Document:

EX-10.3

 Exhibit 10.3 

Execution Version 

PLEDGE AND SECURITY AGREEMENT 

THIS PLEDGE AND SECURITY AGREEMENT (as it may be amended, restated, supplemented or otherwise modified from time to time, this
“Security Agreement”) is entered into as of May 31, 2022 by and among THE GORMAN-RUPP COMPANY, an Ohio corporation (the “Borrower”), the Subsidiaries of the Borrower listed on the signature pages hereto
(together with the Borrower, the “Initial Grantors,” and together with any additional Subsidiaries, whether now existing or hereafter formed or acquired which become parties to this Security Agreement from time to time, in
accordance with the terms of the Credit Agreement (as defined below), by executing a Supplement hereto in substantially the form of Annex I, the “Grantors”), and JPMORGAN CHASE BANK, N.A., a national banking association, in
its capacity as administrative agent (the “Administrative Agent”) for itself and for the Secured Parties (as defined in the Credit Agreement identified below). 

PRELIMINARY STATEMENT 

The Borrower, certain of the other Grantors, the Administrative Agent and the Lenders from time to time party thereto are
entering into a Credit Agreement dated as of May 31, 2022 (as it may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”). Each Grantor is entering into this Security Agreement in
order to induce the Lenders to enter into and extend credit to the Borrower under the Credit Agreement and to secure the Secured Obligations that it has agreed to guarantee pursuant to Article X of the Credit Agreement. 

ACCORDINGLY, the Grantors and the Administrative Agent, on behalf of the Secured Parties, hereby agree as follows: 

ARTICLE I 
 DEFINITIONS

 1.1. Terms Defined in the Credit Agreement. All capitalized terms used herein and not otherwise defined shall
have the meanings assigned to such terms in the Credit Agreement. 
 1.2. Terms Defined in UCC. Terms defined in the
UCC which are not otherwise defined in this Security Agreement are used herein as defined in the UCC. 
 1.3. Definitions
of Certain Terms Used Herein. As used in this Security Agreement, in addition to the terms defined in the first paragraph hereof and in the Preliminary Statement, the following terms shall have the following meanings: 

“Account Control Agreement” means an agreement, in form and substance satisfactory to the Administrative
Agent, among any Grantor, a banking institution, securities intermediary or other Person holding such Grantor’s funds or securities, and the Administrative Agent with respect to collection and control of all deposits, securities, balances and
other assets held in a deposit account or securities account maintained by such Grantor with such banking institution, securities intermediary or other Person. 

“Accounts” shall have the meaning set forth in Article 9 of the UCC. 

“Applicable IP Office” means the United States Patent and Trademark Office, the United States Copyright
Office or any similar office or agency within or, solely in the case of Section 4.7, outside the United States. 

“Article” means a numbered article of this Security Agreement, unless another document is specifically
referenced. 

 “Chattel Paper” shall have the meaning set forth in Article
9 of the UCC. 
 “Collateral” shall have the meaning set forth in Article II. 

“Collateral Access Agreement” means any landlord waiver or other agreement, in form and substance
satisfactory to the Administrative Agent, between the Administrative Agent and any third party (including any bailee, consignee, customs broker, or other similar Person) in possession of any Collateral or any landlord of any real property where any
Collateral is located, as such landlord waiver or other agreement may be amended, restated, supplemented or otherwise modified from time to time. 

“Commercial Tort Claims” means the commercial tort claims as defined in Article 9 of the UCC, including each
commercial tort claim specifically described on Exhibit I. 
 “Confirmatory Grant” shall have the
meaning set forth in Section 3.11(e). 
 “Control” shall have the meaning set forth in Article 8 or,
if applicable, in Section 9-104, 9-105, 9-106 or 9-107 of Article 9 of the UCC. 

“Copyrights” means all rights, title and interests (and all related IP Ancillary Rights) arising under any
Requirement of Law in or relating to copyrights and all mask works, database and design rights, whether or not registered or published, all registrations and recordations thereof and all applications in connection therewith. 

“Default” means any event or condition which constitutes an Event of Default or which upon notice, lapse of
time or both would, unless cured or waived, become an Event of Default. 
 “Deposit Accounts” shall have
the meaning set forth in Article 9 of the UCC. 
 “Documents” shall have the meaning set forth in Article 9
of the UCC. 
 “Equipment” shall have the meaning set forth in Article 9 of the UCC. 

“Event of Default” means an event described in Section 5.1. 

“Exhibit” refers to a specific exhibit to this Security Agreement, unless another document is specifically
referenced. 
 “Farm Products” shall have the meaning set forth in Article 9 of the UCC. 

“Fixtures” shall have the meaning set forth in Article 9 of the UCC. 

“General Intangibles” shall have the meaning set forth in Article 9 of the UCC. 

“Goods” shall have the meaning set forth in Article 9 of the UCC. 

“Industrial Designs” means all right, title and interest (and all related IP Ancillary Rights) arising under
any Requirement of Law in or relating to registered industrial designs and industrial design applications. 

“Insolvency Event” shall have the meaning set forth in Section 7.22. 

“Instruments” shall have the meaning set forth in Article 9 of the UCC. 

“Intellectual Property” means all rights, title and interests in or relating to intellectual property and
industrial property arising under any Requirement of Law and all IP Ancillary Rights relating thereto, including 

  
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all Copyrights, Patents, Industrial Designs, Software, Trademarks, Internet Domain Names, Trade Secrets and IP Licenses. 

“Intercompany Indebtedness” shall have the meaning set forth in Section 7.22. 

“Internet Domain Name” means all right, title and interest (and all related IP Ancillary Rights) arising
under any Requirement of Law in or relating to internet domain names. 
 “Inventory” shall have the meaning
set forth in Article 9 of the UCC. 
 “Investment Property” shall have the meaning set forth in Article 9
of the UCC. 
 “IP Ancillary Rights” means, with respect to any Intellectual Property, as applicable, all
foreign counterparts to, and all divisionals, reversions, continuations, continuations-in-part, reissues, reexaminations, renewals and extensions of, such Intellectual
Property and all income, royalties, proceeds and Liabilities at any time due or payable or asserted under or with respect to any of the foregoing or otherwise with respect to such Intellectual Property throughout the world, including all rights to
sue or recover at law or in equity for any past, present or future infringement, misappropriation, dilution, violation or other impairment thereof, and, in each case, all rights to obtain any other IP Ancillary Right throughout the world. 

“IP License” means all contractual obligations (and all related IP Ancillary Rights), whether written or
oral, granting any right, title and interest in or relating to any Intellectual Property. 
 “Letter-of-Credit Rights” shall have the meaning set forth in Article 9 of the UCC. 

“Liabilities” means all claims, actions, suits, judgments, damages, losses, liability, obligations,
responsibilities, fines, penalties, sanctions, costs, fees, Taxes, commissions, charges, disbursements and expenses (including those incurred upon any appeal or in connection with the preparation for and/or response to any subpoena or request for
document production relating thereto), in each case of any kind or nature (including interest accrued thereon or as a result thereto and fees, charges and disbursements of financial, legal and other advisors and consultants), whether joint or
several, whether or not indirect, contingent, consequential, actual, punitive, treble or otherwise. 
 “Material
Intellectual Property” means Intellectual Property that is owned by or licensed to a Grantor and material to the conduct of such Grantor’s business. 

“Obligor” shall have the meaning set forth in Section 7.22. 

“Patents” means all rights, title and interests (and all related IP Ancillary Rights) arising under any
Requirement of Law in or relating to letters patent and applications therefor. 
 “Pledged Collateral”
means all Instruments, Securities and other Investment Property of the Grantors, whether or not physically delivered to the Administrative Agent pursuant to this Security Agreement. 

“Receivables” means the Accounts, Chattel Paper, Documents, Investment Property, Instruments and any other
rights or claims to receive money which are General Intangibles or which are otherwise included as Collateral. 

“Section” means a numbered section of this Security Agreement, unless another document is specifically
referenced. 
 “Securities Account” has the meaning set forth in Article 8 of the UCC. 

  
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 “Security” shall have the meaning set forth in Article 8 of
the UCC. 
 “Security Agreement Supplement” means any Security Agreement Supplement to this Security
Agreement in substantially the form of Annex I hereto executed by an entity that becomes a Grantor under this Security Agreement after the date hereof. 

“Software” means (a) all computer programs, including source code and object code versions, (b) all
data, databases and compilations of data, whether machine readable or otherwise, and (c) all documentation, training materials and configurations related to any of the foregoing. 

“Stock Rights” means (a) all dividends, instruments or other distributions and any other right or
property which the Grantors shall receive or shall become entitled to receive for any reason whatsoever with respect to, in substitution for or in exchange for any Equity Interest constituting Collateral, any right to receive an Equity Interest and
any right to receive earnings, in which the Grantors now have or hereafter acquire any right, issued by an issuer of such Equity Interest, and (b) in connection with the pledge of Equity Interests of a Person consisting of membership interests
in a limited liability company or partnership interests, (i) all rights of the applicable Grantor (whether as a member, a manager, a partner, in its individual capacity or otherwise) under any operating agreement, any partnership agreement or
any similar document of such Person (in any such case, as it may be amended, restated, supplemented or otherwise modified from time to time), including, without limitation, the right to vote, obtain information or participate in the management of
such Person’s business, (ii) all options and warrants or other rights entitling the applicable Grantor to purchase Equity Interests in such Person, (iii) all capital of the applicable Grantor in such Person, including without
limitation its capital account and its interest in (or allocation of) the profits, losses, income, gains, deductions, credits or similar items of such Person, (iv) all distributions, dividends, cash, instruments, Investment Property, General
Intangibles and other property from time to time received, receivable or otherwise distributed to the applicable Grantor in respect of, or in exchange for, any or all of the foregoing, and (v) all other proceeds of the foregoing. 

“Supporting Obligations” shall have the meaning set forth in Article 9 of the UCC. 

“Trade Secrets” means all right, title and interest (and all related IP Ancillary Rights) arising under any
Requirement of Law in or relating to proprietary, confidential and/or non-public information, however documented, including but not limited to confidential ideas,
know-how, concepts, methods, processes, formulae, reports, data, customer lists, mailing lists, business plans and all other trade secrets. 

“Trademarks” means all rights, title and interests (and all related IP Ancillary Rights) arising under any
Requirement of Law in or relating to trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service marks, logos and other source or business identifiers and, in each case, all goodwill
associated therewith, all registrations and recordations thereof and all applications in connection therewith. 

“UCC” means the Uniform Commercial Code, as in effect from time to time, of the State of New York or
of any other state the laws of which are required as a result thereof to be applied in connection with the attachment, perfection or priority of, or remedies with respect to, Administrative Agent’s or any other Secured Party’s Lien on any
Collateral. 
 The foregoing definitions shall be equally applicable to both the singular and plural forms of the defined
terms. 
 ARTICLE II 

GRANT OF SECURITY INTEREST 

Each Grantor hereby pledges, assigns and grants to the Administrative Agent, on behalf of and for the benefit of the Secured
Parties, a security interest in all of its right, title and interest in, to and under the following 

  
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assets of such Grantor, whether now owned by or owing to, or hereafter acquired by or arising in favor of, such Grantor (including under any trade name or derivations thereof), and whether owned
or consigned by or to, or leased from or to, such Grantor, and regardless of where located (all of which will be collectively referred to as the “Collateral”), which Collateral is intended to constitute all personal property and
other assets of such Grantor: 
  

	 	(i)	 all Accounts; 

  

	 	(ii)	 all Chattel Paper; 

 

	 	(iii)	 all Copyrights, Patents and Trademarks; 

 

	 	(iv)	 all Documents; 

  

	 	(v)	 all Equipment; 

  

	 	(vi)	 all Fixtures; 

  

	 	(vii)	 all General Intangibles; 

 

	 	(viii)	 all Goods; 

  

	 	(ix)	 all Instruments; 

  

	 	(x)	 all Inventory; 

  

	 	(xi)	 all Investment Property; 

 

	 	(xii)	 all cash or cash equivalents; 

 

	 	(xiii)	 all letters of credit,
Letter-of-Credit Rights and Supporting Obligations; 

  

	 	(xiv)	 all Deposit Accounts with any bank or other financial institution; 

 

	 	(xv)	 all Commercial Tort Claims; 

 

	 	(xvi)	 all Farm Products; 

 

	 	(xvii)	 all Stock Rights; and 

 

	 	(xviii)	 all accessions to, substitutions for and replacements, proceeds (including Stock Rights), insurance proceeds
and products of the foregoing, together with all books and records, customer lists, credit files, computer files, programs, printouts and other computer materials and records related thereto and any General Intangibles at any time evidencing or
relating to any of the foregoing; 

 to secure the prompt and complete payment and performance of the Secured Obligations.
Notwithstanding the 
 foregoing or anything herein or in any Loan Document to the contrary, in no event will the Collateral include 

any Excluded Property at any time. 

ARTICLE III 

REPRESENTATIONS AND WARRANTIES 

Each of the Initial Grantors represents and warrants, and each Grantor that becomes a party to this Security Agreement
pursuant to the execution of a Security Agreement Supplement represents and warrants (after giving effect to supplements, if any, to each of the Exhibits hereto with respect to such subsequent Grantor as attached to such Security Agreement
Supplement), to the Administrative Agent and the Secured Parties that: 
 3.1. Title, Authorization, Validity,
Enforceability, Perfection and Priority. Such Grantor has good and valid rights in or the power to transfer the Collateral owned by it and title to the Collateral with respect to which it has purported to grant a security interest hereunder,
free and clear of all Liens except for Liens permitted under Section 4.1(e), and has full power and authority to grant to the Administrative Agent the security interest in such 

  
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Collateral pursuant hereto. The execution and delivery by such Grantor of this Security Agreement has been duly authorized by proper organizational proceedings of such Grantor, and this Security
Agreement constitutes a legal valid and binding obligation of such Grantor and creates a security interest which is enforceable against such Grantor in all Collateral it now owns or hereafter acquires, subject to applicable bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. When financing statements
have been filed in the appropriate offices against such Grantor in the locations listed on Exhibit H, the Administrative Agent will have a fully perfected first priority security interest in the Collateral owned by such Grantor in which a
security interest may be perfected by the filing of a financing statement under the UCC, subject only to Liens permitted under Section 4.1(e). 

3.2. Type and Jurisdiction of Organization, Organizational and Identification Numbers. The type of entity of such
Grantor, its state of organization, the organizational number issued to it by its state of organization and its federal employer identification number are set forth on Exhibit A. 

3.3. Principal Location. Such Grantor’s mailing address and the location of its place of business (if it has only
one) or its chief executive office (if it has more than one place of business), is disclosed in Exhibit A; such Grantor has no other places of business except those set forth in Exhibit A. 

3.4. Collateral Locations. All of such Grantor’s locations where Collateral is located are listed on Exhibit
A except with respect to castings, which are located at various foundries where Inventory is manufactured. All of said locations are owned by such Grantor except for locations (i) which are leased by such Grantor as lessee and designated in
Part VII(b) of Exhibit A and (ii) at which Inventory is held in a public warehouse or is otherwise held by a bailee or on consignment by such Grantor as designated in Part VII(c) of Exhibit A. 

3.5. Deposit Accounts and Securities Accounts. All of such Grantor’s Deposit Accounts and Securities Accounts,
other than Deposit Accounts and Securities Accounts that constitute Excluded Property, are listed on Exhibit B. 

3.6. Exact Names. Such Grantor’s name in which it has executed this Security Agreement is the exact name as it
appears in such Grantor’s organizational documents, as amended, as filed with such Grantor’s jurisdiction of organization. Such Grantor has not, during the past five years, been known by or used any other corporate or fictitious name, or
been a party to any merger or consolidation, or been a party to any acquisition. 
 3.7.
Letter-of-Credit Rights and Chattel Paper. Exhibit C lists all
Letter-of-Credit Rights and Chattel Paper of such Grantor with a face amount in excess of $100,000 individually or $500,000 in the aggregate for all such Letter-of-Credit Rights and Chattel Paper. All action by such Grantor necessary or desirable to protect and perfect the Administrative Agent’s Lien on each item listed on
Exhibit C (including the delivery of all originals and the placement of a legend on all Chattel Paper as required hereunder) has been duly taken. The Administrative Agent will have a fully perfected first priority security interest in the
Collateral listed on Exhibit C, subject only to Liens permitted under Section 4.1(e). 
 3.8. Accounts and
Chattel Paper. 
 (a) The names of the obligors, amounts owing, due dates and other information with respect to the
Accounts and Chattel Paper owned by such Grantor are and will be correctly stated in all records of such Grantor relating thereto and in all invoices with respect thereto furnished to the Administrative Agent by such Grantor from time to time. As of
the time when each Account or each item of Chattel Paper arises, such Grantor shall be deemed to have represented and warranted that such Account or Chattel Paper, as the case may be, and all records relating thereto, are genuine and in all respects
what they purport to be. 
 (b) With respect to its Accounts, (i) all Accounts represent bona fide sales of Inventory
or rendering of services to Account Debtors in the ordinary course of such Grantor’s business and are not evidenced 

  
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by a judgment, Instrument or Chattel Paper; (ii) there are no setoffs, claims or disputes existing or asserted with respect thereto and such Grantor has not made any agreement with any
Account Debtor for any extension of time for the payment thereof, any compromise or settlement for less than the full amount thereof, any release of any Account Debtor from liability therefor, or any deduction therefrom except a discount or
allowance allowed by such Grantor in the ordinary course of its business for prompt payment and disclosed to the Administrative Agent; (iii) to such Grantor’s knowledge, there are no facts, events or occurrences which in any way impair the
validity or enforceability thereof or could reasonably be expected to reduce the amount payable thereunder as shown on such Grantor’s books and records and any invoices and statements with respect thereto; (iv) such Grantor has not
received any notice of proceedings or actions which are threatened or pending against any Account Debtor which might result in any adverse change in such Account Debtor’s financial condition; and (v) such Grantor has no knowledge that any
Account Debtor has become insolvent or is generally unable to pay its debts as they become due. 
 (c) In addition, with
respect to all of its Accounts, (i) the amounts shown on all, invoices and statements with respect thereto are actually and absolutely owing to such Grantor as indicated thereon and are not in any way contingent, and (ii) to such
Grantor’s knowledge, all Account Debtors have the capacity to contract. 
 3.9. Inventory. With respect to any
of its Inventory, (a) such Inventory (other than Inventory in transit) is located at one of such Grantor’s locations set forth on Exhibit A, except with respect to castings, which are located at various foundries where Inventory is
manufactured, (b) no Inventory (other than Inventory in transit) is now, or shall at any time or times hereafter be stored at any other location except as permitted by Section 4.1(g), (c) such Grantor has good, indefeasible and
merchantable title to such Inventory and such Inventory is not subject to any Lien or security interest or document whatsoever except for the security interest granted to the Administrative Agent hereunder, for the benefit of the Administrative
Agent and Secured Parties, and Permitted Encumbrances, (d) such Inventory is of good and merchantable quality, free from any defects, (e) such Inventory is not subject to any licensing, patent, royalty, trademark, trade name or copyright
agreements with any third parties which would require any consent of any third party upon Disposition of that Inventory or the payment of any monies to any third party upon such Disposition, (f) such Inventory has been produced in accordance
with the Federal Fair Labor Standards Act of 1938, as amended, and all rules, regulations and orders thereunder, and (g) the completion of manufacture or Disposition of such Inventory by the Administrative Agent following an Event of Default
shall not require the consent of any Person and shall not constitute a breach or default under any contract or agreement to which such Grantor is a party or to which such property is subject. 

3.10. Intellectual Property. 

(a) Exhibit D contains a complete and accurate listing of the following Intellectual Property such Grantor owns,
licenses or otherwise has the right to use: (i) Intellectual Property that is registered or subject to applications for registration, (ii) Internet Domain Names and (iii) Material Intellectual Property and material Software,
separately identifying that owned and licensed to such Grantor and including for each of the foregoing items (1) the owner, (2) the title, (3) the jurisdiction in which such item has been registered or otherwise arises or in which an
application for registration has been filed, (4) as applicable, the registration or application number and registration or application date and (5) any IP Licenses or other rights (including franchises) granted by such Grantor with respect
thereto. Such Grantor owns directly or is entitled to use, by license or otherwise, all Intellectual Property necessary for the conduct of such Grantor’s business as currently conducted. All of the U.S. registrations, applications for
registration or applications for issuance of the Intellectual Property are in good standing and are recorded or in the process of being recorded in the name of such Grantor. 

(b) On the Effective Date, all Material Intellectual Property owned by such Grantor is valid, in full force and effect,
subsisting, unexpired and enforceable, and no Material Intellectual Property has been abandoned. None of the following shall limit or impair the ownership, use, validity or enforceability of, or any rights of such Grantor in, any Material
Intellectual Property: (i) the consummation of the transactions contemplated by any Loan Documents or (ii) any holding, decision, judgment or order rendered by any Governmental Authority. There are no pending (or, to the knowledge of such
Grantor, threatened) actions, 

  
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investigations, suits, proceedings, audits, claims, demands, orders or disputes challenging the ownership, use, validity, enforceability of, or such Grantor’s rights in, any Material
Intellectual Property of such Grantor. To such Grantor’s knowledge, no Person has been or is infringing, misappropriating, diluting, violating or otherwise impairing any Intellectual Property of such Grantor. 

(c) Such Grantor has taken or caused to be taken steps so that none of its Intellectual Property, the value of which to such
Grantor is contingent upon maintenance of the confidentiality thereof, has been disclosed by such Grantor to any Person other than employees, contractors, customers, representatives and agents of such Grantor who are parties to customary
confidentiality and nondisclosure agreements with such Grantor. Each employee and contractor of such Grantor involved in development or creation of any Material Intellectual Property has assigned any and all inventions and ideas of such Person in
and to such Intellectual Property to such Grantor. 
 (d) No settlement or consents, covenants not to sue, nonassertion
assurances, or releases have been entered into by such Grantor or exist to which such Grantor is bound that adversely affect its rights to own or use any Intellectual Property except as could not be reasonably expected to result in a Material
Adverse Effect, in each case individually or in the aggregate. 
 (e) This Security Agreement is effective to create a valid
and continuing Lien on such Copyrights, IP Licenses, Patents and Trademarks and, upon filing with the Applicable IP Office of the Confirmatory Grant of Security Interest in Copyrights, the Confirmatory Grant of Security Interest in Patents and the
Confirmatory Grant of Security Interest in Trademarks (each, a “Confirmatory Grant”), and the filing of appropriate financing statements in the jurisdictions listed in Exhibit H hereto, all action necessary or desirable to
protect and perfect the security interest in, to and on such Grantor’s Patents, Trademarks, Copyrights, or IP Licenses have been taken and such perfected security interest is enforceable as such as against any and all creditors of and
purchasers from such Grantor. Such Grantor has no interest in any Copyright that is necessary in connection with the operation of such Grantor’s business, except for those Copyrights identified in Exhibit D attached hereto which have
been registered with the United States Copyright Office. 
 3.11. Filing Requirements. None of the Equipment owned by
such Grantor is covered by any certificate of title. None of the Collateral owned by such Grantor is of a type for which security interests or liens may be perfected by filing under any federal statute except for Patents, Trademarks and Copyrights
held by such Grantor and described in Exhibit D. The legal description, county and street address of each property on which any Fixtures owned by such Grantor are located is set forth in Exhibit F together with the name and address of
the record owner of each such property. 
 3.12. No Financing Statements, Security Agreements. No financing statement
or security agreement describing all or any portion of the Collateral which has not lapsed or been terminated (by a filing authorized by the secured party in respect thereof) naming such Grantor as debtor has been filed or is of record in any
jurisdiction except for financing statements or security agreements (a) naming the Administrative Agent on behalf of the Secured Parties as the secured party and (b) in respect of other Liens permitted under Section 6.02 of the Credit
Agreement; provided that nothing herein shall be deemed to constitute an agreement to subordinate any of the Liens of the Administrative Agent under the Loan Documents to any Liens otherwise permitted under Section 6.02 of the Credit
Agreement. 
 3.13. Pledged Collateral. 

(a) Exhibit G sets forth a complete and accurate list of all of the Pledged Collateral owned by such Grantor. Such
Grantor is the direct, sole beneficial owner and sole holder of record of the Pledged Collateral listed on Exhibit G as being owned by it, free and clear of any Liens, except for the security interest granted to the Administrative Agent for
the benefit of the Secured Parties hereunder and Permitted Encumbrances. Such Grantor further represents and warrants that (i) all Pledged Collateral owned by it constituting an Equity Interest has been (to the extent such concepts are relevant
with respect to such Pledged Collateral) duly authorized, 

  
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validly issued, are fully paid and non-assessable, (ii) with respect to any certificates delivered to the Administrative Agent representing an Equity
Interest, either such certificates are Securities as defined in Article 8 of the UCC as a result of actions by the issuer or otherwise, or, if such certificates are not Securities, such Grantor has so informed the Administrative Agent so that the
Administrative Agent may take steps to perfect its security interest therein as a General Intangible, (iii) to the extent requested by the Administrative Agent, all such Pledged Collateral held by a securities intermediary is covered by an
Account Control Agreement pursuant to which the Administrative Agent has Control and (iv) all Pledged Collateral which represents Indebtedness owed to such Grantor has been duly authorized, authenticated or issued and delivered by the issuer of
such Indebtedness, is the legal, valid and binding obligation of such issuer and such issuer is not in default thereunder. 

(b) In addition, (i) none of the Pledged Collateral owned by it has been issued or transferred in violation of the
securities registration, securities disclosure or similar laws of any jurisdiction to which such issuance or transfer may be subject, (ii) no options, warrants, calls or commitments of any character whatsoever (A) exist relating to such
Pledged Collateral or (B) obligate the issuer of any Equity Interest included in the Pledged Collateral to issue additional Equity Interests, and (iii) no consent, approval, authorization, or other action by, and no giving of notice,
filing with, any governmental authority or any other Person is required for the pledge by such Grantor of such Pledged Collateral pursuant to this Security Agreement or for the execution, delivery and performance of this Security Agreement by such
Grantor, or for the exercise by the Administrative Agent of the voting or other rights provided for in this Security Agreement or for the remedies in respect of the Pledged Collateral pursuant to this Security Agreement, except as may be required in
connection with such Disposition by laws affecting the offering and sale of securities generally. 
 (c) Except as set forth
in Exhibit G, such Grantor owns 100% of the issued and outstanding Equity Interests which constitute Pledged Collateral owned by it and none of the Pledged Collateral which represents Indebtedness owed to such Grantor is subordinated in right
of payment to other Indebtedness or subject to the terms of an indenture. 
 ARTICLE IV 

COVENANTS 

From the date of this Security Agreement and thereafter until this Security Agreement is terminated pursuant to the terms
hereof, each Initial Grantor party hereto as of the date hereof agrees, and from and after the effective date of any Security Agreement Supplement applicable to any Grantor (and after giving effect to supplements, if any, to each of the Exhibits
hereto with respect to such subsequent Grantor as attached to such Security Agreement Supplement) and thereafter until this Security Agreement is terminated pursuant to the terms hereof, each such additional Grantor agrees that: 

4.1. General. 

(a) Collateral Records. Each Grantor will maintain complete and accurate books and records with respect to the
Collateral owned by it, and furnish to the Administrative Agent with sufficient copies for each of the Lenders, such reports relating to such Collateral as the Administrative Agent shall from time to time request. 

(b) Authorization to File Financing Statements and Other Actions; Defense of Title. Each Grantor hereby authorizes the
Administrative Agent to file, and if requested will deliver to the Administrative Agent, all financing statements describing the Collateral owned by such Grantor and other documents and take such other actions as may from time to time be requested
by the Administrative Agent in order to maintain a first priority perfected security interest in and, if applicable, Control of, the Collateral owned by such Grantor. Any financing statement filed by the Administrative Agent may be filed in any
filing office in any UCC jurisdiction and may (i) indicate such Grantor’s Collateral (1) as all assets of the Grantor or words of similar effect, including, without limitation, describing such property as “all assets of the
debtor, whether now owned by or owing to, or 

  
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hereafter acquired by or arising in favor of, debtor (including under any trade name or derivations thereof), and whether owned or consigned by or to, or leased from or to, debtor, and regardless
of where located, including all accessions to, substitutions for and replacements, proceeds, insurance proceeds and products thereof,” regardless of whether any particular asset comprised in the Collateral falls within the scope of Article 9 of
the UCC of such jurisdiction, or (2) by any other description which reasonably approximates the description contained in this Security Agreement, and (ii) contain any other information required by part 5 of Article 9 of the UCC for the
sufficiency or filing office acceptance of any financing statement or amendment, including (A) whether such Grantor is an organization, the type of organization and any organization identification number issued to such Grantor, and (B) in
the case of a financing statement filed as a fixture filing or indicating such Grantor’s Collateral as as-extracted collateral or timber to be cut, a sufficient description of real property to which the
Collateral relates. Such Grantor also agrees to furnish any such information described in the foregoing sentence to the Administrative Agent promptly upon request. Such Grantor also ratifies its authorization for the Administrative Agent to have
filed in any UCC jurisdiction any initial financing statements or amendments thereto if filed prior to the date hereof. 

(c) Further Assurances. Such Grantor will, if so requested by the Administrative Agent, furnish to the Administrative
Agent, as often as the Administrative Agent requests, statements and schedules further identifying and describing the Collateral owned by it and such other reports and information in connection with its Collateral as the Administrative Agent may
reasonably request, all in such detail as the Administrative Agent may specify. Such Grantor also agrees to take any and all actions necessary to defend title to the Collateral against all persons and to defend the security interest of the
Administrative Agent in its Collateral and the priority thereof against any Lien not expressly permitted hereunder. 
 (d)
Disposition of Collateral. Such Grantor will not Dispose of the Collateral owned by such Grantor except for Dispositions specifically permitted pursuant to Section 6.05 of the Credit Agreement. 

(e) Liens. Such Grantor will not create, incur, or suffer to exist any Lien on the Collateral except (i) the
security interest created by this Security Agreement, and (ii) other Liens permitted under Section 6.02 of the Credit Agreement. 

(f) Other Financing Statements. Such Grantor will not authorize the filing of any financing statement naming it as
debtor covering all or any portion of the Collateral owned by it, except for financing statements (i) naming the Administrative Agent on behalf of the Secured Parties as the secured party, and (ii) in respect of other Liens permitted under
Section 6.02 of the Credit Agreement. Such Grantor acknowledges that it is not authorized to file any financing statement or amendment or termination statement with respect to any financing statement filed by or on behalf of the Administrative
Agent without the prior written consent of the Administrative Agent, subject to such Grantor’s rights under Section 9-509(d)(2) of the UCC. 

(g) Locations. Such Grantor will not (i) maintain any Collateral owned by it at any location other than those
locations listed on Exhibit A or disclosed to Administrative Agent pursuant to clause (ii) of this Section 4.1(g), except with respect to castings, which are located at various foundries where Inventory is manufactured
(ii) otherwise change, or add to, such locations without the Administrative Agent’s prior written consent as required by the Credit Agreement (and if the Administrative Agent gives such consent, such Grantor will concurrently therewith
obtain a Collateral Access Agreement for each such location to the extent requested by the Administrative Agent or otherwise required by the Credit Agreement), or (iii) change its principal place of business or chief executive office from the
location identified on Exhibit A, other than as permitted by the Credit Agreement. 
 (h) Compliance with
Terms. Such Grantor will perform and comply with all obligations in respect of the Collateral owned by it and all agreements to which it is a party or by which it is bound relating to such Collateral. 

  
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 4.2. Receivables. 

(a) Certain Agreements on Receivables. Such Grantor will not make or agree to make any discount, credit, rebate or
other reduction in the original amount owing on a Receivable or accept in satisfaction of a Receivable less than the original amount thereof, except that, prior to the occurrence and continuation of an Event of Default, such Grantor may reduce the
amount of Accounts arising from the sale of Inventory in accordance with its present policies and in the ordinary course of business and as otherwise permitted under the Credit Agreement. 

(b) Collection of Receivables. Except as otherwise provided in this Security Agreement, such Grantor will collect and
enforce, at such Grantor’s sole expense, all amounts due or hereafter due to such Grantor under the Receivables owned by it. 

(c) Delivery of Invoices. Such Grantor will deliver to the Administrative Agent promptly upon its request after the
occurrence and during the continuation of an Event of Default duplicate invoices with respect to each Account owned by it bearing such language of assignment as the Administrative Agent shall specify. 

(d) Disclosure of Counterclaims on Receivables. If (i) any material discount, credit or agreement to make a rebate
or to otherwise reduce the amount owing on any Receivable owned by such Grantor exists or (ii) if, to the knowledge of such Grantor, any material dispute, setoff, claim, counterclaim or defense exists or has been asserted or threatened with
respect to any such Receivable, such Grantor will promptly disclose such fact to the Administrative Agent in writing. 
 (e)
Electronic Chattel Paper. Upon the request of the Administrative Agent, such Grantor shall take all steps necessary to grant the Administrative Agent Control of all electronic chattel paper in accordance with the UCC and all
“transferable records” as defined in each of the Uniform Electronic Transactions Act and the Electronic Signatures in Global and National Commerce Act. 

4.3. Inventory and Equipment. 

(a) Maintenance of Goods. Such Grantor will do all things necessary to maintain, preserve, protect and keep its
Inventory and the Equipment in good repair and working order and saleable condition (except for damaged or defective goods arising in the ordinary course of such Grantor’s business and except for ordinary wear and tear in respect of the
Equipment). 
 (b) [Reserved]. 

(d) Equipment. Such Grantor shall not permit any Equipment to become a fixture with respect to real property or to
become an accession with respect to other personal property with respect to which real or personal property the Administrative Agent does not have a Lien. Such Grantor will not, without the Administrative Agent’s prior written consent, alter or
remove any identifying symbol or number on any of such Grantor’s Equipment constituting Collateral. 
 (e)
[Reserved]. 
 4.4. Delivery of Instruments, Securities, Chattel Paper and Documents. Such Grantor will
(a) deliver to the Administrative Agent promptly upon execution of this Security Agreement the originals of all Chattel Paper with a face amount in excess of $100,000 individually or $500,000 in the aggregate for all such Chattel Paper,
Securities (to the extent certificated) and Instruments, in each case, with a face amount in excess of $100,000 individually or $500,000 in the aggregate for all such Securities or Instruments, constituting Collateral owned by it (if any then
exist), (b) hold in trust for the Administrative Agent upon receipt and promptly thereafter deliver to the Administrative Agent any Chattel Paper with a face amount in excess of $100,000 individually or $500,000

  
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in the aggregate for all such Chattel Paper, Securities and Instruments, in each case, with a face amount in excess of $100,000 individually or $500,000 in the aggregate for all such Securities
or Instruments, constituting Collateral and (c) upon the Administrative Agent’s request, deliver to the Administrative Agent (and thereafter hold in trust for the Administrative Agent upon receipt and immediately deliver to the
Administrative Agent) any Document evidencing or constituting Collateral, in each case, together with endorsements, allonges, acknowledgements and other customary instruments of transfer executed in blank. 

4.5. Uncertificated Pledged Collateral. Such Grantor will permit the Administrative Agent from time to time to cause
the appropriate issuers (and, if held with a securities intermediary, such securities intermediary) of uncertificated securities or other types of Pledged Collateral owned by it not represented by certificates to mark their books and records with
the numbers and face amounts of all such uncertificated securities or other types of Pledged Collateral not represented by certificates and all rollovers and replacements therefor to reflect the Lien of the Administrative Agent granted pursuant to
this Security Agreement. With respect to any Pledged Collateral owned by it, upon the request of the Administrative Agent, such Grantor will take any actions necessary to cause (a) the issuers of uncertificated securities which are Pledged
Collateral and (b) any securities intermediary which is the holder of any such Pledged Collateral, to cause the Administrative Agent to have and retain Control over such Pledged Collateral. Without limiting the foregoing, upon the request of
the Administrative Agent, such Grantor will, with respect to any such Pledged Collateral held with a securities intermediary, cause such securities intermediary to enter into an Account Control Agreement with the Administrative Agent giving the
Administrative Agent Control. 
 4.6. Pledged Collateral. 

(a) Changes in Capital Structure of Issuers. Such Grantor will not (i) permit or suffer any issuer of an Equity
Interest constituting Pledged Collateral owned by it to dissolve, merge, liquidate, retire any of its Equity Interests or other Instruments or Securities evidencing ownership, reduce its capital, sell or encumber all or substantially all of its
assets or merge or consolidate with any other entity or (ii) vote any such Pledged Collateral in favor of any of the foregoing, in each case, except as otherwise permitted under the Credit Agreement. 

(b) Issuance of Additional Securities. Such Grantor will not permit or suffer the issuer of an Equity Interest
constituting Pledged Collateral owned by it to issue additional Equity Interests, any right to receive the same or any right to receive earnings, except to such Grantor or as otherwise permitted under the Credit Agreement. 

(c) Registration of Pledged Collateral. Such Grantor will permit any registerable Pledged Collateral to be registered
in the name of the Administrative Agent or its nominee at any time at the option of the Required Lenders. 
 (d) Exercise
of Rights in Pledged Collateral. 
 (i) Without in any way limiting the foregoing and subject to clause
(ii) below, such Grantor shall have the right to exercise all voting rights or other rights relating to the Pledged Collateral owned by it for all purposes not inconsistent with this Security Agreement, the Credit Agreement or any other Loan
Document; provided however, that no vote or other right shall be exercised or action taken which would have the effect of impairing the rights of the Administrative Agent in respect of such Pledged Collateral. 

(ii) Such Grantor will permit the Administrative Agent or its nominee at any time during the occurrence and
continuation of an Event of Default, without notice, to exercise or refrain from exercising any and all voting and other consensual rights or other rights relating to the Pledged Collateral owned by it, including, without limitation, exchange,
subscription or any other rights, privileges, or options pertaining to any Equity Interest or Investment Property constituting Pledged Collateral and to 

  
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receive all dividends and interest in respect of such Pledged Collateral as if it were the absolute owner thereof. 

(iii) Such Grantor shall, at any time other than during the existence and continuation of an Event of Default,
be entitled to collect and receive for its own use all cash dividends and interest paid in respect of the Pledged Collateral owned by it to the extent not in violation of the Credit Agreement other than any of the following distributions and
payments (collectively referred to as the “Excluded Payments”): (A) dividends and interest paid or payable other than in cash in respect of such Pledged Collateral, and instruments and other property received, receivable or
otherwise distributed in respect of, or in exchange for, any Pledged Collateral; (B) dividends and other distributions paid or payable in cash in respect of such Pledged Collateral in connection with a partial or total liquidation or
dissolution or in connection with a reduction of capital, capital surplus or paid-in capital of an issuer; and (C) cash paid, payable or otherwise distributed, in respect of principal of, or in redemption
of, or in exchange for, such Pledged Collateral; provided however, that until actually paid, all rights to such distributions shall remain subject to the Lien created by this Security Agreement; and 

(iv) All Excluded Payments and all other distributions in respect of any of the Pledged Collateral owned by
such Grantor, whenever paid or made, shall be delivered to the Administrative Agent to hold as Pledged Collateral and shall, if received by such Grantor, be received in trust for the benefit of the Administrative Agent, be segregated from the other
property or funds of such Grantor, and be forthwith delivered to the Administrative Agent as Pledged Collateral in the same form as so received (with any necessary endorsement). 

(e) Interests in Limited Liability Companies and Limited Partnerships. Each Grantor agrees that no ownership interests
in a limited liability company or a limited partnership which are included within the Collateral owned by such Grantor shall at any time constitute a Security under Article 8 of the UCC of the applicable jurisdiction. 

4.7. Intellectual Property. 

(a) After any change to Exhibit D (or the information required to be disclosed thereon), the applicable Grantor shall
provide the Administrative Agent notification thereof in the next Compliance Certificate delivered pursuant to the Credit Agreement and the respective Confirmatory Grant as described in this Section 4.7 and any other
documents that the Administrative Agent reasonably requests with respect thereto. 
 (b) Such Grantor shall (and shall cause
all of its licensees to) (i) (1) continue to use each Trademark included in the Material Intellectual Property owned by it in order to maintain such Trademark in full force and effect with respect to each class of goods for which such Trademark
is currently used, free from any claim of abandonment for non-use, (2) maintain at least the same standards of quality of products and services offered under such Trademark as are currently maintained,
(3) use such Trademark with the appropriate notice of registration and all other notices and legends required by applicable Requirements of Law and (4) not adopt or use any other Trademark that is confusingly similar or a colorable
imitation of such Trademark unless the Administrative Agent shall obtain a perfected security interest in such other Trademark pursuant to this Security Agreement and (ii) not do any act or omit to do any act whereby (w) such Trademark (or
any goodwill associated therewith) may become destroyed, invalidated, impaired or harmed in any way, (x) any Patent included in the Material Intellectual Property may become forfeited, misused, unenforceable, abandoned or dedicated to the
public, (y) any portion of the Copyrights included in the Material Intellectual Property may become invalidated, otherwise impaired or fall into the public domain or (z) any Trade Secret that is Material Intellectual Property may become
publicly available or otherwise unprotectable. 
 (c) Such Grantor shall notify the Administrative Agent immediately if it
knows, or has reason to know, that any application or registration relating to any Patent, Trademark, Copyright included in Material Intellectual Property or other Material Intellectual Property owned by it may become forfeited, misused,

  
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unenforceable, abandoned or dedicated to the public, or of any adverse determination or development regarding the validity or enforceability or such Grantor’s ownership of, interest in,
right to use, register, own or maintain any Patent, Trademark, Copyright included in Material Intellectual Property or other Material Intellectual Property (including the institution of, or any such determination or development in, any proceeding
relating to the foregoing in any Applicable IP Office). Such Grantor shall take all actions that are necessary or reasonably requested by the Administrative Agent to maintain and pursue each application (and to obtain the relevant registration or
recordation) and to maintain each registration and recordation included in the Material Intellectual Property owned by it. . 

(d) Such Grantor shall not knowingly do any act or omit to do any act to infringe, misappropriate, dilute, violate or
otherwise impair the Intellectual Property of any other Person. In the event that any Material Intellectual Property of such Grantor is or has been infringed, misappropriated, violated, diluted or otherwise impaired by a third party, such Grantor
shall promptly sue for infringement, misappropriation or dilution and to recover any and all damages for such infringement, misappropriation or dilution, and shall take such other actions as the Administrative Agent shall deem appropriate under the
circumstances to protect such Material Intellectual Property. 
 (e) Such Grantor shall execute and deliver to the
Administrative Agent in form and substance reasonably acceptable to the Administrative Agent and suitable for filing in the Applicable IP Office the respective Confirmatory Grant in form and substance acceptable to the Administrative Agent for all
Copyrights, Trademarks and Patents of such Grantor. 
 (f) Such Grantor shall take all actions necessary or requested by the
Administrative Agent to maintain and pursue each application, to obtain the relevant registration and to maintain the registration of all Material Intellectual Property owned by it (now or hereafter existing), including the filing of applications
for renewal, affidavits of use, affidavits of noncontestability and opposition and interference and cancellation proceedings. 

4.8 Commercial Tort Claims. Such Grantor shall promptly, and in any event within two (2) Business Days after the
same is acquired by it, notify the Administrative Agent of any commercial tort claim (as defined in the UCC) in an amount in excess of $100,000 individually or $500,000 in the aggregate for all such commercial tort claims acquired by it, and, unless
the Administrative Agent otherwise consents, such Grantor shall enter into an amendment to this Security Agreement, in the form of Exhibit J hereto, granting to the Administrative Agent a first priority security interest in such commercial
tort claim. 
 4.9. Letter-of-Credit
Rights. If such Grantor is or becomes the beneficiary of a letter of credit , with a face amount in excess of $100,000 individually or $500,000 in the aggregate for all such letters of credit, it shall promptly, and in any event within two
(2) Business Days after becoming a beneficiary, notify the Administrative Agent thereof and cause the issuer and/or confirmation bank to (i) consent to the assignment of any
Letter-of-Credit Rights, with a face amount in excess of $100,000 individually or $500,000 in the aggregate for all such Letter-of-Credit Rights, to the Administrative Agent and (ii) agree to direct all payments thereunder to a Deposit Account at the Administrative Agent or subject to an Account Control Agreement for
application to the Secured Obligations, in accordance with Section 2.18 of the Credit Agreement, all in form and substance reasonably satisfactory to the Administrative Agent. 

4.10. Federal, State or Municipal Claims. Such Grantor will promptly notify the Administrative Agent of any Collateral
which constitutes a claim against the United States government or any state or local government or any instrumentality or agency thereof, the assignment of which claim is restricted by federal, state or municipal law. Furthermore, each Grantor will
execute and deliver to the Administrative Agent such documents, agreements and instruments, and will take such further actions (including, without limitation, the taking of necessary actions under the Federal Assignment of Claims Act of 1940, as
amended (31 U.S.C. § 3727 et seq. and 41 U.S.C. § 15 et seq.)), which the Administrative Agent may, from time to time, reasonably request, to ensure perfection and 

  
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priority of the Liens hereunder in respect of Accounts and General Intangibles owing by any government or instrumentality or agency thereof, all at the expense of the Borrower. 

4.11. No Interference. Such Grantor agrees that it will not interfere with any right, power and remedy of the
Administrative Agent provided for in this Security Agreement or now or hereafter existing at law or in equity or by statute or otherwise, or the exercise or beginning of the exercise by the Administrative Agent of any one or more of such rights,
powers or remedies. 
 4.12. Insurance. (a) In the event any Collateral is located in any area that has been
designated by the Federal Emergency Management Agency as a “Special Flood Hazard Area”, such Grantor shall purchase and maintain flood insurance on such Collateral (including any personal property which is located on any real property
leased by such Grantor within a “Special Flood Hazard Area”). The amount of flood insurance required by this Section shall be in an amount equal to the lesser of the total Commitment or the total replacement cost value of the improvements.

 (b) All insurance policies required hereunder and under Section 5.10 of the Credit Agreement shall name the
Administrative Agent (for the benefit of the Administrative Agent and the Secured Parties) as an additional insured or as lender’s loss payee, as applicable, and shall contain lender loss payable clauses or mortgagee clauses, through
endorsements in form and substance satisfactory to the Administrative Agent, which provide that: (i) all proceeds thereunder with respect to any Collateral shall be payable to the Administrative Agent; (ii) no such insurance shall be
affected by any act or neglect of the insured or owner of the property described in such policy; and (iii) such policy and lender loss payable or mortgagee clauses may be canceled, amended, or terminated only upon at least thirty
(30) days’ prior written notice given to the Administrative Agent. 
 (c) All premiums on any such insurance shall
be paid when due by such Grantor, and copies of the policies delivered to the Administrative Agent upon the Administrative Agent’s request. If such Grantor fails to obtain or maintain any insurance as required by this Section, the
Administrative Agent may obtain such insurance at the Borrower’s expense. By purchasing such insurance, the Administrative Agent shall not be deemed to have waived or released any Default arising from a Grantor’s failure to maintain such
insurance or pay any premiums therefor. All sums so disbursed by the Administrative Agent shall constitute part of the Secured Obligations, payable as provided in the Loan Documents. 

4.13. Collateral Access Agreements. Upon request by the Administrative Agent, such Grantor shall use commercially
reasonable efforts to obtain a Collateral Access Agreement from the lessor of each leased property, mortgagee of owned property or bailee or consignee with respect to any warehouse, processor or converter facility or other location where Collateral,
with a value of $1,000,000 at each individual location or $5,000,000 at all such locations in the aggregate, is stored or located, which agreement or letter shall provide access rights, contain a waiver or subordination of all Liens or claims that
the landlord, mortgagee, bailee or consignee may assert against the Collateral at that location, and shall otherwise be reasonably satisfactory in form and substance to the Administrative Agent. 

4.14. Account Control Agreements. Such Grantor will upon the Administrative Agent’s request, provide to the
Administrative Agent an Account Control Agreement duly executed on behalf of each financial institution, securities intermediary or other Person holding a deposit account or securities account of such Grantor that does not constitute Excluded
Property as set forth in this Security Agreement. 
 4.15. Change of Name or Location of Grantor; Change of Fiscal
Year. Such Grantor shall not (a) change its legal name as it appears in official filings in the state of its incorporation or organization, (b) change its mailing address, principal place of business, chief executive office, corporate
offices or warehouses or locations at which Collateral is held or stored, or the location of its records concerning the Collateral from the location identified on Exhibit A or as otherwise set forth in this Security Agreement, (c) change
the type of entity that it is, (d) change its organization identification number, if any, issued by its state of incorporation or other organization, or (e) change its state of incorporation or organization, in each case, unless the
Administrative Agent 

  
 15 

 
shall have received at least twenty (20) days’ prior written notice of such change and the Administrative Agent shall have acknowledged in writing that either (i) such change will
not adversely affect the validity, perfection or priority of the Administrative Agent’s security interest in the Collateral, or (ii) any reasonable action requested by the Administrative Agent in connection therewith has been completed or
taken (including any action to continue the perfection of any Liens in favor of the Administrative Agent, on behalf of the Secured Parties, in any Collateral), provided that, any new location shall be in the continental U.S. and
provided further that, if the Administrative Agent fails to provide any response to such prior written notice by the applicable Grantor within fifteen (15) days of receipt of such notice from such Grantor, then the Administrative
Agent shall be deemed to have consented to such change. Such Grantor shall not change its fiscal year which currently ends on December 31. 

4.16. Updating of Exhibits to the Security Agreement. The Borrower will provide to the Administrative Agent,
concurrently with the delivery of each Compliance Certificate pursuant to the Credit Agreement, updated versions of the Exhibits to this Security Agreement (provided that if there have been no changes to any such Exhibits since the previous updating
thereof required hereby, the Borrower shall indicate that there has been “no change” to the applicable Exhibit(s)). 
 ARTICLE V

 EVENTS OF DEFAULT AND REMEDIES 

5.1. Events of Default. The occurrence of any one or more of the following events shall constitute an Event of Default
hereunder: 
 (a) Any representation or warranty made by or on behalf of any Grantor under or in connection with this
Security Agreement shall be materially false as of the date on which made. 
 (b) Any Grantor shall fail to observe or
perform any of the terms or provisions of Article IV. 
 (c) Any Grantor shall fail to observe or perform any of the
terms or provisions of this Security Agreement (other than a breach which constitutes an Event of Default under any other Section of this Article V), and such failure shall continue unremedied for a period of thirty (30) days after the
earlier of knowledge of such breach or notice thereof from the Administrative Agent. 
 (d) The occurrence of any
“Event of Default” under, and as defined in, the Credit Agreement. 
 (e) Any Equity Interest which is included
within the Collateral shall at any time constitute a Security or the issuer of any such Equity Interest shall take any action to have such interests treated as a Security unless (i) all certificates or other documents constituting such Security
have been delivered to the Administrative Agent and such Security is properly defined as such under Article 8 of the UCC of the applicable jurisdiction, whether as a result of actions by the issuer thereof or otherwise, or (ii) the
Administrative Agent has entered into an Account Control Agreement with the issuer of such Security or with a securities intermediary relating to such Security and such Security is defined as such under Article 8 of the UCC of the applicable
jurisdiction, whether as a result of actions by the issuer thereof or otherwise. 
 5.2. Remedies. 

(a) Upon the occurrence and during the continuation of an Event of Default, the Administrative Agent may (or, at the direction
of the Required Lenders, shall) exercise any or all of the following rights and remedies: 
 (i) those rights
and remedies provided in this Security Agreement, the Credit Agreement, or any other Loan Document; provided that, this Section 5.2(a) shall not be understood to 

  
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limit any rights or remedies available to the Administrative Agent and the other Secured Parties prior to an Event of Default; 

(ii) those rights and remedies available to a secured party under the UCC (whether or not the UCC applies to
the affected Collateral) or under any other applicable law (including, without limitation, any law governing the exercise of a bank’s right of setoff or bankers’ lien) when a debtor is in default under a security agreement; 

(iii) give notice of sole control or any other instruction under any Account Control Agreement or other control
agreement with any securities intermediary and take any action therein with respect to such Collateral; 

(iv) without notice (except as specifically provided in Section 7.1 or elsewhere herein), demand or
advertisement of any kind to any Grantor or any other Person, enter the premises of any Grantor where any Collateral is located (through self-help and without judicial process) to collect, receive, assemble, process, appropriate, sell, lease,
assign, grant an option or options to purchase or otherwise Dispose of, deliver, or realize upon, the Collateral or any part thereof in one or more parcels at public or private sale or sales (which sales may be adjourned or continued from time to
time with or without notice and may take place at any Grantor’s premises or elsewhere), for cash, on credit or for future delivery without assumption of any credit risk, and upon such other terms as the Administrative Agent may deem
commercially reasonable; and 
 (v) concurrently with written notice to the applicable Grantor, transfer and
register in its name or in the name of its nominee the whole or any part of the Pledged Collateral, exchange certificates or instruments representing or evidencing Pledged Collateral for certificates or instruments of smaller or larger
denominations, exercise the voting and all other rights as a holder with respect thereto, to collect and receive all cash dividends, interest, principal and other distributions made thereon and to otherwise act with respect to the Pledged Collateral
as though the Administrative Agent was the outright owner thereof. 
 (b) The Administrative Agent, on behalf of the Secured
Parties, may comply with any applicable state or federal law requirements in connection with a Disposition of the Collateral and compliance will not be considered to adversely affect the commercial reasonableness of any sale of the Collateral. 

(c) The Administrative Agent shall have the right upon any such public sale or sales and, to the extent permitted by law, upon
any such private sale or sales, to purchase for the benefit of the Administrative Agent and the other Secured Parties, the whole or any part of the Collateral so sold, free of any right of equity redemption, which equity redemption the Grantor
hereby expressly releases. 
 (d) Until the Administrative Agent is able to effect a Disposition of Collateral, the
Administrative Agent shall have the right to hold or use Collateral, or any part thereof, to the extent that it deems appropriate for the purpose of preserving Collateral or its value or for any other purpose deemed appropriate by the Administrative
Agent. The Administrative Agent may, if it so elects, seek the appointment of a receiver or keeper to take possession of Collateral and to enforce any of the Administrative Agent’s remedies (for the benefit of the Administrative Agent and the
other Secured Parties), with respect to such appointment without prior notice or hearing as to such appointment. 
 (e) If,
after the Credit Agreement has terminated by its terms and all of the Secured Obligations have been Paid in Full, there remain Swap Agreement Obligations or Banking Services Obligations outstanding, the Required Lenders may exercise the remedies
provided in this Section 5.2 upon the occurrence of any event which would allow or require the termination or acceleration of any Swap Agreement Obligations or Banking Services Obligations. 

  
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 (f) Notwithstanding the foregoing, neither the Administrative Agent nor any
other Secured Party shall be required to (i) make any demand upon, or pursue or exhaust any of its rights or remedies against, any Grantor, any other obligor, guarantor, pledgor or any other Person with respect to the payment of the Secured
Obligations or to pursue or exhaust any of its rights or remedies with respect to any Collateral therefor or any direct or indirect guarantee thereof, (ii) marshal the Collateral or any guarantee of the Secured Obligations or to resort to the
Collateral or any such guarantee in any particular order, or (iii) effect a public sale of any Collateral. 
 (g) Each
Grantor recognizes that the Administrative Agent may be unable to effect a public sale of any or all the Pledged Collateral and may be compelled to resort to one or more private sales thereof in accordance with clause (a) above. Each
Grantor also acknowledges that any private sale may result in prices and other terms less favorable to the seller than if such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall not be deemed to
have been made in a commercially unreasonable manner solely by virtue of such sale being private. The Administrative Agent shall be under no obligation to delay a sale of any of the Pledged Collateral for the period of time necessary to permit any
Grantor or the issuer of the Pledged Collateral to register such securities for public sale under the Securities Act of 1933, as amended, or under applicable state securities laws, even if the applicable Grantor and the issuer would agree to do so.

 5.3. Grantor’s Obligations Upon Default. Upon the request of the Administrative Agent after the occurrence
and during the continuation of an Event of Default, each Grantor will: 
 (a) assemble and make available to the
Administrative Agent the Collateral and all books and records relating thereto at any place or places specified by the Administrative Agent, whether at a Grantor’s premises or elsewhere; 

(b) permit the Administrative Agent, by the Administrative Agent’s representatives and agents, to enter, occupy and use
any premises where all or any part of the Collateral, or the books and records relating thereto, or both, are located, to take possession of all or any part of the Collateral or the books and records relating thereto, or both, to remove all or any
part of the Collateral or the books and records relating thereto, or both, and to conduct sales of the Collateral, without any obligation to pay the Grantor for such use and occupancy; 

(c) prepare and file, or cause an issuer of Pledged Collateral to prepare and file, with the SEC or any other applicable
government agency, registration statements, a prospectus and such other documentation in connection with the Pledged Collateral as the Administrative Agent may request, all in form and substance satisfactory to the Administrative Agent, and furnish
to the Administrative Agent, or cause an issuer of Pledged Collateral to furnish to the Administrative Agent, any information regarding the Pledged Collateral in such detail as the Administrative Agent may specify; 

(d) take, or cause an issuer of Pledged Collateral to take, any and all actions necessary to register or qualify the Pledged
Collateral to enable the Administrative Agent to consummate a public sale or other Disposition of the Pledged Collateral; and 

(e) at its own expense, cause the independent certified public accountants then engaged by each Grantor to prepare and deliver
to the Administrative Agent and each Lender, at any time, and from time to time, promptly upon the Administrative Agent’s request, the following reports with respect to the applicable Grantor: (i) a reconciliation of all Accounts;
(ii) an aging of all Accounts; (iii) trial balances; and (iv) a test verification of such Accounts. 
 5.4.
Grant of Intellectual Property License. For the purpose of enabling the Administrative Agent to exercise the rights and remedies under this Article V at such time as the Administrative Agent shall be lawfully entitled to exercise such
rights and remedies (including in order to take possession of, collect, receive, assemble, process, appropriate, remove, realize upon, sell, assign, convey, transfer or grant options to purchase any Collateral), each Grantor hereby (a) grants
to the Administrative Agent, for the benefit of the Administrative Agent 

  
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and the other Secured Parties, an irrevocable, nonexclusive worldwide license (exercisable without payment of royalty or other compensation to any Grantor), including in such license the right to
use, license, sublicense or practice any Intellectual Property now owned or hereafter acquired by such Grantor, and wherever the same may be located, and including in such license access to all media in which any of the licensed items may be
recorded or stored and to all computer Software and programs used for the compilation or printout thereof and (b) irrevocably agrees that the Administrative Agent may sell any of such Grantor’s Inventory directly to any person, including
without limitation persons who have previously purchased the Grantor’s Inventory from such Grantor and in connection with any such sale or other enforcement of the Administrative Agent’s rights under this Security Agreement, may sell
Inventory which bears any Trademark owned by or licensed to such Grantor and any Inventory that is covered by any Copyright owned by or licensed to such Grantor and the Administrative Agent may (but shall have no obligation to) finish any work in
process and affix any Trademark owned by or licensed to such Grantor and sell such Inventory as provided herein. 
 ARTICLE VI 

ACCOUNT VERIFICATION; ATTORNEY IN FACT; PROXY 

6.1. Account Verification. The Administrative Agent may at any time after the occurrence and during the continuance of
an Event of Default, in the Administrative Agent’s own name, in the name of a nominee of the Administrative Agent, or in the name of any Grantor communicate (by mail, telephone, facsimile or otherwise) with the Account Debtors of any such
Grantor, parties to contracts with any such Grantor and obligors in respect of Instruments of any such Grantor to verify with such Persons, to the Administrative Agent’s satisfaction, the existence, amount, terms of, and any other matter
relating to, Accounts, Instruments, Chattel Paper, payment intangibles and/or other Receivables. 
 6.2. Authorization
for Administrative Agent to Take Certain Action. 
 (a) Each Grantor irrevocably authorizes the Administrative Agent at
any time and from time to time in the sole discretion of the Administrative Agent and appoints the Administrative Agent as its attorney-in-fact (i) to endorse and
collect any cash proceeds of the Collateral, (ii) to file any financing statement with respect to the Collateral and to file any other financing statement or amendment of a financing statement (which does not add new collateral or add a debtor)
in such offices as the Administrative Agent in its sole discretion deems necessary or desirable to perfect and to maintain the perfection and priority of the Administrative Agent’s security interest in the Collateral, (iii) in the case of
any Intellectual Property owned by or licensed to a Grantor, execute, deliver and have recorded any document that the Administrative Agent may request to evidence, effect, publicize or record the Administrative Agent’s security interest in such
Intellectual Property and the goodwill and General Intangibles of such Grantor relating thereto or represented thereby, (iv) to contact and enter into one or more agreements with the issuers of uncertificated securities which are Pledged
Collateral or with securities intermediaries holding Pledged Collateral as may be necessary or advisable to give the Administrative Agent Control over such Pledged Collateral, (v) to discharge past due taxes, assessments, charges, fees or Liens
on the Collateral (except for such Liens that are permitted under Section 6.02 of the Credit Agreement), (vi) to contact Account Debtors for any reason, (vii) to demand payment or enforce payment of the Receivables in the name of the
Administrative Agent or such Grantor and to endorse any and all checks, drafts, and other instruments for the payment of money relating to the Receivables, (viii) to sign such Grantor’s name on any invoice or bill of lading relating to the
Receivables, drafts against any Account Debtor of the Grantor, assignments and verifications of Receivables, (ix) to exercise all of such Grantor’s rights and remedies with respect to the collection of the Receivables and any other
Collateral, (x) to settle, adjust, compromise, extend or renew the Receivables, (xi) to settle, adjust or compromise any legal proceedings brought to collect Receivables, (xii) to prepare, file and sign such Grantor’s name on a
proof of claim in bankruptcy or similar document against any Account Debtor of such Grantor, (xiii) to prepare, file and sign such Grantor’s name on any notice of Lien, assignment or satisfaction of Lien or similar document in connection
with the Receivables, (xiv) to change the address for delivery of mail addressed to such Grantor to such address as the Administrative Agent may designate and to receive, open and dispose of all mail addressed to such Grantor, and (xv) to
do all other acts and things necessary to carry out this Security Agreement; and such Grantor agrees to reimburse the Administrative Agent on demand for any payment 

  
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made or any expense incurred by the Administrative Agent in connection with any of the foregoing; provided that, this authorization shall not relieve such Grantor of any of its
obligations under this Security Agreement or under the Credit Agreement. 
 (b) All acts of said attorney or designee are
hereby ratified and approved. The powers conferred on the Administrative Agent, for the benefit of the Administrative Agent and Secured Parties, under this Section 6.2 are solely to protect the Administrative Agent’s interests in the
Collateral and shall not impose any duty upon the Administrative Agent or any other Secured Party to exercise any such powers. The Administrative Agent agrees that, except for the powers granted in Section 6.2(a)(i)-(v) and
Section 6.2(a)(xv), it shall not exercise any power or authority granted to it unless an Event of Default has occurred and is continuing. 

6.3. Proxy. EACH GRANTOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS THE ADMINISTRATIVE AGENT AS ITS PROXY AND ATTORNEY-IN-FACT (AS SET FORTH IN SECTION 6.2 ABOVE) OF THE GRANTOR WITH RESPECT TO ITS PLEDGED COLLATERAL, INCLUDING THE RIGHT TO VOTE SUCH PLEDGED COLLATERAL, WITH FULL
POWER OF SUBSTITUTION TO DO SO. IN ADDITION TO THE RIGHT TO VOTE ANY SUCH PLEDGED COLLATERAL, THE APPOINTMENT OF THE ADMINISTRATIVE AGENT AS PROXY AND ATTORNEY-IN-FACT
SHALL INCLUDE THE RIGHT TO EXERCISE ALL OTHER RIGHTS, POWERS, PRIVILEGES AND REMEDIES TO WHICH A HOLDER OF SUCH PLEDGED COLLATERAL WOULD BE ENTITLED (INCLUDING GIVING OR WITHHOLDING WRITTEN CONSENTS OF SHAREHOLDERS, CALLING SPECIAL MEETINGS OF
SHAREHOLDERS AND VOTING AT SUCH MEETINGS). SUCH PROXY SHALL BE EFFECTIVE, AUTOMATICALLY AND WITHOUT THE NECESSITY OF ANY ACTION (INCLUDING ANY TRANSFER OF ANY SUCH PLEDGED COLLATERAL ON THE RECORD BOOKS OF THE ISSUER THEREOF) BY ANY PERSON
(INCLUDING THE ISSUER OF SUCH PLEDGED COLLATERAL OR ANY OFFICER OR AGENT THEREOF), UPON THE OCCURRENCE AND DURING THE CONTINUATION OF AN EVENT OF DEFAULT. 

6.4. Nature of Appointment; Limitation of Duty. THE APPOINTMENT OF THE ADMINISTRATIVE AGENT AS PROXY AND ATTORNEY-IN-FACT IN THIS ARTICLE VI IS COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE UNTIL THE DATE ON WHICH THIS SECURITY AGREEMENT IS TERMINATED IN ACCORDANCE WITH
SECTION 7.15. NOTWITHSTANDING ANYTHING CONTAINED HEREIN, NONE OF THE ADMINISTRATIVE AGENT, ANY LENDER, ANY OTHER SECURED PARTY, ANY OF THEIR RESPECTIVE AFFILIATES, OR ANY OF THEIR OR THEIR AFFILIATES’ RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES,
AGENTS OR REPRESENTATIVES SHALL HAVE ANY DUTY TO EXERCISE ANY RIGHT OR POWER GRANTED HEREUNDER OR OTHERWISE OR TO PRESERVE THE SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO SO OR FOR ANY DELAY IN DOING SO, EXCEPT IN RESPECT OF DAMAGES
ATTRIBUTABLE SOLELY TO SUCH PARTY’S OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION; PROVIDED THAT, IN NO EVENT SHALL THEY BE LIABLE FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL
DAMAGES. 
 ARTICLE VII 

GENERAL PROVISIONS 

7.1 Waivers. Each Grantor hereby waives notice of the time and place of any public sale or the time after which any
private sale or other Disposition of all or any part of the Collateral may be made. To the extent such notice may not be waived under applicable law, any notice made shall be deemed reasonable if sent to Grantors, addressed as set forth in Article
IX, at least ten (10) days prior to (i) the date of any such public sale or (ii) the time after which any such private sale or other Disposition may be made. To the maximum extent permitted by applicable law, each Grantor waives all
claims, damages, and demands against the Administrative Agent or any Secured Party arising out of the repossession, retention or sale of the Collateral, except such as arise solely out of the gross negligence or willful misconduct of the
Administrative Agent or such Secured Party as finally 

  
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determined by a court of competent jurisdiction. To the extent it may lawfully do so, each Grantor absolutely and irrevocably waives and relinquishes the benefit and advantage of, and covenants
not to assert against the Administrative Agent or any other Secured Party, any valuation, stay, appraisal, extension, moratorium, redemption or similar laws and any and all rights or defenses it may have as a surety now or hereafter existing which,
but for this provision, might be applicable to the sale of any Collateral made under the judgment, order or decree of any court, or privately under the power of sale conferred by this Security Agreement, or otherwise. Except as otherwise
specifically provided herein, each Grantor hereby waives presentment, demand, protest or any notice (to the maximum extent permitted by applicable law) of any kind in connection with this Security Agreement or any Collateral. 

7.2. Limitation on Administrative Agent’s and Secured Parties’ Duty with Respect to the Collateral. The
Administrative Agent shall have no obligation to clean-up or otherwise prepare the Collateral for sale. The Administrative Agent and each other Secured Party shall use reasonable care with respect to the
Collateral in its possession or under its control. Neither the Administrative Agent nor any other Secured Party shall have any other duty as to any Collateral in its possession or control or in the possession or control of any agent or nominee of
the Administrative Agent or such other Secured Party, or any income thereon or as to the preservation of rights against prior parties or any other rights pertaining thereto. To the extent that applicable law imposes duties on the Administrative
Agent to exercise remedies in a commercially reasonable manner, each Grantor acknowledges and agrees that it is commercially reasonable for the Administrative Agent (i) to fail to incur expenses deemed significant by the Administrative Agent to
prepare Collateral for Disposition or otherwise to transform raw material or work in process into finished goods or other finished products for Disposition, (ii) to fail to obtain third party consents for access to Collateral to be Disposed of,
or to obtain or, if not required by other law, to fail to obtain governmental or third party consents for the collection or Disposition of Collateral to be collected or Disposed of, (iii) to fail to exercise collection remedies against Account
Debtors or other Persons obligated on Collateral or to remove Liens on or any adverse claims against Collateral, (iv) to exercise collection remedies against Account Debtors and other Persons obligated on Collateral directly or through the use
of collection agencies and other collection specialists, (v) to advertise Dispositions of Collateral through publications or media of general circulation, whether or not the Collateral is of a specialized nature, (vi) to contact other
Persons, whether or not in the same business as such Grantor, for expressions of interest in acquiring all or any portion of such Collateral, (vii) to hire one or more professional auctioneers to assist in the Disposition of Collateral, whether
or not the Collateral is of a specialized nature, (viii) to Dispose of Collateral by utilizing internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable capacity of doing so, or
that match buyers and sellers of assets, (ix) to Dispose of assets in wholesale rather than retail markets, (x) to disclaim Disposition warranties, such as title, possession or quiet enjoyment, (xi) to purchase insurance or credit
enhancements to insure the Administrative Agent against risks of loss, collection or Disposition of Collateral or to provide to the Administrative Agent a guaranteed return from the collection or Disposition of Collateral, or (xii) to the
extent deemed appropriate by the Administrative Agent, to obtain the services of other brokers, investment bankers, consultants and other professionals to assist the Administrative Agent in the collection or Disposition of any of the Collateral. The
Grantor acknowledges that the purpose of this Section 7.2 is to provide non-exhaustive indications of what actions or omissions by the Administrative Agent would be commercially reasonable in the
Administrative Agent’s exercise of remedies against the Collateral and that other actions or omissions by the Administrative Agent shall not be deemed commercially unreasonable solely on account of not being indicated in this Section 7.2.
Without limitation upon the foregoing, nothing contained in this Section 7.2 shall be construed to grant any rights to the Grantor or to impose any duties on the Administrative Agent that would not have been granted or imposed by this Security
Agreement or by applicable law in the absence of this Section 7.2. 
 7.3. Compromises and Collection of
Collateral. The Grantors and the Administrative Agent recognize that setoffs, counterclaims, defenses and other claims may be asserted by obligors with respect to certain of the Receivables, that certain of the Receivables may be or become
uncollectible in whole or in part and that the expense and probability of success in litigating a disputed Receivable may exceed the amount that reasonably may be expected to be recovered with respect to a Receivable. In view of the foregoing, each
Grantor agrees that the Administrative Agent may at any time and from time to time, if an Event of Default has occurred and is continuing, 

  
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compromise with the obligor on any Receivable, accept in full payment of any Receivable such amount as the Administrative Agent in its sole discretion shall determine or abandon any Receivable,
and any such action by the Administrative Agent shall be commercially reasonable so long as the Administrative Agent acts in good faith based on information known to it at the time it takes any such action. 

7.4. Secured Party Performance of Debtor Obligations. Without having any obligation to do so, the Administrative Agent
may perform or pay any obligation which any Grantor has agreed to perform or pay in this Security Agreement and the Grantors shall reimburse the Administrative Agent for any amounts paid by the Administrative Agent pursuant to this Section 7.4.
The Grantors’ obligation to reimburse the Administrative Agent pursuant to the preceding sentence shall be a Secured Obligation payable on demand. 

7.5 Specific Performance of Certain Covenants. Each Grantor acknowledges and agrees that a breach of any of the
covenants contained in Sections 4.1(d), 4.1(e), 4.4, 4.5, 4.6, 4.7, 4.8, 4.9, 4.10, 4.12, 4.13, 4.14, 4.15, 5.3, or 7.7 will cause irreparable injury to the Administrative Agent and the other Secured Parties, that the Administrative Agent and the
other Secured Parties have no adequate remedy at law in respect of such breaches and therefore agrees, without limiting the right of the Administrative Agent or the other Secured Parties to seek and obtain specific performance of other obligations
of the Grantors contained in this Security Agreement, that the covenants of the Grantors contained in the Sections referred to in this Section 7.5 shall be specifically enforceable against the Grantors. 

7.6 Use and Possession of Certain Premises. Upon the occurrence and during the continuation of an Event of Default, the
Administrative Agent shall be entitled to occupy and use any premises owned or leased by the Grantors where any of the Collateral or any records relating to the Collateral are located until the Secured Obligations are paid or the Collateral is
removed therefrom, whichever first occurs, without any obligation to pay any Grantor for such use and occupancy. 
 7.7.
Dispositions Not Authorized. No Grantor is authorized to Dispose of the Collateral except as set forth in Section 4.1(d) and notwithstanding any course of dealing between any Grantor and the Administrative Agent or other conduct of the
Administrative Agent, no authorization to Dispose of the Collateral (except as set forth in Section 4.1(d)) shall be binding upon the Administrative Agent or the other Secured Parties unless such authorization is in writing signed by the
Administrative Agent with the consent or at the direction of the Required Lenders. 
 7.8. No Waiver; Amendments;
Cumulative Remedies. No failure or delay by the Administrative Agent or any other Secured Party in exercising any right or power under this Security Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Administrative Agent and
the other Secured Parties hereunder are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Security Agreement or consent to any departure by the Grantor therefrom shall in
any event be effective unless in writing signed by the Administrative Agent and the Grantors and then only to the extent in such writing specifically set forth. 

7.9. Limitation by Law; Severability of Provisions. All rights, remedies and powers provided in this Security Agreement
may be exercised only to the extent that the exercise thereof does not violate any applicable provision of law, and all the provisions of this Security Agreement are intended to be subject to all applicable mandatory provisions of law that may be
controlling and to be limited to the extent necessary so that they shall not render this Security Agreement invalid, unenforceable or not entitled to be recorded or registered, in whole or in part. Any provision in this Security Agreement held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining
provisions thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction, and to this end the provisions of this Security Agreement are declared to be severable. 

  
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 7.10 Reinstatement. This Security Agreement shall remain in full
force and effect and continue to be effective should any petition be filed by or against any Grantor for liquidation or reorganization, should any Grantor become insolvent or make an assignment for the benefit of any creditor or creditors or should
a receiver or trustee be appointed for all or any significant part of any Grantor’s assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment and performance of the Secured Obligations, or any part
thereof (including a payment effected through exercise of a right of setoff), is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Secured Obligations, whether as a
“voidable preference,” “fraudulent conveyance,” or otherwise (including pursuant to any settlement entered into by a Secured Party in its discretion), all as though such payment or performance had not been made. In the event that
any payment, or any part thereof (including a payment effected through exercise of a right of setoff), is rescinded, reduced, restored or returned, the Secured Obligations shall be reinstated and deemed reduced only by such amount paid and not so
rescinded, reduced, restored or returned. 
 7.11. Benefit of Agreement. The terms and provisions of this Security
Agreement shall be binding upon and inure to the benefit of the Grantors, the Administrative Agent and the other Secured Parties and their respective successors and assigns (including all persons who become bound as a debtor to this Security
Agreement), except that no Grantor shall have the right to assign its rights or delegate its obligations under this Security Agreement or any interest herein, without the prior written consent of the Administrative Agent. No sales of participations,
assignments, transfers, or other Dispositions of any agreement governing the Secured Obligations or any portion thereof or interest therein shall in any manner impair the Lien granted to the Administrative Agent, for the benefit of the
Administrative Agent and the other Secured Parties, hereunder. 
 7.12. Survival of Representations. All
representations and warranties of the Grantors contained in this Security Agreement shall survive the execution and delivery of this Security Agreement. 

7.13. Taxes and Expenses. Any taxes (including income taxes) payable or ruled payable by a Federal or State authority
in respect of this Security Agreement shall be paid by the Grantors in accordance with Section 2.17 of the Credit Agreement, mutatis mutandis. The Grantors shall, in accordance with Section 8.03(a) of the Credit Agreement,
mutatis mutandis, reimburse the Administrative Agent for any and all reasonable out-of-pocket expenses and internal charges (including reasonable attorneys’,
auditors’ and accountants’ fees and reasonable time charges of attorneys, paralegals, auditors and accountants who may be employees of the Administrative Agent) paid or incurred by the Administrative Agent in connection with the
preparation, execution, delivery, administration, collection and enforcement of this Security Agreement and, to the extent provided in the Credit Agreement in the audit, analysis, administration, collection, preservation or sale of the Collateral
(including the expenses and charges associated with any periodic or special audit of the Collateral). Any and all costs and expenses incurred by the Grantors in the performance of actions required pursuant to the terms hereof shall be borne solely
by the Grantors. 
 7.14. Headings. The title of and section headings in this Security Agreement are for convenience
of reference only, and shall not govern the interpretation of any of the terms and provisions of this Security Agreement. 

7.15. Termination. This Security Agreement shall continue in effect (notwithstanding the fact that from time to time
there may be no Secured Obligations outstanding) until (i) the Credit Agreement has terminated pursuant to its express terms and (ii) all of the Secured Obligations have been Paid in Full. 

7.16. Entire Agreement. This Security Agreement and the other Loan Documents embody the entire agreement and
understanding between the Grantors and the Administrative Agent relating to the Collateral and supersedes all prior agreements and understandings among the Grantors and the Administrative Agent relating to the Collateral. 

  
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 7.17. CHOICE OF LAW. THIS SECURITY AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK.  

7.18. CONSENT TO JURISDICTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN (OR IF SUCH COURT LACKS SUBJECT MATTER JURISDICTION, THE SUPREME COURT
OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN), AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT, THE TRANSACTIONS RELATING HERETO OR THERETO, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY (AND ANY SUCH CLAIMS, CROSS-CLAIMS OR THIRD PARTY CLAIMS BROUGHT
AGAINST THE ADMINISTRATIVE AGENT OR ANY OF ITS RELATED PARTIES MAY ONLY) BE HEARD AND DETERMINED IN SUCH FEDERAL (TO THE EXTENT PERMITTED BY LAW) OR NEW YORK STATE COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR
PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE
AGENT OR ANY SECURED PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY GRANTOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION. EACH GRANTOR HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SECURITY
AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN THIS PARAGRAPH. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
PROCEEDING IN ANY SUCH COURT. EACH PARTY TO THIS SECURITY AGREEMENT IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 9.01 OF THE CREDIT AGREEMENT. NOTHING IN THIS SECURITY AGREEMENT
OR ANY OTHER LOAN DOCUMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS SECURITY AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. 

7.19. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE OR OTHER AGENT (INCLUDING ANY ATTORNEY) OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS SECURITY AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION. 
 7.20. Indemnity. Each Grantor hereby agrees, jointly with the other Grantors
and severally, to indemnify the Administrative Agent and the other Secured Parties, and their respective successors, assigns, agents 

  
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and employees (each such Person being called an “Indemnitee”), from and against any and all Liabilities, damages, penalties, suits, fees, costs, and expenses of any kind and
nature (including, without limitation, all expenses of litigation or preparation therefor whether or not the Administrative Agent or any Secured Party is a party thereto) imposed on, incurred by or asserted against the Administrative Agent or the
other Secured Parties, or their respective successors, assigns, agents and employees, in any way relating to or arising out of this Security Agreement or any other Loan Documents, or the manufacture, purchase, acceptance, rejection, ownership,
delivery, lease, possession, use, operation, condition, sale, return or other Disposition of any Collateral (including, without limitation, latent and other defects, whether or not discoverable by the Administrative Agent or the other Secured
Parties or any Grantor, and any claim for Patent, Trademark or Copyright infringement); provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such Liabilities, damages, penalties, suits, fees, costs and
expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee. 

7.21. Counterparts. This Security Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Security Agreement that is an Electronic
Signature transmitted by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page shall be effective as delivery of a manually executed counterpart of this Security Agreement. The parties
hereto agree that Section 9.06(b) of the Credit Agreement shall apply to this Security Agreement, mutatis mutandis. 

7.22 Subordination of Intercompany Indebtedness. Each Grantor agrees that any and all claims of such Grantor against
any other Grantor (each an “Obligor”) with respect to any “Intercompany Indebtedness” (as hereinafter defined), any endorser, obligor or any other guarantor of all or any part of the Secured Obligations, or against any of
its properties shall be subordinate and subject in right of payment to the prior payment, in full and in cash, of all Secured Obligations, provided that, and not in contravention of the foregoing, so long as no Default or Event of Default has
occurred and is continuing, such Grantor may make loans to and receive payments in the ordinary course of business with respect to such Intercompany Indebtedness from each such Obligor to the extent not prohibited by the terms of this Security
Agreement and the other Loan Documents. Notwithstanding any right of any Grantor to ask, demand, sue for, take or receive any payment from any Obligor, all rights, liens and security interests of such Grantor, whether now or hereafter arising and
howsoever existing, in any assets of any other Obligor shall be and are subordinated to the rights of the Secured Parties and the Administrative Agent in those assets. No Grantor shall have any right to possession of any such asset or to foreclose
upon any such asset, whether by judicial action or otherwise, unless and until this Security Agreement has terminated in accordance with Section 7.15. If all or any part of the assets of any Obligor, or the proceeds
thereof, are subject to any distribution, division or application to the creditors of such Obligor, whether partial or complete, voluntary or involuntary, and whether by reason of liquidation, bankruptcy, arrangement, receivership, assignment for
the benefit of creditors or any other action or proceeding, or if the business of any such Obligor is dissolved or if substantially all of the assets of any such Obligor are sold, then, and in any such event (such events being herein referred to as
an “Insolvency Event”), any payment or distribution of any kind or character, either in cash, securities or other property, which shall be payable or deliverable upon or with respect to any indebtedness of any Obligor to any Grantor
(“Intercompany Indebtedness”) shall be paid or delivered directly to the Administrative Agent for application on any of the Secured Obligations, due or to become due, until such Secured Obligations (other than contingent indemnity
obligations) shall have first been fully paid and satisfied (in cash). Should any payment, distribution, security or instrument or proceeds thereof be received by the applicable Grantor upon or with respect to the Intercompany Indebtedness after any
Insolvency Event and prior to the termination of this Security Agreement in accordance with Section 7.15, such Grantor shall receive and hold the same in trust, as trustee, for the benefit of the Secured Parties and shall
forthwith deliver the same to the Administrative Agent, for the benefit of the Secured Parties, in precisely the form received (except for the endorsement or assignment of the Grantor where necessary), for application to any of the Secured
Obligations, due or not due, and, until so delivered, the same shall be held in trust by the Grantor as the property of the Secured Parties. If any such Grantor fails to make any such endorsement or assignment to the Administrative Agent, the
Administrative Agent or any of its officers or employees is irrevocably authorized to make the same. Each Grantor agrees that until the termination of this Security 

  
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Agreement in accordance with Section 7.15, no Grantor will assign or transfer to any Person (other than the Administrative Agent or the Borrower or another Grantor) any
claim any such Grantor has or may have against any Obligor. 
 7.23 Conflict with Credit Agreement. To the extent any
of the provisions contained herein conflict with the terms set forth in the Credit Agreement, the provisions of the Credit Agreement shall control. 

ARTICLE VIII 
 NOTICES

 8.1. Sending Notices. Any notice required or permitted to be given under this Security Agreement shall be sent
(and deemed received) in the manner and to the addresses set forth in Section 9.01 of the Credit Agreement. Any notice delivered to the Borrower shall be deemed to have been delivered to all of the Grantors. 

8.2. Change in Address for Notices. Each of the Grantors, the Administrative Agent and the Secured Parties may change
the address for service of notice upon it by a notice in writing to the other parties. 
 ARTICLE IX 

THE ADMINISTRATIVE AGENT 

JPMorgan Chase Bank, N.A. has been appointed Administrative Agent for the Secured Parties hereunder pursuant to Article VIII
of the Credit Agreement. It is expressly understood and agreed by the parties to this Security Agreement that any authority conferred upon the Administrative Agent hereunder is subject to the terms of the delegation of authority made by the Secured
Parties to the Administrative Agent pursuant to Article VIII of the Credit Agreement, and that the Administrative Agent has agreed to act (and any successor Administrative Agent shall act) as such hereunder only on the express conditions contained
in such Article VIII. Any successor Administrative Agent appointed pursuant to Article VIII of the Credit Agreement shall be entitled to all the rights, interests and benefits of the Administrative Agent hereunder. 

[Signature Pages Follow] 

  
 26 

 IN WITNESS WHEREOF, the Grantors and the Administrative Agent have executed
this Security Agreement as of the date first above written. 
  

			
	 The GORMAN-RUPP COMPANY, as a Grantor

		
	 By:
	 	 
	 Name:
	 	
	 Title:
	 	

  

			
	 PATTERSON PUMP COMPANY, as a Grantor

		
	 By:
	 	 
	 Name:
	 	
	 Title:
	 	

  

			
	 AMT PUMP COMPANY, as a Grantor

		
	 By:
	 	 
	 Name:
	 	
	 Title:
	 	

  

			
	 NATIONAL PUMP COMPANY, as a Grantor

		
	 By:
	 	 
	 Name:
	 	
	 Title:
	 	

  

			
	 FILL-RITE COMPANY, as a Grantor

		
	 By:
	 	 
	 Name:
	 	
	 Title:
	 	

  
 Signature Page to Pledge
and Security Agreement 

 
			
	 JPMORGAN CHASE BANK, N.A.,
 as
Administrative Agent

		
	By:	 	 
	Name:	 	
	Title:	 	

  
 Signature Page to Pledge
and Security Agreement 

 EXHIBIT A 

(See Sections 3.2, 3.3 and 3.4 of Security Agreement) 
  

					
		 	 NOTICE ADDRESS FOR ALL GRANTORS
	 	
		 	
                
                                         
                   
	 	
		 	
c/o                
                                         
               
	 	
		 	
                
                                         
                   
	 	
		 	
Attention:              
                                         
     
	 	
		 	
Facsimile:              
                                         
     
	 	

 INFORMATION AND COLLATERAL LOCATIONS OF {Insert name of applicable Grantor} 

 

	I.	 Name of Grantor: _____________________________________ 

 

	II.	 State of Incorporation or Organization: _______________________________ 

 

	III.	 Type of Entity: _______________________________________ 

 

	IV.	 Organizational Number assigned by State of Incorporation or Organization: _________________

  

	V.	 Federal Identification Number: ________________________________ 

 

	VI.	 Place of Business (if it has only one) or Chief Executive Office (if more than one place of
business) and Mailing Address: 

  

					
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
			
		 	
Attention:                 
                                         
                                         
 
	 	

  

	VII.	 Locations of Collateral: 

 

	 	(a)	 Properties Owned by the Grantor: 

 

	 	(b)	 Properties Leased by the Grantor (Include Landlord’s Name): 

 

	 	(c)	 Public Warehouses or other Locations pursuant to Bailment or Consignment Arrangements (include name
of Warehouse Operator or other Bailee or Consignee): 

 INFORMATION AND COLLATERAL LOCATIONS OF {Insert name of applicable Grantor} 

 

	I.	 Name of Grantor: _____________________________________ 

 

	II.	 State of Incorporation or Organization: _______________________________ 

 

	III.	 Type of Entity: _______________________________________ 

 

	IV.	 Organizational Number assigned by State of Incorporation or Organization: _________________

  

	V.	 Federal Identification Number: ________________________________ 

 

	VI.	 Place of Business (if it has only one) or Chief Executive Office (if more than one place of
business) and Mailing Address: 

  

					
		 	 	 	
		 	 	 	
		 	 	 	
		 	 	 	
			
		 	
Attention:                 
                                         
                                         
 
	 	

  

	VII.	 Locations of Collateral: 

 

	 	(a)	 Properties Owned by the Grantor: 

 

	 	(b)	 Properties Leased by the Grantor (Include Landlord’s Name): 

 

	 	(c)	 Public Warehouses or other Locations pursuant to Bailment or Consignment Arrangements (include name
of Warehouse Operator or other Bailee or Consignee): 

 [NOTE: ADD ADDITIONAL INFORMATION PAGE FOR EACH GRANTOR]

 EXHIBIT B 

(See Section 3.5 of Security Agreement) 

DEPOSIT ACCOUNTS 
  

					
	 Name of Grantor
	 	 Name of Institution
	 	 Account Number

	  
	 	  
	 	  

	  
	 	  
	 	  

	  
	 	  
	 	  

	  
	 	  
	 	  

	  
	 	  
	 	  

 SECURITIES ACCOUNTS 
  

					
	 Name of Grantor
	 	 Name of Institution
	 	 Account Number

	  
	 	  
	 	  

	  
	 	  
	 	  

	  
	 	  
	 	  

	  
	 	  
	 	  

	  
	 	  
	 	  

 EXHIBIT C 

(See Section 3.7 of Security Agreement) 

LETTER-OF-CREDIT RIGHTS 

CHATTEL PAPER 

 EXHIBIT D 

(See Section 3.10 and 3.11 of Security Agreement) 

INTELLECTUAL PROPERTY RIGHTS1 

 

	1 	 Describe all (i) Intellectual Property that is registered or subject to applications for registration,
(ii) Internet Domain Names and (iii) Material Intellectual Property and material Software, separately identifying that owned and licensed to the Grantor and including for each of the foregoing items (1) the owner, (2) the title,
(3) the jurisdiction in which such item has been registered or otherwise arises or in which an application for registration has been filed, (4) as applicable, the registration or application number and registration or application date and
(5) any IP Licenses or other rights (including franchises) granted by the Grantor with respect thereto. 

 EXHIBIT E 

[RESERVED] 

 EXHIBIT F 

(See Section 3.11 of Security Agreement) 

FIXTURES 
 I. Legal description,
county and street address of property on which Fixtures are located (by Grantor): 
  

	
	 II. Name and Address of Record Owner:

  

					
	 	 		 	
	 	 		 	
	 	 		 	
	 	 		 	

 EXHIBIT G 

(See Section 3.13 of Security Agreement and Definition of “Pledged Collateral”) 

LIST OF PLEDGED COLLATERAL, SECURITIES AND OTHER INVESTMENT PROPERTY 

STOCKS 
  

											
	 Name of Grantor
	  	 Issuer
	  	 Certificate Number(s)
	  	 Number of Shares
	  	 Class of Stock
	  	 Percentage of
Outstanding Shares

						
	  
	  	  
	  	  
	  	  
	  	  
	  	  

						
	  
	  	  
	  	  
	  	  
	  	  
	  	  

						
	  
	  	  
	  	  
	  	  
	  	  
	  	  

						
	  
	  	  
	  	  
	  	  
	  	  
	  	  

 BONDS 

 

											
	 Name of Grantor
	  	 Issuer
	  	 Number
	  	 Face Amount
	  	 Coupon Rate
	  	 Maturity

						
	  
	  	  
	  	  
	  	  
	  	  
	  	  

						
	  
	  	  
	  	  
	  	  
	  	  
	  	  

						
	  
	  	  
	  	  
	  	  
	  	  
	  	  

						
	  
	  	  
	  	  
	  	  
	  	  
	  	  

 GOVERNMENT
SECURITIES 
  

													
	 Name of Grantor
	  	 Issuer
	  	 Number
	  	 Type
	  	 Face Amount
	  	 Coupon Rate
	  	 Maturity

							
	  
	  	  
	  	  
	  	  
	  	  
	  	  
	  	  

							
	  
	  	  
	  	  
	  	  
	  	  
	  	  
	  	  

							
	  
	  	  
	  	  
	  	  
	  	  
	  	  
	  	  

							
	  
	  	  
	  	  
	  	  
	  	  
	  	  
	  	  

 OTHER
SECURITIES OR OTHER INVESTMENT PROPERTY 
 (CERTIFICATED AND UNCERTIFICATED) 

 

							
	 Name of Grantor
	  	 Issuer
	  	 Description of Collateral
	  	 Percentage Ownership Interest

				
	  
	  	  
	  	  
	  	  

				
	  
	  	  
	  	  
	  	  

				
	  
	  	  
	  	  
	  	  

				
	  
	  	  
	  	  
	  	  

[Add description of custody accounts or arrangements with securities intermediary, if applicable] 

 EXHIBIT H 

(See Section 3.1 of Security Agreement) 

OFFICES IN WHICH FINANCING STATEMENTS HAVE BEEN FILED 

 EXHIBIT I 

(See Definition of “Commercial Tort Claim”) 

COMMERCIAL TORT CLAIMS 
 {NOTE:
SPECIFICALLY DESCRIBE THE CLAIM (I.E. PARTIES, DESCRIPTION OF THE 
 DISPUTE, CASE NUMBER – IF AVAILABLE)—SEE OFFICIAL
COMMENT 5 TO SECTION 9-108 
 OF THE UCC}. 

 

							
	 Name of Grantor
	  	 Description of Claim
	  	 Parties
	  	 Case Number; Name of Court
where Case was
Filed

				
	  
	  	  
	  	  
	  	  

				
	  
	  	  
	  	  
	  	  

 EXHIBIT J 

(See Section 4.8 of Security Agreement) 

AMENDMENT 
 This Amendment, dated
[_____] is delivered pursuant to Section 4.8 of the Security Agreement referred to below. All defined terms herein shall have the meanings ascribed thereto or incorporated by reference in the Security Agreement. The undersigned hereby certifies
that the representations and warranties in Article III of the Security Agreement are and continue to be true and correct. The undersigned further agrees that this Amendment may be attached to that certain Pledge and Security Agreement, dated
May 31, 2021 among the undersigned, as the Grantors, and JPMorgan Chase Bank, N.A., as the Administrative Agent, (as amended, restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Security
Agreement”) and that the Collateral listed on Schedule I to this Amendment shall be and become a part of the Collateral referred to in said Security Agreement and shall secure all Secured Obligations referred to in the Security
Agreement. 
  

			
	By:	 	 
	Name:	 	 
	Title:	 	 

 Schedule I to Amendment to Security Agreement 

COMMERCIAL TORT CLAIMS 
 {NOTE:
SPECIFICALLY DESCRIBE THE CLAIM (I.E. PARTIES, DESCRIPTION OF THE 
 DISPUTE, CASE NUMBER – IF AVAILABLE)—SEE OFFICIAL
COMMENT 5 TO SECTION 9-108 
 OF THE UCC}. 

 

							
	 Name of Grantor
	  	 Description of Claim
	  	 Parties
	  	 Case Number; Name of Court
where Case was
Filed

				
	  
	  	  
	  	  
	  	  

				
	  
	  	  
	  	  
	  	  

 ANNEX I TO PLEDGE AND SECURITY AGREEMENT 

Reference is hereby made to the Pledge and Security Agreement (as amended, restated, supplemented or otherwise modified from
time to time, the “Security Agreement”), dated as of May 31, 2022 by and among [Borrower], the Initial Grantors (as defined in the Security Agreement), and JPMorgan Chase Bank, N.A., and certain other entities which become
parties to the Security Agreement from time to time, including, without limitation, those that become party thereto by executing a Security Agreement Supplement in substantially the form hereof (such parties, including the undersigned, together with
the other Grantors party thereto, the “Grantors”), in favor of JPMorgan Chase Bank, N.A., as Administrative Agent (the “Administrative Agent”), for the benefit of the Secured Parties under the Credit Agreement. Each
capitalized terms used herein and not defined herein shall have the meanings given to it in the Security Agreement. 
 By
its execution below, the undersigned, [NAME OF NEW GRANTOR], a [__________________________] [corporation] [partnership] [limited liability company] (the “New Grantor”) agrees to become, and does hereby become, a Grantor under the
Security Agreement and agrees to be bound by such Security Agreement as if originally a party thereto. The New Grantor hereby pledges, assigns and grants to the Administrative Agent, on behalf of and for the ratable benefit of the Secured Parties, a
security interest in all of the New Grantor’s right, title and interest in and to the Collateral, whether now owned or hereafter acquired, to secure the prompt and complete payment and performance of the Secured Obligations. 

By its execution below, the New Grantor represents and warrants as to itself that all of the representations and warranties
contained in the Security Agreement are true and correct in all respects as of the date hereof. The New Grantor represents and warrants that the supplements to the Exhibits to the Security Agreement attached hereto are true and correct in all
respects and such supplements set forth all information required to be scheduled under the Security Agreement. The New Grantor shall take all steps necessary to perfect, in favor of the Administrative Agent, a first-priority security interest in and
lien against the New Grantor’s Collateral, including, without limitation, delivering all certificated Pledged Collateral to the Administrative Agent (and other Collateral required to be delivered under the Security Agreement), and taking all
steps necessary to properly perfect the Administrative Agent’s interest in any uncertificated Pledged Collateral. 
 IN
WITNESS WHEREOF, [NAME OF NEW GRANTOR], a [__________________] [corporation] [partnership] [limited liability company] has executed and delivered this Annex I counterpart to the Security Agreement as of this [__] day of [________]. 

 

			
	[NAME OF NEW GRANTOR]
	By:	 	
	Name:	 	 
	Title:Exhibit
10.1

 

AMENDED
AND RESTATED CONSULTING AGREEMENT

 

This
Amended and Restated Consulting Agreement (“Agreement”) is made this 1st day of June 2022 (the “Effective Date”)
by and between ACORN ENERGY, INC., a corporation organized under the laws of Delaware (the “Company”) and TRACY CLIFFORD
CONSULTING, LLC, a limited liability company organized under the laws of South Carolina (“Consultant”), and amends, restates
and replaces in its entirety the Consulting Agreement dated as of June 1, 2018 by and between Company and Consultant. The Company and
Consultant may be referred to herein collectively as the “Parties” or individually as a “Party”.

 

WHEREAS,
Tracy Clifford (“Clifford”) is the owner of Consultant and has specialized skills, experience and knowledge to assist Company
with its financial reporting and related obligations;

 

WHEREAS,
the Company desires to retain Consultant as an independent contractor to provide to Company Clifford’s services as part-time Chief
Financial Officer (“CFO”) of the Company and part-time Chief Operating Officer (“COO”) of the Company’s
OmniMetrix, LLC subsidiary (“OmniMetrix”), and Consultant desires to provide such services to the Company; and

 

WHEREAS,
the Company and the Consultant wish to enter into an agreement with respect to the provision of such services upon the terms provided
herein;

 

NOW,
THEREFORE, for and in consideration of the mutual agreements contained herein and other good and valuable consideration, the Parties,
intending to be legally bound, agree as follows:

 

1.
Nature and Term of Consultant Position.

 

(a)
Consultant will provide Clifford’s services to the Company during the Consulting Term (as defined below) in the nature of certain
financial-related and other consulting services as would be expected of a part-time CFO for the Company and part-time COO of OmniMetrix,
as reasonably may be requested of Consultant by the Chief Executive Officer or designated officer of the Company (“Consulting Services”).

 

(b)
Company will use the Consulting Services of Consultant, and Consultant will provide such Consulting Services to the Company, from June
1, 2022 through the earlier of (i) the date of its termination as provided in Section 1(c) and (ii) June 1, 2023 (the “Consulting
Term”). This Agreement shall automatically renew for an additional one-year Consulting Term upon the expiration of each Consulting
Term unless otherwise terminated as provided in Section 1(c).

 

(c)
This Agreement will terminate immediately upon the death or disability of Clifford. Consultant may terminate this Agreement, for any
reason or no reason at all, upon thirty (30) days written notice to the Company. The Company may terminate this Agreement, for cause
or for any other reason or no reason at all, effective immediately upon written notice to Consultant. In the event of such termination
by the Company other than for cause, Consultant shall be entitled to a continuation, for a period of six months following the date of
such termination by the Company, of the monthly cash compensation in effect for the Consulting Services at the time of such termination
by the Company.

 

    	 

    	 

    

 

(d)
Clifford will be an independent contractor and not an Employee of Company and will determine how to accomplish tasks as may be assigned
by the Company. Each party is responsible for all its own tax matters related to this Agreement. Consultant solely shall be responsible
for determining and paying any and all taxes, withholdings, levies and assessments on any compensation payable hereunder. Company shall
not be responsible for payment of workers’ compensation, disability benefits, unemployment, medical or life insurance or income
tax withholding or other taxes for Consultant. Clifford acknowledges that she will not have the right to be included in any employee
benefit plans that may be provided to employees of Company.

 

(e)
With respect to the provision of Consulting Services as part-time CFO of the Company, Clifford shall perform reasonable, usual and customary
duties of a CFO and shall act as principal accounting officer and principal financial officer of the Company as defined in applicable
regulations of the Securities and Exchange Commission. Consultant warrants that Clifford has no outstanding agreement or obligation that
conflicts with any of the provisions of this Agreement, or that would preclude or in any way compromise Consultant or Clifford or breach
any duty of confidentiality owed by Consultant or Clifford to others, arising from compliance with the provisions hereof. The Parties
acknowledge that Consultant and Clifford provide and will continue to provide related consulting services to other clients.

 

(f)
If prior commitments preclude Clifford from performing any Consulting Services when requested by the Company, the Parties will determine
a revised schedule that reasonably accommodates both commitments; except that in the event of an emergency, Clifford will be available
at least telephonically. All out-of-pocket travel expenses shall be handled as provided in Section 2(a).

 

(g)
During the Consulting Term, Clifford may be located anywhere in the United States of America provided that Clifford remains available
to Company by means of telephone and emails.

 

2.
Compensation and Payment.

 

(a)
Consultant will be compensated in cash at the rate of $17,500.00 per month for performance of the Consulting Services. Company shall
reimburse Consultant for reasonable and necessary expenses, related to all travel or otherwise, which shall include but is not limited
to airline, hotel, transportation, and meals. The Company shall pay Consultant monthly by no later than the 1st of each month, which
shall be paid in advance of the month worked.

 

(b)
As additional compensation for the Consulting Services, Company shall grant Consultant 50,000 stock options on June 1, 2022, exercisable
at an exercise price equal to the then-current stock price. Twenty-five percent (25%) of the options shall be vested immediately; the
remaining options shall vest in three equal increments on September 1, 2022, December 1, 2022 and March 1, 2023. The exercise period
and other terms shall otherwise be substantially the same as the terms of the options granted by the Company to its outside directors.

 

    	 

    	 

    

 

(c)
Company shall have Directors and Officers insurance and errors and omissions liability insurance in the amount of $3.0 million dollars
($3,000,000), naming Consultant as additional insured as chief financial officer or alternatively shall provide a letter from the carrier
confirming that Clifford is a person covered under the policy on the same basis as the other executive officers of the Company. Company
shall provide a copy of the policy declaration page, or the equivalent, to the Consultant upon the activation of the policy and thereafter
annually as evidence of current compliance with its insurance obligation under this Agreement. Company shall pay the premium on all such
liability insurance.

 

3.
Liabilities, Indemnification and Warranties

 

(a)
It is understood and agreed that Consultant’s services will include advice and recommendations to Company management, but all decisions
in connection with the application and use of such advice shall be the sole and exclusive responsibility and decision of Company. Company
shall be responsible for the accuracy, integrity and completeness of all data and information provided to Consultant for purposes of
performance of the Consulting Services. Consultant shall not be under any obligation to search for errors or flaws in Company’s
data.

 

(b)
Company shall fully indemnify, defend and hold harmless Consultant, its members, officers, consultant, employees, agents, and successors
from and against any and all losses, claims, liability, damages, demands, suits, actions, costs, expenses (including, without limitation,
settlement costs, attorney’s fees and court costs) directly or indirectly related to or in connection with this Agreement, Consultant’s
performance or failure to perform under this Agreement other than as may arise from Clifford’s gross negligence or willful misconduct.

 

4.
Confidentiality

 

(a)
Consultant shall not disclose any information of Company (“Confidential Information”), relating to (i) the customers, clients,
employees and accounts; (ii) business methods, systems, plans, policies, and personnel; or (iii) the technical data, trade secrets, or
know-how, including, but not limited to, research, product plans, products, services, markets, software, developments, inventions, processes,
formulas, technology, designs, drawings, engineering, hardware, configuration information, marketing, taxes, finances or other business
information, either directly or indirectly, whether in writing, orally or by drawings or inspection of parts or equipment. All such information
is considered Confidential Information, whether or not marked as such, and is the sole and exclusive property of the Company. This provision
will survive the termination of this Agreement for a period of three (3) years unless disclosures is required pursuant to court order.

 

(b)
Consultant acknowledges that the services to be rendered by the Consultant are of a special, unique and extraordinary character, and
in connection with such services, Consultant will have access to Confidential Information vital to Company’s business. By reason
of this, Consultant agrees that if Consultant violates any of the provisions of this Agreement with respect to confidentiality, Company
would sustain irreparable harm, and therefore, in addition to any other remedies that Company may have as provided by law, Company will
be entitled, without proof or bond, to equitable relief, including specific performance and an injunction restraining Consultant from
committing or continuing any such violation of this Agreement.

 

    	 

    	 

    

 

(c)
Except to the extent necessary to perform the Consulting Services to be performed by Consultant under this Agreement, Consultant will
not copy, reproduce, use, distribute, disclose or otherwise disseminate the Confidential Information, or any physical embodiment thereof,
and will in no event take any action causing, or fail to take any action necessary in order to prevent, any Confidential Information
disclosed to or developed by Consultant to lose its character as or cease to be Confidential Information.

 

5.
Notices.

 

(a)
At any time upon written request of Company, and in the event upon termination of this Agreement for any reason, Consultant will promptly
deliver to Company or destroy upon direction of the Company all property belonging to Company, including without limitation all Confidential
Information and all embodiments thereof then in its use, custody, control or possession. Compliance with this Section shall not operate
to limit Company’s rights to enforcement of this or any other covenant, including enforcement by injunctive relief.

 

(b)
Any notice, request, demand or other communication required or permitted to be given under this Agreement will be sufficient if in writing,
and if delivered personally, or sent by Priority, Certified or Registered mail to the Party’s last known address.

 

6.
Assignment.

 

This
Agreement will inure to the benefit of, and be binding upon Company and its successors and assigns. This Agreement will be binding on
Consultant, Consultant’s successors, assigns, heirs, executors or administrators, and legal representatives. However, this Agreement
will not be assignable by Consultant nor the Company.

 

7.
Severability

 

The
provisions of this Agreement are deemed by the Parties to be severable, and the invalidity or unenforceability of any one or more of
the provisions of this Agreement shall not affect the validity or enforceability of any other provision.

 

8.
Applicable Law

 

This
Agreement shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to
choice of law rules.

 

    	 

    	 

    

 

9.
Acknowledgements.

 

The
Parties acknowledge and agree that: (a) each has read and understands the terms and conditions stated in this Agreement; (b) each has
had the opportunity to consult with independent counsel and that each has, in fact, availed itself of such right; (c) each is bound by
the terms and conditions of this Agreement; (d) this Agreement is made, entered into and is effective as of the Effective Date; (e) that
each Person signing on behalf of each Party has the requisite right, power and authority to execute this Agreement on behalf of said
Party; and (f) each Party contributed to the drafting of this Agreement and as such, any ambiguity should not be construed in favor of
or against one Party or the other.

 

10.
Counterparts.

 

This
Agreement and any amendment or supplement hereto may be executed in any number of counterparts, each of which shall be deemed an original,
and all of which taken together shall constitute one and the same instrument. This Agreement shall become binding when any number of
counterparts, individually or taken together, shall bear the signatures of both Parties. This Agreement may be executed and delivered
by facsimile or any other electronic means, including “.pdf” or “.tiff” files, and any facsimile or other scanned
copy of a signed copy of this Agreement shall constitute an original for all purposes.

 

11.
Limitation on Liability.

 

NOTWITHSTANDING
ANYTHING TO THE CONTRARY CONTAINED HEREIN, NEITHER PARTY TO THIS AGREEMENT SHALL BE LIABLE TO OR OTHERWISE RESPONSIBLE TO THE OTHER PARTY
OR ANY AFFILIATE OF THE OTHER PARTY FOR LOST REVENUES OR PROFITS, OR INCIDENTAL, CONSEQUENTIAL, PUNITIVE, EXEMPLARY OR MULTIPLIED DAMAGES
THAT ARISE OUT OF OR RELATE TO THIS AGREEMENT OR THE PERFORMANCE OR BREACH HEREOF OR THEREOF, EXCEPT (A) IN CONNECTION WITH THE INDEMNIFICATIONS
OBLIGATIONS HEREIN OR (B) TO THE EXTENT THAT SUCH DAMAGES WERE ACTUALLY PAID TO A THIRD PARTY PURSUANT TO A THIRD PARTY CLAIM.

 

12.
Entire Agreement.

 

This
is the entire Agreement of the Parties, and there are no other outstanding Agreements, provisions, or Schedules on the subject matters
not set forth herein. This Agreement may not be amended except by a writing signed by all Parties.

 

13.
Representation.

 

Both
Parties have had the opportunity to seek legal counsel regarding any and all aspects of this Agreement.

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the Parties have set their hands and seals as of the day and year first above written.

 

	ACORN
    ENERGY, INC.	 
	 	 	 
	By:	 	 
	 	Jan
    H. Loeb, President and CEO	 
	 	 	 
	TRACY
    CLIFFORD CONSULTING, LLC	 
	 	 	 
	By:	 	 
	 	Tracy
    Clifford, Member

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