Document:

EX-4.3

 Exhibit 4.3 

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY OR A NOMINEE OF
THE DEPOSITORY. THIS NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITORY TO A NOMINEE OF THE DEPOSITORY, BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH A SUCCESSOR DEPOSITORY. UNLESS
THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME
AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  

			
	No. 2	  	
	CUSIP: 053332AV4	  	$100,000,000

 AUTOZONE, INC. 

3.750% Senior Note due 2027 
 Original Issue
Date: April 18, 2017 
 Interest Payment Dates: June 1 and December 1 

Maturity Date: June 1, 2027 
 Interest Rate: 3.750% 

AUTOZONE, INC., a Nevada corporation (hereinafter called the “Company”, which term includes any successor corporation under the
Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of one hundred million dollars ($100,000,000) (the “Principal Amount”) on the Maturity Date
shown above, except as provided below, and to pay interest thereon at the rate per annum shown above. (Capitalized terms used herein have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.) The Company will
pay interest semiannually on the Interest Payment Dates, commencing on December 1, 2017. Interest on this Note will accrue from the most recent Interest Payment Date to which interest has been paid or duly provided for or, if no interest has
been paid or duly provided for, from the Original Issue Date shown above. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the person in whose name this
Note (or one or more predecessor Securities) is registered at the close of business on the regular record date for such interest, which shall be the May 15 or the November 15 (whether or not a Business Day), as the case may be, next
preceding such Interest Payment Date. 

 Payment of the principal of and interest on this Note will be made at the Corporate Trust Office
of the Trustee in New York, New York, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 

If the Company defaults in a payment of interest on this Note, it shall pay the defaulted interest, plus, to the extent permitted by law, any
interest payable on the defaulted interest, to the persons who are Securityholders of this Note on a subsequent special record date. The Company shall fix that record date and payment date. At least ten (10) days before that record date, the
Company shall mail to the Trustee and to each Securityholder a notice that states that record date, the payment date and the amount of interest and any interest thereon to be paid. The Company may pay defaulted interest and any interest thereon in
any other lawful manner. 
 This Note is one of a duly authorized issue of securities of the Company (the “Securities”), of the
Series hereinafter specified, all issued under and pursuant to an indenture, dated as of August 8, 2003, together with the Officers’ Certificate dated April 18, 2017 (the “Officers’ Certificate”), establishing the terms
of the Notes (the “Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A. (as successor in interest to Bank One Trust Company, N.A.), as Trustee (the “Trustee”), to which Indenture and all indentures
supplemental thereto reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and Holders of the Securities. The aggregate principal amount of
Securities that may be authenticated and delivered under the Indenture is unlimited. The Securities may be issued in one or more Series, which different Series may be issued in various aggregate principal amounts, may mature at different times, may
bear interest, if any, at different rates, may be subject to different redemption provisions, if any, may be subject to different sinking, purchase or analogous funds, if any, may be subject to different covenants and Events of Default and may
otherwise vary as in the Indenture provided. This Note is one of a Series designated as the “3.750% Senior Notes due 2027” of the Company (herein referred to as the “Notes”), initially issued in an aggregate principal amount of
one hundred million dollars ($100,000,000). The Company may from time to time, without notice to or the consent of the holders of the Notes, create and issue additional Notes ranking equally and ratably with the Notes and otherwise identical in all
respects, except for the issue price, the issue date, the payment of interest accruing prior to the issue date of such additional Notes and, in some cases, the first payment of interest following the issue date of such additional Notes and the
initial interest accrual date thereof, so that such further Notes shall be consolidated and form a single Series with the Notes. 
 The
Notes constitute senior unsecured debt obligations of the Company and rank equally in right of payment among themselves and with all other existing and future senior, unsecured and unsubordinated debt obligations of the Company. 

In accordance with and subject to the provisions of the Officers’ Certificate, the Holders of the Notes may require that the Company
repurchase the Notes if a Change of Control Triggering Event has occurred. 

 The Notes will be redeemable at the option of the Company at any time, in whole or from time to
time in part. If the Notes are redeemed before March 1, 2027 (three months prior to the maturity date of the Notes), the redemption price will equal accrued and unpaid interest on the principal amount being redeemed to the redemption date plus
the greater of (i) 100% of the principal amount of such Notes to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on such Notes being redeemed (not including any portion of such
payments of interest accrued to the date of redemption) discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Adjusted Treasury Rate, plus 25 basis points, as determined in good faith by the Company. If the Notes are redeemed on or after March 1, 2027 (three months prior to the maturity date of the Notes), the redemption price will equal
accrued and unpaid interest on the principal amount being redeemed to the redemption date plus 100% of the principal amount of such Notes to be redeemed. 

Notice of any redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each holder of the Notes to
be redeemed. Notwithstanding anything to the contrary in Section 4.4 of the Indenture, notice of any redemption of Notes occurring prior to March 1, 2027 need not set forth the redemption price but only the manner of calculation thereof.
The Company shall give the Trustee notice of the amount of the redemption price for any such redemption promptly after the calculation thereof and the Trustee shall have no responsibility for such calculation. In connection with any redemption,
unless the Company defaults in payment of the redemption price, on and after the date of redemption, interest will cease to accrue on the Notes or portions of the Notes called for redemption. 

“Adjusted Treasury Rate” means, with respect to any date of redemption, the rate per annum equal to the semiannual equivalent yield
to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such date of redemption. 

“Comparable Treasury Issue” means the United States Treasury security selected by the Quotation Agent as having a maturity
comparable to the remaining term of the Notes to be redeemed that would be used, at the time of selection and under customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such
Notes. 
 “Comparable Treasury Price” means, with respect to any date of redemption, the average of the Reference Treasury Dealer
Quotations for such date of redemption, after excluding the highest and lowest Reference Treasury Dealer Quotations, or if the Quotation Agent obtains fewer than four Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer
Quotations. 
 “Quotation Agent” means one of the Reference Treasury Dealers appointed by the Company. 

“Reference Treasury Dealer” means each of (i) J.P. Morgan Securities LLC a Primary Treasury Dealer (defined herein)
selected by U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC and their respective successors; and (ii) any other primary U.S. government 

 
securities dealer in New York City (each a “Primary Treasury Dealer”) selected by the Company. If any of the foregoing ceases to be a Primary Treasury Dealer, the Company must
substitute another Primary Treasury Dealer. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference
Treasury Dealer and any date of redemption, the average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the
Quotation Agent by the Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day before the date of redemption. 

The Notes will not be subject to, or have the benefit of, any sinking fund. 

In case an Event of Default (as defined in the Indenture) with respect to the Notes shall have occurred and be continuing, the principal
hereof may be declared, or shall become, due and payable, in the manner, with the effect and subject to certain conditions set forth in the Indenture. The Indenture provides that, subject to certain conditions therein set forth, any such declaration
of acceleration and its consequences may be waived by the Holders of a majority in principal amount of the outstanding Notes. 
 The
Indenture contains provisions permitting the Company and the Trustee, with the consent of the Holders of at least a majority in principal amount of the outstanding Notes to be affected thereby, as provided in the Indenture, to enter into
supplemental indentures adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture or modifying in any manner the rights of the Holders of the Notes; and the Indenture
also contains provisions allowing the Holders of at least a majority in principal amount of the outstanding Notes to waive compliance with any provision of the Indenture or this Note; provided, however, that no such supplemental
indenture or amendment or waiver may, without the consent of each Holder of Notes to be affected (a) reduce the amount of Notes whose Holders must consent to an amendment, supplement or waiver; (b) reduce the rate of, change the method of
determination of or extend the time for payment of interest (including default interest) on any Note; (c) reduce the principal or change the Stated Maturity of any Note; (d) make any change in the provisions concerning waivers of Events of
Default by Holders or the rights of Holders to recover the principal of or interest on any Note; (e) waive a Default or Event of Default in the payment of the principal of or interest on any Note (except a rescission of acceleration of the
Notes by the Holders of at least a majority in principal amount of the outstanding Notes and a waiver of the payment default that resulted from such acceleration); (f) make the principal of or interest on any Note payable in any currency other
than that stated in the Note; (g) make any change in Sections 7.8, 7.13, or 10.3 of the Indenture; or (h) waive a redemption payment with respect to any Note. The Indenture also provides that the Holders of not less than a majority in
principal amount of the outstanding Notes may on behalf of the Holders of all the Notes waive any past Default under the Indenture with respect to the Notes and its consequences, except a Default (i) in the payment of the principal of or
interest on any Note (provided, however, that the Holders of a majority in principal amount of the outstanding Notes may rescind an acceleration and its consequences, including any related payment default that resulted from such acceleration) or
(ii) in respect of a covenant or provision hereof which cannot be modified or amended without the consent of the Holder of each outstanding Notes affected. 

 
Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver
shall extend to any subsequent or other Default or impair any right consequent thereon. Any such waiver by the Holders of the Notes shall be conclusive and binding upon the Holder of this Note and upon all future Holders and owners of this Note and
of any Note issued upon the transfer hereof or in exchange or substitution hereof. 
 No reference herein to the Indenture and no provision
of this Note or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Note at the time, place and rate, and in the coin or currency, herein and in the
Indenture prescribed. 
 As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is
registrable by the Holder hereof on the register of the Company, upon due presentment of this Note for registration of transfer at the office of the Registrar, or at the office of any co-registrar duly
endorsed by, or accompanied by a written instrument of transfer in form satisfactory to, the Company and the Registrar or any such co-registrar duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Notes of authorized denominations and for an equal principal amount will be issued to the designated transferee or transferees. 

No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to
cover any transfer tax or similar governmental charge payable in connection therewith. 
 The Notes are issuable only as registered Notes
without coupons in denominations equal to $2,000 or an integral multiple of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Notes are exchangeable for new Notes of any authorized
denominations of an equal principal amount as requested by the Holder surrendering the same. 
 Notwithstanding the other provisions of the
Indenture, payment of the principal of and interest, if any, on any Note represented by a Global Security shall be made to the Holder thereof. The Company and the Trustee understand that interest on any such Global Security will be disbursed or
credited by the Depository to the persons having beneficial ownership thereof pursuant to a book-entry or other system maintained by the Depository. 

Except as provided in the foregoing paragraph, the Company, the Trustee and any Agent shall treat a person as the Holder of such principal
amount of outstanding Notes represented by a Global Security as shall be specified in a written statement of the Depository with respect to such Global Security, for purposes of obtaining any consents, declarations, waivers or directions required to
be given by the Holders pursuant to this Indenture. 
 The Holder of this Note shall not have recourse for the payment of principal of or
interest on this Note or for any claim based on this Note or the Indenture against any director, officer, employee or stockholder, as such, of the Company. By acceptance of this Note, the Holder waives and releases all such liability. 

 THE INDENTURE AND THIS NOTE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO THE CONFLICT OF LAWS PROVISIONS THEREOF. 
 All terms used but not defined in this Note which are defined in the Indenture shall have the
meanings assigned to them in the Indenture. 
 Unless the certificate of authentication has been executed by manual signature of the
Trustee, this Note shall not be valid. 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed manually or in
facsimile. 
 Dated: April 18, 2017 
  

			
	AUTOZONE, INC.
	
	 /s/ Brian L. Campbell

	Name:	 	Brian L. Campbell
	Title:	 	Vice President and Treasurer
	
	 /s/ William T. Giles

	Name:	 	William T. Giles
	Title:	 	Executive Vice President and Chief Financial Officer

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the 
 Series designated therein,
referred to 
 in the within-mentioned Indenture. 
 THE BANK OF
NEW YORK MELLON TRUST COMPANY, N.A. (AS SUCCESSOR IN INTEREST TO BANK ONE TRUST COMPANY, N.A.), as Trustee 
  

			
	By:	 	 /s/ Lawrence M. Kusch

		 	Authorized SignatoryExhibit 10.1

 

MUTUAL SEPARATION AND RELEASE AGREEMENT

 

This Mutual Separation and Release Agreement (the “Agreement”) is entered into by and between Catherine Powell, her heirs, legal representatives, legatees, successors and assigns (hereinafter referred to as “Employee”) and MTS Systems Corporation (hereinafter referred to as “MTS”).

 

WHEREAS, the Employee has provided loyal service to MTS, most recently as its Chief Legal Officer, and has entered into that certain Employee Agreement dated as of February 6, 2012, a copy of which is attached as Exhibit A (the “Employee Agreement”), which provides for certain protections to MTS during and after employment; and

 

WHEREAS, MTS and the Employee have engaged in discussions regarding the Employee’s role at MTS and the parties mutually agree that it is in the best interests of both the Employee and MTS that Employee will separate from MTS; and

 

WHEREAS, in exchange for the release and other obligations of the Employee set forth in this Agreement, which are in addition to those in the Employee Agreement, MTS will pay and provide the additional consideration set forth in the Agreement;

 

THEREFORE, in consideration of the mutual promises contained in this Agreement, MTS and Employee agree as follows:

 

1.                                      Separation Date  Employee’s employment with MTS will end May 5, 2017 (the “Separation Date”) and that Employee shall be on paid leave prior to the Separation Date.  The parties acknowledge that the separation is neither an involuntary or constructive discharge nor a resignation.

 

2.                                      MTS Obligations Subject to Paragraph 3 and the other conditions set forth herein, MTS agrees to provide Employee with the following, which are voluntary and outside of any plan or program of MTS:

 

a.                                      Severance Payment  $325,000.00 (the “Severance Payment”).  The Severance Payment shall be divided and paid in equal installments on each payroll pay date during the 12 month period beginning no later than 60 days after the Employee’s Separation Date. In the event that the 60-day period in this Paragraph 2(a) extends over two calendar years, then the first installment of the Severance Payment shall be made in the second calendar year. MTS shall have no obligation to pay the Employee the Severance Payment and the Employee agrees to repay any portion of such Severance Payment previously paid in excess of $10,000, if MTS establishes, by a preponderance of the evidence, that the Employee has violated the provisions of Paragraph 3 below.

 

b.                                      COBRA Coverage and Payment  If the Employee is eligible and applies for health continuation coverage under Code Section 4980B or other applicable law (“COBRA Coverage”),MTS will provide life, accident and health insurance benefits substantially similar to those that the Employee is receiving or entitled to receive immediately prior to the Separation Date and MTS shall subsidize the premium cost on a pre-tax basis, equal to MTS’s share of the premiums. The Employee shall be responsible for the payment of her portion of the premiums for such benefits at the same relative percentage of total premiums as the Employee paid prior to the Separation Date. The benefit provided under this Paragraph 2(b) shall continue for a period ending on the earlier of: (i) the end of the 12th month after the Separation Date, or (ii) the date COBRA coverage ends (the “Benefit Continuation Period”).  The MTS cost of providing such benefits shall be in addition to (and shall not reduce) the Severance Payment.  Benefits otherwise receivable by the Employee pursuant to this Paragraph 2(b) shall be reduced to the extent comparable benefits are actually received by the Employee during the Benefit Continuation Period, and any such benefits actually received by Employee shall be immediately reported to MTS.

 

 

c.                                       Accrued Benefits.  In addition to the benefits provided in Paragraph 2(a) and (b), the Employee shall be entitled to the following benefits and payments upon the Employee’s separation:

 

(i)                                     the payment of the Employee’s base salary as in effect at the time and any other form or type of compensation otherwise earned and payable prior to or on the Separation Date under the applicable plan or program;

 

(ii)                                  the right to receive all benefits accrued, vested and payable to the Employee in accordance with the terms under MTS pension and welfare benefit plans or any successor of such plan and any other plan or agreement relating to retirement benefits as of the Separation Date; and

 

(iii)                               the right to exercise and to receive all benefits in which the Employee was vested on the Separation Date, in accordance with the terms of all awards under any Company stock purchase and stock incentive plans or programs, or any successor to any such plans or programs.

 

3.                                      Employee Obligations In consideration of the benefits to be provided by MTS as set forth in Paragraph 2(a) and (b) and subject to the other conditions set forth herein, Employee agrees as follows:

 

a.                                      Waiver and Release of Claims.  Employee, for herself, her heirs, successors, assigns, and anyone who has or obtains any legal rights or claims through her, hereby fully waives, releases and discharges MTS, its past and present subsidiaries, affiliates, directors, officers, shareholders, agents, employees, successors, attorneys, insurers, indemnitors, and assigns (the “Releases”) from any and all known and unknown legal and equitable claims, actions, demands, damages, or liabilities of any nature, including without limitation, breach of contract, promissory estoppel, misrepresentation, wrongful or retaliatory discharge, defamation, obstruction of benefits and discrimination of any kind, under any applicable federal, state or local law, statute or regulation.  This release specifically includes, but is not limited to, rights or claims under the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, the Employee Retirement Income Security Act of 1974, the Americans With Disabilities Act, the Family Medical Leave Act, the National Labor Relations Act, the Minnesota Human Rights Act, the Michigan Elliott-Larson Civil Rights Act, the North Carolina Equal Employment Practices Act, the Ohio Civil Rights Act, and all other federal, state and local laws relating in any way to labor and employment, including, without limitation, all bias, human or civil rights, discrimination, retaliation, whistleblower, wage, hour, pay, or labor laws, and including, without limitation, any equitable, common law, and contract claims, including, but not limited to, wrongful or constructive termination, retaliation, breach of privacy, breach of contract, promissory estoppel, negligent infliction of emotional distress, intentional infliction of emotional distress, negligent or intentional interference with contract and defamation, severance under any plan or program, including but not limited to the MTS Executive Severance Plan, arising out of or in any way connected with her employment or separation from employment with MTS and existing prior to the date of her signature on this Agreement, except for claims to the benefits set forth in Section 2 of this Agreement.  Employee understands that she is not waiving any claims or rights which Employee may have which arise after Employee signs this Agreement.

 

Employee understands and agrees that this release of her claims is not intended to, and does not, (a) waive claims that cannot legally be waived, including, but not limited to, claims for workers’ compensation benefits or unemployment benefits, or (b) prevent or interfere with her ability/right to (i) provide truthful testimony if under subpoena or otherwise required by law to do so, or (ii) file any charge with or participate in any investigation or proceeding conducted by the Equal Employment Opportunity Commission, Securities and Exchange Commission, any state or municipal agency enforcing equal employment opportunity laws, or any other governmental entity (although Employee understands that this Agreement shall act as a total and complete bar to any recovery of monetary damages in connection with such a charge other than as permitted under federal securities laws).

 

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b.                                      Non-disclosure  In addition to her obligations under the Employee Agreement, Employee agrees not to at any time following her separation divulge or cause any third party to divulge or communicate or use for her benefit or the benefit of any person or entity outside MTS any of MTS’s Confidential Information.  Confidential Information includes but is not limited to MTS’s trade secrets, records, data, specifications, developments, secret inventions, research activity, processes, designs, sketches, drawings, bills of material, supplier lists, manufacturing processes, methods and equipment; customer, prospective customer and vendor lists, identities, contacts or information; short term and long range plans, all financial information, including sales, specific customer account sales, gross margin information, operating expense and information, competitive strategies and pricing information, procurement resources, information concerning MTS’s business or its manner of operation, personnel information, sales and marketing strategies and information, and any other confidential or technical information which she had or has obtained during her employment with MTS and which has not been made public or otherwise disclosed in a non-confidential manner. Confidential Information also includes any legally privileged information of MTS, including without limitation attorney work product, attorney-client communications,  legal strategies, and any information the Employee has acquired in confidence as an attorney. MTS intends to fully preserve the attorney-client privilege, work product protection and any other privilege or similar protection belonging to MTS, and nothing contained in this Agreement shall be construed as a waiver by MTS of its attorney-client privilege or work product protection or any other privilege or protection belonging to MTS.  Employee hereby understands and acknowledges her continuing obligation to maintain such attorney-client privilege under this Agreement as well as applicable attorney professional conduct rules. Employee will, within 5 business days after Employee signs this Agreement, return any and all materials and property in her possession and/or control (including such materials and property in the possession or control of any attorney or other agent acting on her behalf) (a) concerning her representation of MTS to which MTS is entitled under Rule 1.16(e) of the Minnesota Rules of Professional Conduct; and/or (b) which constitute Confidential Information of MTS.

 

Notwithstanding anything to the contrary herein or in any MTS compliance policy, nothing shall require nondisclosure of her wages permitted under Minn. Stat. § 181.172 or prohibit communicating or cooperating with any U.S. federal, state or local enforcement branch, agency or entity with respect to possible violations of any U.S. federal, state or local law or regulation, or otherwise making disclosure relating thereto to any such branch, agency or entity, provided that in each case (i) such communications and disclosures are consistent with applicable law and made in good faith and (ii) the information subject to such disclosure was not obtained by her through a communication that was subject to the attorney-client privilege unless such disclosure of that information would otherwise be permitted by an attorney pursuant to 17 CFR 205.3(d)(2), applicable attorney professional conduct rules, or otherwise.

 

c.                                       Non-competition. For one year following her Separation Date, the Employee will not render services, directly or indirectly, in connection with the design, implementation, development, manufacture, marketing, sale, merchandising, leasing, servicing or promotion of any product, process, system or service of any person or entity, in existence or under development, which is the same as or similar to or competes with, or has a usage allied to, a product, process, system, or service produced, developed, or used by the MTS to any person or entity, wherever located.

 

d.                                      Non-solicitation. For one year following her Separation Date, the Employee will refrain from the solicitation, either directly or indirectly, of all MTS (a) customers and prospective customers with whom Employee has had contact during the two years preceding her separation, (b) vendors and prospective vendors and (c) employees, for any purpose which would conflict with MTS’s interests.  A prospective customer or vendor is a person or entity with whom MTS has, as of her Separation Date, a reasonable opportunity of entering into a business relationship within the six-month period following her Separation Date.

 

e.                                       Post-employment cooperation.  Employee agrees that at the request of MTS, Employee will cooperate in connection with any and all matters (including actual or potential claims that have

 

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been asserted or threatened against MTS) that relate to alleged facts that arose during her employment at MTS. As part of her commitment to cooperate with MTS, Employee will promptly respond to all questions and cooperate with all inquiries from MTS and its agents and attorneys regarding such matters, as deemed necessary by MTS in its discretion. Her obligations may include, but are not limited to, answering questions, preparing truthful testimony, and providing truthful testimony in pending or future litigated matters.

 

f.                                        Non-disparagement  Employee agrees that, except in the context of an EEOC or other government agency investigation or proceeding but subject to the conditions as set forth in Paragraph 3(b) above, or unless she is called by subpoena to testify under oath, she will not make any derogatory, libeling, scandalous, disparaging, or defamatory comments in any respect regarding MTS or its predecessors, successors, assigns, parents, affiliates, subsidiaries, divisions and related companies, and their officers, directors, shareholders, agents, employees, and insurers, and she will not make any derogatory, libeling, scandalous, disparaging, or defamatory comments or recharacterization concerning the events which precipitated her separation from MTS or of this Agreement.  MTS, through its representatives in its senior management and members of its Board of Directors, will not make any derogatory, libeling, scandalous, disparaging or defamatory comments in any respect regarding Employee, the events which precipitated her separation from MTS or of this Agreement, except in the context of a government agency investigation or proceeding or under subpoena to testify under oath.  The parties acknowledge that this Agreement will be disclosed in appropriate filings required by MTS.  Except as required by applicable securities laws, the Employee may be permitted to review and comment on any initial internal and external communication regarding her separation and this Agreement.

 

4.                                      No Mitigation  Employee will not be required to mitigate the Severance Payment by seeking other employment or otherwise, nor shall the amount of the Severance Payment be reduced by any compensation earned by the Participant as the result of employment by another employer or by any of the benefits provided in Paragraph 2(c) after the Separation Date or otherwise except as provided in Paragraph 2(a).

 

5.                                      No Admission of Wrongdoing   Employee acknowledges that MTS denies it is responsible or legally obligated to Employee for any claims Employee believes she may have. This Agreement is not and shall not be construed or represented to be an admission of liability or wrongdoing of any kind on the part of MTS.  This Agreement and the payment required under it fully resolve any and all differences MTS and Employee may have regarding her employment and separation from employment with MTS.

 

6.                                      Construction  This Agreement supersedes all prior written and oral agreements, policies and understandings between MTS and Employee, except for the applicable provisions of the Employment Agreement that survive separation of employment, and Employee hereby affirms her obligations under the Employee Agreement, which continue to be fully effective and enforceable according to its terms.

 

7.                                      Governing Law  The terms of this Agreement will be governed by the laws of the State of Minnesota, and shall be construed and enforced thereunder.  Any dispute relating to or arising out of this Agreement shall be decided by a court of appropriate jurisdiction in Minnesota, which shall have exclusive jurisdiction over any such dispute. In addition to any other remedies available at law, MTS will be entitled to obtain injunctive or other equitable relief to restrain any breach or threatened breach or otherwise to specifically enforce the provisions of Section 3.

 

8.                                      Notice  Employee acknowledges that Employee has been informed pursuant to the Older Workers Benefit Protection Act that Employee: (a) has the right to consult with an attorney before signing this Agreement; (b) has forty-five (45) calendar days to consider whether to sign this Agreement; (c) has fifteen (15) calendar days after the date Employee signs this Agreement to revoke it and that this Agreement will not be effective until that revocation period has expired; (d) this Agreement does not waive rights or claims under the Age Discrimination in Employment Act that may arise after the date this Agreement is executed; (e) this Agreement does not waive any rights or claims that Employee may have that this Agreement failed to conform to the legal requirements under the Age Discrimination in Employment Act;

 

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and (f) Employee has been advised to consult with an attorney, that Employee has had an opportunity to consult with an attorney of her choice, and that Employee has fully and carefully read and understand all provisions of this Agreement.

 

9.                                      Opportunity for Review  Her signature below acknowledges that Employee has read this Agreement carefully and understands all its terms; that Employee has had a full opportunity to consult with an attorney before signing it; and that Employee is signing it knowingly and voluntarily. In signing this Agreement, Employee has not relied upon any representation by any MTS employee, agent or attorney.

 

10.                               Right to Rescind  Employee understands that Employee may change her mind and rescind this Agreement within fifteen (15) calendar days after signing it, by delivering a written notice to the MTS Systems Corporation, Attn: Bob Ries, MTS HR/Benefits, 14000 Technology Drive, Eden Prairie, MN, 55344, by hand or certified mail within the 15-day period.  If Employee delivers the rescission by mail, it must be postmarked within 15 calendar days after the date on which Employee signs this Agreement and sent by certified mail, return receipt requested. Employee also understands that this Agreement will become effective and enforceable only after the rescission period has expired.  If Employee fails to return this Agreement within 45 days of receipt or signs but later rescinds this Agreement, MTS will not be obligated to pay any benefits under this Agreement or otherwise following the termination of her employment.

 

 

	
/s/ Catherine L. Powell
    	
 
    	
April 18, 2017
    
	
Employee   Signature
    	
 
    	
Date
    

 

 

Accepted and approved by:

 

 

	
/s/ Jeffrey A. Graves
    	
 
    	
April 18, 2017
    
	
MTS Authorized   Signature
    	
 
    	
Date
    

 

5

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