Document:

bbkyloccollateralpledge.htm

Exhibit 10.3

 

STOCK PLEDGE AND SECURITY AGREEMENT

 

THIS STOCK PLEDGE AND SECURITY AGREEMENT (“Pledge Agreement”) is made and entered into on this 7th day of September, 2012, by and between PREMIER FINANCIAL BANCORP, INC., (“Pledgor”), a Kentucky corporation serving as a bank holding company under the Bank Holding Company Act of 1956, as amended for CITIZENS DEPOSIT BANK and TRUST COMPANY, INC., Vanceburg, Kentucky (“Bank”) and (b) THE BANKERS’ BANK OF KENTUCKY, INC., a Kentucky banking organization with principal office and place of business in Frankfort, Kentucky (the “Bankers’”).

 

PRELIMINARY STATEMENT

A.  Pursuant to that certain Loan Agreement of even date herewith, between Pledgor and Bankers’, Bankers’ has agreed to enter into a Loan for Pledgor, such Loan from Bankers’ being evidenced by a Promissory Note of even date herewith, made by Pledgor, payable to the order of Bankers’ (the “Note”).

B.  Pledgor hereby agrees that the payment of the Note shall be secured by this Pledge Agreement and acknowledge that Bankers’ would not have entered into the Loan without Pledgor becoming a party to this Pledge Agreement.

 

C.  Pledgor acknowledges the above and enters into this Pledge Agreement to provide collateral to the Loan.

NOW, THEREFORE, in consideration of the Loan made contemporaneously herewith by Bankers’ to Pledgor, and for other good and valuable consideration, the mutuality, receipt and sufficiency of which are hereby acknowledged, the Pledgor and Bankers’ hereby agree as follows:

 

1.  Definitions.  The capitalized terms and phrases not otherwise defined herein shall have the meanings given them in the Loan Agreement, and the following terms or phrases shall have the following meanings:

1.1 “Event of Default” shall have the meaning set forth in Section 10 of this Pledge Agreement.

 

  

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Exhibit 10.3 (continued)

 

 

1.2 “Pledged Shares” means the 559,800 shares of the authorized issued and outstanding Common Capital Stock of Bank, One ($1.00) Dollar par value, which constitutes One Hundred (100%) Percent of the outstanding common stock of said Bank.

2.  Grant of Security Interest.

 

2.1  The Pledgor hereby pledges and assigns to Bankers’, and hereby grants to Bankers’ a security interest in, the Pledged Shares, and it is agreed between the Parties that this security interest shall be on an equal par with, and pari passu with, on a percentage basis, that security interest referred to in Section 4.2 below.  The Pledgor further grants to Bankers’ a security interest in any and all stock rights, rights to subscribe, liquidating dividends, dividends paid in stock, new securities or any other property to which the Pledgor is or may hereafter become entitled to receive on account of the Pledged Shares owned by the Pledgor.  If the Pledgor receives additional property of such nature, the Pledgor shall immediately deliver such property to Bankers’, to be held by Bankers’ pursuant to this Pledge Agreement.

 

2.2  The Pledgor hereby grants a security interest in the Pledgor’s share of all  proceeds of any sale or other disposition of the Pledged Shares.

 

3.  Secured Obligations.  Pledgor has granted to Bankers’ a security interest in the collateral to secure (a) the payment of the entire unpaid principal of, and all interest now accrued or hereafter to accrued or hereafter to accrue on, the Note and all costs and expenses, including, without limitation, reasonable attorneys’ fees now or hereafter incurred by Bankers’ in enforcing the Loan Agreement, the Note and this Pledge Agreement, and (b) the performance of all other covenants, agreements and obligations of the Pledgor set forth herein and in the Loan Agreement and the documents supplemental thereto.

 

4.  Representations and Warranties.  To induce Bankers’ to enter into the Loan Agreement, and to make the Loan to Pledgor, Pledgor hereby represents and warrants to Bankers’ as follows, which representations and warranties shall survive the execution and delivery of this Pledge Agreement and the delivery of the Pledged Shares to Bankers’:

 

4.1           The Pledgor has the full right, power and authority to enter into and perform this Pledge Agreement.  This Pledge Agreement has been duly entered into and delivered by the Pledgor and constitutes a legal, valid and binding obligation of the Pledgor, enforceable in accordance with its terms, except as enforceability thereof may be limited by applicable bankruptcy, insolvency or other laws affecting creditors’ rights generally, and by the application of usual equitable principles where equitable principles are sought.

 

4.2           The Pledgor has good and marketable title to the Pledged Shares represented to be owned by the Pledgor, and the Pledged Shares are not subject to any lien, charge, pledge, encumbrance, claim or security interest of any nature whatsoever, other than that security interest under that Stock Pledge and Security Agreement dated September 8, 2010, and that Loan Modification Agreement dated August 16, 2012, all between the Parties hereto.

 

  

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Exhibit 10.3 (continued)

 

4.3           The Pledged Shares are fully paid and nonassessable.

 

4.4           Pledgor has not entered into any stock restriction, voting agreement, proxy or purchase agreement with respect to the Pledged Shares which would in any way restrict the sale, pledge or other transfer of the Pledged Shares or of any interest in or to the Pledged Shares.

 

5.  Duration of Security Interest.  Bankers’ shall hold the Pledged Shares upon the terms and provisions of this Pledge Agreement and the security interest in the Pledged Shares granted to Bankers’ pursuant to this Pledge Agreement shall continue until Note has been paid in full to Bankers’.

 

6.  Maintaining Freedom from Liens.  Pledgor shall keep the Pledged Shares owned by such Pledgor free and clear of all liens and encumbrances except as specified herein, and shall pay all amounts, including taxes, assessments or charges, which might result in a lien against the Pledged Shares if left unpaid, unless the Pledgor, all at the Pledgor’s expense, is contesting any such amount in good faith by an appropriate proceeding timely instituted and which shall operate to prevent the collection or satisfaction of the lien or amount so contested.  If Pledgor fails to pay such amounts and is not contesting the validity of amount thereof in accordance with the preceding sentence, Bankers’ may, but is not obligated to, pay such amounts, and such payment shall be conclusive evidence of the legality or validity thereof.

7.  Certain Rights Respecting the Pledged Shares.

 

7.1 Pledgor shall continue to be the sole owner of the Pledged Shares represented to be owned by such Pledgor, and may exercise all voting rights with respect to the Pledged Shares owned by such Pledgor, so long as no Event of Default has occurred and is continuing.

 

7.2 Pledgor shall not sell, transfer or attempt to sell or transfer the Pledged Shares, or any part thereof or interest therein, without the prior express written consent of Bankers’.  Any such consent of Bankers’ shall not constitute the release by Bankers’ of its security interest in the Pledged Shares so sold or transferred, and any such sale or transfer consented to by Bankers’ shall transfer the Pledged Shares, subject to the security interest therein of Bankers’ created pursuant to this Pledge Agreement.

 

7.3 Bankers’, at its option upon the occurrence of any Event of Default, and so long as such Event of Default exists, may exercise all voting rights and privileges whatsoever with respect to the Pledged Shares, and to that end, Pledgor hereby constitutes any executive officer of Bankers’ as such Pledgor's proxy and attorney-in-fact for all purposes of voting the Pledged Shares represented to be owned by such Pledgor at any annual, regular or special meeting of shareholders of Bank, and this appointment shall be deemed coupled with an interest and is and shall be irrevocable until the Note has been fully paid and performed to Bankers’, and all persons whatsoever shall be conclusively entitled to rely upon any oral or written certification of Bankers’ that it is entitled to vote the Pledged Shares.  Pledgor shall execute and deliver to Bankers’ any additional proxies and powers of attorney that Bankers’ may desire in its own name to effectuate the provisions of the Loan Agreement and this Pledge Agreement.

 

  

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Exhibit 10.3 (continued)

 

 

8.  Issuance or Acquisition of New Stock or Sale of Treasury Shares, Mergers, Sales and Other Distribution of Assets.   Until the Note has been paid and performed in full to Bankers’, Pledgor shall not vote in favor of permitting Bank (a) to issue new shares of its capital stock, or any options, subscription rights or warrants with respect thereto, (b) to sell any treasury shares, (c) to merge into or with, or consolidate with, any other entity, (d) to sell or otherwise transfer any material part of its assets, or (e) to liquidate or dissolve or take any action with a view toward liquidation or dissolution.

 

9.  Delivery of Certificates and Stock Powers.  Pledger shall have delivered, or shall deliver to Bankers’, and Bankers’ shall be entitled to possess, the share certificates evidencing the Pledged Shares represented to be owned by the Pledgor and an executed blank stock power with respect to each such share certificate.  If for any reason Pledgor acquires any interest in any additional Capital Stock of Bank, Pledgor shall immediately deliver certificates representing that stock and a blank stock power for those certificates to Bankers’, to be held by Bankers’ in the same manner as the Pledged Shares, and that stock shall be pledged under this Pledge Agreement and shall constitute a part of the Pledged Shares.

10.  Event of Default.  The following shall each constitute an “Event of Default” hereunder:

 

10.1           If any principal or interest on the Note shall not be paid in full punctually when due and payable and shall remain unpaid for a period of ten (10) days after written notice of such default has been given to Pledgor.

 

10.2  If Pledgor breaches, violates or fails to perform or observe any covenant, obligation, agreement, condition or other provision contained in this Pledge Agreement, and the same is not cured to the satisfaction of Bankers’ within thirty (30) days after Bankers’ has specified such default in a written notice delivered to the Pledgor.

 

10.3  If any representation or warranty or other statement of fact contained herein or in any related writing furnished to Bankers’ in connection with the transaction contemplated hereby shall be false or misleading in any material respect as of the date of this Pledge Agreement and shall continue to be false or misleading in any material respect, or shall omit to state a material fact required to be stated therein in order to make the statements contained therein, in light of the circumstances under which made, not misleading as of the date of this Pledge Agreement, whether or not made with knowledge of the same, and such omission to state a material fact shall not have been corrected.

10.4           The occurrence of any Event of Default under the Loan Agreement.

11.  Remedies.

 

11.1  Upon the occurrence of any Event of Default, Bankers’ may, at its option, declare the Note, to be immediately due and payable, may exercise the rights with respect to the Pledged Shares contemplated in Section 7 of this Pledge Agreement, and, in addition to exercising all other rights or remedies, proceed to exercise with respect to the Pledged Shares all rights, options and remedies of a secured party upon default as provided for under the Uniform Commercial Code as enacted in the Commonwealth of Kentucky.

 

  

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Exhibit 10.3 (continued)

 

11.2           The rights of Bankers’ upon the occurrence of any Event of Default shall include, without limitation, the following:

 

(a)  The right to the immediate possession of Pledged Shares not then in Bankers’ possession without requirement of notice or demand or of any legal process.

 

(b)  The right to sell the Pledged Shares at public or private sale and in one or more lots, and in any order or sequence.  Bankers’ shall be entitled to apply the proceeds of any such sale to the satisfaction of the Note, and to meet the obligations secured by those documents referred to in Paragraph 4.2 hereof, pro rata,  and to expenses incurred in realizing upon the Pledged Shares in accordance with the Uniform Commercial Code as enacted in the Commonwealth of Kentucky; provided, however, Bankers’ may, but shall not be obligated to, postpone the time of any proposed sale of any of the Pledged Shares, or any part thereof, and may change the time and/or place of such sale, subject to the obligation of Bankers’ to give the Pledgor notice of such new time and/or place of the Pledged Shares, or any part thereof, as applicable, as provided in Section 18.1 below.  In the event Bankers’ sells the Pledged Shares, or any part thereof on credit or for future delivery, which may be elected by Bankers’ at its sole discretion, the Pledged Shares so sold may, at Bankers’ sole option, be transferred and/or delivered to the purchaser thereof or retained by Bankers’ until the purchase price thereof has been paid by the purchaser.

 

(c)  The right to recover the reasonable expenses of Bankers’ in enforcing the Loan Agreement and this Pledge Agreement, preparing for sale and selling the Pledged Shares and other like expenses, together with court costs and reasonable attorneys’ fees incurred by Bankers’.

 

(d)  The right to proceed by appropriate legal process at law or in equity to enforce any provision of this Pledge Agreement or in aid of the execution of any power of sale, or for foreclosure of the security interest of Bankers’ in the Pledged Shares, or for the sale of the Pledged Shares under the judgment or decree of any court.

 

(e)  In furtherance of the rights and remedies of Bankers’ upon the occurrence of an Event of Default, Pledgor hereby constitutes any officer of Bankers’ as Pledgor’s proxy and attorney-in-fact to complete, execute and file with the Securities and Exchange Commission, if such filing be required by law, one or more notices of proposed sale of securities pursuant to Rule 144 under the Securities Act of 1933, as amended, and this appointment shall be deemed coupled with an interest, and is and shall be irrevocable, until the Note has been paid and performed in full to Bankers’.

 

12.  Exercise of Remedies.  The rights and remedies of Bankers’ shall be deemed to be cumulative, and any exercise of any right or remedy shall not be deemed to be an election of that right or remedy to the exclusion of any other right or remedy.

 

  

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Exhibit 10.3 (continued)

 

 

13.  Waiver.  Pledgor hereby waives any claim arising by reason of (a) the fact that the price or prices for which the Pledged Shares or any part thereof is sold at any private sale or sales is less than the price which would have been obtained at a public sale or sales or is less than the amount of the Note, (b) any reasonable delay by Bankers’ in selling the Pledged Shares following the occurrence of an Event of Default, including, without limitation, any delays in selling the Pledged Shares resulting from the compliance by Bankers’ with applicable federal and state securities laws, even if the price of the Pledged Shares thereafter declines; or (c) the immediate sale of the Pledged Shares upon the occurrence of an Event of Default, even if the price of the Pledged Shares should thereafter increase.  Pledgor shall remain liable for any deficiency remaining due, after the sale of the Pledged Shares, on the Note.

 

14.  Payment of Costs, Attorneys’ Fees and Expenses.  To the extent not paid out of the proceeds of the sale of the Pledged Shares, Pledgor shall be responsible for and shall pay any and all reasonable costs, attorneys’ fees and other expenses of whatever kind incurred by Bankers’ in connection with (i) maintaining and enforcing the Loan Agreement, the Note and/or this Pledge Agreement; (ii) obtaining possession of the Pledged Shares; (iii) the protection and preservation of the Pledged Shares; (iv) the collection of the Note or any part thereof; and (v) any litigation involving the Pledged Shares, and/or any benefit accruing by virtue of the provisions hereof or the rights of Bankers’ hereunder.

 

15.  Advances by Bankers’.  Pledgor shall be responsible to reimburse Bankers’ for all reasonable advances made by Bankers’ in performing any actions on behalf of the Pledgor pursuant to this Pledge Agreement, including, without limitation, all amounts paid by Bankers’ (a) to discharge taxes, levies, liens and/or security interests against the Pledged Shares, and/or (b) in connection with the exercise by Bankers’ of its rights and remedies hereunder.   All such advances made by Bankers’ shall bear interest at the rate set forth in the Note as applicable to overdue principal and/or accrued interest on the Note, and all such advances and all interest thereon shall be secured by this Pledge Agreement with the same priority as the Note, to the fullest extent permitted by applicable law, and shall be due and payable in full to Bankers’ upon demand by Bankers’ at any time in its sole and absolute discretion.

 

16.  Irrevocable Attorney-in-Fact.  Pledgor hereby irrevocably appoints Bankers’ as such Pledgor’s attorney-in-fact (a) to do all acts and things which Bankers’ may deem necessary or appropriate in its sole and absolute discretion to perfect and to continue the perfected status of the security interest in the Pledged Shares created in favor of Bankers’ pursuant to this Pledge Agreement and to protect the Pledged Shares, and (b) to perform such other acts in connection with the Pledged Shares as Bankers’ determines in its reasonable discretion to be necessary or appropriate to effectuate the purposes of this Pledge Agreement.

 

17.  Return of Pledged Shares.  Bankers’ may, at any time, deliver the Pledged Shares, or any part thereof, to the Pledgor.  The receipt by the Pledgor of the Pledged Shares, or any part thereof shall be a complete and full discharge of Bankers’, and Bankers’ shall be discharged from any liability or responsibility with respect thereto.

 

  

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Exhibit 10.3 (continued)

 

18.  Notice.

 

18.1           Any requirement of the Uniform Commercial Code of Kentucky of reasonable notice of the intended sale or other disposition of the Pledged Shares shall be met if such notice is given to the Pledgor at least thirty (30) business days before the time of sale, disposition or other event or thing giving rise to the requirement of notice.

 

18.2  All notices or communications under this Pledge Agreement shall be in writing and shall be personally delivered or sent by express courier service or by registered or certified United States mail, return receipt requested, postage prepaid, addressed as follows (or to such other address as to which either party shall have given the other party written notice):

 

 

       If to Pledgee:           Premier Financial Bancorp, Inc.

                      Attention: Robert W. Walker

                      President/CEO

                      2883 5th Avenue

                      Huntington, West Virginia  25702

 

 

       If to Bankers':          The Bankers' Bank of Kentucky, Inc.

                      Attention: John Clark

                      Executive Vice President

                      P.O. Box 713

                      Frankfort, Kentucky  40602

 

All notices and other communications hereunder shall be deemed given upon the earliest of (a) actual delivery in person, (b) one (1) business day after having been delivered to an express courier service, or (c) two (2) business days after having been deposited in the United States mails, in accordance with the foregoing, as applicable.

 

19.  Further Assurances.  The Pledgor shall execute any such other documents or instruments, and take such other actions, as Bankers’ may request to more fully create and maintain, or to verify, ratify or perfect the security interest intended to be created in this Pledge Agreement.

 

20.  No Implied Waiver.  All options and rights of Bankers’ hereunder are continuing, and the failure of Bankers’ to exercise any such option or right of election in any instance shall not be construed as waiving the right to exercise such option or right at any subsequent time or be construed as waiving the right to exercise any other option or right hereunder, at law or at equity.  No exercise by Bankers’ of any of the options, rights or powers provided herein and no delay or omission in the exercise of such options, rights or powers provided herein shall be construed to exhaust the same or be construed as a waiver thereof, and each such option, right and power may be exercised at any time and from time to time.

 

  

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Exhibit 10.3 (continued)

 

 

21.  Severability of Provisions.  If any term or provision of this Pledge Agreement is held to be invalid or unenforceable in any jurisdiction, the other terms and provisions hereof shall remain in full force and effect in such jurisdiction and the invalid or unenforceable provision shall remain in full force and effect in all other jurisdictions.

 

22.  Governing Law.  This Pledge Agreement and the respective rights, duties and obligations of the parties hereto shall be governed by and construed in accordance with the laws of the Commonwealth of Kentucky.

 

23.  Successors and Assigns.  This Pledge Agreement shall bind the Pledgor and its heirs, personal representatives, successors and assigns and shall inure to the benefit of Bankers’ and its successors and assigns, including, without limitation, each subsequent holder of the Note.

24.  Captions.  The various section headings used in this Pledge Agreement are inserted for convenience of reference only and shall be ignored in construing the provisions hereof.

25.  Time of Essence.  Time shall be of the essence in the performance of all of the covenants, obligations and agreements under this Pledge Agreement.

 

26.  Entire Agreement.  This Pledge Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior understandings with respect to the subject matter hereof.  No change, modification, addition or termination of this Pledge Agreement shall be enforceable unless in writing and signed by the party against whom enforcement is sought.

IN WITNESS WHEREOF, the Pledgor and Bankers’ have executed this Pledge Agreement on the day, month and year first above written.

Premier Financial Bancorp, Inc.

(Pledgor)

By _/s/ Brien M. Chase___________

Brien M. Chase___________

Title:   _SVP & CFO_____________

The Bankers’ Bank of Kentucky, Inc.

(Bankers’)

By _/s/ Sara Hughes______________

Sara Hughes

Title:     Vice President

 

 

 

 

 

 

 

 

 

 

 

8Exhibit 10.1

 

EXECUTION VERSION

September 7,
2012               

MTS Systems Corporation

14000 Technology Drive

Eden Prairie, MN 55344

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, as agent for JPMorgan
Chase Bank, National Association, London Branch (the “Seller”), and MTS Systems Corporation, a Minnesota 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 ISDA 2002 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 “MTSC 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

 

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“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 9.07.

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

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

“Capped Delivery Shares” means,
for any date, (i) 8,054,585 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. 

“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” has
the meaning set forth in Section 3.01(d).

“Cash Settlement Fee” means
the amount specified as such in the Pricing Supplement.

“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.

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

“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).

 

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

“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 NASDAQ
Global Select Market.

“Exchange Act” means the Securities
Exchange Act of 1934, as amended.

“Expiration Date” means the
172nd 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 Payment Date” means
the first Business Day immediately following the Trade Date.

“Initial Settlement Date”
has the meaning set forth in Section 2.02.

“Initial Share Price” means
$52.53.

“Maximum Delivery Shares”
means, for any date, (i) 2,039,000 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).

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

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

“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.

 

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“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).

“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.

“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.

“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.

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

“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 Purchase Amount”
means an amount in cash equal to (i) the absolute value of the Settlement Number multiplied by (ii) (x) the arithmetic average
of 10b-18 VWAP for each of the Trading Days in the Cash Settlement Purchase Period plus (y) $0.05.

“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).

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

 

    	4

    	 

    

“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 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 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.  For the avoidance of doubt, if the Discount is a negative number, the difference
in clause (ii) of the immediately preceding sentence shall be equal to the arithmetic average of the 10b-18 VWAPs for all of the
Trading Days in the Valuation Period plus the absolute value of the Discount.

“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 September 7, 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 $0.25 per share (“Common Stock”), for a purchase price equal to $35,000,000 (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 second 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, following payment by the Purchaser on the Initial Payment Date
of (i) an amount equal to the Purchase Price to the Seller and (ii) the Contract Fee to J.P. Morgan Securities LLC; 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.

 

    	5

    	 

    

 

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.

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 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, 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.

 

    	6

    	 

    

 

                       
(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 (the “Cash Settlement Amount”) equal to (i) the Settlement Purchase Amount
plus (ii) the Cash Settlement Fee.

   (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.

                       
(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 number of Maximum Delivery Shares, 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 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 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.

    	7

    	 

    

 

   (ii)            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.

   (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 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
order to manage its economic hedge in respect of the Transaction 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 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) or take any other action that would, in the view of the Seller, preclude
purchases by the Seller of the Common Stock or cause the Seller to violate any law, rule or regulation with respect to such purchases.

 

    	8

    	 

    

 

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; provided, however, that the foregoing shall not prohibit (i) the Purchaser’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, so long as any re-acquisition, withholding or repurchase does not constitute a “Rule 10b-18 purchase”
(as defined in Rule 10b-18) or (ii) delivery of shares of Common Stock of or to the Purchaser’s affiliates or affiliated
purchasers pursuant to the terms of convertible securities, warrants, options or other similar securities outstanding as of the
Trade Date.

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,
on the date hereof and on any date pursuant to which the Purchaser makes an election to deliver Settlement Shares pursuant to Section
3.01, to pay cash in lieu of Settlement Shares pursuant to Section 3.01(c)(ii) or to receive or deliver Alternative
Termination Delivery Units pursuant to Section 7.03, 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).

                       
(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.

 

    	9

    	 

    

 

                        
(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 Minnesota.  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. 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 best efforts
to make, all filings required to be made by it with the SEC, any securities exchange or any other regulatory body 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 articles 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.

                       
(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.

                        
(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.

                       
(g)           
Suitability.  The Purchaser (A) is capable of evaluating investment risks
independently, both in general and with regard to all transactions and investment strategies involving a security or securities;
(B) will exercise independent judgment in evaluating the recommendations of any broker-dealer or its associated persons, unless
it has otherwise notified the broker-dealer in writing; and (C) has total assets of at least $50 million as of the date hereof.

 

    	10

    	 

    

 

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) J.P. Morgan Securities
LLC, an affiliate of the Seller (“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.

Article
6

Additional Covenants

Section 6.01.  Purchaser’s
Further Assurances.  The Purchaser hereby agrees with the Seller that the Purchaser shall cooperate with the Seller,
and execute and deliver, or use its 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 the Seller may reasonably request 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.

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, directly or indirectly, 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 J.P. Morgan Securities LLC, other than as set forth in the Communications
Procedures attached as Annex C hereto.

 

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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 number of Maximum Delivery Shares, in each case except to the extent that the Purchaser
has available at such time authorized but unissued shares of such Common Stock or other securities not expressly reserved for any
other uses (including, without limitation, shares of Common Stock reserved for issuance upon the exercise of options or convertible
debt).  The Purchaser shall not permit the sum of (i) the number of Maximum Delivery Shares 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 number of Capped Delivery Shares.

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 Payment 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 Payment 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.

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 reasonable judgment, that
it is unable to establish, re-establish or maintain any hedging transactions reasonably necessary in the normal course of such
party’s business of hedging the price and market risk of entering into and performing 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 reasonable good faith judgment to preserve the fair value of the Transaction to the Seller.

 

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(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) 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 as of the date the Purchaser  makes such election, as if made on such date,
or

   (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 hereof as if made on the date of the Purchaser’s election.  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.

 

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(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 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
in its reasonable good faith judgment to preserve the fair value of the Transaction to the Seller, and shall determine the effective
date of such adjustment.

 

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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”), resulting
from a breach by Purchaser of this Confirmation or any claim, litigation, investigation or proceeding relating 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 the Purchaser has breached any agreement, term or covenant herein).

Section 9.03.  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 receive Settlement Shares. The Seller
shall be discharged of its obligations to the Purchaser only to the extent of any such performance.  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, Seller shall be obligated to continue to perform
or to cause any other of its designees to perform in respect of such obligations.

Section 9.04.  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.

Section 9.05.  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 9.06.  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.

 

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Section 9.07.  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 9.08.  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 9.09.  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 9.10.  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:

MTS Systems Corporation

14000 Technology Drive

Eden Prairie, MN 55344

Attention: Tim Radermacher

Title: Treasurer and Director of Tax

Telephone No: (952) 937-4004

Facsimile No:  (952) 937-4515

 

 

                       
(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 Tegulapalle

Executive Director

383 Madison Avenue, Floor 05

New York, NY, 10179, United States

Telephone No: (212) 622-2100

Facsimile No: (212) 622-0398

Email: sudheer.r.tegulapalle@jpmorgan.com

 

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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
	/s/ Sudheer Tegulapalle
	By:	 
	 	Name:    Sudheer Tegulapalle

Title:      Executive Director 
	 
	 

Confirmed as of the date first

above written:

	
        MTS SYSTEMS CORPORATION

         

	By:	/s/ Sue Knight
	 	 Name:    Sue Knight

 Title:       CFO
	 
	 

 

 

 

    	17

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