Accelerated Share Repurchase Agreement



 Exhibit 10.1 

 
 



 
 June 14, 2012 
 Flowserve Corporation 
 5215 N. O’Connor Blvd., Suite 2300 

Irving, Texas 75039 
 Ladies and Gentlemen:

 The purpose of this letter agreement (this “Confirmation”) is to confirm the terms and conditions of the
Transaction entered into between J.P. Morgan Securities LLC (“JPMS”), as agent for and an affiliate of JPMorgan Chase Bank, National Association, London Branch (the “Seller”), and Flowserve Corporation, a New York
corporation (the “Purchaser”), on the Trade Date specified below (the “Transaction”). This Confirmation constitutes a “Confirmation” as referred to in the Agreement specified below. 

This Confirmation evidences a complete and binding agreement between the Seller and the Purchaser as to the terms of the Transaction to
which this Confirmation relates. This Confirmation shall supplement, form a part of, and be subject to an agreement in the form of the 2002 ISDA Master Agreement (the “Agreement”) as if the Seller and the Purchaser had executed an
agreement in such form (but without any Schedule except for the election of the laws of the State of New York as the governing law but without regard to its choice of law provisions), on the Trade Date. In the event of any inconsistency between
provisions of the Agreement and this Confirmation, this Confirmation will prevail for the purpose of the Transaction to which this Confirmation relates. The parties hereby agree that no Transaction other than the Transaction to which this
Confirmation relates shall be governed by the Agreement. 
 ARTICLE 1 

DEFINITIONS 
 Section 1.01. Definitions. (a) As used in this Confirmation, the following terms shall have the following meanings: 

“10b-18 VWAP” means, (A) for any Trading Day described in clause (x) of the definition of Trading Day
hereunder, the volume-weighted average price at which the Common Stock trades as reported in the composite transactions for United States exchanges and quotation systems, during the regular trading session for the Exchange (or, if applicable, the
Successor Exchange on which the Common Stock has been listed in accordance with Section 7.01(c)), on such Trading Day, excluding (i) trades that do not settle regular way, (ii) opening (regular way) reported trades in the consolidated
system on such Trading Day, (iii) trades that occur in the last ten minutes before the scheduled close of trading on the Exchange on such Trading Day and ten minutes before the scheduled close of the primary trading in the market where the
trade is effected, and (iv) trades on such Trading Day that do not satisfy the requirements of Rule 10b-18(b)(3), as determined in good faith by the Calculation Agent, or (B) for any Trading Day that is described in clause (y) of the
definition of Trading Day hereunder, an amount determined in good faith by the Calculation Agent as 10b-18 VWAP. The Purchaser acknowledges that the Calculation Agent may refer to the Bloomberg Page “FLS US <Equity> AQR SEC” (or any
successor thereto), in its judgment, for such Trading Day to determine the 10b-18 VWAP. 
 “Additional Termination
Event” has the meaning set forth in Section 7.01. 
 JPMorgan Chase Bank, National Association 

Organised under the laws of the United States as a National Banking Association. 

Main Office 1111 Polaris Parkway, Columbus, Ohio 43271 
 Registered as a branch in England & Wales branch No. BR000746. 

Registered Branch Office 125 London Wall, London EC2Y 5AJ 
 Authorised and regulated by the Financial Services Authority 







 “Affected Party” has the meaning set forth in Section 14 of the
Agreement. 
 “Affected Transaction” has the meaning set forth in Section 14 of the Agreement. 

“Affiliated Purchaser” means any “affiliated purchaser” (as such term is defined in Rule 10b-18) of the
Purchaser. 
 “Agreement” has the meaning set forth in the second paragraph of this Confirmation. 

“Alternative Termination Delivery Unit” means (i) in the case of a Termination Event (other than following
consummation of a Merger Event or Nationalization) or Event of Default (as defined in the Agreement), one share of Common Stock and (ii) in the case of consummation of a Merger Event or Nationalization, a unit consisting of the number or amount
of each type of property received by a holder of one share of Common Stock in such Merger Event or Nationalization; provided that if such Merger Event involves a choice of consideration to be received by holders of the Common Stock, an
Alternative Termination Delivery Unit shall be deemed to include the amount of cash received by a holder who had elected to receive the maximum possible amount of cash as consideration for his shares. 

“Bankruptcy Code” has the meaning set forth in Section 9.08. 

“Business Day” means any day on which the Exchange is open for trading. 

“Calculation Agent” means JPMorgan Chase Bank, National Association. 

“Cash Distribution” has the meaning set forth in Section 7.01(f). 

“Cash Distribution Amount” means, for any “Reference Period” set forth in the Pricing Supplement, the
amount specified in the Pricing Supplement for such Reference Period. 
 “Cash Settlement Amount” means an
amount in cash equal to (i) the absolute value of the Settlement Number multiplied by (ii) the dollar volume weighted average price per share at which Seller or its designated affiliate executes purchases of shares of Common Stock
during the Cash Settlement Purchase Period in respect of its hedge position for the Transaction. 
 “Cash Settlement
Purchase Period” means the period during which the Seller purchases shares of Common Stock to unwind its hedge position following the Valuation Completion Date, which shall be determined in a commercially reasonable manner and which shall
not exceed 30 Trading Days; provided that the Seller may extend the Cash Settlement Purchase Period as it shall determine in good faith and in a commercially reasonable manner to be appropriate in light of legal or regulatory considerations.

 “Common Stock” has the meaning set forth in Section 2.01. 

“Communications Procedures” has the meaning set forth in Annex C hereto. 

“Confirmation” has the meaning set forth in the first paragraph of this letter agreement. 

“Contract Period” means the period commencing on and including the Trade Date and ending on and including the date all
payments or deliveries of shares of Common Stock pursuant to Section 3.01 or Section 7.03 have been made. 

“Default Notice Day” has the meaning set forth in Section 7.02(a). 

“De-Listing” has the meaning set forth in Section 7.01(c). 

“Discount” means the amount specified as such in the Pricing Supplement. 

  
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 “Distribution Termination Event” has the meaning set forth in
Section 7.01(f). 
 “Early Termination Date” has the meaning set forth in Section 14 of the
Agreement. 
 “Event of Default” has the meaning set forth in Section 14 of the Agreement. 

“Exchange” means the New York Stock Exchange. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. 

“Expiration Date” means the 124th Trading Day following the Trade Date. 

“Extraordinary Cash Dividend” means the per share cash dividend or distribution, or a portion thereof, declared by the
Purchaser on shares of Common Stock that is classified by the board of directors of the Purchaser as an “extraordinary” dividend. 
 “Floor Price” has the meaning specified as such in the Pricing Supplement. 
 “Indemnified Person” has the meaning set forth in Section 9.02. 
 “Indemnifying Party” has the meaning set forth in Section 9.02. 
 “Initial Delivery Percentage” means the percentage specified as such in the Pricing Supplement. 
 “Initial Number of Shares” means the number of shares of Common Stock, rounded down to the nearest integer, equal to the product of (i) the Initial Delivery Percentage and
(ii) the Purchase Price divided by the Initial Share Price. 
 “Initial Settlement Date” has the
meaning set forth in Section 2.02. 
 “Initial Share Price” means $106.16. 

“Merger Event” has the meaning set forth in Section 7.01(d). 

“Nationalization” has the meaning set forth in Section 7.01(e). 

“New York Banking Day” means any day other than a Saturday, a Sunday, a legal holiday or a day on which banking
institutions are authorized or required by law or regulation to close in The City of New York. 
 “Number of
Shares” has the meaning set forth in Section 2.01. 
 “Obligations” has the meaning set forth in
Section 9.02. 
 “Ordinary Cash Dividend” has the meaning set forth in Section 8.01(b). 

“Pricing Supplement” means the Pricing Supplement attached hereto as Annex D. 

“Private Placement Agreement” has the meaning set forth in Annex A hereto. 

“Private Placement Price” means the private placement value of a share of Common Stock as determined in accordance with
Annex A hereto. 
 “Private Placement Shares” has the meaning set forth in Section 3.01(b). 

  
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 “Private Placement Procedures” has the meaning set forth in Annex A hereto.

 “Private Securities” has the meaning set forth in Annex A hereto. 

“Purchase Price” has the meaning set forth in Section 2.01. 

“Purchaser” has the meaning set forth in the first paragraph of this Confirmation. 

“Purchaser Share Cap” means, for any date, (i) 9,000,000 shares of Common Stock, minus (ii) the net
number of shares of Common Stock delivered by the Purchaser to the Seller in respect of this Transaction on or prior to such date, plus (iii) the net number of shares of Common Stock delivered by the Seller to the Purchaser in respect of
this Transaction on or prior to such date, subject to appropriate adjustments pursuant to Section 8.02(x). 

“Reference Period” means, for any corresponding “Cash Distribution Amount” specified in the Pricing
Supplement, the period specified in the Pricing Supplement for such Cash Distribution Amount. 
 “Registered
Shares” has the meaning set forth in Section 3.01(b). 
 “Registered Shares Fee” means the amount
specified as such in the Pricing Supplement. 
 “Registration Procedures” has the meaning set forth in Annex B
hereto. 
 “Regulation M” means Regulation M under the Exchange Act (or any successor rule thereto).

 “Rule 10b-18” means Rule 10b-18 promulgated under the Exchange Act (or any successor rule thereto).

 “SEC” means the Securities and Exchange Commission. 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 “Seller” has the meaning set forth in the first paragraph hereto. 

“Seller Share Cap” means, for any date, (i) 27,000,000 shares of Common Stock minus (ii) the number of
shares of Common Stock delivered by the Seller to the Purchaser in respect of this Transaction on or prior to such date, subject to appropriate adjustments pursuant to Section 8.02(x). 

“Seller Termination Share Purchase Period” has the meaning set forth in Section 7.03. 

“Settlement Date” means (i) if Section 3.01(a)(i) is applicable, the fourth Business Day following the
Valuation Completion Date; (ii) if settlement in cash is applicable pursuant to Section 3.01(d), the date of such cash payment determined in accordance with Section 3.01(d)(ii); (iii) if Section 3.01(e) is applicable, the
Business Day immediately following the day on which the Seller informs the Purchaser, pursuant to Annex A hereto, of the number of Private Placement Shares required to be delivered; and (iv) if Section 3.01(f) is applicable, each of the
dates so advised by the Seller pursuant to Annex B hereto. 
 “Settlement Number” means a number of shares of
Common Stock, rounded down to the nearest integer and which number may be negative, equal to (i) the Valuation Number minus (ii) the Initial Number of Shares. 
 “Settlement Shares” has the meaning set forth in Section 3.01(b). 
 “Share De-listing Event” has the meaning set forth in Section 7.01(c). 
 “Successor Exchange” has the meaning set forth in Section 7.01(c). 

  
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 “Termination Amount” has the meaning set forth in Section 7.02(a).

 “Termination Event” has the meaning set forth in Section 14 of the Agreement. 

“Termination Price” means the value of an Alternative Termination Delivery Unit to the Seller (determined as provided in
Annex A hereto). 
 “Termination Settlement Date” has the meaning set forth in Section 7.03(a).

 “Trade Date” has the meaning set forth in Section 2.01. 

“Trading Day” means (x) any day (i) other than a Saturday, a Sunday or a day on which the Exchange is not open
for business, (ii) during which trading of any securities of the Purchaser on any national securities exchange has not been suspended, (iii) during which there has not been, in the Seller’s good faith reasonable judgment, a material
limitation in the trading of Common Stock or any options contract or futures contract related to the Common Stock, and (iv) during which there has been no suspension pursuant to Section 4.02 of this Confirmation, or (y) any day that,
notwithstanding the occurrence of events contemplated in clauses (ii), (iii) and (iv) of this definition, the Seller determines in its good faith reasonable discretion to be a Trading Day. 

“Transaction” has the meaning set forth in the first paragraph of this Confirmation. 

“Valuation Completion Date” has the meaning set forth in the Pricing Supplement. 

“Valuation Number” means (i) the Purchase Price divided by (ii) the arithmetic average of the 10b-18
VWAPs for all of the Trading Days in the Valuation Period minus the Discount, as determined by the Calculation Agent in its sole judgment; provided that if the result of the calculation in clause (ii) is equal to or less than the
Floor Price, then the Valuation Number shall be the Purchase Price divided by the Floor Price. 
 “Valuation
Period” means the period of consecutive Trading Days commencing on and including the first Trading Day following the Trade Date and ending on and including the Valuation Completion Date. 

ARTICLE 2 

PURCHASE OF THE STOCK 

Section 2.01. Purchase of the Stock. Subject to the terms and conditions of this Confirmation, the Purchaser agrees to
purchase from the Seller, and the Seller agrees to sell to the Purchaser, on June 14, 2012 or on such other Business Day as the Purchaser and the Seller shall otherwise agree (the “Trade Date”), a number of shares (the
“Number of Shares”) of the Purchaser’s common stock, par value $1.25 per share (“Common Stock”), for a purchase price equal to $300,000,000 (the “Purchase Price”). The Number of Shares
purchased by the Purchaser hereunder shall be determined in accordance with the terms of this Confirmation. 

Section 2.02. Delivery and Payments. On the first Business Day immediately following the Trade Date (such day, the
“Initial Settlement Date”), the Seller shall deliver the Initial Number of Shares to the Purchaser, upon payment by the Purchaser of an amount equal to the Purchase Price to the Seller; provided that if the Seller is unable
to borrow or otherwise acquire a number of shares of Common Stock equal to the Initial Number of Shares for delivery to the Purchaser on the Initial Settlement Date, the Initial Number of Shares shall be reduced to such number of shares of Common
Stock as the Seller is able to borrow or otherwise acquire and any amounts payable by the Purchaser pursuant to this Article 2 shall be reduced correspondingly. Such delivery and payment shall be effected in accordance with the Seller’s
customary procedures. 
 Section 2.03. Conditions to Seller’s Obligations. The Seller’s obligation to
deliver the Initial Number of Shares to the Purchaser on the Initial Settlement Date is subject to the condition that the representations and warranties made by the Purchaser in the Agreement shall be true and correct as of the date hereof and the
Initial Settlement Date. 

  
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 ARTICLE 3 
 SUBSEQUENT PAYMENTS OR SHARE DELIVERIES 
 Section 3.01. Subsequent Payments or Share Deliveries. (a) (i) If the Settlement Number is greater than zero, the Seller shall deliver to the Purchaser a number of shares of Common
Stock equal to the Settlement Number on the Settlement Date in accordance with the Seller’s customary procedures; and 
 (ii) if the Settlement Number is less than zero, the Purchaser shall, at its option subject to the terms of this Confirmation, make a payment of cash or delivery of shares of Common Stock to the Seller in
respect of the absolute value of the Settlement Number, as provided in this Section 3.01. 
 (b) Subject to
Section 3.01(c), payment of the absolute value of the Settlement Number by the Purchaser to the Seller shall be in cash or validly issued shares of Common Stock (“Settlement Shares”), and if in shares of Common Stock, then in
shares to be sold in a private placement (“Private Placement Shares”) or registered shares (“Registered Shares”), as the Purchaser shall elect in its sole discretion subject to the terms of this Confirmation, which
binding election shall be made by written notice to the Seller no later than the close of business on the second Business Day following the Valuation Completion Date; provided that by making an election to deliver Settlement Shares pursuant
to this Section 3.01(b), the Purchaser shall be deemed to make the representations and warranties in Section 5.01 as if made on the date of the Purchaser’s election; and provided further that if the Purchaser fails to make such
election by such date, the Purchaser shall be deemed to have elected settlement in cash. 
 (c) (i) Any election by the
Purchaser to deliver the absolute value of the Settlement Number in Settlement Shares pursuant to clause (b) of this Section 3.01 shall not be valid, and settlement in cash shall apply, if the representations and warranties made by the
Purchaser to the Seller in Section 5.01 are not true and correct in all material respects as of the date the Purchaser makes such election. 
 (ii) Notwithstanding any election by the Purchaser to make payment of the absolute value of the Settlement Number in Settlement Shares, at any time prior to the time the Seller (or any affiliate of the
Seller) has contracted to resell all or any portion of such Settlement Shares, the Purchaser may elect to deliver in lieu of such Settlement Shares an amount in cash equal to the absolute value of the Settlement Number with respect to any Settlement
Shares not yet contracted to be sold, in which case the provisions of Section 3.01(d) shall apply with respect to such amount; provided that any such election by the Purchaser pursuant to this clause (ii) shall not be valid and
settlement in Settlement Shares shall continue to apply if the representations and warranties made by the Purchaser to the Seller in Section 5.01(a) are not true and correct in all material respects as of the date the Purchaser makes such
election. 
 (iii) If the Purchaser elects to make payment of the absolute value of the Settlement Number
(A) in Private Placement Shares and fails to comply with the requirements set forth in Section 3.01(e) or Annex A hereto or takes any action that would make unavailable either (1) the exemption set forth in Section 4(2) of the
Securities Act for the sale of any Private Placement Shares by the Purchaser to the Seller or (2) an exemption from the registration requirements of the Securities Act reasonably acceptable to the Seller for resales of Private Placement Shares
by the Seller, or (B) in Registered Shares and fails to comply with the requirements set forth in Section 3.01(f) or Annex B hereto; then in the case of either (A) or (B), the Purchaser shall deliver in lieu of any Private Placement
Shares or Registered Shares an amount in cash equal to the absolute value of the Settlement Number with respect to any Settlement Shares not yet sold, in which case the provisions of Section 3.01(d) shall apply with respect to such amount.

 (d) (i) If the Purchaser elects to pay the absolute value of the Settlement Number in cash, if settlement in cash is
otherwise applicable in accordance with this Section 3.01, or if the Purchaser elects to make payment of the absolute value of the Settlement Number in Private Placement Shares pursuant to Section 3.01(e), then the Calculation Agent shall
determine an amount in cash equal to the Cash Settlement Amount. 
 (ii) If cash settlement is applicable,
payment of the Cash Settlement Amount shall be made by wire transfer of immediately available U.S. dollar funds on the first Business Day immediately following the date of notification by the Seller to the Purchaser of the Cash Settlement Amount or
such later Business Day as determined by the Seller in its sole discretion. 

  
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 (e) If the Purchaser elects to make payment of the absolute value of the Settlement Number
in Private Placement Shares, then on the Settlement Date, the Purchaser shall deliver to the Seller a number of Settlement Shares equal to (A) the Cash Settlement Amount divided by (B) the Private Placement Price (determined by the
Calculation Agent in accordance with the Private Placement Procedures contained in Annex A hereto). 
 (f) If the Purchaser
elects to make payment of the absolute value of the Settlement Number in Registered Shares, then the Purchaser shall deliver to the Seller a number of Settlement Shares equal to (A) the absolute value of the Settlement Number plus
(B) an additional number of Settlement Shares to take into account the Registered Shares Fee on the absolute value of the Settlement Number. Such Settlement Shares shall be delivered in such numbers and on such dates on or following the
Valuation Completion Date as are specified by the Seller in accordance with the Registration Procedures contained in Annex B hereto. 
 Section 3.02. Private Placement Procedures and Registration Procedures. If the Purchaser elects to deliver Private Placement Shares pursuant to Section 3.01(b) or elects to deliver
Alternative Termination Delivery Units pursuant to Section 7.02(a), the Private Placement Procedures contained in Annex A hereto shall apply, and if the Purchaser elects to deliver Registered Shares pursuant to Section 3.01(b), the
Registration Procedures contained in Annex B hereto shall apply. 
 Section 3.03. Continuing Obligation to Deliver
Shares. (a) If at any time, as a result of provisions limiting deliveries of shares of Common Stock to the Purchaser Share Cap, the Purchaser fails to deliver to the Seller any shares of Common Stock, the Purchaser shall, to the extent that
the Purchaser has at such time authorized but unissued shares of Common Stock not reserved for other purposes, promptly notify the Seller thereof and deliver to the Seller a number of shares of Common Stock not previously delivered as a result of
such provisions. 
 (b) The Purchaser agrees to use its reasonable best efforts to cause the number of authorized but unissued
shares of Common Stock to be increased, if necessary, to an amount sufficient to permit the Purchaser to fulfill its obligations under this Section 3.03. 
 ARTICLE 4 
 MARKET TRANSACTIONS 

Section 4.01. Transactions by the Seller. (a) The parties agree and acknowledge that: 

(i) During the Valuation Period, the Seller (or its agent or affiliate) may effect transactions in shares of Common Stock
in connection with this Confirmation. The timing of such transactions by the Seller, the price paid or received per share of Common Stock pursuant to such transactions and the manner in which such transactions are made, including without limitation
whether such transactions are made on any securities exchange or privately, shall be within the sole judgment of the Seller. 
 (ii) During any Cash Settlement Purchase Period and any Seller Termination Share Purchase Period, the Seller (or its agent or affiliate) may purchase shares of Common Stock in connection with this
Confirmation. The timing of such purchases by the Seller, the price paid per share of Common Stock pursuant to such purchases and the manner in which such purchases are made, including without limitation whether such purchases are made on any
securities exchange or privately, shall be within the sole judgment of the Seller; provided that the Seller shall use good faith efforts to make all purchases of Common Stock in a manner that would comply with the limitations set forth in
clauses (b)(2), (b)(3), (b)(4) and (c) of Rule 10b-18 (but without regard to clause (a)(13)(iv) of Rule 10b-18) as if such rule were applicable to such purchases. 

(iii) The Purchaser shall, at least one day prior to the first day of the Valuation Period, any Cash Settlement Purchase
Period and any Seller Termination Share Purchase Period, notify the Seller of the total number of shares of Common Stock purchased in Rule 10b-18 purchases of blocks pursuant to the 

  
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once-a-week block exception set forth in Rule 10b-18(b)(4) by or for the Purchaser or any of its Affiliated Purchasers during each of the four calendar weeks preceding such day and during the
calendar week in which such day occurs (“Rule 10b-18 purchase” and “blocks” each being used as defined in Rule 10b-18), which notice shall be substantially in the form set forth as Exhibit A hereto. 

(b) The Purchaser acknowledges and agrees that (i) all transactions effected pursuant to Section 4.01 hereunder shall be made
in the Seller’s sole judgment and for the Seller’s own account and (ii) the Purchaser does not have, and shall not attempt to exercise, any influence over how, when or whether to effect such transactions, including, without
limitation, the price paid or received per share of Common Stock pursuant to such transactions whether such transactions are made on any securities exchange or privately. It is the intent of the Seller and the Purchaser that this Transaction comply
with the requirements of Rule 10b5-1(c) of the Exchange Act and that this Confirmation shall be interpreted to comply with the requirements of Rule 10b5-1(c)(1)(i)(B) and the Seller shall take no action that results in the Transaction not so
complying with such requirements. 
 (c) Notwithstanding anything to the contrary in this Confirmation, the Purchaser
acknowledges and agrees that, on any day, the Seller shall not be obligated to deliver or receive any shares of Common Stock to or from the Purchaser and the Purchaser shall not be entitled to receive any shares of Common Stock from the Seller on
such day, to the extent (but only to the extent) that after such transactions the Seller’s ultimate parent entity would directly or indirectly beneficially own (as such term is defined for purposes of Section 13(d) of the Exchange Act) at
any time on such day in excess of 8.0% of the outstanding shares of Common Stock. Any purported receipt or delivery of shares of Common Stock shall be void and have no effect to the extent (but only to the extent) that after any receipt or delivery
of such shares of Common Stock the Seller’s ultimate parent entity would directly or indirectly so beneficially own in excess of 8.0% of the outstanding shares of Common Stock. If, on any day, any delivery or receipt of shares of Common Stock
by the Seller is not effected, in whole or in part, as a result of this provision, the Seller’s and Purchaser’s respective obligations to make or accept such receipt or delivery shall not be extinguished and such receipt or delivery shall
be effected over time as promptly as the Seller determines, in the reasonable determination of the Seller, that after such receipt or delivery its ultimate parent entity would not directly or indirectly beneficially own in excess of 8.0% of the
outstanding shares of Common Stock. 
 Section 4.02. Adjustment of Transaction for Securities Laws.
(a) Notwithstanding anything to the contrary in Section 4.01(a), if, based on the advice of counsel, the Seller reasonably determines that on any Trading Day, the Seller’s trading activity in the Common Stock would not be
advisable in respect of applicable securities laws, then the Seller may extend the Expiration Date, modify the Valuation Period or otherwise adjust the terms of the Transaction in its good faith reasonable discretion to ensure the Seller’s
compliance with such laws and to preserve the fair value of the Transaction to the Seller. The Seller shall notify the Purchaser of the exercise of the Seller’s rights pursuant to this Section 4.02(a) upon such exercise. 

(b) The Purchaser agrees that, during the Contract Period, neither the Purchaser nor any of its affiliates or agents shall make any
distribution (as defined in Regulation M) of Common Stock or any security for which the Common Stock is a reference security (as defined in Regulation M), unless the Purchaser has provided to the Seller written notice of such distribution not later
than 7:00 a.m., New York City time, on the first Trading Day of the “restricted period” (as defined in Regulation M) for such distribution; accordingly, the Purchaser acknowledges and agrees that the delivery of such written notice may
cause any day on and including the date of such notice through and including the date on which the Purchaser provides to the Seller written notice of the conclusion of the relevant distribution (as defined in Regulation M) to not be a Trading Day
and may give rise to an adjustment pursuant to Section 4.02(a). The Purchaser further acknowledges that the delivery of any written notice related to a distribution (as defined in Regulation M) must be in compliance with Section 5.01(a) of
this Confirmation. 
 Section 4.03. Purchases of Common Stock by the Purchaser. Without the prior written consent of
the Seller, the Purchaser shall not, and shall cause its affiliates and affiliated purchasers (each as defined in Rule 10b-18) not to, directly or indirectly (including, without limitation, by means of a derivative instrument) purchase, offer to
purchase, place any bid or limit order that would effect a purchase of, or commence any tender offer relating to, any shares of Common Stock (or equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a
depository share) or any security convertible into or exchangeable for shares of Common Stock during the Contract Period. However, the foregoing shall not limit (i) delivery of shares of Common Stock of affiliates or affiliated purchasers
pursuant to the terms of convertible securities, warrants, options or other similar 

  
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securities outstanding as of the Trade Date, (ii) purchases which are not solicited by or on behalf of the Purchaser or its affiliates or affiliated purchasers,
(iii) counterparty’s ability (or the ability of any “agent independent of the issuer” (as defined in Rule 10b-18)), pursuant to any plan (as defined in Rule 10b-18) of the Purchaser, to re-acquire shares of Common Stock in
connection with any equity transaction related to such plan or to limit the Purchaser’s ability to withhold shares of Common Stock to cover tax liabilities associated with such equity transactions or otherwise restrict the Purchaser’s
ability to repurchase shares of Common Stock under privately negotiated or off-market transactions (including, without limitation, an agreement relating to employee benefit plans or transactions with any of the Purchaser’s employees, officers,
directors or affiliates), so long as any re-acquisition, withholding or repurchase does not constitute a “Rule 10b-18 purchase” (as defined in Rule 10b-18), and (iv) purchases pursuant to any odd-lot program conducted by the Purchaser
or its affiliates or affiliated purchasers with regard to shares of Common Stock. Notwithstanding the foregoing, during the Contract Period, the Purchaser may purchase shares of Common Stock through JPMS, in compliance with Rule 10b-18 or otherwise
in a manner that the Seller and the Purchaser reasonably believe is in compliance with applicable requirements; provided that the number of shares of Common Stock so purchased by Purchaser on any Business Day during the Contract Period (as
extended pursuant to the provisions hereof) shall not exceed 5% of the average daily trading volume reported for the shares of Common Stock during the four calendar weeks preceding the week in which such purchase is to be effected. 

ARTICLE 5 

REPRESENTATIONS, WARRANTIES AND AGREEMENTS 

Section 5.01. Repeated Representations, Warranties and Agreements of the Purchaser. The Purchaser represents and warrants to,
and agrees with, the Seller, as of the date hereof that: 
 (a) Disclosure; Compliance with Laws. The reports and other
documents filed by the Purchaser with the SEC pursuant to the Exchange Act when considered as a whole (with the more recent such reports and documents deemed to amend inconsistent statements contained in any earlier such reports and documents), do
not contain any untrue statement of a material fact or any omission of a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances in which they were made, not misleading. The
Purchaser is not in possession of any material nonpublic information regarding the Purchaser or the Common Stock. 
 (b) Rule
10b5-1. The Purchaser acknowledges that (i) the Purchaser does not have, and shall not attempt to exercise, any influence over how, when or whether to effect purchases of Common Stock by the Seller (or its agent or affiliate) in connection
with this Confirmation and (ii) the Purchaser is entering into the Agreement and this Confirmation in good faith and not as part of a plan or scheme to evade compliance with federal securities laws including, without limitation, Rule 10b-5
promulgated under the Exchange Act. The Purchaser also acknowledges and agrees that any amendment, modification, waiver or termination of this Confirmation must be effected in accordance with the requirements for the amendment or termination of a
“plan” as defined in Rule 10b5-1(c) under the Exchange Act. Without limiting the generality of the foregoing, any such amendment, modification, waiver or termination shall be made in good faith and not as part of a plan or scheme to evade
the prohibitions of Rule 10b-5 under the Exchange Act, and no amendment, modification or waiver shall be made at any time at which the Purchaser or any officer or director of the Purchaser is aware of any material nonpublic information regarding the
Purchaser or the Common Stock. 
 (c) Nature of Shares Delivered. Any shares of Common Stock or Alternative Termination
Delivery Units delivered to the Seller pursuant to this Confirmation, when delivered, shall have been duly authorized and shall be duly and validly issued, fully paid and nonassessable and free of preemptive or similar rights, and such delivery
shall pass title thereto free and clear of any liens or encumbrances. 
 (d) No Manipulation. The Purchaser is not
entering into this Confirmation to create actual or apparent trading activity in the Common Stock (or any security convertible into or exchangeable for Common Stock) or to manipulate the price of the Common Stock (or any security convertible into or
exchangeable for Common Stock) for the purpose of inducing the purchase of shares of Common Stock by others. 

  
 9 








 (e) Regulation M. The Purchaser is not engaged in a distribution, as such term is
used in Regulation M, that would preclude purchases by the Purchaser or the Seller of the Common Stock or cause the Seller to violate any law, rule or regulation with respect to such purchases. 

(f) Board Authorization. The Purchaser is entering into this Transaction in connection with its share repurchase program, which
was approved by its board of directors and publicly disclosed, solely for the purposes stated in such board resolution and public disclosure. There is no internal policy of the Purchaser, whether written or oral, that would prohibit the Purchaser
from entering into any aspect of this Transaction, including, but not limited to, the purchases of shares of Common Stock to be made pursuant hereto. 
 (g) Due Authorization and Good Standing. The Purchaser is a corporation duly organized, validly existing and in good standing under the laws of the State of New York. This Confirmation has been
duly authorized, executed and delivered by the Purchaser and (assuming due authorization, execution and delivery thereof by the Seller) constitutes a valid and legally binding obligation of the Purchaser, subject, as to enforcement, to bankruptcy,
insolvency, reorganization and other laws of general applicability relating to or affecting creditors’ rights and to general equity principles. The Purchaser has all corporate power to enter into this Confirmation and to consummate the
transactions contemplated hereby and to purchase the Common Stock and deliver any Settlement Shares in accordance with the terms hereof. 
 (h) Certain Transactions. There has not been any public announcement (as defined in Rule 165(f) under the Securities Act) of any merger, acquisition, or similar transaction involving a
recapitalization relating to the Purchaser that would fall within the scope of Rule 10b-18(a)(13)(iv), where such announcement was within the Purchaser’s control. 
 Section 5.02. Initial Representations, Warranties and Agreements of the Purchaser. The Purchaser represents and warrants to, and agrees with the Seller, as of the date hereof, that:

 (a) Solvency. The assets of the Purchaser at their fair valuation exceed the liabilities of the Purchaser, including
contingent liabilities; the capital of the Purchaser is adequate to conduct the business of the Purchaser and the Purchaser has the ability to pay its debts and obligations as such debts mature and does not intend to, or does not believe that it
will, incur debt beyond its ability to pay as such debts mature. 
 (b) Required Filings. The Purchaser has made, and
will use its reasonable best efforts to make, all filings required, as determined by the Purchaser in its sole discretion with the advice of counsel, to be made by it with the SEC, any securities exchange or any other regulatory body in the United
States with respect to the Transaction contemplated hereby. 
 (c) No Conflict. The execution and delivery by the
Purchaser of, and the performance by the Purchaser of its obligations under, this Confirmation and the consummation of the transactions herein contemplated do not conflict with or violate (i) any provision of the certificate of incorporation,
by-laws or other constitutive documents of the Purchaser, (ii) any statute or order, rule, regulation or judgment of any court or governmental agency or body having jurisdiction over the Purchaser or any of its subsidiaries or any of their
respective assets or (iii) any contractual restriction binding on or affecting the Purchaser or any of its subsidiaries or any of its assets. 
 (d) Consents. All governmental and other consents that are required to have been obtained by the Purchaser with respect to performance, execution and delivery of this Confirmation have been
obtained and are in full force and effect and all conditions of any such consents have been complied with, except where such failure to obtain or non compliance would not reasonably be expected to have a material adverse effect on the
Purchaser’s or the Seller’s ability to perform its obligations under the Transaction at any time during the Contract Period. 
 (e) Investment Company Act. The Purchaser is not and, after giving effect to the transactions contemplated in this Confirmation, will not be required to register as an “investment
company” as such term is defined in the Investment Company Act of 1940, as amended. 

  
 10 









 (f) Commodity Exchange Act. The Purchaser is an “eligible contract
participant”, as such term is defined in Section 1a(12) of the Commodity Exchange Act, as amended. 

Section 5.03. Additional Representations, Warranties and Agreements. The Purchaser and the Seller represent and warrant to,
and agree with, each other that: 
 (a) Agency. Each party agrees and acknowledges that (i) JPMS has acted solely as
agent and not as principal with respect to this Transaction and (ii) JPMS has no obligation or liability, by way of guaranty, endorsement or otherwise, in any manner in respect of this Transaction (including, if applicable, in respect of the
settlement thereof). Each party agrees it will look solely to the other party (or any guarantor in respect thereof) for performance of such other party’s obligations under this Transaction. JPMS is authorized to act as agent for the Seller.

 (b) Non-Reliance. Each party has entered into this Transaction solely in reliance on its own judgment. Neither party
has any fiduciary obligation to the other party relating to this Transaction. In addition, neither party has held itself out as advising, or has held out any of its employees or agents as having the authority to advise, the other party as to whether
or not the other party should enter into this Transaction, any subsequent actions relating to this Transaction or any other matters relating to this Transaction. Neither party shall have any responsibility or liability whatsoever in respect of any
advice of this nature given, or views expressed, by it or any such persons to the other party relating to this Transaction, whether or not such advice is given or such views are expressed at the request of the other party. The Purchaser has
conducted its own analysis of the legal, accounting, tax and other implications of this Transaction and consulted such advisors, accountants and counsel as it has deemed necessary. 

Section 5.04. Representations and Warranties of the Seller. The Seller represents and warrants to the Purchaser that:

 (a) Due Authorization. This Confirmation has been duly authorized, executed and delivered by the Seller and (assuming
due authorization, execution and delivery thereof by the Purchaser) constitutes a valid and legally binding obligation of the Seller. The Seller has all corporate power to enter into this Confirmation and to consummate the transactions contemplated
hereby and to deliver the Common Stock in accordance with the terms hereof. 
 (b) Right to Transfer. The Seller will, at
the Initial Settlement Date and on any other day on which it is required to deliver shares of Common Stock to the Purchaser hereunder, have the free and unqualified right to transfer the Number of Shares of Common Stock to be delivered by the Seller
pursuant to Sections 2.01 and 3.01 hereof, free and clear of any security interest, mortgage, pledge, lien, charge, claim, equity or encumbrance of any kind. 
 (c) Commodity Exchange Act. The Seller is an “eligible contract participant”, as such term is defined in Section 1a(12) of the Commodity Exchange Act, as amended. 

(d) Policies and Procedures. The Seller has implemented policies and procedures designed to ensure that transactions in shares of
Common Stock in connection with this Confirmation would not violate the anti-manipulation provisions of the U.S. securities laws and the laws prohibiting trading on the basis of material nonpublic information. 

ARTICLE 6 

ADDITIONAL COVENANTS 
 Section 6.01. Further Assurances. Each party hereby agrees that it shall cooperate with the other party, and execute and deliver, or use its reasonable best efforts to cause to be executed and
delivered, all such other instruments, and to obtain all consents, approvals or authorizations of any person, and take all such other actions as may reasonably be requested by the other party from time to time, consistent with the terms of this
Confirmation, in order to effectuate the purposes of this Confirmation and the Transaction contemplated hereby. 

  
 11 









 Section 6.02. Purchaser’s Hedging Transactions. The Purchaser hereby agrees
with the Seller that the Purchaser shall not, during the Contract Period, enter into or alter any corresponding or hedging transaction or position with respect to the Common Stock (including, without limitation, with respect to any securities
convertible or exchangeable into the Common Stock) and agrees not to alter or deviate from the terms of this Confirmation. 

Section 6.03. No Communications. The Purchaser hereby agrees with the Seller that the Purchaser shall not communicate any
information relating to the Common Stock or this Transaction (including any notices required by Section 6.05) to any employee of the Seller or JPMS other than as set forth in the Communications Procedures attached as Annex C hereto. 

Section 6.04. Maximum Deliverable Number of Shares of Common Stock. (a) Notwithstanding any other provision of this
Confirmation, the Purchaser shall not be required to deliver Settlement Shares, or shares of Common Stock or other securities comprising the aggregate Alternative Termination Delivery Units, in excess of the Purchaser Share Cap. The Purchaser shall
not permit the sum of (i) the Purchaser Share Cap plus (ii) the aggregate number of shares expressly reserved for any such other uses, in each case whether expressed as caps or as numbers of shares reserved or otherwise, to exceed at any
time the number of authorized but unissued shares of Common Stock. 
 (b) Notwithstanding any other provision of this
Confirmation, the Seller shall not be required to deliver Settlement Shares, or shares of Common Stock or other securities comprising the aggregate Alternative Termination Delivery Units, in excess of the Seller Share Cap. 

Section 6.05. Notice of Certain Transactions. If at any time during the Contract Period, the Purchaser makes, or expects to
be made, or has made, any public announcement (as defined in Rule 165(f) under the Securities Act) of any merger, acquisition, or similar transaction involving a recapitalization relating to the Purchaser (other than any such transaction in which
the consideration consists solely of cash and there is no valuation period, or as to which the completion of such transaction or the completion of the vote by target shareholders has occurred), then the Purchaser shall (i) notify the Seller
prior to the opening of trading in the Common Stock on any day on which the Purchaser makes, or expects to be made, or has made any such public announcement, (ii) notify the Seller promptly following any such announcement (or, if later, prior
to the opening of trading in the Common Stock on the first day of any Seller Termination Share Purchase Period) that such announcement has been made and (iii) promptly deliver to the Seller following the making of any such announcement (or, if
later, prior to the opening of trading in the Common Stock on the first day of any Seller Termination Share Purchase Period) a certificate indicating (A) the Purchaser’s average daily Rule 10b-18 purchases (as defined in Rule 10b-18)
during the three full calendar months preceding the date of such announcement and (B) the Purchaser’s block purchases (as defined in Rule 10b-18) effected pursuant to paragraph (b)(4) of Rule 10b-18 during the three full calendar months
preceding the date of such announcement. In addition, the Purchaser shall promptly notify the Seller of the earlier to occur of the completion of such transaction and the completion of the vote by target shareholders. Accordingly, the Purchaser
acknowledges that its actions in relation to any such announcement or transaction must comply with the standards set forth in Section 6.03. 
 Section 6.06. Delivery or Receipt of Cash. For the avoidance of doubt, other than payment of the Purchase Price by the Purchaser, nothing in this Confirmation shall be interpreted as requiring
the Purchaser to cash settle this Transaction, except in circumstances where cash settlement is within the Purchaser’s control (including, without limitation, where the Purchaser elects to deliver or receive cash, where the Purchaser fails
timely to elect to deliver Settlement Shares or to deliver or receive Alternative Termination Delivery Units, or where the Purchaser has made Private Placement settlement in accordance with Annex A unavailable due to the occurrence of events within
its control ) or in those circumstances in which holders of the Common Stock would also receive cash. 
 ARTICLE 7 

TERMINATION 
 Section 7.01. Additional Termination Events. (a) An Additional Termination Event shall occur in respect of which the Purchaser is the sole Affected Party and this Transaction is the sole
Affected Transaction if, on any day, the Seller determines, in its sole good faith reasonable judgment, that it is unable to establish, re-establish or 

  
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maintain any hedging transactions reasonably necessary in the normal course of such party’s business to hedge the price and market risk of entering into and performing its obligations under
this Transaction, due to market illiquidity, illegality or lack of availability of hedging transaction market participants. 

(b) An Additional Termination Event shall occur in respect of which the Purchaser is the sole Affected Party and this Transaction is the
sole Affected Transaction if (i) a Share De-listing Event occurs; (ii) a Merger Event occurs; (iii) a Nationalization occurs, (iv) a Distribution Termination Event occurs or (v) an event described in paragraph III of Annex C
occurs. 
 (c) A “Share De-listing Event” means that at any time during the Contract Period, the Common Stock
ceases to be listed, traded or publicly quoted on the Exchange for any reason (other than a Merger Event, a “De-Listing”) and is not immediately re-listed, traded or quoted as of the date of such de-listing, on another U.S. national
securities exchange or a U.S. automated interdealer quotation system (a “Successor Exchange”); provided that it shall not constitute an Additional Termination Event if the Common Stock is immediately re-listed on a Successor
Exchange upon its De-Listing from the Exchange, and the Successor Exchange shall be deemed to be the Exchange for all purposes. In addition, in such event, the Seller shall make any commercially reasonable adjustments to the terms of the Transaction
that the Seller determines appropriate in its good faith reasonable judgment to preserve the fair value of the Transaction to the Seller. 
 (d) A “Merger Event” means the public announcement, including any public announcement as defined in Rule 165(f) of the Securities Act (by the Purchaser or otherwise, but with respect to
(iv) by the Purchaser only) at any time during the Contract Period of any (i) planned recapitalization, reclassification or change of the Common Stock that will, if consummated, result in a transfer of more than 20% of the outstanding
shares of Common Stock, (ii) planned consolidation, amalgamation, merger or similar transaction of the Purchaser with or into another entity (other than a consolidation, amalgamation or merger in which the Purchaser will be the continuing
entity and which does not result in any such recapitalization, reclassification or change of more than 20% of such shares outstanding), (iii) other takeover offer for the shares of Common Stock that is aimed at resulting in a transfer of more
than 20% of such shares of Common Stock (other than such shares owned or controlled by the offeror), (iv) intention to solicit or enter into, or to explore strategic alternatives or other similar undertaking that may include any of the
foregoing or (v) irrevocable commitment to any of the foregoing. 
 (e) A “Nationalization” means that all
or substantially all of the outstanding shares of Common Stock or assets of the Purchaser are nationalized, expropriated or are otherwise required to be transferred to any governmental agency, authority or entity. 

(f) A “Distribution Termination Event” means a declaration by the Purchaser of any cash dividend or distribution on
shares of Common Stock, other than an Extraordinary Cash Dividend (a “Cash Distribution”), that has a record date during the Contract Period, the amount of which, together with all prior declared Cash Distributions that have a
record date during the same Reference Period of the Purchaser, exceeds the Cash Distribution Amount specified in the Pricing Supplement for such Reference Period, and in respect of which the Calculation Agent has not made an adjustment pursuant to
Section 8.01(b). 
 Section 7.02. Consequences of Additional Termination Events. (a) In the event of the
occurrence or effective designation of an Early Termination Date under the Agreement, cash settlement, as set forth in Section 7.02(b), shall apply unless (i) the Purchaser elects (which election shall be binding), in lieu of payment or
receipt, as applicable, of the amount payable in respect of this Transaction pursuant to Section 6(d)(ii) of the Agreement (the “Termination Amount”), to deliver or to receive Alternative Termination Delivery Units pursuant to
Section 7.03, and (ii) notifies the Seller of such election by delivery of written notice to the Seller on the Business Day immediately following the Purchaser’s receipt of a notice (as required by Section 6(d) of the Agreement
following the designation of an Early Termination Date in respect of this Transaction) setting forth the amounts payable by the Purchaser or by the Seller with respect to such Early Termination Date (the date of such delivery, the “Default
Notice Day”); provided that the Purchaser shall not have the right to elect the delivery or receipt of the Alternative Termination Delivery Units pursuant to Section 7.03 if: 

(i) the representations and warranties made by the Purchaser to the Seller in Section 5.01 are not true and correct
in all material respects as of the date the Purchaser makes such election, as if made on such date, or 

  
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 (ii) in the event that the Termination Amount is payable by the Purchaser to
the Seller, (A) the Purchaser has taken any action that would make unavailable (x) the exemption set forth in Section 4(2) of the Securities Act, for the sale of any Alternative Termination Delivery Units by the Purchaser to the
Seller or (y) an exemption from the registration requirements of the Securities Act reasonably acceptable to the Seller for resales of Alternative Termination Delivery Units by the Seller, and (B) such Early Termination Date is in respect
of an Event of Default which is within Purchaser’s control (including, without limitation, failure to execute a Private Placement Agreement or otherwise comply with the requirements applicable to Purchaser set forth in Annex A hereto).

 For the avoidance of doubt, upon the Purchaser’s making an election to deliver Alternative Termination Delivery Units
pursuant to this Section 7.02(a), the Purchaser shall be deemed to make the representations and warranties in Section 5.01 as if made on the date of the Purchaser’s election (which representations and warranties shall be true and
correct in all material respects). Notwithstanding the foregoing, at any time prior to the time the Seller (or any affiliate of the Seller) has contracted to resell the property to be delivered upon alternative termination settlement, the Purchaser
may deliver in lieu of such property an amount in cash equal to the Termination Amount in the manner set forth in Section 6(d) of the Agreement. 
 (b) If cash settlement applies in respect of an Early Termination Date, Section 6 of the Agreement shall apply. 
 Section 7.03. Alternative Termination Settlement. (a) Subject to Section 7.02(a), if the Termination Amount shall be payable by the Purchaser to the Seller and the Purchaser elects
to deliver the Alternative Termination Delivery Units to the Seller, the Purchaser shall, as soon as directed by the Seller after the Default Notice Day (such date, the “Termination Settlement Date”), deliver to the Seller a number
of Alternative Termination Delivery Units equal to the quotient of (A) the Termination Amount divided by (B) the Termination Price. 
 (b) Subject to Section 7.02(a), if the Termination Amount shall be payable by the Seller to the Purchaser and the Purchaser elects to receive the Alternative Termination Delivery Units from the
Seller, (i) the Seller shall, beginning on the first Trading Day following the Default Notice Day and ending when the Seller shall have satisfied its obligations under this clause (the “Seller Termination Share Purchase
Period”), purchase (subject to the provisions of Section 4.01 and Section 4.02 hereof) a number of Alternative Termination Delivery Units equal to the quotient of (A) the Termination Amount divided by (B) the
Termination Price; and (ii) the Seller shall deliver such Alternative Termination Delivery Units to the Purchaser on the settlement dates relating to such purchases. 
 Section 7.04. Notice of Default. If an Event of Default occurs in respect of the Purchaser, the Purchaser will, promptly upon becoming aware of it, notify the Seller specifying the nature of
such Event of Default. 
 ARTICLE 8 
 ADJUSTMENTS 
 Section 8.01. Cash Dividends. (a) If
the Purchaser declares any Extraordinary Cash Dividend that has a record date during the Contract Period, then prior to or on the date on which such Extraordinary Cash Dividend is paid by the Purchaser to holders of record, the Purchaser shall pay
to the Seller an amount in cash equal to the product of (i) the amount of such Extraordinary Cash Dividend and (ii) the theoretical short delta number of shares as of the opening of business on the related ex-dividend date, as determined
by the Calculation Agent, required for the Seller to hedge its exposure to the Transaction. 
 (b) If the Purchaser declares any
cash dividend on shares of Common Stock that is not an Extraordinary Cash Dividend (an “Ordinary Cash Dividend”) and that has a record date during the Contract 

  
 14 









 
Period, and the amount of such Ordinary Cash Dividend, together with all prior declared Ordinary Cash Dividends that have a record date during the same Reference Period, exceeds the Cash
Distribution Amount specified in the Pricing Supplement for such Reference Period, the Calculation Agent may make corresponding adjustments with respect to the Floor Price as the Calculation Agent determines appropriate to preserve the fair value of
the Transaction to the Seller, and shall determine the effective date of such adjustment. 
 Section 8.02. Other
Dilution Adjustments. If (x) any corporate event occurs having a dilutive or concentrative effect on the theoretical value of the Common Stock (other than any cash dividend but including, without limitation, a spin-off, a stock split, stock
or other dividend or distribution, reorganization, rights offering or recapitalization), or (y) as a result of the definition of Trading Day (whether because of a suspension of transactions pursuant to Section 4.02 or otherwise), any day
that would otherwise be a Trading Day during the Contract Period is not a Trading Day or on such Trading Day, pursuant to Section 4.02, the Seller effects transactions with respect to shares of Common Stock at a volume lower than originally
anticipated with respect to this Transaction, or (z) as a result of market conditions, the Seller incurs additional costs in connection with maintaining its hedge position with respect to this Transaction resulting from the insufficient
availability of stock lenders willing and able to lend shares of Common Stock with a borrow cost not significantly greater than the cost as of the date hereof and otherwise on terms consistent with those as of the date hereof, then in any such case,
the Calculation Agent shall make corresponding adjustments with respect to any variable relevant to the terms of the Transaction, as the Calculation Agent determines appropriate to preserve the fair value of the Transaction to the Seller, and shall
determine the effective date of such adjustment. 
 ARTICLE 9 

MISCELLANEOUS 
 Section 9.01. Successors and Assigns. All covenants and agreements in this Confirmation made by or on behalf of either of the parties hereto shall bind and inure to the benefit of the
respective successors and assigns of the parties hereto whether so expressed or not. 
 Section 9.02. Purchaser
Indemnification. The Purchaser (the “Indemnifying Party”) agrees to indemnify and hold harmless the Seller and its officers, directors, employees, affiliates, advisors, agents and controlling persons (each, an
“Indemnified Person”) from and against any and all losses, claims, damages and liabilities, joint or several (collectively, “Obligations”), to which an Indemnified Person may become subject arising out of or in
connection with any breach of any representation, warranty or covenant of the Purchaser contained in this Confirmation or any claim, litigation, investigation or proceeding relating directly thereto, regardless of whether any of such Indemnified
Person is a party thereto, and to reimburse, within 30 days, upon written request, each such Indemnified Person for any reasonable legal or other expenses incurred in connection with investigating, preparation for, providing evidence for or
defending any of the foregoing, provided, however, that the Indemnifying Party shall not have any liability to any Indemnified Person to the extent that such Obligations (i) are finally determined by a court of competent jurisdiction to have
resulted from the gross negligence or willful misconduct of such Indemnified Person (and in such case, such Indemnified Person shall promptly return to the Indemnifying Party any amounts previously expended by the Indemnifying Party hereunder) or
(ii) are trading losses incurred by the Seller as part of its purchases or sales of shares of Common Stock pursuant to this Confirmation (unless such trading losses are related directly to a breach of any agreement, term or covenant of the
Purchaser contained herein). 
 Section 9.03. Equity Rights. The Seller acknowledges and agrees that this
Confirmation is not intended to convey to it rights with respect to the Transaction that are senior to the claims of holders of Common Stock in the event of the Purchaser’s bankruptcy. 

Section 9.04. Assignment and Transfer. Notwithstanding the Agreement, the Seller may assign any of its rights or duties
hereunder to any one or more of its affiliates without the prior written consent of the Purchaser. Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing Seller to purchase, sell, receive or deliver any shares
of Common Stock or other securities to or from the Purchaser, Seller may designate any of its affiliates to purchase, sell, receive or deliver such shares of Common Stock or other securities and otherwise to perform the Seller’s obligations in
respect of this Transaction and any such designee may assume such obligations. The Seller may assign the right to receive Settlement Shares to any third party who may legally 

  
 15 









 
receive Settlement Shares. The Seller shall be discharged of its obligations to the Purchaser only to the extent of any such performance that complies with this Confirmation. For the avoidance of
doubt, Seller hereby acknowledges that notwithstanding any such designation hereunder, to the extent any of Seller’s obligations in respect of this Transaction are not completed by its designee in compliance with the terms of this Confirmation,
Seller shall be obligated to continue to perform or to cause any other of its designees to perform in respect of such obligations. 
 Section 9.05. Calculation Agent. Whenever the Calculation Agent is required to act or to exercise judgment in any way with respect to this Transaction, it will do so in good faith and in a
commercially reasonable manner. Following any calculation, adjustment or calculation by the Calculation Agent hereunder, upon request by the Purchaser, the Calculation Agent will promptly (but in any event within three Trading Days) provide to the
Purchaser by email to the email address provided by the Purchaser a report (in a commonly used file format for the storage and manipulation of financial data) setting forth in reasonable detail the basis for such calculation, adjustment or
calculation, as the case may be. 
 Section 9.06. Non-confidentiality. The Seller and the Purchaser hereby
acknowledge and agree that, subject to Section 6.03, each is authorized to disclose every aspect of this Confirmation and the transactions contemplated hereby to any and all persons, without limitation of any kind, and there are no express or
implied agreements, arrangements or understandings to the contrary. 
 Section 9.07. Unenforceability and Invalidity.
To the extent permitted by law, the unenforceability or invalidity of any provision or provisions of this Confirmation shall not render any other provision or provisions herein contained unenforceable or invalid. 

Section 9.08. Securities Contract. The parties hereto agree and acknowledge as of the date hereof that (i) the Seller is
a “financial institution” within the meaning of Section 101(22) of Title 11 of the United States Code (the “Bankruptcy Code”) and (ii) this Confirmation is a “securities contract,” as such term is
defined in Section 741(7) of the Bankruptcy Code, entitled to the protection of Sections 362(b)(6) and 555 of the Bankruptcy Code. 
 Section 9.09. No Collateral, Netting or Setoff. Notwithstanding any provision of the Agreement, or any other agreement between the parties, to the contrary, the obligations of the Purchaser
hereunder are not secured by any collateral. Obligations under this Transaction shall not be netted, recouped or set off (including pursuant to Section 6 of the Agreement) against any other obligations of the parties, whether arising under the
Agreement, this Confirmation, under any other agreement between the parties hereto, by operation of law or otherwise, and no other obligations of the parties shall be netted, recouped or set off (including pursuant to Section 6 of the
Agreement) against obligations under this Transaction, whether arising under the Agreement, this Confirmation, under any other agreement between the parties hereto, by operation of law or otherwise, and each party hereby waives any such right of
setoff, netting or recoupment. 
 Section 9.10. Notices. Unless otherwise specified herein, any notice, the delivery
of which is expressly provided for in this Confirmation, may be made by telephone, to be confirmed in writing to the address below. Changes to the information below must be made in writing. 

 

	 	(a)	If to the Purchaser: 

 Flowserve
Corporation 
 5215 N. O’Connor Blvd., Suite 2300 
 Irving, Texas 75039 
 Attention: Stuart Jones 

Title: Assistant Treasurer 
 Telephone No: (469) 420-3259 
 Facsimile No: (469) 420-3359 

E-mail: sajones@flowserve.com 

  
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	 	(b)	If to the Seller: 

 JPMorgan
Chase Bank, National Association 
 c/o J.P. Morgan Securities LLC 

EDG Marketing Support 
 Email: EDG_OTC_HEDGING_MS@jpmorgan.com 
 Fax: 1-866-886-4506 

With a copy to: 

Sudheer R. Tegulapalle 
 Executive Director 
 277 Park Avenue, 9th Floor 

New York, NY 10172 
 Telephone No: 212-622-2100 
 Facsimile No: 212-622-0398 

E-mail: sudheer.r.tegulapalle@jpmorgan.com 

  
 17 









 Please confirm that the foregoing correctly sets forth the terms of our agreement by
executing the copy of this Confirmation enclosed for that purpose and returning it to us. 
  

					
	Yours sincerely,
	
	J.P. MORGAN SECURITIES LLC, as agent for JPMorgan Chase Bank, National Association, London Branch
		
	By:	 	 /s/ Sudheer Tegulapalle

		 	Name:	 	Sudheer Tegulapalle
		 	Title:	 	Executive Director


 Confirmed as of the date first 
 above written: 
  

					
	FLOWSERVE CORPORATION
		
	By:	 	 /s/ Michael S. Taff

		 	Name:	 	Michael S. Taff
		 	Title:	 	Senior Vice President and
		 		 	Chief Financial Officer

 JPMorgan Chase Bank, National Association 

Organised under the laws of the United States as a National Banking Association. 

Main Office 1111 Polaris Parkway, Columbus, Ohio 43271 
 Registered as a branch in England & Wales branch No. BR000746. 

Registered Branch Office 125 London Wall, London EC2Y 5AJ 
 Authorised and regulated by the Financial Services Authority