | |
| Section 10.18 | | Acknowledgement and Consent to Bail-In of Affected Financial Institutions | | | 122131 | |
| Section 10.19 | | Certain ERISA Matters | | | 131 | |
| Section 10.20 | | Acknowledgement Regarding Any Supported QFCs | | | 132 | |



- iv -

| | | | | |
| Schedules | | | | |
| | | |
| Schedule I | | - | | Applicable Margin and Applicable Percentage |
| Schedule II | | - | | Commitment Amounts |
| | | |
| Schedule 1.1(a) | | - | | Excluded Real Property |
| Schedule 1.1(b) | | - | | Immaterial Subsidiaries |
| Schedule 1.1(c) | | - | | Unrestricted Subsidiaries |
| Schedule 4.3 | | - | | Consents, Authorizations, Filings, and Notices |
| Schedule 4.14 | | - | | Subsidiaries |
| Schedule 4.20(a) | | - | | Filing Offices |
| Schedule 5.13 | | - | | Post-Closing Obligations |
| Schedule 7.1(d) | | - | | Existing Indebtedness |
| Schedule 7.2(f) | | - | | Existing Liens |
| Schedule 7.6(j) | | - | | Existing Investments |
| Schedule 7.12 | | - | | Lines of Business |



| | | | | |
| Exhibits | | | | |
| | | |
| Exhibit A | | - | | Form of Assignment and Acceptance |
| Exhibit B | | - | | Form of Compliance Certificate |
| Exhibit C | | - | | Form of Guarantee and Collateral Agreement |
| Exhibit D | | - | | Form of Notice of Revolving Borrowing |
| Exhibit E | | - | | Form of Notice of Swingline Borrowing |
| Exhibit F | | - | | Form of Notice of Conversion/Continuation |
| Exhibits G-1 - G-4 | | - | | Tax Certificates |



- v -


CREDIT AGREEMENT

THIS CREDIT AGREEMENT (this "Agreement") is made and entered into as of May 1, 2020, by and among TERADYNE, INC., a Massachusetts corporation (the "Borrower"), the several banks and other financial institutions and lenders from time to time party hereto (the "Lenders"), and TRUIST BANK, in its capacity as administrative agent for the Lenders (the "Administrative Agent"), as issuing bank (the "an Issuing Bank"(as hereinafter defined) and as swingline lender (the "Swingline Lender").

W I T N E S S E T H:

WHEREAS, the Borrower has requested that the Lenders establish a $400,000,000 revolving credit facility in favor of the Borrower; and

WHEREAS, subject to the terms and conditions of this Agreement, the Lenders, the Issuing Bank and the Swingline Lender, to the extent of their respective Commitments as defined herein, are willing severally to establish the requested revolving credit facility, letter of credit subfacility and swingline subfacility in favor of the Borrower.

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the Borrower, the Lenders, the Administrative Agent, the Issuing Bank and the Swingline Lender agree as follows:

ARTICLE I.

DEFINITIONS; CONSTRUCTION

Section 1.1 Definitions. In addition to the other terms defined herein, the following terms used herein shall have the meanings herein specified (to be equally applicable to both the singular and plural forms of the terms defined):

"Accepting Lenders" has the meaning specified in Section 2.27(a).

"Acquisition" means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the assets of a Person, or of all or a substantially all of any business or division of a Person, (b) the acquisition of in excess of 50% of the capital stock, partnership interests, membership interests or equity of any Person, or otherwise causing any Person to become a Subsidiary, or (c) a merger or consolidation or any other combination with another Person (other than a Person that is already a Subsidiary), the survivor of which is a Subsidiary.

"Additional Lender" has the meaning specified in Section 2.23(b).

"Adjusted LIBO Rate" means, with respect to each Interest Period for a Eurodollar Loan, a rate per annum equal the result of (a) the London interbank offered rate ("LIBOR") for deposits in U.S. Dollars appearing on Reuters screen page LIBOR 01 (or on any successor or substitute page of such service or any successor to such service, or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time) at approximately 11:00 a.m. (London time) two (2) Business Days prior to the first day of such Interest Period, with a maturity comparable to such Interest Period (the "Screen Rate") (provided that if such Screen Rate is less than


zero, such rate shall be deemed to be zero), divided by (b) a percentage equal to 1.00 minus the then stated maximum rate of all reserve requirements (including any marginal, emergency, supplemental, special or other reserves and without benefit of credits for proration, exceptions or offsets that may be available from time to time) expressed as a decimal (rounded upward to the next 1/100th of 1%) applicable to any member bank of the Federal Reserve System in respect of Eurocurrency liabilities as defined in Regulation D (or any successor category of liabilities under Regulation D); provided that if the rate referred to in clause (a) above is not available at any such time for any reason, then the rate referred to in clause (a) shall instead be the interest rate per annum, as determined by the Administrative Agent, to be the arithmetic average of the rates per annum at which deposits in U.S. Dollars in an amount equal to the amount of such Eurodollar Loan are offered by major banks in the London interbank market to the Administrative Agent at approximately 11:00 A.M. (London time), two (2) Business Days prior to the first day of such Interest Period. For purposes of this Agreement, the Adjusted LIBO Rate shall not be less than zero percent (0%)Term SOFR" shall mean, for purposes of any calculation, the rate per annum equal to (a) Term SOFR for such calculation plus (b) the Term SOFR Adjustment; provided, that if Adjusted Term SOFR determined as provided above shall ever be less than the Floor, then Adjusted Term SOFR shall be deemed to be the Floor.

"Administrative Agent" means Truist Bank, in its capacity as administrative agent under any of the Loan Documents, or any successor administrative agent.

"Administrative Questionnaire" means, with respect to each Lender, an administrative questionnaire in the form provided by the Administrative Agent and submitted to the Administrative Agent duly completed by such Lender.

"Affected Financial Institution" means (a) any EEA Financial Institution or (b) any UK Financial Institution.

"Affiliate" means, with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls, is Controlled by, or is under common Control with, the specified Person. For the purposes of this definition, "Control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ability to exercise voting power, by control or otherwise. The terms "Controlling" and "Controlled" have meanings correlative thereto.

"Aggregate Revolving Commitment Amount" means the aggregate principal amount of the Aggregate Revolving Commitments from time to time. On the FirstSecond Amendment Effective Date, the Aggregate Revolving Commitment Amount is $400,000,000750,000,000.

"Aggregate Revolving Commitments" means, collectively, all Revolving Commitments of all Lenders at any time outstanding.

"Alternative Currencies" means (a) Euro, (b) Pounds Sterling, (c) Indian Rupees, (d) Japanese Yen, (e) Czech Koruna, (f) Singapore Dollars, and (g) any other foreign currency (that is not Dollars) acceptable to the Administrative Agent and the Issuing Bank; provided that, for each Alternative Currency, such currency is an Eligible Currency.

"Anti-Corruption Laws" means all laws, rules and regulations of any jurisdiction applicable to the Borrower and/or its Subsidiaries concerning or relating to bribery or corruption.



- 2 -


"Applicable Fiscal Quarter" has the meaning specified in Section 6.1.

"Applicable Lending Office" means, for each Lender and for each Type of Loan, the "Lending Office" of such Lender (or an Affiliate of such Lender) designated for such Type of Loan in the Administrative Questionnaire submitted by such Lender or such other office of such Lender (or such Affiliate of such Lender) as such Lender may from time to time specify to the Administrative Agent and the Borrower as the office by which its Loans of such Type are to be made and maintained.

"Applicable Margin" means, as of any date, with respect to interest on all Revolving Loans outstanding on such date or the letter of credit fee, as the case may be, the percentage per annum determined by reference to the applicable Consolidated Leverage Ratio in effect on such date as set forth on Schedule I; provided that a change in the Applicable Margin resulting from a change in the Consolidated Leverage Ratio shall be effective on the second Business Day after which the Borrower delivers each of the financial statements required by Section 5.1(a) and (b) and the Compliance Certificate required by Section 5.2(a) for the most-recent fiscal quarter of the Borrower then ended; provided, further, that if at any time the Borrower shall have failed to deliver such financial statements and such Compliance Certificate when so required, the Applicable Margin shall be at Level I as set forth on Schedule I until such time as such financial statements and Compliance Certificate are delivered, at which time the Applicable Margin shall be determined as provided above. Notwithstanding the foregoing, the Applicable Margin from the FirstSecond Amendment Effective Date until the date by which the financial statements and Compliance Certificate for the fiscal quarter ending on or around December 31September 30, 20212022 are required to be delivered shall be at Level IV as set forth on Schedule I. In the event that any financial statement or Compliance Certificate delivered hereunder is shown to be inaccurate, and such inaccuracy, if corrected, would have led to the application of a higher Applicable Margin based upon the pricing grid set forth on Schedule I (the "Accurate Applicable Margin") for any period that such financial statement or Compliance Certificate covered, then, so long as this Agreement is still in effect when such inaccuracy is discovered: (i) the Borrower shall immediately deliver to the Administrative Agent a correct financial statement or Compliance Certificate, as the case may be, for such period, (ii) the Applicable Margin shall be adjusted such that after giving effect to the corrected financial statement or Compliance Certificate, as the case may be, the Applicable Margin shall be reset to the Accurate Applicable Margin based upon the pricing grid set forth on Schedule I for such period and (iii) the Borrower shall promptly (and in any event within three (3) Business Days) pay to the Administrative Agent, for the account of the Lenders, the accrued additional interest owing as a result of such Accurate Applicable Margin for such period (it being understood that no payment Default shall be deemed to have occurred as a result of any such inaccuracy if such payment is so made). The provisions of this definition shall not limit the rights of the Administrative Agent and the Lenders with respect to Section 2.13(c) or Article VIII. For the avoidance of doubt, Schedule I, as amended on the FirstSecond Amendment Effective Date, shall be effective with respect to any date from and after the FirstSecond Amendment Effective Date.

"Applicable Percentage" means, as of any date, with respect to the commitment fee as of such date, the percentage per annum determined by reference to the Consolidated Leverage Ratio in effect on such date as set forth on Schedule I; provided that a change in the Applicable Percentage resulting from a change in the Consolidated Leverage Ratio shall be effective on the second Business Day after which the Borrower delivers each of the financial statements required by Section 5.1(a) and (b) and the Compliance Certificate required by Section 5.2(a) for the most-recent fiscal quarter of the Borrower then ended; provided, further, that if at any time the Borrower shall have failed to deliver such financial statements and such Compliance Certificate when so required, the Applicable Percentage shall be at Level I as set forth on Schedule I until such time as such financial statements and Compliance Certificate are delivered, at which time the Applicable Percentage shall be determined as provided above.



- 3 -


Notwithstanding the foregoing, the Applicable Percentage for the commitment fee from the FirstSecond Amendment Effective Date until the date by which the financial statements and Compliance Certificate for the fiscal quarter ending on or around December 31September 30, 20212022 are required to be delivered shall be at Level IV as set forth on Schedule I. In the event that any financial statement or Compliance Certificate delivered hereunder is shown to be inaccurate, and such inaccuracy, if corrected, would have led to the application of a higher Applicable Percentage based upon the pricing grid set forth on Schedule I (the "Accurate Applicable Percentage") for any period that such financial statement or Compliance Certificate covered, then, so long as this Agreement is still in effect when such inaccuracy is discovered: (i) the Borrower shall immediately deliver to the Administrative Agent a correct financial statement or Compliance Certificate, as the case may be, for such period, (ii) the Applicable Percentage shall be adjusted such that after giving effect to the corrected financial statement or Compliance Certificate, as the case may be, the Applicable Percentage shall be reset to the Accurate Applicable Percentage based upon the pricing grid set forth on Schedule I for such period and (iii) the Borrower shall promptly (and in any event within three (3) Business Days) pay to the Administrative Agent, for the account of the Lenders, the accrued additional commitment fee owing as a result of such Accurate Applicable Percentage for such period (it being understood that no payment Default shall be deemed to have occurred as a result of any such inaccuracy if such payment is so made). The provisions of this definition shall not limit the rights of the Administrative Agent and the Lenders with respect to Section 2.13(c) or Article VIII. For the avoidance of doubt, Schedule I, as amended on the FirstSecond Amendment Effective Date, shall be effective with respect to any date from and after the FirstSecond Amendment Effective Date.

"Applicable Time" means, with respect to any payments in any Alternative Currency, the local time in the place of settlement for such Alternative Currency as may be determined by the Issuing Bank to be necessary for timely settlement on the relevant date in accordance with normal banking procedures in the place of payment.

"Approved Fund" means any Person (other than a natural Person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

"Arrangers" means, collectively, Truist Securities, Inc., Citizens Bank, National Association, and HSBCBank of America, N.A., Barclays Bank USAPLC, PNC Bank, National Association and Silicon Valley Bank, each in its capacity as a lead arranger and book runner.

"Assignment and Acceptance" means an assignment and acceptance entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 10.4(b)) and accepted by the Administrative Agent, in substantially the form of Exhibit A attached hereto or any other form approved by the Administrative Agent.

"Available Incremental Amount" means, as of any date determination after the Second Amendment Effective Date, an amount equal to the result of (a) the greater of (i) $200,000,000 or (ii)fifteen percent (15.00%) of Consolidated EBITDA, calculated on a pro forma basis for the period of four consecutive fiscal quarters most recently ended for which financial statements have been delivered hereunder prior to such time, minus (b) the aggregate principal amount of all Incremental Facilities established prior to such date, but after the Second Amendment Effective Date.



- 4 -


"Available Tenor" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) if such Benchmark is a term rate, any tenor for such Benchmark or(or component thereof) that is or may be used for determining the length of an interest period pursuant to this Agreement or (y) otherwise, any payment period for interest calculated with reference to such Benchmark, as applicable, (or component thereof) that is or may be used for determining the length of an Interest Periodany frequency of making payments of interest calculated with reference to such Benchmark pursuant to this Agreement, in each case, as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of "Interest Period" pursuant to Section 2.16(fe).

"Availability Period" means the period from the Closing Date to but excluding the Maturity Date.

"Bail-In Action" means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"Bail-In Legislation" means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

"Bank Product Obligations" mean, collectively, all obligations and other liabilities of any Loan Party to any Bank Product Provider arising with respect to any Bank Products.

"Bank Product Provider" means any Person that, at the time it provides any Bank Product to any Loan Party, (i) is a Lender or an Affiliate of a Lender and (ii) except when the Bank Product Provider is Truist Bank and its Affiliates, has provided prior written notice to the Administrative Agent which has been acknowledged by the Borrower of (x) the existence of such Bank Product, (y) the maximum dollar amount of obligations arising thereunder (the "Bank Product Amount") and (z) the methodology to be used by such parties in determining the obligations under such Bank Product from time to time. In no event shall any Bank Product Provider acting in such capacity be deemed a Lender for purposes hereof to the extent of and as to Bank Products except that each reference to the term "Lender" in Article IX and Section 10.3(b) shall be deemed to include such Bank Product Provider and in no event shall the approval of any such person in its capacity as Bank Product Provider be required in connection with the release or termination of any security interest or Lien of the Administrative Agent. The Bank Product Amount may be changed from time to time upon written notice to the Administrative Agent by the applicable Bank Product Provider.

"Bank Products" means any of the following services: (a) any treasury, depositary or other cash management services, including deposit accounts, automated clearing house (ACH) origination and other funds transfer, depository (including cash vault and check deposit), zero balance accounts and sweeps, return items processing, controlled disbursement accounts, overdrafts, interest depository network services, positive pay, lockboxes and lockbox accounts, account reconciliation and information reporting, payables outsourcing, payroll processing, trade finance services, investment accounts and securities accounts, and (b) card services, including credit cards (including purchasing cards and commercial cards), prepaid cards, including payroll, stored value and gift cards, merchant services processing, and debit card services.



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"Base Rate" means for any day a rate per annum equal to the highest of (i) the rate of interest which the Administrative Agent announces from time to time as its prime lending rate, as in effect from time to time (the "Prime Rate"), (ii) the Federal Funds Rate, as in effect from time to time, plus 0.50%, (iii) the Adjusted LIBO Rate determined on a daily basisTerm SOFR for an Interest Period of one (1) month, plus 1.00% (any changes in such rates to be effective as of the date of any change in such rate), and (iv) zero percent (0.00%). The Administrative Agent's prime lending rate is a reference rate and does not necessarily represent the lowest or best rate actually charged to any customer. The Administrative Agent may make commercial loans or other loans at rates of interest at, above, or below the Administrative Agent's prime lending rate. If the Administrative Agent shall have determined (which determination shall be conclusive absent manifest error) that it is unable to ascertain the Federal Funds Effective Rate or Adjusted Term SOFR for any reason, the Base Rate shall be determined without regard to clause (ii) or (iii), as the case may be, of the first sentence of this definition until the circumstances giving rise to such inability no longer exist. Any change in the Base Rate due to a change in the Prime Rate, the Federal Funds Rate, or the Adjusted LIBO RateTerm SOFR will be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Rate, or the Adjusted LIBOTerm SOFR, respectively.

"Base Rate Term SOFR Determination Day" shall have the meaning set forth the definition of "Term SOFR".

"Benchmark" means, initially, the Adjusted LIBOTerm SOFR Reference Rate; provided that if a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have has occurred with respect to Adjusted LIBOthe Term SOFR Reference Rate or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 2.16(b) or (c).

"Benchmark Replacement" means, forwith respect to any Available TenorBenchmark Transition Event, the first alternative set forth in the order below that can be determined by the Administrative Agent for the applicable Benchmark Replacement Date:

the sum of: (a) Term SOFR and (b) the related Benchmark Replacement Adjustment;

(2) the sum of: (a) Daily Simple SOFR and (b) the related Benchmark Replacement Adjustment0.10% (10 basis points); and



| | (1) | (3) the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower as the replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement for the then-current Benchmark for U.S. dollar-denominated syndicated credit facilities at such time and (b) the related Benchmark Replacement Adjustment; |



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| | provided that, in the case of clause (1), such Unadjusted Benchmark Replacement is displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion; provided further that, notwithstanding anything to the contrary in this Agreement or in any other Loan Document, upon the occurrence of a Term SOFR Transition Event, and the delivery of a Term SOFR Notice, on the applicable Benchmark Replacement Date the "Benchmark Replacement" shall revert to and shall be deemed to be the sum of (a) Term SOFR and (b) the related Benchmark Replacement Adjustment, as set forth in clause (1) of this definition (subject to the first proviso above). |

If the Benchmark Replacement as determined pursuant to clause (1), or (2) or (3) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.

"Benchmark Replacement Adjustment" means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable Interest Period and Available Tenor for any setting of such Unadjusted Benchmark Replacement:



| | (1) | for purposes of clauses (1) and (2) of the definition of "Benchmark Replacement," the first alternative set forth in the order below that can be determined by the Administrative Agent:(a) , the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) as of the Reference Time such Benchmark Replacement is first set for such Interest Period that has been selected or recommended by the Relevant Governmental Body for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for the applicable Corresponding Tenor; |

(b) the spread adjustment (which may be a positive or negative value or zero) as of the Reference Time such Benchmark Replacement is first set for such Interest Period that would apply to the fallback rate for a derivative transaction referencing the ISDA Definitions to be effective upon an index cessation event with respect to such Benchmark for the applicable Corresponding Tenor; and

(2) for purposes of clause (3) of the definition of "Benchmark Replacement," the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated syndicated credit facilities;

provided that, in the case of clause (1) above, such adjustment is displayed on a screen or other information service that publishes such Benchmark Replacement Adjustment from time to time as selected by the Administrative Agent in its reasonable discretion.



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"Benchmark Replacement Conforming Changes" means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Base Rate," the definition of "Business Day," the definition of "Interest Period," timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Administrative Agent, in consultation with the Borrower, decides in its reasonable discretion may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides, in consultation with the Borrower, is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).

"Benchmark Replacement Date" means a date and time determined by the Administrative Agent, which date shall be no later than the earliest to occur of the following events with respect to the then-current Benchmark:



| | (1) | in the case of clause (1) or (2) of the definition of "Benchmark Transition Event," the later of: |

(a) (c) the date of the public statement or publication of information referenced therein; and

(b) (d) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof);



| | (2) | in the case of clause (3) of the definition of "Benchmark Transition Event," the first date ofon which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative; provided that such non-representativeness will be determined by reference to the publicmost recent statement or publication of information referenced therein; or(3) in the case of a Term SOFR Transition Event, the date that is thirty (30) days after the date a Term SOFR Notice is provided to the Lenders and the Borrower pursuant to Section 2.16(c); orsuch clause (3) and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date. |



| | (4) | in the case of an Early Opt-in Election, the sixth (6th) Business Day after the date notice of such Early Opt-in Election is provided to the Lenders, so long as the Administrative Agent has not received, by 5:00 p.m. on the fifth (5th) Business Day after the date notice of such Early Opt-in Election is provided to the Lenders, written notice of objection to such Early Opt-in Election from Lenders comprising the Required Lenders. |



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For the avoidance of doubt, (i) if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination and (ii) the "Benchmark Replacement Date" will be deemed to have occurred in the case of clause (1) or (2) above with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

"Benchmark Transition Event" means the occurrence of one or more of the following events with respect to the then-current Benchmark:



| | (1) | a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); |



| | (2) | a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or |



| | (3) | a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are no longernot, or as of a specified future date will not be, representative. |

For the avoidance of doubt, a "Benchmark Transition Event" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"Benchmark Unavailability Period" means the period (if any) (x) beginning at the time that a Benchmark Replacement Date pursuant to clauses (1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 2.16(b)-(f) and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 2.16(b)-(f).



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"Beneficial Ownership Certification" means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

"Beneficial Ownership Regulation" means 31 C.F.R. § 1010.230.

"Benefit Plan" means any of (a) an "employee benefit plan" (as defined in ERISA) that is subject to Title I of ERISA, (b) a "plan" as defined in and subject to Section 4975 of the Code or (c) any person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such "employee benefit plan" or "plan".

"Borrower" has the meaning set forth in the introductory paragraph hereof.

"Borrowing" means a Revolving Borrowing or a Swingline Borrowing, as the context may require.

"Business Day" means any day other than (i) a Saturday, Sunday or other day on which commercial banks in Charlotte, North Carolina or New York are authorized or required by law to close, and (ii) if such day relates to a Borrowing of, a payment or prepayment of principal or interest on, a conversion of or into, or an Interest Period for, a Eurodollar Loan or a notice with respect to any of the foregoing, any such day that is also a day on which dealings in Dollar deposits are not conducted by and between banks in the London interbank market, and (iii) if such day relates to any issuance, fundings, disbursements, settlements and payments in respect of any Letter of Credit denominated in an Alternative Currency, means any such day on which banks are not open for foreign exchange business in the principal financial center of the country of such currency.

"Capital Lease Obligations" of any Person shall mean all obligations of such Person to pay rent or other amounts under any Capitalized Lease, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP (subject to the provisions in Section 1.3 hereof).

"Capital Stock" means all shares, options, warrants, general or limited partnership interests, membership interests or other equivalents (regardless of how designated) of or in a corporation, partnership, limited liability company or equivalent entity whether voting or nonvoting, including common stock, preferred stock or any other "equity security" (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the Securities and Exchange Commission under the Exchange Act); provided that Capital Stock shall exclude any Indebtedness convertible into or exchangeable for Capital Stock until such time as such Indebtedness is converted into or exchanged for Capital Stock and such Capital Stock has been delivered by the Borrower to converting or exchanging holders.

"Capitalized Lease" means, for any Person, each lease (or other arrangement conveying the right to use) of real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP (subject to the provisions in Section 1.3 hereof).



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"Cash Collateralize" means, to pledge and deposit with or deliver to the Administrative Agent, for the benefit of an Issuing Bank or Swingline Lender (as applicable) and the Lenders, as collateral for Obligations in respect of Letters of Credit, Obligations in respect of Swingline Loans, or obligations of Lenders to fund participations in respect of either thereof (as the context may require), cash or deposit account balances or, if the applicable Issuing Bank or Swingline Lender benefitting from such collateral shall agree in its sole discretion, other credit support, in each case pursuant to documentation in form and substance satisfactory to (a) the Administrative Agent and (b) the applicable Issuing Bank or the Swingline Lender (as applicable). "Cash Collateral" shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support.

"Cash Equivalents" means (a) securities issued or unconditionally guaranteed or insured by the United States government, any member of the European Union whose sovereign debt is rated at least BBB- with a stable outlook by S&P or at least Baa3 with a stable outlook by Moody's or any other government approved by the Administrative Agent (which approval shall not be unreasonably withheld, conditioned or delayed), (b) securities issued or unconditionally guaranteed or insured by any state of the United States or any agency or instrumentality thereof having maturities of not more than twelve months from the date of acquisition and having one of the two highest ratings obtainable from either S&P or Moody's, (c) time deposits, certificates of deposit and bankers' acceptances having maturities of not more than twelve months from the date of acquisition, in each case with any Lender (or an Affiliate of any thereof), or any Person that was a Lender (or an Affiliate thereof) at the time of acquisition thereof, or with any commercial bank organized under the laws of the United States of America or any state thereof or the District of Columbia or any member of the European Union or any U.S. branch of a foreign bank having at the date of acquisition capital and surplus of not less than $100,000,000, (d) repurchase obligations with a term of not more than 30 days for underlying securities of the types described in clauses (a), (b) and (c) entered into with any bank meeting the qualifications specified in clause (c) above, (e) commercial paper issued by the parent corporation of any Lender or Person that was a Lender (or an Affiliate thereof) at the time of acquisition thereof, and commercial paper rated, at the time of acquisition, at least "A-1" or the equivalent thereof by S&P or "P-1" or the equivalent thereof by Moody's and in either case maturing within twelve months after the date of acquisition, (f) deposits maintained with money market funds having total assets in excess of $300,000,000, (g) demand deposit accounts maintained in the ordinary course of business with banks or trust companies, (h) temporary deposits, of amounts received in the ordinary course of business pending disbursement of such amounts, in demand deposit accounts in banks outside the United States, (i) deposits in mutual funds which invest substantially all of their assets in preferred equities issued by U.S. corporations rated at least "AA" (or the equivalent thereof) by S&P or other assets referred to in clauses (a) through (h) above; provided, that notwithstanding the foregoing, Cash Equivalents shall, in any event, include all cash and cash equivalents as set forth in the Borrower's balance sheet prepared in accordance with GAAP, (j) investments permitted by the Borrower's cash investment policy delivered to the Administrative Agent prior to the Closing Date and (k) investments generally equivalent to those referred to in clauses (a) through (j) above denominated in foreign currencies (A) customarily used by Persons for cash management purposes in any jurisdiction outside of the United States or (B) with respect to any Foreign Subsidiaries, by reference to such Foreign Subsidiary's jurisdiction of organization or any jurisdiction(s) where such Foreign Subsidiary is engaged in material operations.

"Change in Control" means the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Exchange Act and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof), of Capital Stock representing more than 35% of the aggregate ordinary voting power represented by the issued and outstanding Capital Stock of the Borrower.



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"Change in Law" means the occurrence, after the date of this Agreement, of any of the following: (i) the adoption or taking effect of any law, rule, regulation or treaty, (ii) any change in any law, rule, regulation or treaty, or in the administration, interpretation, implementation or application thereof by any Governmental Authority, or (iii) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) of any Governmental Authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "Change in Law", regardless of the date enacted, adopted or issued.

"Charges" has the meaning specified in Section 10.12.

"Class", when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans, Swingline Loans or Term Loans (if applicable) and when used in reference to any Commitment, refers to whether such Commitment is a Revolving Commitment, a Swingline Commitment, or a commitment to fund Term Loans (if applicable).

"Closing Date" means the date on which the conditions precedent set forth in Section 3.1 and Section 3.2 have been satisfied or waived in accordance with Section 10.2.

"Code" means the Internal Revenue Code of 1986, as amended and in effect from time to time.

"Collateral" means all property of the Loan Parties (other than Excluded Property), now owned or hereafter acquired upon which a Lien is purported to be created by any Security Document.

"Commitment" means a Revolving Commitment, a Swingline Commitment, or the commitments for any Incremental Facility, or any combination thereof (as the context shall permit or require).

"Commodity Exchange Act" means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended and in effect from time to time, and any successor statute.

"Compliance Certificate" means a certificate from a Responsible Officer of the Borrower in the form of, and containing the certifications set forth in, the certificate attached hereto as Exhibit B.

"Computation Date" means (a) the last Business Day of each calendar quarter, (b) (i) each date of issuance, amendment and/or extension of a Letter of Credit denominated in an Alternative Currency and (ii) each date of any payment by the Issuing Bank under any Letter of Credit denominated in an Alternative Currency, and (c) during the continuation of an Event of Default, any Business Day elected by the Administrative Agent in its discretion or upon instruction by the Required Lenders.

"Conforming Changes" means, with respect to either the use or administration of Term SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Base Rate". the definition of "Business Day", the definition of "U.S. Government Securities Business Day", the definition of "Interest Period" or any similar or analogous definition (or the addition of a concept of "interest period"), timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of Section 2.19 and other technical, administrative or operational



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matters) that the Administrative Agent decides, in consultation with the Borrower, may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines, in consultation with the Borrower, that no market practice for the administration of any such rate exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).

"Connection Income Taxes" means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"Consolidated Assets" means, at a particular date, all amounts which would be included under total assets on a consolidated balance sheet of the Borrower and its Restricted Subsidiaries as at such date, determined in accordance with GAAP.

"Consolidated EBITDA" means, for any period (and calculated without duplication), Consolidated Net Income for such period excluding (a) any extraordinary and non-recurring non-cash expenses, losses, income or gains as determined in accordance with GAAP, (b) charges, premiums, expenses and any gains associated with the issuance, redemption, repurchase, discharge, defeasance or amendments to the terms of Capital Stock or Indebtedness, (c) charges (including actuarial, curtailment or settlement charges or losses) relating to Accounting Standards Codification 715 (Topic 715, "Compensation-Retirement Benefits") (or any other Accounting Standards Codification having a similar result or effect), (d) any non-cash income included, and any non-cash deductions made, in determining Consolidated Net Income for such period (other than any deductions which represent the accrual of or a reserve for the payment of cash charges in any future period); provided that cash payments made in any subsequent period in respect of any item for which any such non-cash deduction was excluded in a prior period shall be deemed to reduce Consolidated Net Income by such amount in such subsequent period, (e) stock compensation expense and non-cash equity linked expense, (f) deferred financing fees (and any write-offs thereof), debt discount and issuance costs, (g) charges related to GAAP acquisition purchasing accounting adjustments (including inventory step-up amortization and in-process research and development expenses), (h) writeoffs of goodwill, intangible assets or long-lived assets or impairment charges or losses on sale in respect thereof, (i) solely to the extent not otherwise already excluded from Consolidated EBITDA by virtue of another clause of this definition, unusual or infrequent items, restructuring, restructuring-related or other similar charges or expenses (whether or not classified as restructuring charges or expenses under GAAP) and write-downs of excess or obsolete inventory and including the amount of any restructuring, integration, transition, employee severance, facility closing and similar charges accrued during such period, including any charges to establish accruals and reserves or to make payments associated with the reassessment or realignment of the business and operations of the Borrower and its Restricted Subsidiaries, and including the sale or closing of facilities, severance, stay bonuses and curtailments or modifications to pension and post-retirement employee benefit plans, asset write-downs or asset disposals (including leased facilities), write-downs for purchase and lease commitments, start-up costs for new facilities, writedowns of excess, obsolete or unbalanced inventories, relocation costs which are not otherwise capitalized and any related promotional costs of exiting products or product lines; provided that the aggregate cash amount of all such items, charges or expenses (the "Restructuring Addbacks") together with the aggregate Cost Savings Addbacks (as defined below) in any period of four consecutive fiscal quarters shall not exceed 20% of Consolidated EBITDA for such period (calculated after giving effect to such addbacks and pro forma adjustments), (j) fees, costs, charges, commissions and expenses or other charges incurred during such period in connection with this Agreement or any Permitted Acquisition or debt financing, debt security issuance,



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equity security issuance or disposition permitted hereunder (in each case, whether or not consummated) or any amendment or waiver of any documentation governing such Permitted Acquisition, debt financing, debt security issuance, equity security issuance or disposition, (k) foreign exchange gains and losses, (l) expenses with respect to casualty events and (m) any state or local taxes, plus, to the extent deducted in determining Consolidated Net Income, the sum of (A) interest expense, (B) any expenses for taxes, (C) depreciation and amortization expense, (D) minority interests in income (or losses) of Restricted Subsidiaries and (E) net equity earnings (and losses) in Affiliates (excluding Subsidiaries). For purposes of calculating the ratios set forth in Article VI (including any pro forma calculation thereof) and any other financial ratio or test (including the Consolidated Leverage Ratio and the Consolidated Secured Leverage Ratio), Consolidated EBITDA for any fiscal period shall in any event (a) include the Consolidated EBITDA for such fiscal period of any entity acquired by the Borrower or any of its Restricted Subsidiaries in an Acquisition during such period (or in the case of any pro forma financial calculation, any Acquisition consummated after such period and prior to the transaction or event in respect of which such pro forma financial calculation is being made) and (b) give pro forma effect to cost savings, operating expense reductions, other operating improvements and initiatives and synergies related to any Material Transaction that are (A) permitted under Regulation S-X or (B) projected by a Responsible Officer in good faith to be reasonably anticipated to be realizable within 18 months of the date of such Material Transaction (which will be added to Consolidated EBITDA as so projected until fully realized, and calculated on a pro forma basis, as though the full recurring benefit of such cost savings, operating expense reductions, other operating improvements and initiatives and synergies had been realized on the first day of such period), net of the amount of actual benefits realized during such period from such actions; provided that with respect to this clause (B) such cost savings, operating expense reductions, other operating improvements and initiatives or synergies are reasonably identifiable and factually supportable (in the good faith determination of a Responsible Officer of the Borrower); provided further that, the aggregate amount of cost savings, operating expense reductions, other operating improvements and initiatives and synergies related to any Material Transaction added back pursuant to this clause (B) (the "Cost Savings Addbacks") together with the aggregate Restructuring Addbacks in any period of four consecutive fiscal quarters shall not exceed 20% of Consolidated EBITDA for such period (calculated after giving effect to such addbacks and pro forma adjustments).

"Consolidated Interest Expense" means, for any period, the amount which would, in conformity with GAAP, be set forth opposite the caption "interest expense" (or any like caption) on a consolidated income statement of the Borrower and its Restricted Subsidiaries for such period; provided, that Consolidated Interest Expense for any period shall exclude (i) fees payable in respect of such period under Section 2.14 or analogous provisions under any other debt instruments or documents, (ii) any amortization, expensing or write-off of deferred financing fees, amendment and consent fees or other debt issuance costs and any fees related to acquisitions (or purchases of assets) during such period, (iii) premiums or penalties paid in connection with the discharge of Indebtedness, (iv) any non-cash expense (including any recognized but unrealized losses on equity securities), (v) costs associated with Hedging Transactions and breakage costs in respect of Hedging Transactions related to interest rates, (vi) any expense resulting from the discounting of any indebtedness in connection with the application of recapitalization accounting or, if applicable, purchase accounting in connection with any acquisition (or purchase of assets), (vii) penalties and interest relating to taxes, (viii) any "additional interest" or "liquidated damages" with respect to any securities, (ix) commissions, discounts, yield and other fees and charges (excluding any cash interest expense) related to any securitization financing and (x) any accretion of accrued interest on discounted liabilities (other than Indebtedness except to the extent arising from the application of purchase accounting).



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"Consolidated Leverage Ratio" means, as at the last day of any period of four consecutive fiscal quarters, the ratio of (a) Consolidated Total Debt on such day to (b) Consolidated EBITDA for such period.

"Consolidated Net Income" means, for any period, the consolidated net income (or deficit) of the Borrower and its Restricted Subsidiaries for such period (taken as a cumulative whole), determined in accordance with GAAP. In addition, to the extent not already included in Consolidated Net Income of the Borrower and its Restricted Subsidiaries, Consolidated Net Income will include the amount of proceeds received or receivable from business interruption insurance.

"Consolidated Secured Debt" means, at any date, the aggregate principal amount of Consolidated Total Debt as at such date that is then secured by Liens on the property or assets of the Borrower and its Restricted Subsidiaries.

"Consolidated Secured Leverage Ratio" means, as at the last day of any period of four consecutive fiscal quarters, the ratio of (a) Consolidated Secured Debt on such day to (b) Consolidated EBITDA for such period.

"Consolidated Total Debt" means, at any date, (a) the aggregate principal amount of all Indebtedness of the Borrower and its Restricted Subsidiaries of the types described in clauses (a), (c) and (e) of the definition of Indebtedness and, without duplication, of the type described in clause (g) of the definition of Indebtedness (to the extent relating to Indebtedness of the types described in clause (a), (c) and (e) of the definition Indebtedness) at such date (net of unencumbered (other than pursuant to the Loan Documents) domestic cash and Cash Equivalents of the Loan Parties), determined on a consolidated basis, that would be required to be shown as debt on a balance sheet of the Borrower prepared in accordance with GAAP, minus (b) to the extent that neither the Borrower nor any Restricted Subsidiary is liable therefor, the aggregate principal amount of Indebtedness of any Person (other than the Borrower or any Restricted Subsidiary) included in the amount described in clause (a) of this definition.

"Contractual Obligation" means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

"Copyright Security Agreement" means any Copyright Security Agreement executed by a Loan Party owning registered copyrights or applications for copyrights in favor of the Administrative Agent for the benefit of the Secured Parties, both on the Closing Date and thereafter.

"Corresponding Tenor" with respect to any Available Tenor means, as applicable, either a tenor (including overnight) or an interest payment period having approximately the same length (disregarding business day adjustment) as such Available Tenor.

"Czech Koruna" means the lawful currency of the Czech Republic.

"Daily Simple SOFR" means, for any day, SOFR, with the conventions for this rate (which will include a lookback) being established by the Administrative Agent in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining "Daily Simple SOFR" for syndicated business loans; provided, that if the Administrative Agent decides that any such convention is not administratively feasible for the Administrative Agent, then the Administrative Agent, in consultation with the Borrower, may establish another convention in its reasonable discretion.



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"Debtor Relief Laws" means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect.

"Default" means any condition or event that, with the giving of notice or the lapse of time or both, would constitute an Event of Default.

"Defaulting Lender" means, subject to Section 2.26(c), any Lender that (a) has failed to (i) fund all or any portion of its Loans within two (2) Business Days of the date such Loans were required to be funded hereunder, or (ii) pay to the Administrative Agent, any Issuing Bank, any Swingline Lender or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in Letters of Credit or Swingline Loans) within two (2) Business Days of the date when due, (b) has notified the Borrower, the Administrative Agent or any Issuing Bank or Swingline Lender in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect, (c) has failed, within three (3) Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity or (iii) become the subject of a Bail-In Action; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.26(b)) upon delivery of written notice of such determination to the Borrower, each Issuing Bank, each Swingline Lender and each Lender.

"Disposition" means, with respect to any property, any sale, lease, sale and leaseback, assignment, conveyance, license, transfer or other similar disposition thereof, excluding any such transaction or series of related transactions that yields Net Cash Proceeds to any Group Member (valued at the initial principal amount thereof in the case of non-cash proceeds consisting of notes or other debt securities and valued at fair market value in the case of other non-cash proceeds) of $1,000,000 or less. The terms "Dispose" and "Disposed of" shall have correlative meanings.

"Disqualified Assignee" means any Person that is a competitor of the Borrower and its Subsidiaries identified in writing on a list made available to the Administrative Agent from time to time (and any Affiliates thereof that are reasonably identifiable by name (it being understood that the Administrative Agent shall have no obligation to carry out due diligence in order to identify such



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Affiliates)) other than bona fide debt funds. Notwithstanding anything herein to the contrary, (x) the Administrative Agent shall be permitted to provide a copy of the list (as well as any supplements thereto) of the Disqualified Assignees to the Lenders and in no event shall a supplement to any such list apply retroactively to disqualify any Persons that have previously acquired an assignment or participation interest in the Loans or Commitments that was otherwise permitted prior to such permitted supplementation, and (y) if the Borrower supplements the list of "Disqualified Assignees", such supplement shall become effective two (2) Business Days after the date that such written supplement is delivered to the Administrative Agent (and the Administrative Agent shall promptly thereafter make available such supplement to each Lender).

"Disqualified Stock" means, with respect to any Person, any Capital Stock of such Person which by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable) or upon the happening of any event:

(a) matures or is mandatorily redeemable pursuant to a sinking fund obligation or otherwise;

(b) is convertible or exchangeable for Indebtedness or Disqualified Stock (excluding Capital Stock which is convertible or exchangeable solely at the option of the Borrower or a Restricted Subsidiary); or

(c) is redeemable at the option of the holder of the Capital Stock in whole or in part,

in each case on or prior to the date that is 91 days after the earlier of (a) the Maturity Date and (b) the last scheduled maturity date of any Incremental Facility; provided that only the portion of Capital Stock which so matures or is mandatorily redeemable, is so convertible or exchangeable or is redeemable at the option of the holder thereof prior to such date will be deemed to be Disqualified Stock.

"Dollar(s)" and the sign "$" means lawful money of the United States.

"Dollar Equivalent" of any currency at any date shall mean (a) if such currency is Dollars, the amount of such currency, or (b) if such currency is an Alternative Currency, the equivalent in such currency of Dollars, calculated on the basis of the Exchange Rate for such currency on or as of the most recent Computation Date.

"Domestic Subsidiary" means any Subsidiary of the Borrower organized under the laws of any jurisdiction within the United States.

"Early Opt-in Election" means, if the then-current Benchmark is the Adjusted LIBO Rate, the occurrence of:

(1) a notification by the Administrative Agent to (or the request by the Borrower to the Administrative Agent to notify) each of the other parties hereto that at least five (5) currently outstanding U.S. dollar-denominated syndicated credit facilities at such time contain (as a result of amendment or as originally executed) a SOFR-based rate (including SOFR, a term SOFR or any other rate based upon SOFR) as a benchmark rate (and such syndicated credit facilities are identified in such notice and are publicly available for review), and



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| | (2) | the joint election by the Administrative Agent and the Borrower to trigger a fallback from the Adjusted LIBO Rate and the provision by the Administrative Agent of written notice of such election to the Lenders. |

"EEA Financial Institution" means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clause (a) or (b) of this definition and is subject to consolidated supervision with its parent.

"EEA Member Country" means any of the member states of the European Union, Iceland, Liechtenstein and Norway.

"EEA Resolution Authority" means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"Eligible Assignee" means any Person that meets the requirements to be an assignee under Section 10.4 (subject to such consents, if any, as may be required under Section 10.4(b)(iii)).

"Eligible Currency" means any lawful currency other than Dollars that is readily available, freely transferable and convertible into Dollars in the international interbank market available to the Issuing Bank in such market and as to which a Dollar Equivalent may be readily calculated. If, after the designation by the Issuing Bank of any currency as an Alternative Currency, any change in currency controls or exchange regulations or any change in the national or international financial, political or economic conditions are imposed in the country in which such currency is issued, results in, in the reasonable opinion of the Issuing Bank, (a) such currency no longer being readily available, freely transferable and convertible into Dollars, (b) a Dollar Equivalent no longer being readily calculable with respect to such currency, (c) providing such currency is no longer practicable for the Issuing Bank in its reasonable business judgment or (d) such currency no longer being a currency in which the Issuing Bank is willing to issue or extend Letters of Credit in its reasonable business judgment (each of (a), (b), (c), and (d) a "Disqualifying Event"), then the Issuing Bank shall promptly notify the Administrative Agent, the Lenders and the Borrower thereof, and such country's currency shall no longer be an Alternative Currency until such time as the Disqualifying Event(s) no longer exist.

"Environmental Laws" means any and all applicable foreign, Federal, state, local or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees, legally binding requirements of any Governmental Authority or other Requirements of Law (including common law) regulating, relating to or imposing liability or standards of conduct concerning protection of human health (to the extent relating to exposure to harmful or deleterious substances) or the environment, as now or may at any time hereafter be in effect.

"Environmental Liability" means any liability, contingent or otherwise (including any liability for damages, costs of environmental investigation and remediation, costs of administrative oversight, fines, natural resource damages, penalties or indemnities), of the Borrower or any of its Subsidiaries directly or indirectly resulting from or based upon (i) any actual or alleged violation of any Environmental Law, (ii) the generation, use, handling, transportation, storage, treatment, disposal, release, or threatened release of any Materials of Environmental Concern, (iii) any actual or alleged exposure to any Materials of Environmental Concern, or (iv) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.



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"ERISA" means the Employee Retirement Income Security Act of 1974, as amended from time to time.

"ERISA Affiliate" means any trade or business (whether or not incorporated) that, together with any Loan Party, is treated as a single employer under Section 414 of the Code or Title IV of ERISA.

"ERISA Event" means (a) any Reportable Event; (b) the existence with respect to any Plan of a non-exempt Prohibited Transaction; (c) any failure by any Single Employer Plan to satisfy the minimum funding standards (for purposes of Sections 412 or 430 of the Code or Section 302 of ERISA) applicable to such Single Employer Plan, whether or not waived; (d) a determination that any Single Employer Plan is in "at risk" status (within the meaning of Section 430 of the Code or Title IV of ERISA); (e) the institution by the PBGC of any proceeding to terminate a Plan or the incurrence by any Loan Party or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Single Employer Plan, including but not limited to the imposition of any Lien in favor of the PBGC or any Single Employer Plan; (f) the incurrence by any Loan Party or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by any Loan Party or any of its ERISA Affiliates of any notice, or the receipt by any Multiemployer Plan from any Loan Party or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, Insolvent, or in endangered or critical status (within the meaning of Section 432 of the Code or Section 305 or Title IV of ERISA).

"Escrow Funding Arrangement" means any escrow arrangement relating to Indebtedness permitted to be incurred under this Agreement pursuant to which the Net Cash Proceeds of such Indebtedness are subject to customary escrow arrangements as reasonably determined by the Borrower pursuant to which, among other things, (a) the providers of such Indebtedness (or an agent or trustee on their behalf) (the " Escrow Indebtedness Providers") may, but are not required to, have "control" within the meaning of the UCC with respect to such escrowed Net Cash Proceeds and (b) such Escrow Indebtedness Providers agree that in the event that specified conditions subsequent are not satisfied by a date certain, such escrowed Net Cash Proceeds shall be promptly applied to the repayment of such Indebtedness.

"Erroneous Payment" has the meaning assigned to it in Section 9.15(a).

"Erroneous Payment Deficiency Assignment" has the meaning specified in Section 9.15(d).

"Erroneous Payment Impacted Class" has the meaning specified in Section 9.15(d).

"Erroneous Payment Return Deficiency" has the meaning specified in Section 9.15(d).

"EU Bail-In Legislation Schedule" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.



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"Euro" means the single currency of the participating member states of the European Union.

"Eurodollar", when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, bears interest at a rate determined by reference to the Adjusted LIBO Rate.

"Event of Default" has the meaning set forth in Section 8.1.

"Exchange Act" means the Securities Exchange Act of 1934, as amended and in effect from time to time.

"Exchange Rate" shall mean, on any day, with respect to any Alternative Currency, the rate at which such Alternative Currency may be exchanged into Dollars, as set forth at approximately 11:00 a.m. (London time) on such date on the Reuters World Currency Page for such Alternative Currency. In the event that such rate does not appear on any Reuters World Currency Page, the Exchange Rate with respect to such Alternative Currency shall be determined by reference to such other publicly available service for displaying exchange rates as may be selected by the Administrative Agent or, in the event no such service is selected, such Exchange Rate shall instead be calculated on the basis of the arithmetical average of the spot rates of exchange of the Administrative Agent for such Alternative Currency on the London market at 11:00 a.m. (London time) on such date for the purchase of Dollars with such Alternative Currency, for delivery two (2) Business Days later; provided, that if at the time of any such determination, for any reason, no such spot rate is being quoted, the Administrative Agent may use any reasonable method it deems appropriate to determine such rate, and such determination shall be conclusive absent manifest error.

"Excluded Property" means (a) property owned by any Excluded Subsidiary, Foreign Subsidiary or U.S. Pass Through Foreign Holdco; (b) any property to the extent that a grant of a security interest in such property pursuant to the Security Documents is prohibited by any Requirement of Law of a Governmental Authority, requires a consent not obtained of any Governmental Authority pursuant to such Requirement of Law or is prohibited by, or constitutes a breach or default under or results in the termination of or requires any consent not obtained under, any contract, license, agreement, instrument or other document evidencing or giving rise to such property or, in the case of any Investment Property, Pledged Stock or Pledged Note (as such terms are defined in the Guarantee and Collateral Agreement), any applicable shareholder or similar agreement, except to the extent that such Requirement of Law or the term in such contract, license, agreement, instrument or other document or shareholder or similar agreement providing for such prohibition, breach, default or termination or requiring such consent is ineffective under applicable law; (c) Vehicles (as defined in the Guarantee and Collateral Agreement) and title documents therefor; (d) any Capital Stock held by a Loan Party in (i) a joint venture, (ii) any direct holding company of one or more joint ventures; provided that such holding company does not engage in any business or own any assets other than owning the Capital Stock of joint ventures and (iii) any Excluded Subsidiary (other than U.S. Pass Through Foreign Holdcos which shall be governed by clause (g) in this definition of "Excluded Property"); (e) Excluded Real Property; (f) interests in real property leased, subleased or licensed to any of the Loan Parties; (g) 35% of the total outstanding voting Capital Stock of each new and existing Foreign Subsidiary and of each new and existing U.S. Pass Through Foreign Holdco; (h) any accounts (including all funds or assets held therein or security entitlements or other rights in respect of such account or the funds and/or assets held therein) subject to an Escrow Funding Arrangement; (i) any intent-to-use trademark applications to the extent and for so long as creation of a security interest therein would result in the loss by the pledgor thereof of any material rights therein or impair the validity thereof; (j) all Deposit Accounts (as defined in the UCC)



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that are used for solely and exclusively for the purpose of funding payroll, employee benefit, tax withholding or other fiduciary obligations to employees pursuant to applicable Requirements of Law or in the ordinary course of business; and (k) property owned on the Closing Date or thereafter acquired that is subject to a Lien permitted under Section 7.2(g) or securing a Capital Lease Obligation if the contract or other agreement in which such Lien is granted (or the documentation providing for such purchase money interest or Capital Lease Obligation) validly prohibits the creation of any other Lien on such property.

"Excluded Real Property" means real property owned by the Loan Parties as of the Closing Date and listed on Schedule 1.1(a); provided the Borrower may at any time, by written notice to the Administrative Agent, remove any or all real property from Schedule 1.1(a) (and at the time of such removal, such removed real property shall no longer constitute "Excluded Real Property").

"Excluded Subsidiary" means (a) each direct or indirect Domestic Subsidiary of a Foreign Subsidiary, (b) each U.S. Pass Through Foreign Holdco, (c) each Unrestricted Subsidiary, (d) each Immaterial Subsidiary, and (e) each Subsidiary that is not a wholly owned Subsidiary of the Borrower or a Guarantor.

"Excluded Swap Obligation" means, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the Guarantee Obligation of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or any Guarantee Obligation thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor's failure for any reason to constitute an "eligible contract participant" as defined in the Commodity Exchange Act at the time the Guarantee Obligation of such Guarantor becomes effective with respect to such related Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guarantee Obligation or security interest is or becomes illegal.

"Excluded Taxes" means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 2.25) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.20, amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient's failure to comply with Section 2.20(g) and (d) any withholding Taxes imposed under FATCA.

"Extension Agreement" has the meaning specified in Section 2.27(b).

"Extension Offer" has the meaning specified in Section 2.27(a).



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"Extension Permitted Amendment" means the terms of an amendment to this Agreement and the other Loan Documents, effected pursuant to an Extension Agreement in connection with an Extension Offer pursuant to Section 2.27, providing for an extension of the Maturity Date applicable to the Accepting Lenders' Loans and/or scheduled maturity dates and/or commitments and/or Loans of the applicable Extension Request Facility (such Loans or commitments being referred to as the "Extended Loans" or "Extended Commitments", as applicable) and, in connection therewith, as applicable (a) an increase or decrease in the rate of interest (including through fixed interest rates and changes to the interest rate margins or rate floors) accruing on such Extended Loans, (b) in the case of Extended Loans that are Term Loans of any Facility, a modification of the scheduled amortization applicable thereto; provided that the weighted average life to maturity of such Extended Loans shall be no shorter than the remaining weighted average life to maturity (determined at the time of such Extension Offer) of the Term Loans of such Facility, (c) a modification of voluntary or mandatory prepayments applicable thereto; provided that in the case of Extended Loans that are Term Loans, such requirements may provide (i) that such Extended Loans may participate in any mandatory prepayments on a pro rata basis (or on a basis that is less than a pro rata basis) with the Loans of the applicable Extension Request Facility and any other outstanding facilities, but may not provide for mandatory prepayment requirements that are more favorable to the Extended Loans than those applicable to the Loans of the applicable Extension Request Facility and (ii) that voluntary prepayments may be allocated as directed by the Borrower among the outstanding facilities, (d) an increase or decrease in the fees payable to, or the inclusion of new fees or premiums to be payable to, the Accepting Lenders in respect of such Extension Offer or their Extended Loans or Extended Commitments and/or (e) an addition of any affirmative or negative covenants or other terms, provided that any such additional covenant or terms with which the Borrower and its Subsidiaries shall be required to comply prior to the latest scheduled maturity date of any Facility in effect immediately prior to such Extension Permitted Amendment for the benefit of the Accepting Lenders providing such Extended Loans or Extended Commitments shall also be for the benefit of all other Lenders.

"Extension Request Facility" has the meaning defined in Section 2.27(a).

"Facility" means (a) the Revolving Facility, (b) any Incremental Facility and (c) any other credit facility made available to the Borrower pursuant to this Agreement (including, without limitation, any Replacement Facilities).

"FATCA" means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.

"Federal Funds Rate" means, for any day, the rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with member banks of the Federal Reserve System, as published by the Federal Reserve Bank of New York on the next succeeding Business Day or, if such rate is not so published for any Business Day, the Federal Funds Rate for such day shall be the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day on such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by the Administrative Agent. For purposes of this Agreement, the Federal Funds Rate shall not be less than zero percent (0%).



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"Fee Letter" means that certain fee letter, dated as of the date hereof, executed by Truist Securities, Inc. (as successor in interest to SunTrust Robinson Humphrey, Inc.) and Truist Bank and accepted by the Borrower.

"First Amendment Effective Date" means December 10, 2021.

"Floor" means the benchmarka rate floor, if any, provided in this Agreement initially (as of the execution of this Agreement, the modification, amendment or renewal of this Agreement or otherwise) with respect to the Adjusted LIBO Rate. As of the First Amendment Effective Date, the Floor isof interest equal to zero percent (0.00%).

"Foreign Lender" means a Lender that is not a U.S. Person.

"Foreign Subsidiary" means any Subsidiary of the Borrower that is not a Domestic Subsidiary (including, for the avoidance of doubt, any Subsidiary of the Borrower that is a controlled foreign corporation under Section 957 of the Code).

"GAAP" means generally accepted accounting principles in the United States as in effect from time to time.

"Governmental Authority" means the government of the United States or any other nation, or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

"Group Members" means the collective reference to the Borrower and its Restricted Subsidiaries.

"Guarantee and Collateral Agreement" means the Guarantee and Collateral Agreement, dated as of the date hereof and substantially in the form of Exhibit C, made by the Loan Parties in favor of the Administrative Agent for the benefit of the Secured Parties.

"Guarantee Obligation" means, as to any Person (the "guaranteeing person"), any obligation, including a reimbursement, counterindemnity or similar obligation, of the guaranteeing Person that guarantees or in effect guarantees, or which is given to induce the creation of a separate obligation by another Person (including any bank under any letter of credit) that guarantees or in effect guarantees, any Indebtedness, leases, dividends or other obligations (the "primary obligations") of any other third Person (the "primary obligor") in any manner, whether directly or indirectly, including any obligation of the guaranteeing person, whether or not contingent, (a) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (b) to advance or supply funds (i) for the purchase or payment of any such primary obligation or (ii) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (c) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (d) otherwise to assure or hold harmless the owner of any such primary obligation against loss in respect thereof; provided, however, that the term Guarantee Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business. The amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the lower of (A) an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee



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Obligation is made and (B) the maximum amount for which such guaranteeing person may be liable pursuant to the terms of the instrument embodying such Guarantee Obligation, unless such primary obligation and the maximum amount for which such guaranteeing person may be liable are not stated or determinable, in which case the amount of such Guarantee Obligation shall be such guaranteeing person's maximum reasonably anticipated liability in respect thereof as determined by the Borrower in good faith.

"Guarantor" means each Domestic Subsidiary of the Borrower other than (a) Excluded Subsidiaries and (b) joint ventures.

"Hedging Obligations" of any Person shall mean any and all obligations of such Person, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired under (i) any and all Hedging Transactions, (ii) any and all cancellations, buy backs, reversals, terminations or assignments of any Hedging Transactions and (iii) any and all renewals, extensions and modifications of any Hedging Transactions and any and all substitutions for any Hedging Transactions.

"Hedging Transaction" of any Person shall mean (a) any transaction (including an agreement with respect to any such transaction) now existing or hereafter entered into by such Person that is a rate swap transaction, swap option, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap or option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction, currency option, spot transaction, credit protection transaction, credit swap, credit default swap, credit default option, total return swap, credit spread transaction, repurchase transaction, reverse repurchase transaction, buy/sell-back transaction, securities lending transaction, or any other similar transaction (including any option with respect to any of these transactions) or any combination thereof, whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a "Master Agreement"), including any such obligations or liabilities under any Master Agreement.

"Honor Date" has the meaning specified in Section 2.22(d).

"Immaterial Subsidiary" means any Subsidiary that (a) did not, as of the last day of the fiscal quarter of the Borrower most recently ended for which financial statements have been (or were required to be) delivered pursuant to Section 5.1(a) or Section 5.1(b), have assets with a value in excess of 5.0% of the Consolidated Assets or revenues representing in excess of 5.0% of total revenues of the Borrower and the Restricted Subsidiaries on a consolidated basis as of such date, and (b) taken together with all Immaterial Subsidiaries as of such date, did not have assets with a value in excess of 10% of Consolidated Assets or revenues representing in excess of 10.0% of total revenues of the Borrower and the Subsidiaries on a consolidated basis as of such date; provided that if the Consolidated Assets or revenues of any or all Immaterial Subsidiaries shall at any time exceed the limits set forth above, then the Borrower shall cause one or more Immaterial Subsidiaries to become a Guarantor in accordance with Section 5.9(c) so that such limits are not exceeded. Each Immaterial Subsidiary as of the Closing Date shall be set forth on Schedule 1.1(b).

"Incremental Amendment" has the meaning specified in Section 2.23(b).



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"Incremental Facility" has the meaning specified in Section 2.23(a).

"Incremental Facility Closing Date" has the meaning specified in Section 2.23(b).

"Incremental Revolving Facility" has the meaning specified in Section 2.23(a).

"Incremental Term Facility" has the meaning specified in Section 2.23(a).

"Indebtedness" means, of any Person at any date, without duplication, (a) all indebtedness of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of property or services, which would, in accordance with GAAP be shown on the liability side of the balance sheet, (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (e) all Capital Lease Obligations of such Person, (f) all obligations of such Person, contingent or otherwise, as an account party or applicant under or in respect of acceptances, letters of credit, surety bonds or similar arrangements, (g) all Guarantee Obligations of such Person in respect of obligations of the kind referred to in clauses (a) through (f) above, (h) all obligations of the kind referred to in clauses (a) through (g) above secured by (or for which the holder of such obligation has an existing right, contingent or otherwise, to be secured by) any Lien on property (including accounts and contract rights) owned by such Person, whether or not such Person has assumed or become liable for the payment of such obligation; provided, if such Person has not assumed or become liable for such obligation, the amount of such Indebtedness shall be deemed to be the lesser of the fair market value of such property or the obligation being secured thereby, and (i) for the purposes of Section 8.1(e) only, all obligations of such Person in respect of Swap Agreements (provided the amount of such obligations shall be deemed to be the Net Mark-to-Market Exposure with respect thereto), but excluding (i) trade and other accounts payables incurred in the ordinary course of such Person's business, (ii) accrued expenses and deferred compensation arrangements in the ordinary course of such Person's business, (iii) advance payments in the ordinary course of such Person's business, and (iv) conditional payment obligations (including, for the avoidance of doubt, earn-outs, post-closing purchase price adjustments and other similar contingent payments). The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person's ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness expressly provide that such Person is not liable therefor.

"Indemnified Taxes" means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Loan Party under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.

"Indian Rupees" means the lawful currency of India.

"Insolvency" mean, with respect to any Multiemployer Plan, the condition that such Plan is insolvent within the meaning of Section 4245 of ERISA.

"Insolvent" mean a condition of Insolvency.



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"Intellectual Property" means, the collective reference to all rights, priorities and privileges relating to intellectual property, whether registered or unregistered, arising under United States, multinational or foreign laws or otherwise, including copyrights, copyright licenses, mask works, inventions, designs, patents, patent licenses, trademarks, tradenames, domain names and other source indicators, trademark licenses, technology, trade secrets, know-how and processes, and all other intellectual property rights, and all rights to sue at law or in equity for any infringement or other impairment thereof, including the right to receive all proceeds and damages therefrom.

"Interest Coverage Ratio" means, for any period, the ratio of (a) Consolidated EBITDA for such period to (b) Consolidated Interest Expense paid or payable in cash for such period.

"Interest Period" means with respect to any EurodollarSOFR Borrowing, a period of one, three or six months (in each case, subject to the availability thereof); provided that:

(i) the initial Interest Period for such Borrowing shall commence on the date of such Borrowing (including the date of any conversion from a Borrowing of another Type), and each Interest Period occurring thereafter in respect of such Borrowing shall commence on the day on which the next preceding Interest Period expires;

(ii) if any Interest Period would otherwise end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day, unless such Business Day falls in another calendar month, in which case such Interest Period would end on the immediately preceding Business Day;

(iii) any Interest Period which begins on the last Business Day of a calendar month or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period shall end on the last Business Day of such calendar month; and

(iv) no Interest Period may extend beyond the Maturity Date; and

(v) no tenor that has been removed from this definition pursuant to Section 2.16(e) shall be available for specification in such Notice of Borrowing or Notice of Conversion/Continuation.

"Investments" means an advance, loan, extension of credit (by way of guaranty or otherwise, but excluding trade debt incurred in the ordinary course of business) or capital contribution to, or purchase of any Capital Stock, bonds, notes, loans, debentures or other debt securities of, or any assets constituting a business unit of, or any other similar investment in, any Person. The amount of any Investment by any Person on any date of determination shall be the acquisition price of the gross assets acquired (including any liability assumed by such Person to the extent such liability would be reflected on a balance sheet prepared in accordance with GAAP) plus all additional capital contributions or purchase price paid in respect thereof, without any adjustments for increases or decreases in value, or write-ups, write-downs or write-offs with respect to such Investment minus the amount of all cash returns of principal or capital thereon, cash dividends thereon and other cash returns on investment thereon or liabilities expressly assumed by another Person (other than a Group Member) in connection with the sale of such Investment. Whenever the term "outstanding" is used in this Agreement with reference to an Investment, it shall take into account the matters referred to in the preceding sentence.

"IRS" means the United States Internal Revenue Service.



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"ISDA Definitions" means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time by the International Swaps and Derivatives Association, Inc. or such successor thereto.

"Issuing Bank" means Truist Bank in its capacity as the issuer of Letters of Credit pursuant to Section 2.22, or such other Lender as the Borrower may from time to time select as an Issuing Bank hereunder pursuant to Section 2.22; provided that such Lender has agreed to be an Issuing Bank. At any time there is more than one Issuing Bank, any singular references to Issuing Bank shall mean any Issuing Bank, each Issuing Bank, the Issuing Bank that has issued the applicable Letter of Credit, or all Issuing Banks, as the context may require.

"Japanese Yen" means the lawful currency of Japan.

"Junior Indebtedness" means (a) unsecured debt securities issued by the Borrower or any Restricted Subsidiary, (b) unsecured term loans borrowed by the Borrower or any Restricted Subsidiary and (c) Indebtedness of any Restricted Subsidiary which is subordinated in right of payment to any Obligations. For the avoidance of doubt, Junior Indebtedness does not include (i) intercompany Indebtedness and (ii) Loans.

"LC Commitment" means that portion of the Aggregate Revolving Commitments that may be used by the Borrower for the issuance of Letters of Credit in an aggregate face amount not to exceed the LC Commitment Amount.

"LC Commitment Amount" means an amount equal to $35,000,000.

"LC Disbursement" means a payment made by the Issuing Bank pursuant to a Letter of Credit.

"LC Documents" means all applications, agreements and instruments relating to the Letters of Credit but excluding the Letters of Credit.

"LC Exposure" means, at any time, the sum of (i) the Dollar Equivalent of the aggregate undrawn amount of all outstanding Letters of Credit at such time, plus (ii) the Dollar Equivalent of the aggregate amount of all LC Disbursements that have not been reimbursed by or on behalf of the Borrower at such time. The LC Exposure of any Lender shall be its Pro Rata Share of the total LC Exposure at such time. Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the Dollar Equivalent of the stated amount of such Letter of Credit in effect at such time; provided, that with respect to any Letter of Credit that, by its terms or any document related thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the Dollar Equivalent of the maximum stated amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time.

"Left Lead Arranger" means Truist Securities, Inc., in its capacity as the left lead arranger and book runner.

"Lender-Related Hedge Provider" means any Person that, at the time it enters into a Hedging Transaction with any Loan Party, (i) is a Lender or an Affiliate of a Lender and (ii) except when the Lender-Related Hedge Provider is Truist Bank or any of its Affiliates, has provided prior written



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notice to the Administrative Agent which has been acknowledged by the Borrower of (x) the existence of such Hedging Transaction and (y) the methodology to be used by such parties in determining the obligations under such Hedging Transaction from time to time. In no event shall any Lender-Related Hedge Provider acting in such capacity be deemed a Lender for purposes hereof to the extent of and as to Hedging Obligations except that each reference to the term "Lender" in Article IX and Section 10.3(b) shall be deemed to include such Lender-Related Hedge Provider. In no event shall the approval of any such Person in its capacity as Lender-Related Hedge Provider be required in connection with the release or termination of any security interest or Lien of the Administrative Agent.

"Lenders" has the meaning set forth in the introductory paragraph hereof and shall include, where appropriate, the Swingline Lender, each Additional Lender, and each Replacement Lender.

"Letter of Credit" means any stand-by letter of credit issued pursuant to Section 2.22 by the Issuing Bank for the account of the Borrower pursuant to the LC Commitment.

"LIBOR" has the meaning specified in clause (a) of the definition of Adjusted LIBO Rate.

"Lien" means any mortgage, pledge, security interest, lien (statutory or otherwise), charge, encumbrance, hypothecation, assignment, deposit arrangement, or other arrangement having the practical effect of any of the foregoing or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever, in each case, in the nature of security (including any conditional sale or other title retention agreement and any capital lease having substantially the same economic effect as any of the foregoing).

"Limited Condition Acquisition" means any Acquisition the consummation of which by the Borrower or any Subsidiary is not expressly conditioned on the availability of, or on obtaining, third party financing.

"Loan Documents" means, collectively, this Agreement, the Security Documents, the LC Documents, the Fee Letter, any promissory notes issued hereunder, any and all other instruments, agreements, documents and writings executed in connection with any of the foregoing which the Borrower and the Administrative Agent agree in writing is a "Loan Document", and any amendment, amendment and restatement, waiver, supplement or other modification to any of the foregoing.

"Loan Parties" means the Borrower and the Guarantors.

"Loans" means all Revolving Loans and Swingline Loans in the aggregate or any of them, as the context shall require, and shall include, where appropriate, any loan made pursuant to Section 2.23.

"Market Intercreditor Agreement" means an intercreditor agreement the terms of which are consistent with market terms governing security arrangements for the sharing of liens or arrangements relating to the distribution of payments, as applicable, at the time the intercreditor agreement is proposed to be established in light of the type of Indebtedness subject thereto.

"Material Acquisition" means any Permitted Acquisition which involves aggregate consideration in excess of $200,000,000.



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"Material Adverse Effect" means a material adverse effect on (a) the business, property, operations or financial condition of the Borrower and its Restricted Subsidiaries, taken as a whole or (b) the validity or enforceability of this Agreement or any of the other Loan Documents or the material rights or remedies of the Administrative Agent or the Lenders hereunder or thereunder; provided, however, during the period from the Closing Date to one (1) year after the Closing Date, a Material Adverse Effect shall not be deemed to exist solely as a result of the coronavirus disease known as COVID-19 to the extent that the impacts of COVID-19 on the business, property, operations or financial condition of the Borrower and its Restricted Subsidiaries, taken as a whole, do not disproportionately impact the Borrower and its Restricted Subsidiaries, taken as a whole, relative to other similarly situated companies in the same industry as the Borrower that are operating in the United States.

"Material Transaction" means (a) any Acquisition or other Investment that results in a Person becoming a Restricted Subsidiary, (b) any Disposition (x) that results in a Restricted Subsidiary ceasing to be a Subsidiary of the Borrower or (y) of a business, business unit, line of business or division of the Borrower or a Restricted Subsidiary, or (c) any operational change, including any restructuring or costs savings initiative, consummated or undertaken by the Borrower or a Restricted Subsidiary.

"Materials of Environmental Concern" means any gasoline or petroleum (including crude oil or any fraction thereof) or petroleum products or any hazardous or toxic substances, materials or wastes, defined or regulated as such in or under any Environmental Law, including asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.

"Maturity Date" means the earliest of (i) December 10, 2026, (ii) the date on which the Aggregate Revolving Commitments are terminated pursuant to Section 2.8 and (iii) the date on which all amounts outstanding under this Agreement have been declared or have automatically become due and payable (whether by acceleration or otherwise).

"Maximum Rate" has the meaning specified in Section 10.12.

"Modified Leverage Period" has the meaning specified in Section 6.1.

"Moody's" means Moody's Investors Service, Inc.

"Mortgages" means, collectively, each mortgage, deed of trust, trust deed, security deed, debenture, deed of immovable hypothec, deed to secure debt or other real estate security documents delivered by any Loan Party to the Administrative Agent from time to time, all in form and substance satisfactory to the Administrative Agent.

"Multiemployer Plan" means a Plan that is a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

"Net Cash Proceeds" means, (a) in connection with any Disposition, the proceeds thereof in the form of cash and Cash Equivalents (including any such proceeds received by way of deferred payment of principal pursuant to a note or installment receivable or purchase price adjustment receivable or otherwise, but only as and when received), net of (i) attorneys' fees, accountants' fees, investment banking fees, amounts required to be applied to the repayment of Indebtedness secured by a Lien expressly permitted hereunder on any asset that is the subject of such Disposition (other than any Lien created pursuant to a Security Document) and other third-party fees and expenses actually incurred in connection therewith and (ii) Taxes paid or reasonably estimated to be payable as a result of such Disposition (after taking into account any available tax credits or deductions and any tax sharing



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arrangements) and (b) in connection with any issuance or sale of Capital Stock or any incurrence of Indebtedness, the cash proceeds received from such issuance or incurrence, net of attorneys' fees, investment banking fees, accountants' fees, underwriting discounts and commissions and other customary fees and expenses actually incurred in connection therewith and, in the case of any Indebtedness that constitutes Permitted Convertible Indebtedness, the net cost of any Permitted Call Spread Transaction executed substantially concurrently with the pricing of such Permitted Convertible Indebtedness.

"Net Mark-to-Market Exposure" of any Person shall mean, as of any date of determination with respect to any Hedging Obligation, the excess (if any) of all unrealized losses over all unrealized profits of such Person arising from such Hedging Obligation. "Unrealized losses" shall mean the fair market value of the cost to such Person of replacing the Hedging Transaction giving rise to such Hedging Obligation as of the date of determination (assuming such Hedging Transaction were to be terminated as of that date), and "unrealized profits" shall mean the fair market value of the gain to such Person of replacing such Hedging Transaction as of the date of determination (assuming such Hedging Transaction were to be terminated as of that date).

"Non-Consenting Lender" means any Lender that does not approve any consent, waiver or amendment that (i) requires the approval of all or all affected Lenders in accordance with the terms of Section 2.25 and (ii) has been approved by the Required Lenders.

"Non-Defaulting Lender" means, at any time, a Lender that is not a Defaulting Lender.

"Notice of Borrowing" means a Notice of Revolving Borrowing or a Notice of Swingline Borrowing, as context may require.

"Notice of Conversion/Continuation" has the meaning set forth in Section 2.7(b).

"Notice of Revolving Borrowing" has the meaning set forth in Section 2.3.

"Notice of Swingline Borrowing" has the meaning set forth in Section 2.4.

"Obligations" means (a) all amounts owing by the Loan Parties to the Administrative Agent, the Issuing Bank, any Lender (including the Swingline Lender) or the Arrangers pursuant to or in connection with this Agreement or any other Loan Document or otherwise with respect to any Commitment, Loan or Letter of Credit including, without limitation, all principal, interest (including any interest accruing after the filing of any petition in bankruptcy or the commencement of any insolvency, reorganization or like proceeding relating to the Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), reimbursement obligations, fees, expenses, indemnification and reimbursement payments, costs and expenses (including all fees and expenses of counsel to the Administrative Agent, the Issuing Bank and any Lender (including the Swingline Lender) incurred pursuant to this Agreement or any other Loan Document), whether direct or indirect, absolute or contingent, liquidated or unliquidated, now existing or hereafter arising hereunder or thereunder, (b) all Hedging Obligations owed by any Loan Party to any Lender-Related Hedge Provider, and (c) all Bank Product Obligations, together with all renewals, extensions, modifications or refinancings of any of the foregoing; provided, however, that with respect to any Guarantor, the Obligations shall not include any Excluded Swap Obligations.

"OFAC" means the U.S. Department of the Treasury's Office of Foreign Assets Control.



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"Other Connection Taxes" means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).

"Other Taxes" means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.25).

"Overnight Foreign Currency Rate" shall mean, for any amount payable in an Alternative Currency, the rate of interest per annum as determined by the Administrative Agent at which overnight or weekend deposits in such Alternative Currency (or if such amount due remains unpaid for more than three (3) Business Days, then for such other period of time as the Administrative Agent may elect) for delivery in immediately available and freely transferable funds would be offered by the Administrative Agent to major banks in the interbank market upon request of such major banks for such Alternative Currency as determined above and in an amount comparable to the applicable unpaid amount, plus any taxes, levies, imposts, duties, deductions, charges or withholdings imposed upon, or charged to, the Administrative Agent by any relevant correspondent bank in respect of such amount in such Alternative Currency; provided that, if the Overnight Foreign Currency Rate is less than zero, such rate shall be deemed to be zero for all purposes of this Agreement.

"Parent Company" means, with respect to a Lender, the "bank holding company" as defined in Regulation Y, if any, of such Lender, and/or any Person owning, beneficially or of record, directly or indirectly, a majority of the shares of such Lender.

"Participant" has the meaning set forth in Section 10.4(d).

"Participant Register" has the meaning set forth in Section 10.4(d).

"Patent Security Agreement" means any Patent Security Agreement executed by a Loan Party owning patents or licenses of patents in favor of the Administrative Agent for the benefit of the Secured Parties, both on the Closing Date and thereafter.

"Patriot Act" means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56, as amended and in effect from time to time.

"Payment Office" means the office of the Administrative Agent located at 303 Peachtree Street, N.E., Atlanta, Georgia 30308, or such other location as to which the Administrative Agent shall have given written notice to the Borrower and the Lenders.

"Payment Recipient" has the meaning assigned to it in Section 9.15(a).

"PBGC" means the U.S. Pension Benefit Guaranty Corporation referred to and defined in ERISA, and any successor entity performing similar functions.



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"Periodic Term SOFR Determination Day" has the meaning assigned to it in the definition of "Term SOFR".

"Permitted Acquisition" means any Acquisition by (i) the Borrower or any of its Subsidiaries of all or substantially all of the assets of a Person, or of all or substantially all of any business or division of a Person or (ii) the Borrower or any of its Subsidiaries of no less than 100% of the capital stock, partnership interests, membership interests or equity of any Person (not owned directly or indirectly by the Borrower immediately prior to giving effect to such Acquisition), in each case, to the extent that:

(a) each of the following conditions precedent shall have been satisfied:

(i) the Administrative Agent shall receive not less than ten Business Days' (or such shorter period as reasonably agreed by the Administrative Agent) prior written notice of such Acquisition (provided that such notice shall only be required for an Acquisition involving consideration in excess of $10,000,000), which notice shall include a reasonably detailed description of the proposed terms of such Acquisition;

(ii) the Borrower shall comply, and shall cause the Target to the extent applicable to comply, with the provisions of Section 5.9 of this Agreement or shall have made arrangements reasonably satisfactory to the Administrative Agent for compliance after the effectiveness of such Permitted Acquisition, as applicable; and

(iii) immediately after giving effect to such Acquisition and the incurrence of any Indebtedness in connection therewith, (A) no Event of Default shall then exist or would exist immediately after giving effect thereto, and (B) the Borrower shall be in compliance on a pro forma basis with the covenants set forth in Article VI recomputed for the most recently ended fiscal quarter of the Borrower for which financial statements have been delivered hereunder and for which information is available regarding the business being acquired; provided, however, solely with respect to a Limited Condition Acquisition, (x) no Event of Default existed as of the date the definitive acquisition agreement for such Limited Condition Acquisition is entered into and (y) the Borrower shall be in compliance on a pro forma basis as of the date the definitive acquisition agreement for such Limited Condition Acquisition is entered into with the covenants set forth in Article VI recomputed for the most recently ended fiscal quarter of the Borrower for which financial statements have been delivered hereunder and for which information is available regarding the business being acquired;

(b) such Acquisition shall not be hostile and shall have been approved by the board of directors (or other similar body) and/or the stockholders or other equityholders of the Target or the parent thereof; and

(c) any Person or assets, business or division acquired in accordance herewith shall be in the same business or lines of business (i) in which the Borrower and/or its Subsidiaries are then engaged or that are identified on Schedule 7.12 or (ii) that are reasonably related, incidental, ancillary, complementary (including related, complementary, synergistic or ancillary technologies) or similar thereto, or a reasonable extension, development or expansion thereof.



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"Permitted Bond Hedge Transaction" means any bond hedge, capped call or similar option transaction entered into in connection with the issuance of Permitted Convertible Indebtedness for the purpose or having the effect of increasing the effective conversion price of such Permitted Convertible Indebtedness.

"Permitted Call Spread Transaction" means any Permitted Bond Hedge Transaction together with, if applicable, any Permitted Warrant Transaction.

"Permitted Convertible Indebtedness" means any notes, bonds, debentures or similar instruments issued by the Borrower that are convertible into or exchangeable for (x) cash, (y) shares of the Borrower's common stock or preferred stock or other equity securities that constitute Qualified Stock or (z) a combination thereof.

"Permitted Refinancing Indebtedness" has the meaning given to such term in Section 7.1(n).

"Permitted Warrant Transaction" means any warrant issued by the Borrower concurrently with the purchase, by the Borrower, of a Permitted Bond Hedge Transaction for the purpose of offsetting the cost of such Permitted Bond Hedge Transaction.

"Person" means any natural Person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

"Plan" means, at a particular time, any employee pension benefit plan (as defined in Section 3(2) of ERISA) in respect of which a Loan Party or any ERISA Affiliate is (or, if such plan were terminated at such time, would under Section 4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA.

"Platform" means Debt Domain, Intralinks, Syndtrak or a substantially similar electronic transmission system.

"Pounds Sterling" means the lawful currency of the United Kingdom.

"Pro Rata Share" means with respect to any Class of Commitment or Loan of any Lender at any time, a percentage, the numerator of which shall be such Lender's Commitment of such Class (or if such Commitment has been terminated or expired or the Loans have been declared to be due and payable, such Lender's Revolving Credit Exposure), and the denominator of which shall be the sum of all Commitments of such Class of all Lenders (or if such Commitments have been terminated or expired or the Loans have been declared to be due and payable, all Revolving Credit Exposure of all Lenders).

"Prohibited Transaction" has the meaning specified in Section 406 of ERISA or Section 4975 of the Code.

"Properties" has the meaning specified in Section 4.16.

"PTE" means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

"Qualified Stock" means, with respect to any Person, Capital Stock of such Person which is not Disqualified Stock.



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"Recipient" means, as applicable, (a) the Administrative Agent, (b) any Lender and (c) the Issuing Bank.

"Recovery Event" means any settlement of or payment in respect of any property or casualty insurance claim or any condemnation proceeding relating to any asset of any Group Member.

"Reference Time" with respect to any setting of the then-current Benchmark means (a) if such Benchmark is the Adjusted LIBO Rate, 11:00 a.m. (London time) on the day that is two London banking days preceding the date of such setting, and (b) if such Benchmark is not the Adjusted LIBO Rate, the time determined by the Administrative Agent in its reasonable discretion.

"Refinanced Facility" has the meaning specified Section 10.2(b).

"Refinanced Revolving Facility" has the meaning specified Section 10.2(b).

"Refinanced Term Loans" has the meaning specified Section 10.2(b).

"Register" has the meaning specified in Section 10.4(c).

"Regulation D" means Regulation D of the Federal Reserve Board, as the same may be in effect from time to time, and any successor regulations.

"Regulation Y" means Regulation Y of the Federal Reserve Board, as the same may be in effect from time to time, and any successor regulations.

"Related Parties" means, with respect to any Person, such Person's Affiliates and the managers, administrators, trustees, partners, directors, officers, employees, agents, advisors or other representatives of such Person and such Person's Affiliates.

"Relevant Governmental Body" means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.

"Replacement Facility" has the meaning specified in Section 10.2(b).

"Replacement Lender" has the meaning specified in Section 2.25.

"Replacement Revolving Facility" has the meaning specified in Section 10.2(b).

"Replacement Term Loans" has the meaning specified in Section 10.2(b).

"Reportable Event" means any of the events set forth in Section 4043(c) of ERISA or the regulations thereunder, other than those events as to which the thirty day notice period is waived under PBGC regulations.

"Required Lenders" means, at any time, Lenders holding more than 50% of the aggregate outstanding Revolving Commitments at such time or, if the Lenders have no Commitments outstanding, then Lenders holding more than 50% of the aggregate outstanding Revolving Credit Exposure at such time; provided that to the extent that any Lender is a Defaulting Lender, such Defaulting Lender and all of its Revolving Commitments and Revolving Credit Exposure shall be excluded for purposes of determining Required Lenders.



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"Requirement of Law" for any Person shall mean any law, treaty, rule or regulation, or determination of a Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

"Resolution Authority" means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

"Responsible Officer" shall mean (x) with respect to certifying compliance with the financial covenants set forth in Article VI, the chief financial officer, corporate controller or the treasurer of the Borrower and (y) with respect to all other provisions, any of the chief executive officer, the president, the chief financial officer, the corporate controller, any vice president, general counsel, secretary, the treasurer or the assistant treasurer of the applicable Loan Party.

"Restricted Payment" has the meaning specified in Section 7.5.

"Restricted Subsidiary" means any Subsidiary of the Borrower that is not an Unrestricted Subsidiary.

"Revolving Commitment" means, with respect to each Lender, the commitment of such Lender to make Revolving Loans to the Borrower and to acquire participations in Letters of Credit and Swingline Loans in an aggregate principal amount not exceeding the amount set forth with respect to such Lender on Schedule II (as amended on the FirstSecond Amendment Effective Date), as such schedule may be amended pursuant to Section 2.23, or, in the case of a Person becoming a Lender after the FirstSecond Amendment Effective Date, the amount of the assigned "Revolving Commitment" as provided in the Assignment and Acceptance executed by such Person as an assignee, or the joinder executed by such Person, in each case as such commitment may subsequently be increased or decreased pursuant to the terms hereof.

"Revolving Credit Exposure" means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender's Revolving Loans, LC Exposure and Swingline Exposure.

"Revolving Facility" means the revolving credit facility made available to the Borrower pursuant to this Agreement.

"Revolving Loan" means a loan made by a Lender (other than the Swingline Lender) to the Borrower under its Revolving Commitment, which may either be a Base Rate Loan or a EurodollarSOFR Loan.

"S&P" means Standard & Poor's, a Standard & Poor's Financial Services LLC business, a subsidiary of S&P Global, Inc., and any successor thereto.

"Sanctioned Country" means, at any time, a country, region or territory that is, or whose government is, the subject or target of any Sanctions, including, without limitation, Crimea, Cuba, Iran, North Korea and Syria.



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"Sanctioned Person" means, at any time, (a) any Person that is the subject or target of any Sanctions, (b) any Person located, organized, operating or resident in a Sanctioned Country or (c) any Person owned or controlled by any such Person.

"Sanctions" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by OFAC or the U.S. Department of State, (b) the United Nations Security Council, the European Union or Her Majesty's Treasury of the United Kingdom, or (c) any other relevant sanctions authority of a jurisdiction in which the Borrower, any Subsidiary, or any Lender conduct their businesses and to which any such Person are lawfully subject.

"Screen Rate" has the meaning specified in clause (a) of the definition of Adjusted LIBO Rate.Second Amendment Effective Date" means October 5, 2022.

"Secured Parties" means the Administrative Agent, the Lenders, the Issuing Bank, the Lender-Related Hedge Providers and the Bank Product Providers.

"Security Documents" means the collective reference to the Guarantee and Collateral Agreement, all Copyright Security Agreements, all Patent Security Agreements, all Trademark Security Agreements, the Mortgages, all UCC financing statements, fixture filings and stock powers, and all other security documents hereafter delivered to the Administrative Agent granting a Lien on any property of any Person to secure the obligations and liabilities of any Loan Party under any Loan Document.

"Singapore Dollars" means the lawful currency of Singapore.

"Single Employer Plan" means any Plan that is covered by Title IV of ERISA, but that is not a Multiemployer Plan.

"SOFR" means, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day publishedas administered by the SOFR Administrator on the SOFR Administrator's Website at approximately 8:00 a.m. (New York City time) on the immediately succeeding Business Day.

"SOFR Administrator" means the Federal Reserve Bank of New York (or a successor administrator of SOFRthe secured overnight financing rate).

"SOFR Administrator's Website" means the website of the Federal Reserve Bank of New York, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to timeLoan" means a Loan that bears interest at a rate based on Adjusted Term SOFR, other than pursuant to clause (iii) of the definition of "Base Rate".

"Solvent" means, as to any Person as of any date of determination, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person, (b) the present fair saleable value of the assets such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they



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become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person's ability to pay such debts and liabilities as they mature, and (d) such Person is not engaged in a business or a transaction, and is not about to engage in a business or a transaction, for which such Person's property would constitute an unreasonably small capital. The amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

"Special Flood Hazard Area" means an area that FEMA's current flood maps indicate has at least a 1% chance of a flood equal to or exceeding the base flood elevation (a 100-year flood) in any given year.

"Subsidiary" means, as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person (exclusive of any Affiliate in which such Person has a minority ownership interest). Unless otherwise qualified, all references to a "Subsidiary" or to "Subsidiaries" in this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower or its successors.

"Swap Agreement" means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions.

"Swap Obligation" means, with respect to any Guarantor, any obligation to pay or perform under any Swap Agreement.

"Swingline Commitment" means the commitment of the Swingline Lender to make Swingline Loans in an aggregate principal amount at any time outstanding not to exceed $25,000,000.

"Swingline Exposure" means, with respect to each Lender, the principal amount of the Swingline Loans in which such Lender is legally obligated either to make a Base Rate Loan or to purchase a participation in accordance with Section 2.4, which shall equal such Lender's Pro Rata Share of all outstanding Swingline Loans.

"Swingline Lender" means Truist Bank.

"Swingline Loan" means a loan made to the Borrower by the Swingline Lender under the Swingline Commitment.

"Target" means the Person, or business or substantially all of the assets of a Person or a division of a Person, intended to be acquired in a Permitted Acquisition.



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"Taxes" means any and all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees, or charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"Term Loans" means any term loans made pursuant to this Agreement.

"Term SOFR" means, for the applicable Corresponding Tenor as of the applicable Reference Time, the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.

"Term SOFR Notice" means a notification by the Administrative Agent to the Lenders and the Borrower of the occurrence of a Term SOFR Transition Event.

"Term SOFR Transition Event" means the determination by the Administrative Agent that (a) Term SOFR has been recommended for use by the Relevant Governmental Body, (b) the administration

"Term SOFR" shall mean,

(a) for any calculation with respect to a SOFR Loan, the Term SOFR Reference Rate for a tenor comparable to the applicable Interest Period on the day (such day, the "Periodic Term SOFR Determination Day") that is two (2) U.S. Government Securities Business Days prior to the first day of such Interest Period, as such rate is published by the Term SOFR Administrator; provided, that if as of 5:00 p.m. on any Periodic Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Periodic Term SOFR Determination Day, and

(b) for any calculation with respect to a Base Rate Loan on any day, the Term SOFR Reference Rate for a tenor of one month on the day (such day, the "Base Rate Term SOFR Determination Day") that is two (2) U.S. Government Securities Business Days prior to such day, as such rate is published by the Term SOFR Administrator; provided that if as of 5:00 p.m. on any Base Rate Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Base Rate Term SOFR Determination Day.

"Term SOFR Administrator" shall mean the CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR is administratively feasible forReference Rate selected by the Administrative Agent, or in its reasonable discretion).



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"Term SOFR Reference Rate" shall mean the rate per annum determined by the Administrative Agent, in consultation with the Borrower, shall have established another convention in its reasonable discretion and (c) a Benchmark Transition Event has previously occurred resulting in a Benchmark Replacement in accordance with Section 2.16(b)-(f) that is not Term as the forward-looking term rate based on SOFR.

"Term SOFR Adjustment" means 0.10% per annum.

"Term SOFR Reference Rate" shall mean the forward-looking term rate based on SOFR.

"Trademark Security Agreement" means any Trademark Security Agreement executed by a Loan Party owning registered trademarks or applications for trademarks in favor of the Administrative Agent for the benefit of the Secured Parties, both on the Closing Date and thereafter.

"Type", when used in reference to a Loan or a Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted LIBO RateTerm SOFR or the Base Rate.

"UK Financial Institution" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"UK Resolution Authority" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"Unadjusted Benchmark Replacement" means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

"Uniform Commercial Code" or "UCC" means the Uniform Commercial Code as in effect from time to time in the State of New York; provided that, if by reason of mandatory provisions of law, perfection, or the effect of perfection or non-perfection, of a security interest in any Collateral or the availability of any remedy hereunder is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, "Uniform Commercial Code" means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection or availability of such remedy, as the case may be.

"United States" or "U.S." means the United States of America.

"Unrestricted Subsidiary" means any Subsidiary of the Borrower that is designated by the Borrower as an Unrestricted Subsidiary on or after the Closing Date pursuant to Section 5.10. Each Unrestricted Subsidiary as of the Closing Date shall be set forth on Schedule 1.1(c).

"U.S. Government Securities Business Day" shall mean any day except for (i) a Saturday, (ii) a Sunday or (iii) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.



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"U.S. Pass Through Foreign Holdco" means any Domestic Subsidiary substantially all of the assets of which consist of Capital Stock of one or more Foreign Subsidiaries that are controlled foreign corporations within the meaning of Section 957(a) of the Code and/or other U.S. Pass Through Foreign Holdcos.

"U.S. Person" means any Person that is a "United States person" as defined in Section 7701(a)(30) of the Code.

"U.S. Tax Compliance Certificate" has the meaning set forth in Section 2.20(e)(ii).

"Withdrawal Liability" means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.

"Withholding Agent" means the Borrower, any other Loan Party or the Administrative Agent, as applicable.

"Write-Down and Conversion Powers" means (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

Section 1.2 Classifications of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and referred to by Class (e.g., "Revolving Loan" or "Swingline Loan") or by Type (e.g., "EurodollarSOFR Loan" or "Base Rate Loan") or by Class and Type (e.g. "Revolving EurodollarSOFR Loan"). Borrowings also may be classified and referred to by Class (e.g., "Revolving Borrowing") or by Type (e.g., "EurodollarSOFR Borrowing") or by Class and Type (e.g., "Revolving EurodollarSOFR Borrowing").

Section 1.3 Accounting Terms and Determination.

(a) Unless otherwise defined or specified herein, all accounting terms used herein shall be interpreted, all accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder shall be prepared, in accordance with GAAP as in effect from time to time; provided that if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn by the Borrower or the Administrative Agent (or the Required Lenders), as the case may be, or such provision amended in accordance herewith.



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(b) When determining whether a Default or Event of Default pursuant to Section 8.1 shall be in existence after giving pro forma effect to a certain event, the covenant levels to be used in making such determination shall be those in effect as of the last day of the most recent fiscal quarter of the Borrower for which financial reports are required to have been delivered pursuant to Section 5.1.

(c) Notwithstanding any other provision contained herein, (a) all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made, without giving effect to any election under Accounting Standards Codification Section 825-10 (or any other Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of any Loan Party or any Subsidiary of any Loan Party at "fair value", as defined therein and (b) for all purposes of this Agreement and the other Loan Documents, including negative covenants, financial covenants and component definitions, GAAP will be deemed to treat operating leases and Capitalized Leases in a manner consistent with the treatment under GAAP as in effect prior to the issuance by the Financial Accounting Standards Board on February 25, 2016 of Accounting Standards Update No. 2016-02. In addition, in the case of any Permitted Convertible Indebtedness for which the embedded conversion obligation must be settled by paying solely cash, so long as substantially concurrently with the offering of such Permitted Convertible Indebtedness, the Borrower enters into a cash-settled Permitted Bond Hedge Transaction relating to such Permitted Convertible Indebtedness, notwithstanding any other provision contained herein, for so long as such Permitted Bond Hedge Transaction (or a portion thereof corresponding to the amount of outstanding Permitted Convertible Indebtedness) remains in effect, all computations of amounts and ratios referred to herein shall be made as if the amount of Indebtedness represented by such Permitted Convertible Indebtedness were equal to the face principal amount thereof without regard to any mark-to-market derivative accounting for such Indebtedness.

(d) For purposes of calculating the maximum amount of Indebtedness permitted to be incurred under Sections 7.1(e), (k) or (o) or Restricted Payments permitted to be made under Section 7.5(e) or declared under Section 7.5(d), in each case solely in respect of the period between the signing of a definitive agreement for a Limited Condition Acquisition and consummation (or earlier termination or abandonment) of such Limited Condition Acquisition, such calculations shall be made giving pro forma effect to such Limited Condition Acquisition (including, for the avoidance of doubt, both (x) Consolidated EBITDA of or attributable to the target companies or assets associated with any such Limited Condition Acquisition and (y) Indebtedness for borrowed money the Borrower expects to incur to finance the Limited Condition Acquisition (if any)), as estimated or determined by the Borrower in good faith.

Section 1.4 Terms Generally. The definitions of terms herein and in the other Loan Documents shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include", "includes" and "including" shall be deemed to be followed by the phrase "without limitation". The word "will" shall be construed to have the same meaning and effect as the word "shall". In the computation of periods of time from a specified date to a later specified date, the word "from" means "from and including" and the word "to" means "to but excluding". The word "or" is not exclusive. The word "year" shall refer (i) in the case of a leap year, to a year of 366 days, and (ii) otherwise, to a year of 365 days. Unless the context requires otherwise (i) any definition of or reference to any agreement, instrument or other document herein or in any other Loan Document shall be construed as referring to such agreement, instrument or other document as it was originally executed or as it may from time to time be amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document), (ii) any reference herein or in any other Loan Document to any Person shall be construed to include such



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Person's successors and permitted assigns, (iii) the words "hereof", "herein" and "hereunder" and words of similar import shall be construed to refer to this Agreement as a whole and not to any particular provision hereof, (iv) all references to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles, Sections, Exhibits and Schedules to this Agreement, (v) all references to a specific time shall be construed to refer to the time in the city and state of the Administrative Agent's principal office, unless otherwise indicated and (vi) any definition of or reference to any law shall include all statutory and regulatory provisions consolidating, amending, or interpreting any such law and any reference to or definition of any law or regulation, unless otherwise specified, shall refer to such law or regulation as amended, modified or supplemented from time to time.

Section 1.5 Divisions. For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction's laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its equity interests at such time.

Section 1.6 Benchmark Rates. LIBOR is intended to represent the rate at which contributing banks could obtain short-term borrowings from one another in the London interbank market. On March 5, 2021, the Financial Conduct Authority (" FCA"), the regulatory supervisor of LIBOR's administrator, announced in a public statement the future cessation of the 35 LIBOR benchmark settings currently published by ICE Benchmark Administration. This public statement constitutes a Benchmark Transition Event. To the extent the Maturity Date goes beyond the cessation dates indicated in the FCA's announcement, an alternate rate of interest will be determined at the appropriate time in accordance with Section 2.16(b) for any applicable tenors of LIBOR for deposits in U.S. Dollars. Upon the occurrence of a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-in Election, Section 2.16(b) and (c) provide the mechanism for determining an alternative rate of interest. The Administrative Agent will promptly notify the Borrower, pursuant to Section 2.16(e), of any change to the reference rates upon which the interest rates on Eurodollar Loans are based. However, the Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, (a) the continuation of, administration of, submission of, calculation of or any other matter related to LIBOR for deposits in U.S. Dollars or other rates in the definition of "the Base Rate, the Term SOFR Reference Rate, Adjusted LIBO Rate"Term SOFR or with respect toTerm SOFR, or any component definition thereof or rates referred to in the definition thereof, or any alternative or, successor rate thereto, or replacement rate thereofthereto (including (i) any such alternative, successor or replacement rate implemented pursuant to Section 2.16(b) or (c), whether upon the occurrence of a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-in Election, and (ii) the implementation of any Benchmark Replacement Conforming Changes pursuant to Section 2.16(d)), including whether the composition or characteristics of any such alternative, successor or replacement reference rate (including any Benchmark Replacement) will be similar to, or produce the same value or economic equivalence of, the Adjusted LIBO Rate or have the same volume or liquidity as did LIBOR for deposits in U.S. Dollars, Base Rate, the Term SOFR Reference Rate, Adjusted Term SOFR, Term SOFR or any other Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any Conforming Changes. The Administrative Agent and its affiliates or other related entities may engage in transactions that affect the calculation of the Base Rate, the Term SOFR Reference Rate, Term SOFR, Adjusted Term SOFR, any alternative, successor or replacement rate (including any Benchmark Replacement) or any relevant adjustments thereto, in each case, in a manner adverse to the Borrower. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain the Base Rate, the Term SOFR Reference Rate, Term SOFR, Adjusted Term SOFR or any other Benchmark, in each case pursuant to the terms of this Agreement, and shall



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have no liability to the Borrower, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.

Section 1.7 Leverage Calculations. If the availability of Indebtedness under this Agreement, or other incurrence of Indebtedness in compliance with this Agreement, is subject to pro forma compliance with a maximum Consolidated Leverage Ratio or a maximum Consolidated Secured Leverage Ratio, then, solely for the purposes of determining such availability or compliance, the cash proceeds of such Indebtedness, shall not be included in the calculation, if applicable, of unencumbered cash or Cash Equivalents included in the determination of the Consolidated Leverage Ratio or the Consolidated Secured Leverage Ratio (as applicable), but, for the avoidance of doubt, any repayment of Indebtedness from such cash proceeds shall be given pro forma effect.

Section 1.8 Times of Day. Unless otherwise specified, all references herein to times of day shall be references to Eastern time (daylight or standard, as applicable).

Section 1.9 Letter of Credit Amounts. Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the amount of such Letter of Credit available to be drawn at such time; provided that with respect to any Letter of Credit that, by its terms, provides for one or more automatic increases in the available amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum amount is available to be drawn at such time.

ARTICLE II.

AMOUNT AND TERMS OF THE COMMITMENTS

Section 2.1 General Description of Facilities. Subject to and upon the terms and conditions herein set forth, (i) the Lenders hereby establish in favor of the Borrower a revolving credit facility pursuant to which each Lender severally agrees (to the extent of such Lender's Revolving Commitment) to make Revolving Loans to the Borrower in accordance with Section 2.2; (ii) the Issuing Bank agrees to issue Letters of Credit in accordance with Section 2.22; (iii) the Swingline Lender may make Swingline Loans in accordance with Section 2.4; and (iv) each Lender agrees to purchase a participation interest in the Letters of Credit and the Swingline Loans pursuant to the terms and conditions hereof; provided that in no event shall the aggregate principal amount of all outstanding Revolving Loans, Swingline Loans and outstanding LC Exposure exceed the Aggregate Revolving Commitment Amount in effect from time to time.

Section 2.2 Revolving Loans. Subject to the terms and conditions set forth herein, each Lender severally agrees to make Revolving Loans, ratably in proportion to its Pro Rata Share of the Aggregate Revolving Commitments, to the Borrower, from time to time during the Availability Period, in Dollars in an aggregate principal amount outstanding at any time that will not result in (a) the Dollar Equivalent of such Lender's Revolving Credit Exposure exceeding such Lender's Revolving Commitment or (b) the Dollar Equivalent of the aggregate Revolving Credit Exposures of all Lenders exceeding the Aggregate Revolving Commitment Amount. During the Availability Period, the Borrower shall be entitled to borrow, prepay and reborrow Revolving Loans in accordance with the terms and conditions of this Agreement; provided that the Borrower may not borrow or reborrow should there exist a Default or Event of Default.



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Section 2.3 Procedure for Revolving Borrowings. The Borrower shall give the Administrative Agent written notice (or telephonic notice promptly confirmed in writing) of each Revolving Borrowing, substantially in the form of Exhibit D attached hereto (a "Notice of Revolving Borrowing"), (x) prior to 11:00 a.m. on the requested date of each Base Rate Borrowing and (y) prior to 12:00 p.m. three (3) U.S. Government Securities Business Days prior to the requested date of each EurodollarSOFR Borrowing. Each Notice of Revolving Borrowing shall be irrevocable and shall specify (i) the aggregate principal amount of such Borrowing, (ii) the date of such Borrowing (which shall be a Business Day), (iii) the Type of such Revolving Loan comprising such Borrowing and (iv) in the case of a EurodollarSOFR Borrowing, the duration of the initial Interest Period applicable thereto (subject to the provisions of the definition of Interest Period). Each Revolving Borrowing shall consist entirely of Base Rate Loans or EurodollarSOFR Loans, as the Borrower may request. The aggregate principal amount of each EurodollarSOFR Borrowing shall not be less than $1,000,000 or a larger multiple of $1,000,000, and the aggregate principal amount of each Base Rate Borrowing shall not be less than $1,000,000 or a larger multiple of $250,000; provided that Base Rate Loans made pursuant to Section 2.4 or Section 2.22(d) may be made in lesser amounts as provided therein. At no time shall the total number of EurodollarSOFR Borrowings outstanding at any time exceed ten (10). Promptly following the receipt of a Notice of Revolving Borrowing in accordance herewith, the Administrative Agent shall advise each Lender of the details thereof and the amount of such Lender's Revolving Loan to be made as part of the requested Revolving Borrowing.

Section 2.4 Swingline Commitment.

(a) Subject to the terms and conditions set forth herein, the Swingline Lender may, in its sole discretion, make Swingline Loans in Dollars to the Borrower, from time to time during the Availability Period, in an aggregate principal amount outstanding at any time not to exceed the lesser of (i) the Swingline Commitment then in effect and (ii) the difference between the Aggregate Revolving Commitment Amount and the Dollar Equivalent of the aggregate Revolving Credit Exposures of all Lenders; provided that the Swingline Lender shall not be required to make a Swingline Loan to refinance an outstanding Swingline Loan. The Borrower shall be entitled to borrow, repay and reborrow Swingline Loans in accordance with the terms and conditions of this Agreement.

(b) The Borrower shall give the Administrative Agent written notice (or telephonic notice promptly confirmed in writing) of each Swingline Borrowing, substantially in the form of Exhibit E attached hereto (a "Notice of Swingline Borrowing"), prior to 10:00 a.m. (or such later time as the Swingline Lender may agree in its sole discretion) on the requested date of each Swingline Borrowing. Each Notice of Swingline Borrowing shall be irrevocable and shall specify (i) the principal amount of such Swingline Borrowing, (ii) the date of such Swingline Borrowing (which shall be a Business Day) and (iii) the account of the Borrower to which the proceeds of such Swingline Borrowing should be credited. The Administrative Agent will promptly advise the Swingline Lender of each Notice of Swingline Borrowing. The aggregate principal amount of each Swingline Loan shall not be less than $500,000 or a larger multiple of $100,000, or such other minimum amounts agreed to by the Swingline Lender and the Borrower. The Swingline Lender will make the proceeds of each Swingline Loan available to the Borrower in Dollars in immediately available funds at the account specified by the Borrower in the applicable Notice of Swingline Borrowing not later than 1:00 p.m. on the requested date of such Swingline Borrowing.

(c) The Swingline Lender, at any time and from time to time in its sole discretion, may, but in no event no less frequently than once each calendar week shall, on behalf of the Borrower (which hereby irrevocably authorizes and directs the Swingline Lender to act on its behalf), give a Notice of Swingline Borrowing to the Administrative Agent requesting the Lenders (including the Swingline



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Lender) to make Base Rate Loans in an amount equal to the unpaid principal amount of any Swingline Loan. Each Lender will make the proceeds of its Base Rate Loan included in such Borrowing available to the Administrative Agent for the account of the Swingline Lender in accordance with Section 2.6, which will be used solely for the repayment of such Swingline Loan.

(d) If for any reason a Base Rate Borrowing may not be (as determined in the sole discretion of the Administrative Agent), or is not, made in accordance with the foregoing provisions, then each Lender (other than the Swingline Lender) shall purchase an undivided participating interest in such Swingline Loan in an amount equal to its Pro Rata Share thereof on the date that such Base Rate Borrowing should have occurred. On the date of such required purchase, each Lender shall promptly transfer, in immediately available funds, the amount of its participating interest to the Administrative Agent for the account of the Swingline Lender.

(e) Each Lender's obligation to make a Base Rate Loan pursuant to subsection (c) of this Section or to purchase participating interests pursuant to subsection (d) of this Section shall be absolute and unconditional and shall not be affected by any circumstance, including, without limitation, (i) any set-off, counterclaim, recoupment, defense or other right that such Lender or any other Person may have or claim against the Swingline Lender, the Borrower or any other Person for any reason whatsoever, (ii) the existence of a Default or an Event of Default or the termination of any Lender's Revolving Commitment, (iii) the existence (or alleged existence) of any event or condition which has had or could reasonably be expected to have a Material Adverse Effect, (iv) any breach of this Agreement or any other Loan Document by any Loan Party, the Administrative Agent or any Lender or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. If such amount is not in fact made available to the Swingline Lender by any Lender, the Swingline Lender shall be entitled to recover such amount on demand from such Lender, together with accrued interest thereon for each day from the date of demand thereof (x) at the Federal Funds Rate until the second Business Day after such demand and (y) at the Base Rate at all times thereafter. Until such time as such Lender makes its required payment, the Swingline Lender shall be deemed to continue to have outstanding Swingline Loans in the amount of the unpaid participation for all purposes of the Loan Documents. In addition, such Lender shall be deemed to have assigned any and all payments made of principal and interest on its Loans and any other amounts due to it hereunder to the Swingline Lender to fund the amount of such Lender's participation interest in such Swingline Loans that such Lender failed to fund pursuant to this Section, until such amount has been purchased in full.

Section 2.5 [Reserved.]

Section 2.6 Funding of Borrowings.

(a) Each Lender will make available each Loan to be made by it hereunder on the proposed date thereof by wire transfer in immediately available funds by 2:00 p.m. to the Administrative Agent at the Payment Office; provided that the Swingline Loans will be made as set forth in Section 2.4. The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts that it receives, in like funds by the close of business on such proposed date, to an account designated by the Borrower to the Administrative Agent.

(b) Unless the Administrative Agent shall have been notified by any Lender prior to 5:00 p.m. one (1) Business Day prior to the date of a Eurodollar BorrowingSOFR Borrower or 2:00 p.m. on the date of a Base Rate Borrowing in which such Lender is to participate that such Lender will not make available to the Administrative Agent such Lender's share of such Borrowing, the Administrative Agent may assume that such Lender has made such amount available to the Administrative Agent on



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such date, and the Administrative Agent, in reliance on such assumption, may make available to the Borrower on such date a corresponding amount. If such corresponding amount is not in fact made available to the Administrative Agent by such Lender on the date of such Borrowing, the Administrative Agent shall be entitled to recover such corresponding amount on demand from such Lender together with interest (x) at the Federal Funds Rate until the second Business Day after such demand and (y) at the Base Rate at all times thereafter. If such Lender does not pay such corresponding amount forthwith upon the Administrative Agent's demand therefor, the Administrative Agent shall promptly notify the Borrower, and the Borrower shall immediately pay such corresponding amount to the Administrative Agent together with interest at the rate specified for such Borrowing. Nothing in this subsection shall be deemed to relieve any Lender from its obligation to fund its Pro Rata Share of any Borrowing hereunder or to prejudice any rights which the Borrower may have against any Lender as a result of any default by such Lender hereunder.

(c) All Revolving Borrowings shall be made by the Lenders on the basis of their respective Pro Rata Shares. No Lender shall be responsible for any default by any other Lender in its obligations hereunder, and each Lender shall be obligated to make its Loans provided to be made by it hereunder, regardless of the failure of any other Lender to make its Loans hereunder.

Section 2.7 Interest Elections.

(a) Each Borrowing initially shall be of the Type specified in the applicable Notice of Borrowing. Thereafter, the Borrower may elect to convert such Borrowing into a different Type or to continue such Borrowing, all as provided in this Section but subject to Section 2.16. The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing.

(b) To make an election pursuant to this Section, the Borrower shall give the Administrative Agent written notice (or telephonic notice promptly confirmed in writing) of each Borrowing that is to be converted or continued, as the case may be, substantially in the form of Exhibit F attached hereto (a "Notice of Conversion/Continuation") (x) prior to 11:00 a.m. one (1) Business Day prior to the requested date of a conversion into a Base Rate Borrowing and (y) prior to 12:00 p.m. three (3) U.S. Government Securities Business Days prior to a continuation of or conversion into a EurodollarSOFR Borrowing. Each such Notice of Conversion/Continuation shall be irrevocable and shall specify (i) the Borrowing to which such Notice of Conversion/Continuation applies and, if different options are being elected with respect to different portions thereof, the portions thereof that are to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) shall be specified for each resulting Borrowing), (ii) the effective date of the election made pursuant to such Notice of Conversion/Continuation, which shall be a Business Day, (iii) whether the resulting Borrowing is to be a Base Rate Borrowing or a EurodollarSOFR Borrowing, and (iv) if the resulting Borrowing is to be a EurodollarSOFR Borrowing, the Interest Period applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of "Interest Period". If any such Notice of Conversion/Continuation requests a EurodollarSOFR Borrowing but does not specify an Interest Period, the Borrower shall be deemed to have selected an Interest Period of one (1) month. The principal amount of any resulting Borrowing shall satisfy the minimum borrowing amount for EurodollarSOFR Borrowings and Base Rate Borrowings set forth in Section 2.3.



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(c) If, on the expiration of any Interest Period in respect of any EurodollarSOFR Borrowing, the Borrower shall have failed to deliver a Notice of Conversion/Continuation, then, unless such Borrowing is repaid as provided herein, the Borrower shall be deemed to have elected to convert such Borrowing to a Base Rate Borrowing. No Borrowing may be converted into, or continued as, a EurodollarSOFR Borrowing if an Event of Default exists and the Administrative Agent or the Required Lenders shall have notified the Borrower in writing of their determination not to permit such conversion or continuation. No conversion of any EurodollarSOFR Loan shall be permitted except on the last day of the Interest Period in respect thereof.

(d) Upon receipt of any Notice of Conversion/Continuation, the Administrative Agent shall promptly notify each Lender of the details thereof and of such Lender's portion of each resulting Borrowing.

Section 2.8 Optional Reduction and Termination of Commitments.

(a) Unless previously terminated, all Revolving Commitments, Swingline Commitments and LC Commitments shall terminate on the Maturity Date.

(b) Upon at least three (3) Business Days' prior written notice (or telephonic notice promptly confirmed in writing) to the Administrative Agent (which notice shall be irrevocable), the Borrower may reduce the Aggregate Revolving Commitments in part or terminate the Aggregate Revolving Commitments in whole; provided that (i) any partial reduction shall apply to reduce proportionately and permanently the Revolving Commitment of each Lender, (ii) any partial reduction pursuant to this Section shall be in an amount of at least $1,000,000 and any larger multiple of $1,000,000, and (iii) no such reduction shall be permitted which would reduce the Aggregate Revolving Commitment Amount to an amount less than the Dollar Equivalent of the aggregate outstanding Revolving Credit Exposure of all Lenders. Any such reduction in the Aggregate Revolving Commitment Amount below the principal amount of the Swingline Commitment and the LC Commitment shall result in a dollar-for-dollar reduction in the Swingline Commitment and the LC Commitment.

(c) With the written approval of the Administrative Agent, the Borrower may terminate (on a non-ratable basis) the unused amount of the Revolving Commitment of a Defaulting Lender, and in such event the provisions of Section 2.26 will apply to all amounts thereafter paid by the Borrower for the account of any such Defaulting Lender under this Agreement (whether on account of principal, interest, fees, indemnity or other amounts); provided that such termination will not be deemed to be a waiver or release of any claim that the Borrower, the Administrative Agent, the Issuing Bank, the Swingline Lender or any other Lender may have against such Defaulting Lender.

Section 2.9 Repayment of Loans. The outstanding principal amount of all Revolving Loans and Swingline Loans shall be due and payable in Dollars (together with accrued and unpaid interest thereon) on the Maturity Date.

Section 2.10 Evidence of Indebtedness.

(a) Each Lender shall maintain in accordance with its usual practice appropriate records evidencing the Indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender from time to time, including the amounts of principal and interest payable thereon and paid to such Lender from time to time under this Agreement. The Administrative Agent shall maintain appropriate records in which shall be recorded (i) the Revolving Commitment of each Lender, (ii) the amount of each Loan made hereunder by each Lender, the Class and Type thereof and, in the case of each EurodollarSOFR Loan, the Interest Period applicable thereto, (iii) the date of any continuation of any Loan pursuant to Section 2.7, (iv) the date of any conversion of all or a portion of any Loan to another Type pursuant to Section 2.7, (v) the date and amount of any principal or interest due and



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payable or to become due and payable from the Borrower to each Lender hereunder in respect of the Loans and (vi) both the date and amount of any sum received by the Administrative Agent hereunder from the Borrower in respect of the Loans and each Lender's Pro Rata Share thereof. Subject to the entries in the Register, the entries made in such records shall be prima facie evidence absent manifest error of the existence and amounts of the obligations of the Borrower therein recorded; provided that the failure or delay of any Lender or the Administrative Agent in maintaining or making entries into any such record or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans (both principal and unpaid accrued interest) of such Lender in accordance with the terms of this Agreement.

(b) This Agreement evidences the obligation of the Borrower to repay the Loans and is being executed as a "noteless" credit agreement. However, at the request of any Lender (including the Swingline Lender) at any time, the Borrower agrees that it will prepare, execute and deliver to such Lender a promissory note payable to thesuch Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a form approved by the Administrative Agent. Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment permitted hereunder) be represented by one or more promissory notes in such form payable to the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns).

Section 2.11 Optional Prepayments. The Borrower shall have the right at any time and from time to time to prepay any Borrowing, in whole or in part, without premium or penalty, by giving written notice (or telephonic notice promptly confirmed in writing) to the Administrative Agent no later than (i) in the case of any prepayment of any EurodollarSOFR Borrowing, 12:00 p.m. not less than three (3) Business Days prior to the date of such prepayment, (ii) in the case of any prepayment of any Base Rate Borrowing, not less than one (1) U.S. Government Securities Business Day prior to the date of such prepayment, and (iii) in the case of any prepayment of any Swingline Borrowing, prior to 11:00 a.m. on the date of such prepayment. Each such notice shall be irrevocable and shall specify the proposed date of such prepayment and the principal amount of each Borrowing or portion thereof to be prepaid. Upon receipt of any such notice, the Administrative Agent shall promptly notify each affected Lender of the contents thereof and of such Lender's Pro Rata Share of any such prepayment. If such notice is given, the aggregate amount specified in such notice shall be due and payable on the date designated in such notice, together with accrued interest to such date on the amount so prepaid in accordance with Section 2.13(d); provided that if a EurodollarSOFR Borrowing is prepaid on a date that is prior toother than the last day of an Interest Period applicable thereto, the Borrower shall also pay all amounts required pursuant to Section 2.19. Each partial prepayment of any Loan shall be in an amount that would be permitted in the case of an advance of a Revolving Borrowing of the same Type pursuant to Section 2.2 or, in the case of a Swingline Loan, pursuant to Section 2.4. Each prepayment of a Borrowing shall be applied ratably to the Loans comprising such Borrowing.

Section 2.12 Mandatory Prepayments. If at any time (i) other than as a result of fluctuations in currency exchange rates, the Dollar Equivalent of the aggregate Revolving Credit Exposure of all Lenders exceeds the Aggregate Revolving Commitment Amount, as reduced pursuant to Section 2.8 or otherwise, or (ii) solely as a result of fluctuations in currency exchange rates, the Dollar Equivalent of the aggregate Revolving Credit Exposure of all Lenders exceeds 105% of the Aggregate Revolving Commitment Amount, as reduced pursuant to Section 2.8 or otherwise, then in each such case the Borrower shall immediately repay the Swingline Loans and the Revolving Loans in an amount equal to such excess, together with all accrued and unpaid interest on such excess amount and any amounts due under Section 2.19. Each prepayment shall be applied as follows: first, to the Swingline Loans to the full extent thereof; second, to the Base Rate Loans to the full extent thereof; and third, to the EurodollarSOFR Loans to the full extent thereof. If, after giving effect to prepayment of all Swingline Loans and Revolving Loans, the Dollar Equivalent of the aggregate Revolving Credit Exposure of all Lenders exceeds the Aggregate Revolving Commitment Amount, the Borrower shall Cash Collateralize its reimbursement obligations with respect to all Letters of Credit in an amount equal to such excess.



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Section 2.13 Interest on Loans.

(a) The Borrower shall pay interest on (i) each Base Rate Loan at the Base Rate plus the Applicable Margin in effect from time to time and (ii) each EurodollarSOFR Loan at the Adjusted LIBO RateTerm SOFR for the applicable Interest Period in effect for such Loan plus the Applicable Margin in effect from time to time.

(b) The Borrower shall pay interest on each Swingline Loan at the Base Rate plus the Applicable Margin in effect from time to time.

(c) Notwithstanding subsections (a) and (b) of this Section, if any Event of Default exists under Sections 8.1(a) or (f), the Loans and other Obligations under the Loan Documents not paid when due shall bear interest at a rate per annum equal to (i) in the case of the Loans, the rate that would otherwise be applicable thereto pursuant to the foregoing provisions of this Section plus 2.00% and (ii) in the case of any other Obligation, the rate then applicable to Base Rate Loans plus 2.00%, in each case, with respect to clauses (i) and (ii) above, from the date of such Event of Default until the earlier of the date such amount is paid in full (after as well as before judgment) and the date such Event of Default is cured or waived. All such default interest shall be payable from time to time on demand.

(d) Interest on the principal amount of all Loans shall accrue from and including the date such Loans are made to but excluding the date of any repayment thereof. Interest on all outstanding Base Rate Loans and Swingline Loans shall be payable quarterly in arrears on the last day of each March, June, September and December and on the Maturity Date. Interest on all outstanding EurodollarSOFR Loans shall be payable on the last day of each Interest Period applicable thereto, and, in the case of any EurodollarSOFR Loans having an Interest Period in excess of three months, on each day which occurs every three months after the initial date of such Interest Period, and on the Maturity Date. Interest on any Loan which is converted into a Loan of another Type or which is repaid or prepaid shall be payable on the date of such conversion or on the date of any such repayment or prepayment (on the amount repaid or prepaid) thereof.

(e) The Administrative Agent shall determine each interest rate applicable to the Loans hereunder and shall promptly notify the Borrower and the Lenders of such rate in writing (or by telephone, promptly confirmed in writing). Any such determination shall be conclusive and binding for all purposes, absent manifest error.

(f) In connection with the use or administration of Term SOFR, the Administrative Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document. The Administrative Agent shall, atwill promptly notify the Borrower and the written requestLenders of the Borrower, deliver to the Borrower a statement showing the quotations used by the Administrative Agent in determining any interest rate pursuant to Section 2.13(e)effectiveness of any Conforming Changes in connection with the use or administration of Term SOFR.



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Section 2.14 Fees.

(a) The Borrower shall pay to the Administrative Agent for its own account fees in the amounts and at the times previously agreed upon in writing by the Borrower and the Administrative Agent.

(b) The Borrower agrees to pay to the Administrative Agent for the account of each Lender a commitment fee, which shall accrue at the Applicable Percentage per annum (determined daily in accordance with Schedule I) on the daily amount of the unused Revolving Commitment of such Lender during the Availability Period. For purposes of computing the commitment fee, the Revolving Commitment of each Lender shall be deemed used to the extent of the outstanding Revolving Loans and LC Exposure, but not Swingline Exposure, of such Lender.

(c) The Borrower agrees to pay (i) to the Administrative Agent, for the account of each Lender, a letter of credit fee with respect to its participation in each Letter of Credit, which shall accrue at a rate per annum equal to the Applicable Margin for EurodollarSOFR Loans then in effect on the Dollar Equivalent of the average daily amount of such Lender's LC Exposure attributable to such Letter of Credit during the period from and including the date of issuance of such Letter of Credit to but excluding the date on which such Letter of Credit expires or is drawn in full (including, without limitation, any LC Exposure that remains outstanding after the Maturity Date) and (ii) to the Issuing Bank for its own account a fronting fee, which shall accrue at the rate set forth in the Fee Letter on the Dollar Equivalent of the average daily amount of the LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the Availability Period (or until the date that such Letter of Credit is irrevocably cancelled, whichever is later), as well as the Issuing Bank's standard fees with respect to issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder.

(d) The Borrower shall pay, to the applicable parties, on the Closing Date the fees in the Fee Letter that are due and payable on the Closing Date.

(e) Accrued fees under subsections (b) and (c) of this Section shall be payable quarterly in arrears on the last day of each March, June, September and December, commencing on September 30, 2020, and on the Maturity Date (and, if later, the date the Loans and LC Exposure shall be repaid in their entirety); provided that any such fees accruing after the Maturity Date shall be payable on demand.

Section 2.15 Computation of Interest and Fees. Interest hereunder based on the Administrative Agent's prime lending rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year) and paid for the actual number of days elapsed (including the first day but excluding the last day). All other interest and all fees hereunder shall be computed on the basis of a year of 360 days and paid for the actual number of days elapsed (including the first day but excluding the last day). Each determination by the Administrative Agent of an interest rate or fee hereunder shall be made in good faith and, except for manifest error, shall be final, conclusive and binding for all purposes.

Section 2.16 Inability to Determine Interest Rates; Benchmark Replacement Setting.

(a) IfInability to Determine SOFR. Subject to paragraphs (b) through and (f) below, if, prior to the commencement of any Interest Period for any EurodollarSOFR Borrowing:

(i) the Administrative Agent shall have determined (which determination shall be conclusive and binding upon the Borrower) that, by reason of circumstances affecting the relevant interbank market, adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate (including, without limitation, because the Screen Rate is not available or published on a current basis) for such Interest Period, provided that no Benchmark Transition Event, a Term SOFR Transition Event or Early Opt-In Election shall have occurred at such time or for such Interest Periodabsent manifest error) that "Adjusted Term SOFR" cannot be determined pursuant to the definition thereof, or



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(ii) the Administrative Agent shall have received notice from the Required Lenders that the Adjusted LIBO RateTerm SOFR for such Interest Period will not adequately and fairly reflect the cost to such Lenders of making, funding or maintaining their EurodollarSOFR Loans for such Interest Period,

then the Administrative Agent shall give written notice thereof (or telephonic notice, promptly confirmed in writing) to the Borrower and to the Lenders as soon as practicable thereafter. Until

Upon notice thereof by the Administrative Agent shall notifyto the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) the obligations, any obligation of the Lenders to make Revolving EurodollarSOFR Loans or, and any right of the Borrower to continue SOFR Loans or to convert outstandingBase Rate Loans as or into Eurodollarto SOFR Loans, shall be suspended (to the extent of the affected SOFR Loans or affected Interest Periods) until the Administrative Agent revokes such notice. Upon receipt of such notice, (i) the Borrower may revoke any pending request for a borrowing of, conversion to or continuation of SOFR Loans (to the extent of the affected SOFR Loans or affected Interest Periods) or, failing that, the Borrower will be deemed to have converted any such request into a request for a Borrowing of or conversion to Base Rate Loans in the amount specified therein and (ii) all suchany outstanding affected SOFR Loans shallwill be deemed to have been converted into Base Rate Loans onat the last dayend of the then currentapplicable Interest Period applicable thereto unless. Upon any such conversion, the Borrower prepays such Loans in accordance with this Agreement. Unless the Borrower notifiesshall also pay accrued interest on the amount so converted, together with any additional amounts required pursuant to Section 2.19. Subject to paragraphs (b) through (f) below, if the Administrative Agent at least one (1) Business Day before the date of any Eurodollar Borrowing for which a Notice of Revolving Borrowing has previously been given that it elects not to borrow, continue or convert to a Eurodollar Borrowing on such date, then such Revolving Borrowing shall be made as, continued as or converted into a Base Rate Borrowingdetermines (which determination shall be conclusive and binding absent manifest error) that "Adjusted Term SOFR" cannot be determined pursuant to the definition thereof on any given day, the interest rate on Base Rate Loans shall be determined by the Administrative Agent without reference to clause (iii) of the definition of "Base Rate" until the Administrative Agent revokes such determination.

(b) Benchmark Replacement.

(i) (b) Notwithstanding anything to the contrary herein or in any other Loan Document, if a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then (x) if a Benchmark Replacement is determined in accordance with clause (1) or (2) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any



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Loan Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document and (y) if a Benchmark Replacement is determined in accordance with clause (32) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to the Lenders without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document so long as the Administrative Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders. If the Benchmark Replacement is Daily Simple SOFR, all interest payments will be payable on a monthly basis.

(c) Notwithstanding anything to the contrary herein or in any other Loan Document and subject to the proviso below in this Section 2.16(c), if a Term SOFR Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then the applicable Benchmark Replacement will replace the then-current Benchmark for all purposes hereunder or under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings, without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document; provided that this Section 2.16(c) shall not be effective unless the Administrative Agent has delivered to the Lenders and the Borrower a Term SOFR Notice.

(ii) No swap agreement shall be deemed to be a "Loan Document" for purposes of this Section 2.16.

(c) (d) Benchmark Replacement Conforming Changes. In connection with the use, administration, adoption or implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.

(d) (e) Notices; Standards for Decisions and Determinations. The Administrative Agent will promptly notify the Borrower and the Lenders of (i) the implementation of any occurrence of a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date,and (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement Conforming Changes,. The Administrative Agent will notify the Borrower of (ivx) the removal or reinstatement of any tenor of a Benchmark pursuant to Section 2.16(fe) and (vy) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this Section 2.16(b)-(f), including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this Section 2.16(b)-(f).



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(e) Unavailability of Tenor of Benchmark.(f) Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including the Term SOFR or the Adjusted LIBOReference Rate) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is not or will be no longernot be representative, then the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is not or will no longernot be representative for a Benchmark (including a Benchmark Replacement) or a new tenor is established, then the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for all Benchmark settings at or after such time to add such tenor or to reinstate such previously removed tenor.

(f) (g)Benchmark Unavailability Period. Upon the Borrower's receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any pending request for a EurodollarSOFR Borrowing of, conversion to or continuation of EurodollarSOFR Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a Borrowing of or conversion to Base Rate Loans. During anya Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of the Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of the Base Rate.

Section 2.17 Illegality. If any Change in Law shall make it unlawful or impossible for any Lender to make, maintain or fund any EurodollarSOFR Loan or to determine or charge interest rates based upon SOFR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR and such Lender shall so notify the Administrative Agent, the Administrative Agent shall promptly give notice thereof to the Borrower and the other Lenders, whereupon until such Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such suspension no longer exist, (i) the obligation of such Lender to make Revolving EurodollarSOFR Loans, or to continue or convert outstanding Loans as or into EurodollarSOFR Loans, shall be suspended and (ii) the Base Rate shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to clause (iii) of the definition thereof. In the case of the making of a EurodollarSOFR Borrowing, such Lender's Revolving Loan shall be made as a Base Rate Loan as part of the same Revolving Borrowing for the same Interest Period and, if the affected EurodollarSOFR Loan is then outstanding, such Loan shall be converted to a Base Rate Loan either (i) on the last day of the then current Interest Period applicable to such EurodollarSOFR Loan if such Lender may lawfully continue to maintain such Loan to such date or (ii) immediately if such Lender shall determine that it may not lawfully continue to maintain such EurodollarSOFR Loan to such date (and in each instance, the Base Rate shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to clause (iii) of the definition thereof). Notwithstanding the foregoing, the affected Lender shall, prior to giving such notice to the Administrative Agent, use reasonable efforts to designate a different Applicable Lending Office if such designation would avoid the need for giving such notice and if such designation would not otherwise be disadvantageous to such Lender in the good faith exercise of its discretion. Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted, together with any additional amounts required pursuant to Section 2.19.



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Section 2.18 Increased Costs.

(a) If any Change in Law shall:

(i) impose, modify or deem applicable any reserve (including pursuant to regulations issued from time to time by the Federal Reserve Board for determining the maximum reserve requirement (including any emergency, special, supplemental or other marginal reserve requirement) with respect to eurocurrency funding (currently referred to as "Eurocurrency liabilities" in Regulation D)), special deposit, compulsory loan, insurance charge or similar requirement that is not otherwise included in the determination of the Adjusted LIBO Rate hereunder against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate) or the Issuing Bank; or

(ii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes); or

(iii) impose on any Lender, the Issuing Bank or the eurodollar interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or any Eurodollar Loans made by such Lender or any Letter of Credit or any participation thereinin any such Loan or Letter of Credit;

and the result of any of the foregoing is to increase the cost to such Lender of making, converting into, continuing or maintaining a EurodollarSOFR Loan or to increase the cost to such Lender or the Issuing Bank of participating in or issuing any Letter of Credit or to reduce the amount received or receivable by such Lender or the Issuing Bank hereunder (whether of principal, interest or any other amount),

then, from time to time, such Lender or the Issuing Bank may provide the Borrower (with a copy thereof to the Administrative Agent) with written notice and demand with respect to such increased costs or reduced amounts, and within thirty (30) days after receipt of such notice and a reasonably detailed written demand, the Borrower shall pay to such Lender or the Issuing Bank, as the case may be, such additional amounts as will compensate such Lender or the Issuing Bank for any such increased costs incurred or reduction suffered.

(b) If any Lender or the Issuing Bank shall have determined that any Change in Law regarding capital or liquidity ratios or requirements has or would have the effect of reducing the rate of return on such Lender's or the Issuing Bank's capital (or on the capital of the Parent Company of such Lender or the Issuing Bank) as a consequence of its obligations hereunder or under or in respect of any Letter of Credit to a level below that which such Lender, the Issuing Bank or such Parent Company could have achieved but for such Change in Law (taking into consideration such Lender's or the Issuing Bank's policies or the policies of such Parent Company with respect to capital adequacy and liquidity), then, from time to time, such Lender or the Issuing Bank may provide the Borrower (with a copy thereof to the Administrative Agent) with written notice and demand with respect to such reduced amounts, and within thirty (30) days after receipt of such notice and a reasonably detailed written demand the Borrower shall pay to such Lender or the Issuing Bank, as the case may be, such additional amounts as will compensate such Lender, the Issuing Bank or such Parent Company for any such reduction suffered.



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(c) A certificate of such Lender or the Issuing Bank setting forth the amount or amounts necessary to compensate such Lender, the Issuing Bank or the Parent Company of such Lender or the Issuing Bank, as the case may be, specified in subsection (a) or (b) of this Section shall be delivered to the Borrower (with a copy to the Administrative Agent) and shall be conclusive, absent manifest error.

(d) Failure or delay on the part of any Lender or the Issuing Bank to demand compensation pursuant to this Section shall not constitute a waiver of such Lender's or the Issuing Bank's right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender or the Issuing Bank under this Section for any increased costs or reductions incurred more than six (6) months prior to the date that such Lender or the Issuing Bank notifies the Borrower of such increased costs or reductions and of such Lender's or the Issuing Bank's intention to claim compensation therefor; provided, further, that if the Change in Law giving rise to such increased costs or reductions is retroactive, then such six-month period shall be extended to include the period of such retroactive effect.

Section 2.19 Funding Indemnity. In the event of (a) the payment of any principal of a EurodollarSOFR Loan prior toother than on the last day of the Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion or continuation of a EurodollarSOFR Loan other than on the last day of the Interest Period applicable thereto, (c) the failure by the Borrower to borrow, prepay, convert or continue any EurodollarSOFR Loan on the date specified in any applicable notice (regardless of whether such notice is withdrawn or revoked), or (d) the failure by the Borrower to make payment of any drawing under any Letter of Credit (or interest due thereon) denominated in an Alternative Currency on its scheduled due date or any payment thereof in a different currency, then, in any such event, the Borrower shall compensate each Lender and the Issuing Bank (as applicable), within thirty (30) days after written demand from such applicable Lender or Issuing Bank (which demand shall set forth in reasonable detail the basis for requesting such amount), for any loss (other than lost profits), cost or expense attributable to such event. In the case of a EurodollarSOFR Loan, such loss, cost or expense shall be deemed to include an amount determined by such Lender to be the excess, if any, of (A) the amount of interest that would have accrued on the principal amount of such EurodollarSOFR Loan if such event had not occurred at the Adjusted LIBO RateTerm SOFR applicable to such EurodollarSOFR Loan for the period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the Interest Period for such EurodollarSOFR Loan) (excluding the Applicable Margin) over (B) the amount of interest that would accrue on the principal amount of such EurodollarSOFR Loan for the same period if the Adjusted LIBO RateTerm SOFR were set on the date such EurodollarSOFR Loan was prepaid or converted or the date on which the Borrower failed to borrow, convert or continue such EurodollarSOFR Loan (excluding the Applicable Margin). A certificate as to any additional amount payable under this Section submitted to the Borrower by any Lender or the Issuing Bank (with a copy to the Administrative Agent) shall be conclusive, absent manifest error.

Section 2.20 Taxes.

(a) Defined Terms. For purposes of this Section 2.20, the term "Lender" includes Issuing Bank and the term "applicable law" includes FATCA.



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(b) Payments Free of Taxes. Any and all payments by or on account of any obligation of any Loan Party under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan Party shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

(c) Payment of Other Taxes by the Borrower. The Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

(d) Indemnification by the Borrower. The Borrower shall indemnify each Recipient, within ten (10) Business Days after reasonably detailed written demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

(e) Indemnification by the Lenders. Each Lender shall severally indemnify the Administrative Agent, within ten (10) Business Days after a written demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender's failure to comply with the provisions of Section 10.4(d) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (e).

(f) Evidence of Payments. As soon as practicable after any payment of Taxes by the Borrower or any other Loan Party to a Governmental Authority pursuant to this Section 2.20, the Borrower or other Loan Party shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.



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(g) Status of Lenders.

(i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 2.20(g)(ii)(A), (B) and (D) below) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

(ii) Without limiting the generality of the foregoing,

(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

(i) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;



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(iii) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit G-1 to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a "controlled foreign corporation" described in Section 881(c)(3)(C) of the Code (a "U.S. Tax Compliance Certificate") and (y) executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E; or

(iv) to the extent a Foreign Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN or IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of Exhibit G-2 or Exhibit G-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit G-4 on behalf of each such direct and indirect partner;

(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

(D) if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount, if any, to deduct and withhold from such payment. Solely for purposes of this clause (D), "FATCA" shall include any amendments made to FATCA after the date of this Agreement.



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Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

(h) Treatment of Certain Refunds. If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.20 (including by the payment of additional amounts pursuant to this Section 2.20), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (h) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this paragraph (h), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (h) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

(i) Survival. Each party's obligations under this Section 2.20 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

Section 2.21 Payments Generally; Pro Rata Treatment; Sharing of Set-offs.

(a) The Borrower shall make each payment required to be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.18, 2.19 or 2.20, or otherwise) prior to 1:00 p.m. on the date when due, in immediately available funds, free and clear of any defenses, rights of set-off, counterclaim, or (subject to Section 2.20) withholding or deduction of taxes. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at the Payment Office, except payments to be made directly to the Issuing Bank or the Swingline Lender as expressly provided herein and except that payments pursuant to Sections 2.18, 2.19, 2.20 and 10.3 shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be made payable for the period of such extension. All payments hereunder shall be made in Dollars or, to the extent expressly set forth in Section 2.22, the applicable Alternative Currency.



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(b) If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied as follows: first, to all fees and reimbursable expenses of the Administrative Agent then due and payable pursuant to any of the Loan Documents; second, to all reimbursable expenses of the Lenders and all fees and reimbursable expenses of the Issuing Bank then due and payable pursuant to any of the Loan Documents, pro rata to the Lenders and the Issuing Bank based on their respective pro rata shares of such fees and expenses; third, to all interest and fees then due and payable hereunder, pro rata to the Lenders based on their respective pro rata shares of such interest and fees; and fourth, to all principal of the Loans and unreimbursed LC Disbursements then due and payable hereunder, pro rata to the parties entitled thereto based on their respective pro rata shares of such principal and unreimbursed LC Disbursements.

(c) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or participations in LC Disbursements or Swingline Loans that would result in such Lender receiving payment of a greater proportion of the aggregate amount of its Revolving Credit Exposure and accrued interest and fees thereon than the proportion received by any other Lender with respect to its Revolving Credit Exposure, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Revolving Credit Exposure of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Revolving Credit Exposure; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this subsection shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender) or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Revolving Credit Exposure to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this subsection shall apply). The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

(d) Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the Issuing Bank hereunder that the Borrower will not make such payment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount or amounts due. In such event, if the Borrower has not in fact made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation (including the Overnight Foreign Currency Rate in the case of Letters of Credit denominated in an Alternative Currency).



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Section 2.22 Letters of Credit.

(a) During the Availability Period, the Issuing Bank, in reliance upon the agreements of the other Lenders pursuant to subsections (d) and (e) of this Section, agrees to issue, at the request of the Borrower, Letters of Credit denominated in Dollars or in an Alternative Currency for the account of the Borrower (or any Restricted Subsidiary, provided the Borrower is liable hereunder in respect of any such Letter of Credit (the Borrower hereby acknowledging that the issuance of Letters of Credit for the account of Restricted Subsidiaries inures to the benefit of the Borrower, and that the Borrower's business derives substantial benefits from the businesses of such Restricted Subsidiaries)) on the terms and conditions hereinafter set forth; provided that (i) each Letter of Credit shall expire on the earlier of (A) the date one year after the date of issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal or extension) and (B) the date that is five (5) Business Days prior to the Maturity Date; (ii) each Letter of Credit shall be in a stated amount of the Dollar Equivalent of at least $10,000; (iii) the Borrower may not request any Letter of Credit if, after giving effect to such issuance, (A) the Dollar Equivalent of the aggregate LC Exposure would exceed the LC Commitment or (B) the Dollar Equivalent of the aggregate Revolving Credit Exposure of all Lenders would exceed the Aggregate Revolving Commitment Amount; and (iv) the Borrower shall not request, and the Issuing Bank shall have no obligation to issue, any Letter of Credit the proceeds of which would be made available to any Person (x) to fund any activity or business of or with any Sanctioned Person or in any Sanctioned Countries, that, at the time of such funding, is the subject of any Sanctions or (y) in any manner that would result in a violation of any Sanctions by any party to this Agreement. Each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Issuing Bank without recourse a participation in each Letter of Credit equal to such Lender's Pro Rata Share of the aggregate amount available to be drawn under such Letter of Credit on the date of issuance. Each issuance of a Letter of Credit shall be deemed to utilize the Revolving Commitment of each Lender by an amount equal to the amount of such participation.

(b) To request the issuance of a Letter of Credit (or any amendment, renewal or extension of an outstanding Letter of Credit), the Borrower shall give the Issuing Bank and the Administrative Agent irrevocable written notice at least three (3) Business Days prior to the requested date (or such shorter period as the Issuing Bank may agree in a particular instance in its sole discretion) of such issuance specifying the date (which shall be a Business Day) such Letter of Credit is to be issued (or amended, renewed or extended, as the case may be), the expiration date of such Letter of Credit, the amount and currency of such Letter of Credit, the name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit. In addition to the satisfaction of the conditions in Article III, the issuance of such Letter of Credit (or any amendment which increases the amount of such Letter of Credit) will be subject to the further conditions that such Letter of Credit shall be in such form and contain such terms as the Issuing Bank shall approve and that the Borrower shall have executed and delivered any additional applications, agreements and instruments relating to such Letter of Credit as the Issuing Bank shall reasonably require; provided that in the event of any conflict between such applications, agreements or instruments and this Agreement, the terms of this Agreement shall control.

(c) At least two (2) Business Days prior to the issuance of any Letter of Credit, the Issuing Bank will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has received such notice, and, if not, the Issuing Bank will provide the Administrative Agent with a copy thereof. Unless the Issuing Bank has received notice from the



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Administrative Agent, on or before the Business Day immediately preceding the date the Issuing Bank is to issue the requested Letter of Credit, directing the Issuing Bank not to issue the Letter of Credit because such issuance is not then permitted hereunder because of the limitations set forth in subsection (a) of this Section or that one or more conditions specified in Article III are not then satisfied, then, subject to the terms and conditions hereof, the Issuing Bank shall, on the requested date, issue such Letter of Credit in accordance with the Issuing Bank's usual and customary business practices.

(d) The Issuing Bank shall examine all documents purporting to represent a demand for payment under a Letter of Credit promptly following its receipt thereof. The Issuing Bank shall notify the Borrower and the Administrative Agent of such demand for payment and whether the Issuing Bank has made or will make a LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse the Issuing Bank and the Lenders with respect to such LC Disbursement. The Borrower shall be irrevocably and unconditionally obligated to reimburse the Issuing Bank for any LC Disbursements paid by the Issuing Bank in respect of such drawing, without presentment, demand or other formalities of any kind. Such reimbursement shall be in Dollars, unless, in the case of a Letter of Credit denominated in an Alternative Currency, (i) the Issuing Bank (at its option) shall have specified in such notice that it will require reimbursement in such Alternative Currency, or (ii) in the absence of any such requirement for reimbursement in such Alternative Currency, the Borrower shall have notified the Issuing Bank promptly following receipt of the notice of drawing that the Borrower will reimburse the Issuing Bank in such Alternative Currency. In the case of any such reimbursement in Dollars of a drawing under a Letter of Credit denominated in an Alternative Currency, the applicable Issuing Bank shall notify the Borrower of the Dollar Equivalent of the amount of the drawing promptly following the determination thereof. If the Borrower shall have received notice from the Issuing Bank on or prior to 11:00 a.m. on the date of payment by the Issuing Bank under a Letter of Credit to be reimbursed in Dollars, not later than 4:00 p.m. on such date of payment by the Issuing Bank, or, if the Borrower shall have received notice later than 11:00 a.m. on the date of payment by the Issuing Bank under a Letter of Credit to be reimbursed in Dollars, not later than 11:00 a.m. on the immediately following Business Day, or the Applicable Time on the date of any payment by the Issuing Bank under a Letter of Credit to be reimbursed in an Alternative Currency (each such date, an "Honor Date"), the Borrower shall reimburse the Issuing Bank through the Administrative Agent in an amount equal to the amount of such drawing and in the applicable currency. In the event that (i) a drawing denominated in an Alternative Currency is to be reimbursed in Dollars and (ii) the Dollar amount paid by the Borrower, whether on or after the Honor Date, shall not be adequate on the date of that payment to purchase in accordance with normal banking procedures a sum denominated in the Alternative Currency equal to the drawing, the Borrower agrees, as a separate and independent obligation, to indemnify the Issuing Bank for the loss resulting from its inability on that date to purchase the Alternative Currency in the full amount of the drawing. If the Borrower fails to so reimburse the Issuing Bank by such time, the Administrative Agent shall promptly notify each Revolving Lender of the Honor Date and the amount of the unreimbursed drawing (expressed in Dollars in an amount equal to the Dollar Equivalent thereof in the case of a Letter of Credit denominated in an Alternative Currency). In such event, the Borrower shall be deemed to have timely given a Notice of Revolving Borrowing to the Administrative Agent requesting the Lenders to make a Base Rate Borrowing on the date on which such drawing is honored in an exact amount of the Dollar Equivalent due to the Issuing Bank; provided that for purposes solely of such Borrowing, the conditions precedent set forth in Section 3.2 hereof shall not be applicable and the minimum amount and multiples for Base Rate Borrowings specified in Section 2.3 hereof shall not be applicable. The Administrative Agent shall notify the Lenders of such Borrowing in accordance with Section 2.3, and each Lender shall make the proceeds of its Base Rate Loan included in such Borrowing available to the Administrative Agent in Dollars for the account of the Issuing Bank in accordance with Section 2.6. The proceeds of such Borrowing shall be applied directly by the Administrative Agent to reimburse the Issuing Bank for such LC Disbursement.



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(e) If for any reason a Base Rate Borrowing may not be (as determined in the sole discretion of the Administrative Agent), or is not, made in accordance with the foregoing provisions, then each Lender (other than the Issuing Bank) shall be obligated to fund the participation that such Lender purchased pursuant to subsection (a) of this Section in an amount equal to its Pro Rata Share of such LC Disbursement on and as of the date which such Base Rate Borrowing should have occurred. Each Lender's obligation to fund its participation shall be absolute and unconditional and shall not be affected by any circumstance, including, without limitation, (i) any set-off, counterclaim, recoupment, defense or other right that such Lender or any other Person may have against the Issuing Bank or any other Person for any reason whatsoever, (ii) the existence of a Default or an Event of Default or the termination of the Aggregate Revolving Commitments, (iii) any adverse change in the condition (financial or otherwise) of the Borrower or any of its Subsidiaries, (iv) any breach of this Agreement by the Borrower or any other Lender, (v) any amendment, renewal or extension of any Letter of Credit or (vi) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. On the date that such participation is required to be funded, each Lender shall promptly transfer, in immediately available funds in Dollars, the amount of its participation to the Administrative Agent for the account of the Issuing Bank. Whenever, at any time after the Issuing Bank has received from any such Lender the funds for its participation in a LC Disbursement, the Issuing Bank (or the Administrative Agent on its behalf) receives any payment on account thereof, the Administrative Agent or the Issuing Bank, as the case may be, will distribute to such Lender its Pro Rata Share of such payment; provided that if such payment is required to be returned for any reason to the Borrower or to a trustee, receiver, liquidator, custodian or similar official in any bankruptcy proceeding, such Lender will return to the Administrative Agent or the Issuing Bank any portion thereof previously distributed by the Administrative Agent or the Issuing Bank to it.

(f) To the extent that any Lender shall fail to pay any amount required to be paid pursuant to subsection (d) or (e) of this Section on the due date therefor, such Lender shall pay interest to the Issuing Bank (through the Administrative Agent) on such amount from such due date to the date such payment is made at a rate per annum equal to the Federal Funds Rate; provided that if such Lender shall fail to make such payment to the Issuing Bank within three (3) Business Days of such due date, then, retroactively to the due date, such Lender shall be obligated to pay interest on such amount at the Base Rate.

(g) If at any time (i) other than as a result of fluctuations in currency exchange rates, the Dollar Equivalent of the aggregate LC Exposure of all Lenders exceeds the LC Commitment Amount, as reduced pursuant to Section 2.8 or otherwise, or (ii) solely as a result of fluctuations in currency exchange rates, the Dollar Equivalent of the aggregate LC Exposure of all Lenders exceeds 105% of the LC Commitment Amount, as reduced pursuant to Section 2.8 or otherwise, then in each case the Borrower shall Cash Collateralize its reimbursement obligations with respect to all Letters of Credit in an aggregate amount sufficient to reduce such LC Exposure as of such date of payment to an amount not to exceed 100% of the LC Commitment Amount then in effect. Additionally, if any Event of Default shall occur and be continuing, on the Business Day that the Borrower receives notice from the Administrative Agent or the Required Lenders demanding that its reimbursement obligations with respect to the Letters of Credit be Cash Collateralized pursuant to this subsection, the Borrower shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Issuing Bank and the Lenders, an amount in cash equal to 105% of the Dollar Equivalent of the aggregate LC Exposure of all Lenders as of such date plus any accrued and unpaid fees thereon; provided that such obligation to Cash Collateralize the reimbursement obligations of the Borrower with respect to the



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Letters of Credit shall become effective immediately, and such deposit shall become immediately due and payable, without demand or notice of any kind, upon the occurrence of any Event of Default with respect to the Borrower described in Section 8.1(f). Any such deposit shall be held by the Administrative Agent as collateral for the payment and performance of the obligations of the Borrower under this Agreement. The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account. The Borrower agrees to execute any documents and/or certificates to effectuate the intent of this subsection. Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of the Administrative Agent and at the Borrower's risk and expense, such deposits shall not bear interest. Interest and profits, if any, on such investments shall accumulate in such account. Moneys in such account shall be applied by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements for which it had not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated, with the consent of the Required Lenders, be applied to satisfy other obligations of the Borrower under this Agreement and the other Loan Documents. If the Borrower is required to Cash Collateralize its reimbursement obligations with respect to the Letters of Credit as a result of the occurrence of an Event of Default, such cash collateral so posted (to the extent not so applied as aforesaid) shall be returned to the Borrower within three (3) Business Days after all Events of Default have been cured or waived.

(h) Upon the request of any Lender, but no more frequently than quarterly, the Issuing Bank shall deliver (through the Administrative Agent) to each Lender and the Borrower a report describing the aggregate Letters of Credit then outstanding. Upon the request of any Lender from time to time, the Issuing Bank shall deliver to such Lender any other information reasonably requested by such Lender with respect to each Letter of Credit then outstanding.

(i) The Borrower's obligation to reimburse LC Disbursements hereunder shall be absolute, unconditional and irrevocable and shall be performed strictly in accordance with the terms of this Agreement under all circumstances whatsoever and irrespective of any of the following circumstances:

(i) any lack of validity or enforceability of any Letter of Credit or this Agreement;

(ii) the existence of any claim, set-off, defense or other right which the Borrower or any Subsidiary or Affiliate of the Borrower may have at any time against a beneficiary or any transferee of any Letter of Credit (or any Persons or entities for whom any such beneficiary or transferee may be acting), any Lender (including the Issuing Bank) or any other Person, whether in connection with this Agreement or the Letter of Credit or any document related hereto or thereto or any unrelated transaction;

(iii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect;

(iv) payment by the Issuing Bank under a Letter of Credit against presentation of a draft or other document to the Issuing Bank that does not comply with the terms of such Letter of Credit;



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(v) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal or equitable discharge of, or provide a right of set-off against, the Borrower's obligations hereunder;

(vi) the existence of a Default or an Event of Default; or

(vii) any adverse change in the relevant exchange rates or in the availability of the relevant Alternative Currency to the Borrower or any Restricted Subsidiary or in the relevant currency markets generally.

Neither the Administrative Agent, the Issuing Bank, any Lender nor any Related Party of any of the foregoing shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to above), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the Issuing Bank; provided that the foregoing shall not be construed to excuse the Issuing Bank from liability to the Borrower to the extent of any actual direct damages (as opposed to special, indirect (including claims for lost profits or other consequential damages), or punitive damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by the Issuing Bank's failure to exercise due care when determining whether drafts or other documents presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of the Issuing Bank (as finally determined by a court of competent jurisdiction), the Issuing Bank shall be deemed to have exercised due care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented that appear on their face to be in substantial compliance with the terms of a Letter of Credit, the Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.

(j) Unless otherwise expressly agreed by the Issuing Bank and the Borrower when a Letter of Credit is issued and subject to applicable laws, (i) each standby Letter of Credit shall be governed by the "International Standby Practices 1998" (ISP98) (or such later revision as may be published by the Institute of International Banking Law & Practice on any date any Letter of Credit may be issued), (ii) each documentary Letter of Credit shall be governed by the Uniform Customs and Practices for Documentary Credits (2007 Revision), International Chamber of Commerce Publication No. 600 (or such later revision as may be published by the International Chamber of Commerce on any date any Letter of Credit may be issued) and (iii) the Borrower shall specify the foregoing in each letter of credit application submitted for the issuance of a Letter of Credit.

(k) Any Issuing Bank may resign as an "Issuing Bank" hereunder upon 30 days' prior written notice to the Administrative Agent, the Lenders and the Borrower; provided that on or prior to the expiration of such 30-day period with respect to such resignation, the relevant Issuing Bank shall have identified a successor Issuing Bank reasonably acceptable to the Borrower willing to accept its appointment as successor Issuing Bank, and the effectiveness of such resignation shall be conditioned upon such successor assuming the rights and duties of the resigning Issuing Bank. In the event of any such resignation as Issuing Bank, the Borrower shall be entitled to appoint from among the Lenders a



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successor Issuing Bank hereunder; provided, however, that no failure by the Borrower to appoint any such successor shall affect the resignation of the resigning Issuing Bank except as expressly provided above. The Borrower may terminate the appointment of any Issuing Bank as an "Issuing Bank" hereunder by providing a written notice thereof to such Issuing Bank, with a copy to the Administrative Agent. Any such termination shall become effective upon the earlier of (i) such Issuing Bank acknowledging receipt of such notice and (ii) the third Business Day following the date of the delivery thereof; provided that no such termination shall become effective until and unless the LC Exposure attributable to Letters of Credit issued by such Issuing Bank (or its Affiliates) shall have been reduced to zero. At the time any such resignation or termination shall become effective, the Borrower shall pay all unpaid fees accrued for the account of the resigning or terminated Issuing Bank pursuant to Section 2.14(c). Notwithstanding the effectiveness of any such resignation or termination, the resigning or terminated Issuing Bank shall remain a party hereto and shall continue to have all the rights of an Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such resignation or termination, but shall not be required to issue any additional Letters of Credit.

Section 2.23 Incremental Facility.

(a) The Borrower may at any time or from time to time after the ClosingSecond Amendment Effective Date, by notice to the Administrative Agent (whereupon the Administrative Agent shall promptly deliver a copy to each of the Lenders), request one or more tranches of term loans (each an "Incremental Term Facility") or an increase in the amount of the Revolving Facility (each, an "Incremental Revolving Facility"; together with the Incremental Term Facilities, each an "Incremental Facility"); provided that (i) at the time of such request, no Event of Default shall have occurred and be continuing, (ii) the Borrower shall be in compliance with the covenants contained in Article VI determined on a pro forma basis as of the last day of the most recent period of the Borrower for which financial statements are available as if any term loans under such Incremental Facility had been outstanding and any revolving commitment under such Incremental Facility (to the extent available to make Loans) had been fully used on the last day of such period; provided, that, for an Incremental Facility that is requested in connection with the financing of a Limited Condition Acquisition, the pro forma financial covenant compliance condition in this clause (ii) shall be computed based on the immediately preceding four fiscal quarter period for which financial statements are available prior to the date on which the definitive acquisition agreement for such Limited Condition Acquisition is entered into and (iii) the aggregate principal amount of the Incremental Facilities shall not exceed the Available Incremental Amount (as determined as of the date of incurrence of any applicable Incremental Facility). Each Incremental Facility shall be in an aggregate principal amount that is not less than $25,000,000 (provided that such amount may be less than $25,000,000 if such amount represents all remaining availability under the limit set forth in the immediately preceding sentence).

(b) (i) Any Incremental Facility shall be ratably secured with the Loans, (ii) any Incremental Term Facility shall not mature earlier than the Maturity Date nor have amortization of greater than 5% of the original principal amount of such Incremental Term Facility per year (except with respect to any Incremental Term Facility to the extent required for such Incremental Term Facility to be tax fungible with (i.e., to be treated as part of the same issue as) a previously issued Incremental Term Facility in accordance with Treasury Regulation 1.1275-2(k)), (iii) the Applicable Margin, Applicable Percentage and the other terms and conditions applicable to any Incremental Revolving Facility shall be the same as those applicable to the Revolving Facility, (iv) the Applicable Margin relating to any Incremental Term Facility shall be determined by the Borrower and the Lenders providing such Incremental Term Facility and (v) any Incremental Term Facility shall otherwise be on terms and pursuant to documentation to be determined by the Borrower and the Persons willing to provide such Incremental Term Facility; provided that to the extent such terms and documentation are not consistent with the then



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existing Facilities (other than with respect to pricing, amortization and maturity) they shall be reasonably satisfactory to the Administrative Agent (it being agreed that Incremental Term Facilities may contain customary mandatory prepayments, voting rights and prepayment premiums). Each notice from the Borrower pursuant to this Section 2.23 shall set forth the requested amount and proposed terms of the relevant Incremental Facility and the Lenders or other Persons willing to provide the Incremental Facility. The Incremental Facility may be provided by any existing Lender or by any Eligible Assignee selected by the Borrower (any such other financial institution or fund being called an "Additional Lender"); provided that the Administrative Agent, the Swingline Lender, and the Issuing Bank shall have consented (not to be unreasonably withheld) to such Additional Lender's providing such Incremental Facility if such consent would be required under Section 10.4 for an assignment of Loans to such Additional Lender. Commitments in respect of Incremental Facilities shall become Commitments under this Agreement pursuant to an amendment (an "Incremental Amendment") to this Agreement and, as appropriate, the other Loan Documents, executed by the Borrower, each Lender agreeing to provide such Commitment, if any, each Additional Lender, if any, and the Administrative Agent pursuant to Section 10.2(b) hereof. The Incremental Amendment may, without need for the consent of any other Lenders, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent and the Borrower, to effect the provisions of this Section 2.23. The effectiveness of any Incremental Amendment shall be subject to the satisfaction on the date thereof (each, an "Incremental Facility Closing Date") of each of the conditions set forth in Section 3.2 (it being understood that all references to the date of a Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit or similar language in such Section 3.2 shall be deemed to refer to the effective date of such Incremental Amendment) and such other conditions, if any, as the parties thereto shall agree; provided, however, that for an Incremental Facility that is requested in connection with the financing of a Limited Condition Acquisition, the effectiveness of any Incremental Amendment shall be subject to the satisfaction on the date thereof of only such conditions precedent as the parties thereto shall agree. The Borrower will use the proceeds of the Incremental Facilities for any purpose not prohibited by this Agreement. No Lender shall be obligated to provide any Incremental Facility, unless it so agrees. The Administrative Agent and the Lenders hereby agree that, other than with respect to any Incremental Revolving Facility, the minimum borrowing, pro rata borrowing and pro rata payment requirements contained elsewhere in this Agreement shall not apply to the transactions effected pursuant to this paragraph. Additionally, after giving effect to any Incremental Revolving Facility, each Lender's and each Additional Lender's, if any, Pro Rata Share of each of the Revolving Commitments and the Revolving Loans shall equal such Lender's and such Additional Lender's Pro Rata Share of the Aggregate Revolving Commitments after giving effect to such Incremental Revolving Facility; providedfurther, that in furtherance of the foregoing and on the Incremental Facility Closing Date, each Lender and each Additional Lender, if any, shall be deemed to have irrevocably sold, transferred, conveyed and assigned to each other Lender and each other Additional Lender, if any (and without, for the avoidance of doubt, increasing or decreasing the aggregate Commitments of such Lender or such Additional Lender after giving effect to such Incremental Revolving Facility), such portion of its Revolving Commitments and Revolving Loans such that, after giving effect to such assignment, each Lender and each Additional Lender, if any, shall hold a Pro Rata Share of each of the Revolving Commitments and Revolving Loans equal to such Lender's or such Additional Lender's Pro Rata Share of the Aggregate Revolving Commitments.

Section 2.24 Mitigation of Obligations. If any Lender requests compensation under Section 2.18, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.20, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the sole judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable under



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Section 2.18 or Section 2.20, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable out-of-pocket costs and expenses incurred by any Lender in connection with such designation or assignment.

Section 2.25 Replacement of Lenders. If (a) any Lender requests compensation under Section 2.18, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.20, (b) any Lender is a Defaulting Lender, (c) in connection with any proposed amendment, modification, termination, waiver or consent with respect to any of the provisions hereof as contemplated by Section 10.2(b), the consent of Required Lenders shall have been obtained but the consent of one or more of such other Lenders (each a "Non-Consenting Lender") whose consent is required shall not have been obtained, (d) any Lender does not accept an Extension Offer, or (e) any Lender under a Refinanced Facility does not participate in the applicable Replacement Facility, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions set forth in Section 10.4(b)), all of its interests, rights (other than its existing rights to payments pursuant to Section 2.18 or 2.20, as applicable) and obligations under this Agreement to an assignee that shall assume such obligations (which assignee may be another Lender) (a "Replacement Lender"); provided that (i) the Borrower shall have received the prior written consent of the Administrative Agent, which consent shall not be unreasonably withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal amount of all Loans owed to it, accrued interest thereon, accrued fees and all other amounts payable to it hereunder from the assignee (in the case of such outstanding principal and accrued interest) and from the Borrower (in the case of all other amounts), (iii) in the case of a claim for compensation under Section 2.18 or payments required to be made pursuant to Section 2.20, such assignment will result in a reduction in such compensation or payments, and (iv) in the case of a Non-Consenting Lender, each Replacement Lender shall consent, at the time of such assignment, to each matter in respect of which such terminated Lender was a Non-Consenting Lender. A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

Section 2.26 Defaulting Lenders.

(a) Cash Collateral.

(i) At any time that there shall exist a Defaulting Lender, within two Business Days following the written request of the Administrative Agent or the Issuing Bank (with a copy to the Administrative Agent) the Borrower shall Cash Collateralize the Issuing Bank's LC Exposure with respect to such Defaulting Lender (determined after giving effect to Section 2.26(b)(iv) and any Cash Collateral provided by such Defaulting Lender) in an amount not less than 105% of the Dollar Equivalent of the Issuing Bank's LC Exposure with respect to such Defaulting Lender.

(ii) The Borrower, and to the extent provided by any Defaulting Lender, such Defaulting Lender, hereby grants to the Administrative Agent, for the benefit of the Issuing Bank, and agrees to maintain, a first priority security interest in all such Cash Collateral as security for the Defaulting Lenders' obligation to fund participations in respect of Letters of Credit, to be applied pursuant to clause (iii) below. If at any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Administrative Agent and the Issuing Bank as herein



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provided, or that the total amount of such Cash Collateral is less than the minimum amount required pursuant to clause (i) above, the Borrower will, promptly upon demand by the Administrative Agent, pay or provide to the Administrative Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency (after giving effect to any Cash Collateral provided by the Defaulting Lender).

(iii) Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under this Section 2.26(a) or Section 2.26(b) in respect of Letters of Credit shall be applied to the satisfaction of the Defaulting Lender's obligation to fund participations in respect of Letters of Credit or LC Disbursements (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) for which the Cash Collateral was so provided, prior to any other application of such property as may otherwise be provided for herein.

(iv) Cash Collateral (or the appropriate portion thereof) provided to reduce any Issuing Bank's LC Exposure shall no longer be required to be held as Cash Collateral pursuant to this Section 2.26(a) following (i) the elimination of the applicable LC Exposure (including by the termination of Defaulting Lender status of the applicable Lender), or (ii) the determination by the Administrative Agent and the Issuing Bank that there exists excess Cash Collateral; provided that, subject to Section 2.26(b) through (d) the Person providing Cash Collateral and each Issuing Bank may agree that Cash Collateral shall be held to support future anticipated LC Exposure or other obligations and provided further that to the extent that such Cash Collateral was provided by the Borrower, such Cash Collateral shall remain subject to the security interest granted pursuant to the Loan Documents.

(b) Defaulting Lender Adjustments. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable law:

(i) Such Defaulting Lender's right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of Required Lenders and in Section 10.2.

(ii) Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VIII or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 10.7 shall be applied at such time or times as may be determined by the Administrative Agent as follows: first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to the Issuing Bank or Swingline Lender hereunder; third, to Cash Collateralize the Issuing Bank's LC Exposure with respect to such Defaulting Lender in accordance with Section 2.26(a); fourth, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; fifth, if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to (x) satisfy such Defaulting Lender's potential future funding obligations with respect to Loans under this Agreement and (y) Cash Collateralize the Issuing



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Banks' future LC Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement, in accordance with Section 2.26(a); sixth, to the payment of any amounts owing to the Lenders, the Issuing Bank or Swingline Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the Issuing Bank or Swingline Lender against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; seventh, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; and eighth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Loans or LC Disbursements in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made or the related Letters of Credit were issued at a time when the conditions set forth in Section 3.2 were satisfied or waived, such payment shall be applied solely to pay the Loans of, and LC Disbursements owed to, all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or LC Disbursements owed to, such Defaulting Lender until such time as all Loans and funded and unfunded participations in LC Disbursements and Swingline Loans are held by the Lenders pro rata in accordance with the Commitments under the applicable Facility without giving effect to sub-section (iv) below. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this Section 2.26(b)(ii) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

(iii) (A) No Defaulting Lender shall be entitled to receive any commitment Fee pursuant to Section 2.14(b) for any period during which that Lender is a Defaulting Lender (and the Borrower shall not be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender).

(B) Each Defaulting Lender shall be entitled to receive letter of credit fees pursuant to Section 2.14(c) for any period during which that Lender is a Defaulting Lender only to the extent allocable to that portion of its LC Exposure for which it has provided Cash Collateral pursuant to Section 2.26(a).

(C) With respect to any commitment fee or letter of credit fee not required to be paid to any Defaulting Lender pursuant to clause (A) or (B) above, the Borrower shall (x) pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender's participation in Letters of Credit or Swingline Loans that has been reallocated to such Non-Defaulting Lender pursuant to clause (iv) below, (y) pay to each Issuing Bank and Swingline Lender, as applicable, the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to the Issuing Bank's LC Exposure or Swingline Lender's Swingline Exposure with respect to such Defaulting Lender, and (z) not be required to pay the remaining amount of any such fee.



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(iv) All or any part of such Defaulting Lender's participation in Letters of Credit and Swingline Loans shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Pro Rata Shares of the Revolving Commitments (calculated without regard to such Defaulting Lender's Revolving Commitment) but only to the extent that (x) the conditions set forth in Section 3.2 are satisfied at the time of such reallocation (and, unless the Borrower shall have otherwise notified the Administrative Agent at such time, the Borrower shall be deemed to have represented and warranted that such conditions are satisfied at such time), and (y) such reallocation does not cause the Dollar Equivalent of the aggregate Revolving Credit Exposure of any Non-Defaulting Lender to exceed such Non-Defaulting Lender's Revolving Commitment. Subject to Section 10.18, no reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender's increased exposure following such reallocation.

(v) If the reallocation described in clause (iv) above cannot, or can only partially, be effected, the Borrower shall, without prejudice to any right or remedy available to it hereunder or under law, (x) first, prepay Swingline Loans in an amount equal to the Swingline Lender's Swingline Exposure with respect to such Defaulting Lender and (y) second, Cash Collateralize the Issuing Banks' LC Exposure with respect to such Defaulting Lender in accordance with the procedures set forth in Section 2.26(a).

(c) Defaulting Lender Cure. If the Borrower, the Administrative Agent, Swingline Lender and Issuing Bank agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit and Swingline Loans to be held pro rata by the Lenders in accordance with the applicable Commitments (without giving effect to Section 2.26(b)(iv)), whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender.

(d) New Swingline Loans/Letters of Credit. So long as any Lender is a Defaulting Lender, (i) the Swingline Lender shall not be required to fund any Swingline Loans unless it is satisfied that it will have no Swingline Exposure after giving effect to such Swingline Loan and (ii) no Issuing Bank shall be required to issue, extend, renew or increase any Letter of Credit unless it is satisfied that it will have no LC Exposure after giving effect thereto.

Section 2.27 Extension Offers.

(a) The Borrower may, on one or more occasions, by written notice to the Administrative Agent, make one or more offers (each, an "Extension Offer") to all the Lenders of one or more Facilities (each Facility subject to such an Extension Offer, an "Extension Request Facility"), in each case to extend the final maturity date of such Lenders' respective Loans and commitments under such Facility to a later maturity date and to make one or more other Extension Permitted Amendments pursuant to procedures reasonably specified by the Administrative Agent and reasonably acceptable to



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the Borrower. Such Extension Offer shall set forth the terms and conditions of the requested Extension Permitted Amendments, the date on which the Extension Agreement (as defined below) is requested to become effective (which date shall be acceptable to the Administrative Agent) and such other principal terms on which the Borrower proposes to enter into the Extension Agreement. Extension Permitted Amendments shall become effective only with respect to the Loans and commitments of the Lenders of the Extension Request Facility that accept the applicable Extension Offer (such Lenders, the "Accepting Lenders") and, in the case of any Accepting Lender, only with respect to such Lender's Loans and commitments of such Extension Request Facility. No Lender shall have any obligation to accept any such Extension Offer.

(b) The Borrower, each Accepting Lender and the Administrative Agent shall execute and deliver an amendment agreement (the "Extension Agreement") and such other documentation as the Administrative Agent shall reasonably specify to evidence the Extension Permitted Amendments and the terms and conditions thereof and such amendment will be effective to amend this Agreement and the other Loan Documents on the terms set forth therein without need for the consent of any other Lender; provided that no Extension Agreement may alter the rights of any Lender (other than the applicable Accepting Lenders) in any manner that would not be permitted under Section 10.2 without the consent of such Lender unless such consent shall have been obtained. The effectiveness of any Extension Agreement shall be subject to such conditions precedent as the parties thereto shall agree. The Administrative Agent and the Lenders hereby agree that the minimum borrowing, pro rata borrowing and pro rata payment requirements contained elsewhere in this Agreement shall not apply to the transactions effected pursuant to this paragraph.

(c) The Administrative Agent shall promptly notify each Lender as to the effectiveness of an Extension Agreement. Each Extension Agreement may, without the consent of any Lender other than the applicable Accepting Lenders, effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the opinion of the Administrative Agent, to give effect to the provisions of this Section, including any amendments necessary to treat the applicable Loans and/or commitments of the Accepting Lenders as a new "Facility" of loans and/or commitments hereunder; provided that, in the case of any Extension Offer relating to Revolving Commitments or Revolving Loans, except as otherwise agreed to by the Issuing Bank and the Swingline Lender, (i) the allocation of the participation exposure with respect to any then-existing or subsequently issued or made Letter of Credit or Swingline Loan under the applicable Facility as between the commitments of such new "Facility" and the remaining Revolving Commitments under the applicable Facility shall be made on a ratable basis as between the commitments of such new "Facility" and the remaining Revolving Commitments under such Facility and (ii) the Availability Period and the Maturity Date, as such terms are used in reference to Letters of Credit or Swingline Loans, may not be extended without the prior written consent of the Issuing Bank and Swingline Lender, as applicable.

Section 2.28 Judgment Currency. If, for the purposes of obtaining judgment in any court, it is necessary to convert a sum due from the Borrower hereunder in the currency expressed to be payable herein (the "specified currency") into another currency, the parties hereto agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking procedures the Administrative Agent could purchase the specified currency with such other currency at the Administrative Agent's main Atlanta office on the Business Day preceding that on which final, non-appealable judgment is given. The obligations of the Borrower in respect of any sum due to the Administrative Agent, the Issuing Bank or any Lender hereunder shall, notwithstanding any judgment in a currency other than the specified currency, be discharged only to the extent that on the Business Day following receipt by the Administrative Agent, the Issuing Bank or such Lender of any sum adjudged to be so due in such other currency the Administrative Agent, the Issuing Bank or such Lender



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may in accordance with normal, reasonable banking procedures purchase the specified currency with such other currency. If the amount of the specified currency so purchased is less than the sum originally due to the Administrative Agent, the Issuing Bank or such Lender in the specified currency, the Borrower agrees, to the fullest extent that it may effectively do so, as a separate obligation and notwithstanding any such judgment, to indemnify the Administrative Agent, the Issuing Bank or such Lender against such loss, and if the amount of the specified currency so purchased exceeds (a) the sum originally due to the Administrative Agent, the Issuing Bank or any Lender in the specified currency and (b) any amounts shared with other Lenders as a result of allocations of such excess as a disproportionate payment to such Lender under Section 2.21, the Administrative Agent, the Issuing Bank or such Lender agrees to remit such excess to the Borrower.

ARTICLE III.

CONDITIONS PRECEDENT TO LOANS AND LETTERS OF CREDIT

Section 3.1 Conditions to Effectiveness. The obligations of the Lenders (including the Swingline Lender) to make Loans and the obligation of the Issuing Bank to issue any Letters of Credit hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 10.2):

(a) The Administrative Agent shall have received payment of all fees payable on or prior to the Closing Date and, to the extent invoiced at least one Business Day prior to the Closing Date, reimbursement or payment of all reasonable and documented out-of-pocket expenses of the Administrative Agent, the Left Lead Arranger and their Affiliates (including reasonable fees, charges and disbursements of counsel to the Administrative Agent) required to be reimbursed or paid by the Borrower hereunder, under any other Loan Document and under any agreement with the Administrative Agent or the Left Lead Arranger.

(b) The Administrative Agent (or its counsel) shall have received the following, each to be in form and substance satisfactory to the Administrative Agent:

(i) a counterpart of this Agreement signed by or on behalf of each party hereto or written evidence satisfactory to the Administrative Agent (which may include telecopy or electronic transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement;

(ii) a certificate of the Secretary, Assistant Secretary, or other Responsible Officer of each Loan Party, attaching and certifying as to, and as applicable: (A) copies of the articles or certificate of incorporation, certificate of organization or limited partnership, or other registered organizational documents of each Loan Party, certified as of a recent date by the Secretary of State of the jurisdiction of organization of such Loan Party, (B) copies of its bylaws, partnership agreement, limited liability company agreement, or similar organizational document, (C) the resolutions of its board of directors or other equivalent governing body, or comparable organizational authorizations, authorizing the execution, delivery and performance of the Loan Documents to which it is a party, (D) the name, title and true signature of each officer of such Loan Party executing the Loan Documents to which it is a party, and (E) certificates of good standing from the Secretary of State of the jurisdiction of organization of such Loan Party;



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(iii) a favorable written opinion of Ropes & Gray LLP, counsel to the Loan Parties, addressed to the Administrative Agent, the Issuing Bank and each of the Lenders, and covering such matters relating to the Loan Parties, the Loan Documents and the transactions contemplated therein as the Administrative Agent shall reasonably request;

(iv) a certificate dated the Closing Date and signed by a Responsible Officer, certifying that after giving effect to the funding of any initial Revolving Borrowing, (x) no Default or Event of Default exist and (y) all representations and warranties of each Loan Party set forth in the Loan Documents are true and correct in all material respects;

(v) projections through December 31, 2020 prepared in good faith on the basis of the assumptions stated therein;

(vi) a duly executed Notice of Borrowing for any initial Revolving Borrowing;

(vii) if applicable, a duly executed funds disbursement letter, together with a report setting forth the sources and uses of the proceeds hereof;

(viii) a certificate, dated the Closing Date and signed by a Responsible Officer of the Borrower, confirming that the Borrower and its Subsidiaries on a consolidated basis are Solvent after giving effect to the funding of any initial Revolving Borrowing and the consummation of the transactions contemplated to occur on the Closing Date;

(ix) the Guarantee and Collateral Agreement, duly executed by the Borrower and each of the Guarantors, together with (A) UCC financing statements and other applicable documents under the laws of all necessary or appropriate jurisdictions with respect to the perfection of the Liens granted under the Guarantee and Collateral Agreement, as requested by the Administrative Agent in order to perfect such Liens, duly authorized by the Loan Parties, (B) copies of favorable UCC, tax, and judgment lien search reports in all necessary or appropriate jurisdictions and under all legal and trade names of the Loan Parties, as requested by the Administrative Agent, indicating that there are no prior Liens on any of the Collateral other than Liens permitted hereunder, (C) that certain perfection certificate, duly completed and executed by the Loan Parties, and (D) duly executed Patent Security Agreements, Trademark Security Agreements and Copyright Security Agreements;

(x) at least three (3) days prior to the date of this Agreement, all documentation and other information required by bank regulatory authorities or reasonably requested by the Administrative Agent or any Lender under or in respect of applicable "know your customer" and anti-money laundering Requirements of Law, including the Patriot Act and, if Borrower qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, a Beneficial Ownership Certification in relation to Borrower; and

(xi) certificates of insurance, in form and detail acceptable to the Administrative Agent, describing the types and amounts of insurance (property and liability) maintained by any of the Loan Parties, in each case complying with the requirements set forth in Section 5.2 of the Guarantee and Collateral Agreement.



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Without limiting the generality of the provisions of this Section, for purposes of determining compliance with the conditions specified in this Section, each Lender that has signed this Agreement shall be deemed to have consented to, approved of, accepted or been satisfied with each document or other matter required thereunder to be consented to, approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

Section 3.2 Conditions to Each Credit Event. The obligation of each Lender to make a Loan on the occasion of any Revolving Borrowing and of the Issuing Bank to issue, amend, renew or extend any Letter of Credit is subject to Section 2.26(d), as applicable, and the satisfaction of the following conditions:

(a) at the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default or Event of Default shall exist;

(b) at the time of and immediately after giving effect to such Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, all representations and warranties of each Loan Party set forth in the Loan Documents shall be true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case such representations and warranties shall be true and correct in all respects);

(c) the Borrower shall have delivered the required Notice of Borrowing; and

(d) with respect to each issuance, amendment, renewal or extension of any Letter of Credit to be denominated in an Alternative Currency, such currency remains an Eligible Currency.

Each Revolving Borrowing and each issuance, amendment, renewal or extension of any Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in subsections (a) and (b) of this Section.

Section 3.3 Delivery of Documents. All of the Loan Documents, certificates, legal opinions and other documents and papers referred to in this Article, unless otherwise specified, shall be delivered to the Administrative Agent for the account of each of the Lenders.

ARTICLE IV.

REPRESENTATIONS AND WARRANTIES

The Borrower represents and warrants to the Administrative Agent, each Lender and the Issuing Bank as follows:

Section 4.1 No Change. Since December 31, 2020, there has been no development or event that has had a Material Adverse Effect.



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Section 4.2 Existence; Compliance With Law. Each Group Member (a) is duly organized or formed, validly existing and in good standing (in the case of Foreign Subsidiaries, solely to the extent such concepts, or the functional equivalent thereof, apply) under the laws of the jurisdiction of its organization or formation thereof, (b) has (i) all power and authority and (ii) all governmental licenses, authorizations consents and approvals, in each case, to own or lease its assets and carry on its business in which it is currently engaged, (c) is duly qualified and is licensed and, as applicable, in good standing (in the case of Foreign Subsidiaries, solely to the extent such concepts, or the functional equivalent thereof, apply) under the laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license and (d) is in compliance with all Requirements of Law, except in the case of (b)(ii), (c) and (d) when the failure to do so would not reasonably be expected to have a Material Adverse Effect.

Section 4.3 Power; Authorization; Enforceable Obligations. Each Loan Party has the power and authority, and the legal right, to make, deliver and perform the Loan Documents to which it is a party and, in the case of the Borrower, to obtain extensions of credit hereunder. Each Loan Party has taken all necessary organizational action to authorize the execution, delivery and performance of the Loan Documents to which it is a party and, in the case of the Borrower, to authorize the extensions of credit on the terms and conditions of this Agreement. No consent or authorization of, filing with, notice to or other act by or in respect of, any Governmental Authority or any other Person is required in connection with the extensions of credit hereunder or with the execution, delivery, performance, validity or enforceability of this Agreement or any of the Loan Documents except (i) consents, authorizations, filings and notices described on Schedule 4.3, which consents, authorizations, filings and notices have been obtained or made and are in full force and effect, (ii) the filings referred to in Section 4.20, (iii) filings required under the Exchange Act in respect of the transactions contemplated hereby, and (iv) consents, authorizations, filings and notices required under the laws of the jurisdiction of organization of any Foreign Subsidiary in respect of the grant of a security interest in respect of its Capital Stock pursuant to the Guarantee and Collateral Agreement or any other Security Document. Each Loan Document has been duly executed and delivered on behalf of each Loan Party party thereto. This Agreement constitutes, and each other Loan Document upon execution will constitute, a legal, valid and binding obligation of each Loan Party party thereto, enforceable against each such Loan Party in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

Section 4.4 No Legal Bar. The execution, delivery and performance of this Agreement and the other Loan Documents, the issuance of Letters of Credit, the borrowings hereunder and the use of the proceeds thereof will not violate any Requirement of Law, any Loan Party's organizational documents, or any material Contractual Obligation of any Loan Party, except for violations that would not reasonably be expected to have a Material Adverse Effect, and will not result in, or require, the creation or imposition of any Lien on any of their respective properties or revenues pursuant to any Requirement of Law or any such Contractual Obligation (other than the Liens created by the Loan Documents).

Section 4.5 Litigation. There are no actions, suits, proceedings, claims, disputes or investigations of or before any Governmental Authority, pending or, to the knowledge of any Group Member, threatened in writing, at law or in equity, by or against the Borrower or any Restricted Subsidiary or against any of their properties or revenues that (a) either individually or in the aggregate could reasonably be expected to have a Material Adverse Effect or (b) purport to affect or pertain to this Agreement or any other Loan Document or any of the transactions contemplated hereby.



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Section 4.6 No Default. No Group Member is in default under or with respect to any Contractual Obligation that, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. No Default or Event of Default has occurred and is continuing or would result from the consummation of the transactions contemplated by this Agreement or any other Loan Document.

Section 4.7 Ownership of Property; Liens. Except in each case as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, each Group Member has title in fee simple to, or a valid leasehold, subleasehold, license or other interest in, all its real property, and good title to, or a valid leasehold interest in, all its other property, and none of such property, except for minor encumbrances and defects in title that do not materially interfere with its ability to conduct its business as currently conducted or to utilize such properties and assets for their intended purposes is subject to any Lien except as permitted by Section 7.2.

Section 4.8 Intellectual Property. Except as would not reasonably be expected to have a Material Adverse Effect: each Group Member owns, or is licensed to use, all Intellectual Property necessary for the conduct of its business as currently conducted; no claim has been asserted and is pending by any Person against any Group Member challenging or questioning the use of any Intellectual Property or the validity or effectiveness of any Intellectual Property of any Group Member, nor does the Borrower know of any valid basis for any such claim; and to the knowledge of the Borrower, no use by any Group Member of any of its Intellectual Property or the Collateral infringes on the intellectual property rights of any Person. Except as would not reasonably be expected to have a Material Adverse Effect, all necessary registration, maintenance, renewal and other relevant filing fees in connection with any of the Intellectual Property that is the subject of a registration or an application for registration have been timely paid, and all necessary documents, certificates and filings in connection with the Intellectual Property have been timely filed with the relevant Governmental Authority and internet domain name registrar(s) for the purpose of maintaining such Intellectual Property and all registrations and applications therefor.

Section 4.9 Taxes. Each Group Member has filed or caused to be filed all Federal and material state and other material Tax returns that are required to be filed and has paid all Taxes shown to be due and payable on said returns or on any material assessments made against it or any of its property and all other material Taxes imposed on it or any of its property by any Governmental Authority (except any such Taxes the amount or validity of which are currently being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP (where GAAP requires such reserves) have been provided on the books of the relevant Group Member).

Section 4.10 Margin Regulations. No part of the proceeds of any Loans, and no other extensions of credit hereunder, will be used (a) for "buying" or "carrying" any "margin stock" within the respective meanings of each of the quoted terms under Regulation U as now and from time to time hereafter in effect for any purpose that violates the provisions of the Regulationsregulations of the Federal Reserve Board or (b) for any purpose that violates the provisions of the Regulationsregulations of the Federal Reserve Board. Neither the Borrower nor any of its Subsidiaries is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying "margin stock".

Section 4.11 Labor Matters. Except as, in the aggregate, would not reasonably be expected to have a Material Adverse Effect: (a) there are no strikes or other labor disputes against any Group Member pending or, to the knowledge of the Borrower, threatened; (b) hours worked by and payment made to employees of each Loan Party have not been in violation of the Fair Labor Standards Act or any



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other applicable Requirement of Law dealing with such matters; and (c) all payments due from any Group Member on account of employee health and welfare insurance have been, in all material respects, paid or accrued as a liability on the books of the relevant Group Member.

Section 4.12 ERISA. Except, in the aggregate, as would not reasonably be expected to result in a Material Adverse Effect, (a) each Loan Party and each of their respective ERISA Affiliates is in compliance with the applicable provisions of ERISA and the Code relating to Single Employer Plans and Multiemployer Plans and the regulations and published interpretations thereunder and (b) no ERISA Event has occurred.

Section 4.13 Investment Company Act. No Loan Party is an "investment company", or a company "controlled by" an "investment company" as defined in the Investment Company Act of 1940.

Section 4.14Subsidiaries. As of the Closing Date, (a) Schedule 4.14 sets forth the name and jurisdiction of incorporation of each Subsidiary and, as to each such Subsidiary, the percentage of each class of Capital Stock owned by any Loan Party and (b) except as set forth on Schedule 4.14, there are no outstanding subscriptions, options, warrants, calls, rights or other agreements or commitments (other than stock options or similar equity awards granted to current or former employees or directors and directors' qualifying shares) of any nature relating to any Capital Stock of any Subsidiary.

Section 4.15 Use of Proceeds. The proceeds of the Loans shall be used for working capital and general corporate purposes, including to finance acquisitions and fund Restricted Payments.

Section 4.16 Environmental Matters. Except as, in the aggregate, would not reasonably be expected to have a Material Adverse Effect:

(a) the facilities and properties owned, leased or operated by any Group Member (the "Properties") do not contain, and to the knowledge of the Borrower, have not previously contained, any Materials of Environmental Concern in amounts or concentrations or under circumstances that constitute or constituted a violation by any Group Member of, or could give rise to liability of any Group Member under, any Environmental Law;

(b) no Group Member has received any written or, to the knowledge of the Borrower, oral notice of violation, alleged violation, non-compliance, liability or potential liability regarding environmental matters or compliance with Environmental Laws with regard to any of the Properties or the business operated by any Group Member (the "Business"), nor does the Borrower have knowledge or reason to believe that any such notice is being threatened;

(c) Materials of Environmental Concern have not been transported or disposed of from the Properties during the last five years by any Group Member or, to the knowledge of the Borrower, other Person or, to the knowledge of the Borrower, any prior time in violation of, or in a manner or to a location that could give rise to liability of any Group Member under, any Environmental Law, nor have any Materials of Environmental Concern been generated, treated, stored or disposed of at, on or under any of the Properties during the last five years by any Group Member or, to the knowledge of the Borrower, other Person or, to the knowledge of the Borrower, any prior time in violation of, or in a manner that could give rise to liability of any Group Member under, any applicable Environmental Law;



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(d) no judicial proceeding or governmental or administrative action is pending or, to the knowledge of the Borrower, threatened, under any Environmental Law to which any Group Member is or will be named as a party with respect to the Properties or the Business, nor are there any consent decrees or other decrees, consent orders, administrative orders or other orders, or other administrative or judicial requirements outstanding against any Group Member or, to the knowledge of the Borrower, other Person under any Environmental Law with respect to the Properties or the Business;

(e) there has been no release or threat of release of Materials of Environmental Concern at or from the Properties, or arising from or related to the operations of any Group Member in connection with the Properties or otherwise in connection with the Business, during the last five years or, to the knowledge of the Borrower, any prior time in violation of or in amounts or in a manner that could give rise to liability of any Group Member under Environmental Laws;

(f) the Properties and all operations at the Properties are in compliance, and have in the last five years and, to the knowledge of the Borrower, at all prior times been in compliance, with all Environmental Laws, and there is no contamination at, under or about the Properties that could give rise to liability of any Group Member or violation of any Environmental Law with respect to the Properties or the Business; and

(g) no Group Member has assumed any liability by contract or, to the knowledge of the Borrower, operation of law, of any other Person under Environmental Laws.



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Section 4.17 Accuracy of Information, Etc. No factual written statement or information contained in this Agreement, any other Loan Document or any other document or certificate furnished by or on behalf of any Group Member to the Administrative Agent, the Lenders, or any of them on or prior to the Closing Date, for use in connection with the transactions contemplated by this Agreement or the other Loan Documents (other than, for the avoidance of doubt, any estimates, projections or pro forma information), when taken as a whole, contained as of the date such statement, information, document or certificate was so furnished, any untrue statement of a material fact or omitted to state a material fact necessary to make the statements contained herein or therein not materially misleading in light of the circumstances when made. The projections and pro forma information contained in the materials referenced above are based upon good faith estimates and assumptions believed by management of the Borrower to be reasonable at the time made, it being recognized by the Lenders that such projections as they relate to future events are subject to significant uncertainties, many of which are beyond the control of the Borrower and not to be viewed as fact or a guarantee of performance and that actual results during the period or periods covered by such projections may differ from the projected results set forth therein by a material amount.

Section 4.18 Financial Statements. The audited consolidated balance sheet of the Borrower and its consolidated Subsidiaries as of December 31, 2019 and the related statements of income and cash flow for the fiscal year ending on such date as heretofore furnished to the Administrative Agent, are complete and correct in all material respects and fairly present in all material respects the financial condition of the Borrower and its Subsidiaries, on a consolidated basis, on such date. Such financial statements, including the related schedules and notes thereto, have been prepared in conformity with GAAP applied on a consistent basis, and all liabilities, direct and contingent, of the Borrower on a consolidated basis with its Subsidiaries on such date required to be disclosed pursuant to GAAP are disclosed in such financial statements.

Section 4.19 Insurance. All policies of insurance of any kind or nature owned by or issued to each Group Member, including policies of life, fire, theft, product liability, public liability, property damage, other casualty, employee fidelity, workers' compensation, employee health and welfare, property and liability insurance, are (a) in full force and effect except to the extent commercially reasonably determined by the Borrower not to be necessary pursuant to clause (b) of this Section 4.19 or which are not material to the Group Member's overall coverage and (b) are of a nature and provide such coverage as in the reasonable opinion of the Borrower, is sufficient and is customarily carried by companies of the size and character of the Group Members.

Section 4.20 Security Documents.

(a) The Guarantee and Collateral Agreement is effective to create in favor of the Administrative Agent, for the benefit of the Secured Parties, a legal, valid and enforceable security interest in the Collateral described therein and proceeds thereof. In the case of the Pledged Stock described in the Guarantee and Collateral Agreement, when stock certificates representing such Pledged Stock are delivered to the Administrative Agent (together with a properly completed and signed stock power or endorsement), and in the case of the other Collateral described in the Guarantee and Collateral Agreement, when financing statements and other filings specified on Schedule 4.20(a) in appropriate form are filed in the offices specified on Schedule 4.20(a) together with payment of any filing or recordation fees, or, with respect to after-acquired property, when the requirements set forth in Section 5.9 have been complied with, the Administrative Agent shall have a fully perfected Lien on, and security interest in, all right, title and interest of the Loan Parties in such Collateral (except for registration of and application for Intellectual Property filed outside the United States) to the extent such Lien can be perfected by the filing of financing statements under the applicable UCC, as security for the Obligations



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(as defined in the Guarantee and Collateral Agreement), in each case prior and superior in right to any other Person (except (x) in the case of Collateral other than Pledged Stock, Liens permitted by Section 7.2 and (y) in the case of Collateral constituting Pledged Stock, inchoate Liens arising by operation of law), in each case, to the extent required by the Guarantee and Collateral Agreement.

(b) To the extent applicable, each of the Mortgages, if any, entered into pursuant to Section 5.9(d) is effective to create in favor of the Administrative Agent, for the benefit of the Secured Parties, a legal, valid and enforceable Lien on the property described therein, and when the Mortgages are filed in the appropriate offices, each such Mortgage shall constitute a Lien on, and security interest in, all right, title and interest of the Loan Parties in the subject property, as security for the Obligations (as defined in the relevant Mortgage), in each case prior and superior in right to any other Person (except Liens permitted by Section 7.2).

Section 4.21 Solvency. After giving effect to the occurrence of the Closing Date and the incurrence of all Indebtedness and Obligations being incurred in connection herewith, the Borrower and its Subsidiaries on a consolidated basis are Solvent.

Section 4.22 Sanctions and Anti-Corruption Laws.

The Borrower has implemented and maintains in effect policies and procedures designed (in its reasonable business judgment) to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents (in their respective capacities as such) with Anti-Corruption Laws and applicable Sanctions, and the Borrower and its Subsidiaries and to the knowledge of the Borrower their respective directors, officers, employees and agents (in their respective capacities as such), are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects. None of (a) the Borrower or any Subsidiary or to the knowledge of the Borrower any of their respective directors, officers or employees, or (b) to the knowledge of the Borrower, any duly appointed agent of the Borrower or any Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person, in each case where such status as a Sanctioned Person would violate applicable Sanctions. No borrowing of any Loan or Letter of Credit or use by any Group Member thereof will violate Anti-Corruption Laws or applicable Sanctions.

Section 4.23 Affected Financial Institutions. Neither the Borrower nor any Subsidiary is an Affected Financial Institution.

ARTICLE V.

AFFIRMATIVE COVENANTS

Until the Commitments have expired or been terminated and all Obligations (other than contingent obligations as to which no claim has been made by the Person entitled thereto) have been paid in full and all Letters of Credit shall have expired or terminated, in each case without any pending draw, or all such Letters of Credit shall have been cash collateralized to the satisfaction of the Issuing Bank, and all LC Disbursements shall have been reimbursed, the Borrower covenants and agrees with the Lenders that, it shall and shall cause each of its Restricted Subsidiaries to:

Section 5.1 Financial Statements. Furnish to the Administrative Agent (who shall provide to each Lender):

(a) promptly after available, but in any event not later than 60 days after the end of each fiscal year of the Borrower (or, if applicable, any later date (not to exceed 120 days after the end of the applicable fiscal year of the Borrower) to which the SEC has extended the applicable deadline for the Borrower to file disclosure reports containing such financial statements), commencing with the fiscal year ending on or about December 31, 2020, a copy of the audited consolidated balance sheet of the Borrower and its Restricted Subsidiaries as at the end of such year and the related audited consolidated statements of income and of cash flows for such year, setting forth in each case, in comparative form the figures for the previous year, reported on without a going concern qualification or qualification arising out of the scope of the audit, by independent certified public accountants of nationally recognized standing (except for any qualification pertaining to the maturity of any Indebtedness occurring within twelve (12) months of the date of the relevant audit);



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(b) promptly after available, but in any event not later than 40 days after the end of each of the first three quarterly periods of each fiscal year of the Borrower (or, if applicable, any later date (not to exceed 60 days after the end of the applicable fiscal quarter year of the Borrower) to which the SEC has extended the applicable deadline for the Borrower to file disclosure reports containing such financial statements), commencing with the fiscal quarter ended on or about March 31, 2020, the unaudited consolidated balance sheet of the Borrower and its Restricted Subsidiaries as at the end of such quarter and the related unaudited consolidated statements of income and of cash flows for such quarter and the portion of the fiscal year through the end of such quarter, setting forth in each case, in comparative form the figures for the previous year, certified by a Responsible Officer, on behalf of the Borrower, as being fairly stated in all material respects; and

(c) promptly after available, but in any event not later than 60 days after the end of each fiscal year of the Borrower, a detailed consolidated budget of the Borrower and its Subsidiaries in reasonable detail for that fiscal year as customarily prepared by management of the Borrower for its internal use consistent in scope with the financial statements provided pursuant to Section 5.1(a) (but including, in any event, a projected consolidated balance sheet of the Borrower and its Restricted Subsidiaries as of the end of the following fiscal year, and the related consolidated statements of projected cash flow and projected income for such following fiscal year).

All such financial statements shall be prepared in reasonable detail and in accordance with GAAP applied (except (i) as approved by such accountants or officer, as the case may be, and disclosed in reasonable detail therein and (ii) with respect to unaudited statements, the absence of footnote disclosure and subject to year-end audit adjustments) consistently throughout the periods reflected therein.

The Borrower hereby acknowledges that (a) the Administrative Agent and/or the Arrangers will make available to the Lenders and each Issuing Bank materials and/or information provided by or on behalf of the Borrower hereunder (collectively, "Borrower Materials") by posting the Borrower Materials on the Platform and (b) certain of the Lenders (each, a "Public Lender") may have personnel who do not wish to receive material non-public information with respect to the Borrower or its Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such Persons' securities. The Borrower hereby agrees that (w) at the Administrative Agent's request, all Borrower Materials that are to be made available to Public Lenders shall be clearly and conspicuously marked "PUBLIC" which, at a minimum, shall mean that the word "PUBLIC" shall appear prominently on the first page thereof; (x) by marking Borrower Materials "PUBLIC", the Borrower shall be deemed to have authorized the Administrative Agent, the Arrangers, the Issuing Bank and the Lenders to treat such Borrower Materials as not containing any material non-public information (although it may be sensitive and proprietary) with respect to the Borrower or its securities for purposes of United States Federal and state securities laws (provided, however, that to the



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extent such Borrower Materials constitute confidential information, they shall be treated as set forth in Section10.12); (y) all Borrower Materials marked "PUBLIC" are permitted to be made available through a portion of the Platform designated "Public Side Information"; and (z) the Administrative Agent and the Arrangers shall be entitled to treat any Borrower Materials that are not marked "PUBLIC" as being suitable only for posting on a portion of the Platform not designated "Public Side Information". Notwithstanding the foregoing, the Borrower shall be under no obligation to mark any Borrower Materials "PUBLIC."

Section 5.2 Certificates; Other Information. Furnish to the Administrative Agent which shall make such item available to each Lender (or, in the case of clauses (f) and (g), to the relevant Lender):

(a) concurrently with the delivery of any financial statements pursuant to Section 5.1(a) or (b), (i) a certificate of the Borrower stating that the Responsible Officer executing such certificate on behalf of the Borrower has no knowledge of any Default or Event of Default except as specified in such certificate, (ii) commencing with the quarter ending September 30, 2020, a Compliance Certificate containing all information and calculations necessary for determining compliance by the Borrower with Article VI, including supporting calculations in reasonable detail, (iii) in the case of quarterly or annual financial statements, to the extent not previously disclosed to the Administrative Agent, (1) a description of any change in the jurisdiction of organization of any Loan Party, (2) a description of any Domestic Subsidiary acquired or created, including name and jurisdiction of organization, (3) a description of any Person that has become a Loan Party, in each case since the date of the most recent report delivered pursuant to this clause (iii) (or, in the case of the first such report so delivered, since the Closing Date) and (4) notice of any amount in excess of $2,000,000 payable under or in connection with any of the Collateral being evidenced by any Instrument, Certificated Security or Chattel Paper (each as defined in the Guarantee and Collateral Agreement), (iv) (A) a summary of the pro forma adjustments necessary to eliminate the accounts of Unrestricted Subsidiaries (if any) from such financial statements, (B) a list identifying each subsidiary of the Borrower as a Restricted Subsidiary or an Unrestricted Subsidiary as of the date of delivery of such Compliance Certificate or confirmation that there is no change in such information since the later of the Closing Date and the date of the last such list, and (C) a list identifying each subsidiary of the Borrower which is an Immaterial Subsidiary and certifying that each Subsidiary set forth on such list individually qualifies as an Immaterial Subsidiary and that all such Subsidiaries in the aggregate do not exceed the limitation set forth in clause (b) of the definition of the term "Immaterial Subsidiary", and (v) stating whether any change in GAAP or the application thereof has occurred since the date of the mostly recently delivered audited financial statements of the Borrower and its Restricted Subsidiaries, and, if any change has occurred, specifying the effect of such change on the financial statements accompanying such Compliance Certificate;

(b) concurrently with the delivery of any financial statements pursuant to Section 5.1, a narrative discussion and analysis of the financial condition and results of operations of the Borrower and its Restricted Subsidiaries for such fiscal quarter and for the period from the beginning of the then current fiscal year to the end of such fiscal quarter;

(c) within five Business Days after the same are filed, copies of all financial statements and reports that the Borrower makes to, or files with, the SEC including any press release providing earnings guidance;

(d) to the Administrative Agent on behalf of each Lender promptly following receipt thereof, copies of any documents described in Sections 101(k) or 101(l) of ERISA that, following reasonable request of the Administrative Agent (which right to request shall be exercised no more than once during a 12-month period), any Loan Party or any ERISA Affiliate shall have promptly requested from the administrator or sponsor of a Multiemployer Plan with respect to such Multiemployer Plan;



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(e) promptly after the furnishing thereof, copies of any notice of default delivered by the Borrower or any Subsidiary in respect of any Indebtedness having an aggregate outstanding principal amount of $20,000,000 or more;

(f) promptly, subject to applicable confidentiality agreements of the Group Members (which confidentiality agreements shall not be entered into for the purpose of avoiding disclosure under this clause (f)) or Requirements of Law, such reasonably available additional information regarding the business, legal, financial or corporate affairs of the Group Members as any Lender through the Administrative Agent may from time to time reasonably request; and

(g) promptly following any request therefor, information and documentation reasonably requested by the Administrative Agent or any Lender (including, as applicable, an updated Beneficial Ownership Certification if the Persons identified in a previously delivered Beneficial Ownership Certification have changed and a new Beneficial Ownership Certification for any Person that becomes a Loan Party and qualifies as a "legal entity customer" under the Beneficial Ownership Regulation and such Person has not previously delivered a Beneficial Ownership Certification) for purposes of compliance with applicable "know your customer" and anti-money laundering rules and regulations, including the USA Patriot Act and the Beneficial Ownership Regulation, as applicable.

Documents required to be delivered pursuant to Section 5.1, Section 5.2 or Section 5.7 may be delivered electronically and if so delivered, shall be deemed to have been delivered to, and received by, the Administrative Agent and Lenders on the date (i) on which the Borrower posts such documents, or provides a link thereto, on the Borrower's website on the Internet, (ii) on which such documents are posted on the Borrower's behalf on Intralinks or another relevant website, if any, to which each Lender and the Administrative Agent have access (whether a commercial or governmental third-party website or whether sponsored by the Administrative Agent) or (iii) on which the Borrower has filed such reports with the SEC via the EDGAR filing system; provided, that at the request of the Administrative Agent, the Borrower shall provide by electronic mail electronic versions (i.e., soft copies) of such documents.

Section 5.3 Payment of Obligations. Pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all its material obligations in respect of Taxes, assessments and governmental charges or levies of whatever nature, except where the amount or validity thereof is currently being contested in good faith by appropriate proceedings and reserves in conformity with GAAP, or, in the case of Foreign Subsidiaries, with generally accepted accounting principles in effect from time to time in their respective jurisdiction of organization, with respect thereto have been provided on the books of the Borrower and its Restricted Subsidiaries.

Section 5.4 Maintenance of Existence; Compliance with Laws. (a) (i) Preserve, renew and keep in full force and effect its organizational existence and (ii) take all reasonable action to maintain all rights, privileges and franchises necessary or desirable in the normal conduct of its business, except, in each case, as otherwise permitted by Section 7.3 or Section 7.4 and except, in the case of clause (ii) above, to the extent that failure to do so would not reasonably be expected to have a Material Adverse Effect; and (b) comply with all Requirements of Law except to the extent that failure to do so would not reasonably be expected to have a Material Adverse Effect.

Section 5.5 Maintenance of Property; Insurance. (a) Keep all property useful and necessary in its business in good working order and condition, ordinary wear and tear excepted except as



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would not reasonably be expected to have a Material Adverse Effect, (b) maintain with financially sound and reputable insurance companies insurance on its material property in at least such amounts and against at least such risks (but including in any event public liability and product liability) as are usually insured against in the same general area by companies engaged in the same or a similar business, (c) take all reasonable and necessary steps, including, in any proceeding before the United States Patent and Trademark Office or the United States Copyright Office, to maintain and pursue each application (and to obtain the relevant registration) and to maintain each registration of the Intellectual Property, including, filing of applications for renewal, affidavits of use and affidavits of incontestability, except in each case to the extent that failure to do so would not reasonably be expected to have a Material Adverse Effect and (d) if (x) any improved portion of any real property subject to a Mortgage is at any time located in a Special Flood Hazard Area with respect to which flood insurance has been made available under the National Flood Insurance Program and (y) the Administrative Agent shall have delivered notice(s) to the relevant Loan Party pursuant to applicable flood insurance laws and regulations stating that such mortgaged property is located a Special Flood Hazard Area with respect to which such flood insurance has been made available, then the Borrower shall, or shall cause such Loan Party to (i) maintain, or cause to be maintained, with a financially sound and reputable insurer, flood insurance in an amount and otherwise sufficient to comply with all applicable rules and regulations promulgated pursuant to the National Flood Insurance Program and (ii) deliver to the Administrative Agent evidence of such compliance in form and substance reasonably acceptable to the Administrative Agent.

Section 5.6 Inspection of Property; Books and Records; Discussions. (a) Keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions in relation to its business and activities and (b) permit representatives of the Administrative Agent or any Lender through the Administrative Agent, in each case, subject to the limitations of reasonable confidentiality agreements not entered into for the purpose of avoiding obligations under this Section 5.6, to visit and inspect any of its properties and examine and make abstracts from any of its books and records at any reasonable time upon reasonable notice and as often as may reasonably be desired and to discuss the business, operations, properties and financial and other condition of the Group Members with officers and managerial employees of the Group Members and with their independent certified public accountants; provided that an officer of the Borrower shall be provided reasonable opportunity to participate in any such discussion with the accountants; provided further that such inspections shall be coordinated through the Administrative Agent so that in the absence of an Event of Default, not more than one such inspection shall occur in any calendar year. The Administrative Agent and the Lenders agree to use reasonable efforts to coordinate and manage the exercise of their rights under this Section 5.6 so as to minimize the disruption to the business of the Borrower and its Restricted Subsidiaries resulting therefrom.

Section 5.7 Notices. Upon a Responsible Officer learning of the same, promptly give notice to the Administrative Agent of:

(a) the occurrence of any Default or Event of Default;

(b) the filing or commencement of any litigation or proceeding against any Loan Party (i) in which the amount (excluding any amounts paid or covered by insurance as to which the relevant insurance company has not denied coverage) is $20,000,000 or more, (ii) in which injunctive or similar relief is sought which would reasonably be expected to have a Material Adverse Effect or (iii) which relates to any Loan Document;



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(c) the occurrence of any ERISA Event that, alone or together with any other ERISA Event(s) that have occurred, has had or would reasonably be expected to have a Material Adverse Effect; and

(d) the occurrence of any Material Adverse Effect on the aggregate value of the Collateral or on the security interests created by the Security Documents.

Each notice pursuant to this Section 5.7 shall be accompanied by a statement of a Responsible Officer setting forth details of the occurrence referred to therein and stating what action the relevant Loan Party proposes to take with respect thereto.

Section 5.8 Environmental Laws. Except as, in the aggregate, would not reasonably be expected to have a Material Adverse Effect:

(a) comply with, and take all commercially reasonable steps to ensure compliance by all tenants and subtenants, if any, with, all applicable Environmental Laws, and obtain and comply with and maintain, and take all commercially reasonable steps to ensure that all tenants and subtenants obtain and comply with and maintain, any and all licenses, approvals, notifications, registrations or permits required by applicable Environmental Laws; and

(b) conduct and complete all investigations, studies, sampling and testing, and all remedial, removal and other actions required under Environmental Laws and promptly comply with all lawful orders and directives of all Governmental Authorities regarding Environmental Laws; provided, however, that no Loan Party shall be deemed in violation of this Section 5.8(b) if it promptly challenges any such order or directive and pursues such challenge or challenges, and the pendency of such challenges, in the aggregate could not reasonably be expected to have a Material Adverse Effect.

Section 5.9 Additional Collateral, etc.

(a) (1) With respect to any property acquired after the Closing Date by any Loan Party (other than (x) any real property or property described in paragraph (b) below, (y) any property constituting Excluded Property and (z) any property with respect to which the Administrative Agent determines that the cost or burden of subjecting such property to a Lien under the Security Documents is disproportionate to the value of the collateral security afforded thereby) or (2) upon the designation of any Unrestricted Subsidiary that is a Domestic Subsidiary as a Restricted Subsidiary (which is not an Excluded Subsidiary), as to which the Administrative Agent, for the benefit of the Secured Parties, does not have a perfected Lien, promptly upon request by the Administrative Agent (i) execute and deliver to the Administrative Agent such amendments to the Security Documents or such other documents as the Administrative Agent reasonably deems necessary or advisable to grant to the Administrative Agent, for the benefit of the Secured Parties, a security interest in such property and (ii) take all actions necessary or advisable to grant to the Administrative Agent, for the benefit of the Secured Parties, a perfected first priority (subject to (x) in the case of Collateral other than Pledged Stock, Liens permitted by Section 7.2 and (y) in the case of Collateral constituting Pledged Stock, inchoate Liens arising by operation of law) security interest under the laws of the United States in such property, including the filing of Uniform Commercial Code financing statements in such domestic jurisdictions as may be required by the Security Documents or by law or as may be reasonably requested by the Administrative Agent.

(b) Promptly (and in any event not later than 45 days after the delivery of any financial statements under Section 5.1(a) or 5.1(b), with respect to Capital Stock of any Subsidiary included in such financial statements, which period may be extended by the Administrative Agent from



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time to time in its discretion), cause (A) all of the Capital Stock (other than Excluded Property) owned by any Loan Party to be pledged to the Administrative Agent, pursuant to an amendment to the Security Documents and/or the schedules thereto if reasonably requested by the Administrative Agent, and (B) together therewith, (x) the original certificates evidencing such pledged Capital Stock to be delivered to the Administrative Agent, together with appropriate powers executed in blank and (y) if and to the extent reasonably requested by the Administrative Agent, the Administrative Agent to receive legal opinions of counsel to the Borrower reasonably acceptable to the Administrative Agent covering such matters in respect of such pledges as the Administrative Agent so requests.

(c) Promptly (and in no event later than 45 days after the delivery of any financial statements under Section 5.1(a) or 5.1(b), with respect to any Subsidiary included in such financial statements, which period may be extended by the Administrative Agent from time to time in its discretion), cause (i) each of the Borrower's direct or indirect Domestic Subsidiaries (other than an Excluded Subsidiary), to become a Guarantor and Grantor (as defined in the Guarantee and Collateral Agreement) by executing and delivering a joinder or assumption agreement to the Guarantee and Collateral Agreement in a form reasonably requested by the Administrative Agent if such Subsidiary is not then a Guarantor, (ii) to be delivered to the Administrative Agent a certificate of a Responsible Officer of such Subsidiary, attaching and certifying as to, and as applicable: (w) its articles or certificate of incorporation, certificate of organization or limited partnership, or other registered organizational documents, certified as of a recent date to the delivery thereof by the Secretary of State of the jurisdiction of organization of such Subsidiary, (x) its bylaws, partnership agreement, limited liability company agreement, or similar organizational document, (y) resolutions of its board of directors or other equivalent governing body and authorizations authorizing the execution, delivery and performance of the Loan Documents to which it is a party and certifying the name, title and true signature of each officer of such Subsidiary executing the Loan Documents to which it is a party, and (z) certificates of good standing or existence, as may be available from the Secretary of State of the jurisdiction of organization of such Subsidiary, and (iii) if and to the extent reasonably requested by the Administrative Agent, to be delivered to the Administrative Agent opinions of counsel to the Borrower, in form and substance reasonably satisfactory to the Administrative Agent, covering such matters in respect of such new Guarantor and Grantor as the Administrative Agent so requests.

(d) With respect to any fee simple interest in any real property having a fair market value (together with improvements thereof) in the good faith estimation of the Borrower of at least $10,000,000 acquired after the Closing Date by any Loan Party (other than any such real property subject to a Lien expressly permitted by Section 7.2(g)), promptly and in any event within 90 days after such acquisition (or such later times as the Administrative Agent may agree in its sole discretion), (i) execute and deliver a Mortgage, in favor of the Administrative Agent, for the benefit of the Secured Parties, covering such real property, creating a Lien on such real property prior and superior in right to all other Liens on such real property (except Liens permitted by Section 7.2), (ii) if reasonably requested by the Administrative Agent, provide the Administrative Agent, for the benefit of the Secured Parties, with (1) title searches in respect of such real property as well as a current map or plat of an as-built survey thereof, together with a surveyor's certificate, (2) title insurance policies reasonably satisfactory in form and substance to the Administrative Agent, (3) recently prepared environmental site assessment reports, in each case together with letters executed by the environmental firms preparing such environmental reports, in form and substance satisfactory to the Administrative Agent, authorizing the Administrative Agent and the Lenders to rely on such reports, and (4) any consents or estoppels reasonably deemed necessary by the Administrative Agent in connection with such Mortgage, each of the foregoing in form and substance reasonably satisfactory to the Administrative Agent, (iii) deliver a "Life-of-Loan" Federal Emergency Management Agency Standard Flood Hazard Determination and evidence of Federal Flood Insurance satisfying the requirements of Section 5.5 and (iv) if reasonably requested by the



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Administrative Agent, deliver to the Administrative Agent legal opinions relating to the matters described above, which opinions shall be in form and substance, and from counsel, reasonably satisfactory to the Administrative Agent. Notwithstanding anything to the contrary in this Agreement or the Loan Documents, no Mortgage will encumber improved real property that is located in Special Flood Hazard Area in which flood insurance has been made available under the National Flood Insurance Act of 1968, except to the extent that the applicable Loan Party maintains flood insurance with respect to such improved real property in compliance with the requirements of Section 5.5.

(e) Without limiting the foregoing, the Borrower will, and will cause each other Loan Party to, execute any and all further documents, financing statements, agreements and instruments, and take all such further actions, which may be required under any applicable law, or which the Administrative Agent or the Required Lenders may reasonably request, to effectuate the transactions contemplated by the Loan Documents or to grant, preserve, protect or perfect the Liens created by the Security Documents or the validity or priority of any such Lien, all at the expense of the Loan Parties. The Borrower also agrees to provide to the Administrative Agent, from time to time upon request, evidence reasonably satisfactory to the Administrative Agent as to the perfection and priority of the Liens created or intended to be created by the Security Documents. Notwithstanding the foregoing, anything in this Agreement or any other Loan Document to the contrary, no Loan Party will be required to deliver control agreements with respect to the Collateral or to take any action necessary under the laws of any foreign jurisdiction to create or perfect a Lien or, in each case, be considered in breach of or non-compliance with any representation or warranty or covenant herein or in any Loan Document as a result thereof.

Section 5.10 Designation of Subsidiaries. The board of directors (or equivalent governing body) of the Borrower may at any time after the Closing Date designate (or redesignate) any Subsidiary (or in connection with any contemplated Investment, a Person that upon such Investment and but for designation as an Unrestricted Subsidiary would be a Restricted Subsidiary) as an Unrestricted Subsidiary or any Unrestricted Subsidiary as a Restricted Subsidiary; provided that (i) immediately before and after such designation, no Default or Event of Default shall have occurred and be continuing (including after giving effect to the reclassification of Investments in, Indebtedness of and Liens on the assets of, the applicable Restricted Subsidiary or Unrestricted Subsidiary), (ii) the Borrower shall be in pro forma compliance with Article VI hereof, (iii) as of the date of the designation thereof, no Unrestricted Subsidiary shall own any Capital Stock in any Restricted Subsidiary of the Borrower or hold any Indebtedness of or any Lien on any property of the Borrower or its Restricted Subsidiaries, and (iv) as of the date of the designation thereof, no Unrestricted Subsidiary shall own any item of material Intellectual Property unless such Intellectual Property is no longer economically practicable to maintain or useful in the conduct of the business of the Borrower and the Restricted Subsidiaries, as determined in the exercise of the Borrower's or the applicable Restricted Subsidiary's reasonable business judgment. The designation of any subsidiary as an Unrestricted Subsidiary shall constitute an Investment by the Borrower (or its applicable Restricted Subsidiary) therein at the date of designation in an amount equal to the portion of the fair market value of the net assets of such Restricted Subsidiary attributable to the Borrower's (or its applicable Restricted Subsidiary's) equity interest therein as reasonably estimated by the Borrower (and such designation shall only be permitted to the extent such Investment is permitted under Section 7.6). The designation of any Unrestricted Subsidiary as a Restricted Subsidiary shall constitute the making, incurrence or granting, as applicable, of Investments of such Subsidiary, Indebtedness of such Subsidiary, and Liens on the assets of such Subsidiary existing at such time; provided that upon any re-designation of any Unrestricted Subsidiary as a Restricted Subsidiary, the Borrower shall be deemed to continue to have an Investment in the resulting Restricted Subsidiary in an amount (if positive) equal to (a) the Borrower's "Investment" in such Restricted Subsidiary at the time of such re-designation, less (b) the portion of the fair market value of the net assets of such Restricted Subsidiary attributable to the Borrower's equity therein at the time of such re-designation.



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Section 5.11 Anti-Corruption Laws and Sanctions. Maintain in effect and enforce policies and procedures designed (in its reasonable business judgment) to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents (in their respective capacities as such) with Anti-Corruption Laws and applicable Sanctions.

Section 5.12 Margin Regulations. Not to use any of the proceeds of any Loans or any other extensions of credit hereunder (a) for "buying" or "carrying" any "margin stock" within the respective meanings of each of the quoted terms under Regulation U as now and from time to time hereafter in effect for any purpose that violates the provisions of the Regulationsregulations of the Federal Reserve Board or (b) for any purpose that violates the provisions of the Regulationsregulations of the Federal Reserve Board.

Section 5.13 Post-Closing Obligations. The Borrower shall deliver, or cause to be delivered, the agreements, instruments and other documents set forth on Schedule 5.13 within the applicable time periods specified therein or in each case, such later date as may be agreed by the Administrative Agent in its sole discretion.

ARTICLE VI.

FINANCIAL COVENANTS

Until the Commitments have expired or been terminated and all Obligations have been paid in full (other than contingent obligations as to which no claim has been made by the Person entitled thereto) and all Letters of Credit shall have expired or terminated, in each case without any pending draw, or all such Letters of Credit shall have been cash collateralized to the satisfaction of the Issuing Bank, and all LC Disbursements shall have been reimbursed, the Borrower covenants and agrees with the Lenders that, it shall not, and shall not permit any of its Restricted Subsidiaries to:

Section 6.1 Consolidated Leverage Ratio. Commencing with the fiscal quarter ending on or around September 30, 2020, (a) permit, on the last day of any fiscal quarter, the Consolidated Leverage Ratio for the four consecutive fiscal quarters of the Borrower ending with such fiscal quarter end date to exceed 3.00:1.00 or (b) solely to the extent that a Material Acquisition occurs during any fiscal quarter in which the Consolidated Leverage Ratio is tested (the fiscal quarter in which such Material Acquisition occurs, the " Applicable Fiscal Quarter"), permit, on the last day of such Applicable Fiscal Quarter and on the last day of each of the immediately following three fiscal quarters (such period of time, the "Modified Leverage Period"), the Consolidated Leverage Ratio for the four consecutive fiscal quarters of the Borrower ending with each such fiscal quarter end date to exceed 3.50:1.00 (it being understood and agreed that after the Modified Leverage Period ends, the Borrower shall be required to maintain the minimum Consolidated Leverage Ratio set forth in the preceding clause (a) unless another Material Acquisition occurs and this clause (b) applies for such Material Acquisition).

Section 6.2 Interest Coverage Ratio. Permit, on the last day of any fiscal quarter beginning with September 30, 2020, the Interest Coverage Ratio for the four consecutive fiscal quarters of the Borrower ending with such fiscal quarter end date to be less than 3.00:1.00.



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ARTICLE VII.

NEGATIVE COVENANTS

Until the Commitments have expired or been terminated and all Obligations (other than contingent obligations as to which no claim has been made by the Person entitled thereto) have been paid in full and all Letters of Credit shall have expired or terminated, in each case without any pending draw, or all such Letters of Credit shall have been cash collateralized to the satisfaction of the Issuing Bank, and all LC Disbursements shall have been reimbursed, the Borrower covenants and agrees with the Lenders that, it shall not, and shall not permit any of its Restricted Subsidiaries to:

Section 7.1 Indebtedness. Create, issue, incur, assume, become liable in respect of or suffer to exist any Indebtedness thereof, except:

(a) Indebtedness of any Loan Party pursuant to any Loan Document;

(b) intercompany Indebtedness incurred pursuant to any Investment permitted by Section 7.6(f), (l) or (m);

(c) Guarantee Obligations incurred in the ordinary course of business or with respect to Indebtedness permitted pursuant to this Agreement;

(d) Indebtedness outstanding on the Closing Date and listed on Schedule 7.1(d);

(e) Indebtedness (including Capital Lease Obligations) secured by Liens permitted by Section 7.2(g) in an aggregate outstanding principal amount not to exceed at any time (x) $50,000,000, plus (y) an amount such that, subject to Section 1.3(d) (to the extent applicable) immediately after giving effect to the incurrence of any such Indebtedness and the use of proceeds thereof, the Consolidated Secured Leverage Ratio, calculated on a pro forma basis for the period of four consecutive fiscal quarters most recently ended for which financial statements have been delivered hereunder prior thereto, would not exceed 2.75:1.00;

(f) Indebtedness of the Borrower or any Restricted Subsidiaries in respect of workers' compensation claims, self-insurance obligations, customs, appeal, performance, bid and surety bonds and completion guaranties, deferred insurance premiums, and similar obligations, in each case in the ordinary course of business;

(g) Indebtedness of the Borrower or any Restricted Subsidiaries arising from the honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently drawn by the Borrower or such Restricted Subsidiary in the ordinary course of business against insufficient funds, so long as such Indebtedness is promptly repaid;

(h) letters of credit issued for the account of the Borrower or any Restricted Subsidiaries, so long as the sum of (i) the aggregate undrawn face amount thereof, (ii) any unreimbursed obligations in respect thereof and (iii) the aggregate amount of pledges and deposits made pursuant to Section 7.2(t) below does not exceed the LC Commitment Amount at any time;

(i) Indebtedness of a joint venture as long as such Indebtedness is non-recourse to the Borrower or any other Restricted Subsidiary of the Borrower (other than a Restricted Subsidiary the sole assets of which are the equity interests in one or more joint ventures); provided that notwithstanding the foregoing joint ventures may create, incur or assume Indebtedness with recourse to the Borrower or any other Restricted Subsidiary of the Borrower not to exceed $50,000,000 in an aggregate principal amount at any one time outstanding;



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(j) Indebtedness incurred by any Foreign Subsidiary in an aggregate outstanding principal amount for all such Foreign Subsidiaries at the close of business on any day not to exceed $50,000,000;

(k) secured Indebtedness of the Borrower or any Restricted Subsidiaries (which may be guaranteed by the Guarantors) containing, in the good faith judgment of the Borrower, then current market terms and conditions for similarly situated companies (but which terms and conditions shall not directly and explicitly restrict the ability of the Group Members to perform their obligations under the Loan Documents in any material respect or the ability of the Borrower to repay the Loans); provided that (i) no Event of Default exists or would result from the incurrence thereof, (ii) subject to Section 1.3(d) (to the extent applicable) immediately after giving effect to the incurrence of any such Indebtedness and the use of proceeds thereof the Consolidated Secured Leverage Ratio calculated on a pro forma basis for the period of four consecutive fiscal quarters most recently ended for which financial statements have been delivered, would not exceed 2.75:1.00, (iii) in the case of syndicated or bilateral credit agreements, indentures or note purchase agreements, any negative or financial covenants applicable to such agreements that are more restrictive (with respect to any indenture or note purchase agreement, taken as a whole) than those contained in this Agreement shall be deemed to be incorporated in this Agreement, mutatis mutandis, (iv) the final scheduled maturity date of such Indebtedness is no earlier than the Maturity Date and the weighted average life to maturity of such Indebtedness is equal to or longer than the remaining average weighted life of the Revolving Facility (other than for nominal amortization of 5% or less of the principal amount of such Indebtedness per year) and (v) such Indebtedness shall not be guaranteed by any Person that is not a Guarantor and shall not be secured by any assets other than the Collateral; provided, further, any Indebtedness incurred by a Restricted Subsidiary that is not a Guarantor shall, together with any Indebtedness incurred by a Restricted Subsidiary that is not a Guarantor in reliance on clause (o), not exceed $100,000,000 at any one time outstanding;

(l) Indebtedness of the Borrower or any of its Restricted Subsidiaries acquired pursuant to a Permitted Acquisition (or Indebtedness assumed at the time of a Permitted Acquisition of an asset securing such Indebtedness); provided that such Indebtedness was not incurred in connection with, or in anticipation or contemplation of, such Permitted Acquisition;

(m) contingent obligations with respect to customary indemnification obligations in favor of sellers (and Affiliates or assignees thereof) in connection with Acquisitions permitted under Section 7.6 and purchasers (and Affiliates or assignees thereof) in connection with Dispositions permitted under Section 7.4;

(n) provided that no Event of Default shall have occurred and be continuing or would occur as a consequence thereof, Indebtedness which serves to refund, replace, extend repurchase, redeem or refinance any Indebtedness permitted under paragraphs (d), (e), (k), (l) or (o) of this Section, or any Indebtedness issued to so refund, replace, extend, repurchase or refinance such Indebtedness, including, in each case, additional Indebtedness incurred to pay premiums (including tender premiums), defeasance costs and fees and expenses in connection therewith (collectively, the "Permitted Refinancing Indebtedness") at or prior to its respective maturity; provided, however, that:



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(i) the weighted average life to maturity of such Permitted Refinancing Indebtedness shall not be shorter than the weighted average life to maturity of such refinanced Indebtedness at the time of such refunding or refinancing;

(ii) to the extent such Permitted Refinancing Indebtedness refinances Indebtedness subordinated or pari passu to the Obligations, such Permitted Refinancing Indebtedness is subordinated or pari passu to the Obligations at least to the same extent as the Indebtedness being refunded or refinanced;

(iii) such Permitted Refinancing Indebtedness shall not be in a principal amount in excess of the principal amount of, premium, if any, accrued interest on, and related fees and expenses of, the Indebtedness being refunded, replaced, extended, repurchased, redeemed or refinanced (including any premium, expenses, costs and fees incurred in connection with such refund, replacement or refinancing);

(iv) the obligors in respect of such Permitted Refinancing Indebtedness (including in their capacities as primary obligor and guarantor) were obligors in respect of the Indebtedness being refinanced; and

(v) any Liens securing such Permitted Refinancing Indebtedness are not extended to any property which does not secure the Indebtedness being refinanced and, if the Liens securing the Indebtedness being refinanced are subject to intercreditor arrangements with the Lenders, any Liens securing such Permitted Refinancing Indebtedness are subject to intercreditor arrangements at least as favorable (taken as a whole) to the Administrative Agent and the Lenders as the intercreditor arrangements applicable to the Indebtedness being refinanced;

(o) unsecured Indebtedness of the Borrower or any of its Restricted Subsidiaries and unsecured Guarantee Obligations of any Guarantor in respect of such unsecured Indebtedness; provided that (i) no Event of Default exists or would result from the incurrence thereof and (ii) subject to Section 1.3(d) (to the extent applicable) immediately after giving effect to the incurrence of any such Indebtedness and the use of proceeds thereof, the Consolidated Leverage Ratio, calculated on a pro forma basis for the period of four consecutive fiscal quarters most recently ended for which financial statements have been delivered prior thereto, would not exceed 3.00:1.00; provided, that (x) such Indebtedness shall not be guaranteed by any Person that is not a Guarantor and (y) any Indebtedness incurred by a Restricted Subsidiary that is not a Guarantor shall, together with any Indebtedness incurred by a Restricted Subsidiary that is not a Guarantor in reliance on clause (k), not exceed $100,000,000 at any one time outstanding;

(p) to the extent constituting Indebtedness, obligations under treasury, depositary or other cash management services entered into in the ordinary course of business; and

(q) Indebtedness in respect of letters of credit in an aggregate face amount not exceeding $5,000,000 (or such greater amount solely to the extent resulting from fluctuations in currency exchange rates) at any one time outstanding.



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Section 7.2 Liens. Create, incur, assume or suffer to exist any Lien upon any of its property, whether now owned or hereafter acquired, except:

(a) Liens for Taxes not yet due or that are being contested in good faith by appropriate proceedings; provided that reserves with respect thereto (if required by, and to the extent required by, GAAP) are maintained on the books of the Borrower or its Restricted Subsidiaries, as the case may be, in conformity with GAAP (or, in the case of Foreign Subsidiaries, generally accepted accounting principles in effect from time to time in their respective jurisdiction of organization);

(b) landlord's, carriers', warehousemen's, mechanics', materialmen's, repairmen's, supplier, construction or other like Liens in the ordinary course of business that are not overdue for a period of more than 45 days or that are being bonded or contested in good faith by appropriate proceedings;

(c) (i) pledges or deposits made in connection with workers' compensation, unemployment insurance and other social security legislation and similar laws or regulations, and (ii) Liens (A) of a collecting bank arising in the ordinary course of business under Section 4-210 of the Uniform Commercial Code in effect in the relevant jurisdiction covering only the items being collected upon or (B) in favor of a banking institution or financial intermediary, encumbering amounts credited to deposit or securities accounts (including the right of set-off) arising in the ordinary course of business in connection with the maintenance of such accounts;

(d) pledges and deposits to secure the performance of bids, contracts (other than for borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds, utility payments and other obligations of a like nature incurred in the ordinary course of business;

(e) zoning restrictions, survey exceptions and such matters as an accurate survey would disclose, mortgage rights, easements, rights-of-way, restrictions and other similar encumbrances incurred in the ordinary course of business that, in the aggregate, do not materially interfere with the ordinary conduct of the business of the Borrower or its Subsidiaries, taken as a whole;

(f) Liens in existence on the Closing Date and listed on Schedule 7.2(f) and extensions, renewals and replacements of any such Liens so long as the principal amount of Indebtedness or other obligations secured thereby is not increased and so long as such Liens are not extended to any other property of the Borrower or any of its Restricted Subsidiaries;

(g) Liens securing Indebtedness of the Borrower or any other Restricted Subsidiary incurred pursuant to Section 7.1(e) to finance the acquisition of fixed or capital assets; provided that (i) such Liens shall be created within 180 days of the acquisition of such fixed or capital assets, (ii) such Liens do not at any time encumber any property other than the property financed by such Indebtedness and proceeds thereof and (iii) the amount of Indebtedness secured thereby is not increased and extensions, renewals and replacements of any such Liens so long as the principal amount of Indebtedness or other obligations secured thereby is not increased and so long as such Liens are not extended to any other property of the Borrower or any of its Restricted Subsidiaries;

(h) Liens (i) created pursuant to the Loan Documents or (ii) granted in favor of the Issuing Bank pursuant to arrangements designed to eliminate the Issuing Bank's risk with respect to any Defaulting Lender's or Defaulting Lenders' participation in Letters of Credit, as contemplated by Section 2.26;



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(i) any interest or title of a lessor under any lease entered into by the Borrower or any other Restricted Subsidiary in the ordinary course of its business and covering only the assets so leased;

(j) Liens with respect of leases, licenses, sublicenses or subleases granted to others not interfering in any material respect with the businesses of the Borrower or any of its Subsidiaries;

(k) Liens with respect to operating leases not prohibited under this Agreement and entered into in the ordinary course of business;

(l) Liens so long as the aggregate outstanding principal amount of the obligations secured thereby does not exceed (as to the Borrower and all Subsidiaries) 5.0% of Consolidated Assets as determined as of the last day of the most recent fiscal period for which financial statements have been delivered hereunder prior to the incurrence thereof;

(m) Liens on the assets of Foreign Subsidiaries securing Indebtedness permitted under Section 7.1(j);

(n) receipt of progress payments and advances from customers in the ordinary course of business to the extent the same creates a Lien on the related inventory and proceeds thereof;

(o) Liens on the assets of joint ventures and their Subsidiaries (and Restricted Subsidiaries the sole assets of which are the equity interests in one or more joint ventures) securing obligations of such Persons that are not prohibited by Section 7.1;

(p) attachment, judgment or other similar Liens securing judgments or decrees not constituting an Event of Default under Section 8.1(h) or securing appeal or other surety bonds related to such judgments or decrees;

(q) Liens securing obligations (other than obligations representing Indebtedness for borrowed money) under operating, reciprocal easement or similar agreements entered into in the ordinary course of business;

(r) statutory Liens and rights of offset, revocation, refund or chargeback arising in the ordinary course of business of the Borrower and its Restricted Subsidiaries;

(s) cash collateral supporting letters of credit permitted pursuant to Section 7.1 in an aggregate amount not exceeding 105% of the aggregate fact amounts thereof;

(t) pledges of cash or Cash Equivalents or deposits of cash or Cash Equivalents made to support any obligations of the Group Members (including cash collateral to secure obligations under letters of credit permitted pursuant to Section 7.1(h)) so long as (without duplication) the sum of (i) the aggregate undrawn face amount of letters of credit permitted pursuant to Section 7.1(h) above, (ii) any unreimbursed obligations in respect of letters of credit permitted pursuant to Section 7.1(h) above and (iii) the aggregate amount of such pledges and deposits does not exceed the limit set forth in Section 7.1(h);



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(u) Liens on the Collateral securing Indebtedness (and interest and related obligations) permitted under clause (k) of Section 7.1 as long as such Liens are subject to a Market Intercreditor Agreement or an intercreditor agreement otherwise reasonably satisfactory to the Administrative Agent;

(v) Liens on property or assets acquired pursuant to a Permitted Acquisition, or on property or assets of a Restricted Subsidiary of the Borrower in existence at the time such Restricted Subsidiary is acquired pursuant to a Permitted Acquisition; provided that (i) any Indebtedness that is secured by such Liens is permitted to exist under Section 7.1(l), and (ii) such Liens are not incurred in connection with, or in contemplation or anticipation of, such Permitted Acquisition and do not attach to any other asset of the Borrower or any of its Restricted Subsidiaries and extensions, renewals and replacements of any such Liens so long as the principal amount of Indebtedness or other obligations secured thereby is not increased and so long as such Liens are not extended to any other property of the Borrower or any of its Restricted Subsidiaries;

(w) Liens securing obligations in respect of cash pooling, treasury, depositary and other cash management arrangements entered into in the ordinary course of business;

(x) Liens arising in connection with Escrow Funding Arrangements;

(y) Liens securing Indebtedness incurred to finance deferred insurance premiums permitted under Section 7.1(f), provided that such Liens shall be permitted only with respect to unearned premiums and dividends which may become payable under the relevant insurance policies and loss payments which reduce the unearned premiums under such insurance policies; and

(z) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods.

Section 7.3 Fundamental Changes. Enter into any merger, consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or Dispose of all or substantially all of its property or business, except that:

(a) any Subsidiary may be merged, consolidated with or into or transferred to the Borrower (provided that the Borrower shall be the continuing or surviving Person) or with, into or to any other Subsidiary (provided that, if any such Subsidiary is a Guarantor, either (x) (i) the Guarantor shall be the continuing or surviving Person or (ii) simultaneously with the applicable merger or consolidation, the continuing Person shall become a Guarantor or (y) if the continuing or surviving Person will not be a Guarantor, the Investment of the assets of the Loan Party in and to the Subsidiary that is not a Loan Party is permitted under Section 7.6);

(b) any Subsidiary that is not a Loan Party may be merged, consolidated, amalgamated, liquidated, wound-up or dissolved or all or substantially all of its property or business Disposed of with, into or to a Restricted Subsidiary that is not a Loan Party;

(c) any Restricted Subsidiary may Dispose of any or all of its assets to the Borrower or any Guarantor (upon voluntary liquidation or otherwise);

(d) any Disposition otherwise permitted pursuant to Section 7.4 may be completed; and



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(e) any Permitted Acquisition otherwise permitted pursuant to Section 7.6 may be completed.

Section 7.4 Disposition of Property. Dispose of any of its property, including Intellectual Property, whether now owned or hereafter acquired, or, in the case of any Restricted Subsidiary, issue or sell any shares of such Restricted Subsidiary's Capital Stock to any Person, except:

(a) the Disposition of property that the Borrower or any Restricted Subsidiary reasonably determines is obsolete, surplus, worn out, or no longer useful in its business, or is replaced in the ordinary course of business, including the lease or sublease of excess or unneeded real property;

(b) the Disposition of inventory, internally manufactured test systems or cash or Cash Equivalents in the ordinary course of business;

(c) Dispositions permitted by Section 7.3, Restricted Payments permitted by Section 7.5 and Investments permitted by Section 7.6;

(d) the Disposition or issuance of any Restricted Subsidiary's Capital Stock to the Borrower or any Guarantor;

(e) assignments and licensing and cross-licensing arrangements of technology or other Intellectual Property in the ordinary course of business or the discontinuance, forfeiture, abandonment or other disposition of any item of Intellectual Property that is no longer economically practicable to maintain or useful in the conduct of the business of the Borrower and the Restricted Subsidiaries, as determined in the exercise of the Borrower's or the applicable Restricted Subsidiary's reasonable business judgment;

(f) the Disposition of any property or assets, or the issuance of any Restricted Subsidiaries' Capital Stock, (i) to any Loan Party and (ii) by any Restricted Subsidiary that is not a Guarantor to any other Restricted Subsidiary that is not a Guarantor;

(g) transfers of property as a result of any Recovery Event;

(h) leases, occupancy agreements and subleases of property in the ordinary course of business;

(i) the Disposition of receivables and customary related assets pursuant to factoring programs on customary market terms for such transactions and with respect to receivables of, and generated by, Foreign Subsidiaries;

(j) the Disposition of other property (other than receivables and customary related assets) having a net book value not to exceed 25.0% of Consolidated Assets (as determined as of the last day of the most recent fiscal period for which financial statements have been delivered hereunder prior to the Disposition thereof) in the aggregate during any fiscal year of the Borrower; provided, however, with respect to any such Dispositions of property pursuant to this clause (j) having a net book value in excess of 10.0% of the Consolidated Assets (as determined as of the last day of the most recent fiscal period for which financial statements have been delivered hereunder prior to the Disposition thereof), such Dispositions shall only be permitted if (x) not less than 75% of the aggregate sale price from such Disposition shall be paid in cash or Cash Equivalents and (y) the Borrower shall be in pro forma compliance with each of the financial covenants set forth in Article VI after giving effect to such



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Disposition and recomputed for the most recently ended fiscal quarter of the Borrower for which financial statements have been delivered hereunder; provided, however, that for the purposes of this clause (j), the following shall be deemed to be Cash Equivalents: (A) any liabilities (as shown on the Borrower's most recent balance sheet provided hereunder or in the footnotes thereto) of the Borrower or such Restricted Subsidiary, other than liabilities that are by their terms subordinated to the payment in cash of the Obligations, that (i) are assumed by the transferee with respect to the applicable Disposition or (ii) are otherwise cancelled or terminated in connection with the transaction with such transferee (other than intercompany debt owed to the Borrower or its Restricted Subsidiaries) and, in each case, for which the Borrower and all of its Restricted Subsidiaries shall have been validly released by all applicable creditors in writing and (B) any securities, notes or other obligations or assets received by the Borrower or the applicable Restricted Subsidiary from such transferee that are converted by the Borrower or such Restricted Subsidiary into Cash Equivalents (to the extent of the Cash Equivalents received) within 180 days following the closing of the applicable Disposition;

(k) Disposition of assets acquired pursuant to a Permitted Acquisition that constitute "non-core assets" within 365 days after the consummation of such Permitted Acquisition; provided, that not less than 75% of the aggregate sale price from such Disposition shall be paid in cash or Cash Equivalents;

(l) Dispositions of Unrestricted Subsidiaries; and

(m) discounts, adjustments or forgiveness of accounts receivable and other contract claims in the ordinary course of business or in connection with collection or compromise thereof.

Section 7.5 Restricted Payments. (A) Declare or pay any dividend (other than dividends payable solely in Qualified Stock of the Person making such dividend) on, or make any payment on account of, or set apart assets for a sinking or other analogous fund for, the purchase, redemption, defeasance, retirement or other acquisition of, any Capital Stock of the Borrower or any Restricted Subsidiary of the Borrower, whether now or hereafter outstanding, or make any other distribution in respect thereof, either directly or indirectly, whether in cash or property or in obligations of the Borrower or any Restricted Subsidiary of the Borrower; or (B) make or offer to make any payment, prepayment, repurchase or redemption of or otherwise defease or segregate funds with respect to the principal of any Junior Indebtedness (other than (i) scheduled payments of principal, (ii) customary mandatory prepayments, mandatory repurchases and mandatory redemptions and (iii) refinancing thereof from the Net Cash Proceeds of Indebtedness permitted by Section 7.1 or Capital Stock of the Borrower other than Disqualified Stock) ((A), and (B), collectively, "Restricted Payments"), except that:

(a) any Restricted Subsidiary may make Restricted Payments to any Loan Party;

(b) any Restricted Subsidiary may make Restricted Payments to the Group Member that is its parent company so long as, in the case of any Restricted Payment made by a Loan Party, such parent company is also a Loan Party;

(c) any Restricted Subsidiary may make Restricted Payments with respect to the Capital Stock of such Restricted Subsidiary; provided that each Group Member shareholder of such Restricted Subsidiary receives at least its ratable share thereof;

(d) the Borrower may make Restricted Payments of the type described in clause (A) set forth in the introductory paragraph of this Section 7.5, within 60 days after the date of declaration thereof, as long as at such declaration date (x) no Default or Event of Default existed (or would exist if



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such Restricted Payment were made on such date) and (y) subject to Section 1.3(d) (to the extent applicable) and giving pro forma effect to such declared Restricted Payment, the Borrower shall be in compliance with each of the financial covenants in Article VI, calculated on a pro forma basis for the period of four consecutive fiscal quarters ended prior to such declaration date for which financial statements have been delivered hereunder prior thereto;

(e) as long as (x) no Default or Event of Default exists immediately before or after giving effect thereto, (y) subject to Section 1.3(d) (to the extent applicable) and immediately after giving effect to such Restricted Payment, the Borrower shall be in compliance with Section 6.2 (calculated on pro forma basis for the period of four consecutive fiscal quarters most recently ended for which financial statements have been delivered hereunder prior thereto), and (z) subject to Section 1.3(d) (to the extent applicable) and after giving effect to such Restricted Payment, the Consolidated Leverage Ratio, calculated on pro forma basis for the period of four consecutive fiscal quarters most recently ended for which financial statements have been delivered hereunder prior thereto, would not exceed 2.25:1.00, the Borrower may make Restricted Payments of the type described in clause (B) set forth in the introductory paragraph of this Section 7.5;

(f) the Borrower and its Restricted Subsidiaries may make Investments permitted by Section 7.6;

(g) the Borrower may deliver common stock or preferred stock or other equity securities that constitute Qualified Stock of the Borrower to holders upon conversion or exchange of any convertible preferred stock of the Borrower; and

(h) the Borrower may enter into any Permitted Bond Hedge Transaction.

Section 7.6 Investments. Make any Investment except:

(a) extensions of trade credit in the ordinary course of business;

(b) Investments in cash or Cash Equivalents;

(c) Guarantee Obligations (of Indebtedness or otherwise) not prohibited by Section 7.1;

(d) loans and advances to employees or directors of any Group Member in the ordinary course of business (including for travel, entertainment and relocation expenses);

(e) promissory notes and other noncash consideration received in connection with Dispositions permitted by Section 7.4(j);

(f) intercompany Investments by (i) any Group Member in the Borrower or any Person that, prior to such investment, is a Guarantor, (ii) by any Subsidiary that is not a Guarantor in any other Subsidiary that is not a Guarantor, (iii) a Loan Party consisting of the contribution or transfer of Capital Stock of a Foreign Subsidiary held by such Loan Party to a Foreign Subsidiary and (iv) by any Loan Party in any Subsidiary that is not a Loan Party; provided that the aggregate amount of Investments permitted under clause (iv) shall not exceed 5.0% of Consolidated Assets as determined as of the last day of the most recent fiscal quarter for which financial statements have been delivered hereunder prior to the making thereof;



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(g) Investments consisting of Indebtedness permitted by Section 7.1 (other than clause (b) thereof);

(h) prepaid expenses and lease, utility, workers, compensation, performance and other similar deposits made in the ordinary course of business;

(i) Investments (including debt obligations) received in the ordinary course of business by the Borrower or any Restricted Subsidiary in connection with the bankruptcy or reorganization of suppliers and customers or in settlement of delinquent obligations of, and other disputes with, customers and suppliers arising out of the ordinary course of business;

(j) Investments listed on Schedule 7.6(j) as of the First Amendment Effective Date;

(k) Hedging Transactions permitted by Section 7.8;

(l) (x) Permitted Acquisitions and (y) Investments in connection with actual or contemplated Permitted Acquisitions; provided that the aggregate amount of Investments permitted by Loan Parties in non-Loan Parties under this sub-clause (y) shall not exceed 25.0% of Consolidated Assets as determined as of the last day of the most recent fiscal quarter for which financial statements have been delivered hereunder prior to the making thereof;

(m) in addition to Investments otherwise expressly permitted by this Section, Investments by the Borrower or any of its Restricted Subsidiaries in an aggregate amount not to exceed 10.0% of Consolidated Assets as determined as of the last day of the most recent fiscal quarter for which financial statements have been delivered hereunder prior to the making thereof;

(n) Investments permitted by Section 7.5; and

(o) Investments by the Borrower in any Permitted Bond Hedge Transaction.

Section 7.7 Transactions with Affiliates. Enter into any transaction, including any purchase, sale, lease or exchange of property, the rendering of any service or the payment of any management, advisory or similar fees, with any Affiliate (other than transactions among Group Members) unless such transaction (a) is otherwise permitted under this Agreement, (b) is upon fair and reasonable terms substantially as favorable to the relevant Group Member than would be obtainable in a comparable arm's length transaction with a Person that is not an Affiliate; or (c) involves any Lender or Agent (or their Affiliates) in its capacity as Lender or Agent under this Agreement.

Section 7.8 Swap Agreements. Enter into any Hedging Transactions for speculative purposes (rather than risk mitigation); provided, however, that for the avoidance of doubt this Section 7.8 shall not prohibit any Permitted Call Spread Transaction.

Section 7.9 Accounting Changes. Make, or permit any of its Restricted Subsidiaries to make, any significant change in accounting treatment or reporting practices, except as required by GAAP, or permit the fiscal year of the Borrower to end on a day other than December 31.

Section 7.10 Negative Pledge Clauses. Enter into or permit to exist or become effective any agreement that prohibits or limits (other than a dollar limit; provided that such dollar limit is sufficient in amount to allow at all times the Liens to secure the obligations under the Loan Documents in full) the ability of the Borrower or any Domestic Subsidiary that is a Restricted Subsidiary to create, incur,



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assume or suffer to exist any Lien upon any of its property or revenues, whether now owned or hereafter acquired, to secure its obligations under the Loan Documents to which it is a party other than (a) this Agreement and the other Loan Documents, (b) any agreements governing any purchase money Liens or Capital Lease Obligations otherwise permitted hereby or any other secured obligation permitted by Section 7.2(c), (d), (g), (t), or (v) (in which case, any prohibition or limitation shall only be effective against (x) in the case of purchase money Liens or Capital Lease Obligations, the assets financed thereby and proceeds thereof and (y) in the case of other secured obligations, the specific assets subject to the Lien securing such obligation), (c) (i) any agreements governing Indebtedness permitted by Section 7.1(k) and any Guarantee Obligations with respect thereto or any Permitted Refinancing Indebtedness in respect thereof ( provided that such prohibitions or limitations contained in any agreement referred to in this clause (c)(i) are not materially more restrictive, when taken as a whole, than Section 7.2 hereof) and (ii) any agreement governing any Indebtedness existing as of the Closing Date and any agreement governing any Permitted Refinancing Indebtedness of such Indebtedness existing as of the Closing Date (provided that such prohibitions or limitations contained therein are not materially more restrictive, when taken as whole, than those (if any) in the agreement governing such Indebtedness as of the Closing Date), (d) customary provisions in joint venture agreements and similar agreements and any agreement with respect to Indebtedness primarily incurred to finance the acquisition of an interest in a joint venture that restrict the transfer or encumbrance of assets of, or equity interests in, the applicable joint ventures, (e) any agreement governing letters of credit issued in accordance with Section 7.1(h) or Bank Products, or Hedging Transactions, in any such case, containing provisions not more restrictive that the provisions of this Agreement, (f) licenses or sublicenses by the Borrower and its Restricted Subsidiaries of Intellectual Property in the ordinary course of business (in which case, any prohibition or limitation shall only be effective against the Intellectual Property subject thereto), (g) customary restrictions in any agreements governing Indebtedness of a joint venture which prohibit the pledge of the assets of, or equity interests in, such joint venture, (h) customary restrictions and conditions contained in any agreement relating to the Disposition of any property permitted under or not prohibited by Section 7.4 pending the consummation of such Disposition and (i) restrictions that exist in any agreement in effect at the time a Subsidiary becomes a Subsidiary of Borrower, so long as such agreement was not entered into in contemplation of such Person becoming a Subsidiary and such restriction applies only to the assets of such Subsidiary.

Section 7.11 Clauses Restricting Subsidiary Distributions. Enter into or permit to exist or become effective any contractual consensual encumbrance or restriction on the ability of any Restricted Subsidiary to (a) make Restricted Payments in respect of any Capital Stock of such Restricted Subsidiary held by, or pay any Indebtedness owed to, the Borrower or any other Loan Party, (b) make loans or advances to, or other Investments in, the Borrower or any other Loan Party or (c) transfer any of its assets to the Borrower or any other Loan Party, except for such encumbrances or restrictions existing under or by reason of (i) any restrictions existing under the Loan Documents, any agreements governing Indebtedness permitted by Section 7.1(k) or (o) and any agreement governing Permitted Refinancing Indebtedness in respect thereof (provided that such prohibitions or limitations contained therein, when taken as a whole, are not materially more restrictive than the equivalent restrictions in this Agreement) and any agreement governing any Indebtedness existing as of the Closing Date and any agreement governing any Permitted Refinancing Indebtedness of such Indebtedness existing as of the Closing Date (provided that such prohibitions or limitations contained therein are, when taken as a whole, are not materially more restrictive than those in the agreement governing such Indebtedness as of the Closing Date), (ii) customary provisions in joint venture agreements and similar agreements that restrict the transfer of equity interests in joint ventures (in which case such restrictions shall relate only to assets of, or equity interests in, such joint venture or any holding company which may hold the Capital Stock of such joint venture), (iii) any restrictions regarding licenses or sublicenses by the Borrower and its Restricted Subsidiaries of Intellectual Property in the ordinary course of business (in which case such



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restriction shall relate only to such Intellectual Property); (iv) restrictions and conditions contained in agreements relating to the sale of all or a substantial part of the capital stock or assets of any Restricted Subsidiary pending such sale, provided such restrictions and conditions apply only to the capital stock or assets to be sold and such sale is permitted hereunder, (v) with respect to restrictions described in clause (a) of this Section 7.11, restrictions contained in agreements governing Indebtedness permitted by Section 7.1 hereof, (vi) with respect to restrictions described in clause (c) of this Section 7.11, restrictions contained in agreements governing Indebtedness permitted by Section 7.1(i) (as long as such restrictions apply to the property financed thereby) and (k) hereof (as long as such restrictions apply only to the assets of the applicable joint venture), (vii) any restriction existing by reason of any holder of a Lien permitted by Section 7.2 restricting the transfer of the property subject thereto, (viii) any restriction and condition contained in any agreement relating to the Disposition of any property not prohibited by Section 7.4 pending the consummation of such Disposition, (ix) any restriction in any agreement in effect at the time a Subsidiary becomes a Subsidiary, so long as such agreement was not entered into in connection with or in contemplation of such person becoming a Subsidiary, (x) any restriction in any instrument governing Indebtedness assumed in connection with any Permitted Acquisition and permitted pursuant to Section 7.1(l), which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person, other than the Person or the properties or assets of the Person so acquired, and (xi) any encumbrances or restrictions imposed by any amendments or refinancings that are otherwise permitted by the Loan Documents of the contracts, instruments or obligations referred to in clauses (iv), (ix) or (x) above; provided that such amendments or refinancings are no more materially restrictive with respect to such encumbrances and restrictions than those prior to such amendment or refinancing; provided further that this Section 7.11 shall not apply to encumbrances or restrictions pursuant to the terms governing Indebtedness of any Foreign Subsidiary provided that such encumbrances or restrictions shall be limited to the assets of such Foreign Subsidiary.

Section 7.12 Lines of Business. Enter into any material business, either directly or through any Restricted Subsidiary, except for those businesses (a) in which the Borrower and its Restricted Subsidiaries are engaged on the date of this Agreement or are identified on Schedule 7.12 or (b) that are reasonably related, incidental, ancillary, complementary (including related, complementary, synergistic or ancillary technologies) or similar thereto, or a reasonable extension, development or expansion thereof.

Section 7.13 Use of Proceeds. Use the proceeds of the Loans for purposes other than those described in Section 4.15. The Borrower will not, and will not permit any Subsidiary to, request any Loan or Letter of Credit or, directly or knowingly indirectly, use the proceeds of any Loan or any Letter of Credit (i) to fund any activities or business of or with any Person, or in any country or territory, that, at the time of such funding, is the subject of Sanctions or (ii) in furtherance of an offer, payment, promise to pay or authorization of the payment or giving of money or anything else of value to any Person in violation of applicable Anti-Corruption Laws.

ARTICLE VIII.

EVENTS OF DEFAULT

Section 8.1 Events of Default. If any of the following events (each, an "Event of Default") shall occur and be continuing on or after the occurrence of the Closing Date:

(a) the Borrower shall fail to pay in the currency required hereunder (i) any principal of any Loan or of any reimbursement obligation in respect of any LC Disbursement, when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for



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prepayment or otherwise; (ii) any interest on any Loan payable under this Agreement when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3) Business Days; or (iii) any fee or any other amount (other than an amount payable under the preceding clauses (i) and (ii) of this Section or an amount related to a Bank Product Obligation) payable under this Agreement or any other Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of five (5) Business Days; or

(b) any representation or warranty made or deemed made by any Group Member herein or in any other Loan Document or that is contained in any certificate, document or financial or other statement furnished by it at any time under or in connection with this Agreement or any such other Loan Document shall prove to have been inaccurate in any material respect (except that such materiality qualifier shall not be applicable to any representations, warranties, certificates or statements that already are qualified or modified by materiality in the text thereof) on or as of the date made or deemed made; or

(c) any Group Member shall default in the observance or performance of any agreement contained in clause (i) of Section 5.4(a) (with respect to the Borrower only), Section 5.7(a), Section 5.13, Article VI or Article VII of this Agreement; or

(d) any Group Member shall default in the observance or performance of any other agreement contained in this Agreement or any other Loan Document (other than as provided in paragraphs (a) through (c) of this Section), and such default shall continue unremedied for a period of 30 consecutive days after the earlier of (i) notice thereof from the Administrative Agent or the Required Lenders to the Borrower or (ii) any Responsible Officer of the Borrower becomes aware of such default; or

(e) any Group Member shall (i) default in making any payment of any principal of any Indebtedness (including any Guarantee Obligation with respect to principal of any Indebtedness described in clause (a), (c) or (e) of the definition thereof, but excluding the Loans or any intercompany Indebtedness) on the scheduled or original due date with respect thereto; or (ii) default in making any payment of any interest on any such Indebtedness beyond the period of grace, if any, provided in the instrument or agreement under which such Indebtedness was created; or (iii) default in the observance or performance of any other agreement or condition relating to any such Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition exist (excluding, in the case of any Permitted Convertible Indebtedness, any event or condition that would permit the holder or beneficiary of such Permitted Convertible Indebtedness to convert such Permitted Convertible Indebtedness into cash, shares of the Borrower's common stock or a combination thereof, in each case to the extent permitted hereunder), the effect of which default or other event or condition is to cause, or to permit the holder or beneficiary of such Indebtedness (or a trustee or agent on behalf of such holder or beneficiary) to cause, with the giving of notice if required, such Indebtedness to become due prior to its stated maturity or (in the case of any such Indebtedness constituting a Guarantee Obligation) to become payable; provided, that a default, event or condition described in clause (i), (ii) or (iii) of this paragraph (e) (x) shall not at any time constitute an Event of Default unless, at such time, one or more defaults, events or conditions of the type described in clauses (i), (ii) and (iii) of this paragraph (e) shall have occurred and be continuing with respect to Indebtedness the outstanding principal amount (or the Net Mark-to-Market Exposure, as applicable) of which exceeds in the aggregate $20,000,000, and (y) shall cease to constitute an Event of Default following the cure or waiver of any such default under such Indebtedness prior to the exercise of any remedies by the Administrative Agent or the Required Lenders pursuant to this Section 8.1; or



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(f) (i) any Group Member shall commence any case, proceeding or other action (A) under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding up, liquidation, dissolution, composition or other relief with respect to it or its debts, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets; or (ii) there shall be commenced against any Group Member any case, proceeding or other action of a nature referred to in clause (i) above that (A) results in the entry of an order for relief or any such adjudication or appointment or (B) remains undismissed or undischarged for a period of 60 consecutive days; or (iii) there shall be commenced against any Group Member any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets that results in the entry of an order for any such relief that shall not have been vacated, discharged, or stayed or bonded pending appeal within 60 days from the entry thereof; or (iv) the board of directors (or equivalent governing body) of the Borrower shall authorize any action set forth in clause (i) above; or (v) any Group Member shall generally not, or shall be unable to, or shall admit in writing its inability to, pay its debts as they become due; or (vi) or any Group Member shall make a general assignment for the benefit of its creditors; or

(g) (i) an ERISA Event shall have occurred; (ii) a trustee shall be appointed by a United States district court to administer any Single Employer Plan; (iii) the PBGC shall institute proceedings to terminate any Single Employer Plan(s); (iv) any Loan Party or any of their respective ERISA Affiliates shall have been notified by the sponsor of a Multiemployer Plan that it has incurred or will be assessed Withdrawal Liability to such Multiemployer Plan and such entity does not have reasonable grounds for contesting such Withdrawal Liability or is not contesting such Withdrawal Liability in a timely and appropriate manner; or (v) any other event or condition shall occur or exist with respect to a Plan; and in each case in clauses (i) through (v) above, such event or condition, together with all other such events or conditions, if any, would reasonably be expected to have a Material Adverse Effect; or

(h) one or more judgments or decrees shall be entered against any Group Member imposing thereon in the aggregate a liability (excluding any amounts paid or covered by insurance as to which the relevant insurance company has not denied coverage) of $20,000,000 or more, and all such judgments or decrees shall not have been vacated, discharged, stayed or bonded pending appeal within 60 days from the entry thereof; or

(i) any of the Loan Documents shall cease, for any reason, to be in full force and effect, or any Loan Party or any Affiliate of any Loan Party shall so assert, or Liens created by the Loan Documents with respect to a material portion of the Collateral shall cease to be enforceable and of the same effect and priority purported to be created thereby, other than, in any such case, by reason of the release thereof in accordance with the terms of the Loan Documents; or

(j) a Change in Control shall occur or exist;

then, and in every such event (other than an event with respect to the Borrower described in subsection (f) of this Section) and at any time thereafter during the continuance of such event, the Administrative Agent may, and upon the written request of the Required Lenders shall, by notice to the Borrower, take any or all of the following actions, at the same or different times: (i) terminate the Commitments, whereupon the Commitment of each Lender shall terminate immediately, (ii) declare the principal of and any accrued interest on the Loans, and all other Obligations owing hereunder, to be, whereupon the same shall become, due and payable immediately, without presentment, demand, protest or other notice of any



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kind, all of which are hereby waived by the Borrower, (iii) exercise all remedies contained in any other Loan Document, and (iv) exercise any other remedies available at law or in equity; provided that, if an Event of Default specified in subsection (f) shall occur, the Commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon, and all fees and all other Obligations shall automatically become due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower.

Section 8.2 Application of Proceeds from Collateral. All proceeds from each sale of, or other realization upon, all or any part of the Collateral by any Secured Party after an Event of Default arises shall be applied as follows:

(a) first, to the reimbursable expenses of the Administrative Agent incurred in connection with such sale or other realization upon the Collateral, until the same shall have been paid in full;

(b) second, to the fees and other reimbursable expenses of the Administrative Agent, the Swingline Lender and the Issuing Bank then due and payable pursuant to any of the Loan Documents, until the same shall have been paid in full;

(c) third, to all reimbursable expenses, if any, of the Lenders then due and payable pursuant to any of the Loan Documents, until the same shall have been paid in full;

(d) fourth, to the fees and interest then due and payable under the terms of this Agreement, until the same shall have been paid in full;

(e) fifth, to the aggregate outstanding principal amount of the Loans, the LC Exposure, the Bank Product Obligations and the Hedging Obligations that constitute Obligations, until the same shall have been paid in full, allocated pro rata among the Secured Parties based on their respective pro rata shares of the aggregate amount of such Loans, LC Exposure, Bank Product Obligations and Hedging Obligations;

(f) sixth, to additional cash collateral for the aggregate amount of all outstanding Letters of Credit until the aggregate amount of all cash collateral held by the Administrative Agent pursuant to this Agreement is at least 105% of the Dollar Equivalent of the LC Exposure after giving effect to the foregoing clause fifth; and

(g) seventh, to the extent any proceeds remain, to the Borrower or as otherwise provided by a court of competent jurisdiction.

All amounts allocated pursuant to the foregoing clauses third through fifth to the Lenders as a result of amounts owed to the Lenders under the Loan Documents shall be allocated among, and distributed to, the Lenders pro rata based on their respective Pro Rata Shares; provided that all amounts allocated to that portion of the LC Exposure comprised of the aggregate undrawn amount of all outstanding Letters of Credit pursuant to clauses fifth and sixth shall be distributed to the Administrative Agent, rather than to the Lenders, and held by the Administrative Agent in an account in the name of the Administrative Agent for the benefit of the Issuing Bank and the Lenders as cash collateral for the LC Exposure, such account to be administered in accordance with Section 2.22(g). All cash collateral for LC Exposure shall be applied to satisfy drawings under the Letters of Credit as they occur; if any amount remains on deposit on cash collateral after all letters of credit have either been fully drawn or expired, such remaining amount shall be applied to other Obligations, if any, in the order set forth above.



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Notwithstanding the foregoing, (a) no amount received from any Guarantor (including any proceeds of any sale of, or other realization upon, all or any part of the Collateral owned by such Guarantor) shall be applied to any Excluded Swap Obligation of such Guarantor and (b) Bank Product Obligations and Hedging Obligations shall be excluded from the application described above if the Administrative Agent has not received written notice thereof, together with such supporting documentation as the Administrative Agent may request, from the Bank Product Provider or the Lender-Related Hedge Provider, as the case may be. Each Bank Product Provider or Lender-Related Hedge Provider that has given the notice contemplated by the preceding sentence shall, by such notice, be deemed to have acknowledged and accepted the appointment of the Administrative Agent pursuant to the terms of Article IX hereof for itself and its Affiliates as if a "Lender" party hereto.

ARTICLE IX.

THE ADMINISTRATIVE AGENT

Section 9.1 Appointment of the Administrative Agent.

(a) Each Lender irrevocably appoints Truist Bank as the Administrative Agent and authorizes it to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent under this Agreement and the other Loan Documents, together with all such actions and powers that are reasonably incidental thereto. The Administrative Agent may perform any of its duties hereunder or under the other Loan Documents by or through any one or more sub-agents or attorneys-in-fact appointed by the Administrative Agent. The Administrative Agent and any such sub-agent or attorney-in-fact may perform any and all of its duties and exercise its rights and powers through their respective Related Parties. The exculpatory provisions set forth in this Article shall apply to any such sub-agent, attorney-in-fact or Related Party and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as the Administrative Agent.

(b) The Issuing Bank shall act on behalf of the Lenders with respect to any Letters of Credit issued by it and the documents associated therewith until such time and except for so long as the Administrative Agent may agree at the request of the Required Lenders to act for the Issuing Bank with respect thereto; provided that the Issuing Bank shall have all the benefits and immunities (i) provided to the Administrative Agent in this Article with respect to any acts taken or omissions suffered by the Issuing Bank in connection with Letters of Credit issued by it or proposed to be issued by it and the application and agreements for letters of credit pertaining to the Letters of Credit as fully as if the term "Administrative Agent" as used in this Article included the Issuing Bank with respect to such acts or omissions and (ii) as additionally provided in this Agreement with respect to the Issuing Bank.

(c) It is understood and agreed that the use of the term "agent" herein or in any other Loan Document (or any similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead such term is used as a matter of market custom and is intended to create or reflect only an administrative relationship between contracting parties.



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Section 9.2 Nature of Duties of the Administrative Agent. The Administrative Agent shall not have any duties or obligations except those expressly set forth in this Agreement and the other Loan Documents. Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default or an Event of Default has occurred and is continuing; (b) the Administrative Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, except those discretionary rights and powers expressly contemplated by the Loan Documents that the Administrative Agent is required to exercise in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 10.2), provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable law, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and (c) except as expressly set forth in the Loan Documents, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Subsidiaries that is communicated to or obtained by the Administrative Agent or any of its Affiliates in any capacity. The Administrative Agent shall not be liable for any action taken or not taken by it, its sub-agents or its attorneys-in-fact with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 10.2) or in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction in a final non-appealable judgment. The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents or attorneys-in-fact except to the extent that a court of competent jurisdiction determines in a final and non-appealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents. The Administrative Agent shall not be deemed to have knowledge of any Default or Event of Default unless and until written notice thereof (which notice shall include an express reference to such event being a "Default" or "Event of Default" hereunder) is given to the Administrative Agent by the Borrower or any Lender, and the Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with any Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements, or other terms and conditions set forth in any Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article III or elsewhere in any Loan Document, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent. The Administrative Agent may consult with legal counsel (including counsel for the Borrower) concerning all matters pertaining to such duties.

Section 9.3 Lack of Reliance on the Administrative Agent. Each of the Lenders, the Swingline Lender and the Issuing Bank acknowledges that it has, independently and without reliance upon the Administrative Agent, the Issuing Bank or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each of the Lenders, the Swingline Lender and the Issuing Bank also acknowledges that it will, independently and without reliance upon the Administrative Agent, the Issuing Bank or any other Lender and based on such documents and information as it has deemed appropriate, continue to make its own credit analysis, appraisals and decisions in taking or not taking any action under or based on this Agreement, any related agreement or any document furnished hereunder or thereunder, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of the Loan Parties. Each Lender represents and warrants that (i) the Loan Documents set forth the terms of a commercial lending facility and (ii) it is engaged in making, acquiring or holding commercial loans in the ordinary course and is entering into this



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Agreement as a Lender for the purpose of making, acquiring or holding commercial loans and providing other facilities set forth herein as may be applicable to such Lender, and not for the purpose of purchasing, acquiring or holding any other type of financial instrument, and each Lender agrees not to assert a claim in contravention of the foregoing. Each Lender represents and warrants that it is sophisticated with respect to decisions to make, acquire and/or hold commercial loans and to provide other facilities set forth herein, as may be applicable to such Lender, and either it, or the Person exercising discretion in making its decision to make, acquire and/or hold such commercial loans or to provide such other facilities, is experienced in making, acquiring or holding such commercial loans or providing such other facilities.

Section 9.4 Certain Rights of the Administrative Agent. If the Administrative Agent shall request instructions from the Required Lenders with respect to any action or actions (including the failure to act) in connection with this Agreement, the Administrative Agent shall be entitled to refrain from such act or taking such act unless and until it shall have received instructions from such Lenders, and the Administrative Agent shall not incur liability to any Person by reason of so refraining. Without limiting the foregoing, no Lender shall have any right of action whatsoever against the Administrative Agent as a result of the Administrative Agent acting or refraining from acting hereunder in accordance with the instructions of the Required Lenders where required by the terms of this Agreement.

Section 9.5 Reliance by the Administrative Agent. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, posting or other distribution) believed by it to be genuine and to have been signed, sent or made by the proper Person. The Administrative Agent may also rely upon any statement made to it orally or by telephone and believed by it to be made by the proper Person and shall not incur any liability for relying thereon. The Administrative Agent may consult with legal counsel (including counsel for the Borrower), independent public accountants and other experts selected by it and shall not be liable for any action taken or not taken by it in accordance with the advice of such counsel, accountants or experts.

Section 9.6 The Administrative Agent in its Individual Capacity. The bank serving as the Administrative Agent shall have the same rights and powers under this Agreement and any other Loan Document in its capacity as a Lender as any other Lender and may exercise or refrain from exercising the same as though it were not the Administrative Agent; and the terms "Lenders", "Required Lenders", and any similar terms shall, unless the context clearly otherwise indicates, include the Administrative Agent in its individual capacity. The bank acting as the Administrative Agent and its Affiliates may accept deposits from, lend money to, and generally engage in any kind of business with the Borrower or any Subsidiary or Affiliate of the Borrower as if it were not the Administrative Agent hereunder.

Section 9.7 Successor Administrative Agent.

(a) The Administrative Agent may resign at any time by giving 30 days prior written notice thereof to the Lenders and the Borrower (or, if a successor Administrative Agent has been appointed in accordance with the terms hereof prior to the end of such 30-day period, such shorter period of time). Upon any such resignation, the Required Lenders shall have the right to appoint a successor Administrative Agent, subject to approval by the Borrower provided that no Event of Default shall exist at such time. If no successor Administrative Agent shall have been so appointed, and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of resignation, then the retiring Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative Agent which shall be a commercial bank organized under the laws of the United States or any state thereof or a bank which maintains an office in the United States. Any resignation by the Administrative



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Agent pursuant to this Section shall also constitute its resignation as an Issuing Bank and Swingline Lender. Upon the acceptance of a successor's appointment as Administrative Agent hereunder: (i) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring Issuing Bank and Swingline Lender; (ii) the retiring Issuing Bank and Swingline Lender shall be discharged from all of their respective duties and obligations hereunder or under the other Loan Documents (other than its confidentiality obligations under Section 10.11); and (iii) the successor Issuing Bank shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangement satisfactory to the retiring Issuing Bank to effectively assume the obligations of the retiring Issuing Bank with respect to such Letters of Credit.

(b) Upon the acceptance of its appointment as the Administrative Agent hereunder by a successor, such successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations under this Agreement and the other Loan Documents. If, within 60 days after written notice is given of the retiring Administrative Agent's resignation under this Section, no successor Administrative Agent shall have been appointed and shall have accepted such appointment, then on such 60th day (i) the retiring Administrative Agent's resignation shall become effective, (ii) the retiring Administrative Agent shall thereupon be discharged from its duties and obligations under the Loan Documents (other than its confidentiality obligations under Section 10.11) and (iii) the Required Lenders shall thereafter perform all duties of the retiring Administrative Agent under the Loan Documents until such time as the Borrower and the Required Lenders appoint a successor Administrative Agent as provided above (with the approval of the Borrower if so required pursuant to the terms above). After any retiring Administrative Agent's resignation hereunder, the provisions of this Article shall continue in effect for the benefit of such retiring Administrative Agent and its representatives and agents in respect of any actions taken or not taken by any of them while it was serving as the Administrative Agent.

Section 9.8 Withholding Tax. To the extent required by any applicable law, the Administrative Agent may withhold from any interest payment to any Lender an amount equivalent to any applicable withholding tax. If the Internal Revenue Service or any authority of the United States or any other jurisdiction asserts a claim that the Administrative Agent did not properly withhold tax from amounts paid to or for the account of any Lender (because the appropriate form was not delivered or was not properly executed, or because such Lender failed to notify the Administrative Agent of a change in circumstances that rendered the exemption from, or reduction of, withholding tax ineffective, or for any other reason), such Lender shall indemnify the Administrative Agent (to the extent that the Administrative Agent has not already been reimbursed by the Borrower and without limiting the obligation of the Borrower to do so) fully for all amounts paid, directly or indirectly, by the Administrative Agent as tax or otherwise, including penalties and interest, together with all expenses incurred, including legal expenses, allocated staff costs and any out of pocket expenses.

Section 9.9 The Administrative Agent May File Proofs of Claim.

(a) In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the principal of any Loan or any Revolving Credit Exposure shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise:



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(i) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans or Revolving Credit Exposure and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders, the Issuing Bank and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the Issuing Bank and the Administrative Agent and its agents and counsel and all other amounts due the Lenders, the Issuing Bank and the Administrative Agent under Section 10.3) allowed in such judicial proceeding; and

(ii) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same.

(b) Any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and the Issuing Bank to make such payments to the Administrative Agent and, if the Administrative Agent shall consent to the making of such payments directly to the Lenders and the Issuing Bank, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Section 10.3.

Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender or the Issuing Bank any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

Section 9.10 Authorization to Execute Other Loan Documents. Each Lender hereby authorizes the Administrative Agent to execute on behalf of all Lenders all Loan Documents (including, without limitation, the Security Documents and any subordination agreements or intercreditor agreements contemplated by, or expressly permitted by, this Agreement) other than this Agreement.

Section 9.11 Collateral and Guaranty Matters. The Lenders irrevocably authorize the Administrative Agent, at its option and in its discretion:

(a) to release any Lien on any property granted to or held by the Administrative Agent under any Loan Document (i) upon the termination of all Commitments, the Cash Collateralization of all reimbursement obligations with respect to Letters of Credit in an amount equal to 105% of the Dollar Equivalent of the aggregate LC Exposure of all Lenders, and the payment in full of all Obligations (other than contingent indemnification obligations as to which no claim has been made by the Person entitled thereto and Cash Collateralized reimbursement obligations), (ii) to the extent necessary or appropriate to permit consummation of any transaction not prohibited by any Loan Document, or (iii) if approved, authorized or ratified in writing in accordance with Section 10.2;

(b) to release any Loan Party from its obligations under the applicable Security Documents if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder or in connection with the change in status of any Subsidiary which has become an Excluded Subsidiary;



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(c) to subordinate any Lien on any property granted to or held by the Administrative Agent under any Security Document to the holder of any Lien on such property that is permitted by Section 7.2(g); and

(d) to enter into any Market Intercreditor Agreements or arrangements reasonably satisfactory to the Administrative Agent in order to effectuate the intent of Section 7.1(k).

Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent's authority to release its interest in particular types or items of property, to release any Loan Party from its obligations under the applicable Security Documents pursuant to this Section, or to enter into a Market Intercreditor Agreement. In each case as specified in this Section, at the Borrower's expense, the Administrative Agent is authorized to and shall execute and deliver to the applicable Loan Party such documents as such Loan Party may reasonably request to evidence the release of such item of Collateral from the Liens granted under the applicable Security Documents, or to release such Loan Party from its obligations under the applicable Security Documents, in each case in accordance with the terms of the Loan Documents and this Section.

Section 9.12 Co-Documentation Agents; Co-Syndication Agents. Each Lender hereby designates Barclays Bank PLC and Silicon Valley Bank as Co-Documentation Agents and agrees that the Co-Documentation Agents shall have no duties or obligations under any Loan Documents to any Lender or any Loan Party. Each Lender hereby designates Citizens Bank, National Association and HSBC, Bank USAof America, N.A., Barclays Bank PLC, PNC Bank, National Association and Silicon Valley Bank as Co-Syndication Agents and agrees that the Co-Syndication Agents shall have no duties or obligations under any Loan Documents to any Lender or any Loan Party.

Section 9.13 Right to Realize on Collateral and Enforce Guarantee. Anything contained in any of the Loan Documents to the contrary notwithstanding, the Borrower, the Administrative Agent and each Lender hereby agree that (i) no Lender shall have any right individually to realize upon any of the Collateral or to enforce the Security Documents, it being understood and agreed that all powers, rights and remedies hereunder and under the Security Documents may be exercised solely by the Administrative Agent, and (ii) in the event of a foreclosure by the Administrative Agent on any of the Collateral pursuant to a public or private sale or other disposition, the Administrative Agent or any Lender may be the purchaser or licensor of any or all of such Collateral at any such sale or other disposition and the Administrative Agent, as agent for and representative of the Lenders (but not any Lender or Lenders in its or their respective individual capacities unless the Required Lenders shall otherwise agree in writing), shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold at any such public sale, to use and apply any of the Obligations as a credit on account of the purchase price for any collateral payable by the Administrative Agent at such sale or other disposition.

Section 9.14 Secured Bank Product Obligations and Hedging Obligations. No Bank Product Provider or Lender-Related Hedge Provider that obtains the benefits of Section 8.2, the Security Documents or any Collateral by virtue of the provisions hereof or of any other Loan Document shall have any right to notice of any action or to consent to, direct or object to any action hereunder or under any other Loan Document or otherwise in respect of the Collateral (including the release or impairment of any Collateral) other than in its capacity as a Lender and, in such case, only to the extent expressly provided in the Loan Documents. Notwithstanding any other provision of this Article to the contrary, the Administrative Agent shall not be required to verify the payment of, or that other satisfactory arrangements have been made with respect to, Bank Product Obligations and Hedging Obligations unless the Administrative Agent has received written notice of such Obligations, together with such supporting documentation as the Administrative Agent may request, from the applicable Bank Product Provider or Lender-Related Hedge Provider, as the case may be.



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Section 9.15 Erroneous Payments.

(a) If the Administrative Agent notifies a Lender, Issuing Bank or Secured Party, or any Person who has received funds on behalf of a Lender, Issuing Bank or Secured Party (any such Lender, Issuing Bank, Secured Party or other recipient, a "Payment Recipient") that the Administrative Agent has determined in its sole discretion (whether or not after receipt of any notice under Section 9.15(b)) that any funds received by such Payment Recipient from the Administrative Agent or any of its Affiliates were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Lender, Issuing Bank, Secured Party or other Payment Recipient on its behalf) (any such funds, whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an "Erroneous Payment") and demands the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the Administrative Agent and shall be segregated by the Payment Recipient and held in trust for the benefit of the Administrative Agent, and such Lender, Issuing Bank or Secured Party shall (or, with respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later than two (2) Business Days thereafter, return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent in same day funds at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice of the Administrative Agent to any Payment Recipient under this Section 9.15(a) shall be conclusive, absent manifest error.

(b) Without limiting Section 9.15(a), each Lender, Issuing Bank or Secured Party, or any Person who has received funds on behalf of a Lender, Issuing Bank or Secured Party, hereby further agrees that if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) (x) that is in a different amount than, or on a different date from, that specified in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (z) that such Lender, Issuing Bank or Secured Party, or other such recipient, otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part) in each case:

(i) (A) in the case of immediately preceding clauses (x) or (y), an error shall be presumed to have been made (absent written confirmation from the Administrative Agent to the contrary) or (B) an error has been made (in the case of immediately preceding clause (z)), in each case, with respect to such payment, prepayment or repayment; and

(ii) such Lender, Issuing Bank or Secured Party shall (and shall cause any other recipient that receives funds on its respective behalf to) promptly (and, in all events, within one Business Day of its knowledge of such error) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this Section 9.15(b).



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(c) Each Lender, Issuing Bank or Secured Party hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Lender, Issuing Bank or Secured Party under any Loan Document, or otherwise payable or distributable by the Administrative Agent to such Lender, Issuing Bank or Secured Party from any source, against any amount due to the Administrative Agent under immediately preceding Section 9.15(a) or under the indemnification provisions of this Agreement.

(d) In the event that an Erroneous Payment (or portion thereof) is not recovered by the Administrative Agent for any reason, after demand therefor by the Administrative Agent in accordance with immediately preceding Section 9.15(a), from any Lender or Issuing Bank that has received such Erroneous Payment (or portion thereof) (and/or from any Payment Recipient who received such Erroneous Payment (or portion thereof) on such Lender's or Issuing Bank's behalf, as applicable) (such unrecovered amount, an "Erroneous Payment Return Deficiency"), upon the Administrative Agent's notice to such Lender or Issuing Lender at any time, (i) such Lender or Issuing Bank shall be deemed to have assigned its Loans (but not its Commitments) of the relevant Class with respect to which such Erroneous Payment was made (the "Erroneous Payment Impacted Class") in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of the Loans (but not Commitments) of the Erroneous Payment Impacted Class, the "Erroneous Payment Deficiency Assignment") at par plus any accrued and unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance), and is hereby deemed to execute and deliver an Assignment and Assumption (or, to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to a Platform as to which the Administrative Agent and such parties are participants) with respect to such Erroneous Payment Deficiency Assignment, and such Lender or Issuing Bank shall deliver any promissory notes evidencing such Loans to the Borrower or the Administrative Agent, (ii) the Administrative Agent as the assignee Lender shall be deemed to acquire the Erroneous Payment Deficiency Assignment, (iii) upon such deemed acquisition, the Administrative Agent as the assignee Lender shall become a Lender or Issuing Bank, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment and the assigning Lender or assigning Issuing Bank shall cease to be a Lender or Issuing Bank, as applicable, hereunder with respect to such Erroneous Payment Deficiency Assignment, excluding, for the avoidance of doubt, its obligations under the indemnification provisions of this Agreement and its applicable Commitments which shall survive as to such assigning Lender or assigning Issuing Bank, and (iv) the Administrative Agent may reflect in the Register its ownership interest in the Loans subject to the Erroneous Payment Deficiency Assignment. The Administrative Agent may, in its discretion, sell any Loans acquired pursuant to an Erroneous Payment Deficiency Assignment and upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender or Issuing Bank shall be reduced by the net proceeds of the sale of such Loan (or portion thereof), and the Administrative Agent shall retain all other rights, remedies and claims against such Lender or Issuing Bank (and/or against any recipient that receives funds on its respective behalf). For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender or Issuing Bank and such Commitments shall remain available in accordance with the terms of this Agreement. In addition, each party hereto agrees that (a) except to the extent that the Administrative Agent has sold a Loan (or portion thereof) acquired pursuant to an Erroneous Payment Deficiency Assignment, and irrespective of whether the Administrative Agent may be equitably subrogated, the Administrative Agent shall be contractually subrogated to all the rights and interests of the applicable Lender, Issuing Bank or Secured Party under the Loan Documents with respect to each Erroneous Payment Return Deficiency and (b) the Administrative Agent is authorized to set off, net and apply any



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and all amounts at any time owing to such Payment Recipient under any Loan Document, or otherwise payable or distributable by the Administrative Agent to such Payment Recipient from any source, against any amount due to the Administrative Agent under this Section 9.15 or under the indemnification provisions of this Agreement.

(e) The parties hereto agree that an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrower or any other Loan Party, except, in each case, to the extent such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that is, comprised of funds received by the Administrative Agent from the Borrower or any other Loan Party for the purpose of making such Erroneous Payment.

(f) To the extent permitted by applicable law, no Payment Recipient shall assert any right or claim to an Erroneous Payment, and hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment received, including without limitation waiver of any defense based on "discharge for value" or any similar doctrine.

(g) Each party's obligations, agreements and waivers under this Section 9.15 shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, a Lender or Issuing Bank, the termination of the Commitments and/or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Loan Document.

(h) Notwithstanding anything to the contrary herein or in any other Loan Document, this Section 9.15 will not increase or otherwise alter the Loan Parties' obligations or liabilities under the Loan Documents.

ARTICLE X.

MISCELLANEOUS

Section 10.1 Notices.

(a) Written Notices.

(i) Except in the case of notices and other communications expressly permitted hereunder to be given by telephone, all notices and other communications to any party herein to be effective shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopy or electronic transmission (subject to clause (b) below), as follows:



| | | | | |
| | | To the Borrower: | | Teradyne, Inc. |
| | | | | |
| | | | | 600 Riverpark Drive |
| | | | | |
| | | | | North Reading, Massachusetts 01864 |
| | | | | |
| | | | | Attention: Charles J. Gray, Vice President and General |
| | | | | |
| | | | | Counsel |
| | | | | |
| | | | | Telecopy Number: (978) 370-2290 |
| | | | | |
| | | | | E-mail: charles.gray@teradyne.com |



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| | | | | |
| | | |
| | | With a copies to (for | | |
| | | Information purposes only): | | Ropes & Gray LLP |
| | | | | |
| | | | | Prudential Tower, 800 Boylston Street |
| | | | | |
| | | | | Boston, Massachusetts 02199 |
| | | | | |
| | | | | Attention: Michael Lee |
| | | | | |
| | | | | E-mail: Michael.Lee@ropesgray.com |
| | | |
| | | To the Administrative Agent: | | |
| | | |
| | | For Notices of Borrowing and Notices of Conversion/ | | |
| | | Continuation: | | Truist Bank |
| | | | | |
| | | | | 303 Peachtree Street, 25th Floor |
| | | | | |
| | | | | Mail Code GA-ATL-7662 |
| | | | | |
| | | | | Atlanta, Georgia 30308 |
| | | | | |
| | | | | Attention: Agency Services |
| | | | | |
| | | | | Telecopy Number: (801) 453-4108 |
| | | | | |
| | | | | E-mail: agency.services@truist.com |
| | | |
| | | For All Other Notices: | | Truist Bank |
| | | | | |
| | | | | One Montgomery Tower, Suite 2800 |
| | | | | |
| | | | | San Francisco, California 94104-5532 |
| | | | | |
| | | | | Attention: Portfolio Manager |
| | | | | |
| | | | | Telecopy Number: (310) 420-1126 |
| | | | | |
| | | | | E-mail: Alfonso.Brigham@truist.com |
| | | |
| | | With a copies to (for | | |
| | | Information purposes only): | | Choate, Hall & Stewart LLP |
| | | | | |
| | | | | Two International Place |
| | | | | |
| | | | | Boston, Massachusetts 02110 |
| | | | | |
| | | | | Attention: Sean M. Monahan |
| | | | | |
| | | | | Telecopy Number: (617) 248-4000 |
| | | | | |
| | | | | E-mail: smonahan@choate.com |
| | | |
| | | To the Issuing Bank: | | Truist Bank |
| | | | | |
| | | | | Attn: Standby Letter of Credit Dept. |
| | | | | |
| | | | | 245 Peachtree Center Ave., 17th FL |
| | | | | |
| | | | | Atlanta, GA 30303 |
| | | | | |
| | | | | Telephone: (800) 951-7847 |
| | | |
| | | To the Swingline Lender: | | Truist Bank |
| | | | | |
| | | | | 303 Peachtree Street, 25th Floor |
| | | | | |
| | | | | Mail Code 7662 |
| | | | | |
| | | | | Atlanta, Georgia 30308 |
| | | | | |
| | | | | Attention: Agency Services |
| | | | | |
| | | | | Telecopy Number: (801) 453-4108 |
| | | | | |
| | | | | E-mail: Agency.Services@suntrust.com |
| | | |
| | | To any other Lender: | | the address set forth in the Administrative Questionnaire or the Assignment and Acceptance executed by such Lender |



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Any party hereto may change its address, telecopy number or e-mail for notices and other communications hereunder by notice to the other parties hereto. All such notices and other communications sent to any party hereto in accordance with the provisions of this Agreement or made upon the earlier to occur of (i) actual receipt by the relevant party hereto and (ii) (A) if delivered by hand or by courier, when signed for by or on behalf of the relevant party hereto; (B) if delivered by mail, four (4) Business Days after deposit in the mails, postage prepaid; (C) if delivered by facsimile, when sent and receipt has been confirmed by telephone; and (D) if delivered by electronic mail, to the extent provided in clause (b) below and effective as provided in such clause; provided that notices and other communications to the Administrative Agent and an Issuing Bank pursuant to Article II shall not be effective until actually received by such Person. In no event shall a voice mail message be effective as a notice, communication or confirmation hereunder.

(ii) Any agreement of the Administrative Agent, the Issuing Bank or any Lender herein to receive certain notices by telephone or facsimile is solely for the convenience and at the request of the Borrower. The Administrative Agent, the Issuing Bank and each Lender shall be entitled to rely on the authority of any Person purporting to be a Person authorized by the Borrower to give such notice and the Administrative Agent, the Issuing Bank and the Lenders shall not have any liability to the Borrower or other Person on account of any action taken or not taken by the Administrative Agent, the Issuing Bank or any Lender in reliance upon such telephonic or facsimile notice. The obligation of the Borrower to repay the Loans and all other Obligations hereunder shall not be affected in any way or to any extent by any failure of the Administrative Agent, the Issuing Bank or any Lender to receive written confirmation of any telephonic or facsimile notice or the receipt by the Administrative Agent, the Issuing Bank or any Lender of a confirmation which is at variance with the terms understood by the Administrative Agent, the Issuing Bank and such Lender to be contained in any such telephonic or facsimile notice.

(b) Electronic Communications.

(i) Notices and other communications to the Lenders and the Issuing Bank hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices to any Lender or the Issuing Bank if such Lender or such Issuing Bank, as applicable, has notified the Administrative Agent that it is incapable of receiving, or is unwilling to receive, notices by electronic communication. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.

(ii) Unless the Administrative Agent otherwise prescribes, (A) notices and other communications sent to an e-mail address shall be deemed received upon the



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sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement) and (B) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (A) of notification that such notice or communication is available and identifying the website address therefor; provided that, in the case of clauses (A) and (B) above, if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next Business Day for the recipient.

(iii) The Borrower agrees that the Administrative Agent may, but shall not be obligated to, make Communications (as defined below) available to the Issuing Bank and the other Lenders by posting the Communications on Debt Domain, Intralinks, Syndtrak, ClearPar or a substantially similar electronic system.

(iv) THE PLATFORM IS PROVIDED "AS IS" AND "AS AVAILABLE." NEITHER THE ADMINISTRATIVE AGENT NOR ANY OF ITS RELATED PARTIES WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS IN THE COMMUNICATIONS (AS DEFINED BELOW) AND FROM THE BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE ADMINISTRATIVE AGENT OR ANY OF ITS RELATED PARTIES IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM. In no event shall the Administrative Agent or any of its Related Parties have any liability to any Loan Party or any of their respective Subsidiaries, any Lender, any Issuing Bank or any other Person or entity for losses, claims, damages, liabilities or expenses of any kind, including, without limitation, direct or indirect, special, incidental or consequential damages, losses or expenses, whether or not based on strict liability (whether in tort, contract or otherwise), arising out of any Loan Party's or the Administrative Agent's transmission of Borrower Materials through the Internet, except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of the Administrative Agent or such Related Party; provided, however, that in no event shall the Administrative Agent or any Related Party have any liability to any Loan Party or any of their respective Subsidiaries, any Lender, any Issuing Bank or any other Person for indirect, special, incidental, consequential or punitive damages (as opposed to direct or actual damages) arising out of any Loan Party's or the Administrative Agent's transmission of Communications. "Communications" means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of any Loan Party pursuant to any Loan Document or the transactions contemplated therein which is distributed by the Administrative Agent, any Lender or the Issuing Bank by means of electronic communications pursuant to this Section, including through the Platform.



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(c) Telephonic Notices. In the case of any notices or other communications expressly permitted hereunder to be given by telephone, such notice shall be made to the applicable telephone number set forth on Schedule 10.1.

(d) Loan Documents may be transmitted and/or signed by facsimile or other electronic communication. The effectiveness of any such documents and signatures shall, subject to applicable Requirements of Law, have the same force and effect as manually signed originals and shall be binding on all Loan Parties, the Agents and the Lenders.

Section 10.2 Waiver; Amendments.

(a) No failure or delay by the Administrative Agent, the Issuing Bank or any Lender in exercising any right or power hereunder or under any other Loan Document, and no course of dealing between the Borrower and the Administrative Agent or any Lender, shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such right or power, preclude any other or further exercise thereof or the exercise of any other right or power hereunder or thereunder. The rights and remedies of the Administrative Agent, the Issuing Bank and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies provided by law. No waiver of any provision of this Agreement or of any other Loan Document or consent to any departure by the Borrower therefrom shall in any event be effective unless the same shall be permitted by subsection (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or the issuance of a Letter of Credit shall not be construed as a waiver of any Default or Event of Default, regardless of whether the Administrative Agent, any Lender or the Issuing Bank may have had notice or knowledge of such Default or Event of Default at the time.

(b) Except as otherwise provided in this Agreement, including, without limitation, as provided in Section 2.16 with respect to the implementation of a Benchmark Replacement or Benchmark Conforming Changes (as set forth therein) and Section 2.23, no amendment or waiver of any provision of this Agreement or of the other Loan Documents (other than the Fee Letter or any other fee letters entered into after the date hereof with the Administrative Agent), nor consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Borrower and the Required Lenders, or the Borrower and the Administrative Agent with the consent of the Required Lenders, and then such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided that, no amendment, waiver or consent shall:

(i) increase the Commitment of any Lender without the written consent of such Lender;

(ii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees or other amounts payable hereunder, without the written consent of each Lender affected thereby (except (x) in connection with the waiver of applicability of any post-default increase in interest rates (which waiver shall be effective with the consent of the Required Lenders) and (y) that any amendment or modification of defined terms used in the financial covenants in this Agreement shall not constitute a reduction in the rate of interest or fees for purposes of this clause (ii));



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(iii) postpone the date fixed for any payment of any principal of, or interest on, any Loan or LC Disbursement or any fees or other amounts hereunder or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date for the termination or reduction of any Commitment, without the written consent of each Lender affected thereby;

(iv) (A) change Section 2.21(b) or (c) in a manner that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender or (B) change Section 8.2 in a manner that would alter the pro rata sharing of payments or the order of application required thereby without the written consent of each Lender affected thereby;

(v) change any of the provisions of this subsection (b) or the definition of "Required Lenders" or any other provision hereof specifying the number or percentage of Lenders which are required to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder, without the consent of each Lender affected thereby;

(vi) release all or substantially all of the Guarantors, or limit the liability of such Guarantors, under any guaranty agreement guaranteeing any of the Obligations, without the written consent of each Lender (except as expressly provided in Section 9.11);

(vii) release all or substantially all Collateral securing any of the Obligations, without the written consent of each Lender (except as expressly provided in Section 9.11);

(viii) release the Borrower from all or substantially all of its obligations under the Guarantee and Collateral Agreement without the written consent of each Lender (except as expressly provided in Section 9.11);

(ix) except as expressly permitted herein or in any other Loan Document, subordinate the Obligations hereunder or the Liens granted under the Security Documents, to any other Indebtedness or Lien, as the case may be, without the written consent of each Lender;

provided, further, that no such amendment, waiver or consent shall amend, modify or otherwise affect the rights, duties or obligations of the Administrative Agent, the Swingline Lender or the Issuing Bank without the prior written consent of such Person.

Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of such Lender may not be increased or extended, and amounts payable to such Lender hereunder may not be permanently reduced, without the consent of such Lender (other than reductions in fees and interest in which such reduction does not disproportionately affect such Lender). Notwithstanding anything contained herein to the contrary, this Agreement may be amended and restated without the consent of any Lender (but with the consent of the Borrower and the Administrative Agent) if, upon giving effect to such amendment and restatement, such Lender shall no longer be a party to this Agreement (as so amended and restated), the Commitments of such Lender shall have terminated (but such Lender shall continue to be entitled to the benefits of Sections 2.18, 2.19, 2.20 and 10.3), such Lender shall have no other commitment or other obligation hereunder and such Lender shall have been paid in full all principal, interest and other amounts owing to it or accrued for its account under this Agreement.



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Notwithstanding the foregoing, this Agreement may be amended or amended and restated (x) with the written consent of the Administrative Agent, the Borrower and the Lenders providing the relevant Replacement Term Loans (as defined below) to permit the refinancing of all or a portion of the Loans outstanding under an Incremental Term Facility or any prior Replacement Facility ("Refinanced Term Loans") with a replacement term loan tranche hereunder which shall be Loans hereunder ("Replacement Term Loans"); provided that (i) the aggregate principal amount of such Replacement Term Loans shall not exceed the aggregate principal amount of such Refinanced Term Loans plus fees and expenses in connection therewith, (ii) the weighted average life to maturity of such Replacement Term Loans shall not be shorter than the weighted average life to maturity of such Refinanced Term Loans at the time of such refinancing (except to the extent of nominal amortization for periods where amortization has been eliminated as a result of prepayment of the Refinanced Term Loans) and (iii) all other terms applicable to such Replacement Term Loans shall be substantially identical to or, taken as a whole, less favorable to the Lenders providing such Replacement Term Loans, than those applicable to such Refinanced Term Loans, except to the extent necessary to provide for covenants and other terms applicable to any period after the latest final maturity of any Loans in effect immediately prior to such refinancing and (y) with the written consent of the Administrative Agent, the Borrower and the Lenders providing the relevant Replacement Revolving Facility (as defined below) to permit the refinancing of any Refinanced Term Loans or the Revolving Facility ("Refinanced Revolving Facility" and collectively with Refinanced Term Loans, "Refinanced Facilities") with a replacement revolving facility hereunder ("Replacement Revolving Facility" and collectively with Replacement Term Loans, "Replacement Facilities"); provided that (i) the aggregate principal amount of such Replacement Revolving Facility shall not exceed the aggregate principal amount of such Refinanced Term Loans or Aggregate Revolving Commitment Amount, as applicable, plus fees and expenses in connection therewith, (ii) the final maturity date of such Replacement Revolving Facility shall be no earlier than the final maturity date of the Refinanced Term Loans or the Maturity Date, as applicable, (iii) if refinancing or replacing Refinanced Term Loans, the Replacement Revolving Facility shall be fully drawn on the closing date thereof and the proceeds of the Replacement Revolving Facility shall be used to repay the outstanding Refinanced Term Loans, (iv) if refinancing or replacing a Refinanced Revolving Facility, the Replacement Revolving Facility shall refinance or replace the entire Refinanced Revolving Facility and shall be drawn on the closing date thereof to the extent necessary to repay, and the proceeds of such draw under the Replacement Revolving Facility shall be used to the extent necessary to repay, the outstanding amounts under the Refinanced Revolving Facility and (v) the Replacement Revolving Facility shall be on terms and pursuant to documentation to be determined by the Borrower, the Administrative Agent and the Persons willing to provide such Replacement Revolving Facility; provided that to the extent such terms and documentation are not consistent with the applicable Refinanced Facility (other than with respect to pricing), they shall be reasonably satisfactory to the Administrative Agent.

In addition, notwithstanding the foregoing, this Agreement, including this Section 10.2, and the other Loan Documents may be amended (or amended and restated) pursuant to Section 2.23 to add any Incremental Facility to this Agreement and (a) to permit the extensions of credit from time to time outstanding thereunder and the accrued interest and fees in respect thereof to share ratably in the benefits of this Agreement (including the rights of the lenders under Incremental Facility to share ratably with the Revolving Facility in prepayments pursuant to Sections 2.11 and 2.12), the Guarantee and Collateral Agreement and the other Loan Documents with the Loans and the accrued interest and fees in respect thereof, (b) to include appropriately the Lenders holding such credit facility in any determination of the Required Lenders and (c) to amend other provision of the Loan Documents so that the Incremental Facility is appropriately incorporated (including this Section 10.2).



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Notwithstanding anything to the contrary contained in this Section 10.2, the Administrative Agent and the Borrower, in their sole discretion, may collectively amend, modify or supplement any provision of this Agreement or any other Loan Document to (i) amend, modify or supplement such provision or cure any ambiguity, omission, mistake, error, defect or inconsistency, so long as such amendment, modification or supplement does not directly and adversely affect the obligations of any Lender or Issuing Bank and (ii) permit additional Domestic Subsidiaries (excluding any U.S. Pass Through Foreign Holdcos) of the Borrower to guarantee the Obligations and/or provide Collateral therefor. Such amendments shall become effective without any further action or consent of any other party to any Loan Document. Upon the request of the Borrower, the Administrative Agent shall release any Guarantor from the Guarantee and Collateral Agreement if such Guarantor ceases to qualify as a Guarantor (in accordance with the definition of such term as provided herein).

Notwithstanding the foregoing, this Agreement may be amended in accordance with Section 2.27 (including as contemplated by an Extension Agreement in accordance with Section 2.27 evidencing Extension Permitted Amendments).

Notwithstanding the foregoing, Schedule 1.1(a) may be unilaterally amended by the Borrower to remove entries therefrom (but not, for the avoidance of doubt, to add entries thereto).

Section 10.3 Expenses; Indemnification.

(a) The Borrower shall pay (i) all reasonable, out-of-pocket costs and expenses of the Administrative Agent and its Affiliates (but limited, in the case of legal fees, charges, disbursements and expenses, to the actual reasonable and documented out-of-pocket fees, disbursements and other charges of one firm of outside counsel to all such Persons taken as a whole and, if necessary, of one local counsel in any relevant jurisdiction to all such Persons, taken as a whole and, solely in the case of an actual or potential conflict of interest, (x) one additional counsel to all affected Persons, taken as a whole, and (y) one additional local counsel to all affected Persons, taken as a whole, in each relevant jurisdiction), in connection with the syndication of the credit facilities provided for herein, the preparation and administration of the Loan Documents and any amendments, modifications or waivers thereof (whether or not the transactions contemplated in this Agreement or any other Loan Document shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all reasonable and documented out-of-pocket costs and expenses incurred by the Administrative Agent, the Issuing Bank or any Lender (but limited, in the case of legal fees, charges, disbursements and expenses, to the actual reasonable and documented out-of-pocket fees, disbursements and other charges of one firm of outside counsel to all such Persons taken as a whole and, if necessary, of one local counsel in any relevant jurisdiction to all such Persons, taken as a whole and, solely in the case of an actual or potential conflict of interest, (x) one additional counsel to all affected Persons, taken as a whole, and (y) one additional local counsel to all affected Persons, taken as a whole, in each relevant jurisdiction) in connection with the enforcement or protection of its rights in connection with this Agreement, including its rights under this Section, or in connection with the Loans made or any Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.

(b) The Borrower shall indemnify the Administrative Agent (and any sub-agent thereof), each Lender and the Issuing Bank, and each Related Party of any of the foregoing Persons (each



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such Person being called an "Indemnitee") against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (but limited, in the case of legal fees and expenses, to the reasonable and documented out-of-pocket fees, disbursements and other charges of one firm of outside counsel to all Indemnitees taken as a whole and, if reasonably necessary, one local counsel in any relevant jurisdiction to all Indemnitees, taken as a whole and, solely in the case of an actual or potential conflict of interest, (x) one additional counsel to all affected Indemnitees, taken as a whole, and (y) one additional local counsel to all affected Indemnitees, taken as a whole, in each relevant jurisdiction) incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Borrower or any other Loan Party arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence of Materials of Environmental Concern on any Properties, or any Environmental Liability related in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Borrower or any other Loan Party, and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from (x) the gross negligence or willful misconduct of such Indemnitee, (y) a claim brought by the Borrower or any other Loan Party against an Indemnitee for a material breach of such Indemnitee's obligations hereunder or under any other Loan Document, or (z) any dispute solely among any Indemnitees, the Administrative Agent, or any of their respective Related Parties (other than claims against Administrative Agent, the Arrangers, or any Person or entity acting in a similar capacity acting pursuant to this Agreement or in its capacity as such) to the extent such disputes did not arise from any act or omission of the Borrower or its Affiliates. Subsection (b) hereof shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

(c) To the extent that the Borrower fails to pay any amount required to be paid to the Administrative Agent, the Issuing Bank or the Swingline Lender under subsection (a) or (b) hereof, each Lender severally agrees to pay to the Administrative Agent, the Issuing Bank or the Swingline Lender, as the case may be, such Lender's pro rata share (in accordance with its respective Revolving Commitment (or Revolving Credit Exposure, as applicable) determined as of the time that the unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the unreimbursed expense or indemnified payment, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent, the Issuing Bank or the Swingline Lender in its capacity as such.

(d) To the extent permitted by applicable law, no party to this Agreement shall assert, and each party to this Agreement hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to actual or direct damages) arising out of, in connection with or as a result of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated therein, any Loan or any Letter of Credit or the use of proceeds thereof; provided that nothing in this clause (d) shall relieve the Borrower of any obligation it may have to indemnify any Indemnitee against special, indirect, consequential or punitive damages asserted against such Indemnitee by a third party.



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(e) The Borrower shall not, without the prior written consent of the applicable Indemnitee, effect any settlement of any actual or prospective claim, litigation, investigation, arbitration or proceeding in respect of which such Indemnitee is a party and indemnity has been sought under this Section by such Indemnitee, unless such settlement (i) includes an unconditional release of such Indemnitee in form and substance reasonably satisfactory to such Indemnitee from all liability on claims that are the subject matter of such indemnity and (ii) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any Indemnitee or any injunctive relief or other non-monetary remedy.

(f) All amounts due under this Section shall be payable not later than ten (10) days after a reasonably detailed written demand therefor.

Section 10.4 Successors and Assigns.

(a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (f) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

(b) Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitments, Loans and other Revolving Credit Exposure at the time owing to it); provided that any such assignment shall be subject to the following conditions:

(i) Minimum Amounts.

(A) in the case of an assignment of the entire remaining amount of the assigning Lender's Commitments, Loans and other Revolving Credit Exposure at the time owing to it or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and

(B) in any case not described in subsection (b)(i)(A) of this Section, the aggregate amount of the Commitment (which for this purpose includes Loans and Revolving Credit Exposure outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Loans and Revolving Credit Exposure of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Acceptance with



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respect to such assignment is delivered to the Administrative Agent or, if "Trade Date" is specified in the Assignment and Acceptance, as of the Trade Date) shall not be less than $5,000,000 with respect to Revolving Loans and in minimum increments of $1,000,000, unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed).

(ii) Proportionate Amounts. Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement with respect to the Loans, other Revolving Credit Exposure or the Commitments assigned.

(iii) Required Consents. No consent shall be required for any assignment except to the extent required by subsection (b)(i)(B) of this Section and, in addition:

(A) the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) an Event of Default has occurred and is continuing at the time of such assignment or (y) such assignment is to a Lender, an Affiliate of such Lender or an Approved Fund of such Lender;

(B) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required unless such assignment is to a Lender, an Affiliate of such Lender or an Approved Fund of such Lender; and

(C) the consent of the Issuing Bank (such consent not to be unreasonably withheld or delayed) shall be required for any assignment that increases the obligation of the assignee to participate in exposure under one or more Letters of Credit (whether or not then outstanding), and the consent of the Swingline Lender (such consent not to be unreasonably withheld or delayed) shall be required for any assignment in respect of the Revolving Commitments.

(iv) Assignment and Acceptance. The parties to each assignment shall deliver to the Administrative Agent (A) a duly executed Assignment and Acceptance, (B) a processing and recordation fee of $3,500, (C) an Administrative Questionnaire unless the assignee is already a Lender and (D) the documents required under Section 2.20(e).

(v) No Assignment to the certain Persons. No such assignment shall be made to (A) the Borrower or any of the Borrower's Affiliates or Subsidiaries, (B) to any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B) or (C) any Disqualified Assignee.

(vi) No Assignment to Natural Persons. No such assignment shall be made to a natural person.

(vii) Certain Additional Payments. In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative



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Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable pro rata share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent, the Issuing Bank, the Swingline Lender and each other Lender hereunder (and interest accrued thereon), and (y) acquire (and fund as appropriate) its full pro rata share of all Loans and participations in Letters of Credit and Swingline Loans. Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Acceptance, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Acceptance, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 2.18, 2.19, 2.20 and 10.3 with respect to facts and circumstances occurring prior to the effective date of such assignment; provided that, except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from such Lender's having been a Defaulting Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with subsection (d) of this Section. If the consent of the Borrower to an assignment is required hereunder (including a consent to an assignment which does not meet the minimum assignment thresholds specified above), the Borrower shall be deemed to have given its consent unless it shall object thereto by written notice to the Administrative Agent within ten (10) Business Days after notice thereof has actually been delivered by the assigning Lender (through the Administrative Agent) to the Borrower.

(c) The Administrative Agent, acting solely for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its offices in Charlotte, North Carolina a copy of each Assignment and Acceptance delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amount (and stated interest) of the Loans and Revolving Credit Exposure owing to, each Lender pursuant to the terms hereof from time to time (the "Register"). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. Information contained in the Register with respect to any Lender shall be available for inspection by such Lender at any reasonable time and from time to time upon reasonable prior notice; information contained in the Register shall also be available for inspection by the Borrower at any reasonable time and from time to time upon reasonable prior notice. In establishing and maintaining the Register, the Administrative Agent shall serve as the Borrower's agent solely for tax purposes and solely with respect to the actions described in this Section, and the Borrower hereby agrees that, to the extent Truist Bank serves in such capacity, Truist Bank and its officers, directors, employees, agents, sub-agents and affiliates shall constitute "Indemnitees".



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(d) Any Lender may at any time, without the consent of, or notice to, the Borrower, the Administrative Agent, the Swingline Lender or the Issuing Bank, sell participations to any Person (other than a natural person, the Borrower, any of the Borrower's Affiliates or Subsidiaries, or a Disqualified Assignee) (each, a "Participant") in all or a portion of such Lender's rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); provided that (i) such Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent, the Issuing Bank, the Swingline Lender and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement.

Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver with respect to the following to the extent affecting such Participant: (i) increase the Commitment of such Lender; (ii) reduce the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees payable hereunder; (iii) postpone the date fixed for any payment of any principal of, or interest on, any Loan or LC Disbursement or any fees hereunder or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date for the termination or reduction of any Commitment; (iv) change Section 2.21(b) or (c) in a manner that would alter the pro rata sharing of payments required thereby; (v) change any of the provisions of Section 10.2(b) or the definition of "Required Lenders" or any other provision hereof specifying the number or percentage of Lenders which are required to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder; (vi) release all or substantially all of the guarantors, or limit the liability of such guarantors, under any guaranty agreement guaranteeing any of the Obligations (except as expressly provided in Section 9.11); or (vii) release all or substantially all collateral (if any) securing any of the Obligations (except as expressly provided in Section 9.11). Subject to subsection (e) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.18, 2.19, and 2.20 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to subsection (b) of this Section; provided that such Participant agrees to be subject to Section 2.24 as though it were a Lender. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.7 as though it were a Lender; provided that such Participant agrees to be subject to Section 2.21 as though it were a Lender.

Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register in the United States on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under the Loan Documents (the "Participant Register"); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under the Code or United States Treasury Regulations, including, without limitation, Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive, absent manifest error, and such Lender shall treat each person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.



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(e) A Participant shall not be entitled to receive any greater payment under Sections 2.18 and 2.20 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower's prior written consent. A Participant shall not be entitled to the benefits of Section 2.20 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 2.20(e) and (f) as though it were a Lender.

(f) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including, without limitation, any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

(g) The Administrative Agent shall not be responsible or have any liability for, or have any duty to ascertain, inquire into, monitor or enforce, compliance with the provisions hereof relating to Disqualified Assignees. Without limiting the generality of the foregoing, the Administrative Agent shall not (i) be obligated to ascertain, monitor or inquire as to whether any Lender or Participant or prospective Lender or Participant is a Disqualified Assignee or (ii) have any liability with respect to or arising out of any assignment or participation of Loans or Commitments, or disclosure of confidential information, to any Disqualified Assignee.

Section 10.5 Governing Law; Jurisdiction; Consent to Service of Process.

(a) This Agreement and the other Loan Documents and any claims, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement or any other Loan Document (except, as to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be construed in accordance with and be governed by the law (without giving effect to the conflict of law principles thereof) of the State of New York.

(b) Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the United States District Court for the Southern District of New York, and of the Supreme Court of the State of New York sitting in New York County, Borough of Manhattan, and of any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any other Loan Document or the transactions contemplated hereby or thereby, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such District Court or New York state court or, to the extent permitted by applicable law, such appellate 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. Nothing in this Agreement or any other Loan Document shall affect any right that the Administrative Agent, the Issuing Bank or any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against any Loan Party or its properties in the court of any jurisdiction (i) for purposes of enforcing a judgment, (ii) in connection with exercising remedies against the Collateral in a jurisdiction in which such Collateral is located, or (iii) in connection with any pending bankruptcy, insolvency or similar proceeding in such jurisdiction.



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(c) The Borrower irrevocably and unconditionally waives any objection which it may now or hereafter have to the laying of venue of any such suit, action or proceeding described in subsection (b) of this Section and brought in any court referred to in subsection (b) of this Section. Each of the parties hereto irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

(d) Each party to this Agreement irrevocably consents to the service of process in the manner provided for notices in Section 10.1. Nothing in this Agreement or in any other Loan Document will affect the right of any party hereto to serve process in any other manner permitted by law.

Section 10.6 WAIVER OF JURY TRIAL. EACH PARTY HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT 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 THE FOREGOING WAIVER, AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

Section 10.7 Right of Set-off. In addition to any rights now or hereafter granted under applicable law and not by way of limitation of any such rights, each Lender and the Issuing Bank shall have the right, subject to the prior written consent of the Administrative Agent, at any time or from time to time upon the occurrence and during the continuance of an Event of Default, without prior notice to the Borrower, any such notice being expressly waived by the Borrower to the extent permitted by applicable law, to set off and apply against all deposits (general or special, time or demand, provisional or final), in any currency, of the Borrower at any time held or other obligations at any time owing by such Lender and the Issuing Bank to or for the credit or the account of the Borrower against any and all Obligations held by such Lender or the Issuing Bank, as the case may be, irrespective of whether such Lender or the Issuing Bank shall have made demand hereunder, to the extent such Obligations are due and payable; provided that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 2.26(b) and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent, the Issuing Banks, and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff. Each Lender and the Issuing Bank agrees promptly to notify the Administrative Agent and the Borrower after any such set-off and any application made by such Lender or the Issuing Bank, as the case may be; provided that the failure to give such notice shall not affect the validity of such set-off and application. Each Lender and the Issuing Bank agrees to apply all amounts collected from any such set-off to the Obligations before applying such amounts to any other Indebtedness or other obligations owed by the Borrower and any of its Subsidiaries to such Lender or the Issuing Bank.



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Section 10.8 Counterparts; Integration. This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. This Agreement, the Fee Letter, the other Loan Documents, and any separate letter agreements relating to any fees payable to the Administrative Agent and its Affiliates constitute the entire agreement among the parties hereto and thereto and their affiliates regarding the subject matters hereof and thereof and supersede all prior agreements and understandings, oral or written, regarding such subject matters. Delivery of an executed counterpart to this Agreement or any other Loan Document by facsimile transmission or by electronic mail in pdf format shall be as effective as delivery of a manually executed counterpart hereof.

Section 10.9 Survival. All covenants, agreements, representations and warranties made by the Borrower herein and by the Borrower and the other Loan Parties in the certificates, reports, notices or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement and the other Loan Documents and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, the Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. The provisions of Sections 2.18, 2.19, 2.20, and 10.3, Article IX and the last sentence of the definition of Applicable Margin and Applicable Percentage shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments or the termination of this Agreement or any provision hereof.

Section 10.10 Severability. Any provision of this Agreement or any other Loan Document held to be illegal, invalid or unenforceable in any jurisdiction, shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity or unenforceability without affecting the legality, validity or enforceability of the remaining provisions hereof or thereof; and the illegality, invalidity or unenforceability of a particular provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

Section 10.11 Confidentiality. Each of the Administrative Agent, the Issuing Bank and the Lenders agrees to take normal and reasonable precautions to maintain the confidentiality of any information relating to the Borrower or any of its Subsidiaries or any of their respective businesses, to the extent designated in writing as confidential and provided to it by the Borrower or any of its Subsidiaries, other than any such information that is available to the Administrative Agent, the Issuing Bank or any Lender on a non-confidential basis prior to disclosure by the Borrower or any of its Subsidiaries, except that such information may be disclosed (i) to any Related Party of the Administrative Agent, the Issuing Bank or any such Lender including, without limitation, accountants, legal counsel and other advisors who are informed of the confidential nature of such information and have agreed to receive such information subject to the terms of this Section or are otherwise bound by similar confidentiality obligations, (ii) to the extent required by applicable laws or regulations or by any subpoena or similar legal process (in which case such the Administrative Agent, the Issuing Bank, or the Lender, as applicable, agrees to inform the Borrower promptly thereof to the extent not prohibited by law, rule or regulation), (iii) to the extent requested by any regulatory agency or authority purporting to have jurisdiction over it (including any self-regulatory authority such as the National Association of Insurance Commissioners), (iv) to the extent that such information becomes publicly available other than as a result of a breach of this Section, or which becomes available to the Administrative Agent, the Issuing Bank, any Lender or any Related



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Party of any of the foregoing on a non-confidential basis from a source other than the Borrower or any of its Subsidiaries, (v) in connection with the exercise of any remedy hereunder or under any other Loan Documents or any suit, action or proceeding relating to this Agreement or any other Loan Documents or the enforcement of rights hereunder or thereunder, (vi) subject to execution by such Person of an agreement containing provisions substantially the same as those of this Section, to (A) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement, or (B) any actual or prospective party (or its Related Parties) to any swap or derivative or other transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder, (vii) to any rating agency, (viii) to the CUSIP Service Bureau or any similar organization, or (ix) with the consent of the Borrower. Any Person required to maintain the confidentiality of any information as provided for in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such information as such Person would accord its own confidential information. In the event of any conflict between the terms of this Section and those of any other Contractual Obligation entered into with any Loan Party (whether or not a Loan Document), the terms of this Section shall govern. Each Arranger and each Co-Documentation Agent may, at its own expense, place customary tombstone announcements and advertisements or otherwise publicize its engagement hereunder (which may include the reproduction of any Loan Party's name and logo and other publicly available information) in financial and other newspapers and journals and marketing materials describing its services hereunder. Further, each Arranger and each Co-Documentation Agent may provide to market data collectors, such as league table, or other service providers to the lending industry, information regarding the closing date, size, type, purpose of, and parties to, the credit facilities established hereunder.

Section 10.12 Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which may be treated as interest on such Loan under applicable law (collectively, the "Charges"), shall exceed the maximum lawful rate of interest (the "Maximum Rate") which may be contracted for, charged, taken, received or reserved by a Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Rate to the date of repayment (to the extent permitted by applicable law), shall have been received by such Lender.

Section 10.13 Waiver of Effect of Corporate Seal. The Borrower represents and warrants that neither it nor any other Loan Party is required to affix its corporate seal to this Agreement or any other Loan Document pursuant to any Requirement of Law, agrees that this Agreement is delivered by the Borrower under seal and waives any shortening of the statute of limitations that may result from not affixing the corporate seal to this Agreement or such other Loan Documents.

Section 10.14 Patriot Act. The Administrative Agent and each Lender hereby notifies the Loan Parties that, (a) pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies each Loan Party, which information includes the name and address of such Loan Party and other information that will allow such Lender or the Administrative Agent, as applicable, to identify such Loan Party in accordance with the Patriot Act, and (b) pursuant to the Beneficial Ownership Regulation, it is required to obtain a Beneficial Ownership Certification.



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Section 10.15 No Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower and each other Loan Party acknowledges and agrees and acknowledges its Affiliates' understanding that (i) (A) the services regarding this Agreement provided by the Administrative Agent and/or the Lenders are arm's-length commercial transactions between the Borrower, each other Loan Party and their respective Affiliates, on the one hand, and the Administrative Agent and the Lenders, on the other hand, (B) each of the Borrower and the other Loan Parties have consulted their own legal, accounting, regulatory and tax advisors to the extent they have deemed appropriate, and (C) the Borrower and each other Loan Party is capable of evaluating and understanding, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) each of the Administrative Agent and the Lenders is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrower, any other Loan Party or any of their respective Affiliates, or any other Person, and (B) neither the Administrative Agent nor any Lender has any obligation to the Borrower, any other Loan Party or any of their Affiliates with respect to the transaction contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Administrative Agent, the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Borrower, the other Loan Parties and their respective Affiliates, and each of the Administrative Agent and the Lenders has no obligation to disclose any of such interests to the Borrower, any other Loan Party or any of their respective Affiliates. To the fullest extent permitted by law, each of the Borrower and the other Loan Parties hereby waives and releases any claims that it may have against the Administrative Agent or any Lender with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

Section 10.16 Location of Closing. Each Lender and the Issuing Bank acknowledges and agrees that it has delivered, with the intent to be bound, its executed counterparts of this Agreement to the Administrative Agent in New York. The Borrower acknowledges and agrees that it has delivered, with the intent to be bound, its executed counterparts of this Agreement and each other Loan Document, together with all other documents, instruments, opinions, certificates and other items required under Section 3.1, to the Administrative Agent in New York. All parties agree that the closing of the transactions contemplated by this Agreement has occurred in New York.

Section 10.17 Electronic Signatures. The words "execution," "execute," "signed," "signature," and words of like import in or related to this Agreement or any other document to be signed in connection with this Agreement and the transactions contemplated hereby shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; provided that notwithstanding anything contained herein to the contrary the Administrative Agent is under no obligation to agree to accept electronic signatures in any form or in any format unless expressly agreed to by the Administrative Agent pursuant to procedures approved by it.



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Section 10.18 Acknowledgement and Consent to Bail-In of Affected Financial Institutions. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

(a) the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an Affected Financial Institution; and

(b) the effects of any Bail-In Action on any such liability, including, if applicable (i) a reduction in full or in part or cancellation of any such liability, (ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document or (iii) the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of the applicable Resolution Authority.

Section 10.19 Certain ERISA Matters.

(a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that at least one of the following is and will be true:

(i) such Lender is not using "plan assets" (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments or this Agreement,

(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement,

(iii) (A) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement satisfies the requirements of subsections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection



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(a) of Part I of PTE 84-14 are satisfied with respect to such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement, or

(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

(b) In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) a Lender has provided another representation, warranty and covenant in accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that the Administrative Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender's entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto).

Section 10.20 Acknowledgement Regarding Any Supported QFCs. To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Hedging Obligations or any other agreement or instrument that is a QFC (such support, "QFC Credit Support" and each such QFC a "Supported QFC"), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "U.S. Special Resolution Regimes") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

(a) In the event a Covered Entity that is party to a Supported QFC (each, a "Covered Party") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.



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(b) As used in this Section 10.20, the following terms have the following meanings:

"BHC Act Affiliate" of a party means an "affiliate" (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

"Covered Entity" means any of the following:

(i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §252.82(b);

(ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §47.3(b); or

(iii) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §382.2(b).

"Default Right" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§252.81, 47.2 or 382.1, as applicable.

"QFC" has the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

[Remainder of page intentionally blank; signature pages follow.]



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ANNEX B-1

AMENDED SCHEDULES

[Please See Attached]


SCHEDULE I



| | | | | | | | | | | |
| |
| Applicable Margin and Applicable Percentage |
| |
| |
| | | | | | |
| Pricing | | Consolidated | | Applicable | | Applicable | | Applicable | | Applicable |
| Level | | Leverage Ratio | | Margin for | | Margin for | | Percentage for | | Percentage |
| | | | | SOFR Loans | | Base Rate | | Commitment | | for Letter of |
| | | | | | | Loans | | Fee | | Credit Fees |
| | | | | | | | | | | |
| | | | | | | | | | | |
| I | | Greater than or equal to 2.00:1.00 | | 1.75% | | 0.75% | | 0.25% | | 1.75% |
| | | | | per annum | | per annum | | per annum | | per annum |
| II | | Less than 2.00:1.00 but greater than or equal to 1.50:1.00 | | 1.50% | | 0.50% | | 0.20% | | 1.50% |
| | | | | per annum | | per annum | | per annum | | per annum |
| III | | Less than 1.50:1.00 but greater than or equal to 1.00:1.00 | | 1.25% | | 0.25% | | 0.175% | | 1.25% |
| | | | | per annum | | per annum | | per annum | | per annum |
| IV | | Less than 1.00:1.00 | | 1.00% | | 0.00% | | 0.15% | | 1.00% |
| | | | | per annum | | per annum | | per annum | | per annum |


SCHEDULE II



| | | | | |
| Commitment Amounts | |
| Lender | | Revolving Commitment | |
| TRUIST BANK | | $ | 125,000,000 | |
| CITIZENS BANK, NATIONAL ASSOCIATION | | $ | 100,000,000 | |
| BANK OF AMERICA, N.A. | | $ | 100,000,000 | |
| BARCLAYS BANK PLC | | $ | 100,000,000 | |
| PNC BANK, NATIONAL ASSOCIATION | | $ | 100,000,000 | |
| SILICON VALLEY BANK | | $ | 100,000,000 | |
| FIFTH THIRD BANK, NATIONAL ASSOCIATION | | $ | 75,000,000 | |
| HSBC BANK USA, NATIONAL ASSOCIATION | | $ | 50,000,000 | |
| Total | | $ | 750,000,000 | |


ANNEX B-2

AMENDED EXHIBITS

[Please See Attached]


EXHIBIT D

[FORM OF] NOTICE OF REVOLVING BORROWING

Date: __________, 20__



| To: | TRUIST BANK, as Administrative Agent |
| | 303 Peachtree Street, 25th Floor |
| | Mail Code 7662 |
| | Atlanta, Georgia 30308 |
| | Attention: Agency Services |
| | Telecopy Number: (801) 453-4108 |
| | E-mail: Agency.Services@suntrust.com |

Ladies and Gentlemen:

Reference is made to that certain Credit Agreement, dated as of May 1, 2020 (as amended by that certain First Amendment to Credit Agreement, dated as of December 10, 2021, as amended by that certain Second Amendment to Credit Agreement, dated as of October 5, 2022, and as the same may be further amended, restated, supplemented or otherwise modified from time to time in accordance with the terms thereof, the "Credit Agreement"; the terms defined therein being used herein as therein defined), by and among TERADYNE, INC., a Massachusetts corporation (the "Borrower"), the several banks and other financial institutions and lenders from time to time party thereto (the "Lenders"), and TRUIST BANK, in its capacity as administrative agent for the Lenders (the "Administrative Agent"), as Issuing Bank and as Swingline Lender.

The undersigned Borrower hereby requests on _____________ (a Business Day):



| | ☐ | A Revolving Borrowing of SOFR Loans in the amount of $___________________ with an Interest Period of [1][3][6] months.12 |



| | ☐ | A Revolving Borrowing of Base Rate Loans in the amount of $____________________.34 |

The Borrower requests that the proceeds of such Revolving Borrowing be deposited into the following account:



| | | | | | | |
| | | Account No.: | | | | |
| | | Account Name: | | | | |
| | | Bank: | | | | |
| | | Bank Address: | | | | |
| | | ABA Number: | | | | |

The Borrower hereby represents and warrants that the conditions specified in Section 3.2 of the Credit Agreement shall be satisfied on the date of the proposed Borrowing.



| 1 | For SOFR Borrowings, notice due prior to 12:00 p.m. three (3) U.S. Government Securities Business Days prior to requested date. |
| 2 | The aggregate principal amount of each SOFR Borrowing shall not be less than $1,000,000 or a larger multiple of $1,000,000. |
| 3 | For Base Rate Borrowings, notice due prior to 11:00 a.m. on the requested date. |
| 4 | The aggregate principal amount of each Base Rate Borrowing shall not be less than $1,000,000 or a larger multiple of $250,000 (Base Rate Loans made pursuant to Section 2.4 or Section 2.22(d) may be made in lesser amounts as provided therein). |



[Signature Page Follows.]

| | | |
| TERADYNE, INC. |
| | |
| By: | | |
| | | |
| Name: | | |
| Title: | | |



[Signature Page to Notice of Revolving Borrowing]


EXHIBIT F

[FORM OF] NOTICE OF CONVERSION/CONTINUATION

Date: __________, 20__



| To: | TRUIST BANK, as Administrative Agent |
| | 303 Peachtree Street, 25th Floor |
| | Mail Code 7662 |
| | Atlanta, Georgia 30308 |
| | Attention: Agency Services |
| | Telecopy Number: (801) 453-4108 |
| | E-mail: Agency.Services@suntrust.com |

Ladies and Gentlemen:

Reference is made to that certain Credit Agreement, dated as of May 1, 2020 (as amended by that certain First Amendment to Credit Agreement, dated as of December 10, 2021, as amended by that certain Second Amendment to Credit Agreement, dated as of October 5, 2022, and as the same may be further amended, restated, supplemented or otherwise modified from time to time in accordance with the terms thereof, the "Credit Agreement"; the terms defined therein being used herein as therein defined), by and among TERADYNE, INC., a Massachusetts corporation (the "Borrower"), the several banks and other financial institutions and lenders from time to time party thereto (the "Lenders"), and TRUIST BANK, in its capacity as administrative agent for the Lenders (the "Administrative Agent"), as Issuing Bank and as Swingline Lender.

The undersigned Borrower hereby requests:

1. A conversion of certain Loans as specified below:



| | ☐ | A conversion of $ of Revolving Loans into SOFR Loans with an Interest Period of [1][3][6] months on (a Business Day).1 |



| | ☐ | A conversion of $ of Revolving Loans into Base Rate Loans on (a Business Day).2 |

2. A continuation of certain Loans as specified below:



| | ☐ | A continuation of $ of SOFR Loans with an Interest Period of [1][3][6] months on (a Business Day).3 |



| 1 | Notice due prior to 12:00 p.m. three (3) U.S. Government Securities Business Days prior to requested date. |
| 2 | Notice due prior to 11:00 a.m. one (1) Business Day prior to requested date. |
| 3 | Notice due prior to 12:00 p.m. three (3) U.S. Government Securities Business Days prior to requested date. |



[Signature Page Follows.]

| | | |
| TERADYNE, INC. |
| | |
| By: | | |
| | | |
| Name: | | |
| Title: | | |



[Signature Page to Notice of Conversion/Continuation]

Exhibit 31.1

CERTIFICATIONS

I, Gregory S. Smith, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Teradyne, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 5, 2023



| | | |
| By: | | /s/ GREGORY S. SMITH |
| | | Gregory S. Smith |
| | | Chief Executive Officer |

Exhibit 31.2

CERTIFICATIONS

I, Sanjay Mehta, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Teradyne, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 5, 2023



| | | |
| By: | | /s/ SANJAY MEHTA |
| | | Sanjay Mehta |
| | | Chief Financial Officer |

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Teradyne, Inc. (the "Company") on Form 10-Q for the period ended April 2, 2023 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Gregory S. Smith, Chief Executive Officer of the Company, certify pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.



| |
| /s/ GREGORY S. SMITH |
| Gregory S. Smith |
| Chief Executive Officer |
| May 5, 2023 |



Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Teradyne, Inc. (the "Company") on Form 10-Q for the period ended April 2, 2023 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Sanjay Mehta, Chief Financial Officer of the Company, certify pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.



| |
| /s/ SANJAY MEHTA |
| Sanjay Mehta |
| Chief Financial Officer |
| May 5, 2023 |