Document:

Exhibit 10.01

 

EXECUTION VERSION

 

AMENDMENT NO. 1

 

AMENDMENT NO. 1, dated as of January
31, 2019 (this “Amendment”), among ROLLER BEARING COMPANY OF AMERICA, INC., a Delaware corporation (the
“Borrower”), RBC BEARINGS INCORPORATED, a Delaware corporation (“Holdings”), the other
Credit Parties, the Lenders party hereto and WELLS FARGO BANK, NATIONAL ASSOCIATION, as administrative agent for the Lenders
(in such capacity, the “Administrative Agent”), to the Credit Agreement dated as of April 24, 2015 (as amended,
restated, amended and restated or otherwise modified from time to time prior to the date hereof, the “Credit Agreement”),
by and among the Borrower, Holdings, the Administrative Agent, the Collateral Agent, the Swingline Lender, Letter of Credit Issuer
and the Lenders referred to therein (the “Existing Lenders”). Capitalized terms used and not otherwise defined
herein shall have the meanings assigned to them in the Credit Agreement.

 

WHEREAS, the Borrower desires to amend the
Credit Agreement to, among other things, (i) refinance the existing Revolving Credit Loans (the “Original Revolving Credit
Loans”) and the existing Revolving Credit Commitments (the “Original Revolving Credit Commitments”)
outstanding immediately prior to the Amendment No. 1 Effective Date (as defined below), with a new senior secured revolving credit
facility in an aggregate principal amount of $250,000,000 (the “New Revolving Credit Facility”, and Revolving
Credit Loans thereunder, the “New Revolving Credit Loans” and the commitments thereunder, the “New
Revolving Credit Commitments”), pursuant to Section 2.15 of the Credit Agreement on the terms set forth herein and (ii)
permanently terminate all Original Revolving Commitments and prepay all Original Revolving Credit Loans;

 

WHEREAS, subject to the terms herein, each
Person party hereto who has delivered a signature page as a Lender agreeing to provide New Revolving Credit Loans and New Revolving
Credit Commitments (each such Person who is an Existing Lender, a “Continuing Lender”; each such Person who
is not an Existing Lender, an “Additional Lender”; and each Continuing Lender and Additional Lender, a “New
Revolving Credit Lender”) has agreed to provide New Revolving Credit Commitments in the amount set forth next to its
name in Schedule 1.1(c) hereto. Any Lender holding Original Revolving Credit Loans and Original Revolving Credit Commitments immediately
prior to the effectiveness of this Amendment that is not a New Revolving Credit Lender is referred to herein as an “Exiting
Lender”. In the event that any Lender is a Continuing Lender but receives an allocation of New Revolving Credit Commitments
and New Revolving Credit Loans in an amount less than the amount of its Original Revolving Credit Commitments and Original Revolving
Credit Loans, such Lender shall be considered an Exiting Lender with respect to the difference between the amount of its Original
Revolving Credit Loans and the allocated amount of its New Revolving Credit Loans;

 

WHEREAS, as of the Amendment No. 1 Effective
Date, there are no outstanding Term Loans under the Credit Agreement; and

 

WHEREAS, Wells Fargo Securities, LLC and Merrill
Lynch, Pierce, Fenner & Smith Incorporated (together with their respective designated affiliates, the “Lead Arrangers”)
are acting as the sole joint lead arrangers and bookrunners in connection with this Amendment;

 

     

     

    

  

NOW, THEREFORE, in consideration of the premises
and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto, intending to be legally bound hereby, agree as follows:

 

Section 1.             Amendments.
  Each party hereto agrees that, effective as of the Amendment No. 1 Effective Date, the Credit Agreement
is hereby amended as follows:

 

(a)             The
following defined terms shall be added to Section 1.1 of the Credit Agreement in alphabetical order:

 

i.                “Amendment
No. 1” shall mean Amendment No. 1 to this Agreement dated as of the Amendment No. 1 Effective Date.

 

ii.               “Amendment
No. 1 Effective Date” shall mean January 31, 2019.

 

iii.              “Amendment
No. 1 Arrangers” shall mean Wells Fargo Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated,
as joint lead arrangers and bookrunners for Amendment No. 1.

 

iv.              “Amendment
No. 1 Co-Documentation Agents” shall mean Keybank National Association and Citizens Bank, N.A., as co-documentation
agents for Amendment No. 1.

 

v.               “Amendment
No. 1 Syndication Agent” shall mean Bank of America, N.A., as syndication agent for Amendment No. 1.

 

vi.              “Bail-In
Action” shall mean the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in
respect of any liability of an EEA Financial Institution.

 

vii.             “Bail-In
Legislation” shall mean, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the
European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time
which is described in the EU Bail-In Legislation Schedule.

 

viii.            “Beneficial
Ownership Certification” shall mean a certification regarding beneficial ownership as required by the Beneficial Ownership
Regulation.

 

ix.              “Beneficial
Ownership Regulation” shall mean 31 C.F.R. § 1010.230.

 

x.               “Benefit
Plan” shall mean any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of
ERISA, (b) a “plan” as defined in Section 4975 of the Code or (c) any Person whose assets include (for purposes of
ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee
benefit plan” or “plan”.

 

xi.               “Delaware
LLC” shall mean any limited liability company organized or formed under the laws of the State of Delaware.

 

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xii.              “Delaware
Divided LLC” shall mean any Delaware LLC which has been formed upon the consummation of a Delaware LLC Division.

 

xiii.             “Delaware
LLC Division” shall mean the statutory division of any Delaware LLC into two or more Delaware LLCs pursuant to Section
18-217 of the Delaware Limited Liability Company Act.

 

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

 

xv.            
“EEA Member Country” shall mean any of the member states of the European Union, Iceland, Liechtenstein, and
Norway.

 

xvi.            “EEA
Resolution Authority” shall mean any public administrative authority or any person entrusted with public administrative
authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

xvii.           “EU
Bail-In Legislation Schedule” shall mean the EU Bail-In Legislation Schedule published by the Loan Market Association
(or any successor person), as in effect from time to time.

 

xviii.          “PTE”
shall mean a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended
from time to time.

 

xix.            
“Replacement Rate” shall have the meaning provided in Section 2.10(d).

 

xx.              “Write-Down
and Conversion Powers” shall mean, with respect to any EEA Resolution Authority, the write-down and conversion powers
of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down
and conversion powers are described in the EU Bail-In Legislation Schedule.

 

(b)             Section
1.1 of the Credit Agreement is amended by restating each of the following definitions therein as follows:

 

i.                “Co-Documentation
Agents” shall mean the Amendment No. 1 Co-Documentation Agents.

 

ii.               “Consolidated
Senior Secured Debt to Consolidated EBITDA Ratio” shall mean, as of any date of determination, the ratio of (1) Consolidated
Senior Secured Debt as of such date of determination, minus (x) all domestic U.S. cash and Cash Equivalents of Holdings and its
Restricted Subsidiaries and (y) 100% of the aggregate amount of cash and Cash Equivalents in accounts of Holdings and its Restricted
Subsidiaries outside of the United States, in each case, other than cash and Cash Equivalents listed as “restricted cash”
on the consolidated balance sheet of Holdings and the Restricted Subsidiaries to (2) Consolidated EBITDA of Holdings for the Test
Period then last ended.

 

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iii.              “Consolidated
Total Debt to Consolidated EBITDA Ratio” shall mean, as of any date of determination, the ratio of (a) Consolidated Total
Debt as of such date of determination, minus (x) all domestic U.S. cash and Cash Equivalents of Holdings and its Restricted Subsidiaries
and (y) 100% of the aggregate amount of cash and Cash Equivalents in accounts of Holdings and its Restricted Subsidiaries outside
of the United States, in each case, other than cash and Cash Equivalents listed as “restricted cash” on the consolidated
balance sheet of Holdings and the Restricted Subsidiaries to (b) Consolidated EBITDA of Holdings for the Test Period then last
ended.

 

iv.              “Existing
Letters of Credit” shall mean each letter of credit existing on the Amendment No. 1 Effective Date and identified on
Schedule 1.1(a) of Amendment No. 1.

 

v.               “Joint
Lead Arrangers and Bookrunners” shall mean the Amendment No. 1 Arrangers.

 

vi.              “Letter
of Credit Commitment” shall mean, with respect to each Letter of Credit Issuer, the commitment of such Letter of Credit
Issuer to issue Letters of Credit up to the amount set forth opposite the name of such Letter of Credit Issuer on Schedule 1.1(c)
or such larger amount for all Letters of Credit Commitments made in aggregate not to exceed the lesser of $25,000,000 and the Revolving
Credit Commitment as the Administrative Agent and the applicable Letter of Credit Issuer may agree.

    

vii.             “Letter
of Credit Issuer” shall mean (a) Wells Fargo Bank, National Association, solely with respect to the Existing Letters
of Credit listed on Schedule 1.1(a) of Amendment No. 1 through, and including, their respective final expiry dates and for so long
as such Existing Letters of Credit are issued and outstanding, (b) Wells Fargo Bank, National Association and each other Revolving
Credit Lender with a Letter of Credit Commitment, and (c) in each case, any of their respective Affiliates or any replacement,
additional bank or successor pursuant to Section 3.6. A Letter of Credit Issuer may, in its discretion, arrange for one or more
Letters of Credit to be issued by Affiliates of the Letter of Credit Issuer, and in each such case the term “Letter of Credit
Issuer” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate. In the event that there
is more than one Letter of Credit Issuer at any time, references herein and in the other Credit Documents to the Letter of Credit
Issuer shall be deemed to refer to the Letter of Credit Issuer in respect of the applicable Letter of Credit or to all Letter of
Credit Issuers, as the context requires.

 

viii.            “Revolving
Credit Maturity Date” shall mean January 31, 2024, or if such date is not a Business Day, the next preceding Business
Day.

 

ix.             
“Sanctions” means economic or financial sanctions administered or enforced from time to time by (a) the U.S.
government, including those administered by the U.S. Department of the Treasury, Office of Foreign Assets Control or the U.S. Department
of State or (b) the United Nations Security Council, the European Union, any European Union member state or Her Majesty’s
Treasury of the United Kingdom or other relevant sanctions authority.

 

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x.              “Sanctioned
Person” shall mean an individual or entity that is, or any entity owned or controlled by, any individual or entity that
is (a) designated on any Sanctions list, (b) located, organized or resident in any Sanctioned Country or (c) otherwise the subject
of Sanctions.

 

xi.              “Senior
Secured Leverage Test” shall mean, as of any date of determination, with respect to the last day of the most recently
ended Test Period, the Consolidated Senior Secured Debt to Consolidated EBITDA Ratio shall be no greater than 3.50 to 1.00.

 

xii.             “Syndication Agent” shall mean the Amendment No. 1 Syndication Agent.

 

(c)             The
definition of “Applicable Margin” in Section 1.1 of the Credit Agreement is amended by replacing clause (i) and the
table thereof with the following:

 

“(i)            (a) until delivery of financial
statements and a related Compliance Certificate for the first full fiscal quarter commencing on or after the Amendment No. 1 Effective
Date, in connection with the Revolving Credit Loans and Swingline Loans, (x) for LIBOR Loans, 0.75%, (y) for ABR Loans, 0.00%
and (z) for Letter of Credit Fees, 0.75% per annum, and (b) thereafter, in connection with the Revolving Credit Loans and Swingline
Loans, the percentages per annum set forth in the table below, based upon the Consolidated Total Debt to Consolidated EBITDA Ratio
as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 9.1(d):

 

	 	 	Consolidated Total	 	 	 	 	 	 	 	 	 
	 	 	Debt to Consolidated	 	Letter of Credit	 	 	 	 	 	 	 
	Pricing Level	 	EBITDA Ratio	 	Fees	 	 	ABR Loans	 	 	LIBOR Loans	 
	I	 	>  3.50x	 	 	1.75	%	 	 	0.75	%	 	 	1.75	%
	 	 	< 3.50x	 	 	 	 	 	 	 	 	 	 	 	 
	II	 	but > 2.75x	 	 	1.50	%	 	 	0.50	%	 	 	1.50	%
	 	 	< 2.75x	 	 	 	 	 	 	 	 	 	 	 	 
	III	 	but >  2.0x	 	 	1.25	%	 	 	0.25	%	 	 	1.25	%
	 	 	< 2.0x	 	 	 	 	 	 	 	 	 	 	 	 
	IV	 	but > 1.25x	 	 	1.00	%	 	 	0.00	%	 	 	1.00	%
	V	 	< 1.25x	 	 	0.75	%	 	 	0.00	%	 	 	0.75%”	 

  

(d)            The
cover page to the Credit Agreement is amended and restated in its entirety with the cover page attached hereto as Exhibit A.

 

(e)             Section
1.1 of the Credit Agreement is amended by adding a new proviso at the end of the definition of “Federal Funds Effective Rate”
as follows:

 

“; provided, further,
that the Federal Funds Effective Rate shall not be less than 0% per annum.”

  

(f)              Section
1.1 of the Credit Agreement is amended by replacing the first proviso in the definition of “LIBOR Rate” with the following:

 

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“provided, that if any such rate
(including, without limitation, any Replacement Rate with respect thereto) shall be less than zero, such rate shall be deemed
to be zero for purposes of this Agreement.”

 

(g)             Section
1.1 of the Credit Agreement is amended by deleting “or” and inserting a comma before subclause (v) in “Lender
Default” and adding a new subsection (vi) therein as follows:

 

“or (vi) a Lender has become the subject
of a Bail-In Action.”

 

(h)             Section
2.10 of the Credit Agreement is amended by relabeling the existing clause (d) as clause (e) and adding the following new clause
(d) before such clause (e):

 

“(d)          Notwithstanding
anything to the contrary in Sections 2.10(a) and (b) above, if the Administrative Agent has made the determination (such
determination to be conclusive absent manifest error) that (i) the circumstances described in Section 2.10(a)(i) have arisen
and that such circumstances are unlikely to be temporary, (ii) any applicable interest rate specified herein is no longer a widely
recognized benchmark rate for newly originated loans in the U.S. syndicated loan market in the applicable currency, (iii) the
applicable supervisor or administrator (if any) of any applicable interest rate specified herein or any Governmental Authority
having, or purporting to have, jurisdiction over the Administrative Agent has made a public statement identifying a specific date
after which any applicable interest rate specified herein shall no longer be used for determining interest rates for loans in
the U.S. syndicated loan market in the applicable currency or (iv) syndicated loans currently being executed, or that include
language similar to that contained in this Section 2.10(d) are being executed or amended (as applicable) to incorporate or adopt
a new benchmark interest rate to replace the LIBOR Rate, then the Administrative Agent may, to the extent practicable (in consultation
with the Borrower and as determined by the Administrative Agent to be generally in accordance with similar situations in other
transactions in which it is serving as administrative agent or otherwise consistent with market practice generally), establish
a replacement interest rate (the “Replacement Rate”), in which case, the Replacement Rate shall, subject to
the next two sentences, replace such applicable interest rate for all purposes under the Credit Documents unless and until (A)
an event described in Section 2.10(a)(i), (d)(i), (d)(ii) or (d)(iii) occurs with respect to the Replacement
Rate or (B) the Administrative Agent (or the Required Lenders through the Administrative Agent) notifies the Borrower that the
Replacement Rate does not adequately and fairly reflect the cost to the Lenders of funding the Loans bearing interest at the Replacement
Rate. In connection with the establishment and application of the Replacement Rate, this Agreement and the other Credit Documents
shall be amended solely with the consent of the Administrative Agent and the Borrower, as may be necessary or appropriate, in
the opinion of the Administrative Agent, to effect the provisions of this Section 2.10(d). Notwithstanding anything to
the contrary in this Agreement or the other Credit Documents (including, without limitation, Section 13.1), such amendment
shall become effective without any further action or consent of any other party to this Agreement so long as the Administrative
Agent shall not have received, within five (5) Business Days of the delivery of such amendment to the Lenders, written notices
from such Lenders that in the aggregate constitute Required Lenders, with each such notice stating that such Lender objects to
such amendment. To the extent the Replacement Rate is approved by the Administrative Agent in connection with this clause (d),
the Replacement Rate shall be applied in a manner consistent with market practice; provided that, in each case, to the
extent such market practice is not administratively feasible for the Administrative Agent, such Replacement Rate shall be applied
as otherwise reasonably determined by the Administrative Agent (it being understood that any such modification by the Administrative
Agent shall not require the consent of, or consultation with, any of the Lenders).”

 

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(i)              Section
8 of the Credit Agreement is amended by adding a new subsection (8.23) as follows:

 

“Section 8.23 Beneficial Ownership
Certification. As of the Amendment No. 1 Effective Date, the information included in the Beneficial Ownership Certification
is true and correct in all respects.”

 

(j)              Section
8.2 of the Credit Agreement is amended by adding the following sentence at the end of the paragraph therein:

 

“No Credit Party is an EEA Financial
Institution.”

 

(k)              Section
8.20 of the Credit Agreement is amended and restated in its entirety as follows:

 

Section 8.20       
Anti-Terrorism; Anti-Money Laundering. No Credit Party nor any of its Restricted Subsidiaries or, to their knowledge,
any of their Related Parties (i) is in material violation of any Sanctions, the Trading with the Enemy Act or the International
Emergency Economic Powers Act, both, as amended, or the PATRIOT Act (collectively, the “Anti-Terrorism Laws”) or (ii)
is a Sanctioned Person. No part of the proceeds of any Credit Event hereunder will be used directly or to the knowledge of a Credit
Party, indirectly to fund any operations in, finance any investments or activities in or make any payments to, a Sanctioned Person
or a Sanctioned Country, or in any other manner that will result in any violation by any Person (including any Lender, the Joint
Lead Arrangers and Bookrunners, the Administrative Agent, the Letter of Credit Issuers or the Swingline Lender) of any Sanctions
or Anti-Terrorism Laws applicable to Holdings or such Restricted Subsidiary. Each Credit Party has implemented and maintains in
effect policies and procedures designed to ensure compliance by each Credit Party, their respective Subsidiaries and Related Parties
with applicable Sanctions and each Credit Party and Related Parties are in compliance with Anti-Terrorism Laws in all material
respects.

 

(l)              Section
9.1 of the Credit Agreement is amended by adding a new subsection (i) as follows:

 

“(i)            Patriot Act or Beneficial
Ownership Regulation. Promptly following any request therefor, information and documentation reasonably requested by the Administrative
Agent or any Lender for purposes of compliance with applicable “know your customer” and anti-money-laundering rules
and regulations, including, without limitation, the PATRIOT Act and the Beneficial Ownership Regulation and prompt notice to the
Lenders of any change in the information provided in the Beneficial Ownership Certificate that would result in a change to the
list of beneficial owners identified in such certificate.”

 

(m)            Section
9.6 of the Credit Agreement is amended by replacing the following phrase “laws administered by OFAC and the Foreign Corrupt
Practices Act of 1977, as amended, and the rules and regulations promulgated thereunder” with the following phrase “Sanctions
and Anti-Corruption Laws”.

 

(n)             Section
9.11 of the Credit Agreement is amended by replacing the second parenthetical thereto with “(including pursuant to a Permitted
Acquisition, including, without limitation, upon the formation of any Subsidiary that is a Delaware Divided LLC)”.

 

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(o)            
Section 10.1 of the Credit Agreement is amended by replacing “$70,000,000” in subsection (r) with “$100,000,000”.

 

(p)             The
first paragraph of Section 10.3 of the Credit Agreement is amended by inserting the following phrase “(including, in each
case, pursuant to a Delaware LLC Division)” before “, except that”.

 

(q)            
Section 10.7 of the Credit Agreement is amended by deleting the letter “(a)” and the following language “and
(b) the Consolidated Interest Coverage Ratio as of the last day of any Test Period to be less than 2.75 to 1.00”.

 

(r)             The
Credit Agreement is amended by adding a new Section 12.13 therein as follows:

 

“Section 12.13    Certain ERISA Matters.

 

(a) Each Lender (x) represents and warrants,
as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party
hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and each other
Joint Lead Arranger and Bookrunner and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit
of the Borrower or any other Credit Party, that at least one of the following is and will be true:

 

(i) such Lender is not using “plan
assets” (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender’s
entrance into, participations in, administration of and performance of the Loans, the Letters of Credit, the Commitments or this
Agreement,

 

(ii) the transaction exemption set
forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional
asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1
(a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption
for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined
by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration
of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement,

 

(iii) (A) such Lender is an investment
fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified
Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and
perform the Loans, the Letters of Credit, the Commitments and this Agreement, (C) the entrance into, participation in, administration
of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement satisfies the requirements of subsections
(b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part
I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance
of the Loans, the Letters of Credit, the Commitments and this Agreement, or

 

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(iv) such other representation,
warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

 

(b) In addition, (I) unless subclause (i)
in the immediately preceding clause (a) is true with respect to a Lender or (II) if such subclause (i) is not true with respect
to a Lender and such Lender has not provided another representation, warranty and covenant as provided in subclause (iv) in the
immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party
hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender
party hereto, for the benefit of, the Administrative Agent and each other Joint Lead Arranger and Bookrunner and their respective
Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Credit Party, that none of
the Administrative Agent or any other Joint Lead Arranger and Bookrunner or any of their respective Affiliates is a fiduciary with
respect to the assets of such Lender involved in such Lender’s entrance into, participation in, administration of and performance
of the Loans, the Letters of Credit, the Commitments and this Agreement (including in connection with the reservation or exercise
of any rights by the Administrative Agent under this Agreement, any Credit Document or any documents related hereto or thereto).”

 

(s)  Section 13.1 of the Credit Agreement is amended
by replacing the last paragraph therein as follows:

 

“Notwithstanding anything herein to the contrary the
Credit Documents may be amended to (i) add syndication or documentation agents and make customary changes and references related
thereto, (ii) add or modify “parallel debt” language in any jurisdiction in favor of the Collateral Agent or add Collateral
Agents and (iii) as the Administrative Agent reasonably determines appropriate in order to implement any Replacement Rate or otherwise
effectuate the terms of Section 2.10(d) in accordance with the terms of Section 2.10(d), in each case (i), (ii)
and (iii) with the consent of only the Borrower and the Administrative Agent and in the case of (ii) the Collateral Agent.”

 

(t)  Section 13.16 of the Credit Agreement is amended
by replacing the second to last sentence therein as follows:

 

“Each Lender, the Administrative Agent and each other
Agent agrees that it will not provide to prospective Transferees or to any pledgee referred to in Section 13.6 or to actual
or prospective, direct or indirect, contractual counterparties (or its advisors) in any swap, derivative or securitization transactions
to be entered into in connection with the Borrower and its obligations, or to any credit insurance provider relating to the Borrower
and its obligations, any of the Confidential Information unless such Person is advised of and agrees to be bound by the provisions
of this Section 13.16 or confidentiality provisions at least as restrictive as those set forth in this Section 13.16.”

 

(u)  The Credit Agreement is amended by adding a new
Section 13.22 therein as follows:

 

“Section 13.22.     Acknowledgement
and Consent to Bail-In of EEA Financial Institutions.

 

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Notwithstanding anything to the contrary in
any Credit Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges
that any liability of any EEA Financial Institution arising under any Credit Document, to the extent such liability is unsecured,
may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges
and agrees to be bound by:

 

(a) the application of any Write-Down and
Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party
hereto that is an EEA Financial Institution; and

 

(b) the effects of any Bail-in Action on any
such liability, including, if applicable:

 

(i) a reduction in full or in part
or cancellation of any such liability;

 

(ii) a conversion of all, or a portion
of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent entity, or a bridge
institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will
be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Credit Document; or

 

(iii) the variation of the terms
of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution Authority.”

 

Section 2.              New
Revolving Credit Commitments.

 

(a)              The Borrower and each New Revolving Credit
Lender hereby agree that, subject to the satisfaction of the conditions in Section 4 hereof, on the Amendment No. 1 Effective Date
(and for the avoidance of doubt, after giving effect to the amendments set forth in Section 1), the New Revolving Credit Commitment
of such New Revolving Credit Lender shall become effective and the Original Revolving Credit Commitments being replaced pursuant
to Section 2.15 of the Credit Agreement shall be considered permanently terminated. Pursuant to Section 2.15 of the Credit Agreement,
the New Revolving Credit Commitments shall be Revolving Credit Commitments for all purposes under the Credit Agreement and each
of the other Credit Documents and shall have terms identical to the Original Revolving Credit Commitments outstanding under the
Credit Agreement immediately prior to the date hereof (but after giving effect to all amendments hereunder).

 

(b)             Each New Revolving Credit Lender acknowledges
and agrees that, upon the Amendment No. 1 Effective Date, such New Revolving Credit Lender shall be a “Lender” under,
and for all purposes of, the Credit Agreement and the other Credit Documents, and shall be subject to and bound by the terms thereof,
and shall perform all the obligations of and shall have all rights of a Lender thereunder.

 

(c)            
After giving effect to such New Revolving Credit Commitments, the Revolving Credit Commitment of each Revolving Credit Lender
shall be as set forth on Schedule 1.1(c) hereto (and such Schedule 1.1(c) shall supersede any previous Schedule
1.1(c) to the Credit Agreement).

 

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(d)            The
Borrower shall prepay in full the outstanding principal amount of any Revolving Credit Loans outstanding immediately prior to the
Amendment No. 1 Effective Date, together with all accrued and unpaid interest thereon and all accrued and unpaid fees in respect
of the Revolving Credit Commitments outstanding immediately prior to the Amendment No. 1 Effective Date with the proceeds of the
New Revolving Credit Loans. Any Letters of Credit outstanding immediately prior to the Amendment No. 1 Effective Date shall be
deemed to be issued under the New Revolving Credit Commitments.

 

Section 3.              Representations
and Warranties. The Credit Parties represent and warrant to the Lenders and the Administrative Agent as of the Amendment
No. 1 Effective Date that:

 

(a)            At
the time of and immediately after giving effect to this Amendment, the representations and warranties set forth in the Credit Documents
are true and correct in all material respects (or if qualified by “materiality,” “material adverse effect”
or similar language, in all respects (after giving effect to such qualification) with the same effect as if made on the Amendment
No. 1 Effective Date (except where such representations and warranties expressly relate to an earlier date, in which case such
representations and warranties shall have been true and correct in all material respects as of such earlier date).

 

(b)            At the time of and immediately after giving
effect to this Amendment, no Default or Event of Default has occurred and is continuing.

 

Section 4.             Conditions
to Effectiveness. This Amendment shall become effective on the date (the “Amendment No. 1 Effective Date”)
on which:

 

(a)             
the Administrative Agent (or its counsel) shall have received from the Credit Parties and each New Revolving Credit Lender, a counterpart
of this Amendment signed on behalf of each such party;

 

(b)             the
Administrative Agent (or its counsel) shall have received the following (or their equivalent), each (other than with respect to
clause (iv)) certified by the secretary or assistant secretary of each Credit Party as of the Amendment No. 1 Effective Date to
be true and correct and in force and effect pursuant to a certificate in a form reasonably satisfactory to the Administrative Agent:
(i) a copy of the resolutions of the board of directors of each Credit Party (or a comparable governing body thereof) authorizing
(a) the execution, delivery and performance of this Amendment (including the transactions contemplated herein) and authorizing
execution and delivery hereof and (b) in the case of the Borrower, the extensions of credit contemplated hereunder, (ii) the Certificate
of Incorporation and By-Laws, Certificate of Formation and Operating Agreement or other comparable organizational documents, as
applicable, of each Credit Party, (iii) signature and incumbency certificates (or other comparable documents evidencing the same)
of the Authorized Officers of each Credit Party executing the Credit Documents to which it is a party and (iv) copies, where applicable,
of a certificate of good standing of each Credit Party in its state of organization, certified as of a recent date by the appropriate
Governmental Authorities of the applicable state of organization;

 

(c)              the
representations and warranties set forth in Section 3 hereof shall be true and correct and the Administrative Agent shall have
received a certificate of a responsible officer to such effect;

 

    	 	-11-	 

     

    

  

(d)             the
Administrative Agent shall have received legal opinions of (A) Kirkland & Ellis LLP, as counsel to the Credit Parties, (B)
Parker Poe Adams & Bernstein LLP, as South Carolina counsel to the Credit Parties and (C) Bingham Greenebaum Doll LLP, as Ohio
counsel to the Credit Parties, in each case in form and substance reasonably acceptable to the Administrative Agent;

 

(e)             the
Administrative Agent shall have received a certificate, in form and substance reasonably satisfactory to it, of a responsible officer
certifying that immediately after giving effect to this Amendment, Holdings and its Restricted Subsidiaries taken as a whole are
Solvent as of the Amendment No. 1 Effective Date;

 

(f)              the
Borrower shall have paid (i) all fees required to be paid on the Amendment No. 1 Effective Date pursuant to the Engagement Letter,
dated as of December 21, 2018 (the “Engagement Letter”), among the Borrower, Wells Fargo Securities, LLC, Wells
Fargo Bank, National Association and Merrill Lynch, Pierce, Fenner & Smith Incorporated and (ii) all fees and expenses due
and payable pursuant to Section 5 hereof;

 

(g)             any
Original Revolving Credit Loans outstanding immediately prior to the Amendment No. 1 Effective Date under the Original Revolving
Credit Commitments shall be repaid with the proceeds of the New Revolving Credit Loans under the New Revolving Credit Commitments
and the Original Revolving Credit Commitments shall be terminated substantially simultaneously with the effectiveness of this Amendment
and the Borrower shall have delivered a prepayment notice with respect to such repayment as required by Section 5.1 of the Credit
Agreement;

 

(h)             the
Borrower shall have provided a Notice of Borrowing for any New Revolving Credit Loans borrowed on the Amendment No. 1 Effective
Date;

 

(i)              to
the extent requested by the Administrative Agent or any Lender not less than five (5) days prior to the Amendment No. 1 Effective
Date, the Administrative Agent and such Lenders shall have received (i) a certification regarding beneficial ownership as required
under 31 C.F.R. § 1010.230 in relation to the Borrower and (ii) the documentation and other information so requested in connection
with applicable “know your customer” and anti-money-laundering rules and regulations, including, without limitation,
the PATRIOT Act; and

 

(j)              the
results of confirmatory searches of the UCC filings and of tax and judgment lien searches for each Credit Party.

 

Section 5.             Fees
and Expenses. The Borrower agrees to (a) reimburse the Administrative Agent and the Lead Arrangers for the reasonable
and documented out-of-pocket expenses incurred by it in connection with this Amendment, including the reasonable and documented
fees, charges and disbursements of Cahill Gordon & Reindel LLP, counsel for the Administrative
Agent, (b) on the Amendment No. 1 Effective Date, pay the Administrative Agent an upfront fee, for the accounts of the New Revolving
Credit Lenders, an amount equal to (i) 0.125% of the aggregate principal amount of their New Revolving Credit Commitments that
does not exceed their Original Revolving Credit Commitments immediately prior to the Amendment No. 1 Effective Date, and (ii)
0.175% of the aggregate principal amount of (x) the excess of the New Revolving Credit Commitments held by a Continuing Lender
on the Amendment No. 1 Effective Date over such Continuing Lender’s Original Revolving Credit Commitments immediately prior
to the Amendment No. 1 Effective Date and (y) with respect to any Additional Lender, the New Revolving Credit Commitments held
by any such Additional Lender on the Amendment No. 1 Effective Date (for the avoidance of doubt, the upfront fees referenced in
clauses (b)(i) and (b)(ii) represent the upfront fees payable pursuant to Section 4 of the Engagement Letter and shall not be
paid in addition to such fees).

 

    	 	-12-	 

     

    

  

Section 6.             Counterparts.
This Amendment may be executed by one or more of the parties to this Amendment on any number of separate counterparts (including
by facsimile or other electronic transmission), and all of said counterparts taken together shall be deemed to constitute one
and the same instrument. A set of the copies of this Amendment signed by all the parties shall be lodged with the Borrower and
the Administrative Agent.

 

Section 7.             Applicable
Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

Section 8.            
Headings. The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect
the meaning hereof.

 

Section 9.             Effect
of Amendment. On and after the effectiveness of this Amendment, each reference in the Credit Agreement to “this
Credit Agreement”, “this Agreement”, “hereunder”, “hereof” or words of like import referring
to the Credit Agreement, and each reference in the Notes and each of the other Credit Documents to “the Credit Agreement”,
“thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a
reference to the Credit Agreement, as amended or waived by this Amendment. The Credit Agreement, the Notes and each of the other
Credit Documents, as specifically amended or waived by this Amendment, are and shall continue to be in full force and effect and
are hereby in all respects ratified and confirmed. Except as expressly set forth herein, this Amendment shall not by implication
or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders or the Administrative
Agent under the Credit Agreement or any other Credit Document, and shall not alter, modify, amend or in any way affect any of
the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other provision of the Credit
Agreement or any other Credit Document, all of which are ratified and affirmed in all respects and shall continue in full force
and effect. The parties hereto expressly acknowledge that it is not their intention that this Amendment or any of the other Credit
Documents executed or delivered pursuant hereto constitute a novation of any of the obligations, covenants or agreements contained
in the Credit Agreement or any other Credit Document, but rather constitute a modification thereof pursuant to the terms contained
herein. This Amendment constitutes a Credit Document.

 

Section 10.           Acknowledgement
and Consent. (a) Each Guarantor hereby acknowledges that it has reviewed the terms and provisions of the Credit Agreement
and this Amendment and consents to the amendments of the Credit Agreement effected pursuant to this Amendment. Each Guarantor
hereby confirms that each Credit Document to which it is a party or otherwise bound will continue to guarantee, to the fullest
extent possible of a Credit Party in accordance with the Credit Documents, the payment and performance of all “Obligations”
under each of the Credit Documents to which it is a party (in each case as such term is defined in the applicable Credit Document).

 

(b)            Each
Guarantor acknowledges and agrees that any of the Credit Documents to which it is a party or otherwise bound shall continue in
full force and effect and that all of its obligations thereunder shall be valid and enforceable and shall not be impaired or limited
by the execution or effectiveness of this Amendment.

 

    	 	-13-	 

     

    

  

(c)             Each
Guarantor acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in this Amendment, such Guarantor
is not required by the terms of the Credit Agreement or any other Credit Document to consent to the amendments to the Credit Agreement
effected pursuant to this Amendment and (ii) nothing in the Credit Agreement, this Amendment or any other Credit Document shall
be deemed to require the consent of such Guarantor to any future amendments to the Credit Agreement.

 

[Signature Pages Follow]

 

    	 	-14-	 

     

    

  

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.

 

	 	ROLLER BEARING COMPANY OF AMERICA, INC., as Borrower
	 	 	 
	 	By:	/s/ Daniel Bergeron
	 	 	Daniel A. Bergeron
	 	 	Vice President, Chief Operating Officer
	 	 	and Chief Financial Officer
	 	 	 
	 	RBC
    BEARINGS INCORPORATED, as Holdings
	 	 
	 	By:	/s/ Daniel
     Bergeron
	 	 	Daniel A. Bergeron
	 	 	Vice President, Chief Operating Officer and Chief Financial Officer
	 	 	 
	 	Airtomic, LLC
	 	All Power Manufacturing Co.
	 	Climax Metal Products Company
	 	Industrial Tectonics Bearings Corporation
	 	RBC Aircraft Products, Inc.
	 	RBC Lubron Bearing Systems, Inc.
	 	RBC Nice Bearings, Inc.
	 	RBC Oklahoma, Inc.
	 	RBC Precision Products – Bremen, Inc.
	 	RBC Precision Products – Plymouth, Inc. 
	 	RBC Southwest Products, Inc.
	 	RBC Turbine Components LLC
	 	Sargent Aerospace & Defense, LLC
	 	Sonic Industries, Inc.
	 	Western Precision Aero LLC
	 	 
	 	By:	/s/ Joseph Salamunovich
	 	 	Joseph Salamunovich
	 	 	Vice President and Secretary
	 	 	 
	 	RBC Aerostructures LLC
	 	 
	 	By:	/s/ Joseph Salamunovich
	 	 	Joseph Salamunovich
	 	 	Vice President and Secretary

 

[Signature
Page to Amendment No. 1]

     

     

    

 

	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

 as Administrative Agent, Letter of Credit Issuer and

 New Revolving Credit Lender
	 	 	 
	 	By:	/s/ DuVon G. Davis
	 	 	Name: 	DuVon G. Davis
	 	 	Title: 	Senior Vice President

 

[Signature
Page to Amendment No. 1]

 

     

     

    

 

	 	
        BANK
        OF AMERICA, N.A.,

        as
        a New Revolving Credit Lender and Letter of Credit Issuer

	 	 	 
	 	By:	/s/ Christopher Phelan
	 	Name: Christopher Phelan
	 	Title: Senior Vice President

 

[Signature
Page to Amendment No. 1]

 

     

     

    

 

	 	CITIZENS BANK, N.A.,

        as
        a New Revolving Credit Lender and Letter of Credit Issuer

	 	 
	 	By:	/s/ Kathryn
    Hinderhofer
	 	 	Name:
    Kathryn Hinderhofer
	 	 	Title:
    Assistant Vice President

 

[Signature
Page to Amendment No. 1]

 

     

     

    

  

	 	KEYBANK NATIONAL ASSOCIATION, 

as a New Revolving Credit Lender and Letter of Credit Issuer
	 	 
	 	By:	/s/ Suzannah Valdivia
	 	 	Name: Suzannah Valdivia
	 	 	Title: Senior Vice President

 

[Signature
Page to Amendment No. 1]

 

     

     

    

  

	 	BMO HARRIS BANK N.A., 

as a New Revolving Credit Lender and Letter of Credit Issuer
	 	 	 	 
	 	By:	/s/ Matthew Gerber
	 	 	Name: 	Matthew Gerber
	 	 	Title: 	Managing Director

 

[Signature
Page to Amendment No. 1]

 

     

     

    

 

	 	CITIBANK, N.A.,
	 	as
    a New Revolving Credit Lender and Letter of Credit Issuer
	 	 	 
	 	By:	/s/ Masooma Ali
	 	 	Name:
    Masooma Ali
	 	 	Title:
    Relationship Banker/Vice President

 

[Signature
Page to Amendment No. 1]

 

     

     

    

  

	 	 	SUNTRUST BANK,
	 	 	as a New Revolving Credit Lender and Letter of Credit Issuer 
	 	 		 	 
	 	 	By:	/s/ Johnetta Bush
	 	 	 	Name:	Johnetta Bush 
	 	 	 	Title: 	Director

 

[Signature
Page to Amendment No. 1]

 

     

     

    

 

Schedule 1.1(a)

 

Existing Letters of Credit

 

1. Letter of Credit No. ISO300172U, issued
as of May 18, 2015, issued by Wells Fargo Bank, National Association in favor of Roller Bearing Company of America, Inc. in the
amount of $3,164,726

 

[Signature Page to Amendment No. 1]

 

     

     

    

 

 

Schedule 1.1(c)

Commitments of Lenders

 

Revolving Credit Commitments

 

	Lender	 	Revolving Credit	 	 	Revolving Credit	 
	 	 	Commitment	 	 	Commitment Percentage	 
	 	 	 	 	 		 
	Wells Fargo Bank, National Association	 	$	50,000,000.00	 	 	 	20.00	%
	Bank of America, N.A.	 	$	40,000,000.00	 	 	 	16.00	%
	Citizens Bank, N.A.	 	$	35,000,000.00	 	 	 	14.00	%
	KeyBank National Association	 	$	35,000,000.00	 	 	 	14.00	%
	BMO Harris Bank N.A.	 	$	30,000,000.00	 	 	 	12.00	%
	Citibank, N.A.	 	$	30,000,000.00	 	 	 	12.00	%
	SunTrust Bank	 	$	30,000,000.00	 	 	 	12.00	%
	Total:        	 	$	250,000,000.00	 	 	 	100.00	%

 

	Letter of Credit Commitments
	 	 	 	 	 	 	 
	Lender	 	Letter of Credit 	 	 	Letter of Credit 	 
	 	 	Commitment	 	 	Commitment Percentage	 
	Wells Fargo Bank, National Association	 	$	5,000,000.00	 	 	 	20.00	%
	Bank of America, N.A.	 	$	4,000,000.00	 	 	 	16.00	%
	Citizens Bank, N.A.	 	$	3,500,000.00	 	 	 	14.00	%
	Keybank National Association	 	$	3,500,000.00	 	 	 	14.00	%
	BMO Harris Bank N.A.	 	$	3,000,000.00	 	 	 	12.00	%
	Citibank, N.A.	 	$	3,000,000.00	 	 	 	12.00	%
	SunTrust Bank	 	$	3,000,000.00	 	 	 	12.00	%
	Total:        	 	$	25,000,000.00	 	 	 	100.00	%

  

 

 

     

     

    

 

 

 

Exhibit A

 

CREDIT AGREEMENT

 

Dated as of April 24, 2015,

 

as Amended by Amendment No. 1 on January 31, 2019

 

among

 

ROLLER BEARING COMPANY OF AMERICA, INC.,

as the Borrower

 

RBC BEARINGS INCORPORATED,

as Holdings,

 

The Several Lenders

from Time to Time Parties Hereto,

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent, Collateral Agent
and Swingline Lender,

 

WELLS FARGO SECURITIES, LLC and

MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED,

as Amendment No. 1 Arrangers,

 

BANK OF AMERICA, N.A.,

as Amendment No. 1 Syndication Agent

 

KEYBANK NATIONAL ASSOCIATION and

CITIZENS BANK, N.A.,

as Amendment No. 1 Co-Documentation AgentsADAMIS PHARMACEUTICALS CORPORATION 8-K

 Exhibit 10.1

 

 

 

 

 

ADAMIS
PHARMACEUTICALS CORPORATION

2019
BONUS PLAN

 

 

 

 

 

 

 

 

		*	Excludes
                                         those covered under the Field Sales Incentive Plans

     

    	 

    

Adamis
Pharmaceuticals Corporation

2019
Bonus Plan

The
Adamis Pharmaceuticals Corporation (“Adamis” or the “Company”) 2019 Bonus
Plan (the “Plan”) is designed to offer employees a performance based plan that rewards the achievement
of corporate goals, as well as individual goals that are consistent with the corporate goals.

Purpose
of the Plan

The
Plan is designed to:

		•	Provide
                                         a bonus program that helps achieve overall corporate goals and enhances shareholder value

		•	Reward
                                         individuals for achievement of corporate and individual goals

		•	Encourage
                                         teamwork among all disciplines within the Company

		•	Offer
                                         an attractive bonus program to help attract and retain key employees

Plan
Governance

The
Compensation Committee of the Board of Directors (the “Committee”) is responsible for reviewing and
approving the Plan and any proposed modifications to the Plan. The President and CEO of Adamis is responsible for administration
of the Plan; provided that the Committee is responsible for reviewing and approving all compensation, including compensation
under this Plan, for all officers, vice presidents, executive directors and any other employees with an annual base salary greater
than or equal to $250,000.

Eligibility

All
regular employees of the Company who are regularly scheduled to work at least 20 hours per week will be eligible to participate
in the Plan, other than any employee eligible to participate in the Company’s Field Sales Incentive Plans. Temporary employees
and part-time employees (who are regularly scheduled to work less than 20 hours per week) are not included in this Plan. In order
to be eligible to receive any bonus award (or “Bonus”) under this Plan, a participant: (a) must
have commenced their employment with the Company prior to October 1, 2019 and remained continuously employed through December 31,
2019 and until the time Bonuses are paid; and (b) must be an employee in good standing (e.g., not on a performance
improvement plan as of December 31, 2019 or an unacceptable performer as determined during the 2019 review cycle), as determined
by the Committee or the President and CEO of Adamis, as applicable in their sole discretion. Employees joining during the bonus
plan year will have their actual bonus amount prorated based on their actual time with the Company during the Plan year.

A
participant whose employment terminates voluntarily prior to the payment of a Bonus award will not be eligible to receive a Bonus
award. Continued employment is a condition of payout for the plan. If a participant’s employment is terminated involuntarily
during the Plan year, or prior to payment of Bonus awards, it will be at the absolute discretion of the Company whether or not
a Bonus award payment is made.

    	 	1	 

    	 

    

Corporate
and Individual Performance

The
President and CEO will present to the Committee a list of the overall corporate goals for the Plan year, which is subject to approval
by both the Committee and (if different) the independent members of the Board of Directors, with the Committee and/or such independent
members having final authority with respect to such goals. Corporate goals may include, without limitation, goals relating to
matters such as the Company’s financial results, revenues, net income, EBITDA, return on equity, stock price, capital raising
activities, pre-clinical or clinical trial activities (including without limitation initiation or completion of trials), regulatory
filings relating to product candidates, other regulatory activities or approvals, product development, product commercialization
activities, strategic commercial agreements or arrangements, or other corporate goals. All participants in the Plan will then
develop a list of key individual goals, which will be subject to approval by their manager and used for the basis of the performance
review and individual performance rating.

The
total bonus pool for the Plan will be based on achievement of the 2019 corporate goals and, where applicable, the individual’s
annual performance review rating.

Notwithstanding
anything else in this Plan, including without limitation the weighting factors, target bonus percentages or goal multipliers described
elsewhere in this Plan, the Committee or the President and/or CEO of the Company may, in their discretion, develop and specify
different corporate goals, individual performance goals, weighting factors, target bonus percentages and/or goal multipliers that
will apply to one or more officers or employees of the Company and that may differ from those developed and specified for other
officers or employees, including officers or employees within similar Groups.

Bonus
Awards

The
Bonus will be paid in cash and is based on achievement of the 2019 corporate goals and achievement of individual goals. The
Bonus will be calculated by using the base salary as of December 31, 2019, weighting factor, target bonus percentage,
and goal multipliers as identified below:

Weighting
Factor

The
relative weight between the corporate and individual Bonus components will vary based on levels within the organization. The weighting
factors will be reviewed annually and adjusted, as necessary or appropriate. The weighting for 2019 will be as follows (subject
to the authority of the Committee and the President or CEO to specify different relative weighting factors in individual cases
and to determine the applicable Group for an officer or employee):

    	 	2	 

    	 

    

 

	Position	Corporate	Individual
	President and CEO	100%	 
	Group K (SVP, CMO
    & EVP Level Officers)	100%	 
	Group J (VP Officers)	100%	 
	Group I (Non-Officer
    VPs)	80%	20%
	Group H (Executive
    Directors)	80%	20%
	Group G (Senior Directors)	80%	20%
	Group F (Directors)	80%	20%
	Group E (Senior Managers)	60%	40%
	Group D (Managers)	60%	40%
	Group C	40%	60%
	Group A & B	20%	80%

Target
Bonus Percentages

Bonus
amounts will be determined by applying a “target bonus percentage” to the base salary of employees in the Plan. Following
are the 2019 target bonus percentages (subject to the authority of the Committee and the President or CEO to specify different
relative target bonus percentages in individual cases and to determine the applicable Group for an officer or employee):

	Position	 	Target
    Bonus Percentages
	President
    and CEO	 	60%
	Group
    K (SVP, CMO & EVP Level Officers)	 	45%
	Group
    J (VP Officers)	 	40%
	Group
    I (Non-Officer VPs)	 	30%
	Group
    H (Executive Directors)	 	30%
	Group
    G (Senior Directors)	 	30%
	Group
    F (Directors)	 	25%
	Group
    E (Senior Managers)	 	20%
	Group
    D (Managers)	 	17%
	Group
    C	 	15%
	Group
    B	 	12%
	Group
    A	 	10%

The
base salary as of December 31, 2019 times the target bonus percentage will be used to establish the target Bonus amount for
the 2019 year.

Goal
Multipliers

Corporate
Goal Multiplier: The following scale will be used by the Committee and (if applicable) the independent members of the Board
of Directors to determine the “total corporate goal multiplier” based upon measurement of actual corporate performance
versus the pre-established corporate goals. The Committee will evaluate each corporate goal as follows (subject to the authority
of the Committee and the President or CEO to specify different goal multipliers in individual cases):

    	 	3	 

    	 

    

 

	Performance Category	 	Goal Multiplier
	1.	Performance for the year significantly exceeded the
goal or was excellent in view of prevailing conditions	 	100-150%
	2.	Performance fully met the year’s goal or is considered
achieved in view of prevailing conditions	 	100%
	3.	Performance for the year met some aspects of the goal
but not all or met most aspects in view of prevailing conditions	 	40-100%
	4.	Performance for the year was significantly less
than the goal (i.e., below 40%)	 	0%

Each
goal is evaluated separately, weighting applied and a total corporate goal multiplier is reached. A total corporate goal multiplier
of at least 40% is required prior to any payout of Bonuses under the Plan (provided, however, that the Committee shall retain
the discretion to determine otherwise and to approve payouts based on a multiplier of less than 40%), and the total corporate
goal multiplier may not exceed 150%.

Individual
Goal Multiplier: The “individual goal multiplier” will be determined by taking into account the performance rating
(Outstanding, Exceeds, Meets, Fair, etc.) given to the individual through the 2019 review cycle as well as any other relevant
criteria relating to the individual’s job performance during 2019.

Calculation
of Bonus Amount

The
example below shows a sample Bonus amount calculation under the Plan. First, a target Bonus amount is calculated for each Plan
participant by multiplying the employee’s base salary by the target bonus percentage. This dollar figure is then divided
between the corporate component and the individual component based on the weighting factor for that position. This calculation
establishes specific dollar target Bonus amounts for the performance period for each of the corporate and individual components.

At
the end of the performance period, corporate and individual goal multipliers will be established using the criteria described
above. The corporate goal multiplier, which is based on overall corporate performance, is used to calculate the corporate component
of the Bonus amount for all Plan participants. This is accomplished by multiplying the target corporate Bonus amount established
for each individual by the total corporate goal multiplier. The individual goal multiplier, which is based on an individual’s
performance rating, is used in the same way to calculate the actual individual component of the Bonus amount.

    	 	4	 

    	 

    

 

	Example:  Actual
    Bonus Amount Calculation	 	 
	   Group
    Level	 	A
	   Position	 	Admin
    Assistant
	   Base
    Salary as of December 31	 	$50,000
	   Target
    Bonus Percentage	 	10%
	   Performance
    Rating	 	Exceeds
	   Target
    Bonus Amount	 	$5,000
	 	 	 
	   Target
    Bonus Components:	 	 
	   Target
    Bonus Amount based on corporate performance (20%)	 	$1,000
	   Target
    Bonus Amount based on individual performance (80%)	 	$4,000
	 	 	 
	   Corporate
    Goal Multiplier	 	80%
	   Individual
    Goal Multiplier	 	105%
	 	 	 
	Actual
    Bonus Amount Calculation:	 	 
	Corporate
    Bonus Amount	 	$800
    ($1,000 x 80%)
	Individual
    Bonus Amount	 	$4,200
    ($4,000 x 105%)
	Actual
    Cash Bonus Amount	 	$5,000

Payment
of the Bonus Amounts

The
target date for completion of annual performance reviews for Plan participants will be January 31, 2020 or as soon thereafter
as reasonably practicable. Payments of actual Bonus amounts will be made as soon as practical, but not later than March 15,
2020. Participants’ entitlement to Bonuses under this Plan does not occur until the Bonuses are actually paid. This plan
is not intended to be subject to Section 409A of the Internal Revenue Code of 1986, as amended.

Company’s
Absolute Right to Alter or Abolish the Plan

The
Committee reserves the right in its absolute discretion to terminate and/or abolish all or any portion of the Plan at any time
or to alter the terms and conditions under which a Bonus will be paid. In the event of the Plan’s termination prior to the
payment of a Bonus, such Bonus will not be payable under this Plan. Such discretion may be exercised any time before, during,
and after the Plan year is completed. No participant shall have any right to receive any payment until actual delivery of such
compensation. Notwithstanding the generality of the foregoing, at the Company’s discretion, and subject to compliance in
all events with, and if and only if permitted by, applicable federal and state securities laws and the listing rules and requirements
of any stock exchange or trading market on which the Company’s common stock is listed or traded, all or a portion of a Bonus
payment may be made in vested shares of the Company’s common stock. No payment in stock or other equity under this Plan
may be made if such issuance or payment would conflict with any such securities laws or listing rules or requirements.

    	 	5	 

    	 

    

The
Committee, in its discretion, may also determine whether to increase the payout under the Plan for extraordinary achievement or
to reduce payout if economic and business conditions warrant such action.

Employment
Duration/Employment Relationship

This
Plan does not, and the Company’s policies and practices in administering this Plan do not, constitute an express or implied
contract or other agreement concerning the duration of any participant’s employment with the Company. The employment relationship
of each participant is “at will” and may be terminated at any time by the Company or by the participant with or without
cause.

    	 	6

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